Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 26, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 | 203 | |
Local Phone Number | 900-6715 | |
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 | 466,222,967 | |
Entity Central Index Key | 0000759944 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | CFG | |
Security Exchange Name | NYSE | |
Series D | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/40th interest in a share of 6.350% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D | |
Trading Symbol | CFG PrD | |
Security Exchange Name | NYSE | |
Series E | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/40th interest in a share of 5.000% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series E | |
Trading Symbol | CFG PrE | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
ASSETS: | |||
Cash and due from banks | [1] | $ 1,395 | $ 1,489 |
Interest-bearing cash and due from banks | 14,005 | 9,058 | |
Interest-bearing deposits in banks | 324 | 303 | |
Debt securities available for sale, at fair value (including $402 and $270 pledged to creditors, respectively | [2] | 25,069 | 24,007 |
Debt securities held to maturity (fair value of $8,054 and $9,042 respectively, and including $225 and $110 pledged to creditors, respectively) | [2] | 9,320 | 9,834 |
Loans held for sale, at fair value | 749 | 774 | |
Other loans held for sale | 99 | 208 | |
Loans and leases | 149,746 | 156,662 | |
Less: Allowance for loan and lease losses | (2,080) | (1,983) | |
Net loans and leases | [1] | 147,666 | 154,679 |
Derivative assets | 522 | 842 | |
Premises and equipment, net | 878 | 844 | |
Bank-owned life insurance | 3,275 | 3,236 | |
Goodwill | 8,188 | 8,173 | |
Other intangible assets | [3] | 167 | 197 |
Other assets | [1] | 13,613 | 13,089 |
TOTAL ASSETS | 225,270 | 226,733 | |
Deposits: | |||
Noninterest-bearing | 38,561 | 49,283 | |
Interest-bearing | 139,636 | 131,441 | |
Total deposits | 178,197 | 180,724 | |
Short-term borrowed funds | 232 | 3 | |
Derivative liabilities | 2,109 | 1,909 | |
Long-term borrowed funds | [1] | 17,354 | 15,887 |
Other liabilities | [1] | 4,500 | 4,520 |
TOTAL LIABILITIES | 202,392 | 203,043 | |
Commitments and Contingencies (refer to Note 12) | |||
Preferred stock: | |||
$25.00 par value,100,000,000 shares authorized; 2,050,000 shares issued and outstanding at September 30, 2023 and December 31, 2022 | 2,014 | 2,014 | |
Common stock: | |||
$0.01 par value, 1,000,000,000 shares authorized; 647,632,105 shares issued and 466,221,795 shares outstanding at September 30, 2023 and 645,220,018 shares issued and 492,282,158 shares outstanding at December 31, 2022 | 6 | 6 | |
Additional paid-in capital | 22,231 | 22,142 | |
Retained earnings | 9,856 | 9,159 | |
Treasury stock, at cost, 181,410,310 and 152,937,860 shares at September 30, 2023 and December 31, 2022, respectively | (5,986) | (5,071) | |
Accumulated other comprehensive income (loss) | (5,243) | (4,560) | |
TOTAL STOCKHOLDERS’ EQUITY | 22,878 | 23,690 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 225,270 | $ 226,733 | |
[1]Includes amounts in consolidated VIEs. See Note 7 for additional information.[2]Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.[3]Excludes MSRs, which are reported in Other assets. |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
ASSETS: | |||
Fair Value | [1] | $ 25,069 | $ 24,007 |
Securities held-to-maturity, fair value | 8,054 | 9,042 | |
Asset-backed investments included in HTM securities | [1] | $ 9,320 | $ 9,834 |
Preferred stock: | |||
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) | 2,050,000 | 2,050,000 | |
Preferred stock, outstanding (in shares) | 2,050,000 | 2,050,000 | |
Common stock: | |||
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) | 647,632,105 | 645,220,018 | |
Common stock, outstanding (in shares) | 466,221,795 | 492,282,158 | |
Treasury stock (in shares) | 181,410,310 | 152,937,860 | |
Asset Pledged as Collateral | |||
ASSETS: | |||
Fair Value | $ 402 | $ 270 | |
Asset-backed investments included in HTM securities | $ 225 | $ 110 | |
[1]Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
INTEREST INCOME: | ||||
Interest and fees on loans and leases | $ 2,166 | $ 1,657 | $ 6,345 | $ 4,075 |
Interest and fees on loans held for sale | 20 | 18 | 55 | 51 |
Interest and fees on other loans held for sale | 8 | 15 | 25 | 47 |
Investment securities | 290 | 243 | 823 | 582 |
Interest-bearing deposits in banks | 111 | 36 | 280 | 53 |
Total interest income | 2,595 | 1,969 | 7,528 | 4,808 |
INTEREST EXPENSE: | ||||
Deposits | 898 | 176 | 2,171 | 255 |
Short-term borrowed funds | 8 | 11 | 36 | 21 |
Long-term borrowed funds | 167 | 117 | 568 | 215 |
Total interest expense | 1,073 | 304 | 2,775 | 491 |
Net interest income | 1,522 | 1,665 | 4,753 | 4,317 |
Provision (benefit) for credit losses | 172 | 123 | 516 | 342 |
Net interest income after provision (benefit) for credit losses | 1,350 | 1,542 | 4,237 | 3,975 |
NONINTEREST INCOME: | ||||
Service charges and fees | 105 | 109 | 306 | 315 |
Capital markets fees | 67 | 89 | 232 | 270 |
Card fees | 74 | 71 | 226 | 202 |
Mortgage banking fees | 69 | 66 | 185 | 207 |
Trust and investment services fees | 63 | 61 | 191 | 188 |
Foreign exchange and derivative products | 48 | 42 | 140 | 153 |
Letter of credit and loan fees | 43 | 40 | 126 | 118 |
Securities gains, net | 5 | 0 | 19 | 5 |
Other income | 18 | 34 | 58 | 46 |
Total noninterest income | 492 | 512 | 1,483 | 1,504 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 659 | 639 | 1,932 | 1,916 |
Outside services | 160 | 172 | 513 | 530 |
Equipment and software | 191 | 159 | 541 | 478 |
Occupancy | 107 | 106 | 367 | 300 |
Other operating expense | 176 | 165 | 542 | 428 |
Total noninterest expense | 1,293 | 1,241 | 3,895 | 3,652 |
Income before income tax expense | 549 | 813 | 1,825 | 1,827 |
Income tax expense | 119 | 177 | 406 | 407 |
NET INCOME | 430 | 636 | 1,419 | 1,420 |
Net income available to common stockholders | $ 400 | $ 611 | $ 1,332 | $ 1,339 |
Weighted-average common shares outstanding: | ||||
Basic (in Shares) | 469,481,085 | 495,651,083 | 478,073,507 | 470,118,265 |
Diluted (in Shares) | 471,183,719 | 497,477,501 | 479,733,008 | 471,958,310 |
Per common share information: | ||||
Basic earnings (in dollars per share) | $ 0.85 | $ 1.23 | $ 2.79 | $ 2.85 |
Diluted earnings (in dollars per Share) | $ 0.85 | $ 1.23 | $ 2.78 | $ 2.84 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 430 | $ 636 | $ 1,419 | $ 1,420 |
Other comprehensive income (loss): | ||||
Net unrealized derivative instruments gains (losses) arising during the periods, net of income taxes of ($78), ($258), ($193) and ($494), respectively | (248) | (738) | (580) | (1,407) |
Reclassification adjustment for net derivative (gains) losses included in net income, net of income taxes of $37, $12, $105 and $1, respectively | 120 | 34 | 315 | 2 |
Net unrealized debt securities gains (losses) arising during the periods, net of income taxes of ($189), ($305), ($160) and ($933), respectively | (578) | (903) | (490) | (2,759) |
Reclassification of net debt securities (gains) losses to net income, net of income taxes of $7, $0, $21 and ($1), respectively | 23 | 0 | 63 | (4) |
Reclassification of actuarial (gain) loss to net income, net of income taxes of $2, $2, $4 and $1, respectively | 3 | 2 | 9 | 10 |
Total other comprehensive income (loss), net of income taxes | (680) | (1,605) | (683) | (4,158) |
Total comprehensive income (loss) | $ (250) | $ (969) | $ 736 | $ (2,738) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other comprehensive income (loss): | ||||
Net unrealized derivative instrument gain (loss) arising during the periods, tax | $ (78) | $ (258) | $ (193) | $ (494) |
Reclassification adjustment for net derivative (gains) losses included in net income, tax | 37 | 12 | 105 | 1 |
Net unrealized debt securities gains (losses) arising during the periods, tax | (189) | (305) | (160) | (933) |
Reclassification of net debt securities (gains) loss to net income, tax | 7 | 0 | 21 | (1) |
Amortization of actuarial loss, tax | $ 2 | $ 2 | $ 4 | $ 1 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock, at Cost | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2021 | 2,000,000 | 422,000,000 | |||||||
Beginning balance at Dec. 31, 2021 | $ 23,420 | $ 2,014 | $ 6 | $ 19,005 | $ 7,978 | $ (4,918) | $ (665) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Dividends to common stockholders | (569) | (569) | |||||||
Dividends to preferred stockholders | (81) | (81) | |||||||
Issuance of common stock - business acquisition (in shares) | 72,000,000 | ||||||||
Issuance of common stock - business acquisition | 3,036 | 3,036 | |||||||
Treasury stock purchased | (2) | (2) | |||||||
Share-based compensation plans (in shares) | 2,000,000 | ||||||||
Share-based compensation plans | 61 | 61 | |||||||
Employee stock purchase plan | 19 | 19 | |||||||
Total comprehensive income (loss): | |||||||||
Net income | 1,420 | 1,420 | |||||||
Other comprehensive income (loss) | (4,158) | (4,158) | |||||||
Total comprehensive income (loss) | (2,738) | 1,420 | (4,158) | ||||||
Ending balance (in shares) at Sep. 30, 2022 | 2,000,000 | 496,000,000 | |||||||
Ending balance at Sep. 30, 2022 | 23,146 | $ 2,014 | $ 6 | 22,121 | 8,748 | (4,920) | (4,823) | ||
Beginning balance (in shares) at Jun. 30, 2022 | 2,000,000 | 496,000,000 | |||||||
Beginning balance at Jun. 30, 2022 | 24,328 | $ 2,014 | $ 6 | 22,100 | 8,346 | (4,920) | (3,218) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Dividends to common stockholders | (209) | (209) | |||||||
Dividends to preferred stockholders | (25) | (25) | |||||||
Share-based compensation plans | 15 | 15 | |||||||
Employee stock purchase plan | 6 | 6 | |||||||
Total comprehensive income (loss): | |||||||||
Net income | 636 | 636 | |||||||
Other comprehensive income (loss) | (1,605) | (1,605) | |||||||
Total comprehensive income (loss) | (969) | 636 | (1,605) | ||||||
Ending balance (in shares) at Sep. 30, 2022 | 2,000,000 | 496,000,000 | |||||||
Ending balance at Sep. 30, 2022 | 23,146 | $ 2,014 | $ 6 | 22,121 | 8,748 | (4,920) | (4,823) | ||
Beginning balance (in shares) at Dec. 31, 2022 | 2,000,000 | 492,000,000 | |||||||
Beginning balance at Dec. 31, 2022 | 23,690 | $ (26) | $ 2,014 | $ 6 | 22,142 | 9,159 | $ (26) | (5,071) | (4,560) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Dividends to common stockholders | (609) | (609) | |||||||
Dividends to preferred stockholders | $ (87) | (87) | |||||||
Treasury stock purchased (in shares) | (28,472,450) | (29,000,000) | |||||||
Treasury stock purchased | $ (906) | (906) | |||||||
Share repurchase excise tax | (9) | (9) | |||||||
Share-based compensation plans (in shares) | 3,000,000 | ||||||||
Share-based compensation plans | 68 | 68 | |||||||
Employee stock purchase plan | 21 | 21 | |||||||
Total comprehensive income (loss): | |||||||||
Net income | 1,419 | 1,419 | |||||||
Other comprehensive income (loss) | (683) | (683) | |||||||
Total comprehensive income (loss) | 736 | 1,419 | (683) | ||||||
Ending balance (in shares) at Sep. 30, 2023 | 2,000,000 | 466,000,000 | |||||||
Ending balance at Sep. 30, 2023 | 22,878 | $ 2,014 | $ 6 | 22,231 | 9,856 | (5,986) | (5,243) | ||
Beginning balance (in shares) at Jun. 30, 2023 | 2,000,000 | 475,000,000 | |||||||
Beginning balance at Jun. 30, 2023 | 23,585 | $ 2,014 | $ 6 | 22,207 | 9,655 | (5,734) | (4,563) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Dividends to common stockholders | (199) | (199) | |||||||
Dividends to preferred stockholders | (30) | (30) | |||||||
Treasury stock purchased (in shares) | (9,000,000) | ||||||||
Treasury stock purchased | (250) | (250) | |||||||
Share repurchase excise tax | (2) | (2) | |||||||
Share-based compensation plans | 17 | 17 | |||||||
Employee stock purchase plan | 7 | 7 | |||||||
Total comprehensive income (loss): | |||||||||
Net income | 430 | 430 | |||||||
Other comprehensive income (loss) | (680) | (680) | |||||||
Total comprehensive income (loss) | (250) | 430 | (680) | ||||||
Ending balance (in shares) at Sep. 30, 2023 | 2,000,000 | 466,000,000 | |||||||
Ending balance at Sep. 30, 2023 | $ 22,878 | $ 2,014 | $ 6 | $ 22,231 | $ 9,856 | $ (5,986) | $ (5,243) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
OPERATING ACTIVITIES | |||
Net income | $ 1,419 | $ 1,420 | |
Adjustments to reconcile net income to net change in cash due to operating activities: | |||
Provision (benefit) for credit losses | 516 | 342 | |
Net change in loans held for sale, at fair value | 25 | 1,404 | |
Depreciation, amortization and accretion | 352 | 448 | |
Deferred income tax expense (benefit) | (61) | 124 | |
Share-based compensation | 73 | 68 | |
Net gain on sales of assets | (19) | (5) | |
Net (increase) decrease in other assets | (732) | (1,700) | |
Net increase (decrease) in other liabilities | 718 | 577 | |
Net change due to operating activities | 2,291 | 2,678 | |
Investment securities: | |||
Purchases of debt securities available for sale | (5,576) | (9,772) | |
Proceeds from maturities and paydowns of debt securities available for sale | 1,481 | 2,843 | |
Proceeds from sales of debt securities available for sale | 2,429 | 1,057 | |
Proceeds from maturities and paydowns of debt securities held to maturity | 597 | 772 | |
Net (increase) decrease in interest-bearing deposits in banks | (21) | 55 | |
Acquisitions, net of cash acquired | [1] | 0 | (235) |
Purchases of loans | 0 | (1,007) | |
Sales of loans | 2,628 | 1,718 | |
Net (increase) decrease in loans and leases | 3,790 | (6,937) | |
Capital expenditures, net | (124) | (141) | |
Purchase of bank-owned life insurance | 0 | (100) | |
Other | (181) | (732) | |
Net change due to investing activities | 5,023 | (12,479) | |
FINANCING ACTIVITIES | |||
Net increase (decrease) in deposits | (2,527) | 3,988 | |
Net increase (decrease) in short-term borrowed funds | 229 | 174 | |
Proceeds from issuance of long-term borrowed funds | 21,233 | 11,516 | |
Repayments of long-term borrowed funds | (19,766) | (6,190) | |
Treasury stock purchased | (906) | (2) | |
Dividends paid to common stockholders | (609) | (569) | |
Dividends paid to preferred stockholders | (89) | (90) | |
Payments of employee tax withholding for share-based compensation | (26) | (24) | |
Net change due to financing activities | (2,461) | 8,803 | |
Net change in cash and cash equivalents | [2] | 4,853 | (998) |
Cash and cash equivalents at beginning of period | [2] | 10,547 | 9,158 |
Cash and cash equivalents at end of period | [2] | 15,400 | 8,160 |
Non-cash items: | |||
Transfer of loans from portfolio to LHFS | 2,582 | 0 | |
Transfer of securities from available for sale to held to maturity | 0 | 8,563 | |
Investors Acquisition: | |||
Fair value of assets acquired, excluding cash and cash equivalents | 0 | 27,102 | |
Goodwill and other intangible assets | 0 | 996 | |
Fair value of liabilities assumed | 0 | 24,975 | |
Common stock issued | 0 | 3,035 | |
Replacement equity awards | $ 0 | $ 19 | |
[1]Primarily includes cash paid of $355 million to acquire Investors less $287 million in cash acquired, and $143 million and $23 million of cash paid for the HSBC transaction and acquisition of DH Capital, respectively, for the nine months ended September 30, 2022.[2]Cash and cash equivalents include cash and due from banks and interest-bearing cash and due from banks as reflected on the Consolidated Balance Sheets. |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Apr. 06, 2022 | Sep. 30, 2022 | |
Investors Acquisition | ||
Cash consideration | $ 355 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 287 | |
80 Branches and Deposit Business, HSBC Bank | ||
Cash consideration | $ 143 | |
DH Capital, LLC | ||
Cash consideration | $ 23 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 - BASIS OF PRESENTATION Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements and Notes have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not include all information and notes included in annual financial statements prepared in accordance with GAAP. The Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the interim period results presented. These unaudited interim financial statements and notes should be read in conjunction with the audited Consolidated Financial Statements and Notes included in the Company’s 2022 Form 10-K. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year. The unaudited interim Consolidated Financial Statements include the accounts of Citizens and its subsidiaries, including VIEs in which Citizens is a primary beneficiary. Investments in VIEs in which the Company does not have the ability to exercise significant influence are not consolidated. All intercompany transactions and balances have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the ACL and the evaluation and measurement of goodwill impairment. During the third quarter of 2023, the Company’s indirect auto and certain purchased consumer loan portfolios were transferred from Consumer Banking into a new Non-Core segment to reflect the manner in which management is currently assessing performance and allocating resources. Prior period results have been revised to conform to the new segment presentation. See Note 17 for additional information. Significant Accounting Policies For further information regarding the Company’s significant accounting policies, see Note 1 in the Company’s 2022 Form 10-K. During 2023, the Company adopted new accounting guidance as described below. Accounting Pronouncements Adopted in 2023 Pronouncement Summary of Guidance Effects on Financial Statements Troubled Debt Restructurings and Vintage Disclosures Issued March 2022 • Effective date: January 1, 2023. • Eliminates the separate recognition and measurement guidance for TDRs. • Requires evaluation of all modifications to borrowers experiencing financial difficulty (or FDMs) to determine whether the modification results in a new loan or continuation of an existing loan. • Requires expected credit losses measured under a discounted cash flow method to be determined using an effective interest rate based on the modified (not original) contractual terms of the loan. • Enhances disclosures by creditors for modifications of receivables from borrowers experiencing financial difficulty in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay or a term extension. • Requires disclosure of current period gross charge-offs by vintage year for loans and net investments in leases. • Transition is prospective, with an option to adopt the recognition and measurement guidance for TDRs on a modified retrospective basis, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. • The Company adopted the new standard on January 1, 2023, and elected to apply the new measurement and recognition guidance for legacy TDRs under the modified retrospective transition method. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Required disclosures and discussion of significant accounting policies for modifications to borrowers experiencing financial difficulty are included in Note 4. • Disclosure of gross charge-offs by vintage year did not have a material impact on the Company’s Consolidated Financial Statements. Fair Value Hedging - Portfolio Layer Method Issued March 2022 • Effective date: January 1, 2023. • Replaces the ‘last-of-layer’ method. • Allows the designation of multiple layers in a closed portfolio of financial assets. • Permits hedging of non-prepayable and prepayable assets. • Prohibits the consideration of basis adjustments when measuring expected credit losses of assets in the closed portfolio or determining whether an AFS security is impaired. • The guidance on hedging multiple layers in a closed portfolio is applied prospectively. The guidance on the accounting for fair value basis adjustments is applied on a modified retrospective basis. • The Company adopted the new standard on January 1, 2023. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023 • Effective date: January 1, 2024. • Permits use of the proportional amortization method of accounting for all tax equity investments provided that certain conditions are met. • Proportional amortization method is elected on a tax-credit-program-by-tax-credit-program basis. • Permits adoption under the modified retrospective method or retrospective method through a cumulative-effect adjustment to retained earnings as of the beginning of the current period or first period presented, respectively. Early adoption is permitted. • The Company adopted the new standard on January 1, 2023 for renewable energy and new markets tax credit investments under the modified retrospective approach. • Adoption resulted in a cumulative-effect reduction of $26 million, net of taxes, to retained earnings and a corresponding reduction to other assets of $101 million and other liabilities of $75 million, reflecting the elimination of deferred tax liabilities associated with renewable energy investments that qualify for the proportional amortization method of accounting. • Refer to Note 7 for additional information. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | NOTE 2 - SECURITIES The following table presents the major components of securities at amortized cost and fair value: September 30, 2023 December 31, 2022 (dollars in millions) Amortized Cost (1) Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury and other $4,025 $— ($251) $3,774 $3,678 $1 ($193) $3,486 State and political subdivisions 2 — — 2 2 — — 2 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 23,101 1 (2,845) 20,257 21,250 10 (2,198) 19,062 Other/non-agency 279 — (32) 247 280 — (29) 251 Total mortgage-backed securities 23,380 1 (2,877) 20,504 21,530 10 (2,227) 19,313 Collateralized loan obligations 797 — (8) 789 1,248 — (42) 1,206 Total debt securities available for sale, at fair value $28,204 $1 ($3,136) $25,069 $26,458 $11 ($2,462) $24,007 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities $8,810 $— ($1,241) $7,569 $9,253 $4 ($751) $8,506 Total mortgage-backed securities 8,810 — (1,241) 7,569 9,253 4 (751) 8,506 Asset-backed securities 510 1 (26) 485 581 — (45) 536 Total debt securities held to maturity $9,320 $1 ($1,267) $8,054 $9,834 $4 ($796) $9,042 Equity securities, at cost (2) $995 $— $— $995 $1,058 $— $— $1,058 Equity securities, at fair value (2) 163 — — 163 153 — — 153 (1) Excludes portfolio level basis adjustments of $17 million for securities designated in active fair value hedge relationships. The basis adjustments represent a reduction to the amortized cost of the securities being hedged. (2) Included in other assets in the Consolidated Balance Sheets. Accrued interest receivable on debt securities totaled $127 million and $107 million as of September 30, 2023 and December 31, 2022, respectively, and is included in other assets in the Consolidated Balance Sheets. The following table presents the amortized cost and fair value of debt securities by contractual maturity as of September 30, 2023. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without incurring penalties. Distribution of Maturities (dollars 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 $— $2,688 $1,337 $— $4,025 State and political subdivisions — — 2 2 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — 1,406 2,431 19,264 23,101 Other/non-agency — — — 279 279 Collateralized loan obligations — — 25 772 797 Total debt securities available for sale — 4,094 3,793 20,317 28,204 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 8,810 8,810 Asset-backed securities — 510 — — 510 Total debt securities held to maturity — 510 — 8,810 9,320 Total amortized cost of debt securities $— $4,604 $3,793 $29,127 $37,524 Fair value: U.S. Treasury and other $— $2,513 $1,261 $— $3,774 State and political subdivisions — — — 2 2 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — 1,313 2,225 16,719 20,257 Other/non-agency — — — 247 247 Collateralized loan obligations — — 25 764 789 Total debt securities available for sale — 3,826 3,511 17,732 25,069 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 7,569 7,569 Asset-backed securities — 485 — — 485 Total debt securities held to maturity — 485 — 7,569 8,054 Total fair value of debt securities $— $4,311 $3,511 $25,301 $33,123 Taxable interest income from investment securities as presented in the Consolidated Statements of Operations was $290 million and $243 million for the three months ended September 30, 2023 and 2022, respectively, and $823 million and $582 million for the nine months ended September 30, 2023 and 2022, respectively. The following table presents realized gains and losses on sale of securities: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Gains $9 $— $27 $9 Losses (4) — (8) (4) Securities gains, net $5 $— $19 $5 The following table presents the amortized cost and fair value of debt securities pledged: September 30, 2023 December 31, 2022 (dollars in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against derivatives, to qualify for fiduciary powers, or to secure public and other deposits as required by law $5,739 $4,945 $3,966 $3,527 Pledged as collateral for FHLB borrowing capacity 243 213 244 217 Pledged against repurchase agreements 250 248 — — The Company 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. These repurchase agreements are typically short-term in nature and are accounted for as secured borrowed funds in the Company’s Consolidated Balance Sheets. The Company recognized no offsetting of short-term receivables or payables as of September 30, 2023 or December 31, 2022. Securitizations of mortgage loans retained in the investment portfolio were $65 million for the three and nine months ended September 30, 2023. Securitizations of mortgage loans retained in the investment portfolio were $59 million and $99 million for the three and nine months ended September 30, 2022, respectively. These securitizations include a substantive guarantee by a third party. The guarantors were FNMA and FHLMC in 2023 and 2022. The debt securities received from the guarantors are classified as AFS. Impairment The Company evaluated its existing HTM portfolio as of September 30, 2023 and concluded that 95% of HTM securities met the zero expected credit loss criteria and, therefore, no ACL was recognized. Lifetime expected credit losses on the remainder of the HTM portfolio were determined to be insignificant based on the modeling of the Company’s credit loss position in the securities. The Company monitors the credit exposure through the use of credit quality indicators. For these securities, the Company uses external credit ratings or an internally derived credit rating when an external rating is not available. All securities were determined to be investment grade at September 30, 2023. The following tables present AFS debt securities with fair values below their respective carrying values, separated by the duration the securities have been in a continuous unrealized loss position: September 30, 2023 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 U.S. Treasury and other $583 ($12) $3,142 ($239) $3,725 ($251) Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 3,796 (111) 15,897 (2,734) 19,693 (2,845) Other/non-agency — — 247 (32) 247 (32) Total mortgage-backed securities 3,796 (111) 16,144 (2,766) 19,940 (2,877) Collateralized loan obligations 32 — 757 (8) 789 (8) Total $4,411 ($123) $20,043 ($3,013) $24,454 ($3,136) December 31, 2022 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 U.S. Treasury and other $3,356 ($193) $— $— $3,356 ($193) Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 13,353 (1,136) 5,042 (1,062) 18,395 (2,198) Other/non-agency 80 (8) 171 (21) 251 (29) Total mortgage-backed securities 13,433 (1,144) 5,213 (1,083) 18,646 (2,227) Collateralized loan obligations 785 (26) 421 (16) 1,206 (42) Total $17,574 ($1,363) $5,634 ($1,099) $23,208 ($2,462) |
LOANS AND LEASES
LOANS AND LEASES | 9 Months Ended |
Sep. 30, 2023 | |
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. The following table presents loans and leases, excluding LHFS: (dollars in millions) September 30, 2023 December 31, 2022 Commercial and industrial $46,753 $51,836 Commercial real estate 29,486 28,865 Leases 1,218 1,479 Total commercial 77,457 82,180 Residential mortgages 30,983 29,921 Home equity 14,729 14,043 Automobile 9,290 12,292 Education 12,134 12,808 Other retail 5,153 5,418 Total retail 72,289 74,482 Total loans and leases $149,746 $156,662 Accrued interest receivable on loans and leases held for investment totaled $887 million and $820 million as of September 30, 2023 and December 31, 2022, respectively, and is included in other assets in the Consolidated Balance Sheets. Loans pledged as collateral for FHLB borrowing capacity, primarily residential mortgages and home equity products, totaled $37.1 billion and $38.4 billion at September 30, 2023 and December 31, 2022, respectively. Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window, if necessary, were primarily comprised of education, automobile, commercial and industrial, and commercial real estate loans, and totaled $31.1 billion and $34.8 billion at September 30, 2023 and December 31, 2022, respectively. In addition to loans pledged as collateral to secure borrowing capacity, the Company has secured borrowing arrangements collateralized by auto loans. See Note 7 for additional information. Interest income on direct financing and sales-type leases for the three months ended September 30, 2023 and 2022 was $12 million and $13 million, respectively, and is reported within interest and fees on loans and leases in the Consolidated Statements of Operations. For the nine months ended September 30, 2023 and 2022, this interest income was $36 million and $34 million, respectively. The following table presents the composition of LHFS: September 30, 2023 December 31, 2022 (dollars in millions) Residential Mortgages (1) Commercial (2) Total Residential Mortgages (1) Commercial (2) Total Loans held for sale at fair value $739 $10 $749 $666 $108 $774 Other loans held for sale — 99 99 — 208 208 (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 primarily consist of loans associated with the Company’s syndication business. |
CREDIT QUALITY AND THE ALLOWANC
CREDIT QUALITY AND THE ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
CREDIT QUALITY AND THE ALLOWANCE FOR CREDIT LOSSES | NOTE 4 - CREDIT QUALITY AND THE ALLOWANCE FOR CREDIT LOSSES 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 allowance for unfunded lending commitments (collectively the ACL). The Company’s estimate of expected credit losses considers extensive historical loss experience, including the impact of loss mitigation and restructuring programs that the Company offers to borrowers experiencing financial difficulty, as well as projected loss severity as a result of loan default. Effective January 1, 2023, the Company adopted new accounting guidance that eliminates the separate recognition and measurement of TDRs. Upon adoption of this guidance, the ACL for loans previously identified as TDRs is measured at the product level based on post-modification credit attributes and use of an econometric model. For a detailed discussion of the ACL reserve methodology and estimation techniques as of December 31, 2022, see Note 6 in the Company’s 2022 Form 10-K. There were no significant changes to the ACL reserve methodology during the nine months ended September 30, 2023. The following table presents a summary of changes in the ACL for the three and nine months ended September 30, 2023: Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 (dollars in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $1,157 $887 $2,044 $1,060 $923 $1,983 Charge-offs (74) (117) (191) (212) (339) (551) Recoveries 4 34 38 14 99 113 Net charge-offs (70) (83) (153) (198) (240) (438) Provision expense (benefit) for loans and leases 146 43 189 371 164 535 Allowance for loan and lease losses, end of period 1,233 847 2,080 1,233 847 2,080 Allowance for unfunded lending commitments, beginning of period 213 42 255 207 50 257 Provision expense (benefit) for unfunded lending commitments (21) 4 (17) (15) (4) (19) Allowance for unfunded lending commitments, end of period 192 46 238 192 46 238 Total allowance for credit losses, end of period $1,425 $893 $2,318 $1,425 $893 $2,318 During the nine months ended September 30, 2023, net charge-offs of $438 million and a provision for expected credit losses of $516 million resulted in an increase of $78 million to the ACL. Our ACL as of September 30, 2023 accounts for an economic forecast over our two-year reasonable and supportable period with implied peak unemployment of approximately 6% and peak-to-trough GDP decline of approximately 1.0%. This forecast reflects a mild recession over the two-year reasonable and supportable period. The following table presents a summary of changes in the ACL for the three and nine months ended September 30, 2022: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (dollars in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $987 $977 $1,964 $821 $937 $1,758 Allowance on PCD loans and leases at acquisition — — — 99 2 101 Charge-offs (1) (22) (94) (116) (49) (259) (308) Recoveries 7 35 42 13 113 126 Net charge-offs (15) (59) (74) (36) (146) (182) Provision expense (benefit) for loans and leases (2) 58 32 90 146 157 303 Allowance for loan and lease losses, end of period 1,030 950 1,980 1,030 950 1,980 Allowance for unfunded lending commitments, beginning of period 166 17 183 153 23 176 Provision expense (benefit) for unfunded lending commitments 6 27 33 18 21 39 Allowance on PCD unfunded lending commitments at acquisition — — — 1 — 1 Allowance for unfunded lending commitments, end of period 172 44 216 172 44 216 Total allowance for credit losses, end of period $1,202 $994 $2,196 $1,202 $994 $2,196 (1) Excludes $33 million of charge-offs previously taken by Investors or recognized upon completion of the Investors acquisition under purchase accounting for the nine months ended September 30, 2022. The initial allowance for loan and lease losses on PCD assets included these amounts and, after charging these amounts off upon acquisition, the net impact for PCD assets was $101 million of additional allowance for loan and lease losses. (2) Includes $169 million of initial provision expense related to non-PCD loans and leases acquired from Investors and HSBC for the nine months ended September 30, 2022. Credit Quality Indicators The Company presents loan and lease portfolio segments and classes 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. Renewals are categorized as new credit decisions and reflect the renewal date as the vintage date, except for renewals of loans modified for borrowers experiencing financial difficulty, or FDMs, which are presented in the original vintage. Citizens utilizes regulatory classification ratings to monitor credit quality for commercial loans and leases. For more information on regulatory classification ratings see Note 6 in the Company’s 2022 Form 10-K. The following table presents the amortized cost basis of commercial loans and leases by vintage date and regulatory classification rating as of September 30, 2023, and gross charge-offs by vintage date for the nine months ended September 30, 2023: Term Loans by Origination Year Revolving Loans (dollars in millions) 2023 2022 2021 2020 2019 Prior to 2019 Within the Revolving Period Converted to Term Total Commercial and industrial Pass $2,539 $6,979 $5,557 $1,459 $1,244 $2,217 $22,929 $52 $42,976 Special Mention 6 172 448 81 72 214 552 — 1,545 Substandard — 285 320 207 112 314 742 10 1,990 Doubtful — 26 41 9 4 102 56 4 242 Total commercial and industrial 2,545 7,462 6,366 1,756 1,432 2,847 24,279 66 46,753 Gross charge-offs — 1 32 4 1 24 35 — 97 Commercial real estate Pass 1,366 5,516 6,193 2,823 2,300 4,334 1,833 9 24,374 Special Mention — 640 528 158 500 235 84 — 2,145 Substandard — 244 157 540 468 947 141 — 2,497 Doubtful — 92 2 9 147 217 3 — 470 Total commercial real estate 1,366 6,492 6,880 3,530 3,415 5,733 2,061 9 29,486 Gross charge-offs — — — 51 11 53 — — 115 Leases Pass 67 182 295 202 69 323 — — 1,138 Special Mention — 28 1 1 2 — — — 32 Substandard 3 15 13 6 5 3 — — 45 Doubtful — — 3 — — — — — 3 Total leases 70 225 312 209 76 326 — — 1,218 Gross charge-offs — — — — — — — — — Total commercial Pass 3,972 12,677 12,045 4,484 3,613 6,874 24,762 61 68,488 Special Mention 6 840 977 240 574 449 636 — 3,722 Substandard 3 544 490 753 585 1,264 883 10 4,532 Doubtful — 118 46 18 151 319 59 4 715 Total commercial $3,981 $14,179 $13,558 $5,495 $4,923 $8,906 $26,340 $75 $77,457 Gross charge-offs $— $1 $32 $55 $12 $77 $35 $— $212 The following table presents the amortized cost basis of commercial loans and leases by vintage date and regulatory classification rating as of December 31, 2022: Term Loans by Origination Year Revolving Loans (dollars in millions) 2022 2021 2020 2019 2018 Prior to 2018 Within the Revolving Period Converted to Term Total Commercial and industrial Pass $8,304 $8,469 $2,224 $2,074 $1,334 $1,952 $24,211 $148 $48,716 Special Mention 124 189 120 74 48 153 364 — 1,072 Substandard 150 218 203 255 99 349 597 14 1,885 Doubtful 10 14 1 5 41 14 76 2 163 Total commercial and industrial 8,588 8,890 2,548 2,408 1,522 2,468 25,248 164 51,836 Commercial real estate Pass 5,767 6,442 3,639 3,066 2,145 3,536 1,888 3 26,486 Special Mention 1 119 103 390 99 113 62 — 887 Substandard 92 18 79 253 350 610 23 — 1,425 Doubtful — 2 9 55 — 1 — — 67 Total commercial real estate 5,860 6,581 3,830 3,764 2,594 4,260 1,973 3 28,865 Leases Pass 263 363 250 99 128 345 — — 1,448 Special Mention 4 5 2 6 1 3 — — 21 Substandard — 4 3 3 — — — — 10 Doubtful — — — — — — — — — Total leases 267 372 255 108 129 348 — — 1,479 Total commercial Pass 14,334 15,274 6,113 5,239 3,607 5,833 26,099 151 76,650 Special Mention 129 313 225 470 148 269 426 — 1,980 Substandard 242 240 285 511 449 959 620 14 3,320 Doubtful 10 16 10 60 41 15 76 2 230 Total commercial $14,715 $15,843 $6,633 $6,280 $4,245 $7,076 $27,221 $167 $82,180 For retail loans, Citizens utilizes FICO credit scores and the loan’s payment and delinquency status to monitor credit quality. Management believes FICO scores are the strongest indicator of credit losses over the contractual life of the loan and assist management in predicting the borrower’s future payment performance. Scores are based on current and historical national industry-wide consumer level credit performance data. The following table presents the amortized cost basis of retail loans by vintage date and current FICO score as of September 30, 2023, and gross charge-offs by vintage date for the nine months ended September 30, 2023: Term Loans by Origination Year Revolving Loans (dollars in millions) 2023 2022 2021 2020 2019 Prior to 2019 Within the Revolving Period Converted to Term Total Residential mortgages 800+ $620 $2,988 $5,167 $3,115 $1,141 $3,233 $— $— $16,264 740-799 987 1,990 2,645 1,487 618 1,699 — — 9,426 680-739 272 652 771 458 277 855 — — 3,285 620-679 44 133 164 96 108 459 — — 1,004 <620 4 38 103 94 166 578 — — 983 No FICO available (1) — — 2 1 3 15 — — 21 Total residential mortgages 1,927 5,801 8,852 5,251 2,313 6,839 — — 30,983 Gross charge-offs — — — — 1 2 — — 3 Home equity 800+ — 4 4 2 5 95 5,084 236 5,430 740-799 — 2 2 1 4 89 4,539 249 4,886 680-739 — — 1 2 4 98 2,569 207 2,881 620-679 — 1 1 2 9 83 688 134 918 <620 — 1 1 2 10 85 303 212 614 Total home equity — 8 9 9 32 450 13,183 1,038 14,729 Gross charge-offs — — — — — 2 6 — 8 Automobile 800+ 85 573 1,165 421 198 68 — — 2,510 740-799 146 740 1,164 433 203 74 — — 2,760 680-739 163 647 808 295 145 57 — — 2,115 620-679 107 362 389 130 78 37 — — 1,103 <620 40 232 302 110 76 42 — — 802 Total automobile 541 2,554 3,828 1,389 700 278 — — 9,290 Gross charge-offs — 24 31 11 9 7 — — 82 Education 800+ 254 674 1,670 1,460 625 1,247 — — 5,930 740-799 304 717 1,108 908 389 717 — — 4,143 680-739 123 308 350 282 137 314 — — 1,514 620-679 21 64 68 57 34 111 — — 355 <620 3 16 24 24 15 55 — — 137 No FICO available (1) 18 — — — — 37 — — 55 Total education 723 1,779 3,220 2,731 1,200 2,481 — — 12,134 Gross charge-offs — 3 12 16 10 35 — — 76 Other retail 800+ 125 116 49 45 22 24 500 — 881 740-799 169 131 59 60 29 25 998 1 1,472 680-739 146 101 50 50 25 15 1,020 2 1,409 620-679 82 61 29 25 8 5 441 2 653 <620 15 38 20 16 5 3 246 3 346 No FICO available (1) 20 3 — 2 — — 367 — 392 Total other retail 557 450 207 198 89 72 3,572 8 5,153 Gross charge-offs 36 22 7 6 8 7 84 — 170 Total retail 800+ 1,084 4,355 8,055 5,043 1,991 4,667 5,584 236 31,015 740-799 1,606 3,580 4,978 2,889 1,243 2,604 5,537 250 22,687 680-739 704 1,708 1,980 1,087 588 1,339 3,589 209 11,204 620-679 254 621 651 310 237 695 1,129 136 4,033 <620 62 325 450 246 272 763 549 215 2,882 No FICO available (1) 38 3 2 3 3 52 367 — 468 Total retail $3,748 $10,592 $16,116 $9,578 $4,334 $10,120 $16,755 $1,046 $72,289 Gross charge-offs $36 $49 $50 $33 $28 $53 $90 $— $339 (1) Represents loans for which an updated FICO score was unavailable (e.g., due to recent profile changes). The following table presents the amortized cost basis of retail loans by vintage date and current FICO score as of December 31, 2022: Term Loans by Origination Year Revolving Loans (dollars in millions) 2022 2021 2020 2019 2018 Prior to 2018 Within the Revolving Period Converted to Term Total Residential mortgages 800+ $2,132 $4,943 $3,143 $1,180 $363 $3,081 $— $— $14,842 740-799 2,376 2,991 1,660 638 257 1,635 — — 9,557 680-739 769 899 502 308 149 851 — — 3,478 620-679 125 168 135 138 99 422 — — 1,087 <620 17 68 77 165 147 455 — — 929 No FICO available (1) 2 2 2 3 2 17 — — 28 Total residential mortgages 5,421 9,071 5,519 2,432 1,017 6,461 — — 29,921 Home equity 800+ 4 5 2 5 6 110 4,958 267 5,357 740-799 2 2 1 4 6 97 4,350 274 4,736 680-739 1 1 1 6 11 114 2,296 234 2,664 620-679 — 1 2 9 16 93 558 143 822 <620 — — 2 12 18 82 178 172 464 Total home equity 7 9 8 36 57 496 12,340 1,090 14,043 Automobile 800+ 650 1,453 584 324 120 54 — — 3,185 740-799 962 1,606 649 343 134 56 — — 3,750 680-739 920 1,187 460 254 102 44 — — 2,967 620-679 554 586 205 133 62 28 — — 1,568 <620 188 309 130 106 56 31 — — 820 No FICO available (1) 2 — — — — — — — 2 Total automobile 3,276 5,141 2,028 1,160 474 213 — — 12,292 Education 800+ 548 1,720 1,567 694 410 1,068 — — 6,007 740-799 735 1,351 1,126 486 267 609 — — 4,574 680-739 363 423 356 170 103 288 — — 1,703 620-679 54 76 62 38 29 102 — — 361 <620 6 16 20 12 11 50 — — 115 No FICO available (1) 6 — — — — 42 — — 48 Total education 1,712 3,586 3,131 1,400 820 2,159 — — 12,808 Other retail 800+ 182 105 93 48 25 27 491 — 971 740-799 230 134 121 68 31 25 974 1 1,584 680-739 175 109 103 52 21 14 993 4 1,471 620-679 108 65 52 18 8 4 435 4 694 <620 35 30 25 9 4 2 190 6 301 No FICO available (1) 12 1 3 — — — 380 1 397 Total other retail 742 444 397 195 89 72 3,463 16 5,418 Total retail 800+ 3,516 8,226 5,389 2,251 924 4,340 5,449 267 30,362 740-799 4,305 6,084 3,557 1,539 695 2,422 5,324 275 24,201 680-739 2,228 2,619 1,422 790 386 1,311 3,289 238 12,283 620-679 841 896 456 336 214 649 993 147 4,532 <620 246 423 254 304 236 620 368 178 2,629 No FICO available (1) 22 3 5 3 2 59 380 1 475 Total retail $11,158 $18,251 $11,083 $5,223 $2,457 $9,401 $15,803 $1,106 $74,482 (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 tables present an aging analysis of accruing loans and leases, and nonaccrual loans and leases as of September 30, 2023 and December 31, 2022: September 30, 2023 Days Past Due and Accruing (dollars in millions) Current 30-59 60-89 90+ Nonaccrual Total Nonaccrual with no related ACL Commercial and industrial $46,475 $23 $9 $4 $242 $46,753 $43 Commercial real estate 28,896 75 42 3 470 29,486 48 Leases 1,215 — — — 3 1,218 — Total commercial 76,586 98 51 7 715 77,457 91 Residential mortgages (1) 30,416 110 50 217 190 30,983 149 Home equity 14,351 82 28 — 268 14,729 179 Automobile 9,031 147 50 — 62 9,290 7 Education 12,035 47 26 3 23 12,134 2 Other retail 5,014 49 31 21 38 5,153 — Total retail 70,847 435 185 241 581 72,289 337 Total $147,433 $533 $236 $248 $1,296 $149,746 $428 December 31, 2022 Days Past Due and Accruing (dollars in millions) Current 30-59 60-89 90+ Nonaccrual Total Nonaccrual with no related ACL Commercial and industrial $51,389 $152 $25 $21 $249 $51,836 $64 Commercial real estate 28,665 51 45 1 103 28,865 7 Leases 1,475 4 — — — 1,479 — Total commercial 81,529 207 70 22 352 82,180 71 Residential mortgages (1) 29,228 95 45 319 234 29,921 187 Home equity 13,719 64 19 — 241 14,043 185 Automobile 12,039 152 45 — 56 12,292 9 Education 12,718 36 17 4 33 12,808 3 Other retail 5,294 44 30 22 28 5,418 1 Total retail 72,998 391 156 345 592 74,482 385 Total $154,527 $598 $226 $367 $944 $156,662 $456 (1) 90+ days past due and accruing includes $216 million and $316 million of loans fully or partially guaranteed by the FHA, VA, and USDA at September 30, 2023 and December 31, 2022, respectively. 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 a loan or lease as nonaccrual. At September 30, 2023 and December 31, 2022, the Company had collateral-dependent residential mortgage and home equity loans totaling $542 million and $561 million, respectively. At September 30, 2023 and December 31, 2022, the Company had collateral-dependent commercial loans totaling $293 million and $21 million, respectively. The amortized cost basis of mortgage loans collateralized by residential real estate for which formal foreclosure proceedings were in-process was $321 million and $250 million as of September 30, 2023 and December 31, 2022, respectively. Loan Modifications to Borrowers Experiencing Financial Difficulty Effective January 1, 2023, the Company adopted accounting guidance that eliminates the recognition and measurement of TDRs. Upon adoption of this guidance, all loan modifications to borrowers experiencing financial difficulty, or FDMs, are evaluated to determine whether the modification should be accounted for as a new loan or a continuation of the existing loan. The existing loan is derecognized and the restructured loan is accounted for as a new loan if the effective yield on the restructured loan is at least equal to the effective yield for comparable loans with similar collection risk and the modification to the original loan is more than minor. Any unamortized fees and costs from the original loan are recognized in interest income when the new loan is granted. If a loan restructuring does not meet these conditions, the existing loan’s amortized cost basis is carried forward and the modified loan is accounted for as a continuation of the existing loan. FDMs are generally accounted for as a continuation of the existing loan given the terms are typically not at market rates. The Company offers loan modifications to retail and commercial borrowers as a result of its loss mitigation activities that may result in a payment delay, interest rate reduction, term extension, principal forgiveness, or combination thereof. Payment delays consist of modifications that result in a delay of contractual amounts due greater than three months over a rolling 12-month period. Commercial loan modifications are offered on a case-by-case basis and generally include a payment delay, term extension and/or interest rate reduction. The Company does not typically offer principal forgiveness for commercial loans. Retail loan modifications are offered through structured loan modification programs, which are summarized below. • Forbearance programs provide borrowers experiencing some form of hardship a period of time during which their contractual payment obligations are suspended, resulting in a payment delay and/or term extension. • Other repayment plans are offered due to hardship and include an interest rate reduction and/or term extension designed to enable the borrower to return the loan to current status in an expeditious manner. • Settlement agreements may be executed with borrowers experiencing a long-term hardship or who are delinquent, resulting in principal forgiveness. Upon fulfillment of the terms of the settlement agreement, the unpaid principal amount is forgiven resulting in a charge-off of the outstanding principal balance. • Certain reorganization bankruptcy judgments may result in any one of the four modification types or some combination thereof. The following tables present the period-end amortized cost of loans to borrowers experiencing financial difficulty that were modified during the three and nine months ended September 30, 2023, disaggregated by class of financing receivable and modification type. The modification type reflects the cumulative effect of all FDMs received during the indicated period. Three Months Ended September 30, 2023 (dollars in millions) Interest Rate Reduction Term Extension Payment Delay Principal Forgiveness Interest Rate Reduction and Term Extension Term Extension and Payment Delay Total Total as a % of Loan Class (1) Commercial and industrial $— $148 $47 $— $— $1 $196 0.42 % Commercial real estate — 131 — — 37 1 169 0.57 Total commercial — 279 47 — 37 2 365 0.47 Residential mortgages 2 25 — — 6 — 33 0.11 Home equity 1 1 — — 1 — 3 0.02 Automobile — — — — — — — — Education 3 — 1 — — — 4 0.03 Other retail 3 — — — — — 3 0.06 Total retail 9 26 1 — 7 — 43 0.06 Total (2) $9 $305 $48 $— $44 $2 $408 0.27 % Nine Months Ended September 30, 2023 (dollars in millions) Interest Rate Reduction Term Extension Payment Delay Principal Forgiveness Interest Rate Reduction and Term Extension Term Extension and Payment Delay Total Total as a % of Loan Class (1) Commercial and industrial $— $263 $78 $— $1 $2 $344 0.74 % Commercial real estate — 454 — — 37 1 492 1.67 Total commercial — 717 78 — 38 3 836 1.08 Residential mortgages 6 59 — — 16 — 81 0.26 Home equity 1 4 — — 5 — 10 0.07 Automobile — — — — — — — — Education 7 — 2 — — — 9 0.07 Other retail 8 — — — — — 8 0.16 Total retail 22 63 2 — 21 — 108 0.15 Total (2) $22 $780 $80 $— $59 $3 $944 0.63 % (1) Represents the total amortized cost as of period-end divided by the period-end amortized cost of the corresponding loan class. Accrued interest receivable is excluded from amortized cost and is immaterial. (2) Excludes borrowers that had their debt discharged by means of a Chapter 7 bankruptcy filing. The following tables present the financial effect of loans to borrowers experiencing financial difficulty that were modified during the three and nine months ended September 30, 2023, disaggregated by class of financing receivable. Three Months Ended September 30, 2023 Weighted-Average Interest Rate Reduction (1)(5) Weighted-Average Term Extension (in Months) (2)(5) Weighted-Average Payment Deferral (3)(5) Amount of Principal Forgiven (4) Commercial and industrial 2.32 % 17 $427,833 $— Commercial real estate 1.25 7 77,482 — Residential mortgages 0.98 47 — — Home equity 2.51 133 — — Automobile — — — — Education 4.95 — 4,972 — Other retail 18.86 — — 1 Nine Months Ended September 30, 2023 Weighted-Average Interest Rate Reduction (1)(5) Weighted-Average Term Extension (in Months) (2)(5) Weighted-Average Payment Deferral (3)(5) Amount of Principal Forgiven (4) Commercial and industrial 2.95 % 14 $562,909 $— Commercial real estate 1.25 8 47,172 — Residential mortgages 1.55 48 — — Home equity 2.24 127 2,343 — Automobile 3.47 20 1,253 — Education 4.97 — 4,171 — Other retail 18.45 — — 4 (1) Represents the weighted-average reduction of the loan’s interest rate. (2) Represents the weighted-average extension of a loan’s maturity date. (3) Represents the weighted-average amount of payments delayed as a result of the loan modification. Amounts are reported in whole dollars. (4) Amounts are recorded as charge-offs and are reported in millions. (5) Weighted based on period-end amortized cost. The following table presents an aging analysis of the period-end amortized cost of loans to borrowers experiencing financial difficulty that were modified during the nine months ended September 30, 2023, disaggregated by class of financing receivable. A loan in a forbearance or repayment plan is reported as past due according to its contractual terms until contractually modified. Subsequent to modification, it is reported as past due based on its restructured terms. September 30, 2023 Days Past Due and Accruing (dollars in millions) Current 30-59 60-89 90+ Nonaccrual Total Commercial and industrial $262 $— $— $— $82 $344 Commercial real estate 262 55 — — 175 492 Total commercial 524 55 — — 257 836 Residential mortgages 52 — 5 13 11 81 Home equity 3 — — — 7 10 Automobile — — — — — — Education 8 — — — 1 9 Other retail 6 1 — — 1 8 Total retail 69 1 5 13 20 108 Total $593 $56 $5 $13 $277 $944 The following tables present the period-end amortized cost of loans to borrowers experiencing financial difficulty that were modified on or after January 1, 2023 that subsequently defaulted during the three and nine months ended September 30, 2023, disaggregated by class of financing receivable and modification type. The modification type reflects the cumulative effect of all FDMs at the time of default. A loan is considered to be in default if, subsequent to modification, it becomes 90 or more days past due or is placed on nonaccrual status. Three Months Ended September 30, 2023 (dollars in millions) Interest Rate Reduction Term Extension Payment Delay Interest Rate Reduction and Term Extension Total Commercial and industrial $— $— $— $— $— Commercial real estate — 41 — — 41 Total commercial — 41 — — 41 Residential mortgages 1 6 — 5 12 Home equity — 1 — 2 3 Automobile — — — — — Education — — 1 — 1 Other retail — — — — — Total retail 1 7 1 7 16 Total $1 $48 $1 $7 $57 Nine Months Ended September 30, 2023 (dollars in millions) Interest Rate Reduction Term Extension Payment Delay Interest Rate Reduction and Term Extension Total Commercial and industrial $— $3 $— $— $3 Commercial real estate — 67 — — 67 Total commercial — 70 — — 70 Residential mortgages 1 6 — 5 12 Home equity — 1 — 2 3 Automobile — — — — — Education — — 1 — 1 Other retail — — — — — Total retail 1 7 1 7 16 Total $1 $77 $1 $7 $86 Unfunded commitments related to loans modified during the nine months ended September 30, 2023 were $146 million at September 30, 2023. Troubled Debt Restructuring Disclosures Prior to the Adoption of ASU 2022-02 The following tables summarize loans modified during the three and nine months ended September 30, 2022. The balances represent the post-modification outstanding amortized cost basis and may include loans that became TDRs during the period and were subsequently paid off in full, charged off, or sold prior to period end. Pre-modification balances for modified loans approximate the post-modification balances shown. Three Months Ended September 30, 2022 Amortized Cost Basis (dollars in millions) Number of Contracts Interest Rate Reduction (1) Maturity Extension (2) Other (3) Total Commercial and industrial 6 $— $2 $46 $48 Total commercial 6 — 2 46 48 Residential mortgages 185 6 21 13 40 Home equity 68 2 — 2 4 Automobile 135 — — 1 1 Education 245 — — 8 8 Other retail 590 2 — — 2 Total retail 1,223 10 21 24 55 Total 1,229 $10 $23 $70 $103 Nine Months Ended September 30, 2022 Amortized Cost Basis (dollars in millions) Number of Contracts Interest Rate Reduction (1) Maturity Extension (2) Other (3) Total Commercial and industrial 25 $— $26 $80 $106 Total commercial 25 — 26 80 106 Residential mortgages 1,656 44 74 248 366 Home equity 318 4 1 16 21 Automobile 447 1 — 3 4 Education 481 — — 19 19 Other retail 1,678 7 — 1 8 Total retail 4,580 56 75 287 418 Total 4,605 $56 $101 $367 $524 (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. Modified TDRs resulted in charge-offs of $2 million for the nine months ended September 30, 2022. Unfunded commitments related to TDRs were $81 million at December 31, 2022. The following table provides a summary of TDRs that defaulted (became 90 days or more past due) within 12 months of their modification date: Three Months Ended Nine Months Ended (dollars in millions) September 30, 2022 Commercial TDRs $— $— Retail TDRs (1) 28 224 Total $28 $224 (1) Includes $18 million and $174 million of loans fully or partially government guaranteed by the FHA, VA, and USDA for the three and nine months ended September 30, 2022, respectively. Concentrations of Credit Risk The Company’s lending activity is geographically well diversified with an emphasis in our core markets located in the New England, Mid-Atlantic and Midwest regions. Generally, loans are collateralized by assets including real estate, inventory, accounts receivable, other personal property and investment securities. As of September 30, 2023 and December 31, 2022, there were no material concentration risks within the commercial 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. |
MORTGAGE BANKING AND OTHER SERV
MORTGAGE BANKING AND OTHER SERVICED LOANS | 9 Months Ended |
Sep. 30, 2023 | |
Mortgage Banking [Abstract] | |
MORTGAGE BANKING AND OTHER SERVICED LOANS | NOTE 5 - MORTGAGE BANKING AND OTHER SERVICED LOANS The Company sells residential mortgages into the secondary market. The Company retains no beneficial interests in these sales, but may retain the servicing rights for the loans sold. The Company may exercise its option to repurchase eligible government guaranteed residential mortgages or may be 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 following table summarizes activity related to residential mortgage loans sold with servicing rights retained: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Cash proceeds from residential mortgage loans sold with servicing retained $3,270 $3,518 $7,358 $14,676 Repurchased residential mortgages (1) — — — 87 Gain on sales (2) 19 21 60 74 Contractually specified servicing, late and other ancillary fees (2) 76 75 230 213 (1) Includes government insured or guaranteed loans repurchased through the exercise of the Company’s removal of account provision option. (2) Reported in mortgage banking fees in the Consolidated Statements of Operations. The unpaid principal balance of residential mortgage loans related to our MSRs was $97.6 billion and $96.7 billion at September 30, 2023 and December 31, 2022, respectively. The Company manages the risk associated with changes in the value of the MSRs with an active economic hedging strategy, 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 September 30, As of and for the Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Fair value as of beginning of the period $1,524 $1,411 $1,530 $1,029 Amounts capitalized 47 70 104 244 Servicing rights acquired — — — 16 Changes in unpaid principal balance during the period (1) (42) (31) (124) (102) Changes in fair value during the period (2) 91 74 110 337 Fair value at end of the period $1,620 $1,524 $1,620 $1,524 (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. 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 of an immediate 10% and 20% adverse change in key economic assumptions to the current fair value of MSRs. 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. 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. (dollars in millions) September 30, 2023 December 31, 2022 Fair value $1,620 $1,530 Weighted average life (years) 9.1 9.1 Weighted average constant prepayment rate 6.4% 6.8% Decline in fair value from 10% adverse change $35 $34 Decline in fair value from 20% adverse change $67 $66 Weighted average option adjusted spread 630 bps 629 bps Decline in fair value from 10% adverse change $44 $43 Decline in fair value from 20% adverse change $89 $86 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. Other Serviced Loans From time to time, Citizens engages in other servicing relationships. The following table presents the unpaid principal balance of other serviced loans: (dollars in millions) September 30, 2023 December 31, 2022 Education $517 $602 Commercial and industrial (1) 94 91 (1) Represents the government guaranteed portion of SBA loans sold to outside investors |
GOODWILL
GOODWILL | 9 Months Ended |
Sep. 30, 2023 | |
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. The Company 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. Goodwill no longer retains its association with a particular acquisition once assigned to a reporting unit, 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 subject to an annual impairment test and not amortized. Goodwill is reviewed 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, a quantitative assessment of goodwill must be performed. The Company may elect to bypass the qualitative assessment and perform a quantitative assessment, which is used to identify potential impairment and 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 not to be impaired. If the carrying value of the reporting unit inclusive of goodwill exceeds fair value, an impairment loss is recognized for the excess, establishing a new basis in the goodwill, and cannot exceed the amount of goodwill assigned to the reporting unit. Subsequent reversal of goodwill impairment losses is not permitted. The fair value of the Company’s reporting units is determined using a combination of income and market-based approaches. The Company relies on several assumptions to estimate the fair value of its reporting units under the income-based approach including discount rate, projected loan losses, income tax and capital retention rates. In response to stress in the banking sector and associated market conditions, the Company performed a quantitative goodwill impairment assessment in the third quarter of 2023. Based on this quantitative assessment, the Company concluded that the estimated fair value of the Consumer Banking and Commercial Banking reporting units exceeded their carrying value. Therefore, the Company determined that there was no impairment to the carrying value of its goodwill as of September 30, 2023. Changes in the carrying value of goodwill for the nine months ended September 30, 2023 are presented below. (dollars in millions) Consumer Banking Commercial Banking Total Balance at December 31, 2022 $2,673 $5,500 $8,173 Business acquisitions 5 10 15 Balance at September 30, 2023 $2,678 $5,510 $8,188 Accumulated impairment losses related to the Consumer Banking and Commercial Banking reporting units totaled $5.9 billion and $50 million, respectively, at September 30, 2023 and December 31, 2022. No impairment was recorded for the three and nine months ended September 30, 2023 and 2022. For additional information on goodwill see Note 10 and Note 26 in the Company’s 2022 Form 10-K. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 7 - VARIABLE INTEREST ENTITIES Citizens, in the normal course of business, engages in a variety of activities with entities that are considered VIEs, as defined by GAAP, with its variable interest arising from contractual, ownership or other monetary interests in the entity. A VIE typically does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties. Citizens is the primary beneficiary of a VIE, and must consolidate it, if its variable interest provides it with the power to direct the activities that significantly impact the VIE and it has the right to receive benefits, or the obligation to absorb losses, that could potentially be significant to the VIE. Citizens considers both qualitative and quantitative factors regarding the nature, size and form of its involvement with the VIE to determine whether or not a variable interest held is significant to the VIE. Citizens assesses whether or not it is the primary beneficiary of a VIE on an ongoing basis. Transfers of financial assets in which the Company has not surrendered control over the transferred assets are accounted for as a secured borrowing with a pledge of collateral. Control is generally considered surrendered when 1) the transferred assets are legally isolated from the Company and its creditors, even in bankruptcy, 2) the transferee has the right to pledge or exchange the transferred assets it received, with no condition that constrains the transferee from taking advantage of this right or that provides more than a trivial benefit to the Company, and 3) the Company does not maintain effective control over the transferred financial assets. Judgment is required to assess whether the Company maintains effective control over transferred financial assets. For more details regarding the Company’s involvement with VIEs see Note 11 in the Company’s 2022 Form 10-K. Consolidated VIEs The Company has consolidated VIEs related to secured borrowings collateralized by auto loans. The following table summarizes the carrying amount of assets and liabilities for the Company’s consolidated VIEs: (dollars in millions) September 30, 2023 Assets: Cash and due from banks $196 Net loans and leases 3,647 Other assets 15 Total assets $3,858 Liabilities: Long-term borrowed funds $3,245 Other liabilities 10 Total liabilities $3,255 Secured Borrowings Citizens utilizes a portion of its auto loan portfolio to support certain secured borrowing arrangements, which provide a source of funding for the Company and involves the transfer of auto loans to bankruptcy remote special purpose entities (“SPEs”). These SPEs then issue asset-backed notes to third-parties collateralized by the transferred loans. Citizens holds certain residual interests in the loans and, therefore, has a right to receive benefits or the obligation to absorb losses that could potentially be significant to the SPEs. In addition, the Company retains servicing for the transferred loans and, therefore, holds the power to direct the most significant activities that impact the economic performance of the SPEs. As a result, the Company concluded that it is the primary beneficiary of these SPEs and, accordingly, consolidates these VIEs. The assets of a particular VIE are the primary source of funds to settle its obligations. Creditors of these VIEs do not have recourse to the general credit of the Company. The performance of the loans transferred to the SPEs is the most significant driver impacting the economic performance of the VIEs. Unconsolidated VIEs Citizens is involved with various VIEs that are not consolidated, including investments in entities that sponsor affordable housing, renewable energy and economic development projects, and asset-backed securities. In addition, Citizens provides lending facilities 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 investments, unfunded commitments, and the outstanding principal balance of loans to special purpose entities. A summary of these investments is presented below: (dollars in millions) September 30, 2023 December 31, 2022 Lending to special purpose entities included in loans and leases $4,860 $4,578 LIHTC investments included in other assets 2,395 2,230 LIHTC unfunded commitments included in other liabilities 1,045 1,046 Asset-backed investments included in HTM securities 510 581 Renewable energy investments included in other assets 243 374 NMTC investments included in other assets 3 4 Lending to Special Purpose Entities Citizens provides lending facilities to third-party sponsored special purpose entities. As of September 30, 2023 and December 31, 2022, the lending facilities had undrawn commitments to extend credit of $2.8 billion and $2.4 billion, respectively. For more information on commitments to extend credit see Note 12. Low Income Housing Tax Credit Partnerships The purpose of the Company’s LIHTC investments is to assist in achieving the goals of the Community Reinvestment Act and to earn an adequate return of capital. Renewable Energy Entities The Company’s investments in certain renewable energy entities provide benefits from government incentives and other tax attributes (e.g., tax depreciation). Effective January 1, 2023, the Company made an election to account for its renewable energy investments using the proportional amortization method under newly adopted accounting guidance. Under the proportional amortization method, the Company amortizes the initial cost of its qualifying renewable energy investments in proportion to the income tax credits and other income tax benefits received in the current period as compared to the total income tax credits and other income tax benefits expected to be received over the life of the investment. The net amortization and income tax credits and other income tax benefits received are included as a component of income tax expense (benefit). Contingent commitments related to the Company’s renewable energy investments were $7 million at September 30, 2023, and are expected to be paid in varying amounts through 2026. These payments are contingent upon the level of electricity production attained by the renewable energy entity relative to its targeted threshold and changes in the production tax credit rates set by the Internal Revenue Service. New Markets Tax Credit Program The Company participates in the NMTC program which provides a tax incentive for private sector investment into economic development projects and businesses located in low-income communities. The United States Department of the Treasury oversees the program and it is directly administered by the Community Development Financial Institutions Fund. The Company’s investments in entities that sponsor economic development projects provide income tax credits to offset federal taxable income over a specified period of time. Independent third parties manage these entities and have the power to direct the activities which most significantly affect their performance. Therefore, Citizens is not the primary beneficiary of these entities and does not consolidate these VIEs as a result. Effective January 1, 2023, the Company made an election to account for its NMTC investments using the proportional amortization method under newly adopted accounting guidance. Under the proportional amortization method, the Company applies a practical expedient and amortizes the initial cost of its qualifying NMTC investments in proportion to the income tax credits received in the current period as compared to the total income tax credits expected to be received over the life of the investment. The net amortization and income tax credits and other income tax benefits received are included as a component of income tax expense (benefit). The following table summarizes the impact to the Consolidated Statements of Operations relative to the Company’s tax credit programs for which it has elected to apply the proportional amortization method of accounting: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Tax credits recognized $76 $59 $250 $180 Other tax benefits recognized 17 15 55 46 Amortization (71) (61) (237) (190) Net benefit (expense) included in income tax expense 22 13 68 36 Other income 1 — 4 — Allocated income (loss) on investments (1) — (7) — Net benefit (expense) included in noninterest income — — (3) — Net benefit (expense) included in the Consolidated Statements of Operations (1) $22 $13 $65 $36 (1) Includes the impact of tax credit investments when the election to apply the proportional amortization method was in effect during the periods presented. For 2023, this includes LIHTC, renewable energy and NMTC investments, and for 2022, includes LIHTC investments. The Company did not recognize impairment losses resulting from the forfeiture or ineligibility of income tax credits or other circumstances during the three and nine months ended September 30, 2023 and 2022. |
BORROWED FUNDS
BORROWED FUNDS | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | NOTE 8 - BORROWED FUNDS Short-term borrowed funds Short-term borrowed funds were $232 million and $3 million as of September 30, 2023 and December 31, 2022, respectively. Long-term borrowed funds The following table presents a summary of the Company’s long-term borrowed funds: (dollars in millions) September 30, 2023 December 31, 2022 Parent Company: 3.750% fixed-rate subordinated debt, due July 2024 $90 $90 4.023% fixed-rate subordinated debt, due October 2024 17 17 4.350% fixed-rate subordinated debt, due August 2025 133 133 4.300% fixed-rate subordinated debt, due December 2025 336 336 2.850% fixed-rate senior unsecured notes, due July 2026 498 498 2.500% fixed-rate senior unsecured notes, due February 2030 298 298 3.250% fixed-rate senior unsecured notes, due April 2030 746 746 3.750% fixed-rate reset subordinated debt, due February 2031 69 69 4.300% fixed-rate reset subordinated debt, due February 2031 135 135 4.350% fixed-rate reset subordinated debt, due February 2031 60 61 2.638% fixed-rate subordinated debt, due September 2032 561 556 5.641% fixed-rate reset subordinated debt, due May 2037 398 397 CBNA’s Global Note Program: 3.700% senior unsecured notes, due March 2023 (1) — 497 5.676% floating-rate senior unsecured notes, due March 2023 (1)(2) — 250 2.250% senior unsecured notes, due April 2025 748 748 4.119% fixed/floating-rate senior unsecured notes, due May 2025 649 648 6.064% fixed/floating-rate senior unsecured notes, due October 2025 599 598 5.284% fixed/floating-rate senior unsecured notes, due January 2026 449 — 3.750% senior unsecured notes, due February 2026 473 475 4.575% fixed/floating-rate senior unsecured notes, due August 2028 798 797 Additional Borrowings by CBNA and Other Subsidiaries: Federal Home Loan Bank advances, 5.594% weighted average rate, due through 2041 (3) 7,036 8,519 Secured borrowings, 5.955% weighted average rate, due through 2030 (3)(4) 3,245 — Other 16 19 Total long-term borrowed funds $17,354 $15,887 (1) Notes were redeemed on February 27, 2023. (2) Rate disclosed reflects the floating rate as of September 30, 2023, or final floating rate as applicable. (3) Rate disclosed reflects the weighted average rate as of September 30, 2023. (4) Collateralized by auto loans. See Note 7 for additional information. At September 30, 2023, the Company’s long-term borrowed funds includes principal balances of $17.5 billion, unamortized debt issuance costs and discounts of $77 million, and hedging basis adjustments of ($26) million. At December 31, 2022, the Company’s long-term borrowed funds includes principal balances of $16.0 billion, unamortized debt issuance costs and discounts of $85 million, and hedging basis adjustments of ($27) million. 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 primarily by residential mortgages and home equity products sufficient to satisfy the collateral maintenance level established by the FHLB. The utilized FHLB borrowing capacity, primarily for advances and letters of credit, was $13.0 billion and $15.7 billion at September 30, 2023 and December 31, 2022, respectively. The Company’s available FHLB borrowing capacity was $12.7 billion and $11.5 billion at September 30, 2023 and December 31, 2022, respectively. Citizens can also borrow from the FRB discount window to meet short-term liquidity requirements. Collateral, including certain loans, is pledged to support this borrowing capacity. At September 30, 2023, the Company’s unused secured borrowing capacity was approximately $61.3 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 September 30, 2023: (dollars in millions) Parent Company CBNA and Other Subsidiaries Consolidated Year 2023 $— $1 $1 2024 107 892 999 2025 469 9,020 9,489 2026 498 2,133 2,631 2027 — 2 2 2028 and thereafter 2,267 1,965 4,232 Total $3,341 $14,013 $17,354 |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | NOTE 9 - DERIVATIVES In the normal course of business Citizens enters into derivative transactions to meet the financing and hedging needs of its customers and 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, certain commodities, forward commitments to sell TBAs, forward sale contracts and purchase options. The Company does not use derivatives for speculative purposes. Information regarding the valuation methodology and inputs used to estimate the fair value of the Company’s derivative instruments is described in Note 20 in the Company’s 2022 Form 10-K. The following table presents derivative instruments included in the Consolidated Balance Sheets: September 30, 2023 December 31, 2022 (dollars in millions) Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate contracts $89,502 $179 $57 $42,250 $16 $53 Derivatives not designated as hedging instruments: Interest rate contracts 200,389 260 1,785 174,384 331 1,579 Foreign exchange contracts 30,168 530 432 29,475 527 519 Commodities contracts 1,273 707 666 1,103 953 942 TBA contracts 3,561 17 5 2,370 7 14 Other contracts 887 5 3 913 5 4 Total derivatives not designated as hedging instruments 236,278 1,519 2,891 208,245 1,823 3,058 Total gross derivatives 325,780 1,698 2,948 250,495 1,839 3,111 Less: Gross amounts offset in the Consolidated Balance Sheets (1) (609) (609) (623) (623) Less: Cash collateral applied (1) (567) (230) (374) (579) Total net derivatives presented in the Consolidated Balance Sheets $522 $2,109 $842 $1,909 (1) Amounts represent the impact of enforceable master netting agreements that allow the Company to net settle positive and negative positions, as well as collateral paid and received. 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 all hedging relationships at inception, 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 the 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. During 2023, the Company entered into fair value hedges to manage interest rate risk within the AFS securities portfolio. 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 September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Affected Line Item in the Consolidated Statements of Operations Interest rate swaps hedging long-term borrowed funds ($1) ($19) $— ($71) Interest expense - long-term borrowed funds Hedged long-term borrowed funds attributable to the risk being hedged 1 19 — 70 Interest expense - long-term borrowed funds Interest rate swaps hedging LHFS — 18 — 15 Interest and fees on other loans held for sale Hedged loans held for sale attributable to the risk being hedged — (19) — (15) Interest and fees on other loans held for sale Interest rate swaps hedging debt securities available for sale 16 — 28 29 Interest income - investment securities Hedged debt securities available for sale attributable to the risk being hedged (16) — (28) (29) Interest income - investment securities The following table reflects amounts recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: (dollars in millions) September 30, 2023 December 31, 2022 Debt securities available for sale Long-term borrowed funds Debt securities available for sale Long-term borrowed funds Carrying amount of hedged assets $445 $— $— $— Carrying amount of hedged liabilities — 473 — 972 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items (17) (26) — (27) 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 AOCI to current period earnings (net interest income) in the same period that the hedged item affects earnings. Citizens has entered into 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. The Company has also entered into certain interest rate option agreements that utilize interest rate floors and caps, or some combination thereof, providing the ability to hedge the variability in cash flows within different interest rate bands. Option premiums paid and received are excluded from the assessment of hedge effectiveness and are amortized over the life of the instruments. 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 related to derivative instruments designated as cash flow hedges: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Amount of pre-tax net gains (losses) recognized in OCI ($326) ($996) ($773) ($1,901) Amount of pre-tax net gains (losses) reclassified from AOCI into interest income (156) (48) (420) 1 Amount of pre-tax net gains (losses) reclassified from AOCI into interest expense (1) 2 — (4) Using the interest rate curve at September 30, 2023 with respect to cash flow hedge strategies, the Company estimates that approximately $904 million in pre-tax net losses will be reclassified from AOCI to net interest income over the next 12 months, including $462 million related to terminated swaps. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations and the addition of other hedges subsequent to September 30, 2023. 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 MSRs. Customer derivatives include interest rate, foreign exchange and commodity 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 derivatives are entered into to hedge the risk of changes in the fair value of the Company’s MSRs. The following table presents the effect of economic hedges on noninterest income: Amounts Recognized in Three Months Ended September 30, Nine Months Ended September 30, Affected Line Item in the Consolidated Statements of Operations (dollars in millions) 2023 2022 2023 2022 Economic hedge type: Customer interest rate contracts ($448) ($840) ($1,028) ($2,015) Foreign exchange and derivative products Derivatives hedging interest rate risk 460 852 1,068 2,073 Foreign exchange and derivative products Customer foreign exchange contracts (77) (174) (72) (297) Foreign exchange and derivative products Derivatives hedging foreign exchange risk 141 271 121 520 Foreign exchange and derivative products Customer commodity contracts 168 (71) (401) 1,453 Foreign exchange and derivative products Derivatives hedging commodity price risk (158) 77 430 (1,436) Foreign exchange and derivative products Residential loan commitments (21) (66) (39) (289) Mortgage banking fees Derivatives hedging residential loan commitments and mortgage LHFS, at fair value 30 105 45 502 Mortgage banking fees Derivative contracts used to hedge residential MSRs (76) (68) (91) (310) Mortgage banking fees Total $19 $86 $33 $201 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 10 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables present the changes in the balances, net of income taxes, of each component of AOCI: As of and for the Three Months Ended September 30, (dollars in millions) Net Unrealized Gains (Losses) on Derivatives Net Unrealized Gains (Losses) on Debt Securities Employee Benefit Plans Total AOCI Balance at July 1, 2022 ($862) ($2,016) ($340) ($3,218) Other comprehensive income (loss) before reclassifications (738) (903) — (1,641) Amounts reclassified to the Consolidated Statements of Operations 34 — 2 36 Net other comprehensive income (loss) (704) (903) 2 (1,605) Balance at September 30, 2022 ($1,566) ($2,919) ($338) ($4,823) Balance at July 1, 2023 ($1,553) ($2,643) ($367) ($4,563) Other comprehensive income (loss) before reclassifications (248) (578) — (826) Amounts reclassified to the Consolidated Statements of Operations 120 23 3 146 Net other comprehensive income (loss) (128) (555) 3 (680) Balance at September 30, 2023 ($1,681) ($3,198) ($364) ($5,243) Primary location in the Consolidated Statements of Operations of amounts reclassified from AOCI Net interest income Securities gains, net Other operating expense As of and for the Nine Months Ended September 30, (dollars in millions) Net Unrealized Gains (Losses) on Derivatives Net Unrealized Gains (Losses) on Debt Securities Employee Benefit Plans Total AOCI Balance at January 1, 2022 ($161) ($156) ($348) ($665) Other comprehensive income (loss) before reclassifications (1,407) (2,759) — (4,166) Amounts reclassified to the Consolidated Statements of Operations 2 (4) 10 8 Net other comprehensive income (loss) (1,405) (2,763) 10 (4,158) Balance at September 30, 2022 ($1,566) ($2,919) ($338) ($4,823) Balance at January 1, 2023 ($1,416) ($2,771) ($373) ($4,560) Other comprehensive income (loss) before reclassifications (580) (490) — (1,070) Amounts reclassified to the Consolidated Statements of Operations 315 63 9 387 Net other comprehensive income (loss) (265) (427) 9 (683) Balance at September 30, 2023 ($1,681) ($3,198) ($364) ($5,243) Primary location in the Consolidated Statements of Operations of amounts reclassified from AOCI Net interest income Securities gains, net Other operating expense |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 11 - STOCKHOLDERS’ EQUITY Preferred Stock The following table summarizes the Company’s preferred stock: September 30, 2023 December 31, 2022 (dollars in millions, except per share data) Liquidation value per share Preferred Shares Carrying Amount Preferred Shares Carrying Amount Authorized ($25 par value per share) 100,000,000 100,000,000 Issued and outstanding: 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 1,000 400,000 395 400,000 395 Series G 1,000 300,000 296 300,000 296 Total 2,050,000 $2,014 2,050,000 $2,014 (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. For further detail regarding the terms and conditions of the Company’s preferred stock, see Note 17 in the Company’s 2022 Form 10-K. Dividends The following tables summarize the Company’s dividend activity for the three and nine months ended September 30, 2023 and 2022. Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 (dollars in millions, except per share data) Dividends Declared per Share Dividends Declared Dividends Paid Dividends Declared per Share Dividends Declared Dividends Paid Common stock $0.42 $199 $199 $0.42 $209 $209 Preferred stock Series B $21.81 $7 $9 $— $— $9 Series C 15.93 4 4 15.93 5 5 Series D 15.88 4 4 15.88 5 5 Series E 12.50 6 6 12.50 6 6 Series F 14.13 6 6 14.13 6 6 Series G 10.00 3 3 10.00 3 3 Total preferred stock $30 $32 $25 $34 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 (dollars in millions, except per share data) Dividends Declared per Share Dividends Declared Dividends Paid Dividends Declared per Share Dividends Declared Dividends Paid Common stock $1.26 $609 $609 $1.20 $569 $569 Preferred stock Series B $51.81 $16 $18 $30.00 $9 $18 Series C 47.81 14 14 47.81 15 15 Series D 47.63 14 14 47.63 14 14 Series E 37.50 17 17 37.50 17 17 Series F 42.38 17 17 42.38 17 17 Series G 30.00 9 9 30.00 9 9 Total preferred stock $87 $89 $81 $90 Treasury Stock During the nine months ended September 30, 2023, the Company repurchased $906 million, or 28,472,450 shares, of its outstanding common stock, which are held in treasury stock. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
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 19 in the Company’s 2022 Form 10-K. (dollars in millions) September 30, 2023 December 31, 2022 Commitments to extend credit $94,432 $96,076 Letters of credit 2,036 2,119 Loans sold with recourse 95 92 Marketing rights 18 23 Risk participation agreements 1 4 Total $96,582 $98,314 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. Letters of Credit Letters of credit in the table above reflect commercial, standby financial and standby performance letters of credit. Financial and performance standby letters of credit are issued by the Company for the benefit of 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. 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 allowances 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 multiple counterparties. At September 30, 2023, the remaining terms on these RPAs ranged from less than one year to seven 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, and mortgage-related issues. In addition, the Company engages in discussions with relevant governmental and regulatory authorities on a regular and ongoing basis regarding various issues, and any issues discussed or identified may result in investigatory or other action being taken. Litigation and regulatory matters may result in settlements, damages, fines, penalties, public or private censure, increased costs, required remediation, restrictions on business activities, or other impacts on the Company. In these disputes and proceedings, the Company contests liability and the amount of damages as appropriate. Given their complex nature, and based on the Company's experience, it may be years before some of these matters are finally resolved. Moreover, before liability can be reasonably estimated for a claim, numerous legal and factual issues may need to be examined, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal issues relevant to the proceedings in question. The Company cannot predict with certainty if, how, or when such claims will be resolved or what the eventual settlement, fine, penalty or other relief, if any, may be, particularly for claims that are at an early stage in their development or where claimants seek substantial or indeterminate damages. The Company recognizes a provision for a claim when, in the opinion of management after seeking legal advice, it is probable that a liability exists and the amount of loss can be reasonably estimated. In many proceedings, however, it is not possible to determine whether any loss is probable or to estimate the amount of any loss. Based on information currently available, the advice of legal counsel and other advisers, and established reserves, management believes that the aggregate liabilities, if any, potentially arising from these proceedings will not have a materially adverse effect on the Company’s unaudited interim Consolidated Financial Statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
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 industrial, and commercial real estate LHFS at fair value. The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of LHFS measured at fair value: September 30, 2023 December 31, 2022 (dollars in millions) Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Greater (Less) Than Aggregate Unpaid Principal Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Greater (Less) Than Aggregate Unpaid Principal Residential mortgage loans held for sale, at fair value $739 $734 $5 $666 $656 $10 Commercial and industrial, and commercial real estate loans held for sale, at fair value 10 12 (2) 108 127 (19) For more information on the election of the fair value option for these assets see Note 20 in the Company’s 2022 Form 10-K. 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 20 in the Company’s 2022 Form 10-K. The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities, on a recurring basis at September 30, 2023: (dollars in millions) Total Level 1 Level 2 Level 3 Debt securities available for sale: Mortgage-backed securities $20,504 $— $20,504 $— Collateralized loan obligations 789 — 789 — State and political subdivisions 2 — 2 — U.S. Treasury and other 3,774 3,774 — — Total debt securities available for sale 25,069 3,774 21,295 — Loans held for sale, at fair value: Residential loans held for sale 739 — 739 — Commercial loans held for sale 10 — 10 — Total loans held for sale, at fair value 749 — 749 — Mortgage servicing rights 1,620 — — 1,620 Derivative assets: Interest rate contracts 439 — 439 — Foreign exchange contracts 530 — 530 — Commodities contracts 707 — 707 — TBA contracts 17 — 17 — Other contracts 5 — — 5 Total derivative assets 1,698 — 1,693 5 Equity securities, at fair value (1) 106 106 — — Total assets $29,242 $3,880 $23,737 $1,625 Derivative liabilities: Interest rate contracts $1,842 $— $1,842 $— Foreign exchange contracts 432 — 432 — Commodities contracts 666 — 666 — TBA contracts 5 — 5 — Other contracts 3 — 1 2 Total derivative liabilities 2,948 — 2,946 2 Total liabilities $2,948 $— $2,946 $2 (1) Excludes investments of $57 million included in other assets in the Consolidated Balance Sheets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient. These investments include capital contributions to private investment funds and have unfunded capital commitments of $24 million at September 30, 2023, which may be called at any time during prescribed time periods. The credit exposure is generally limited to the carrying amount of investments made and unfunded capital commitments. The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities, on a recurring basis at December 31, 2022: (dollars in millions) Total Level 1 Level 2 Level 3 Debt securities available for sale: Mortgage-backed securities $19,313 $— $19,313 $— Collateralized loan obligations 1,206 — 1,206 — State and political subdivisions 2 — 2 — U.S. Treasury and other 3,486 3,486 — — Total debt securities available for sale 24,007 3,486 20,521 — Loans held for sale, at fair value: Residential loans held for sale 666 — 666 — Commercial loans held for sale 108 — 108 — Total loans held for sale, at fair value 774 — 774 — Mortgage servicing rights 1,530 — — 1,530 Derivative assets: Interest rate contracts 347 — 347 — Foreign exchange contracts 527 — 527 — Commodities contracts 953 — 953 — TBA contracts 7 — 7 — Other contracts 5 — — 5 Total derivative assets 1,839 — 1,834 5 Equity securities, at fair value (1) 110 110 — — Total assets $28,260 $3,596 $23,129 $1,535 Derivative liabilities: Interest rate contracts $1,632 $— $1,632 $— Foreign exchange contracts 519 — 519 — Commodities contracts 942 — 942 — TBA contracts 14 — 14 — Other contracts 4 — — 4 Total derivative liabilities 3,111 — 3,107 4 Total liabilities $3,111 $— $3,107 $4 (1) Excludes investments of $43 million included in other assets in the Consolidated Balance Sheets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient. These investments include capital contributions to private investment funds and have unfunded capital commitments of $42 million at December 31, 2022, which may be called at any time during prescribed time periods. The credit exposure is generally limited to the carrying amount of investments made and unfunded capital commitments. 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 September 30, 2023 Nine Months Ended September 30, 2023 (dollars in millions) Mortgage Servicing Rights Other Derivative Contracts Mortgage Servicing Rights Other Derivative Contracts Beginning balance $1,524 $6 $1,530 $1 Issuances 47 17 104 52 Settlements (2) (42) 1 (124) (11) Changes in fair value during the period recognized in earnings (3) 91 (21) 110 (39) Ending balance $1,620 $3 $1,620 $3 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (dollars in millions) Mortgage Servicing Rights Other Derivative Contracts Mortgage Servicing Rights Other Derivative Contracts Beginning balance $1,411 $11 $1,029 $38 Issuances 70 20 244 84 Acquisitions (1) — — 16 — Settlements (2) (31) 2 (102) 134 Changes in fair value during the period recognized in earnings (3) 74 (66) 337 (289) Ending balance $1,524 ($33) $1,524 ($33) (1) Represents MSRs acquired as part of the Investors acquisition. (2) For MSRs, 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. For other derivative contracts, represents the closeout of interest rate lock commitments. (3) Represents changes in value primarily driven by market conditions. These changes are recorded in mortgage banking fees in the Consolidated Statements of Operations. 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 September 30, 2023 Valuation Technique Unobservable Input Range (Weighted Average) Mortgage servicing rights Discounted Cash Flow Constant prepayment rate 5.81-14.26% CPR (6.40% CPR) Option adjusted spread 398-1,058 bps (630 bps) Other derivative contracts Internal Model Pull through rate 17.14-99.70% (82.27%) MSR value 4.25-153.04 bps (96.79 bps) Nonrecurring Fair Value Measurements Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. For more information on the valuation techniques utilized to measure nonrecurring fair value see Note 20 in the Company’s 2022 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 September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Collateral-dependent loans ($40) $— ($108) ($3) The following table presents assets measured at fair value on a nonrecurring basis: September 30, 2023 December 31, 2022 (dollars in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Collateral-dependent loans $835 $— $835 $— $582 $— $582 $— Fair Value of Financial Instruments The following tables present the estimated fair value for financial instruments not recorded at fair value in the unaudited interim Consolidated Financial Statements. The carrying amounts are recorded in the Consolidated Balance Sheets under the indicated captions: September 30, 2023 Total Level 1 Level 2 Level 3 (dollars in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial assets: Debt securities held to maturity $9,320 $8,054 $— $— $8,810 $7,569 $510 $485 Other loans held for sale 99 99 — — — — 99 99 Net loans and leases 147,666 141,041 — — 835 835 146,831 140,206 Other assets 995 995 — — 977 977 18 18 Financial liabilities: Deposits 178,197 178,077 — — 178,197 178,077 — — Short-term borrowed funds 232 232 — — 232 232 — — Long-term borrowed funds 17,354 16,656 — — 17,354 16,656 — — December 31, 2022 Total Level 1 Level 2 Level 3 (dollars in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial assets: Debt securities held to maturity $9,834 $9,042 $— $— $9,253 $8,506 $581 $536 Other loans held for sale 208 208 — — — — 208 208 Net loans and leases 154,679 151,601 — — 582 582 154,097 151,019 Other assets 1,058 1,058 — — 1,038 1,038 20 20 Financial liabilities: Deposits 180,724 180,566 — — 180,724 180,566 — — Short-term borrowed funds 3 3 — — 3 3 — — Long-term borrowed funds 15,887 15,469 — — 15,887 15,469 — — |
NONINTEREST INCOME
NONINTEREST INCOME | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
NONINTEREST INCOME | NOTE 14 - NONINTEREST INCOME Revenues from Contracts with Customers The following tables present the components of revenue from contracts with customers disaggregated by revenue stream and business operating segment: Three Months Ended September 30, 2023 (dollars in millions) Consumer Banking Commercial Banking Non-Core Other Consolidated Service charges and fees $73 $31 $— $1 $105 Card fees 62 12 — — 74 Capital markets fees — 64 — — 64 Trust and investment services fees 62 1 — — 63 Other banking fees 1 3 — — 4 Total revenue from contracts with customers $198 $111 $— $1 $310 Total revenue from other sources (1) 80 69 — 33 182 Total noninterest income $278 $180 $— $34 $492 Three Months Ended September 30, 2022 (dollars in millions) Consumer Banking Commercial Banking Non-Core Other Consolidated Service charges and fees $74 $33 $— $1 $108 Card fees 59 11 — — 70 Capital markets fees — 76 — — 76 Trust and investment services fees 61 — — — 61 Other banking fees — 7 — — 7 Total revenue from contracts with customers $194 $127 $— $1 $322 Total revenue from other sources (1) 76 86 — 28 190 Total noninterest income $270 $213 $— $29 $512 Nine Months Ended September 30, 2023 (dollars in millions) Consumer Banking Commercial Banking Non-Core Other Consolidated Service charges and fees $206 $98 $— $1 $305 Card fees 188 35 — — 223 Capital markets fees — 211 — — 211 Trust and investment services fees 190 1 — — 191 Other banking fees 2 10 — — 12 Total revenue from contracts with customers $586 $355 $— $1 $942 Total revenue from other sources (1) 216 233 — 92 541 Total noninterest income $802 $588 $— $93 $1,483 Nine Months Ended September 30, 2022 (dollars in millions) Consumer Banking Commercial Banking Non-Core Other Consolidated Service charges and fees $217 $94 $— $3 $314 Card fees 169 31 — — 200 Capital markets fees — 244 — — 244 Trust and investment services fees 188 — — — 188 Other banking fees — 14 — 1 15 Total revenue from contracts with customers $574 $383 $— $4 $961 Total revenue from other sources (1) 233 264 — 46 543 Total noninterest income $807 $647 $— $50 $1,504 (1) Includes bank-owned life insurance income of $24 million and $22 million for the three months ended September 30, 2023 and 2022, respectively, and $70 million and $64 million for the nine months ended September 30, 2023 and 2022, respectively. The Company recognized trailing commissions of $4 million for the three months ended September 30, 2023 and 2022, and $11 million and $12 million, respectively, for the nine months ended September 30, 2023 and 2022 related to ongoing commissions from previous investment sales. |
OTHER OPERATING EXPENSE
OTHER OPERATING EXPENSE | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
OTHER OPERATING EXPENSE | NOTE 15 - OTHER OPERATING EXPENSE The following table presents the details of other operating expense: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Marketing $48 $54 $142 $119 Deposit insurance 42 28 121 74 Other 86 83 279 235 Other operating expense $176 $165 $542 $428 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 16 - EARNINGS PER SHARE Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions, except per share data) 2023 2022 2023 2022 Numerator (basic and diluted): Net income $430 $636 $1,419 $1,420 Less: Preferred stock dividends 30 25 87 81 Net income available to common stockholders $400 $611 $1,332 $1,339 Denominator: Weighted-average common shares outstanding - basic 469,481,085 495,651,083 478,073,507 470,118,265 Dilutive common shares: share-based awards 1,702,634 1,826,418 1,659,501 1,840,045 Weighted-average common shares outstanding - diluted 471,183,719 497,477,501 479,733,008 471,958,310 Earnings per common share: Basic $0.85 $1.23 $2.79 $2.85 Diluted (1) 0.85 1.23 2.78 2.84 (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 2,566,762 and 2,310,242 for the three months ended September 30, 2023 and 2022, respectively, and 2,391,244 and 903,782 for the nine months ended September 30, 2023 and 2022, respectively. |
BUSINESS OPERATING SEGMENTS
BUSINESS OPERATING SEGMENTS | 9 Months Ended |
Sep. 30, 2023 | |
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 three business operating segments are Consumer Banking, Commercial Banking, and Non-Core. 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, who 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. Developing and applying methodologies used to allocate items among the business operating segments is a dynamic process. Accordingly, financial results may be revised periodically as management systems are enhanced, methods of evaluating performance or product lines are updated, or our organizational structure changes. See Note 1 for a description of segment changes made during the third quarter of 2023. Prior period results have been revised to conform to the new segment presentation. For more information on the Company’s business operating segments, as well as Other non-segment operations, see Note 26 in the Company’s 2022 Form 10-K. Three Months Ended September 30, 2023 (dollars in millions) Consumer Banking Commercial Banking Non-Core Other Consolidated Net interest income $1,067 $560 ($41) ($64) $1,522 Noninterest income 278 180 — 34 492 Total revenue 1,345 740 (41) (30) 2,014 Noninterest expense 905 325 30 33 1,293 Profit (loss) before provision (benefit) for credit losses 440 415 (71) (63) 721 Provision (benefit) for credit losses 67 67 20 18 172 Income (loss) before income tax expense (benefit) 373 348 (91) (81) 549 Income tax expense (benefit) 97 88 (24) (42) 119 Net income (loss) $276 $260 ($67) ($39) $430 Total average assets $72,964 $74,997 $13,113 $59,088 $220,162 Three Months Ended September 30, 2022 (dollars in millions) Consumer Banking Commercial Banking Non-Core Other Consolidated Net interest income $989 $558 $70 $48 $1,665 Noninterest income 270 213 — 29 512 Total revenue 1,259 771 70 77 2,177 Noninterest expense 828 325 36 52 1,241 Profit (loss) before provision (benefit) for credit losses 431 446 34 25 936 Provision (benefit) for credit losses 47 12 14 50 123 Income (loss) before income tax expense (benefit) 384 434 20 (25) 813 Income tax expense (benefit) 98 100 4 (25) 177 Net income (loss) $286 $334 $16 $— $636 Total average assets $71,631 $80,067 $17,929 $55,846 $225,473 Nine Months Ended September 30, 2023 (dollars in millions) Consumer Banking Commercial Banking Non-Core Other Consolidated Net interest income $3,101 $1,741 ($84) ($5) $4,753 Noninterest income 802 588 — 93 1,483 Total revenue 3,903 2,329 (84) 88 6,236 Noninterest expense 2,637 971 95 192 3,895 Profit (loss) before provision (benefit) for credit losses 1,266 1,358 (179) (104) 2,341 Provision (benefit) for credit losses 198 185 54 79 516 Income (loss) before income tax expense (benefit) 1,068 1,173 (233) (183) 1,825 Income tax expense (benefit) 278 289 (61) (100) 406 Net income (loss) $790 $884 ($172) ($83) $1,419 Total average assets $72,477 $77,130 $14,409 $57,723 $221,739 Nine Months Ended September 30, 2022 (dollars in millions) Consumer Banking Commercial Banking Non-Core Other Consolidated Net interest income $2,635 $1,508 $359 ($185) $4,317 Noninterest income 807 647 — 50 1,504 Total revenue 3,442 2,155 359 (135) 5,821 Noninterest expense 2,424 905 105 218 3,652 Profit (loss) before provision (benefit) for credit losses 1,018 1,250 254 (353) 2,169 Provision (benefit) for credit losses 117 34 33 158 342 Income (loss) before income tax expense (benefit) 901 1,216 221 (511) 1,827 Income tax expense (benefit) 230 270 56 (149) 407 Net income (loss) $671 $946 $165 ($362) $1,420 Total average assets $66,793 $73,344 $18,582 $53,003 $211,722 In connection with business segment changes made during the quarter the Company revised one of its management accounting practices utilized to measure the performance and compile the results of its segments as outlined below. Funds Transfer Pricing The Company’s FTP, a component of net interest income, ensures consistent business segment pricing behavior by removing interest rate risk from business performance. This risk is centrally managed within the Treasury function and reported in Other non-segment operations. Segments are provided an interest credit for funding it generates and an interest charge for assets it holds. The sum of interest income/expense and FTP charges/credits for each segment is its designated net interest income. The offset to FTP charges and credits is recorded in Other non-segment operations. The Company continues to employ a matched maturity FTP methodology for the Consumer Banking and Commercial Banking business segments with rates based on a product’s repricing frequency and interest sensitivity, as well as other factors. The FTP charge for the Non-Core segment is based on an implied reference pool of high-cost funding sources. This method applies a waterfall marginal funding approach referencing the Company’s secured borrowings collateralized by auto loans, FHLB advances, and various other higher-cost deposit sources as are needed to fully debt-fund the assets. There have been no other significant changes in the management accounting practices utilized by the Company to measure the performance and compile the results of its segments as discussed in Note 26 in the Company’s 2022 Form 10-K. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited interim Consolidated Financial Statements and Notes have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not include all information and notes included in annual financial statements prepared in accordance with GAAP. The Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the interim period results presented. These unaudited interim financial statements and notes should be read in conjunction with the audited Consolidated Financial Statements and Notes included in the Company’s 2022 Form 10-K. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year. |
Consolidation | The unaudited interim Consolidated Financial Statements include the accounts of Citizens and its subsidiaries, including VIEs in which Citizens is a primary beneficiary. Investments in VIEs in which the Company does not have the ability to exercise significant influence are not consolidated. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the ACL and the evaluation and measurement of goodwill impairment. |
Credit Quality Indicators | The Company presents loan and lease portfolio segments and classes 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. Renewals are categorized as new credit decisions and reflect the renewal date as the vintage date, except for renewals of loans modified for borrowers experiencing financial difficulty, or FDMs, which are presented in the original vintage. Citizens utilizes regulatory classification ratings to monitor credit quality for commercial loans and leases. For more information on regulatory classification ratings see Note 6 in the Company’s 2022 Form 10-K. |
Variable Interest Entity | Citizens, in the normal course of business, engages in a variety of activities with entities that are considered VIEs, as defined by GAAP, with its variable interest arising from contractual, ownership or other monetary interests in the entity. A VIE typically does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties. Citizens is the primary beneficiary of a VIE, and must consolidate it, if its variable interest provides it with the power to direct the activities that significantly impact the VIE and it has the right to receive benefits, or the obligation to absorb losses, that could potentially be significant to the VIE. Citizens considers both qualitative and quantitative factors regarding the nature, size and form of its involvement with the VIE to determine whether or not a variable interest held is significant to the VIE. Citizens assesses whether or not it is the primary beneficiary of a VIE on an ongoing basis. Transfers of financial assets in which the Company has not surrendered control over the transferred assets are accounted for as a secured borrowing with a pledge of collateral. Control is generally considered surrendered when 1) the transferred assets are legally isolated from the Company and its creditors, even in bankruptcy, 2) the transferee has the right to pledge or exchange the transferred assets it received, with no condition that constrains the transferee from taking advantage of this right or that provides more than a trivial benefit to the Company, and 3) the Company does not maintain effective control over the transferred financial assets. Judgment is required to assess whether the Company maintains effective control over transferred financial assets. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of new accounting pronouncements and changes in accounting principles | Accounting Pronouncements Adopted in 2023 Pronouncement Summary of Guidance Effects on Financial Statements Troubled Debt Restructurings and Vintage Disclosures Issued March 2022 • Effective date: January 1, 2023. • Eliminates the separate recognition and measurement guidance for TDRs. • Requires evaluation of all modifications to borrowers experiencing financial difficulty (or FDMs) to determine whether the modification results in a new loan or continuation of an existing loan. • Requires expected credit losses measured under a discounted cash flow method to be determined using an effective interest rate based on the modified (not original) contractual terms of the loan. • Enhances disclosures by creditors for modifications of receivables from borrowers experiencing financial difficulty in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay or a term extension. • Requires disclosure of current period gross charge-offs by vintage year for loans and net investments in leases. • Transition is prospective, with an option to adopt the recognition and measurement guidance for TDRs on a modified retrospective basis, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. • The Company adopted the new standard on January 1, 2023, and elected to apply the new measurement and recognition guidance for legacy TDRs under the modified retrospective transition method. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Required disclosures and discussion of significant accounting policies for modifications to borrowers experiencing financial difficulty are included in Note 4. • Disclosure of gross charge-offs by vintage year did not have a material impact on the Company’s Consolidated Financial Statements. Fair Value Hedging - Portfolio Layer Method Issued March 2022 • Effective date: January 1, 2023. • Replaces the ‘last-of-layer’ method. • Allows the designation of multiple layers in a closed portfolio of financial assets. • Permits hedging of non-prepayable and prepayable assets. • Prohibits the consideration of basis adjustments when measuring expected credit losses of assets in the closed portfolio or determining whether an AFS security is impaired. • The guidance on hedging multiple layers in a closed portfolio is applied prospectively. The guidance on the accounting for fair value basis adjustments is applied on a modified retrospective basis. • The Company adopted the new standard on January 1, 2023. • Adoption did not have a material impact on the Company’s Consolidated Financial Statements. Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023 • Effective date: January 1, 2024. • Permits use of the proportional amortization method of accounting for all tax equity investments provided that certain conditions are met. • Proportional amortization method is elected on a tax-credit-program-by-tax-credit-program basis. • Permits adoption under the modified retrospective method or retrospective method through a cumulative-effect adjustment to retained earnings as of the beginning of the current period or first period presented, respectively. Early adoption is permitted. • The Company adopted the new standard on January 1, 2023 for renewable energy and new markets tax credit investments under the modified retrospective approach. • Adoption resulted in a cumulative-effect reduction of $26 million, net of taxes, to retained earnings and a corresponding reduction to other assets of $101 million and other liabilities of $75 million, reflecting the elimination of deferred tax liabilities associated with renewable energy investments that qualify for the proportional amortization method of accounting. • Refer to Note 7 for additional information. |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of securities held | The following table presents the major components of securities at amortized cost and fair value: September 30, 2023 December 31, 2022 (dollars in millions) Amortized Cost (1) Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury and other $4,025 $— ($251) $3,774 $3,678 $1 ($193) $3,486 State and political subdivisions 2 — — 2 2 — — 2 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 23,101 1 (2,845) 20,257 21,250 10 (2,198) 19,062 Other/non-agency 279 — (32) 247 280 — (29) 251 Total mortgage-backed securities 23,380 1 (2,877) 20,504 21,530 10 (2,227) 19,313 Collateralized loan obligations 797 — (8) 789 1,248 — (42) 1,206 Total debt securities available for sale, at fair value $28,204 $1 ($3,136) $25,069 $26,458 $11 ($2,462) $24,007 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities $8,810 $— ($1,241) $7,569 $9,253 $4 ($751) $8,506 Total mortgage-backed securities 8,810 — (1,241) 7,569 9,253 4 (751) 8,506 Asset-backed securities 510 1 (26) 485 581 — (45) 536 Total debt securities held to maturity $9,320 $1 ($1,267) $8,054 $9,834 $4 ($796) $9,042 Equity securities, at cost (2) $995 $— $— $995 $1,058 $— $— $1,058 Equity securities, at fair value (2) 163 — — 163 153 — — 153 (1) Excludes portfolio level basis adjustments of $17 million for securities designated in active fair value hedge relationships. The basis adjustments represent a reduction to the amortized cost of the securities being hedged. (2) Included in other assets in the Consolidated Balance Sheets. |
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 September 30, 2023. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without incurring penalties. Distribution of Maturities (dollars 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 $— $2,688 $1,337 $— $4,025 State and political subdivisions — — 2 2 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — 1,406 2,431 19,264 23,101 Other/non-agency — — — 279 279 Collateralized loan obligations — — 25 772 797 Total debt securities available for sale — 4,094 3,793 20,317 28,204 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 8,810 8,810 Asset-backed securities — 510 — — 510 Total debt securities held to maturity — 510 — 8,810 9,320 Total amortized cost of debt securities $— $4,604 $3,793 $29,127 $37,524 Fair value: U.S. Treasury and other $— $2,513 $1,261 $— $3,774 State and political subdivisions — — — 2 2 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — 1,313 2,225 16,719 20,257 Other/non-agency — — — 247 247 Collateralized loan obligations — — 25 764 789 Total debt securities available for sale — 3,826 3,511 17,732 25,069 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 7,569 7,569 Asset-backed securities — 485 — — 485 Total debt securities held to maturity — 485 — 7,569 8,054 Total fair value of debt securities $— $4,311 $3,511 $25,301 $33,123 |
Schedule of income recognized on investment securities | The following table presents realized gains and losses on sale of securities: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Gains $9 $— $27 $9 Losses (4) — (8) (4) Securities gains, net $5 $— $19 $5 |
Schedule of financial instruments owned and pledged as collateral | The following table presents the amortized cost and fair value of debt securities pledged: September 30, 2023 December 31, 2022 (dollars in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against derivatives, to qualify for fiduciary powers, or to secure public and other deposits as required by law $5,739 $4,945 $3,966 $3,527 Pledged as collateral for FHLB borrowing capacity 243 213 244 217 Pledged against repurchase agreements 250 248 — — |
Schedule of unrealized loss on investments | The following tables present AFS debt securities with fair values below their respective carrying values, separated by the duration the securities have been in a continuous unrealized loss position: September 30, 2023 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 U.S. Treasury and other $583 ($12) $3,142 ($239) $3,725 ($251) Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 3,796 (111) 15,897 (2,734) 19,693 (2,845) Other/non-agency — — 247 (32) 247 (32) Total mortgage-backed securities 3,796 (111) 16,144 (2,766) 19,940 (2,877) Collateralized loan obligations 32 — 757 (8) 789 (8) Total $4,411 ($123) $20,043 ($3,013) $24,454 ($3,136) December 31, 2022 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 U.S. Treasury and other $3,356 ($193) $— $— $3,356 ($193) Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 13,353 (1,136) 5,042 (1,062) 18,395 (2,198) Other/non-agency 80 (8) 171 (21) 251 (29) Total mortgage-backed securities 13,433 (1,144) 5,213 (1,083) 18,646 (2,227) Collateralized loan obligations 785 (26) 421 (16) 1,206 (42) Total $17,574 ($1,363) $5,634 ($1,099) $23,208 ($2,462) |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of loans and leases | The following table presents loans and leases, excluding LHFS: (dollars in millions) September 30, 2023 December 31, 2022 Commercial and industrial $46,753 $51,836 Commercial real estate 29,486 28,865 Leases 1,218 1,479 Total commercial 77,457 82,180 Residential mortgages 30,983 29,921 Home equity 14,729 14,043 Automobile 9,290 12,292 Education 12,134 12,808 Other retail 5,153 5,418 Total retail 72,289 74,482 Total loans and leases $149,746 $156,662 The following table presents the composition of LHFS: September 30, 2023 December 31, 2022 (dollars in millions) Residential Mortgages (1) Commercial (2) Total Residential Mortgages (1) Commercial (2) Total Loans held for sale at fair value $739 $10 $749 $666 $108 $774 Other loans held for sale — 99 99 — 208 208 (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 primarily consist of loans associated with the Company’s syndication business. |
CREDIT QUALITY AND THE ALLOWA_2
CREDIT QUALITY AND THE ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for credit losses | The following table presents a summary of changes in the ACL for the three and nine months ended September 30, 2023: Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 (dollars in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $1,157 $887 $2,044 $1,060 $923 $1,983 Charge-offs (74) (117) (191) (212) (339) (551) Recoveries 4 34 38 14 99 113 Net charge-offs (70) (83) (153) (198) (240) (438) Provision expense (benefit) for loans and leases 146 43 189 371 164 535 Allowance for loan and lease losses, end of period 1,233 847 2,080 1,233 847 2,080 Allowance for unfunded lending commitments, beginning of period 213 42 255 207 50 257 Provision expense (benefit) for unfunded lending commitments (21) 4 (17) (15) (4) (19) Allowance for unfunded lending commitments, end of period 192 46 238 192 46 238 Total allowance for credit losses, end of period $1,425 $893 $2,318 $1,425 $893 $2,318 The following table presents a summary of changes in the ACL for the three and nine months ended September 30, 2022: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (dollars in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $987 $977 $1,964 $821 $937 $1,758 Allowance on PCD loans and leases at acquisition — — — 99 2 101 Charge-offs (1) (22) (94) (116) (49) (259) (308) Recoveries 7 35 42 13 113 126 Net charge-offs (15) (59) (74) (36) (146) (182) Provision expense (benefit) for loans and leases (2) 58 32 90 146 157 303 Allowance for loan and lease losses, end of period 1,030 950 1,980 1,030 950 1,980 Allowance for unfunded lending commitments, beginning of period 166 17 183 153 23 176 Provision expense (benefit) for unfunded lending commitments 6 27 33 18 21 39 Allowance on PCD unfunded lending commitments at acquisition — — — 1 — 1 Allowance for unfunded lending commitments, end of period 172 44 216 172 44 216 Total allowance for credit losses, end of period $1,202 $994 $2,196 $1,202 $994 $2,196 (1) Excludes $33 million of charge-offs previously taken by Investors or recognized upon completion of the Investors acquisition under purchase accounting for the nine months ended September 30, 2022. The initial allowance for loan and lease losses on PCD assets included these amounts and, after charging these amounts off upon acquisition, the net impact for PCD assets was $101 million of additional allowance for loan and lease losses. (2) Includes $169 million of initial provision expense related to non-PCD loans and leases acquired from Investors and HSBC for the nine months ended September 30, 2022. |
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 September 30, 2023, and gross charge-offs by vintage date for the nine months ended September 30, 2023: Term Loans by Origination Year Revolving Loans (dollars in millions) 2023 2022 2021 2020 2019 Prior to 2019 Within the Revolving Period Converted to Term Total Commercial and industrial Pass $2,539 $6,979 $5,557 $1,459 $1,244 $2,217 $22,929 $52 $42,976 Special Mention 6 172 448 81 72 214 552 — 1,545 Substandard — 285 320 207 112 314 742 10 1,990 Doubtful — 26 41 9 4 102 56 4 242 Total commercial and industrial 2,545 7,462 6,366 1,756 1,432 2,847 24,279 66 46,753 Gross charge-offs — 1 32 4 1 24 35 — 97 Commercial real estate Pass 1,366 5,516 6,193 2,823 2,300 4,334 1,833 9 24,374 Special Mention — 640 528 158 500 235 84 — 2,145 Substandard — 244 157 540 468 947 141 — 2,497 Doubtful — 92 2 9 147 217 3 — 470 Total commercial real estate 1,366 6,492 6,880 3,530 3,415 5,733 2,061 9 29,486 Gross charge-offs — — — 51 11 53 — — 115 Leases Pass 67 182 295 202 69 323 — — 1,138 Special Mention — 28 1 1 2 — — — 32 Substandard 3 15 13 6 5 3 — — 45 Doubtful — — 3 — — — — — 3 Total leases 70 225 312 209 76 326 — — 1,218 Gross charge-offs — — — — — — — — — Total commercial Pass 3,972 12,677 12,045 4,484 3,613 6,874 24,762 61 68,488 Special Mention 6 840 977 240 574 449 636 — 3,722 Substandard 3 544 490 753 585 1,264 883 10 4,532 Doubtful — 118 46 18 151 319 59 4 715 Total commercial $3,981 $14,179 $13,558 $5,495 $4,923 $8,906 $26,340 $75 $77,457 Gross charge-offs $— $1 $32 $55 $12 $77 $35 $— $212 The following table presents the amortized cost basis of commercial loans and leases by vintage date and regulatory classification rating as of December 31, 2022: Term Loans by Origination Year Revolving Loans (dollars in millions) 2022 2021 2020 2019 2018 Prior to 2018 Within the Revolving Period Converted to Term Total Commercial and industrial Pass $8,304 $8,469 $2,224 $2,074 $1,334 $1,952 $24,211 $148 $48,716 Special Mention 124 189 120 74 48 153 364 — 1,072 Substandard 150 218 203 255 99 349 597 14 1,885 Doubtful 10 14 1 5 41 14 76 2 163 Total commercial and industrial 8,588 8,890 2,548 2,408 1,522 2,468 25,248 164 51,836 Commercial real estate Pass 5,767 6,442 3,639 3,066 2,145 3,536 1,888 3 26,486 Special Mention 1 119 103 390 99 113 62 — 887 Substandard 92 18 79 253 350 610 23 — 1,425 Doubtful — 2 9 55 — 1 — — 67 Total commercial real estate 5,860 6,581 3,830 3,764 2,594 4,260 1,973 3 28,865 Leases Pass 263 363 250 99 128 345 — — 1,448 Special Mention 4 5 2 6 1 3 — — 21 Substandard — 4 3 3 — — — — 10 Doubtful — — — — — — — — — Total leases 267 372 255 108 129 348 — — 1,479 Total commercial Pass 14,334 15,274 6,113 5,239 3,607 5,833 26,099 151 76,650 Special Mention 129 313 225 470 148 269 426 — 1,980 Substandard 242 240 285 511 449 959 620 14 3,320 Doubtful 10 16 10 60 41 15 76 2 230 Total commercial $14,715 $15,843 $6,633 $6,280 $4,245 $7,076 $27,221 $167 $82,180 The following table presents the amortized cost basis of retail loans by vintage date and current FICO score as of September 30, 2023, and gross charge-offs by vintage date for the nine months ended September 30, 2023: Term Loans by Origination Year Revolving Loans (dollars in millions) 2023 2022 2021 2020 2019 Prior to 2019 Within the Revolving Period Converted to Term Total Residential mortgages 800+ $620 $2,988 $5,167 $3,115 $1,141 $3,233 $— $— $16,264 740-799 987 1,990 2,645 1,487 618 1,699 — — 9,426 680-739 272 652 771 458 277 855 — — 3,285 620-679 44 133 164 96 108 459 — — 1,004 <620 4 38 103 94 166 578 — — 983 No FICO available (1) — — 2 1 3 15 — — 21 Total residential mortgages 1,927 5,801 8,852 5,251 2,313 6,839 — — 30,983 Gross charge-offs — — — — 1 2 — — 3 Home equity 800+ — 4 4 2 5 95 5,084 236 5,430 740-799 — 2 2 1 4 89 4,539 249 4,886 680-739 — — 1 2 4 98 2,569 207 2,881 620-679 — 1 1 2 9 83 688 134 918 <620 — 1 1 2 10 85 303 212 614 Total home equity — 8 9 9 32 450 13,183 1,038 14,729 Gross charge-offs — — — — — 2 6 — 8 Automobile 800+ 85 573 1,165 421 198 68 — — 2,510 740-799 146 740 1,164 433 203 74 — — 2,760 680-739 163 647 808 295 145 57 — — 2,115 620-679 107 362 389 130 78 37 — — 1,103 <620 40 232 302 110 76 42 — — 802 Total automobile 541 2,554 3,828 1,389 700 278 — — 9,290 Gross charge-offs — 24 31 11 9 7 — — 82 Education 800+ 254 674 1,670 1,460 625 1,247 — — 5,930 740-799 304 717 1,108 908 389 717 — — 4,143 680-739 123 308 350 282 137 314 — — 1,514 620-679 21 64 68 57 34 111 — — 355 <620 3 16 24 24 15 55 — — 137 No FICO available (1) 18 — — — — 37 — — 55 Total education 723 1,779 3,220 2,731 1,200 2,481 — — 12,134 Gross charge-offs — 3 12 16 10 35 — — 76 Other retail 800+ 125 116 49 45 22 24 500 — 881 740-799 169 131 59 60 29 25 998 1 1,472 680-739 146 101 50 50 25 15 1,020 2 1,409 620-679 82 61 29 25 8 5 441 2 653 <620 15 38 20 16 5 3 246 3 346 No FICO available (1) 20 3 — 2 — — 367 — 392 Total other retail 557 450 207 198 89 72 3,572 8 5,153 Gross charge-offs 36 22 7 6 8 7 84 — 170 Total retail 800+ 1,084 4,355 8,055 5,043 1,991 4,667 5,584 236 31,015 740-799 1,606 3,580 4,978 2,889 1,243 2,604 5,537 250 22,687 680-739 704 1,708 1,980 1,087 588 1,339 3,589 209 11,204 620-679 254 621 651 310 237 695 1,129 136 4,033 <620 62 325 450 246 272 763 549 215 2,882 No FICO available (1) 38 3 2 3 3 52 367 — 468 Total retail $3,748 $10,592 $16,116 $9,578 $4,334 $10,120 $16,755 $1,046 $72,289 Gross charge-offs $36 $49 $50 $33 $28 $53 $90 $— $339 (1) Represents loans for which an updated FICO score was unavailable (e.g., due to recent profile changes). The following table presents the amortized cost basis of retail loans by vintage date and current FICO score as of December 31, 2022: Term Loans by Origination Year Revolving Loans (dollars in millions) 2022 2021 2020 2019 2018 Prior to 2018 Within the Revolving Period Converted to Term Total Residential mortgages 800+ $2,132 $4,943 $3,143 $1,180 $363 $3,081 $— $— $14,842 740-799 2,376 2,991 1,660 638 257 1,635 — — 9,557 680-739 769 899 502 308 149 851 — — 3,478 620-679 125 168 135 138 99 422 — — 1,087 <620 17 68 77 165 147 455 — — 929 No FICO available (1) 2 2 2 3 2 17 — — 28 Total residential mortgages 5,421 9,071 5,519 2,432 1,017 6,461 — — 29,921 Home equity 800+ 4 5 2 5 6 110 4,958 267 5,357 740-799 2 2 1 4 6 97 4,350 274 4,736 680-739 1 1 1 6 11 114 2,296 234 2,664 620-679 — 1 2 9 16 93 558 143 822 <620 — — 2 12 18 82 178 172 464 Total home equity 7 9 8 36 57 496 12,340 1,090 14,043 Automobile 800+ 650 1,453 584 324 120 54 — — 3,185 740-799 962 1,606 649 343 134 56 — — 3,750 680-739 920 1,187 460 254 102 44 — — 2,967 620-679 554 586 205 133 62 28 — — 1,568 <620 188 309 130 106 56 31 — — 820 No FICO available (1) 2 — — — — — — — 2 Total automobile 3,276 5,141 2,028 1,160 474 213 — — 12,292 Education 800+ 548 1,720 1,567 694 410 1,068 — — 6,007 740-799 735 1,351 1,126 486 267 609 — — 4,574 680-739 363 423 356 170 103 288 — — 1,703 620-679 54 76 62 38 29 102 — — 361 <620 6 16 20 12 11 50 — — 115 No FICO available (1) 6 — — — — 42 — — 48 Total education 1,712 3,586 3,131 1,400 820 2,159 — — 12,808 Other retail 800+ 182 105 93 48 25 27 491 — 971 740-799 230 134 121 68 31 25 974 1 1,584 680-739 175 109 103 52 21 14 993 4 1,471 620-679 108 65 52 18 8 4 435 4 694 <620 35 30 25 9 4 2 190 6 301 No FICO available (1) 12 1 3 — — — 380 1 397 Total other retail 742 444 397 195 89 72 3,463 16 5,418 Total retail 800+ 3,516 8,226 5,389 2,251 924 4,340 5,449 267 30,362 740-799 4,305 6,084 3,557 1,539 695 2,422 5,324 275 24,201 680-739 2,228 2,619 1,422 790 386 1,311 3,289 238 12,283 620-679 841 896 456 336 214 649 993 147 4,532 <620 246 423 254 304 236 620 368 178 2,629 No FICO available (1) 22 3 5 3 2 59 380 1 475 Total retail $11,158 $18,251 $11,083 $5,223 $2,457 $9,401 $15,803 $1,106 $74,482 (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 tables present an aging analysis of accruing loans and leases, and nonaccrual loans and leases as of September 30, 2023 and December 31, 2022: September 30, 2023 Days Past Due and Accruing (dollars in millions) Current 30-59 60-89 90+ Nonaccrual Total Nonaccrual with no related ACL Commercial and industrial $46,475 $23 $9 $4 $242 $46,753 $43 Commercial real estate 28,896 75 42 3 470 29,486 48 Leases 1,215 — — — 3 1,218 — Total commercial 76,586 98 51 7 715 77,457 91 Residential mortgages (1) 30,416 110 50 217 190 30,983 149 Home equity 14,351 82 28 — 268 14,729 179 Automobile 9,031 147 50 — 62 9,290 7 Education 12,035 47 26 3 23 12,134 2 Other retail 5,014 49 31 21 38 5,153 — Total retail 70,847 435 185 241 581 72,289 337 Total $147,433 $533 $236 $248 $1,296 $149,746 $428 December 31, 2022 Days Past Due and Accruing (dollars in millions) Current 30-59 60-89 90+ Nonaccrual Total Nonaccrual with no related ACL Commercial and industrial $51,389 $152 $25 $21 $249 $51,836 $64 Commercial real estate 28,665 51 45 1 103 28,865 7 Leases 1,475 4 — — — 1,479 — Total commercial 81,529 207 70 22 352 82,180 71 Residential mortgages (1) 29,228 95 45 319 234 29,921 187 Home equity 13,719 64 19 — 241 14,043 185 Automobile 12,039 152 45 — 56 12,292 9 Education 12,718 36 17 4 33 12,808 3 Other retail 5,294 44 30 22 28 5,418 1 Total retail 72,998 391 156 345 592 74,482 385 Total $154,527 $598 $226 $367 $944 $156,662 $456 |
Troubled debt restructurings on financing receivables | The following tables present the period-end amortized cost of loans to borrowers experiencing financial difficulty that were modified during the three and nine months ended September 30, 2023, disaggregated by class of financing receivable and modification type. The modification type reflects the cumulative effect of all FDMs received during the indicated period. Three Months Ended September 30, 2023 (dollars in millions) Interest Rate Reduction Term Extension Payment Delay Principal Forgiveness Interest Rate Reduction and Term Extension Term Extension and Payment Delay Total Total as a % of Loan Class (1) Commercial and industrial $— $148 $47 $— $— $1 $196 0.42 % Commercial real estate — 131 — — 37 1 169 0.57 Total commercial — 279 47 — 37 2 365 0.47 Residential mortgages 2 25 — — 6 — 33 0.11 Home equity 1 1 — — 1 — 3 0.02 Automobile — — — — — — — — Education 3 — 1 — — — 4 0.03 Other retail 3 — — — — — 3 0.06 Total retail 9 26 1 — 7 — 43 0.06 Total (2) $9 $305 $48 $— $44 $2 $408 0.27 % Nine Months Ended September 30, 2023 (dollars in millions) Interest Rate Reduction Term Extension Payment Delay Principal Forgiveness Interest Rate Reduction and Term Extension Term Extension and Payment Delay Total Total as a % of Loan Class (1) Commercial and industrial $— $263 $78 $— $1 $2 $344 0.74 % Commercial real estate — 454 — — 37 1 492 1.67 Total commercial — 717 78 — 38 3 836 1.08 Residential mortgages 6 59 — — 16 — 81 0.26 Home equity 1 4 — — 5 — 10 0.07 Automobile — — — — — — — — Education 7 — 2 — — — 9 0.07 Other retail 8 — — — — — 8 0.16 Total retail 22 63 2 — 21 — 108 0.15 Total (2) $22 $780 $80 $— $59 $3 $944 0.63 % (1) Represents the total amortized cost as of period-end divided by the period-end amortized cost of the corresponding loan class. Accrued interest receivable is excluded from amortized cost and is immaterial. (2) Excludes borrowers that had their debt discharged by means of a Chapter 7 bankruptcy filing. The following tables present the financial effect of loans to borrowers experiencing financial difficulty that were modified during the three and nine months ended September 30, 2023, disaggregated by class of financing receivable. Three Months Ended September 30, 2023 Weighted-Average Interest Rate Reduction (1)(5) Weighted-Average Term Extension (in Months) (2)(5) Weighted-Average Payment Deferral (3)(5) Amount of Principal Forgiven (4) Commercial and industrial 2.32 % 17 $427,833 $— Commercial real estate 1.25 7 77,482 — Residential mortgages 0.98 47 — — Home equity 2.51 133 — — Automobile — — — — Education 4.95 — 4,972 — Other retail 18.86 — — 1 Nine Months Ended September 30, 2023 Weighted-Average Interest Rate Reduction (1)(5) Weighted-Average Term Extension (in Months) (2)(5) Weighted-Average Payment Deferral (3)(5) Amount of Principal Forgiven (4) Commercial and industrial 2.95 % 14 $562,909 $— Commercial real estate 1.25 8 47,172 — Residential mortgages 1.55 48 — — Home equity 2.24 127 2,343 — Automobile 3.47 20 1,253 — Education 4.97 — 4,171 — Other retail 18.45 — — 4 (1) Represents the weighted-average reduction of the loan’s interest rate. (2) Represents the weighted-average extension of a loan’s maturity date. (3) Represents the weighted-average amount of payments delayed as a result of the loan modification. Amounts are reported in whole dollars. (4) Amounts are recorded as charge-offs and are reported in millions. (5) Weighted based on period-end amortized cost. The following table presents an aging analysis of the period-end amortized cost of loans to borrowers experiencing financial difficulty that were modified during the nine months ended September 30, 2023, disaggregated by class of financing receivable. A loan in a forbearance or repayment plan is reported as past due according to its contractual terms until contractually modified. Subsequent to modification, it is reported as past due based on its restructured terms. September 30, 2023 Days Past Due and Accruing (dollars in millions) Current 30-59 60-89 90+ Nonaccrual Total Commercial and industrial $262 $— $— $— $82 $344 Commercial real estate 262 55 — — 175 492 Total commercial 524 55 — — 257 836 Residential mortgages 52 — 5 13 11 81 Home equity 3 — — — 7 10 Automobile — — — — — — Education 8 — — — 1 9 Other retail 6 1 — — 1 8 Total retail 69 1 5 13 20 108 Total $593 $56 $5 $13 $277 $944 The following tables summarize loans modified during the three and nine months ended September 30, 2022. The balances represent the post-modification outstanding amortized cost basis and may include loans that became TDRs during the period and were subsequently paid off in full, charged off, or sold prior to period end. Pre-modification balances for modified loans approximate the post-modification balances shown. Three Months Ended September 30, 2022 Amortized Cost Basis (dollars in millions) Number of Contracts Interest Rate Reduction (1) Maturity Extension (2) Other (3) Total Commercial and industrial 6 $— $2 $46 $48 Total commercial 6 — 2 46 48 Residential mortgages 185 6 21 13 40 Home equity 68 2 — 2 4 Automobile 135 — — 1 1 Education 245 — — 8 8 Other retail 590 2 — — 2 Total retail 1,223 10 21 24 55 Total 1,229 $10 $23 $70 $103 Nine Months Ended September 30, 2022 Amortized Cost Basis (dollars in millions) Number of Contracts Interest Rate Reduction (1) Maturity Extension (2) Other (3) Total Commercial and industrial 25 $— $26 $80 $106 Total commercial 25 — 26 80 106 Residential mortgages 1,656 44 74 248 366 Home equity 318 4 1 16 21 Automobile 447 1 — 3 4 Education 481 — — 19 19 Other retail 1,678 7 — 1 8 Total retail 4,580 56 75 287 418 Total 4,605 $56 $101 $367 $524 (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. |
Financing receivable, modified, subsequent default | The following tables present the period-end amortized cost of loans to borrowers experiencing financial difficulty that were modified on or after January 1, 2023 that subsequently defaulted during the three and nine months ended September 30, 2023, disaggregated by class of financing receivable and modification type. The modification type reflects the cumulative effect of all FDMs at the time of default. A loan is considered to be in default if, subsequent to modification, it becomes 90 or more days past due or is placed on nonaccrual status. Three Months Ended September 30, 2023 (dollars in millions) Interest Rate Reduction Term Extension Payment Delay Interest Rate Reduction and Term Extension Total Commercial and industrial $— $— $— $— $— Commercial real estate — 41 — — 41 Total commercial — 41 — — 41 Residential mortgages 1 6 — 5 12 Home equity — 1 — 2 3 Automobile — — — — — Education — — 1 — 1 Other retail — — — — — Total retail 1 7 1 7 16 Total $1 $48 $1 $7 $57 Nine Months Ended September 30, 2023 (dollars in millions) Interest Rate Reduction Term Extension Payment Delay Interest Rate Reduction and Term Extension Total Commercial and industrial $— $3 $— $— $3 Commercial real estate — 67 — — 67 Total commercial — 70 — — 70 Residential mortgages 1 6 — 5 12 Home equity — 1 — 2 3 Automobile — — — — — Education — — 1 — 1 Other retail — — — — — Total retail 1 7 1 7 16 Total $1 $77 $1 $7 $86 |
Financing receivable, troubled debt restructuring, default | The following table provides a summary of TDRs that defaulted (became 90 days or more past due) within 12 months of their modification date: Three Months Ended Nine Months Ended (dollars in millions) September 30, 2022 Commercial TDRs $— $— Retail TDRs (1) 28 224 Total $28 $224 (1) Includes $18 million and $174 million of loans fully or partially government guaranteed by the FHA, VA, and USDA for the three and nine months ended September 30, 2022, respectively. |
MORTGAGE BANKING AND OTHER SE_2
MORTGAGE BANKING AND OTHER SERVICED LOANS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Mortgage Banking [Abstract] | |
Schedule of mortgage banking activities | The following table summarizes activity related to residential mortgage loans sold with servicing rights retained: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Cash proceeds from residential mortgage loans sold with servicing retained $3,270 $3,518 $7,358 $14,676 Repurchased residential mortgages (1) — — — 87 Gain on sales (2) 19 21 60 74 Contractually specified servicing, late and other ancillary fees (2) 76 75 230 213 (1) Includes government insured or guaranteed loans repurchased through the exercise of the Company’s removal of account provision option. (2) Reported in mortgage banking fees in 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 September 30, As of and for the Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Fair value as of beginning of the period $1,524 $1,411 $1,530 $1,029 Amounts capitalized 47 70 104 244 Servicing rights acquired — — — 16 Changes in unpaid principal balance during the period (1) (42) (31) (124) (102) Changes in fair value during the period (2) 91 74 110 337 Fair value at end of the period $1,620 $1,524 $1,620 $1,524 (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. |
Schedule of fair value assumptions used to estimate the value of Mortgage Servicing Rights | The sensitivity analysis below presents the impact of an immediate 10% and 20% adverse change in key economic assumptions to the current fair value of MSRs. 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. 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. (dollars in millions) September 30, 2023 December 31, 2022 Fair value $1,620 $1,530 Weighted average life (years) 9.1 9.1 Weighted average constant prepayment rate 6.4% 6.8% Decline in fair value from 10% adverse change $35 $34 Decline in fair value from 20% adverse change $67 $66 Weighted average option adjusted spread 630 bps 629 bps Decline in fair value from 10% adverse change $44 $43 Decline in fair value from 20% adverse change $89 $86 |
Schedule of other serviced loans | The following table presents the unpaid principal balance of other serviced loans: (dollars in millions) September 30, 2023 December 31, 2022 Education $517 $602 Commercial and industrial (1) 94 91 (1) Represents the government guaranteed portion of SBA loans sold to outside investors |
GOODWILL (Tables)
GOODWILL (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in carrying value of goodwill | Changes in the carrying value of goodwill for the nine months ended September 30, 2023 are presented below. (dollars in millions) Consumer Banking Commercial Banking Total Balance at December 31, 2022 $2,673 $5,500 $8,173 Business acquisitions 5 10 15 Balance at September 30, 2023 $2,678 $5,510 $8,188 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of variable interest entities | The following table summarizes the carrying amount of assets and liabilities for the Company’s consolidated VIEs: (dollars in millions) September 30, 2023 Assets: Cash and due from banks $196 Net loans and leases 3,647 Other assets 15 Total assets $3,858 Liabilities: Long-term borrowed funds $3,245 Other liabilities 10 Total liabilities $3,255 A summary of these investments is presented below: (dollars in millions) September 30, 2023 December 31, 2022 Lending to special purpose entities included in loans and leases $4,860 $4,578 LIHTC investments included in other assets 2,395 2,230 LIHTC unfunded commitments included in other liabilities 1,045 1,046 Asset-backed investments included in HTM securities 510 581 Renewable energy investments included in other assets 243 374 NMTC investments included in other assets 3 4 |
Schedule of proportionally amortized tax credit investments | The following table summarizes the impact to the Consolidated Statements of Operations relative to the Company’s tax credit programs for which it has elected to apply the proportional amortization method of accounting: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Tax credits recognized $76 $59 $250 $180 Other tax benefits recognized 17 15 55 46 Amortization (71) (61) (237) (190) Net benefit (expense) included in income tax expense 22 13 68 36 Other income 1 — 4 — Allocated income (loss) on investments (1) — (7) — Net benefit (expense) included in noninterest income — — (3) — Net benefit (expense) included in the Consolidated Statements of Operations (1) $22 $13 $65 $36 (1) Includes the impact of tax credit investments when the election to apply the proportional amortization method was in effect during the periods presented. For 2023, this includes LIHTC, renewable energy and NMTC investments, and for 2022, includes LIHTC investments. |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term borrowed funds | The following table presents a summary of the Company’s long-term borrowed funds: (dollars in millions) September 30, 2023 December 31, 2022 Parent Company: 3.750% fixed-rate subordinated debt, due July 2024 $90 $90 4.023% fixed-rate subordinated debt, due October 2024 17 17 4.350% fixed-rate subordinated debt, due August 2025 133 133 4.300% fixed-rate subordinated debt, due December 2025 336 336 2.850% fixed-rate senior unsecured notes, due July 2026 498 498 2.500% fixed-rate senior unsecured notes, due February 2030 298 298 3.250% fixed-rate senior unsecured notes, due April 2030 746 746 3.750% fixed-rate reset subordinated debt, due February 2031 69 69 4.300% fixed-rate reset subordinated debt, due February 2031 135 135 4.350% fixed-rate reset subordinated debt, due February 2031 60 61 2.638% fixed-rate subordinated debt, due September 2032 561 556 5.641% fixed-rate reset subordinated debt, due May 2037 398 397 CBNA’s Global Note Program: 3.700% senior unsecured notes, due March 2023 (1) — 497 5.676% floating-rate senior unsecured notes, due March 2023 (1)(2) — 250 2.250% senior unsecured notes, due April 2025 748 748 4.119% fixed/floating-rate senior unsecured notes, due May 2025 649 648 6.064% fixed/floating-rate senior unsecured notes, due October 2025 599 598 5.284% fixed/floating-rate senior unsecured notes, due January 2026 449 — 3.750% senior unsecured notes, due February 2026 473 475 4.575% fixed/floating-rate senior unsecured notes, due August 2028 798 797 Additional Borrowings by CBNA and Other Subsidiaries: Federal Home Loan Bank advances, 5.594% weighted average rate, due through 2041 (3) 7,036 8,519 Secured borrowings, 5.955% weighted average rate, due through 2030 (3)(4) 3,245 — Other 16 19 Total long-term borrowed funds $17,354 $15,887 (1) Notes were redeemed on February 27, 2023. (2) Rate disclosed reflects the floating rate as of September 30, 2023, or final floating rate as applicable. (3) Rate disclosed reflects the weighted average rate as of September 30, 2023. (4) Collateralized by auto loans. See Note 7 for additional information. |
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 September 30, 2023: (dollars in millions) Parent Company CBNA and Other Subsidiaries Consolidated Year 2023 $— $1 $1 2024 107 892 999 2025 469 9,020 9,489 2026 498 2,133 2,631 2027 — 2 2 2028 and thereafter 2,267 1,965 4,232 Total $3,341 $14,013 $17,354 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments in consolidated balance sheets | The following table presents derivative instruments included in the Consolidated Balance Sheets: September 30, 2023 December 31, 2022 (dollars in millions) Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate contracts $89,502 $179 $57 $42,250 $16 $53 Derivatives not designated as hedging instruments: Interest rate contracts 200,389 260 1,785 174,384 331 1,579 Foreign exchange contracts 30,168 530 432 29,475 527 519 Commodities contracts 1,273 707 666 1,103 953 942 TBA contracts 3,561 17 5 2,370 7 14 Other contracts 887 5 3 913 5 4 Total derivatives not designated as hedging instruments 236,278 1,519 2,891 208,245 1,823 3,058 Total gross derivatives 325,780 1,698 2,948 250,495 1,839 3,111 Less: Gross amounts offset in the Consolidated Balance Sheets (1) (609) (609) (623) (623) Less: Cash collateral applied (1) (567) (230) (374) (579) Total net derivatives presented in the Consolidated Balance Sheets $522 $2,109 $842 $1,909 (1) Amounts represent the impact of enforceable master netting agreements that allow the Company to net settle positive and negative positions, as well as collateral paid and received. |
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 September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Affected Line Item in the Consolidated Statements of Operations Interest rate swaps hedging long-term borrowed funds ($1) ($19) $— ($71) Interest expense - long-term borrowed funds Hedged long-term borrowed funds attributable to the risk being hedged 1 19 — 70 Interest expense - long-term borrowed funds Interest rate swaps hedging LHFS — 18 — 15 Interest and fees on other loans held for sale Hedged loans held for sale attributable to the risk being hedged — (19) — (15) Interest and fees on other loans held for sale Interest rate swaps hedging debt securities available for sale 16 — 28 29 Interest income - investment securities Hedged debt securities available for sale attributable to the risk being hedged (16) — (28) (29) Interest income - investment securities The following table reflects amounts recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: (dollars in millions) September 30, 2023 December 31, 2022 Debt securities available for sale Long-term borrowed funds Debt securities available for sale Long-term borrowed funds Carrying amount of hedged assets $445 $— $— $— Carrying amount of hedged liabilities — 473 — 972 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items (17) (26) — (27) |
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 related to derivative instruments designated as cash flow hedges: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Amount of pre-tax net gains (losses) recognized in OCI ($326) ($996) ($773) ($1,901) Amount of pre-tax net gains (losses) reclassified from AOCI into interest income (156) (48) (420) 1 Amount of pre-tax net gains (losses) reclassified from AOCI into interest expense (1) 2 — (4) |
Schedule of effect of derivative Instruments on net income | The following table presents the effect of economic hedges on noninterest income: Amounts Recognized in Three Months Ended September 30, Nine Months Ended September 30, Affected Line Item in the Consolidated Statements of Operations (dollars in millions) 2023 2022 2023 2022 Economic hedge type: Customer interest rate contracts ($448) ($840) ($1,028) ($2,015) Foreign exchange and derivative products Derivatives hedging interest rate risk 460 852 1,068 2,073 Foreign exchange and derivative products Customer foreign exchange contracts (77) (174) (72) (297) Foreign exchange and derivative products Derivatives hedging foreign exchange risk 141 271 121 520 Foreign exchange and derivative products Customer commodity contracts 168 (71) (401) 1,453 Foreign exchange and derivative products Derivatives hedging commodity price risk (158) 77 430 (1,436) Foreign exchange and derivative products Residential loan commitments (21) (66) (39) (289) Mortgage banking fees Derivatives hedging residential loan commitments and mortgage LHFS, at fair value 30 105 45 502 Mortgage banking fees Derivative contracts used to hedge residential MSRs (76) (68) (91) (310) Mortgage banking fees Total $19 $86 $33 $201 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of other comprehensive income | The following tables present the changes in the balances, net of income taxes, of each component of AOCI: As of and for the Three Months Ended September 30, (dollars in millions) Net Unrealized Gains (Losses) on Derivatives Net Unrealized Gains (Losses) on Debt Securities Employee Benefit Plans Total AOCI Balance at July 1, 2022 ($862) ($2,016) ($340) ($3,218) Other comprehensive income (loss) before reclassifications (738) (903) — (1,641) Amounts reclassified to the Consolidated Statements of Operations 34 — 2 36 Net other comprehensive income (loss) (704) (903) 2 (1,605) Balance at September 30, 2022 ($1,566) ($2,919) ($338) ($4,823) Balance at July 1, 2023 ($1,553) ($2,643) ($367) ($4,563) Other comprehensive income (loss) before reclassifications (248) (578) — (826) Amounts reclassified to the Consolidated Statements of Operations 120 23 3 146 Net other comprehensive income (loss) (128) (555) 3 (680) Balance at September 30, 2023 ($1,681) ($3,198) ($364) ($5,243) Primary location in the Consolidated Statements of Operations of amounts reclassified from AOCI Net interest income Securities gains, net Other operating expense As of and for the Nine Months Ended September 30, (dollars in millions) Net Unrealized Gains (Losses) on Derivatives Net Unrealized Gains (Losses) on Debt Securities Employee Benefit Plans Total AOCI Balance at January 1, 2022 ($161) ($156) ($348) ($665) Other comprehensive income (loss) before reclassifications (1,407) (2,759) — (4,166) Amounts reclassified to the Consolidated Statements of Operations 2 (4) 10 8 Net other comprehensive income (loss) (1,405) (2,763) 10 (4,158) Balance at September 30, 2022 ($1,566) ($2,919) ($338) ($4,823) Balance at January 1, 2023 ($1,416) ($2,771) ($373) ($4,560) Other comprehensive income (loss) before reclassifications (580) (490) — (1,070) Amounts reclassified to the Consolidated Statements of Operations 315 63 9 387 Net other comprehensive income (loss) (265) (427) 9 (683) Balance at September 30, 2023 ($1,681) ($3,198) ($364) ($5,243) Primary location in the Consolidated Statements of Operations of amounts reclassified from AOCI Net interest income Securities gains, net Other operating expense |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of preferred stock | The following table summarizes the Company’s preferred stock: September 30, 2023 December 31, 2022 (dollars in millions, except per share data) Liquidation value per share Preferred Shares Carrying Amount Preferred Shares Carrying Amount Authorized ($25 par value per share) 100,000,000 100,000,000 Issued and outstanding: 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 1,000 400,000 395 400,000 395 Series G 1,000 300,000 296 300,000 296 Total 2,050,000 $2,014 2,050,000 $2,014 (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 tables summarize the Company’s dividend activity for the three and nine months ended September 30, 2023 and 2022. Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 (dollars in millions, except per share data) Dividends Declared per Share Dividends Declared Dividends Paid Dividends Declared per Share Dividends Declared Dividends Paid Common stock $0.42 $199 $199 $0.42 $209 $209 Preferred stock Series B $21.81 $7 $9 $— $— $9 Series C 15.93 4 4 15.93 5 5 Series D 15.88 4 4 15.88 5 5 Series E 12.50 6 6 12.50 6 6 Series F 14.13 6 6 14.13 6 6 Series G 10.00 3 3 10.00 3 3 Total preferred stock $30 $32 $25 $34 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 (dollars in millions, except per share data) Dividends Declared per Share Dividends Declared Dividends Paid Dividends Declared per Share Dividends Declared Dividends Paid Common stock $1.26 $609 $609 $1.20 $569 $569 Preferred stock Series B $51.81 $16 $18 $30.00 $9 $18 Series C 47.81 14 14 47.81 15 15 Series D 47.63 14 14 47.63 14 14 Series E 37.50 17 17 37.50 17 17 Series F 42.38 17 17 42.38 17 17 Series G 30.00 9 9 30.00 9 9 Total preferred stock $87 $89 $81 $90 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 19 in the Company’s 2022 Form 10-K. (dollars in millions) September 30, 2023 December 31, 2022 Commitments to extend credit $94,432 $96,076 Letters of credit 2,036 2,119 Loans sold with recourse 95 92 Marketing rights 18 23 Risk participation agreements 1 4 Total $96,582 $98,314 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value option | The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of LHFS measured at fair value: September 30, 2023 December 31, 2022 (dollars in millions) Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Greater (Less) Than Aggregate Unpaid Principal Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Greater (Less) Than Aggregate Unpaid Principal Residential mortgage loans held for sale, at fair value $739 $734 $5 $666 $656 $10 Commercial and industrial, and commercial real estate loans held for sale, at fair value 10 12 (2) 108 127 (19) |
Assets and liabilities measured on recurring basis | The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities, on a recurring basis at September 30, 2023: (dollars in millions) Total Level 1 Level 2 Level 3 Debt securities available for sale: Mortgage-backed securities $20,504 $— $20,504 $— Collateralized loan obligations 789 — 789 — State and political subdivisions 2 — 2 — U.S. Treasury and other 3,774 3,774 — — Total debt securities available for sale 25,069 3,774 21,295 — Loans held for sale, at fair value: Residential loans held for sale 739 — 739 — Commercial loans held for sale 10 — 10 — Total loans held for sale, at fair value 749 — 749 — Mortgage servicing rights 1,620 — — 1,620 Derivative assets: Interest rate contracts 439 — 439 — Foreign exchange contracts 530 — 530 — Commodities contracts 707 — 707 — TBA contracts 17 — 17 — Other contracts 5 — — 5 Total derivative assets 1,698 — 1,693 5 Equity securities, at fair value (1) 106 106 — — Total assets $29,242 $3,880 $23,737 $1,625 Derivative liabilities: Interest rate contracts $1,842 $— $1,842 $— Foreign exchange contracts 432 — 432 — Commodities contracts 666 — 666 — TBA contracts 5 — 5 — Other contracts 3 — 1 2 Total derivative liabilities 2,948 — 2,946 2 Total liabilities $2,948 $— $2,946 $2 (1) Excludes investments of $57 million included in other assets in the Consolidated Balance Sheets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient. These investments include capital contributions to private investment funds and have unfunded capital commitments of $24 million at September 30, 2023, which may be called at any time during prescribed time periods. The credit exposure is generally limited to the carrying amount of investments made and unfunded capital commitments. The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities, on a recurring basis at December 31, 2022: (dollars in millions) Total Level 1 Level 2 Level 3 Debt securities available for sale: Mortgage-backed securities $19,313 $— $19,313 $— Collateralized loan obligations 1,206 — 1,206 — State and political subdivisions 2 — 2 — U.S. Treasury and other 3,486 3,486 — — Total debt securities available for sale 24,007 3,486 20,521 — Loans held for sale, at fair value: Residential loans held for sale 666 — 666 — Commercial loans held for sale 108 — 108 — Total loans held for sale, at fair value 774 — 774 — Mortgage servicing rights 1,530 — — 1,530 Derivative assets: Interest rate contracts 347 — 347 — Foreign exchange contracts 527 — 527 — Commodities contracts 953 — 953 — TBA contracts 7 — 7 — Other contracts 5 — — 5 Total derivative assets 1,839 — 1,834 5 Equity securities, at fair value (1) 110 110 — — Total assets $28,260 $3,596 $23,129 $1,535 Derivative liabilities: Interest rate contracts $1,632 $— $1,632 $— Foreign exchange contracts 519 — 519 — Commodities contracts 942 — 942 — TBA contracts 14 — 14 — Other contracts 4 — — 4 Total derivative liabilities 3,111 — 3,107 4 Total liabilities $3,111 $— $3,107 $4 (1) Excludes investments of $43 million included in other assets in the Consolidated Balance Sheets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient. These investments include capital contributions to private investment funds and have unfunded capital commitments of $42 million at December 31, 2022, which may be called at any time during prescribed time periods. The credit exposure is generally limited to the carrying amount of investments made and unfunded capital commitments. |
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 September 30, 2023 Nine Months Ended September 30, 2023 (dollars in millions) Mortgage Servicing Rights Other Derivative Contracts Mortgage Servicing Rights Other Derivative Contracts Beginning balance $1,524 $6 $1,530 $1 Issuances 47 17 104 52 Settlements (2) (42) 1 (124) (11) Changes in fair value during the period recognized in earnings (3) 91 (21) 110 (39) Ending balance $1,620 $3 $1,620 $3 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (dollars in millions) Mortgage Servicing Rights Other Derivative Contracts Mortgage Servicing Rights Other Derivative Contracts Beginning balance $1,411 $11 $1,029 $38 Issuances 70 20 244 84 Acquisitions (1) — — 16 — Settlements (2) (31) 2 (102) 134 Changes in fair value during the period recognized in earnings (3) 74 (66) 337 (289) Ending balance $1,524 ($33) $1,524 ($33) (1) Represents MSRs acquired as part of the Investors acquisition. (2) For MSRs, 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. For other derivative contracts, represents the closeout of interest rate lock commitments. (3) Represents changes in value primarily driven by market conditions. These changes are recorded in mortgage banking fees in the Consolidated Statements of Operations. |
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 September 30, 2023 Valuation Technique Unobservable Input Range (Weighted Average) Mortgage servicing rights Discounted Cash Flow Constant prepayment rate 5.81-14.26% CPR (6.40% CPR) Option adjusted spread 398-1,058 bps (630 bps) Other derivative contracts Internal Model Pull through rate 17.14-99.70% (82.27%) MSR value 4.25-153.04 bps (96.79 bps) |
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 September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Collateral-dependent loans ($40) $— ($108) ($3) |
Fair value of assets and liabilities measured on a nonrecurring basis | The following table presents assets measured at fair value on a nonrecurring basis: September 30, 2023 December 31, 2022 (dollars in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Collateral-dependent loans $835 $— $835 $— $582 $— $582 $— |
Assets and liabilities measured at fair value | The following tables present the estimated fair value for financial instruments not recorded at fair value in the unaudited interim Consolidated Financial Statements. The carrying amounts are recorded in the Consolidated Balance Sheets under the indicated captions: September 30, 2023 Total Level 1 Level 2 Level 3 (dollars in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial assets: Debt securities held to maturity $9,320 $8,054 $— $— $8,810 $7,569 $510 $485 Other loans held for sale 99 99 — — — — 99 99 Net loans and leases 147,666 141,041 — — 835 835 146,831 140,206 Other assets 995 995 — — 977 977 18 18 Financial liabilities: Deposits 178,197 178,077 — — 178,197 178,077 — — Short-term borrowed funds 232 232 — — 232 232 — — Long-term borrowed funds 17,354 16,656 — — 17,354 16,656 — — December 31, 2022 Total Level 1 Level 2 Level 3 (dollars in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial assets: Debt securities held to maturity $9,834 $9,042 $— $— $9,253 $8,506 $581 $536 Other loans held for sale 208 208 — — — — 208 208 Net loans and leases 154,679 151,601 — — 582 582 154,097 151,019 Other assets 1,058 1,058 — — 1,038 1,038 20 20 Financial liabilities: Deposits 180,724 180,566 — — 180,724 180,566 — — Short-term borrowed funds 3 3 — — 3 3 — — Long-term borrowed funds 15,887 15,469 — — 15,887 15,469 — — |
NONINTEREST INCOME (Tables)
NONINTEREST INCOME (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Components of revenue from contracts with customers | The following tables present the components of revenue from contracts with customers disaggregated by revenue stream and business operating segment: Three Months Ended September 30, 2023 (dollars in millions) Consumer Banking Commercial Banking Non-Core Other Consolidated Service charges and fees $73 $31 $— $1 $105 Card fees 62 12 — — 74 Capital markets fees — 64 — — 64 Trust and investment services fees 62 1 — — 63 Other banking fees 1 3 — — 4 Total revenue from contracts with customers $198 $111 $— $1 $310 Total revenue from other sources (1) 80 69 — 33 182 Total noninterest income $278 $180 $— $34 $492 Three Months Ended September 30, 2022 (dollars in millions) Consumer Banking Commercial Banking Non-Core Other Consolidated Service charges and fees $74 $33 $— $1 $108 Card fees 59 11 — — 70 Capital markets fees — 76 — — 76 Trust and investment services fees 61 — — — 61 Other banking fees — 7 — — 7 Total revenue from contracts with customers $194 $127 $— $1 $322 Total revenue from other sources (1) 76 86 — 28 190 Total noninterest income $270 $213 $— $29 $512 Nine Months Ended September 30, 2023 (dollars in millions) Consumer Banking Commercial Banking Non-Core Other Consolidated Service charges and fees $206 $98 $— $1 $305 Card fees 188 35 — — 223 Capital markets fees — 211 — — 211 Trust and investment services fees 190 1 — — 191 Other banking fees 2 10 — — 12 Total revenue from contracts with customers $586 $355 $— $1 $942 Total revenue from other sources (1) 216 233 — 92 541 Total noninterest income $802 $588 $— $93 $1,483 Nine Months Ended September 30, 2022 (dollars in millions) Consumer Banking Commercial Banking Non-Core Other Consolidated Service charges and fees $217 $94 $— $3 $314 Card fees 169 31 — — 200 Capital markets fees — 244 — — 244 Trust and investment services fees 188 — — — 188 Other banking fees — 14 — 1 15 Total revenue from contracts with customers $574 $383 $— $4 $961 Total revenue from other sources (1) 233 264 — 46 543 Total noninterest income $807 $647 $— $50 $1,504 (1) Includes bank-owned life insurance income of $24 million and $22 million for the three months ended September 30, 2023 and 2022, respectively, and $70 million and $64 million for the nine months ended September 30, 2023 and 2022, respectively. |
OTHER OPERATING EXPENSE (Tables
OTHER OPERATING EXPENSE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of other operating expense | The following table presents the details of other operating expense: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Marketing $48 $54 $142 $119 Deposit insurance 42 28 121 74 Other 86 83 279 235 Other operating expense $176 $165 $542 $428 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions, except per share data) 2023 2022 2023 2022 Numerator (basic and diluted): Net income $430 $636 $1,419 $1,420 Less: Preferred stock dividends 30 25 87 81 Net income available to common stockholders $400 $611 $1,332 $1,339 Denominator: Weighted-average common shares outstanding - basic 469,481,085 495,651,083 478,073,507 470,118,265 Dilutive common shares: share-based awards 1,702,634 1,826,418 1,659,501 1,840,045 Weighted-average common shares outstanding - diluted 471,183,719 497,477,501 479,733,008 471,958,310 Earnings per common share: Basic $0.85 $1.23 $2.79 $2.85 Diluted (1) 0.85 1.23 2.78 2.84 (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 2,566,762 and 2,310,242 for the three months ended September 30, 2023 and 2022, respectively, and 2,391,244 and 903,782 for the nine months ended September 30, 2023 and 2022, respectively. |
BUSINESS OPERATING SEGMENTS (Ta
BUSINESS OPERATING SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Three Months Ended September 30, 2023 (dollars in millions) Consumer Banking Commercial Banking Non-Core Other Consolidated Net interest income $1,067 $560 ($41) ($64) $1,522 Noninterest income 278 180 — 34 492 Total revenue 1,345 740 (41) (30) 2,014 Noninterest expense 905 325 30 33 1,293 Profit (loss) before provision (benefit) for credit losses 440 415 (71) (63) 721 Provision (benefit) for credit losses 67 67 20 18 172 Income (loss) before income tax expense (benefit) 373 348 (91) (81) 549 Income tax expense (benefit) 97 88 (24) (42) 119 Net income (loss) $276 $260 ($67) ($39) $430 Total average assets $72,964 $74,997 $13,113 $59,088 $220,162 Three Months Ended September 30, 2022 (dollars in millions) Consumer Banking Commercial Banking Non-Core Other Consolidated Net interest income $989 $558 $70 $48 $1,665 Noninterest income 270 213 — 29 512 Total revenue 1,259 771 70 77 2,177 Noninterest expense 828 325 36 52 1,241 Profit (loss) before provision (benefit) for credit losses 431 446 34 25 936 Provision (benefit) for credit losses 47 12 14 50 123 Income (loss) before income tax expense (benefit) 384 434 20 (25) 813 Income tax expense (benefit) 98 100 4 (25) 177 Net income (loss) $286 $334 $16 $— $636 Total average assets $71,631 $80,067 $17,929 $55,846 $225,473 Nine Months Ended September 30, 2023 (dollars in millions) Consumer Banking Commercial Banking Non-Core Other Consolidated Net interest income $3,101 $1,741 ($84) ($5) $4,753 Noninterest income 802 588 — 93 1,483 Total revenue 3,903 2,329 (84) 88 6,236 Noninterest expense 2,637 971 95 192 3,895 Profit (loss) before provision (benefit) for credit losses 1,266 1,358 (179) (104) 2,341 Provision (benefit) for credit losses 198 185 54 79 516 Income (loss) before income tax expense (benefit) 1,068 1,173 (233) (183) 1,825 Income tax expense (benefit) 278 289 (61) (100) 406 Net income (loss) $790 $884 ($172) ($83) $1,419 Total average assets $72,477 $77,130 $14,409 $57,723 $221,739 Nine Months Ended September 30, 2022 (dollars in millions) Consumer Banking Commercial Banking Non-Core Other Consolidated Net interest income $2,635 $1,508 $359 ($185) $4,317 Noninterest income 807 647 — 50 1,504 Total revenue 3,442 2,155 359 (135) 5,821 Noninterest expense 2,424 905 105 218 3,652 Profit (loss) before provision (benefit) for credit losses 1,018 1,250 254 (353) 2,169 Provision (benefit) for credit losses 117 34 33 158 342 Income (loss) before income tax expense (benefit) 901 1,216 221 (511) 1,827 Income tax expense (benefit) 230 270 56 (149) 407 Net income (loss) $671 $946 $165 ($362) $1,420 Total average assets $66,793 $73,344 $18,582 $53,003 $211,722 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jan. 01, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings | $ (9,856) | $ (9,856) | $ (9,159) | ||||
Other assets | [1] | (13,613) | (13,613) | $ (13,089) | |||
Income tax expense | $ 119 | $ 177 | $ 406 | $ 407 | |||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2023-02 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained earnings | $ 26 | ||||||
Other assets | 101 | ||||||
Income tax expense | $ 75 | ||||||
[1]Includes amounts in consolidated VIEs. See Note 7 for additional information. |
SECURITIES - Schedule of Invest
SECURITIES - Schedule of Investments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | |||
Fair Value | [1] | $ 25,069 | $ 24,007 |
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | |||
Amortized Cost | [1] | 9,320 | 9,834 |
Gross Unrealized Gains | 1 | 4 | |
Gross Unrealized Gains | (1,267) | (796) | |
Fair Value | 8,054 | 9,042 | |
Total equity securities, at cost, Amortized Cost | 995 | 1,058 | |
Equity securities, at cost, fair value | 995 | 1,058 | |
Equity Securities, Amortized Cost | 163 | 153 | |
Equity Securities, Fair Value | 163 | 153 | |
Portfolio level basis adjustments excluded from amortized cost | 17 | ||
Total debt securities available for sale, at fair value | |||
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | |||
Amortized Cost | 28,204 | 26,458 | |
Gross Unrealized Gains | 1 | 11 | |
Gross Unrealized Losses | (3,136) | (2,462) | |
Fair Value | 25,069 | 24,007 | |
U.S. Treasury and other | |||
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | |||
Amortized Cost | 4,025 | 3,678 | |
Gross Unrealized Gains | 0 | 1 | |
Gross Unrealized Losses | (251) | (193) | |
Fair Value | 3,774 | 3,486 | |
State and political subdivisions | |||
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | |||
Amortized Cost | 2 | 2 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 2 | 2 | |
Total mortgage-backed securities | |||
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | |||
Amortized Cost | 23,380 | 21,530 | |
Gross Unrealized Gains | 1 | 10 | |
Gross Unrealized Losses | (2,877) | (2,227) | |
Fair Value | 20,504 | 19,313 | |
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | |||
Amortized Cost | 8,810 | 9,253 | |
Gross Unrealized Gains | 0 | 4 | |
Gross Unrealized Gains | (1,241) | (751) | |
Fair Value | 7,569 | 8,506 | |
Federal agencies and U.S. government sponsored entities | |||
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | |||
Amortized Cost | 23,101 | 21,250 | |
Gross Unrealized Gains | 1 | 10 | |
Gross Unrealized Losses | (2,845) | (2,198) | |
Fair Value | 20,257 | 19,062 | |
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | |||
Amortized Cost | 8,810 | 9,253 | |
Gross Unrealized Gains | 0 | 4 | |
Gross Unrealized Gains | (1,241) | (751) | |
Fair Value | 7,569 | 8,506 | |
Other/non-agency | |||
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | |||
Amortized Cost | 279 | 280 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (32) | (29) | |
Fair Value | 247 | 251 | |
Collateralized loan obligations | |||
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | |||
Amortized Cost | 797 | 1,248 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (8) | (42) | |
Fair Value | 789 | 1,206 | |
Asset-backed securities | |||
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | |||
Amortized Cost | 510 | 581 | |
Gross Unrealized Gains | 1 | 0 | |
Gross Unrealized Gains | (26) | (45) | |
Fair Value | $ 485 | $ 536 | |
[1]Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||||
Accrued interest receivable on debt securities | $ 127,000,000 | $ 127,000,000 | $ 107,000,000 | ||
Taxable interest income from securities | 290,000,000 | $ 243,000,000 | 823,000,000 | $ 582,000,000 | |
Offsetting of short-term receivables or payables recognized | $ 0 | $ 0 | $ 0 | ||
Held-to-maturity, zero expected credit loss, percent of portfolio | 95% | 95% | |||
Allowance for credit loss recognized | $ 0 | $ 0 | |||
Mortgage-backed securities | |||||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||||
Securitizations of mortgage loans | $ 65,000,000 | $ 59,000,000 | $ 65,000,000 | $ 99,000,000 |
SECURITIES - Schedule of Availa
SECURITIES - Schedule of Available for Sale Securities Debt Maturities (Details) $ in Millions | Sep. 30, 2023 USD ($) |
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 | 4,094 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 3,793 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 20,317 |
Amortized Cost, Debt securities available for sale, Total | 28,204 |
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 | 510 |
Amortized Cost, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity After 10 Years | 8,810 |
Amortized Cost, Debt securities held to maturity, Total | 9,320 |
Total amortized cost of debt securities, Maturity of 1 Year or Less | 0 |
Total amortized cost of debt securities, Maturity of 1-5 Years | 4,604 |
Total amortized cost of debt securities, Maturity of 5-10 Years | 3,793 |
Total amortized cost of debt securities, Maturity After 10 Years | 29,127 |
Total amortized cost of debt securities, Total | 37,524 |
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 | 3,826 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 3,511 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 17,732 |
Fair Value, Debt securities available for sale, Total | 25,069 |
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 | 485 |
Fair Value, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity After 10 Years | 7,569 |
Fair Value, Debt securities held to maturity, Total | 8,054 |
Total fair value of debt securities, Maturity of 1 Year or Less | 0 |
Total fair value of debt securities, Maturity of 1-5 Years | 4,311 |
Total fair value of debt securities, Maturity of 5-10 Years | 3,511 |
Total fair value of debt securities, Maturity After 10 Years | 25,301 |
Total fair value of debt securities, Total | 33,123 |
U.S. Treasury and other | |
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 | 2,688 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,337 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 0 |
Amortized Cost, Debt securities available for sale, Total | 4,025 |
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 | 2,513 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,261 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 0 |
Fair Value, Debt securities available for sale, Total | 3,774 |
State and political subdivisions | |
Amortized cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | |
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 | 2 |
Amortized Cost, Debt securities available for sale, Total | 2 |
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 | 2 |
Fair Value, Debt securities available for sale, Total | 2 |
Federal agencies and U.S. government sponsored entities | |
Amortized cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 1,406 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 2,431 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 19,264 |
Amortized Cost, Debt securities available for sale, Total | 23,101 |
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 | 8,810 |
Amortized Cost, Debt securities held to maturity, Total | 8,810 |
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 | 1,313 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 2,225 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 16,719 |
Fair Value, Debt securities available for sale, Total | 20,257 |
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 | 7,569 |
Fair Value, Debt securities held to maturity, Total | 7,569 |
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 | 279 |
Amortized Cost, Debt securities available for sale, Total | 279 |
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 | 247 |
Fair Value, Debt securities available for sale, Total | 247 |
Collateralized loan obligations | |
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 | 25 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 772 |
Amortized Cost, Debt securities available for sale, Total | 797 |
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 | 25 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 764 |
Fair Value, Debt securities available for sale, Total | 789 |
Asset-backed securities | |
Amortized cost: | |
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 | 510 |
Amortized Cost, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity After 10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Total | 510 |
Fair value: | |
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 | 485 |
Fair Value, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity After 10 Years | 0 |
Fair Value, Debt securities held to maturity, Total | $ 485 |
SECURITIES - Income Recognized
SECURITIES - Income Recognized from Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gains | $ 9 | $ 0 | $ 27 | $ 9 |
Losses | (4) | 0 | (8) | (4) |
Securities gains, net | $ 5 | $ 0 | $ 19 | $ 5 |
SECURITIES - Schedule of Securi
SECURITIES - Schedule of Securities Pledged (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Pledged against derivatives, to qualify for fiduciary powers, or to secure public and other deposits as required by law | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Debt securities at amortized cost | $ 5,739 | $ 3,966 |
Debt securities at fair value | 4,945 | 3,527 |
Pledged as collateral for FHLB borrowing capacity | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Debt securities at amortized cost | 243 | 244 |
Debt securities at fair value | 213 | 217 |
Pledged against repurchase agreements | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Debt securities at amortized cost | 250 | 0 |
Debt securities at fair value | $ 248 | $ 0 |
SECURITIES - Schedule of Inve_2
SECURITIES - Schedule of Investments in Continuous Loss Positions (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value | ||
Less than 12 Months | $ 4,411 | $ 17,574 |
12 Months or Longer | 20,043 | 5,634 |
Total | 24,454 | 23,208 |
Gross Unrealized Losses | ||
Less than 12 Months | (123) | (1,363) |
12 Months or Longer | (3,013) | (1,099) |
Total | (3,136) | (2,462) |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 3,796 | 13,433 |
12 Months or Longer | 16,144 | 5,213 |
Total | 19,940 | 18,646 |
Gross Unrealized Losses | ||
Less than 12 Months | (111) | (1,144) |
12 Months or Longer | (2,766) | (1,083) |
Total | (2,877) | (2,227) |
U.S. Treasury and other | ||
Fair Value | ||
Less than 12 Months | 583 | 3,356 |
12 Months or Longer | 3,142 | 0 |
Total | 3,725 | 3,356 |
Gross Unrealized Losses | ||
Less than 12 Months | (12) | (193) |
12 Months or Longer | (239) | 0 |
Total | (251) | (193) |
Federal agencies and U.S. government sponsored entities | ||
Fair Value | ||
Less than 12 Months | 3,796 | 13,353 |
12 Months or Longer | 15,897 | 5,042 |
Total | 19,693 | 18,395 |
Gross Unrealized Losses | ||
Less than 12 Months | (111) | (1,136) |
12 Months or Longer | (2,734) | (1,062) |
Total | (2,845) | (2,198) |
Other/non-agency | ||
Fair Value | ||
Less than 12 Months | 0 | 80 |
12 Months or Longer | 247 | 171 |
Total | 247 | 251 |
Gross Unrealized Losses | ||
Less than 12 Months | 0 | (8) |
12 Months or Longer | (32) | (21) |
Total | (32) | (29) |
Collateralized loan obligations | ||
Fair Value | ||
Less than 12 Months | 32 | 785 |
12 Months or Longer | 757 | 421 |
Total | 789 | 1,206 |
Gross Unrealized Losses | ||
Less than 12 Months | 0 | (26) |
12 Months or Longer | (8) | (16) |
Total | $ (8) | $ (42) |
LOANS AND LEASES - Summary of L
LOANS AND LEASES - Summary of Loans and Leases Portfolio (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | $ 149,746 | $ 156,662 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 77,457 | 82,180 |
Commercial | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 46,753 | 51,836 |
Commercial | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 29,486 | 28,865 |
Commercial | Leases | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 1,218 | 1,479 |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 72,289 | 74,482 |
Retail | Residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 30,983 | 29,921 |
Retail | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 14,729 | 14,043 |
Retail | Automobile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 9,290 | 12,292 |
Retail | Education | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | 12,134 | 12,808 |
Retail | Other retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and leases | $ 5,153 | $ 5,418 |
LOANS AND LEASES - Narrative (D
LOANS AND LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accrued interest receivable on loans and leases held for investment | $ 887 | $ 887 | $ 820 | |||
Loans pledged as collateral for FHLB borrowed funds | [1] | 147,666 | 147,666 | 154,679 | ||
Interest income on direct financing lease | 12 | $ 13 | 36 | $ 34 | ||
Retail | Residential mortgages | Pledged as collateral for FHLB borrowing capacity | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans pledged as collateral for FHLB borrowed funds | 37,100 | 37,100 | 38,400 | |||
Consumer and Commercial Portfolio Segment | Auto, commercial and commercial real estate loans | Notes Payable, Other Payables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans pledged as collateral for FHLB borrowed funds | $ 31,100 | $ 31,100 | $ 34,800 | |||
[1]Includes amounts in consolidated VIEs. See Note 7 for additional information. |
LOANS AND LEASES - Loans Held F
LOANS AND LEASES - Loans Held For Sale (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale, at fair value | $ 749 | $ 774 |
Other loans held for sale | 99 | 208 |
Residential loans held for sale | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale, at fair value | 739 | 666 |
Other loans held for sale | 0 | 0 |
Commercial loans held for sale | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale, at fair value | 10 | 108 |
Other loans held for sale | $ 99 | $ 208 |
CREDIT QUALITY AND THE ALLOWA_3
CREDIT QUALITY AND THE ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses, beginning of period | $ 2,044 | $ 1,964 | $ 1,983 | $ 1,758 |
Allowance on PCD loans and leases at acquisition | 0 | 101 | ||
Charge-offs | (191) | (116) | (551) | (308) |
Recoveries | 38 | 42 | 113 | 126 |
Net charge-offs | (153) | (74) | (438) | (182) |
Provision expense (benefit) for loans and leases | 189 | 90 | 535 | 303 |
Allowance for loan and lease losses, end of period | 2,080 | 1,980 | 2,080 | 1,980 |
Unfunded lending commitments [Roll Forward] | ||||
Allowance for unfunded lending commitments, beginning of period | 255 | 183 | 257 | 176 |
Provision expense (benefit) for unfunded lending commitments | (17) | 33 | (19) | 39 |
Allowance on PCD unfunded lending commitments at acquisition | 0 | 1 | ||
Allowance for unfunded lending commitments, end of period | 238 | 216 | 238 | 216 |
Total allowance for credit losses, end of period | 2,318 | 2,196 | 2,318 | 2,196 |
Online Deposit Business And 80 East Coast Branches Of HSBC Bank And Investors | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Provision expense (benefit) for loans and leases | 169 | |||
Commercial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses, beginning of period | 1,157 | 987 | 1,060 | 821 |
Allowance on PCD loans and leases at acquisition | 0 | 99 | ||
Charge-offs | (74) | (22) | (212) | (49) |
Recoveries | 4 | 7 | 14 | 13 |
Net charge-offs | (70) | (15) | (198) | (36) |
Provision expense (benefit) for loans and leases | 146 | 58 | 371 | 146 |
Allowance for loan and lease losses, end of period | 1,233 | 1,030 | 1,233 | 1,030 |
Unfunded lending commitments [Roll Forward] | ||||
Allowance for unfunded lending commitments, beginning of period | 213 | 166 | 207 | 153 |
Provision expense (benefit) for unfunded lending commitments | (21) | 6 | (15) | 18 |
Allowance on PCD unfunded lending commitments at acquisition | 0 | 1 | ||
Allowance for unfunded lending commitments, end of period | 192 | 172 | 192 | 172 |
Total allowance for credit losses, end of period | 1,425 | 1,202 | 1,425 | 1,202 |
Commercial | Investors Acquisition | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Charge-offs | (33) | |||
Retail | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses, beginning of period | 887 | 977 | 923 | 937 |
Allowance on PCD loans and leases at acquisition | 0 | 2 | ||
Charge-offs | (117) | (94) | (339) | (259) |
Recoveries | 34 | 35 | 99 | 113 |
Net charge-offs | (83) | (59) | (240) | (146) |
Provision expense (benefit) for loans and leases | 43 | 32 | 164 | 157 |
Allowance for loan and lease losses, end of period | 847 | 950 | 847 | 950 |
Unfunded lending commitments [Roll Forward] | ||||
Allowance for unfunded lending commitments, beginning of period | 42 | 17 | 50 | 23 |
Provision expense (benefit) for unfunded lending commitments | 4 | 27 | (4) | 21 |
Allowance on PCD unfunded lending commitments at acquisition | 0 | 0 | ||
Allowance for unfunded lending commitments, end of period | 46 | 44 | 46 | 44 |
Total allowance for credit losses, end of period | $ 893 | $ 994 | $ 893 | $ 994 |
CREDIT QUALITY AND THE ALLOWA_4
CREDIT QUALITY AND THE ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Net charge-offs | $ 153 | $ 74 | $ 438 | $ 182 | |
Credit provision | 172 | 123 | 516 | 342 | |
Increase to ACL | 78 | ||||
Loans and leases | 149,746 | 149,746 | $ 156,662 | ||
Mortgage loans collateralized by OREO | 321 | 321 | 250 | ||
Amortized cost basis | 408 | 944 | |||
Charge-offs | 191 | 116 | 551 | 308 | |
TDR commitment to lend | 81 | ||||
Troubled Debt Restructuring | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Charge-offs | 2 | ||||
Commercial | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Net charge-offs | 70 | 15 | 198 | 36 | |
Loans and leases | 77,457 | 77,457 | 82,180 | ||
Amortized cost basis | 365 | 836 | |||
Charge-offs | 74 | 22 | 212 | 49 | |
Retail | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Net charge-offs | 83 | 59 | 240 | 146 | |
Loans and leases | 72,289 | 72,289 | 74,482 | ||
Amortized cost basis | 43 | 108 | |||
Charge-offs | 117 | $ 94 | 339 | $ 259 | |
Commercial and industrial | Commercial | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Loans and leases | 46,753 | 46,753 | 51,836 | ||
Amortized cost basis | 196 | 344 | |||
Charge-offs | 97 | ||||
Unfunded loan commitment | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Amortized cost basis | 146 | ||||
Collateral Dependent | Home Equity Loan and Residential Mortgages | Retail | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Loans and leases | 542 | 542 | 561 | ||
Collateral Dependent | Commercial and industrial | Commercial | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Loans and leases | $ 293 | $ 293 | $ 21 |
CREDIT QUALITY AND THE ALLOWA_5
CREDIT QUALITY AND THE ALLOWANCE FOR CREDIT LOSSES - Amortized Cost Basis by Credit Quality Indicator (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Total | $ 149,746 | $ 149,746 | $ 156,662 | ||
Gross charge-offs | |||||
Total | 191 | $ 116 | 551 | $ 308 | |
Commercial | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 3,981 | 3,981 | 14,715 | ||
Year two | 14,179 | 14,179 | 15,843 | ||
Year three | 13,558 | 13,558 | 6,633 | ||
Year four | 5,495 | 5,495 | 6,280 | ||
Year five | 4,923 | 4,923 | 4,245 | ||
Prior to year five | 8,906 | 8,906 | 7,076 | ||
Within the Revolving Period | 26,340 | 26,340 | 27,221 | ||
Converted to Term | 75 | 75 | 167 | ||
Total | 77,457 | 77,457 | 82,180 | ||
Gross charge-offs | |||||
Year one | 0 | ||||
Year two | 1 | ||||
Year three | 32 | ||||
Year four | 55 | ||||
Year five | 12 | ||||
Prior to year five | 77 | ||||
Within the Revolving Period | 35 | ||||
Converted to Term | 0 | ||||
Total | 74 | 22 | 212 | 49 | |
Commercial | Pass | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 3,972 | 3,972 | 14,334 | ||
Year two | 12,677 | 12,677 | 15,274 | ||
Year three | 12,045 | 12,045 | 6,113 | ||
Year four | 4,484 | 4,484 | 5,239 | ||
Year five | 3,613 | 3,613 | 3,607 | ||
Prior to year five | 6,874 | 6,874 | 5,833 | ||
Within the Revolving Period | 24,762 | 24,762 | 26,099 | ||
Converted to Term | 61 | 61 | 151 | ||
Total | 68,488 | 68,488 | 76,650 | ||
Commercial | Special Mention | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 6 | 6 | 129 | ||
Year two | 840 | 840 | 313 | ||
Year three | 977 | 977 | 225 | ||
Year four | 240 | 240 | 470 | ||
Year five | 574 | 574 | 148 | ||
Prior to year five | 449 | 449 | 269 | ||
Within the Revolving Period | 636 | 636 | 426 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 3,722 | 3,722 | 1,980 | ||
Commercial | Substandard | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 3 | 3 | 242 | ||
Year two | 544 | 544 | 240 | ||
Year three | 490 | 490 | 285 | ||
Year four | 753 | 753 | 511 | ||
Year five | 585 | 585 | 449 | ||
Prior to year five | 1,264 | 1,264 | 959 | ||
Within the Revolving Period | 883 | 883 | 620 | ||
Converted to Term | 10 | 10 | 14 | ||
Total | 4,532 | 4,532 | 3,320 | ||
Commercial | Doubtful | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 0 | 0 | 10 | ||
Year two | 118 | 118 | 16 | ||
Year three | 46 | 46 | 10 | ||
Year four | 18 | 18 | 60 | ||
Year five | 151 | 151 | 41 | ||
Prior to year five | 319 | 319 | 15 | ||
Within the Revolving Period | 59 | 59 | 76 | ||
Converted to Term | 4 | 4 | 2 | ||
Total | 715 | 715 | 230 | ||
Commercial | Commercial and industrial | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 2,545 | 2,545 | 8,588 | ||
Year two | 7,462 | 7,462 | 8,890 | ||
Year three | 6,366 | 6,366 | 2,548 | ||
Year four | 1,756 | 1,756 | 2,408 | ||
Year five | 1,432 | 1,432 | 1,522 | ||
Prior to year five | 2,847 | 2,847 | 2,468 | ||
Within the Revolving Period | 24,279 | 24,279 | 25,248 | ||
Converted to Term | 66 | 66 | 164 | ||
Total | 46,753 | 46,753 | 51,836 | ||
Gross charge-offs | |||||
Year one | 0 | ||||
Year two | 1 | ||||
Year three | 32 | ||||
Year four | 4 | ||||
Year five | 1 | ||||
Prior to year five | 24 | ||||
Within the Revolving Period | 35 | ||||
Converted to Term | 0 | ||||
Total | 97 | ||||
Commercial | Commercial and industrial | Pass | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 2,539 | 2,539 | 8,304 | ||
Year two | 6,979 | 6,979 | 8,469 | ||
Year three | 5,557 | 5,557 | 2,224 | ||
Year four | 1,459 | 1,459 | 2,074 | ||
Year five | 1,244 | 1,244 | 1,334 | ||
Prior to year five | 2,217 | 2,217 | 1,952 | ||
Within the Revolving Period | 22,929 | 22,929 | 24,211 | ||
Converted to Term | 52 | 52 | 148 | ||
Total | 42,976 | 42,976 | 48,716 | ||
Commercial | Commercial and industrial | Special Mention | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 6 | 6 | 124 | ||
Year two | 172 | 172 | 189 | ||
Year three | 448 | 448 | 120 | ||
Year four | 81 | 81 | 74 | ||
Year five | 72 | 72 | 48 | ||
Prior to year five | 214 | 214 | 153 | ||
Within the Revolving Period | 552 | 552 | 364 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 1,545 | 1,545 | 1,072 | ||
Commercial | Commercial and industrial | Substandard | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 0 | 0 | 150 | ||
Year two | 285 | 285 | 218 | ||
Year three | 320 | 320 | 203 | ||
Year four | 207 | 207 | 255 | ||
Year five | 112 | 112 | 99 | ||
Prior to year five | 314 | 314 | 349 | ||
Within the Revolving Period | 742 | 742 | 597 | ||
Converted to Term | 10 | 10 | 14 | ||
Total | 1,990 | 1,990 | 1,885 | ||
Commercial | Commercial and industrial | Doubtful | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 0 | 0 | 10 | ||
Year two | 26 | 26 | 14 | ||
Year three | 41 | 41 | 1 | ||
Year four | 9 | 9 | 5 | ||
Year five | 4 | 4 | 41 | ||
Prior to year five | 102 | 102 | 14 | ||
Within the Revolving Period | 56 | 56 | 76 | ||
Converted to Term | 4 | 4 | 2 | ||
Total | 242 | 242 | 163 | ||
Commercial | Commercial real estate | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 1,366 | 1,366 | 5,860 | ||
Year two | 6,492 | 6,492 | 6,581 | ||
Year three | 6,880 | 6,880 | 3,830 | ||
Year four | 3,530 | 3,530 | 3,764 | ||
Year five | 3,415 | 3,415 | 2,594 | ||
Prior to year five | 5,733 | 5,733 | 4,260 | ||
Within the Revolving Period | 2,061 | 2,061 | 1,973 | ||
Converted to Term | 9 | 9 | 3 | ||
Total | 29,486 | 29,486 | 28,865 | ||
Gross charge-offs | |||||
Year one | 0 | ||||
Year two | 0 | ||||
Year three | 0 | ||||
Year four | 51 | ||||
Year five | 11 | ||||
Prior to year five | 53 | ||||
Within the Revolving Period | 0 | ||||
Converted to Term | 0 | ||||
Total | 115 | ||||
Commercial | Commercial real estate | Pass | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 1,366 | 1,366 | 5,767 | ||
Year two | 5,516 | 5,516 | 6,442 | ||
Year three | 6,193 | 6,193 | 3,639 | ||
Year four | 2,823 | 2,823 | 3,066 | ||
Year five | 2,300 | 2,300 | 2,145 | ||
Prior to year five | 4,334 | 4,334 | 3,536 | ||
Within the Revolving Period | 1,833 | 1,833 | 1,888 | ||
Converted to Term | 9 | 9 | 3 | ||
Total | 24,374 | 24,374 | 26,486 | ||
Commercial | Commercial real estate | Special Mention | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 0 | 0 | 1 | ||
Year two | 640 | 640 | 119 | ||
Year three | 528 | 528 | 103 | ||
Year four | 158 | 158 | 390 | ||
Year five | 500 | 500 | 99 | ||
Prior to year five | 235 | 235 | 113 | ||
Within the Revolving Period | 84 | 84 | 62 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 2,145 | 2,145 | 887 | ||
Commercial | Commercial real estate | Substandard | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 0 | 0 | 92 | ||
Year two | 244 | 244 | 18 | ||
Year three | 157 | 157 | 79 | ||
Year four | 540 | 540 | 253 | ||
Year five | 468 | 468 | 350 | ||
Prior to year five | 947 | 947 | 610 | ||
Within the Revolving Period | 141 | 141 | 23 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 2,497 | 2,497 | 1,425 | ||
Commercial | Commercial real estate | Doubtful | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 0 | 0 | 0 | ||
Year two | 92 | 92 | 2 | ||
Year three | 2 | 2 | 9 | ||
Year four | 9 | 9 | 55 | ||
Year five | 147 | 147 | 0 | ||
Prior to year five | 217 | 217 | 1 | ||
Within the Revolving Period | 3 | 3 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 470 | 470 | 67 | ||
Commercial | Leases | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 70 | 70 | 267 | ||
Year two | 225 | 225 | 372 | ||
Year three | 312 | 312 | 255 | ||
Year four | 209 | 209 | 108 | ||
Year five | 76 | 76 | 129 | ||
Prior to year five | 326 | 326 | 348 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 1,218 | 1,218 | 1,479 | ||
Gross charge-offs | |||||
Year one | 0 | ||||
Year two | 0 | ||||
Year three | 0 | ||||
Year four | 0 | ||||
Year five | 0 | ||||
Prior to year five | 0 | ||||
Within the Revolving Period | 0 | ||||
Converted to Term | 0 | ||||
Total | 0 | ||||
Commercial | Leases | Pass | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 67 | 67 | 263 | ||
Year two | 182 | 182 | 363 | ||
Year three | 295 | 295 | 250 | ||
Year four | 202 | 202 | 99 | ||
Year five | 69 | 69 | 128 | ||
Prior to year five | 323 | 323 | 345 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 1,138 | 1,138 | 1,448 | ||
Commercial | Leases | Special Mention | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 0 | 0 | 4 | ||
Year two | 28 | 28 | 5 | ||
Year three | 1 | 1 | 2 | ||
Year four | 1 | 1 | 6 | ||
Year five | 2 | 2 | 1 | ||
Prior to year five | 0 | 0 | 3 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 32 | 32 | 21 | ||
Commercial | Leases | Substandard | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 3 | 3 | 0 | ||
Year two | 15 | 15 | 4 | ||
Year three | 13 | 13 | 3 | ||
Year four | 6 | 6 | 3 | ||
Year five | 5 | 5 | 0 | ||
Prior to year five | 3 | 3 | 0 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 45 | 45 | 10 | ||
Commercial | Leases | Doubtful | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 0 | 0 | 0 | ||
Year two | 0 | 0 | 0 | ||
Year three | 3 | 3 | 0 | ||
Year four | 0 | 0 | 0 | ||
Year five | 0 | 0 | 0 | ||
Prior to year five | 0 | 0 | 0 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 3 | 3 | 0 | ||
Retail | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 3,748 | 3,748 | 11,158 | ||
Year two | 10,592 | 10,592 | 18,251 | ||
Year three | 16,116 | 16,116 | 11,083 | ||
Year four | 9,578 | 9,578 | 5,223 | ||
Year five | 4,334 | 4,334 | 2,457 | ||
Prior to year five | 10,120 | 10,120 | 9,401 | ||
Within the Revolving Period | 16,755 | 16,755 | 15,803 | ||
Converted to Term | 1,046 | 1,046 | 1,106 | ||
Total | 72,289 | 72,289 | 74,482 | ||
Gross charge-offs | |||||
Year one | 36 | ||||
Year two | 49 | ||||
Year three | 50 | ||||
Year four | 33 | ||||
Year five | 28 | ||||
Prior to year five | 53 | ||||
Within the Revolving Period | 90 | ||||
Converted to Term | 0 | ||||
Total | 117 | $ 94 | 339 | $ 259 | |
Retail | Residential mortgages | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 1,927 | 1,927 | 5,421 | ||
Year two | 5,801 | 5,801 | 9,071 | ||
Year three | 8,852 | 8,852 | 5,519 | ||
Year four | 5,251 | 5,251 | 2,432 | ||
Year five | 2,313 | 2,313 | 1,017 | ||
Prior to year five | 6,839 | 6,839 | 6,461 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 30,983 | 30,983 | 29,921 | ||
Gross charge-offs | |||||
Year one | 0 | ||||
Year two | 0 | ||||
Year three | 0 | ||||
Year four | 0 | ||||
Year five | 1 | ||||
Prior to year five | 2 | ||||
Within the Revolving Period | 0 | ||||
Converted to Term | 0 | ||||
Total | 3 | ||||
Retail | Home equity | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 0 | 0 | 7 | ||
Year two | 8 | 8 | 9 | ||
Year three | 9 | 9 | 8 | ||
Year four | 9 | 9 | 36 | ||
Year five | 32 | 32 | 57 | ||
Prior to year five | 450 | 450 | 496 | ||
Within the Revolving Period | 13,183 | 13,183 | 12,340 | ||
Converted to Term | 1,038 | 1,038 | 1,090 | ||
Total | 14,729 | 14,729 | 14,043 | ||
Gross charge-offs | |||||
Year one | 0 | ||||
Year two | 0 | ||||
Year three | 0 | ||||
Year four | 0 | ||||
Year five | 0 | ||||
Prior to year five | 2 | ||||
Within the Revolving Period | 6 | ||||
Converted to Term | 0 | ||||
Total | 8 | ||||
Retail | Automobile | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 541 | 541 | 3,276 | ||
Year two | 2,554 | 2,554 | 5,141 | ||
Year three | 3,828 | 3,828 | 2,028 | ||
Year four | 1,389 | 1,389 | 1,160 | ||
Year five | 700 | 700 | 474 | ||
Prior to year five | 278 | 278 | 213 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 9,290 | 9,290 | 12,292 | ||
Gross charge-offs | |||||
Year one | 0 | ||||
Year two | 24 | ||||
Year three | 31 | ||||
Year four | 11 | ||||
Year five | 9 | ||||
Prior to year five | 7 | ||||
Within the Revolving Period | 0 | ||||
Converted to Term | 0 | ||||
Total | 82 | ||||
Retail | Education | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 723 | 723 | 1,712 | ||
Year two | 1,779 | 1,779 | 3,586 | ||
Year three | 3,220 | 3,220 | 3,131 | ||
Year four | 2,731 | 2,731 | 1,400 | ||
Year five | 1,200 | 1,200 | 820 | ||
Prior to year five | 2,481 | 2,481 | 2,159 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 12,134 | 12,134 | 12,808 | ||
Gross charge-offs | |||||
Year one | 0 | ||||
Year two | 3 | ||||
Year three | 12 | ||||
Year four | 16 | ||||
Year five | 10 | ||||
Prior to year five | 35 | ||||
Within the Revolving Period | 0 | ||||
Converted to Term | 0 | ||||
Total | 76 | ||||
Retail | Other retail | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 557 | 557 | 742 | ||
Year two | 450 | 450 | 444 | ||
Year three | 207 | 207 | 397 | ||
Year four | 198 | 198 | 195 | ||
Year five | 89 | 89 | 89 | ||
Prior to year five | 72 | 72 | 72 | ||
Within the Revolving Period | 3,572 | 3,572 | 3,463 | ||
Converted to Term | 8 | 8 | 16 | ||
Total | 5,153 | 5,153 | 5,418 | ||
Gross charge-offs | |||||
Year one | 36 | ||||
Year two | 22 | ||||
Year three | 7 | ||||
Year four | 6 | ||||
Year five | 8 | ||||
Prior to year five | 7 | ||||
Within the Revolving Period | 84 | ||||
Converted to Term | 0 | ||||
Total | 170 | ||||
Greater than 800 | Retail | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 1,084 | 1,084 | 3,516 | ||
Year two | 4,355 | 4,355 | 8,226 | ||
Year three | 8,055 | 8,055 | 5,389 | ||
Year four | 5,043 | 5,043 | 2,251 | ||
Year five | 1,991 | 1,991 | 924 | ||
Prior to year five | 4,667 | 4,667 | 4,340 | ||
Within the Revolving Period | 5,584 | 5,584 | 5,449 | ||
Converted to Term | 236 | 236 | 267 | ||
Total | 31,015 | 31,015 | 30,362 | ||
Greater than 800 | Retail | Residential mortgages | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 620 | 620 | 2,132 | ||
Year two | 2,988 | 2,988 | 4,943 | ||
Year three | 5,167 | 5,167 | 3,143 | ||
Year four | 3,115 | 3,115 | 1,180 | ||
Year five | 1,141 | 1,141 | 363 | ||
Prior to year five | 3,233 | 3,233 | 3,081 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 16,264 | 16,264 | 14,842 | ||
Greater than 800 | Retail | Home equity | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 0 | 0 | 4 | ||
Year two | 4 | 4 | 5 | ||
Year three | 4 | 4 | 2 | ||
Year four | 2 | 2 | 5 | ||
Year five | 5 | 5 | 6 | ||
Prior to year five | 95 | 95 | 110 | ||
Within the Revolving Period | 5,084 | 5,084 | 4,958 | ||
Converted to Term | 236 | 236 | 267 | ||
Total | 5,430 | 5,430 | 5,357 | ||
Greater than 800 | Retail | Automobile | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 85 | 85 | 650 | ||
Year two | 573 | 573 | 1,453 | ||
Year three | 1,165 | 1,165 | 584 | ||
Year four | 421 | 421 | 324 | ||
Year five | 198 | 198 | 120 | ||
Prior to year five | 68 | 68 | 54 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 2,510 | 2,510 | 3,185 | ||
Greater than 800 | Retail | Education | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 254 | 254 | 548 | ||
Year two | 674 | 674 | 1,720 | ||
Year three | 1,670 | 1,670 | 1,567 | ||
Year four | 1,460 | 1,460 | 694 | ||
Year five | 625 | 625 | 410 | ||
Prior to year five | 1,247 | 1,247 | 1,068 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 5,930 | 5,930 | 6,007 | ||
Greater than 800 | Retail | Other retail | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 125 | 125 | 182 | ||
Year two | 116 | 116 | 105 | ||
Year three | 49 | 49 | 93 | ||
Year four | 45 | 45 | 48 | ||
Year five | 22 | 22 | 25 | ||
Prior to year five | 24 | 24 | 27 | ||
Within the Revolving Period | 500 | 500 | 491 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 881 | 881 | 971 | ||
740-799 | Retail | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 1,606 | 1,606 | 4,305 | ||
Year two | 3,580 | 3,580 | 6,084 | ||
Year three | 4,978 | 4,978 | 3,557 | ||
Year four | 2,889 | 2,889 | 1,539 | ||
Year five | 1,243 | 1,243 | 695 | ||
Prior to year five | 2,604 | 2,604 | 2,422 | ||
Within the Revolving Period | 5,537 | 5,537 | 5,324 | ||
Converted to Term | 250 | 250 | 275 | ||
Total | 22,687 | 22,687 | 24,201 | ||
740-799 | Retail | Residential mortgages | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 987 | 987 | 2,376 | ||
Year two | 1,990 | 1,990 | 2,991 | ||
Year three | 2,645 | 2,645 | 1,660 | ||
Year four | 1,487 | 1,487 | 638 | ||
Year five | 618 | 618 | 257 | ||
Prior to year five | 1,699 | 1,699 | 1,635 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 9,426 | 9,426 | 9,557 | ||
740-799 | Retail | Home equity | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 0 | 0 | 2 | ||
Year two | 2 | 2 | 2 | ||
Year three | 2 | 2 | 1 | ||
Year four | 1 | 1 | 4 | ||
Year five | 4 | 4 | 6 | ||
Prior to year five | 89 | 89 | 97 | ||
Within the Revolving Period | 4,539 | 4,539 | 4,350 | ||
Converted to Term | 249 | 249 | 274 | ||
Total | 4,886 | 4,886 | 4,736 | ||
740-799 | Retail | Automobile | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 146 | 146 | 962 | ||
Year two | 740 | 740 | 1,606 | ||
Year three | 1,164 | 1,164 | 649 | ||
Year four | 433 | 433 | 343 | ||
Year five | 203 | 203 | 134 | ||
Prior to year five | 74 | 74 | 56 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 2,760 | 2,760 | 3,750 | ||
740-799 | Retail | Education | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 304 | 304 | 735 | ||
Year two | 717 | 717 | 1,351 | ||
Year three | 1,108 | 1,108 | 1,126 | ||
Year four | 908 | 908 | 486 | ||
Year five | 389 | 389 | 267 | ||
Prior to year five | 717 | 717 | 609 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 4,143 | 4,143 | 4,574 | ||
740-799 | Retail | Other retail | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 169 | 169 | 230 | ||
Year two | 131 | 131 | 134 | ||
Year three | 59 | 59 | 121 | ||
Year four | 60 | 60 | 68 | ||
Year five | 29 | 29 | 31 | ||
Prior to year five | 25 | 25 | 25 | ||
Within the Revolving Period | 998 | 998 | 974 | ||
Converted to Term | 1 | 1 | 1 | ||
Total | 1,472 | 1,472 | 1,584 | ||
680-739 | Retail | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 704 | 704 | 2,228 | ||
Year two | 1,708 | 1,708 | 2,619 | ||
Year three | 1,980 | 1,980 | 1,422 | ||
Year four | 1,087 | 1,087 | 790 | ||
Year five | 588 | 588 | 386 | ||
Prior to year five | 1,339 | 1,339 | 1,311 | ||
Within the Revolving Period | 3,589 | 3,589 | 3,289 | ||
Converted to Term | 209 | 209 | 238 | ||
Total | 11,204 | 11,204 | 12,283 | ||
680-739 | Retail | Residential mortgages | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 272 | 272 | 769 | ||
Year two | 652 | 652 | 899 | ||
Year three | 771 | 771 | 502 | ||
Year four | 458 | 458 | 308 | ||
Year five | 277 | 277 | 149 | ||
Prior to year five | 855 | 855 | 851 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 3,285 | 3,285 | 3,478 | ||
680-739 | Retail | Home equity | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 0 | 0 | 1 | ||
Year two | 0 | 0 | 1 | ||
Year three | 1 | 1 | 1 | ||
Year four | 2 | 2 | 6 | ||
Year five | 4 | 4 | 11 | ||
Prior to year five | 98 | 98 | 114 | ||
Within the Revolving Period | 2,569 | 2,569 | 2,296 | ||
Converted to Term | 207 | 207 | 234 | ||
Total | 2,881 | 2,881 | 2,664 | ||
680-739 | Retail | Automobile | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 163 | 163 | 920 | ||
Year two | 647 | 647 | 1,187 | ||
Year three | 808 | 808 | 460 | ||
Year four | 295 | 295 | 254 | ||
Year five | 145 | 145 | 102 | ||
Prior to year five | 57 | 57 | 44 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 2,115 | 2,115 | 2,967 | ||
680-739 | Retail | Education | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 123 | 123 | 363 | ||
Year two | 308 | 308 | 423 | ||
Year three | 350 | 350 | 356 | ||
Year four | 282 | 282 | 170 | ||
Year five | 137 | 137 | 103 | ||
Prior to year five | 314 | 314 | 288 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 1,514 | 1,514 | 1,703 | ||
680-739 | Retail | Other retail | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 146 | 146 | 175 | ||
Year two | 101 | 101 | 109 | ||
Year three | 50 | 50 | 103 | ||
Year four | 50 | 50 | 52 | ||
Year five | 25 | 25 | 21 | ||
Prior to year five | 15 | 15 | 14 | ||
Within the Revolving Period | 1,020 | 1,020 | 993 | ||
Converted to Term | 2 | 2 | 4 | ||
Total | 1,409 | 1,409 | 1,471 | ||
620-679 | Retail | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 254 | 254 | 841 | ||
Year two | 621 | 621 | 896 | ||
Year three | 651 | 651 | 456 | ||
Year four | 310 | 310 | 336 | ||
Year five | 237 | 237 | 214 | ||
Prior to year five | 695 | 695 | 649 | ||
Within the Revolving Period | 1,129 | 1,129 | 993 | ||
Converted to Term | 136 | 136 | 147 | ||
Total | 4,033 | 4,033 | 4,532 | ||
620-679 | Retail | Residential mortgages | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 44 | 44 | 125 | ||
Year two | 133 | 133 | 168 | ||
Year three | 164 | 164 | 135 | ||
Year four | 96 | 96 | 138 | ||
Year five | 108 | 108 | 99 | ||
Prior to year five | 459 | 459 | 422 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 1,004 | 1,004 | 1,087 | ||
620-679 | Retail | Home equity | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 0 | 0 | 0 | ||
Year two | 1 | 1 | 1 | ||
Year three | 1 | 1 | 2 | ||
Year four | 2 | 2 | 9 | ||
Year five | 9 | 9 | 16 | ||
Prior to year five | 83 | 83 | 93 | ||
Within the Revolving Period | 688 | 688 | 558 | ||
Converted to Term | 134 | 134 | 143 | ||
Total | 918 | 918 | 822 | ||
620-679 | Retail | Automobile | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 107 | 107 | 554 | ||
Year two | 362 | 362 | 586 | ||
Year three | 389 | 389 | 205 | ||
Year four | 130 | 130 | 133 | ||
Year five | 78 | 78 | 62 | ||
Prior to year five | 37 | 37 | 28 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 1,103 | 1,103 | 1,568 | ||
620-679 | Retail | Education | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 21 | 21 | 54 | ||
Year two | 64 | 64 | 76 | ||
Year three | 68 | 68 | 62 | ||
Year four | 57 | 57 | 38 | ||
Year five | 34 | 34 | 29 | ||
Prior to year five | 111 | 111 | 102 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 355 | 355 | 361 | ||
620-679 | Retail | Other retail | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 82 | 82 | 108 | ||
Year two | 61 | 61 | 65 | ||
Year three | 29 | 29 | 52 | ||
Year four | 25 | 25 | 18 | ||
Year five | 8 | 8 | 8 | ||
Prior to year five | 5 | 5 | 4 | ||
Within the Revolving Period | 441 | 441 | 435 | ||
Converted to Term | 2 | 2 | 4 | ||
Total | 653 | 653 | 694 | ||
Less than 620 | Retail | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 62 | 62 | 246 | ||
Year two | 325 | 325 | 423 | ||
Year three | 450 | 450 | 254 | ||
Year four | 246 | 246 | 304 | ||
Year five | 272 | 272 | 236 | ||
Prior to year five | 763 | 763 | 620 | ||
Within the Revolving Period | 549 | 549 | 368 | ||
Converted to Term | 215 | 215 | 178 | ||
Total | 2,882 | 2,882 | 2,629 | ||
Less than 620 | Retail | Residential mortgages | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 4 | 4 | 17 | ||
Year two | 38 | 38 | 68 | ||
Year three | 103 | 103 | 77 | ||
Year four | 94 | 94 | 165 | ||
Year five | 166 | 166 | 147 | ||
Prior to year five | 578 | 578 | 455 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 983 | 983 | 929 | ||
Less than 620 | Retail | Home equity | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 0 | 0 | 0 | ||
Year two | 1 | 1 | 0 | ||
Year three | 1 | 1 | 2 | ||
Year four | 2 | 2 | 12 | ||
Year five | 10 | 10 | 18 | ||
Prior to year five | 85 | 85 | 82 | ||
Within the Revolving Period | 303 | 303 | 178 | ||
Converted to Term | 212 | 212 | 172 | ||
Total | 614 | 614 | 464 | ||
Less than 620 | Retail | Automobile | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 40 | 40 | 188 | ||
Year two | 232 | 232 | 309 | ||
Year three | 302 | 302 | 130 | ||
Year four | 110 | 110 | 106 | ||
Year five | 76 | 76 | 56 | ||
Prior to year five | 42 | 42 | 31 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 802 | 802 | 820 | ||
Less than 620 | Retail | Education | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 3 | 3 | 6 | ||
Year two | 16 | 16 | 16 | ||
Year three | 24 | 24 | 20 | ||
Year four | 24 | 24 | 12 | ||
Year five | 15 | 15 | 11 | ||
Prior to year five | 55 | 55 | 50 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 137 | 137 | 115 | ||
Less than 620 | Retail | Other retail | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 15 | 15 | 35 | ||
Year two | 38 | 38 | 30 | ||
Year three | 20 | 20 | 25 | ||
Year four | 16 | 16 | 9 | ||
Year five | 5 | 5 | 4 | ||
Prior to year five | 3 | 3 | 2 | ||
Within the Revolving Period | 246 | 246 | 190 | ||
Converted to Term | 3 | 3 | 6 | ||
Total | 346 | 346 | 301 | ||
No FICO available | Retail | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 38 | 38 | 22 | ||
Year two | 3 | 3 | 3 | ||
Year three | 2 | 2 | 5 | ||
Year four | 3 | 3 | 3 | ||
Year five | 3 | 3 | 2 | ||
Prior to year five | 52 | 52 | 59 | ||
Within the Revolving Period | 367 | 367 | 380 | ||
Converted to Term | 0 | 0 | 1 | ||
Total | 468 | 468 | 475 | ||
No FICO available | Retail | Residential mortgages | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 0 | 0 | 2 | ||
Year two | 0 | 0 | 2 | ||
Year three | 2 | 2 | 2 | ||
Year four | 1 | 1 | 3 | ||
Year five | 3 | 3 | 2 | ||
Prior to year five | 15 | 15 | 17 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 21 | 21 | 28 | ||
No FICO available | Retail | Automobile | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 2 | ||||
Year two | 0 | ||||
Year three | 0 | ||||
Year four | 0 | ||||
Year five | 0 | ||||
Prior to year five | 0 | ||||
Within the Revolving Period | 0 | ||||
Converted to Term | 0 | ||||
Total | 2 | ||||
No FICO available | Retail | Education | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 18 | 18 | 6 | ||
Year two | 0 | 0 | 0 | ||
Year three | 0 | 0 | 0 | ||
Year four | 0 | 0 | 0 | ||
Year five | 0 | 0 | 0 | ||
Prior to year five | 37 | 37 | 42 | ||
Within the Revolving Period | 0 | 0 | 0 | ||
Converted to Term | 0 | 0 | 0 | ||
Total | 55 | 55 | 48 | ||
No FICO available | Retail | Other retail | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Year one | 20 | 20 | 12 | ||
Year two | 3 | 3 | 1 | ||
Year three | 0 | 0 | 3 | ||
Year four | 2 | 2 | 0 | ||
Year five | 0 | 0 | 0 | ||
Prior to year five | 0 | 0 | 0 | ||
Within the Revolving Period | 367 | 367 | 380 | ||
Converted to Term | 0 | 0 | 1 | ||
Total | $ 392 | $ 392 | $ 397 |
CREDIT QUALITY AND THE ALLOWA_6
CREDIT QUALITY AND THE ALLOWANCE FOR CREDIT LOSSES - Accruing and Nonaccruing Past Due Amounts (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | $ 149,746 | $ 156,662 |
Loans and leases, nonaccrual | 1,296 | 944 |
Loans and leases, nonaccrual with no related ACL | 428 | 456 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 147,433 | 154,527 |
30-59 | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 533 | 598 |
60-89 | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 236 | 226 |
90+ | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 248 | 367 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 77,457 | 82,180 |
Loans and leases, nonaccrual | 715 | 352 |
Loans and leases, nonaccrual with no related ACL | 91 | 71 |
Commercial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 46,753 | 51,836 |
Loans and leases, nonaccrual | 242 | 249 |
Loans and leases, nonaccrual with no related ACL | 43 | 64 |
Commercial | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 29,486 | 28,865 |
Loans and leases, nonaccrual | 470 | 103 |
Loans and leases, nonaccrual with no related ACL | 48 | 7 |
Commercial | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 1,218 | 1,479 |
Loans and leases, nonaccrual | 3 | 0 |
Loans and leases, nonaccrual with no related ACL | 0 | 0 |
Commercial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 76,586 | 81,529 |
Commercial | Current | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 46,475 | 51,389 |
Commercial | Current | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 28,896 | 28,665 |
Commercial | Current | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 1,215 | 1,475 |
Commercial | 30-59 | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 98 | 207 |
Commercial | 30-59 | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 23 | 152 |
Commercial | 30-59 | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 75 | 51 |
Commercial | 30-59 | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 0 | 4 |
Commercial | 60-89 | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 51 | 70 |
Commercial | 60-89 | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 9 | 25 |
Commercial | 60-89 | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 42 | 45 |
Commercial | 60-89 | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 0 | 0 |
Commercial | 90+ | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 7 | 22 |
Commercial | 90+ | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 4 | 21 |
Commercial | 90+ | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 3 | 1 |
Commercial | 90+ | Leases | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 0 | 0 |
Retail | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 72,289 | 74,482 |
Loans and leases, nonaccrual | 581 | 592 |
Loans and leases, nonaccrual with no related ACL | 337 | 385 |
Retail | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 30,983 | 29,921 |
Loans and leases, nonaccrual | 190 | 234 |
Loans and leases, nonaccrual with no related ACL | 149 | 187 |
Retail | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 14,729 | 14,043 |
Loans and leases, nonaccrual | 268 | 241 |
Loans and leases, nonaccrual with no related ACL | 179 | 185 |
Retail | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 9,290 | 12,292 |
Loans and leases, nonaccrual | 62 | 56 |
Loans and leases, nonaccrual with no related ACL | 7 | 9 |
Retail | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 12,134 | 12,808 |
Loans and leases, nonaccrual | 23 | 33 |
Loans and leases, nonaccrual with no related ACL | 2 | 3 |
Retail | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 5,153 | 5,418 |
Loans and leases, nonaccrual | 38 | 28 |
Loans and leases, nonaccrual with no related ACL | 0 | 1 |
Retail | FHA, VA And USDA Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases, 90 days or more past due and still accruing | 216 | 316 |
Retail | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 70,847 | 72,998 |
Retail | Current | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 30,416 | 29,228 |
Retail | Current | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 14,351 | 13,719 |
Retail | Current | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 9,031 | 12,039 |
Retail | Current | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 12,035 | 12,718 |
Retail | Current | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 5,014 | 5,294 |
Retail | 30-59 | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 435 | 391 |
Retail | 30-59 | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 110 | 95 |
Retail | 30-59 | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 82 | 64 |
Retail | 30-59 | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 147 | 152 |
Retail | 30-59 | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 47 | 36 |
Retail | 30-59 | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 49 | 44 |
Retail | 60-89 | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 185 | 156 |
Retail | 60-89 | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 50 | 45 |
Retail | 60-89 | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 28 | 19 |
Retail | 60-89 | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 50 | 45 |
Retail | 60-89 | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 26 | 17 |
Retail | 60-89 | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 31 | 30 |
Retail | 90+ | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 241 | 345 |
Retail | 90+ | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 217 | 319 |
Retail | 90+ | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 0 | 0 |
Retail | 90+ | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 0 | 0 |
Retail | 90+ | Education | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | 3 | 4 |
Retail | 90+ | Other retail | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and leases | $ 21 | $ 22 |
CREDIT QUALITY AND THE ALLOWA_7
CREDIT QUALITY AND THE ALLOWANCE FOR CREDIT LOSSES - Modified (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | $ 408,000,000 | $ 944,000,000 |
Total as a % of Loan Class | 0.27% | 0.63% |
Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | $ 593,000,000 | |
30-59 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 56,000,000 | |
60-89 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 5,000,000 | |
90+ | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 13,000,000 | |
Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 277,000,000 | |
Unfunded loan commitment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 146,000,000 | |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | $ 365,000,000 | $ 836,000,000 |
Total as a % of Loan Class | 0.47% | 1.08% |
Commercial | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | $ 524,000,000 | |
Commercial | 30-59 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 55,000,000 | |
Commercial | 60-89 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Commercial | 90+ | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Commercial | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 257,000,000 | |
Commercial | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | $ 196,000,000 | $ 344,000,000 |
Total as a % of Loan Class | 0.42% | 0.74% |
Weighted-Average Interest Rate Reduction | 2.32% | 2.95% |
Weighted-Average Term Extension (in Months) | 17 months | 14 months |
Weighted-Average Payment Deferral | $ 427,833 | $ 562,909 |
Commercial | Commercial and industrial | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 262,000,000 | |
Commercial | Commercial and industrial | 30-59 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Commercial | Commercial and industrial | 60-89 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Commercial | Commercial and industrial | 90+ | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Commercial | Commercial and industrial | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 82,000,000 | |
Commercial | Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | $ 169,000,000 | $ 492,000,000 |
Total as a % of Loan Class | 0.57% | 1.67% |
Weighted-Average Interest Rate Reduction | 1.25% | 1.25% |
Weighted-Average Term Extension (in Months) | 7 months | 8 months |
Weighted-Average Payment Deferral | $ 77,482 | $ 47,172 |
Commercial | Commercial real estate | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 262,000,000 | |
Commercial | Commercial real estate | 30-59 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 55,000,000 | |
Commercial | Commercial real estate | 60-89 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Commercial | Commercial real estate | 90+ | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Commercial | Commercial real estate | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 175,000,000 | |
Retail | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | $ 43,000,000 | $ 108,000,000 |
Total as a % of Loan Class | 0.06% | 0.15% |
Retail | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | $ 69,000,000 | |
Retail | 30-59 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 1,000,000 | |
Retail | 60-89 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 5,000,000 | |
Retail | 90+ | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 13,000,000 | |
Retail | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 20,000,000 | |
Retail | Residential mortgages | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | $ 33,000,000 | $ 81,000,000 |
Total as a % of Loan Class | 0.11% | 0.26% |
Weighted-Average Interest Rate Reduction | 0.98% | 1.55% |
Weighted-Average Term Extension (in Months) | 47 months | 48 months |
Weighted-Average Payment Deferral | $ 0 | $ 0 |
Retail | Residential mortgages | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 52,000,000 | |
Retail | Residential mortgages | 30-59 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Retail | Residential mortgages | 60-89 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 5,000,000 | |
Retail | Residential mortgages | 90+ | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 13,000,000 | |
Retail | Residential mortgages | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 11,000,000 | |
Retail | Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | $ 3,000,000 | $ 10,000,000 |
Total as a % of Loan Class | 0.02% | 0.07% |
Weighted-Average Interest Rate Reduction | 2.51% | 2.24% |
Weighted-Average Term Extension (in Months) | 133 months | 127 months |
Weighted-Average Payment Deferral | $ 0 | $ 2,343 |
Retail | Home equity | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 3,000,000 | |
Retail | Home equity | 30-59 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Retail | Home equity | 60-89 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Retail | Home equity | 90+ | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Retail | Home equity | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 7,000,000 | |
Retail | Automobile | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Total as a % of Loan Class | 0% | 0% |
Weighted-Average Interest Rate Reduction | 0% | 3.47% |
Weighted-Average Term Extension (in Months) | 20 months | |
Weighted-Average Payment Deferral | $ 0 | $ 1,253 |
Retail | Automobile | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Retail | Automobile | 30-59 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Retail | Automobile | 60-89 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Retail | Automobile | 90+ | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Retail | Automobile | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Retail | Education | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | $ 4,000,000 | $ 9,000,000 |
Total as a % of Loan Class | 0.03% | 0.07% |
Weighted-Average Interest Rate Reduction | 4.95% | 4.97% |
Weighted-Average Term Extension (in Months) | 0 months | 0 months |
Weighted-Average Payment Deferral | $ 4,972 | $ 4,171 |
Retail | Education | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 8,000,000 | |
Retail | Education | 30-59 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Retail | Education | 60-89 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Retail | Education | 90+ | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Retail | Education | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 1,000,000 | |
Retail | Other retail | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | $ 3,000,000 | $ 8,000,000 |
Total as a % of Loan Class | 0.06% | 0.16% |
Weighted-Average Interest Rate Reduction | 18.86% | 18.45% |
Weighted-Average Term Extension (in Months) | 0 months | 0 months |
Weighted-Average Payment Deferral | $ 0 | $ 0 |
Retail | Other retail | Current | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 6,000,000 | |
Retail | Other retail | 30-59 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 1,000,000 | |
Retail | Other retail | 60-89 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Retail | Other retail | 90+ | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | |
Retail | Other retail | Nonaccrual | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 1,000,000 | |
Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 9,000,000 | 22,000,000 |
Interest Rate Reduction | Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Interest Rate Reduction | Commercial | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Interest Rate Reduction | Commercial | Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Interest Rate Reduction | Retail | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 9,000,000 | 22,000,000 |
Interest Rate Reduction | Retail | Residential mortgages | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 2,000,000 | 6,000,000 |
Interest Rate Reduction | Retail | Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 1,000,000 | 1,000,000 |
Interest Rate Reduction | Retail | Automobile | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Interest Rate Reduction | Retail | Education | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 3,000,000 | 7,000,000 |
Interest Rate Reduction | Retail | Other retail | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 3,000,000 | 8,000,000 |
Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 305,000,000 | 780,000,000 |
Term Extension | Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 279,000,000 | 717,000,000 |
Term Extension | Commercial | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 148,000,000 | 263,000,000 |
Term Extension | Commercial | Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 131,000,000 | 454,000,000 |
Term Extension | Retail | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 26,000,000 | 63,000,000 |
Term Extension | Retail | Residential mortgages | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 25,000,000 | 59,000,000 |
Term Extension | Retail | Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 1,000,000 | 4,000,000 |
Term Extension | Retail | Automobile | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Term Extension | Retail | Education | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Term Extension | Retail | Other retail | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Payment Delay | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 48,000,000 | 80,000,000 |
Payment Delay | Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 47,000,000 | 78,000,000 |
Payment Delay | Commercial | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 47,000,000 | 78,000,000 |
Payment Delay | Commercial | Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Payment Delay | Retail | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 1,000,000 | 2,000,000 |
Payment Delay | Retail | Residential mortgages | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Payment Delay | Retail | Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Payment Delay | Retail | Automobile | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Payment Delay | Retail | Education | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 1,000,000 | 2,000,000 |
Payment Delay | Retail | Other retail | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Principal Forgiveness | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Principal Forgiveness | Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Principal Forgiveness | Commercial | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Amount of Principal Forgiven | 0 | 0 |
Principal Forgiveness | Commercial | Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Amount of Principal Forgiven | 0 | 0 |
Principal Forgiveness | Retail | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Principal Forgiveness | Retail | Residential mortgages | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Amount of Principal Forgiven | 0 | 0 |
Principal Forgiveness | Retail | Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Amount of Principal Forgiven | 0 | 0 |
Principal Forgiveness | Retail | Automobile | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Amount of Principal Forgiven | 0 | 0 |
Principal Forgiveness | Retail | Education | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Amount of Principal Forgiven | 0 | 0 |
Principal Forgiveness | Retail | Other retail | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Amount of Principal Forgiven | 1,000,000 | 4,000,000 |
Interest Rate Reduction and Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 44,000,000 | 59,000,000 |
Interest Rate Reduction and Term Extension | Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 37,000,000 | 38,000,000 |
Interest Rate Reduction and Term Extension | Commercial | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 1,000,000 |
Interest Rate Reduction and Term Extension | Commercial | Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 37,000,000 | 37,000,000 |
Interest Rate Reduction and Term Extension | Retail | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 7,000,000 | 21,000,000 |
Interest Rate Reduction and Term Extension | Retail | Residential mortgages | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 6,000,000 | 16,000,000 |
Interest Rate Reduction and Term Extension | Retail | Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 1,000,000 | 5,000,000 |
Interest Rate Reduction and Term Extension | Retail | Automobile | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Interest Rate Reduction and Term Extension | Retail | Education | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Interest Rate Reduction and Term Extension | Retail | Other retail | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Term Extension and Payment Delay | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 2,000,000 | 3,000,000 |
Term Extension and Payment Delay | Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 2,000,000 | 3,000,000 |
Term Extension and Payment Delay | Commercial | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 1,000,000 | 2,000,000 |
Term Extension and Payment Delay | Commercial | Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 1,000,000 | 1,000,000 |
Term Extension and Payment Delay | Retail | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Term Extension and Payment Delay | Retail | Residential mortgages | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Term Extension and Payment Delay | Retail | Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Term Extension and Payment Delay | Retail | Automobile | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Term Extension and Payment Delay | Retail | Education | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | 0 | 0 |
Term Extension and Payment Delay | Retail | Other retail | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
CREDIT QUALITY AND THE ALLOWA_8
CREDIT QUALITY AND THE ALLOWANCE FOR CREDIT LOSSES - Troubled Debt Restructurings, Modified Default (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | $ 57 | $ 28 | $ 86 | $ 224 |
Interest Rate Reduction | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 1 | 1 | ||
Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 48 | 77 | ||
Payment Delay | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 1 | 1 | ||
Interest Rate Reduction and Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 7 | 7 | ||
Commercial | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 41 | 70 | ||
Commercial | Interest Rate Reduction | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Commercial | Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 41 | 70 | ||
Commercial | Payment Delay | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Commercial | Interest Rate Reduction and Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Commercial | Commercial and industrial | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | 3 | 0 |
Commercial | Commercial and industrial | Interest Rate Reduction | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Commercial | Commercial and industrial | Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 3 | ||
Commercial | Commercial and industrial | Payment Delay | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Commercial | Commercial and industrial | Interest Rate Reduction and Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Commercial | Commercial real estate | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 41 | 67 | ||
Commercial | Commercial real estate | Interest Rate Reduction | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Commercial | Commercial real estate | Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 41 | 67 | ||
Commercial | Commercial real estate | Payment Delay | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Commercial | Commercial real estate | Interest Rate Reduction and Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Retail | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 16 | 16 | ||
Retail | Interest Rate Reduction | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 1 | 1 | ||
Retail | Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 7 | 7 | ||
Retail | Payment Delay | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 1 | 1 | ||
Retail | Interest Rate Reduction and Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 7 | 7 | ||
Retail | Residential mortgages | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 12 | $ 28 | 12 | $ 224 |
Retail | Residential mortgages | Interest Rate Reduction | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 1 | 1 | ||
Retail | Residential mortgages | Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 6 | 6 | ||
Retail | Residential mortgages | Payment Delay | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Retail | Residential mortgages | Interest Rate Reduction and Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 5 | 5 | ||
Retail | Home equity | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 3 | 3 | ||
Retail | Home equity | Interest Rate Reduction | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Retail | Home equity | Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 1 | 1 | ||
Retail | Home equity | Payment Delay | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Retail | Home equity | Interest Rate Reduction and Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 2 | 2 | ||
Retail | Automobile | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Retail | Automobile | Interest Rate Reduction | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Retail | Automobile | Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Retail | Automobile | Payment Delay | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Retail | Automobile | Interest Rate Reduction and Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Retail | Education | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 1 | 1 | ||
Retail | Education | Interest Rate Reduction | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Retail | Education | Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Retail | Education | Payment Delay | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 1 | 1 | ||
Retail | Education | Interest Rate Reduction and Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Retail | Other retail | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Retail | Other retail | Interest Rate Reduction | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Retail | Other retail | Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Retail | Other retail | Payment Delay | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | 0 | 0 | ||
Retail | Other retail | Interest Rate Reduction and Term Extension | ||||
Financing Receivable, Modified, Subsequent Default [Line Items] | ||||
Amortized cost basis of modified loans that are in subsequent default | $ 0 | $ 0 |
CREDIT QUALITY AND THE ALLOWA_9
CREDIT QUALITY AND THE ALLOWANCE FOR CREDIT LOSSES - Troubled Debt Restructuring Activity (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) contract | Sep. 30, 2022 USD ($) contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 1,229 | 4,605 |
Amortized Cost Basis | $ 103 | $ 524 |
Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 10 | 56 |
Maturity Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 23 | 101 |
Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | $ 70 | $ 367 |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 6 | 25 |
Amortized Cost Basis | $ 48 | $ 106 |
Commercial | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 0 | 0 |
Commercial | Maturity Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 2 | 26 |
Commercial | Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | $ 46 | $ 80 |
Commercial | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 6 | 25 |
Amortized Cost Basis | $ 48 | $ 106 |
Commercial | Commercial and industrial | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 0 | 0 |
Commercial | Commercial and industrial | Maturity Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 2 | 26 |
Commercial | Commercial and industrial | Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | $ 46 | $ 80 |
Retail | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 1,223 | 4,580 |
Amortized Cost Basis | $ 55 | $ 418 |
Retail | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 10 | 56 |
Retail | Maturity Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 21 | 75 |
Retail | Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | $ 24 | $ 287 |
Retail | Residential mortgages | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 185 | 1,656 |
Amortized Cost Basis | $ 40 | $ 366 |
Retail | Residential mortgages | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 6 | 44 |
Retail | Residential mortgages | Maturity Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 21 | 74 |
Retail | Residential mortgages | Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | $ 13 | $ 248 |
Retail | Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 68 | 318 |
Amortized Cost Basis | $ 4 | $ 21 |
Retail | Home equity | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 2 | 4 |
Retail | Home equity | Maturity Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 0 | 1 |
Retail | Home equity | Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | $ 2 | $ 16 |
Retail | Automobile | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 135 | 447 |
Amortized Cost Basis | $ 1 | $ 4 |
Retail | Automobile | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 0 | 1 |
Retail | Automobile | Maturity Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 0 | 0 |
Retail | Automobile | Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | $ 1 | $ 3 |
Retail | Education | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 245 | 481 |
Amortized Cost Basis | $ 8 | $ 19 |
Retail | Education | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 0 | 0 |
Retail | Education | Maturity Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 0 | 0 |
Retail | Education | Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | $ 8 | $ 19 |
Retail | Other retail | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 590 | 1,678 |
Amortized Cost Basis | $ 2 | $ 8 |
Retail | Other retail | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 2 | 7 |
Retail | Other retail | Maturity Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | 0 | 0 |
Retail | Other retail | Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost Basis | $ 0 | $ 1 |
CREDIT QUALITY AND THE ALLOW_10
CREDIT QUALITY AND THE ALLOWANCE FOR CREDIT LOSSES - Troubled Debt Restructurings (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
TDR's that defaulted within 12 months of modification date | $ 57 | $ 28 | $ 86 | $ 224 |
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
TDR's that defaulted within 12 months of modification date | 41 | 70 | ||
Commercial | Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
TDR's that defaulted within 12 months of modification date | 0 | 0 | 3 | 0 |
Retail | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
TDR's that defaulted within 12 months of modification date | 16 | 16 | ||
Retail | Residential mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
TDR's that defaulted within 12 months of modification date | $ 12 | 28 | $ 12 | 224 |
Retail | Loans Insured or Guaranteed by US Government Authorities | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
TDR's that defaulted within 12 months of modification date | $ 18 | $ 174 |
MORTGAGE BANKING AND OTHER SE_3
MORTGAGE BANKING AND OTHER SERVICED LOANS - Residential Mortgage Loan Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Residential mortgages | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Cash Flows Between Transferor and Transferee, Proceeds from New Transfers | $ 3,270 | $ 3,518 | $ 7,358 | $ 14,676 |
Repurchased residential mortgages | 0 | 0 | 0 | 87 |
Mortgage banking fees | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Gain on sales | 19 | 21 | 60 | 74 |
Contractually specified servicing, late and other ancillary fees | $ 76 | $ 75 | $ 230 | $ 213 |
MORTGAGE BANKING AND OTHER SE_4
MORTGAGE BANKING AND OTHER SERVICED LOANS - Narrative (Details) - USD ($) $ in Billions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
MSR loans | $ 97.6 | $ 96.7 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Sensitivity analysis, basis spread | 10% | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Sensitivity analysis, basis spread | 20% |
MORTGAGE BANKING AND OTHER SE_5
MORTGAGE BANKING AND OTHER SERVICED LOANS - Changes Related to MSRs - Fair Value Method (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
MSRs | ||||
Fair value as of beginning of the period | $ 1,530 | |||
Fair value at end of the period | $ 1,620 | 1,620 | ||
Residential mortgages | ||||
MSRs | ||||
Fair value as of beginning of the period | 1,524 | $ 1,411 | 1,530 | $ 1,029 |
Amounts capitalized | 47 | 70 | 104 | 244 |
Servicing rights acquired | 0 | 0 | 0 | 16 |
Changes in unpaid principal balance during the period | (42) | (31) | (124) | (102) |
Changes in fair value during the period | 91 | 74 | 110 | 337 |
Fair value at end of the period | $ 1,620 | $ 1,524 | $ 1,620 | $ 1,524 |
MORTGAGE BANKING AND OTHER SE_6
MORTGAGE BANKING AND OTHER SERVICED LOANS - Economic Assumptions Used to Estimate Value of MSRs (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Fair value | $ 1,620 | $ 1,530 |
Weighted average life (years) | 9 years 1 month 6 days | 9 years 1 month 6 days |
Weighted average constant prepayment rate | 6.40% | 6.80% |
Weighted average option adjusted spread | 6.30% | 6.29% |
Minimum | ||
Servicing Assets at Fair Value [Line Items] | ||
Sensitivity analysis, basis spread | 10% | |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Decline in fair value from 10% adverse change | $ 35 | $ 34 |
Decline in fair value from 10% adverse change | $ 44 | 43 |
Maximum | ||
Servicing Assets at Fair Value [Line Items] | ||
Sensitivity analysis, basis spread | 20% | |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Decline in fair value from 20% adverse change | $ 67 | 66 |
Decline in fair value from 20% adverse change | $ 89 | $ 86 |
MORTGAGE BANKING AND OTHER SE_7
MORTGAGE BANKING AND OTHER SERVICED LOANS - Other Serviced Loans (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Education | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other serviced loans | $ 517 | $ 602 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other serviced loans | $ 94 | $ 91 |
GOODWILL - Narrative (Details)
GOODWILL - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Goodwill [Line Items] | |||||
Number of reporting units | segment | 2 | ||||
Goodwill impairment loss | $ 0 | ||||
Consumer Banking | |||||
Goodwill [Line Items] | |||||
Goodwill impairment loss | $ 0 | $ 0 | 0 | $ 0 | |
Goodwill accumulated impairment loss | 5,900,000,000 | 5,900,000,000 | $ 5,900,000,000 | ||
Commercial Banking | |||||
Goodwill [Line Items] | |||||
Goodwill impairment loss | 0 | $ 0 | 0 | $ 0 | |
Goodwill accumulated impairment loss | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 |
GOODWILL - Goodwill Rollforward
GOODWILL - Goodwill Rollforward (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 8,173 |
Business acquisitions | 15 |
Balance at end of period | 8,188 |
Consumer Banking | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 2,673 |
Business acquisitions | 5 |
Balance at end of period | 2,678 |
Commercial Banking | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 5,500 |
Business acquisitions | 10 |
Balance at end of period | $ 5,510 |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
ASSETS: | |||
Cash and due from banks | [1] | $ 1,395 | $ 1,489 |
Net loans and leases | [1] | 147,666 | 154,679 |
Other assets | [1] | 13,613 | 13,089 |
TOTAL ASSETS | 225,270 | 226,733 | |
LIABILITIES: | |||
Long-term borrowed funds | [1] | 17,354 | 15,887 |
Other liabilities | [1] | 4,500 | 4,520 |
TOTAL LIABILITIES | 202,392 | $ 203,043 | |
Variable Interest Entity, Primary Beneficiary | |||
ASSETS: | |||
Cash and due from banks | 196 | ||
Net loans and leases | 3,647 | ||
Other assets | 15 | ||
TOTAL ASSETS | 3,858 | ||
LIABILITIES: | |||
Long-term borrowed funds | 3,245 | ||
Other liabilities | 10 | ||
TOTAL LIABILITIES | $ 3,255 | ||
[1]Includes amounts in consolidated VIEs. See Note 7 for additional information. |
VARIABLE INTEREST ENTITIES - _2
VARIABLE INTEREST ENTITIES - Schedule of Unconsolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Variable Interest Entity | |||
Lending to special purpose entities included in loans and leases | [1] | $ 147,666 | $ 154,679 |
Investments included in other assets | [1] | 13,613 | 13,089 |
LIHTC unfunded commitments included in other liabilities | [1] | 4,500 | 4,520 |
Asset-backed investments included in HTM securities | [2] | 9,320 | 9,834 |
Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity | |||
Lending to special purpose entities included in loans and leases | 4,860 | 4,578 | |
LIHTC unfunded commitments included in other liabilities | 1,045 | 1,046 | |
Asset-backed investments included in HTM securities | 510 | 581 | |
Variable Interest Entity, Not Primary Beneficiary | Low Income Housing Tax Credit Partnerships | |||
Variable Interest Entity | |||
Investments included in other assets | 2,395 | 2,230 | |
Variable Interest Entity, Not Primary Beneficiary | Renewable Energy | |||
Variable Interest Entity | |||
Investments included in other assets | 243 | 374 | |
Variable Interest Entity, Not Primary Beneficiary | New Market Tax Credit Investments | |||
Variable Interest Entity | |||
Investments included in other assets | $ 3 | $ 4 | |
[1]Includes amounts in consolidated VIEs. See Note 7 for additional information.[2]Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Commitments to extend credit | Variable Interest Entity, Not Primary Beneficiary | Special Purpose Entities | ||
Variable Interest Entity | ||
Commitment amount | $ 2,800 | $ 2,400 |
Renewable energy wind investments | Renewable Energy Entities | ||
Variable Interest Entity | ||
Commitment amount | $ 7 |
VARIABLE INTEREST ENTITIES - _3
VARIABLE INTEREST ENTITIES - Schedule of Affordable Housing Tax Credit Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Variable Interest Entity | ||||
Income tax expense | $ (119) | $ (177) | $ (406) | $ (407) |
Noninterest income | 492 | 512 | 1,483 | 1,504 |
Net income | 430 | 636 | 1,419 | 1,420 |
Variable Interest Entity, Not Primary Beneficiary | Net Income (Loss) Attributable To Parent, Net Benefit | ||||
Variable Interest Entity | ||||
Net income | 22 | 13 | 65 | 36 |
Variable Interest Entity, Not Primary Beneficiary | Net benefit (expense) included in income tax expense | ||||
Variable Interest Entity | ||||
Income tax expense | 22 | 13 | 68 | 36 |
Variable Interest Entity, Not Primary Beneficiary | Tax credits recognized | ||||
Variable Interest Entity | ||||
Income tax expense | 76 | 59 | 250 | 180 |
Variable Interest Entity, Not Primary Beneficiary | Other tax benefits recognized | ||||
Variable Interest Entity | ||||
Income tax expense | 17 | 15 | 55 | 46 |
Variable Interest Entity, Not Primary Beneficiary | Amortization | ||||
Variable Interest Entity | ||||
Income tax expense | (71) | (61) | (237) | (190) |
Variable Interest Entity, Not Primary Beneficiary | Net benefit (expense) included in noninterest income | ||||
Variable Interest Entity | ||||
Noninterest income | 0 | 0 | (3) | 0 |
Variable Interest Entity, Not Primary Beneficiary | Other income | ||||
Variable Interest Entity | ||||
Noninterest income | 1 | 0 | 4 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Allocated income (loss) on investments | ||||
Variable Interest Entity | ||||
Noninterest income | $ (1) | $ 0 | $ (7) | $ 0 |
BORROWED FUNDS - Narrative (Det
BORROWED FUNDS - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Principal balance | $ 17,500 | $ 16,000 |
Unamortized deferred issuance costs and/or discounts | 77 | 85 |
Hedging basis adjustments | (26) | (27) |
Short-term borrowed funds | 232 | 3 |
Available borrowing capacity | 61,300 | |
Federal Home Loan Bank Advances and Letters of Credit | Secured Debt | ||
Debt Instrument [Line Items] | ||
Short-term borrowed funds | 13,000 | 15,700 |
Federal Home Loan Bank advances | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | $ 12,700 | $ 11,500 |
BORROWED FUNDS - Long Term Debt
BORROWED FUNDS - Long Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Long-term borrowed funds | [1] | $ 17,354 | $ 15,887 |
Parent Company | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | $ 3,341 | ||
Parent Company | Subordinated Debt | 3.750% fixed-rate subordinated debt, due July 2024 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.75% | ||
Long-term borrowed funds | $ 90 | 90 | |
Parent Company | Subordinated Debt | 4.023% fixed-rate subordinated debt, due October 2024 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.023% | ||
Long-term borrowed funds | $ 17 | 17 | |
Parent Company | Subordinated Debt | 4.350% fixed-rate subordinated debt, due August 2025 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.35% | ||
Long-term borrowed funds | $ 133 | 133 | |
Parent Company | Subordinated Debt | 4.300% fixed-rate subordinated debt, due December 2025 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.30% | ||
Long-term borrowed funds | $ 336 | 336 | |
Parent Company | Subordinated Debt | 3.750% fixed-rate reset subordinated debt, due February 2031 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.75% | ||
Long-term borrowed funds | $ 69 | 69 | |
Parent Company | Subordinated Debt | 4.300% fixed-rate reset subordinated debt, due February 2031 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.30% | ||
Long-term borrowed funds | $ 135 | 135 | |
Parent Company | Subordinated Debt | 4.350% fixed-rate reset subordinated debt, due February 2031 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.35% | ||
Long-term borrowed funds | $ 60 | 61 | |
Parent Company | Subordinated Debt | 2.638% fixed-rate subordinated debt, due September 2032 | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.638% | ||
Long-term borrowed funds | $ 561 | 556 | |
Parent Company | Subordinated Debt | 5.641% fixed-rate reset subordinated debt, due May 2037 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.641% | ||
Long-term borrowed funds | $ 398 | 397 | |
Parent Company | Senior Unsecured Notes | 2.850% fixed-rate senior unsecured notes, due July 2026 | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.85% | ||
Long-term borrowed funds | $ 498 | 498 | |
Parent Company | Senior Unsecured Notes | 2.500% fixed-rate senior unsecured notes, due February 2030 | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.50% | ||
Long-term borrowed funds | $ 298 | 298 | |
Parent Company | Senior Unsecured Notes | 3.250% fixed-rate senior unsecured notes, due April 2030 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.25% | ||
Long-term borrowed funds | $ 746 | 746 | |
CBNA and Other Subsidiaries | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | $ 14,013 | ||
CBNA and Other Subsidiaries | Senior Unsecured Notes | 3.700% senior unsecured notes, due March 2023 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.70% | ||
Long-term borrowed funds | $ 0 | 497 | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 5.676% floating-rate senior unsecured notes, due March 2023 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.676% | ||
Long-term borrowed funds | $ 0 | 250 | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 2.250% senior unsecured notes, due April 2025 | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.25% | ||
Long-term borrowed funds | $ 748 | 748 | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 4.119% fixed/floating-rate senior unsecured notes, due May 2025 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.119% | ||
Long-term borrowed funds | $ 649 | 648 | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 6.064% fixed/floating-rate senior unsecured notes, due October 2025 | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.064% | ||
Long-term borrowed funds | $ 599 | 598 | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 5.284% fixed/floating-rate senior unsecured notes, due January 2026 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.284% | ||
Long-term borrowed funds | $ 449 | 0 | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 3.750% senior unsecured notes, due February 2026 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.75% | ||
Long-term borrowed funds | $ 473 | 475 | |
CBNA and Other Subsidiaries | Senior Unsecured Notes | 4.575% fixed/floating-rate senior unsecured notes, due August 2028 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.575% | ||
Long-term borrowed funds | $ 798 | 797 | |
CBNA and Other Subsidiaries | Federal Home Loan Bank advances | |||
Debt Instrument [Line Items] | |||
Weighted average rate | 5.594% | ||
Long-term borrowed funds | $ 7,036 | 8,519 | |
CBNA and Other Subsidiaries | Secured Debt | |||
Debt Instrument [Line Items] | |||
Securitized borrowings, weighted average interest rate | 5.955% | ||
Long-term borrowed funds | $ 3,245 | 0 | |
CBNA and Other Subsidiaries | Other | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | $ 16 | $ 19 | |
[1]Includes amounts in consolidated VIEs. See Note 7 for additional information. |
BORROWED FUNDS - Maturities of
BORROWED FUNDS - Maturities of Long-term Borrowed Funds (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
2023 | $ 1 | ||
2024 | 999 | ||
2025 | 9,489 | ||
2026 | 2,631 | ||
2027 | 2 | ||
2028 and thereafter | 4,232 | ||
Total | [1] | 17,354 | $ 15,887 |
Parent Company | |||
Debt Instrument [Line Items] | |||
2023 | 0 | ||
2024 | 107 | ||
2025 | 469 | ||
2026 | 498 | ||
2027 | 0 | ||
2028 and thereafter | 2,267 | ||
Total | 3,341 | ||
CBNA and Other Subsidiaries | |||
Debt Instrument [Line Items] | |||
2023 | 1 | ||
2024 | 892 | ||
2025 | 9,020 | ||
2026 | 2,133 | ||
2027 | 2 | ||
2028 and thereafter | 1,965 | ||
Total | $ 14,013 | ||
[1]Includes amounts in consolidated VIEs. See Note 7 for additional information. |
DERIVATIVES - Schedule of Deriv
DERIVATIVES - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 325,780 | $ 250,495 |
Derivative Assets | ||
Derivative assets | 1,698 | 1,839 |
Less: Gross amounts offset in the Consolidated Balance Sheets | (609) | (623) |
Less: Cash collateral applied | (567) | (374) |
Total net derivatives presented in the Consolidated Balance Sheets | 522 | 842 |
Derivative Liabilities | ||
Derivative liabilities | 2,948 | 3,111 |
Less: Gross amounts offset in the Consolidated Balance Sheets | (609) | (623) |
Less: Cash collateral applied | (230) | (579) |
Total net derivatives presented in the Consolidated Balance Sheets | 2,109 | 1,909 |
Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 236,278 | 208,245 |
Derivative Assets | ||
Derivative assets | 1,519 | 1,823 |
Derivative Liabilities | ||
Derivative liabilities | 2,891 | 3,058 |
Interest rate contracts | ||
Derivative Assets | ||
Derivative assets | 439 | 347 |
Derivative Liabilities | ||
Derivative liabilities | 1,842 | 1,632 |
Interest rate contracts | Derivatives designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 89,502 | 42,250 |
Derivative Assets | ||
Derivative assets | 179 | 16 |
Derivative Liabilities | ||
Derivative liabilities | 57 | 53 |
Interest rate contracts | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 200,389 | 174,384 |
Derivative Assets | ||
Derivative assets | 260 | 331 |
Derivative Liabilities | ||
Derivative liabilities | 1,785 | 1,579 |
Foreign exchange contracts | ||
Derivative Assets | ||
Derivative assets | 530 | 527 |
Derivative Liabilities | ||
Derivative liabilities | 432 | 519 |
Foreign exchange contracts | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 30,168 | 29,475 |
Derivative Assets | ||
Derivative assets | 530 | 527 |
Derivative Liabilities | ||
Derivative liabilities | 432 | 519 |
Commodities contracts | ||
Derivative Assets | ||
Derivative assets | 707 | 953 |
Derivative Liabilities | ||
Derivative liabilities | 666 | 942 |
Commodities contracts | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,273 | 1,103 |
Derivative Assets | ||
Derivative assets | 707 | 953 |
Derivative Liabilities | ||
Derivative liabilities | 666 | 942 |
TBA contracts | ||
Derivative Assets | ||
Derivative assets | 17 | 7 |
Derivative Liabilities | ||
Derivative liabilities | 5 | 14 |
TBA contracts | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,561 | 2,370 |
Derivative Assets | ||
Derivative assets | 17 | 7 |
Derivative Liabilities | ||
Derivative liabilities | 5 | 14 |
Other contracts | ||
Derivative Assets | ||
Derivative assets | 5 | 5 |
Derivative Liabilities | ||
Derivative liabilities | 3 | 4 |
Other contracts | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 887 | 913 |
Derivative Assets | ||
Derivative assets | 5 | 5 |
Derivative Liabilities | ||
Derivative liabilities | $ 3 | $ 4 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Derivative [Line Items] | |
Net loss (pre-tax) on derivatives expected to be reclassified in next 12 months | $ 904 |
Terminated Swap | |
Derivative [Line Items] | |
Net loss (pre-tax) on derivatives expected to be reclassified in next 12 months | $ 462 |
DERIVATIVES - Schedule of Fair
DERIVATIVES - Schedule of Fair Value Hedges (Details) - Interest rate swap - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest expense - long-term borrowed funds | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | $ (1) | $ (19) | $ 0 | $ (71) |
Hedged item | 1 | 19 | 0 | 70 |
Interest and fees on other loans held for sale | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | 0 | 18 | 0 | 15 |
Hedged item | 0 | (19) | 0 | (15) |
Interest income - investment securities | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | 16 | 0 | 28 | 29 |
Hedged item | $ (16) | $ 0 | $ (28) | $ (29) |
DERIVATIVES - Amounts Recorded
DERIVATIVES - Amounts Recorded in Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items | $ (26) | $ (27) |
Total debt securities available for sale, at fair value | ||
Derivative [Line Items] | ||
Carrying amount of hedged assets | 445 | 0 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged assets | (17) | 0 |
Long-term borrowed funds | ||
Derivative [Line Items] | ||
Carrying amount of hedged liabilities | 473 | 972 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items | $ (26) | $ (27) |
DERIVATIVES - Effect of Derivat
DERIVATIVES - Effect of Derivative Instruments on Net Income and Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of pre-tax net gains (losses) recognized in OCI | $ (326) | $ (996) | $ (773) | $ (1,901) |
Interest Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of pretax net gains (losses) from OCI into income statement | (156) | (48) | (420) | 1 |
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of pretax net gains (losses) from OCI into income statement | $ (1) | $ 2 | $ 0 | $ (4) |
DERIVATIVES - Effect of Custome
DERIVATIVES - Effect of Customer Derivatives and Economic Hedges on Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts recognized in noninterest income | $ 19 | $ 86 | $ 33 | $ 201 |
Economic hedges | Customer interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts recognized in noninterest income | (448) | (840) | (1,028) | (2,015) |
Economic hedges | Derivatives hedging interest rate risk | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts recognized in noninterest income | 460 | 852 | 1,068 | 2,073 |
Economic hedges | Customer foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts recognized in noninterest income | (77) | (174) | (72) | (297) |
Economic hedges | Derivatives hedging foreign exchange risk | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts recognized in noninterest income | 141 | 271 | 121 | 520 |
Economic hedges | Customer commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts recognized in noninterest income | 168 | (71) | (401) | 1,453 |
Economic hedges | Derivatives hedging commodity price risk | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts recognized in noninterest income | (158) | 77 | 430 | (1,436) |
Economic hedges | Residential loan commitments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts recognized in noninterest income | (21) | (66) | (39) | (289) |
Economic hedges | Derivatives hedging residential loan commitments and mortgage LHFS, at fair value | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts recognized in noninterest income | 30 | 105 | 45 | 502 |
Economic hedges | Derivative contracts used to hedge residential MSRs | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts recognized in noninterest income | $ (76) | $ (68) | $ (91) | $ (310) |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 23,585 | $ 24,328 | $ 23,690 | $ 23,420 |
Other comprehensive income (loss) before reclassifications | (826) | (1,641) | (1,070) | (4,166) |
Amounts reclassified to the Consolidated Statements of Operations | 146 | 36 | 387 | 8 |
Total other comprehensive income (loss), net of income taxes | (680) | (1,605) | (683) | (4,158) |
Ending balance | 22,878 | 23,146 | 22,878 | 23,146 |
Total AOCI | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (4,563) | (3,218) | (4,560) | (665) |
Total other comprehensive income (loss), net of income taxes | (680) | (1,605) | (683) | (4,158) |
Ending balance | (5,243) | (4,823) | (5,243) | (4,823) |
Net Unrealized Gains (Losses) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (1,553) | (862) | (1,416) | (161) |
Other comprehensive income (loss) before reclassifications | (248) | (738) | (580) | (1,407) |
Amounts reclassified to the Consolidated Statements of Operations | 120 | 34 | 315 | 2 |
Total other comprehensive income (loss), net of income taxes | (128) | (704) | (265) | (1,405) |
Ending balance | (1,681) | (1,566) | (1,681) | (1,566) |
Net Unrealized Gains (Losses) on Debt Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (2,643) | (2,016) | (2,771) | (156) |
Other comprehensive income (loss) before reclassifications | (578) | (903) | (490) | (2,759) |
Amounts reclassified to the Consolidated Statements of Operations | 23 | 0 | 63 | (4) |
Total other comprehensive income (loss), net of income taxes | (555) | (903) | (427) | (2,763) |
Ending balance | (3,198) | (2,919) | (3,198) | (2,919) |
Employee Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (367) | (340) | (373) | (348) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified to the Consolidated Statements of Operations | 3 | 2 | 9 | 10 |
Total other comprehensive income (loss), net of income taxes | 3 | 2 | 9 | 10 |
Ending balance | $ (364) | $ (338) | $ (364) | $ (338) |
STOCKHOLDERS' EQUITY - Authoriz
STOCKHOLDERS' EQUITY - Authorized Preferred Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Class of Stock [Line Items] | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock: | ||
Preferred stock, issued (in shares) | 2,050,000 | 2,050,000 |
Preferred stock, value, issued | $ 2,014 | $ 2,014 |
Series B | ||
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, 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, 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, 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, liquidation preference per share (in dollars per share) | $ 1,000 | |
Preferred stock, issued (in shares) | 400,000 | 400,000 |
Preferred stock, value, issued | $ 395 | $ 395 |
Series G | ||
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 |
STOCKHOLDERS' EQUITY - Dividend
STOCKHOLDERS' EQUITY - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Class of Stock [Line Items] | ||||
Dividends declared per share of common stock (in usd per share) | $ 0.42 | $ 0.42 | $ 1.26 | $ 1.20 |
Common stock dividends declared and paid | $ 199 | $ 209 | $ 609 | $ 569 |
Preferred stock | ||||
Preferred stock dividends declared and paid | $ 30 | $ 25 | $ 87 | $ 81 |
Series B | ||||
Preferred stock | ||||
Dividends declared per share of preferred stock (in usd per share) | $ 21.81 | $ 0 | $ 51.81 | $ 30 |
Series C | ||||
Preferred stock | ||||
Dividends declared per share of preferred stock (in usd per share) | 15.93 | 15.93 | 47.81 | 47.81 |
Series D | ||||
Preferred stock | ||||
Dividends declared per share of preferred stock (in usd per share) | 15.88 | 15.88 | 47.63 | 47.63 |
Series E | ||||
Preferred stock | ||||
Dividends declared per share of preferred stock (in usd per share) | 12.50 | 12.50 | 37.50 | 37.50 |
Series F | ||||
Preferred stock | ||||
Dividends declared per share of preferred stock (in usd per share) | 14.13 | 14.13 | 42.38 | 42.38 |
Series G | ||||
Preferred stock | ||||
Dividends declared per share of preferred stock (in usd per share) | $ 10 | $ 10 | $ 30 | $ 30 |
Dividends Declared | ||||
Class of Stock [Line Items] | ||||
Common stock dividends declared and paid | $ 199 | $ 209 | $ 609 | $ 569 |
Preferred stock | ||||
Preferred stock dividends declared and paid | 30 | 25 | 87 | 81 |
Dividends Declared | Series B | ||||
Preferred stock | ||||
Preferred stock dividends declared and paid | 7 | 0 | 16 | 9 |
Dividends Declared | Series C | ||||
Preferred stock | ||||
Preferred stock dividends declared and paid | 4 | 5 | 14 | 15 |
Dividends Declared | Series D | ||||
Preferred stock | ||||
Preferred stock dividends declared and paid | 4 | 5 | 14 | 14 |
Dividends Declared | Series E | ||||
Preferred stock | ||||
Preferred stock dividends declared and paid | 6 | 6 | 17 | 17 |
Dividends Declared | Series F | ||||
Preferred stock | ||||
Preferred stock dividends declared and paid | 6 | 6 | 17 | 17 |
Dividends Declared | Series G | ||||
Preferred stock | ||||
Preferred stock dividends declared and paid | 3 | 3 | 9 | 9 |
Dividends Paid | ||||
Class of Stock [Line Items] | ||||
Common stock dividends declared and paid | 199 | 209 | 609 | 569 |
Preferred stock | ||||
Preferred stock dividends declared and paid | 32 | 34 | 89 | 90 |
Dividends Paid | Series B | ||||
Preferred stock | ||||
Preferred stock dividends declared and paid | 9 | 9 | 18 | 18 |
Dividends Paid | Series C | ||||
Preferred stock | ||||
Preferred stock dividends declared and paid | 4 | 5 | 14 | 15 |
Dividends Paid | Series D | ||||
Preferred stock | ||||
Preferred stock dividends declared and paid | 4 | 5 | 14 | 14 |
Dividends Paid | Series E | ||||
Preferred stock | ||||
Preferred stock dividends declared and paid | 6 | 6 | 17 | 17 |
Dividends Paid | Series F | ||||
Preferred stock | ||||
Preferred stock dividends declared and paid | 6 | 6 | 17 | 17 |
Dividends Paid | Series G | ||||
Preferred stock | ||||
Preferred stock dividends declared and paid | $ 3 | $ 3 | $ 9 | $ 9 |
STOCKHOLDERS' EQUITY - Treasury
STOCKHOLDERS' EQUITY - Treasury Stock Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Equity [Abstract] | |||
Treasury stock purchased | $ 250 | $ 906 | $ 2 |
Treasury stock purchased (in shares) | 28,472,450 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule of Outstanding Off-balance sheet Arrangements (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Other Commitments [Line Items] | ||
Commitment amount | $ 96,582 | $ 98,314 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 94,432 | 96,076 |
Letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 2,036 | 2,119 |
Loans sold with recourse | ||
Other Commitments [Line Items] | ||
Commitment amount | 95 | 92 |
Marketing rights | ||
Other Commitments [Line Items] | ||
Commitment amount | 18 | 23 |
Risk participation agreements | ||
Other Commitments [Line Items] | ||
Commitment amount | $ 1 | $ 4 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2003 | |
Minimum | ||
Risk Participation Agreements [Abstract] | ||
Risk participation agreements, average term | 1 year | |
Maximum | ||
Risk Participation Agreements [Abstract] | ||
Risk participation agreements, average term | 7 years | |
Marketing rights | ||
Marketing Rights [Abstract] | ||
Commitment period | 25 years | |
Financial standby letters of credit | ||
Letters of Credit [Abstract] | ||
Letters of credit outstanding, term | ten years | |
Commercial letters of credit | ||
Letters of Credit [Abstract] | ||
Letters of credit outstanding, term | one year |
FAIR VALUE MEASUREMENTS - Resid
FAIR VALUE MEASUREMENTS - Residential Mortgage and Commercial Real Estate Loans Held For Sale (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | $ 749 | $ 774 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 749 | 774 |
Level 2 | Residential mortgage loans held for sale, at fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 739 | 666 |
Aggregate Unpaid Principal | 734 | 656 |
Aggregate Fair Value Greater (Less) Than Aggregate Unpaid Principal | 5 | 10 |
Level 2 | Commercial and industrial, and commercial real estate loans held for sale, at fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 10 | 108 |
Aggregate Unpaid Principal | 12 | 127 |
Aggregate Fair Value Greater (Less) Than Aggregate Unpaid Principal | $ (2) | $ (19) |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Assets | |||
Fair Value | [1] | $ 25,069 | $ 24,007 |
Loans held for sale, at fair value | 749 | 774 | |
Mortgage servicing rights | 1,620 | 1,530 | |
Derivative assets | 1,698 | 1,839 | |
Equity securities, at fair value | 106 | 110 | |
Total assets | 29,242 | 28,260 | |
Liabilities | |||
Total derivative liabilities | 2,948 | 3,111 | |
Total liabilities | 2,948 | 3,111 | |
Equity securities excluded from investments | 163 | 153 | |
Interest rate contracts | |||
Assets | |||
Derivative assets | 439 | 347 | |
Liabilities | |||
Total derivative liabilities | 1,842 | 1,632 | |
Foreign exchange contracts | |||
Assets | |||
Derivative assets | 530 | 527 | |
Liabilities | |||
Total derivative liabilities | 432 | 519 | |
Commodities contracts | |||
Assets | |||
Derivative assets | 707 | 953 | |
Liabilities | |||
Total derivative liabilities | 666 | 942 | |
TBA contracts | |||
Assets | |||
Derivative assets | 17 | 7 | |
Liabilities | |||
Total derivative liabilities | 5 | 14 | |
Other contracts | |||
Assets | |||
Derivative assets | 5 | 5 | |
Liabilities | |||
Total derivative liabilities | 3 | 4 | |
Level 1 | |||
Assets | |||
Fair Value | 3,774 | 3,486 | |
Loans held for sale, at fair value | 0 | 0 | |
Derivative assets | 0 | 0 | |
Equity securities, at fair value | 106 | 110 | |
Total assets | 3,880 | 3,596 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
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 | Commodities contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 1 | TBA contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 1 | Other contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 2 | |||
Assets | |||
Fair Value | 21,295 | 20,521 | |
Loans held for sale, at fair value | 749 | 774 | |
Derivative assets | 1,693 | 1,834 | |
Equity securities, at fair value | 0 | 0 | |
Total assets | 23,737 | 23,129 | |
Liabilities | |||
Total derivative liabilities | 2,946 | 3,107 | |
Total liabilities | 2,946 | 3,107 | |
Level 2 | Interest rate contracts | |||
Assets | |||
Derivative assets | 439 | 347 | |
Liabilities | |||
Total derivative liabilities | 1,842 | 1,632 | |
Level 2 | Foreign exchange contracts | |||
Assets | |||
Derivative assets | 530 | 527 | |
Liabilities | |||
Total derivative liabilities | 432 | 519 | |
Level 2 | Commodities contracts | |||
Assets | |||
Derivative assets | 707 | 953 | |
Liabilities | |||
Total derivative liabilities | 666 | 942 | |
Level 2 | TBA contracts | |||
Assets | |||
Derivative assets | 17 | 7 | |
Liabilities | |||
Total derivative liabilities | 5 | 14 | |
Level 2 | Other contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 1 | 0 | |
Level 3 | |||
Assets | |||
Fair Value | 0 | 0 | |
Loans held for sale, at fair value | 0 | 0 | |
Derivative assets | 5 | 5 | |
Equity securities, at fair value | 0 | 0 | |
Total assets | 1,625 | 1,535 | |
Liabilities | |||
Total derivative liabilities | 2 | 4 | |
Total liabilities | 2 | 4 | |
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 | Commodities contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 3 | TBA contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 3 | Other contracts | |||
Assets | |||
Derivative assets | 5 | 5 | |
Liabilities | |||
Total derivative liabilities | 2 | 4 | |
Fair Value Measured at Net Asset Value Per Share | |||
Liabilities | |||
Equity securities excluded from investments | 57 | 43 | |
Unfunded capital commitments | 24 | 42 | |
Mortgage-backed securities | |||
Assets | |||
Fair Value | 20,504 | 19,313 | |
Mortgage-backed securities | Level 1 | |||
Assets | |||
Fair Value | 0 | 0 | |
Mortgage-backed securities | Level 2 | |||
Assets | |||
Fair Value | 20,504 | 19,313 | |
Mortgage-backed securities | Level 3 | |||
Assets | |||
Fair Value | 0 | 0 | |
Collateralized loan obligations | |||
Assets | |||
Fair Value | 789 | 1,206 | |
Collateralized loan obligations | Level 1 | |||
Assets | |||
Fair Value | 0 | 0 | |
Collateralized loan obligations | Level 2 | |||
Assets | |||
Fair Value | 789 | 1,206 | |
Collateralized loan obligations | Level 3 | |||
Assets | |||
Fair Value | 0 | 0 | |
State and political subdivisions | |||
Assets | |||
Fair Value | 2 | 2 | |
State and political subdivisions | Level 1 | |||
Assets | |||
Fair Value | 0 | 0 | |
State and political subdivisions | Level 2 | |||
Assets | |||
Fair Value | 2 | 2 | |
State and political subdivisions | Level 3 | |||
Assets | |||
Fair Value | 0 | 0 | |
U.S. Treasury and other | |||
Assets | |||
Fair Value | 3,774 | 3,486 | |
U.S. Treasury and other | Level 1 | |||
Assets | |||
Fair Value | 3,774 | 3,486 | |
U.S. Treasury and other | Level 2 | |||
Assets | |||
Fair Value | 0 | 0 | |
U.S. Treasury and other | Level 3 | |||
Assets | |||
Fair Value | 0 | 0 | |
Residential loans held for sale | |||
Assets | |||
Loans held for sale, at fair value | 739 | 666 | |
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 | 739 | 666 | |
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 | 10 | 108 | |
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 | 10 | 108 | |
Commercial loans held for sale | Level 3 | |||
Assets | |||
Loans held for sale, at fair value | 0 | 0 | |
Mortgage servicing rights | |||
Assets | |||
Mortgage servicing rights | 1,620 | 1,530 | |
Mortgage servicing rights | Level 1 | |||
Assets | |||
Mortgage servicing rights | 0 | 0 | |
Mortgage servicing rights | Level 2 | |||
Assets | |||
Mortgage servicing rights | 0 | 0 | |
Mortgage servicing rights | Level 3 | |||
Assets | |||
Mortgage servicing rights | $ 1,620 | $ 1,530 | |
[1]Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of Assets Measured on Recurring Basis Level 3 Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Mortgage Servicing Rights | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 1,524 | $ 1,411 | $ 1,530 | $ 1,029 |
Issuances | 47 | 70 | 104 | 244 |
Acquisitions | 0 | 16 | ||
Settlements | (42) | (31) | (124) | (102) |
Change in fair value during the period recognized in earnings | 91 | 74 | 110 | 337 |
Ending balance | 1,620 | 1,524 | 1,620 | 1,524 |
Other Derivative Contracts | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 6 | 11 | 1 | 38 |
Issuances | 17 | 20 | 52 | 84 |
Acquisitions | 0 | 0 | ||
Settlements | 1 | 2 | (11) | 134 |
Change in fair value during the period recognized in earnings | (21) | (66) | (39) | (289) |
Ending balance | $ 3 | $ (33) | $ 3 | $ (33) |
FAIR VALUE MEASUREMENTS - Unobs
FAIR VALUE MEASUREMENTS - Unobservable Inputs Used and Valuation Techniques (Details) - Level 3 | Sep. 30, 2023 |
Minimum | Discounted Cash Flow | Constant prepayment rate | Mortgage servicing rights | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage servicing rights, measurement input | 0.0581 |
Minimum | Discounted Cash Flow | Option adjusted spread | Mortgage servicing rights | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage servicing rights, measurement input | 3.98 |
Minimum | Internal Model | Pull through rate | Other derivative contracts | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other derivative contracts, measurement input | 0.1714 |
Minimum | Internal Model | MSR value | Other derivative contracts | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other derivative contracts, measurement input | 0.0425 |
Maximum | Discounted Cash Flow | Constant prepayment rate | Mortgage servicing rights | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage servicing rights, measurement input | 0.1426 |
Maximum | Discounted Cash Flow | Option adjusted spread | Mortgage servicing rights | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage servicing rights, measurement input | 10.58 |
Maximum | Internal Model | Pull through rate | Other derivative contracts | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other derivative contracts, measurement input | 0.9970 |
Maximum | Internal Model | MSR value | Other derivative contracts | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other derivative contracts, measurement input | 1.5304 |
Weighted Average | Discounted Cash Flow | Constant prepayment rate | Mortgage servicing rights | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage servicing rights, measurement input | 0.0640 |
Weighted Average | Discounted Cash Flow | Option adjusted spread | Mortgage servicing rights | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mortgage servicing rights, measurement input | 6.30 |
Weighted Average | Internal Model | Pull through rate | Other derivative contracts | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other derivative contracts, measurement input | 0.8227 |
Weighted Average | Internal Model | MSR value | Other derivative contracts | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Other derivative contracts, measurement input | 0.9679 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Nonrecurring measurement basis | Collateral-dependent loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Losses on assets measured at fair value | $ (40) | $ 0 | $ (108) | $ (3) |
FAIR VALUE MEASUREMENTS - Sch_4
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements on a Nonrecurring Basis (Details) - Nonrecurring measurement basis - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | $ 835 | $ 582 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | 835 | 582 |
Level 3 | ||
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 | Sep. 30, 2023 | Dec. 31, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Asset-backed investments included in HTM securities | [1] | $ 9,320 | $ 9,834 |
Fair Value | 8,054 | 9,042 | |
Other loans held for sale, carrying value | 99 | 208 | |
Other loans held for sale, fair value | 99 | 208 | |
Loans pledged as collateral for FHLB borrowed funds | [2] | 147,666 | 154,679 |
Loans and leases, fair value | 141,041 | 151,601 | |
Other assets, carrying value | 995 | 1,058 | |
Other assets, fair value | 995 | 1,058 | |
Deposits, carrying value | 178,197 | 180,724 | |
Deposits, fair value | 178,077 | 180,566 | |
Short-term borrowed funds, carrying value | 232 | 3 | |
Short-term borrowed funds, fair value | 232 | 3 | |
Long-term borrowed funds, carrying value | [2] | 17,354 | 15,887 |
Long-term borrowed funds, fair value | 16,656 | 15,469 | |
Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Asset-backed investments included in HTM securities | 0 | 0 | |
Fair Value | 0 | 0 | |
Other loans held for sale, carrying value | 0 | 0 | |
Other loans held for sale, fair value | 0 | 0 | |
Loans pledged as collateral for FHLB borrowed funds | 0 | 0 | |
Loans and leases, fair value | 0 | 0 | |
Other assets, carrying value | 0 | 0 | |
Other assets, fair value | 0 | 0 | |
Deposits, carrying value | 0 | 0 | |
Deposits, fair value | 0 | 0 | |
Short-term borrowed funds, carrying value | 0 | 0 | |
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] | |||
Asset-backed investments included in HTM securities | 8,810 | 9,253 | |
Fair Value | 7,569 | 8,506 | |
Other loans held for sale, carrying value | 0 | 0 | |
Other loans held for sale, fair value | 0 | 0 | |
Loans pledged as collateral for FHLB borrowed funds | 835 | 582 | |
Loans and leases, fair value | 835 | 582 | |
Other assets, carrying value | 977 | 1,038 | |
Other assets, fair value | 977 | 1,038 | |
Deposits, carrying value | 178,197 | 180,724 | |
Deposits, fair value | 178,077 | 180,566 | |
Short-term borrowed funds, carrying value | 232 | 3 | |
Short-term borrowed funds, fair value | 232 | 3 | |
Long-term borrowed funds, carrying value | 17,354 | 15,887 | |
Long-term borrowed funds, fair value | 16,656 | 15,469 | |
Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Asset-backed investments included in HTM securities | 510 | 581 | |
Fair Value | 485 | 536 | |
Other loans held for sale, carrying value | 99 | 208 | |
Other loans held for sale, fair value | 99 | 208 | |
Loans pledged as collateral for FHLB borrowed funds | 146,831 | 154,097 | |
Loans and leases, fair value | 140,206 | 151,019 | |
Other assets, carrying value | 18 | 20 | |
Other assets, fair value | 18 | 20 | |
Deposits, carrying value | 0 | 0 | |
Deposits, fair value | 0 | 0 | |
Short-term borrowed funds, carrying value | 0 | 0 | |
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.[2]Includes amounts in consolidated VIEs. See Note 7 for additional information. |
NONINTEREST INCOME - Components
NONINTEREST INCOME - Components of Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 310 | $ 322 | $ 942 | $ 961 |
Total revenue from other sources | 182 | 190 | 541 | 543 |
Total noninterest income | 492 | 512 | 1,483 | 1,504 |
Bank-owned life insurance income | 24 | 22 | 70 | 64 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1 | 1 | 1 | 4 |
Total revenue from other sources | 33 | 28 | 92 | 46 |
Total noninterest income | 34 | 29 | 93 | 50 |
Consumer Banking | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 198 | 194 | 586 | 574 |
Total revenue from other sources | 80 | 76 | 216 | 233 |
Total noninterest income | 278 | 270 | 802 | 807 |
Commercial Banking | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 111 | 127 | 355 | 383 |
Total revenue from other sources | 69 | 86 | 233 | 264 |
Total noninterest income | 180 | 213 | 588 | 647 |
Non-Core | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Total revenue from other sources | 0 | 0 | 0 | 0 |
Total noninterest income | 0 | 0 | 0 | 0 |
Service charges and fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 105 | 108 | 305 | 314 |
Service charges and fees | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1 | 1 | 1 | 3 |
Service charges and fees | Consumer Banking | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 73 | 74 | 206 | 217 |
Service charges and fees | Commercial Banking | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 31 | 33 | 98 | 94 |
Service charges and fees | Non-Core | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Card fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 74 | 70 | 223 | 200 |
Card fees | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Card fees | Consumer Banking | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 62 | 59 | 188 | 169 |
Card fees | Commercial Banking | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 12 | 11 | 35 | 31 |
Card fees | Non-Core | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Capital markets fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 64 | 76 | 211 | 244 |
Capital markets fees | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Capital markets fees | Consumer Banking | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Capital markets fees | Commercial Banking | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 64 | 76 | 211 | 244 |
Capital markets fees | Non-Core | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Trust and investment services fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 63 | 61 | 191 | 188 |
Trust and investment services fees | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Trust and investment services fees | Consumer Banking | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 62 | 61 | 190 | 188 |
Trust and investment services fees | Commercial Banking | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1 | 0 | 1 | 0 |
Trust and investment services fees | Non-Core | Operating Segments | ||||
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 | 4 | 7 | 12 | 15 |
Other banking fees | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 1 |
Other banking fees | Consumer Banking | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1 | 0 | 2 | 0 |
Other banking fees | Commercial Banking | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3 | 7 | 10 | 14 |
Other banking fees | Non-Core | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 0 | $ 0 | $ 0 | $ 0 |
NONINTEREST INCOME - Narrative
NONINTEREST INCOME - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Trust and investment services fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Trailing commission income | $ 4 | $ 4 | $ 11 | $ 12 |
OTHER OPERATING EXPENSE (Detail
OTHER OPERATING EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Marketing | $ 48 | $ 54 | $ 142 | $ 119 |
Deposit insurance | 42 | 28 | 121 | 74 |
Other | 86 | 83 | 279 | 235 |
Other operating expense | $ 176 | $ 165 | $ 542 | $ 428 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator (basic and diluted): | ||||
Net income | $ 430 | $ 636 | $ 1,419 | $ 1,420 |
Less: Preferred stock dividends | 30 | 25 | 87 | 81 |
Net income available to common stockholders | $ 400 | $ 611 | $ 1,332 | $ 1,339 |
Denominator: | ||||
Weighted-average common shares outstanding - basic (in shares) | 469,481,085 | 495,651,083 | 478,073,507 | 470,118,265 |
Dilutive common shares: share-based awards (in shares) | 1,702,634 | 1,826,418 | 1,659,501 | 1,840,045 |
Weighted-average common shares outstanding - diluted (in shares) | 471,183,719 | 497,477,501 | 479,733,008 | 471,958,310 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.85 | $ 1.23 | $ 2.79 | $ 2.85 |
Diluted (in dollars per share) | $ 0.85 | $ 1.23 | $ 2.78 | $ 2.84 |
Share-based awards excluded from diluted earnings per share computation (in shares) | 2,566,762 | 2,310,242 | 2,391,244 | 903,782 |
BUSINESS OPERATING SEGMENTS - N
BUSINESS OPERATING SEGMENTS - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of segments | 3 |
BUSINESS OPERATING SEGMENTS - A
BUSINESS OPERATING SEGMENTS - Assets by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net interest income | $ 1,522 | $ 1,665 | $ 4,753 | $ 4,317 |
Noninterest income | 492 | 512 | 1,483 | 1,504 |
Total revenue | 2,014 | 2,177 | 6,236 | 5,821 |
Noninterest expense | 1,293 | 1,241 | 3,895 | 3,652 |
Profit (loss) before provision (benefit) for credit losses | 721 | 936 | 2,341 | 2,169 |
Provision (benefit) for credit losses | 172 | 123 | 516 | 342 |
Income before income tax expense | 549 | 813 | 1,825 | 1,827 |
Income tax expense (benefit) | 119 | 177 | 406 | 407 |
NET INCOME | 430 | 636 | 1,419 | 1,420 |
Total average assets | 220,162 | 225,473 | 221,739 | 211,722 |
Operating Segments | Consumer Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 1,067 | 989 | 3,101 | 2,635 |
Noninterest income | 278 | 270 | 802 | 807 |
Total revenue | 1,345 | 1,259 | 3,903 | 3,442 |
Noninterest expense | 905 | 828 | 2,637 | 2,424 |
Profit (loss) before provision (benefit) for credit losses | 440 | 431 | 1,266 | 1,018 |
Provision (benefit) for credit losses | 67 | 47 | 198 | 117 |
Income before income tax expense | 373 | 384 | 1,068 | 901 |
Income tax expense (benefit) | 97 | 98 | 278 | 230 |
NET INCOME | 276 | 286 | 790 | 671 |
Total average assets | 72,964 | 71,631 | 72,477 | 66,793 |
Operating Segments | Commercial Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 560 | 558 | 1,741 | 1,508 |
Noninterest income | 180 | 213 | 588 | 647 |
Total revenue | 740 | 771 | 2,329 | 2,155 |
Noninterest expense | 325 | 325 | 971 | 905 |
Profit (loss) before provision (benefit) for credit losses | 415 | 446 | 1,358 | 1,250 |
Provision (benefit) for credit losses | 67 | 12 | 185 | 34 |
Income before income tax expense | 348 | 434 | 1,173 | 1,216 |
Income tax expense (benefit) | 88 | 100 | 289 | 270 |
NET INCOME | 260 | 334 | 884 | 946 |
Total average assets | 74,997 | 80,067 | 77,130 | 73,344 |
Operating Segments | Non-Core | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | (41) | 70 | (84) | 359 |
Noninterest income | 0 | 0 | 0 | 0 |
Total revenue | (41) | 70 | (84) | 359 |
Noninterest expense | 30 | 36 | 95 | 105 |
Profit (loss) before provision (benefit) for credit losses | (71) | 34 | (179) | 254 |
Provision (benefit) for credit losses | 20 | 14 | 54 | 33 |
Income before income tax expense | (91) | 20 | (233) | 221 |
Income tax expense (benefit) | (24) | 4 | (61) | 56 |
NET INCOME | (67) | 16 | (172) | 165 |
Total average assets | 13,113 | 17,929 | 14,409 | 18,582 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | (64) | 48 | (5) | (185) |
Noninterest income | 34 | 29 | 93 | 50 |
Total revenue | (30) | 77 | 88 | (135) |
Noninterest expense | 33 | 52 | 192 | 218 |
Profit (loss) before provision (benefit) for credit losses | (63) | 25 | (104) | (353) |
Provision (benefit) for credit losses | 18 | 50 | 79 | 158 |
Income before income tax expense | (81) | (25) | (183) | (511) |
Income tax expense (benefit) | (42) | (25) | (100) | (149) |
NET INCOME | (39) | 0 | (83) | (362) |
Total average assets | $ 59,088 | $ 55,846 | $ 57,723 | $ 53,003 |