Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-16581 | |
Entity Registrant Name | SANTANDER HOLDINGS USA, INC. | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 23-2453088 | |
Entity Address, Address Line One | 75 State Street | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02109 | |
City Area Code | 617 | |
Local Phone Number | 346-7200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 530,391,043 | |
Entity Central Index Key | 0000811830 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Cash and cash equivalents | $ 10,468,011 | $ 19,305,530 | |
Federal funds sold and securities purchased under resale agreements or similar arrangements | 13,747,936 | 5,346,468 | |
Investment securities: | |||
AFS at fair value (amortized cost of $8,616,108 and $11,409,953 as of June 30, 2022 and December 31, 2021, respectively) | 8,024,675 | 11,313,937 | |
Trading securities | 4,978,817 | 35,791 | |
HTM (fair value of $8,662,504 and $6,629,206 as of June 30, 2022 and December 31, 2021, respectively) | 9,437,767 | 6,702,471 | |
Other investments | 1,375,545 | 1,060,347 | |
LHFI | [1],[2] | 92,762,061 | 92,075,812 |
ALLL | [2] | (6,555,249) | (6,461,410) |
Net LHFI | 86,206,812 | 85,614,402 | |
LHFS | [2],[3] | 256,898 | 255,023 |
Premises and equipment, net | [4] | 841,727 | 856,393 |
Operating lease assets, net | [2],[5] | 14,991,051 | 15,406,402 |
Goodwill | 2,767,732 | 2,596,161 | |
Intangible assets, net | 354,887 | 339,079 | |
BOLI | 1,955,106 | 1,942,099 | |
Restricted cash | [2] | 5,317,599 | 5,711,705 |
Other assets | [2],[6] | 4,599,269 | 3,335,423 |
TOTAL ASSETS | 165,323,832 | 159,821,231 | |
LIABILITIES | |||
Accounts payables and accrued expenses | 5,716,544 | 5,329,755 | |
Deposits and other customer accounts | 74,474,111 | 81,598,172 | |
Federal funds purchased and securities loaned or sold under repurchase agreements | 16,004,022 | 5,258,875 | |
Trading liabilities | 2,167,354 | 62 | |
Borrowings and other debt obligations | [2] | 43,160,191 | 41,133,187 |
Advance payments by borrowers for taxes and insurance | 158,116 | 142,592 | |
Deferred tax liabilities, net | 709,677 | 771,341 | |
Other liabilities | [2] | 2,052,094 | 1,119,897 |
TOTAL LIABILITIES | 144,442,109 | 135,353,881 | |
Commitments and contingencies (Note 16) | |||
STOCKHOLDER'S EQUITY | |||
Common stock and paid-in capital (no par value; 800,000,000 shares authorized; 530,391,043 shares outstanding at both June 30, 2022 and December 31, 2021) | 17,293,611 | 17,875,938 | |
AOCI/(loss), net of taxes | (1,042,655) | (188,110) | |
Retained earnings | 4,630,767 | 4,826,127 | |
TOTAL SHUSA STOCKHOLDER'S EQUITY | 20,881,723 | 22,513,955 | |
NCI | 0 | 1,953,395 | |
TOTAL STOCKHOLDER'S EQUITY | 20,881,723 | 24,467,350 | |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ 165,323,832 | $ 159,821,231 | |
[1]LHFI includes $26.2 million and $33.5 million of loans recorded at fair value at June 30, 2022 and December 31, 2021, respectively.[2]The Company has interests in certain Trusts that are considered VIEs for accounting purposes. At June 30, 2022 and December 31, 2021, LHFI included $23.6 billion and $20.6 billion, LHFS included zero and zero , Operating leases assets, net included $12.2 billion and $14.7 billion, restricted cash included $1.1 billion and $1.6 billion, Other assets included $687.5 million and $629.4 million, Borrowings and other debt obligations included $30.2 billion and $29.2 billion, and Other liabilities included $121.9 million and $81.1 million of assets or liabilities that were included within VIEs, respectively. See Note 7 to these Condensed Consolidated Financial Statements for additional information.[3]Includes $0.6 million and $166.8 million of loans recorded at the FVO at June 30, 2022 and December 31, 2021, respectively.[4]Net of accumulated depreciation of $1.9 billion and $1.8 billion at June 30, 2022 and December 31, 2021, respectively.[5]Net of accumulated depreciation of $3.6 billion and $3.8 billion at June 30, 2022 and December 31, 2021, respectively.[6]Includes MSRs of $104.4 million and $79.1 million at June 30, 2022 and December 31, 2021, respectively, for which the Company has elected the FVO. See Note 13 to these Condensed Consolidated Financial Statements for additional information. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | |
Amortized cost | $ 8,616,108,000 | $ 11,409,953,000 | |
Held-to-maturity securities, fair value | $ 8,662,504,000 | $ 6,629,206,000 | |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 | |
Common stock, shares outstanding (in shares) | 530,391,043 | 530,391,043 | |
Loans held for investment, fair value | $ 26,200,000 | $ 33,500,000 | |
Loans held for sale | 600,000 | 166,800,000 | |
Accumulated depreciation | 1,900,000,000 | 1,800,000,000 | |
LHFI | [1],[2] | 92,762,061,000 | 92,075,812,000 |
LHFS | [2],[3] | 256,898,000 | 255,023,000 |
Operating lease assets, net | [2],[4] | 14,991,051,000 | 15,406,402,000 |
Restricted cash | [2] | 5,317,599,000 | 5,711,705,000 |
Other assets | [2],[5] | 4,599,269,000 | 3,335,423,000 |
Borrowings and other debt obligations | [2] | 43,160,191,000 | 41,133,187,000 |
Other liabilities | [2] | 2,052,094,000 | 1,119,897,000 |
Property, plant, and equipment, lessor asset under operating lease, accumulated depreciation | 3,600,000,000 | 3,800,000,000 | |
VIEs, Primary Beneficiary | |||
LHFI | 23,550,723,000 | 20,551,716,000 | |
LHFS | 0 | 0 | |
Operating lease assets, net | 12,158,701,000 | 14,668,336,000 | |
Restricted cash | 1,114,001,000 | 1,637,311,000 | |
Other assets | 687,474,000 | 629,364,000 | |
Borrowings and other debt obligations | 30,200,000,000 | 29,200,000,000 | |
Other liabilities | 121,928,000 | 81,098,000 | |
Residential mortgages | |||
Mortgage servicing rights | $ 104,400,000 | $ 79,100,000 | |
[1]LHFI includes $26.2 million and $33.5 million of loans recorded at fair value at June 30, 2022 and December 31, 2021, respectively.[2]The Company has interests in certain Trusts that are considered VIEs for accounting purposes. At June 30, 2022 and December 31, 2021, LHFI included $23.6 billion and $20.6 billion, LHFS included zero and zero , Operating leases assets, net included $12.2 billion and $14.7 billion, restricted cash included $1.1 billion and $1.6 billion, Other assets included $687.5 million and $629.4 million, Borrowings and other debt obligations included $30.2 billion and $29.2 billion, and Other liabilities included $121.9 million and $81.1 million of assets or liabilities that were included within VIEs, respectively. See Note 7 to these Condensed Consolidated Financial Statements for additional information.[3]Includes $0.6 million and $166.8 million of loans recorded at the FVO at June 30, 2022 and December 31, 2021, respectively.[4]Net of accumulated depreciation of $3.6 billion and $3.8 billion at June 30, 2022 and December 31, 2021, respectively.[5]Includes MSRs of $104.4 million and $79.1 million at June 30, 2022 and December 31, 2021, respectively, for which the Company has elected the FVO. See Note 13 to these Condensed Consolidated Financial Statements for additional information. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
INTEREST INCOME: | |||||
Loans | $ 1,684,265 | $ 1,756,852 | $ 3,329,349 | $ 3,622,563 | |
Interest-earning deposits | 30,670 | 6,381 | 38,744 | 11,564 | |
Interest and fees on federal funds sold and securities purchased under resale agreements or similar arrangements | 81,780 | 97 | 83,732 | 97 | |
Investment securities: | |||||
AFS | 31,647 | 24,568 | 65,331 | 50,622 | |
HTM | 39,734 | 24,829 | 70,891 | 50,264 | |
Trading securities | 34,327 | 0 | 34,327 | 0 | |
Other investments | 5,291 | 2,201 | 7,528 | 4,725 | |
TOTAL INTEREST INCOME | 1,907,714 | 1,814,928 | 3,629,902 | 3,739,835 | |
INTEREST EXPENSE: | |||||
Deposits and other customer accounts | 29,864 | 21,986 | 46,810 | 51,772 | |
Interest expense on federal funds purchased and securities loaned or sold under repurchase agreements | 84,682 | 22 | 85,525 | 20 | |
Interest expense on trading liabilities | 16,029 | 335 | 16,290 | 476 | |
Borrowings and other debt obligations | 243,727 | 260,750 | 467,860 | 536,400 | |
TOTAL INTEREST EXPENSE | 374,302 | 283,093 | 616,485 | 588,668 | |
NET INTEREST INCOME | 1,533,412 | 1,531,835 | 3,013,417 | 3,151,167 | |
Credit loss expense / (benefit) | 404,200 | (317,282) | 621,009 | (241,216) | |
NET INTEREST INCOME AFTER CREDIT LOSS EXPENSE / (BENEFIT) | 1,129,212 | 1,849,117 | 2,392,408 | 3,392,383 | |
NON-INTEREST INCOME: | |||||
Consumer and commercial fees | 100,334 | 106,926 | 197,824 | 226,145 | |
Capital market revenue | 44,316 | 60,146 | 109,075 | 141,935 | |
Lease income | 678,655 | 732,892 | 1,349,859 | 1,505,784 | |
Miscellaneous income, net | [1] | 115,334 | 276,953 | 249,183 | 477,675 |
TOTAL FEES AND OTHER INCOME | 938,639 | 1,176,917 | 1,905,941 | 2,351,539 | |
Net gain on sale of investment securities | 10,759 | 5,370 | 24,714 | 15,243 | |
TOTAL NON-INTEREST INCOME | 949,398 | 1,182,287 | 1,930,655 | 2,366,782 | |
GENERAL, ADMINISTRATIVE AND OTHER EXPENSES: | |||||
Compensation and benefits | 497,606 | 488,201 | 992,932 | 953,459 | |
Occupancy and equipment expenses | 150,589 | 168,415 | 302,138 | 340,491 | |
Technology, outside service, and marketing expense | 176,639 | 139,618 | 314,323 | 274,370 | |
Loan expense | 65,009 | 70,505 | 130,601 | 182,086 | |
Lease expense | 515,614 | 517,646 | 996,916 | 1,077,985 | |
Other expenses | 127,615 | 108,497 | 262,852 | 212,919 | |
TOTAL GENERAL, ADMINISTRATIVE AND OTHER EXPENSES | 1,533,072 | 1,492,882 | 2,999,762 | 3,041,310 | |
INCOME BEFORE INCOME TAX PROVISION | 545,538 | 1,538,522 | 1,323,301 | 2,717,855 | |
Income tax provision | 106,993 | 371,644 | 268,661 | 658,473 | |
NET INCOME INCLUDING NCI | 438,545 | 1,166,878 | 1,054,640 | 2,059,382 | |
LESS: NET INCOME ATTRIBUTABLE TO NCI | 0 | 208,256 | 0 | 353,713 | |
NET INCOME ATTRIBUTABLE TO SHUSA | $ 438,545 | $ 958,622 | $ 1,054,640 | $ 1,705,669 | |
[1]Includes equity investment income/(expense), net. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||||
NET INCOME INCLUDING NCI | $ 438,545 | $ 1,166,878 | $ 1,054,640 | $ 2,059,382 | |
OCI, NET OF TAX | |||||
Net unrealized changes in cash flow hedge derivative financial instruments, net of tax | [1] | (81,693) | (3,482) | (328,109) | (66,157) |
Net unrealized (losses) / gains on AFS investment securities, net of tax | [1] | (172,250) | 9,000 | (527,575) | (113,156) |
Pension and post-retirement actuarial gains, net of tax | 579 | 561 | 1,139 | 1,498 | |
TOTAL OCI/LOSS, NET OF TAX | (253,364) | 6,079 | (854,545) | (177,815) | |
COMPREHENSIVE INCOME | 185,181 | 1,172,957 | 200,095 | 1,881,567 | |
NET INCOME INCLUDING NCI | 0 | 208,256 | 0 | 353,713 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO SHUSA | $ 185,181 | $ 964,701 | $ 200,095 | $ 1,527,854 | |
[1]Excludes zero of OCI/(loss) attributable to NCI for the three-month and six-month periods ended June 30, 2022, respectively, compared to $1.1 million and $2.8 million for the corresponding periods in 2021 , respectively. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
OCI attributable to noncontrolling interest | $ 0 | $ 1.1 | $ 0 | $ 2.8 |
CONDENSED CONSOLIDATED STATMENT
CONDENSED CONSOLIDATED STATMENTS OF STOCKHOLDER'S EQUITY - USD ($) $ in Thousands | Total | Common Shares Outstanding | Common Stock and Paid-in Capital | Accumulated Other Comprehensive Income / (Loss) | Retained Earnings | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2020 | 530,391,000 | |||||
Beginning balance at Dec. 31, 2020 | $ 21,262,712 | $ 17,876,818 | $ 166,295 | $ 1,843,765 | $ 1,375,834 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income/(loss) attributable to SHUSA | 1,527,854 | (177,815) | 1,705,669 | |||
Other comprehensive income/(loss) attributable to NCI | 2,848 | 2,848 | ||||
Net income attributable to NCI | 353,713 | 353,713 | ||||
Impact of SC stock option activity | 5,564 | 5,564 | ||||
Dividends paid to NCI | (39,896) | (39,896) | ||||
Stock repurchase | (9,474) | (880) | (8,594) | |||
Ending balance (in shares) at Jun. 30, 2021 | 530,391,000 | |||||
Ending balance at Jun. 30, 2021 | 23,103,321 | 17,875,938 | (11,520) | 3,549,434 | 1,689,469 | |
Beginning balance (in shares) at Mar. 31, 2021 | 530,391,000 | |||||
Beginning balance at Mar. 31, 2021 | 21,940,666 | 17,875,938 | (17,599) | 2,590,812 | 1,491,515 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income/(loss) attributable to SHUSA | 964,701 | 6,079 | 958,622 | |||
Other comprehensive income/(loss) attributable to NCI | 1,056 | 1,056 | ||||
Net income attributable to NCI | 208,256 | 208,256 | ||||
Impact of SC stock option activity | 1,944 | 1,944 | ||||
Dividends paid to NCI | (13,302) | (13,302) | ||||
Ending balance (in shares) at Jun. 30, 2021 | 530,391,000 | |||||
Ending balance at Jun. 30, 2021 | $ 23,103,321 | 17,875,938 | (11,520) | 3,549,434 | 1,689,469 | |
Beginning balance (in shares) at Dec. 31, 2021 | 530,391,043 | 530,391,000 | ||||
Beginning balance at Dec. 31, 2021 | $ 24,467,350 | 17,875,938 | (188,110) | 4,826,127 | 1,953,395 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income/(loss) attributable to SHUSA | 200,095 | (854,545) | 1,054,640 | |||
Net income attributable to NCI | 0 | |||||
Distribution to shareholder | (1,250,000) | (1,250,000) | ||||
Stock repurchase | $ (2,535,722) | (582,327) | (1,953,395) | |||
Ending balance (in shares) at Jun. 30, 2022 | 530,391,043 | 530,391,000 | ||||
Ending balance at Jun. 30, 2022 | $ 20,881,723 | 17,293,611 | (1,042,655) | 4,630,767 | 0 | |
Beginning balance (in shares) at Mar. 31, 2022 | 530,391,000 | |||||
Beginning balance at Mar. 31, 2022 | 21,944,706 | 17,291,775 | (789,291) | 5,442,222 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income/(loss) attributable to SHUSA | 185,181 | (253,364) | 438,545 | |||
Net income attributable to NCI | 0 | |||||
Distribution to shareholder | (1,250,000) | (1,250,000) | ||||
Stock repurchase | $ 1,836 | 1,836 | ||||
Ending balance (in shares) at Jun. 30, 2022 | 530,391,043 | 530,391,000 | ||||
Ending balance at Jun. 30, 2022 | $ 20,881,723 | $ 17,293,611 | $ (1,042,655) | $ 4,630,767 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income including NCI | $ 1,054,640 | $ 2,059,382 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Credit loss expense/(benefit) | 621,009 | (241,216) | |
Deferred tax expense | 178,642 | 422,638 | |
Depreciation, amortization and accretion | 1,394,273 | 1,109,851 | |
Net gain on sale of loans | (3,418) | (19,829) | |
Net gain on sale of investment securities | (24,714) | (15,243) | |
Net gain on real estate owned, premises and equipment, and other | (4,576) | (3,008) | |
Equity loss on equity method investments | 1,878 | 16,990 | |
Originations of LHFS | (195,817) | (785,292) | |
Proceeds from sales of and collections on LHFS | [1] | 361,557 | 2,193,081 |
Net change in: | |||
Trading securities and trading liabilities, net | (691,653) | 0 | |
Revolving personal loans | 0 | 34,247 | |
Other assets and BOLI | (786,069) | 500,073 | |
Other liabilities | (21,719) | 406,540 | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,884,033 | 5,678,214 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from sales of AFS investment securities | 0 | 1,326,299 | |
Proceeds from prepayments and maturities of AFS investment securities | 1,287,162 | 2,553,165 | |
Purchases of AFS investment securities | (1,491,491) | (4,139,774) | |
Proceeds from prepayments and maturities of HTM investment securities | 717,996 | 992,041 | |
Purchases of HTM investment securities | (661,744) | (2,096,485) | |
Proceeds from sales of other investments | 104,615 | 37,865 | |
Proceeds from maturities of other investments | 250,000 | 250,000 | |
Purchases of other investments | (654,968) | (292,859) | |
Net change in federal funds sold and securities purchased under resale agreements | 2,237,227 | (552,826) | |
Proceeds from sales of LHFI | [2] | 412,324 | 2,404,935 |
Proceeds from the sales of equity method investments | 43,465 | 0 | |
Distributions from equity method investments | 5,643 | 3,763 | |
Contributions to equity method and other investments | (113,600) | (60,724) | |
Proceeds from settlements of BOLI policies | 16,950 | 16,157 | |
Purchases of LHFI | (649,184) | (981,368) | |
Net change in loans other than purchases and sales | (1,123,919) | (2,497,249) | |
Purchases and originations of operating leases | (3,505,160) | (4,280,352) | |
Proceeds from the sale and termination of operating leases | 2,876,948 | 3,608,952 | |
Manufacturer and dealer incentives (paid)/received | (30,943) | 90,334 | |
Proceeds from sales of real estate owned and premises and equipment | 3,221 | 28,845 | |
Purchases of premises and equipment | (84,157) | (108,847) | |
Acquisition of APS | (391,931) | 0 | |
NET CASH USED IN INVESTING ACTIVITIES | (751,546) | (3,698,128) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net change in deposits and other customer accounts | (7,124,061) | 5,564,690 | |
Net change in short-term borrowings | 2,694,811 | (187,385) | |
Net proceeds from long-term borrowings | 15,842,761 | 16,330,875 | |
Repayments of long-term borrowings | (16,455,069) | (19,289,478) | |
Repayments of FHLB advances (with terms greater than three months) | (250,000) | (300,000) | |
Net change in federal funds purchased and securities loaned or sold under repurchase agreements | (1,302,356) | 576,000 | |
Net change in advance payments by borrowers for taxes and insurance | 15,524 | 20,369 | |
Dividends paid on common stock | (1,250,000) | 0 | |
Dividends paid to NCI | 0 | (39,896) | |
Stock repurchase | (2,535,722) | (9,474) | |
Proceeds from the issuance of common stock | 0 | 514 | |
NET CASH (USED IN) / PROVIDED BY FINANCING ACTIVITIES | (10,364,112) | 2,666,215 | |
NET (DECREASE)/INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (9,231,625) | 4,646,301 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 25,017,235 | 17,924,741 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | [3] | 15,785,610 | 22,571,042 |
NON-CASH TRANSACTIONS | |||
Loans transferred to OREO | 19,329 | ||
Loans transferred from OREO | (30,812) | ||
Loans transferred from/(to) LHFI (from)/to LHFS, net | 507,587 | 96,711 | |
Unsettled purchases of investment securities | 72,338 | 343,824 | |
AFS investment securities transferred to HTM investment securities | $ 2,982,195 | $ 0 | |
[1]Includes sales proceeds from Bluestem portfolio sale of $608 million for loans originated as HFS for the year-to-date ended June 30, 2021.[2]Includes sales proceeds from Bluestem portfolio sale of $188 million for loans originated as HFI for the year-to-date ended June 30, 2021.[3]The years-to-date ended June 30, 2022 and 2021 include cash and cash equivalents balances of $10.5 billion and $16.5 billion, respectively, and restricted cash balances of $5.3 billion and $6.0 billion, respectively. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 USD ($) | ||
Proceeds from sales of and collections on LHFS | $ 2,193,081 | [1] |
Proceeds from sales of LHFI | 2,404,935 | [2] |
Cash and cash equivalents | 16,500,000 | |
Restricted cash | 6,000,000 | |
Consumer | Personal Loans | ||
Proceeds from sales of and collections on LHFS | 608,000 | |
Proceeds from sales of LHFI | $ 188,000 | |
[1]Includes sales proceeds from Bluestem portfolio sale of $608 million for loans originated as HFS for the year-to-date ended June 30, 2021.[2]Includes sales proceeds from Bluestem portfolio sale of $188 million for loans originated as HFI for the year-to-date ended June 30, 2021. |
DESCRIPTION OF BUSINESS, BASIS
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND ACCOUNTING POLICIES SHUSA is the parent holding company of SBNA, a national banking association; SC, a consumer finance company headquartered in Dallas, Texas; SSLLC, a broker-dealer headquartered in Boston, Massachusetts; BSI, a financial services company headquartered in Miami, Florida that offers a full range of banking services to foreign individuals and corporations based primarily in Latin America; SIS, a registered broker-dealer headquartered in New York providing services in investment banking, institutional sales, and trading and offering research reports of Latin American and European equity and fixed income securities; APS, an institutional fixed-income broker dealer headquartered in New York; and several other subsidiaries. SHUSA is headquartered in Boston and SBNA's home office is in Wilmington, Delaware. SSLLC is a registered investment adviser with the SEC. SHUSA's two largest subsidiaries by asset size and revenue are SBNA and SC. SHUSA is a wholly-owned subsidiary of Santander. Acquisitions Acquisition of SC Common Stock In August 2021, SHUSA entered into a definitive agreement whereby SHUSA agreed to acquire all of the outstanding shares of SC Common Stock not already owned by SHUSA via an all-cash tender offer and subsequent merger. Under the terms of the definitive agreement, a wholly-owned subsidiary of SHUSA commenced a tender offer to acquire all outstanding shares of SC Common Stock that SHUSA did not already own at a price of $41.50 per share in cash. SHUSA agreed to acquire all remaining shares not tendered in the ten der offer through a second-step merger at the same price as in the tender offer. Consummation of the tender offer was subject to various conditions, including regulatory approval by the Federal Reserve and other customary closing conditions. The transaction was completed on January 31, 2022, at which time SHUSA acquired the remaining 19.8% noncontrolling interest in SC for approximately $2.5 billion and SC became a wholly-owned subsidiary of SHUSA. As a result of the acquisition, Additional paid in capital was decreased by $582.3 million for the difference between the carrying value of the noncontrolling interest and the amount paid to acquire it. Acquisi tion o f Credit Agricole Miami Wealth Management Business In May 2021, BSI closed an agreement with Crédit Agricole Corporate and Investment Bank, S.A. to take over management of $3.1 billion in global wealth management client assets and liabilities for consideration of $189 million. The Company has recorded assets acquired of $566 million (including loans of $528 million and definite-lived intangible assets of approximately $38 million) and liabilities assumed, comprised of deposits of $377 million, at fair value. Intangible assets will be amortized over t he estimated useful life of six years. Acquisition of PCH On April 11, 2022 SHUSA acquired 100% ownership of PCH, parent company of APS, an institutional fixed-income broker dealer, for approximately $448 million. With the addition of PCH, the Company significantly enhances its infrastructure and capabilities as a market maker of U.S. fixed income capital markets and will provide a platform for self-clearing of fixed income securities, growing its institutional client footprint, and expanding its structuring and advisory capabilities for asset originators. PCH has approximately 230 employees serving more than 1,300 active institutional clients from its headquarters in New York and offices in Chicago, San Francisco, Austin, other U.S. locations and Hong Kong. The acquisition was accounted for as a business combination, with the assets and liabilities of PCH recorded at fair value. Fair value measurements are subject to refinement for up to one year after the closing date of the acquisition as additional information regarding closing date fair value becomes available. No material adjustments to the fair values disclosed below are expected. Goodwill of approximately $172 million was recorded and assigned to the CIB reporting unit. In addition to goodwill, the Company recorded $39 million of amortizing intangible assets, primarily related to customer relationships and acquired technology. Intangibles will be amortized over their estimated useful lives of nine and three years for customer relationships and technology, respectively. Immediately after the acquisition, SHUSA lent PCH $163 million (on an unsecured basis) which PCH used to pay off its existing third-party debt. NOTE 1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND ACCOUNTING POLICIES (continued) The following are fair values of the assets and liabilities of PCH on the acquisition date: Balance at April 11, 2022 (in thousands) Fair value of consideration transferred $ 447,722 Fair value of assets acquired: Cash and cash equivalents (includes restricted cash) $ 56,023 Other investments - trading assets at fair value $ 5,121,331 Fed funds sold and securities purchased under resale agreements or similar arrangements $ 10,638,695 Other intangible assets $ 39,520 Other assets including premises and equipment $ 185,830 Total assets acquired $ 16,041,399 Fair value of liabilities acquired: Accounts payable, accrued expenses, and other liabilities $ 537,701 Fed funds purchased and securities loaned or sold under repurchase agreements $ 12,047,503 Trading liabilities $ 3,013,646 Borrowings and other debt obligations $ 162,938 Total liabilities acquired $ 15,761,788 Fair value of net assets acquired $ 279,611 Deferred taxes on purchase accounting fair value adjustments $ (3,460) Goodwill recognized $ 171,571 If PCH had been acquired on January 1, 2022, SHUSA’s consolidated revenue and net income through June 30, 2022 would have been $5.7 billion and $1.1 billion, respectively. In its Consolidated Statement of Income for June 30, 2022, SHUSA has included revenues of $128 million and net loss of $8 million generated by PCH since the acquisition date. Cor e Business SBNA’s primary business consists of attracting deposits and providing other retail banking services through its network of retail branches, and originating small business loans, middle market, large and global commercial loans, multifamily loans, and auto and other consumer loans and leases throughout the Mid-Atlantic and Northeastern areas of the United States, principally located in Massachusetts, New Hampshire, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania, and Delaware. SBNA uses its deposits, as well as other financing sources, to fund its loan and investment portfolios. NOTE 1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND ACCOUNTING POLICIES (continued) SC is a specialized consumer finance company focused on vehicle finance and third-party servicing and delivering service to dealers and customers across the full credit spectrum. SC's primary business is the indirect origination and servicing of RICs and auto leases, principally through manufacturer-franchised dealers in connection with their sale of new and used vehicles to retail consumers. Additionally, SC sells consumer RICs through flow agreements and, when market conditions are favorable, it accesses the ABS market through securitizations of consumer RICs. SAF is SC’s primary vehicle financing brand, and is available as a finance option for automotive dealers across the United States. Since May 2013, under the MPLFA with Stellantis, SC has operated as Stellantis' preferred provider for consumer loans, leases, and dealer loans and provides services to Stellantis customers and dealers under the CCAP brand. These products and services include consumer RICs and leases, as well as dealer loans for inventory, construction, real estate, working capital and revolving lines of credit. In June 2022, SC launched a preferred lender, full spectrum financing program in partnership with Mitsubishi Motors North America, Inc. ("MMNA"), to provide customer and dealer financing programs that will help MMNA achieve its goal of improving the car-buying experience. SC also originates vehicle loans through a web-based direct lending program, purchases vehicle RICs from other lenders, and services automobile and recreational and marine vehicle portfolios for other lenders. Basis of Presentation These Condensed Consolidated Financial Statements include the accounts of the Company and its consolidated subsidiaries, including certain Trusts that are considered VIEs. The Company generally consolidates VIEs for which it is deemed to be the primary beneficiary and VOEs in which the Company has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. These Condensed Consolidated Financial Statements have been prepared in accordance with GAAP and pursuant to SEC regulations. In the opinion of management, the accompanying Condensed Consolidated Financial Statements reflect all adjustments of a normal and recurring nature necessary for a fair statement of the Consolidated Balance Sheets, Statements of Operations, Statements of Comprehensive Income, Statements of Stockholder's Equity and Statements of Cash Flow for the periods indicated, and contain adequate disclosure to make the information presented not misleading. Certain prior-year amounts have been reclassified to conform to the current year presentation. These reclassifications did not have a material impact on the Company's consolidated financial condition or results of operations. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates, and those differences may be material. The most significant estimates include the ACL, fair value measurements, expected end-of-term lease residual values, and goodwill. These estimates, although based on actual historical trends and modeling, may potentially show significant variances over time. Recently Adopted Accounting Standards Since January 1, 2022, the Company has not adopted any new accounting standards that had a material impact on the Company’s financial position or results of operations. Recently Issued Accounting Standards Not Yet Adopted In March 2022, the FASB issued ASU 2022-01 Derivatives and Hedging (Topic 815) Fair Value hedging – Portfolio Layer Method . This ASU expands the current last-of-layer method for fair value hedges of interest rate risk to allow multiple hedged layers of a closed portfolio. Under this updated guidance, entities can now hedge all financial assets under the portfolio layer method and designate multiple hedged layers within a single closed portfolio. The Company is evaluating the potential impact of the new standard on its hedge accounting program. NOTE 1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND ACCOUNTING POLICIES (continued) In March 2022, the FASB issued ASU 2022-02 Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructuring and Vintage Disclosures . This guidance removes the specific guidance for TDR designations and enhances disclosure requirements related to modifications of receivables made to borrowers experiencing financial difficulty. In addition, the standard requires disclosure of current-period gross write-offs by year of origination for financing receivables and net investment in leases. The new standard is effective January 1, 2023, and early adoption is permitted. The Company is evaluating the changes that will result from this standard. Subsequent Events The Company evaluated events from the date of these Condensed Consolidated Financial Statements on June 30, 2022 through the issuance of these Condensed Consolidated Financial Statements. Refer to disclosure of these transactions in Note 9 to these Condensed Consolidated Financial Statements as of June 30, 2022. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES Summary of Investments in Debt Securities - AFS and HTM The following table presents the amortized cost, gross unrealized gains and losses and approximate fair values of investments in debt securities AFS at the dates indicated: June 30, 2022 December 31, 2021 (in thousands) Amortized Gross Gross Fair Amortized Gross Gross Fair U.S. Treasury securities $ 238,191 $ — $ (2,166) $ 236,025 $ 72,860 $ 758 $ — $ 73,618 Corporate debt securities 270,907 1 (455) 270,453 275,963 140 (96) 276,007 ABS 524,758 157 (15,697) 509,218 537,835 353 (466) 537,722 MBS: GNMA - Residential 3,932,883 2 (226,028) 3,706,857 4,064,718 21,169 (19,692) 4,066,195 GNMA - Commercial 713,731 170 (69,239) 644,662 2,086,437 2,060 (55,658) 2,032,839 FHLMC and FNMA - Residential 2,833,528 137 (276,900) 2,556,765 4,267,757 14,616 (62,732) 4,219,641 FHLMC and FNMA - Commercial 102,110 19 (1,434) 100,695 104,383 3,591 (59) 107,915 Total investments in debt securities AFS $ 8,616,108 $ 486 $ (591,919) $ 8,024,675 $ 11,409,953 $ 42,687 $ (138,703) $ 11,313,937 The following table presents the amortized cost, gross unrealized gains and losses and approximate fair values of investments in debt securities HTM at the dates indicated: June 30, 2022 December 31, 2021 (in thousands) Amortized Gross Gross Fair Amortized Gross Gross Fair ABS $ 68,319 $ — $ (889) $ 67,430 $ 89,722 $ 319 $ — $ 90,041 MBS: GNMA - Residential 2,957,907 1,641 (314,941) 2,644,607 2,862,595 13,412 (45,102) 2,830,905 GNMA - Commercial 4,860,573 229 (402,995) 4,457,807 3,750,154 25,524 (67,418) 3,708,260 FHLMC and FNMA - Residential 1,550,968 139 (58,447) 1,492,660 — — — — Total investments in debt securities HTM $ 9,437,767 $ 2,009 $ (777,272) $ 8,662,504 $ 6,702,471 $ 39,255 $ (112,520) $ 6,629,206 As of June 30, 2022 and December 31, 2021, the Company had investment securities with an estimated carrying value of $5.1 billion and $5.3 billion, respectively, pledged as collateral, which were comprised of the following: $2.0 billion and $1.6 billion, respectively, were pledged as collateral for the Company's borrowing capacity with the FRB; $2.6 billion and $3.2 billion, respectively, were pledged to secure public fund deposits; $78.6 million and $72.6 million, respectively, were pledged to various independent parties to secure repurchase agreements, support hedging relationships, and for recourse on loan sales; and $315.5 million and $403.8 million, respectively, were pledged to secure the Company's customer overnight sweep product. The Company also participates in Securities Financing Activities discussed further in Note 11 to these Condensed Consolidated Financial Statements. At June 30, 2022 and December 31, 2021, the Company had $74.7 million and $26.9 million, respectively, of accrued interest related to investment securities which is included in the Other assets line of the Company's Condensed Consolidated Balance Sheets. No accrued interest related to investment securities was written off during the periods ended June 30, 2022 or December 31, 2021. During 2022, there were approximately $3.0 billion of transfers of debt securities from AFS to HTM. NOTE 2. INVESTMENT SECURITIES (continued) Contractual Maturity of Investments in Debt Securities Contractual maturities of the Company’s investments in debt securities AFS at June 30, 2022 were as follows: (in thousands) Amortized Cost Fair Value Due within one year $ 409,088 $ 406,595 Due after 1 year but within 5 years 158,881 157,777 Due after 5 years but within 10 years 347,907 337,573 Due after 10 years 7,700,232 7,122,730 Total $ 8,616,108 $ 8,024,675 Contractual maturities of the Company’s investments in debt securities HTM at June 30, 2022 were as follows: (in thousands) Amortized Cost Fair Value Due within one year $ — $ — Due after 1 year but within 5 years 33,522 32,634 Due after 5 years but within 10 years 41,341 41,175 Due after 10 years 9,362,904 8,588,695 Total $ 9,437,767 $ 8,662,504 Actual maturities may differ from contractual maturities when there is a right to call or prepay obligations with or without call or prepayment penalties. Gross Unrealized Loss and Fair Value of Investments in Debt Securities AFS and HTM The following table presents the aggregate amount of unrealized losses as of June 30, 2022 and December 31, 2021 on debt securities in the Company’s AFS investment portfolios classified according to the amount of time those securities have been in a continuous loss position: June 30, 2022 December 31, 2021 Less than 12 months 12 months or longer Less than 12 months 12 months or longer (in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. Treasury securities $ 236,121 $ (2,166) $ — $ — $ — $ — $ — $ — Corporate debt securities 269,518 (455) — — 173,255 (96) — — ABS 484,052 (15,425) 10,428 (272) 389,743 (205) 16,265 (261) MBS: GNMA - Residential 2,222,526 (132,428) 1,481,122 (93,600) 2,283,469 (19,068) 96,339 (624) GNMA - Commercial 435,810 (40,461) 197,350 (28,778) 1,795,619 (51,908) 89,640 (3,750) FHLMC and FNMA - Residential 2,100,402 (205,691) 386,000 (71,209) 3,315,452 (61,103) 109,769 (1,629) FHLMC and FNMA - Commercial 91,386 (1,434) — — 45,641 (59) — — Total investments in debt securities AFS $ 5,839,815 $ (398,060) $ 2,074,900 $ (193,859) $ 8,003,179 $ (132,439) $ 312,013 $ (6,264) NOTE 2. INVESTMENT SECURITIES (continued) The following table presents the aggregate amount of unrealized losses as of June 30, 2022 and December 31, 2021 on debt securities in the Company’s HTM investment portfolios classified according to the amount of time those securities have been in a continuous loss position: June 30, 2022 December 31, 2021 Less than 12 months 12 months or longer Less than 12 months 12 months or longer (in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized ABS $ 48,413 $ (645) $ 19,017 $ (244) $ — $ — $ — $ — MBS: GNMA - Residential $ 1,823,787 $ (194,067) $ 784,154 $ (120,874) $ 2,051,851 $ (42,284) $ 81,034 $ (2,818) GNMA - Commercial 3,482,656 (270,041) 952,033 (132,954) 2,515,603 (61,377) 124,655 (6,041) FHLMC and FNMA - Residential 1,391,460 (58,447) — — — — — — Total investments in debt securities HTM $ 6,746,316 $ (523,200) $ 1,755,204 $ (254,072) $ 4,567,454 $ (103,661) $ 205,689 $ (8,859) Allowance for credit-related losses on AFS securities The Company did not record an allowance for credit-related losses on AFS or HTM securities at June 30, 2022 or December 31, 2021. As discussed in Note 1, securities for which management has an expectation that nonpayment of the amortized cost basis is zero do not have a reserve. For securities that do not qualify for the zero credit loss expectation exception, management has concluded that the unrealized losses are not credit-related since (1) they are not related to the underlying credit quality of the issuers, (2) the entire contractual principal and interest due on these securities is currently expected to be recoverable, (3) the Company does not intend to sell these investments at a loss and (4) it is more likely than not that the Company will not be required to sell the investments before recovery of the amortized cost basis, which for the Company's debt securities may be at maturity. Gains (Losses) and Proceeds on Sales of Investment Securities Proceeds from sales of investment securities and the realized gross gains and losses from those sales were as follows: Three-Month Period Ended June 30, Six-Month Period Ended June 30 (in thousands) 2022 2021 2022 2021 Proceeds from the sales of AFS securities $ — $ 819,209 $ — $ 1,326,299 AFS debt and other securities: Gross realized gains $ — $ 8,196 $ — $ 18,267 Gross realized losses — (2,317) — (2,317) Net realized gains/(losses) on AFS and other securities $ — $ 5,879 $ — $ 15,950 Total trading securities gains/(losses) 10,759 (509) 12,234 (707) Total equity securities gains/(losses) — — 12,480 — Total realized gains/(losses) in income from investments $ 10,759 $ 5,370 $ 24,714 $ 15,243 The Company uses the specific identification method to determine the cost of the securities sold and the gain or loss recognized. Trading Securities The Company held $5.0 billion of trading securities as of June 30, 2022, compared to $35.8 million held at December 31, 2021. Gains and losses on trading securities are recorded within Net gain on sale of investment securities on the Company's Condensed Consolidated Statement of Operations. NOTE 2. INVESTMENT SECURITIES (continued) Other Investments Other investments consisted of the following as of: (in thousands) June 30, 2022 December 31, 2021 FHLB of Pittsburgh and FRB stock $ 481,959 $ 394,668 LIHTC investments 388,021 370,493 Equity securities not held for trading (1) 105,565 45,186 Interest-bearing deposits with an affiliate bank 400,000 250,000 Total $ 1,375,545 $ 1,060,347 (1) Includes $2.6 million and $3.0 million of equity certificates related to an off-balance sheet securitization as of June 30, 2022 and December 31, 2021, respectively. Other investments primarily include the Company's investment in the stock of the FHLB of Pittsburgh and the FRB. These stocks do not have readily determinable fair values because their ownership is restricted and there is no market for their sale. The stocks can be sold back only at their par value of $100 per share, and FHLB stock can be sold back only to the FHLB or to another member institution. Accordingly, these stocks are carried at cost. During the three-month and six-month periods ended June 30, 2022, respectively, the Company purchased $185.0 million and $185.1 million of FHLB stock at par, and redeemed $87.4 million and $87.6 million of FHLB stock at par. The Company purchased zero and $6.3 million of FRB stock at par, and redeemed $14.0 million and $16.5 million of FRB stock at par during the three-month and six-month periods ended June 30, 2022, respectively. There was no gain or loss associated with these redemptions. The Company's LIHTC investments are accounted for using the proportional amortization method. Equity securities are measured at fair value as of June 30, 2022, with changes in fair value recognized in net income, and consist primarily of CRA mutual fund investments. Interest-bearing deposits include deposits maturing in more than 90 days with Santander affiliates that are not consolidated. With the exception of equity and trading securities, which are measured at fair value, the Company evaluates these other investments for impairment based on the ultimate recoverability of the carrying value, rather than by recognizing temporary declines in value. The Company held an immaterial amount of equity securities without readily determinable fair values at the reporting date. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | =640 4,267,152 7,005,071 3,208,471 1,965,546 499,937 128,528 17,074,705 39.1 % Total $ 11,117,645 $ 16,644,961 $ 7,700,631 $ 4,965,127 $ 2,119,586 $ 1,151,120 $ 43,699,070 100.0 % (1) Loans originated during the year-to-date ended June 30, 2022. (2) Consists primarily of loans for which credit scores are not available or are not considered in the ALLL model. (3) Excludes LHFS. As of December 31, 2021 RICs and auto loans (dollars in thousands) Amortized Cost by Origination Year (3) Credit Score Range 2021 (1) 2020 2019 2018 2017 Prior Total Percent No FICO (2) $ 1,427,962 $ 733,752 $ 449,965 $ 244,829 $ 201,129 $ 108,766 $ 3,166,403 7.4 % <600 7,410,017 3,768,302 2,574,070 1,488,371 580,881 515,318 16,336,959 37.8 % 600-639 3,574,644 1,585,530 1,056,397 537,222 165,318 141,316 7,060,427 16.3 % >=640 8,793,804 4,169,473 2,681,160 718,312 122,569 133,991 16,619,309 38.5 % Total $ 21,206,427 $ 10,257,057 $ 6,761,592 $ 2,988,734 $ 1,069,897 $ 899,391 $ 43,183,098 100.0 % (1) Loans originated during the year ended December 31, 2021. (2) Consists primarily of loans for which credit scores are not available or are not considered in the ALLL model. (3) Excludes LHFS. Consumer Lending Asset Quality Indicators-FICO and LTV Ratio For both residential and home equity loans, loss severity assumptions are incorporated in the loan and lease loss reserve models to estimate loan balances that will ultimately charge off. These assumptions are based on recent loss experience within various current LTV bands within these portfolios. LTVs are refreshed quarterly by applying Federal Housing Finance Agency Home price index changes at a state-by-state level to the last known appraised value of the property to estimate the current LTV. The Company's CECL loss calculation incorporates the refreshed LTV information to update the distribution of defaulted loans by LTV as well as the associated LGD for each LTV band. Reappraisals on a recurring basis at the individual property level are not considered cost-effective or necessary; however, reappraisals are performed on certain higher risk accounts to support line management activities, default servicing decisions, or when other situations arise for which the Company believes the additional expense is warranted. FICO scores are refreshed quarterly, where possible. The indicators disclosed represent the credit scores for loans as of the date presented based on the most recent assessment performed. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) Residential mortgage and home equity financing receivables by LTV and FICO range are summarized as follows: As of June 30, 2022 Amortized Cost by Origination Year (4) (dollars in thousands) Residential mortgages (1) 2022 2021 2020 2019 2018 Prior Grand Total Revolving Loans LTV Ratios (3) No LTV available (2) $ 19,312 $ 55 $ 46 $ 31 $ 16 $ 1,471 $ 20,931 $ — <= 70% 107,529 865,529 833,864 549,604 314,422 2,036,908 4,707,856 — 70.01% - 110% 97,976 291,558 134,537 105,659 3,194 11,357 644,281 — Greater than 110% — — — — — 1,662 1,662 — Total Residential mortgages $ 224,817 $ 1,157,142 $ 968,447 $ 655,294 $ 317,632 $ 2,051,398 $ 5,374,730 $ — FICO Scores No FICO score available $ 19,312 $ 54 $ 45 $ 30 $ 15 $ 2,797 $ 22,253 $ — <600 — 6,975 5,160 18,611 16,930 93,562 141,238 — 600-679 12,109 43,154 42,440 56,562 41,251 212,482 407,998 — 680-759 81,900 294,065 252,001 200,493 105,819 557,164 1,491,442 — >=760 111,496 812,894 668,801 379,598 153,617 1,185,393 3,311,799 — Total Residential mortgages $ 224,817 $ 1,157,142 $ 968,447 $ 655,294 $ 317,632 $ 2,051,398 $ 5,374,730 $ — Home equity (1) LTV Ratios No LTV available (2) $ 1,570 $ 2,949 $ 3,363 $ 3,984 $ 5,120 $ 64,158 $ 81,144 $ 50,135 <= 70% 31,542 150,973 224,025 281,229 367,411 2,009,093 3,064,273 2,978,683 70.01% - 110% 16,356 42,396 4,187 4,041 82 54,074 121,136 117,394 Greater than 110% 1,503 1,423 47 — — 4,826 7,799 7,775 Total Home equity $ 50,971 $ 197,741 $ 231,622 $ 289,254 $ 372,613 $ 2,132,151 $ 3,274,352 $ 3,153,987 FICO Scores No FICO score available $ 818 $ 2,568 $ 3,008 $ 3,758 $ 4,839 $ 62,547 $ 77,538 $ 46,526 <600 — 521 2,143 4,243 10,734 123,416 141,057 122,899 600-679 1,441 6,989 11,988 23,025 35,146 269,626 348,215 326,895 680-759 18,192 69,526 76,658 92,875 122,033 665,230 1,044,514 1,026,444 >=760 30,520 118,137 137,825 165,353 199,861 1,011,332 1,663,028 1,631,223 Total Home equity $ 50,971 $ 197,741 $ 231,622 $ 289,254 $ 372,613 $ 2,132,151 $ 3,274,352 $ 3,153,987 (1) Loans originated during the year-to-date ended June 30, 2022. (2) Balances in the "No LTV available" or "No FICO Score available" ranges primarily represent loans serviced by others, in run-off portfolios or for which a current LTV or FICO score is unavailable. (3) The ALLL model considers LTV for financing receivables in first lien position and CLTV for financing receivables in second lien position for the Company. (4) Excludes LHFS. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) December 31, 2021 Amortized Cost by Origination Year (4) (dollars in thousands) Residential mortgages (1) 2021 2020 2019 2018 2017 Prior Grand Total Revolving Loans LTV Ratios (3) No LTV available (2) $ 11,605 $ 907 $ 676 $ 338 $ 469 $ 3,076 $ 17,071 $ — <= 70% $ 747,090 $ 831,112 $ 517,103 $ 293,784 $ 497,556 $ 1,812,989 $ 4,699,634 $ — 70.01% - 110% $ 393,105 $ 189,115 $ 204,931 $ 68,892 $ 7,450 $ 15,705 $ 879,198 $ — Greater than 110% $ — $ — $ — $ — $ — $ 2,657 $ 2,657 $ — Total Residential mortgages $ 1,151,800 $ 1,021,134 $ 722,710 $ 363,014 $ 505,475 $ 1,834,427 $ 5,598,560 $ — FICO Scores No FICO score available $ 11,604 $ 1,621 $ 677 $ 337 $ 954 $ 5,103 $ 20,296 $ — <600 $ 2,356 $ 4,719 $ 15,894 $ 16,995 $ 17,879 $ 83,310 $ 141,153 $ — 600-679 $ 30,763 $ 39,681 $ 61,969 $ 37,104 $ 39,283 $ 192,786 $ 401,586 $ — 680-759 $ 372,215 $ 257,513 $ 235,167 $ 126,926 $ 147,159 $ 513,020 $ 1,652,000 $ — >=760 $ 734,862 $ 717,600 $ 409,003 $ 181,652 $ 300,200 $ 1,040,208 $ 3,383,525 $ — Total Residential mortgages $ 1,151,800 $ 1,021,134 $ 722,710 $ 363,014 $ 505,475 $ 1,834,427 $ 5,598,560 $ — Home equity (1) LTV Ratios No LTV available (2) $ 1,850 $ 3,003 $ 3,923 $ 4,911 $ 4,808 $ 69,090 $ 87,585 $ 50,651 <= 70% $ 127,313 $ 231,024 $ 297,239 $ 378,399 $ 359,912 $ 1,844,786 $ 3,238,673 $ 3,146,199 70.01% - 110% $ 40,483 $ 8,133 $ 11,149 $ 6,781 $ 817 $ 80,152 $ 147,515 $ 140,959 Greater than 110% $ 3,357 $ 622 $ — $ — $ — $ 9,482 $ 13,461 $ 13,370 Total Home equity $ 173,003 $ 242,782 $ 312,311 $ 390,091 $ 365,537 $ 2,003,510 $ 3,487,234 $ 3,351,179 FICO Scores No FICO score available $ 1,908 $ 3,121 $ 4,133 $ 4,935 $ 4,879 $ 68,603 $ 87,579 $ 50,671 <600 $ 146 $ 782 $ 3,795 $ 10,135 $ 12,063 $ 111,661 $ 138,582 $ 121,597 600-679 $ 3,330 $ 8,417 $ 22,910 $ 35,437 $ 32,485 $ 257,159 $ 359,738 $ 338,378 680-759 $ 64,036 $ 80,209 $ 103,691 $ 129,182 $ 132,671 $ 626,942 $ 1,136,731 $ 1,111,686 >=760 $ 103,583 $ 150,253 $ 177,782 $ 210,402 $ 183,439 $ 939,145 $ 1,764,604 $ 1,728,847 Total Home equity $ 173,003 $ 242,782 $ 312,311 $ 390,091 $ 365,537 $ 2,003,510 $ 3,487,234 $ 3,351,179 (1) Loans originated during the year-to-date ended December 31, 2021. (2) Balances in the "No LTV available" or "No FICO Score available" ranges primarily represent loans serviced by others, in run-off portfolios or for which a current LTV or FICO score is unavailable. (3) The ALLL model considers LTV for financing receivables in first lien position and CLTV for financing receivables in second lien position for the Company. (4) Excludes LHFS. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) TDR Loans The following table summarizes the Company’s performing and non-performing TDRs at the dates indicated: (in thousands) June 30, 2022 December 31, 2021 Performing $ 3,017,047 $ 3,641,593 Non-performing 518,132 607,824 Total (1) $ 3,535,179 $ 4,249,417 (1) Excludes LHFS. TDR Activity by Class of Financing Receivable The Company's modifications consist primarily of term extensions. The following tables detail the activity of TDRs for the three-month and six-month periods ended June 30, 2022 and 2021: Three-Month Period Ended June 30, 2022 Number of Pre-TDR Amortized Cost (1) Post-TDR Amortized Cost (2) (dollars in thousands) Commercial: C&I 30 1,404 1,404 Multi-family 9 7,168 7,168 Other commercial 2 9 9 Consumer: Residential mortgages (3) 3 488 493 Home equity loans and lines of credit 24 3,589 3,847 RICs and auto loans 8,868 156,579 156,341 Total 8,936 $ 169,237 $ 169,262 Six-month period ended June 30, 2022 Number of Pre-TDR Amortized Cost (1) Post-TDR Amortized Cost (2) (dollars in thousands) Commercial: CRE 45 $ 7,465 $ 7,465 C&I 234 7,108 7,110 Multi-family 17 7,168 7,168 Other commercial 12 228 228 Consumer: Residential mortgages (3) 19 4,970 4,970 Home equity loans and lines of credit 64 8,456 8,760 RICs and auto loans 17,650 308,172 307,774 Personal unsecured loans 1 23 23 Other consumer 1 1,250 1,250 Total 18,043 $ 344,840 $ 344,748 (1) Pre-TDR modification amount is the month-end balance prior to the month in which the modification occurred. (2) Post-TDR modification amount is the month-end balance for the month in which the modification occurred. (3) The post-TDR modification amounts for residential mortgages exclude interest reserves. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) Three-Month Period Ended June 30, 2021 Number of Pre-TDR Recorded (1) Post-TDR Recorded Investment (2) (dollars in thousands) Commercial: CRE 8 $ 36,053 $ 36,053 C&I 59 28,077 28,079 Multi-family 2 29,370 29,370 Other commercial 16 1,018 1,018 Consumer: Residential mortgages (3) 250 74,617 74,500 Home equity loans and lines of credit 323 49,310 49,555 RICs and auto loans 11,772 226,011 226,574 Personal unsecured loans 52 751 743 Other consumer 7 182 172 Total 12,489 $ 445,389 $ 446,064 Six-month period ended June 30, 2021 Number of Pre-TDR Recorded (1) Post-TDR Recorded Investment (2) (dollars in thousands) Commercial: CRE 11 $ 44,005 $ 44,005 C&I 370 43,589 43,647 Multi-family 2 29,370 29,370 Other commercial 180 14,653 14,653 Consumer: Residential mortgages (3) 343 94,726 94,490 Home equity loans and lines of credit 366 53,852 54,303 RICs and auto loans 57,437 1,179,830 1,185,882 Personal unsecured loans 77 999 987 Other consumer 16 590 580 Total 58,802 $ 1,461,614 $ 1,467,917 (" id="sjs-B4">LOANS AND ALLOWANCE FOR CREDIT LOSSES Overall The Company's LHFI are generally reported at their outstanding principal balances net of any cumulative charge-offs, unamortized deferred fees and costs and unamortized premiums or discounts. Certain LHFI are accoun ted for at fair value under the FVO. Certain loans are pledged as collateral for borrowings, securitizations, or SPEs. These loans totaled $44.8 billion at June 30, 2022 and $43.2 billion at December 31, 2021. Loans that the Company intends to sell are classified as LHFS. The LHFS portfolio balance at June 30, 2022 was $256.9 million, compared to $255.0 million at December 31, 2021. For a discussion on the valuation of LHFS at fair value, see Note 13 to these Condensed Consolidated Financial Statements. LHFS in the residential mortgage portfolio that were originated with the intent to sell were $591.0 thousand as of June 30, 2022 and are reported at either estimated fair value (if the FVO is elected) or the lower of cost or fair value. Interest on loans is credited to income as it is earned. Loan origination fees and certain direct loan origination costs are deferred and recognized as adjustments to interest income in the Condensed Consolidated Statements of Operations over the contractual life of the loan utilizing the interest method. Loan origination costs and fees and premiums and discounts on RICs are deferred and recognized in interest income over their estimated lives using estimated prepayment speeds, which are updated on a monthly basis. At June 30, 2022 and December 31, 2021, accrued interest receivable on the Company's loans was $471.8 million and $453.0 million, respectively. Purchased receivables During the quarter ended June 30, 2022, SBNA approved and completed purchases of performing personal unsecured loans with a UPB of approximately $286.1 million. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) Loan and Lease Portfolio Composition The following presents the composition of loans and leases HFI by portfolio and by rate type: June 30, 2022 December 31, 2021 (dollars in thousands) Amount Percent Amount Percent Commercial LHFI: CRE loans $ 7,607,459 8.2 % $ 7,227,003 7.8 % C&I loans 13,140,429 14.2 % 14,710,864 16.0 % Multifamily loans 8,183,802 8.8 % 7,547,382 8.2 % Other commercial (2)(4) 8,161,743 8.8 % 8,170,031 8.9 % Total commercial LHFI 37,093,433 40.0 % 37,655,280 40.9 % Consumer loans secured by real estate: Residential mortgages 5,374,730 5.8 % 5,598,560 6.1 % Home equity loans and lines of credit 3,274,352 3.5 % 3,487,234 3.8 % Total consumer loans secured by real estate 8,649,082 9.3 % 9,085,794 9.9 % Consumer loans not secured by real estate: RICs and auto loans 43,699,070 47.1 % 43,183,098 46.9 % Personal unsecured loans 3,207,390 3.5 % 2,009,654 2.2 % Other consumer (3) 113,086 0.1 % 141,986 0.1 % Total consumer loans 55,668,628 60.0 % 54,420,532 59.1 % Total LHFI (1) $ 92,762,061 100.0 % $ 92,075,812 100.0 % Total LHFI: Fixed rate $ 65,142,714 70.2 % $ 64,774,941 70.3 % Variable rate 27,619,347 29.8 % 27,300,871 29.7 % Total LHFI (1) $ 92,762,061 100.0 % $ 92,075,812 100.0 % (1) Total LHFI includes deferred loan fees, net of deferred origination costs and unamortized purchase premiums, net of discounts as well as purchase accounting adjustments. These items resulted in a net increase in the loan balances of $2.8 billion and $2.9 billion as of June 30, 2022 and December 31, 2021, respectively. (2) Other commercial includes CEVF leveraged leases and loans. (3) Other consumer primarily includes RV and marine loans. (4) Includes loans with a carrying value of $257.2 million and $128.8 million as of June 30, 2022 and December 31, 2021, respectively, for which a fair value hedge is recorded resulting in a fair value adjustment of $25.5 million and $1.3 million as of June 30, 2022 and December 31, 2021 respectively. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) Portfolio segments and classes The Company discloses information about the credit quality of its financing receivables at disaggregated levels, specifically defined as “portfolio segments” and “classes,” based on management’s systematic methodology for determining the ACL. The Company utilizes similar categorization compared to the financial statement categorization of loans to model and calculate the ACL and track the credit quality, delinquency and impairment status of the underlying loan populations. In disaggregating its financing receivables portfolio, the Company’s methodology begins with the commercial and consumer segments. The commercial segmentation reflects line of business distinctions. The CRE line of business includes C&I owner-occupied real estate and specialized lending for investment real estate. C&I includes non-real estate-related commercial loans. "Multifamily" represents loans for multifamily residential housing units. “Other commercial” includes loans to global customer relationships in Latin America which are not defined as commercial or consumer for regulatory purposes. The remainder of the portfolio primarily represents the CEVF portfolio. The Company's portfolio classes are substantially the same as its financial statement categorization of loans for consumer loan populations. “Residential mortgages” includes mortgages on residential property, including single family and 1-4 family units. "Home equity loans and lines of credit" include all organic home equity contracts and purchased home equity portfolios. "RICs and auto loans" includes the Company's direct automobile loan portfolios, but excludes RV and marine RICs. "Personal unsecured loans" includes personal revolving loans and credit cards. “Other consumer” includes an acquired portfolio of marine RICs and RV contracts. ACL Rollforward by Portfolio Segment The ACL is comprised of the ALLL and the reserve for unfunded lending commitments. The activity in the ACL by portfolio segment for the three-month and six-month periods ended June 30, 2022 and 2021 was as follows: Three-Month Period Ended June 30, 2022 (in thousands) Commercial Consumer Total ALLL, beginning of period $ 557,331 $ 5,847,900 $ 6,405,231 Credit loss expense / (benefit) 11,801 397,655 409,456 Charge-offs (14,451) (820,061) (834,512) Recoveries 14,225 560,849 575,074 Charge-offs, net of recoveries (226) (259,212) (259,438) ALLL, end of period $ 568,906 $ 5,986,343 $ 6,555,249 Reserve for unfunded lending commitments, beginning of period (1) $ 80,309 $ 11,120 $ 91,429 Credit loss expense / (benefit) on unfunded lending commitments (4,597) (659) (5,256) Reserve for unfunded lending commitments, end of period 75,712 10,461 86,173 Total ACL, end of period $ 644,618 $ 5,996,804 $ 6,641,422 Six-Month Period Ended June 30, 2022 (in thousands) Commercial Consumer Total ALLL, beginning of period $ 567,309 $ 5,894,101 $ 6,461,410 Credit loss expense / (benefit) 403 638,527 638,930 Charge-offs (30,620) (1,701,097) (1,731,717) Recoveries 31,814 1,154,812 1,186,626 Charge-offs, net of recoveries 1,194 (546,285) (545,091) ALLL, end of period $ 568,906 $ 5,986,343 $ 6,555,249 Reserve for unfunded lending commitments, beginning of period $ 91,191 $ 12,903 $ 104,094 Credit loss expense / (benefit) on unfunded lending commitments (15,479) (2,442) (17,921) Reserve for unfunded lending commitments, end of period 75,712 10,461 86,173 Total ACL, end of period $ 644,618 $ 5,996,804 $ 6,641,422 NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) Three-Month Period Ended June 30, 2021 (in thousands) Commercial Consumer Total ALLL, beginning of period $ 716,347 $ 6,443,808 $ 7,160,155 Credit loss expense / (benefit) (47,609) (269,568) (317,177) Charge-offs (40,058) (561,326) (601,384) Recoveries 12,835 634,886 647,721 Charge-offs, net of recoveries (27,223) 73,560 46,337 ALLL, end of period $ 641,515 $ 6,247,800 $ 6,889,315 Reserve for unfunded lending commitments, beginning of period $ 100,317 $ 24,072 $ 124,389 Credit loss expense / (benefit) on unfunded lending commitments 1,160 (1,265) (105) Reserve for unfunded lending commitments, end of period 101,477 22,807 124,284 Total ACL, end of period $ 742,992 $ 6,270,607 $ 7,013,599 Six-month period ended June 30, 2021 (in thousands) Commercial Consumer Total ALLL, beginning of period $ 752,196 $ 6,586,297 $ 7,338,493 Credit loss expense / (benefit) (69,458) (149,586) (219,044) Charge-offs (79,687) (1,388,715) (1,468,402) Recoveries 38,464 1,199,804 1,238,268 Charge-offs, net of recoveries (41,223) (188,911) (230,134) ALLL, end of period $ 641,515 $ 6,247,800 $ 6,889,315 Reserve for unfunded lending commitments, beginning of period $ 119,129 $ 27,326 $ 146,455 Credit loss expense / (benefit) on unfunded lending commitments (17,652) (4,519) (22,171) Reserve for unfunded lending commitments, end of period 101,477 22,807 124,284 Total ACL, end of period $ 742,992 $ 6,270,607 $ 7,013,599 The credit risk in the Company’s loan portfolios is driven by credit and collateral quality, and is affected by borrower-specific and economy-wide factors. In general, there is an inverse relationship between the credit quality of loans and projections of impairment losses so that loans with better credit quality require a lower expected loss reserve. The Company manages this risk through its underwriting, pricing strategies, credit policy standards, and servicing guidelines and practices, as well as the application of geographic and other concentration limits. The Company estimates CECL based on prospective information as well as account-level models based on historical data. Unemployment, HPI, CRE price index and used vehicle index growth rates, along with loan level characteristics, are the key inputs used in the models for prediction of the likelihood that the borrower will default in the forecasted period (the PD) and the loss in the event of default (the LGD). GDP is also a key input used in the models for the prediction of the likelihood that a borrower will default. The Company has determined the reasonable and supportable period to be three years, at which time the economic forecasts generally tend to revert to historical averages. The Company also utilizes qualitative adjustments to capture any additional risks that may not be captured in either the economic forecasts or in the historical data, including consideration of several factors such as the interpretation of economic trends and uncertainties, changes in the nature and volume of loan portfolios, trends in delinquency and collateral values, and concentration risk. The Company generally uses a third-party vendor's consensus baseline macroeconomic scenario for the quantitative estimate and additional positive and negative macroeconomic scenarios to make qualitative adjustments for macroeconomic uncertainty and considers adjustments to macroeconomic inputs and outputs based on market volatility. The Company's allowance for loan losses increased by $93.8 million from December 31, 2021 to June 30, 2022, primarily due to a deterioration in the macroeconomic outlook. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) Non-accrual loans by Class of Financing Receivable The amortized cost basis of financing receivables that are either non-accrual with related expected credit loss or non-accrual without related expected credit loss disaggregated by class of financing receivables and other non-performing assets is as follows: Non-accrual loans as of: (1) Non-accrual loans with no allowance (in thousands) June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Non-accrual loans: Commercial: CRE $ 30,936 $ 31,752 $ 25,047 $ 24,112 C&I 88,481 69,754 11,016 35,965 Multifamily 53,872 103,299 53,615 103,138 Other commercial 9,428 9,036 5,604 5,472 Total commercial loans 182,717 213,841 95,282 168,687 Consumer: Residential mortgages 98,755 123,548 48,695 71,463 Home equity loans and lines of credit 82,643 88,310 36,289 39,693 RICs and auto loans 1,502,251 1,467,928 193,013 202,193 Personal unsecured loans 3,907 2,892 — — Other consumer 384 1,047 35 16 Total consumer loans 1,687,940 1,683,725 278,032 313,365 Total non-accrual loans 1,870,657 1,897,566 373,314 482,052 OREO 4,462 3,724 — — Repossessed vehicles 262,988 247,757 — — Foreclosed and other repossessed assets 482 294 — — Total OREO and other repossessed assets 267,932 251,775 — — Total non-performing assets $ 2,138,589 $ 2,149,341 $ 373,314 $ 482,052 (1) Interest income recognized on nonaccrual loans was $34.2 million and $71.9 million, for the three-month and six-month periods ended June 30, 2022, respectively, and $20.5 million and $46.7 million. for the three-month and six-month periods ended June 30, 2021, respectively. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) Age Analysis of Past Due Loans The Company generally considers an account delinquent when an obligor fails to pay substantially all (defined as 90%) of the scheduled payment by the due date. When an account is deferred, the loan is returned to accrual status during the deferral period and accrued interest related to the loan is evaluated for collectability. The amortized cost of past due loans and accruing loans 90 days or greater past due disaggregated by class of financing receivables is summarized as follows: As of: June 30, 2022 (in thousands) 30-89 90 Total Current Total Amortized Cost Commercial: CRE (2) $ 7,985 $ 5,145 $ 13,130 $ 7,606,281 $ 7,619,411 $ — C&I (1) 43,600 10,139 53,739 13,290,943 13,344,682 — Multifamily 25,351 — 25,351 8,158,451 8,183,802 — Other commercial (3) 98,376 2,368 100,744 8,101,101 8,201,845 7 Consumer: Residential mortgages (4) 64,489 88,262 152,751 5,222,570 5,375,321 — Home equity loans and lines of credit 20,021 61,673 81,694 3,192,658 3,274,352 — RICs and auto loans 3,815,801 217,755 4,033,556 39,665,514 43,699,070 — Personal unsecured loans 17,181 8,096 25,277 3,182,113 3,207,390 2,852 Other consumer 3,251 425 3,676 109,410 113,086 — Total $ 4,096,055 $ 393,863 $ 4,489,918 $ 88,529,041 $ 93,018,959 $ 2,859 (1) C&I loans includes $204.3 million of LHFS at June 30, 2022. (2) CRE loans includes $12.0 million of LHFS at June 30, 2022. (3) Other Commercial loans includes $40.1 million of LHFS at June 30, 2022. (4) Residential mortgages includes $591 thousand of LHFS at June 30, 2022. As of December 31, 2021 (in thousands) 30-89 90 Total Current Total Recorded Commercial: CRE $ 4,287 $ 8,775 $ 13,062 $ 7,213,941 $ 7,227,003 $ — C&I (1) 31,475 19,862 51,337 14,747,739 14,799,076 — Multifamily 336 2,574 2,910 7,544,472 7,547,382 — Other commercial 77,842 2,674 80,516 8,089,515 8,170,031 — Consumer: Residential mortgages (2) 83,626 89,403 173,029 5,592,342 5,765,371 — Home equity loans and lines of credit 22,871 63,306 86,177 3,401,057 3,487,234 — RICs and auto loans 3,535,402 324,150 3,859,552 39,323,546 43,183,098 — Personal unsecured loans 10,361 5,206 15,567 1,994,087 2,009,654 2,314 Other consumer 3,493 564 4,057 137,929 141,986 — Total $ 3,769,693 $ 516,514 $ 4,286,207 $ 88,044,628 $ 92,330,835 $ 2,314 (1) C&I loans included $88.2 million of LHFS at December 31, 2021. (2) Residential mortgages included $166.8 million of LHFS at December 31, 2021. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) Commercial Lending Asset Quality Indicators The Company's Risk Department performs a credit analysis and classifies certain loans over an internal threshold based on the commercial lending classifications described below: PASS. Asset is well-protected by the current net worth and paying capacity of the obligor or guarantors, if any, or by the fair value less costs to acquire and sell any underlying collateral in a timely manner. SPECIAL MENTION. Asset has potential weaknesses that deserve management’s close attention, which, if left uncorrected, may result in deterioration of the repayment prospects for an asset at some future date. Special mention assets are not adversely classified. SUBSTANDARD. Asset is inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. A well-defined weakness or weaknesses exist that jeopardize the liquidation of the debt. The loans are characterized by the distinct possibility that the Company will sustain some loss if deficiencies are not corrected. DOUBTFUL. Exhibits the inherent weaknesses of a substandard credit. Additional characteristics exist that make collection or liquidation in full highly questionable and improbable, on the basis of currently known facts, conditions and values. Possibility of loss is extremely high, but because of certain important and reasonable specific pending factors which may work to the advantage and strengthening of the credit, an estimated loss cannot yet be determined. LOSS. Credit is considered uncollectible and of such little value that it does not warrant consideration as an active asset. There may be some recovery or salvage value, but there is doubt as to whether, how much or when the recovery would occur. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) Each commercial loan is evaluated to determine its risk rating at least annually. The indicators represent the rating for loans as of the date presented based on the most recent assessment performed. Amortized cost basis of loans in the commercial portfolio segment by credit quality indicator, class of financing receivable, and year of origination are summarized as follows: June 30, 2022 Commercial Loan Portfolio (2) (dollars in thousands) Amortized Cost by Origination Year Regulatory Rating: 2022 (1) 2021 2020 2019 2018 Prior Total (3) CRE Pass $ 542,324 $ 1,265,319 $ 1,592,313 $ 1,330,450 $ 790,324 $ 1,493,901 $ 7,014,631 Special mention — — 16,962 47,807 120,091 78,540 263,400 Substandard — 35,869 25,702 92,037 69,165 118,607 341,380 Total CRE $ 542,324 $ 1,301,188 $ 1,634,977 $ 1,470,294 $ 979,580 $ 1,691,048 $ 7,619,411 C&I Pass $ 1,159,464 $ 2,948,324 $ 2,276,105 $ 1,780,137 $ 912,707 $ 2,312,048 $ 11,388,785 Special mention — 19,528 71,149 157,398 49,708 35,960 333,743 Substandard — 162,565 44,877 7,104 80,731 199,961 495,238 Doubtful — — 26,041 — — — 26,041 N/A 338,579 412,309 193,369 125,116 26,861 4,641 1,100,875 Total C&I $ 1,498,043 $ 3,542,726 $ 2,611,541 $ 2,069,755 $ 1,070,007 $ 2,552,610 $ 13,344,682 Multifamily Pass $ 1,445,254 $ 1,550,187 $ 747,023 $ 1,412,490 $ 763,590 $ 1,258,132 $ 7,176,676 Special mention — 21,860 5,020 53,386 49,132 53,862 183,260 Substandard — 8,032 87,698 201,897 309,372 216,867 823,866 Total Multifamily $ 1,445,254 $ 1,580,079 $ 839,741 $ 1,667,773 $ 1,122,094 $ 1,528,861 $ 8,183,802 Remaining commercial Pass $ 2,360,480 $ 2,515,377 $ 1,141,957 $ 762,566 $ 350,669 $ 1,052,341 $ 8,183,390 Special mention — — — — 4,108 283 4,391 Substandard — 3,305 613 5,322 1,792 3,032 14,064 Total Remaining commercial $ 2,360,480 $ 2,518,682 $ 1,142,570 $ 767,888 $ 356,569 $ 1,055,656 $ 8,201,845 Total commercial loans Pass $ 5,507,522 $ 8,279,207 $ 5,757,398 $ 5,285,643 $ 2,817,290 $ 6,116,422 $ 33,763,482 Special mention — 41,388 93,131 258,591 223,039 168,645 784,794 Substandard — 209,771 158,890 306,360 461,060 538,467 1,674,548 Doubtful — — 26,041 — — — 26,041 N/A 338,579 412,309 193,369 125,116 26,861 4,641 1,100,875 Total commercial loans $ 5,846,101 $ 8,942,675 $ 6,228,829 $ 5,975,710 $ 3,528,250 $ 6,828,175 $ 37,349,740 (1) Loans originated during the year-to-date ended June 30, 2022. (2) Includes $256.3 million of LHFS at June 30, 2022. (3) Includes $312.4 million revolving loans converted to term loans. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) December 31, 2021 Commercial Loan Portfolio (2) (dollars in thousands) Amortized Cost by Origination Year Regulatory Rating: 2021 (1) 2020 2019 2018 2017 Prior Total (3) CRE Pass $ 986,225 $ 1,283,784 $ 1,308,729 $ 918,097 $ 446,715 $ 1,512,165 $ 6,455,715 Special mention — 9,490 26,892 118,103 117,703 35,135 307,323 Substandard 20,291 11,896 131,169 138,652 42,965 118,992 463,965 Total CRE $ 1,006,516 $ 1,305,170 $ 1,466,790 $ 1,174,852 $ 607,383 $ 1,666,292 $ 7,227,003 C&I Pass $ 3,828,736 $ 3,213,214 $ 2,179,598 $ 1,179,065 $ 574,141 $ 2,042,111 $ 13,016,865 Special mention 11,003 32,268 154,820 31,026 25,176 98,964 353,257 Substandard 62,742 62,305 11,859 50,384 47,020 197,121 431,431 N/A 511,609 258,315 176,542 39,942 5,959 5,156 997,523 Total C&I $ 4,414,090 $ 3,566,102 $ 2,522,819 $ 1,300,417 $ 652,296 $ 2,343,352 $ 14,799,076 Multifamily Pass $ 1,575,287 $ 740,684 $ 1,522,367 $ 820,900 $ 729,510 $ 905,967 $ 6,294,715 Special mention 4,850 — 101,375 71,031 15,125 35,449 227,830 Substandard 3,981 83,994 233,045 345,510 135,289 223,018 1,024,837 Total Multifamily $ 1,584,118 $ 824,678 $ 1,856,787 $ 1,237,441 $ 879,924 $ 1,164,434 $ 7,547,382 Remaining commercial Pass $ 3,753,502 $ 1,864,509 $ 952,428 $ 446,979 $ 260,112 $ 858,640 $ 8,136,170 Special mention 2,959 — 3,007 5,169 625 1,741 13,501 Substandard 287 569 7,196 2,214 1,786 8,308 20,360 Total Remaining commercial $ 3,756,748 $ 1,865,078 $ 962,631 $ 454,362 $ 262,523 $ 868,689 $ 8,170,031 Total commercial loans Pass $ 10,143,750 $ 7,102,191 $ 5,963,122 $ 3,365,041 $ 2,010,478 $ 5,318,883 $ 33,903,465 Special mention 18,812 41,758 286,094 225,329 158,629 171,289 901,911 Substandard 87,301 158,764 383,269 536,760 227,060 547,439 1,940,593 N/A 511,609 258,315 176,542 39,942 5,959 5,156 997,523 Total commercial loans $ 10,761,472 $ 7,561,028 $ 6,809,027 $ 4,167,072 $ 2,402,126 $ 6,042,767 $ 37,743,492 (1) Loans originated during the year ended December 31, 2021. (2) Includes $88.2 million of LHFS at December 31, 2021. (3) Includes $362.7 million revolving loans converted to term loans. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) Consumer Lending Asset Quality Indicators-Credit Score Consumer financing receivables for which either an internal or external credit score is a core component of the allowance model are summarized by credit score determined at origination as follows: As of June 30, 2022 RICs and auto loans (dollars in thousands) Amortized Cost by Origination Year (3) Credit Score Range 2022 (1) 2021 2020 2019 2018 Prior Total Percent No FICO (2) $ 802,876 $ 1,061,233 $ 526,315 $ 325,661 $ 173,185 $ 165,379 $ 3,054,649 7.0 % <600 3,886,037 5,805,279 2,801,565 1,901,938 1,068,394 676,655 16,139,868 36.9 % 600-639 2,161,580 2,773,378 1,164,280 771,982 378,070 180,558 7,429,848 17.0 % >=640 4,267,152 7,005,071 3,208,471 1,965,546 499,937 128,528 17,074,705 39.1 % Total $ 11,117,645 $ 16,644,961 $ 7,700,631 $ 4,965,127 $ 2,119,586 $ 1,151,120 $ 43,699,070 100.0 % (1) Loans originated during the year-to-date ended June 30, 2022. (2) Consists primarily of loans for which credit scores are not available or are not considered in the ALLL model. (3) Excludes LHFS. As of December 31, 2021 RICs and auto loans (dollars in thousands) Amortized Cost by Origination Year (3) Credit Score Range 2021 (1) 2020 2019 2018 2017 Prior Total Percent No FICO (2) $ 1,427,962 $ 733,752 $ 449,965 $ 244,829 $ 201,129 $ 108,766 $ 3,166,403 7.4 % <600 7,410,017 3,768,302 2,574,070 1,488,371 580,881 515,318 16,336,959 37.8 % 600-639 3,574,644 1,585,530 1,056,397 537,222 165,318 141,316 7,060,427 16.3 % >=640 8,793,804 4,169,473 2,681,160 718,312 122,569 133,991 16,619,309 38.5 % Total $ 21,206,427 $ 10,257,057 $ 6,761,592 $ 2,988,734 $ 1,069,897 $ 899,391 $ 43,183,098 100.0 % (1) Loans originated during the year ended December 31, 2021. (2) Consists primarily of loans for which credit scores are not available or are not considered in the ALLL model. (3) Excludes LHFS. Consumer Lending Asset Quality Indicators-FICO and LTV Ratio For both residential and home equity loans, loss severity assumptions are incorporated in the loan and lease loss reserve models to estimate loan balances that will ultimately charge off. These assumptions are based on recent loss experience within various current LTV bands within these portfolios. LTVs are refreshed quarterly by applying Federal Housing Finance Agency Home price index changes at a state-by-state level to the last known appraised value of the property to estimate the current LTV. The Company's CECL loss calculation incorporates the refreshed LTV information to update the distribution of defaulted loans by LTV as well as the associated LGD for each LTV band. Reappraisals on a recurring basis at the individual property level are not considered cost-effective or necessary; however, reappraisals are performed on certain higher risk accounts to support line management activities, default servicing decisions, or when other situations arise for which the Company believes the additional expense is warranted. FICO scores are refreshed quarterly, where possible. The indicators disclosed represent the credit scores for loans as of the date presented based on the most recent assessment performed. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) Residential mortgage and home equity financing receivables by LTV and FICO range are summarized as follows: As of June 30, 2022 Amortized Cost by Origination Year (4) (dollars in thousands) Residential mortgages (1) 2022 2021 2020 2019 2018 Prior Grand Total Revolving Loans LTV Ratios (3) No LTV available (2) $ 19,312 $ 55 $ 46 $ 31 $ 16 $ 1,471 $ 20,931 $ — <= 70% 107,529 865,529 833,864 549,604 314,422 2,036,908 4,707,856 — 70.01% - 110% 97,976 291,558 134,537 105,659 3,194 11,357 644,281 — Greater than 110% — — — — — 1,662 1,662 — Total Residential mortgages $ 224,817 $ 1,157,142 $ 968,447 $ 655,294 $ 317,632 $ 2,051,398 $ 5,374,730 $ — FICO Scores No FICO score available $ 19,312 $ 54 $ 45 $ 30 $ 15 $ 2,797 $ 22,253 $ — <600 — 6,975 5,160 18,611 16,930 93,562 141,238 — 600-679 12,109 43,154 42,440 56,562 41,251 212,482 407,998 — 680-759 81,900 294,065 252,001 200,493 105,819 557,164 1,491,442 — >=760 111,496 812,894 668,801 379,598 153,617 1,185,393 3,311,799 — Total Residential mortgages $ 224,817 $ 1,157,142 $ 968,447 $ 655,294 $ 317,632 $ 2,051,398 $ 5,374,730 $ — Home equity (1) LTV Ratios No LTV available (2) $ 1,570 $ 2,949 $ 3,363 $ 3,984 $ 5,120 $ 64,158 $ 81,144 $ 50,135 <= 70% 31,542 150,973 224,025 281,229 367,411 2,009,093 3,064,273 2,978,683 70.01% - 110% 16,356 42,396 4,187 4,041 82 54,074 121,136 117,394 Greater than 110% 1,503 1,423 47 — — 4,826 7,799 7,775 Total Home equity $ 50,971 $ 197,741 $ 231,622 $ 289,254 $ 372,613 $ 2,132,151 $ 3,274,352 $ 3,153,987 FICO Scores No FICO score available $ 818 $ 2,568 $ 3,008 $ 3,758 $ 4,839 $ 62,547 $ 77,538 $ 46,526 <600 — 521 2,143 4,243 10,734 123,416 141,057 122,899 600-679 1,441 6,989 11,988 23,025 35,146 269,626 348,215 326,895 680-759 18,192 69,526 76,658 92,875 122,033 665,230 1,044,514 1,026,444 >=760 30,520 118,137 137,825 165,353 199,861 1,011,332 1,663,028 1,631,223 Total Home equity $ 50,971 $ 197,741 $ 231,622 $ 289,254 $ 372,613 $ 2,132,151 $ 3,274,352 $ 3,153,987 (1) Loans originated during the year-to-date ended June 30, 2022. (2) Balances in the "No LTV available" or "No FICO Score available" ranges primarily represent loans serviced by others, in run-off portfolios or for which a current LTV or FICO score is unavailable. (3) The ALLL model considers LTV for financing receivables in first lien position and CLTV for financing receivables in second lien position for the Company. (4) Excludes LHFS. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) December 31, 2021 Amortized Cost by Origination Year (4) (dollars in thousands) Residential mortgages (1) 2021 2020 2019 2018 2017 Prior Grand Total Revolving Loans LTV Ratios (3) No LTV available (2) $ 11,605 $ 907 $ 676 $ 338 $ 469 $ 3,076 $ 17,071 $ — <= 70% $ 747,090 $ 831,112 $ 517,103 $ 293,784 $ 497,556 $ 1,812,989 $ 4,699,634 $ — 70.01% - 110% $ 393,105 $ 189,115 $ 204,931 $ 68,892 $ 7,450 $ 15,705 $ 879,198 $ — Greater than 110% $ — $ — $ — $ — $ — $ 2,657 $ 2,657 $ — Total Residential mortgages $ 1,151,800 $ 1,021,134 $ 722,710 $ 363,014 $ 505,475 $ 1,834,427 $ 5,598,560 $ — FICO Scores No FICO score available $ 11,604 $ 1,621 $ 677 $ 337 $ 954 $ 5,103 $ 20,296 $ — <600 $ 2,356 $ 4,719 $ 15,894 $ 16,995 $ 17,879 $ 83,310 $ 141,153 $ — 600-679 $ 30,763 $ 39,681 $ 61,969 $ 37,104 $ 39,283 $ 192,786 $ 401,586 $ — 680-759 $ 372,215 $ 257,513 $ 235,167 $ 126,926 $ 147,159 $ 513,020 $ 1,652,000 $ — >=760 $ 734,862 $ 717,600 $ 409,003 $ 181,652 $ 300,200 $ 1,040,208 $ 3,383,525 $ — Total Residential mortgages $ 1,151,800 $ 1,021,134 $ 722,710 $ 363,014 $ 505,475 $ 1,834,427 $ 5,598,560 $ — Home equity (1) LTV Ratios No LTV available (2) $ 1,850 $ 3,003 $ 3,923 $ 4,911 $ 4,808 $ 69,090 $ 87,585 $ 50,651 <= 70% $ 127,313 $ 231,024 $ 297,239 $ 378,399 $ 359,912 $ 1,844,786 $ 3,238,673 $ 3,146,199 70.01% - 110% $ 40,483 $ 8,133 $ 11,149 $ 6,781 $ 817 $ 80,152 $ 147,515 $ 140,959 Greater than 110% $ 3,357 $ 622 $ — $ — $ — $ 9,482 $ 13,461 $ 13,370 Total Home equity $ 173,003 $ 242,782 $ 312,311 $ 390,091 $ 365,537 $ 2,003,510 $ 3,487,234 $ 3,351,179 FICO Scores No FICO score available $ 1,908 $ 3,121 $ 4,133 $ 4,935 $ 4,879 $ 68,603 $ 87,579 $ 50,671 <600 $ 146 $ 782 $ 3,795 $ 10,135 $ 12,063 $ 111,661 $ 138,582 $ 121,597 600-679 $ 3,330 $ 8,417 $ 22,910 $ 35,437 $ 32,485 $ 257,159 $ 359,738 $ 338,378 680-759 $ 64,036 $ 80,209 $ 103,691 $ 129,182 $ 132,671 $ 626,942 $ 1,136,731 $ 1,111,686 >=760 $ 103,583 $ 150,253 $ 177,782 $ 210,402 $ 183,439 $ 939,145 $ 1,764,604 $ 1,728,847 Total Home equity $ 173,003 $ 242,782 $ 312,311 $ 390,091 $ 365,537 $ 2,003,510 $ 3,487,234 $ 3,351,179 (1) Loans originated during the year-to-date ended December 31, 2021. (2) Balances in the "No LTV available" or "No FICO Score available" ranges primarily represent loans serviced by others, in run-off portfolios or for which a current LTV or FICO score is unavailable. (3) The ALLL model considers LTV for financing receivables in first lien position and CLTV for financing receivables in second lien position for the Company. (4) Excludes LHFS. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) TDR Loans The following table summarizes the Company’s performing and non-performing TDRs at the dates indicated: (in thousands) June 30, 2022 December 31, 2021 Performing $ 3,017,047 $ 3,641,593 Non-performing 518,132 607,824 Total (1) $ 3,535,179 $ 4,249,417 (1) Excludes LHFS. TDR Activity by Class of Financing Receivable The Company's modifications consist primarily of term extensions. The following tables detail the activity of TDRs for the three-month and six-month periods ended June 30, 2022 and 2021: Three-Month Period Ended June 30, 2022 Number of Pre-TDR Amortized Cost (1) Post-TDR Amortized Cost (2) (dollars in thousands) Commercial: C&I 30 1,404 1,404 Multi-family 9 7,168 7,168 Other commercial 2 9 9 Consumer: Residential mortgages (3) 3 488 493 Home equity loans and lines of credit 24 3,589 3,847 RICs and auto loans 8,868 156,579 156,341 Total 8,936 $ 169,237 $ 169,262 Six-month period ended June 30, 2022 Number of Pre-TDR Amortized Cost (1) Post-TDR Amortized Cost (2) (dollars in thousands) Commercial: CRE 45 $ 7,465 $ 7,465 C&I 234 7,108 7,110 Multi-family 17 7,168 7,168 Other commercial 12 228 228 Consumer: Residential mortgages (3) 19 4,970 4,970 Home equity loans and lines of credit 64 8,456 8,760 RICs and auto loans 17,650 308,172 307,774 Personal unsecured loans 1 23 23 Other consumer 1 1,250 1,250 Total 18,043 $ 344,840 $ 344,748 (1) Pre-TDR modification amount is the month-end balance prior to the month in which the modification occurred. (2) Post-TDR modification amount is the month-end balance for the month in which the modification occurred. (3) The post-TDR modification amounts for residential mortgages exclude interest reserves. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) Three-Month Period Ended June 30, 2021 Number of Pre-TDR Recorded (1) Post-TDR Recorded Investment (2) (dollars in thousands) Commercial: CRE 8 $ 36,053 $ 36,053 C&I 59 28,077 28,079 Multi-family 2 29,370 29,370 Other commercial 16 1,018 1,018 Consumer: Residential mortgages (3) 250 74,617 74,500 Home equity loans and lines of credit 323 49,310 49,555 RICs and auto loans 11,772 226,011 226,574 Personal unsecured loans 52 751 743 Other consumer 7 182 172 Total 12,489 $ 445,389 $ 446,064 Six-month period ended June 30, 2021 Number of Pre-TDR Recorded (1) Post-TDR Recorded Investment (2) (dollars in thousands) Commercial: CRE 11 $ 44,005 $ 44,005 C&I 370 43,589 43,647 Multi-family 2 29,370 29,370 Other commercial 180 14,653 14,653 Consumer: Residential mortgages (3) 343 94,726 94,490 Home equity loans and lines of credit 366 53,852 54,303 RICs and auto loans 57,437 1,179,830 1,185,882 Personal unsecured loans 77 999 987 Other consumer 16 590 580 Total 58,802 $ 1,461,614 $ 1,467,917 ( |
OPERATING LEASE ASSETS, NET
OPERATING LEASE ASSETS, NET | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
OPERATING LEASE ASSETS, NET | OPERATING LEASE ASSETS, NET The Company has operating leases, including leased vehicles and commercial equipment vehicles and aircraft, which are included in the Company's Condensed Consolidated Balance Sheets as Operating lease assets, net. Income continues to accrue during the extension period and remaining lease payments are recorded on a straight-line basis over the modified lease term. Operating lease assets, net consisted of the following as of June 30, 2022 and December 31, 2021: (in thousands) June 30, 2022 December 31, 2021 Leased vehicles $ 18,902,822 $ 19,662,593 Less: accumulated depreciation (3,577,183) (3,789,882) Depreciated net capitalized cost 15,325,639 15,872,711 Manufacturer subvention payments, net of accretion (502,184) (604,104) Origination fees and other costs 166,075 136,013 Leased vehicles, net 14,989,530 15,404,620 Commercial equipment vehicles and aircraft, gross 2,515 2,677 Less: accumulated depreciation (994) (895) Commercial equipment vehicles and aircraft, net 1,521 1,782 Total operating lease assets, net $ 14,991,051 $ 15,406,402 The following summarizes the future minimum rental payments due to the Company as lessor under operating leases as of June 30, 2022 (in thousands): 2022 $ 1,220,285 2023 1,971,973 2024 909,203 2025 178,392 2026 8,217 Thereafter 8 Total $ 4,288,078 During the three-month and six-month periods ended, June 30, 2022, the Company recognized $20.2 million and $46.3 million, respectively, of net gains on the sale of operating lease assets that had been returned to the Company at the end of the lease term. compared to $178.5 million and $286.8 million, respectively, recognized during the three-month and six-month periods ended, June 30, 2021. These amounts are recorded within Miscellaneous income, net in the Company's Condensed Consolidated Statements of Operations. |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES Goodwill Goodwill is assigned to reporting units, which are operating segments or one level below an operating segment, as of the acquisition date. The following table presents the roll-forward of the Company's goodwill by its reporting units for the quarter ended June 30, 2022: (in thousands) Auto CBB C&I CRE CIB SC Total Goodwill at December 31, 2021 $ — $ 297,802 $ 52,198 $ 1,095,071 $ 131,130 $ 1,019,960 $ 2,596,161 Additions during the period — — — — 171,571 — 171,571 Re-allocation of goodwill 1,238,676 (138,776) — (79,940) — (1,019,960) — Goodwill at June 30, 2022 $ 1,238,676 $ 159,026 $ 52,198 $ 1,015,131 $ 302,701 $ — $ 2,767,732 NOTE 5. GOODWILL AND OTHER INTANGIBLES (continued) During the quarter ended June 30, 2022, there were no disposals impairments, or re-allocations of goodwill. During the second quarter, the Company added $171.6 million of goodwill associated with the acquisition of PCH, attributable to the CIB reporting unit During the first quarter of 2022, In connection with the Company's organizational changes discussed further in Note 18 to these Condensed Consolidated Financial Statements, the Company has created a new Auto reportable segment and has re-allocated a portion of its goodwill based on the relative fair value of business activities moved from the CBB and CRE reporting units and moved all of the goodwill from the SC reporting unit to the Auto reporting unit. Prior to the re-allocation, and upon completion of the re-allocation, the Company performed updated impairment tests for affected reporting units and determined that no impairment existed. The Company evaluates goodwill for impairment at the reporting unit level. The Company completes its annual goodwill impairment test as of October 1 of each year. The Company conducted its last annual goodwill impairment tests as of October 1, 2021 using generally accepted valuation methods. As a result of that impairment test, no goodwill impairment was identified. Other Intangible Assets The following table details amounts related to the Company's intangible assets subject to amortization for the dates indicated. June 30, 2022 December 31, 2021 (in thousands) Net Carrying Accumulated Net Carrying Accumulated Intangibles subject to amortization: Dealer networks $ 272,208 $ (197,792) $ 283,958 $ (186,042) Stellantis relationship 13,815 (124,935) 20,000 (118,750) Other intangibles 68,864 (54,366) 35,121 (48,541) Total intangibles subject to amortization $ 354,887 $ (377,093) $ 339,079 $ (353,333) At June 30, 2022 and December 31, 2021, the Company did not have any intangibles, other than goodwill, that were not subject to amortization. During the second quarter of 2022, the Company added intangibles of $39 million related to the acquisition of PCH. Amortization expense on intangible assets was $10.5 million and $23.0 million and $10.7 million and $22.0 million for the three-month and six-month periods ended June 30, 2022 and 2021, respectively. The estimated aggregate amortization expense related to intangibles, excluding any impairment charges, for each of the five succeeding calendar years ending December 31 is: Year Calendar Year Amount Recorded To Date Remaining Amount To Record (in thousands) 2022 $ 45,711 $ 23,034 $ 22,677 2023 43,204 — 43,204 2024 39,085 — 39,085 2025 34,685 — 34,685 2026 32,512 — 32,512 Thereafter 182,724 — 182,724 |
OTHER ASSETS
OTHER ASSETS | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS The following is a detail of items that comprised Other assets at June 30, 2022 and December 31, 2021: (in thousands) June 30, 2022 December 31, 2021 Operating lease ROU assets $ 522,133 $ 531,408 Deferred tax assets 146,939 87,931 Accrued interest receivable 561,264 482,469 Derivative assets at fair value 956,984 661,080 Other repossessed assets 263,470 248,051 Equity method investments 265,482 260,010 MSRs 104,411 79,107 OREO 4,462 3,724 Income tax receivables 399,239 173,060 Prepaid expense 566,936 283,909 Miscellaneous assets and receivables 807,949 524,674 Total Other assets $ 4,599,269 $ 3,335,423 Operating lease ROU assets We have operating leases for real estate and non-real estate assets. Real estate leases relate to office space and bank/lending retail branches. Non-real estate leases include disaster recovery centers, data centers, ATMs, vehicles and certain equipment leases. Real estate leases may include one or more options to renew, with renewal terms that can extend the lease term generally from one For the three-month and six-month periods ended June 30, 2022, operating lease expenses were $31.0 million and $62.3 million, respectively, compared to $37.1 million and $76.8 million for the corresponding periods in 2021. Sublease income was $1.0 million and $1.9 million, respectively for the three-month and six-month periods ended June 30, 2022 compared to $1.2 million and $2.3 million for the corresponding periods in 2021.These are reported within Occupancy and equipment expenses in the Company’s Condensed Consolidated Statements of Operations. NOTE 6. OTHER ASSETS (continued) Supplemental balance sheet information related to leases was as follows: Maturity of Lease Liabilities at June 30, 2022 Total Operating leases (in thousands) 2022 $ 70,269 2023 128,803 2024 115,043 2025 89,947 2026 62,726 Thereafter 164,190 Total lease liabilities $ 630,978 Less: Interest (53,710) Present value of lease liabilities $ 577,268 Supplemental Balance Sheet Information June 30, 2022 December 31, 2021 Operating lease ROU assets $522,133 $531,408 Other liabilities $577,268 $593,137 Weighted-average remaining lease term (years) 6.4 6.4 Weighted-average discount rate 2.9% 2.8% Six-Month Period Ended June 30 Other Information 2022 2021 (in thousands) Operating cash flows from operating leases (1) $ (73,160) $ (70,260) Leased assets obtained in exchange for new operating lease liabilities $ 41,147 $ 32,527 (1) Activity is included within the net change in other liabilities on the SCF. The remainder of Other assets is comprised of: • Deferred tax asset, net - Refer to Note 15 of these Condensed Consolidated Financial Statements for more information on tax-related activities. • Derivative assets at fair value - Refer to the "Offsetting of Financial Assets" table in Note 12 to these Condensed Consolidated Financial Statements for the detail of these amounts. • Equity method investments - The Company makes certain equity investments in various limited partnerships, some of which are considered VIEs, that invest in and lend to qualified community development entities, such as renewable energy investments, through the NMTC and CRA programs. The Company acts only in a limited partner capacity in connection with these partnerships, so the Company has determined that it is not the primary beneficiary of the partnerships because it does not have the power to direct the activities of the partnerships that most significantly impact the partnerships' economic performance. • MSRs - See further discussion on the valuation of the MSRs in Note 13. • Income tax receivables - Refer to Note 15 of these Condensed Consolidated Financial Statements for more information on tax-related activities. • OREO and other repossessed assets includes property and vehicles recovered through foreclosure and repossession. |
VIEs
VIEs | 6 Months Ended |
Jun. 30, 2022 | |
Variable Interest Entity and Securitizations [Abstract] | |
VIEs | VIEs The Company transfers RICs and vehicle leases into newly-formed Trusts that then issue one or more classes of notes payable backed by the collateral. The Company’s continuing involvement with these Trusts is in the form of servicing the assets and, generally, through holding residual interests in the Trusts. The Trusts are considered VIEs under GAAP, and the Company may or may not consolidate these VIEs on its Condensed Consolidated Balance Sheets. The collateral, borrowings under credit facilities and securitization notes payable of the Company’s consolidated VIEs remain on the Condensed Consolidated Balance Sheets. The Company recognizes finance charges, fee income, and provision for credit losses on the RICs, and leased vehicles and interest expense on the debt. Revolving credit facilities generally also utilize entities that are considered VIEs which are included on the Condensed Consolidated Balance Sheets. The Company also uses a titling Trust to originate and hold its leased vehicles and the associated leases, in order to facilitate the pledging of leases to financing facilities or the sale of leases to other parties without incurring the costs and administrative burden of retitling the leased vehicles. This titling Trust is considered a VIE. On-balance sheet VIEs The assets of consolidated VIEs presented based upon the legal transfer of the underlying assets in order to reflect legal ownership, that can be used only to settle obligations of the consolidated VIEs and the liabilities of those entities for which creditors (or beneficial interest holders) do not have recourse to the Company's general credit, were as follows: (in thousands) June 30, 2022 December 31, 2021 Assets Restricted cash $ 1,114,001 $ 1,637,311 LHFI 23,550,723 20,551,716 Operating lease assets, net 12,158,701 14,668,336 Various other assets 687,474 629,364 Total Assets $ 37,510,899 $ 37,486,727 Liabilities Notes payable $ 30,152,326 $ 29,199,966 Various other liabilities 121,928 81,098 Total Liabilities $ 30,274,254 $ 29,281,064 Certain amounts shown above are greater than the amounts shown in the corresponding line items in the accompanying Condensed Consolidated Balance Sheets due to intercompany eliminations between the VIEs and other entities consolidated by the Company. For example, for most of its securitizations, the Company retains one or more of the lowest tranches of bonds. Rather than showing investment in bonds as an asset and the associated debt as a liability, these amounts are eliminated in consolidation as required by GAAP. The Company retains servicing rights for receivables transferred to the Trusts and receives a monthly servicing fee on the outstanding principal balance. Supplemental fees, such as late charges, for servicing the receivables are reflected in Miscellaneous income, net. As of June 30, 2022 and December 31, 2021, the Company was servicing $27.7 billion and $24.3 billion, respectively, of gross RICs that have been transferred to consolidated Trusts. The remainder of the Company’s RICs remain unpledged. NOTE 7. VIEs (continued) A summary of the cash flows received from the consolidated Trusts for the respective periods is as follows: Three-Month Period Ended June 30, Six-Month Period Ended June 30 (in thousands) 2022 2021 2022 2021 Assets securitized $ 3,497,142 $ 7,238,608 $ 8,657,428 $ 11,361,659 Net proceeds from new securitizations (1) $ 2,091,900 $ 5,990,485 $ 6,141,620 $ 9,576,609 Net proceeds from sale of retained bonds 645,370 132,186 1,029,746 195,967 Cash received for servicing fees (2) 223,836 230,408 461,429 458,595 Net distributions from Trusts (2) 1,092,535 1,903,257 2,206,898 3,043,634 Total cash received from Trusts $ 4,053,641 $ 8,256,336 $ 9,839,693 $ 13,274,805 (1) Includes additional advances on existing securitizations. (2) These amounts are not reflected in the SCF because the cash flows are between the VIEs and other entities included in the consolidation. Off-balance sheet VIEs During the three-month and six-month periods ended June 30, 2022, SC sold no gross RICs to third-party investors in off-balance sheet securitizations and recorded no gain or loss on securitization. During the three-month period ended June 30, 2021, SC sold no gross RICs to third-party investors in off-balance sheet securitizations and recorded no gain or loss on securitization. During the six-month period ended June 30, 2021, SC sold $1.9 billion of gross RICs to third-party investors in off-balance sheet securitizations and recorded a gain of $7.2 million. Gains and losses on securitizations are recorded in Miscellaneous income, net, in the accompanying Condensed Consolidated Statements of Income. As of June 30, 2022 and December 31, 2021, the Company was servicing gross RICs that have been sold in off-balance sheet securitizations and were subject to an optional clean-up call as follows: (in thousands) June 30, 2022 December 31, 2021 Related party SPAIN securitizations $ 343,024 $ 554,040 Third-party SCART serviced securitizations 1,398,064 1,817,936 Total serviced for other portfolio $ 1,741,088 $ 2,371,976 Other than r epurchases of sold assets due to standard representations and warranties, the Company's exposure to loss as a result of its involvement with these VIEs at June 30, 2022 was $68.0 million and $3.0 million of debt and equity investments, respectively, compared to $90.0 million and $3.0 million at December 31, 2021. These amounts are reported in debt securities HTM and other investments, respectively, in Note 2 to these Condensed Consolidated Financial Statements. A summary of cash flows received from Trusts for the respective periods were as follows: Three-Month Period Ended June 30, Six-Month Period Ended June 30 (in thousands) 2022 2021 2022 2021 Receivables securitized (1) — — — 1,891,278 Net proceeds from new securitizations — — — 1,779,532 Cash received for servicing fees 5,098 9,294 11,038 16,021 Total cash received from Trusts $ 5,098 $ 9,294 $ 11,038 $ 1,795,553 (1) Represents the UPB at the time of original securitization. |
DEPOSITS AND OTHER CUSTOMER ACC
DEPOSITS AND OTHER CUSTOMER ACCOUNTS | 6 Months Ended |
Jun. 30, 2022 | |
Deposits [Abstract] | |
DEPOSITS AND OTHER CUSTOMER ACCOUNTS | DEPOSITS AND OTHER CUSTOMER ACCOUNTS Deposits and other customer accounts are summarized as follows: June 30, 2022 December 31, 2021 (dollars in thousands) Balance Percent of total deposits Balance Percent of total deposits Interest-bearing demand deposits $ 13,818,513 18.6 % $ 16,335,499 20.0 % Non-interest-bearing demand deposits 20,419,029 27.4 % 22,443,957 27.5 % Savings 5,634,518 7.6 % 5,564,934 6.8 % Customer repurchase accounts 239,122 0.3 % 338,698 0.4 % Money market 32,319,577 43.4 % 34,390,613 42.1 % CDs 2,043,352 2.7 % 2,524,471 3.2 % Total deposits (1) $ 74,474,111 100.0 % $ 81,598,172 100.0 % (1) Includes foreign deposits, as defined by the FRB, of $6.7 billion and $6.4 billion at June 30, 2022 and December 31, 2021, respectively. Public fund deposits collateralized by investment securities, loans, and other financial instruments totaled $2.6 billion and $3.2 billion at June 30, 2022 and December 31, 2021, respectively. Demand deposit overdrafts that have been reclassified as loan balances were $227.0 million and $133.1 million at June 30, 2022 and December 31, 2021, respectively. |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS Total borrowings and other debt obligations at June 30, 2022 were $43.2 billion, compared to $41.1 billion at December 31, 2021. The Company's debt agreements impose certain limitations on dividend payments and other transactions. The Company is currently in compliance with these limitations. Periodically, as part of the Company's wholesale funding management, it opportunistically repurchases outstanding borrowings in the open market and subsequently retires the obligations. On January 6, 2022, the Company completed the public offering and sale of $1 billion in aggregate principal amount of its 2.49% Fixed-to-Floating Rate Senior Notes due January 2028. On February 28, 2022, the Company redeemed its 3.70% Senior Notes due March 2022, of which $706.8 million aggregate principal amount was outstanding. On April 14, 2022, the Company redeemed its 3.50% Senior Notes due April 2023, of which $447.1 million aggregate principal amount was outstanding and issued $433.6 million of floating rate senior notes due April 2026 in a private offering. On June 2, 2022, SBNA issued $521 million of credit-linked notes due May 2032. On June 9, 2022 the Company completed the public offering and sale of $500 million in aggregate principal amount of its 4.26% Fixed-to-Floating Rate Senior Notes due June 2025. On July 15, 2022 the Company redeemed its senior notes due January 2023, of which $721.0 million aggregate principal amount was outstanding. On July 22, 2022 the Company redeemed its senior notes due July 2023, of which $439.1 million aggregate principal amount was outstanding. Parent Company and other Subsidiary Borrowings and Debt Obligations The following table presents information regarding the Parent Company and its subsidiaries' borrowings and other debt obligations at the dates indicated: June 30, 2022 December 31, 2021 (dollars in thousands) Balance Effective Balance Effective Parent Company 3.70% senior notes due March 2022 $ — — % $ 706,819 3.67 % Senior notes due January 2023 (1) 720,951 1.68 % 720,947 1.28 % 3.40% senior notes due January 2023 999,266 3.54 % 998,599 3.54 % 3.50% senior notes due April 2023 — 3.52 % 447,107 3.52 % Senior notes due July 2023 (1) 439,070 1.69 % 439,085 1.29 % 2.88% senior notes due January 2024 (2) 750,000 2.88 % 750,000 2.88 % 3.50% senior notes due June 2024 998,084 3.60 % 997,610 3.60 % 3.45% senior notes, due June 2025 996,553 3.58 % 995,983 3.58 % 4.26% Senior notes due June 2025 498,436 4.36 % — — % 4.50% senior notes due July 2025 1,097,973 4.56 % 1,097,667 4.56 % Senior notes, due April 2026 (3) 433,373 2.22 % — — % Senior notes due November 2026 921,743 3.97 % 918,851 3.97 % 4.40% senior notes, due July 2027 1,049,583 4.40 % 1,049,565 4.40 % 2.49% senior notes due January 2028 996,384 2.56 % — — % 2.88% subordinate note, due November 2031 (2) 500,000 2.88 % 500,000 2.88 % Subsidiaries 2.00% subordinated debt maturing through 2040 — — % 11 2.00 % Short-term borrowing due within one year, maturing July 2022 2,187 0.05 % — — % Short-term borrowing due within one year, maturing January 2022 — — % 57,365 0.05 % Total Parent Company and subsidiaries' borrowings and other debt obligations $ 10,403,603 3.39 % $ 9,679,609 3.44 % (1) These notes will bear interest at a rate equal to the three-month LIBOR plus 110 basis points per annum. (2) These notes are payable to SHUSA's parent company, Santander. (3) These notes will bear interest at a rate equal to the SOFR index rate plus 135 basis points per year NOTE 9. BORROWINGS (continued) SBNA Borrowings and Debt Obligations The following table presents information regarding SBNA's borrowings and other debt obligations at the dates indicated: June 30, 2022 December 31, 2021 (dollars in thousands) Balance Effective Balance Effective FHLB advances, maturing through August 2022 $ 2,750,000 1.83 % $ 250,000 0.93 % Credit-linked notes due December 2031 (1) 224,126 2.67 % 293,749 2.53 % Credit-linked notes due May 2032 (2) 494,889 6.30 % — — % Total SBNA borrowings and other debt obligations $ 3,469,015 2.52 % $ 543,749 1.79 % (1) Issued in December 2021 in the amount of $298 million. Notes are tied to the performance of a $2 billion original reference pool of SBNA prime auto loans. The contractual residual amount is $36 million. (2) Issued in June 2022 in the amount of $521 million. Notes are tied to the performance of a $3.5 billion original reference pool of SBNA prime auto loans. The contractual residual amount is $63 million. Credit-Linked Notes SBNA's credit-linked notes effectively transfer credit risk on a reference pool of loans to the purchaser of the notes. In the event of credit losses on the reference pool in excess of the contractual residual amount, the principal balance of the notes will be reduced to the extent of such loss up to the amount of notes issued and recognized as a debt extinguishment gain within Miscellaneous income, net. SBNA has the option to redeem the notes once the UPB of the reference pool is less than or equal to 10% of the initial principal balance. SBNA had outstanding irrevocable letters of credit totaling $12.0 million from the FHLB of Pittsburgh at June 30, 2022 used to secure uninsured deposits placed with SBNA by state and local governments and their political subdivisions. SC Credit Facilities The following tables present information regarding SC's credit facilities at the dates indicated: June 30, 2022 (dollars in thousands) Balance Committed Amount Effective Assets Pledged Restricted Cash Pledged Warehouse line due June 2023 335,000 500,000 1.75 % 488,046 — Warehouse line due July 2023 365,000 600,000 2.09 % 477,220 — Warehouse line due October 2023 — 500,000 — % 50,581 — Warehouse line due October 2023 841,000 2,100,000 2.64 % 1,247,501 64 Warehouse line due November 2023 — 1,000,000 2.57 % 426,274 — Warehouse line due November 2023 — 3,500,000 — % 55,827 101 Warehouse line due January 2024 $ 980,800 $ 1,000,000 1.13 % $ 1,283,069 $ — Warehouse line due April 2024 770,000 1,250,000 2.09 % 1,508,223 1 Total facilities with third parties $ 3,291,800 $ 10,450,000 1.91 % $ 5,536,741 $ 166 Promissory note with Santander due September 2022 2,000,000 2,000,000 1.01 % — — Total facilities with related parties $ 2,000,000 $ 2,000,000 1.01 % $ — $ — Total SC credit facilities $ 5,291,800 $ 12,450,000 1.57 % $ 5,536,741 $ 166 NOTE 9. BORROWINGS (continued) December 31, 2021 (dollars in thousands) Balance Committed Amount Effective Assets Pledged Restricted Cash Pledged Warehouse line due November 2022 $ — $ 500,000 — % $ — $ — Warehouse line due January 2023 — 1,000,000 — % — — Warehouse line due March 2023 — 1,250,000 — % — 1 Warehouse line due June 2023 — 500,000 — % — — Warehouse line due July 2023 — 600,000 — % — — Warehouse line due October 2023 — 500,000 — % 12,428 — Warehouse line due October 2023 — 2,100,000 — % — 64 Warehouse line due November 2023 — 1,000,000 — % — — Warehouse line due November 2023 — 3,500,000 — % 124,624 — Total facilities with third parties $ — $ 10,950,000 — % $ 137,052 $ 65 Promissory note with Santander due June 2022 $ 2,000,000 $ 2,000,000 2.03 % $ — $ — Promissory note with Santander due September 2022 2,000,000 2,000,000 1.01 % — — Total facilities with related parties $ 4,000,000 $ 4,000,000 1.52 % $ — $ — Total SC credit facilities $ 4,000,000 $ 14,950,000 1.52 % $ 137,052 $ 65 The warehouse lines and repurchase facilities are fully collateralized by a designated portion of SC's RICs, leased vehicles, securitization notes payable and residuals retained by SC. Secured Structured Financings The following tables present information regarding SC's secured structured financings at the dates indicated: June 30, 2022 (dollars in thousands) Balance Initial Note Amounts Issued (3) Initial Weighted Average Interest Rate Range Collateral (2) Restricted Cash SC public securitizations maturing on various dates between June 2024 and July 2029 (1) $ 22,034,733 $ 51,970,975 0.48% - 3.42% $ 30,240,572 $ 1,096,055 SC privately issued amortizing notes maturing on various dates between June 2022 and December 2027 (3) 1,961,040 6,966,394 1.28% - 3.90% 3,211,200 17,782 Total SC secured structured financings $ 23,995,773 $ 58,937,369 0.48% - 3.90% $ 33,451,772 $ 1,113,837 (1) Securitizations executed under Rule 144A of the Securities Act are included within this balance. (2) Secured structured financings may be collateralized by SC's collateral overages of other issuances. (3) Excludes securitizations which no longer have outstanding debt and excludes any incremental borrowings. December 31, 2021 (dollars in thousands) Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Range Collateral Restricted Cash SC public securitizations maturing on various dates between July 2022 and March 2029 (1) $ 23,531,904 $ 54,534,275 0.48% - 3.42% $ 30,692,331 $ 1,621,026 SC privately issued amortizing notes maturing on various dates between June 2022 and December 2027 (3) 3,377,925 8,761,563 1.28% - 3.90% 5,728,292 16,220 Total SC secured structured financings $ 26,909,829 $ 63,295,838 0.48% - 3.90% $ 36,420,623 $ 1,637,246 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) The following table presents the components of AOCI, net of related tax, for the three-month and six-month periods ended June 30, 2022 and 2021, respectively. Total Other Total Accumulated Three-Month Period Ended June 30, 2022 March 31, 2022 June 30, 2022 (in thousands) Pretax Tax Net Activity Beginning Net Ending Change in AOCI on cash flow hedge derivative financial instruments $ (116,864) $ 31,488 $ (85,376) Reclassification adjustment for net (gains)/losses on cash flow hedge derivative financial instruments (1) 4,650 (967) 3,683 Net unrealized gains/(losses) on cash flow hedge derivative financial instruments (112,214) 30,521 (81,693) $ (326,433) $ (81,693) $ (408,126) Change in unrealized (losses) on investments in debt securities AFS (243,284) 63,065 (180,219) Reclassification adjustment for (gains)/losses included in net income/(expense) on debt securities AFS (2) 10,758 (2,789) 7,969 Net unrealized gains on investments in debt securities AFS (232,526) 60,276 (172,250) (435,230) (172,250) (607,480) Pension and post-retirement actuarial gain (3) 784 (205) 579 (27,628) 579 (27,049) As of June 30, 2022 $ (343,956) $ 90,592 $ (253,364) $ (789,291) $ (253,364) $ (1,042,655) Total Other Total Accumulated Three-Month Period Ended June 30, 2021 March 31, 2021 June 30, 2021 (in thousands) Pretax Tax Net Activity Beginning Net Ending Change in AOCI on cash flow hedge derivative financial instruments $ (3,121) $ (468) $ (3,589) Reclassification adjustment for net (gains)/losses on cash flow hedge derivative financial instruments (1) 142 (35) 107 Net unrealized gains on cash flow hedge derivative financial instruments (2,979) (503) (3,482) $ 15,491 $ (3,482) $ 12,009 Change in unrealized gains on investment securities 17,336 (4,297) 13,039 Reclassification adjustment for net (gains)/losses included in net income/(expense) on debt securities AFS (2)(4) (5,370) 1,331 (4,039) Net unrealized (losses) on investment securities AFS 11,966 (2,966) 9,000 (4,893) 9,000 4,107 Pension and post-retirement actuarial gain (3) 757 (196) 561 (28,197) 561 (27,636) As of June 30, 2021 $ 9,744 $ (3,665) $ 6,079 $ (17,599) $ 6,079 $ (11,520) NOTE 10. ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (continued) Total Other Total Accumulated Six-month period ended June 30, 2022 December 31, 2021 June 30, 2022 (in thousands) Pretax Tax Net Activity Beginning Net Ending Change in AOCI on cash flow hedge derivative financial instruments $ (458,376) $ 120,936 $ (337,440) Reclassification adjustment for net (gains)/losses on cash flow hedge derivative financial instruments (1) 11,780 (2,449) 9,331 Net unrealized gains/(losses) on cash flow hedge derivative financial instruments (446,596) 118,487 (328,109) $ (80,017) $ (328,109) $ (408,126) Change in unrealized gains/(losses) on investments in debt securities (737,959) 190,807 (547,152) Reclassification adjustment for net (gains)/losses included in net income/(expense) on debt securities (2) 24,714 (5,137) 19,577 Net unrealized gains/(losses) on investments in debt securities (713,245) 185,670 (527,575) (79,905) (527,575) (607,480) Pension and post-retirement actuarial gain / (loss) (3) 1,510 (371) 1,139 (28,188) 1,139 (27,049) As of June 30, 2022 $ (1,158,331) $ 303,786 $ (854,545) $ (188,110) $ (854,545) $ (1,042,655) (1) Net gains/(losses) reclassified into Interest on borrowings and other debt obligations in the Condensed Consolidated Statements of Operations for settlements of interest rate swap contracts designated as cash flow hedges. (2) Net (gains)/losses reclassified into Net gain on sale of investment securities sales in the Condensed Consolidated Statements of Operations for the sale of debt securities. (3) Included in the computation of net periodic pension costs. Total Other Total Accumulated Six-month period ended June 30, 2021 December 31, 2020 June 30, 2021 (in thousands) Pretax Tax Net Activity Beginning Net Ending Change in AOCI on cash flow hedge derivative financial instruments $ (90,241) $ 23,842 $ (66,399) Reclassification adjustment for net (gains)/losses on cash flow hedge derivative financial instruments (1) 283 (41) 242 Net unrealized gains/(losses) on cash flow hedge derivative financial instruments (89,958) 23,801 (66,157) $ 78,166 $ (66,157) $ 12,009 Change in unrealized gains/(losses) on investments in debt securities (137,690) 35,812 (101,878) Reclassification adjustment for net (gains)/losses included in net income/(expense) on debt securities AFS (2) (15,243) 3,965 (11,278) Net unrealized gains/(losses) on investments in debt securities (152,933) 39,777 (113,156) 117,263 (113,156) 4,107 Pension and post-retirement actuarial gain / (loss) (3) 1,981 (483) 1,498 (29,134) 1,498 (27,636) As of June 30, 2021 $ (240,910) $ 63,095 $ (177,815) $ 166,295 $ (177,815) $ (11,520) |
SECURITIES FINANCING ACTIVITIES
SECURITIES FINANCING ACTIVITIES | 6 Months Ended |
Jun. 30, 2022 | |
Banking and Thrift, Other Disclosure [Abstract] | |
SECURITIES FINANCING ACTIVITIES | SECURITIES FINANCING ACTIVITIES The Company may enter into Securities Financing Activities primarily to deploy the Company’s excess cash and investment positions. Securities Financing Activities are treated as collateralized financings and are included i n "F ederal funds sold and securities purchased under resale agreements or similar arrangements" an d "Federal funds purchased and securities loaned or sold under repurchase agreements" on the Company’s Condensed Consolidated Balance Sheets . Refer to Note 1 of the Company's Annual Report on Form 10-K for 2021 for further discussion of accounting for and the offsetting of securities financing assets and liabilities. Securities borrowed and purchased under agreements to resell, at their respective carrying values, consisted of the following: (in thousands) June 30, 2022 December 31, 2021 Securities purchased under agreements to resell $ 9,734,368 $ 2,422,042 Securities borrowed 4,013,568 2,924,426 Total $ 13,747,936 $ 5,346,468 Securities loaned or sold under agreements to repurchase, at their respective carrying values, consisted of the following: (in thousands) June 30, 2022 December 31, 2021 Securities sold under agreements to repurchase $ 16,004,022 $ 5,258,875 Securities Financing Activities are generally executed under standard industry agreements, including master agreements that create a single contract under which all transactions between two counterparties are executed, allowing for trade aggregation of receivables and payables into a single net payment or settlement. At June 30, 2022 and December 31, 2021, the following amounts of securities financing assets or liabilities qualified for offset in the Condensed Consolidated Balance Sheets. June 30, 2022 (in thousands) Gross amounts of recognized assets Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of assets included on the Condensed Consolidated Balance Sheets Securities purchased under agreements to resell $ 36,255,247 $ 26,520,879 $ 9,734,368 Securities borrowed 4,408,512 394,944 4,013,568 Total $ 40,663,759 $ 26,915,823 $ 13,747,936 June 30, 2022 (in thousands) Gross amounts of recognized liabilities Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of liabilities included on the Condensed Consolidated Balance Sheets Securities sold under agreements to repurchase $ 42,524,901 $ 26,520,879 $ 16,004,022 (1) Includes financial instruments subject to enforceable master netting agreements that are permitted to be offset under ASC 210-20-45. NOTE 11. SECURITIES FINANCING ACTIVITIES (continued) December 31, 2021 (in thousands) Gross amounts of recognized assets Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of assets included on the Condensed Consolidated Balance Sheets Securities purchased under agreements to resell $ 2,746,948 $ 324,906 $ 2,422,042 Securities borrowed 2,924,426 — 2,924,426 Total $ 5,671,374 $ 324,906 $ 5,346,468 December 31, 2021 (in thousands) Gross amounts of recognized liabilities Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of liabilities included on the Condensed Consolidated Balance Sheets Securities sold under agreements to repurchase $ 5,583,781 $ 324,906 $ 5,258,875 (1) Includes financial instruments subject to enforceable master netting agreements that are permitted to be offset under ASC 210-20-45. The following tables present the gross amounts of liabilities associated with Securities Financing Activities by remaining contractual maturity: June 30, 2022 (in thousands) Open and overnight Up to 30 days 31-90 days Greater than 90 days Total Securities sold under agreements to repurchase $ 20,151,093 $ 9,783,685 $ 3,638,561 $ 8,951,562 $ 42,524,901 The following tables present the gross amounts of liabilities associated with Securities Financing Activities by class of underlying collateral as of the following dates: Repurchase agreements (in thousands) June 30, 2022 December 31, 2021 U.S. Treasury $ 28,540,952 $ 3,124,781 Residential agency MBS 12,715,891 2,459,000 Corporate and other securities 1,268,058 — Total $ 42,524,901 $ 5,583,781 |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES General Derivatives represent contracts between parties that usually require little or no initial net investment and result in one or both parties delivering cash or another type of asset to the other party based on a notional amount and an underlying asset, index, interest rate or future purchase commitment or option as specified in the contract. Derivative transactions are often measured in terms of notional amount, but this amount is generally not exchanged, is not recorded on the balance sheet, and does not represent the Company`s exposure to credit loss. The notional amount is the basis on which the financial obligation of each party to the derivative contract is calculated to determine required payments under the contract. The Company controls the credit risk of its derivative contracts through credit approvals, limits and monitoring procedures. The underlying asset is typically a referenced interest rate (commonly the OIS rate, a SOFR-based rate, or LIBOR), security, credit spread or index. The Company’s capital markets and mortgage banking activities are subject to price risk. The Company employs various tools to measure and manage price risk in its portfolios. In addition, the Board of Directors has established certain limits relative to positions and activities. The level of price risk exposure at any given time depends on the market environment and expectations of future price and market movements and will vary from period to period. NOTE 12. DERIVATIVES (continued) See Note 13 to these Condensed Consolidated Financial Statements for discussion of the valuation methodology for derivative instruments. Credit Risk Contingent Features The Company has entered into certain derivative contracts that require the posting of collateral to counterparties when those contracts are in a net liability position. The amount of collateral to be posted is based on the amount of the net liability and thresholds generally related to the Company's long-term senior unsecured credit ratings. In a limited number of instances, counterparties also have the right to terminate their ISDA Master Agreements if the Company's ratings fall below a specified level, typically investment grade. As of June 30, 2022, derivatives in this category had a fair value of $0.1 million. The credit ratings of the Company and SBNA are currently considered investment grade. As of June 30, 2022, no additional collateral would be required if there were a further 1- or 2- notch downgrade by either S&P or Moody's. As of June 30, 2022 and December 31, 2021, the aggregate fair value of all derivative contracts with credit risk contingent features (i.e., those containing collateral posting or termination provisions based on the Company's ratings) that were in a net liability position totaled $7.3 million and $7.7 million, respectively. The Company had $11.1 million and $8.8 million in cash and securities collateral posted to cover those positions as of June 30, 2022 and December 31, 2021, respectively. Hedge Accounting Management uses derivative instruments designated as hedges to mitigate the impact of interest rate and foreign exchange rate movements on the fair value of certain assets and liabilities and on highly probable forecasted cash flows. These instruments primarily include interest rate swaps that have underlying interest rates based on key benchmark indices. The nature and volume of the derivative instruments used to manage interest rate risk depend on the level and type of assets and liabilities on the balance sheet and the risk management strategies for the current and anticipated interest rate environment. Interest rate swaps are generally used to convert fixed-rate assets and liabilities to variable rate assets and liabilities and vice versa. The Company utilizes interest rate swaps that have a high degree of correlation to the related financial instrument. Fair Value Hedges During the second quarter of 2021, the Company began entering into derivatives to hedge the risk of changes in fair value of a portion of its LHFI portfolio. These derivatives are designated as fair value hedges at inception. The gains/(losses) from changes in the fair value of the hedging derivative and the offsetting gains/(losses) from changes in the fair value of the related underlying hedged items are reporting in the same line item in the Condensed Consolidated Statements of Operations as earnings from the hedged items. The cumulative fair value hedge basis adjustments included in the carrying amount of hedged assets is reversed through earnings in future periods as an adjustment to yield. The Company includes gains/(losses) on the hedging derivatives and the related hedged items in the assessment of hedge effectiveness. All of these swaps have been deemed highly effective fair value hedges. The last of the hedges is scheduled to expire in November 2027. Cash Flow Hedges The Company has outstanding interest rate swap agreements designed to hedge a portion of the Company’s floating rate assets and liabilities (including its borrowed funds). All of these swaps have been deemed highly effective cash flow hedges. The gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same Condensed Consolidated Statements of Operations line item as the earnings effect of the hedged item. The last of the hedges is scheduled to expire in March 2027. The Company includes all components of each derivative's gain or loss in the assessment of hedge effectiveness. As of June 30, 2022, the Company estimated that approximately $30.5 million of unrealized losses included in AOCI would be reclassified to earnings during the subsequent twelve months as the future cash flows occur. NOTE 12. DERIVATIVES (continued) Derivatives Designated in Hedge Relationships – Notional and Fair Values Derivatives designated as accounting hedges at June 30, 2022 and December 31, 2021 included: (dollars in thousands) Notional Asset Liability Weighted Average Receive Rate Weighted Average Pay Weighted Average Life June 30, 2022 Fair value hedges: Cross-currency swaps $ 50,299 $ 863 $ — 2.49 % 8.38 % 6.18 Interest rate swaps 514,349 11,120 251 1.52 % 0.69 % 3.21 Cash flow hedges: Pay variable - receive fixed interest rate swaps 13,425,000 760 528,289 0.99 % 1.34 % 2 Interest rate floor 925,000 9 — — % — % 1.29 Total $ 14,914,648 $ 12,752 $ 528,540 0.96 % 1.25 % 2.02 December 31, 2021 Fair value hedges: Cross-currency swaps $ 14,743 $ 655 $ — 1.34 % 7.30 % 1.84 Interest rate swaps 128,789 1,188 — 0.05 % 0.71 % 3.59 Cash flow hedges: Pay variable - receive fixed interest rate swaps 11,995,000 41,980 111,093 0.88 % 0.09 % 2.28 Interest rate floor 925,000 150 — 0.03 % — % 1.68 Total $ 13,063,532 $ 43,973 $ 111,093 0.81 % 0.10 % 2.25 During 2018, 2019, and 2020, SC entered into interest rate swap agreements with an aggregate notional amount of $2.2 billion. The interest rate swaps were to be used to hedge SC’s variable rate debt and had maturity dates ranging from two recorded in AOCI related to these interest rate swaps, totaling $50.6 million, are being reclassified into earnings over the term as the previously hedged cash flow impacts earnings. For the terminated swaps, SC reclassified $4.8 million and $12.1 million previously recorded in AOCI into interest expense during the three-month and six-month periods ended June 30, 2022. Other Derivative Activities The Company also enters into derivatives that are not designated as accounting hedges under GAAP. The majority of these derivatives are customer-related derivatives relating to foreign exchange and lending arrangements, as well as derivatives to hedge interest rate risk on SC's secured structured financings and the borrowings under its revolving credit facilities. SC uses both interest rate swaps and interest rate caps to satisfy these requirements and to hedge the variability of cash flows on securities issued by Trusts and borrowings under its warehouse facilities. In addition, derivatives are used to manage risks related to residential and commercial mortgage banking and investing activities. Although these derivatives are used to hedge risk and are considered economic hedges, they are not designated as accounting hedges because the contracts they are hedging are carried at fair value on the balance sheet, resulting in generally symmetrical accounting treatment for the hedging instrument and the hedged item. Mortgage Banking Derivatives The Company's derivatives portfolio includes mortgage banking interest rate lock commitments, forward sale commitments and interest rate swaps. As part of its overall business strategy, the Company originates fixed-rate and adjustable rate residential mortgages. It sells a portion of this production to the FHLMC, the FNMA, and private investors. The Company uses forward sales as a means of hedging against the economic impact of changes in interest rates on the mortgages that are originated for sale and on interest rate lock commitments. The Company typically retains the servicing rights related to residential mortgage loans that are sold. Most of the Company`s residential MSRs are accounted for at fair value. As deemed appropriate, the Company economically hedges MSRs using interest rate swaps and forward contracts to purchase MBS. NOTE 12. DERIVATIVES (continued) Customer-related derivatives The Company offers derivatives to its customers in connection with their risk management needs and requirements. These financial derivative transactions primarily consist of interest rate swaps, caps, floors and foreign exchange contracts. Risk exposure from customer positions is managed through transactions with other dealers, including Santander. Other derivative activities The Company uses foreign exchange contracts to manage the foreign exchange risk associated with certain foreign currency-denominated assets and liabilities. Foreign exchange contracts, which include spot and forward contracts as well as cross-currency swaps, represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon price on an agreed-upon settlement date and may or may not be physically settled depending on the Company’s needs. Exposure to gains and losses on these contracts will increase or decrease over their respective lives as currency exchange and interest rates fluctuate. Other derivative instruments primarily include forward contracts related to certain investment securities sales, an OIS, and a total return swap on Visa, Inc. Class B common shares. Derivatives Not Designated in Hedge Relationships – Notional and Fair Values Other derivative activities at June 30, 2022 and December 31, 2021 included: Notional Asset derivatives Liability derivatives (in thousands) June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Mortgage banking derivatives: Forward commitments to sell loans $ — $ 264,188 $ — $ — $ — $ 21 Interest rate lock commitments — 99,752 — 2,852 — — Mortgage servicing 837,000 593,000 11,795 15,841 24,723 8,111 Total mortgage banking risk management 837,000 956,940 11,795 18,693 24,723 8,132 Customer-related derivatives: Swaps receive fixed 15,112,790 14,801,189 10,605 400,168 608,505 89,767 Swaps pay fixed 15,344,764 15,141,223 643,185 102,312 12,656 383,987 Other 5,793,103 6,384,285 71,086 25,542 68,741 26,741 Total customer-related derivatives 36,250,657 36,326,697 724,876 528,022 689,902 500,495 Other derivative activities: Foreign exchange contracts 6,041,137 5,085,973 77,746 35,899 71,434 33,836 Interest rate swap agreements 550,625 — 3,942 — — — Interest rate cap agreements 4,401,993 7,007,441 120,082 34,290 — — Options for interest rate cap agreements 4,401,993 7,007,441 — — 120,082 34,290 Other 682,213 111,373 5,791 203 29,068 2,367 Total $ 53,165,618 $ 56,495,865 $ 944,232 $ 617,107 $ 935,209 $ 579,120 NOTE 12. DERIVATIVES (continued) Gains (Losses) on All Derivatives The following Condensed Consolidated Statements of Operations line items were impacted by the Company’s derivative activities for the three-month and six-month periods ended June 30, 2022 and 2021: (in thousands) Three-Month Period Ended June 30, Six-Month Period Ended June 30 Line Item 2022 2021 2022 2021 Fair value hedges: Cross-currency swaps Net interest income $ (1,389) $ — $ (1,021) $ — Interest rate swaps Net interest income $ 2,957 $ 70 10,045 70 Cash flow hedges: Pay fixed-receive variable interest rate swaps Interest expense on borrowings (4,797) (7,651) (12,073) (15,308) Pay variable receive-fixed interest rate swap Interest income on loans 4,538 25,987 27,789 49,103 Interest rate floors Interest income on loans (44) 6,762 23 18,077 Other derivative activities: Forward commitments to sell loans Miscellaneous income, net (1,404) (7,002) 21 3,713 Interest rate lock commitments Miscellaneous income, net 103 (314) (2,852) (7,687) Mortgage servicing Miscellaneous income, net (10,064) 4,388 (27,357) (5,344) Customer-related derivatives Miscellaneous income, net (39,083) 6,138 (34,558) 13,793 Foreign exchange Miscellaneous income, net 49,350 832 51,312 6,194 Interest rate swaps, caps, and options Miscellaneous income, net 439 (214) 417 30 Other Miscellaneous income, net 31,425 (1,827) 31,796 (409) (1) Gains are disclosed as positive numbers while losses are shown as a negative number regardless of the line item being affected. The net amount of change recognized in OCI for cash flow hedge derivatives was losses of $85.4 million and $337.4 million, net of tax, for the three-month and six-month periods ended June 30, 2022, respectively, and a loss of $3.6 million and $66.4 million net of tax, for the three-month and six-month periods ended 2021, respectively. The net amount of changes reclassified from OCI into earnings for cash flow hedge derivatives was losses of $3.7 million and $9.3 million, net of tax, for the three-month and six-month periods ended June 30, 2022, and losses of $0.1 million and $0.2 million 2021, respectively. Disclosures about Offsetting Assets and Liabilities The Company enters into legally enforceable master netting agreements which reduce risk by permitting netting of transactions with the same counterparty on the occurrence of certain events. A master netting agreement allows two counterparties the ability to net-settle amounts under all contracts, including any related collateral posted, through a single payment and in a single currency. The right to offset and certain terms regarding the collateral process, such as valuation, credit events and settlement, are contained in the applicable master agreement. The Company's financial instruments, including resell and repurchase agreements, securities lending arrangements, derivatives and cash collateral, may be eligible for offset on its Condensed Consolidated Balance Sheets. The Company has elected to present derivative balances on a gross basis even if the derivative is subject to a legally enforceable nettable ISDA Master Agreement for all trades executed after April 1, 2013. Collateral that is received or pledged for these transactions is disclosed within the “Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets” section of the tables below. Prior to April 1, 2013, the Company had elected to net all caps, floors, and interest rate swaps when it had an ISDA Master Agreement with the counterparty. The collateral received or pledged in connection with these transactions is disclosed within the “Gross Amounts Offset in the Condensed Consolidated Balance Sheets" section of the tables below. NOTE 12. DERIVATIVES (continued) Information about financial assets and liabilities that are eligible for offset on the Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021, respectively, is presented in the following tables: Offsetting of Financial Assets Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets Collateral Received (2) Net Amount June 30, 2022 Fair value hedges $ 11,983 $ — $ 11,983 $ — $ 11,983 Cash flow hedges 769 — 769 580 189 Other derivative activities (1) 956,821 12,589 944,232 241,352 702,880 Total derivatives subject to a master netting arrangement or similar arrangement 969,573 12,589 956,984 241,932 715,052 Total derivatives not subject to a master netting arrangement or similar arrangement — — — — — Total Derivative Assets $ 969,573 $ 12,589 $ 956,984 $ 241,932 $ 715,052 December 31, 2021 Fair value hedges $ 1,843 $ — $ 1,843 $ — $ 1,843 Cash flow hedges 42,130 — 42,130 — 42,130 Other derivative activities (1) 614,255 — 614,255 41,899 572,356 Total derivatives subject to a master netting arrangement or similar arrangement 658,228 — 658,228 41,899 616,329 Total derivatives not subject to a master netting arrangement or similar arrangement 2,852 — 2,852 122 2,730 Total Derivative Assets $ 661,080 $ — $ 661,080 $ 42,021 $ 619,059 (1) Includes customer-related and other derivatives. (2) Collateral received includes cash, cash equivalents, and other financial instruments. Cash collateral received is reported in Other liabilities, as applicable, in the Condensed Consolidated Balance Sheets. Financial instruments that are pledged to the Company are not reflected in the accompanying Condensed Consolidated Balance Sheets since the Company does not control or have the ability to re-hypothecate these instruments. NOTE 12. DERIVATIVES (continued) Offsetting of Financial Liabilities Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets Collateral Pledged (2) Net Amount June 30, 2022 Fair value hedges $ 251 $ — $ 251 $ — $ 251 Cash flow hedges 528,289 — 528,289 286,327 241,962 Other derivative activities (1) 947,798 13,204 934,594 124,953 809,641 Total derivatives subject to a master netting arrangement or similar arrangement 1,476,338 13,204 1,463,134 411,280 1,051,854 Total derivatives not subject to a master netting arrangement or similar arrangement — — — — — Total Derivative Liabilities $ 1,476,338 $ 13,204 $ 1,463,134 $ 411,280 $ 1,051,854 December 31, 2021 Cash flow hedges $ 111,093 $ — $ 111,093 $ 59,073 $ 52,020 Other derivative activities (1) 579,099 2,058 577,041 268,352 308,689 Total derivatives subject to a master netting arrangement or similar arrangement 690,192 2,058 688,134 327,425 360,709 Total derivatives not subject to a master netting arrangement or similar arrangement 21 — 21 21 — Total Derivative Liabilities $ 690,213 $ 2,058 $ 688,155 $ 327,446 $ 360,709 (1) Includes customer-related and other derivatives. (2) Cash collateral pledged and financial instruments pledged is reported in Other assets in the Condensed Consolidated Balance Sheets. In certain instances, the Company is over-collateralized since the actual amount of collateral pledged exceeds the associated financial liability. As a result, the actual amount of collateral pledged that is reported in Other assets may be greater than the amount shown in the table above. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The Company estimates the fair value of certain assets and liabilities for both measurement and disclosure purposes. The fair value hierarchy categorizes the underlying assumptions and inputs to valuation techniques that are used to measure fair value into three levels as follows: • Level 1 inputs are quoted prices in active markets for identical assets or liabilities that can be accessed as of the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 inputs are those other than quoted prices included in Level 1 that are observable for the assets or liabilities, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3 inputs are those that are unobservable or not readily observable for the asset or liability and are used to measure fair value to the extent relevant observable inputs are not available. Assets and liabilities measured at fair value, by their nature, result in a higher degree of financial statement volatility. See Note 1 for a broad discussion of fair value measurement techniques. When available, the Company uses quoted market prices or matrix pricing in active markets to determine fair value and classifies such items as Level 1 or Level 2 assets or liabilities. If quoted market prices in active markets are not available, fair value is determin ed using third-party broker quotes and/or DCF models incorporating various assumptions including interest rates, prepayment speeds and credit losses. Assets and liabilities valued using broker quotes and/or DCF models are classified as either Level 2 or Level 3, depending on the lowest level classification of an input that is considered significant to the overall valuation. NOTE 13. FAIR VALUE (continued) The Company values assets and liabilities based on the principal market in which each would be sold (in the case of assets) or transferred (in the case of liabilities). The principal market is the forum with the greatest volume and level of activity. In the absence of a principal market, the valuation is based on the most advantageous market. In the absence of observable market transactions, the Company considers liquidity valuation adjustments to reflect the uncertainty in pricing the instruments. The fair value of a financial asset is measured on a stand-alone basis and cannot be measured as a group, with the exception of certain financial instruments held and managed on a net portfolio basis. In measuring the fair value of a nonfinancial asset, the Company assumes the highest and best use of the asset by a market participant, not just the intended use, to maximize the value of the asset. The Company also considers whether any credit valuation adjustments are necessary based on the counterparty's credit quality. Any models used to determine fair values or validate dealer quotes based on the descriptions below are subject to review and testing as part of the Company's model validation and internal control testing processes. The Company's Market Risk Department approves the methodologies used in the estimations of fair value, including the Company's Level 3 assets and liabilities. Price validation procedures are performed and the results are reviewed for Level 3 assets and liabilities by the Market Risk Department. Price validation procedures performed for these assets and liabilities can include comparing current prices to historical pricing trends by collateral type and vintage, comparing prices by product type to indicative pricing grids published by market makers, and obtaining corroborating dealer prices for significant securities. The Company reviews the assumptions utilized to determine fair value on a quarterly basis. Any changes in methodologies or significant inputs used in determining fair values are further reviewed to determine if a change in fair value level hierarchy has occurred. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present the assets and liabilities that are measured at fair value on a recurring basis by major product category and fair value hierarchy as of June 30, 2022 and December 31, 2021: (in thousands) Level 1 Level 2 Level 3 Balance at June 30, 2022 Level 1 Level 2 Level 3 Balance at Financial assets: U.S. Treasury securities $ 236,025 $ — $ — $ 236,025 $ 73,618 $ — $ — $ 73,618 Corporate debt — 270,453 — 270,453 — 276,007 — 276,007 ABS — 509,218 — 509,218 — 537,722 — 537,722 MBS — 7,008,979 — 7,008,979 — 10,426,590 — 10,426,590 Investment in debt securities AFS (2) 236,025 7,788,650 — 8,024,675 73,618 11,240,319 — 11,313,937 Trading securities 822,763 4,154,652 1,402 4,978,817 64 35,727 — 35,791 Federal funds sold and securities purchased under resale agreements or similar arrangements — 1,542,698 — 1,542,698 — — — — RICs HFI (3) — — 26,172 26,172 — — 33,529 33,529 LHFS (1)(4) — 591 — 591 — 166,811 — 166,811 MSRs — — 104,411 104,411 — — 79,107 79,107 Other assets - derivatives (2) 4,170 952,714 100 956,984 — 658,187 2,893 661,080 Total financial assets (5) $ 1,062,958 $ 14,439,305 $ 132,085 $ 15,634,348 $ 73,682 $ 12,101,044 $ 115,529 $ 12,290,255 Financial liabilities: Federal funds purchased and securities loaned or sold under repurchase agreements — 1,516,107 — 1,516,107 — — — — Trading liabilities 1,844,686 322,668 — 2,167,354 — 62 — 62 Other liabilities - derivatives (2) — 1,462,284 1,465 1,463,749 — 687,846 2,367 690,213 Total financial liabilities $ 1,844,686 $ 3,301,059 $ 1,465 $ 5,147,210 $ — $ 687,908 $ 2,367 $ 690,275 (1) LHFS disclosed on the Condensed Consolidated Balance Sheets also includes LHFS that are held at the lower of cost or fair value and are not presented within this table. (2) Refer to Note 2 for the fair value of investment securities and to Note 12 for the fair values of derivative assets and liabilities on a further disaggregated basis. (3) RI Cs collateralized by vehicle titles at SC and RV/marine loans at SBNA. (4) Residential mortgage loans. (5) Approximately $132.1 million of these financial assets were measured using model-based techniques, or Level 3 inputs, and represented approximately 0.8% of total assets measured at fair value on a recurring basis and approximately 0.1% of total consolidated assets. NOTE 13. FAIR VALUE (continued) Valuation Processes and Techniques - Recurring Fair Value Assets and Liabilities The following is a description of the valuation techniques used for instruments measured at fair value on a recurring basis: Investments in debt securities AFS Investments in debt securities AFS are accounted for at fair value. The Company utilizes a third-party pricing service to value its investment securities portfolios on a global basis. Its primary pricing service has consistently proved to be a high quality third-party pricing provider. For those investments not valued by pricing vendors, other trusted market sources are utilized. The Company monitors and validates the reliability of vendor pricing on an ongoing basis, which can include pricing methodology reviews, performing detailed reviews of the assumptions and inputs used by the vendor to price individual securities, and price validation testing. Price validation testing is performed independently of the risk-taking function and can include corroborating the prices received from third-party vendors with prices from another third-party source, reviewing valuations of comparable instruments, comparison to internal valuations, or by reference to recent sales of similar securities. The classification of securities within the fair value hierarchy is based upon the activity level in the market for the security type and the observability of the inputs used to determine their fair values. Actively traded quoted market prices for debt securities AFS, such as government agency securities, corporate debt, state and municipal securities, and MBS, are not readily available. The Company's principal markets for its investment securities are the secondary institutional markets with an exit price that is predominantly reflective of bid-level pricing in these markets. These investment securities are priced by third-party pricing vendors. The third-party vendors use a variety of methods when pricing these securities that incorporate relevant observable market data to arrive at an estimate of what a buyer in the marketplace would pay for a security under current market conditions. These investment securities are, therefore, considered Level 2. Certain ABS are valued using DCF models. The DCF models are obtained from a third-party pricing vendor which uses observable market data and therefore are classified as Level 2. Other ABS that could not be valued using a third-party pricing service are valued using an internally-developed DCF model and are classified as Level 3. LHFI For certain RICs reported in LHFI, net, the Company has elected the FVO. The estimated fair value of all RICs HFI is estimated using a DCF model and are classified as Level 3. LHFS The Company's LHFS portfolios that are measured at fair value on a recurring basis consist primarily of residential mortgage LHFS. The fair values of LHFS are estimated using published forward agency prices to agency buyers such as FNMA and FHLMC. The majority of the residential mortgage LHFS portfolio is sold to these two agencies. The fair value is determined using current secondary market prices for portfolios with similar characteristics, adjusted for servicing values and market conditions. These loans are regularly traded in active markets, and observable pricing information is available from market participants. The prices are adjusted as necessary to include the embedded servicing value in the loans as well as the specific characteristics of certain loans that are priced based on the pricing of similar loans. These adjustments represent unobservable inputs to the valuation, and are not significant given the relative insensitivity of the value to changes in these inputs to the fair value of the loans. Accordingly, residential mortgage LHFS are classified as Level 2. See further discussion below in the section captioned "FVO for Financial Assets and Financial Liabilities." NOTE 13. FAIR VALUE (continued) MSRs The Company maintains an MSR asset for sold residential real estate loans serviced for others. At June 30, 2022 and December 31, 2021 , the balance of these loans serviced for others accounted for at fair value was $9.8 billion and $10.4 billion , respectively. Changes in fair value are recorded through Miscellaneous income, net on the Condensed Consolidated Statements of Operations . The Company has elected to measure most of its residential MSRs at fair value to be consistent with the risk management strategy to hedge changes in the fair value of these assets. The fair value of residential MSRs is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates, discount rates (reflective of a market participant’s return on an investment for similar assets), servicing costs, and other economic factors which are determined based on current market conditions. Historically, servicing costs and discount rates have been less volatile than prepayment rates, which are directly correlated with changes in market interest rates. Increases in prepayment rates, discount rates and servicing costs result in lower valuations of MSRs. Decreases in the anticipated earnings rate on escrow and similar balances result in lower valuations of MSRs. Assumptions incorporated into the residential MSR valuation model reflect management's best estimate of factors that a market participant would use in valuing the residential MSRs, as well as future expectations. Although sales of residential MSRs do occur, residential MSRs do not trade in an active market with readily observable prices. As deemed appropriate, the Company economically hedges MSRs using interest rate swaps and forward contracts to purchase MBS. See further discussion on these derivative activities in Note 12 to these Condensed Consolidated Financial Statements. As a benchmark for the reasonableness of the residential MSRs fair value, opinions of value from brokers are obtained. Brokers provide a range of values based upon their own DCF calculations of our portfolio that reflect conditions in the secondary market and any recently executed servicing transactions. Management compares the internally-developed residential MSR values to the ranges of values received from brokers. If the residential MSRs fair value falls outside of the brokers' ranges, management will assess whether a valuation adjustment is warranted. The residential MSRs value is considered to represent a reasonable estimate of fair value. MSR’s are classified as Level 3. Gains and losses on MSRs are recognized on the Condensed Consolidated Statements of Operations through Miscellaneous income, net. Significant assumptions used in the valuation of residential MSRs include CPRs and the discount rate. Other important valuation assumptions include market-based servicing costs and the anticipated earnings on escrow and similar balances held by the Company in the normal course of mortgage servicing activities. Below is a sensitivity analysis of the most significant inputs utilized by the Company in the evaluation of residential MSRs: • A 10% and 20% increase in the CPR speed would decrease the fair value of the residential servicing asset by $3.2 million and $6.3 million, respectively, at June 30, 2022. • A 10% and 20% increase in the discount rate would decrease the fair value of the residential servicing asset by $3.8 million and $7.4 million, respectively, at June 30, 2022. Significant increases/(decreases) in any of those inputs in isolation would result in significantly (lower)/higher fair value measurements, respectively. These sensitivity calculations are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of an adverse variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change. Prepayment estimates generally increase when market interest rates decline and decrease when market interest rates rise. Discount rates typically increase when market interest rates increase and/or credit and liquidity risks increase, and decrease when market interest rates decline and/or credit and liquidity conditions improve. Derivatives The valuation of these instruments is determined using commonly accepted valuation techniques, including DCF analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable and unobservable market-based inputs. The fair value represents the estimated amount the Company would receive or pay to terminate the contract or agreement, taking into account current interest rates, foreign exchange rates, equity prices and, when appropriate, the current creditworthiness of the counterparties. NOTE 13. FAIR VALUE (continued) The Company incorporates credit valuation adjustments in the fair value measurement of its derivatives to reflect the counterparty's nonperformance risk, except for those derivative contracts with associated credit support annexes which provide credit enhancements, such as collateral postings and guarantees. The Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy. Certain of the Company's derivatives utilize Level 3 inputs, which are primarily related to mortgage banking derivatives-interest rate lock commitments and total return settlement derivative contracts. The DCF model is utilized to determine the fair value of the mortgage banking derivatives-interest rate lock commitments and the total return settlement derivative contracts. The significant unobservable inputs for mortgage banking derivatives used in the fair value measurement of the Company's loan commitments are "pull through" percentage and the MSR value that is inherent in the underlying loan value. The pull through percentage is an estimate of loan commitments that will result in closed loans. The significant unobservable inputs for total return settlement derivative contracts used in the fair value measurement of the Company's liabilities are discount percentages, which are based on comparable financial instruments. Significant increases (decreases) in any of these inputs in isolation would result in significantly higher (lower) fair value measurements. Significant increases (decreases) in the fair value of a mortgage banking derivative asset (liability) results when the probability of funding increases (decreases). Significant increases (decreases) in the fair value of a mortgage loan commitment result when the embedded servicing value increases (decreases). See Note 12 to these Consolidated Financial Statements for a discussion of derivatives activity. Trading liabilities The sales and trading of financial instruments are recorded on the trade date. Trading liabilities includes amounts payable for securities transactions that have not reached their contractual settlement date. Financial instruments owned and securities sold, not yet purchased, are carried at fair value. Level 3 Rollforward for Assets and Liabilities Measured at Fair Value on a Recurring Basis The tables below present the changes in Level 3 balances for the three-month and six-month periods ended June 30, 2022 and 2021, respectively, for those assets and liabilities measured at fair value on a recurring basis. Three-Month Period Ended June 30, 2022 Three-Month Period Ended June 30, 2021 (in thousands) RICs HFI MSRs Derivatives, net Other Total Investments RICs HFI MSRs Derivatives, net Total Balances, beginning of period $ 29,485 $ 99,517 $ (1,387) $ — $ 127,615 $ 50,237 $ 44,568 $ 86,653 $ 4,269 $ 185,727 Losses in OCI — — — — — (175) — — — (175) Gains/(losses) in earnings — 8,789 22 — 8,811 — — (4,925) (798) (5,723) Additions/Issuances 47 863 — 1,402 2,312 — — 4,015 — 4,015 Settlements (1) (3,360) (4,758) — — (8,118) 1 (5,132) (6,013) — (11,144) Balances, end of period $ 26,172 $ 104,411 $ (1,365) $ 1,402 $ 130,620 $ 50,063 $ 39,436 $ 79,730 $ 3,471 $ 172,700 Changes in unrealized gains (losses) included in earnings related to balances still held at end of period $ — $ 8,789 $ (82) $ — $ 8,707 $ — $ — $ (4,925) $ (484) $ (5,409) Six-Month Period Ended June 30, 2022 Six-Month Period Ended June 30, 2021 (in thousands) RICs HFI MSRs Derivatives, net Other Total Investments RICs HFI MSRs Derivatives, net Total Balances, beginning of period $ 33,529 $ 79,107 $ 526 $ — $ 113,162 $ 50,393 $ 50,391 $ 77,545 $ 9,448 $ 187,777 Losses in OCI — — — — — (331) — — — (331) Gains/(losses) in earnings — 31,553 (1,891) — 29,662 — — 8,653 (5,977) 2,676 Additions/Issuances 47 3,383 — 1,402 4,832 — — 7,626 — 7,626 Settlements (1) (7,404) (9,632) — — (17,036) 1 (10,955) (14,094) — (25,048) Balances, end of period $ 26,172 $ 104,411 $ (1,365) $ 1,402 $ 130,620 $ 50,063 $ 39,436 $ 79,730 $ 3,471 $ 172,700 Changes in unrealized gains (losses) included in earnings related to balances still held at end of period $ — $ 31,553 $ 961 $ — $ 32,514 $ — $ — $ 8,653 $ 1,710 $ 10,363 (1) Settlements include charge-offs, prepayments, paydowns and maturities. NOTE 13. FAIR VALUE (continued) Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Company may be required to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with GAAP from time to time. These adjustments to fair value usually result from application of lower-of-cost-or-fair value accounting or certain impairment measures. Assets measured at fair value on a nonrecurring basis that were still held on the balance sheet were as follows: (in thousands) Level 1 Level 2 Level 3 Balance at Level 1 Level 2 Level 3 Balance at Impaired commercial LHFI $ — $ 12,562 $ 26,041 $ 38,603 $ — $ 17,180 $ 614 $ 17,794 Foreclosed assets — 2,788 — 2,788 — 1,322 — 1,322 Vehicle inventory — 277,208 — 277,208 — 271,396 — 271,396 LHFS — — 256,307 256,307 — — 88,212 88,212 Auto loans impaired due to bankruptcy — 193,641 — 193,641 — 202,448 — 202,448 Valuation Processes and Techniques - Nonrecurring Fair Value Assets and Liabilities Impaired commercial LHFI in the table above represents the recorded investment of impaired commercial loans for which the Company measures impairment during the period based on the fair value of the underlying collateral supporting the loan. Written offers to purchase a specific impaired loan are considered observable market inputs, which are considered Level 1 inputs. Appraisals are obtained to support the fair value of the collateral and incorporate measures such as recent sales prices for comparable properties and are considered Level 2 inputs. Loans for which the value of the underlying collateral is determined using a combination of real estate appraisals, field examinations and internal calculations are classified as Level 3. The inputs in the internal calculations may include the loan balance, estimation of the collectability of the underlying receivables held by the customer used as collateral, sale and liquidation value of the inventory held by the customer used as collateral and historical loss-given-default parameters. In cases in which the carrying value exceeds the fair value of the collateral less cost to sell, an impairment charge is recognized. The net carrying value of these loans was $48.2 million and $9.0 million at June 30, 2022 and December 31, 2021 , respectively. Loans previously impaired which were not marked to fair value during the periods presented are excluded from this table. Foreclosed assets represent the recorded investment in assets taken during the period presented in foreclosure of defaulted loans, and are primarily comprised of commercial and residential real properties and generally measured at fair value less costs to sell. The fair value of the real property is generally determined using appraisals or other indications of market value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace. The Company estimates the fair value of its vehicles, which are obtained either through repossession or lease termination, using historical auction rates and current market values of used cars. The Company's LHFS portfolios that are measured at fair value on a nonrecurring basis primarily consist of personal, commercial, and RICs LHFS. The estimated fair value of these LHFS is calculated based on a combination of estimated market rates for similar loans with similar credit risks and a DCF analysis in which the Company uses significant unobservable inputs on key assumptions, including historical default rates and adjustments to reflect voluntary prepayments, prepayment rates, discount rates reflective of the cost of funding, and credit loss expectations. The lower of cost or fair value adjustment for personal LHFS includes customer default activity and adjustments related to the net change in the portfolio balance during the reporting period. For loans that are considered collateral-dependent, such as certain bankruptcy loans, impairment is measured based on the fair value of the collateral less its estimated cost to sell. For the underlying collateral, the estimated fair value is obtained using historical auction rates and current market levels of the collateral securing the loans. NOTE 13. FAIR VALUE (continued) The estimated fair value of goodwill is valued using unobservable inputs and is classified as Level 3. Goodwill is written down to fair value when, as a result of an annual or interim goodwill impairment test, an impairment is identified and recognized. Fair value is calculated using widely-accepted valuation techniques, such as the guideline public company market approach (earnings and price-to-tangible book value multiples of comparable public companies) and the income approach (the DCF method). The Company uses a combination of these accepted methodologies to determine the fair valuation of reporting units. Several factors are taken into account, including actual operating results, future business plans, economic projections, and market data. On a quarterly basis, the Company assesses whether or not impairment indicators are present. For information on the Company's goodwill impairment test and the results of the most recent goodwill impairment test, see Note 5 for a description of the Company's goodwill valuation methodology. For information on the amount of goodwill valued at fair value on a non-recurring basis as a result of the acquisition of PCH, refer to Note 1 to these Condensed Consolidated financial statements. Fair Value Adjustments The following table presents the increases and decreases in value of certain assets that are measured at fair value on a nonrecurring basis for which a fair value adjustment has been included in the Condensed Consolidated Statements of Operations relating to assets held at period-end: Three-Month Period Ended June 30, Six-Month Period Ended June 30 (in thousands) Statement of Operations Location 2022 2021 2022 2021 Impaired LHFI Credit loss expense / (benefit) (1) $ (1,107) $ (25,771) $ 9,568 $ (32,354) Foreclosed assets Miscellaneous income, net (1) — (263) — (321) LHFS Credit loss expense (77) — (77) — LHFS Miscellaneous income (7,447) — (7,447) — (1) Gains are disclosed as positive numbers while losses are shown as a negative number regardless of the line item being affected. (2) Refer to Note 5 for further information on the review of goodwill for impairment. Level 3 Inputs - Significant Recurring and Nonrecurring Fair Value Assets and Liabilities The following table presents quantitative information about the significant unobservable inputs within significant Level 3 recurring and nonrecurring assets and liabilities at June 30, 2022 and December 31, 2021, respectively: (dollars in thousands) Fair Value at June 30, 2022 (3) Valuation Technique Unobservable Inputs Range Financial Assets: Trading securities 1,402 Consensus pricing Offered quotes 1.53 % MSRs $ 104,411 DCF CPR (1) 6.99% - 54.22% (7.97%) Discount rate (2) 9.35 % (1) Average CPR projected from collateral stratified by loan type and note rate. Weighted average amount was developed by weighting the associated relative unpaid principal balances. (2) Average discount rate from collateral stratified by loan type and note rate. Weighted average amount was developed by weighting the associated relative unpaid principal balances. (3) Excluded insignificant Level 3 assets and liabilities. NOTE 13. FAIR VALUE (continued) (dollars in thousands) Fair Value at December 31, 2021 (3) Valuation Technique Unobservable Inputs Range Financial Assets: MSRs $ 79,107 DCF CPR (2) 7.42% - 82.71% (12.86%) Discount rate (3) 9.35 % (1), (2), (3) - See corresponding footnotes to the June 30, 2022 Level 3 significant inputs table above. Fair Value of Financial Instruments The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company's financial instruments are as follows: June 30, 2022 December 31, 2021 (in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Carrying Value Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 10,468,011 $ 10,468,011 $ 10,468,011 $ — $ — $ 19,305,530 $ 19,305,530 $ 19,305,530 $ — $ — Federal funds sold and securities purchased under resale agreements or similar arrangements 13,747,936 13,690,778 — 13,690,778 — 5,346,468 5,372,052 — 5,372,052 — Investments in debt securities AFS 8,024,675 8,024,675 236,025 7,788,650 — 11,313,937 11,313,937 73,618 11,240,319 — Investments in debt securities HTM 9,437,767 8,662,504 — 8,662,504 — 6,702,471 6,629,206 — 6,629,206 — Trading securities and other investments (2) 5,378,817 5,378,953 822,763 4,554,788 1,402 285,791 286,526 64 286,462 — LHFI, net 86,206,812 89,711,110 — 12,562 89,698,548 85,614,402 89,039,439 — 17,180 89,022,259 LHFS 256,898 256,898 — — 256,898 255,023 255,023 — 166,811 88,212 Restricted cash 5,317,599 5,317,599 5,317,599 — — 5,711,705 5,711,705 5,711,705 — — MSRs 104,411 104,411 — — 104,411 79,107 79,107 — — 79,107 Derivatives 956,984 956,984 4,170 952,714 100 661,080 661,080 — 658,187 2,893 Financial liabilities: Deposits (1) 2,043,352 2,014,859 — 2,014,859 — 2,524,471 2,524,707 — 2,524,707 — Federal funds purchased and securities loaned or sold under repurchase agreements 16,004,022 15,996,704 — 15,996,704 — 5,258,875 5,258,874 — 5,258,874 — Trading liabilities 2,167,354 2,167,354 1,844,686 322,668 — 62 62 — 62 — Borrowings and other debt obligations 43,160,191 42,802,202 — 35,404,624 7,397,578 41,133,187 41,600,737 — 33,874,253 7,726,484 Derivatives 1,463,749 1,463,749 — 1,462,284 1,465 690,213 690,213 — 687,846 2,367 (1) This line item excludes deposit liabilities with no defined or contractual maturities in accordance with ASU 2016-01. ( 2) This line item includes CDs with a maturity greater than 90 days and investments in trading securities. NOTE 13. FAIR VALUE (continued) Valuation Processes and Techniques - Financial Instruments The preceding tables present disclosures about the fair value of the Company's financial instruments. Those fair values for certain instruments are presented based upon subjective estimates of relevant market conditions at a specific point in time and information about each financial instrument. In cases in which quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. These techniques involve uncertainties resulting in variability in estimates affected by changes in assumptions and risks of the financial instruments at a certain point in time. Therefore, the derived fair value estimates presented above for certain instruments cannot be substantiated by comparison to independent markets. In addition, the fair values do not reflect any premium or discount that could result from offering for sale at one time an entity’s entire holding of a particular financial instrument, nor do they reflect potential taxes and the expenses that would be incurred in an actual sale or settlement. Accordingly, the aggregate fair value amounts presented above do not represent the underlying value of the Company. The following methods and assumptions were used to estimate the fair value of each class of financial instruments not measured at fair value on the Condensed Consolidated Balance Sheets: Cash, cash equivalents and restricted cash Cash and cash equivalents include cash and due from depository institutions, interest-bearing deposits in other banks, federal funds sold, and securities purchased under agreements to resell. The related fair value measurements have been classified as Level 1, since their carrying value approximates fair value due to the short-term nature of the asset. Restricted cash is related to cash restricted for investment purposes, cash posted for collateral purposes, cash advanced for loan purchases, and lockbox collections. Cash and cash equivalents, including restricted cash, have maturities of three months or less and, accordingly, the carrying amount of these instruments is deemed to be a reasonable estimate of fair value. Securities Financing Activities No quoted prices exist for Securities Financing Activities, so fair value is determined using a discounted cash flow technique. Cash flows are estimated based on the terms of the contract. These cash flows are discounted using interest rates appropriate to the maturity of the instrument as well as the nature of the underlying collateral. Securities Financing Activities are classified as Level 2. At June 30, 2022 , the fair value of the underlying collateral was $43.0 billion before netting of $26.5 billion, all of which was sold or re-pledged. Investmen |
NON-INTEREST INCOME AND OTHER E
NON-INTEREST INCOME AND OTHER EXPENSES | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
NON-INTEREST INCOME AND OTHER EXPENSES | NON-INTEREST INCOME AND OTHER EXPENSES The following table presents the details of the Company's Non-interest income for the following periods: Three-Month Period Ended June 30, Six-Month Period Ended June 30 (in thousands) 2022 2021 2022 2021 Non-interest income: Consumer and commercial fees $ 100,334 $ 106,926 $ 197,824 $ 226,145 Lease income 678,655 732,892 1,349,859 1,505,784 Capital market revenue 44,316 60,146 109,075 141,935 Miscellaneous income, net Mortgage banking income, net 5,936 675 17,317 21,413 BOLI 14,340 15,387 29,957 30,933 Net gain on sale of operating leases 20,216 178,544 46,261 286,807 Asset and wealth management fees 66,857 58,744 133,559 117,471 Gain / (loss) on sale of non-mortgage loans (6,873) 14,831 (6,549) (23,185) Other miscellaneous income / (loss), net 14,858 8,772 28,638 44,236 Net gain on sale of investment securities 10,759 5,370 24,714 15,243 Total Non-interest income $ 949,398 $ 1,182,287 $ 1,930,655 $ 2,366,782 Disaggregation of Revenue from Contracts with Customers The following table presents the Company's Non-interest income disaggregated by revenue source: Three-Month Period Ended June 30, Six-Month Period Ended June 30 (in thousands) 2022 2021 2022 2021 Non-interest income: In-scope of revenue from contracts with customers: Depository services (1) $ 41,408 $ 43,505 $ 81,308 $ 86,540 Commission and trailer fees (2) 60,599 53,525 119,785 108,064 Interchange income, net (2) 18,547 18,253 36,565 34,762 Underwriting service fees (2) 18,717 35,846 54,379 94,919 Asset and wealth management fees (2) 40,721 31,507 78,645 63,749 Other revenue from contracts with customers (2) 11,676 8,953 23,680 21,033 Total in-scope of revenue from contracts with customers 191,668 191,589 394,362 409,067 Out-of-scope of revenue from contracts with customers: Consumer and commercial fees (3) 41,194 47,386 82,728 109,335 Lease income 678,655 732,892 1,349,859 1,505,784 Other miscellaneous income / (loss), net (3) 27,122 205,050 78,992 327,353 Net gain/(loss) on sale of investment securities 10,759 5,370 24,714 15,243 Total out-of-scope of revenue from contracts with customers 757,730 990,698 1,536,293 1,957,715 Total non-interest income $ 949,398 $ 1,182,287 $ 1,930,655 $ 2,366,782 (1) Primarily recorded in the Company's Consolidated Statements of Operations within Consumer and commercial fees. (2) Primarily recorded in the Company's Consolidated Statements of Operations within Miscellaneous income, net. (3) The balance presented excludes certain revenue streams that are considered in-scope and presented above. NOTE 14. NON-INTEREST INCOME AND OTHER EXPENSES (continued) Other Expenses The following table presents the Company's other expenses for the following periods: Three-Month Period Ended June 30, Six-Month Period Ended June 30 (in thousands) 2022 2021 2022 2021 Other expenses: Amortization of intangibles $ 10,495 $ 10,746 $ 23,034 $ 22,033 Deposit insurance premiums and other expenses 12,784 9,648 21,015 18,969 Other administrative expenses 97,739 82,466 186,491 155,442 Other miscellaneous expenses 6,597 5,637 32,312 16,475 Total Other expenses $ 127,615 $ 108,497 $ 262,852 $ 212,919 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES An income tax expense of $268.7 million and $658.5 million were recorded for the years-to-date ended June 30, 2022 and 2021, respectively. This resulted in an ETR of 20.3% and 24.2% for the years-to-date ended June 30, 2022 and 2021, respectively. The decrease in the ETR for the year-to-date ended June 30, 2022, compared to the year-to-date ended June 30, 2021, was primarily the result of a decrease in expected pre-tax income for 2022 compared to 2021. The Company is subject to the income tax laws of the U.S., its states and municipalities and certain foreign countries. These tax laws are complex and are potentially subject to different interpretations by the taxpayer and the relevant governmental taxing authorities. In establishing a provision for income tax expense, the Company must make judgments and interpretations about the application of these inherently complex tax laws. Actual income taxes paid may vary from estimates depending upon changes in income tax laws, actual results of operations, and the final audit of tax returns by taxing authorities. Tax assessments may arise several years after tax returns have been filed. The Company reviews its tax balances quarterly and, as new information becomes available, the balances are adjusted as appropriate. The Company is subject to ongoing tax examinations and assessments in various jurisdictions. NOTE 15. INCOME TAXES (continued) With few exceptions, the Company is no longer subject to federal and non-U.S. income tax examinations by tax authorities for years prior to 2011 and state income tax examinations for years prior to 2006. The Company applies an aggregate portfolio approach whereby income tax effects from AOCI are released only when an entire portfolio (i.e., all related units of account) of a particular type is liquidated, sold or extinguished. The Company had a net deferred tax liability balance of $562.7 million at June 30, 2022 (consisting of a deferred tax asset balance of $146.9 million and a deferred tax liability balance of $709.7 million with respect to jurisdictional netting), compared to a net deferred tax liability balance of $683.4 million at December 31, 2021 (consisting of a deferred tax asset balance of $87.9 million and a deferred tax liability balance of $771.3 million). The $120.7 million decrease in net deferred liability for the year-to-date ended June 30, 2022 was primarily due to an increase in the AOCI deferred tax asset due to a loan transfer from AFS to HTM and a decrease in the deferred tax liability related to leasing transactions partially offset by a decrease in net operating loss carryforwards. |
COMMITMENTS, CONTINGENCIES, AND
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND GUARANTEES | COMMITMENTS, CONTINGENCIES, AND GUARANTEES Off-Balance Sheet Risk - Financial Instruments In the normal course of business, the Company utilizes a variety of financial instruments with off-balance sheet risk to meet the financing needs of its customers and manage its exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, letters of credit, loans sold with recourse, forward contracts, and interest rate and cross currency swaps, caps and floors. These financial instruments may involve, to varying degrees, elements of credit, liquidity, and interest rate risk in excess of the amount recognized on the Condensed Consolidated Balance Sheets. The contractual or notional amounts of these financial instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit, letters of credit and loans sold with recourse is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. For forward contracts and interest rate swaps, caps and floors, the contract or notional amounts do not represent exposure to credit loss. The Company controls the credit risk of its forward contracts and interest rate swaps, caps and floors through credit approvals, limits and monitoring procedures. See Note 12 to these Condensed Consolidated Financial Statements for discussion of all derivative contract commitments. NOTE 16. COMMITMENTS, CONTINGENCIES, AND GUARANTEES (continued) The following table details the amount of commitments at the dates indicated: Other Commitments June 30, 2022 December 31, 2021 (in thousands) Commitments to extend credit $ 28,301,108 $ 27,648,128 Letters of credit 1,317,513 1,374,081 Commitments to sell loans — 56,725 Recourse exposure on sold loans 21,021 19,095 Total commitments $ 29,639,642 $ 29,098,029 Commitments to Extend Credit Commitments to extend credit generally have fixed expiration dates, are variable rate, and contain provisions that permit the Company to terminate or otherwise renegotiate the contracts in the event of a significant deterioration in the customer’s credit quality. These arrangements normally require payment of a fee by the cu stomer, the pricing of which is based on prevailing market conditions, credit quality, probability of funding, and other relevant factors. Since many of these commitments are expected to expire without being drawn upon, the contract amounts are not necessarily indicative of future cash requirements. Included within the reported balances for Commitments to extend credit at June 30, 2022 and December 31, 2021 were $4.2 billion and $3.8 billion, respectively, of commitments that can be canceled by the Company without notice. Commitments to extend credit also include amounts committed by the Company to fund its investments in CRA, LIHTC, and other equity method investments in which it is a limited partner. Letters of Credit The Company’s letters of credit meet the definition of a guarantee. Letters of credit commit the Company to make payments on behalf of its customers if specified future events occur. The guarantees are primarily issued to su pport public and private borrowing arrangements. The weighted average term of these commitments at June 30, 2022 was 14.6 months. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. In the event of a requested draw by the beneficiary that complies with the terms of the letter of credit, the Company would be required to honor the commitment. The Company has various forms of collateral for these letters of credit, including real estate assets and other customer business assets. The maximum undiscounted exposure related to these commitments at June 30, 2022 was $1.3 billion. The fees related to letters of credit are deferred and amortized over the lives of the respective commitments, and were immaterial to the Company’s financial statements at June 30, 2022. Management believes that the utilization rate of these letters of credit will continue to be substantially less than the amount of the commitments, as has been the Company’s experience to date. The credit risk associated with letters of credit is monitored using the same risk rating system utilized within the loan and financing lease portfolio. As of June 30, 2022 and December 31, 2021, the liability related to unfunded lending commitments was $86.2 million and $104.1 million, respectively. Unsecured Revolving Lines of Credit Such commitments arise primarily from agreements with customers for unused lines of credit on unsecured revolving accounts and credit cards, provided there is no violation of conditions in the underlying agreement. These commitments, substantially all of which the Company can terminate at any time and which do not necessarily represent future cash requirements, are reviewed periodically based on account usage, customer creditworthiness and loan qualifications. Loans Sold with Recourse The Company has loans sold with recourse that meet the definition of a guarantee. For loans sold with recourse under the terms of its multifamily sales program with the FNMA, the Company retained a portion of the associated credit risk. NOTE 16. COMMITMENTS, CONTINGENCIES, AND GUARANTEES (continued) Commitments to Sell Loans The Company enters into forward contracts relating to its mortgage banking business to hedge the exposures from commitments to make new residential mortgage loans with existing customers and from mortgage loans classified as LHFS. These contracts mature in less than one year. Securities Borrowed and Lending Subject to Repurchase or Resale Agreements In 2021, the Company began entering into Securities Financing Activities primarily to deploy the Company’s excess cash and investments. Refer to Note 11 to these Condensed Consolidated Financial Statements for further discussion of the Company's commitments in connection with those agreements. SC Commitments The following table summarizes liabilities recorded for commitments and contingencies as of June 30, 2022 and December 31, 2021 , all of which are included in Accounts payable and accrued expenses in the accompanying Condensed Consolidated Balance Sheets: Agreement or Legal Matter Commitment or Contingency June 30, 2022 December 31, 2021 (in thousands) MPLFA Revenue-sharing and gain/(loss), net-sharing payments $ 26,538 $ 41,995 Agreement with Bank of America Servicer performance fee 462 462 Agreement with CBP Loss-sharing payments 250 273 Other contingencies Consumer arrangements — 6,937 Following is a description of the agreements and legal matters pursuant to which the liabilities in the preceding table were recorded. MPLFA Under the terms of the MPLFA, SC must make revenue-sharing payments to Stellantis and also must share with Stellantis when residual gains/(losses) on leased vehicles exceed a specified threshold. The MPLFA also requires that SC maintain at least $5.0 billion in funding available for floor plan loans and $4.5 billion of financing dedicated to Stellantis retail financing. In turn, Stellantis must provide designated minimum threshold percentages of its Subvention business to SC. Agreements In connection with the sale of RICs through securitizations and other sales, SC has made standard representations and warranties customary to the consumer finance industry. Violations of these representations and warranties may require SC to repurchase loans previously sold to on- or off-balance sheet Trusts or other third parties. As of June 30, 2022, there were no loans that were the subject of a demand to repurchase or replace for breach of representations and warranties for SC's ABS or other sales. In the opinion of management, the potential exposure of other recourse obligations related to SC’s RIC sale agreements is not expected to have a material adverse effect on the Company's or SC’s business, consolidated financial position, results of operations, or cash flows. Santander has provided guarantees on the covenants, agreements, and obligations of SC under the governing documents of its warehouse facilities and privately issued amortizing notes. These guarantees are limited to the obligations of SC as servicer. In November 2015, SC executed a forward flow asset sale agreement with a third party under the terms of which SC is committed to sell $350.0 million in charged-off loan receivables in bankruptcy status on a quarterly basis. However, any sale of more than $275.0 million is subject to a market price check. The remaining aggregate commitment as of June 30, 2022 and December 31, 2021 not subject to a market price check was $2.5 million and $3.0 million, respectively. NOTE 16. COMMITMENTS, CONTINGENCIES, AND GUARANTEES (continued) Other Off-Balance Sheet Risk Other off-balance sheet risk stems from financial instruments that do not meet the definition of guarantees under applicable accounting guidance and from other relationships that include items such as indemnifications provided in the ordinary course of business and intercompany guarantees. Legal and Regulatory Proceedings The Company, including its subsidiaries, is and in the future periodically expects to be party to, or otherwise involved in, various claims, disputes, lawsuits, investigations, regulatory matters and other legal matters and proceedings that arise in the ordinary course of business. In view of the inherent difficulty of predicting the outcome of any such claim, dispute, lawsuit, investigation, regulatory matter and/or legal proceeding, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories or involve a large number of parties, the Company generally cannot predict the eventual outcome of the pending matters, the timing of the ultimate resolution of the matters, or the eventual loss, fines or penalties related to the matters, if any. Accordingly, except as provided below, the Company is unable to reasonably estimate a range of its potential exposure, if any, to these claims, disputes, lawsuits, investigations, regulatory matters and other legal proceedings at this time. It is reasonably possible that actual outcomes or losses may differ materially from the Company's current assessments and estimates, and any adverse resolution of any of these matters against it could materially and adversely affect the Company's business, financial position, liquidity, and results of operations. In accordance with applicable accounting guidance, the Company establishes an accrued liability for legal and regulatory proceedings when those matters present material loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. When a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. As a legal or regulatory proceeding develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether the matter presents a material loss contingency that is probable and estimable. If a determination is made during a given quarter that a material loss contingency is probable and estimable, an accrued liability is established during such quarter with respect to such loss contingency, and the Company continues to monitor the matter for further developments that could affect the amount of the accrued liability previously established. As of June 30, 2022 and December 31, 2021, the Company accrued aggregate legal and regulatory liabilities of approximately $27.3 million and $44.0 million, respectively. Further, the Company estimates the aggregate range of reasonably possible losses for legal and regulatory proceedings, in excess of reserves established, of up to approximately $11.0 million as of June 30, 2022. Set forth below are descriptions of the material lawsuits, regulatory matters and other legal proceedings to which the Company is subject. SBNA Matters Mortgage Escrow Interest Putative Class Action SBNA is a defendant in a putative class action lawsuit in the United States District Court, Southern District of New York, captioned Daniel and Rebecca Ruf-Tepper v. Santander Bank, N.A., No. 20-cv-00501. The Tepper Lawsuit, filed in January 2020, alleges that SBNA is obligated to pay interest on mortgage escrow accounts pursuant to state law. Plaintiffs filed an amended complaint and SBNA has filed a motion to dismiss. On June 9, 2022, the court preliminarily approved a settlement with SBNA pursuant to which SBNA will pay a total of $2 million to resolve the litigation. No final approval hearing date has been scheduled. Overtime Putative Class Action SBNA is a defendant in a putative class action lawsuit in the United States District Court, District of New Jersey, captioned Crystal Sanchez, et. Al. v. Santander Bank, N.A., No. 17-cv-5775. The lawsuit alleges that SBNA failed to pay overtime to current and former branch operations managers. On January 28, 2022, plaintiffs filed a motion seeking preliminary approval of a settlement with SBNA pursuant to which SBNA will pay a total of $4.25 million to resolve the litigation. On June 21, 2022, the court granted final approval of the settlement. NOTE 16. COMMITMENTS, CONTINGENCIES, AND GUARANTEES (continued) SC Matters Consumer Lending Cases The Company and its subsidiaries are also party to various lawsuits pending in federal and state courts alleging violations of state and federal consumer lending laws, including, without limitation, the Equal Credit Opportunity Act, the Fair Debt Collection Practices Act, the Fair Credit Reporting Act, Section 5 of the Federal Trade Commission Act, the Telephone Consumer Protection Act, the Truth in Lending Act, wrongful repossession laws, usury laws and laws related to unfair and deceptive acts or practices. In general, these cases seek damages and equitable and/or other relief. Kelly v. SC. A putative Pennsylvania-only class action pending in the United States District Court for the Eastern District of Pennsylvania, captioned Hugh and Christina Kelly v. Santander Consumer USA Holdings Inc., 2:20-cv-03698, alleges that SC violated the Uniform Commercial Code and Pennsylvania Motor Vehicle Sales Finance Act, and that repossessions were not commercially reasonable or done in good faith when the post-repossession notice included a storage fee of $25 that was less than the stated amount. Plaintiffs also allege that SC failed to inform the consumers of a required fee to retrieve their personal affects. Plaintiffs allege that any fee charged by a recovery agent or auction house was impermissible due to SC’s failure to disclose them. SC filed an answer to the complaint. Regulatory Investigations and Proceedings SC is party to, or is periodically otherwise involved in, reviews, investigations, examinations and proceedings (both formal and informal), and information-gathering requests, by government and self-regulatory agencies, including the FRB of Boston, the CFPB, the DOJ, the SEC, the Federal Trade Commission and various state regulatory and enforcement agencies. IHC Matters Puerto Rico Municipal Bond Insurer Litigation: On August 8, 2019, bond insurers National Public Finance Guarantee Corporation and MBIA Insurance Corporation filed suit in Puerto Rico state court against eight Puerto Rico municipal bond underwriters, including SSLLC, alleging that the underwriters made misrepresentations in connection with the issuance of the debt and that the bond insurers relied on such misrepresentations in agreeing to insure certain of the bonds. The complaint alleges damages of not less than $720.0 million. NOTE 16. COMMITMENTS, CONTINGENCIES, AND GUARANTEES (continued) On June 2, 2021, the court denied the defendants’ motion to dismiss. Defendants appealed the decision and, on December 17, 2021, the Puerto Rico Court of Appeals reversed the trial court decision and dismissed the complaint. The Court of Appeals denied plaintiffs' motion to reconsider the court's decision and plaintiffs have sought permission to appeal to the Puerto Rico Supreme Court. In May 2022, the Puerto Rico Supreme Court denied plaintiffs’ permission to appeal the decision; plaintiffs have asked the Supreme Court to reconsider its decision. On October 28, 2020, bond insurer Ambac Assurance Corporation filed an amended complaint in Puerto Rico state court adding SSLLC and four other Puerto Rico municipal bond underwriters to a pending suit against seven underwriters, alleging that the underwriters made misrepresentations in connection with the issuance of the debt and that Ambac relied on such misrepresentations in agreeing to insure certain of the bonds. The amended complaint alleges damages of not less than $508 million. On July 30, 2021, the court granted the defendants’ motion to dismiss the complaint , and the Puerto Rico Court of Appeals affirmed the dismissal. Plaintiffs have appealed, and, on May 31, 2022, the Puerto Rico Supreme Court refused to hear the appeal. On November 27, 2020, bond insurer Financial Guaranty Insurance Company filed suit in Puerto Rico state court against twelve Puerto Rico municipal bond underwriters, including SSLLC, alleging that the underwriters made misrepresentations in connection with the issuance of the debt and that Financial Guaranty Insurance Company relied on such misrepresentations in agreeing to insure certain of the bonds. The complaint alleges damages of not less than $447 million. On February 1, 2021, the defendants moved to dismiss the complaint. On July 9, 2021, the court granted the defendants’ motion to dismiss. Plaintiff has appealed. Real Legacy Assurance ERISA Litigation: On April 13, 2020, participants of the Real Legacy Assurance Plan, a pension plan, filed an amended complaint adding SSLLC as a defendant to an ERISA putative class action pending against the owner of Real Legacy, Real Legacy Board members, the Plan’s Trustee, actuaries and other defendants. The case is pending in the United States District Court for the District of Puerto Rico and captioned Vega-Ortiz et al v. Cooperativa de Seguros Multiples de Puerto Rico, et al, Civ. No. 3:19-cv-02056. The amended complaint alleges that SSLLC served as an investment manager to the Real Legacy Assurance Plan and breached its fiduciary duties by failing to ensure the Plan was adequately funded. On November 24, 2021, the court denied each of the defendants’ motions to dismiss. SSLLC filed its Answer and discovery is ongoing. On July 1, 2022, the plaintiff filed its motion for class certification. These matters are ongoing and could in the future result in the imposition of damages, fines or other penalties. No assurance can be given that the ultimate outcome of these matters or any resulting proceedings would not materially and adversely affect the Company's business, financial condition and results of operations. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company and its affiliates have various debt and derivative agreements with Santander. For further details of these agreements, see Note 10 and Note 20 to the Consolidated Financial Statements of the Company's Annual Report on Form 10-K for the year ended December 31, 2021. The Company and its affiliates also entered into or were subject to various service agreements with Santander and its affiliates. Each of these agreements was made in the ordinary course of business and on market terms. At June 30, 2022, affiliates of Santander that are not consolidated by SHUSA had deposits with SBNA o f $15.0 million and $2.6 billion as of June 30, 2022 and December 31, 2021, respectively. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION Business Segment Products and Services In the first quarter of 2022, the Company announced organizational changes to meet the evolving needs of its customers and to assist management in making strategic decisions on the allocation of its resources. These changes primarily resulted in the creation of a new Auto reportable segment that includes the prior SC segment, SBNA's auto loan and lease portfolio business, previously in the CBB segment, and SBNA's dealer financing business, previously in the CRE&VF segment. In addition, the Company has established a new reportable segment for its Wealth Management business, previously included in Other. The Company has also aligned the insurance and investment services activities to CBB previously reported in Other. These changes were effective for internal reporting on March 31, 2022. Prior period information presented below has been reclassified to reflect these changes. The Company’s reportable segments are focused principally around the customers the Company serves. The Company has identified the following reportable segments: Auto, CBB, C&I, CRE, CIB, and Wealth Management. • The Auto segment includes the Company's consumer and commercial auto loans and leases and the Company's commercial loans to dealers and dealer floor plan financing products. This includes the Company's specialized consumer finance subsidiary focused on vehicle finance and third-party servicing. The specialized consumer finance primary business is the indirect origination of RICs, principally through manufacturer-franchised dealers in connection with their sale of new and used vehicles to retail consumers. The Company offers a full spectrum of auto financing products and services to captive financing companies. These products and services include consumer RICs and leases, as well as dealer loans for inventory, construction, real estate, working capital and revolving lines of credit. SC also originates vehicle loans through a web-based direct lending program, purchases vehicle RICs from other lenders, and services automobile, recreational and marine vehicle portfolios for other lenders. All intercompany revenue and fees between SBNA and SC are eliminated in the consolidated results of the Company. • The CBB segment includes the products and services provided to SBNA consumer and small business banking customers, including consumer deposit, small business banking, unsecured lending and investment services. This segment offers a wide range of products and services to consumers and business banking customers, including demand and interest-bearing demand deposit accounts, money market and savings accounts, CDs and retirement savings products. It also offers lending products such as credit cards, and business loans such as business lines of credit and commercial cards. In addition, SBNA makes investment services available to its retail customers, including products such as annuities, mutual funds, managed accounts and insurance products through a networking agreement with a consolidated affiliate. Santander Universities, which provides grants and scholarships to universities and colleges as a way to foster education through research, innovation and entrepreneurship, is the last component of this segment. • The C&I segment currently provides commercial lines, loans, letters of credit, receivables financing, cash management and deposit services to lower middle market commercial customers and to medium- and large-sized commercial customers, as well as financing and deposits for government entities. This segment also provides niche product financing for specific industries. • The CRE segment offers CRE loans, CEVF, and multifamily loans, as well as cash management and deposit services to customers. This category also includes SBNA’s community development finance activities, including originating CRA-eligible loans and making CRA-eligible investments. • The CIB segment serves the needs of global corporate and institutional customers by leveraging the international footprint of Santander to provide financing and banking services to corporations with over $500 million in annual revenues. CIB also includes the Company's institutional broker-dealers that provide services in investment banking, sales, trading and equity research reports. CIB's offerings and strategy are based on Santander's local and global capabilities in wholesale banking. • The Wealth Management segment consists of the Company's international private banking and financial operations Services include the full range of banking and asset management services to foreign individuals and corporations based primarily in Latin America SBNA also offers cus tomer-related derivatives to hedge interest rate risk, and for C&I, CRE, commercial loans to dealers in the auto segment and CIB offers derivatives relating to foreign exchange and lending arrangements. See Note 12 to the Consolidated Financial Statements for additional details. The Other category includes certain immaterial subsidiaries, the unallocated interest expense on the Company's borrowings and other debt obligations and certain unallocated corporate income and indirect expenses. NOTE 18. BUSINESS SEGMENT INFORMATION (continued) The Company’s segment results are derived from the Company’s business unit profitability reporting system by specifically attributing managed balance sheet assets, deposits and other liabilities and their related interest income or expense to each of the segments. Funds transfer pricing methodologies are utilized to allocate a cost for funds used or a credit for funds provided to business line deposits, loans and selected other assets using a matched funding concept. The methodology includes a liquidity premium adjustment, which considers an appropriate market participant spread for commercial loans and deposits by analyzing the mix of borrowings available to the Company with comparable maturity periods. Other income and expenses are managed directly by each reportable segment, including fees, service charges, salaries and benefits, and other direct expenses, as well as certain allocated corporate expenses, and are accounted for within each segment’s financial results. Accounting policies for the lines of business are the same as those used in preparation of the Condensed Consolidated Financial Statements with respect to activities specifically attributable to each business line. However, the preparation of business line results requires management to establish methodologies to allocate funding costs and benefits, expenses and other financial elements to each line of business. Where practical, the results are adjusted to present consistent methodologies for the segments. The application and development of management reporting methodologies is a dynamic process and is subject to periodic enhancements. The implementation of these enhancements to the internal management reporting methodology may materially affec t the results disclosed for each segment with no impact on consolidated results. Whenever significant changes to management reporting methodologies take place, prior period information is reclassified wherever practicable. Results of Segments The following tables present certain information regarding the Company’s segments. Three-Month Period Ended SHUSA Reportable Segments June 30, 2022 Auto CBB C&I CRE CIB (4) Wealth Management Other (1) Total (in thousands) Net interest income $ 1,021,335 $ 331,432 $ 75,795 $ 84,747 $ 48,361 $ 45,227 $ (73,485) $ 1,533,412 Non-interest income 696,522 78,885 14,317 7,691 70,077 62,587 19,319 949,398 Credit loss expense / (benefit) 334,181 58,299 8,622 4,550 (3,003) — 1,551 404,200 Total expenses 830,072 383,486 64,700 29,410 117,092 59,375 48,937 1,533,072 Income/(loss) before income taxes 553,604 (31,468) 16,790 58,478 4,349 48,439 (104,654) 545,538 (1) Other includes the results of the immaterial entities, earnings from non-strategic assets, the investment portfolio, interest expense on SBNA’s and the Company's borrowings and other debt obligations, amortization of intangible assets and certain unallocated corporate income and indirect expenses. For the Three-Month Period Ended SHUSA Reportable Segments June 30, 2021 Auto CBB C&I CRE & VF CIB (4) Wealth Management Other (1) Total (in thousands) Net interest income $ 1,096,871 $ 301,416 $ 72,491 $ 82,783 $ 30,244 $ 23,171 $ (75,141) $ 1,531,835 Non-interest income 928,581 85,911 18,617 15,161 54,529 62,996 16,492 1,182,287 Credit loss expense / (benefit) (271,712) (12,915) (20,721) 2,573 (13,633) (97) (777) (317,282) Total expenses 855,243 372,913 62,903 29,138 62,779 52,755 57,151 1,492,882 Income/(loss) before income taxes 1,441,921 27,329 48,926 66,233 35,627 33,509 (115,023) 1,538,522 (1) Refer to corresponding notes above. NOTE 18. BUSINESS SEGMENT INFORMATION (continued) Six-Month Period Ended SHUSA Reportable Segments June 30, 2022 Auto CBB C&I CRE CIB Wealth Management Other (1) Total (in thousands) Net interest income $ 2,072,601 $ 633,387 $ 143,457 $ 163,182 $ 74,250 $ 64,370 $ (137,830) $ 3,013,417 Non-interest income 1,403,036 157,038 30,257 23,031 137,919 140,237 39,137 1,930,655 Credit loss expense / (benefit) 554,707 65,343 12,256 (14,788) 3,390 — 101 621,009 Total expenses 1,632,156 767,436 132,187 58,609 192,647 121,032 95,695 2,999,762 Income/(loss) before income taxes 1,288,774 (42,354) 29,271 142,392 16,132 83,575 (194,489) 1,323,301 Total assets 61,804,866 12,880,656 6,661,483 18,481,532 28,747,499 8,304,682 28,443,114 165,323,832 (1) Other includes the results of the immaterial entities, earnings from non-strategic assets, the investment portfolio, interest expense on SBNA’s and the Company's borrowings and other debt obligations, amortization of intangible assets and certain unallocated corporate income and indirect expenses. Six-Month Period Ended SHUSA Reportable Segments June 30, 2021 Auto CBB C&I CRE CIB (4) Wealth Management Other (1) Total (in thousands) Net interest income $ 2,169,118 $ 703,754 $ 146,266 $ 168,066 $ 57,655 $ 46,851 $ (140,543) $ 3,151,167 Non-interest income 1,846,438 153,120 35,019 20,777 132,078 126,242 53,108 2,366,782 Credit loss expense / (benefit) (150,327) (17,236) (52,062) 4,349 (22,327) (170) (3,443) (241,216) Total expenses 1,745,835 775,249 126,163 57,163 130,109 103,317 103,474 3,041,310 Income/(loss) before income taxes 2,420,048 98,861 107,184 127,331 81,951 69,946 (187,466) 2,717,855 Total assets 62,017,708 12,765,546 7,470,239 17,792,008 11,788,210 8,149,788 35,202,144 155,185,643 (1) Refer to corresponding notes above. |
DESCRIPTION OF BUSINESS, BASI_2
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These Condensed Consolidated Financial Statements include the accounts of the Company and its consolidated subsidiaries, including certain Trusts that are considered VIEs. The Company generally consolidates VIEs for which it is deemed to be the primary beneficiary and VOEs in which the Company has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. These Condensed Consolidated Financial Statements have been prepared in accordance with GAAP and pursuant to SEC regulations. In the opinion of management, the accompanying Condensed Consolidated Financial Statements reflect all adjustments of a normal and recurring nature necessary for a fair statement of the Consolidated Balance Sheets, Statements of Operations, Statements of Comprehensive Income, Statements of Stockholder's Equity and Statements of Cash Flow for the periods indicated, and contain adequate disclosure to make the information presented not misleading. Certain prior-year amounts have been reclassified to conform to the current year presentation. These reclassifications did not have a material impact on the Company's consolidated financial condition or results of operations. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates, and those differences may be material. The most significant estimates include the ACL, fair value measurements, expected end-of-term lease residual values, and goodwill. These estimates, although based on actual historical trends and modeling, may potentially show significant variances over time. |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted | Recently Adopted Accounting Standards Since January 1, 2022, the Company has not adopted any new accounting standards that had a material impact on the Company’s financial position or results of operations. Recently Issued Accounting Standards Not Yet Adopted In March 2022, the FASB issued ASU 2022-01 Derivatives and Hedging (Topic 815) Fair Value hedging – Portfolio Layer Method . This ASU expands the current last-of-layer method for fair value hedges of interest rate risk to allow multiple hedged layers of a closed portfolio. Under this updated guidance, entities can now hedge all financial assets under the portfolio layer method and designate multiple hedged layers within a single closed portfolio. The Company is evaluating the potential impact of the new standard on its hedge accounting program. NOTE 1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND ACCOUNTING POLICIES (continued) In March 2022, the FASB issued ASU 2022-02 Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructuring and Vintage Disclosures . This guidance removes the specific guidance for TDR designations and enhances disclosure requirements related to modifications of receivables made to borrowers experiencing financial difficulty. In addition, the standard requires disclosure of current-period gross write-offs by year of origination for financing receivables and net investment in leases. The new standard is effective January 1, 2023, and early adoption is permitted. The Company is evaluating the changes that will result from this standard. |
Credit Quality of Financing Receivables | Each commercial loan is evaluated to determine its risk rating at least annually. The indicators represent the rating for loans as of the date presented based on the most recent assessment performed. |
Securities Borrowed and Loaned | The Company may enter into Securities Financing Activities primarily to deploy the Company’s excess cash and investment positions. Securities Financing Activities are treated as collateralized financings and are included i n "F ederal funds sold and securities purchased under resale agreements or similar arrangements" an d "Federal funds purchased and securities loaned or sold under repurchase agreements" on the Company’s Condensed Consolidated Balance Sheets . Refer to Note 1 of the Company's Annual Report on Form 10-K for 2021 for further discussion of accounting for and the offsetting of securities financing assets and liabilities. |
Fair Value Measurements | The Company values assets and liabilities based on the principal market in which each would be sold (in the case of assets) or transferred (in the case of liabilities). The principal market is the forum with the greatest volume and level of activity. In the absence of a principal market, the valuation is based on the most advantageous market. In the absence of observable market transactions, the Company considers liquidity valuation adjustments to reflect the uncertainty in pricing the instruments. The fair value of a financial asset is measured on a stand-alone basis and cannot be measured as a group, with the exception of certain financial instruments held and managed on a net portfolio basis. In measuring the fair value of a nonfinancial asset, the Company assumes the highest and best use of the asset by a market participant, not just the intended use, to maximize the value of the asset. The Company also considers whether any credit valuation adjustments are necessary based on the counterparty's credit quality. Any models used to determine fair values or validate dealer quotes based on the descriptions below are subject to review and testing as part of the Company's model validation and internal control testing processes. The Company's Market Risk Department approves the methodologies used in the estimations of fair value, including the Company's Level 3 assets and liabilities. Price validation procedures are performed and the results are reviewed for Level 3 assets and liabilities by the Market Risk Department. Price validation procedures performed for these assets and liabilities can include comparing current prices to historical pricing trends by collateral type and vintage, comparing prices by product type to indicative pricing grids published by market makers, and obtaining corroborating dealer prices for significant securities. The Company reviews the assumptions utilized to determine fair value on a quarterly basis. Any changes in methodologies or significant inputs used in determining fair values are further reviewed to determine if a change in fair value level hierarchy has occurred. |
DESCRIPTION OF BUSINESS, BASI_3
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND ACCCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Fair Values of the Assets and Liabilities | The following are fair values of the assets and liabilities of PCH on the acquisition date: Balance at April 11, 2022 (in thousands) Fair value of consideration transferred $ 447,722 Fair value of assets acquired: Cash and cash equivalents (includes restricted cash) $ 56,023 Other investments - trading assets at fair value $ 5,121,331 Fed funds sold and securities purchased under resale agreements or similar arrangements $ 10,638,695 Other intangible assets $ 39,520 Other assets including premises and equipment $ 185,830 Total assets acquired $ 16,041,399 Fair value of liabilities acquired: Accounts payable, accrued expenses, and other liabilities $ 537,701 Fed funds purchased and securities loaned or sold under repurchase agreements $ 12,047,503 Trading liabilities $ 3,013,646 Borrowings and other debt obligations $ 162,938 Total liabilities acquired $ 15,761,788 Fair value of net assets acquired $ 279,611 Deferred taxes on purchase accounting fair value adjustments $ (3,460) Goodwill recognized $ 171,571 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Debt Securities, Available-for-sale | The following table presents the amortized cost, gross unrealized gains and losses and approximate fair values of investments in debt securities AFS at the dates indicated: June 30, 2022 December 31, 2021 (in thousands) Amortized Gross Gross Fair Amortized Gross Gross Fair U.S. Treasury securities $ 238,191 $ — $ (2,166) $ 236,025 $ 72,860 $ 758 $ — $ 73,618 Corporate debt securities 270,907 1 (455) 270,453 275,963 140 (96) 276,007 ABS 524,758 157 (15,697) 509,218 537,835 353 (466) 537,722 MBS: GNMA - Residential 3,932,883 2 (226,028) 3,706,857 4,064,718 21,169 (19,692) 4,066,195 GNMA - Commercial 713,731 170 (69,239) 644,662 2,086,437 2,060 (55,658) 2,032,839 FHLMC and FNMA - Residential 2,833,528 137 (276,900) 2,556,765 4,267,757 14,616 (62,732) 4,219,641 FHLMC and FNMA - Commercial 102,110 19 (1,434) 100,695 104,383 3,591 (59) 107,915 Total investments in debt securities AFS $ 8,616,108 $ 486 $ (591,919) $ 8,024,675 $ 11,409,953 $ 42,687 $ (138,703) $ 11,313,937 |
Summary of Held-to-maturity Securities | The following table presents the amortized cost, gross unrealized gains and losses and approximate fair values of investments in debt securities HTM at the dates indicated: June 30, 2022 December 31, 2021 (in thousands) Amortized Gross Gross Fair Amortized Gross Gross Fair ABS $ 68,319 $ — $ (889) $ 67,430 $ 89,722 $ 319 $ — $ 90,041 MBS: GNMA - Residential 2,957,907 1,641 (314,941) 2,644,607 2,862,595 13,412 (45,102) 2,830,905 GNMA - Commercial 4,860,573 229 (402,995) 4,457,807 3,750,154 25,524 (67,418) 3,708,260 FHLMC and FNMA - Residential 1,550,968 139 (58,447) 1,492,660 — — — — Total investments in debt securities HTM $ 9,437,767 $ 2,009 $ (777,272) $ 8,662,504 $ 6,702,471 $ 39,255 $ (112,520) $ 6,629,206 |
Summary of Investments Classified by Contractual Maturity Date | Contractual maturities of the Company’s investments in debt securities AFS at June 30, 2022 were as follows: (in thousands) Amortized Cost Fair Value Due within one year $ 409,088 $ 406,595 Due after 1 year but within 5 years 158,881 157,777 Due after 5 years but within 10 years 347,907 337,573 Due after 10 years 7,700,232 7,122,730 Total $ 8,616,108 $ 8,024,675 Contractual maturities of the Company’s investments in debt securities HTM at June 30, 2022 were as follows: (in thousands) Amortized Cost Fair Value Due within one year $ — $ — Due after 1 year but within 5 years 33,522 32,634 Due after 5 years but within 10 years 41,341 41,175 Due after 10 years 9,362,904 8,588,695 Total $ 9,437,767 $ 8,662,504 |
Summary of Gross Unrealized Loss and Fair Value of Debt Securities Available-for-Sale | The following table presents the aggregate amount of unrealized losses as of June 30, 2022 and December 31, 2021 on debt securities in the Company’s AFS investment portfolios classified according to the amount of time those securities have been in a continuous loss position: June 30, 2022 December 31, 2021 Less than 12 months 12 months or longer Less than 12 months 12 months or longer (in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. Treasury securities $ 236,121 $ (2,166) $ — $ — $ — $ — $ — $ — Corporate debt securities 269,518 (455) — — 173,255 (96) — — ABS 484,052 (15,425) 10,428 (272) 389,743 (205) 16,265 (261) MBS: GNMA - Residential 2,222,526 (132,428) 1,481,122 (93,600) 2,283,469 (19,068) 96,339 (624) GNMA - Commercial 435,810 (40,461) 197,350 (28,778) 1,795,619 (51,908) 89,640 (3,750) FHLMC and FNMA - Residential 2,100,402 (205,691) 386,000 (71,209) 3,315,452 (61,103) 109,769 (1,629) FHLMC and FNMA - Commercial 91,386 (1,434) — — 45,641 (59) — — Total investments in debt securities AFS $ 5,839,815 $ (398,060) $ 2,074,900 $ (193,859) $ 8,003,179 $ (132,439) $ 312,013 $ (6,264) |
Summary of Gross Unrealized Loss and Fair Value of Debt Securities Held-to-maturity | The following table presents the aggregate amount of unrealized losses as of June 30, 2022 and December 31, 2021 on debt securities in the Company’s HTM investment portfolios classified according to the amount of time those securities have been in a continuous loss position: June 30, 2022 December 31, 2021 Less than 12 months 12 months or longer Less than 12 months 12 months or longer (in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized ABS $ 48,413 $ (645) $ 19,017 $ (244) $ — $ — $ — $ — MBS: GNMA - Residential $ 1,823,787 $ (194,067) $ 784,154 $ (120,874) $ 2,051,851 $ (42,284) $ 81,034 $ (2,818) GNMA - Commercial 3,482,656 (270,041) 952,033 (132,954) 2,515,603 (61,377) 124,655 (6,041) FHLMC and FNMA - Residential 1,391,460 (58,447) — — — — — — Total investments in debt securities HTM $ 6,746,316 $ (523,200) $ 1,755,204 $ (254,072) $ 4,567,454 $ (103,661) $ 205,689 $ (8,859) |
Summary of Gains (Losses) and Proceeds on Sales of Investment Securities | Proceeds from sales of investment securities and the realized gross gains and losses from those sales were as follows: Three-Month Period Ended June 30, Six-Month Period Ended June 30 (in thousands) 2022 2021 2022 2021 Proceeds from the sales of AFS securities $ — $ 819,209 $ — $ 1,326,299 AFS debt and other securities: Gross realized gains $ — $ 8,196 $ — $ 18,267 Gross realized losses — (2,317) — (2,317) Net realized gains/(losses) on AFS and other securities $ — $ 5,879 $ — $ 15,950 Total trading securities gains/(losses) 10,759 (509) 12,234 (707) Total equity securities gains/(losses) — — 12,480 — Total realized gains/(losses) in income from investments $ 10,759 $ 5,370 $ 24,714 $ 15,243 |
Summary of Other Investments | Other investments consisted of the following as of: (in thousands) June 30, 2022 December 31, 2021 FHLB of Pittsburgh and FRB stock $ 481,959 $ 394,668 LIHTC investments 388,021 370,493 Equity securities not held for trading (1) 105,565 45,186 Interest-bearing deposits with an affiliate bank 400,000 250,000 Total $ 1,375,545 $ 1,060,347 (1) Includes $2.6 million and $3.0 million of equity certificates related to an off-balance sheet securitization as of June 30, 2022 and December 31, 2021, respectively. |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Summary of Loans Receivable | The following presents the composition of loans and leases HFI by portfolio and by rate type: June 30, 2022 December 31, 2021 (dollars in thousands) Amount Percent Amount Percent Commercial LHFI: CRE loans $ 7,607,459 8.2 % $ 7,227,003 7.8 % C&I loans 13,140,429 14.2 % 14,710,864 16.0 % Multifamily loans 8,183,802 8.8 % 7,547,382 8.2 % Other commercial (2)(4) 8,161,743 8.8 % 8,170,031 8.9 % Total commercial LHFI 37,093,433 40.0 % 37,655,280 40.9 % Consumer loans secured by real estate: Residential mortgages 5,374,730 5.8 % 5,598,560 6.1 % Home equity loans and lines of credit 3,274,352 3.5 % 3,487,234 3.8 % Total consumer loans secured by real estate 8,649,082 9.3 % 9,085,794 9.9 % Consumer loans not secured by real estate: RICs and auto loans 43,699,070 47.1 % 43,183,098 46.9 % Personal unsecured loans 3,207,390 3.5 % 2,009,654 2.2 % Other consumer (3) 113,086 0.1 % 141,986 0.1 % Total consumer loans 55,668,628 60.0 % 54,420,532 59.1 % Total LHFI (1) $ 92,762,061 100.0 % $ 92,075,812 100.0 % Total LHFI: Fixed rate $ 65,142,714 70.2 % $ 64,774,941 70.3 % Variable rate 27,619,347 29.8 % 27,300,871 29.7 % Total LHFI (1) $ 92,762,061 100.0 % $ 92,075,812 100.0 % (1) Total LHFI includes deferred loan fees, net of deferred origination costs and unamortized purchase premiums, net of discounts as well as purchase accounting adjustments. These items resulted in a net increase in the loan balances of $2.8 billion and $2.9 billion as of June 30, 2022 and December 31, 2021, respectively. (2) Other commercial includes CEVF leveraged leases and loans. (3) Other consumer primarily includes RV and marine loans. (4) Includes loans with a carrying value of $257.2 million and $128.8 million as of June 30, 2022 and December 31, 2021, respectively, for which a fair value hedge is recorded resulting in a fair value adjustment of $25.5 million and $1.3 million as of June 30, 2022 and December 31, 2021 respectively. |
Summary of Allowance for Credit Losses by Portfolio Segment | The activity in the ACL by portfolio segment for the three-month and six-month periods ended June 30, 2022 and 2021 was as follows: Three-Month Period Ended June 30, 2022 (in thousands) Commercial Consumer Total ALLL, beginning of period $ 557,331 $ 5,847,900 $ 6,405,231 Credit loss expense / (benefit) 11,801 397,655 409,456 Charge-offs (14,451) (820,061) (834,512) Recoveries 14,225 560,849 575,074 Charge-offs, net of recoveries (226) (259,212) (259,438) ALLL, end of period $ 568,906 $ 5,986,343 $ 6,555,249 Reserve for unfunded lending commitments, beginning of period (1) $ 80,309 $ 11,120 $ 91,429 Credit loss expense / (benefit) on unfunded lending commitments (4,597) (659) (5,256) Reserve for unfunded lending commitments, end of period 75,712 10,461 86,173 Total ACL, end of period $ 644,618 $ 5,996,804 $ 6,641,422 Six-Month Period Ended June 30, 2022 (in thousands) Commercial Consumer Total ALLL, beginning of period $ 567,309 $ 5,894,101 $ 6,461,410 Credit loss expense / (benefit) 403 638,527 638,930 Charge-offs (30,620) (1,701,097) (1,731,717) Recoveries 31,814 1,154,812 1,186,626 Charge-offs, net of recoveries 1,194 (546,285) (545,091) ALLL, end of period $ 568,906 $ 5,986,343 $ 6,555,249 Reserve for unfunded lending commitments, beginning of period $ 91,191 $ 12,903 $ 104,094 Credit loss expense / (benefit) on unfunded lending commitments (15,479) (2,442) (17,921) Reserve for unfunded lending commitments, end of period 75,712 10,461 86,173 Total ACL, end of period $ 644,618 $ 5,996,804 $ 6,641,422 NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) Three-Month Period Ended June 30, 2021 (in thousands) Commercial Consumer Total ALLL, beginning of period $ 716,347 $ 6,443,808 $ 7,160,155 Credit loss expense / (benefit) (47,609) (269,568) (317,177) Charge-offs (40,058) (561,326) (601,384) Recoveries 12,835 634,886 647,721 Charge-offs, net of recoveries (27,223) 73,560 46,337 ALLL, end of period $ 641,515 $ 6,247,800 $ 6,889,315 Reserve for unfunded lending commitments, beginning of period $ 100,317 $ 24,072 $ 124,389 Credit loss expense / (benefit) on unfunded lending commitments 1,160 (1,265) (105) Reserve for unfunded lending commitments, end of period 101,477 22,807 124,284 Total ACL, end of period $ 742,992 $ 6,270,607 $ 7,013,599 Six-month period ended June 30, 2021 (in thousands) Commercial Consumer Total ALLL, beginning of period $ 752,196 $ 6,586,297 $ 7,338,493 Credit loss expense / (benefit) (69,458) (149,586) (219,044) Charge-offs (79,687) (1,388,715) (1,468,402) Recoveries 38,464 1,199,804 1,238,268 Charge-offs, net of recoveries (41,223) (188,911) (230,134) ALLL, end of period $ 641,515 $ 6,247,800 $ 6,889,315 Reserve for unfunded lending commitments, beginning of period $ 119,129 $ 27,326 $ 146,455 Credit loss expense / (benefit) on unfunded lending commitments (17,652) (4,519) (22,171) Reserve for unfunded lending commitments, end of period 101,477 22,807 124,284 Total ACL, end of period $ 742,992 $ 6,270,607 $ 7,013,599 |
Summary of Non-accrual Loans | The amortized cost basis of financing receivables that are either non-accrual with related expected credit loss or non-accrual without related expected credit loss disaggregated by class of financing receivables and other non-performing assets is as follows: Non-accrual loans as of: (1) Non-accrual loans with no allowance (in thousands) June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Non-accrual loans: Commercial: CRE $ 30,936 $ 31,752 $ 25,047 $ 24,112 C&I 88,481 69,754 11,016 35,965 Multifamily 53,872 103,299 53,615 103,138 Other commercial 9,428 9,036 5,604 5,472 Total commercial loans 182,717 213,841 95,282 168,687 Consumer: Residential mortgages 98,755 123,548 48,695 71,463 Home equity loans and lines of credit 82,643 88,310 36,289 39,693 RICs and auto loans 1,502,251 1,467,928 193,013 202,193 Personal unsecured loans 3,907 2,892 — — Other consumer 384 1,047 35 16 Total consumer loans 1,687,940 1,683,725 278,032 313,365 Total non-accrual loans 1,870,657 1,897,566 373,314 482,052 OREO 4,462 3,724 — — Repossessed vehicles 262,988 247,757 — — Foreclosed and other repossessed assets 482 294 — — Total OREO and other repossessed assets 267,932 251,775 — — Total non-performing assets $ 2,138,589 $ 2,149,341 $ 373,314 $ 482,052 |
Summary of Aging Analysis of Loan Portfolio | The amortized cost of past due loans and accruing loans 90 days or greater past due disaggregated by class of financing receivables is summarized as follows: As of: June 30, 2022 (in thousands) 30-89 90 Total Current Total Amortized Cost Commercial: CRE (2) $ 7,985 $ 5,145 $ 13,130 $ 7,606,281 $ 7,619,411 $ — C&I (1) 43,600 10,139 53,739 13,290,943 13,344,682 — Multifamily 25,351 — 25,351 8,158,451 8,183,802 — Other commercial (3) 98,376 2,368 100,744 8,101,101 8,201,845 7 Consumer: Residential mortgages (4) 64,489 88,262 152,751 5,222,570 5,375,321 — Home equity loans and lines of credit 20,021 61,673 81,694 3,192,658 3,274,352 — RICs and auto loans 3,815,801 217,755 4,033,556 39,665,514 43,699,070 — Personal unsecured loans 17,181 8,096 25,277 3,182,113 3,207,390 2,852 Other consumer 3,251 425 3,676 109,410 113,086 — Total $ 4,096,055 $ 393,863 $ 4,489,918 $ 88,529,041 $ 93,018,959 $ 2,859 (1) C&I loans includes $204.3 million of LHFS at June 30, 2022. (2) CRE loans includes $12.0 million of LHFS at June 30, 2022. (3) Other Commercial loans includes $40.1 million of LHFS at June 30, 2022. (4) Residential mortgages includes $591 thousand of LHFS at June 30, 2022. As of December 31, 2021 (in thousands) 30-89 90 Total Current Total Recorded Commercial: CRE $ 4,287 $ 8,775 $ 13,062 $ 7,213,941 $ 7,227,003 $ — C&I (1) 31,475 19,862 51,337 14,747,739 14,799,076 — Multifamily 336 2,574 2,910 7,544,472 7,547,382 — Other commercial 77,842 2,674 80,516 8,089,515 8,170,031 — Consumer: Residential mortgages (2) 83,626 89,403 173,029 5,592,342 5,765,371 — Home equity loans and lines of credit 22,871 63,306 86,177 3,401,057 3,487,234 — RICs and auto loans 3,535,402 324,150 3,859,552 39,323,546 43,183,098 — Personal unsecured loans 10,361 5,206 15,567 1,994,087 2,009,654 2,314 Other consumer 3,493 564 4,057 137,929 141,986 — Total $ 3,769,693 $ 516,514 $ 4,286,207 $ 88,044,628 $ 92,330,835 $ 2,314 (1) C&I loans included $88.2 million of LHFS at December 31, 2021. (2) Residential mortgages included $166.8 million of LHFS at December 31, 2021. |
Summary of Financing Receivable Credit Quality Indicators | Amortized cost basis of loans in the commercial portfolio segment by credit quality indicator, class of financing receivable, and year of origination are summarized as follows: June 30, 2022 Commercial Loan Portfolio (2) (dollars in thousands) Amortized Cost by Origination Year Regulatory Rating: 2022 (1) 2021 2020 2019 2018 Prior Total (3) CRE Pass $ 542,324 $ 1,265,319 $ 1,592,313 $ 1,330,450 $ 790,324 $ 1,493,901 $ 7,014,631 Special mention — — 16,962 47,807 120,091 78,540 263,400 Substandard — 35,869 25,702 92,037 69,165 118,607 341,380 Total CRE $ 542,324 $ 1,301,188 $ 1,634,977 $ 1,470,294 $ 979,580 $ 1,691,048 $ 7,619,411 C&I Pass $ 1,159,464 $ 2,948,324 $ 2,276,105 $ 1,780,137 $ 912,707 $ 2,312,048 $ 11,388,785 Special mention — 19,528 71,149 157,398 49,708 35,960 333,743 Substandard — 162,565 44,877 7,104 80,731 199,961 495,238 Doubtful — — 26,041 — — — 26,041 N/A 338,579 412,309 193,369 125,116 26,861 4,641 1,100,875 Total C&I $ 1,498,043 $ 3,542,726 $ 2,611,541 $ 2,069,755 $ 1,070,007 $ 2,552,610 $ 13,344,682 Multifamily Pass $ 1,445,254 $ 1,550,187 $ 747,023 $ 1,412,490 $ 763,590 $ 1,258,132 $ 7,176,676 Special mention — 21,860 5,020 53,386 49,132 53,862 183,260 Substandard — 8,032 87,698 201,897 309,372 216,867 823,866 Total Multifamily $ 1,445,254 $ 1,580,079 $ 839,741 $ 1,667,773 $ 1,122,094 $ 1,528,861 $ 8,183,802 Remaining commercial Pass $ 2,360,480 $ 2,515,377 $ 1,141,957 $ 762,566 $ 350,669 $ 1,052,341 $ 8,183,390 Special mention — — — — 4,108 283 4,391 Substandard — 3,305 613 5,322 1,792 3,032 14,064 Total Remaining commercial $ 2,360,480 $ 2,518,682 $ 1,142,570 $ 767,888 $ 356,569 $ 1,055,656 $ 8,201,845 Total commercial loans Pass $ 5,507,522 $ 8,279,207 $ 5,757,398 $ 5,285,643 $ 2,817,290 $ 6,116,422 $ 33,763,482 Special mention — 41,388 93,131 258,591 223,039 168,645 784,794 Substandard — 209,771 158,890 306,360 461,060 538,467 1,674,548 Doubtful — — 26,041 — — — 26,041 N/A 338,579 412,309 193,369 125,116 26,861 4,641 1,100,875 Total commercial loans $ 5,846,101 $ 8,942,675 $ 6,228,829 $ 5,975,710 $ 3,528,250 $ 6,828,175 $ 37,349,740 (1) Loans originated during the year-to-date ended June 30, 2022. (2) Includes $256.3 million of LHFS at June 30, 2022. (3) Includes $312.4 million revolving loans converted to term loans. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) December 31, 2021 Commercial Loan Portfolio (2) (dollars in thousands) Amortized Cost by Origination Year Regulatory Rating: 2021 (1) 2020 2019 2018 2017 Prior Total (3) CRE Pass $ 986,225 $ 1,283,784 $ 1,308,729 $ 918,097 $ 446,715 $ 1,512,165 $ 6,455,715 Special mention — 9,490 26,892 118,103 117,703 35,135 307,323 Substandard 20,291 11,896 131,169 138,652 42,965 118,992 463,965 Total CRE $ 1,006,516 $ 1,305,170 $ 1,466,790 $ 1,174,852 $ 607,383 $ 1,666,292 $ 7,227,003 C&I Pass $ 3,828,736 $ 3,213,214 $ 2,179,598 $ 1,179,065 $ 574,141 $ 2,042,111 $ 13,016,865 Special mention 11,003 32,268 154,820 31,026 25,176 98,964 353,257 Substandard 62,742 62,305 11,859 50,384 47,020 197,121 431,431 N/A 511,609 258,315 176,542 39,942 5,959 5,156 997,523 Total C&I $ 4,414,090 $ 3,566,102 $ 2,522,819 $ 1,300,417 $ 652,296 $ 2,343,352 $ 14,799,076 Multifamily Pass $ 1,575,287 $ 740,684 $ 1,522,367 $ 820,900 $ 729,510 $ 905,967 $ 6,294,715 Special mention 4,850 — 101,375 71,031 15,125 35,449 227,830 Substandard 3,981 83,994 233,045 345,510 135,289 223,018 1,024,837 Total Multifamily $ 1,584,118 $ 824,678 $ 1,856,787 $ 1,237,441 $ 879,924 $ 1,164,434 $ 7,547,382 Remaining commercial Pass $ 3,753,502 $ 1,864,509 $ 952,428 $ 446,979 $ 260,112 $ 858,640 $ 8,136,170 Special mention 2,959 — 3,007 5,169 625 1,741 13,501 Substandard 287 569 7,196 2,214 1,786 8,308 20,360 Total Remaining commercial $ 3,756,748 $ 1,865,078 $ 962,631 $ 454,362 $ 262,523 $ 868,689 $ 8,170,031 Total commercial loans Pass $ 10,143,750 $ 7,102,191 $ 5,963,122 $ 3,365,041 $ 2,010,478 $ 5,318,883 $ 33,903,465 Special mention 18,812 41,758 286,094 225,329 158,629 171,289 901,911 Substandard 87,301 158,764 383,269 536,760 227,060 547,439 1,940,593 N/A 511,609 258,315 176,542 39,942 5,959 5,156 997,523 Total commercial loans $ 10,761,472 $ 7,561,028 $ 6,809,027 $ 4,167,072 $ 2,402,126 $ 6,042,767 $ 37,743,492 (1) Loans originated during the year ended December 31, 2021. (2) Includes $88.2 million of LHFS at December 31, 2021. (3) Includes $362.7 million revolving loans converted to term loans. Consumer financing receivables for which either an internal or external credit score is a core component of the allowance model are summarized by credit score determined at origination as follows: As of June 30, 2022 RICs and auto loans (dollars in thousands) Amortized Cost by Origination Year (3) Credit Score Range 2022 (1) 2021 2020 2019 2018 Prior Total Percent No FICO (2) $ 802,876 $ 1,061,233 $ 526,315 $ 325,661 $ 173,185 $ 165,379 $ 3,054,649 7.0 % <600 3,886,037 5,805,279 2,801,565 1,901,938 1,068,394 676,655 16,139,868 36.9 % 600-639 2,161,580 2,773,378 1,164,280 771,982 378,070 180,558 7,429,848 17.0 % >=640 4,267,152 7,005,071 3,208,471 1,965,546 499,937 128,528 17,074,705 39.1 % Total $ 11,117,645 $ 16,644,961 $ 7,700,631 $ 4,965,127 $ 2,119,586 $ 1,151,120 $ 43,699,070 100.0 % (1) Loans originated during the year-to-date ended June 30, 2022. (2) Consists primarily of loans for which credit scores are not available or are not considered in the ALLL model. (3) Excludes LHFS. As of December 31, 2021 RICs and auto loans (dollars in thousands) Amortized Cost by Origination Year (3) Credit Score Range 2021 (1) 2020 2019 2018 2017 Prior Total Percent No FICO (2) $ 1,427,962 $ 733,752 $ 449,965 $ 244,829 $ 201,129 $ 108,766 $ 3,166,403 7.4 % <600 7,410,017 3,768,302 2,574,070 1,488,371 580,881 515,318 16,336,959 37.8 % 600-639 3,574,644 1,585,530 1,056,397 537,222 165,318 141,316 7,060,427 16.3 % >=640 8,793,804 4,169,473 2,681,160 718,312 122,569 133,991 16,619,309 38.5 % Total $ 21,206,427 $ 10,257,057 $ 6,761,592 $ 2,988,734 $ 1,069,897 $ 899,391 $ 43,183,098 100.0 % (1) Loans originated during the year ended December 31, 2021. (2) Consists primarily of loans for which credit scores are not available or are not considered in the ALLL model. (3) Excludes LHFS. |
Summary of Financing Receivable by LTV | =760 $ 734,862 $ 717,600 $ 409,003 $ 181,652 $ 300,200 $ 1,040,208 $ 3,383,525 $ — Total Residential mortgages $ 1,151,800 $ 1,021,134 $ 722,710 $ 363,014 $ 505,475 $ 1,834,427 $ 5,598,560 $ — Home equity (1) LTV Ratios No LTV available (2) $ 1,850 $ 3,003 $ 3,923 $ 4,911 $ 4,808 $ 69,090 $ 87,585 $ 50,651 <= 70% $ 127,313 $ 231,024 $ 297,239 $ 378,399 $ 359,912 $ 1,844,786 $ 3,238,673 $ 3,146,199 70.01% - 110% $ 40,483 $ 8,133 $ 11,149 $ 6,781 $ 817 $ 80,152 $ 147,515 $ 140,959 Greater than 110% $ 3,357 $ 622 $ — $ — $ — $ 9,482 $ 13,461 $ 13,370 Total Home equity $ 173,003 $ 242,782 $ 312,311 $ 390,091 $ 365,537 $ 2,003,510 $ 3,487,234 $ 3,351,179 FICO Scores No FICO score available $ 1,908 $ 3,121 $ 4,133 $ 4,935 $ 4,879 $ 68,603 $ 87,579 $ 50,671 <600 $ 146 $ 782 $ 3,795 $ 10,135 $ 12,063 $ 111,661 $ 138,582 $ 121,597 600-679 $ 3,330 $ 8,417 $ 22,910 $ 35,437 $ 32,485 $ 257,159 $ 359,738 $ 338,378 680-759 $ 64,036 $ 80,209 $ 103,691 $ 129,182 $ 132,671 $ 626,942 $ 1,136,731 $ 1,111,686 >=760 $ 103,583 $ 150,253 $ 177,782 $ 210,402 $ 183,439 $ 939,145 $ 1,764,604 $ 1,728,847 Total Home equity $ 173,003 $ 242,782 $ 312,311 $ 390,091 $ 365,537 $ 2,003,510 $ 3,487,234 $ 3,351,179 (1) Loans originated during the year-to-date ended December 31, 2021. (2) Balances in the "No LTV available" or "No FICO Score available" ranges primarily represent loans serviced by others, in run-off portfolios or for which a current LTV or FICO score is unavailable. (3) The ALLL model considers LTV for financing receivables in first lien position and CLTV for financing receivables in second lien position for the Company. (4) Excludes LHFS." id="sjs-B9">Residential mortgage and home equity financing receivables by LTV and FICO range are summarized as follows: As of June 30, 2022 Amortized Cost by Origination Year (4) (dollars in thousands) Residential mortgages (1) 2022 2021 2020 2019 2018 Prior Grand Total Revolving Loans LTV Ratios (3) No LTV available (2) $ 19,312 $ 55 $ 46 $ 31 $ 16 $ 1,471 $ 20,931 $ — <= 70% 107,529 865,529 833,864 549,604 314,422 2,036,908 4,707,856 — 70.01% - 110% 97,976 291,558 134,537 105,659 3,194 11,357 644,281 — Greater than 110% — — — — — 1,662 1,662 — Total Residential mortgages $ 224,817 $ 1,157,142 $ 968,447 $ 655,294 $ 317,632 $ 2,051,398 $ 5,374,730 $ — FICO Scores No FICO score available $ 19,312 $ 54 $ 45 $ 30 $ 15 $ 2,797 $ 22,253 $ — <600 — 6,975 5,160 18,611 16,930 93,562 141,238 — 600-679 12,109 43,154 42,440 56,562 41,251 212,482 407,998 — 680-759 81,900 294,065 252,001 200,493 105,819 557,164 1,491,442 — >=760 111,496 812,894 668,801 379,598 153,617 1,185,393 3,311,799 — Total Residential mortgages $ 224,817 $ 1,157,142 $ 968,447 $ 655,294 $ 317,632 $ 2,051,398 $ 5,374,730 $ — Home equity (1) LTV Ratios No LTV available (2) $ 1,570 $ 2,949 $ 3,363 $ 3,984 $ 5,120 $ 64,158 $ 81,144 $ 50,135 <= 70% 31,542 150,973 224,025 281,229 367,411 2,009,093 3,064,273 2,978,683 70.01% - 110% 16,356 42,396 4,187 4,041 82 54,074 121,136 117,394 Greater than 110% 1,503 1,423 47 — — 4,826 7,799 7,775 Total Home equity $ 50,971 $ 197,741 $ 231,622 $ 289,254 $ 372,613 $ 2,132,151 $ 3,274,352 $ 3,153,987 FICO Scores No FICO score available $ 818 $ 2,568 $ 3,008 $ 3,758 $ 4,839 $ 62,547 $ 77,538 $ 46,526 <600 — 521 2,143 4,243 10,734 123,416 141,057 122,899 600-679 1,441 6,989 11,988 23,025 35,146 269,626 348,215 326,895 680-759 18,192 69,526 76,658 92,875 122,033 665,230 1,044,514 1,026,444 >=760 30,520 118,137 137,825 165,353 199,861 1,011,332 1,663,028 1,631,223 Total Home equity $ 50,971 $ 197,741 $ 231,622 $ 289,254 $ 372,613 $ 2,132,151 $ 3,274,352 $ 3,153,987 (1) Loans originated during the year-to-date ended June 30, 2022. (2) Balances in the "No LTV available" or "No FICO Score available" ranges primarily represent loans serviced by others, in run-off portfolios or for which a current LTV or FICO score is unavailable. (3) The ALLL model considers LTV for financing receivables in first lien position and CLTV for financing receivables in second lien position for the Company. (4) Excludes LHFS. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) December 31, 2021 Amortized Cost by Origination Year (4) (dollars in thousands) Residential mortgages (1) 2021 2020 2019 2018 2017 Prior Grand Total Revolving Loans LTV Ratios (3) No LTV available (2) $ 11,605 $ 907 $ 676 $ 338 $ 469 $ 3,076 $ 17,071 $ — <= 70% $ 747,090 $ 831,112 $ 517,103 $ 293,784 $ 497,556 $ 1,812,989 $ 4,699,634 $ — 70.01% - 110% $ 393,105 $ 189,115 $ 204,931 $ 68,892 $ 7,450 $ 15,705 $ 879,198 $ — Greater than 110% $ — $ — $ — $ — $ — $ 2,657 $ 2,657 $ — Total Residential mortgages $ 1,151,800 $ 1,021,134 $ 722,710 $ 363,014 $ 505,475 $ 1,834,427 $ 5,598,560 $ — FICO Scores No FICO score available $ 11,604 $ 1,621 $ 677 $ 337 $ 954 $ 5,103 $ 20,296 $ — <600 $ 2,356 $ 4,719 $ 15,894 $ 16,995 $ 17,879 $ 83,310 $ 141,153 $ — 600-679 $ 30,763 $ 39,681 $ 61,969 $ 37,104 $ 39,283 $ 192,786 $ 401,586 $ — 680-759 $ 372,215 $ 257,513 $ 235,167 $ 126,926 $ 147,159 $ 513,020 $ 1,652,000 $ — >=760 $ 734,862 $ 717,600 $ 409,003 $ 181,652 $ 300,200 $ 1,040,208 $ 3,383,525 $ — Total Residential mortgages $ 1,151,800 $ 1,021,134 $ 722,710 $ 363,014 $ 505,475 $ 1,834,427 $ 5,598,560 $ — Home equity (1) LTV Ratios No LTV available (2) $ 1,850 $ 3,003 $ 3,923 $ 4,911 $ 4,808 $ 69,090 $ 87,585 $ 50,651 <= 70% $ 127,313 $ 231,024 $ 297,239 $ 378,399 $ 359,912 $ 1,844,786 $ 3,238,673 $ 3,146,199 70.01% - 110% $ 40,483 $ 8,133 $ 11,149 $ 6,781 $ 817 $ 80,152 $ 147,515 $ 140,959 Greater than 110% $ 3,357 $ 622 $ — $ — $ — $ 9,482 $ 13,461 $ 13,370 Total Home equity $ 173,003 $ 242,782 $ 312,311 $ 390,091 $ 365,537 $ 2,003,510 $ 3,487,234 $ 3,351,179 FICO Scores No FICO score available $ 1,908 $ 3,121 $ 4,133 $ 4,935 $ 4,879 $ 68,603 $ 87,579 $ 50,671 <600 $ 146 $ 782 $ 3,795 $ 10,135 $ 12,063 $ 111,661 $ 138,582 $ 121,597 600-679 $ 3,330 $ 8,417 $ 22,910 $ 35,437 $ 32,485 $ 257,159 $ 359,738 $ 338,378 680-759 $ 64,036 $ 80,209 $ 103,691 $ 129,182 $ 132,671 $ 626,942 $ 1,136,731 $ 1,111,686 >=760 $ 103,583 $ 150,253 $ 177,782 $ 210,402 $ 183,439 $ 939,145 $ 1,764,604 $ 1,728,847 Total Home equity $ 173,003 $ 242,782 $ 312,311 $ 390,091 $ 365,537 $ 2,003,510 $ 3,487,234 $ 3,351,179 (1) Loans originated during the year-to-date ended December 31, 2021. (2) Balances in the "No LTV available" or "No FICO Score available" ranges primarily represent loans serviced by others, in run-off portfolios or for which a current LTV or FICO score is unavailable. (3) The ALLL model considers LTV for financing receivables in first lien position and CLTV for financing receivables in second lien position for the Company. (4) Excludes LHFS. |
Summary of Performing and Non-performing TDRs | The following table summarizes the Company’s performing and non-performing TDRs at the dates indicated: (in thousands) June 30, 2022 December 31, 2021 Performing $ 3,017,047 $ 3,641,593 Non-performing 518,132 607,824 Total (1) $ 3,535,179 $ 4,249,417 (1) Excludes LHFS. |
Summary of Troubled Debt Restructurings | The following tables detail the activity of TDRs for the three-month and six-month periods ended June 30, 2022 and 2021: Three-Month Period Ended June 30, 2022 Number of Pre-TDR Amortized Cost (1) Post-TDR Amortized Cost (2) (dollars in thousands) Commercial: C&I 30 1,404 1,404 Multi-family 9 7,168 7,168 Other commercial 2 9 9 Consumer: Residential mortgages (3) 3 488 493 Home equity loans and lines of credit 24 3,589 3,847 RICs and auto loans 8,868 156,579 156,341 Total 8,936 $ 169,237 $ 169,262 Six-month period ended June 30, 2022 Number of Pre-TDR Amortized Cost (1) Post-TDR Amortized Cost (2) (dollars in thousands) Commercial: CRE 45 $ 7,465 $ 7,465 C&I 234 7,108 7,110 Multi-family 17 7,168 7,168 Other commercial 12 228 228 Consumer: Residential mortgages (3) 19 4,970 4,970 Home equity loans and lines of credit 64 8,456 8,760 RICs and auto loans 17,650 308,172 307,774 Personal unsecured loans 1 23 23 Other consumer 1 1,250 1,250 Total 18,043 $ 344,840 $ 344,748 (1) Pre-TDR modification amount is the month-end balance prior to the month in which the modification occurred. (2) Post-TDR modification amount is the month-end balance for the month in which the modification occurred. (3) The post-TDR modification amounts for residential mortgages exclude interest reserves. NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) Three-Month Period Ended June 30, 2021 Number of Pre-TDR Recorded (1) Post-TDR Recorded Investment (2) (dollars in thousands) Commercial: CRE 8 $ 36,053 $ 36,053 C&I 59 28,077 28,079 Multi-family 2 29,370 29,370 Other commercial 16 1,018 1,018 Consumer: Residential mortgages (3) 250 74,617 74,500 Home equity loans and lines of credit 323 49,310 49,555 RICs and auto loans 11,772 226,011 226,574 Personal unsecured loans 52 751 743 Other consumer 7 182 172 Total 12,489 $ 445,389 $ 446,064 Six-month period ended June 30, 2021 Number of Pre-TDR Recorded (1) Post-TDR Recorded Investment (2) (dollars in thousands) Commercial: CRE 11 $ 44,005 $ 44,005 C&I 370 43,589 43,647 Multi-family 2 29,370 29,370 Other commercial 180 14,653 14,653 Consumer: Residential mortgages (3) 343 94,726 94,490 Home equity loans and lines of credit 366 53,852 54,303 RICs and auto loans 57,437 1,179,830 1,185,882 Personal unsecured loans 77 999 987 Other consumer 16 590 580 Total 58,802 $ 1,461,614 $ 1,467,917 (1) - (3) Refer to corresponding notes above Three-Month Period Ended June 30, Six-Month Period Ended June 30 2022 2021 2022 2021 Number of Recorded Investment (1) Number of Recorded Investment (1) Number of Recorded Investment (1) Number of Recorded Investment (1) (dollars in thousands) (dollars in thousands) Commercial C&I — — 24 901 — — 54 2,073 Other commercial 1 11 — — 1 11 1 17 Consumer: Residential mortgages 6 2,088 10 1,484 80 28,649 10 1,484 Home equity loans and lines of credit 6 546 3 152 35 4,947 4 765 RICs and auto loans 1,094 19,959 4,149 82,949 2,903 53,008 9,805 193,729 Personal unsecured loans 5 104 6 83 14 196 6 83 Other consumer — — — — 2 57 — — Total 1,112 $ 22,708 4,192 $ 85,569 3,035 $ 86,868 9,880 $ 198,151 (1) Represents the period-end balance. Does not include Chapter 7 bankruptcy TDRs. |
OPERATING LEASE ASSETS, NET (Ta
OPERATING LEASE ASSETS, NET (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Summary of Operating Lease Assets, Net | Operating lease assets, net consisted of the following as of June 30, 2022 and December 31, 2021: (in thousands) June 30, 2022 December 31, 2021 Leased vehicles $ 18,902,822 $ 19,662,593 Less: accumulated depreciation (3,577,183) (3,789,882) Depreciated net capitalized cost 15,325,639 15,872,711 Manufacturer subvention payments, net of accretion (502,184) (604,104) Origination fees and other costs 166,075 136,013 Leased vehicles, net 14,989,530 15,404,620 Commercial equipment vehicles and aircraft, gross 2,515 2,677 Less: accumulated depreciation (994) (895) Commercial equipment vehicles and aircraft, net 1,521 1,782 Total operating lease assets, net $ 14,991,051 $ 15,406,402 |
Summary of Future Minimum Rental Payments Due to the Company Under Operating Leases | The following summarizes the future minimum rental payments due to the Company as lessor under operating leases as of June 30, 2022 (in thousands): 2022 $ 1,220,285 2023 1,971,973 2024 909,203 2025 178,392 2026 8,217 Thereafter 8 Total $ 4,288,078 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | The following table presents the roll-forward of the Company's goodwill by its reporting units for the quarter ended June 30, 2022: (in thousands) Auto CBB C&I CRE CIB SC Total Goodwill at December 31, 2021 $ — $ 297,802 $ 52,198 $ 1,095,071 $ 131,130 $ 1,019,960 $ 2,596,161 Additions during the period — — — — 171,571 — 171,571 Re-allocation of goodwill 1,238,676 (138,776) — (79,940) — (1,019,960) — Goodwill at June 30, 2022 $ 1,238,676 $ 159,026 $ 52,198 $ 1,015,131 $ 302,701 $ — $ 2,767,732 |
Summary of Finite-Lived Intangible Assets | The following table details amounts related to the Company's intangible assets subject to amortization for the dates indicated. June 30, 2022 December 31, 2021 (in thousands) Net Carrying Accumulated Net Carrying Accumulated Intangibles subject to amortization: Dealer networks $ 272,208 $ (197,792) $ 283,958 $ (186,042) Stellantis relationship 13,815 (124,935) 20,000 (118,750) Other intangibles 68,864 (54,366) 35,121 (48,541) Total intangibles subject to amortization $ 354,887 $ (377,093) $ 339,079 $ (353,333) |
Summary of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate amortization expense related to intangibles, excluding any impairment charges, for each of the five succeeding calendar years ending December 31 is: Year Calendar Year Amount Recorded To Date Remaining Amount To Record (in thousands) 2022 $ 45,711 $ 23,034 $ 22,677 2023 43,204 — 43,204 2024 39,085 — 39,085 2025 34,685 — 34,685 2026 32,512 — 32,512 Thereafter 182,724 — 182,724 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Assets | The following is a detail of items that comprised Other assets at June 30, 2022 and December 31, 2021: (in thousands) June 30, 2022 December 31, 2021 Operating lease ROU assets $ 522,133 $ 531,408 Deferred tax assets 146,939 87,931 Accrued interest receivable 561,264 482,469 Derivative assets at fair value 956,984 661,080 Other repossessed assets 263,470 248,051 Equity method investments 265,482 260,010 MSRs 104,411 79,107 OREO 4,462 3,724 Income tax receivables 399,239 173,060 Prepaid expense 566,936 283,909 Miscellaneous assets and receivables 807,949 524,674 Total Other assets $ 4,599,269 $ 3,335,423 |
Summary of Maturity of Lease Liabilities | Supplemental balance sheet information related to leases was as follows: Maturity of Lease Liabilities at June 30, 2022 Total Operating leases (in thousands) 2022 $ 70,269 2023 128,803 2024 115,043 2025 89,947 2026 62,726 Thereafter 164,190 Total lease liabilities $ 630,978 Less: Interest (53,710) Present value of lease liabilities $ 577,268 |
Summary of Operating Lease Term, Rate and Other Information | Supplemental Balance Sheet Information June 30, 2022 December 31, 2021 Operating lease ROU assets $522,133 $531,408 Other liabilities $577,268 $593,137 Weighted-average remaining lease term (years) 6.4 6.4 Weighted-average discount rate 2.9% 2.8% Six-Month Period Ended June 30 Other Information 2022 2021 (in thousands) Operating cash flows from operating leases (1) $ (73,160) $ (70,260) Leased assets obtained in exchange for new operating lease liabilities $ 41,147 $ 32,527 (1) Activity is included within the net change in other liabilities on the SCF. |
VIEs (Tables)
VIEs (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Variable Interest Entity and Securitizations [Abstract] | |
Summary of Variable Interest Entities | The assets of consolidated VIEs presented based upon the legal transfer of the underlying assets in order to reflect legal ownership, that can be used only to settle obligations of the consolidated VIEs and the liabilities of those entities for which creditors (or beneficial interest holders) do not have recourse to the Company's general credit, were as follows: (in thousands) June 30, 2022 December 31, 2021 Assets Restricted cash $ 1,114,001 $ 1,637,311 LHFI 23,550,723 20,551,716 Operating lease assets, net 12,158,701 14,668,336 Various other assets 687,474 629,364 Total Assets $ 37,510,899 $ 37,486,727 Liabilities Notes payable $ 30,152,326 $ 29,199,966 Various other liabilities 121,928 81,098 Total Liabilities $ 30,274,254 $ 29,281,064 |
Summary of Cash Flows Received | A summary of the cash flows received from the consolidated Trusts for the respective periods is as follows: Three-Month Period Ended June 30, Six-Month Period Ended June 30 (in thousands) 2022 2021 2022 2021 Assets securitized $ 3,497,142 $ 7,238,608 $ 8,657,428 $ 11,361,659 Net proceeds from new securitizations (1) $ 2,091,900 $ 5,990,485 $ 6,141,620 $ 9,576,609 Net proceeds from sale of retained bonds 645,370 132,186 1,029,746 195,967 Cash received for servicing fees (2) 223,836 230,408 461,429 458,595 Net distributions from Trusts (2) 1,092,535 1,903,257 2,206,898 3,043,634 Total cash received from Trusts $ 4,053,641 $ 8,256,336 $ 9,839,693 $ 13,274,805 (1) Includes additional advances on existing securitizations. (2) These amounts are not reflected in the SCF because the cash flows are between the VIEs and other entities included in the consolidation. |
Summary of Off-balance Sheet Variable Interest Entities Portfolio | As of June 30, 2022 and December 31, 2021, the Company was servicing gross RICs that have been sold in off-balance sheet securitizations and were subject to an optional clean-up call as follows: (in thousands) June 30, 2022 December 31, 2021 Related party SPAIN securitizations $ 343,024 $ 554,040 Third-party SCART serviced securitizations 1,398,064 1,817,936 Total serviced for other portfolio $ 1,741,088 $ 2,371,976 |
Summary of Securitization Transactions | A summary of cash flows received from Trusts for the respective periods were as follows: Three-Month Period Ended June 30, Six-Month Period Ended June 30 (in thousands) 2022 2021 2022 2021 Receivables securitized (1) — — — 1,891,278 Net proceeds from new securitizations — — — 1,779,532 Cash received for servicing fees 5,098 9,294 11,038 16,021 Total cash received from Trusts $ 5,098 $ 9,294 $ 11,038 $ 1,795,553 (1) Represents the UPB at the time of original securitization. |
DEPOSITS AND OTHER CUSTOMER A_2
DEPOSITS AND OTHER CUSTOMER ACCOUNTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deposits [Abstract] | |
Summary of Deposits and Other Customer Accounts | Deposits and other customer accounts are summarized as follows: June 30, 2022 December 31, 2021 (dollars in thousands) Balance Percent of total deposits Balance Percent of total deposits Interest-bearing demand deposits $ 13,818,513 18.6 % $ 16,335,499 20.0 % Non-interest-bearing demand deposits 20,419,029 27.4 % 22,443,957 27.5 % Savings 5,634,518 7.6 % 5,564,934 6.8 % Customer repurchase accounts 239,122 0.3 % 338,698 0.4 % Money market 32,319,577 43.4 % 34,390,613 42.1 % CDs 2,043,352 2.7 % 2,524,471 3.2 % Total deposits (1) $ 74,474,111 100.0 % $ 81,598,172 100.0 % (1) Includes foreign deposits, as defined by the FRB, of $6.7 billion and $6.4 billion at June 30, 2022 and December 31, 2021, respectively. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Borrowings and Other Debt Obligation | The following table presents information regarding the Parent Company and its subsidiaries' borrowings and other debt obligations at the dates indicated: June 30, 2022 December 31, 2021 (dollars in thousands) Balance Effective Balance Effective Parent Company 3.70% senior notes due March 2022 $ — — % $ 706,819 3.67 % Senior notes due January 2023 (1) 720,951 1.68 % 720,947 1.28 % 3.40% senior notes due January 2023 999,266 3.54 % 998,599 3.54 % 3.50% senior notes due April 2023 — 3.52 % 447,107 3.52 % Senior notes due July 2023 (1) 439,070 1.69 % 439,085 1.29 % 2.88% senior notes due January 2024 (2) 750,000 2.88 % 750,000 2.88 % 3.50% senior notes due June 2024 998,084 3.60 % 997,610 3.60 % 3.45% senior notes, due June 2025 996,553 3.58 % 995,983 3.58 % 4.26% Senior notes due June 2025 498,436 4.36 % — — % 4.50% senior notes due July 2025 1,097,973 4.56 % 1,097,667 4.56 % Senior notes, due April 2026 (3) 433,373 2.22 % — — % Senior notes due November 2026 921,743 3.97 % 918,851 3.97 % 4.40% senior notes, due July 2027 1,049,583 4.40 % 1,049,565 4.40 % 2.49% senior notes due January 2028 996,384 2.56 % — — % 2.88% subordinate note, due November 2031 (2) 500,000 2.88 % 500,000 2.88 % Subsidiaries 2.00% subordinated debt maturing through 2040 — — % 11 2.00 % Short-term borrowing due within one year, maturing July 2022 2,187 0.05 % — — % Short-term borrowing due within one year, maturing January 2022 — — % 57,365 0.05 % Total Parent Company and subsidiaries' borrowings and other debt obligations $ 10,403,603 3.39 % $ 9,679,609 3.44 % (1) These notes will bear interest at a rate equal to the three-month LIBOR plus 110 basis points per annum. (2) These notes are payable to SHUSA's parent company, Santander. (3) These notes will bear interest at a rate equal to the SOFR index rate plus 135 basis points per year The following table presents information regarding SBNA's borrowings and other debt obligations at the dates indicated: June 30, 2022 December 31, 2021 (dollars in thousands) Balance Effective Balance Effective FHLB advances, maturing through August 2022 $ 2,750,000 1.83 % $ 250,000 0.93 % Credit-linked notes due December 2031 (1) 224,126 2.67 % 293,749 2.53 % Credit-linked notes due May 2032 (2) 494,889 6.30 % — — % Total SBNA borrowings and other debt obligations $ 3,469,015 2.52 % $ 543,749 1.79 % (1) Issued in December 2021 in the amount of $298 million. Notes are tied to the performance of a $2 billion original reference pool of SBNA prime auto loans. The contractual residual amount is $36 million. (2) Issued in June 2022 in the amount of $521 million. Notes are tied to the performance of a $3.5 billion original reference pool of SBNA prime auto loans. The contractual residual amount is $63 million. The following tables present information regarding SC's credit facilities at the dates indicated: June 30, 2022 (dollars in thousands) Balance Committed Amount Effective Assets Pledged Restricted Cash Pledged Warehouse line due June 2023 335,000 500,000 1.75 % 488,046 — Warehouse line due July 2023 365,000 600,000 2.09 % 477,220 — Warehouse line due October 2023 — 500,000 — % 50,581 — Warehouse line due October 2023 841,000 2,100,000 2.64 % 1,247,501 64 Warehouse line due November 2023 — 1,000,000 2.57 % 426,274 — Warehouse line due November 2023 — 3,500,000 — % 55,827 101 Warehouse line due January 2024 $ 980,800 $ 1,000,000 1.13 % $ 1,283,069 $ — Warehouse line due April 2024 770,000 1,250,000 2.09 % 1,508,223 1 Total facilities with third parties $ 3,291,800 $ 10,450,000 1.91 % $ 5,536,741 $ 166 Promissory note with Santander due September 2022 2,000,000 2,000,000 1.01 % — — Total facilities with related parties $ 2,000,000 $ 2,000,000 1.01 % $ — $ — Total SC credit facilities $ 5,291,800 $ 12,450,000 1.57 % $ 5,536,741 $ 166 NOTE 9. BORROWINGS (continued) December 31, 2021 (dollars in thousands) Balance Committed Amount Effective Assets Pledged Restricted Cash Pledged Warehouse line due November 2022 $ — $ 500,000 — % $ — $ — Warehouse line due January 2023 — 1,000,000 — % — — Warehouse line due March 2023 — 1,250,000 — % — 1 Warehouse line due June 2023 — 500,000 — % — — Warehouse line due July 2023 — 600,000 — % — — Warehouse line due October 2023 — 500,000 — % 12,428 — Warehouse line due October 2023 — 2,100,000 — % — 64 Warehouse line due November 2023 — 1,000,000 — % — — Warehouse line due November 2023 — 3,500,000 — % 124,624 — Total facilities with third parties $ — $ 10,950,000 — % $ 137,052 $ 65 Promissory note with Santander due June 2022 $ 2,000,000 $ 2,000,000 2.03 % $ — $ — Promissory note with Santander due September 2022 2,000,000 2,000,000 1.01 % — — Total facilities with related parties $ 4,000,000 $ 4,000,000 1.52 % $ — $ — Total SC credit facilities $ 4,000,000 $ 14,950,000 1.52 % $ 137,052 $ 65 The following tables present information regarding SC's secured structured financings at the dates indicated: June 30, 2022 (dollars in thousands) Balance Initial Note Amounts Issued (3) Initial Weighted Average Interest Rate Range Collateral (2) Restricted Cash SC public securitizations maturing on various dates between June 2024 and July 2029 (1) $ 22,034,733 $ 51,970,975 0.48% - 3.42% $ 30,240,572 $ 1,096,055 SC privately issued amortizing notes maturing on various dates between June 2022 and December 2027 (3) 1,961,040 6,966,394 1.28% - 3.90% 3,211,200 17,782 Total SC secured structured financings $ 23,995,773 $ 58,937,369 0.48% - 3.90% $ 33,451,772 $ 1,113,837 (1) Securitizations executed under Rule 144A of the Securities Act are included within this balance. (2) Secured structured financings may be collateralized by SC's collateral overages of other issuances. (3) Excludes securitizations which no longer have outstanding debt and excludes any incremental borrowings. December 31, 2021 (dollars in thousands) Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Range Collateral Restricted Cash SC public securitizations maturing on various dates between July 2022 and March 2029 (1) $ 23,531,904 $ 54,534,275 0.48% - 3.42% $ 30,692,331 $ 1,621,026 SC privately issued amortizing notes maturing on various dates between June 2022 and December 2027 (3) 3,377,925 8,761,563 1.28% - 3.90% 5,728,292 16,220 Total SC secured structured financings $ 26,909,829 $ 63,295,838 0.48% - 3.90% $ 36,420,623 $ 1,637,246 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Summary of Accumulated Other Comprehensive Income / (Loss) | The following table presents the components of AOCI, net of related tax, for the three-month and six-month periods ended June 30, 2022 and 2021, respectively. Total Other Total Accumulated Three-Month Period Ended June 30, 2022 March 31, 2022 June 30, 2022 (in thousands) Pretax Tax Net Activity Beginning Net Ending Change in AOCI on cash flow hedge derivative financial instruments $ (116,864) $ 31,488 $ (85,376) Reclassification adjustment for net (gains)/losses on cash flow hedge derivative financial instruments (1) 4,650 (967) 3,683 Net unrealized gains/(losses) on cash flow hedge derivative financial instruments (112,214) 30,521 (81,693) $ (326,433) $ (81,693) $ (408,126) Change in unrealized (losses) on investments in debt securities AFS (243,284) 63,065 (180,219) Reclassification adjustment for (gains)/losses included in net income/(expense) on debt securities AFS (2) 10,758 (2,789) 7,969 Net unrealized gains on investments in debt securities AFS (232,526) 60,276 (172,250) (435,230) (172,250) (607,480) Pension and post-retirement actuarial gain (3) 784 (205) 579 (27,628) 579 (27,049) As of June 30, 2022 $ (343,956) $ 90,592 $ (253,364) $ (789,291) $ (253,364) $ (1,042,655) Total Other Total Accumulated Three-Month Period Ended June 30, 2021 March 31, 2021 June 30, 2021 (in thousands) Pretax Tax Net Activity Beginning Net Ending Change in AOCI on cash flow hedge derivative financial instruments $ (3,121) $ (468) $ (3,589) Reclassification adjustment for net (gains)/losses on cash flow hedge derivative financial instruments (1) 142 (35) 107 Net unrealized gains on cash flow hedge derivative financial instruments (2,979) (503) (3,482) $ 15,491 $ (3,482) $ 12,009 Change in unrealized gains on investment securities 17,336 (4,297) 13,039 Reclassification adjustment for net (gains)/losses included in net income/(expense) on debt securities AFS (2)(4) (5,370) 1,331 (4,039) Net unrealized (losses) on investment securities AFS 11,966 (2,966) 9,000 (4,893) 9,000 4,107 Pension and post-retirement actuarial gain (3) 757 (196) 561 (28,197) 561 (27,636) As of June 30, 2021 $ 9,744 $ (3,665) $ 6,079 $ (17,599) $ 6,079 $ (11,520) NOTE 10. ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (continued) Total Other Total Accumulated Six-month period ended June 30, 2022 December 31, 2021 June 30, 2022 (in thousands) Pretax Tax Net Activity Beginning Net Ending Change in AOCI on cash flow hedge derivative financial instruments $ (458,376) $ 120,936 $ (337,440) Reclassification adjustment for net (gains)/losses on cash flow hedge derivative financial instruments (1) 11,780 (2,449) 9,331 Net unrealized gains/(losses) on cash flow hedge derivative financial instruments (446,596) 118,487 (328,109) $ (80,017) $ (328,109) $ (408,126) Change in unrealized gains/(losses) on investments in debt securities (737,959) 190,807 (547,152) Reclassification adjustment for net (gains)/losses included in net income/(expense) on debt securities (2) 24,714 (5,137) 19,577 Net unrealized gains/(losses) on investments in debt securities (713,245) 185,670 (527,575) (79,905) (527,575) (607,480) Pension and post-retirement actuarial gain / (loss) (3) 1,510 (371) 1,139 (28,188) 1,139 (27,049) As of June 30, 2022 $ (1,158,331) $ 303,786 $ (854,545) $ (188,110) $ (854,545) $ (1,042,655) (1) Net gains/(losses) reclassified into Interest on borrowings and other debt obligations in the Condensed Consolidated Statements of Operations for settlements of interest rate swap contracts designated as cash flow hedges. (2) Net (gains)/losses reclassified into Net gain on sale of investment securities sales in the Condensed Consolidated Statements of Operations for the sale of debt securities. (3) Included in the computation of net periodic pension costs. Total Other Total Accumulated Six-month period ended June 30, 2021 December 31, 2020 June 30, 2021 (in thousands) Pretax Tax Net Activity Beginning Net Ending Change in AOCI on cash flow hedge derivative financial instruments $ (90,241) $ 23,842 $ (66,399) Reclassification adjustment for net (gains)/losses on cash flow hedge derivative financial instruments (1) 283 (41) 242 Net unrealized gains/(losses) on cash flow hedge derivative financial instruments (89,958) 23,801 (66,157) $ 78,166 $ (66,157) $ 12,009 Change in unrealized gains/(losses) on investments in debt securities (137,690) 35,812 (101,878) Reclassification adjustment for net (gains)/losses included in net income/(expense) on debt securities AFS (2) (15,243) 3,965 (11,278) Net unrealized gains/(losses) on investments in debt securities (152,933) 39,777 (113,156) 117,263 (113,156) 4,107 Pension and post-retirement actuarial gain / (loss) (3) 1,981 (483) 1,498 (29,134) 1,498 (27,636) As of June 30, 2021 $ (240,910) $ 63,095 $ (177,815) $ 166,295 $ (177,815) $ (11,520) |
SECURITIES FINANCING ACTIVITI_2
SECURITIES FINANCING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Summary of Securities Financing Transactions | Securities borrowed and purchased under agreements to resell, at their respective carrying values, consisted of the following: (in thousands) June 30, 2022 December 31, 2021 Securities purchased under agreements to resell $ 9,734,368 $ 2,422,042 Securities borrowed 4,013,568 2,924,426 Total $ 13,747,936 $ 5,346,468 Securities loaned or sold under agreements to repurchase, at their respective carrying values, consisted of the following: (in thousands) June 30, 2022 December 31, 2021 Securities sold under agreements to repurchase $ 16,004,022 $ 5,258,875 |
Summary of Offsetting Financial Assets | At June 30, 2022 and December 31, 2021, the following amounts of securities financing assets or liabilities qualified for offset in the Condensed Consolidated Balance Sheets. June 30, 2022 (in thousands) Gross amounts of recognized assets Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of assets included on the Condensed Consolidated Balance Sheets Securities purchased under agreements to resell $ 36,255,247 $ 26,520,879 $ 9,734,368 Securities borrowed 4,408,512 394,944 4,013,568 Total $ 40,663,759 $ 26,915,823 $ 13,747,936 June 30, 2022 (in thousands) Gross amounts of recognized liabilities Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of liabilities included on the Condensed Consolidated Balance Sheets Securities sold under agreements to repurchase $ 42,524,901 $ 26,520,879 $ 16,004,022 (1) Includes financial instruments subject to enforceable master netting agreements that are permitted to be offset under ASC 210-20-45. NOTE 11. SECURITIES FINANCING ACTIVITIES (continued) December 31, 2021 (in thousands) Gross amounts of recognized assets Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of assets included on the Condensed Consolidated Balance Sheets Securities purchased under agreements to resell $ 2,746,948 $ 324,906 $ 2,422,042 Securities borrowed 2,924,426 — 2,924,426 Total $ 5,671,374 $ 324,906 $ 5,346,468 December 31, 2021 (in thousands) Gross amounts of recognized liabilities Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of liabilities included on the Condensed Consolidated Balance Sheets Securities sold under agreements to repurchase $ 5,583,781 $ 324,906 $ 5,258,875 (1) Includes financial instruments subject to enforceable master netting agreements that are permitted to be offset under ASC 210-20-45. Information about financial assets and liabilities that are eligible for offset on the Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021, respectively, is presented in the following tables: Offsetting of Financial Assets Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets Collateral Received (2) Net Amount June 30, 2022 Fair value hedges $ 11,983 $ — $ 11,983 $ — $ 11,983 Cash flow hedges 769 — 769 580 189 Other derivative activities (1) 956,821 12,589 944,232 241,352 702,880 Total derivatives subject to a master netting arrangement or similar arrangement 969,573 12,589 956,984 241,932 715,052 Total derivatives not subject to a master netting arrangement or similar arrangement — — — — — Total Derivative Assets $ 969,573 $ 12,589 $ 956,984 $ 241,932 $ 715,052 December 31, 2021 Fair value hedges $ 1,843 $ — $ 1,843 $ — $ 1,843 Cash flow hedges 42,130 — 42,130 — 42,130 Other derivative activities (1) 614,255 — 614,255 41,899 572,356 Total derivatives subject to a master netting arrangement or similar arrangement 658,228 — 658,228 41,899 616,329 Total derivatives not subject to a master netting arrangement or similar arrangement 2,852 — 2,852 122 2,730 Total Derivative Assets $ 661,080 $ — $ 661,080 $ 42,021 $ 619,059 (1) Includes customer-related and other derivatives. (2) Collateral received includes cash, cash equivalents, and other financial instruments. Cash collateral received is reported in Other liabilities, as applicable, in the Condensed Consolidated Balance Sheets. Financial instruments that are pledged to the Company are not reflected in the accompanying Condensed Consolidated Balance Sheets since the Company does not control or have the ability to re-hypothecate these instruments. |
Summary of Offsetting Financial Liabilities | At June 30, 2022 and December 31, 2021, the following amounts of securities financing assets or liabilities qualified for offset in the Condensed Consolidated Balance Sheets. June 30, 2022 (in thousands) Gross amounts of recognized assets Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of assets included on the Condensed Consolidated Balance Sheets Securities purchased under agreements to resell $ 36,255,247 $ 26,520,879 $ 9,734,368 Securities borrowed 4,408,512 394,944 4,013,568 Total $ 40,663,759 $ 26,915,823 $ 13,747,936 June 30, 2022 (in thousands) Gross amounts of recognized liabilities Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of liabilities included on the Condensed Consolidated Balance Sheets Securities sold under agreements to repurchase $ 42,524,901 $ 26,520,879 $ 16,004,022 (1) Includes financial instruments subject to enforceable master netting agreements that are permitted to be offset under ASC 210-20-45. NOTE 11. SECURITIES FINANCING ACTIVITIES (continued) December 31, 2021 (in thousands) Gross amounts of recognized assets Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of assets included on the Condensed Consolidated Balance Sheets Securities purchased under agreements to resell $ 2,746,948 $ 324,906 $ 2,422,042 Securities borrowed 2,924,426 — 2,924,426 Total $ 5,671,374 $ 324,906 $ 5,346,468 December 31, 2021 (in thousands) Gross amounts of recognized liabilities Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of liabilities included on the Condensed Consolidated Balance Sheets Securities sold under agreements to repurchase $ 5,583,781 $ 324,906 $ 5,258,875 (1) Includes financial instruments subject to enforceable master netting agreements that are permitted to be offset under ASC 210-20-45. Offsetting of Financial Liabilities Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets Collateral Pledged (2) Net Amount June 30, 2022 Fair value hedges $ 251 $ — $ 251 $ — $ 251 Cash flow hedges 528,289 — 528,289 286,327 241,962 Other derivative activities (1) 947,798 13,204 934,594 124,953 809,641 Total derivatives subject to a master netting arrangement or similar arrangement 1,476,338 13,204 1,463,134 411,280 1,051,854 Total derivatives not subject to a master netting arrangement or similar arrangement — — — — — Total Derivative Liabilities $ 1,476,338 $ 13,204 $ 1,463,134 $ 411,280 $ 1,051,854 December 31, 2021 Cash flow hedges $ 111,093 $ — $ 111,093 $ 59,073 $ 52,020 Other derivative activities (1) 579,099 2,058 577,041 268,352 308,689 Total derivatives subject to a master netting arrangement or similar arrangement 690,192 2,058 688,134 327,425 360,709 Total derivatives not subject to a master netting arrangement or similar arrangement 21 — 21 21 — Total Derivative Liabilities $ 690,213 $ 2,058 $ 688,155 $ 327,446 $ 360,709 (1) Includes customer-related and other derivatives. (2) Cash collateral pledged and financial instruments pledged is reported in Other assets in the Condensed Consolidated Balance Sheets. In certain instances, the Company is over-collateralized since the actual amount of collateral pledged exceeds the associated financial liability. As a result, the actual amount of collateral pledged that is reported in Other assets may be greater than the amount shown in the table above. |
Summary of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets | The following tables present the gross amounts of liabilities associated with Securities Financing Activities by remaining contractual maturity: June 30, 2022 (in thousands) Open and overnight Up to 30 days 31-90 days Greater than 90 days Total Securities sold under agreements to repurchase $ 20,151,093 $ 9,783,685 $ 3,638,561 $ 8,951,562 $ 42,524,901 The following tables present the gross amounts of liabilities associated with Securities Financing Activities by class of underlying collateral as of the following dates: Repurchase agreements (in thousands) June 30, 2022 December 31, 2021 U.S. Treasury $ 28,540,952 $ 3,124,781 Residential agency MBS 12,715,891 2,459,000 Corporate and other securities 1,268,058 — Total $ 42,524,901 $ 5,583,781 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Instruments | Derivatives designated as accounting hedges at June 30, 2022 and December 31, 2021 included: (dollars in thousands) Notional Asset Liability Weighted Average Receive Rate Weighted Average Pay Weighted Average Life June 30, 2022 Fair value hedges: Cross-currency swaps $ 50,299 $ 863 $ — 2.49 % 8.38 % 6.18 Interest rate swaps 514,349 11,120 251 1.52 % 0.69 % 3.21 Cash flow hedges: Pay variable - receive fixed interest rate swaps 13,425,000 760 528,289 0.99 % 1.34 % 2 Interest rate floor 925,000 9 — — % — % 1.29 Total $ 14,914,648 $ 12,752 $ 528,540 0.96 % 1.25 % 2.02 December 31, 2021 Fair value hedges: Cross-currency swaps $ 14,743 $ 655 $ — 1.34 % 7.30 % 1.84 Interest rate swaps 128,789 1,188 — 0.05 % 0.71 % 3.59 Cash flow hedges: Pay variable - receive fixed interest rate swaps 11,995,000 41,980 111,093 0.88 % 0.09 % 2.28 Interest rate floor 925,000 150 — 0.03 % — % 1.68 Total $ 13,063,532 $ 43,973 $ 111,093 0.81 % 0.10 % 2.25 |
Summary of Other Derivative Activities | Other derivative activities at June 30, 2022 and December 31, 2021 included: Notional Asset derivatives Liability derivatives (in thousands) June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Mortgage banking derivatives: Forward commitments to sell loans $ — $ 264,188 $ — $ — $ — $ 21 Interest rate lock commitments — 99,752 — 2,852 — — Mortgage servicing 837,000 593,000 11,795 15,841 24,723 8,111 Total mortgage banking risk management 837,000 956,940 11,795 18,693 24,723 8,132 Customer-related derivatives: Swaps receive fixed 15,112,790 14,801,189 10,605 400,168 608,505 89,767 Swaps pay fixed 15,344,764 15,141,223 643,185 102,312 12,656 383,987 Other 5,793,103 6,384,285 71,086 25,542 68,741 26,741 Total customer-related derivatives 36,250,657 36,326,697 724,876 528,022 689,902 500,495 Other derivative activities: Foreign exchange contracts 6,041,137 5,085,973 77,746 35,899 71,434 33,836 Interest rate swap agreements 550,625 — 3,942 — — — Interest rate cap agreements 4,401,993 7,007,441 120,082 34,290 — — Options for interest rate cap agreements 4,401,993 7,007,441 — — 120,082 34,290 Other 682,213 111,373 5,791 203 29,068 2,367 Total $ 53,165,618 $ 56,495,865 $ 944,232 $ 617,107 $ 935,209 $ 579,120 |
Summary of Derivative Activities in the Condensed Consolidated Statement of Operations | The following Condensed Consolidated Statements of Operations line items were impacted by the Company’s derivative activities for the three-month and six-month periods ended June 30, 2022 and 2021: (in thousands) Three-Month Period Ended June 30, Six-Month Period Ended June 30 Line Item 2022 2021 2022 2021 Fair value hedges: Cross-currency swaps Net interest income $ (1,389) $ — $ (1,021) $ — Interest rate swaps Net interest income $ 2,957 $ 70 10,045 70 Cash flow hedges: Pay fixed-receive variable interest rate swaps Interest expense on borrowings (4,797) (7,651) (12,073) (15,308) Pay variable receive-fixed interest rate swap Interest income on loans 4,538 25,987 27,789 49,103 Interest rate floors Interest income on loans (44) 6,762 23 18,077 Other derivative activities: Forward commitments to sell loans Miscellaneous income, net (1,404) (7,002) 21 3,713 Interest rate lock commitments Miscellaneous income, net 103 (314) (2,852) (7,687) Mortgage servicing Miscellaneous income, net (10,064) 4,388 (27,357) (5,344) Customer-related derivatives Miscellaneous income, net (39,083) 6,138 (34,558) 13,793 Foreign exchange Miscellaneous income, net 49,350 832 51,312 6,194 Interest rate swaps, caps, and options Miscellaneous income, net 439 (214) 417 30 Other Miscellaneous income, net 31,425 (1,827) 31,796 (409) (1) Gains are disclosed as positive numbers while losses are shown as a negative number regardless of the line item being affected. |
Summary of Offsetting of Financial Assets | At June 30, 2022 and December 31, 2021, the following amounts of securities financing assets or liabilities qualified for offset in the Condensed Consolidated Balance Sheets. June 30, 2022 (in thousands) Gross amounts of recognized assets Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of assets included on the Condensed Consolidated Balance Sheets Securities purchased under agreements to resell $ 36,255,247 $ 26,520,879 $ 9,734,368 Securities borrowed 4,408,512 394,944 4,013,568 Total $ 40,663,759 $ 26,915,823 $ 13,747,936 June 30, 2022 (in thousands) Gross amounts of recognized liabilities Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of liabilities included on the Condensed Consolidated Balance Sheets Securities sold under agreements to repurchase $ 42,524,901 $ 26,520,879 $ 16,004,022 (1) Includes financial instruments subject to enforceable master netting agreements that are permitted to be offset under ASC 210-20-45. NOTE 11. SECURITIES FINANCING ACTIVITIES (continued) December 31, 2021 (in thousands) Gross amounts of recognized assets Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of assets included on the Condensed Consolidated Balance Sheets Securities purchased under agreements to resell $ 2,746,948 $ 324,906 $ 2,422,042 Securities borrowed 2,924,426 — 2,924,426 Total $ 5,671,374 $ 324,906 $ 5,346,468 December 31, 2021 (in thousands) Gross amounts of recognized liabilities Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of liabilities included on the Condensed Consolidated Balance Sheets Securities sold under agreements to repurchase $ 5,583,781 $ 324,906 $ 5,258,875 (1) Includes financial instruments subject to enforceable master netting agreements that are permitted to be offset under ASC 210-20-45. Information about financial assets and liabilities that are eligible for offset on the Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021, respectively, is presented in the following tables: Offsetting of Financial Assets Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets Collateral Received (2) Net Amount June 30, 2022 Fair value hedges $ 11,983 $ — $ 11,983 $ — $ 11,983 Cash flow hedges 769 — 769 580 189 Other derivative activities (1) 956,821 12,589 944,232 241,352 702,880 Total derivatives subject to a master netting arrangement or similar arrangement 969,573 12,589 956,984 241,932 715,052 Total derivatives not subject to a master netting arrangement or similar arrangement — — — — — Total Derivative Assets $ 969,573 $ 12,589 $ 956,984 $ 241,932 $ 715,052 December 31, 2021 Fair value hedges $ 1,843 $ — $ 1,843 $ — $ 1,843 Cash flow hedges 42,130 — 42,130 — 42,130 Other derivative activities (1) 614,255 — 614,255 41,899 572,356 Total derivatives subject to a master netting arrangement or similar arrangement 658,228 — 658,228 41,899 616,329 Total derivatives not subject to a master netting arrangement or similar arrangement 2,852 — 2,852 122 2,730 Total Derivative Assets $ 661,080 $ — $ 661,080 $ 42,021 $ 619,059 (1) Includes customer-related and other derivatives. (2) Collateral received includes cash, cash equivalents, and other financial instruments. Cash collateral received is reported in Other liabilities, as applicable, in the Condensed Consolidated Balance Sheets. Financial instruments that are pledged to the Company are not reflected in the accompanying Condensed Consolidated Balance Sheets since the Company does not control or have the ability to re-hypothecate these instruments. |
Summary of Offsetting Financial Liabilities | At June 30, 2022 and December 31, 2021, the following amounts of securities financing assets or liabilities qualified for offset in the Condensed Consolidated Balance Sheets. June 30, 2022 (in thousands) Gross amounts of recognized assets Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of assets included on the Condensed Consolidated Balance Sheets Securities purchased under agreements to resell $ 36,255,247 $ 26,520,879 $ 9,734,368 Securities borrowed 4,408,512 394,944 4,013,568 Total $ 40,663,759 $ 26,915,823 $ 13,747,936 June 30, 2022 (in thousands) Gross amounts of recognized liabilities Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of liabilities included on the Condensed Consolidated Balance Sheets Securities sold under agreements to repurchase $ 42,524,901 $ 26,520,879 $ 16,004,022 (1) Includes financial instruments subject to enforceable master netting agreements that are permitted to be offset under ASC 210-20-45. NOTE 11. SECURITIES FINANCING ACTIVITIES (continued) December 31, 2021 (in thousands) Gross amounts of recognized assets Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of assets included on the Condensed Consolidated Balance Sheets Securities purchased under agreements to resell $ 2,746,948 $ 324,906 $ 2,422,042 Securities borrowed 2,924,426 — 2,924,426 Total $ 5,671,374 $ 324,906 $ 5,346,468 December 31, 2021 (in thousands) Gross amounts of recognized liabilities Gross amounts offset on the Condensed Consolidated Balance Sheets (1) Net amounts of liabilities included on the Condensed Consolidated Balance Sheets Securities sold under agreements to repurchase $ 5,583,781 $ 324,906 $ 5,258,875 (1) Includes financial instruments subject to enforceable master netting agreements that are permitted to be offset under ASC 210-20-45. Offsetting of Financial Liabilities Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets (in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets Collateral Pledged (2) Net Amount June 30, 2022 Fair value hedges $ 251 $ — $ 251 $ — $ 251 Cash flow hedges 528,289 — 528,289 286,327 241,962 Other derivative activities (1) 947,798 13,204 934,594 124,953 809,641 Total derivatives subject to a master netting arrangement or similar arrangement 1,476,338 13,204 1,463,134 411,280 1,051,854 Total derivatives not subject to a master netting arrangement or similar arrangement — — — — — Total Derivative Liabilities $ 1,476,338 $ 13,204 $ 1,463,134 $ 411,280 $ 1,051,854 December 31, 2021 Cash flow hedges $ 111,093 $ — $ 111,093 $ 59,073 $ 52,020 Other derivative activities (1) 579,099 2,058 577,041 268,352 308,689 Total derivatives subject to a master netting arrangement or similar arrangement 690,192 2,058 688,134 327,425 360,709 Total derivatives not subject to a master netting arrangement or similar arrangement 21 — 21 21 — Total Derivative Liabilities $ 690,213 $ 2,058 $ 688,155 $ 327,446 $ 360,709 (1) Includes customer-related and other derivatives. (2) Cash collateral pledged and financial instruments pledged is reported in Other assets in the Condensed Consolidated Balance Sheets. In certain instances, the Company is over-collateralized since the actual amount of collateral pledged exceeds the associated financial liability. As a result, the actual amount of collateral pledged that is reported in Other assets may be greater than the amount shown in the table above. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the assets and liabilities that are measured at fair value on a recurring basis by major product category and fair value hierarchy as of June 30, 2022 and December 31, 2021: (in thousands) Level 1 Level 2 Level 3 Balance at June 30, 2022 Level 1 Level 2 Level 3 Balance at Financial assets: U.S. Treasury securities $ 236,025 $ — $ — $ 236,025 $ 73,618 $ — $ — $ 73,618 Corporate debt — 270,453 — 270,453 — 276,007 — 276,007 ABS — 509,218 — 509,218 — 537,722 — 537,722 MBS — 7,008,979 — 7,008,979 — 10,426,590 — 10,426,590 Investment in debt securities AFS (2) 236,025 7,788,650 — 8,024,675 73,618 11,240,319 — 11,313,937 Trading securities 822,763 4,154,652 1,402 4,978,817 64 35,727 — 35,791 Federal funds sold and securities purchased under resale agreements or similar arrangements — 1,542,698 — 1,542,698 — — — — RICs HFI (3) — — 26,172 26,172 — — 33,529 33,529 LHFS (1)(4) — 591 — 591 — 166,811 — 166,811 MSRs — — 104,411 104,411 — — 79,107 79,107 Other assets - derivatives (2) 4,170 952,714 100 956,984 — 658,187 2,893 661,080 Total financial assets (5) $ 1,062,958 $ 14,439,305 $ 132,085 $ 15,634,348 $ 73,682 $ 12,101,044 $ 115,529 $ 12,290,255 Financial liabilities: Federal funds purchased and securities loaned or sold under repurchase agreements — 1,516,107 — 1,516,107 — — — — Trading liabilities 1,844,686 322,668 — 2,167,354 — 62 — 62 Other liabilities - derivatives (2) — 1,462,284 1,465 1,463,749 — 687,846 2,367 690,213 Total financial liabilities $ 1,844,686 $ 3,301,059 $ 1,465 $ 5,147,210 $ — $ 687,908 $ 2,367 $ 690,275 (1) LHFS disclosed on the Condensed Consolidated Balance Sheets also includes LHFS that are held at the lower of cost or fair value and are not presented within this table. (2) Refer to Note 2 for the fair value of investment securities and to Note 12 for the fair values of derivative assets and liabilities on a further disaggregated basis. (3) RI Cs collateralized by vehicle titles at SC and RV/marine loans at SBNA. (4) Residential mortgage loans. (5) Approximately $132.1 million of these financial assets were measured using model-based techniques, or Level 3 inputs, and represented approximately 0.8% of total assets measured at fair value on a recurring basis and approximately 0.1% of total consolidated assets. |
Summary of Rollforward for Recurring Assets and Liabilities | The tables below present the changes in Level 3 balances for the three-month and six-month periods ended June 30, 2022 and 2021, respectively, for those assets and liabilities measured at fair value on a recurring basis. Three-Month Period Ended June 30, 2022 Three-Month Period Ended June 30, 2021 (in thousands) RICs HFI MSRs Derivatives, net Other Total Investments RICs HFI MSRs Derivatives, net Total Balances, beginning of period $ 29,485 $ 99,517 $ (1,387) $ — $ 127,615 $ 50,237 $ 44,568 $ 86,653 $ 4,269 $ 185,727 Losses in OCI — — — — — (175) — — — (175) Gains/(losses) in earnings — 8,789 22 — 8,811 — — (4,925) (798) (5,723) Additions/Issuances 47 863 — 1,402 2,312 — — 4,015 — 4,015 Settlements (1) (3,360) (4,758) — — (8,118) 1 (5,132) (6,013) — (11,144) Balances, end of period $ 26,172 $ 104,411 $ (1,365) $ 1,402 $ 130,620 $ 50,063 $ 39,436 $ 79,730 $ 3,471 $ 172,700 Changes in unrealized gains (losses) included in earnings related to balances still held at end of period $ — $ 8,789 $ (82) $ — $ 8,707 $ — $ — $ (4,925) $ (484) $ (5,409) Six-Month Period Ended June 30, 2022 Six-Month Period Ended June 30, 2021 (in thousands) RICs HFI MSRs Derivatives, net Other Total Investments RICs HFI MSRs Derivatives, net Total Balances, beginning of period $ 33,529 $ 79,107 $ 526 $ — $ 113,162 $ 50,393 $ 50,391 $ 77,545 $ 9,448 $ 187,777 Losses in OCI — — — — — (331) — — — (331) Gains/(losses) in earnings — 31,553 (1,891) — 29,662 — — 8,653 (5,977) 2,676 Additions/Issuances 47 3,383 — 1,402 4,832 — — 7,626 — 7,626 Settlements (1) (7,404) (9,632) — — (17,036) 1 (10,955) (14,094) — (25,048) Balances, end of period $ 26,172 $ 104,411 $ (1,365) $ 1,402 $ 130,620 $ 50,063 $ 39,436 $ 79,730 $ 3,471 $ 172,700 Changes in unrealized gains (losses) included in earnings related to balances still held at end of period $ — $ 31,553 $ 961 $ — $ 32,514 $ — $ — $ 8,653 $ 1,710 $ 10,363 (1) Settlements include charge-offs, prepayments, paydowns and maturities. |
Summary of Fair Value Measurements, Nonrecurring | Assets measured at fair value on a nonrecurring basis that were still held on the balance sheet were as follows: (in thousands) Level 1 Level 2 Level 3 Balance at Level 1 Level 2 Level 3 Balance at Impaired commercial LHFI $ — $ 12,562 $ 26,041 $ 38,603 $ — $ 17,180 $ 614 $ 17,794 Foreclosed assets — 2,788 — 2,788 — 1,322 — 1,322 Vehicle inventory — 277,208 — 277,208 — 271,396 — 271,396 LHFS — — 256,307 256,307 — — 88,212 88,212 Auto loans impaired due to bankruptcy — 193,641 — 193,641 — 202,448 — 202,448 |
Summary of Increases and Decreases in Value of Certain Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the increases and decreases in value of certain assets that are measured at fair value on a nonrecurring basis for which a fair value adjustment has been included in the Condensed Consolidated Statements of Operations relating to assets held at period-end: Three-Month Period Ended June 30, Six-Month Period Ended June 30 (in thousands) Statement of Operations Location 2022 2021 2022 2021 Impaired LHFI Credit loss expense / (benefit) (1) $ (1,107) $ (25,771) $ 9,568 $ (32,354) Foreclosed assets Miscellaneous income, net (1) — (263) — (321) LHFS Credit loss expense (77) — (77) — LHFS Miscellaneous income (7,447) — (7,447) — (1) Gains are disclosed as positive numbers while losses are shown as a negative number regardless of the line item being affected. |
Summary of Quantitative Information on Level 3 Recurring Assets and Liabilities | The following table presents quantitative information about the significant unobservable inputs within significant Level 3 recurring and nonrecurring assets and liabilities at June 30, 2022 and December 31, 2021, respectively: (dollars in thousands) Fair Value at June 30, 2022 (3) Valuation Technique Unobservable Inputs Range Financial Assets: Trading securities 1,402 Consensus pricing Offered quotes 1.53 % MSRs $ 104,411 DCF CPR (1) 6.99% - 54.22% (7.97%) Discount rate (2) 9.35 % (1) Average CPR projected from collateral stratified by loan type and note rate. Weighted average amount was developed by weighting the associated relative unpaid principal balances. (2) Average discount rate from collateral stratified by loan type and note rate. Weighted average amount was developed by weighting the associated relative unpaid principal balances. (3) Excluded insignificant Level 3 assets and liabilities. NOTE 13. FAIR VALUE (continued) (dollars in thousands) Fair Value at December 31, 2021 (3) Valuation Technique Unobservable Inputs Range Financial Assets: MSRs $ 79,107 DCF CPR (2) 7.42% - 82.71% (12.86%) Discount rate (3) 9.35 % |
Summary of Fair Value of Financial Instruments | The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company's financial instruments are as follows: June 30, 2022 December 31, 2021 (in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Carrying Value Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 10,468,011 $ 10,468,011 $ 10,468,011 $ — $ — $ 19,305,530 $ 19,305,530 $ 19,305,530 $ — $ — Federal funds sold and securities purchased under resale agreements or similar arrangements 13,747,936 13,690,778 — 13,690,778 — 5,346,468 5,372,052 — 5,372,052 — Investments in debt securities AFS 8,024,675 8,024,675 236,025 7,788,650 — 11,313,937 11,313,937 73,618 11,240,319 — Investments in debt securities HTM 9,437,767 8,662,504 — 8,662,504 — 6,702,471 6,629,206 — 6,629,206 — Trading securities and other investments (2) 5,378,817 5,378,953 822,763 4,554,788 1,402 285,791 286,526 64 286,462 — LHFI, net 86,206,812 89,711,110 — 12,562 89,698,548 85,614,402 89,039,439 — 17,180 89,022,259 LHFS 256,898 256,898 — — 256,898 255,023 255,023 — 166,811 88,212 Restricted cash 5,317,599 5,317,599 5,317,599 — — 5,711,705 5,711,705 5,711,705 — — MSRs 104,411 104,411 — — 104,411 79,107 79,107 — — 79,107 Derivatives 956,984 956,984 4,170 952,714 100 661,080 661,080 — 658,187 2,893 Financial liabilities: Deposits (1) 2,043,352 2,014,859 — 2,014,859 — 2,524,471 2,524,707 — 2,524,707 — Federal funds purchased and securities loaned or sold under repurchase agreements 16,004,022 15,996,704 — 15,996,704 — 5,258,875 5,258,874 — 5,258,874 — Trading liabilities 2,167,354 2,167,354 1,844,686 322,668 — 62 62 — 62 — Borrowings and other debt obligations 43,160,191 42,802,202 — 35,404,624 7,397,578 41,133,187 41,600,737 — 33,874,253 7,726,484 Derivatives 1,463,749 1,463,749 — 1,462,284 1,465 690,213 690,213 — 687,846 2,367 (1) This line item excludes deposit liabilities with no defined or contractual maturities in accordance with ASU 2016-01. ( 2) This line item includes CDs with a maturity greater than 90 days and investments in trading securities. |
Summary of Difference Between Fair Value and Principal Balance of LHFS | The following table summarizes the differences between the fair value and the principal balance of LHFS and RICs measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 (in thousands) Fair Value Aggregate UPB Difference Fair Value Aggregate UPB Difference LHFS (1) $ — $ — $ — $ 166,811 $ 162,525 $ 4,286 RICs HFI 26,172 26,459 (287) 33,529 33,737 (208) Nonaccrual loans 196 204 (8) 435 457 (22) (1) LHFS disclosed on the Condensed Consolidated Balance Sheets also includes LHFS that are held at the lower of cost or fair value that are not presented within this table. There were no nonaccrual loans related to the LHFS measured using the FVO. |
NON-INTEREST INCOME AND OTHER_2
NON-INTEREST INCOME AND OTHER EXPENSES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Details of Non-Interest Income | The following table presents the details of the Company's Non-interest income for the following periods: Three-Month Period Ended June 30, Six-Month Period Ended June 30 (in thousands) 2022 2021 2022 2021 Non-interest income: Consumer and commercial fees $ 100,334 $ 106,926 $ 197,824 $ 226,145 Lease income 678,655 732,892 1,349,859 1,505,784 Capital market revenue 44,316 60,146 109,075 141,935 Miscellaneous income, net Mortgage banking income, net 5,936 675 17,317 21,413 BOLI 14,340 15,387 29,957 30,933 Net gain on sale of operating leases 20,216 178,544 46,261 286,807 Asset and wealth management fees 66,857 58,744 133,559 117,471 Gain / (loss) on sale of non-mortgage loans (6,873) 14,831 (6,549) (23,185) Other miscellaneous income / (loss), net 14,858 8,772 28,638 44,236 Net gain on sale of investment securities 10,759 5,370 24,714 15,243 Total Non-interest income $ 949,398 $ 1,182,287 $ 1,930,655 $ 2,366,782 |
Summary of Disaggregation of Revenue from Contracts with Customers | The following table presents the Company's Non-interest income disaggregated by revenue source: Three-Month Period Ended June 30, Six-Month Period Ended June 30 (in thousands) 2022 2021 2022 2021 Non-interest income: In-scope of revenue from contracts with customers: Depository services (1) $ 41,408 $ 43,505 $ 81,308 $ 86,540 Commission and trailer fees (2) 60,599 53,525 119,785 108,064 Interchange income, net (2) 18,547 18,253 36,565 34,762 Underwriting service fees (2) 18,717 35,846 54,379 94,919 Asset and wealth management fees (2) 40,721 31,507 78,645 63,749 Other revenue from contracts with customers (2) 11,676 8,953 23,680 21,033 Total in-scope of revenue from contracts with customers 191,668 191,589 394,362 409,067 Out-of-scope of revenue from contracts with customers: Consumer and commercial fees (3) 41,194 47,386 82,728 109,335 Lease income 678,655 732,892 1,349,859 1,505,784 Other miscellaneous income / (loss), net (3) 27,122 205,050 78,992 327,353 Net gain/(loss) on sale of investment securities 10,759 5,370 24,714 15,243 Total out-of-scope of revenue from contracts with customers 757,730 990,698 1,536,293 1,957,715 Total non-interest income $ 949,398 $ 1,182,287 $ 1,930,655 $ 2,366,782 (1) Primarily recorded in the Company's Consolidated Statements of Operations within Consumer and commercial fees. (2) Primarily recorded in the Company's Consolidated Statements of Operations within Miscellaneous income, net. (3) The balance presented excludes certain revenue streams that are considered in-scope and presented above. |
Summary of Other Expense | The following table presents the Company's other expenses for the following periods: Three-Month Period Ended June 30, Six-Month Period Ended June 30 (in thousands) 2022 2021 2022 2021 Other expenses: Amortization of intangibles $ 10,495 $ 10,746 $ 23,034 $ 22,033 Deposit insurance premiums and other expenses 12,784 9,648 21,015 18,969 Other administrative expenses 97,739 82,466 186,491 155,442 Other miscellaneous expenses 6,597 5,637 32,312 16,475 Total Other expenses $ 127,615 $ 108,497 $ 262,852 $ 212,919 |
COMMITMENTS, CONTINGENCIES, A_2
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Commitments Amount | The following table details the amount of commitments at the dates indicated: Other Commitments June 30, 2022 December 31, 2021 (in thousands) Commitments to extend credit $ 28,301,108 $ 27,648,128 Letters of credit 1,317,513 1,374,081 Commitments to sell loans — 56,725 Recourse exposure on sold loans 21,021 19,095 Total commitments $ 29,639,642 $ 29,098,029 |
Summary of Liabilities for Commitments and Contingencies | The following table summarizes liabilities recorded for commitments and contingencies as of June 30, 2022 and December 31, 2021 , all of which are included in Accounts payable and accrued expenses in the accompanying Condensed Consolidated Balance Sheets: Agreement or Legal Matter Commitment or Contingency June 30, 2022 December 31, 2021 (in thousands) MPLFA Revenue-sharing and gain/(loss), net-sharing payments $ 26,538 $ 41,995 Agreement with Bank of America Servicer performance fee 462 462 Agreement with CBP Loss-sharing payments 250 273 Other contingencies Consumer arrangements — 6,937 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Segment Reporting Information | The following tables present certain information regarding the Company’s segments. Three-Month Period Ended SHUSA Reportable Segments June 30, 2022 Auto CBB C&I CRE CIB (4) Wealth Management Other (1) Total (in thousands) Net interest income $ 1,021,335 $ 331,432 $ 75,795 $ 84,747 $ 48,361 $ 45,227 $ (73,485) $ 1,533,412 Non-interest income 696,522 78,885 14,317 7,691 70,077 62,587 19,319 949,398 Credit loss expense / (benefit) 334,181 58,299 8,622 4,550 (3,003) — 1,551 404,200 Total expenses 830,072 383,486 64,700 29,410 117,092 59,375 48,937 1,533,072 Income/(loss) before income taxes 553,604 (31,468) 16,790 58,478 4,349 48,439 (104,654) 545,538 (1) Other includes the results of the immaterial entities, earnings from non-strategic assets, the investment portfolio, interest expense on SBNA’s and the Company's borrowings and other debt obligations, amortization of intangible assets and certain unallocated corporate income and indirect expenses. For the Three-Month Period Ended SHUSA Reportable Segments June 30, 2021 Auto CBB C&I CRE & VF CIB (4) Wealth Management Other (1) Total (in thousands) Net interest income $ 1,096,871 $ 301,416 $ 72,491 $ 82,783 $ 30,244 $ 23,171 $ (75,141) $ 1,531,835 Non-interest income 928,581 85,911 18,617 15,161 54,529 62,996 16,492 1,182,287 Credit loss expense / (benefit) (271,712) (12,915) (20,721) 2,573 (13,633) (97) (777) (317,282) Total expenses 855,243 372,913 62,903 29,138 62,779 52,755 57,151 1,492,882 Income/(loss) before income taxes 1,441,921 27,329 48,926 66,233 35,627 33,509 (115,023) 1,538,522 (1) Refer to corresponding notes above. NOTE 18. BUSINESS SEGMENT INFORMATION (continued) Six-Month Period Ended SHUSA Reportable Segments June 30, 2022 Auto CBB C&I CRE CIB Wealth Management Other (1) Total (in thousands) Net interest income $ 2,072,601 $ 633,387 $ 143,457 $ 163,182 $ 74,250 $ 64,370 $ (137,830) $ 3,013,417 Non-interest income 1,403,036 157,038 30,257 23,031 137,919 140,237 39,137 1,930,655 Credit loss expense / (benefit) 554,707 65,343 12,256 (14,788) 3,390 — 101 621,009 Total expenses 1,632,156 767,436 132,187 58,609 192,647 121,032 95,695 2,999,762 Income/(loss) before income taxes 1,288,774 (42,354) 29,271 142,392 16,132 83,575 (194,489) 1,323,301 Total assets 61,804,866 12,880,656 6,661,483 18,481,532 28,747,499 8,304,682 28,443,114 165,323,832 (1) Other includes the results of the immaterial entities, earnings from non-strategic assets, the investment portfolio, interest expense on SBNA’s and the Company's borrowings and other debt obligations, amortization of intangible assets and certain unallocated corporate income and indirect expenses. Six-Month Period Ended SHUSA Reportable Segments June 30, 2021 Auto CBB C&I CRE CIB (4) Wealth Management Other (1) Total (in thousands) Net interest income $ 2,169,118 $ 703,754 $ 146,266 $ 168,066 $ 57,655 $ 46,851 $ (140,543) $ 3,151,167 Non-interest income 1,846,438 153,120 35,019 20,777 132,078 126,242 53,108 2,366,782 Credit loss expense / (benefit) (150,327) (17,236) (52,062) 4,349 (22,327) (170) (3,443) (241,216) Total expenses 1,745,835 775,249 126,163 57,163 130,109 103,317 103,474 3,041,310 Income/(loss) before income taxes 2,420,048 98,861 107,184 127,331 81,951 69,946 (187,466) 2,717,855 Total assets 62,017,708 12,765,546 7,470,239 17,792,008 11,788,210 8,149,788 35,202,144 155,185,643 (1) Refer to corresponding notes above. |
DESCRIPTION OF BUSINESS, BASI_4
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND ACCOUNTING POLICIES - General (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Apr. 11, 2022 USD ($) employee institutional_client | Jan. 31, 2022 USD ($) | May 31, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Aug. 31, 2021 $ / shares | |
Noncontrolling Interest [Line Items] | ||||||||||
Goodwill | $ 2,767,732 | $ 2,767,732 | $ 2,767,732 | $ 2,596,161 | ||||||
Amortization of intangibles | 10,495 | $ 10,746 | 23,034 | $ 22,033 | ||||||
Net income/(loss) | 438,545 | $ 958,622 | 1,054,640 | $ 1,705,669 | ||||||
Credit Agricole Miami Wealth Management Business | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Amount of assets for which management will be transferred | $ 3,100,000 | |||||||||
Asset acquisition, consideration transferred | 189,000 | |||||||||
Assets acquired | 566,000 | |||||||||
Loans acquired | 528,000 | |||||||||
Finite-lived intangible assets acquired | 38,000 | |||||||||
Deposits acquired | $ 377,000 | |||||||||
Finite-lived intangible asset, useful life (in years) | 6 years | |||||||||
SC | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Business acquisition, share price (in dollars per share) | $ / shares | $ 41.50 | |||||||||
Acquisition, percentage of stock acquired | 19.80% | |||||||||
Payments to acquire additional interest in subsidiary | $ 2,500,000 | |||||||||
Decrease in APIC | $ (582,300) | |||||||||
Pierpoint Capital Holdings LLC | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Acquisition, percentage of stock acquired | 100% | |||||||||
Fair value of consideration transferred | $ 447,722 | |||||||||
Number of employees acquired | employee | 230 | |||||||||
Number of active institutional clients acquired | institutional_client | 1,300 | |||||||||
Fair value measurement subject to refinement, term | 1 year | |||||||||
Goodwill | $ 171,571 | |||||||||
Amortization of intangibles | $ 39,000 | |||||||||
Business combination, unsecured intercompany loan | $ 163,000 | |||||||||
Pro forma revenue | 5,700,000 | |||||||||
Pro forma net income | $ 1,100,000 | |||||||||
Revenue | 128,000 | |||||||||
Net income/(loss) | $ 8,000 |
DESCRIPTION OF BUSINESS, BASI_5
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND ACCOUNTING POLICIES - Fair Values of the Assets and Liabilities (Details) - USD ($) $ in Thousands | Apr. 11, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Fair value of liabilities acquired: | |||
Goodwill recognized | $ 2,767,732 | $ 2,596,161 | |
Pierpoint Capital Holdings LLC | |||
Business Acquisition [Line Items] | |||
Fair value of consideration transferred | $ 447,722 | ||
Fair value of assets acquired: | |||
Cash and cash equivalents (includes restricted cash) | 56,023 | ||
Other investments - trading assets at fair value | 5,121,331 | ||
Fed funds sold and securities purchased under resale agreements or similar arrangements | 10,638,695 | ||
Other intangible assets | 39,520 | ||
Other assets including premises and equipment | 185,830 | ||
Total assets acquired | 16,041,399 | ||
Fair value of liabilities acquired: | |||
Accounts payable, accrued expenses, and other liabilities | 537,701 | ||
Fed funds purchased and securities loaned or sold under repurchase agreements | 12,047,503 | ||
Trading liabilities | 3,013,646 | ||
Borrowings and other debt obligations | 162,938 | ||
Total liabilities acquired | 15,761,788 | ||
Fair value of net assets acquired | 279,611 | ||
Deferred taxes on purchase accounting fair value adjustments | (3,460) | ||
Goodwill recognized | $ 171,571 |
INVESTMENT SECURITIES - AFS Deb
INVESTMENT SECURITIES - AFS Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 8,616,108 | $ 11,409,953 |
Gross Unrealized Gains | 486 | 42,687 |
Gross Unrealized Loss | (591,919) | (138,703) |
Fair Value | 8,024,675 | 11,313,937 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 238,191 | 72,860 |
Gross Unrealized Gains | 0 | 758 |
Gross Unrealized Loss | (2,166) | 0 |
Fair Value | 236,025 | 73,618 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 270,907 | 275,963 |
Gross Unrealized Gains | 1 | 140 |
Gross Unrealized Loss | (455) | (96) |
Fair Value | 270,453 | 276,007 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 524,758 | 537,835 |
Gross Unrealized Gains | 157 | 353 |
Gross Unrealized Loss | (15,697) | (466) |
Fair Value | 509,218 | 537,722 |
GNMA - Residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 3,932,883 | 4,064,718 |
Gross Unrealized Gains | 2 | 21,169 |
Gross Unrealized Loss | (226,028) | (19,692) |
Fair Value | 3,706,857 | 4,066,195 |
GNMA - Commercial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 713,731 | 2,086,437 |
Gross Unrealized Gains | 170 | 2,060 |
Gross Unrealized Loss | (69,239) | (55,658) |
Fair Value | 644,662 | 2,032,839 |
FHLMC and FNMA - Residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 2,833,528 | 4,267,757 |
Gross Unrealized Gains | 137 | 14,616 |
Gross Unrealized Loss | (276,900) | (62,732) |
Fair Value | 2,556,765 | 4,219,641 |
FHLMC and FNMA - Commercial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 102,110 | 104,383 |
Gross Unrealized Gains | 19 | 3,591 |
Gross Unrealized Loss | (1,434) | (59) |
Fair Value | $ 100,695 | $ 107,915 |
INVESTMENT SECURITIES - HTM Deb
INVESTMENT SECURITIES - HTM Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 9,437,767 | $ 6,702,471 |
Gross Unrealized Gains | 2,009 | 39,255 |
Gross Unrealized Loss | (777,272) | (112,520) |
Fair Value | 8,662,504 | 6,629,206 |
ABS | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 68,319 | 89,722 |
Gross Unrealized Gains | 0 | 319 |
Gross Unrealized Loss | (889) | 0 |
Fair Value | 67,430 | 90,041 |
GNMA - Residential | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,957,907 | 2,862,595 |
Gross Unrealized Gains | 1,641 | 13,412 |
Gross Unrealized Loss | (314,941) | (45,102) |
Fair Value | 2,644,607 | 2,830,905 |
GNMA - Commercial | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 4,860,573 | 3,750,154 |
Gross Unrealized Gains | 229 | 25,524 |
Gross Unrealized Loss | (402,995) | (67,418) |
Fair Value | 4,457,807 | 3,708,260 |
FHLMC and FNMA - Residential | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 1,550,968 | 0 |
Gross Unrealized Gains | 139 | 0 |
Gross Unrealized Loss | (58,447) | 0 |
Fair Value | $ 1,492,660 | $ 0 |
INVESTMENT SECURITIES - Securit
INVESTMENT SECURITIES - Securities Pledged as Collateral (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Securities pledged as collateral, fair value | $ 5,100,000,000 | $ 5,300,000,000 | |
Accrued interest on investment securities | 74,700,000 | 26,900,000 | |
Debt securities, available-for-sale, accrued interest writeoff | 0 | $ 0 | |
Debt securities, held-to-maturity, accrued interest, writeoff | 0 | 0 | |
AFS investment securities transferred to HTM investment securities | 2,982,195,000 | $ 0 | |
Collateral with Federal Reserve Bank | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Securities pledged as collateral, fair value | 2,000,000,000 | 1,600,000,000 | |
Public fund deposits | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Securities pledged as collateral, fair value | 2,600,000,000 | 3,200,000,000 | |
Repurchase agreements, hedging activities and recourse on loan sales | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Securities pledged as collateral, fair value | 78,600,000 | 72,600,000 | |
Overnight customer deposits | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Securities pledged as collateral, fair value | $ 315,500,000 | $ 403,800,000 |
INVESTMENT SECURITIES - Contrac
INVESTMENT SECURITIES - Contractual Maturity of AFS Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due within one year | $ 409,088 | |
Due after 1 year but within 5 years | 158,881 | |
Due after 5 years but within 10 years | 347,907 | |
Due after 10 years | 7,700,232 | |
Amortized cost | 8,616,108 | $ 11,409,953 |
Fair Value | ||
Due within one year | 406,595 | |
Due after 1 year but within 5 years | 157,777 | |
Due after 5 years but within 10 years | 337,573 | |
Due after 10 years | 7,122,730 | |
Total | $ 8,024,675 |
INVESTMENT SECURITIES - Contr_2
INVESTMENT SECURITIES - Contractual Maturity of HTM Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due within one year | $ 0 | |
Due after 1 year but within 5 years | 33,522 | |
Due after 5 years but within 10 years | 41,341 | |
Due after 10 years | 9,362,904 | |
Total | 9,437,767 | |
Fair Value | ||
Due within one year | 0 | |
Due after 1 year but within 5 years | 32,634 | |
Due after 5 years but within 10 years | 41,175 | |
Due after 10 years | 8,588,695 | |
Total | $ 8,662,504 | $ 6,629,206 |
INVESTMENT SECURITIES - Gross U
INVESTMENT SECURITIES - Gross Unrealized Loss and Fair Value of AFS Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value | ||
Less than 12 months | $ 5,839,815 | $ 8,003,179 |
12 months or longer | 2,074,900 | 312,013 |
Unrealized Losses | ||
Less than 12 months | (398,060) | (132,439) |
12 months or longer | (193,859) | (6,264) |
U.S. Treasury securities | ||
Fair Value | ||
Less than 12 months | 236,121 | 0 |
12 months or longer | 0 | 0 |
Unrealized Losses | ||
Less than 12 months | (2,166) | 0 |
12 months or longer | 0 | 0 |
Corporate debt securities | ||
Fair Value | ||
Less than 12 months | 269,518 | 173,255 |
12 months or longer | 0 | 0 |
Unrealized Losses | ||
Less than 12 months | (455) | (96) |
12 months or longer | 0 | 0 |
ABS | ||
Fair Value | ||
Less than 12 months | 484,052 | 389,743 |
12 months or longer | 10,428 | 16,265 |
Unrealized Losses | ||
Less than 12 months | (15,425) | (205) |
12 months or longer | (272) | (261) |
GNMA - Residential | ||
Fair Value | ||
Less than 12 months | 2,222,526 | 2,283,469 |
12 months or longer | 1,481,122 | 96,339 |
Unrealized Losses | ||
Less than 12 months | (132,428) | (19,068) |
12 months or longer | (93,600) | (624) |
GNMA - Commercial | ||
Fair Value | ||
Less than 12 months | 435,810 | 1,795,619 |
12 months or longer | 197,350 | 89,640 |
Unrealized Losses | ||
Less than 12 months | (40,461) | (51,908) |
12 months or longer | (28,778) | (3,750) |
FHLMC and FNMA - Residential | ||
Fair Value | ||
Less than 12 months | 2,100,402 | 3,315,452 |
12 months or longer | 386,000 | 109,769 |
Unrealized Losses | ||
Less than 12 months | (205,691) | (61,103) |
12 months or longer | (71,209) | (1,629) |
FHLMC and FNMA - Commercial | ||
Fair Value | ||
Less than 12 months | 91,386 | 45,641 |
12 months or longer | 0 | 0 |
Unrealized Losses | ||
Less than 12 months | (1,434) | (59) |
12 months or longer | $ 0 | $ 0 |
INVESTMENT SECURITIES - Gross_2
INVESTMENT SECURITIES - Gross Unrealized Loss and Fair Value of HTM Debt Securities (Details) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value | ||
Less than 12 months | $ 6,746,316 | $ 4,567,454 |
12 months or longer | 1,755,204 | 205,689 |
Unrealized Losses | ||
Less than 12 months | (523,200) | (103,661) |
12 months or longer | (254,072) | (8,859) |
ABS | ||
Fair Value | ||
Less than 12 months | 48,413 | 0 |
12 months or longer | 19,017 | 0 |
Unrealized Losses | ||
Less than 12 months | (645) | 0 |
12 months or longer | (244) | 0 |
GNMA - Residential | ||
Fair Value | ||
Less than 12 months | 1,823,787 | 2,051,851 |
12 months or longer | 784,154 | 81,034 |
Unrealized Losses | ||
Less than 12 months | (194,067) | (42,284) |
12 months or longer | (120,874) | (2,818) |
GNMA - Commercial | ||
Fair Value | ||
Less than 12 months | 3,482,656 | 2,515,603 |
12 months or longer | 952,033 | 124,655 |
Unrealized Losses | ||
Less than 12 months | (270,041) | (61,377) |
12 months or longer | (132,954) | (6,041) |
FHLMC and FNMA - Residential | ||
Fair Value | ||
Less than 12 months | 1,391,460 | 0 |
12 months or longer | 0 | 0 |
Unrealized Losses | ||
Less than 12 months | (58,447) | 0 |
12 months or longer | $ 0 | $ 0 |
INVESTMENT SECURITIES - Other-T
INVESTMENT SECURITIES - Other-Than-Temporary Impairment (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Debt securities, available-for-sale, amortized cost, allowance for credit loss, excluding accrued interest | $ 0 | $ 0 |
Debt securities, held-to-maturity, allowance for credit loss, excluding accrued interest | 0 | 0 |
Trading securities | $ 4,978,817,000 | $ 35,791,000 |
INVESTMENT SECURITIES - Gains (
INVESTMENT SECURITIES - Gains (Losses) and Proceeds on Sale of Investment Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from the sales of AFS securities | $ 0 | $ 819,209 | $ 0 | $ 1,326,299 |
Gross realized gains | 0 | 8,196 | 0 | 18,267 |
Gross realized losses | 0 | (2,317) | 0 | (2,317) |
Net realized gains/(losses) on AFS and other securities | 0 | 5,879 | 0 | 15,950 |
Total trading securities gains/(losses) | 10,759 | (509) | 12,234 | (707) |
Total equity securities gains/(losses) | 0 | 0 | 12,480 | 0 |
Total realized gains/(losses) in income from investments | $ 10,759 | $ 5,370 | $ 24,714 | $ 15,243 |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Schedule of Other Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
FHLB of Pittsburgh and FRB stock | $ 481,959 | $ 394,668 |
LIHTC investments | 388,021 | 370,493 |
Equity securities not held for trading | 105,565 | 45,186 |
Interest-bearing deposits with an affiliate bank | 400,000 | 250,000 |
Total | 1,375,545 | 1,060,347 |
Off-balance Securitization Trusts | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Equity securities not held for trading | $ 2,600 | $ 3,000 |
INVESTMENT SECURITIES - Other I
INVESTMENT SECURITIES - Other Investments (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2022 USD ($) $ / shares | |
Investments, Debt and Equity Securities [Abstract] | ||
FHLB Stock, par value (in usd per share) | $ / shares | $ 100 | $ 100 |
Purchases of FHLB stock | $ 185,000,000 | $ 185,100,000 |
FHLB stock redeemed | 87,400,000 | 87,600,000 |
Purchase of FRB stock | 0 | 6,300,000 |
Proceeds from FRB stock | $ 14,000,000 | 16,500,000 |
Gain (loss) on redemption of FHLB stock | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2021 | ||
Loans Receivable [Line Items] | |||
LHFS | [1],[2] | $ 256,898,000 | $ 255,023,000 |
Accrued interest receivable | 561,264,000 | 482,469,000 | |
Financing receivable, allowance for credit loss, period increase (decrease) | $ 93,800,000 | ||
Percentage of payment needed on past due loans for qualification | 90% | ||
TDRs, number of days past due after modification considered to have subsequently defaulted | 90 days | ||
Loans receivable | |||
Loans Receivable [Line Items] | |||
Accrued interest receivable | $ 471,800,000 | 453,000,000 | |
Mortgages | |||
Loans Receivable [Line Items] | |||
LHFS | 591,000 | ||
Personal unsecured loans | Consumer | |||
Loans Receivable [Line Items] | |||
Payments to acquire loans receivable | $ 286,100,000 | ||
Retail installment contracts | |||
Loans Receivable [Line Items] | |||
TDRs, number of days past due after modification considered to have subsequently defaulted | 120 days | ||
Asset Pledged as Collateral | |||
Loans Receivable [Line Items] | |||
LHFI, net | $ 44,800,000,000 | $ 43,200,000,000 | |
[1]Includes $0.6 million and $166.8 million of loans recorded at the FVO at June 30, 2022 and December 31, 2021, respectively.[2]The Company has interests in certain Trusts that are considered VIEs for accounting purposes. At June 30, 2022 and December 31, 2021, LHFI included $23.6 billion and $20.6 billion, LHFS included zero and zero , Operating leases assets, net included $12.2 billion and $14.7 billion, restricted cash included $1.1 billion and $1.6 billion, Other assets included $687.5 million and $629.4 million, Borrowings and other debt obligations included $30.2 billion and $29.2 billion, and Other liabilities included $121.9 million and $81.1 million of assets or liabilities that were included within VIEs, respectively. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loan and Lease Portfolio Composition (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Loans Receivable [Line Items] | |||
Total | [1],[2] | $ 92,762,061 | $ 92,075,812 |
Loans held for investment with fixed rate of interest | 65,142,714 | 64,774,941 | |
Loans held for investment with variable rate of interest | $ 27,619,347 | $ 27,300,871 | |
Loans held for investment, percent of total loans | 100% | 100% | |
Loans held for investment with fixed rate of interest, percent of total loans | 70.20% | 70.30% | |
Loans held for investment with variable rate of interest, percent of total loans | 29.80% | 29.70% | |
Net increase in loan balances | $ 2,800,000 | $ 2,900,000 | |
Commercial | |||
Loans Receivable [Line Items] | |||
Total | $ 37,093,433 | $ 37,655,280 | |
Loans held for investment, percent of total loans | 40% | 40.90% | |
Commercial | CRE loans | |||
Loans Receivable [Line Items] | |||
Total | $ 7,607,459 | $ 7,227,003 | |
Loans held for investment, percent of total loans | 8.20% | 7.80% | |
Commercial | C&I loans | |||
Loans Receivable [Line Items] | |||
Total | $ 13,140,429 | $ 14,710,864 | |
Loans held for investment, percent of total loans | 14.20% | 16% | |
Commercial | Multifamily loans | |||
Loans Receivable [Line Items] | |||
Total | $ 8,183,802 | $ 7,547,382 | |
Loans held for investment, percent of total loans | 8.80% | 8.20% | |
Commercial | Other commercial(3) | |||
Loans Receivable [Line Items] | |||
Total | $ 8,161,743 | $ 8,170,031 | |
Loans held for investment, percent of total loans | 8.80% | 8.90% | |
Hedged asset, fair value hedge | $ 257,200 | $ 128,800 | |
Hedged asset, fair value hedge, cumulative increase (decrease) | 25,500 | (1,300) | |
Consumer | |||
Loans Receivable [Line Items] | |||
Total | $ 55,668,628 | $ 54,420,532 | |
Loans held for investment, percent of total loans | 60% | 59.10% | |
Consumer | Residential mortgages | |||
Loans Receivable [Line Items] | |||
Total | $ 5,374,730 | $ 5,598,560 | |
Consumer | Home equity loans and lines of credit | |||
Loans Receivable [Line Items] | |||
Total | 3,274,352 | 3,487,234 | |
Consumer | RICs and auto loans | |||
Loans Receivable [Line Items] | |||
Total | 43,699,070 | 43,183,098 | |
Consumer loans secured by real estate | |||
Loans Receivable [Line Items] | |||
Total | $ 8,649,082 | $ 9,085,794 | |
Loans held for investment, percent of total loans | 9.30% | 9.90% | |
Consumer loans secured by real estate | Residential mortgages | |||
Loans Receivable [Line Items] | |||
Total | $ 5,374,730 | $ 5,598,560 | |
Loans held for investment, percent of total loans | 5.80% | 6.10% | |
Consumer loans secured by real estate | Home equity loans and lines of credit | |||
Loans Receivable [Line Items] | |||
Total | $ 3,274,352 | $ 3,487,234 | |
Loans held for investment, percent of total loans | 3.50% | 3.80% | |
Consumer loans not secured by real estate | RICs and auto loans | |||
Loans Receivable [Line Items] | |||
Total | $ 43,699,070 | $ 43,183,098 | |
Loans held for investment, percent of total loans | 47.10% | 46.90% | |
Consumer loans not secured by real estate | Personal unsecured loans | |||
Loans Receivable [Line Items] | |||
Total | $ 3,207,390 | $ 2,009,654 | |
Loans held for investment, percent of total loans | 3.50% | 2.20% | |
Consumer loans not secured by real estate | Other consumer | |||
Loans Receivable [Line Items] | |||
Total | $ 113,086 | $ 141,986 | |
Loans held for investment, percent of total loans | 0.10% | 0.10% | |
[1]LHFI includes $26.2 million and $33.5 million of loans recorded at fair value at June 30, 2022 and December 31, 2021, respectively.[2]The Company has interests in certain Trusts that are considered VIEs for accounting purposes. At June 30, 2022 and December 31, 2021, LHFI included $23.6 billion and $20.6 billion, LHFS included zero and zero , Operating leases assets, net included $12.2 billion and $14.7 billion, restricted cash included $1.1 billion and $1.6 billion, Other assets included $687.5 million and $629.4 million, Borrowings and other debt obligations included $30.2 billion and $29.2 billion, and Other liabilities included $121.9 million and $81.1 million of assets or liabilities that were included within VIEs, respectively. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Rollforward of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Allowance for Loan Losses [Roll Forward] | ||||||
ALLL, beginning of period | $ 6,405,231 | $ 7,160,155 | $ 6,461,410 | [1] | $ 7,338,493 | |
Credit loss expense / (benefit) | 409,456 | (317,177) | 638,930 | (219,044) | ||
Charge-offs | (834,512) | (601,384) | (1,731,717) | (1,468,402) | ||
Recoveries | 575,074 | 647,721 | 1,186,626 | 1,238,268 | ||
Charge-offs, net of recoveries | (259,438) | 46,337 | (545,091) | (230,134) | ||
ALLL, end of period | 6,555,249 | [1] | 6,889,315 | 6,555,249 | [1] | 6,889,315 |
Reserve for Unfunded Lending Commitments Roll Forward [Roll Forward] | ||||||
Reserve for unfunded lending commitments, beginning of period | 91,429 | 124,389 | 104,094 | 146,455 | ||
Credit loss expense / (benefit) on unfunded lending commitments | (5,256) | (105) | (17,921) | (22,171) | ||
Reserve for unfunded lending commitments, end of period | 86,173 | 124,284 | 86,173 | 124,284 | ||
Total ACL, end of period | 6,641,422 | 7,013,599 | 6,641,422 | 7,013,599 | ||
Commercial | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
ALLL, beginning of period | 557,331 | 716,347 | 567,309 | 752,196 | ||
Credit loss expense / (benefit) | 11,801 | (47,609) | 403 | (69,458) | ||
Charge-offs | (14,451) | (40,058) | (30,620) | (79,687) | ||
Recoveries | 14,225 | 12,835 | 31,814 | 38,464 | ||
Charge-offs, net of recoveries | (226) | (27,223) | 1,194 | (41,223) | ||
ALLL, end of period | 568,906 | 641,515 | 568,906 | 641,515 | ||
Reserve for Unfunded Lending Commitments Roll Forward [Roll Forward] | ||||||
Reserve for unfunded lending commitments, beginning of period | 80,309 | 100,317 | 91,191 | 119,129 | ||
Credit loss expense / (benefit) on unfunded lending commitments | (4,597) | 1,160 | (15,479) | (17,652) | ||
Reserve for unfunded lending commitments, end of period | 75,712 | 101,477 | 75,712 | 101,477 | ||
Total ACL, end of period | 644,618 | 742,992 | 644,618 | 742,992 | ||
Consumer | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
ALLL, beginning of period | 5,847,900 | 6,443,808 | 5,894,101 | 6,586,297 | ||
Credit loss expense / (benefit) | 397,655 | (269,568) | 638,527 | (149,586) | ||
Charge-offs | (820,061) | (561,326) | (1,701,097) | (1,388,715) | ||
Recoveries | 560,849 | 634,886 | 1,154,812 | 1,199,804 | ||
Charge-offs, net of recoveries | (259,212) | 73,560 | (546,285) | (188,911) | ||
ALLL, end of period | 5,986,343 | 6,247,800 | 5,986,343 | 6,247,800 | ||
Reserve for Unfunded Lending Commitments Roll Forward [Roll Forward] | ||||||
Reserve for unfunded lending commitments, beginning of period | 11,120 | 24,072 | 12,903 | 27,326 | ||
Credit loss expense / (benefit) on unfunded lending commitments | (659) | (1,265) | (2,442) | (4,519) | ||
Reserve for unfunded lending commitments, end of period | 10,461 | 22,807 | 10,461 | 22,807 | ||
Total ACL, end of period | $ 5,996,804 | $ 6,270,607 | $ 5,996,804 | $ 6,270,607 | ||
[1]The Company has interests in certain Trusts that are considered VIEs for accounting purposes. At June 30, 2022 and December 31, 2021, LHFI included $23.6 billion and $20.6 billion, LHFS included zero and zero , Operating leases assets, net included $12.2 billion and $14.7 billion, restricted cash included $1.1 billion and $1.6 billion, Other assets included $687.5 million and $629.4 million, Borrowings and other debt obligations included $30.2 billion and $29.2 billion, and Other liabilities included $121.9 million and $81.1 million of assets or liabilities that were included within VIEs, respectively. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Non-accrual Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual loans | $ 1,870,657 | $ 1,870,657 | $ 1,897,566 | ||
Non-accrual loans with no allowance | 373,314 | 373,314 | 482,052 | ||
Foreclosed and other repossessed assets | 263,470 | 263,470 | 248,051 | ||
Interest income recognized on nonaccrual loans | 34,200 | $ 20,500 | 71,900 | $ 46,700 | |
Nonperforming | |||||
Financing Receivable, Past Due [Line Items] | |||||
OREO | 4,462 | 4,462 | 3,724 | ||
Repossessed vehicles | 262,988 | 262,988 | 247,757 | ||
Foreclosed and other repossessed assets | 482 | 482 | 294 | ||
Total OREO and other repossessed assets | 267,932 | 267,932 | 251,775 | ||
Total non-performing assets | 2,138,589 | 2,138,589 | 2,149,341 | ||
Commercial | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual loans | 182,717 | 182,717 | 213,841 | ||
Non-accrual loans with no allowance | 95,282 | 95,282 | 168,687 | ||
Commercial | CRE | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual loans | 30,936 | 30,936 | 31,752 | ||
Non-accrual loans with no allowance | 25,047 | 25,047 | 24,112 | ||
Commercial | C&I | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual loans | 88,481 | 88,481 | 69,754 | ||
Non-accrual loans with no allowance | 11,016 | 11,016 | 35,965 | ||
Commercial | Multifamily | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual loans | 53,872 | 53,872 | 103,299 | ||
Non-accrual loans with no allowance | 53,615 | 53,615 | 103,138 | ||
Commercial | Other commercial(3) | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual loans | 9,428 | 9,428 | 9,036 | ||
Non-accrual loans with no allowance | 5,604 | 5,604 | 5,472 | ||
Consumer | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual loans | 1,687,940 | 1,687,940 | 1,683,725 | ||
Non-accrual loans with no allowance | 278,032 | 278,032 | 313,365 | ||
Consumer | Residential mortgages | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual loans | 98,755 | 98,755 | 123,548 | ||
Non-accrual loans with no allowance | 48,695 | 48,695 | 71,463 | ||
Consumer | Home equity loans and lines of credit | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual loans | 82,643 | 82,643 | 88,310 | ||
Non-accrual loans with no allowance | 36,289 | 36,289 | 39,693 | ||
Consumer | RICs and auto loans | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual loans | 1,502,251 | 1,502,251 | 1,467,928 | ||
Non-accrual loans with no allowance | 193,013 | 193,013 | 202,193 | ||
Consumer | Personal unsecured loans | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual loans | 3,907 | 3,907 | 2,892 | ||
Non-accrual loans with no allowance | 0 | 0 | 0 | ||
Consumer | Other consumer | |||||
Financing Receivable, Past Due [Line Items] | |||||
Non-accrual loans | 384 | 384 | 1,047 | ||
Non-accrual loans with no allowance | $ 35 | $ 35 | $ 16 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Age Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | $ 93,018,959 | $ 92,330,835 |
Recorded Investment Greater than 90 Days and Accruing | 2,859 | 2,314 |
LHFS | 600 | 166,800 |
Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 4,489,918 | 4,286,207 |
30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 4,096,055 | 3,769,693 |
90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 393,863 | 516,514 |
Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 88,529,041 | 88,044,628 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 37,349,740 | 37,743,492 |
LHFS | 256,300 | 88,200 |
Commercial | C&I | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 13,344,682 | 14,799,076 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
LHFS | 204,300 | 88,200 |
Commercial | C&I | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 53,739 | 51,337 |
Commercial | C&I | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 43,600 | 31,475 |
Commercial | C&I | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 10,139 | 19,862 |
Commercial | C&I | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 13,290,943 | 14,747,739 |
Commercial | CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 7,619,411 | 7,227,003 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
LHFS | 12,000 | |
Commercial | CRE | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 13,130 | 13,062 |
Commercial | CRE | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 7,985 | 4,287 |
Commercial | CRE | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 5,145 | 8,775 |
Commercial | CRE | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 7,606,281 | 7,213,941 |
Commercial | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 8,183,802 | 7,547,382 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Commercial | Multifamily | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 25,351 | 2,910 |
Commercial | Multifamily | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 25,351 | 336 |
Commercial | Multifamily | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 0 | 2,574 |
Commercial | Multifamily | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 8,158,451 | 7,544,472 |
Commercial | Other commercial(3) | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 8,201,845 | 8,170,031 |
Recorded Investment Greater than 90 Days and Accruing | 7 | 0 |
LHFS | 40,100 | |
Commercial | Other commercial(3) | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 100,744 | 80,516 |
Commercial | Other commercial(3) | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 98,376 | 77,842 |
Commercial | Other commercial(3) | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 2,368 | 2,674 |
Commercial | Other commercial(3) | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 8,101,101 | 8,089,515 |
Consumer | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 5,375,321 | 5,765,371 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
LHFS | 591 | 166,800 |
Consumer | Residential mortgages | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 152,751 | 173,029 |
Consumer | Residential mortgages | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 64,489 | 83,626 |
Consumer | Residential mortgages | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 88,262 | 89,403 |
Consumer | Residential mortgages | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 5,222,570 | 5,592,342 |
Consumer | Home equity loans and lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 3,274,352 | 3,487,234 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Consumer | Home equity loans and lines of credit | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 81,694 | 86,177 |
Consumer | Home equity loans and lines of credit | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 20,021 | 22,871 |
Consumer | Home equity loans and lines of credit | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 61,673 | 63,306 |
Consumer | Home equity loans and lines of credit | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 3,192,658 | 3,401,057 |
Consumer | RICs and auto loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 43,699,070 | 43,183,098 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Consumer | RICs and auto loans | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 4,033,556 | 3,859,552 |
Consumer | RICs and auto loans | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 3,815,801 | 3,535,402 |
Consumer | RICs and auto loans | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 217,755 | 324,150 |
Consumer | RICs and auto loans | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 39,665,514 | 39,323,546 |
Consumer | Personal unsecured loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 3,207,390 | 2,009,654 |
Recorded Investment Greater than 90 Days and Accruing | 2,852 | 2,314 |
Consumer | Personal unsecured loans | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 25,277 | 15,567 |
Consumer | Personal unsecured loans | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 17,181 | 10,361 |
Consumer | Personal unsecured loans | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 8,096 | 5,206 |
Consumer | Personal unsecured loans | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 3,182,113 | 1,994,087 |
Consumer | Other consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 113,086 | 141,986 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Consumer | Other consumer | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 3,676 | 4,057 |
Consumer | Other consumer | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 3,251 | 3,493 |
Consumer | Other consumer | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | 425 | 564 |
Consumer | Other consumer | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Financing Receivables | $ 109,410 | $ 137,929 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Lending Asset Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 93,018,959 | $ 92,330,835 |
LHFS | 600 | 166,800 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 5,846,101 | 10,761,472 |
Year two | 8,942,675 | 7,561,028 |
Year three | 6,228,829 | 6,809,027 |
Year four | 5,975,710 | 4,167,072 |
Year five | 3,528,250 | 2,402,126 |
Prior | 6,828,175 | 6,042,767 |
Total | 37,349,740 | 37,743,492 |
LHFS | 256,300 | 88,200 |
Revolving loans converted to term loans | 312,400 | 362,700 |
Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 5,507,522 | 10,143,750 |
Year two | 8,279,207 | 7,102,191 |
Year three | 5,757,398 | 5,963,122 |
Year four | 5,285,643 | 3,365,041 |
Year five | 2,817,290 | 2,010,478 |
Prior | 6,116,422 | 5,318,883 |
Total | 33,763,482 | 33,903,465 |
Commercial | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 18,812 |
Year two | 41,388 | 41,758 |
Year three | 93,131 | 286,094 |
Year four | 258,591 | 225,329 |
Year five | 223,039 | 158,629 |
Prior | 168,645 | 171,289 |
Total | 784,794 | 901,911 |
Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 87,301 |
Year two | 209,771 | 158,764 |
Year three | 158,890 | 383,269 |
Year four | 306,360 | 536,760 |
Year five | 461,060 | 227,060 |
Prior | 538,467 | 547,439 |
Total | 1,674,548 | 1,940,593 |
Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | |
Year two | 0 | |
Year three | 26,041 | |
Year four | 0 | |
Year five | 0 | |
Prior | 0 | |
Total | 26,041 | |
Commercial | N/A | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 338,579 | 511,609 |
Year two | 412,309 | 258,315 |
Year three | 193,369 | 176,542 |
Year four | 125,116 | 39,942 |
Year five | 26,861 | 5,959 |
Prior | 4,641 | 5,156 |
Total | 1,100,875 | 997,523 |
Commercial | CRE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 542,324 | 1,006,516 |
Year two | 1,301,188 | 1,305,170 |
Year three | 1,634,977 | 1,466,790 |
Year four | 1,470,294 | 1,174,852 |
Year five | 979,580 | 607,383 |
Prior | 1,691,048 | 1,666,292 |
Total | 7,619,411 | 7,227,003 |
LHFS | 12,000 | |
Commercial | CRE | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 542,324 | 986,225 |
Year two | 1,265,319 | 1,283,784 |
Year three | 1,592,313 | 1,308,729 |
Year four | 1,330,450 | 918,097 |
Year five | 790,324 | 446,715 |
Prior | 1,493,901 | 1,512,165 |
Total | 7,014,631 | 6,455,715 |
Commercial | CRE | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
Year two | 0 | 9,490 |
Year three | 16,962 | 26,892 |
Year four | 47,807 | 118,103 |
Year five | 120,091 | 117,703 |
Prior | 78,540 | 35,135 |
Total | 263,400 | 307,323 |
Commercial | CRE | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 20,291 |
Year two | 35,869 | 11,896 |
Year three | 25,702 | 131,169 |
Year four | 92,037 | 138,652 |
Year five | 69,165 | 42,965 |
Prior | 118,607 | 118,992 |
Total | 341,380 | 463,965 |
Commercial | C&I | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 1,498,043 | 4,414,090 |
Year two | 3,542,726 | 3,566,102 |
Year three | 2,611,541 | 2,522,819 |
Year four | 2,069,755 | 1,300,417 |
Year five | 1,070,007 | 652,296 |
Prior | 2,552,610 | 2,343,352 |
Total | 13,344,682 | 14,799,076 |
LHFS | 204,300 | 88,200 |
Commercial | C&I | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 1,159,464 | 3,828,736 |
Year two | 2,948,324 | 3,213,214 |
Year three | 2,276,105 | 2,179,598 |
Year four | 1,780,137 | 1,179,065 |
Year five | 912,707 | 574,141 |
Prior | 2,312,048 | 2,042,111 |
Total | 11,388,785 | 13,016,865 |
Commercial | C&I | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 11,003 |
Year two | 19,528 | 32,268 |
Year three | 71,149 | 154,820 |
Year four | 157,398 | 31,026 |
Year five | 49,708 | 25,176 |
Prior | 35,960 | 98,964 |
Total | 333,743 | 353,257 |
Commercial | C&I | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 62,742 |
Year two | 162,565 | 62,305 |
Year three | 44,877 | 11,859 |
Year four | 7,104 | 50,384 |
Year five | 80,731 | 47,020 |
Prior | 199,961 | 197,121 |
Total | 495,238 | 431,431 |
Commercial | C&I | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | |
Year two | 0 | |
Year three | 26,041 | |
Year four | 0 | |
Year five | 0 | |
Prior | 0 | |
Total | 26,041 | |
Commercial | C&I | N/A | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 338,579 | 511,609 |
Year two | 412,309 | 258,315 |
Year three | 193,369 | 176,542 |
Year four | 125,116 | 39,942 |
Year five | 26,861 | 5,959 |
Prior | 4,641 | 5,156 |
Total | 1,100,875 | 997,523 |
Commercial | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 1,445,254 | 1,584,118 |
Year two | 1,580,079 | 824,678 |
Year three | 839,741 | 1,856,787 |
Year four | 1,667,773 | 1,237,441 |
Year five | 1,122,094 | 879,924 |
Prior | 1,528,861 | 1,164,434 |
Total | 8,183,802 | 7,547,382 |
Commercial | Multifamily | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 1,445,254 | 1,575,287 |
Year two | 1,550,187 | 740,684 |
Year three | 747,023 | 1,522,367 |
Year four | 1,412,490 | 820,900 |
Year five | 763,590 | 729,510 |
Prior | 1,258,132 | 905,967 |
Total | 7,176,676 | 6,294,715 |
Commercial | Multifamily | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 4,850 |
Year two | 21,860 | 0 |
Year three | 5,020 | 101,375 |
Year four | 53,386 | 71,031 |
Year five | 49,132 | 15,125 |
Prior | 53,862 | 35,449 |
Total | 183,260 | 227,830 |
Commercial | Multifamily | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 3,981 |
Year two | 8,032 | 83,994 |
Year three | 87,698 | 233,045 |
Year four | 201,897 | 345,510 |
Year five | 309,372 | 135,289 |
Prior | 216,867 | 223,018 |
Total | 823,866 | 1,024,837 |
Commercial | Remaining commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 2,360,480 | 3,756,748 |
Year two | 2,518,682 | 1,865,078 |
Year three | 1,142,570 | 962,631 |
Year four | 767,888 | 454,362 |
Year five | 356,569 | 262,523 |
Prior | 1,055,656 | 868,689 |
Total | 8,201,845 | 8,170,031 |
LHFS | 40,100 | |
Commercial | Remaining commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 2,360,480 | 3,753,502 |
Year two | 2,515,377 | 1,864,509 |
Year three | 1,141,957 | 952,428 |
Year four | 762,566 | 446,979 |
Year five | 350,669 | 260,112 |
Prior | 1,052,341 | 858,640 |
Total | 8,183,390 | 8,136,170 |
Commercial | Remaining commercial | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 2,959 |
Year two | 0 | 0 |
Year three | 0 | 3,007 |
Year four | 0 | 5,169 |
Year five | 4,108 | 625 |
Prior | 283 | 1,741 |
Total | 4,391 | 13,501 |
Commercial | Remaining commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 287 |
Year two | 3,305 | 569 |
Year three | 613 | 7,196 |
Year four | 5,322 | 2,214 |
Year five | 1,792 | 1,786 |
Prior | 3,032 | 8,308 |
Total | $ 14,064 | $ 20,360 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Consumer Lending Asset Quality Indicators - Credit Score (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Loans Receivable [Line Items] | |||
Total | [1],[2] | $ 92,762,061 | $ 92,075,812 |
Consumer | |||
Loans Receivable [Line Items] | |||
Total | 55,668,628 | 54,420,532 | |
RICs and auto loans | Consumer | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 11,117,645 | 21,206,427 | |
Year two | 16,644,961 | 10,257,057 | |
Year three | 7,700,631 | 6,761,592 | |
Year four | 4,965,127 | 2,988,734 | |
Year five | 2,119,586 | 1,069,897 | |
Prior | 1,151,120 | 899,391 | |
Total | $ 43,699,070 | $ 43,183,098 | |
Total, percent | 100% | 100% | |
RICs and auto loans | Consumer | No FICO | |||
Loans Receivable [Line Items] | |||
Current fiscal year | $ 802,876 | $ 1,427,962 | |
Year two | 1,061,233 | 733,752 | |
Year three | 526,315 | 449,965 | |
Year four | 325,661 | 244,829 | |
Year five | 173,185 | 201,129 | |
Prior | 165,379 | 108,766 | |
Total | $ 3,054,649 | $ 3,166,403 | |
Total, percent | 7% | 7.40% | |
RICs and auto loans | Consumer | FICO score less than 600 | |||
Loans Receivable [Line Items] | |||
Current fiscal year | $ 3,886,037 | $ 7,410,017 | |
Year two | 5,805,279 | 3,768,302 | |
Year three | 2,801,565 | 2,574,070 | |
Year four | 1,901,938 | 1,488,371 | |
Year five | 1,068,394 | 580,881 | |
Prior | 676,655 | 515,318 | |
Total | $ 16,139,868 | $ 16,336,959 | |
Total, percent | 36.90% | 37.80% | |
RICs and auto loans | Consumer | FICO score of 600 to 639 | |||
Loans Receivable [Line Items] | |||
Current fiscal year | $ 2,161,580 | $ 3,574,644 | |
Year two | 2,773,378 | 1,585,530 | |
Year three | 1,164,280 | 1,056,397 | |
Year four | 771,982 | 537,222 | |
Year five | 378,070 | 165,318 | |
Prior | 180,558 | 141,316 | |
Total | $ 7,429,848 | $ 7,060,427 | |
Total, percent | 17% | 16.30% | |
RICs and auto loans | Consumer | FICO score equal to or greater than 640 | |||
Loans Receivable [Line Items] | |||
Current fiscal year | $ 4,267,152 | $ 8,793,804 | |
Year two | 7,005,071 | 4,169,473 | |
Year three | 3,208,471 | 2,681,160 | |
Year four | 1,965,546 | 718,312 | |
Year five | 499,937 | 122,569 | |
Prior | 128,528 | 133,991 | |
Total | $ 17,074,705 | $ 16,619,309 | |
Total, percent | 39.10% | 38.50% | |
[1]LHFI includes $26.2 million and $33.5 million of loans recorded at fair value at June 30, 2022 and December 31, 2021, respectively.[2]The Company has interests in certain Trusts that are considered VIEs for accounting purposes. At June 30, 2022 and December 31, 2021, LHFI included $23.6 billion and $20.6 billion, LHFS included zero and zero , Operating leases assets, net included $12.2 billion and $14.7 billion, restricted cash included $1.1 billion and $1.6 billion, Other assets included $687.5 million and $629.4 million, Borrowings and other debt obligations included $30.2 billion and $29.2 billion, and Other liabilities included $121.9 million and $81.1 million of assets or liabilities that were included within VIEs, respectively. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Consumer Lending Asset Quality Indicators - FICO and CLTV Range (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Loans Receivable [Line Items] | |||
Total | [1],[2] | $ 92,762,061 | $ 92,075,812 |
Consumer | |||
Loans Receivable [Line Items] | |||
Total | 55,668,628 | 54,420,532 | |
Consumer | Residential Mortgages | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 224,817 | 1,151,800 | |
Year two | 1,157,142 | 1,021,134 | |
Year three | 968,447 | 722,710 | |
Year four | 655,294 | 363,014 | |
Year five | 317,632 | 505,475 | |
Prior | 2,051,398 | 1,834,427 | |
Total | 5,374,730 | 5,598,560 | |
Revolving Loans | 0 | 0 | |
Consumer | Residential Mortgages | FICO score not applicable | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 19,312 | 11,604 | |
Year two | 54 | 1,621 | |
Year three | 45 | 677 | |
Year four | 30 | 337 | |
Year five | 15 | 954 | |
Prior | 2,797 | 5,103 | |
Total | 22,253 | 20,296 | |
Revolving Loans | 0 | 0 | |
Consumer | Residential Mortgages | FICO score less than 600 | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 0 | 2,356 | |
Year two | 6,975 | 4,719 | |
Year three | 5,160 | 15,894 | |
Year four | 18,611 | 16,995 | |
Year five | 16,930 | 17,879 | |
Prior | 93,562 | 83,310 | |
Total | 141,238 | 141,153 | |
Revolving Loans | 0 | 0 | |
Consumer | Residential Mortgages | FICO score of 600 to 679 | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 12,109 | 30,763 | |
Year two | 43,154 | 39,681 | |
Year three | 42,440 | 61,969 | |
Year four | 56,562 | 37,104 | |
Year five | 41,251 | 39,283 | |
Prior | 212,482 | 192,786 | |
Total | 407,998 | 401,586 | |
Revolving Loans | 0 | 0 | |
Consumer | Residential Mortgages | FICO score of 680 to 759 | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 81,900 | 372,215 | |
Year two | 294,065 | 257,513 | |
Year three | 252,001 | 235,167 | |
Year four | 200,493 | 126,926 | |
Year five | 105,819 | 147,159 | |
Prior | 557,164 | 513,020 | |
Total | 1,491,442 | 1,652,000 | |
Revolving Loans | 0 | 0 | |
Consumer | Residential Mortgages | FICO score equal to or greater than 760 | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 111,496 | 734,862 | |
Year two | 812,894 | 717,600 | |
Year three | 668,801 | 409,003 | |
Year four | 379,598 | 181,652 | |
Year five | 153,617 | 300,200 | |
Prior | 1,185,393 | 1,040,208 | |
Total | 3,311,799 | 3,383,525 | |
Revolving Loans | 0 | 0 | |
Consumer | Residential Mortgages | No LTV available | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 19,312 | 11,605 | |
Year two | 55 | 907 | |
Year three | 46 | 676 | |
Year four | 31 | 338 | |
Year five | 16 | 469 | |
Prior | 1,471 | 3,076 | |
Total | 20,931 | 17,071 | |
Revolving Loans | 0 | 0 | |
Consumer | Residential Mortgages | LTV less than or equal to 70% | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 107,529 | 747,090 | |
Year two | 865,529 | 831,112 | |
Year three | 833,864 | 517,103 | |
Year four | 549,604 | 293,784 | |
Year five | 314,422 | 497,556 | |
Prior | 2,036,908 | 1,812,989 | |
Total | 4,707,856 | 4,699,634 | |
Revolving Loans | 0 | 0 | |
Consumer | Residential Mortgages | LTV of 70.01% - 110% | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 97,976 | 393,105 | |
Year two | 291,558 | 189,115 | |
Year three | 134,537 | 204,931 | |
Year four | 105,659 | 68,892 | |
Year five | 3,194 | 7,450 | |
Prior | 11,357 | 15,705 | |
Total | 644,281 | 879,198 | |
Revolving Loans | 0 | 0 | |
Consumer | Residential Mortgages | LTV greater than 110% | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 0 | 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 0 | |
Prior | 1,662 | 2,657 | |
Total | 1,662 | 2,657 | |
Revolving Loans | 0 | 0 | |
Consumer | Home equity loans and lines of credit | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 50,971 | 173,003 | |
Year two | 197,741 | 242,782 | |
Year three | 231,622 | 312,311 | |
Year four | 289,254 | 390,091 | |
Year five | 372,613 | 365,537 | |
Prior | 2,132,151 | 2,003,510 | |
Total | 3,274,352 | 3,487,234 | |
Revolving Loans | 3,153,987 | 3,351,179 | |
Consumer | Home equity loans and lines of credit | FICO score not applicable | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 818 | 1,908 | |
Year two | 2,568 | 3,121 | |
Year three | 3,008 | 4,133 | |
Year four | 3,758 | 4,935 | |
Year five | 4,839 | 4,879 | |
Prior | 62,547 | 68,603 | |
Total | 77,538 | 87,579 | |
Revolving Loans | 46,526 | 50,671 | |
Consumer | Home equity loans and lines of credit | FICO score less than 600 | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 0 | 146 | |
Year two | 521 | 782 | |
Year three | 2,143 | 3,795 | |
Year four | 4,243 | 10,135 | |
Year five | 10,734 | 12,063 | |
Prior | 123,416 | 111,661 | |
Total | 141,057 | 138,582 | |
Revolving Loans | 122,899 | 121,597 | |
Consumer | Home equity loans and lines of credit | FICO score of 600 to 679 | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 1,441 | 3,330 | |
Year two | 6,989 | 8,417 | |
Year three | 11,988 | 22,910 | |
Year four | 23,025 | 35,437 | |
Year five | 35,146 | 32,485 | |
Prior | 269,626 | 257,159 | |
Total | 348,215 | 359,738 | |
Revolving Loans | 326,895 | 338,378 | |
Consumer | Home equity loans and lines of credit | FICO score of 680 to 759 | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 18,192 | 64,036 | |
Year two | 69,526 | 80,209 | |
Year three | 76,658 | 103,691 | |
Year four | 92,875 | 129,182 | |
Year five | 122,033 | 132,671 | |
Prior | 665,230 | 626,942 | |
Total | 1,044,514 | 1,136,731 | |
Revolving Loans | 1,026,444 | 1,111,686 | |
Consumer | Home equity loans and lines of credit | FICO score equal to or greater than 760 | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 30,520 | 103,583 | |
Year two | 118,137 | 150,253 | |
Year three | 137,825 | 177,782 | |
Year four | 165,353 | 210,402 | |
Year five | 199,861 | 183,439 | |
Prior | 1,011,332 | 939,145 | |
Total | 1,663,028 | 1,764,604 | |
Revolving Loans | 1,631,223 | 1,728,847 | |
Consumer | Home equity loans and lines of credit | No LTV available | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 1,570 | 1,850 | |
Year two | 2,949 | 3,003 | |
Year three | 3,363 | 3,923 | |
Year four | 3,984 | 4,911 | |
Year five | 5,120 | 4,808 | |
Prior | 64,158 | 69,090 | |
Total | 81,144 | 87,585 | |
Revolving Loans | 50,135 | 50,651 | |
Consumer | Home equity loans and lines of credit | LTV less than or equal to 70% | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 31,542 | 127,313 | |
Year two | 150,973 | 231,024 | |
Year three | 224,025 | 297,239 | |
Year four | 281,229 | 378,399 | |
Year five | 367,411 | 359,912 | |
Prior | 2,009,093 | 1,844,786 | |
Total | 3,064,273 | 3,238,673 | |
Revolving Loans | 2,978,683 | 3,146,199 | |
Consumer | Home equity loans and lines of credit | LTV of 70.01% - 110% | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 16,356 | 40,483 | |
Year two | 42,396 | 8,133 | |
Year three | 4,187 | 11,149 | |
Year four | 4,041 | 6,781 | |
Year five | 82 | 817 | |
Prior | 54,074 | 80,152 | |
Total | 121,136 | 147,515 | |
Revolving Loans | 117,394 | 140,959 | |
Consumer | Home equity loans and lines of credit | LTV greater than 110% | |||
Loans Receivable [Line Items] | |||
Current fiscal year | 1,503 | 3,357 | |
Year two | 1,423 | 622 | |
Year three | 47 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 0 | |
Prior | 4,826 | 9,482 | |
Total | 7,799 | 13,461 | |
Revolving Loans | $ 7,775 | $ 13,370 | |
[1]LHFI includes $26.2 million and $33.5 million of loans recorded at fair value at June 30, 2022 and December 31, 2021, respectively.[2]The Company has interests in certain Trusts that are considered VIEs for accounting purposes. At June 30, 2022 and December 31, 2021, LHFI included $23.6 billion and $20.6 billion, LHFS included zero and zero , Operating leases assets, net included $12.2 billion and $14.7 billion, restricted cash included $1.1 billion and $1.6 billion, Other assets included $687.5 million and $629.4 million, Borrowings and other debt obligations included $30.2 billion and $29.2 billion, and Other liabilities included $121.9 million and $81.1 million of assets or liabilities that were included within VIEs, respectively. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Troubled Debt Restructuring Activity (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) contract | Jun. 30, 2021 USD ($) contract | Jun. 30, 2022 USD ($) contract | Jun. 30, 2021 USD ($) contract | Dec. 31, 2021 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Troubled debt restructurings | $ 3,535,179 | $ 3,535,179 | $ 4,249,417 | ||
Number of Contracts | contract | 8,936 | 12,489 | 18,043 | 58,802 | |
Pre-TDR Recorded Investment | $ 169,237 | $ 445,389 | $ 344,840 | $ 1,461,614 | |
Post-TDR Recorded Investment | $ 169,262 | $ 446,064 | $ 344,748 | $ 1,467,917 | |
TDRs which Subsequently Defaulted | |||||
Number of Contracts | contract | 1,112 | 4,192 | 3,035 | 9,880 | |
Recorded Investment | $ 22,708 | $ 85,569 | $ 86,868 | $ 198,151 | |
Commercial | CRE | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | contract | 8 | 45 | 11 | ||
Pre-TDR Recorded Investment | $ 36,053 | $ 7,465 | $ 44,005 | ||
Post-TDR Recorded Investment | $ 36,053 | $ 7,465 | $ 44,005 | ||
Commercial | C&I | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | contract | 30 | 59 | 234 | 370 | |
Pre-TDR Recorded Investment | $ 1,404 | $ 28,077 | $ 7,108 | $ 43,589 | |
Post-TDR Recorded Investment | $ 1,404 | $ 28,079 | $ 7,110 | $ 43,647 | |
TDRs which Subsequently Defaulted | |||||
Number of Contracts | contract | 0 | 24 | 0 | 54 | |
Recorded Investment | $ 0 | $ 901 | $ 0 | $ 2,073 | |
Commercial | Multifamily | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | contract | 9 | 2 | 17 | 2 | |
Pre-TDR Recorded Investment | $ 7,168 | $ 29,370 | $ 7,168 | $ 29,370 | |
Post-TDR Recorded Investment | $ 7,168 | $ 29,370 | $ 7,168 | $ 29,370 | |
Commercial | Other commercial(3) | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | contract | 2 | 16 | 12 | 180 | |
Pre-TDR Recorded Investment | $ 9 | $ 1,018 | $ 228 | $ 14,653 | |
Post-TDR Recorded Investment | $ 9 | $ 1,018 | $ 228 | $ 14,653 | |
TDRs which Subsequently Defaulted | |||||
Number of Contracts | contract | 1 | 0 | 1 | 1 | |
Recorded Investment | $ 11 | $ 0 | $ 11 | $ 17 | |
Consumer | Residential mortgages | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | contract | 3 | 250 | 19 | 343 | |
Pre-TDR Recorded Investment | $ 488 | $ 74,617 | $ 4,970 | $ 94,726 | |
Post-TDR Recorded Investment | $ 493 | $ 74,500 | $ 4,970 | $ 94,490 | |
TDRs which Subsequently Defaulted | |||||
Number of Contracts | contract | 6 | 10 | 80 | 10 | |
Recorded Investment | $ 2,088 | $ 1,484 | $ 28,649 | $ 1,484 | |
Consumer | Home equity loans and lines of credit | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | contract | 24 | 323 | 64 | 366 | |
Pre-TDR Recorded Investment | $ 3,589 | $ 49,310 | $ 8,456 | $ 53,852 | |
Post-TDR Recorded Investment | $ 3,847 | $ 49,555 | $ 8,760 | $ 54,303 | |
TDRs which Subsequently Defaulted | |||||
Number of Contracts | contract | 6 | 3 | 35 | 4 | |
Recorded Investment | $ 546 | $ 152 | $ 4,947 | $ 765 | |
Consumer | RICs and auto loans | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | contract | 8,868 | 11,772 | 17,650 | 57,437 | |
Pre-TDR Recorded Investment | $ 156,579 | $ 226,011 | $ 308,172 | $ 1,179,830 | |
Post-TDR Recorded Investment | $ 156,341 | $ 226,574 | $ 307,774 | $ 1,185,882 | |
TDRs which Subsequently Defaulted | |||||
Number of Contracts | contract | 1,094 | 4,149 | 2,903 | 9,805 | |
Recorded Investment | $ 19,959 | $ 82,949 | $ 53,008 | $ 193,729 | |
Consumer | Personal unsecured loans | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | contract | 52 | 1 | 77 | ||
Pre-TDR Recorded Investment | $ 751 | $ 23 | $ 999 | ||
Post-TDR Recorded Investment | $ 743 | $ 23 | $ 987 | ||
TDRs which Subsequently Defaulted | |||||
Number of Contracts | contract | 5 | 6 | 14 | 6 | |
Recorded Investment | $ 104 | $ 83 | $ 196 | $ 83 | |
Consumer | Other consumer | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | contract | 7 | 1 | 16 | ||
Pre-TDR Recorded Investment | $ 182 | $ 1,250 | $ 590 | ||
Post-TDR Recorded Investment | $ 172 | $ 1,250 | $ 580 | ||
TDRs which Subsequently Defaulted | |||||
Number of Contracts | contract | 0 | 0 | 2 | 0 | |
Recorded Investment | $ 0 | $ 0 | $ 57 | $ 0 | |
Performing | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Troubled debt restructurings | 3,017,047 | 3,017,047 | 3,641,593 | ||
Non-performing | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Troubled debt restructurings | $ 518,132 | $ 518,132 | $ 607,824 |
OPERATING LEASE ASSETS, NET - C
OPERATING LEASE ASSETS, NET - Components of Leased Vehicles, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Operating Leased Assets [Line Items] | |||
Less: accumulated depreciation | $ (3,600,000) | $ (3,800,000) | |
Operating lease assets, net | [1],[2] | 14,991,051 | 15,406,402 |
Leased vehicles | |||
Operating Leased Assets [Line Items] | |||
Operating leases | 18,902,822 | 19,662,593 | |
Less: accumulated depreciation | (3,577,183) | (3,789,882) | |
Depreciated net capitalized cost | 15,325,639 | 15,872,711 | |
Manufacturer subvention payments, net of accretion | (502,184) | (604,104) | |
Origination fees and other costs | 166,075 | 136,013 | |
Operating lease assets, net | 14,989,530 | 15,404,620 | |
Commercial equipment vehicles and aircraft | |||
Operating Leased Assets [Line Items] | |||
Operating leases | 2,515 | 2,677 | |
Less: accumulated depreciation | (994) | (895) | |
Operating lease assets, net | $ 1,521 | $ 1,782 | |
[1]Net of accumulated depreciation of $3.6 billion and $3.8 billion at June 30, 2022 and December 31, 2021, respectively.[2]The Company has interests in certain Trusts that are considered VIEs for accounting purposes. At June 30, 2022 and December 31, 2021, LHFI included $23.6 billion and $20.6 billion, LHFS included zero and zero , Operating leases assets, net included $12.2 billion and $14.7 billion, restricted cash included $1.1 billion and $1.6 billion, Other assets included $687.5 million and $629.4 million, Borrowings and other debt obligations included $30.2 billion and $29.2 billion, and Other liabilities included $121.9 million and $81.1 million of assets or liabilities that were included within VIEs, respectively. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
OPERATING LEASE ASSETS, NET - F
OPERATING LEASE ASSETS, NET - Future Minimum Rental Receivables (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Leases [Abstract] | |
2022 | $ 1,220,285 |
2023 | 1,971,973 |
2024 | 909,203 |
2025 | 178,392 |
2026 | 8,217 |
Thereafter | 8 |
Total | $ 4,288,078 |
OPERATING LEASE ASSETS, NET - N
OPERATING LEASE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Net gain on sale of operating leases | $ 20,216 | $ 178,544 | $ 46,261 | $ 286,807 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES - Goodwill (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 2,596,161,000 | |
Additions during the period | 171,571,000 | |
Re-allocation of goodwill | $ 0 | 0 |
Goodwill, ending balance | 2,767,732,000 | 2,767,732,000 |
Auto | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 0 | |
Additions during the period | 0 | |
Re-allocation of goodwill | 1,238,676,000 | |
Goodwill, ending balance | 1,238,676,000 | 1,238,676,000 |
CBB | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 297,802,000 | |
Additions during the period | 0 | |
Re-allocation of goodwill | (138,776,000) | |
Goodwill, ending balance | 159,026,000 | 159,026,000 |
C&I | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 52,198,000 | |
Additions during the period | 0 | |
Re-allocation of goodwill | 0 | |
Goodwill, ending balance | 52,198,000 | 52,198,000 |
CRE | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 1,095,071,000 | |
Additions during the period | 0 | |
Re-allocation of goodwill | (79,940,000) | |
Goodwill, ending balance | 1,015,131,000 | 1,015,131,000 |
CIB | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 131,130,000 | |
Additions during the period | 171,571,000 | |
Re-allocation of goodwill | 0 | |
Goodwill, ending balance | 302,701,000 | 302,701,000 |
SC | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 1,019,960,000 | |
Re-allocation of goodwill | (1,019,960,000) | |
Goodwill, ending balance | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Oct. 01, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||||||
Re-allocation of goodwill | $ 0 | $ 0 | ||||
Additions during the period | 171,571,000 | |||||
Impairment of goodwill | $ 0 | |||||
Intangibles not subject to amortization | 0 | 0 | $ 0 | |||
Amortization of intangibles | 10,495,000 | $ 10,746,000 | 23,034,000 | $ 22,033,000 | ||
Pierpoint Capital Holdings LLC | ||||||
Goodwill [Line Items] | ||||||
Amortization of intangibles | 39,000,000 | |||||
CIB | ||||||
Goodwill [Line Items] | ||||||
Re-allocation of goodwill | 0 | |||||
Additions during the period | $ 171,571,000 | |||||
CIB | Pierpoint Capital Holdings LLC | ||||||
Goodwill [Line Items] | ||||||
Additions during the period | $ 171,600,000 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES - Finite-lived Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 354,887 | $ 339,079 |
Accumulated Amortization | (377,093) | (353,333) |
Dealer networks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | 272,208 | 283,958 |
Accumulated Amortization | (197,792) | (186,042) |
Stellantis relationship | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | 13,815 | 20,000 |
Accumulated Amortization | (124,935) | (118,750) |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | 68,864 | 35,121 |
Accumulated Amortization | $ (54,366) | $ (48,541) |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLES - Future Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Calendar Year Amount | ||||
2022 | $ 45,711 | $ 45,711 | ||
2022 | 10,495 | $ 10,746 | 23,034 | $ 22,033 |
2022 | 22,677 | 22,677 | ||
2023 | 43,204 | 43,204 | ||
2024 | 39,085 | 39,085 | ||
2025 | 34,685 | 34,685 | ||
2026 | 32,512 | 32,512 | ||
Thereafter | $ 182,724 | $ 182,724 |
OTHER ASSETS - Components (Deta
OTHER ASSETS - Components (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Operating lease ROU assets | $ 522,133 | $ 531,408 | |
Deferred tax assets | 146,939 | 87,931 | |
Accrued interest receivable | 561,264 | 482,469 | |
Derivative assets at fair value | 956,984 | 661,080 | |
Other repossessed assets | 263,470 | 248,051 | |
Equity method investments | 265,482 | 260,010 | |
MSRs | 104,411 | 79,107 | |
OREO | 4,462 | 3,724 | |
Income tax receivables | 399,239 | 173,060 | |
Prepaid expense | 566,936 | 283,909 | |
Miscellaneous assets and receivables | 807,949 | 524,674 | |
Total Other assets | [1],[2] | $ 4,599,269 | $ 3,335,423 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Total Other assets | Total Other assets | |
[1]Includes MSRs of $104.4 million and $79.1 million at June 30, 2022 and December 31, 2021, respectively, for which the Company has elected the FVO. See Note 13 to these Condensed Consolidated Financial Statements for additional information.[2]The Company has interests in certain Trusts that are considered VIEs for accounting purposes. At June 30, 2022 and December 31, 2021, LHFI included $23.6 billion and $20.6 billion, LHFS included zero and zero , Operating leases assets, net included $12.2 billion and $14.7 billion, restricted cash included $1.1 billion and $1.6 billion, Other assets included $687.5 million and $629.4 million, Borrowings and other debt obligations included $30.2 billion and $29.2 billion, and Other liabilities included $121.9 million and $81.1 million of assets or liabilities that were included within VIEs, respectively. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
OTHER ASSETS - Narrative (Detai
OTHER ASSETS - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) option | Jun. 30, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Number of options to renew | option | 1 | |||
Operating lease expense | $ 31 | $ 37.1 | $ 62.3 | $ 76.8 |
Sublease income | $ 1 | $ 1.2 | $ 1.9 | $ 2.3 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Renewal term (in years) | 1 year | 1 year | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Renewal term (in years) | 5 years | 5 years |
OTHER ASSETS - Maturity of Leas
OTHER ASSETS - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
2022 | $ 70,269 | |
2023 | 128,803 | |
2024 | 115,043 | |
2025 | 89,947 | |
2026 | 62,726 | |
Thereafter | 164,190 | |
Total lease liabilities | 630,978 | |
Less: Interest | (53,710) | |
Present value of lease liabilities | $ 577,268 | $ 593,137 |
OTHER ASSETS - Supplemental Bal
OTHER ASSETS - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Operating lease ROU assets | $ 522,133 | $ 531,408 |
Other liabilities | $ 577,268 | $ 593,137 |
Weighted-average remaining lease term (years) | 6 years 4 months 24 days | 6 years 4 months 24 days |
Weighted-average discount rate | 2.90% | 2.80% |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Various other liabilities | Various other liabilities |
OTHER ASSETS - Other Informatio
OTHER ASSETS - Other Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Operating cash flows from operating leases | $ (73,160) | $ (70,260) |
Leased assets obtained in exchange for new operating lease liabilities | $ 41,147 | $ 32,527 |
VIEs - Narrative (Details)
VIEs - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) class | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Variable Interest Entity [Line Items] | |||||
Number of classes of notes payable backed by collateral | class | 1 | ||||
VIEs, Primary Beneficiary | Trusts | |||||
Variable Interest Entity [Line Items] | |||||
Gross retail installment contracts transferred to consolidated Trusts | $ 27,700,000,000 | $ 27,700,000,000 | $ 24,300,000,000 | ||
VIE, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Sales of receivables securitization | 0 | $ 0 | 0 | $ 1,891,278,000 | |
Gain (loss) on retail installment contracts | 0 | $ 0 | 0 | $ 7,200,000 | |
VIE, Not Primary Beneficiary | Debt | |||||
Variable Interest Entity [Line Items] | |||||
VIE, maximum exposure to loss | 68,000,000 | 68,000,000 | 90,000,000 | ||
VIE, Not Primary Beneficiary | Equity Investments | |||||
Variable Interest Entity [Line Items] | |||||
VIE, maximum exposure to loss | $ 3,000,000 | $ 3,000,000 | $ 3,000,000 |
VIEs - Assets and Liabilities o
VIEs - Assets and Liabilities of VIEs (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |||
Assets | ||||||
Restricted cash | $ 5,317,599 | [1] | $ 5,711,705 | [1] | $ 6,000,000 | |
LHFI | [1],[2] | 92,762,061 | 92,075,812 | |||
Operating lease assets, net | [1],[3] | 14,991,051 | 15,406,402 | |||
Various other assets | [1],[4] | 4,599,269 | 3,335,423 | |||
TOTAL ASSETS | 165,323,832 | 159,821,231 | $ 155,185,643 | |||
Liabilities | ||||||
Various other liabilities | [1] | 2,052,094 | 1,119,897 | |||
TOTAL LIABILITIES | 144,442,109 | 135,353,881 | ||||
VIEs, Primary Beneficiary | ||||||
Assets | ||||||
Restricted cash | 1,114,001 | 1,637,311 | ||||
LHFI | 23,550,723 | 20,551,716 | ||||
Operating lease assets, net | 12,158,701 | 14,668,336 | ||||
Various other assets | 687,474 | 629,364 | ||||
TOTAL ASSETS | 37,510,899 | 37,486,727 | ||||
Liabilities | ||||||
Notes payable | 30,152,326 | 29,199,966 | ||||
Various other liabilities | 121,928 | 81,098 | ||||
TOTAL LIABILITIES | $ 30,274,254 | $ 29,281,064 | ||||
[1]The Company has interests in certain Trusts that are considered VIEs for accounting purposes. At June 30, 2022 and December 31, 2021, LHFI included $23.6 billion and $20.6 billion, LHFS included zero and zero , Operating leases assets, net included $12.2 billion and $14.7 billion, restricted cash included $1.1 billion and $1.6 billion, Other assets included $687.5 million and $629.4 million, Borrowings and other debt obligations included $30.2 billion and $29.2 billion, and Other liabilities included $121.9 million and $81.1 million of assets or liabilities that were included within VIEs, respectively. See Note 7 to these Condensed Consolidated Financial Statements for additional information.[2]LHFI includes $26.2 million and $33.5 million of loans recorded at fair value at June 30, 2022 and December 31, 2021, respectively.[3]Net of accumulated depreciation of $3.6 billion and $3.8 billion at June 30, 2022 and December 31, 2021, respectively.[4]Includes MSRs of $104.4 million and $79.1 million at June 30, 2022 and December 31, 2021, respectively, for which the Company has elected the FVO. See Note 13 to these Condensed Consolidated Financial Statements for additional information. |
VIEs - Cash Flow Summary (Detai
VIEs - Cash Flow Summary (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
VIEs, Primary Beneficiary | Trusts | ||||
Variable Interest Entity [Line Items] | ||||
Assets securitized | $ 3,497,142,000 | $ 7,238,608,000 | $ 8,657,428,000 | $ 11,361,659,000 |
Net proceeds from new securitizations | 2,091,900,000 | 5,990,485,000 | 6,141,620,000 | 9,576,609,000 |
Net proceeds from sale of retained bonds | 645,370,000 | 132,186,000 | 1,029,746,000 | 195,967,000 |
Cash received for servicing fees | 223,836,000 | 230,408,000 | 461,429,000 | 458,595,000 |
Net distributions from Trusts | 1,092,535,000 | 1,903,257,000 | 2,206,898,000 | 3,043,634,000 |
Total cash received from Trusts | 4,053,641,000 | 8,256,336,000 | 9,839,693,000 | 13,274,805,000 |
VIE, Not Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Receivables securitized | 0 | 0 | 0 | 1,891,278,000 |
Net proceeds from new securitizations | 0 | 0 | 0 | 1,779,532,000 |
Cash received for servicing fees | 5,098,000 | 9,294,000 | 11,038,000 | 16,021,000 |
Total cash received from Trusts | $ 5,098,000 | $ 9,294,000 | $ 11,038,000 | $ 1,795,553,000 |
VIEs - Off-balance Sheet Portfo
VIEs - Off-balance Sheet Portfolio (Details) - VIE, Not Primary Beneficiary - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Total serviced for other portfolio | $ 1,741,088 | $ 2,371,976 |
Third-party SCART serviced securitizations | ||
Variable Interest Entity [Line Items] | ||
Total serviced for other portfolio | 1,398,064 | 1,817,936 |
SC | ||
Variable Interest Entity [Line Items] | ||
Total serviced for other portfolio | $ 343,024 | $ 554,040 |
DEPOSITS AND OTHER CUSTOMER A_3
DEPOSITS AND OTHER CUSTOMER ACCOUNTS - Summary of Deposits and Other Customer Accounts (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Balance | ||
Interest-bearing demand deposits | $ 13,818,513 | $ 16,335,499 |
Non-interest-bearing demand deposits | 20,419,029 | 22,443,957 |
Savings | 5,634,518 | 5,564,934 |
Customer repurchase accounts | 239,122 | 338,698 |
Money market | 32,319,577 | 34,390,613 |
CDs | 2,043,352 | 2,524,471 |
Total deposits | $ 74,474,111 | $ 81,598,172 |
Percent of total deposits | ||
Interest-bearing demand deposits (as a percent) | 18.60% | 20% |
Non-interest-bearing demand deposits (as a percent) | 27.40% | 27.50% |
Savings (as a percent) | 7.60% | 6.80% |
Customer repurchase accounts (as a percent) | 0.30% | 0.40% |
Money market (as a percent) | 43.40% | 42.10% |
CDs (as a percent) | 2.70% | 3.20% |
Total deposits (as a percent) | 100% | 100% |
Foreign deposits | $ 6,700,000 | $ 6,400,000 |
DEPOSITS AND OTHER CUSTOMER A_4
DEPOSITS AND OTHER CUSTOMER ACCOUNTS - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral, fair value | $ 5,100 | $ 5,300 |
Demand deposit overdrafts that have been reclassified as loan balances | 227 | 133.1 |
CD in denominations greater than $250,000 | 428.9 | 635 |
Public fund deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral, fair value | $ 2,600 | $ 3,200 |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) - USD ($) | Jul. 22, 2022 | Jul. 15, 2022 | Jun. 30, 2022 | Jun. 09, 2022 | Apr. 14, 2022 | Feb. 28, 2022 | Jan. 06, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||||||
Total borrowings and other debt obligations | [1] | $ 43,160,191,000 | $ 41,133,187,000 | ||||||
Fixed-to-Floating Rate Senior Notes due 2028 | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issued | $ 1,000,000,000 | ||||||||
Stated interest rate | 2.49% | ||||||||
3.70% senior notes due March 2022 | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 3.70% | 3.70% | |||||||
Debt repurchased | $ 706,800,000 | ||||||||
3.500% Senior Notes due 2023 | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 3.50% | ||||||||
Debt repurchased | $ 447,100,000 | ||||||||
Floating Rate Senior Notes Due April 2026 | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issued | $ 433,600,000 | ||||||||
Fixed To Floating Rate Senior Notes Due 2025 | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issued | $ 500,000,000 | ||||||||
Stated interest rate | 4.26% | ||||||||
Senior notes due, January 2023 | Senior notes | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt repurchased | $ 721,000,000 | ||||||||
Senior notes, due July 2023 | Senior notes | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt repurchased | $ 439,100,000 | ||||||||
[1]The Company has interests in certain Trusts that are considered VIEs for accounting purposes. At June 30, 2022 and December 31, 2021, LHFI included $23.6 billion and $20.6 billion, LHFS included zero and zero , Operating leases assets, net included $12.2 billion and $14.7 billion, restricted cash included $1.1 billion and $1.6 billion, Other assets included $687.5 million and $629.4 million, Borrowings and other debt obligations included $30.2 billion and $29.2 billion, and Other liabilities included $121.9 million and $81.1 million of assets or liabilities that were included within VIEs, respectively. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
BORROWINGS - Parent Company and
BORROWINGS - Parent Company and other Subsidiary Borrowings and Debt Obligations (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2022 | Feb. 28, 2022 | Dec. 31, 2021 | ||
Debt Instrument [Line Items] | ||||
Total borrowings and other debt obligations | [1] | $ 43,160,191 | $ 41,133,187 | |
Subsidiaries | Short-term borrowing due within one year, maturing July 2022 | ||||
Debt Instrument [Line Items] | ||||
Short-term borrowings, balance | $ 2,187 | $ 0 | ||
Effective Rate | 0.05% | 0% | ||
Subsidiaries | Short-term borrowing due within one year, maturing January 2022 | ||||
Debt Instrument [Line Items] | ||||
Short-term borrowings, balance | $ 0 | $ 57,365 | ||
Effective Rate | 0% | 0.05% | ||
Parent Company and Other Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Total borrowings and other debt obligations | $ 10,403,603 | $ 9,679,609 | ||
Effective Rate | 3.39% | 3.44% | ||
Senior notes | 3.70% senior notes due March 2022 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.70% | 3.70% | ||
Senior notes, balance | $ 0 | $ 706,819 | ||
Effective Rate | 0% | 3.67% | ||
Senior notes | Senior notes due, January 2023 | ||||
Debt Instrument [Line Items] | ||||
Senior notes, balance | $ 720,951 | $ 720,947 | ||
Effective Rate | 1.68% | 1.28% | ||
Senior notes | Senior notes due, January 2023 | 3-month LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread (as a percent) | 1.10% | |||
Senior notes | 3.40% senior notes due January 2023 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.40% | |||
Senior notes, balance | $ 999,266 | $ 998,599 | ||
Effective Rate | 3.54% | 3.54% | ||
Senior notes | 3.50% senior notes due April 2023 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.50% | |||
Senior notes, balance | $ 0 | $ 447,107 | ||
Effective Rate | 3.52% | 3.52% | ||
Senior notes | Senior notes, due July 2023 | ||||
Debt Instrument [Line Items] | ||||
Senior notes, balance | $ 439,070 | $ 439,085 | ||
Effective Rate | 1.69% | 1.29% | ||
Senior notes | Senior notes, due July 2023 | 3-month LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread (as a percent) | 1.10% | |||
Senior notes | 2.88% senior notes due January 2024 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.88% | |||
Senior notes, balance | $ 750,000 | $ 750,000 | ||
Effective Rate | 2.88% | 2.88% | ||
Senior notes | 3.50% senior notes due June 2024 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.50% | |||
Senior notes, balance | $ 998,084 | $ 997,610 | ||
Effective Rate | 3.60% | 3.60% | ||
Senior notes | 3.45% senior notes, due June 2025 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.45% | |||
Senior notes, balance | $ 996,553 | $ 995,983 | ||
Effective Rate | 3.58% | 3.58% | ||
Senior notes | 4.26% Senior notes due June 2025 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 0.0426% | |||
Senior notes, balance | $ 498,436 | $ 0 | ||
Effective Rate | 4.36% | 0% | ||
Senior notes | 4.50% senior notes due July 2025 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.50% | |||
Senior notes, balance | $ 1,097,973 | $ 1,097,667 | ||
Effective Rate | 4.56% | 4.56% | ||
Senior notes | Senior notes due April 2026 | ||||
Debt Instrument [Line Items] | ||||
Senior notes, balance | $ 433,373 | $ 0 | ||
Effective Rate | 2.22% | 0% | ||
Senior notes | Senior notes due April 2026 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread (as a percent) | 1.35% | |||
Senior notes | Senior notes due November 2026 | ||||
Debt Instrument [Line Items] | ||||
Senior notes, balance | $ 921,743 | $ 918,851 | ||
Effective Rate | 3.97% | 3.97% | ||
Senior notes | 4.40% senior notes, due July 2027 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.40% | |||
Senior notes, balance | $ 1,049,583 | $ 1,049,565 | ||
Effective Rate | 4.40% | 4.40% | ||
Senior notes | 2.49% senior notes due January 2028 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.49% | |||
Senior notes, balance | $ 996,384 | $ 0 | ||
Effective Rate | 2.56% | 0% | ||
Subordinated debt | 2.88% subordinate note, due November 2031 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.88% | |||
Subordinated debt, balance | $ 500,000 | $ 500,000 | ||
Effective Rate | 2.88% | 2.88% | ||
Subordinated debt | Subsidiaries | 2.00% subordinated debt maturing through 2040 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2% | |||
Subordinated debt, balance | $ 0 | $ 11 | ||
Effective Rate | 0% | 2% | ||
[1]The Company has interests in certain Trusts that are considered VIEs for accounting purposes. At June 30, 2022 and December 31, 2021, LHFI included $23.6 billion and $20.6 billion, LHFS included zero and zero , Operating leases assets, net included $12.2 billion and $14.7 billion, restricted cash included $1.1 billion and $1.6 billion, Other assets included $687.5 million and $629.4 million, Borrowings and other debt obligations included $30.2 billion and $29.2 billion, and Other liabilities included $121.9 million and $81.1 million of assets or liabilities that were included within VIEs, respectively. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
BORROWINGS - Santander Bank (De
BORROWINGS - Santander Bank (Details) - SBNA - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Total SBNA borrowings and other debt obligations | $ 3,469,015,000 | $ 543,749,000 |
Effective Rate | 2.52% | 1.79% |
FHLB advances, maturing through August 2022 | ||
Debt Instrument [Line Items] | ||
FHLB advances, Balance | $ 2,750,000,000 | $ 250,000,000 |
Effective Rate | 1.83% | 0.93% |
Credit linked notes due December 2031 | ||
Debt Instrument [Line Items] | ||
Credit linked notes, due balance | $ 224,126,000 | $ 293,749,000 |
Effective Rate | 2.67% | 2.53% |
Debt issued | $ 521,000,000 | $ 298,000,000 |
Reference pool | 2,000,000,000 | |
Contractual residual amount | 36,000,000 | |
Redemption option, UPB threshold | 10% | |
Credit linked notes due May 3032 | ||
Debt Instrument [Line Items] | ||
Credit linked notes, due balance | $ 494,889,000 | $ 0 |
Effective Rate | 6.30% | 0% |
Reference pool | $ 3,500,000,000 | |
Contractual residual amount | 63,000,000 | |
FHLB advances | ||
Debt Instrument [Line Items] | ||
Letters of credit | $ 12,000,000 |
BORROWINGS - SC Credit Faciliti
BORROWINGS - SC Credit Facilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Balance | $ 86,200 | $ 104,100 |
SC | ||
Debt Instrument [Line Items] | ||
Balance | 58,937,369 | 63,295,838 |
Assets Pledged | 33,451,772 | 36,420,623 |
Restricted Cash Pledged | 1,113,837 | 1,637,246 |
SC | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Balance | 5,291,800 | 4,000,000 |
Committed Amount | $ 12,450,000 | $ 14,950,000 |
Effective Rate | 1.57% | 1.52% |
Assets Pledged | $ 5,536,741 | $ 137,052 |
Restricted Cash Pledged | 166 | 65 |
SC | Revolving Credit Facilities With Third Parties | ||
Debt Instrument [Line Items] | ||
Balance | 3,291,800 | 0 |
Committed Amount | $ 10,450,000 | $ 10,950,000 |
Effective Rate | 1.91% | 0% |
Assets Pledged | $ 5,536,741 | $ 137,052 |
Restricted Cash Pledged | 166 | 65 |
SC | Revolving Credit Facilities With Third Parties | Warehouse line due June 2023 | ||
Debt Instrument [Line Items] | ||
Balance | 335,000 | 0 |
Committed Amount | $ 500,000 | $ 500,000 |
Effective Rate | 1.75% | 0% |
Assets Pledged | $ 488,046 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
SC | Revolving Credit Facilities With Third Parties | Warehouse line due July 2023 | ||
Debt Instrument [Line Items] | ||
Balance | 365,000 | 0 |
Committed Amount | $ 600,000 | $ 600,000 |
Effective Rate | 2.09% | 0% |
Assets Pledged | $ 477,220 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
SC | Revolving Credit Facilities With Third Parties | Warehouse line due October 2023 | ||
Debt Instrument [Line Items] | ||
Balance | 0 | 0 |
Committed Amount | $ 500,000 | $ 500,000 |
Effective Rate | 0% | 0% |
Assets Pledged | $ 50,581 | $ 12,428 |
Restricted Cash Pledged | 0 | 0 |
SC | Revolving Credit Facilities With Third Parties | Warehouse line due October 2023 | ||
Debt Instrument [Line Items] | ||
Balance | 841,000 | 0 |
Committed Amount | $ 2,100,000 | $ 2,100,000 |
Effective Rate | 2.64% | 0% |
Assets Pledged | $ 1,247,501 | $ 0 |
Restricted Cash Pledged | 64 | 64 |
SC | Revolving Credit Facilities With Third Parties | Warehouse line due November 2023 | ||
Debt Instrument [Line Items] | ||
Balance | 0 | 0 |
Committed Amount | $ 1,000,000 | $ 1,000,000 |
Effective Rate | 2.57% | 0% |
Assets Pledged | $ 426,274 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
SC | Revolving Credit Facilities With Third Parties | Warehouse line due November 2023 | ||
Debt Instrument [Line Items] | ||
Balance | 0 | 0 |
Committed Amount | $ 3,500,000 | $ 3,500,000 |
Effective Rate | 0% | 0% |
Assets Pledged | $ 55,827 | $ 124,624 |
Restricted Cash Pledged | 101 | 0 |
SC | Revolving Credit Facilities With Third Parties | Warehouse line due January 2024 | ||
Debt Instrument [Line Items] | ||
Balance | 980,800 | |
Committed Amount | $ 1,000,000 | |
Effective Rate | 1.13% | |
Assets Pledged | $ 1,283,069 | |
Restricted Cash Pledged | 0 | |
SC | Revolving Credit Facilities With Third Parties | Warehouse line due April 2024 | ||
Debt Instrument [Line Items] | ||
Balance | 770,000 | |
Committed Amount | $ 1,250,000 | |
Effective Rate | 2.09% | |
Assets Pledged | $ 1,508,223 | |
Restricted Cash Pledged | 1 | |
SC | Revolving Credit Facilities With Third Parties | Warehouse line due November 2022 | ||
Debt Instrument [Line Items] | ||
Balance | 0 | |
Committed Amount | $ 500,000 | |
Effective Rate | 0% | |
Assets Pledged | $ 0 | |
Restricted Cash Pledged | 0 | |
SC | Revolving Credit Facilities With Third Parties | Warehouse line due January 2023 | ||
Debt Instrument [Line Items] | ||
Balance | 0 | |
Committed Amount | $ 1,000,000 | |
Effective Rate | 0% | |
Assets Pledged | $ 0 | |
Restricted Cash Pledged | 0 | |
SC | Revolving Credit Facilities With Third Parties | Warehouse line due March 2023 | ||
Debt Instrument [Line Items] | ||
Balance | 0 | |
Committed Amount | $ 1,250,000 | |
Effective Rate | 0% | |
Assets Pledged | $ 0 | |
Restricted Cash Pledged | 1 | |
SC | Revolving Credit Facility With Related Parties | ||
Debt Instrument [Line Items] | ||
Balance | 2,000,000 | 4,000,000 |
Committed Amount | $ 2,000,000 | $ 4,000,000 |
Effective Rate | 1.01% | 1.52% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
SC | Revolving Credit Facility With Related Parties | Promissory note with Santander due June 2022 | ||
Debt Instrument [Line Items] | ||
Balance | 2,000,000 | |
Committed Amount | $ 2,000,000 | |
Effective Rate | 2.03% | |
Assets Pledged | $ 0 | |
Restricted Cash Pledged | 0 | |
SC | Revolving Credit Facility With Related Parties | Promissory note with Santander due September 2022 | ||
Debt Instrument [Line Items] | ||
Balance | 2,000,000 | 2,000,000 |
Committed Amount | $ 2,000,000 | $ 2,000,000 |
Effective Rate | 1.01% | 1.01% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | $ 0 | $ 0 |
BORROWINGS - Secured Structured
BORROWINGS - Secured Structured Financings (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Initial Note Amounts Issued | $ 86,200 | $ 104,100 |
SC | ||
Debt Instrument [Line Items] | ||
Balance | 23,995,773 | 26,909,829 |
Initial Note Amounts Issued | 58,937,369 | 63,295,838 |
Collateral | 33,451,772 | 36,420,623 |
Restricted Cash | $ 1,113,837 | $ 1,637,246 |
SC | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 0.48% | 0.48% |
SC | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 3.90% | 3.90% |
SC | SC public securitizations, maturing on various dates | ||
Debt Instrument [Line Items] | ||
Balance | $ 22,034,733 | $ 23,531,904 |
Initial Note Amounts Issued | 51,970,975 | 54,534,275 |
Collateral | 30,240,572 | 30,692,331 |
Restricted Cash | $ 1,096,055 | $ 1,621,026 |
SC | SC public securitizations, maturing on various dates | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 0.48% | 0.48% |
SC | SC public securitizations, maturing on various dates | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 3.42% | 3.42% |
SC | SC privately issued amortizing notes, maturing on various dates | ||
Debt Instrument [Line Items] | ||
Balance | $ 1,961,040 | $ 3,377,925 |
Initial Note Amounts Issued | 6,966,394 | 8,761,563 |
Collateral | 3,211,200 | 5,728,292 |
Restricted Cash | $ 17,782 | $ 16,220 |
SC | SC privately issued amortizing notes, maturing on various dates | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 1.28% | 1.28% |
SC | SC privately issued amortizing notes, maturing on various dates | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 3.90% | 3.90% |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total other comprehensive income/(loss), pretax activity | $ (343,956) | $ 9,744 | $ (1,158,331) | $ (240,910) |
Total other comprehensive income/(loss), tax effect | 90,592 | (3,665) | 303,786 | 63,095 |
TOTAL OCI/LOSS, NET OF TAX | (253,364) | 6,079 | (854,545) | (177,815) |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 21,944,706 | 21,940,666 | 24,467,350 | 21,262,712 |
Net Activity | (253,364) | 6,079 | (854,545) | (177,815) |
Ending balance | 20,881,723 | 23,103,321 | 20,881,723 | 23,103,321 |
Accumulated Other Comprehensive Income / (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (789,291) | (17,599) | (188,110) | 166,295 |
Ending balance | (1,042,655) | (11,520) | (1,042,655) | (11,520) |
Net unrealized gains/(losses) on cash flow hedge derivative financial instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income/(loss), pretax activity | (116,864) | (3,121) | (458,376) | (90,241) |
Other comprehensive income/(loss), tax effect | 31,488 | (468) | 120,936 | 23,842 |
Other comprehensive income/(loss), net activity | (85,376) | (3,589) | (337,440) | (66,399) |
Reclassification adjustment, pretax activity | 4,650 | 142 | 11,780 | 283 |
Reclassification adjustment, tax effect | (967) | (35) | (2,449) | (41) |
Reclassification adjustment, net activity | 3,683 | 107 | 9,331 | 242 |
Total other comprehensive income/(loss), pretax activity | (112,214) | (2,979) | (446,596) | (89,958) |
Total other comprehensive income/(loss), tax effect | 30,521 | (503) | 118,487 | 23,801 |
TOTAL OCI/LOSS, NET OF TAX | (81,693) | (3,482) | (328,109) | (66,157) |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (326,433) | 15,491 | (80,017) | 78,166 |
Net Activity | (81,693) | (3,482) | (328,109) | (66,157) |
Ending balance | (408,126) | 12,009 | (408,126) | 12,009 |
Net unrealized gains/(losses) on investments in debt securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income/(loss), pretax activity | (243,284) | 17,336 | (737,959) | (137,690) |
Other comprehensive income/(loss), tax effect | 63,065 | (4,297) | 190,807 | 35,812 |
Other comprehensive income/(loss), net activity | (180,219) | 13,039 | (547,152) | (101,878) |
Reclassification adjustment, pretax activity | 10,758 | (5,370) | 24,714 | (15,243) |
Reclassification adjustment, tax effect | (2,789) | 1,331 | (5,137) | 3,965 |
Reclassification adjustment, net activity | 7,969 | (4,039) | 19,577 | (11,278) |
Total other comprehensive income/(loss), pretax activity | (232,526) | 11,966 | (713,245) | (152,933) |
Total other comprehensive income/(loss), tax effect | 60,276 | (2,966) | 185,670 | 39,777 |
TOTAL OCI/LOSS, NET OF TAX | (172,250) | 9,000 | (527,575) | (113,156) |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (435,230) | (4,893) | (79,905) | 117,263 |
Net Activity | (172,250) | 9,000 | (527,575) | (113,156) |
Ending balance | (607,480) | 4,107 | (607,480) | 4,107 |
Pension and post-retirement actuarial gain/(loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total other comprehensive income/(loss), pretax activity | 784 | 757 | 1,510 | 1,981 |
Total other comprehensive income/(loss), tax effect | (205) | (196) | (371) | (483) |
TOTAL OCI/LOSS, NET OF TAX | 579 | 561 | 1,139 | 1,498 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (27,628) | (28,197) | (28,188) | (29,134) |
Net Activity | 579 | 561 | 1,139 | 1,498 |
Ending balance | $ (27,049) | $ (27,636) | $ (27,049) | $ (27,636) |
SECURITIES FINANCING ACTIVITI_3
SECURITIES FINANCING ACTIVITIES - Securities Borrowed and Purchased under Agreements to Resell (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Banking and Thrift, Other Disclosure [Abstract] | ||
Securities purchased under agreements to resell | $ 9,734,368 | $ 2,422,042 |
Securities borrowed | 4,013,568 | 2,924,426 |
Net amounts of assets included on the Condensed Consolidated Balance Sheets | $ 13,747,936 | $ 5,346,468 |
SECURITIES FINANCING ACTIVITI_4
SECURITIES FINANCING ACTIVITIES - Securities Loaned or Sold under Agreements to Repurchase (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Banking and Thrift, Other Disclosure [Abstract] | ||
Securities sold under agreements to repurchase | $ 16,004,022 | $ 5,258,875 |
SECURITIES FINANCING ACTIVITI_5
SECURITIES FINANCING ACTIVITIES - Gross and Net Resale Repurchase Agreements, Securities Borrowing and Lending Agreements and the Related Offsetting Amounts (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Securities purchased under agreements to resell | ||
Gross amounts of recognized assets | $ 36,255,247 | $ 2,746,948 |
Gross amounts offset on the Consolidated Balance Sheets | 26,520,879 | 324,906 |
Net amounts of assets included on the Condensed Consolidated Balance Sheets | 9,734,368 | 2,422,042 |
Securities borrowed | ||
Gross amounts of recognized assets | 4,408,512 | 2,924,426 |
Gross amounts offset on the Condensed Consolidated Balance Sheets | 394,944 | 0 |
Net amounts of assets included on the Condensed Consolidated Balance Sheets | 4,013,568 | 2,924,426 |
Offsetting Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed [Abstract] | ||
Gross amounts of recognized assets | 40,663,759 | 5,671,374 |
Gross amounts offset on the Condensed Consolidated Balance Sheets | 26,915,823 | 324,906 |
Net amounts of assets included on the Condensed Consolidated Balance Sheets | 13,747,936 | 5,346,468 |
Securities loaned under agreements to repurchase: | ||
Gross amounts of recognized liabilities | 42,524,901 | 5,583,781 |
Gross amounts offset on the Condensed Consolidated Balance Sheets | 26,520,879 | 324,906 |
Net amounts of liabilities included on the Condensed Consolidated Balance Sheets | $ 16,004,022 | $ 5,258,875 |
SECURITIES FINANCING ACTIVITI_6
SECURITIES FINANCING ACTIVITIES - Gross Amounts of Liabilities Associated with Repurchase Agreements and Securities Lending Agreements by Remaining Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Gross amounts of recognized liabilities | $ 42,524,901 | $ 5,583,781 |
Open and overnight | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Gross amounts of recognized liabilities | 20,151,093 | |
Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Gross amounts of recognized liabilities | 9,783,685 | |
31-90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Gross amounts of recognized liabilities | 3,638,561 | |
Greater than 90 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Gross amounts of recognized liabilities | $ 8,951,562 |
SECURITIES FINANCING ACTIVITI_7
SECURITIES FINANCING ACTIVITIES - Gross Amounts of Liabilities Associated with Repurchase Agreements and Securities Lending Agreements by Class of Underlying Collateral (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | $ 42,524,901 | $ 5,583,781 |
U.S. Treasury | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 28,540,952 | 3,124,781 |
Residential agency MBS | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | 12,715,891 | 2,459,000 |
Corporate and other securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements | $ 1,268,058 | $ 0 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 36 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |
Derivative [Line Items] | ||||||
Fair value of derivatives with credit risk contingent feature associated with credit ratings | $ 100,000 | $ 100,000 | ||||
Additional collateral required | 0 | 0 | ||||
Fair value of derivatives with credit risk contingent features | 7,300,000 | 7,300,000 | $ 7,700,000 | |||
Collateral posted | 11,100,000 | 11,100,000 | $ 8,800,000 | |||
Cash flow hedge loss to be reclassified within next twelve months | (30,500,000) | |||||
Net unrealized gain (loss) on cash flow hedge derivative financial instruments | ||||||
Derivative [Line Items] | ||||||
Net amount of change recognized in OCI for cash flow hedge derivatives, losses | (85,376,000) | $ (3,589,000) | (337,440,000) | $ (66,399,000) | ||
Amount reclassified from OCI into earnings for cash flow hedge derivatives, losses | 3,683,000 | $ 107,000 | 9,331,000 | $ 242,000 | ||
Interest rate swaps | SC | ||||||
Derivative [Line Items] | ||||||
Fair value adjustment | 6,500,000 | |||||
Reclassification from AOCI into earnings | 50,600,000 | |||||
Reclassification from AOCI for terminated swaps | $ 4,800,000 | $ 12,100,000 | ||||
Interest rate swaps | Cash flow hedges | Designated as hedging instrument | SC | ||||||
Derivative [Line Items] | ||||||
Aggregate notional amount | $ 2,200,000,000 | |||||
Interest rate swaps | Cash flow hedges | Designated as hedging instrument | Minimum | SC | ||||||
Derivative [Line Items] | ||||||
Derivative term (in years) | 2 years | |||||
Interest rate swaps | Cash flow hedges | Designated as hedging instrument | Maximum | SC | ||||||
Derivative [Line Items] | ||||||
Derivative term (in years) | 5 years |
DERIVATIVES - Derivatives Desig
DERIVATIVES - Derivatives Designated in Hedge Relationships (Details) - Designated as hedging instrument - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Notional Amount | $ 14,914,648 | $ 13,063,532 |
Asset, Total | 12,752 | 43,973 |
Liability, Total | $ 528,540 | $ 111,093 |
Weighted Average Receive Rate | 0.96% | 0.81% |
Weighted Average Pay Rate | 1.25% | 0.10% |
Weighted Average | ||
Derivative [Line Items] | ||
Weighted Average Life (Years) | 2 years 7 days | 2 years 3 months |
Fair value hedges | Cross-currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 50,299 | $ 14,743 |
Asset, Cash flow hedges | 863 | 655 |
Liability, Cash flow hedges | $ 0 | $ 0 |
Weighted Average Receive Rate | 2.49% | 1.34% |
Weighted Average Pay Rate | 8.38% | 7.30% |
Fair value hedges | Cross-currency swaps | Weighted Average | ||
Derivative [Line Items] | ||
Weighted Average Life (Years) | 6 years 2 months 4 days | 1 year 10 months 2 days |
Fair value hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 514,349 | $ 128,789 |
Asset, Cash flow hedges | 11,120 | 1,188 |
Liability, Cash flow hedges | $ 251 | $ 0 |
Weighted Average Receive Rate | 1.52% | 0.05% |
Weighted Average Pay Rate | 0.69% | 0.71% |
Fair value hedges | Interest rate swaps | Weighted Average | ||
Derivative [Line Items] | ||
Weighted Average Life (Years) | 3 years 2 months 15 days | 3 years 7 months 2 days |
Cash flow hedges | Pay variable - receive fixed interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 13,425,000 | $ 11,995,000 |
Asset, Cash flow hedges | 760 | 41,980 |
Liability, Cash flow hedges | $ 528,289 | $ 111,093 |
Weighted Average Receive Rate | 0.99% | 0.88% |
Weighted Average Pay Rate | 1.34% | 0.09% |
Cash flow hedges | Pay variable - receive fixed interest rate swaps | Weighted Average | ||
Derivative [Line Items] | ||
Weighted Average Life (Years) | 2 years | 2 years 3 months 10 days |
Cash flow hedges | Interest rate floors | ||
Derivative [Line Items] | ||
Notional Amount | $ 925,000 | $ 925,000 |
Asset, Cash flow hedges | 9 | 150 |
Liability, Cash flow hedges | $ 0 | $ 0 |
Weighted Average Receive Rate | 0% | 0.03% |
Weighted Average Pay Rate | 0% | 0% |
Cash flow hedges | Interest rate floors | Weighted Average | ||
Derivative [Line Items] | ||
Weighted Average Life (Years) | 1 year 3 months 14 days | 1 year 8 months 4 days |
DERIVATIVES - Derivatives Not D
DERIVATIVES - Derivatives Not Designated in Hedge Relationships (Details) - Not designated as hedging instrument - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | $ 53,165,618 | $ 56,495,865 |
Asset derivatives Fair value | 944,232 | 617,107 |
Liability derivatives Fair value | 935,209 | 579,120 |
Other | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 682,213 | 111,373 |
Asset derivatives Fair value | 5,791 | 203 |
Liability derivatives Fair value | 29,068 | 2,367 |
Foreign exchange contracts | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 6,041,137 | 5,085,973 |
Asset derivatives Fair value | 77,746 | 35,899 |
Liability derivatives Fair value | 71,434 | 33,836 |
Interest rate swap agreements | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 550,625 | 0 |
Asset derivatives Fair value | 3,942 | 0 |
Liability derivatives Fair value | 0 | 0 |
Interest rate cap agreements | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 4,401,993 | 7,007,441 |
Asset derivatives Fair value | 120,082 | 34,290 |
Liability derivatives Fair value | 0 | 0 |
Options for interest rate cap agreements | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 4,401,993 | 7,007,441 |
Asset derivatives Fair value | 0 | 0 |
Liability derivatives Fair value | 120,082 | 34,290 |
Mortgage banking derivatives | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 837,000 | 956,940 |
Asset derivatives Fair value | 11,795 | 18,693 |
Liability derivatives Fair value | 24,723 | 8,132 |
Mortgage banking derivatives | Forward commitments to sell loans | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 0 | 264,188 |
Asset derivatives Fair value | 0 | 0 |
Liability derivatives Fair value | 0 | 21 |
Mortgage banking derivatives | Interest rate lock commitments | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 0 | 99,752 |
Asset derivatives Fair value | 0 | 2,852 |
Liability derivatives Fair value | 0 | 0 |
Mortgage banking derivatives | Mortgage servicing | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 837,000 | 593,000 |
Asset derivatives Fair value | 11,795 | 15,841 |
Liability derivatives Fair value | 24,723 | 8,111 |
Customer-related derivatives | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 36,250,657 | 36,326,697 |
Asset derivatives Fair value | 724,876 | 528,022 |
Liability derivatives Fair value | 689,902 | 500,495 |
Customer-related derivatives | Swaps receive fixed | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 15,112,790 | 14,801,189 |
Asset derivatives Fair value | 10,605 | 400,168 |
Liability derivatives Fair value | 608,505 | 89,767 |
Customer-related derivatives | Swaps pay fixed | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 15,344,764 | 15,141,223 |
Asset derivatives Fair value | 643,185 | 102,312 |
Liability derivatives Fair value | 12,656 | 383,987 |
Customer-related derivatives | Other | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 5,793,103 | 6,384,285 |
Asset derivatives Fair value | 71,086 | 25,542 |
Liability derivatives Fair value | $ 68,741 | $ 26,741 |
DERIVATIVES - Gains (Losses) on
DERIVATIVES - Gains (Losses) on All Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cross-currency swaps | Net interest income | Fair value hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on derivatives | $ (1,389) | $ 0 | $ (1,021) | $ 0 |
Interest rate swaps | Net interest income | Fair value hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on derivatives | 2,957 | 70 | 10,045 | 70 |
Pay fixed-receive variable interest rate swaps | Interest expense on borrowings | Cash flow hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on derivatives | (4,797) | (7,651) | (12,073) | (15,308) |
Pay variable receive-fixed interest rate swap | Interest income on loans | Cash flow hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on derivatives | 4,538 | 25,987 | 27,789 | 49,103 |
Interest rate floors | Interest income on loans | Cash flow hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on derivatives | (44) | 6,762 | 23 | 18,077 |
Forward commitments to sell loans | Miscellaneous income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on derivatives | (1,404) | (7,002) | 21 | 3,713 |
Interest rate lock commitments | Miscellaneous income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on derivatives | 103 | (314) | (2,852) | (7,687) |
Mortgage servicing | Miscellaneous income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on derivatives | (10,064) | 4,388 | (27,357) | (5,344) |
Customer-related derivatives | Miscellaneous income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on derivatives | (39,083) | 6,138 | (34,558) | 13,793 |
Foreign exchange | Miscellaneous income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on derivatives | 49,350 | 832 | 51,312 | 6,194 |
Interest rate swaps, caps, and options | Miscellaneous income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on derivatives | 439 | (214) | 417 | 30 |
Other | Miscellaneous income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on derivatives | $ 31,425 | $ (1,827) | $ 31,796 | $ (409) |
DERIVATIVES - Offsetting of Fin
DERIVATIVES - Offsetting of Financial Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets, Total derivatives subject to a master netting arrangement or similar arrangement | $ 969,573 | $ 658,228 |
Gross Amounts Offset in the Consolidated Balance Sheet, Total Derivative Assets | 12,589 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 956,984 | 658,228 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Received, Total Derivative Assets | 241,932 | 41,899 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 715,052 | 616,329 |
Total derivatives not subject to a master netting arrangement or similar arrangement | 0 | 2,852 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Received | 0 | 122 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Net Amount | 0 | 2,730 |
Gross Amounts of Recognized Assets, Total Derivative Assets | 969,573 | 661,080 |
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Total Derivative Assets | 956,984 | 661,080 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Received, Total Derivative Assets | 241,932 | 42,021 |
Gross Amounts Not Offset in the Consolidated Balance Sheet - Net Amount, Total Derivative Assets | 715,052 | 619,059 |
Other derivative activities | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets, Total derivatives subject to a master netting arrangement or similar arrangement | 956,821 | 614,255 |
Gross Amounts Offset in the Consolidated Balance Sheet, Total Derivative Assets | 12,589 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 944,232 | 614,255 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Received, Total Derivative Assets | 241,352 | 41,899 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 702,880 | 572,356 |
Fair value hedges | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets, Total derivatives subject to a master netting arrangement or similar arrangement | 11,983 | 1,843 |
Gross Amounts Offset in the Consolidated Balance Sheet, Total Derivative Assets | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 11,983 | 1,843 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Received, Total Derivative Assets | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 11,983 | 1,843 |
Cash flow hedges | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets, Total derivatives subject to a master netting arrangement or similar arrangement | 769 | 42,130 |
Gross Amounts Offset in the Consolidated Balance Sheet, Total Derivative Assets | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 769 | 42,130 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Received, Total Derivative Assets | 580 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | $ 189 | $ 42,130 |
DERIVATIVES - Offsetting of F_2
DERIVATIVES - Offsetting of Financial Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities, Total derivatives subject to a master netting arrangement or similar arrangement | $ 1,476,338 | $ 690,192 |
Gross Amounts Offset in the Consolidated Balance Sheet | 13,204 | 2,058 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 1,463,134 | 688,134 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged | 411,280 | 327,425 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 1,051,854 | 360,709 |
Total derivatives not subject to a master netting arrangement or similar arrangement | 0 | 21 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged, Total derivatives not subject to a master netting arrangement or similar arrangement | 0 | 21 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Net Amount, Total derivatives not subject to a master netting arrangement or similar arrangement | 0 | 0 |
Gross Amounts of Recognized Liabilities, Total Derivative Liabilities | 1,476,338 | 690,213 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Total Derivative Liabilities | 1,463,134 | 688,155 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged, Total Derivative Liabilities | 411,280 | 327,446 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Net Amount, Total Derivatives Liabilities | 1,051,854 | 360,709 |
Other derivative activities | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities, Total derivatives subject to a master netting arrangement or similar arrangement | 947,798 | 579,099 |
Gross Amounts Offset in the Consolidated Balance Sheet | 13,204 | 2,058 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 934,594 | 577,041 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged | 124,953 | 268,352 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 809,641 | 308,689 |
Fair value hedges | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities, Total derivatives subject to a master netting arrangement or similar arrangement | 251 | |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 251 | |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged | 0 | |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 251 | |
Cash flow hedges | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities, Total derivatives subject to a master netting arrangement or similar arrangement | 528,289 | 111,093 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 528,289 | 111,093 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral Pledged | 286,327 | 59,073 |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | $ 241,962 | $ 52,020 |
FAIR VALUE - Fair Value Measure
FAIR VALUE - Fair Value Measurements, Recurring (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Investments in debt securities AFS | $ 8,024,675 | $ 11,313,937 |
Trading securities | 4,978,817 | 35,791 |
RICs held-for-investment | 26,200 | 33,500 |
LHFS | 600 | 166,800 |
Other assets - derivatives | 956,984 | 661,080 |
Financial liabilities: | ||
Trading liabilities | 2,167,354 | 62 |
Other liabilities - derivatives | 1,463,134 | 688,155 |
U.S. Treasury securities | ||
Financial assets: | ||
Investments in debt securities AFS | 236,025 | 73,618 |
Corporate debt securities | ||
Financial assets: | ||
Investments in debt securities AFS | 270,453 | 276,007 |
ABS | ||
Financial assets: | ||
Investments in debt securities AFS | 509,218 | 537,722 |
Recurring | ||
Financial assets: | ||
Investments in debt securities AFS | 8,024,675 | 11,313,937 |
Trading securities | 4,978,817 | 35,791 |
Federal funds sold and securities purchased under resale agreements or similar arrangements | 1,542,698 | 0 |
RICs held-for-investment | 26,172 | 33,529 |
LHFS | 591 | 166,811 |
MSRs | 104,411 | 79,107 |
Other assets - derivatives | 956,984 | 661,080 |
Total financial assets | 15,634,348 | 12,290,255 |
Financial liabilities: | ||
Federal funds purchased and securities loaned or sold under repurchase agreements | 1,516,107 | 0 |
Trading liabilities | 2,167,354 | 62 |
Other liabilities - derivatives | 1,463,749 | 690,213 |
Total financial liabilities | 5,147,210 | 690,275 |
Recurring | U.S. Treasury securities | ||
Financial assets: | ||
Investments in debt securities AFS | 236,025 | 73,618 |
Recurring | Corporate debt securities | ||
Financial assets: | ||
Investments in debt securities AFS | 270,453 | 276,007 |
Recurring | ABS | ||
Financial assets: | ||
Investments in debt securities AFS | 509,218 | 537,722 |
Recurring | MBS | ||
Financial assets: | ||
Investments in debt securities AFS | 7,008,979 | 10,426,590 |
Recurring | Level 1 | ||
Financial assets: | ||
Investments in debt securities AFS | 236,025 | 73,618 |
Trading securities | 822,763 | 64 |
Federal funds sold and securities purchased under resale agreements or similar arrangements | 0 | 0 |
RICs held-for-investment | 0 | 0 |
LHFS | 0 | 0 |
MSRs | 0 | 0 |
Other assets - derivatives | 4,170 | 0 |
Total financial assets | 1,062,958 | 73,682 |
Financial liabilities: | ||
Federal funds purchased and securities loaned or sold under repurchase agreements | 0 | 0 |
Trading liabilities | 1,844,686 | 0 |
Other liabilities - derivatives | 0 | 0 |
Total financial liabilities | 1,844,686 | 0 |
Recurring | Level 1 | U.S. Treasury securities | ||
Financial assets: | ||
Investments in debt securities AFS | 236,025 | 73,618 |
Recurring | Level 1 | Corporate debt securities | ||
Financial assets: | ||
Investments in debt securities AFS | 0 | 0 |
Recurring | Level 1 | ABS | ||
Financial assets: | ||
Investments in debt securities AFS | 0 | 0 |
Recurring | Level 1 | MBS | ||
Financial assets: | ||
Investments in debt securities AFS | 0 | 0 |
Recurring | Level 2 | ||
Financial assets: | ||
Investments in debt securities AFS | 7,788,650 | 11,240,319 |
Trading securities | 4,154,652 | 35,727 |
Federal funds sold and securities purchased under resale agreements or similar arrangements | 1,542,698 | 0 |
RICs held-for-investment | 0 | 0 |
LHFS | 591 | 166,811 |
MSRs | 0 | 0 |
Other assets - derivatives | 952,714 | 658,187 |
Total financial assets | 14,439,305 | 12,101,044 |
Financial liabilities: | ||
Federal funds purchased and securities loaned or sold under repurchase agreements | 1,516,107 | 0 |
Trading liabilities | 322,668 | 62 |
Other liabilities - derivatives | 1,462,284 | 687,846 |
Total financial liabilities | 3,301,059 | 687,908 |
Recurring | Level 2 | U.S. Treasury securities | ||
Financial assets: | ||
Investments in debt securities AFS | 0 | 0 |
Recurring | Level 2 | Corporate debt securities | ||
Financial assets: | ||
Investments in debt securities AFS | 270,453 | 276,007 |
Recurring | Level 2 | ABS | ||
Financial assets: | ||
Investments in debt securities AFS | 509,218 | 537,722 |
Recurring | Level 2 | MBS | ||
Financial assets: | ||
Investments in debt securities AFS | 7,008,979 | 10,426,590 |
Recurring | Level 3 | ||
Financial assets: | ||
Investments in debt securities AFS | 0 | 0 |
Trading securities | 1,402 | 0 |
Federal funds sold and securities purchased under resale agreements or similar arrangements | 0 | 0 |
RICs held-for-investment | 26,172 | 33,529 |
LHFS | 0 | 0 |
MSRs | 104,411 | 79,107 |
Other assets - derivatives | 100 | 2,893 |
Total financial assets | 132,085 | 115,529 |
Financial liabilities: | ||
Federal funds purchased and securities loaned or sold under repurchase agreements | 0 | 0 |
Trading liabilities | 0 | 0 |
Other liabilities - derivatives | 1,465 | 2,367 |
Total financial liabilities | $ 1,465 | 2,367 |
Percentage of level 3 assets to total assets held at fair value | 0.80% | |
Percentage of level 3 assets to total assets | 0.10% | |
Recurring | Level 3 | U.S. Treasury securities | ||
Financial assets: | ||
Investments in debt securities AFS | $ 0 | 0 |
Recurring | Level 3 | Corporate debt securities | ||
Financial assets: | ||
Investments in debt securities AFS | 0 | 0 |
Recurring | Level 3 | ABS | ||
Financial assets: | ||
Investments in debt securities AFS | 0 | 0 |
Recurring | Level 3 | MBS | ||
Financial assets: | ||
Investments in debt securities AFS | $ 0 | $ 0 |
FAIR VALUE - Sensitivity Analys
FAIR VALUE - Sensitivity Analysis of Fair Value, Mortgage Servicing Rights (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
MSRs | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Sensitivity analysis of fair value, impact of 10 percent adverse change in prepayment speed | $ (3.2) | |
Sensitivity analysis of fair value, impact of 20 percent adverse change in prepayment speed | (6.3) | |
Sensitivity analysis of fair value, impact of 10 percent adverse change in discount rate | (3.8) | |
Sensitivity analysis of fair value, impact of 20 percent adverse change in discount rate | (7.4) | |
Residential mortgages | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Principal balance of loans serviced for others | $ 9,800 | $ 10,400 |
FAIR VALUE - Reconciliation of
FAIR VALUE - Reconciliation of Assets and Liabilities Using Level 3 Inputs (Details) - Level 3 - Recurring - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balances, beginning of period | $ 127,615 | $ 185,727 | $ 113,162 | $ 187,777 |
Losses in OCI | 0 | (175) | 0 | (331) |
Gains/(losses) in earnings | 8,811 | (5,723) | 29,662 | 2,676 |
Additions/Issuances | 2,312 | 4,015 | 4,832 | 7,626 |
Settlements | (8,118) | (11,144) | (17,036) | (25,048) |
Balances, end of period | 130,620 | 172,700 | 130,620 | 172,700 |
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period | 8,707 | (5,409) | 32,514 | 10,363 |
RICs HFI | ||||
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balances, beginning of period | 29,485 | 44,568 | 33,529 | 50,391 |
Losses in OCI | 0 | 0 | 0 | 0 |
Gains/(losses) in earnings | 0 | 0 | 0 | 0 |
Additions/Issuances | 47 | 0 | 47 | 0 |
Settlements | (3,360) | (5,132) | (7,404) | (10,955) |
Balances, end of period | 26,172 | 39,436 | 26,172 | 39,436 |
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period | 0 | 0 | 0 | 0 |
MSRs | ||||
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balances, beginning of period | 99,517 | 86,653 | 79,107 | 77,545 |
Losses in OCI | 0 | 0 | 0 | 0 |
Gains/(losses) in earnings | 8,789 | (4,925) | 31,553 | 8,653 |
Additions/Issuances | 863 | 4,015 | 3,383 | 7,626 |
Settlements | (4,758) | (6,013) | (9,632) | (14,094) |
Balances, end of period | 104,411 | 79,730 | 104,411 | 79,730 |
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period | 8,789 | (4,925) | 31,553 | 8,653 |
Derivatives, net | ||||
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balances, beginning of period | (1,387) | 4,269 | 526 | 9,448 |
Losses in OCI | 0 | 0 | 0 | 0 |
Gains/(losses) in earnings | 22 | (798) | (1,891) | (5,977) |
Additions/Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Balances, end of period | (1,365) | 3,471 | (1,365) | 3,471 |
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period | (82) | (484) | 961 | 1,710 |
Other | ||||
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balances, beginning of period | 0 | 0 | ||
Losses in OCI | 0 | 0 | ||
Gains/(losses) in earnings | 0 | 0 | ||
Additions/Issuances | 1,402 | 1,402 | ||
Settlements | 0 | 0 | ||
Balances, end of period | 1,402 | 1,402 | ||
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period | $ 0 | $ 0 | ||
Investments AFS | ||||
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balances, beginning of period | 50,237 | 50,393 | ||
Losses in OCI | (175) | (331) | ||
Gains/(losses) in earnings | 0 | 0 | ||
Additions/Issuances | 0 | 0 | ||
Settlements | 1 | 1 | ||
Balances, end of period | 50,063 | 50,063 | ||
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period | $ 0 | $ 0 |
FAIR VALUE - Fair Value Measu_2
FAIR VALUE - Fair Value Measurements, Non-recurring (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired commercial LHFI | $ 26,200 | $ 33,500 |
LHFS | 600 | 166,800 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed assets | 2,788 | 1,322 |
Vehicle inventory | 277,208 | 271,396 |
LHFS | 256,307 | 88,212 |
Nonrecurring | Impaired commercial LHFI | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired commercial LHFI | 38,603 | 17,794 |
Total carrying value of the loans | 48,200 | 9,000 |
Nonrecurring | Auto loans impaired due to bankruptcy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired commercial LHFI | 193,641 | 202,448 |
Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed assets | 0 | 0 |
Vehicle inventory | 0 | 0 |
LHFS | 0 | 0 |
Nonrecurring | Level 1 | Impaired commercial LHFI | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired commercial LHFI | 0 | 0 |
Nonrecurring | Level 1 | Auto loans impaired due to bankruptcy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired commercial LHFI | 0 | 0 |
Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed assets | 2,788 | 1,322 |
Vehicle inventory | 277,208 | 271,396 |
LHFS | 0 | 0 |
Nonrecurring | Level 2 | Impaired commercial LHFI | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired commercial LHFI | 12,562 | 17,180 |
Nonrecurring | Level 2 | Auto loans impaired due to bankruptcy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired commercial LHFI | 193,641 | 202,448 |
Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed assets | 0 | 0 |
Vehicle inventory | 0 | 0 |
LHFS | 256,307 | 88,212 |
Nonrecurring | Level 3 | Impaired commercial LHFI | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired commercial LHFI | 26,041 | 614 |
Nonrecurring | Level 3 | Auto loans impaired due to bankruptcy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired commercial LHFI | $ 0 | $ 0 |
FAIR VALUE - Fair Value Adjustm
FAIR VALUE - Fair Value Adjustments (Details) - Nonrecurring - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Impaired loans | Credit loss expense/benefit | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value adjustment | $ (1,107) | $ (25,771) | $ 9,568 | $ (32,354) |
Foreclosed assets | Miscellaneous income, net | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value adjustment | 0 | (263) | 0 | (321) |
LHFS | Credit loss expense/benefit | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value adjustment | (77) | 0 | (77) | 0 |
LHFS | Miscellaneous income, net | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value adjustment | $ (7,447) | $ 0 | $ (7,447) | $ 0 |
FAIR VALUE - Quantitative Infor
FAIR VALUE - Quantitative Information (Details) $ in Thousands | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Financial Assets: | ||
Trading securities | $ 4,978,817 | $ 35,791 |
MSRs | 104,411 | 79,107 |
Level 3 | Trading securities | ||
Financial Assets: | ||
Trading securities | $ 1,402 | |
Level 3 | Trading securities | Offered quotes | ||
Financial Assets: | ||
Unobservable inputs (as a percent) | 0.0153 | |
Level 3 | MSRs | ||
Financial Assets: | ||
MSRs | $ 104,411 | $ 79,107 |
Level 3 | MSRs | CPR | Minimum | ||
Financial Assets: | ||
Unobservable inputs (as a percent) | 0.0699 | 0.0742 |
Level 3 | MSRs | CPR | Maximum | ||
Financial Assets: | ||
Unobservable inputs (as a percent) | 0.5422 | 0.8271 |
Level 3 | MSRs | CPR | Weighted Average | ||
Financial Assets: | ||
Unobservable inputs (as a percent) | 0.0797 | 0.1286 |
Level 3 | MSRs | Discount rate | ||
Financial Assets: | ||
Unobservable inputs (as a percent) | 0.0935 | 0.0935 |
FAIR VALUE - Fair Value of Fina
FAIR VALUE - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Financial assets: | |||
Investments in debt securities AFS | $ 8,024,675 | $ 11,313,937 | |
Investments in debt securities HTM | 8,662,504 | 6,629,206 | |
Trading securities and other investments | 4,978,817 | 35,791 | |
LHFI, net | 86,206,812 | 85,614,402 | |
LHFS | [1],[2] | 256,898 | 255,023 |
Derivatives | 956,984 | 661,080 | |
Financial liabilities: | |||
Trading liabilities | 2,167,354 | 62 | |
Derivatives | 1,463,134 | 688,155 | |
Gross amounts offset on the Condensed Consolidated Balance Sheets | 26,520,879 | 324,906 | |
Carrying Value | |||
Financial assets: | |||
Cash and cash equivalents | 10,468,011 | 19,305,530 | |
Federal funds sold and securities purchased under resale agreements or similar arrangements | 13,747,936 | 5,346,468 | |
Investments in debt securities AFS | 8,024,675 | 11,313,937 | |
Investments in debt securities HTM | 9,437,767 | 6,702,471 | |
Trading securities and other investments | 5,378,817 | 285,791 | |
LHFI, net | 86,206,812 | 85,614,402 | |
LHFS | 256,898 | 255,023 | |
Restricted cash | 5,317,599 | 5,711,705 | |
MSRs | 104,411 | 79,107 | |
Derivatives | 956,984 | 661,080 | |
Financial liabilities: | |||
Deposits | 2,043,352 | 2,524,471 | |
Federal funds purchased and securities loaned or sold under repurchase agreements | 16,004,022 | 5,258,875 | |
Trading liabilities | 2,167,354 | 62 | |
Borrowings and other debt obligations | 43,160,191 | 41,133,187 | |
Derivatives | 1,463,749 | 690,213 | |
Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 10,468,011 | 19,305,530 | |
Federal funds sold and securities purchased under resale agreements or similar arrangements | 13,690,778 | 5,372,052 | |
Investments in debt securities AFS | 8,024,675 | 11,313,937 | |
Investments in debt securities HTM | 8,662,504 | 6,629,206 | |
Trading securities and other investments | 5,378,953 | 286,526 | |
LHFI, net | 89,711,110 | 89,039,439 | |
LHFS | 256,898 | 255,023 | |
Restricted cash | 5,317,599 | 5,711,705 | |
MSRs | 104,411 | 79,107 | |
Derivatives | 956,984 | 661,080 | |
Financial liabilities: | |||
Deposits | 2,014,859 | 2,524,707 | |
Federal funds purchased and securities loaned or sold under repurchase agreements | 15,996,704 | 5,258,874 | |
Trading liabilities | 2,167,354 | 62 | |
Borrowings and other debt obligations | 42,802,202 | 41,600,737 | |
Derivatives | 1,463,749 | 690,213 | |
Fair Value | Level 1 | |||
Financial assets: | |||
Cash and cash equivalents | 10,468,011 | 19,305,530 | |
Federal funds sold and securities purchased under resale agreements or similar arrangements | 0 | 0 | |
Investments in debt securities AFS | 236,025 | 73,618 | |
Investments in debt securities HTM | 0 | 0 | |
Trading securities and other investments | 822,763 | 64 | |
LHFI, net | 0 | 0 | |
LHFS | 0 | 0 | |
Restricted cash | 5,317,599 | 5,711,705 | |
MSRs | 0 | 0 | |
Derivatives | 4,170 | 0 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Federal funds purchased and securities loaned or sold under repurchase agreements | 0 | 0 | |
Trading liabilities | 1,844,686 | 0 | |
Borrowings and other debt obligations | 0 | 0 | |
Derivatives | 0 | 0 | |
Fair Value | Level 2 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Federal funds sold and securities purchased under resale agreements or similar arrangements | 13,690,778 | 5,372,052 | |
Investments in debt securities AFS | 7,788,650 | 11,240,319 | |
Investments in debt securities HTM | 8,662,504 | 6,629,206 | |
Trading securities and other investments | 4,554,788 | 286,462 | |
LHFI, net | 12,562 | 17,180 | |
LHFS | 0 | 166,811 | |
Restricted cash | 0 | 0 | |
MSRs | 0 | 0 | |
Derivatives | 952,714 | 658,187 | |
Financial liabilities: | |||
Deposits | 2,014,859 | 2,524,707 | |
Federal funds purchased and securities loaned or sold under repurchase agreements | 15,996,704 | 5,258,874 | |
Trading liabilities | 322,668 | 62 | |
Borrowings and other debt obligations | 35,404,624 | 33,874,253 | |
Derivatives | 1,462,284 | 687,846 | |
Fair value of underlying collateral | 43,000,000 | ||
Fair Value | Level 3 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Federal funds sold and securities purchased under resale agreements or similar arrangements | 0 | 0 | |
Investments in debt securities AFS | 0 | 0 | |
Investments in debt securities HTM | 0 | 0 | |
Trading securities and other investments | 1,402 | 0 | |
LHFI, net | 89,698,548 | 89,022,259 | |
LHFS | 256,898 | 88,212 | |
Restricted cash | 0 | 0 | |
MSRs | 104,411 | 79,107 | |
Derivatives | 100 | 2,893 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Federal funds purchased and securities loaned or sold under repurchase agreements | 0 | 0 | |
Trading liabilities | 0 | 0 | |
Borrowings and other debt obligations | 7,397,578 | 7,726,484 | |
Derivatives | $ 1,465 | $ 2,367 | |
[1]Includes $0.6 million and $166.8 million of loans recorded at the FVO at June 30, 2022 and December 31, 2021, respectively.[2]The Company has interests in certain Trusts that are considered VIEs for accounting purposes. At June 30, 2022 and December 31, 2021, LHFI included $23.6 billion and $20.6 billion, LHFS included zero and zero , Operating leases assets, net included $12.2 billion and $14.7 billion, restricted cash included $1.1 billion and $1.6 billion, Other assets included $687.5 million and $629.4 million, Borrowings and other debt obligations included $30.2 billion and $29.2 billion, and Other liabilities included $121.9 million and $81.1 million of assets or liabilities that were included within VIEs, respectively. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
FAIR VALUE - Fair Value Option
FAIR VALUE - Fair Value Option for Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value | ||
Nonaccrual loans | $ 196 | $ 435 |
Aggregate UPB | ||
Nonaccrual loans | 204 | 457 |
Difference | ||
Nonaccrual loans | (8) | (22) |
LHFS | ||
Fair Value | ||
LHFS | 0 | 166,811 |
Aggregate UPB | ||
LHFS | 0 | 162,525 |
Difference | ||
LHFS | 0 | 4,286 |
RICs HFI | ||
Fair Value | ||
RICs HFI | 26,172 | 33,529 |
Aggregate UPB | ||
RICs HFI | 26,459 | 33,737 |
Difference | ||
RICs HFI | $ (287) | $ (208) |
NON-INTEREST INCOME AND OTHER_3
NON-INTEREST INCOME AND OTHER EXPENSES - Schedule of Non-Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | ||||
Consumer and commercial fees | $ 100,334 | $ 106,926 | $ 197,824 | $ 226,145 |
Lease income | 678,655 | 732,892 | 1,349,859 | 1,505,784 |
Capital market revenue | 44,316 | 60,146 | 109,075 | 141,935 |
Mortgage banking income, net | 5,936 | 675 | 17,317 | 21,413 |
BOLI | 14,340 | 15,387 | 29,957 | 30,933 |
Net gain on sale of operating leases | 20,216 | 178,544 | 46,261 | 286,807 |
Asset and wealth management fees | 66,857 | 58,744 | 133,559 | 117,471 |
Gain / (loss) on sale of non-mortgage loans | (6,873) | 14,831 | (6,549) | (23,185) |
Other miscellaneous income / (loss), net | 14,858 | 8,772 | 28,638 | 44,236 |
Net gain/(loss) on sale of investment securities | 10,759 | 5,370 | 24,714 | 15,243 |
TOTAL NON-INTEREST INCOME | $ 949,398 | $ 1,182,287 | $ 1,930,655 | $ 2,366,782 |
NON-INTEREST INCOME AND OTHER_4
NON-INTEREST INCOME AND OTHER EXPENSES - Disaggregation by Revenue Source (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Lease income | $ 678,655 | $ 732,892 | $ 1,349,859 | $ 1,505,784 |
Other miscellaneous income/(loss), net | 27,122 | 205,050 | 78,992 | 327,353 |
Net gain/(loss) on sale of investment securities | 10,759 | 5,370 | 24,714 | 15,243 |
Total out-of-scope of revenue from contracts with customers | 757,730 | 990,698 | 1,536,293 | 1,957,715 |
TOTAL NON-INTEREST INCOME | 949,398 | 1,182,287 | 1,930,655 | 2,366,782 |
Total in-scope of revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
In-scope of revenue from contracts with customers | 191,668 | 191,589 | 394,362 | 409,067 |
Depository services | ||||
Disaggregation of Revenue [Line Items] | ||||
In-scope of revenue from contracts with customers | 41,408 | 43,505 | 81,308 | 86,540 |
Commission and trailer fees | ||||
Disaggregation of Revenue [Line Items] | ||||
In-scope of revenue from contracts with customers | 60,599 | 53,525 | 119,785 | 108,064 |
Interchange income, net | ||||
Disaggregation of Revenue [Line Items] | ||||
In-scope of revenue from contracts with customers | 18,547 | 18,253 | 36,565 | 34,762 |
Underwriting service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
In-scope of revenue from contracts with customers | 18,717 | 35,846 | 54,379 | 94,919 |
Asset and wealth management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
In-scope of revenue from contracts with customers | 40,721 | 31,507 | 78,645 | 63,749 |
Other revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
In-scope of revenue from contracts with customers | 11,676 | 8,953 | 23,680 | 21,033 |
Consumer and commercial fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Out-of-scope of revenue from contracts with customers | $ 41,194 | $ 47,386 | $ 82,728 | $ 109,335 |
NON-INTEREST INCOME AND OTHER_5
NON-INTEREST INCOME AND OTHER EXPENSES - Schedule of Other Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | ||||
Amortization of intangibles | $ 10,495 | $ 10,746 | $ 23,034 | $ 22,033 |
Deposit insurance premiums and other expenses | 12,784 | 9,648 | 21,015 | 18,969 |
Other administrative expenses | 97,739 | 82,466 | 186,491 | 155,442 |
Other miscellaneous expenses | 6,597 | 5,637 | 32,312 | 16,475 |
Total Other expenses | $ 127,615 | $ 108,497 | $ 262,852 | $ 212,919 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision | $ 106,993 | $ 371,644 | $ 268,661 | $ 658,473 | |
Effective income tax rate reconciliation (as a percent) | 20.30% | 24.20% | |||
Deferred tax liabilities, net | 562,700 | $ 562,700 | $ 683,400 | ||
Deferred tax assets, gross | 146,900 | 146,900 | 87,900 | ||
Deferred tax liabilities, gross | $ 709,700 | 709,700 | $ 771,300 | ||
Increase (decrease) in deferred tax liabilities, net | $ (120,700) |
COMMITMENTS, CONTINGENCIES, A_3
COMMITMENTS, CONTINGENCIES, AND GUARANTEES - Other Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Other Commitments [Line Items] | ||
Total commitments | $ 29,639,642 | $ 29,098,029 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Other commitments | 28,301,108 | 27,648,128 |
Letters of credit | ||
Other Commitments [Line Items] | ||
Letters of credit | 1,317,513 | 1,374,081 |
Commitments to sell loans | ||
Other Commitments [Line Items] | ||
Other commitments | 0 | 56,725 |
Recourse exposure on sold loans | ||
Other Commitments [Line Items] | ||
Other commitments | $ 21,021 | $ 19,095 |
COMMITMENTS, CONTINGENCIES, A_4
COMMITMENTS, CONTINGENCIES, AND GUARANTEES - Commitments to Extend Credit (Details) - USD ($) $ in Billions | Jun. 30, 2022 | Dec. 31, 2021 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Commitments that can be canceled without notice | $ 4.2 | $ 3.8 |
COMMITMENTS, CONTINGENCIES, A_5
COMMITMENTS, CONTINGENCIES, AND GUARANTEES - Letters of Credit (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Other Commitments [Line Items] | ||
Lines of credit outstanding | $ 86,200 | $ 104,100 |
Letters of credit | ||
Other Commitments [Line Items] | ||
Commitments, weighted average term (in months) | 14 months 18 days | |
Letters of credit | $ 1,317,513 | $ 1,374,081 |
COMMITMENTS, CONTINGENCIES, A_6
COMMITMENTS, CONTINGENCIES, AND GUARANTEES - Commitments to Sell Loans (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments to sell loans | |
Other Commitments [Line Items] | |
Forward contracts maturity period (less than) | 1 year |
COMMITMENTS, CONTINGENCIES, A_7
COMMITMENTS, CONTINGENCIES, AND GUARANTEES - SC Commitments (Details) - SC - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Consumer arrangements | ||
Long-term Purchase Commitment [Line Items] | ||
Contingencies | $ 0 | $ 6,937 |
Chrysler | Revenue-sharing and gain/(loss), net-sharing payments | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 26,538 | 41,995 |
Bank of America | Servicer performance fee | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 462 | 462 |
CBP | Loss-sharing payments | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | $ 250 | $ 273 |
COMMITMENTS, CONTINGENCIES, A_8
COMMITMENTS, CONTINGENCIES, AND GUARANTEES - Chrysler Agreement (Details) - SC - Chrysler | Jun. 30, 2022 USD ($) |
Other Commitments [Line Items] | |
Financing dedicated to FCA retail financing | $ 4,500,000,000 |
Minimum | |
Other Commitments [Line Items] | |
Funding available for dealer inventory financing | $ 5,000,000,000 |
COMMITMENTS, CONTINGENCIES, A_9
COMMITMENTS, CONTINGENCIES, AND GUARANTEES - Others (Details) - SC - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2021 | Nov. 30, 2015 | |
Other Commitments [Line Items] | |||
Minimum sales commitment, charged off loan receivables | $ 350,000,000 | ||
Threshold for sales subject to market price check (over) | $ 275,000,000 | ||
Minimum sales commitment, loans receivable, written off, remaining | $ 2,500,000 | $ 3,000,000 |
COMMITMENTS, CONTINGENCIES, _10
COMMITMENTS, CONTINGENCIES, AND GUARANTEES - Legal and Regulatory Proceedings (Details) | 6 Months Ended | ||||||
Jan. 28, 2022 USD ($) | Jul. 12, 2021 USD ($) | Nov. 27, 2020 USD ($) municipal_bond_underwriter | Oct. 28, 2020 USD ($) municipal_bond_underwriter underwriter | Aug. 08, 2019 USD ($) municipal_bond_underwriter | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Loss Contingencies [Line Items] | |||||||
Accrued legal and regulatory liabilities | $ 27,300,000 | $ 44,000,000 | |||||
Daniel and Rebecca Ruf-Tepper v. Santander Bank, N.A. | |||||||
Loss Contingencies [Line Items] | |||||||
Damages sought, value | $ 2,000,000 | ||||||
Crystal Sanchez v. Santander Bank, N.A. | |||||||
Loss Contingencies [Line Items] | |||||||
Damages sought, value | $ 4,250,000 | ||||||
Hugh and Christina Kelly v. Santander Consumer USA Holdings Inc | |||||||
Loss Contingencies [Line Items] | |||||||
Storage fee | 25 | ||||||
Puerto Rico Municipal Bond Insurer Litigation | Puerto Rico | |||||||
Loss Contingencies [Line Items] | |||||||
Damages sought, value | $ 447,000,000 | $ 508,000,000 | $ 720,000,000 | ||||
Number of municipal bond underwriters | municipal_bond_underwriter | 12 | 4 | 8 | ||||
Number of underwriters | underwriter | 7 | ||||||
Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Estimate of possible loss | $ 11,000,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | Mar. 02, 2022 USD ($) boardSeat | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Related Party Transaction [Line Items] | |||
Deposits | $ 74,474,111 | $ 81,598,172 | |
Equity method investments | 265,482 | 260,010 | |
Total number of board seats | boardSeat | 6 | ||
AutoFi, Inc. | |||
Related Party Transaction [Line Items] | |||
Equity method investments | $ 64,000 | ||
Ownership percentage | 9.40% | ||
Number of board seats held by the company | boardSeat | 1 | ||
AutoFi, Inc. | Equity Investment, Common Shares | |||
Related Party Transaction [Line Items] | |||
Payments to acquire equity investments | $ 22,900 | ||
AutoFi, Inc. | Equity Investment, Preferred Shares | |||
Related Party Transaction [Line Items] | |||
Payments to acquire equity investments | $ 41,100 | ||
AutoFi, Inc. | Santander | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 10.30% | ||
Banco Santander Brasil S.A. | SBNA | |||
Related Party Transaction [Line Items] | |||
Deposits | $ 15,000 | $ 2,600,000 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Narrative (Details) $ in Millions | Jun. 30, 2022 USD ($) |
CIB | |
Segment Reporting Information [Line Items] | |
Minimum annual revenue to service corporations | $ 500 |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Net interest income | $ 1,533,412 | $ 1,531,835 | $ 3,013,417 | $ 3,151,167 | |
Non-interest income | 949,398 | 1,182,287 | 1,930,655 | 2,366,782 | |
Credit loss expense/(benefit) | 404,200 | (317,282) | 621,009 | (241,216) | |
Total expenses | 1,533,072 | 1,492,882 | 2,999,762 | 3,041,310 | |
INCOME BEFORE INCOME TAX PROVISION | 545,538 | 1,538,522 | 1,323,301 | 2,717,855 | |
Total assets | 165,323,832 | 155,185,643 | 165,323,832 | 155,185,643 | $ 159,821,231 |
Reportable Segments | Auto | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 1,021,335 | 1,096,871 | 2,072,601 | 2,169,118 | |
Non-interest income | 696,522 | 928,581 | 1,403,036 | 1,846,438 | |
Credit loss expense/(benefit) | 334,181 | (271,712) | 554,707 | (150,327) | |
Total expenses | 830,072 | 855,243 | 1,632,156 | 1,745,835 | |
INCOME BEFORE INCOME TAX PROVISION | 553,604 | 1,441,921 | 1,288,774 | 2,420,048 | |
Total assets | 61,804,866 | 62,017,708 | 61,804,866 | 62,017,708 | |
Reportable Segments | CBB | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 331,432 | 301,416 | 633,387 | 703,754 | |
Non-interest income | 78,885 | 85,911 | 157,038 | 153,120 | |
Credit loss expense/(benefit) | 58,299 | (12,915) | 65,343 | (17,236) | |
Total expenses | 383,486 | 372,913 | 767,436 | 775,249 | |
INCOME BEFORE INCOME TAX PROVISION | (31,468) | 27,329 | (42,354) | 98,861 | |
Total assets | 12,880,656 | 12,765,546 | 12,880,656 | 12,765,546 | |
Reportable Segments | C&I | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 75,795 | 72,491 | 143,457 | 146,266 | |
Non-interest income | 14,317 | 18,617 | 30,257 | 35,019 | |
Credit loss expense/(benefit) | 8,622 | (20,721) | 12,256 | (52,062) | |
Total expenses | 64,700 | 62,903 | 132,187 | 126,163 | |
INCOME BEFORE INCOME TAX PROVISION | 16,790 | 48,926 | 29,271 | 107,184 | |
Total assets | 6,661,483 | 7,470,239 | 6,661,483 | 7,470,239 | |
Reportable Segments | CRE | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 84,747 | 82,783 | 163,182 | 168,066 | |
Non-interest income | 7,691 | 15,161 | 23,031 | 20,777 | |
Credit loss expense/(benefit) | 4,550 | 2,573 | (14,788) | 4,349 | |
Total expenses | 29,410 | 29,138 | 58,609 | 57,163 | |
INCOME BEFORE INCOME TAX PROVISION | 58,478 | 66,233 | 142,392 | 127,331 | |
Total assets | 18,481,532 | 17,792,008 | 18,481,532 | 17,792,008 | |
Reportable Segments | CIB | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 48,361 | 30,244 | 74,250 | 57,655 | |
Non-interest income | 70,077 | 54,529 | 137,919 | 132,078 | |
Credit loss expense/(benefit) | (3,003) | (13,633) | 3,390 | (22,327) | |
Total expenses | 117,092 | 62,779 | 192,647 | 130,109 | |
INCOME BEFORE INCOME TAX PROVISION | 4,349 | 35,627 | 16,132 | 81,951 | |
Total assets | 28,747,499 | 11,788,210 | 28,747,499 | 11,788,210 | |
Reportable Segments | Wealth Management | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 45,227 | 23,171 | 64,370 | 46,851 | |
Non-interest income | 62,587 | 62,996 | 140,237 | 126,242 | |
Credit loss expense/(benefit) | 0 | (97) | 0 | (170) | |
Total expenses | 59,375 | 52,755 | 121,032 | 103,317 | |
INCOME BEFORE INCOME TAX PROVISION | 48,439 | 33,509 | 83,575 | 69,946 | |
Total assets | 8,304,682 | 8,149,788 | 8,304,682 | 8,149,788 | |
Reportable Segments | Other | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | (73,485) | (75,141) | (137,830) | (140,543) | |
Non-interest income | 19,319 | 16,492 | 39,137 | 53,108 | |
Credit loss expense/(benefit) | 1,551 | (777) | 101 | (3,443) | |
Total expenses | 48,937 | 57,151 | 95,695 | 103,474 | |
INCOME BEFORE INCOME TAX PROVISION | (104,654) | (115,023) | (194,489) | (187,466) | |
Total assets | $ 28,443,114 | $ 35,202,144 | $ 28,443,114 | $ 35,202,144 |