Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Entity File Number | 1-10853 | |
Entity Registrant Name | TRUIST FINANCIAL CORPORATION | |
Entity Incorporation, State or Country Code | NC | |
Entity Tax Identification Number | 56-0939887 | |
Entity Address, Address Line One | 214 North Tryon Street | |
Entity Address, City or Town | Charlotte, | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28202 | |
City Area Code | (336) | |
Local Phone Number | 733-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,347,468,353 | |
Entity Central Index Key | 0000092230 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Common Stock, $5 par value | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, $5 par value | |
Trading Symbol | TFC | |
Security Exchange Name | NYSE | |
Series F Preferred Stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Depositary Shares each representing 1/1,000th interest in a share of Series F Non-Cumulative Perpetual Preferred Stock | |
Trading Symbol | TFC.PF | |
Security Exchange Name | NYSE | |
Series G Preferred Stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Depositary Shares each representing 1/1,000th interest in a share of Series G Non-Cumulative Perpetual Preferred Stock | |
Trading Symbol | TFC.PG | |
Security Exchange Name | NYSE | |
Series H Preferred Stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Depositary Shares each representing 1/1,000th interest in a share of Series H Non-Cumulative Perpetual Preferred Stock | |
Trading Symbol | TFC.PH | |
Security Exchange Name | NYSE | |
Series I | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Depositary Shares each representing 1/4,000th interest in a share of Series I Perpetual Preferred Stock | |
Trading Symbol | TFC.PI | |
Security Exchange Name | NYSE | |
Series J | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 5.853% Fixed-to-Floating Rate Normal Preferred Purchase Securities each representing 1/100th interest in a share of Series J Perpetual Preferred Stock | |
Trading Symbol | TFC.PJ | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and Due from Banks | $ 5,312 | $ 4,084 |
Interest-bearing deposits with banks | 31,036 | 14,981 |
Securities borrowed or purchased under resale agreements | 1,796 | 1,417 |
Trading Assets | 3,863 | 5,733 |
AFS securities at fair value | 78,398 | 74,727 |
LHFS (including $3,655 and $5,673 at fair value, respectively) | 4,810 | 8,373 |
Loans and leases | 319,229 | 299,842 |
ALLL | (5,211) | (1,549) |
Loans and leases, net of ALLL | 314,018 | 298,293 |
Premises and equipment | 3,999 | 3,712 |
Goodwill | 23,927 | 24,154 |
CDI and other intangible assets | 3,168 | 3,142 |
MSRs (including $2,150 and $2,618 at fair value, respectively) | 2,150 | 2,630 |
Other assets (including $5,129 and $3,310 at fair value, respectively) | 33,752 | 31,832 |
Total assets | 506,229 | 473,078 |
Liabilities | ||
Noninterest-bearing deposits | 97,618 | 92,405 |
Interest-bearing deposits | 252,561 | 242,322 |
Short-term borrowings | 12,696 | 18,218 |
Long-term debt | 65,662 | 41,339 |
Other liabilities (including $1,849 and $1,440 at fair value, respectively) | 11,631 | 12,236 |
Total liabilities | 440,168 | 406,520 |
Shareholders' Equity | ||
Preferred stock, $5 par value, liquidation preference of $25,000 per share | 4,599 | 5,102 |
Common stock, $5 par value | 6,737 | 6,711 |
Additional paid-in capital | 35,584 | 35,609 |
Retained earnings | 18,076 | 19,806 |
AOCI, net of deferred income taxes | 898 | (844) |
Noncontrolling interests | 167 | 174 |
Total shareholders' equity | 66,061 | 66,558 |
Total liabilities and shareholders' equity | $ 506,229 | $ 473,078 |
Common shares outstanding | 1,347,461 | 1,342,166 |
Common shares authorized | 2,000,000 | 2,000,000 |
Preferred shares outstanding | 140 | 145 |
Preferred shares authorized | 5,000 | 5,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
LHFS at fair value | $ 3,655 | $ 5,673 |
MSRs at fair value | 2,150 | 2,618 |
Other Assets, Fair Value Disclosure | 5,129 | 3,310 |
Other Liabilities, Fair Value Disclosure | $ 1,849 | $ 1,440 |
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 |
Preferred stock, liquidation preference (in dollars per share) | 25,000 | 25,000 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest Income | ||
Interest and fees on loans and leases | $ 3,776 | $ 1,839 |
Interest on securities | 494 | 302 |
Interest on other earning assets | 156 | 32 |
Total interest income | 4,426 | 2,173 |
Interest Expense | ||
Interest on deposits | 421 | 253 |
Interest on long-term debt | 272 | 192 |
Interest on other borrowings | 83 | 32 |
Total interest expense | 776 | 477 |
Net Interest Income | 3,650 | 1,696 |
Provision for credit losses | 893 | 155 |
Net Interest Income After Provision for Credit Losses | 2,757 | 1,541 |
Noninterest Income | ||
Noninterest income | 1,961 | 1,202 |
Noninterest Expense | ||
Personnel expense | 1,972 | 1,087 |
Net occupancy expense | 221 | 122 |
Professional fees and outside processing | 247 | 86 |
Software expense | 210 | 72 |
Equipment expense | 116 | 65 |
Marketing and customer development | 84 | 27 |
Operating lease depreciation | 71 | 29 |
Loan-related expense | 62 | 25 |
Amortization of intangibles | 165 | 32 |
Regulatory costs | 29 | 18 |
Merger-related and restructuring charges | 107 | 80 |
Other expense | 147 | 125 |
Total noninterest expense | 3,431 | 1,768 |
Earnings | ||
Income before income taxes | 1,287 | 975 |
Provision for income taxes | 224 | 177 |
Net income | 1,063 | 798 |
Noncontrolling interests | 3 | 6 |
Dividends on preferred stock | 74 | 43 |
Net income available to common shareholders | $ 986 | $ 749 |
Basic EPS | $ 0.73 | $ 0.98 |
Diluted EPS | $ 0.73 | $ 0.97 |
Basic weighted average shares outstanding (in shares) | 1,344,372 | 764,135 |
Diluted weighted average shares outstanding (in shares) | 1,357,545 | 774,071 |
Insurance income | ||
Noninterest Income | ||
Noninterest income | $ 549 | $ 510 |
Service charges on deposits | ||
Noninterest Income | ||
Noninterest income | 305 | 171 |
Wealth management income | ||
Noninterest Income | ||
Noninterest income | 332 | 162 |
Card and payment related fees | ||
Noninterest Income | ||
Noninterest income | 187 | 128 |
Residential mortgage income | ||
Noninterest Income | ||
Noninterest income | 245 | 49 |
Investment banking and trading income | ||
Noninterest Income | ||
Noninterest income | 118 | 27 |
Operating lease income | ||
Noninterest Income | ||
Noninterest income | 77 | 35 |
Income from bank-owned life insurance | ||
Noninterest Income | ||
Noninterest income | 44 | 28 |
Lending related fees | ||
Noninterest Income | ||
Noninterest income | 67 | 25 |
Commercial real estate related income | ||
Noninterest Income | ||
Noninterest income | 44 | 14 |
Securities gains (losses) | ||
Noninterest Income | ||
Noninterest income | (2) | 0 |
Other income (loss) | ||
Noninterest Income | ||
Noninterest income | $ (5) | $ 53 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,063 | $ 798 |
OCI, net of tax: | ||
Change in unrecognized net pension and postretirement costs | 15 | 17 |
Change in unrealized net gains (losses) on cash flow hedges | 11 | (34) |
Change in unrealized net gains (losses) on AFS securities | 1,721 | 309 |
Other, net | (5) | 2 |
Total OCI, net of tax | 1,742 | 294 |
Total comprehensive income | 2,805 | 1,092 |
Income Tax Effect of Items Included in OCI: | ||
Change in unrecognized net pension and postretirement costs | 5 | 6 |
Change in unrealized net gains (losses) on cash flow hedges | 3 | (11) |
Change in unrealized net gains (losses) on AFS securities | 527 | 95 |
Other, net | $ 0 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Preferred Stock | Additional Paid-In Capital | Retained Earnings | AOCI | Noncontrolling Interests |
Beginning balance at Dec. 31, 2018 | $ 30,178 | $ 3,817 | $ 3,053 | $ 6,849 | $ 18,118 | $ (1,715) | $ 56 |
Beginning balance (in shares) at Dec. 31, 2018 | 763,326 | ||||||
Add (Deduct): | |||||||
Net income | 798 | 792 | 6 | ||||
OCI | 294 | 294 | |||||
Stock transactions: | |||||||
Issued in connection with equity awards, net | (28) | $ 13 | (41) | ||||
Issued in connection with equity awards, net (in shares) | 2,594 | ||||||
Cash dividends declared on common stock | (309) | (309) | |||||
Cash dividends declared on preferred stock | (43) | (43) | |||||
Equity-based compensation expense | 32 | 32 | |||||
Other, net | (39) | 3 | (40) | (2) | |||
Ending balance at Mar. 31, 2019 | 30,883 | $ 3,830 | 3,053 | 6,843 | 18,518 | (1,421) | 60 |
Ending balance (in shares) at Mar. 31, 2019 | 765,920 | ||||||
Beginning balance at Dec. 31, 2019 | $ 66,558 | $ 6,711 | 5,102 | 35,609 | 19,806 | (844) | 174 |
Beginning balance (in shares) at Dec. 31, 2019 | 1,342,166 | 1,342,166 | |||||
Add (Deduct): | |||||||
Net income | $ 1,063 | 1,060 | 3 | ||||
OCI | 1,742 | 1,742 | |||||
Stock transactions: | |||||||
Issued in connection with equity awards, net | (80) | $ 26 | (104) | (2) | |||
Issued in connection with equity awards, net (in shares) | 5,295 | ||||||
Redemption of preferred stock | (503) | (503) | |||||
Cash dividends declared on common stock | (605) | (605) | |||||
Cash dividends declared on preferred stock | (74) | (74) | |||||
Equity-based compensation expense | 79 | 79 | |||||
Cumulative effect adjustment for new accounting standards | (2,109) | (2,109) | |||||
Other, net | (10) | (10) | |||||
Ending balance at Mar. 31, 2020 | $ 66,061 | $ 6,737 | $ 4,599 | $ 35,584 | $ 18,076 | $ 898 | $ 167 |
Ending balance (in shares) at Mar. 31, 2020 | 1,347,461 | 1,347,461 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows From Operating Activities: | ||
Net income | $ 1,063 | $ 798 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for credit losses | 893 | 155 |
Depreciation | 234 | 105 |
Amortization of intangibles | 165 | 32 |
Equity-based compensation expense | 79 | 32 |
(Gain) loss on securities, net | 2 | 0 |
Net change in operating assets and liabilities: | ||
LHFS | 2,898 | 77 |
MSRs | 480 | 73 |
Pension asset | (336) | (561) |
Trading assets | 1,870 | (1,133) |
Other assets and other liabilities | (3,318) | (445) |
Other, net | 598 | 122 |
Net cash from operating activities | 4,628 | (745) |
Cash Flows From Investing Activities: | ||
Proceeds from sales of AFS securities | 1,506 | 1,797 |
Proceeds from maturities, calls and paydowns of AFS securities | 2,513 | 861 |
Purchases of AFS securities | (4,029) | (3,525) |
Proceeds from maturities, calls and paydowns of HTM securities | 0 | 450 |
Originations and purchases of loans and leases, net of sales and principal collected | (18,024) | (193) |
Net cash received (paid) for FHLB stock | (651) | 76 |
Net cash received (paid) for securities borrowed or purchased under resale agreements | (379) | (109) |
Net cash paid for premises and equipment | (464) | (34) |
Net cash received (paid) for mergers, acquisitions and divestitures | (62) | 0 |
Other, net | 75 | 91 |
Net cash from investing activities | (19,515) | (586) |
Cash Flows From Financing Activities: | ||
Net change in deposits | 15,474 | (1,432) |
Net change in short-term borrowings | (5,522) | 1,127 |
Proceeds from issuance of long-term debt | 24,288 | 2,015 |
Repayment of long-term debt | (782) | (1,103) |
Redemption of preferred stock | (503) | 0 |
Cash dividends paid on common stock | (605) | (309) |
Cash dividends paid on preferred stock | (74) | (43) |
Other, net | (106) | (48) |
Net cash from financing activities | 32,170 | 207 |
Net Change in Cash and Cash Equivalents | 17,283 | (1,124) |
Cash and Cash Equivalents, January 1 | 19,065 | 3,844 |
Cash and Cash Equivalents, March 31 | 36,348 | 2,720 |
Supplemental Disclosure of Cash Flow Information: | ||
Net cash paid (received) during the period for interest expense | 758 | 419 |
Net cash paid (received) during the period for income taxes | $ 11 | $ 62 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation General See the Glossary of Defined Terms at the beginning of this Report for terms used herein. These consolidated financial statements and notes are presented in accordance with the instructions for Form 10-Q and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with GAAP. In the opinion of management, all normal recurring adjustments necessary for a fair statement of the consolidated financial position and consolidated results of operations have been made. The year-end consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The information contained in the financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2019 should be referred to in connection with these unaudited interim consolidated financial statements. The Company updated its accounting policies in connection with the recently adopted accounting standards. There were no other significant changes to the Company’s accounting policies from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2019 that could have a material effect on the Company’s financial statements. Reclassifications Certain amounts reported in prior periods' consolidated financial statements have been reclassified to conform to the current presentation. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the ACL; determination of fair value for financial instruments; valuation of MSRs; goodwill, intangible assets and other purchase accounting related adjustments; benefit plan obligations and expenses; and tax assets, liabilities and expense. Investment Securities The Company invests in various debt securities primarily as a store of liquidity and as part of the overall ALM process to optimize income and market performance over an entire interest rate cycle. Investments in debt securities that are not held for trading purposes are classified as HTM or AFS. Truist does not currently have securities classified as HTM. Interest income on securities is recognized in income on an accrual basis. Premiums and discounts are amortized into interest income using the effective interest method over the contractual life of the security. As prepayments are received, a proportionate amount of the related premium or discount is recognized in income so that the effective interest rate on the remaining portion of the security continues unchanged. Debt securities that may be sold to meet liquidity needs arising from unanticipated deposit and loan fluctuations, changes in regulatory capital requirements or unforeseen changes in market conditions are classified as AFS. AFS securities are reported at estimated fair value, with unrealized gains and losses reported in AOCI, net of deferred income taxes, in the Shareholders' equity section of the Consolidated Balance Sheets. Gains or losses realized from the sale of AFS securities are determined by specific identification and are included in noninterest income. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. AFS debt securities in an unrealized loss position are evaluated at the balance sheet date to determine whether such losses are credit-related. Credit losses are measured on an individual basis and recognized in an ACL. Changes in expected credit losses are recognized in the Provision for credit losses in the Consolidated Statements of Income. At March 31, 2020, no ACL was established for AFS securities. Cash flow modeling is used to evaluate non-agency MBS in an unrealized loss position for potential credit impairment. These models give consideration to macroeconomic factors applied to current security default rates, prepayment rates, recovery rates and security-level performance. Municipal securities are evaluated for impairment using a municipal bond credit scoring tool that leverages historical municipal market data to estimate probability of default and loss given default at the issuer level. U.S. Treasury securities, government guaranteed securities, and other securities issued by GSEs are either explicitly or implicitly guaranteed by the US government, are highly rated by rating agencies and have a long history of no credit losses. No expected credit losses have been recorded for these securities. Loans and Leases The Company's accounting methods for loans differ depending on whether the loans are originated or purchased, and if purchased, whether or not the loans reflect credit deterioration since the date of origination such that at the date of acquisition there is more than an insignificant deterioration in credit. Originated Loans and Leases Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balances net of any unearned income, charge-offs, and unamortized fees and costs. The net amount of nonrefundable loan origination fees and certain direct costs associated with the lending process are deferred and amortized to interest income over the contractual lives of the loans using the effective interest method. Purchased Loans Purchased loans are recorded at their fair value at the acquisition date. The estimated fair values incorporate adjustments related to expected credit losses, prevailing market interest rates for comparable assets and liquidity-related adjustments. Fair values for purchased loans are based on a discounted cash flow methodology that considers credit loss expectations, market interest rates and other market factors such as liquidity from the perspective of a market participant. Loans are grouped together according to similar characteristics and treated in the aggregate when applying various valuation techniques. The probability of default, loss given default and prepayment assumptions are the key factors driving credit losses which are embedded into the estimated cash flows. These assumptions are informed by internal data on loan characteristics, historical loss experience, and current and forecasted economic conditions. The interest and liquidity component of the estimate was determined by discounting interest and principal cash flows through the expected life of the underlying loans. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity. The discount rates do not include a factor for credit losses as that has been included as a reduction to the estimated cash flows. Beginning January 1, 2020, purchased loans are evaluated upon acquisition and classified as either PCD, which indicates that the loan reflects more-than-insignificant deterioration in credit quality since origination, or non-PCD. Truist considers a variety of factors in connection with the identification of more-than-insignificant deterioration in credit quality, including but not limited to risk grades, delinquency, nonperforming status, previous troubled debt restructurings or bankruptcies and other qualitative factors that indicate deterioration in credit quality since origination. For PCD loans, an initial ALLL is determined using the same methodology as other loans held for investment and recognized as an adjustment to the acquisition price of the asset; thus, the sum of the loans’ purchase price and initial ALLL estimate represents the initial amortized cost basis. The difference between the initial amortized cost basis and the par value is the non-credit discount or premium. For non-PCD loans, the difference between the fair value and the par value is considered the fair value mark. The ALLL for non-PCD loans is recorded with a corresponding charge to the provision for credit losses in the Consolidated Statements of Income. Subsequent changes in the ALLL related to PCD and non-PCD loans are recognized in the provision for credit losses. The non-credit discount or premium related to PCD loans, and the fair value mark on non-PCD loans, is amortized or accreted to interest income over the contractual life of the loans using the effective interest method for amortizing loans, and using a straight-line approach for interest-only loans and loans with revolving privileges. In the event of prepayment, unamortized discounts or premiums are recognized in interest income. TDRs Modifications to a borrower's debt agreement are considered TDRs if a concession is granted for economic or legal reasons related to a borrower's financial difficulties that otherwise would not be considered. TDRs are undertaken in order to improve the likelihood of recovery on the loan and may take the form of modifications made with the stated interest rate lower than the current market rate for new debt with similar risk, other modifications to the structure of the loan that fall outside of normal underwriting policies and procedures, or in certain limited circumstances, forgiveness of principal or interest. A restructuring that results in only a delay in payments that is insignificant is not considered an economic concession. In accordance with the CARES Act, Truist implemented loan modification programs in response to the COVID-19 pandemic in order to provide borrowers with flexibility with respect to repayment terms. These loan modifications are not considered TDRs to the extent that the borrower was impacted by the COVID-19 pandemic and was less than 30 days past due at December 31, 2019, or in certain circumstances, at the time that the COVID-19 loan modification program was implemented, unless the loan was previously classified as a TDR. TDRs can remain nonperforming, move to nonperforming, or continue on performing status, depending on the individual facts and circumstances of the borrower and an evaluation as to whether the borrower will be able to repay the loan based on the modified terms. The evaluation of the borrower's ability to repay the loan is based on a current, well-documented credit analysis. In circumstances where the TDR involves charging off a portion of the loan balance, Truist classifies these TDRs as nonperforming. The decision to maintain a commercial TDR on performing status is based on a current, well documented credit evaluation of the borrower's financial condition and prospects for repayment under the modified terms. This evaluation includes consideration of the borrower's current capacity to pay, which among other things may include a review of the borrower's current financial statements, an analysis of cash flow available to pay debt obligations, and an evaluation of secondary sources of payment from the borrower and any guarantors. This evaluation also includes an evaluation of the borrower's current willingness to pay, which may include a review of past payment history, an evaluation of the borrower's willingness to provide information on a timely basis, and consideration of offers from the borrower to provide additional collateral or guarantor support. The credit evaluation may also include review of cash flow projections, consideration of the adequacy of collateral to cover all principal and interest and trends indicating improving profitability and collectability of receivables. The evaluation of mortgage and retail loans includes an evaluation of the client's debt-to-income ratio, credit report, property value, loan vintage, and certain other client-specific factors that impact their ability to make timely principal and interest payments on the loan. TDR classification may be removed due to the passage of time if the loan: (1) did not include a forgiveness of principal or interest, (2) has performed in accordance with the modified terms (generally a minimum of six months), (3) was reported as a TDR over a year-end reporting period, and (4) reflected an interest rate on the modified loan that was no less than a market rate at the date of modification. TDR classification may also be removed for an accruing loan upon the occurrence of a subsequent non-concessionary modification granted at market terms and within current underwriting guidelines. NPAs NPAs include NPLs and foreclosed property. Foreclosed property consists of real estate and other assets acquired as a result of clients' loan defaults. Truist's policies for placing loans on nonperforming status conform to guidelines prescribed by bank regulatory authorities. Truist classifies loans and leases as past due when the payment of principal and interest based upon contractual terms is greater than 30 days delinquent or if one payment is past due. Payment deferrals as a result of the COVID-19 pandemic do not result in a loan becoming past due. The following table summarizes the delinquency thresholds that are used in evaluating nonperforming classification and the timing of charge-offs: (number of days) Placed on Nonperforming (1) Charged-off Commercial: Commercial and industrial 90 (2) 90 (2) CRE 90 (2) 90 (2) Commercial construction 90 (2) 90 (2) Lease financing 90 (2) 90 (2) Consumer: Residential mortgage (3) 90 to 180 90 to 210 Residential home equity and direct (3) 90 to 120 90 to 180 Indirect auto (3) 90 120 Indirect other (3) 90 to 120 120 to 180 Student (4) NA 120 to 180 Credit card NA 90 to 180 (1) Loans may be returned to performing status when they become current as to both principal and interest and concern no longer exists as to the collectability of principal and interest, generally indicated by 180 days of sustained payment performance. (2) Or when it is probable that principal or interest is not fully collectible, whichever occurs first. (3) Depends on product type, loss mitigation status, status of the government guaranty, if applicable, and certain other product-specific factors. (4) Government guaranteed student loans are not placed on nonperforming status and are generally not charged-off regardless of delinquency status because collection of principal and interest is reasonably assured. When commercial loans are placed on nonperforming status, a charge-off is recorded, as applicable, to decrease the carrying value of such loans to the estimated recoverable amount. Consumer and credit card loans are subject to charge-off at a specified delinquency date consistent with regulatory guidelines. Certain past due loans may remain on performing status if management determines that it does not have concern over the collectability of principal and interest. Generally, when loans are placed on nonperforming status, accrued interest receivable is reversed against interest income in the current period and amortization of deferred loan fees and expenses for originated loans, and fair value marks for purchased loans, is suspended. For commercial loans and certain consumer loans, payments received for interest and lending fees thereafter are applied as a reduction to the remaining principal balance as long as concern exists as to the ultimate collection of the principal. Interest income on nonperforming loans is recognized after the principal has been reduced to zero. If and when borrowers demonstrate the ability to repay a loan classified as nonperforming in accordance with its contractual terms, the loan may be returned to performing status upon meeting all regulatory, accounting and internal policy requirements. Accrued interest is included in Other assets in the Consolidated Balance Sheets. Accrued interest receivable balances are not considered in connection with the ACL estimation process, as such amounts are generally reversed against interest income when the loan is placed in nonperforming status. Assets acquired as a result of foreclosure are subsequently carried at the lower of cost or net realizable value. Net realizable value equals fair value less estimated selling costs. Any excess of cost over net realizable value at the time of foreclosure is charged to the ALLL. NPAs are subject to periodic revaluations of the collateral underlying impaired loans and foreclosed real estate. The periodic revaluations are generally based on the appraised value of the property and may include additional liquidity adjustments based upon the expected retention period. Truist's policies require that valuations be updated at least annually and that upon foreclosure, the valuation must not be more than six months old, otherwise an update is required. Any subsequent changes in value as well as gains or losses from the disposition on these assets are recognized in Other noninterest expense in the Consolidated Statements of Income. For additional information on the Company’s loan and lease activities, see "Note 5. Loans and ACL.” ACL The ACL includes the ALLL and RUFC. The ACL represents management's best estimate of expected future credit losses related to loan and lease portfolios and off-balance sheet lending commitments at the balance sheet date. The ALLL is a valuation account that is deducted from or added to the loans’ amortized cost basis to present the net amount expected to be collected on loans. The entire amount of the ACL is available to absorb losses on any loan category or lending-related commitment. Loan or lease balances deemed to be uncollectible are charged off against the ALLL. Expected recoveries of amounts previously charged off are incorporated into the ALLL estimate, with such amounts capped at the aggregate of amounts previously charged off. Changes to the ACL are made by charges to the Provision for credit losses, which is reflected in the Consolidated Statements of Income. The RUFC is recorded in Other liabilities on the Consolidated Balance Sheets. Portfolio segments represent the level at which Truist develops and documents a systematic methodology to determine its ACL. Truist’s loan and lease portfolio consists of three portfolio segments; commercial, consumer and credit card. The expected credit loss models are generally developed one level below the portfolio segment level. In certain instances, loans are further disaggregated by similar risk characteristics, such as business sector, client type, funding type, type of collateral, whether loan payments are interest-only and whether interest rates are fixed or variable. Loans and leases that do not share similar risk characteristics and significant loans that are considered collateral-dependent are individually evaluated. For these loans, the ALLL is determined through review of data specific to the borrower and related collateral, if any. The commercial portfolio segment models use a risk rating approach to estimate the ALLL. The consumer and credit card models use a delinquency-based approach to estimate the ALLL. In addition to these quantitatively calculated components, the ALLL includes qualitatively calculated components. Truist maintains a collectively calculated ALLL for loans with similar risk characteristics. The collectively calculated ALLL is estimated using relevant available information from internal and external sources relating to past events, current conditions, and reasonable and supportable forecasts. Truist maintains quantitative models to forecast expected credit losses. The credit loss forecasting models use portfolio balances, macroeconomic scenarios, portfolio composition and loan attributes as the primary inputs. Historical loss experience provides the basis for the estimation of the ACL and includes periods covering complete economic cycles. The historical loss data is adjusted for loan and lease specific risk characteristics such as differences in environmental conditions. Expected losses are estimated through contractual maturity unless the borrower has a right to renew that is not cancellable or it is reasonably expected that the loan will be modified as a TDR. The Scenario Committee provides guidance, selection, and approval for enterprise-sanctioned macroeconomic scenarios, including the macroeconomic forecasts for use in the ACL process. Forecasted economic conditions are developed using third party macroeconomic scenarios adjusted based on management’s expectations over a reasonable and supportable forecast period of two years. Assumptions revert to long term historic averages gradually over a one year period. Macroeconomic factors used in estimating the expected losses vary by loan portfolio and include employment factors, estimated collateral values and market indicators as described by portfolio segment below. A qualitative allowance which incorporates management’s judgement is also included in the estimation of expected future loan and lease losses. This allowance is used to capture risks in the portfolio such as considerations with respect to the impact of current economic events, the outcomes of which are uncertain. These events may include, but are not limited to, political conditions, legislation that may directly or indirectly affect the banking industry and economic conditions affecting specific geographical areas and industries in which Truist conducts business. Expected credit losses for loans that do not share risk characteristics with other financial assets, or significant loans that are considered collateral-dependent, are calculated on an individual basis. Such estimates may be based on an evaluation of the fair value of the underlying collateral or in certain circumstances the present value of expected cash flows discounted at the loan's effective interest as described further below by portfolio segment. The methodology for determining the RUFC is inherently similar to that used to determine the funded component of the ALLL and is measured over the period there is a contractual obligation to extend credit that is not unconditionally cancellable. The RUFC is adjusted for factors specific to binding commitments, including the probability of funding and exposure at default. The ACL is monitored by the ACL Committee. The ACL Committee recommends adjustments where necessary based on portfolio performance and other items that may impact credit risk and approves the ACL estimate. The following provides a description of accounting policies, methodologies and credit quality indicators related to each of the portfolio segments: Commercial The majority of loans in the commercial lending portfolio are assigned risk ratings based on an assessment of conditions that affect the borrower's ability to meet contractual obligations under the loan agreement. This process includes reviewing borrowers' financial information, historical payment experience, credit documentation, public information, and other information specific to each borrower. Risk ratings are reviewed on an annual basis, or more frequently for many relationships based on the policy requirements regarding various risk characteristics. While this review is largely focused on the borrower's ability to repay the loan, Truist also considers the capacity and willingness of a loan's guarantors to support the loan as a secondary source of repayment. When a guarantor exhibits the documented capacity and willingness to support the loan, Truist may consider extending the loan maturity and/or temporarily deferring principal payments if the ultimate collection of both principal and interest is not in question. In these cases, Truist may determine the loan is not impaired due to the documented capacity and willingness of the guarantor to repay the loan. Loans are considered impaired when the borrower (or guarantor in certain circumstances) does not have the cash flow capacity or willingness to service the debt according to contractual terms, or it does not appear reasonable to assume that the borrower will continue to pay according to the contractual agreement. The following table summarizes risk ratings that Truist uses to monitor credit quality in its commercial portfolio: Risk Rating Description Pass Loans not considered to be problem credits Special Mention Loans that have a potential weakness deserving management's close attention Substandard Loans for which a well-defined weakness has been identified that may put full collection of contractual cash flows at risk Nonperforming Loans for which full collection of principal and interest is not considered probable Loans are generally pooled one level below the portfolio segment for the collectively calculated ALLL based on factors such as business sector, project and property type, line of business, collateral, loan type, obligor exposure, and risk grade or score. Commercial loss forecasting models are expected loss frameworks that use macroeconomic scenarios and current portfolio attributes as inputs. The models forecast probability of default, exposure at default and loss given default. The primary macroeconomic drivers for the commercial portfolios include unemployment, U.S. real GDP, corporate credit spreads, rental rates and property values. Truist's policy is to review and individually evaluate the reserve for all nonperforming lending relationships and TDRs with an outstanding balance of $5 million or more, as such lending relationships do not typically share similar risk characteristics with others. Truist has elected the collateral dependent practical expedient; therefore, individually evaluated reserves are based on current economic forecasts, the present value of expected cash flows discounted at the loan's effective interest rate or the value of collateral, which is generally based on appraisals, recent sales of foreclosed properties and/or relevant property-specific market information. Loans are considered collateral dependent where it is probable that Truist will be unable to collect principal and interest according to the contractual terms of the agreement and repayment is expected to be provided substantially by the sale or continued operation of the underlying collateral. Commercial loans are typically secured by real estate, business equipment, inventories and other types of collateral. Consumer and Credit Card The majority of the ALLL related to the consumer and credit card lending portfolios is calculated on a collective basis. Loans are pooled one level below the portfolio segment for the collectively calculated ALLL based on factors such as collateral, loan type, line of business and sales channel. Consumer portfolio models are expected loss frameworks that use macroeconomic scenarios and current portfolio attributes as inputs. The models forecast probability of default, exposure at default and loss given default. The primary macroeconomic drivers for the consumer portfolios include unemployment trends, home price indices and used car prices. Residential mortgages and revolving home equity lines of credit are generally collateralized by one-to-four-family residential real estate, typically have loan-to-collateral value ratios of 80% or less at origination, and are made to borrowers in good credit standing. The indirect auto and indirect other portfolios include secured indirect installment loans to consumers for the purchase of new and used automobiles, boats and recreational vehicles. The student loan portfolio is composed of securitized government-guaranteed student loans and certain private student loans originated by third parties. The government guarantee mitigates substantially all of the risk related to principal and interest repayment for this component of the portfolio. Private student loans are purchased from third-party originators with credit enhancements that partially mitigate the Company’s credit exposure. The credit card portfolio and other arrangements within the indirect other portfolio are generally unsecured and actively managed. Truist uses performing status to monitor credit quality in its consumer and credit card portfolios. Delinquency status is the primary factor considered in determining whether a loan should be classified as nonperforming. The ALLL for loans classified as a TDR is based on a discounted expected cash flow analyses and a combination of historical experience for TDRs and management judgment. Expected recoveries for consumer and credit card loans are included in the estimation of the ALLL based on historical experience, when a loan returns to accruing status, or when the fair market value of the collateral has increased. Changes in Accounting Principles and Effects of New Accounting Pronouncements Standard Description Effects on the Financial Statements Standards Adopted January 1, 2020 Credit Losses Replaces the incurred loss impairment methodology with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost are presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit deteriorated loans receive an allowance for expected credit losses. Any credit impairment on AFS debt securities for which the fair value is less than cost is recorded through an allowance for expected credit losses. The standard also requires expanded disclosures related to credit losses and asset quality. Truist adopted this standard using the modified retrospective approach. Simplifying the Test for Goodwill Impairment Simplifies the subsequent measurement of goodwill, by eliminating the second step from the goodwill impairment test. The amendments require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The standard requires an entity to recognize an impairment charge for the amount by which a reporting unit's carrying amount exceeds its fair value, with the loss limited to the total amount of goodwill allocated to that reporting unit. The standard must be applied on a prospective basis. The standard does not currently have an impact on the Company’s consolidated financial statements; however, if subsequent to adoption, the carrying amount of a reporting unit exceeds its respective fair value, the Company would be required to recognize an impairment charge for the amount that the carrying value exceeds the fair value up to the amount of the goodwill assigned to the reporting unit. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | Business Combinations Effective December 6, 2019, the Company completed its previously announced Merger with SunTrust. The Merger was accounted for as a business combination. Accordingly, the assets acquired and liabilities assumed were recorded at their fair values as of the Merger date. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. Fair value estimates related to the acquired assets and liabilities are subject to adjustment until all necessary information related to the valuation process has been received. Adjustments must be finalized within one year of the closing date of the Merger. The Company’s purchase price allocation is considered preliminary as certain estimates related to the acquired operating lease portfolio, certain leveraged leases, structured real estate investments and certain other assets are subject to continuing refinement. Immaterial amounts of the intangible assets recognized are deductible for income tax purposes. For additional information, see “Note 2. Business Combinations” of the Annual Report on Form 10-K for the year ended December 31, 2019. The following table sets forth a preliminary allocation of Merger consideration to the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed of SunTrust as of December 6, 2019: (Dollars in millions) UPB Fair Value Fair value of Merger consideration $ 33,547 Assets Cash and due from banks 1,621 Interest-bearing deposits with banks 4,668 Securities borrowed or purchased under resale agreements 1,191 Trading assets 5,710 AFS securities 30,986 LHFS 3,741 Loans and leases: Commercial and industrial $ 68,687 67,101 CRE 9,509 9,357 Commercial Construction 2,136 2,096 Commercial Leases 3,967 3,882 Mortgage Loans 28,191 27,180 Home Equity and Direct Lending 15,917 15,628 Indirect Auto 12,373 12,203 Indirect Other 4,678 4,445 Student Lending 6,867 6,657 Credit Card 2,518 2,500 PCI 3,652 3,126 Total loans and leases $ 158,495 154,175 Premises and equipment 1,575 CDI and other intangible assets 2,700 MSRs 1,605 Other assets 13,771 Total assets 221,743 Liabilities and Equity Deposits (170,633) Short-term borrowings (6,837) Long-term debt (19,457) Other liabilities (5,224) Total liabilities (202,151) Noncontrolling interest (108) Less: Net assets 19,484 Goodwill $ 14,063 For a description of the methods used to determine the fair values of significant assets and liabilities, see “Note 2. Business Combinations” of the Annual Report on Form 10-K for the year ended December 31, 2019. Branch Divestitures In connection with the Merger, on November 8, 2019, BB&T and SunTrust announced that, subject to closing and other customary closing conditions, First Horizon Bank, a wholly owned subsidiary of First Horizon National Corporation, entered into an agreement to acquire 30 branches located in North Carolina, Virginia and Georgia from SunTrust Bank, a wholly owned subsidiary of SunTrust, to satisfy regulatory requirements in connection with the Merger. There are approximately $400 million in loans and leases and $2.4 billion in deposits that will be divested as part of this transaction, which is expected to close in 2020. |
Securities Financing Activities
Securities Financing Activities | 3 Months Ended |
Mar. 31, 2020 | |
Offsetting [Abstract] | |
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure | Securities Financing Activities Securities purchased under resale agreements are primarily collateralized by U.S. government or agency securities and are carried at the amounts at which the securities will be subsequently sold, plus accrued interest. Securities borrowed are primarily collateralized by corporate securities. The Company borrows securities and purchases securities under agreements to resell as part of its securities financing activities. On the acquisition date of these securities, the Company and the related counterparty agree on the amount of collateral required to secure the principal amount loaned under these arrangements. The following table presents securities borrowed or purchased under resale agreements: (Dollars in millions) March 31, 2020 December 31, 2019 Securities purchased under resale agreements $ 1,295 $ 986 Securities borrowed 501 431 Total securities borrowed or purchased under resale agreements $ 1,796 $ 1,417 For securities sold under agreements to repurchase, the Company would be obligated to provide additional collateral in the event of a significant decline in fair value of the collateral pledged. This risk is managed by monitoring the liquidity and credit quality of the collateral, as well as the maturity profile of the transactions. Refer to "Note 13. Commitments and Contingencies" for additional information related to pledged securities. Securities sold under agreements to repurchase are accounted for as secured borrowings. The following table presents the Company’s related activity, by collateral type and remaining contractual maturity: March 31, 2020 December 31, 2019 (Dollars in millions) Overnight and Continuous Up to 30 days Total Overnight and Continuous Up to 30 days 30-90 days Total U.S. Treasury $ 230 $ — $ 230 $ 115 $ 35 $ — $ 150 GSE 171 4 175 87 37 — 124 Agency MBS - residential 575 145 720 928 41 100 1,069 Corporate and other debt securities 192 212 404 310 316 — 626 Total securities sold under agreements to repurchase $ 1,168 $ 361 $ 1,529 $ 1,440 $ 429 $ 100 $ 1,969 There were no securities financing transactions subject to legally enforceable master netting arrangements that were eligible for balance sheet netting for the periods presented. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Investment Securities The following tables summarize the Company's AFS securities: March 31, 2020 Amortized Cost Gross Unrealized Fair Value Gains Losses AFS securities: U.S. Treasury $ 2,272 $ 47 $ — $ 2,319 GSE 1,846 87 — 1,933 Agency MBS - residential 69,307 2,468 22 71,753 Agency MBS - commercial 1,489 31 1 1,519 States and political subdivisions 513 34 8 539 Non-agency MBS 185 127 14 298 Other 38 — 1 37 Total AFS securities $ 75,650 $ 2,794 $ 46 $ 78,398 December 31, 2019 Amortized Cost Gross Unrealized Fair Value Gains Losses AFS securities: U.S. Treasury $ 2,275 $ 7 $ 6 $ 2,276 GSE 1,847 34 — 1,881 Agency MBS - residential 67,983 411 158 68,236 Agency MBS - commercial 1,335 13 7 1,341 States and political subdivisions 557 34 6 585 Non-agency MBS 190 178 — 368 Other 40 — — 40 Total AFS securities $ 74,227 $ 677 $ 177 $ 74,727 Certain securities issued by FNMA and FHLMC exceeded 10% of shareholders' equity at March 31, 2020. The FNMA investments had total amortized cost and fair value of $15.4 billion and $15.9 billion, respectively. The FHLMC investments had total amortized cost and fair value of $11.3 billion and $11.7 billion, respectively. The amortized cost and estimated fair value of the securities portfolio by contractual maturity are shown in the following table. The expected life of MBS may differ from contractual maturities because borrowers may have the right to prepay their obligations with or without penalties. Amortized Cost Fair Value March 31, 2020 Due in one year or less Due after one year through five years Due after five years through ten years Due after ten years Total Due in one year or less Due after one year through five years Due after five years through ten years Due after ten years Total AFS securities: U.S. Treasury $ 1,381 $ 876 $ 15 $ — $ 2,272 $ 1,399 $ 903 $ 17 $ — $ 2,319 GSE — 1,769 — 77 1,846 — 1,853 — 80 1,933 Agency MBS - residential — 1 556 68,750 69,307 — 1 570 71,182 71,753 Agency MBS - commercial — 2 9 1,478 1,489 — 2 10 1,507 1,519 States and political subdivisions 39 114 151 209 513 39 116 163 221 539 Non-agency MBS — — — 185 185 — — — 298 298 Other 2 6 1 29 38 2 6 1 28 37 Total AFS securities $ 1,422 $ 2,768 $ 732 $ 70,728 $ 75,650 $ 1,440 $ 2,881 $ 761 $ 73,316 $ 78,398 The following tables present the fair values and gross unrealized losses of investments based on the length of time that individual securities have been in a continuous unrealized loss position: Less than 12 months 12 months or more Total March 31, 2020 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses AFS securities: GSE $ 3 $ — $ — $ — $ 3 $ — Agency MBS - residential 1,147 13 262 9 1,409 22 Agency MBS - commercial 66 — 35 1 101 1 States and political subdivisions 96 1 121 7 217 8 Non-agency MBS 42 14 — — 42 14 Other 36 1 — — 36 1 Total $ 1,390 $ 29 $ 418 $ 17 $ 1,808 $ 46 Less than 12 months 12 months or more Total December 31, 2019 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses AFS securities: U.S. Treasury $ 702 $ 6 $ — $ — $ 702 $ 6 GSE 6 — — — 6 — Agency MBS - residential 20,328 145 1,326 13 21,654 158 Agency MBS - commercial 545 5 124 2 669 7 States and political subdivisions 65 1 144 5 209 6 Total $ 21,646 $ 157 $ 1,594 $ 20 $ 23,240 $ 177 At March 31, 2020, no ACL was established for AFS securities. Substantially all of the unrealized losses on the securities portfolio were the result of changes in market interest rates compared to the date the securities were acquired rather than the credit quality of the issuers or underlying loans. The majority of the unrealized loss on states and political subdivisions securities was the result of fair value hedge basis adjustments that are a component of amortized cost. The unrealized loss on non-agency MBS was due to a wider discount relative to previous periods on the Re-REMIC tranches to the underlying securities rather than credit. At March 31, 2020, the Company did not intend to sell these securities nor was it more-likely-than-not that the Company would be required to sell these securities before their anticipated recovery or maturity. The following table presents gross securities gains and losses recognized in earnings: Three Months Ended March 31, 2020 2019 Gross realized gains $ — $ 22 Gross realized losses (2) (22) Securities gains (losses), net $ (2) $ — |
Loans and ACL
Loans and ACL | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans and ACL | Loans and ACL The following tables present loans and leases HFI by aging category. Government guaranteed loans are not placed on nonaccrual status regardless of delinquency because collection of principal and interest is reasonably assured. Accruing March 31, 2020 Current 30-89 Days Past Due 90 Days Or More Past Due Nonperforming Total Commercial: Commercial and industrial $ 148,451 $ 262 $ 5 $ 443 $ 149,161 CRE 27,505 8 1 18 27,532 Commercial construction 6,612 16 — 2 6,630 Lease financing 5,949 8 — 27 5,984 Consumer: Residential mortgage 51,559 679 610 248 53,096 Residential home equity and direct 27,293 156 10 170 27,629 Indirect auto 24,489 521 11 125 25,146 Indirect other 10,903 74 2 1 10,980 Student 6,110 593 1,068 — 7,771 Credit card 5,202 57 41 — 5,300 Total $ 314,073 $ 2,374 $ 1,748 $ 1,034 $ 319,229 Accruing December 31, 2019 Current 30-89 Days Past Due 90 Days Or More Past Due Nonperforming Total Commercial: Commercial and industrial $ 129,873 $ 94 $ 1 $ 212 $ 130,180 CRE 26,817 5 — 10 26,832 Commercial construction 6,204 1 — — 6,205 Lease financing 6,112 2 — 8 6,122 Consumer: Residential mortgage 50,975 498 543 55 52,071 Residential home equity and direct 26,846 122 9 67 27,044 Indirect auto 23,771 560 11 100 24,442 Indirect other 11,011 85 2 2 11,100 Student 5,905 650 188 — 6,743 Credit card 5,541 56 22 — 5,619 PCI 2,126 140 1,218 — 3,484 Total $ 295,181 $ 2,213 $ 1,994 $ 454 $ 299,842 The following table presents the amortized cost basis of loans by origination year and credit quality indicator: March 31, 2020 Amortized Cost Basis by Origination Year Revolving Credit Loans Converted to Term Other (1) 2020 2019 2018 2017 2016 Prior Total Commercial: Commercial and industrial: Pass $ 7,366 $ 25,371 $ 15,536 $ 9,849 $ 6,598 $ 14,904 $ 66,420 $ 11 $ (843) $ 145,212 Special mention 93 170 161 66 143 101 1,010 — — 1,744 Substandard 53 216 126 74 87 296 926 1 (17) 1,762 Nonperforming 3 52 94 34 48 85 97 1 29 443 Total 7,515 25,809 15,917 10,023 6,876 15,386 68,453 13 (831) 149,161 CRE: Pass 2,013 8,252 6,166 3,479 2,262 4,066 713 — (92) 26,859 Special mention 1 44 102 12 65 115 — — — 339 Substandard 17 94 23 39 29 114 — — — 316 Nonperforming — 2 4 3 — 8 1 — — 18 Total 2,031 8,392 6,295 3,533 2,356 4,303 714 — (92) 27,532 Commercial construction: Pass 342 1,921 2,164 745 153 381 729 1 4 6,440 Special mention — 5 37 — — — — — — 42 Substandard 3 5 35 56 40 4 3 — — 146 Nonperforming — 1 — 1 — — — — — 2 Total 345 1,932 2,236 802 193 385 732 1 4 6,630 Lease financing: Pass 255 1,864 1,154 1,056 381 1,221 — — (44) 5,887 Special mention — 8 3 3 3 — — — — 17 Substandard — 3 — 15 2 33 — — — 53 Nonperforming — — 1 15 2 9 — — — 27 Total 255 1,875 1,158 1,089 388 1,263 — — (44) 5,984 Consumer: Residential mortgage: Performing 1,800 8,480 5,595 6,168 6,985 23,587 — — 233 52,848 Nonperforming — 4 8 7 8 221 — — — 248 Total 1,800 8,484 5,603 6,175 6,993 23,808 — — 233 53,096 Residential home equity and direct: Performing 1,296 4,436 2,164 834 420 789 15,553 1,874 93 27,459 Nonperforming — 4 4 1 1 8 63 94 (5) 170 Total 1,296 4,440 2,168 835 421 797 15,616 1,968 88 27,629 Indirect auto: Performing 2,799 9,725 5,548 3,571 2,070 1,166 — — 142 25,021 Nonperforming — 32 39 29 19 19 — — (13) 125 Total 2,799 9,757 5,587 3,600 2,089 1,185 — — 129 25,146 Indirect other: Performing 1,027 4,319 2,587 1,294 676 1,009 — — 67 10,979 Nonperforming — — — — — 1 — — — 1 Total 1,027 4,319 2,587 1,294 676 1,010 — — 67 10,980 Student: Performing 21 122 110 91 75 7,357 — — (5) 7,771 Nonperforming — — — — — — — — — — Total 21 122 110 91 75 7,357 — — (5) 7,771 Credit card — — — — — — 5,268 35 (3) 5,300 Total $ 17,089 $ 65,130 $ 41,661 $ 27,442 $ 20,067 $ 55,494 $ 90,783 $ 2,017 $ (454) $ 319,229 (1) Includes certain deferred fees and costs, unapplied payments and other adjustments. The following table presents the carrying amount of loans by risk rating and performing status. Student loans are excluded as there is nominal risk of credit loss due to government guarantees or other credit enhancements. PCI loans were excluded because their related ALLL is determined by loan pool performance, and credit card loans were excluded as these loans are charged-off rather than reclassifying these loans to nonperforming: December 31, 2019 (Dollars in millions) Commercial & Industrial CRE Commercial Construction Lease Financing Commercial: Pass $ 127,229 $ 26,393 $ 6,037 $ 6,039 Special mention 1,264 145 37 19 Substandard 1,475 284 131 56 Nonperforming 212 10 — 8 Total $ 130,180 $ 26,832 $ 6,205 $ 6,122 December 31, 2019 Residential Mortgage Residential home equity and direct Indirect auto Indirect Other Consumer: Performing $ 52,016 $ 26,977 $ 24,342 $ 11,098 Nonperforming 55 67 100 2 Total $ 52,071 $ 27,044 $ 24,442 $ 11,100 ACL The following tables present activity in the ACL: (Dollars in millions) Balance at Jan 1, 2019 Charge-Offs Recoveries Provision (Benefit) Other Balance at Mar 31, 2019 Commercial: Commercial and industrial $ 546 $ (17) $ 6 $ 13 $ — $ 548 CRE 142 (8) — 18 — 152 Commercial construction 48 — 1 (5) — 44 Lease financing 11 (1) — 1 — 11 Consumer: Residential mortgage 232 (5) 1 (3) — 225 Residential home equity and direct 104 (20) 6 13 — 103 Indirect auto 298 (92) 13 81 — 300 Indirect other 58 (17) 4 13 — 58 Credit card 110 (24) 6 20 — 112 PCI 9 — — (1) — 8 ALLL 1,558 (184) 37 150 — 1,561 RUFC 93 — — 5 — 98 ACL $ 1,651 $ (184) $ 37 $ 155 $ — $ 1,659 (Dollars in millions) Balance at Jan 1, 2020 (1) Charge-Offs Recoveries Provision (Benefit) Other (2) Balance at Mar 31, 2020 Commercial: Commercial and industrial $ 560 $ (39) $ 17 $ 371 $ 904 1,813 CRE 150 (1) — 68 82 299 Commercial construction 52 (3) 1 22 16 88 Lease financing 10 (2) — (23) 94 79 Consumer: Residential mortgage 176 (11) 2 (4) 264 427 Residential home equity and direct 107 (68) 15 102 451 607 Indirect auto 304 (142) 23 189 818 1,192 Indirect other 60 (18) 7 12 152 213 Student — (8) — 34 120 146 Credit card 122 (53) 8 95 175 347 PCI 8 — — — (8) — ALLL 1,549 (345) 73 866 3,068 5,211 RUFC 340 — — 27 33 400 ACL $ 1,889 $ (345) $ 73 $ 893 $ 3,101 $ 5,611 (1) Balance is prior to the adoption of CECL. (2) Other activity includes the adoption of CECL, the ALLL for PCD acquisitions and other activity. The adoption of CECL increased the ALLL $3.1 billion. The following discussion of the changes in the factors that influenced Truist’s ACL estimate and the reasons for those changes excludes the impact at adoption and other ACL activity. The commercial ALLL increased $411 million primarily driven by a more pessimistic outlook with respect to future economic conditions driven by the COVID-19 pandemic and specific consideration of the risks associated with exposures to certain industries, including oil and gas, hospitality, and airlines, as well as lending to small businesses. Loan growth, which was primarily driven by draws on existing credit facilities, was also a significant contributor to the increase in the allowance for the quarter. The consumer ALLL increased $130 million, which reflects the impact of the more pessimistic outlook described above. The increase was also attributable to higher expected losses in the nonprime auto lending portfolio, in part the result of a decline in used auto pricing, and certain unsecured lending portfolios. The $50 million increase in ALLL for credit card reflected risks associated with COVID-19 and the deteriorating economic outlook. The RUFC decreased $9 million after giving consideration to the impact of CECL at adoption and certain other adjustments related to the sale of unfunded commitments to third-parties. The net decrease in the RUFC reflects lower levels of unfunded commitments that resulted from draws on existing credit facilities that occurred during the quarter. Truist’s ACL estimate represents management’s best estimate of expected credit losses related to the loan and lease portfolio at the balance sheet date. This estimate incorporates both quantitatively modeled output, as well as qualitative components that represent expected losses not otherwise captured by the models. The quantitative models have been designed to estimate losses using macro-economic forecasts over a reasonable and supportable forecast period, which management has determined to be two years, followed by a reversion to long-term historical loss conditions over a one-year period. These macro-economic forecasts include a number of key economic variables utilized in loss forecasting that include, but are not limited to, the US unemployment rate, US unemployment claims rate, US real GDP, Home Price Index, US Central Bank Policy Interest Rate and Manheim Index. The primary economic forecast incorporated into the quantitative model output is a third-party consensus baseline forecast that is adjusted to incorporate Truist’s interest rate outlook. Since this forecast reflects conditions prior to quarter end, management evaluates whether additional economic forecasts are necessary to appropriately estimate expected losses, with any resulting adjustments being considered in connection with the qualitative component of the ACL. The uncertainty related to the COVID-19 pandemic prompted frequent revisions to macro-economic forecasts through the end of the quarter. Management considered multiple macro-economic forecasts that reflected a range of possible outcomes, including a third-party baseline estimate prepared close to quarter end, in order to capture the changing severity of the pandemic and expectations related to the economic disruption associated with the pandemic. The economic assumptions shaping the ACL estimate at March 31, 2020 generally consisted of a sharp economic decline, including a very sharp initial GDP contraction and sharp home price decline, followed by a slow recovery through 2021. The forecast also includes a sharp and generally sustained decline in used car values and a significant spike in unemployment followed by a sustained high-single-digit level of unemployment through the two-year reasonable and supportable period. Quantitative models have certain limitations with respect to estimating expected losses in times of rapidly changing macro-economic forecasts. As a result, management believes that the qualitative component of the ACL, which incorporates management’s expert judgment related to expected future credit losses, will continue to represent a significant portion of the ACL for the foreseeable future. The following table provides a summary of purchased student loans with credit deterioration at acquisition: Three Months Ended March 31, 2020 Par value $ 242 ALLL at acquisition (3) Non-credit premium (discount) 1 Purchase price $ 240 The following table provides a summary of nonperforming loans, excluding LHFS. Interest income recognized on nonperforming loans HFI was $8 million for the three months ended March 31, 2020. Recorded Investment Three Months Ended March 31, 2020 Without an ALLL With an ALLL Commercial: Commercial and industrial $ 136 $ 307 CRE 1 17 Commercial construction — 2 Lease financing 15 12 Consumer: Residential mortgage 3 245 Residential home equity and direct 1 169 Indirect auto — 125 Indirect other — 1 Total $ 156 $ 878 The following table sets forth certain information regarding impaired loans, excluding PCI and LHFS, that were individually evaluated for impairment. This table excludes guaranteed student loans and guaranteed residential mortgages for which there was nominal risk of principal loss due to the government guarantee or other credit enhancements. UPB Recorded Investment Related ALLL Average Recorded Investment Interest Income Recognized As of / For The Year Ended December 31, 2019 Without an ALLL With an ALLL Commercial: Commercial and industrial $ 339 $ 124 $ 167 $ 20 $ 298 $ 6 CRE 29 3 26 2 71 1 Commercial construction 39 — 38 7 5 — Lease financing 18 7 2 — 2 — Consumer: Residential mortgage 650 92 527 42 799 34 Residential home equity and direct 76 24 37 5 65 3 Indirect auto 367 9 349 64 334 53 Indirect other 5 — 5 1 4 — Credit card 31 — 31 12 28 1 Total $ 1,554 $ 259 $ 1,182 $ 153 $ 1,606 $ 98 TDRs The following table presents a summary of TDRs: (Dollars in millions) Mar 31, 2020 Dec 31, 2019 Performing TDRs: Commercial: Commercial and industrial $ 65 $ 47 CRE 7 6 Commercial construction 36 37 Lease financing 1 — Consumer: Residential mortgage 513 470 Residential home equity and direct 66 51 Indirect auto 350 333 Indirect other 5 5 Student 1 — Credit card 35 31 Total performing TDRs 1,079 980 Nonperforming TDRs 121 82 Total TDRs $ 1,200 $ 1,062 ALLL attributable to TDRs $ 159 $ 132 The primary reason loan modifications were classified as TDRs is summarized below. Balances represent the recorded investment at the end of the quarter in which the modification was made. Rate modifications consist of TDRs made with below market interest rates, including those that also have modifications of loan structures. As of / for the Three Months Ended March 31, 2020 Type of Modification Prior Quarter Loan Balance ALLL at Period End Rate Structure Newly designated TDRs: Commercial: Commercial and industrial $ 28 $ 3 $ 36 $ 2 CRE 1 — 1 — Lease financing 1 — 1 — Consumer: Residential mortgage 77 15 94 5 Residential home equity and direct 17 5 23 1 Indirect auto 56 14 73 5 Indirect other 1 — 1 — Student — 1 1 — Credit card 10 — 10 3 Re-modification of previously designated TDRs 18 1 As of / for the Three Months Ended March 31, 2019 Type of Modification Prior Quarter Loan Balance ALLL at Period End Rate Structure Newly designated TDRs: Commercial: Commercial and industrial $ 26 $ 3 $ 19 $ 3 CRE 1 — 3 — Consumer: Residential mortgage 73 8 75 6 Residential home equity and direct 3 1 3 1 Indirect auto 47 1 51 11 Indirect other 1 — 1 — Credit card 6 — 6 3 Re-modification of previously designated TDRs 23 5 Charge-offs and forgiveness of principal and interest for TDRs were immaterial for all periods presented. The re-default balance for modifications that had been classified as TDRs during the previous 12 months that experienced a payment default was $21 million and $18 million for the three months ended March 31, 2020 and 2019, respectively. Payment default is defined as movement of the TDR to nonperforming status, foreclosure or charge-off, whichever occurs first. NPLs and Foreclosed Property The following table presents a summary of nonperforming assets and residential mortgage loans in the process of foreclosure: (Dollars in millions) Mar 31, 2020 Dec 31, 2019 Nonperforming loans and leases HFI (1) $ 1,034 $ 454 Nonperforming LHFS 41 107 Foreclosed real estate 63 82 Other foreclosed property 39 41 Total nonperforming assets $ 1,177 $ 684 Residential mortgage loans in the process of foreclosure $ 300 $ 409 (1) Beginning January 1, 2020, nonperforming loans and leases include certain assets previously classified as PCI. Unearned Income, Discounts and Net Deferred Loan Fees and Costs The following table presents additional information about loans and leases: (Dollars in millions) Mar 31, 2020 Dec 31, 2019 Unearned income, discounts and net deferred loan fees and costs, excluding PCI $ 3,140 $ 4,069 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill attributable to operating segments are reflected in the table below. The adjustments for 2020 include measurement period adjustments to the fair value of acquired assets and liabilities and the reallocation net assets to the underlying reporting units. Adjustments to the fair value of acquired assets include a $193 million reduction in the fair value mark for loans and leases, and a $165 million increase in CDI and other intangibles, each recorded to goodwill net of deferred taxes. Adjustments to the reallocation of net assets to Truist's reporting units include updates to the estimated operating results, and the finalization of corporate expense allocations based on the various drivers that Truist applies in allocating such costs. Refer to “Note 2. Business Combinations” and “Note 17. Operating Segments” for additional information. (Dollars in millions) CB&W C&CB IH Total Goodwill, January 1, 2019 $ 3,906 $ 3,938 $ 1,974 $ 9,818 Mergers and acquisitions 10,134 4,187 21 14,342 Adjustments — — (6) (6) Goodwill, December 31, 2019 $ 14,040 $ 8,125 $ 1,989 $ 24,154 Mergers and acquisitions — — 31 31 Adjustments 1,483 (1,741) — (258) Goodwill, March 31, 2020 $ 15,523 $ 6,384 $ 2,020 $ 23,927 The following table, which excludes fully amortized intangibles, presents information for identifiable intangible assets: Weighted Average Remaining Amortization Period March 31, 2020 December 31, 2019 (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount CDI 9.3 years $ 2,599 $ (485) $ 2,114 $ 2,474 $ (365) $ 2,109 Other, primarily client relationship intangibles 11.2 1,873 (819) 1,054 1,808 (775) 1,033 Total $ 4,472 $ (1,304) $ 3,168 $ 4,282 $ (1,140) $ 3,142 Truist performed a qualitative assessment of current events and circumstances, including the effects of the COVID-19 pandemic, concluding that it was not more-likely-than-not that the fair value of one or more of its reporting units is below its respective carrying amount as of March 31, 2020, and therefore no triggering event occurred that required a quantitative goodwill impairment test. |
Loan Servicing
Loan Servicing | 3 Months Ended |
Mar. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Loan Servicing | Loan Servicing The Company acquires servicing rights and retains servicing rights for certain of its sales or securitizations of residential mortgages and commercial loans. Servicing rights on residential and commercial mortgages are capitalized by the Company as MSRs on the Consolidated Balance Sheets. Income earned by the Company on its residential MSRs is derived primarily from contractually specified mortgage servicing fees and late fees, net of curtailment costs. Income earned by the Company on its commercial mortgage servicing rights is derived primarily from contractually specified servicing fees and other ancillary fees. Residential Mortgage Activities The following tables summarize residential mortgage servicing activities: (Dollars in millions) Mar 31, 2020 Dec 31, 2019 UPB of residential mortgage loan servicing portfolio $ 276,304 $ 279,558 UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate 219,979 219,347 Mortgage loans sold with recourse 395 371 Maximum recourse exposure from mortgage loans sold with recourse liability 241 212 Indemnification, recourse and repurchase reserves 66 44 As of / For the Three Months Ended March 31, 2020 2019 UPB of residential mortgage loans sold from LHFS $ 12,669 $ 1,300 Pre-tax gains recognized on mortgage loans sold and held for sale 188 17 Servicing fees recognized from mortgage loans serviced for others 169 61 Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others 0.31 % 0.28 % Weighted average interest rate on mortgage loans serviced for others 4.02 4.06 The following table presents a roll forward of the carrying value of residential MSRs recorded at fair value: Three Months Ended March 31, 2020 2019 Residential MSRs, carrying value, January 1 $ 2,371 $ 957 Other additions 178 15 Change in fair value due to changes in valuation inputs or assumptions: Prepayment speeds (522) (55) OAS 45 4 Servicing costs — — Realization of expected net servicing cash flows, passage of time and other (148) (33) Residential MSRs, carrying value, March 31 $ 1,924 $ 888 The sensitivity of the fair value of the Company's residential MSRs to changes in key assumptions is presented in the following table: March 31, 2020 December 31, 2019 Range Weighted Average Range Weighted Average (Dollars in millions) Min Max Min Max Prepayment speed 9.4 % 19.0 % 11.2 % 8.4 % 18.6 % 9.6 % Effect on fair value of a 10% increase $ (104) $ (102) Effect on fair value of a 20% increase (198) (195) OAS 2.8 % 12.8 % 5.9 % 4.0 % 13.5 % 6.7 % Effect on fair value of a 10% increase $ (39) $ (54) Effect on fair value of a 20% increase (76) (106) Composition of loans serviced for others: Fixed-rate residential mortgage loans 98.6 % 98.5 % Adjustable-rate residential mortgage loans 1.4 1.5 Total 100.0 % 100.0 % Weighted average life 4.3 years 5.4 years The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, 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, in the above table, the effect of an adverse variation in one 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 magnify or counteract the effect of the change. See "Note 14. Fair Value Disclosures" for additional information on the valuation techniques used. Commercial Mortgage Activities The following table summarizes commercial mortgage servicing activities for the periods presented: (Dollars in millions) Mar 31, 2020 Dec 31, 2019 UPB of CRE mortgages serviced for others $ 71,391 $ 70,404 CRE mortgages serviced for others covered by recourse provisions 8,592 8,676 Maximum recourse exposure from CRE mortgages sold with recourse liability 2,490 2,479 Recorded reserves related to recourse exposure 18 13 CRE mortgages originated during the year-to-date period 1,271 8,062 Commercial MSRs at fair value 226 247 |
Other Assets and Liabilites
Other Assets and Liabilites | 3 Months Ended |
Mar. 31, 2020 | |
Other Assets [Abstract] | |
Other Assets Disclosure | Other Assets and Liabilities Lessee Operating and Finance Leases The Company leases certain assets, consisting primarily of real estate, and assesses at contract inception whether a contract is, or contains, a lease. At March 31, 2020, the Company had an immaterial amount of operating leases that had not yet commenced. The following table presents additional information on leases, and excludes assets related to the lease financing businesses: March 31, 2020 Operating Leases Finance Leases ROU assets $ 1,773 $ 43 Maturities of lease liabilities: 2020 $ 334 $ 10 2021 382 11 2022 337 11 2023 284 7 2024 237 5 2025 78 1 Thereafter 671 12 Total lease payments 2,323 57 Less: imputed interest 244 6 Total lease liabilities $ 2,079 $ 51 Weighted average remaining term 7.5 years 7.4 years Weighted average discount rate 2.6 % 4.1 % Three Months Ended March 31, 2020 2019 Operating lease costs $ 96 $ 49 Lessor Operating Leases The Company’s two primary lessor businesses are equipment financing and structured real estate with income recorded in Operating lease income on the Consolidated Statements of Income. The following table presents a summary of assets under operating leases and activity related to assets under operating leases. This table excludes subleases on assets included in premises and equipment. (Dollars in millions) Mar 31, 2020 Dec 31, 2019 Assets held under operating leases (1) $ 2,126 $ 2,236 Accumulated depreciation (443) (391) Net $ 1,683 $ 1,845 (1) Includes certain land parcels subject to operating leases that have indefinite lives. The residual value of assets no longer under operating leases was immaterial. Bank-Owned Life Insurance Bank-owned life insurance consists of life insurance policies held on certain employees for which the Company is the beneficiary. These policies provide the Company an efficient form of funding for retirement and other employee benefits costs. The carrying value of bank-owned life insurance was $6.4 billion at March 31, 2020 and December 31, 2019. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Common Stock Dividends The following table presents the dividends declared related to common stock. For information related to preferred stock dividends, see Note12. Shareholders’ Equity of the Annual Report on Form 10-K for the year ended December 31, 2019. Three Months Ended March 31, 2020 2019 Cash dividends declared per share $ 0.450 $ 0.405 Preferred Stock |
AOCI
AOCI | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
AOCI | AOCI AOCI includes the after-tax change in unrecognized net costs related to defined benefit pension and OPEB plans as well as unrealized gains and losses on cash flow hedges and AFS securities. Three Months Ended March 31, 2020 and 2019 Pension and OPEB Costs Cash Flow Hedges AFS Securities Other, net Total AOCI balance, January 1, 2019 $ (1,164) $ (31) $ (500) $ (20) $ (1,715) OCI before reclassifications, net of tax — (30) 314 2 286 Amounts reclassified from AOCI: Before tax 23 (5) (6) — 12 Tax effect 6 (1) (1) — 4 Amounts reclassified, net of tax 17 (4) (5) — 8 Total OCI, net of tax 17 (34) 309 2 294 AOCI balance, March 31, 2019 $ (1,147) $ (65) $ (191) $ (18) $ (1,421) AOCI balance, January 1, 2020 $ (1,122) $ (101) $ 380 $ (1) $ (844) OCI before reclassifications, net of tax — — 1,690 (5) 1,685 Amounts reclassified from AOCI: Before tax 20 15 41 — 76 Tax effect 5 4 10 — 19 Amounts reclassified, net of tax 15 11 31 — 57 Total OCI, net of tax 15 11 1,721 (5) 1,742 AOCI balance, March 31, 2020 $ (1,107) $ (90) $ 2,101 $ (6) $ 898 Primary income statement location of amounts reclassified from AOCI Other expense Net interest income Net interest income Net interest income |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesFor the three months ended March 31, 2020 and 2019, the provision for income taxes was $224 million and $177 million, respectively, representing effective tax rates of 17.4% and 18.2%, respectively. The lower effective tax rate for the three months ended March 31, 2020 was primarily due to higher income tax credits earned in the current year. The Company calculated the provision for income taxes by applying the estimated annual effective tax rate to year-to-date pre-tax income and adjusting for discrete items that occurred during the period. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The components of net periodic benefit cost for defined benefit pension plans are summarized in the following table: Three Months Ended March 31, Location 2020 2019 Service cost Personnel expense $ 118 $ 54 Interest cost Other expense 78 57 Estimated return on plan assets Other expense (216) (113) Amortization and other Other expense 19 25 Net periodic benefit cost $ (1) $ 23 Truist makes contributions to the qualified pension plans in amounts between the minimum required for funding and the maximum deductible for federal income tax purposes. Discretionary contributions totaling $305 million were made to the Truist pension plan during the three months ended March 31, 2020. There are no required contributions for the remainder of 2020, though Truist may elect to make additional discretionary contributions. |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Tax Credit and Certain Equity Investments Truist utilizes a variety of financial instruments to meet the financing needs of clients and to reduce exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, letters of credit and financial guarantees and derivatives. Truist also has commitments to fund certain affordable housing investments and contingent liabilities related to certain sold loans. The following table summarizes certain tax credit, private equity, and certain other equity method investments. (Dollars in millions) Balance Sheet Location Mar 31, 2020 Dec 31, 2019 Investments in affordable housing projects: Carrying amount Other assets $ 3,776 $ 3,684 Amount of future funding commitments included in carrying amount Other liabilities 1,154 1,271 Lending exposure 540 647 Renewable energy investments: Carrying amount Other assets 107 81 Amount of future funding commitments not included in carrying amount N/A 211 246 Private equity and certain other equity method investments: Carrying amount Other assets 1,597 1,556 Amount of future funding commitments not included in carrying amount N/A 378 331 The following table presents a summary of tax credits and amortization associated with the Company's tax credit investment activity: Three Months Ended March 31, Income Statement Location 2020 2019 Tax credits: Investments in affordable housing projects Provision for income taxes $ 117 $ 79 Other community development investments Provision for income taxes 22 — Amortization and other changes in carrying amount: Investments in affordable housing projects Provision for income taxes $ 114 $ 69 Other community development investments Other noninterest income 20 — Renewable energy investments Other noninterest income — — Letters of Credit and Financial Guarantees In the normal course of business, Truist utilizes certain financial instruments to meet the financing needs of clients and to mitigate exposure to risks. Such financial instruments include commitments to extend credit and certain contractual agreements, including standby letters of credit and financial guarantee arrangements. The following is a summary of selected notional amounts of off-balance sheet financial instruments: (Dollars in millions) March 31, 2020 December 31, 2019 Commitments to extend, originate or purchase credit $ 159,924 $ 177,598 Residential mortgage loans sold with recourse 395 371 CRE mortgages serviced for others covered by recourse provisions 8,592 8,676 Letters of credit 5,050 5,181 Total Return Swaps The Company facilitates matched book TRS transactions on behalf of clients, whereby a VIE purchases reference assets identified by a client and the Company enters into a TRS with the VIE, with a mirror-image TRS facing the client. The TRS contract between the VIE and the Company hedges the Company's exposure to the TRS contract with its third party client. The Company provides senior financing to the VIE in the form of demand notes to fund the purchase of the reference assets. The TRS contracts pass through interest and other cash flows on the reference assets to the third party clients, along with exposing those clients to decreases in value on the assets and providing them with the rights to appreciation on the assets. The terms of the TRS contracts require the third parties to post initial margin collateral, as well as ongoing margin as the fair values of the underlying reference assets change. The Company concluded that the VIEs should be consolidated because the Company has (i) the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses, and the right to receive benefits, that could potentially be significant. At March 31, 2020, the Company’s Consolidated Balance Sheet reflected $2.1 billion of assets and $153 million of other liabilities of the VIEs. At December 31, 2019, the Company’s Consolidated Balance Sheet reflected $2.7 billion of assets and $116 million of other liabilities of the VIEs. Assets at March 31, 2020 and December 31, 2019 include $1.4 billion and $2.6 billion in trading loans, respectively. The activities of the VIEs are restricted to buying and selling the reference assets and the risks/benefits of any such assets owned by the VIEs are passed to the third party clients via the TRS contracts. For additional information on the Company’s TRS contracts and its involvement with these VIEs, see "Note 15. Derivative Financial Instruments.” Other Commitments The Company entered into an agreement to purchase its new headquarters building in Charlotte, North Carolina for $456 million. The purchase closed in March 2020. Pledged Assets Certain assets were pledged to secure municipal deposits, securities sold under agreements to repurchase, certain derivative agreements, and borrowings or borrowing capacity, as well as for other purposes as required or permitted by law. Assets pledged to the FHLB and FRB are subject to applicable asset discounts when determining borrowing capacity. The Company obtains secured financing and letters of credit from the FRB and FHLB, the latter of which is used to secure various client deposits, including public fund relationships. Excluding assets related to employee benefit plans, the majority of the agreements governing the pledged assets do not permit the other party to sell or repledge the collateral. Additional assets were pledged to the FRB of Richmond in the first quarter of 2020. The following table provides the total carrying amount of pledged assets by asset type. (Dollars in millions) Mar 31, 2020 Dec 31, 2019 Pledged securities $ 10,404 $ 11,283 Pledged loans: FRB 71,786 30,238 FHLB 79,009 80,816 Unused borrowing capacity: FRB 49,652 21,169 FHLB 21,677 37,303 Litigation and Regulatory Matters Truist and/or its subsidiaries are routinely parties to numerous legal proceedings, including private, civil litigations and regulatory investigations, arising from the ordinary conduct of its regular business activities. The matters range from individual actions involving a single plaintiff to class action lawsuits with multiple class members and can involve claims for substantial amounts. Investigations involve both formal and informal proceedings, by both governmental agencies and self-regulatory organizations. These legal proceedings are at varying stages of adjudication, arbitration or investigation and may consist of a variety of claims, including common law tort and contract claims and statutory antitrust, securities and consumer protection claims, and the ultimate resolution of any proceedings is uncertain and inherently difficult to predict. It is possible that the ultimate resolution of these matters, if unfavorable, may be material to the consolidated financial position, consolidated results of operations, or consolidated cash flows of Truist. In accordance with the provisions of U.S. GAAP for contingencies, Truist establishes accruals for legal matters when potential losses associated with the actions become probable and the amount of loss can be reasonably estimated. There is no assurance that the ultimate resolution of these matters will not significantly exceed the amounts that Truist has currently accrued. On a quarterly basis, Truist evaluates its outstanding legal proceedings to assess litigation accruals and adjust such accruals upwards or downward, as appropriate, based on management’s best judgment after consultation with counsel and others, as warranted. The Company’s estimate of reasonably possible losses, in excess of amounts accrued, ranges from zero to approximately $200 million as of March 31, 2020. This estimated range is based upon currently available information and involves considerable judgment, given that claims often include significant legal uncertainties, damages alleged by plaintiffs are often unspecified or overstated, discovery may not have started or may not be complete, and material facts may be disputed or unsubstantiated, among other factors. In addition, the matters underlying this estimated range will change from time to time, and actual losses may vary significantly from this estimate. For the same reasons stated above, we do not believe that an estimate of reasonably possible losses can be made for certain matters and therefore such matters are not reflected in the range provided here. The following is a description of certain legal proceedings in which Truist is involved: Bickerstaff v. SunTrust Bank This class action case was filed in the Fulton County State Court on July 12, 2010, and an amended complaint was filed on August 9, 2010. Plaintiff asserts that all overdraft fees charged to his account which related to debit card and ATM transactions are actually interest charges and therefore subject to the usury laws of Georgia. Plaintiff has brought claims for violations of civil and criminal usury laws, conversion, and money had and received. On October 6, 2017, the trial court granted plaintiff's motion for class certification and defined the class as “Every Georgia citizen who had or has one or more accounts with SunTrust Bank and who, from July 12, 2006, to October 6, 2017 (i) had at least one overdraft of $500.00 or less resulting from an ATM or debit card transaction (the “Transaction”); (ii) paid any Overdraft Fees as a result of the Transaction; and (iii) did not receive a refund of those Fees” and the granting of a certified class was affirmed on appeal. On April 8, 2020, the Company filed a motion seeking to narrow the scope of this class. Discovery has commenced. The Company believes that the claims are without merit. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures Recurring Fair Value Measurements Accounting standards define fair value as the price that would be received on the measurement date to sell an asset or the price paid to transfer a liability in the principal or most advantageous market available to the entity in an orderly transaction between market participants, with a three level measurement hierarchy: • Level 1: Quoted prices for identical instruments in active markets • Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets • Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable The following tables present fair value information for assets and liabilities measured at fair value on a recurring basis: March 31, 2020 Total Level 1 Level 2 Level 3 Netting Adjustments (1) Assets: Trading assets: U.S. Treasury $ 630 $ — $ 630 $ — $ — GSE 343 — 343 — — Agency MBS - residential 601 — 601 — — Agency MBS - commercial 58 — 58 — — States and political subdivisions 43 — 43 — — Corporate and other debt securities 536 — 536 — — Loans 1,569 — 1,569 — — Other 83 78 5 — — Total trading assets 3,863 78 3,785 — — AFS securities: U.S. Treasury 2,319 — 2,319 — — GSE 1,933 — 1,933 — — Agency MBS - residential 71,753 — 71,753 — — Agency MBS - commercial 1,519 — 1,519 — — States and political subdivisions 539 — 539 — — Non-agency MBS 298 — — 298 — Other 37 — 37 — — Total AFS securities 78,398 — 78,100 298 — LHFS at fair value 3,655 — 3,655 — — MSRs at fair value 2,150 — — 2,150 — Other assets: Derivative assets 4,040 548 6,746 177 (3,431) Equity securities 641 603 38 — — Private equity investments 448 — — 448 — Total assets $ 93,195 $ 1,229 $ 92,324 $ 3,073 $ (3,431) Liabilities: Derivative liabilities $ 764 $ 674 $ 3,234 $ 34 $ (3,178) Securities sold short 1,085 — 1,085 — — Total liabilities $ 1,849 $ 674 $ 4,319 $ 34 $ (3,178) December 31, 2019 Total Level 1 Level 2 Level 3 Netting Adjustments (1) Assets: Trading assets: U.S. Treasury $ 227 $ — $ 227 $ — $ — GSE 296 — 296 — — Agency MBS - residential 497 — 497 — — Agency MBS - commercial 68 — 68 — — States and political subdivisions 82 — 82 — — Non-agency MBS 277 — 277 — — Corporate and other debt securities 1,204 — 1,204 — — Loans 2,948 — 2,948 — — Other 134 90 44 — — Total trading assets 5,733 90 5,643 — — AFS securities: U.S. Treasury 2,276 — 2,276 — — GSE 1,881 — 1,881 — — Agency MBS - residential 68,236 — 68,236 — — Agency MBS - commercial 1,341 — 1,341 — — States and political subdivisions 585 — 585 — — Non-agency MBS 368 — — 368 — Other 40 — 40 — — Total AFS securities 74,727 — 74,359 368 — LHFS 5,673 — 5,673 — — MSRs 2,618 — — 2,618 — Other assets: Derivative assets 2,053 606 3,620 34 (2,207) Equity securities 817 815 2 — — Private equity investments 440 — — 440 — Total assets $ 92,061 $ 1,511 $ 89,297 $ 3,460 $ (2,207) Liabilities: Derivative liabilities $ 366 $ 204 $ 3,117 $ 15 $ (2,970) Securities sold short 1,074 18 1,056 — — Total liabilities $ 1,440 $ 222 $ 4,173 $ 15 $ (2,970) (1) Refer to "Note 15. Derivative Financial Instruments" for additional discussion on netting adjustments. For a description of the valuation techniques and significant inputs for Level 2 and Level 3 assets and liabilities that are measured at fair value on a recurring basis, see “Note 18. Fair Value Disclosures” of the Annual Report on Form 10-K for the year ended December 31, 2019. Activity for Level 3 assets and liabilities is summarized below: Three Months Ended Trading Securities Non-agency MBS MSRs Net Derivatives Private Equity Investments Balance at January 1, 2019 $ 3 $ 391 $ 1,108 $ 12 $ 393 Total realized and unrealized gains (losses): Included in earnings — 2 (54) 8 23 Included in unrealized net holding gains (losses) in OCI — 1 — — — Purchases 15 — — — 7 Issuances — — 22 17 — Sales (7) — — — (33) Settlements — (8) (40) (30) (2) Balance at March 31, 2019 $ 11 $ 386 $ 1,036 $ 7 $ 388 Balance at January 1, 2020 $ — $ 368 $ 2,618 $ 19 $ 440 Total realized and unrealized gains (losses): Included in earnings — 3 (526) 111 2 Included in unrealized net holding gains (losses) in OCI — (64) — — — Purchases — — — — 27 Issuances — — 187 155 — Sales — — — — — Settlements — (9) (129) (142) (21) Balance at March 31, 2020 $ — $ 298 $ 2,150 $ 143 $ 448 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at March 31, 2020 $ — $ 3 $ (526) $ 154 $ — Primary income statement location of realized gains (losses) included in earnings Interest income Interest income Residential mortgage income and Commercial real estate related income Residential mortgage income and Commercial real estate related income Other income The non-agency MBS categorized as Level 3 represent ownership interests in various tranches of Re-REMIC trusts. These securities are valued at a discount, which is unobservable in the market, to the fair value of the underlying securities owned by the trusts. The Re-REMIC tranches do not have an active market and therefore are categorized as Level 3. At March 31, 2020, the fair value of Re-REMIC non-agency MBS represented a discount of 38.7% to the fair value of the underlying securities owned by the Re-REMIC trusts due to market conditions at March 31, 2020 that reflected wider discounts relative to previous periods. The majority of private equity investments are in SBIC qualified funds, which primarily focus on equity and subordinated debt investments in privately-held middle market companies. The majority of these VIE investments are not redeemable and distributions are received as the underlying assets of the funds liquidate. The timing of distributions, which are expected to occur on various dates on an approximately ratable basis through 2030, is uncertain and dependent on various events such as recapitalizations, refinance transactions and ownership changes among others. As of March 31, 2020, restrictions on the ability to sell the investments include, but are not limited to, consent of a majority member or general partner approval for transfer of ownership. These investments are spread over numerous privately-held middle market companies, and thus the sensitivity to a change in fair value for any single investment is limited. The significant unobservable inputs for these investments are EBITDA multiples that ranged from 6x to 14x, with a weighted average of 8x, at March 31, 2020. Refer to "Note 7. Loan Servicing" for additional information on valuation techniques and inputs for MSRs. Fair Value Option The following table details the fair value and UPB of LHFS that were elected to be measured at fair value. Trading loans, included in other trading assets, were also elected to be measured at fair value. March 31, 2020 December 31, 2019 (Dollars in millions) Fair Value UPB Difference Fair Value UPB Difference Trading loans $ 1,569 $ 1,891 $ (322) $ 2,948 $ 2,982 $ (34) LHFS at fair value 3,655 3,485 170 5,673 5,563 110 Nonrecurring Fair Value Measurements The following table provides information about certain assets measured at fair value on a nonrecurring basis. The carrying values represent end of period values, which approximate the fair value measurements that occurred on the various measurement dates throughout the period. The valuation adjustments represent the amounts recorded during the period regardless of whether the asset is still held at period end. These assets are considered to be Level 3 assets (excludes PCI). 2020 2019 As of / For The Three Months Ended March 31, Carrying Value Valuation Adjustments Carrying Value Valuation Adjustments LHFS $ 427 $ (25) $ — $ — Loans and leases 101 (7) 154 (18) Foreclosed real estate 63 (73) 33 (63) At March 31, 2020, LHFS consisted primarily of residential mortgages and commercial loans that were valued using market prices and measured at the lower of cost or market. The table above excludes $728 million of LHFS carried at cost at March 31, 2020. Excluding government guaranteed loans, the Company held $41 million in nonperforming LHFS at March 31, 2020 and $107 million of nonperforming LHFS at December 31, 2019. LHFS that were 90 days or more past due and still accruing interest were not material at March 31, 2020. Loans and leases are primarily collateral dependent and may be subject to liquidity adjustments. Refer to “Note 1. Basis of Presentation” for additional discussion of individually evaluated loans and leases. Foreclosed real estate is measured at the lower of cost or fair value less costs to sell and consists primarily of residential homes, commercial properties, and vacant lots. Financial Instruments Not Recorded at Fair Value For financial instruments not recorded at fair value, estimates of fair value are based on relevant market data and information about the instrument. Values obtained relate to one trading unit without regard to any premium or discount that may result from concentrations of ownership, possible tax ramifications, estimated transaction costs that may result from bulk sales or the relationship between various instruments. An active market does not exist for certain financial instruments. Fair value estimates for these instruments are based on current economic conditions, currency and interest rate risk characteristics, loss experience and other factors. Many of these estimates involve uncertainties and matters of significant judgment and cannot be determined with precision. Therefore, the fair value estimates in many instances cannot be substantiated by comparison to independent markets. In addition, changes in assumptions could significantly affect these fair value estimates. Financial assets and liabilities not recorded at fair value are summarized below: March 31, 2020 December 31, 2019 (Dollars in millions) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Loans and leases HFI, net of ALLL Level 3 $ 314,018 $ 314,838 $ 298,293 $ 298,586 Financial liabilities: Time deposits Level 2 35,539 35,821 35,896 35,885 Long-term debt Level 2 65,662 64,998 41,339 42,051 The carrying value of unfunded commitments was $400 million and $373 million at March 31, 2020 and December 31, 2019, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Impact of Derivatives on the Consolidated Balance Sheets The following table presents the gross notional amounts and estimated fair value of derivative instruments employed by the Company. Truist held no cash flow hedges as of March 31, 2020 and December 31, 2019. March 31, 2020 December 31, 2019 Notional Amount Fair Value Notional Amount Fair Value (Dollars in millions) Assets Liabilities Assets Liabilities Fair value hedges: Interest rate contracts: Swaps hedging long-term debt $ 23,701 $ 577 $ — $ 23,701 $ 113 $ (25) Options hedging long-term debt 3,407 — (5) 3,407 — (2) Swaps hedging commercial loans 44 — — 44 — — Total 27,152 577 (5) 27,152 113 (27) Not designated as hedges: Client-related and other risk management: Interest rate contracts: Swaps 150,165 4,029 (1,026) 144,473 1,817 (673) Options 24,997 59 (23) 25,938 28 (19) Forward commitments 10,902 140 (147) 7,907 6 (7) Other 2,483 — — 1,807 — — Equity contracts 39,452 1,483 (1,781) 38,426 1,988 (2,307) Credit contracts: Loans and leases 1,179 18 (22) 894 — (34) Risk participation agreements 6,829 — (9) 6,696 — (2) Total return swaps 1,924 318 (4) 2,531 27 (11) Trading 677 5 (5) — — — Foreign exchange contracts 13,192 242 (259) 12,986 144 (164) Commodity 2,800 346 (342) 2,659 67 (65) Total 254,600 6,640 (3,618) 244,317 4,077 (3,282) Mortgage banking: Interest rate contracts: Swaps 300 — — 535 — — Interest rate lock commitments 7,605 177 (22) 4,427 34 (2) When issued securities, forward rate agreements and forward commitments 10,855 27 (224) 11,997 10 (18) Other 668 6 — 603 2 — Total 19,428 210 (246) 17,562 46 (20) MSRs: Interest rate contracts: Swaps 21,142 — — 19,196 — — Options 1,684 15 (19) 1,519 22 (2) When issued securities, forward rate agreements and forward commitments 1,224 29 (54) 5,560 2 (5) Other 739 — — 567 — — Total 24,789 44 (73) 26,842 24 (7) Total derivatives not designated as hedges 298,817 6,894 (3,937) 288,721 4,147 (3,309) Total derivatives $ 325,969 7,471 (3,942) $ 315,873 4,260 (3,336) Gross amounts in the Consolidated Balance Sheets: Amounts subject to master netting arrangements (1,988) 1,988 (1,708) 1,708 Cash collateral (received) posted for amounts subject to master netting arrangements (1,443) 1,190 (499) 1,262 Net amount $ 4,040 $ (764) $ 2,053 $ (366) The following table presents the offsetting of derivative instruments including financial instrument collateral related to legally enforceable master netting agreements and amounts held or pledged as collateral. U.S. GAAP does not permit netting of non-cash collateral balances in the consolidated balance sheet: March 31, 2020 Gross Amount Net Amount Presented in the Consolidated Balance Sheets Held/Pledged Financial Instruments Net Amount Derivative assets: Derivatives subject to master netting arrangement or similar arrangement $ 6,333 $ (2,897) $ 3,436 $ (24) $ 3,412 Derivatives not subject to master netting arrangement or similar arrangement 590 — 590 (1) 589 Exchange traded derivatives 548 (534) 14 — 14 Total derivative assets $ 7,471 $ (3,431) $ 4,040 $ (25) $ 4,015 Derivative liabilities: Derivatives subject to master netting arrangement or similar arrangement $ (3,100) $ 2,644 $ (456) $ 3 $ (453) Derivatives not subject to master netting arrangement or similar arrangement (168) — (168) 13 (155) Exchange traded derivatives (674) 534 (140) — (140) Total derivative liabilities $ (3,942) $ 3,178 $ (764) $ 16 $ (748) December 31, 2019 Gross Amount Net Amount Presented in the Consolidated Balance Sheets Held/Pledged Financial Instruments Net Amount Derivative assets: Derivatives subject to master netting arrangement or similar arrangement $ 3,516 $ (2,003) $ 1,513 $ (17) $ 1,496 Derivatives not subject to master netting arrangement or similar arrangement 138 — 138 (1) 137 Exchange traded derivatives 606 (204) 402 — 402 Total derivative assets $ 4,260 $ (2,207) $ 2,053 $ (18) $ 2,035 Derivative liabilities: Derivatives subject to master netting arrangement or similar arrangement $ (2,939) $ 2,761 $ (178) $ 22 $ (156) Derivatives not subject to master netting arrangement or similar arrangement (193) 5 (188) 11 (177) Exchange traded derivatives (204) 204 — — — Total derivative liabilities $ (3,336) $ 2,970 $ (366) $ 33 $ (333) The following table presents the carrying value of hedged items in fair value hedging relationships: March 31, 2020 December 31, 2019 Hedge Basis Adjustment Hedge Basis Adjustment (Dollars in millions) Hedged Asset / Liability Basis Items Currently Designated Items No Longer Designated Hedged Asset / Liability Basis Items Currently Designated Items No Longer Designated AFS securities $ 433 $ — $ 56 $ 473 $ — $ 65 Loans and leases 518 6 14 528 3 15 Long-term debt 29,980 1,098 22 28,557 174 23 Impact of Derivatives on the Consolidated Statements of Income and Comprehensive Income Derivatives Designated as Hedging Instruments under GAAP No portion of the change in fair value of derivatives designated as hedges has been excluded from effectiveness testing. The following table summarizes amounts related to cash flow hedges, which consist of interest rate contracts. Three Months Ended March 31, (Dollars in millions) 2020 2019 Pre-tax gain (loss) recognized in OCI: Deposits $ — $ (10) Short-term borrowings — (10) Long-term debt — (20) Total $ — $ (40) Pre-tax gain (loss) reclassified from AOCI into interest expense: Deposits $ (2) 2 Short-term borrowings (4) 1 Long-term debt (8) 2 Total $ (14) $ 5 The following table summarizes the impact on net interest income related to fair value hedges: Three Months Ended March 31, (Dollars in millions) 2020 2019 AFS securities: Amounts related to interest settlements $ — $ — Recognized on derivatives — (7) Recognized on hedged items (2) 5 Net income (expense) recognized (2) (2) Loans and leases: Amounts related to interest settlements — — Recognized on derivatives (3) (8) Recognized on hedged items 2 8 Net income (expense) recognized (1) — Long-term debt: Amounts related to interest settlements 16 (22) Recognized on derivatives 922 116 Recognized on hedged items (922) (108) Net income (expense) recognized 16 (14) Net income (expense) recognized, total $ 13 $ (16) The following table presents information about the Company's cash flow and fair value hedges: (Dollars in millions) Mar 31, 2020 Dec 31, 2019 Cash flow hedges: Net unrecognized after-tax gain (loss) on active hedges recorded in AOCI $ — $ — Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (to be recognized in earnings through 2022) (90) (101) Estimated portion of net after-tax gain (loss) on active and terminated hedges to be reclassified from AOCI into earnings during the next 12 months (34) (37) Fair value hedges: Unrecognized pre-tax net gain (loss) on terminated hedges (to be recognized as interest primarily through 2029) $ (48) $ (57) Portion of pre-tax net gain (loss) on terminated hedges to be recognized as a change in interest during the next 12 months (4) (6) Derivatives Not Designated as Hedging Instruments under GAAP The Company also enters into derivatives that are not designated as accounting hedges under GAAP to economically hedge certain risks as well as in a trading capacity with its clients. The following table presents pre-tax gain (loss) recognized in income for derivative instruments not designated as hedges: Three Months Ended March 31, (Dollars in millions) Income Statement Location 2020 2019 Client-related and other risk management: Interest rate contracts Investment banking and trading income and other income $ (64) $ 10 Foreign exchange contracts Investment banking and trading income 107 2 Equity contracts Investment banking and trading income and other income (10) — Credit contracts Investment banking and trading income and other income 459 — Commodity contracts Investment banking and trading income 3 — Mortgage banking: Interest rate contracts Residential mortgage income (122) (15) Interest rate contracts Commercial real estate related income 2 — MSRs: Interest rate contracts Residential mortgage income 495 54 Interest rate contracts Commercial real estate related income 20 — Total $ 890 $ 51 Credit Derivative Instruments As part of the Company’s corporate investment banking business, the Company enters into contracts that are, in form or substance, written guarantees; specifically, credit default swaps, risk participations and TRS. The Company accounts for these contracts as derivatives. The Company has entered into TRS contracts on loans. The Company’s TRS business consists of matched trades, such that when the Company pays depreciation on one TRS, it receives the same amount on the matched TRS. To mitigate its credit risk, the Company typically receives initial margin from the counterparty upon entering into the TRS and variation margin if the fair value of the underlying reference assets deteriorates. Truist has entered into risk participation agreements to share the credit exposure with other financial institutions on client-related interest rate derivative contracts. Under these agreements, the Company has guaranteed payment to a dealer counterparty in the event the dealer experiences a loss on the derivative, such as an interest rate swap, due to a failure to pay by the client, on that derivative. The Company manages its payment risk on its risk participations by monitoring the creditworthiness of the underlying client through the normal credit review process that the Company would have performed had it entered into a derivative directly with the obligors. At March 31, 2020, the remaining terms on these risk participations ranged from less than one year to 10 years. The potential future exposure represents the Company’s maximum estimated exposure to written risk participations, as measured by projecting a maximum value of the guaranteed derivative instruments based on scenario simulations and assuming 100% default by all obligors on the maximum value. The following table presents additional information related to interest rate derivative risk participation agreements and total return swaps: (Dollars in millions) Mar 31, 2020 Dec 31, 2019 Risk participation agreements: Maximum potential amount of exposure $ 410 $ 291 Total return swaps: Cash collateral held 783 653 The following table summarizes collateral positions with counterparties: (Dollars in millions) Mar 31, 2020 Dec 31, 2019 Dealer and other counterparties: Cash and other collateral received from counterparties $ 1,467 $ 514 Derivatives in a net gain position secured by collateral received 1,581 615 Unsecured positions in a net gain with counterparties after collateral postings 114 101 Cash collateral posted to dealer counterparties 1,005 1,255 Derivatives in a net loss position secured by collateral received 1,052 1,300 Additional collateral that would have been posted had the Company's credit ratings dropped below investment grade 13 12 Central counterparties clearing: Cash collateral, including initial margin, posted to central clearing parties 220 30 Derivatives in a net loss position 199 31 Derivatives in a net gain position 5 — Securities pledged to central counterparties clearing 663 513 |
Computation of EPS
Computation of EPS | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of EPS | Computation of EPS Basic and diluted EPS calculations are presented in the following table: Three Months Ended March 31, 2020 2019 Net income available to common shareholders $ 986 $ 749 Weighted average number of common shares 1,344,372 764,135 Effect of dilutive outstanding equity-based awards 13,173 9,936 Weighted average number of diluted common shares 1,357,545 774,071 Basic EPS $ 0.73 $ 0.98 Diluted EPS $ 0.73 $ 0.97 Anti-dilutive awards 1,725 — |
Operating Segments
Operating Segments | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments Truist operates and measures business activity across three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings, with functional activities included in Other, Treasury, and Corporate. The Company's business segment structure is based on the manner in which financial information is evaluated by management as well as the products and services provided or the type of client served. For additional information, see Note 21. Operating Segments of the Annual Report on Form 10-K for the year ended December 31, 2019. The following table presents results by segment: Three Months Ended March 31, CB&W C&CB IH 2020 2019 2020 2019 2020 2019 Net interest income (expense) $ 1,860 $ 828 $ 1,534 $ 739 $ 36 $ 34 Net intersegment interest income (expense) 388 193 (194) (105) (11) (11) Segment net interest income 2,248 1,021 1,340 634 25 23 Allocated provision for credit losses 437 131 399 20 1 3 Segment net interest income after provision 1,811 890 941 614 24 20 Noninterest income 1,072 507 460 244 557 515 Noninterest expense 1,993 882 886 315 440 417 Income (loss) before income taxes 890 515 515 543 141 118 Provision (benefit) for income taxes 209 125 92 113 36 30 Segment net income (loss) $ 681 $ 390 $ 423 $ 430 $ 105 $ 88 Identifiable assets (period end) $ 168,356 $ 75,873 $ 203,363 $ 85,911 $ 7,009 $ 6,376 OT&C (1) Total 2020 2019 2020 2019 Net interest income (expense) $ 220 $ 95 $ 3,650 $ 1,696 Net intersegment interest income (expense) (183) (77) — — Segment net interest income 37 18 3,650 1,696 Allocated provision for credit losses 56 1 893 155 Segment net interest income after provision (19) 17 2,757 1,541 Noninterest income (128) (64) 1,961 1,202 Noninterest expense 112 154 3,431 1,768 Income (loss) before income taxes (259) (201) 1,287 975 Provision (benefit) for income taxes (113) (91) 224 177 Segment net income (loss) $ (146) $ (110) $ 1,063 $ 798 Identifiable assets (period end) $ 127,501 $ 59,523 $ 506,229 $ 227,683 (1) Includes financial data from business units below the quantitative and qualitative thresholds requiring disclosure. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassifications | Reclassifications Certain amounts reported in prior periods' consolidated financial statements have been reclassified to conform to the current presentation. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the ACL; determination of fair value for financial instruments; valuation of MSRs; goodwill, intangible assets and other purchase accounting related adjustments; benefit plan obligations and expenses; and tax assets, liabilities and expense. |
Investment Securities | Investment Securities The Company invests in various debt securities primarily as a store of liquidity and as part of the overall ALM process to optimize income and market performance over an entire interest rate cycle. Investments in debt securities that are not held for trading purposes are classified as HTM or AFS. Truist does not currently have securities classified as HTM. Interest income on securities is recognized in income on an accrual basis. Premiums and discounts are amortized into interest income using the effective interest method over the contractual life of the security. As prepayments are received, a proportionate amount of the related premium or discount is recognized in income so that the effective interest rate on the remaining portion of the security continues unchanged. Debt securities that may be sold to meet liquidity needs arising from unanticipated deposit and loan fluctuations, changes in regulatory capital requirements or unforeseen changes in market conditions are classified as AFS. AFS securities are reported at estimated fair value, with unrealized gains and losses reported in AOCI, net of deferred income taxes, in the Shareholders' equity section of the Consolidated Balance Sheets. Gains or losses realized from the sale of AFS securities are determined by specific identification and are included in noninterest income. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. AFS debt securities in an unrealized loss position are evaluated at the balance sheet date to determine whether such losses are credit-related. Credit losses are measured on an individual basis and recognized in an ACL. Changes in expected credit losses are recognized in the Provision for credit losses in the Consolidated Statements of Income. At March 31, 2020, no ACL was established for AFS securities. Cash flow modeling is used to evaluate non-agency MBS in an unrealized loss position for potential credit impairment. These models give consideration to macroeconomic factors applied to current security default rates, prepayment rates, recovery rates and security-level performance. Municipal securities are evaluated for impairment using a municipal bond credit scoring tool that leverages historical municipal market data to estimate probability of default and loss given default at the issuer level. U.S. Treasury securities, government guaranteed securities, and other securities issued by GSEs are either explicitly or implicitly guaranteed by the US government, are highly rated by rating agencies and have a long history of no credit losses. No expected credit losses have been recorded for these securities. |
Loans and Leases | Loans and Leases The Company's accounting methods for loans differ depending on whether the loans are originated or purchased, and if purchased, whether or not the loans reflect credit deterioration since the date of origination such that at the date of acquisition there is more than an insignificant deterioration in credit. Originated Loans and Leases Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balances net of any unearned income, charge-offs, and unamortized fees and costs. The net amount of nonrefundable loan origination fees and certain direct costs associated with the lending process are deferred and amortized to interest income over the contractual lives of the loans using the effective interest method. Purchased Loans Purchased loans are recorded at their fair value at the acquisition date. The estimated fair values incorporate adjustments related to expected credit losses, prevailing market interest rates for comparable assets and liquidity-related adjustments. Fair values for purchased loans are based on a discounted cash flow methodology that considers credit loss expectations, market interest rates and other market factors such as liquidity from the perspective of a market participant. Loans are grouped together according to similar characteristics and treated in the aggregate when applying various valuation techniques. The probability of default, loss given default and prepayment assumptions are the key factors driving credit losses which are embedded into the estimated cash flows. These assumptions are informed by internal data on loan characteristics, historical loss experience, and current and forecasted economic conditions. The interest and liquidity component of the estimate was determined by discounting interest and principal cash flows through the expected life of the underlying loans. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity. The discount rates do not include a factor for credit losses as that has been included as a reduction to the estimated cash flows. Beginning January 1, 2020, purchased loans are evaluated upon acquisition and classified as either PCD, which indicates that the loan reflects more-than-insignificant deterioration in credit quality since origination, or non-PCD. Truist considers a variety of factors in connection with the identification of more-than-insignificant deterioration in credit quality, including but not limited to risk grades, delinquency, nonperforming status, previous troubled debt restructurings or bankruptcies and other qualitative factors that indicate deterioration in credit quality since origination. For PCD loans, an initial ALLL is determined using the same methodology as other loans held for investment and recognized as an adjustment to the acquisition price of the asset; thus, the sum of the loans’ purchase price and initial ALLL estimate represents the initial amortized cost basis. The difference between the initial amortized cost basis and the par value is the non-credit discount or premium. For non-PCD loans, the difference between the fair value and the par value is considered the fair value mark. The ALLL for non-PCD loans is recorded with a corresponding charge to the provision for credit losses in the Consolidated Statements of Income. Subsequent changes in the ALLL related to PCD and non-PCD loans are recognized in the provision for credit losses. The non-credit discount or premium related to PCD loans, and the fair value mark on non-PCD loans, is amortized or accreted to interest income over the contractual life of the loans using the effective interest method for amortizing loans, and using a straight-line approach for interest-only loans and loans with revolving privileges. In the event of prepayment, unamortized discounts or premiums are recognized in interest income. TDRs Modifications to a borrower's debt agreement are considered TDRs if a concession is granted for economic or legal reasons related to a borrower's financial difficulties that otherwise would not be considered. TDRs are undertaken in order to improve the likelihood of recovery on the loan and may take the form of modifications made with the stated interest rate lower than the current market rate for new debt with similar risk, other modifications to the structure of the loan that fall outside of normal underwriting policies and procedures, or in certain limited circumstances, forgiveness of principal or interest. A restructuring that results in only a delay in payments that is insignificant is not considered an economic concession. In accordance with the CARES Act, Truist implemented loan modification programs in response to the COVID-19 pandemic in order to provide borrowers with flexibility with respect to repayment terms. These loan modifications are not considered TDRs to the extent that the borrower was impacted by the COVID-19 pandemic and was less than 30 days past due at December 31, 2019, or in certain circumstances, at the time that the COVID-19 loan modification program was implemented, unless the loan was previously classified as a TDR. TDRs can remain nonperforming, move to nonperforming, or continue on performing status, depending on the individual facts and circumstances of the borrower and an evaluation as to whether the borrower will be able to repay the loan based on the modified terms. The evaluation of the borrower's ability to repay the loan is based on a current, well-documented credit analysis. In circumstances where the TDR involves charging off a portion of the loan balance, Truist classifies these TDRs as nonperforming. The decision to maintain a commercial TDR on performing status is based on a current, well documented credit evaluation of the borrower's financial condition and prospects for repayment under the modified terms. This evaluation includes consideration of the borrower's current capacity to pay, which among other things may include a review of the borrower's current financial statements, an analysis of cash flow available to pay debt obligations, and an evaluation of secondary sources of payment from the borrower and any guarantors. This evaluation also includes an evaluation of the borrower's current willingness to pay, which may include a review of past payment history, an evaluation of the borrower's willingness to provide information on a timely basis, and consideration of offers from the borrower to provide additional collateral or guarantor support. The credit evaluation may also include review of cash flow projections, consideration of the adequacy of collateral to cover all principal and interest and trends indicating improving profitability and collectability of receivables. The evaluation of mortgage and retail loans includes an evaluation of the client's debt-to-income ratio, credit report, property value, loan vintage, and certain other client-specific factors that impact their ability to make timely principal and interest payments on the loan. TDR classification may be removed due to the passage of time if the loan: (1) did not include a forgiveness of principal or interest, (2) has performed in accordance with the modified terms (generally a minimum of six months), (3) was reported as a TDR over a year-end reporting period, and (4) reflected an interest rate on the modified loan that was no less than a market rate at the date of modification. TDR classification may also be removed for an accruing loan upon the occurrence of a subsequent non-concessionary modification granted at market terms and within current underwriting guidelines. |
NPAs | NPAs NPAs include NPLs and foreclosed property. Foreclosed property consists of real estate and other assets acquired as a result of clients' loan defaults. Truist's policies for placing loans on nonperforming status conform to guidelines prescribed by bank regulatory authorities. Truist classifies loans and leases as past due when the payment of principal and interest based upon contractual terms is greater than 30 days delinquent or if one payment is past due. Payment deferrals as a result of the COVID-19 pandemic do not result in a loan becoming past due. The following table summarizes the delinquency thresholds that are used in evaluating nonperforming classification and the timing of charge-offs: (number of days) Placed on Nonperforming (1) Charged-off Commercial: Commercial and industrial 90 (2) 90 (2) CRE 90 (2) 90 (2) Commercial construction 90 (2) 90 (2) Lease financing 90 (2) 90 (2) Consumer: Residential mortgage (3) 90 to 180 90 to 210 Residential home equity and direct (3) 90 to 120 90 to 180 Indirect auto (3) 90 120 Indirect other (3) 90 to 120 120 to 180 Student (4) NA 120 to 180 Credit card NA 90 to 180 (1) Loans may be returned to performing status when they become current as to both principal and interest and concern no longer exists as to the collectability of principal and interest, generally indicated by 180 days of sustained payment performance. (2) Or when it is probable that principal or interest is not fully collectible, whichever occurs first. (3) Depends on product type, loss mitigation status, status of the government guaranty, if applicable, and certain other product-specific factors. (4) Government guaranteed student loans are not placed on nonperforming status and are generally not charged-off regardless of delinquency status because collection of principal and interest is reasonably assured. When commercial loans are placed on nonperforming status, a charge-off is recorded, as applicable, to decrease the carrying value of such loans to the estimated recoverable amount. Consumer and credit card loans are subject to charge-off at a specified delinquency date consistent with regulatory guidelines. Certain past due loans may remain on performing status if management determines that it does not have concern over the collectability of principal and interest. Generally, when loans are placed on nonperforming status, accrued interest receivable is reversed against interest income in the current period and amortization of deferred loan fees and expenses for originated loans, and fair value marks for purchased loans, is suspended. For commercial loans and certain consumer loans, payments received for interest and lending fees thereafter are applied as a reduction to the remaining principal balance as long as concern exists as to the ultimate collection of the principal. Interest income on nonperforming loans is recognized after the principal has been reduced to zero. If and when borrowers demonstrate the ability to repay a loan classified as nonperforming in accordance with its contractual terms, the loan may be returned to performing status upon meeting all regulatory, accounting and internal policy requirements. Accrued interest is included in Other assets in the Consolidated Balance Sheets. Accrued interest receivable balances are not considered in connection with the ACL estimation process, as such amounts are generally reversed against interest income when the loan is placed in nonperforming status. Assets acquired as a result of foreclosure are subsequently carried at the lower of cost or net realizable value. Net realizable value equals fair value less estimated selling costs. Any excess of cost over net realizable value at the time of foreclosure is charged to the ALLL. NPAs are subject to periodic revaluations of the collateral underlying impaired loans and foreclosed real estate. The periodic revaluations are generally based on the appraised value of the property and may include additional liquidity adjustments based upon the expected retention period. Truist's policies require that valuations be updated at least annually and that upon foreclosure, the valuation must not be more than six months old, otherwise an update is required. Any subsequent changes in value as well as gains or losses from the disposition on these assets are recognized in Other noninterest expense in the Consolidated Statements of Income. For additional information on the Company’s loan and lease activities, see "Note 5. Loans and ACL.” |
ACL | ACL The ACL includes the ALLL and RUFC. The ACL represents management's best estimate of expected future credit losses related to loan and lease portfolios and off-balance sheet lending commitments at the balance sheet date. The ALLL is a valuation account that is deducted from or added to the loans’ amortized cost basis to present the net amount expected to be collected on loans. The entire amount of the ACL is available to absorb losses on any loan category or lending-related commitment. Loan or lease balances deemed to be uncollectible are charged off against the ALLL. Expected recoveries of amounts previously charged off are incorporated into the ALLL estimate, with such amounts capped at the aggregate of amounts previously charged off. Changes to the ACL are made by charges to the Provision for credit losses, which is reflected in the Consolidated Statements of Income. The RUFC is recorded in Other liabilities on the Consolidated Balance Sheets. Portfolio segments represent the level at which Truist develops and documents a systematic methodology to determine its ACL. Truist’s loan and lease portfolio consists of three portfolio segments; commercial, consumer and credit card. The expected credit loss models are generally developed one level below the portfolio segment level. In certain instances, loans are further disaggregated by similar risk characteristics, such as business sector, client type, funding type, type of collateral, whether loan payments are interest-only and whether interest rates are fixed or variable. Loans and leases that do not share similar risk characteristics and significant loans that are considered collateral-dependent are individually evaluated. For these loans, the ALLL is determined through review of data specific to the borrower and related collateral, if any. The commercial portfolio segment models use a risk rating approach to estimate the ALLL. The consumer and credit card models use a delinquency-based approach to estimate the ALLL. In addition to these quantitatively calculated components, the ALLL includes qualitatively calculated components. Truist maintains a collectively calculated ALLL for loans with similar risk characteristics. The collectively calculated ALLL is estimated using relevant available information from internal and external sources relating to past events, current conditions, and reasonable and supportable forecasts. Truist maintains quantitative models to forecast expected credit losses. The credit loss forecasting models use portfolio balances, macroeconomic scenarios, portfolio composition and loan attributes as the primary inputs. Historical loss experience provides the basis for the estimation of the ACL and includes periods covering complete economic cycles. The historical loss data is adjusted for loan and lease specific risk characteristics such as differences in environmental conditions. Expected losses are estimated through contractual maturity unless the borrower has a right to renew that is not cancellable or it is reasonably expected that the loan will be modified as a TDR. The Scenario Committee provides guidance, selection, and approval for enterprise-sanctioned macroeconomic scenarios, including the macroeconomic forecasts for use in the ACL process. Forecasted economic conditions are developed using third party macroeconomic scenarios adjusted based on management’s expectations over a reasonable and supportable forecast period of two years. Assumptions revert to long term historic averages gradually over a one year period. Macroeconomic factors used in estimating the expected losses vary by loan portfolio and include employment factors, estimated collateral values and market indicators as described by portfolio segment below. A qualitative allowance which incorporates management’s judgement is also included in the estimation of expected future loan and lease losses. This allowance is used to capture risks in the portfolio such as considerations with respect to the impact of current economic events, the outcomes of which are uncertain. These events may include, but are not limited to, political conditions, legislation that may directly or indirectly affect the banking industry and economic conditions affecting specific geographical areas and industries in which Truist conducts business. Expected credit losses for loans that do not share risk characteristics with other financial assets, or significant loans that are considered collateral-dependent, are calculated on an individual basis. Such estimates may be based on an evaluation of the fair value of the underlying collateral or in certain circumstances the present value of expected cash flows discounted at the loan's effective interest as described further below by portfolio segment. The methodology for determining the RUFC is inherently similar to that used to determine the funded component of the ALLL and is measured over the period there is a contractual obligation to extend credit that is not unconditionally cancellable. The RUFC is adjusted for factors specific to binding commitments, including the probability of funding and exposure at default. The ACL is monitored by the ACL Committee. The ACL Committee recommends adjustments where necessary based on portfolio performance and other items that may impact credit risk and approves the ACL estimate. The following provides a description of accounting policies, methodologies and credit quality indicators related to each of the portfolio segments: Commercial The majority of loans in the commercial lending portfolio are assigned risk ratings based on an assessment of conditions that affect the borrower's ability to meet contractual obligations under the loan agreement. This process includes reviewing borrowers' financial information, historical payment experience, credit documentation, public information, and other information specific to each borrower. Risk ratings are reviewed on an annual basis, or more frequently for many relationships based on the policy requirements regarding various risk characteristics. While this review is largely focused on the borrower's ability to repay the loan, Truist also considers the capacity and willingness of a loan's guarantors to support the loan as a secondary source of repayment. When a guarantor exhibits the documented capacity and willingness to support the loan, Truist may consider extending the loan maturity and/or temporarily deferring principal payments if the ultimate collection of both principal and interest is not in question. In these cases, Truist may determine the loan is not impaired due to the documented capacity and willingness of the guarantor to repay the loan. Loans are considered impaired when the borrower (or guarantor in certain circumstances) does not have the cash flow capacity or willingness to service the debt according to contractual terms, or it does not appear reasonable to assume that the borrower will continue to pay according to the contractual agreement. The following table summarizes risk ratings that Truist uses to monitor credit quality in its commercial portfolio: Risk Rating Description Pass Loans not considered to be problem credits Special Mention Loans that have a potential weakness deserving management's close attention Substandard Loans for which a well-defined weakness has been identified that may put full collection of contractual cash flows at risk Nonperforming Loans for which full collection of principal and interest is not considered probable Loans are generally pooled one level below the portfolio segment for the collectively calculated ALLL based on factors such as business sector, project and property type, line of business, collateral, loan type, obligor exposure, and risk grade or score. Commercial loss forecasting models are expected loss frameworks that use macroeconomic scenarios and current portfolio attributes as inputs. The models forecast probability of default, exposure at default and loss given default. The primary macroeconomic drivers for the commercial portfolios include unemployment, U.S. real GDP, corporate credit spreads, rental rates and property values. Truist's policy is to review and individually evaluate the reserve for all nonperforming lending relationships and TDRs with an outstanding balance of $5 million or more, as such lending relationships do not typically share similar risk characteristics with others. Truist has elected the collateral dependent practical expedient; therefore, individually evaluated reserves are based on current economic forecasts, the present value of expected cash flows discounted at the loan's effective interest rate or the value of collateral, which is generally based on appraisals, recent sales of foreclosed properties and/or relevant property-specific market information. Loans are considered collateral dependent where it is probable that Truist will be unable to collect principal and interest according to the contractual terms of the agreement and repayment is expected to be provided substantially by the sale or continued operation of the underlying collateral. Commercial loans are typically secured by real estate, business equipment, inventories and other types of collateral. Consumer and Credit Card The majority of the ALLL related to the consumer and credit card lending portfolios is calculated on a collective basis. Loans are pooled one level below the portfolio segment for the collectively calculated ALLL based on factors such as collateral, loan type, line of business and sales channel. Consumer portfolio models are expected loss frameworks that use macroeconomic scenarios and current portfolio attributes as inputs. The models forecast probability of default, exposure at default and loss given default. The primary macroeconomic drivers for the consumer portfolios include unemployment trends, home price indices and used car prices. Residential mortgages and revolving home equity lines of credit are generally collateralized by one-to-four-family residential real estate, typically have loan-to-collateral value ratios of 80% or less at origination, and are made to borrowers in good credit standing. The indirect auto and indirect other portfolios include secured indirect installment loans to consumers for the purchase of new and used automobiles, boats and recreational vehicles. The student loan portfolio is composed of securitized government-guaranteed student loans and certain private student loans originated by third parties. The government guarantee mitigates substantially all of the risk related to principal and interest repayment for this component of the portfolio. Private student loans are purchased from third-party originators with credit enhancements that partially mitigate the Company’s credit exposure. The credit card portfolio and other arrangements within the indirect other portfolio are generally unsecured and actively managed. Truist uses performing status to monitor credit quality in its consumer and credit card portfolios. Delinquency status is the primary factor considered in determining whether a loan should be classified as nonperforming. The ALLL for loans classified as a TDR is based on a discounted expected cash flow analyses and a combination of historical experience for TDRs and management judgment. Expected recoveries for consumer and credit card loans are included in the estimation of the ALLL based on historical experience, when a loan returns to accruing status, or when the fair market value of the collateral has increased. |
Changes in Accounting Principles and Effects of New Accounting Pronouncements | Changes in Accounting Principles and Effects of New Accounting Pronouncements Standard Description Effects on the Financial Statements Standards Adopted January 1, 2020 Credit Losses Replaces the incurred loss impairment methodology with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost are presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit deteriorated loans receive an allowance for expected credit losses. Any credit impairment on AFS debt securities for which the fair value is less than cost is recorded through an allowance for expected credit losses. The standard also requires expanded disclosures related to credit losses and asset quality. Truist adopted this standard using the modified retrospective approach. Simplifying the Test for Goodwill Impairment Simplifies the subsequent measurement of goodwill, by eliminating the second step from the goodwill impairment test. The amendments require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The standard requires an entity to recognize an impairment charge for the amount by which a reporting unit's carrying amount exceeds its fair value, with the loss limited to the total amount of goodwill allocated to that reporting unit. The standard must be applied on a prospective basis. The standard does not currently have an impact on the Company’s consolidated financial statements; however, if subsequent to adoption, the carrying amount of a reporting unit exceeds its respective fair value, the Company would be required to recognize an impairment charge for the amount that the carrying value exceeds the fair value up to the amount of the goodwill assigned to the reporting unit. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Loans and Leases Past Due Policies | The following table summarizes the delinquency thresholds that are used in evaluating nonperforming classification and the timing of charge-offs: (number of days) Placed on Nonperforming (1) Charged-off Commercial: Commercial and industrial 90 (2) 90 (2) CRE 90 (2) 90 (2) Commercial construction 90 (2) 90 (2) Lease financing 90 (2) 90 (2) Consumer: Residential mortgage (3) 90 to 180 90 to 210 Residential home equity and direct (3) 90 to 120 90 to 180 Indirect auto (3) 90 120 Indirect other (3) 90 to 120 120 to 180 Student (4) NA 120 to 180 Credit card NA 90 to 180 (1) Loans may be returned to performing status when they become current as to both principal and interest and concern no longer exists as to the collectability of principal and interest, generally indicated by 180 days of sustained payment performance. (2) Or when it is probable that principal or interest is not fully collectible, whichever occurs first. (3) Depends on product type, loss mitigation status, status of the government guaranty, if applicable, and certain other product-specific factors. (4) Government guaranteed student loans are not placed on nonperforming status and are generally not charged-off regardless of delinquency status because collection of principal and interest is reasonably assured. |
Summary of Commercial Loans and Leases Risk Ratings | The following table summarizes risk ratings that Truist uses to monitor credit quality in its commercial portfolio: Risk Rating Description Pass Loans not considered to be problem credits Special Mention Loans that have a potential weakness deserving management's close attention Substandard Loans for which a well-defined weakness has been identified that may put full collection of contractual cash flows at risk Nonperforming Loans for which full collection of principal and interest is not considered probable |
Changes in Accounting Principles and Effects of New Accounting Pronouncements | Changes in Accounting Principles and Effects of New Accounting Pronouncements Standard Description Effects on the Financial Statements Standards Adopted January 1, 2020 Credit Losses Replaces the incurred loss impairment methodology with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost are presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit deteriorated loans receive an allowance for expected credit losses. Any credit impairment on AFS debt securities for which the fair value is less than cost is recorded through an allowance for expected credit losses. The standard also requires expanded disclosures related to credit losses and asset quality. Truist adopted this standard using the modified retrospective approach. Simplifying the Test for Goodwill Impairment Simplifies the subsequent measurement of goodwill, by eliminating the second step from the goodwill impairment test. The amendments require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The standard requires an entity to recognize an impairment charge for the amount by which a reporting unit's carrying amount exceeds its fair value, with the loss limited to the total amount of goodwill allocated to that reporting unit. The standard must be applied on a prospective basis. The standard does not currently have an impact on the Company’s consolidated financial statements; however, if subsequent to adoption, the carrying amount of a reporting unit exceeds its respective fair value, the Company would be required to recognize an impairment charge for the amount that the carrying value exceeds the fair value up to the amount of the goodwill assigned to the reporting unit. |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table sets forth a preliminary allocation of Merger consideration to the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed of SunTrust as of December 6, 2019: (Dollars in millions) UPB Fair Value Fair value of Merger consideration $ 33,547 Assets Cash and due from banks 1,621 Interest-bearing deposits with banks 4,668 Securities borrowed or purchased under resale agreements 1,191 Trading assets 5,710 AFS securities 30,986 LHFS 3,741 Loans and leases: Commercial and industrial $ 68,687 67,101 CRE 9,509 9,357 Commercial Construction 2,136 2,096 Commercial Leases 3,967 3,882 Mortgage Loans 28,191 27,180 Home Equity and Direct Lending 15,917 15,628 Indirect Auto 12,373 12,203 Indirect Other 4,678 4,445 Student Lending 6,867 6,657 Credit Card 2,518 2,500 PCI 3,652 3,126 Total loans and leases $ 158,495 154,175 Premises and equipment 1,575 CDI and other intangible assets 2,700 MSRs 1,605 Other assets 13,771 Total assets 221,743 Liabilities and Equity Deposits (170,633) Short-term borrowings (6,837) Long-term debt (19,457) Other liabilities (5,224) Total liabilities (202,151) Noncontrolling interest (108) Less: Net assets 19,484 Goodwill $ 14,063 |
Securities Financing Activiti_2
Securities Financing Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Offsetting [Abstract] | |
Schedule of Resale Agreements | The following table presents securities borrowed or purchased under resale agreements: (Dollars in millions) March 31, 2020 December 31, 2019 Securities purchased under resale agreements $ 1,295 $ 986 Securities borrowed 501 431 Total securities borrowed or purchased under resale agreements $ 1,796 $ 1,417 |
Schedule of Repurchase Agreements | The following table presents the Company’s related activity, by collateral type and remaining contractual maturity: March 31, 2020 December 31, 2019 (Dollars in millions) Overnight and Continuous Up to 30 days Total Overnight and Continuous Up to 30 days 30-90 days Total U.S. Treasury $ 230 $ — $ 230 $ 115 $ 35 $ — $ 150 GSE 171 4 175 87 37 — 124 Agency MBS - residential 575 145 720 928 41 100 1,069 Corporate and other debt securities 192 212 404 310 316 — 626 Total securities sold under agreements to repurchase $ 1,168 $ 361 $ 1,529 $ 1,440 $ 429 $ 100 $ 1,969 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of AFS Securities | The following tables summarize the Company's AFS securities: March 31, 2020 Amortized Cost Gross Unrealized Fair Value Gains Losses AFS securities: U.S. Treasury $ 2,272 $ 47 $ — $ 2,319 GSE 1,846 87 — 1,933 Agency MBS - residential 69,307 2,468 22 71,753 Agency MBS - commercial 1,489 31 1 1,519 States and political subdivisions 513 34 8 539 Non-agency MBS 185 127 14 298 Other 38 — 1 37 Total AFS securities $ 75,650 $ 2,794 $ 46 $ 78,398 December 31, 2019 Amortized Cost Gross Unrealized Fair Value Gains Losses AFS securities: U.S. Treasury $ 2,275 $ 7 $ 6 $ 2,276 GSE 1,847 34 — 1,881 Agency MBS - residential 67,983 411 158 68,236 Agency MBS - commercial 1,335 13 7 1,341 States and political subdivisions 557 34 6 585 Non-agency MBS 190 178 — 368 Other 40 — — 40 Total AFS securities $ 74,227 $ 677 $ 177 $ 74,727 |
Schedule of Amortized Cost and Estimated Fair Value by Contractual Maturity | The amortized cost and estimated fair value of the securities portfolio by contractual maturity are shown in the following table. The expected life of MBS may differ from contractual maturities because borrowers may have the right to prepay their obligations with or without penalties. Amortized Cost Fair Value March 31, 2020 Due in one year or less Due after one year through five years Due after five years through ten years Due after ten years Total Due in one year or less Due after one year through five years Due after five years through ten years Due after ten years Total AFS securities: U.S. Treasury $ 1,381 $ 876 $ 15 $ — $ 2,272 $ 1,399 $ 903 $ 17 $ — $ 2,319 GSE — 1,769 — 77 1,846 — 1,853 — 80 1,933 Agency MBS - residential — 1 556 68,750 69,307 — 1 570 71,182 71,753 Agency MBS - commercial — 2 9 1,478 1,489 — 2 10 1,507 1,519 States and political subdivisions 39 114 151 209 513 39 116 163 221 539 Non-agency MBS — — — 185 185 — — — 298 298 Other 2 6 1 29 38 2 6 1 28 37 Total AFS securities $ 1,422 $ 2,768 $ 732 $ 70,728 $ 75,650 $ 1,440 $ 2,881 $ 761 $ 73,316 $ 78,398 |
Schedule of Fair Values and Gross Unrealized Losses | The following tables present the fair values and gross unrealized losses of investments based on the length of time that individual securities have been in a continuous unrealized loss position: Less than 12 months 12 months or more Total March 31, 2020 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses AFS securities: GSE $ 3 $ — $ — $ — $ 3 $ — Agency MBS - residential 1,147 13 262 9 1,409 22 Agency MBS - commercial 66 — 35 1 101 1 States and political subdivisions 96 1 121 7 217 8 Non-agency MBS 42 14 — — 42 14 Other 36 1 — — 36 1 Total $ 1,390 $ 29 $ 418 $ 17 $ 1,808 $ 46 Less than 12 months 12 months or more Total December 31, 2019 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses AFS securities: U.S. Treasury $ 702 $ 6 $ — $ — $ 702 $ 6 GSE 6 — — — 6 — Agency MBS - residential 20,328 145 1,326 13 21,654 158 Agency MBS - commercial 545 5 124 2 669 7 States and political subdivisions 65 1 144 5 209 6 Total $ 21,646 $ 157 $ 1,594 $ 20 $ 23,240 $ 177 |
Schedule of Realized Gain (Loss) | The following table presents gross securities gains and losses recognized in earnings: Three Months Ended March 31, 2020 2019 Gross realized gains $ — $ 22 Gross realized losses (2) (22) Securities gains (losses), net $ (2) $ — |
Loans and ACL (Tables)
Loans and ACL (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Aging Analysis of Past Due Loans and Leases | The following tables present loans and leases HFI by aging category. Government guaranteed loans are not placed on nonaccrual status regardless of delinquency because collection of principal and interest is reasonably assured. Accruing March 31, 2020 Current 30-89 Days Past Due 90 Days Or More Past Due Nonperforming Total Commercial: Commercial and industrial $ 148,451 $ 262 $ 5 $ 443 $ 149,161 CRE 27,505 8 1 18 27,532 Commercial construction 6,612 16 — 2 6,630 Lease financing 5,949 8 — 27 5,984 Consumer: Residential mortgage 51,559 679 610 248 53,096 Residential home equity and direct 27,293 156 10 170 27,629 Indirect auto 24,489 521 11 125 25,146 Indirect other 10,903 74 2 1 10,980 Student 6,110 593 1,068 — 7,771 Credit card 5,202 57 41 — 5,300 Total $ 314,073 $ 2,374 $ 1,748 $ 1,034 $ 319,229 Accruing December 31, 2019 Current 30-89 Days Past Due 90 Days Or More Past Due Nonperforming Total Commercial: Commercial and industrial $ 129,873 $ 94 $ 1 $ 212 $ 130,180 CRE 26,817 5 — 10 26,832 Commercial construction 6,204 1 — — 6,205 Lease financing 6,112 2 — 8 6,122 Consumer: Residential mortgage 50,975 498 543 55 52,071 Residential home equity and direct 26,846 122 9 67 27,044 Indirect auto 23,771 560 11 100 24,442 Indirect other 11,011 85 2 2 11,100 Student 5,905 650 188 — 6,743 Credit card 5,541 56 22 — 5,619 PCI 2,126 140 1,218 — 3,484 Total $ 295,181 $ 2,213 $ 1,994 $ 454 $ 299,842 |
Schedule of Carrying Amounts by Risk Rating | The following table presents the amortized cost basis of loans by origination year and credit quality indicator: March 31, 2020 Amortized Cost Basis by Origination Year Revolving Credit Loans Converted to Term Other (1) 2020 2019 2018 2017 2016 Prior Total Commercial: Commercial and industrial: Pass $ 7,366 $ 25,371 $ 15,536 $ 9,849 $ 6,598 $ 14,904 $ 66,420 $ 11 $ (843) $ 145,212 Special mention 93 170 161 66 143 101 1,010 — — 1,744 Substandard 53 216 126 74 87 296 926 1 (17) 1,762 Nonperforming 3 52 94 34 48 85 97 1 29 443 Total 7,515 25,809 15,917 10,023 6,876 15,386 68,453 13 (831) 149,161 CRE: Pass 2,013 8,252 6,166 3,479 2,262 4,066 713 — (92) 26,859 Special mention 1 44 102 12 65 115 — — — 339 Substandard 17 94 23 39 29 114 — — — 316 Nonperforming — 2 4 3 — 8 1 — — 18 Total 2,031 8,392 6,295 3,533 2,356 4,303 714 — (92) 27,532 Commercial construction: Pass 342 1,921 2,164 745 153 381 729 1 4 6,440 Special mention — 5 37 — — — — — — 42 Substandard 3 5 35 56 40 4 3 — — 146 Nonperforming — 1 — 1 — — — — — 2 Total 345 1,932 2,236 802 193 385 732 1 4 6,630 Lease financing: Pass 255 1,864 1,154 1,056 381 1,221 — — (44) 5,887 Special mention — 8 3 3 3 — — — — 17 Substandard — 3 — 15 2 33 — — — 53 Nonperforming — — 1 15 2 9 — — — 27 Total 255 1,875 1,158 1,089 388 1,263 — — (44) 5,984 Consumer: Residential mortgage: Performing 1,800 8,480 5,595 6,168 6,985 23,587 — — 233 52,848 Nonperforming — 4 8 7 8 221 — — — 248 Total 1,800 8,484 5,603 6,175 6,993 23,808 — — 233 53,096 Residential home equity and direct: Performing 1,296 4,436 2,164 834 420 789 15,553 1,874 93 27,459 Nonperforming — 4 4 1 1 8 63 94 (5) 170 Total 1,296 4,440 2,168 835 421 797 15,616 1,968 88 27,629 Indirect auto: Performing 2,799 9,725 5,548 3,571 2,070 1,166 — — 142 25,021 Nonperforming — 32 39 29 19 19 — — (13) 125 Total 2,799 9,757 5,587 3,600 2,089 1,185 — — 129 25,146 Indirect other: Performing 1,027 4,319 2,587 1,294 676 1,009 — — 67 10,979 Nonperforming — — — — — 1 — — — 1 Total 1,027 4,319 2,587 1,294 676 1,010 — — 67 10,980 Student: Performing 21 122 110 91 75 7,357 — — (5) 7,771 Nonperforming — — — — — — — — — — Total 21 122 110 91 75 7,357 — — (5) 7,771 Credit card — — — — — — 5,268 35 (3) 5,300 Total $ 17,089 $ 65,130 $ 41,661 $ 27,442 $ 20,067 $ 55,494 $ 90,783 $ 2,017 $ (454) $ 319,229 (1) Includes certain deferred fees and costs, unapplied payments and other adjustments. The following table presents the carrying amount of loans by risk rating and performing status. Student loans are excluded as there is nominal risk of credit loss due to government guarantees or other credit enhancements. PCI loans were excluded because their related ALLL is determined by loan pool performance, and credit card loans were excluded as these loans are charged-off rather than reclassifying these loans to nonperforming: December 31, 2019 (Dollars in millions) Commercial & Industrial CRE Commercial Construction Lease Financing Commercial: Pass $ 127,229 $ 26,393 $ 6,037 $ 6,039 Special mention 1,264 145 37 19 Substandard 1,475 284 131 56 Nonperforming 212 10 — 8 Total $ 130,180 $ 26,832 $ 6,205 $ 6,122 December 31, 2019 Residential Mortgage Residential home equity and direct Indirect auto Indirect Other Consumer: Performing $ 52,016 $ 26,977 $ 24,342 $ 11,098 Nonperforming 55 67 100 2 Total $ 52,071 $ 27,044 $ 24,442 $ 11,100 |
Summary of Allowance for Credit Losses | The following tables present activity in the ACL: (Dollars in millions) Balance at Jan 1, 2019 Charge-Offs Recoveries Provision (Benefit) Other Balance at Mar 31, 2019 Commercial: Commercial and industrial $ 546 $ (17) $ 6 $ 13 $ — $ 548 CRE 142 (8) — 18 — 152 Commercial construction 48 — 1 (5) — 44 Lease financing 11 (1) — 1 — 11 Consumer: Residential mortgage 232 (5) 1 (3) — 225 Residential home equity and direct 104 (20) 6 13 — 103 Indirect auto 298 (92) 13 81 — 300 Indirect other 58 (17) 4 13 — 58 Credit card 110 (24) 6 20 — 112 PCI 9 — — (1) — 8 ALLL 1,558 (184) 37 150 — 1,561 RUFC 93 — — 5 — 98 ACL $ 1,651 $ (184) $ 37 $ 155 $ — $ 1,659 (Dollars in millions) Balance at Jan 1, 2020 (1) Charge-Offs Recoveries Provision (Benefit) Other (2) Balance at Mar 31, 2020 Commercial: Commercial and industrial $ 560 $ (39) $ 17 $ 371 $ 904 1,813 CRE 150 (1) — 68 82 299 Commercial construction 52 (3) 1 22 16 88 Lease financing 10 (2) — (23) 94 79 Consumer: Residential mortgage 176 (11) 2 (4) 264 427 Residential home equity and direct 107 (68) 15 102 451 607 Indirect auto 304 (142) 23 189 818 1,192 Indirect other 60 (18) 7 12 152 213 Student — (8) — 34 120 146 Credit card 122 (53) 8 95 175 347 PCI 8 — — — (8) — ALLL 1,549 (345) 73 866 3,068 5,211 RUFC 340 — — 27 33 400 ACL $ 1,889 $ (345) $ 73 $ 893 $ 3,101 $ 5,611 (1) Balance is prior to the adoption of CECL. (2) Other activity includes the adoption of CECL, the ALLL for PCD acquisitions and other activity. |
Summary of purchased student loans with credit deterioration at acquisition | The following table provides a summary of purchased student loans with credit deterioration at acquisition: Three Months Ended March 31, 2020 Par value $ 242 ALLL at acquisition (3) Non-credit premium (discount) 1 Purchase price $ 240 |
Summary of nonperforming loans, excluding LHFS | The following table provides a summary of nonperforming loans, excluding LHFS. Interest income recognized on nonperforming loans HFI was $8 million for the three months ended March 31, 2020. Recorded Investment Three Months Ended March 31, 2020 Without an ALLL With an ALLL Commercial: Commercial and industrial $ 136 $ 307 CRE 1 17 Commercial construction — 2 Lease financing 15 12 Consumer: Residential mortgage 3 245 Residential home equity and direct 1 169 Indirect auto — 125 Indirect other — 1 Total $ 156 $ 878 |
Schedule of Loans Individually Evaluated for Impairment | The following table sets forth certain information regarding impaired loans, excluding PCI and LHFS, that were individually evaluated for impairment. This table excludes guaranteed student loans and guaranteed residential mortgages for which there was nominal risk of principal loss due to the government guarantee or other credit enhancements. UPB Recorded Investment Related ALLL Average Recorded Investment Interest Income Recognized As of / For The Year Ended December 31, 2019 Without an ALLL With an ALLL Commercial: Commercial and industrial $ 339 $ 124 $ 167 $ 20 $ 298 $ 6 CRE 29 3 26 2 71 1 Commercial construction 39 — 38 7 5 — Lease financing 18 7 2 — 2 — Consumer: Residential mortgage 650 92 527 42 799 34 Residential home equity and direct 76 24 37 5 65 3 Indirect auto 367 9 349 64 334 53 Indirect other 5 — 5 1 4 — Credit card 31 — 31 12 28 1 Total $ 1,554 $ 259 $ 1,182 $ 153 $ 1,606 $ 98 |
Schedule of Performing and Nonperforming TDRs | TDRs The following table presents a summary of TDRs: (Dollars in millions) Mar 31, 2020 Dec 31, 2019 Performing TDRs: Commercial: Commercial and industrial $ 65 $ 47 CRE 7 6 Commercial construction 36 37 Lease financing 1 — Consumer: Residential mortgage 513 470 Residential home equity and direct 66 51 Indirect auto 350 333 Indirect other 5 5 Student 1 — Credit card 35 31 Total performing TDRs 1,079 980 Nonperforming TDRs 121 82 Total TDRs $ 1,200 $ 1,062 ALLL attributable to TDRs $ 159 $ 132 |
Summary Of Primary Reason Loan Modifications Were Classified as TDRs | The primary reason loan modifications were classified as TDRs is summarized below. Balances represent the recorded investment at the end of the quarter in which the modification was made. Rate modifications consist of TDRs made with below market interest rates, including those that also have modifications of loan structures. As of / for the Three Months Ended March 31, 2020 Type of Modification Prior Quarter Loan Balance ALLL at Period End Rate Structure Newly designated TDRs: Commercial: Commercial and industrial $ 28 $ 3 $ 36 $ 2 CRE 1 — 1 — Lease financing 1 — 1 — Consumer: Residential mortgage 77 15 94 5 Residential home equity and direct 17 5 23 1 Indirect auto 56 14 73 5 Indirect other 1 — 1 — Student — 1 1 — Credit card 10 — 10 3 Re-modification of previously designated TDRs 18 1 As of / for the Three Months Ended March 31, 2019 Type of Modification Prior Quarter Loan Balance ALLL at Period End Rate Structure Newly designated TDRs: Commercial: Commercial and industrial $ 26 $ 3 $ 19 $ 3 CRE 1 — 3 — Consumer: Residential mortgage 73 8 75 6 Residential home equity and direct 3 1 3 1 Indirect auto 47 1 51 11 Indirect other 1 — 1 — Credit card 6 — 6 3 Re-modification of previously designated TDRs 23 5 |
Selected Information About Nonperforming Assets | The following table presents a summary of nonperforming assets and residential mortgage loans in the process of foreclosure: (Dollars in millions) Mar 31, 2020 Dec 31, 2019 Nonperforming loans and leases HFI (1) $ 1,034 $ 454 Nonperforming LHFS 41 107 Foreclosed real estate 63 82 Other foreclosed property 39 41 Total nonperforming assets $ 1,177 $ 684 Residential mortgage loans in the process of foreclosure $ 300 $ 409 |
Selected Information About Loans And Leases Unearned | The following table presents additional information about loans and leases: (Dollars in millions) Mar 31, 2020 Dec 31, 2019 Unearned income, discounts and net deferred loan fees and costs, excluding PCI $ 3,140 $ 4,069 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amounts of Goodwill Attributable to Operating Segments | (Dollars in millions) CB&W C&CB IH Total Goodwill, January 1, 2019 $ 3,906 $ 3,938 $ 1,974 $ 9,818 Mergers and acquisitions 10,134 4,187 21 14,342 Adjustments — — (6) (6) Goodwill, December 31, 2019 $ 14,040 $ 8,125 $ 1,989 $ 24,154 Mergers and acquisitions — — 31 31 Adjustments 1,483 (1,741) — (258) Goodwill, March 31, 2020 $ 15,523 $ 6,384 $ 2,020 $ 23,927 |
Identifiable Intangible Assets Subject to Amortization | The following table, which excludes fully amortized intangibles, presents information for identifiable intangible assets: Weighted Average Remaining Amortization Period March 31, 2020 December 31, 2019 (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount CDI 9.3 years $ 2,599 $ (485) $ 2,114 $ 2,474 $ (365) $ 2,109 Other, primarily client relationship intangibles 11.2 1,873 (819) 1,054 1,808 (775) 1,033 Total $ 4,472 $ (1,304) $ 3,168 $ 4,282 $ (1,140) $ 3,142 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Summary of Residential Mortgage Banking Activities | The following tables summarize residential mortgage servicing activities: (Dollars in millions) Mar 31, 2020 Dec 31, 2019 UPB of residential mortgage loan servicing portfolio $ 276,304 $ 279,558 UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate 219,979 219,347 Mortgage loans sold with recourse 395 371 Maximum recourse exposure from mortgage loans sold with recourse liability 241 212 Indemnification, recourse and repurchase reserves 66 44 As of / For the Three Months Ended March 31, 2020 2019 UPB of residential mortgage loans sold from LHFS $ 12,669 $ 1,300 Pre-tax gains recognized on mortgage loans sold and held for sale 188 17 Servicing fees recognized from mortgage loans serviced for others 169 61 Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others 0.31 % 0.28 % Weighted average interest rate on mortgage loans serviced for others 4.02 4.06 |
Analysis of Activity in Residential MSRs | The following table presents a roll forward of the carrying value of residential MSRs recorded at fair value: Three Months Ended March 31, 2020 2019 Residential MSRs, carrying value, January 1 $ 2,371 $ 957 Other additions 178 15 Change in fair value due to changes in valuation inputs or assumptions: Prepayment speeds (522) (55) OAS 45 4 Servicing costs — — Realization of expected net servicing cash flows, passage of time and other (148) (33) Residential MSRs, carrying value, March 31 $ 1,924 $ 888 |
Residential MSRs Sensitivity | The sensitivity of the fair value of the Company's residential MSRs to changes in key assumptions is presented in the following table: March 31, 2020 December 31, 2019 Range Weighted Average Range Weighted Average (Dollars in millions) Min Max Min Max Prepayment speed 9.4 % 19.0 % 11.2 % 8.4 % 18.6 % 9.6 % Effect on fair value of a 10% increase $ (104) $ (102) Effect on fair value of a 20% increase (198) (195) OAS 2.8 % 12.8 % 5.9 % 4.0 % 13.5 % 6.7 % Effect on fair value of a 10% increase $ (39) $ (54) Effect on fair value of a 20% increase (76) (106) Composition of loans serviced for others: Fixed-rate residential mortgage loans 98.6 % 98.5 % Adjustable-rate residential mortgage loans 1.4 1.5 Total 100.0 % 100.0 % Weighted average life 4.3 years 5.4 years |
Summary of Commercial Mortgage Banking Activities | The following table summarizes commercial mortgage servicing activities for the periods presented: (Dollars in millions) Mar 31, 2020 Dec 31, 2019 UPB of CRE mortgages serviced for others $ 71,391 $ 70,404 CRE mortgages serviced for others covered by recourse provisions 8,592 8,676 Maximum recourse exposure from CRE mortgages sold with recourse liability 2,490 2,479 Recorded reserves related to recourse exposure 18 13 CRE mortgages originated during the year-to-date period 1,271 8,062 Commercial MSRs at fair value 226 247 |
Other Assets and Liabilites (Ta
Other Assets and Liabilites (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Assets and Liabilities | |
Lessee, Operating Lease, Liability, Maturity | The following table presents additional information on leases, and excludes assets related to the lease financing businesses: March 31, 2020 Operating Leases Finance Leases ROU assets $ 1,773 $ 43 Maturities of lease liabilities: 2020 $ 334 $ 10 2021 382 11 2022 337 11 2023 284 7 2024 237 5 2025 78 1 Thereafter 671 12 Total lease payments 2,323 57 Less: imputed interest 244 6 Total lease liabilities $ 2,079 $ 51 Weighted average remaining term 7.5 years 7.4 years Weighted average discount rate 2.6 % 4.1 % Three Months Ended March 31, 2020 2019 Operating lease costs $ 96 $ 49 |
Schedule of Assets Held Under Operating Leases and Related Activities | The following table presents a summary of assets under operating leases and activity related to assets under operating leases. This table excludes subleases on assets included in premises and equipment. (Dollars in millions) Mar 31, 2020 Dec 31, 2019 Assets held under operating leases (1) $ 2,126 $ 2,236 Accumulated depreciation (443) (391) Net $ 1,683 $ 1,845 (1) Includes certain land parcels subject to operating leases that have indefinite lives. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Summary of Cash Dividends Declared per Share | The following table presents the dividends declared related to common stock. For information related to preferred stock dividends, see Note12. Shareholders’ Equity of the Annual Report on Form 10-K for the year ended December 31, 2019. Three Months Ended March 31, 2020 2019 Cash dividends declared per share $ 0.450 $ 0.405 |
AOCI (Tables)
AOCI (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in AOCI | AOCI includes the after-tax change in unrecognized net costs related to defined benefit pension and OPEB plans as well as unrealized gains and losses on cash flow hedges and AFS securities. Three Months Ended March 31, 2020 and 2019 Pension and OPEB Costs Cash Flow Hedges AFS Securities Other, net Total AOCI balance, January 1, 2019 $ (1,164) $ (31) $ (500) $ (20) $ (1,715) OCI before reclassifications, net of tax — (30) 314 2 286 Amounts reclassified from AOCI: Before tax 23 (5) (6) — 12 Tax effect 6 (1) (1) — 4 Amounts reclassified, net of tax 17 (4) (5) — 8 Total OCI, net of tax 17 (34) 309 2 294 AOCI balance, March 31, 2019 $ (1,147) $ (65) $ (191) $ (18) $ (1,421) AOCI balance, January 1, 2020 $ (1,122) $ (101) $ 380 $ (1) $ (844) OCI before reclassifications, net of tax — — 1,690 (5) 1,685 Amounts reclassified from AOCI: Before tax 20 15 41 — 76 Tax effect 5 4 10 — 19 Amounts reclassified, net of tax 15 11 31 — 57 Total OCI, net of tax 15 11 1,721 (5) 1,742 AOCI balance, March 31, 2020 $ (1,107) $ (90) $ 2,101 $ (6) $ 898 Primary income statement location of amounts reclassified from AOCI Other expense Net interest income Net interest income Net interest income |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost for defined benefit pension plans are summarized in the following table: Three Months Ended March 31, Location 2020 2019 Service cost Personnel expense $ 118 $ 54 Interest cost Other expense 78 57 Estimated return on plan assets Other expense (216) (113) Amortization and other Other expense 19 25 Net periodic benefit cost $ (1) $ 23 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments and Contingencies | The following table summarizes certain tax credit, private equity, and certain other equity method investments. (Dollars in millions) Balance Sheet Location Mar 31, 2020 Dec 31, 2019 Investments in affordable housing projects: Carrying amount Other assets $ 3,776 $ 3,684 Amount of future funding commitments included in carrying amount Other liabilities 1,154 1,271 Lending exposure 540 647 Renewable energy investments: Carrying amount Other assets 107 81 Amount of future funding commitments not included in carrying amount N/A 211 246 Private equity and certain other equity method investments: Carrying amount Other assets 1,597 1,556 Amount of future funding commitments not included in carrying amount N/A 378 331 |
Summary of Income Tax Contingencies | The following table presents a summary of tax credits and amortization associated with the Company's tax credit investment activity: Three Months Ended March 31, Income Statement Location 2020 2019 Tax credits: Investments in affordable housing projects Provision for income taxes $ 117 $ 79 Other community development investments Provision for income taxes 22 — Amortization and other changes in carrying amount: Investments in affordable housing projects Provision for income taxes $ 114 $ 69 Other community development investments Other noninterest income 20 — Renewable energy investments Other noninterest income — — |
Schedule of Off-Balance Sheet | The following is a summary of selected notional amounts of off-balance sheet financial instruments: (Dollars in millions) March 31, 2020 December 31, 2019 Commitments to extend, originate or purchase credit $ 159,924 $ 177,598 Residential mortgage loans sold with recourse 395 371 CRE mortgages serviced for others covered by recourse provisions 8,592 8,676 Letters of credit 5,050 5,181 |
Schedule of Pledged Assets | The following table provides the total carrying amount of pledged assets by asset type. (Dollars in millions) Mar 31, 2020 Dec 31, 2019 Pledged securities $ 10,404 $ 11,283 Pledged loans: FRB 71,786 30,238 FHLB 79,009 80,816 Unused borrowing capacity: FRB 49,652 21,169 FHLB 21,677 37,303 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present fair value information for assets and liabilities measured at fair value on a recurring basis: March 31, 2020 Total Level 1 Level 2 Level 3 Netting Adjustments (1) Assets: Trading assets: U.S. Treasury $ 630 $ — $ 630 $ — $ — GSE 343 — 343 — — Agency MBS - residential 601 — 601 — — Agency MBS - commercial 58 — 58 — — States and political subdivisions 43 — 43 — — Corporate and other debt securities 536 — 536 — — Loans 1,569 — 1,569 — — Other 83 78 5 — — Total trading assets 3,863 78 3,785 — — AFS securities: U.S. Treasury 2,319 — 2,319 — — GSE 1,933 — 1,933 — — Agency MBS - residential 71,753 — 71,753 — — Agency MBS - commercial 1,519 — 1,519 — — States and political subdivisions 539 — 539 — — Non-agency MBS 298 — — 298 — Other 37 — 37 — — Total AFS securities 78,398 — 78,100 298 — LHFS at fair value 3,655 — 3,655 — — MSRs at fair value 2,150 — — 2,150 — Other assets: Derivative assets 4,040 548 6,746 177 (3,431) Equity securities 641 603 38 — — Private equity investments 448 — — 448 — Total assets $ 93,195 $ 1,229 $ 92,324 $ 3,073 $ (3,431) Liabilities: Derivative liabilities $ 764 $ 674 $ 3,234 $ 34 $ (3,178) Securities sold short 1,085 — 1,085 — — Total liabilities $ 1,849 $ 674 $ 4,319 $ 34 $ (3,178) December 31, 2019 Total Level 1 Level 2 Level 3 Netting Adjustments (1) Assets: Trading assets: U.S. Treasury $ 227 $ — $ 227 $ — $ — GSE 296 — 296 — — Agency MBS - residential 497 — 497 — — Agency MBS - commercial 68 — 68 — — States and political subdivisions 82 — 82 — — Non-agency MBS 277 — 277 — — Corporate and other debt securities 1,204 — 1,204 — — Loans 2,948 — 2,948 — — Other 134 90 44 — — Total trading assets 5,733 90 5,643 — — AFS securities: U.S. Treasury 2,276 — 2,276 — — GSE 1,881 — 1,881 — — Agency MBS - residential 68,236 — 68,236 — — Agency MBS - commercial 1,341 — 1,341 — — States and political subdivisions 585 — 585 — — Non-agency MBS 368 — — 368 — Other 40 — 40 — — Total AFS securities 74,727 — 74,359 368 — LHFS 5,673 — 5,673 — — MSRs 2,618 — — 2,618 — Other assets: Derivative assets 2,053 606 3,620 34 (2,207) Equity securities 817 815 2 — — Private equity investments 440 — — 440 — Total assets $ 92,061 $ 1,511 $ 89,297 $ 3,460 $ (2,207) Liabilities: Derivative liabilities $ 366 $ 204 $ 3,117 $ 15 $ (2,970) Securities sold short 1,074 18 1,056 — — Total liabilities $ 1,440 $ 222 $ 4,173 $ 15 $ (2,970) (1) Refer to "Note 15. Derivative Financial Instruments" for additional discussion on netting adjustments. |
Rollforward of Level 3 Assets and Liabilities | Activity for Level 3 assets and liabilities is summarized below: Three Months Ended Trading Securities Non-agency MBS MSRs Net Derivatives Private Equity Investments Balance at January 1, 2019 $ 3 $ 391 $ 1,108 $ 12 $ 393 Total realized and unrealized gains (losses): Included in earnings — 2 (54) 8 23 Included in unrealized net holding gains (losses) in OCI — 1 — — — Purchases 15 — — — 7 Issuances — — 22 17 — Sales (7) — — — (33) Settlements — (8) (40) (30) (2) Balance at March 31, 2019 $ 11 $ 386 $ 1,036 $ 7 $ 388 Balance at January 1, 2020 $ — $ 368 $ 2,618 $ 19 $ 440 Total realized and unrealized gains (losses): Included in earnings — 3 (526) 111 2 Included in unrealized net holding gains (losses) in OCI — (64) — — — Purchases — — — — 27 Issuances — — 187 155 — Sales — — — — — Settlements — (9) (129) (142) (21) Balance at March 31, 2020 $ — $ 298 $ 2,150 $ 143 $ 448 Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at March 31, 2020 $ — $ 3 $ (526) $ 154 $ — Primary income statement location of realized gains (losses) included in earnings Interest income Interest income Residential mortgage income and Commercial real estate related income Residential mortgage income and Commercial real estate related income Other income |
Fair Value and UPB of LHFS | The following table details the fair value and UPB of LHFS that were elected to be measured at fair value. Trading loans, included in other trading assets, were also elected to be measured at fair value. March 31, 2020 December 31, 2019 (Dollars in millions) Fair Value UPB Difference Fair Value UPB Difference Trading loans $ 1,569 $ 1,891 $ (322) $ 2,948 $ 2,982 $ (34) LHFS at fair value 3,655 3,485 170 5,673 5,563 110 |
Assets Measured at Fair Value on a Nonrecurring Basis | The following table provides information about certain assets measured at fair value on a nonrecurring basis. The carrying values represent end of period values, which approximate the fair value measurements that occurred on the various measurement dates throughout the period. The valuation adjustments represent the amounts recorded during the period regardless of whether the asset is still held at period end. These assets are considered to be Level 3 assets (excludes PCI). 2020 2019 As of / For The Three Months Ended March 31, Carrying Value Valuation Adjustments Carrying Value Valuation Adjustments LHFS $ 427 $ (25) $ — $ — Loans and leases 101 (7) 154 (18) Foreclosed real estate 63 (73) 33 (63) |
Carrying Amounts and Fair Value of Financial Assets and Liabilities Not Recorded at Fair Value | Financial assets and liabilities not recorded at fair value are summarized below: March 31, 2020 December 31, 2019 (Dollars in millions) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Loans and leases HFI, net of ALLL Level 3 $ 314,018 $ 314,838 $ 298,293 $ 298,586 Financial liabilities: Time deposits Level 2 35,539 35,821 35,896 35,885 Long-term debt Level 2 65,662 64,998 41,339 42,051 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table presents the gross notional amounts and estimated fair value of derivative instruments employed by the Company. Truist held no cash flow hedges as of March 31, 2020 and December 31, 2019. March 31, 2020 December 31, 2019 Notional Amount Fair Value Notional Amount Fair Value (Dollars in millions) Assets Liabilities Assets Liabilities Fair value hedges: Interest rate contracts: Swaps hedging long-term debt $ 23,701 $ 577 $ — $ 23,701 $ 113 $ (25) Options hedging long-term debt 3,407 — (5) 3,407 — (2) Swaps hedging commercial loans 44 — — 44 — — Total 27,152 577 (5) 27,152 113 (27) Not designated as hedges: Client-related and other risk management: Interest rate contracts: Swaps 150,165 4,029 (1,026) 144,473 1,817 (673) Options 24,997 59 (23) 25,938 28 (19) Forward commitments 10,902 140 (147) 7,907 6 (7) Other 2,483 — — 1,807 — — Equity contracts 39,452 1,483 (1,781) 38,426 1,988 (2,307) Credit contracts: Loans and leases 1,179 18 (22) 894 — (34) Risk participation agreements 6,829 — (9) 6,696 — (2) Total return swaps 1,924 318 (4) 2,531 27 (11) Trading 677 5 (5) — — — Foreign exchange contracts 13,192 242 (259) 12,986 144 (164) Commodity 2,800 346 (342) 2,659 67 (65) Total 254,600 6,640 (3,618) 244,317 4,077 (3,282) Mortgage banking: Interest rate contracts: Swaps 300 — — 535 — — Interest rate lock commitments 7,605 177 (22) 4,427 34 (2) When issued securities, forward rate agreements and forward commitments 10,855 27 (224) 11,997 10 (18) Other 668 6 — 603 2 — Total 19,428 210 (246) 17,562 46 (20) MSRs: Interest rate contracts: Swaps 21,142 — — 19,196 — — Options 1,684 15 (19) 1,519 22 (2) When issued securities, forward rate agreements and forward commitments 1,224 29 (54) 5,560 2 (5) Other 739 — — 567 — — Total 24,789 44 (73) 26,842 24 (7) Total derivatives not designated as hedges 298,817 6,894 (3,937) 288,721 4,147 (3,309) Total derivatives $ 325,969 7,471 (3,942) $ 315,873 4,260 (3,336) Gross amounts in the Consolidated Balance Sheets: Amounts subject to master netting arrangements (1,988) 1,988 (1,708) 1,708 Cash collateral (received) posted for amounts subject to master netting arrangements (1,443) 1,190 (499) 1,262 Net amount $ 4,040 $ (764) $ 2,053 $ (366) |
Netting of Financial Instruments - Derivatives | The following table presents the offsetting of derivative instruments including financial instrument collateral related to legally enforceable master netting agreements and amounts held or pledged as collateral. U.S. GAAP does not permit netting of non-cash collateral balances in the consolidated balance sheet: March 31, 2020 Gross Amount Net Amount Presented in the Consolidated Balance Sheets Held/Pledged Financial Instruments Net Amount Derivative assets: Derivatives subject to master netting arrangement or similar arrangement $ 6,333 $ (2,897) $ 3,436 $ (24) $ 3,412 Derivatives not subject to master netting arrangement or similar arrangement 590 — 590 (1) 589 Exchange traded derivatives 548 (534) 14 — 14 Total derivative assets $ 7,471 $ (3,431) $ 4,040 $ (25) $ 4,015 Derivative liabilities: Derivatives subject to master netting arrangement or similar arrangement $ (3,100) $ 2,644 $ (456) $ 3 $ (453) Derivatives not subject to master netting arrangement or similar arrangement (168) — (168) 13 (155) Exchange traded derivatives (674) 534 (140) — (140) Total derivative liabilities $ (3,942) $ 3,178 $ (764) $ 16 $ (748) December 31, 2019 Gross Amount Net Amount Presented in the Consolidated Balance Sheets Held/Pledged Financial Instruments Net Amount Derivative assets: Derivatives subject to master netting arrangement or similar arrangement $ 3,516 $ (2,003) $ 1,513 $ (17) $ 1,496 Derivatives not subject to master netting arrangement or similar arrangement 138 — 138 (1) 137 Exchange traded derivatives 606 (204) 402 — 402 Total derivative assets $ 4,260 $ (2,207) $ 2,053 $ (18) $ 2,035 Derivative liabilities: Derivatives subject to master netting arrangement or similar arrangement $ (2,939) $ 2,761 $ (178) $ 22 $ (156) Derivatives not subject to master netting arrangement or similar arrangement (193) 5 (188) 11 (177) Exchange traded derivatives (204) 204 — — — Total derivative liabilities $ (3,336) $ 2,970 $ (366) $ 33 $ (333) |
Schedule of Fair Value Hedging Basis Adjustments | The following table presents the carrying value of hedged items in fair value hedging relationships: March 31, 2020 December 31, 2019 Hedge Basis Adjustment Hedge Basis Adjustment (Dollars in millions) Hedged Asset / Liability Basis Items Currently Designated Items No Longer Designated Hedged Asset / Liability Basis Items Currently Designated Items No Longer Designated AFS securities $ 433 $ — $ 56 $ 473 $ — $ 65 Loans and leases 518 6 14 528 3 15 Long-term debt 29,980 1,098 22 28,557 174 23 |
Impact of Derivatives on the Consolidated Statements of Income and Comprehensive Income | The following table presents pre-tax gain (loss) recognized in income for derivative instruments not designated as hedges: Three Months Ended March 31, (Dollars in millions) Income Statement Location 2020 2019 Client-related and other risk management: Interest rate contracts Investment banking and trading income and other income $ (64) $ 10 Foreign exchange contracts Investment banking and trading income 107 2 Equity contracts Investment banking and trading income and other income (10) — Credit contracts Investment banking and trading income and other income 459 — Commodity contracts Investment banking and trading income 3 — Mortgage banking: Interest rate contracts Residential mortgage income (122) (15) Interest rate contracts Commercial real estate related income 2 — MSRs: Interest rate contracts Residential mortgage income 495 54 Interest rate contracts Commercial real estate related income 20 — Total $ 890 $ 51 |
Derivatives Credit Risk - Risk Participation Agreements | The following table presents additional information related to interest rate derivative risk participation agreements and total return swaps: (Dollars in millions) Mar 31, 2020 Dec 31, 2019 Risk participation agreements: Maximum potential amount of exposure $ 410 $ 291 Total return swaps: Cash collateral held 783 653 |
Schedule of Derivative Instruments Summary of Collateral Positions with Counterparties | The following table summarizes collateral positions with counterparties: (Dollars in millions) Mar 31, 2020 Dec 31, 2019 Dealer and other counterparties: Cash and other collateral received from counterparties $ 1,467 $ 514 Derivatives in a net gain position secured by collateral received 1,581 615 Unsecured positions in a net gain with counterparties after collateral postings 114 101 Cash collateral posted to dealer counterparties 1,005 1,255 Derivatives in a net loss position secured by collateral received 1,052 1,300 Additional collateral that would have been posted had the Company's credit ratings dropped below investment grade 13 12 Central counterparties clearing: Cash collateral, including initial margin, posted to central clearing parties 220 30 Derivatives in a net loss position 199 31 Derivatives in a net gain position 5 — Securities pledged to central counterparties clearing 663 513 |
Computation of EPS (Tables)
Computation of EPS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted EPS | Basic and diluted EPS calculations are presented in the following table: Three Months Ended March 31, 2020 2019 Net income available to common shareholders $ 986 $ 749 Weighted average number of common shares 1,344,372 764,135 Effect of dilutive outstanding equity-based awards 13,173 9,936 Weighted average number of diluted common shares 1,357,545 774,071 Basic EPS $ 0.73 $ 0.98 Diluted EPS $ 0.73 $ 0.97 Anti-dilutive awards 1,725 — |
Operating Segments (Tables)
Operating Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents results by segment: Three Months Ended March 31, CB&W C&CB IH 2020 2019 2020 2019 2020 2019 Net interest income (expense) $ 1,860 $ 828 $ 1,534 $ 739 $ 36 $ 34 Net intersegment interest income (expense) 388 193 (194) (105) (11) (11) Segment net interest income 2,248 1,021 1,340 634 25 23 Allocated provision for credit losses 437 131 399 20 1 3 Segment net interest income after provision 1,811 890 941 614 24 20 Noninterest income 1,072 507 460 244 557 515 Noninterest expense 1,993 882 886 315 440 417 Income (loss) before income taxes 890 515 515 543 141 118 Provision (benefit) for income taxes 209 125 92 113 36 30 Segment net income (loss) $ 681 $ 390 $ 423 $ 430 $ 105 $ 88 Identifiable assets (period end) $ 168,356 $ 75,873 $ 203,363 $ 85,911 $ 7,009 $ 6,376 OT&C (1) Total 2020 2019 2020 2019 Net interest income (expense) $ 220 $ 95 $ 3,650 $ 1,696 Net intersegment interest income (expense) (183) (77) — — Segment net interest income 37 18 3,650 1,696 Allocated provision for credit losses 56 1 893 155 Segment net interest income after provision (19) 17 2,757 1,541 Noninterest income (128) (64) 1,961 1,202 Noninterest expense 112 154 3,431 1,768 Income (loss) before income taxes (259) (201) 1,287 975 Provision (benefit) for income taxes (113) (91) 224 177 Segment net income (loss) $ (146) $ (110) $ 1,063 $ 798 Identifiable assets (period end) $ 127,501 $ 59,523 $ 506,229 $ 227,683 (1) Includes financial data from business units below the quantitative and qualitative thresholds requiring disclosure. |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - CECL impact on Allowance for Credit Losses $ in Millions | Jan. 01, 2020USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | $ 3,100 |
PCD | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 378 |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Decrease in Retained Earnings | $ 2,100 |
Basis of Presentation -Summary
Basis of Presentation -Summary of Loans and Leases Policies (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Commercial: | Commercial and industrial | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 90 days |
Threshold Period Past Due for Charge-off of Loans | 90 days |
Commercial: | CRE | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 90 days |
Threshold Period Past Due for Charge-off of Loans | 90 days |
Commercial: | Commercial construction | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 90 days |
Threshold Period Past Due for Charge-off of Loans | 90 days |
Commercial: | Lease financing | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 90 days |
Threshold Period Past Due for Charge-off of Loans | 90 days |
Consumer: | Residential Mortgage | Minimum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 90 days |
Threshold Period Past Due for Charge-off of Loans | 90 days |
Consumer: | Residential Mortgage | Maximum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 180 days |
Threshold Period Past Due for Charge-off of Loans | 210 days |
Consumer: | Residential home equity and direct | Minimum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 90 days |
Threshold Period Past Due for Charge-off of Loans | 90 days |
Consumer: | Residential home equity and direct | Maximum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 120 days |
Threshold Period Past Due for Charge-off of Loans | 180 days |
Consumer: | Indirect auto | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 90 days |
Threshold Period Past Due for Charge-off of Loans | 120 days |
Consumer: | Indirect other | Minimum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 90 days |
Threshold Period Past Due for Charge-off of Loans | 120 days |
Consumer: | Indirect other | Maximum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold Period Past Due for Placing on Nonaccrual Status of Loans | 120 days |
Threshold Period Past Due for Charge-off of Loans | 180 days |
Consumer: | Student | Minimum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold Period Past Due for Charge-off of Loans | 120 days |
Consumer: | Student | Maximum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold Period Past Due for Charge-off of Loans | 180 days |
Credit card | Minimum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold Period Past Due for Charge-off of Loans | 90 days |
Credit card | Maximum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold Period Past Due for Charge-off of Loans | 180 days |
Business Combinations - Narativ
Business Combinations - Narative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||
Loans and leases | $ 319,229 | $ 299,842 |
Divestiture [Member] | ||
Business Acquisition [Line Items] | ||
Loans and leases | 400 | |
Deposits | $ 2,400 |
Business Combinations - Assets
Business Combinations - Assets Acquired and Liabilities Asssumed (Details) - USD ($) $ in Millions | Dec. 06, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Less: Net assets | $ 19,484 | |||
Goodwill | $ 23,927 | $ 24,154 | $ 9,818 | |
SunTrust Banks Inc. | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred | 33,547 | |||
Trading assets | 5,710 | |||
AFS securities | 30,986 | |||
LHFS | 3,741 | |||
UPB | 158,495 | |||
Loans | 154,175 | |||
Premises and equipment | 1,575 | |||
CDI and other intangible assets | 2,700 | |||
MSRs | 1,605 | |||
Other assets | 13,771 | |||
Total assets | 221,743 | |||
Deposits | (170,633) | |||
Short-term borrowings | (6,837) | |||
Long-term debt | (19,457) | |||
Other liabilities | (5,224) | |||
Total liabilities | (202,151) | |||
Noncontrolling interest | (108) | |||
Less: Net assets | 19,484 | |||
Goodwill | 14,063 | |||
SunTrust Banks Inc. | Cash and Cash Equivalents | ||||
Business Acquisition [Line Items] | ||||
Cash and Equivalents | 1,621 | |||
SunTrust Banks Inc. | Interest-bearing Deposits | ||||
Business Acquisition [Line Items] | ||||
Cash and Equivalents | 4,668 | |||
SunTrust Banks Inc. | Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell | ||||
Business Acquisition [Line Items] | ||||
Cash and Equivalents | 1,191 | |||
SunTrust Banks Inc. | Commercial and industrial | ||||
Business Acquisition [Line Items] | ||||
UPB | 68,687 | |||
Loans | 67,101 | |||
SunTrust Banks Inc. | CRE | ||||
Business Acquisition [Line Items] | ||||
UPB | 9,509 | |||
Loans | 9,357 | |||
SunTrust Banks Inc. | Lease financing | ||||
Business Acquisition [Line Items] | ||||
UPB | 3,967 | |||
Loans | 3,882 | |||
SunTrust Banks Inc. | Residential Mortgage | ||||
Business Acquisition [Line Items] | ||||
UPB | 28,191 | |||
Loans | 27,180 | |||
SunTrust Banks Inc. | Residential home equity and direct | ||||
Business Acquisition [Line Items] | ||||
UPB | 15,917 | |||
Loans | 15,628 | |||
SunTrust Banks Inc. | Commercial construction | ||||
Business Acquisition [Line Items] | ||||
UPB | 2,136 | |||
Loans | 2,096 | |||
SunTrust Banks Inc. | Indirect auto | ||||
Business Acquisition [Line Items] | ||||
UPB | 12,373 | |||
Loans | 12,203 | |||
SunTrust Banks Inc. | Indirect other | ||||
Business Acquisition [Line Items] | ||||
UPB | 4,678 | |||
Loans | 4,445 | |||
SunTrust Banks Inc. | Student | ||||
Business Acquisition [Line Items] | ||||
UPB | 6,867 | |||
Loans | 6,657 | |||
SunTrust Banks Inc. | Credit card | ||||
Business Acquisition [Line Items] | ||||
UPB | 2,518 | |||
Loans | 2,500 | |||
SunTrust Banks Inc. | PCI | ||||
Business Acquisition [Line Items] | ||||
UPB | 3,652 | |||
Loans | $ 3,126 |
Securities Financing Activiti_3
Securities Financing Activities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Offsetting [Abstract] | ||
Securities Purchased under Agreements to Resell | $ 1,295 | $ 986 |
Securities Borrowed | 501 | 431 |
Securities borrowed or purchased under resale agreements | 1,796 | 1,417 |
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 12,696 | 18,218 |
Securities Sold under Agreements to Repurchase | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 1,529 | 1,969 |
Securities Sold under Agreements to Repurchase | U.S. Treasury | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 230 | 150 |
Securities Sold under Agreements to Repurchase | US Government-sponsored Enterprises Debt Securities [Member] | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 175 | 124 |
Securities Sold under Agreements to Repurchase | Residential Mortgage Backed Securities | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 720 | 1,069 |
Securities Sold under Agreements to Repurchase | Corporate Debt Securities | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 404 | 626 |
Securities Sold under Agreements to Repurchase | Maturity Overnight | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 1,168 | 1,440 |
Securities Sold under Agreements to Repurchase | Maturity Overnight | U.S. Treasury | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 230 | 115 |
Securities Sold under Agreements to Repurchase | Maturity Overnight | US Government-sponsored Enterprises Debt Securities [Member] | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 171 | 87 |
Securities Sold under Agreements to Repurchase | Maturity Overnight | Residential Mortgage Backed Securities | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 575 | 928 |
Securities Sold under Agreements to Repurchase | Maturity Overnight | Corporate Debt Securities | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 192 | 310 |
Securities Sold under Agreements to Repurchase | Maturity Less than 30 Days | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 361 | 429 |
Securities Sold under Agreements to Repurchase | Maturity Less than 30 Days | U.S. Treasury | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 0 | 35 |
Securities Sold under Agreements to Repurchase | Maturity Less than 30 Days | US Government-sponsored Enterprises Debt Securities [Member] | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 4 | 37 |
Securities Sold under Agreements to Repurchase | Maturity Less than 30 Days | Residential Mortgage Backed Securities | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 145 | 41 |
Securities Sold under Agreements to Repurchase | Maturity Less than 30 Days | Corporate Debt Securities | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | $ 212 | 316 |
Securities Sold under Agreements to Repurchase | Maturity 30 to 90 Days | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 100 | |
Securities Sold under Agreements to Repurchase | Maturity 30 to 90 Days | U.S. Treasury | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 0 | |
Securities Sold under Agreements to Repurchase | Maturity 30 to 90 Days | US Government-sponsored Enterprises Debt Securities [Member] | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 0 | |
Securities Sold under Agreements to Repurchase | Maturity 30 to 90 Days | Residential Mortgage Backed Securities | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | 100 | |
Securities Sold under Agreements to Repurchase | Maturity 30 to 90 Days | Corporate Debt Securities | ||
Offsetting Liabilities [Line Items] | ||
Short-term borrowings | $ 0 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Millions | Mar. 31, 2020USD ($) |
FNMA investments | |
Debt Securities Exceeding Ten Percent of Stockholders Equity [Line Items] | |
Securities, amortized cost | $ 15,400 |
Securities, fair value | 15,900 |
FHLMC investments | |
Debt Securities Exceeding Ten Percent of Stockholders Equity [Line Items] | |
Securities, amortized cost | 11,300 |
Securities, fair value | $ 11,700 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
AFS securities | ||
Amortized Cost | $ 75,650 | $ 74,227 |
Gross Unrealized Gains | 2,794 | 677 |
Gross Unrealized Losses | 46 | 177 |
AFS securities, Fair Value | 78,398 | 74,727 |
U.S. Treasury | ||
AFS securities | ||
Amortized Cost | 2,272 | 2,275 |
Gross Unrealized Gains | 47 | 7 |
Gross Unrealized Losses | 0 | 6 |
AFS securities, Fair Value | 2,319 | 2,276 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
AFS securities | ||
Amortized Cost | 1,846 | 1,847 |
Gross Unrealized Gains | 87 | 34 |
Gross Unrealized Losses | 0 | 0 |
AFS securities, Fair Value | 1,933 | 1,881 |
Agency MBS | Residential Mortgage Backed Securities | ||
AFS securities | ||
Amortized Cost | 69,307 | 67,983 |
Gross Unrealized Gains | 2,468 | 411 |
Gross Unrealized Losses | 22 | 158 |
AFS securities, Fair Value | 71,753 | 68,236 |
Agency MBS | Commercial Mortgage Backed Securities | ||
AFS securities | ||
Amortized Cost | 1,489 | 1,335 |
Gross Unrealized Gains | 31 | 13 |
Gross Unrealized Losses | 1 | 7 |
AFS securities, Fair Value | 1,519 | 1,341 |
States and political subdivisions | ||
AFS securities | ||
Amortized Cost | 513 | 557 |
Gross Unrealized Gains | 34 | 34 |
Gross Unrealized Losses | 8 | 6 |
AFS securities, Fair Value | 539 | 585 |
Non-agency MBS | ||
AFS securities | ||
Amortized Cost | 185 | 190 |
Gross Unrealized Gains | 127 | 178 |
Gross Unrealized Losses | 14 | 0 |
AFS securities, Fair Value | 298 | 368 |
Other | ||
AFS securities | ||
Amortized Cost | 38 | 40 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1 | 0 |
AFS securities, Fair Value | $ 37 | $ 40 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Estimated Fair Value by Contractual Maturity (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
AFS, Amortized Cost | ||
Due in one year or less | $ 1,422 | |
Due after one year through five years | 2,768 | |
Due after five years through ten years | 732 | |
Due after ten years | 70,728 | |
Debt Securities, Available-for-sale, Amortized Cost | 75,650 | $ 74,227 |
Debt Securities, Available-for-sale, Amortized Cost, Total | 75,650 | 74,227 |
AFS, Fair Value | ||
Due in one year or less | 1,440 | |
Due after one year through five years | 2,881 | |
Due after five years through ten years | 761 | |
Due after ten years | 73,316 | |
AFS securities, Fair Value | 78,398 | 74,727 |
Debt Securities, Available-for-sale, Total | 78,398 | 74,727 |
U.S. Treasury | ||
AFS, Amortized Cost | ||
Due in one year or less | 1,381 | |
Due after one year through five years | 876 | |
Due after five years through ten years | 15 | |
Due after ten years | 0 | |
Debt Securities, Available-for-sale, Amortized Cost | 2,272 | 2,275 |
Debt Securities, Available-for-sale, Amortized Cost, Total | 2,272 | 2,275 |
AFS, Fair Value | ||
Due in one year or less | 1,399 | |
Due after one year through five years | 903 | |
Due after five years through ten years | 17 | |
Due after ten years | 0 | |
AFS securities, Fair Value | 2,319 | 2,276 |
Debt Securities, Available-for-sale, Total | 2,319 | 2,276 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
AFS, Amortized Cost | ||
Due in one year or less | 0 | |
Due after one year through five years | 1,769 | |
Due after five years through ten years | 0 | |
Due after ten years | 77 | |
Debt Securities, Available-for-sale, Amortized Cost | 1,846 | 1,847 |
Debt Securities, Available-for-sale, Amortized Cost, Total | 1,846 | 1,847 |
AFS, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 1,853 | |
Due after five years through ten years | 0 | |
Due after ten years | 80 | |
AFS securities, Fair Value | 1,933 | 1,881 |
Debt Securities, Available-for-sale, Total | 1,933 | 1,881 |
States and political subdivisions | ||
AFS, Amortized Cost | ||
Due in one year or less | 39 | |
Due after one year through five years | 114 | |
Due after five years through ten years | 151 | |
Due after ten years | 209 | |
Debt Securities, Available-for-sale, Amortized Cost | 513 | 557 |
Debt Securities, Available-for-sale, Amortized Cost, Total | 513 | 557 |
AFS, Fair Value | ||
Due in one year or less | 39 | |
Due after one year through five years | 116 | |
Due after five years through ten years | 163 | |
Due after ten years | 221 | |
AFS securities, Fair Value | 539 | 585 |
Debt Securities, Available-for-sale, Total | 539 | 585 |
Non-agency MBS | ||
AFS, Amortized Cost | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 0 | |
Due after ten years | 185 | |
Debt Securities, Available-for-sale, Amortized Cost | 185 | 190 |
Debt Securities, Available-for-sale, Amortized Cost, Total | 185 | 190 |
AFS, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 0 | |
Due after ten years | 298 | |
AFS securities, Fair Value | 298 | 368 |
Debt Securities, Available-for-sale, Total | 298 | 368 |
Agency MBS | Residential Mortgage Backed Securities | ||
AFS, Amortized Cost | ||
Due in one year or less | 0 | |
Due after one year through five years | 1 | |
Due after five years through ten years | 556 | |
Due after ten years | 68,750 | |
Debt Securities, Available-for-sale, Amortized Cost | 69,307 | 67,983 |
Debt Securities, Available-for-sale, Amortized Cost, Total | 69,307 | 67,983 |
AFS, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 1 | |
Due after five years through ten years | 570 | |
Due after ten years | 71,182 | |
AFS securities, Fair Value | 71,753 | 68,236 |
Debt Securities, Available-for-sale, Total | 71,753 | 68,236 |
Agency MBS | Commercial Mortgage Backed Securities | ||
AFS, Amortized Cost | ||
Due in one year or less | 0 | |
Due after one year through five years | 2 | |
Due after five years through ten years | 9 | |
Due after ten years | 1,478 | |
Debt Securities, Available-for-sale, Amortized Cost | 1,489 | 1,335 |
Debt Securities, Available-for-sale, Amortized Cost, Total | 1,489 | 1,335 |
AFS, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 2 | |
Due after five years through ten years | 10 | |
Due after ten years | 1,507 | |
AFS securities, Fair Value | 1,519 | 1,341 |
Debt Securities, Available-for-sale, Total | 1,519 | 1,341 |
Other | ||
AFS, Amortized Cost | ||
Due in one year or less | 2 | |
Due after one year through five years | 6 | |
Due after five years through ten years | 1 | |
Due after ten years | 29 | |
Debt Securities, Available-for-sale, Amortized Cost | 38 | 40 |
Debt Securities, Available-for-sale, Amortized Cost, Total | 38 | 40 |
AFS, Fair Value | ||
Due in one year or less | 2 | |
Due after one year through five years | 6 | |
Due after five years through ten years | 1 | |
Due after ten years | 28 | |
AFS securities, Fair Value | 37 | 40 |
Debt Securities, Available-for-sale, Total | $ 37 | $ 40 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Values of Investments in Continuous Unrealized Loss Positions (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
AFS securities, Fair Value | ||
Less than 12 months | $ 1,390 | $ 21,646 |
12 months or more | 418 | 1,594 |
Total | 1,808 | 23,240 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 29 | 157 |
12 months or more | 17 | 20 |
Total | 46 | 177 |
U.S. Treasury | ||
AFS securities, Fair Value | ||
Less than 12 months | 702 | |
12 months or more | 0 | |
Total | 702 | |
AFS securities, Unrealized Losses | ||
Less than 12 months | 6 | |
12 months or more | 0 | |
Total | 6 | |
US Government-sponsored Enterprises Debt Securities [Member] | ||
AFS securities, Fair Value | ||
Less than 12 months | 3 | 6 |
12 months or more | 0 | 0 |
Total | 3 | 6 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or more | 0 | 0 |
Total | 0 | 0 |
Agency MBS | Residential Mortgage Backed Securities | ||
AFS securities, Fair Value | ||
Less than 12 months | 1,147 | 20,328 |
12 months or more | 262 | 1,326 |
Total | 1,409 | 21,654 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 13 | 145 |
12 months or more | 9 | 13 |
Total | 22 | 158 |
Agency MBS | Commercial Mortgage Backed Securities | ||
AFS securities, Fair Value | ||
Less than 12 months | 66 | 545 |
12 months or more | 35 | 124 |
Total | 101 | 669 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 0 | 5 |
12 months or more | 1 | 2 |
Total | 1 | 7 |
States and political subdivisions | ||
AFS securities, Fair Value | ||
Less than 12 months | 96 | 65 |
12 months or more | 121 | 144 |
Total | 217 | 209 |
AFS securities, Unrealized Losses | ||
Less than 12 months | 1 | 1 |
12 months or more | 7 | 5 |
Total | 8 | $ 6 |
Non-agency MBS | ||
AFS securities, Fair Value | ||
Less than 12 months | 42 | |
12 months or more | 0 | |
Total | 42 | |
AFS securities, Unrealized Losses | ||
Less than 12 months | 14 | |
12 months or more | 0 | |
Total | 14 | |
Other | ||
AFS securities, Fair Value | ||
Less than 12 months | 36 | |
12 months or more | 0 | |
Total | 36 | |
AFS securities, Unrealized Losses | ||
Less than 12 months | 1 | |
12 months or more | 0 | |
Total | $ 1 |
Investments Securities - Gain (
Investments Securities - Gain (Loss) on Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Gain (Loss) on Securities [Line Items] | ||
Gross realized gains | $ 0 | $ 22 |
Gross realized losses | (2) | (22) |
Securities gains (losses), net | $ (2) | $ 0 |
Loans and ACL - Narrative (Deta
Loans and ACL - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Receivables [Abstract] | ||||
Modifications that defaulted during the period that had been classified as a TDR during the previous 12 months | $ 21 | $ 18 | ||
Financing Receivable | ||||
Interest Income Recognized | 8 | $ 98 | ||
CECL impact on Allowance for Credit Losses | ||||
Financing Receivable | ||||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | $ 3,100 | |||
Commercial: | ||||
Financing Receivable | ||||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 411 | |||
Credit card | ||||
Financing Receivable | ||||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 50 | |||
Interest Income Recognized | $ 1 | |||
Credit card | CECL impact on Allowance for Credit Losses | ||||
Financing Receivable | ||||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 175 | |||
Commitments to extend, originate or purchase credit | ||||
Financing Receivable | ||||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | (9) | |||
Commitments to extend, originate or purchase credit | CECL impact on Allowance for Credit Losses | ||||
Financing Receivable | ||||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 33 | |||
Consumer: | ||||
Financing Receivable | ||||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | $ 130 |
Loans and ACL - Aging Analysis
Loans and ACL - Aging Analysis of Loans and Leases (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable [Line Items] | ||
Current | $ 314,073 | $ 295,181 |
30-89 Days Past Due | 2,374 | 2,213 |
90 Days Or More Past Due | 1,748 | 1,994 |
Nonperforming | 1,034 | 454 |
Total | 319,229 | 299,842 |
Commercial: | Commercial and industrial | ||
Financing Receivable [Line Items] | ||
Current | 148,451 | 129,873 |
30-89 Days Past Due | 262 | 94 |
90 Days Or More Past Due | 5 | 1 |
Nonperforming | 443 | 212 |
Total | 149,161 | 130,180 |
Commercial: | CRE | ||
Financing Receivable [Line Items] | ||
Current | 27,505 | 26,817 |
30-89 Days Past Due | 8 | 5 |
90 Days Or More Past Due | 1 | 0 |
Nonperforming | 18 | 10 |
Total | 27,532 | 26,832 |
Commercial: | Commercial construction | ||
Financing Receivable [Line Items] | ||
Current | 6,612 | 6,204 |
30-89 Days Past Due | 16 | 1 |
90 Days Or More Past Due | 0 | 0 |
Nonperforming | 2 | 0 |
Total | 6,630 | 6,205 |
Commercial: | Lease financing | ||
Financing Receivable [Line Items] | ||
Current | 5,949 | 6,112 |
30-89 Days Past Due | 8 | 2 |
90 Days Or More Past Due | 0 | 0 |
Nonperforming | 27 | 8 |
Total | 5,984 | 6,122 |
Consumer: | Residential Mortgage | ||
Financing Receivable [Line Items] | ||
Current | 51,559 | 50,975 |
30-89 Days Past Due | 679 | 498 |
90 Days Or More Past Due | 610 | 543 |
Nonperforming | 248 | 55 |
Total | 53,096 | 52,071 |
Consumer: | Residential home equity and direct | ||
Financing Receivable [Line Items] | ||
Current | 27,293 | 26,846 |
30-89 Days Past Due | 156 | 122 |
90 Days Or More Past Due | 10 | 9 |
Nonperforming | 170 | 67 |
Total | 27,629 | 27,044 |
Consumer: | Indirect auto | ||
Financing Receivable [Line Items] | ||
Current | 24,489 | 23,771 |
30-89 Days Past Due | 521 | 560 |
90 Days Or More Past Due | 11 | 11 |
Nonperforming | 125 | 100 |
Total | 25,146 | 24,442 |
Consumer: | Indirect other | ||
Financing Receivable [Line Items] | ||
Current | 10,903 | 11,011 |
30-89 Days Past Due | 74 | 85 |
90 Days Or More Past Due | 2 | 2 |
Nonperforming | 1 | 2 |
Total | 10,980 | 11,100 |
Consumer: | Student | ||
Financing Receivable [Line Items] | ||
Current | 6,110 | 5,905 |
30-89 Days Past Due | 593 | 650 |
90 Days Or More Past Due | 1,068 | 188 |
Nonperforming | 0 | 0 |
Total | 7,771 | 6,743 |
Credit card | ||
Financing Receivable [Line Items] | ||
Current | 5,202 | 5,541 |
30-89 Days Past Due | 57 | 56 |
90 Days Or More Past Due | 41 | 22 |
Nonperforming | 0 | 0 |
Total | $ 5,300 | 5,619 |
PCI | ||
Financing Receivable [Line Items] | ||
Current | 2,126 | |
30-89 Days Past Due | 140 | |
90 Days Or More Past Due | 1,218 | |
Nonperforming | 0 | |
Total | $ 3,484 |
Loans and ACL - Risk Rating (De
Loans and ACL - Risk Rating (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable | ||
Loans and leases | $ 319,229 | $ 299,842 |
2020 | 17,089 | |
2019 | 65,130 | |
2018 | 41,661 | |
2017 | 27,442 | |
2016 | 20,067 | |
Prior | 55,494 | |
Revolving Credit | 90,783 | |
Loans Converted to Term | 2,017 | |
Other (1) | (454) | |
Credit card | ||
Financing Receivable | ||
Loans and leases | 5,300 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Credit | 5,268 | |
Loans Converted to Term | 35 | |
Other (1) | (3) | |
Commercial: | Commercial & Industrial | ||
Financing Receivable | ||
Loans and leases | 149,161 | 130,180 |
2020 | 7,515 | |
2019 | 25,809 | |
2018 | 15,917 | |
2017 | 10,023 | |
2016 | 6,876 | |
Prior | 15,386 | |
Revolving Credit | 68,453 | |
Loans Converted to Term | 13 | |
Other (1) | (831) | |
Commercial: | Commercial & Industrial | Pass | ||
Financing Receivable | ||
Loans and leases | 145,212 | 127,229 |
2020 | 7,366 | |
2019 | 25,371 | |
2018 | 15,536 | |
2017 | 9,849 | |
2016 | 6,598 | |
Prior | 14,904 | |
Revolving Credit | 66,420 | |
Loans Converted to Term | 11 | |
Other (1) | (843) | |
Commercial: | Commercial & Industrial | Special mention | ||
Financing Receivable | ||
Loans and leases | 1,744 | 1,264 |
2020 | 93 | |
2019 | 170 | |
2018 | 161 | |
2017 | 66 | |
2016 | 143 | |
Prior | 101 | |
Revolving Credit | 1,010 | |
Loans Converted to Term | 0 | |
Other (1) | 0 | |
Commercial: | Commercial & Industrial | Substandard | ||
Financing Receivable | ||
Loans and leases | 1,762 | 1,475 |
2020 | 53 | |
2019 | 216 | |
2018 | 126 | |
2017 | 74 | |
2016 | 87 | |
Prior | 296 | |
Revolving Credit | 926 | |
Loans Converted to Term | 1 | |
Other (1) | (17) | |
Commercial: | Commercial & Industrial | Nonperforming | ||
Financing Receivable | ||
Loans and leases | 443 | 212 |
2020 | 3 | |
2019 | 52 | |
2018 | 94 | |
2017 | 34 | |
2016 | 48 | |
Prior | 85 | |
Revolving Credit | 97 | |
Loans Converted to Term | 1 | |
Other (1) | 29 | |
Commercial: | CRE | ||
Financing Receivable | ||
Loans and leases | 27,532 | 26,832 |
2020 | 2,031 | |
2019 | 8,392 | |
2018 | 6,295 | |
2017 | 3,533 | |
2016 | 2,356 | |
Prior | 4,303 | |
Revolving Credit | 714 | |
Loans Converted to Term | 0 | |
Other (1) | (92) | |
Commercial: | CRE | Pass | ||
Financing Receivable | ||
Loans and leases | 26,859 | 26,393 |
2020 | 2,013 | |
2019 | 8,252 | |
2018 | 6,166 | |
2017 | 3,479 | |
2016 | 2,262 | |
Prior | 4,066 | |
Revolving Credit | 713 | |
Loans Converted to Term | 0 | |
Other (1) | (92) | |
Commercial: | CRE | Special mention | ||
Financing Receivable | ||
Loans and leases | 339 | 145 |
2020 | 1 | |
2019 | 44 | |
2018 | 102 | |
2017 | 12 | |
2016 | 65 | |
Prior | 115 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | 0 | |
Commercial: | CRE | Substandard | ||
Financing Receivable | ||
Loans and leases | 316 | 284 |
2020 | 17 | |
2019 | 94 | |
2018 | 23 | |
2017 | 39 | |
2016 | 29 | |
Prior | 114 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | 0 | |
Commercial: | CRE | Nonperforming | ||
Financing Receivable | ||
Loans and leases | 18 | 10 |
2020 | 0 | |
2019 | 2 | |
2018 | 4 | |
2017 | 3 | |
2016 | 0 | |
Prior | 8 | |
Revolving Credit | 1 | |
Loans Converted to Term | 0 | |
Other (1) | 0 | |
Commercial: | Commercial construction | ||
Financing Receivable | ||
Loans and leases | 6,630 | 6,205 |
2020 | 345 | |
2019 | 1,932 | |
2018 | 2,236 | |
2017 | 802 | |
2016 | 193 | |
Prior | 385 | |
Revolving Credit | 732 | |
Loans Converted to Term | 1 | |
Other (1) | 4 | |
Commercial: | Commercial construction | Pass | ||
Financing Receivable | ||
Loans and leases | 6,440 | 6,037 |
2020 | 342 | |
2019 | 1,921 | |
2018 | 2,164 | |
2017 | 745 | |
2016 | 153 | |
Prior | 381 | |
Revolving Credit | 729 | |
Loans Converted to Term | 1 | |
Other (1) | 4 | |
Commercial: | Commercial construction | Special mention | ||
Financing Receivable | ||
Loans and leases | 42 | 37 |
2020 | 0 | |
2019 | 5 | |
2018 | 37 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | 0 | |
Commercial: | Commercial construction | Substandard | ||
Financing Receivable | ||
Loans and leases | 146 | 131 |
2020 | 3 | |
2019 | 5 | |
2018 | 35 | |
2017 | 56 | |
2016 | 40 | |
Prior | 4 | |
Revolving Credit | 3 | |
Loans Converted to Term | 0 | |
Other (1) | 0 | |
Commercial: | Commercial construction | Nonperforming | ||
Financing Receivable | ||
Loans and leases | 2 | 0 |
2020 | 0 | |
2019 | 1 | |
2018 | 0 | |
2017 | 1 | |
2016 | 0 | |
Prior | 0 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | 0 | |
Commercial: | Lease Financing | ||
Financing Receivable | ||
Loans and leases | 5,984 | 6,122 |
2020 | 255 | |
2019 | 1,875 | |
2018 | 1,158 | |
2017 | 1,089 | |
2016 | 388 | |
Prior | 1,263 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | (44) | |
Commercial: | Lease Financing | Pass | ||
Financing Receivable | ||
Loans and leases | 5,887 | 6,039 |
2020 | 255 | |
2019 | 1,864 | |
2018 | 1,154 | |
2017 | 1,056 | |
2016 | 381 | |
Prior | 1,221 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | (44) | |
Commercial: | Lease Financing | Special mention | ||
Financing Receivable | ||
Loans and leases | 17 | 19 |
2020 | 0 | |
2019 | 8 | |
2018 | 3 | |
2017 | 3 | |
2016 | 3 | |
Prior | 0 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | 0 | |
Commercial: | Lease Financing | Substandard | ||
Financing Receivable | ||
Loans and leases | 53 | 56 |
2020 | 0 | |
2019 | 3 | |
2018 | 0 | |
2017 | 15 | |
2016 | 2 | |
Prior | 33 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | 0 | |
Commercial: | Lease Financing | Nonperforming | ||
Financing Receivable | ||
Loans and leases | 27 | 8 |
2020 | 0 | |
2019 | 0 | |
2018 | 1 | |
2017 | 15 | |
2016 | 2 | |
Prior | 9 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | 0 | |
Consumer: | Residential Mortgage | ||
Financing Receivable | ||
Loans and leases | 53,096 | 52,071 |
2020 | 1,800 | |
2019 | 8,484 | |
2018 | 5,603 | |
2017 | 6,175 | |
2016 | 6,993 | |
Prior | 23,808 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | 233 | |
Consumer: | Residential Mortgage | Performing | ||
Financing Receivable | ||
Loans and leases | 52,848 | 52,016 |
2020 | 1,800 | |
2019 | 8,480 | |
2018 | 5,595 | |
2017 | 6,168 | |
2016 | 6,985 | |
Prior | 23,587 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | 233 | |
Consumer: | Residential Mortgage | Nonperforming | ||
Financing Receivable | ||
Loans and leases | 248 | 55 |
2020 | 0 | |
2019 | 4 | |
2018 | 8 | |
2017 | 7 | |
2016 | 8 | |
Prior | 221 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | 0 | |
Consumer: | Residential home equity and direct | ||
Financing Receivable | ||
Loans and leases | 27,629 | 27,044 |
2020 | 1,296 | |
2019 | 4,440 | |
2018 | 2,168 | |
2017 | 835 | |
2016 | 421 | |
Prior | 797 | |
Revolving Credit | 15,616 | |
Loans Converted to Term | 1,968 | |
Other (1) | 88 | |
Consumer: | Residential home equity and direct | Performing | ||
Financing Receivable | ||
Loans and leases | 27,459 | 26,977 |
2020 | 1,296 | |
2019 | 4,436 | |
2018 | 2,164 | |
2017 | 834 | |
2016 | 420 | |
Prior | 789 | |
Revolving Credit | 15,553 | |
Loans Converted to Term | 1,874 | |
Other (1) | 93 | |
Consumer: | Residential home equity and direct | Nonperforming | ||
Financing Receivable | ||
Loans and leases | 170 | 67 |
2020 | 0 | |
2019 | 4 | |
2018 | 4 | |
2017 | 1 | |
2016 | 1 | |
Prior | 8 | |
Revolving Credit | 63 | |
Loans Converted to Term | 94 | |
Other (1) | (5) | |
Consumer: | Indirect auto | ||
Financing Receivable | ||
Loans and leases | 25,146 | 24,442 |
2020 | 2,799 | |
2019 | 9,757 | |
2018 | 5,587 | |
2017 | 3,600 | |
2016 | 2,089 | |
Prior | 1,185 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | 129 | |
Consumer: | Indirect auto | Performing | ||
Financing Receivable | ||
Loans and leases | 25,021 | 24,342 |
2020 | 2,799 | |
2019 | 9,725 | |
2018 | 5,548 | |
2017 | 3,571 | |
2016 | 2,070 | |
Prior | 1,166 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | 142 | |
Consumer: | Indirect auto | Nonperforming | ||
Financing Receivable | ||
Loans and leases | 125 | 100 |
2020 | 0 | |
2019 | 32 | |
2018 | 39 | |
2017 | 29 | |
2016 | 19 | |
Prior | 19 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | (13) | |
Consumer: | Indirect Other | ||
Financing Receivable | ||
Loans and leases | 10,980 | 11,100 |
2020 | 1,027 | |
2019 | 4,319 | |
2018 | 2,587 | |
2017 | 1,294 | |
2016 | 676 | |
Prior | 1,010 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | 67 | |
Consumer: | Indirect Other | Performing | ||
Financing Receivable | ||
Loans and leases | 10,979 | 11,098 |
2020 | 1,027 | |
2019 | 4,319 | |
2018 | 2,587 | |
2017 | 1,294 | |
2016 | 676 | |
Prior | 1,009 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | 67 | |
Consumer: | Indirect Other | Nonperforming | ||
Financing Receivable | ||
Loans and leases | 1 | 2 |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 1 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | 0 | |
Consumer: | Student | ||
Financing Receivable | ||
Loans and leases | 7,771 | $ 6,743 |
2020 | 21 | |
2019 | 122 | |
2018 | 110 | |
2017 | 91 | |
2016 | 75 | |
Prior | 7,357 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | (5) | |
Consumer: | Student | Performing | ||
Financing Receivable | ||
Loans and leases | 7,771 | |
2020 | 21 | |
2019 | 122 | |
2018 | 110 | |
2017 | 91 | |
2016 | 75 | |
Prior | 7,357 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | (5) | |
Consumer: | Student | Nonperforming | ||
Financing Receivable | ||
Loans and leases | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Credit | 0 | |
Loans Converted to Term | 0 | |
Other (1) | $ 0 |
Loans and ACL - Allowance for C
Loans and ACL - Allowance for Credit Losses (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Provision for credit losses | $ 893 | $ 155 | |
CECL impact on Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | $ 3,100 | ||
Commercial: | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | 411 | ||
Commercial: | Commercial and industrial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
ACL, beginning balance | 560 | 560 | 546 |
Charge-Offs | (39) | (17) | |
Recoveries | 17 | 6 | |
Provision for credit losses | 371 | 13 | |
ACL, ending balance | 1,813 | 548 | |
Commercial: | Commercial and industrial | CECL impact on Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | 904 | ||
Commercial: | CRE | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
ACL, beginning balance | 150 | 150 | 142 |
Charge-Offs | (1) | (8) | |
Recoveries | 0 | 0 | |
Provision for credit losses | 68 | 18 | |
ACL, ending balance | 299 | 152 | |
Commercial: | CRE | CECL impact on Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | 82 | ||
Commercial: | Commercial construction | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
ACL, beginning balance | 52 | 52 | 48 |
Charge-Offs | (3) | 0 | |
Recoveries | 1 | 1 | |
Provision for credit losses | 22 | (5) | |
ACL, ending balance | 88 | 44 | |
Commercial: | Commercial construction | CECL impact on Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | 16 | ||
Commercial: | Lease financing | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
ACL, beginning balance | 10 | 10 | 11 |
Charge-Offs | (2) | (1) | |
Recoveries | 0 | 0 | |
Provision for credit losses | (23) | 1 | |
ACL, ending balance | 79 | 11 | |
Commercial: | Lease financing | CECL impact on Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | 94 | ||
Consumer: | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | 130 | ||
Consumer: | Residential Mortgage | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
ACL, beginning balance | 176 | 176 | 232 |
Charge-Offs | (11) | (5) | |
Recoveries | 2 | 1 | |
Provision for credit losses | (4) | (3) | |
ACL, ending balance | 427 | 225 | |
Consumer: | Residential Mortgage | CECL impact on Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | 264 | ||
Consumer: | Residential home equity and direct | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
ACL, beginning balance | 107 | 107 | 104 |
Charge-Offs | (68) | (20) | |
Recoveries | 15 | 6 | |
Provision for credit losses | 102 | 13 | |
ACL, ending balance | 607 | 103 | |
Consumer: | Residential home equity and direct | CECL impact on Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | 451 | ||
Consumer: | Indirect auto | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
ACL, beginning balance | 304 | 304 | 298 |
Charge-Offs | (142) | (92) | |
Recoveries | 23 | 13 | |
Provision for credit losses | 189 | 81 | |
ACL, ending balance | 1,192 | 300 | |
Consumer: | Indirect auto | CECL impact on Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | 818 | ||
Consumer: | Indirect other | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
ACL, beginning balance | 60 | 60 | 58 |
Charge-Offs | (18) | (17) | |
Recoveries | 7 | 4 | |
Provision for credit losses | 12 | 13 | |
ACL, ending balance | 213 | 58 | |
Consumer: | Indirect other | CECL impact on Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | 152 | ||
Consumer: | Student | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
ACL, beginning balance | 0 | 0 | |
Charge-Offs | (8) | ||
Recoveries | 0 | ||
Provision for credit losses | 34 | ||
ACL, ending balance | 146 | ||
Consumer: | Student | CECL impact on Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | 120 | ||
Credit card | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
ACL, beginning balance | 122 | 122 | 110 |
Charge-Offs | (53) | (24) | |
Recoveries | 8 | 6 | |
Provision for credit losses | 95 | 20 | |
Other (2) | 50 | ||
ACL, ending balance | 347 | 112 | |
Credit card | CECL impact on Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | 175 | ||
PCI | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
ACL, beginning balance | 8 | 8 | 9 |
Charge-Offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision for credit losses | 0 | (1) | |
ACL, ending balance | 0 | 8 | |
PCI | CECL impact on Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | (8) | ||
ALLL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
ACL, beginning balance | 1,549 | 1,549 | 1,558 |
Charge-Offs | (345) | (184) | |
Recoveries | 73 | 37 | |
Provision for credit losses | 866 | 150 | |
ACL, ending balance | 5,211 | 1,561 | |
ALLL | CECL impact on Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | 3,068 | ||
RUFC | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
ACL, beginning balance | 340 | 340 | 93 |
Charge-Offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision for credit losses | 27 | 5 | |
Other (2) | (9) | ||
ACL, ending balance | 400 | 98 | |
RUFC | CECL impact on Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | 33 | ||
ACL | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
ACL, beginning balance | $ 1,889 | 1,889 | 1,651 |
Charge-Offs | (345) | (184) | |
Recoveries | 73 | 37 | |
Provision for credit losses | 893 | 155 | |
ACL, ending balance | 5,611 | $ 1,659 | |
ACL | CECL impact on Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Other (2) | $ 3,101 |
Loans and ACL - Summary of Purc
Loans and ACL - Summary of Purchased Student Loans With Credit Deterioration (Details) - Consumer: - Student $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Financing Receivable | |
Financing Receivable, Purchased with Credit Deterioration, Amount at Purchase Price | $ 240 |
Financing Receivable, Purchased with Credit Deterioration, Allowance for Credit Loss at Acquisition Date | (3) |
Financing Receivable, Purchased with Credit Deterioration, Discount (Premium) | 1 |
Financing Receivable, Purchased with Credit Deterioration, Amount at Par Value | $ 242 |
Loans and ACL - Individually Ev
Loans and ACL - Individually Evaluated for Impairment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | ||
UPB | $ 1,554 | |
Recorded Investment Without an ALLL | $ 156 | 259 |
Recorded Investment With an ALLL | 878 | 1,182 |
Related ALLL | 153 | |
Average Recorded Investment | 1,606 | |
Interest Income Recognized | 8 | 98 |
Commercial: | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 339 | |
Recorded Investment Without an ALLL | 136 | 124 |
Recorded Investment With an ALLL | 307 | 167 |
Related ALLL | 20 | |
Average Recorded Investment | 298 | |
Interest Income Recognized | 6 | |
Commercial: | CRE | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 29 | |
Recorded Investment Without an ALLL | 1 | 3 |
Recorded Investment With an ALLL | 17 | 26 |
Related ALLL | 2 | |
Average Recorded Investment | 71 | |
Interest Income Recognized | 1 | |
Commercial: | Commercial construction | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 39 | |
Recorded Investment Without an ALLL | 0 | 0 |
Recorded Investment With an ALLL | 2 | 38 |
Related ALLL | 7 | |
Average Recorded Investment | 5 | |
Interest Income Recognized | 0 | |
Commercial: | Lease financing | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 18 | |
Recorded Investment Without an ALLL | 15 | 7 |
Recorded Investment With an ALLL | 12 | 2 |
Related ALLL | 0 | |
Average Recorded Investment | 2 | |
Interest Income Recognized | 0 | |
Consumer: | Residential Mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 650 | |
Recorded Investment Without an ALLL | 3 | 92 |
Recorded Investment With an ALLL | 245 | 527 |
Related ALLL | 42 | |
Average Recorded Investment | 799 | |
Interest Income Recognized | 34 | |
Consumer: | Residential home equity and direct | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 76 | |
Recorded Investment Without an ALLL | 1 | 24 |
Recorded Investment With an ALLL | 169 | 37 |
Related ALLL | 5 | |
Average Recorded Investment | 65 | |
Interest Income Recognized | 3 | |
Consumer: | Indirect auto | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 367 | |
Recorded Investment Without an ALLL | 0 | 9 |
Recorded Investment With an ALLL | 125 | 349 |
Related ALLL | 64 | |
Average Recorded Investment | 334 | |
Interest Income Recognized | 53 | |
Consumer: | Indirect other | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 5 | |
Recorded Investment Without an ALLL | 0 | 0 |
Recorded Investment With an ALLL | $ 1 | 5 |
Related ALLL | 1 | |
Average Recorded Investment | 4 | |
Interest Income Recognized | 0 | |
Credit card | ||
Financing Receivable, Impaired [Line Items] | ||
UPB | 31 | |
Recorded Investment Without an ALLL | 0 | |
Recorded Investment With an ALLL | 31 | |
Related ALLL | 12 | |
Average Recorded Investment | 28 | |
Interest Income Recognized | $ 1 |
Loans and ACL - Summary of TDRs
Loans and ACL - Summary of TDRs (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | $ 1,200 | $ 1,062 |
ALLL attributable to TDRs | 159 | 132 |
Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 1,079 | 980 |
Nonperforming TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 121 | 82 |
Commercial: | Commercial and industrial | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 65 | 47 |
Commercial: | CRE | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 7 | 6 |
Commercial: | Commercial construction | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 36 | 37 |
Commercial: | Lease financing | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 1 | 0 |
Consumer: | Residential Mortgage | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 513 | 470 |
Consumer: | Residential home equity and direct | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 66 | 51 |
Consumer: | Indirect auto | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 350 | 333 |
Consumer: | Indirect other | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 5 | 5 |
Consumer: | Student | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | 1 | 0 |
Credit card | Performing TDRs | ||
Financing Receivable [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring | $ 35 | $ 31 |
Loans and ACL - Types of Modifi
Loans and ACL - Types of Modifications and Impact to Allowance (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Newly Designated TDRs | Commercial: | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
ALLL at Period End | $ 2 | $ 3 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 36 | 19 |
Newly Designated TDRs | Commercial: | CRE | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
ALLL at Period End | 0 | 0 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 1 | 3 |
Newly Designated TDRs | Commercial: | Lease financing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
ALLL at Period End | 0 | |
Financing Receivable, Troubled Debt Restructuring, Premodification | 1 | |
Newly Designated TDRs | Consumer: | Residential Mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
ALLL at Period End | 5 | 6 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 94 | 75 |
Newly Designated TDRs | Consumer: | Residential home equity and direct | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
ALLL at Period End | 1 | 1 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 23 | 3 |
Newly Designated TDRs | Consumer: | Indirect auto | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
ALLL at Period End | 5 | 11 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 73 | 51 |
Newly Designated TDRs | Consumer: | Indirect other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
ALLL at Period End | 0 | 0 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 1 | 1 |
Newly Designated TDRs | Consumer: | Student | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
ALLL at Period End | 0 | |
Financing Receivable, Troubled Debt Restructuring, Premodification | 1 | |
Newly Designated TDRs | Credit card | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
ALLL at Period End | 3 | 3 |
Financing Receivable, Troubled Debt Restructuring, Premodification | 10 | 6 |
Newly Designated TDRs | Rate | Commercial: | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 28 | 26 |
Newly Designated TDRs | Rate | Commercial: | CRE | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 1 | 1 |
Newly Designated TDRs | Rate | Commercial: | Lease financing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 1 | |
Newly Designated TDRs | Rate | Consumer: | Residential Mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 77 | 73 |
Newly Designated TDRs | Rate | Consumer: | Residential home equity and direct | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 17 | 3 |
Newly Designated TDRs | Rate | Consumer: | Indirect auto | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 56 | 47 |
Newly Designated TDRs | Rate | Consumer: | Indirect other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 1 | 1 |
Newly Designated TDRs | Rate | Consumer: | Student | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 0 | |
Newly Designated TDRs | Rate | Credit card | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 10 | 6 |
Newly Designated TDRs | Structure | Commercial: | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 3 | 3 |
Newly Designated TDRs | Structure | Commercial: | CRE | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 0 | 0 |
Newly Designated TDRs | Structure | Commercial: | Lease financing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 0 | |
Newly Designated TDRs | Structure | Consumer: | Residential Mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 15 | 8 |
Newly Designated TDRs | Structure | Consumer: | Residential home equity and direct | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 5 | 1 |
Newly Designated TDRs | Structure | Consumer: | Indirect auto | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 14 | 1 |
Newly Designated TDRs | Structure | Consumer: | Indirect other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 0 | 0 |
Newly Designated TDRs | Structure | Consumer: | Student | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 1 | |
Newly Designated TDRs | Structure | Credit card | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 0 | 0 |
Re-Modification of Previously Designated TDRs | Rate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | 18 | 23 |
Re-Modification of Previously Designated TDRs | Structure | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDRs | $ 1 | $ 5 |
Loans and ACL - Summary of Nonp
Loans and ACL - Summary of Nonperforming Assets and Residential Mortgage Loans in the Process of Foreclosure (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Impaired [Line Items] | ||
Nonperforming | $ 1,034 | $ 454 |
Other Real Estate, Foreclosed Assets, and Repossessed Assets | 63 | 82 |
Total nonperforming assets | 1,177 | 684 |
Residential mortgage loans in the process of foreclosure | 300 | 409 |
LHFS | ||
Financing Receivable, Impaired [Line Items] | ||
Nonperforming | 41 | 107 |
Other Property [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Other Real Estate, Foreclosed Assets, and Repossessed Assets | $ 39 | $ 41 |
Loans and ACL - Selected Inform
Loans and ACL - Selected Information About Loans and Leases (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Deferred Income | $ 3,140 | $ 4,069 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Goodwill Adjustments [Line Items] | ||
Adjustments | $ (258) | $ (6) |
Financing Receivable [Member] | ||
Goodwill Adjustments [Line Items] | ||
Adjustments | 193 | |
CDI | ||
Goodwill Adjustments [Line Items] | ||
Adjustments | $ 165 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Rollforward of Goodwill by Operating Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 24,154 | $ 9,818 |
Goodwill, Acquired During Period | 31 | 14,342 |
Adjustments | (258) | (6) |
Goodwill, Ending Balance | 23,927 | 24,154 |
CB-Retail | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 14,040 | 3,906 |
Goodwill, Acquired During Period | 0 | 10,134 |
Adjustments | 1,483 | 0 |
Goodwill, Ending Balance | 15,523 | 14,040 |
CB-Commercial | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 8,125 | 3,938 |
Goodwill, Acquired During Period | 0 | 4,187 |
Adjustments | (1,741) | 0 |
Goodwill, Ending Balance | 6,384 | 8,125 |
IH | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 1,989 | 1,974 |
Goodwill, Acquired During Period | 31 | 21 |
Adjustments | 0 | (6) |
Goodwill, Ending Balance | $ 2,020 | $ 1,989 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,472 | $ 4,282 |
Accumulated Amortization | (1,304) | (1,140) |
Net Carrying Amount | 3,168 | 3,142 |
CDI | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,599 | 2,474 |
Accumulated Amortization | (485) | (365) |
Net Carrying Amount | 2,114 | 2,109 |
Other, primarily client relationship intangibles | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,873 | 1,808 |
Accumulated Amortization | (819) | (775) |
Net Carrying Amount | $ 1,054 | $ 1,033 |
Loan Servicing - Residential Mo
Loan Servicing - Residential Mortgage Banking Activities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||
Servicing fees recognized from mortgage loans serviced for others | $ 1,961 | $ 1,202 | |
Residential Mortgage | |||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||
UPB of residential mortgage loan servicing portfolio | 276,304 | $ 279,558 | |
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate | 219,979 | 219,347 | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 395 | 371 | |
Maximum recourse exposure from mortgage loans sold with recourse liability | 241 | 212 | |
Indemnification, recourse and repurchase reserves | 66 | $ 44 | |
UPB of residential mortgage loans sold from LHFS | 12,669 | 1,300 | |
Pre-tax gains recognized on mortgage loans sold and held for sale | $ 188 | $ 17 | |
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others | 0.31% | 0.28% | |
Weighted average interest rate on mortgage loans serviced for others | 4.02% | 4.06% | |
Bank Servicing | Residential Mortgage | |||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |||
Servicing fees recognized from mortgage loans serviced for others | $ 169 | $ 61 |
Loan Servicing - Analysis of Ac
Loan Servicing - Analysis of Activity in Residential MSRs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
MSRs, carrying value, beginning balance | $ 2,618 | |
Change in fair value due to changes in valuation inputs or assumptions: | ||
MSRs, carrying value, ending balance | 2,150 | |
Residential MSRs | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
MSRs, carrying value, beginning balance | 2,371 | $ 957 |
Other additions | 178 | 15 |
Change in fair value due to changes in valuation inputs or assumptions: | ||
Prepayment speeds | (522) | (55) |
OAS | 45 | 4 |
Servicing costs | 0 | 0 |
Realization of expected net servicing cash flows, passage of time and other | (148) | (33) |
MSRs, carrying value, ending balance | $ 1,924 | $ 888 |
Loan Servicing - Residential MS
Loan Servicing - Residential MSR Sensitivity (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Residential MSRs | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of loans serviced for others | 100.00% | 100.00% |
Residential MSRs | Min | ||
Servicing Assets at Fair Value [Line Items] | ||
Prepayment speed | 9.40% | 8.40% |
OAS | 2.80% | 4.00% |
Residential MSRs | Max | ||
Servicing Assets at Fair Value [Line Items] | ||
Prepayment speed | 19.00% | 18.60% |
OAS | 12.80% | 13.50% |
Residential MSRs | Weighted Average | ||
Servicing Assets at Fair Value [Line Items] | ||
Prepayment speed | 11.20% | 9.60% |
Effect on fair value of a 10% increase | $ (104) | $ (102) |
Effect on fair value of a 20% increase | $ (198) | $ (195) |
OAS | 5.90% | 6.70% |
Effect on fair value of a 10% increase | $ (39) | $ (54) |
Effect on fair value of a 20% increase | $ (76) | $ (106) |
Weighted average life | 4 years 3 months 18 days | 5 years 4 months 24 days |
Fixed-rate residential mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of loans serviced for others | 98.60% | 98.50% |
Adjustable-rate residential mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Composition of loans serviced for others | 1.40% | 1.50% |
Loan Servicing - Commercial Mor
Loan Servicing - Commercial Mortgage Banking Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Servicing Assets at Fair Value [Line Items] | ||
MSRs at fair value | $ 2,150 | $ 2,618 |
CRE | ||
Servicing Assets at Fair Value [Line Items] | ||
UPB of CRE mortgages serviced for others | 71,391 | 70,404 |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 8,592 | 8,676 |
Maximum recourse exposure from CRE mortgages sold with recourse liability | 2,490 | 2,479 |
Recorded reserves related to recourse exposure | 18 | 13 |
CRE mortgages originated during the year-to-date period | 1,271 | 8,062 |
MSRs at fair value | $ 226 | $ 247 |
Other Assets and Liabilites - N
Other Assets and Liabilites - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Narrative [Abstract] | ||
Bank-Owned Life Insurance | $ 6,400 | $ 6,400 |
Other Assets and Liabilites - S
Other Assets and Liabilites - Schedule of Right of Use Assets and Future Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Right of Use Assets | ||
Right-of-Use Asset, Operating Leases | $ 1,773 | |
Right-of-Use Asset, Finance Leases | 43 | |
Operating Lease Liabilities, Payments Due | ||
2020 | 334 | |
2021 | 382 | |
2022 | 337 | |
2023 | 284 | |
2024 | 237 | |
2025 | 78 | |
Thereafter | 671 | |
Total lease payments, Operating Leases | 2,323 | |
Less: imputed interest, Operating Leases | 244 | |
Total lease liabilities, Operating Leases | $ 2,079 | |
Weighted Average Remaining Lease Term, Operating Leases | 7 years 6 months | |
Weighted Average Discount Rate, Percent, Operating Leases | 2.60% | |
Finance Lease Liabilities, Payments, Due | ||
2020 | $ 10 | |
2021 | 11 | |
2022 | 11 | |
2023 | 7 | |
2024 | 5 | |
2025 | 1 | |
Thereafter | 12 | |
Total lease payments, Finance Leases | 57 | |
Less: imputed interest, Finance Leases | 6 | |
Total lease liabilities, Finance Leases | $ 51 | |
Weighted Average Remaining Lease Term, Finance Leases | 7 years 4 months 24 days | |
Weighted Average Discount Rate, Percent, Finance Leases | 4.10% | |
Operating Lease, Cost | $ 96 | $ 49 |
Other Assets and Liabilites -_2
Other Assets and Liabilites - Schedule of Assets Held Under Operating Leases and Related Activities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Other Assets and Liabilities | ||
Assets held under operating leases (1) | $ 2,126 | $ 2,236 |
Accumulated depreciation | (443) | (391) |
Net | $ 1,683 | $ 1,845 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) shares in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)shares | |
Class of Stock [Line Items] | |
Preferred Stock, Value, Redeemed | $ (503) |
Series K | |
Class of Stock [Line Items] | |
Stock Redeemed or Called During Period, Shares | shares | 5 |
Preferred Stock, Value, Redeemed | $ 500 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Cash Dividends Declared per Share (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Declared | $ 0.450 | $ 0.405 |
AOCI (Details)
AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Amounts reclassified from AOCI: | ||
OCI | $ 1,742 | $ 294 |
Pension and OPEB Costs | ||
AOCI, Net of Tax [Roll Forward] | ||
AOCI, beginning balance | (1,122) | (1,164) |
OCI before reclassifications, net of tax | 0 | 0 |
Amounts reclassified from AOCI: | ||
OCI | 15 | 17 |
AOCI, ending balance | (1,107) | (1,147) |
Pension and OPEB Costs | Amounts reclassified from AOCI | ||
Amounts reclassified from AOCI: | ||
Before tax | 20 | 23 |
Tax effect | 5 | 6 |
Amounts reclassified, net of tax | 15 | 17 |
Cash Flow Hedges | ||
AOCI, Net of Tax [Roll Forward] | ||
AOCI, beginning balance | (101) | (31) |
OCI before reclassifications, net of tax | 0 | (30) |
Amounts reclassified from AOCI: | ||
OCI | 11 | (34) |
AOCI, ending balance | (90) | (65) |
Cash Flow Hedges | Amounts reclassified from AOCI | ||
Amounts reclassified from AOCI: | ||
Before tax | 15 | (5) |
Tax effect | 4 | (1) |
Amounts reclassified, net of tax | 11 | (4) |
AFS Securities | ||
AOCI, Net of Tax [Roll Forward] | ||
AOCI, beginning balance | 380 | (500) |
OCI before reclassifications, net of tax | 1,690 | 314 |
Amounts reclassified from AOCI: | ||
OCI | 1,721 | 309 |
AOCI, ending balance | 2,101 | (191) |
AFS Securities | Amounts reclassified from AOCI | ||
Amounts reclassified from AOCI: | ||
Before tax | 41 | (6) |
Tax effect | 10 | (1) |
Amounts reclassified, net of tax | 31 | (5) |
Other, net | ||
AOCI, Net of Tax [Roll Forward] | ||
AOCI, beginning balance | (1) | (20) |
OCI before reclassifications, net of tax | (5) | 2 |
Amounts reclassified from AOCI: | ||
OCI | (5) | 2 |
AOCI, ending balance | (6) | (18) |
Other, net | Amounts reclassified from AOCI | ||
Amounts reclassified from AOCI: | ||
Before tax | 0 | 0 |
Tax effect | 0 | 0 |
Amounts reclassified, net of tax | 0 | 0 |
Total | ||
AOCI, Net of Tax [Roll Forward] | ||
AOCI, beginning balance | (844) | (1,715) |
OCI before reclassifications, net of tax | 1,685 | 286 |
Amounts reclassified from AOCI: | ||
OCI | 1,742 | 294 |
AOCI, ending balance | 898 | (1,421) |
Total | Amounts reclassified from AOCI | ||
Amounts reclassified from AOCI: | ||
Before tax | 76 | 12 |
Tax effect | 19 | 4 |
Amounts reclassified, net of tax | $ 57 | $ 8 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Contingency [Line Items] | ||
Provision for income taxes | $ 224 | $ 177 |
Effective Income Tax Rate, Percent | 17.40% | 18.20% |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Qualified Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Discretionary contributions | $ 305 |
Benefit Plans - Summary of the
Benefit Plans - Summary of the Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net periodic pension cost: | ||
Service cost | $ 118 | $ 54 |
Interest cost | 78 | 57 |
Estimated return on plan assets | (216) | (113) |
Amortization and other | 19 | 25 |
Net periodic benefit cost | $ (1) | $ 23 |
Commitment and Contingencies -
Commitment and Contingencies - Narrative - (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Other Commitments [Line Items] | ||
Assets | $ 506,229 | $ 473,078 |
Other Liabilities | 11,631 | 12,236 |
Trading Assets | 3,863 | 5,733 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Other Commitments [Line Items] | ||
Assets | 2,100 | 2,700 |
Other Liabilities | 153 | 116 |
Trading Assets | 1,400 | $ 2,600 |
Buildings and building improvements | ||
Loss Contingency [Abstract] | ||
Buildings and Improvements, Gross | 456 | |
Min | ||
Loss Contingency [Abstract] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 0 | |
Max | ||
Loss Contingency [Abstract] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 200 |
Commitments and Contingencies -
Commitments and Contingencies - Summary (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Investments in affordable housing projects | ||
Tax Credit, Private Equity and Other Equity Method Investments | ||
Carrying amount | $ 3,776 | $ 3,684 |
Amount of future funding commitments included in carrying amount | 1,154 | 1,271 |
Lending exposure | 540 | 647 |
Renewable Energy Investments | ||
Tax Credit, Private Equity and Other Equity Method Investments | ||
Carrying amount | 107 | 81 |
Amount of future funding commitments not included in carrying amount | 211 | 246 |
Private equity investments | ||
Tax Credit, Private Equity and Other Equity Method Investments | ||
Carrying amount | 1,597 | 1,556 |
Amount of future funding commitments not included in carrying amount | $ 378 | $ 331 |
Commitments and Contingencies_2
Commitments and Contingencies - Tax Credits and Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments in affordable housing projects | ||
Income Tax Contingency [Line Items] | ||
Investment tax credit | $ 117 | $ 79 |
Amortization and other changes in carrying amount | 114 | 69 |
Other Community Development Investment | ||
Income Tax Contingency [Line Items] | ||
Investment tax credit | 22 | 0 |
Amortization and other changes in carrying amount | 20 | 0 |
Renewable Energy Partnership | ||
Income Tax Contingency [Line Items] | ||
Amortization and other changes in carrying amount | $ 0 | $ 0 |
Commitments and Contingencies_3
Commitments and Contingencies - Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Residential Mortgage | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 395 | $ 371 |
CRE | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 8,592 | 8,676 |
Commitments to extend, originate or purchase credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 159,924 | 177,598 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 5,050 | $ 5,181 |
Commitments and Contingencies_4
Commitments and Contingencies - Pledged Assets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Pledged securities | $ 10,404 | $ 11,283 |
Federal Reserve Bank Advances [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Pledged loans | 71,786 | 30,238 |
Line of Credit Facility, Remaining Borrowing Capacity | 49,652 | 21,169 |
FHLB Advances | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Pledged loans | 79,009 | 80,816 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 21,677 | $ 37,303 |
Fair Value Disclosures - Narrat
Fair Value Disclosures - Narrative (Details) $ in Millions | Mar. 31, 2020USD ($)Multiple | Dec. 31, 2019USD ($) |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
LHFS at fair value | $ 3,655 | $ 5,673 |
Unfunded Commitments Deferred Non Yield Related Loan Fees And Standby Letters Of Credit Carrying Value | 400 | 373 |
Nonperforming | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
LHFS at fair value | 41 | 107 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
LHFS at fair value | 728 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
LHFS at fair value | $ 0 | $ 0 |
Private Equity Investments | Minimum | EBITDA Multiple | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Unobservable inputs, EBITDA multiples | Multiple | 6 | |
Private Equity Investments | Maximum | EBITDA Multiple | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Unobservable inputs, EBITDA multiples | 14 | |
Private Equity Investments | Weighted average | EBITDA Multiple | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Unobservable inputs, EBITDA multiples | Multiple | 8 | |
Re-REMIC | Non-agency MBS | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Difference between fair value of securities held and the fair value of the underlying securities, percentage | 38.70% |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Assets | |||
Trading assets | $ 3,863 | $ 5,733 | |
AFS securities | 78,398 | 74,727 | |
LHFS at fair value | 3,655 | 5,673 | |
MSRs at fair value | 2,150 | 2,618 | |
Derivative Asset, Net | 4,040 | 2,053 | |
Derivative Asset, Gross | 7,471 | 4,260 | |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (3,431) | (2,207) | |
Equity securities | 641 | 817 | |
Private equity investments | 448 | 440 | |
Total assets | 93,195 | 92,061 | |
Liabilities | |||
Net Amount Presented in the Consolidated Balance Sheets | 764 | 366 | |
Derivative Liability, Gross | 3,942 | 3,336 | |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (3,178) | (2,970) | |
Securities sold short | 1,085 | 1,074 | |
Total liabilities | 1,849 | 1,440 | |
Level 1 | |||
Assets | |||
Trading assets | 78 | 90 | |
AFS securities | 0 | 0 | |
LHFS at fair value | 0 | 0 | |
MSRs at fair value | 0 | 0 | |
Derivative Asset, Gross | 548 | 606 | |
Equity securities | 603 | 815 | |
Private equity investments | 0 | 0 | |
Total assets | 1,229 | 1,511 | |
Liabilities | |||
Derivative Liability, Gross | 674 | 204 | |
Securities sold short | 0 | 18 | |
Total liabilities | 674 | 222 | |
Level 2 | |||
Assets | |||
Trading assets | 3,785 | 5,643 | |
AFS securities | 78,100 | 74,359 | |
LHFS at fair value | 3,655 | 5,673 | |
MSRs at fair value | 0 | 0 | |
Derivative Asset, Gross | 6,746 | 3,620 | |
Equity securities | 38 | 2 | |
Private equity investments | 0 | 0 | |
Total assets | 92,324 | 89,297 | |
Liabilities | |||
Derivative Liability, Gross | 3,234 | 3,117 | |
Securities sold short | 1,085 | 1,056 | |
Total liabilities | 4,319 | 4,173 | |
Level 3 | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 298 | 368 | |
LHFS at fair value | 0 | 0 | |
MSRs at fair value | 2,150 | 2,618 | |
Derivative Asset, Gross | 177 | 34 | |
Equity securities | 0 | 0 | |
Private equity investments | 448 | 440 | |
Total assets | 3,073 | 3,460 | |
Liabilities | |||
Derivative Liability, Gross | 34 | 15 | |
Securities sold short | 0 | 0 | |
Total liabilities | 34 | 15 | |
U.S. Treasury | |||
Assets | |||
Trading assets | 630 | 227 | |
AFS securities | 2,319 | 2,276 | |
U.S. Treasury | Level 1 | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
U.S. Treasury | Level 2 | |||
Assets | |||
Trading assets | 630 | 227 | |
AFS securities | 2,319 | 2,276 | |
U.S. Treasury | Level 3 | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
GSE | |||
Assets | |||
Trading assets | 343 | 296 | |
AFS securities | 1,933 | 1,881 | |
GSE | Level 1 | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
GSE | Level 2 | |||
Assets | |||
Trading assets | 343 | 296 | |
AFS securities | 1,933 | 1,881 | |
GSE | Level 3 | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
Agency MBS | Residential Mortgage Backed Securities | |||
Assets | |||
Trading assets | 601 | 497 | |
AFS securities | 71,753 | 68,236 | |
Agency MBS | Commercial Mortgage Backed Securities | |||
Assets | |||
Trading assets | 58 | 68 | |
AFS securities | 1,519 | 1,341 | |
Agency MBS | Level 1 | Residential Mortgage Backed Securities | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
Agency MBS | Level 1 | Commercial Mortgage Backed Securities | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
Agency MBS | Level 2 | Residential Mortgage Backed Securities | |||
Assets | |||
Trading assets | 601 | 497 | |
AFS securities | 71,753 | 68,236 | |
Agency MBS | Level 2 | Commercial Mortgage Backed Securities | |||
Assets | |||
Trading assets | 58 | 68 | |
AFS securities | 1,519 | 1,341 | |
Agency MBS | Level 3 | Residential Mortgage Backed Securities | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
Agency MBS | Level 3 | Commercial Mortgage Backed Securities | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
States and political subdivisions | |||
Assets | |||
Trading assets | 43 | 82 | |
AFS securities | 539 | 585 | |
States and political subdivisions | Level 1 | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
States and political subdivisions | Level 2 | |||
Assets | |||
Trading assets | 43 | 82 | |
AFS securities | 539 | 585 | |
States and political subdivisions | Level 3 | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
Non-agency MBS | |||
Assets | |||
Trading assets | 277 | ||
AFS securities | 298 | 368 | |
Non-agency MBS | Level 1 | |||
Assets | |||
Trading assets | 0 | ||
AFS securities | 0 | 0 | |
Non-agency MBS | Level 2 | |||
Assets | |||
Trading assets | 277 | ||
AFS securities | 0 | 0 | |
Non-agency MBS | Level 3 | |||
Assets | |||
Trading assets | 0 | ||
AFS securities | 298 | 368 | |
Corporate Debt Securities | |||
Assets | |||
Trading assets | 536 | 1,204 | |
Corporate Debt Securities | Level 1 | |||
Assets | |||
Trading assets | 0 | 0 | |
Corporate Debt Securities | Level 2 | |||
Assets | |||
Trading assets | 536 | 1,204 | |
Corporate Debt Securities | Level 3 | |||
Assets | |||
Trading assets | 0 | 0 | |
Loans | |||
Assets | |||
Trading assets | 1,569 | 2,948 | |
Loans | Level 1 | |||
Assets | |||
Trading assets | 0 | 0 | |
Loans | Level 2 | |||
Assets | |||
Trading assets | 1,569 | 2,948 | |
Loans | Level 3 | |||
Assets | |||
Trading assets | 0 | 0 | |
Other | |||
Assets | |||
Trading assets | 83 | 134 | |
AFS securities | 37 | 40 | |
Other | Level 1 | |||
Assets | |||
Trading assets | 78 | 90 | |
AFS securities | 0 | 0 | |
Other | Level 2 | |||
Assets | |||
Trading assets | 5 | 44 | |
AFS securities | 37 | 40 | |
Other | Level 3 | |||
Assets | |||
Trading assets | 0 | 0 | |
AFS securities | 0 | 0 | |
Fair Value, Concentration of Credit Risk, Master Netting Arrangements | |||
Assets | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1] | (3,431) | (2,207) |
Liabilities | |||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [1] | $ 3,178 | $ 2,970 |
[1] | Refer to "Note 15. Derivative Financial Instruments" for additional discussion on netting adjustments. |
Fair Value Disclosures - Rollfo
Fair Value Disclosures - Rollforward of Level 3 Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Trading Assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 0 | $ 3 |
Included in earnings | 0 | 0 |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 |
Purchases | 0 | 15 |
Issuances | 0 | 0 |
Sales | 0 | (7) |
Settlements | 0 | 0 |
Ending balance | 0 | 11 |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | 0 | |
Non-agency MBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 368 | 391 |
Included in earnings | 3 | 2 |
Included in unrealized net holding gains (losses) in OCI | (64) | 1 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | (9) | (8) |
Ending balance | 298 | 386 |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | 3 | |
MSRs | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 2,618 | 1,108 |
Included in earnings | (526) | (54) |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 187 | 22 |
Sales | 0 | 0 |
Settlements | (129) | (40) |
Ending balance | 2,150 | 1,036 |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | (526) | |
Net Derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 19 | 12 |
Included in earnings | 111 | 8 |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 155 | 17 |
Sales | 0 | 0 |
Settlements | (142) | (30) |
Ending balance | 143 | 7 |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | 154 | |
Private Equity Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 440 | 393 |
Included in earnings | 2 | 23 |
Included in unrealized net holding gains (losses) in OCI | 0 | 0 |
Purchases | 27 | 7 |
Issuances | 0 | 0 |
Sales | 0 | (33) |
Settlements | (21) | (2) |
Ending balance | 448 | $ 388 |
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held | $ 0 |
Fair Value Disclosures - Loans
Fair Value Disclosures - Loans Held for Sale (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures | ||
Fair Value | $ 3,655 | $ 5,673 |
UPB | 3,485 | 5,563 |
Difference | 170 | 110 |
Trading Loans | ||
Fair Value Disclosures | ||
Fair Value | 1,569 | 2,948 |
UPB | 1,891 | 2,982 |
Difference | $ (322) | $ (34) |
Fair Value Disclosures - Measur
Fair Value Disclosures - Measured on a Nonrecurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
LHFS at fair value | $ 3,655 | $ 5,673 | |
Carrying Value | 5,129 | 3,310 | |
Carrying value | 4,810 | 8,373 | |
Unfunded Commitments Deferred Non Yield Related Loan Fees And Standby Letters Of Credit Carrying Value | 400 | 373 | |
Nonperforming | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
LHFS at fair value | 41 | 107 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
LHFS at fair value | 0 | $ 0 | |
LHFS | Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
LHFS at fair value | 427 | $ 0 | |
Valuation Adjustments | (25) | 0 | |
Loans and leases | Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 101 | 154 | |
Valuation Adjustments | (7) | (18) | |
Foreclosed real estate | Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 63 | 33 | |
Valuation Adjustments | $ (73) | $ (63) |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Assets and Liabilities Not Recorded at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Loans and leases HFI, net of ALLL | $ 314,018 | $ 298,293 |
Financial liabilities: | ||
Long-term debt | 65,662 | 41,339 |
Carrying Amount | ||
Financial assets: | ||
Loans and leases HFI, net of ALLL | 314,018 | 298,293 |
Financial liabilities: | ||
Time deposits | 35,539 | 35,896 |
Long-term debt | 65,662 | 41,339 |
Fair Value | Level 2 | ||
Financial liabilities: | ||
Time deposits | 35,821 | 35,885 |
Long-term debt | 64,998 | 42,051 |
Fair Value | Level 3 | ||
Financial assets: | ||
Loans and leases HFI, net of ALLL | $ 314,838 | $ 298,586 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Classifications and Hedging Relationships (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | $ 325,969 | $ 315,873 |
Fair Value, Gain | 7,471 | 4,260 |
Gross amount | (3,942) | (3,336) |
Derivative Asset [Abstract] | ||
Amounts subject to master netting arrangements | (1,988) | (1,708) |
Cash collateral (received) posted for amounts subject to master netting arrangements | (1,443) | (499) |
Net Amount Presented in the Consolidated Balance Sheets | 4,040 | 2,053 |
Derivative Liability [Abstract] | ||
Amounts subject to master netting arrangements | 1,988 | 1,708 |
Cash collateral (received) posted for amounts subject to master netting arrangements | 1,190 | 1,262 |
Net amount | (764) | (366) |
Fair value hedges | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 27,152 | 27,152 |
Fair Value, Gain | 577 | 113 |
Gross amount | (5) | (27) |
Fair value hedges | Interest rate contracts | Swap | Long-term debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 23,701 | 23,701 |
Fair Value, Gain | 577 | 113 |
Gross amount | 0 | (25) |
Fair value hedges | Interest rate contracts | Swap | Commercial Loan [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 44 | 44 |
Fair Value, Gain | 0 | 0 |
Gross amount | 0 | 0 |
Fair value hedges | Interest rate contracts | Options | Long-term debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 3,407 | 3,407 |
Fair Value, Gain | 0 | 0 |
Gross amount | (5) | (2) |
Not designated as hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 298,817 | 288,721 |
Fair Value, Gain | 6,894 | 4,147 |
Gross amount | (3,937) | (3,309) |
Not designated as hedges | Client-related and other risk management | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 254,600 | 244,317 |
Fair Value, Gain | 6,640 | 4,077 |
Gross amount | (3,618) | (3,282) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 150,165 | 144,473 |
Fair Value, Gain | 4,029 | 1,817 |
Gross amount | (1,026) | (673) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 24,997 | 25,938 |
Fair Value, Gain | 59 | 28 |
Gross amount | (23) | (19) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Forward commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 10,902 | 7,907 |
Fair Value, Gain | 140 | 6 |
Gross amount | (147) | (7) |
Not designated as hedges | Client-related and other risk management | Interest rate contracts | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 2,483 | 1,807 |
Fair Value, Gain | 0 | 0 |
Gross amount | 0 | 0 |
Not designated as hedges | Client-related and other risk management | Equity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 39,452 | 38,426 |
Fair Value, Gain | 1,483 | 1,988 |
Gross amount | (1,781) | (2,307) |
Not designated as hedges | Client-related and other risk management | Credit Contract | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 677 | 0 |
Fair Value, Gain | 5 | 0 |
Gross amount | (5) | 0 |
Not designated as hedges | Client-related and other risk management | Credit Contract | Loans and leases | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,179 | 894 |
Fair Value, Gain | 18 | 0 |
Gross amount | (22) | (34) |
Not designated as hedges | Client-related and other risk management | Credit Contract | Risk participation agreements | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 6,829 | 6,696 |
Fair Value, Gain | 0 | 0 |
Gross amount | (9) | (2) |
Not designated as hedges | Client-related and other risk management | Credit Contract | Total Return Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,924 | 2,531 |
Fair Value, Gain | 318 | 27 |
Gross amount | (4) | (11) |
Not designated as hedges | Client-related and other risk management | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 13,192 | 12,986 |
Fair Value, Gain | 242 | 144 |
Gross amount | (259) | (164) |
Not designated as hedges | Client-related and other risk management | Commodity Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 2,800 | 2,659 |
Fair Value, Gain | 346 | 67 |
Gross amount | (342) | (65) |
Not designated as hedges | Mortgage banking | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 19,428 | 17,562 |
Fair Value, Gain | 210 | 46 |
Gross amount | (246) | (20) |
Not designated as hedges | Mortgage banking | Interest rate contracts | Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 300 | 535 |
Fair Value, Gain | 0 | 0 |
Gross amount | 0 | 0 |
Not designated as hedges | Mortgage banking | Interest rate contracts | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 668 | 603 |
Fair Value, Gain | 6 | 2 |
Gross amount | 0 | 0 |
Not designated as hedges | Mortgage banking | Interest rate contracts | Interest rate lock commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 7,605 | 4,427 |
Fair Value, Gain | 177 | 34 |
Gross amount | (22) | (2) |
Not designated as hedges | Mortgage banking | Interest rate contracts | When issued securities, forward rate agreements and forward commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 10,855 | 11,997 |
Fair Value, Gain | 27 | 10 |
Gross amount | (224) | (18) |
Not designated as hedges | MSRs | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 24,789 | 26,842 |
Fair Value, Gain | 44 | 24 |
Gross amount | (73) | (7) |
Not designated as hedges | MSRs | Interest rate contracts | Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 21,142 | 19,196 |
Fair Value, Gain | 0 | 0 |
Gross amount | 0 | 0 |
Not designated as hedges | MSRs | Interest rate contracts | Options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,684 | 1,519 |
Fair Value, Gain | 15 | 22 |
Gross amount | (19) | (2) |
Not designated as hedges | MSRs | Interest rate contracts | Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 739 | 567 |
Fair Value, Gain | 0 | 0 |
Gross amount | 0 | 0 |
Not designated as hedges | MSRs | Interest rate contracts | When issued securities, forward rate agreements and forward commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 1,224 | 5,560 |
Fair Value, Gain | 29 | 2 |
Gross amount | $ (54) | $ (5) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Master Netting (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative Asset [Abstract] | ||
Derivative Asset, Gross | $ 7,471 | $ 4,260 |
Amount Offset | (3,431) | (2,207) |
Net Amount Presented in the Consolidated Balance Sheets | 4,040 | 2,053 |
Derivative, Collateral, Obligation to Return Securities | (25) | (18) |
Net Amountl | 4,015 | 2,035 |
Derivative Liability [Abstract] | ||
Gross amount | (3,942) | (3,336) |
Amount Offset | 3,178 | 2,970 |
Net amount | (764) | (366) |
Held/Pledged Financial Instruments | 16 | 33 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (748) | (333) |
Derivatives Subject to Master Netting Arrangements | ||
Derivative Asset [Abstract] | ||
Derivative Asset, Gross | 6,333 | 3,516 |
Amount Offset | (2,897) | (2,003) |
Net Amount Presented in the Consolidated Balance Sheets | 3,436 | 1,513 |
Derivative, Collateral, Obligation to Return Securities | (24) | (17) |
Net Amountl | 3,412 | 1,496 |
Derivative Liability [Abstract] | ||
Gross amount | (3,100) | (2,939) |
Amount Offset | 2,644 | 2,761 |
Net amount | (456) | (178) |
Held/Pledged Financial Instruments | 3 | 22 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (453) | (156) |
Derivatives Not Subject to Master Netting Arrangement | ||
Derivative Asset [Abstract] | ||
Derivative Asset, Gross | 590 | 138 |
Amount Offset | 0 | 0 |
Net Amount Presented in the Consolidated Balance Sheets | 590 | 138 |
Derivative, Collateral, Obligation to Return Securities | (1) | (1) |
Net Amountl | 589 | 137 |
Derivative Liability [Abstract] | ||
Gross amount | (168) | (193) |
Amount Offset | 0 | 5 |
Net amount | (168) | (188) |
Held/Pledged Financial Instruments | 13 | 11 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (155) | (177) |
Exchange Traded | ||
Derivative Asset [Abstract] | ||
Derivative Asset, Gross | 548 | 606 |
Amount Offset | (534) | (204) |
Net Amount Presented in the Consolidated Balance Sheets | 14 | 402 |
Derivative, Collateral, Obligation to Return Securities | 0 | 0 |
Net Amountl | 14 | 402 |
Derivative Liability [Abstract] | ||
Gross amount | (674) | (204) |
Amount Offset | 534 | 204 |
Net amount | (140) | 0 |
Held/Pledged Financial Instruments | 0 | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | $ (140) | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Value Hedges Basis Adjusments (Details) - Fair Value Hedges - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
AFS securities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Asset / Liability Basis | $ 433 | $ 473 |
AFS securities | Items Currently Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | 0 | 0 |
AFS securities | Items No Longer Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | 56 | 65 |
Loans and leases | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Asset / Liability Basis | 518 | 528 |
Loans and leases | Items Currently Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | 6 | 3 |
Loans and leases | Items No Longer Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | 14 | 15 |
Long-term debt | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Asset / Liability Basis | 29,980 | 28,557 |
Long-term debt | Items Currently Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | 1,098 | 174 |
Long-term debt | Items No Longer Designated | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedge Basis Adjustment | $ 22 | $ 23 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Amounts Related to Cash Flow Hedges (Details) - Cash Flow Hedges - Interest Rate Contracts - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax gain (loss) recognized in OCI | $ 0 | $ (40) |
Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax gain (loss) reclassified from AOCI into interest expense | (14) | 5 |
Deposits | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax gain (loss) recognized in OCI | 0 | (10) |
Deposits | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax gain (loss) reclassified from AOCI into interest expense | (2) | 2 |
Short-term Debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax gain (loss) recognized in OCI | 0 | (10) |
Short-term Debt | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax gain (loss) reclassified from AOCI into interest expense | (4) | 1 |
Long-term debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax gain (loss) recognized in OCI | 0 | (20) |
Long-term debt | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax gain (loss) reclassified from AOCI into interest expense | $ (8) | $ 2 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Amounts Related to Fair Value Hedges (Details) - Fair Value Hedges - Interest Rate Contracts - Net interest income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net income (expense) recognized | $ 13 | $ (16) |
AFS securities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amounts related to interest settlements | 0 | 0 |
Recognized on derivatives | 0 | (7) |
Recognized on hedged items | (2) | 5 |
Net income (expense) recognized | (2) | (2) |
Loans and leases | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amounts related to interest settlements | 0 | 0 |
Recognized on derivatives | (3) | (8) |
Recognized on hedged items | 2 | 8 |
Net income (expense) recognized | (1) | 0 |
Long-term debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amounts related to interest settlements | 16 | (22) |
Recognized on derivatives | 922 | 116 |
Recognized on hedged items | (922) | (108) |
Net income (expense) recognized | $ 16 | $ (14) |
Derivative Financial Instrume_8
Derivative Financial Instruments - Cash Flow and Fair Value Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Cash flow hedges | ||
Derivative [Line Items] | ||
Net unrecognized after-tax gain (loss) on active hedges recorded in AOCI | $ 0 | $ 0 |
Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (to be recognized in earnings through 2022) | (90) | (101) |
Estimated portion of net after-tax gain (loss) on active and terminated hedges to be reclassified from AOCI into earnings during the next 12 months | (34) | (37) |
Fair Value Hedges | ||
Derivative [Line Items] | ||
Unrecognized pre-tax net gain (loss) on terminated hedges (to be recognized as interest primarily through 2029) | (48) | (57) |
Portion of pre-tax net gain (loss) on terminated hedges to be recognized as a change in interest during the next 12 months | $ (4) | $ (6) |
Derivative Financial Instrume_9
Derivative Financial Instruments - Amounts Related to Derivative Instruments Not Designated as Hedges (Details) - Not designated as hedges - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax Gain (Loss) Recognized in Income | $ 890 | $ 51 |
Client-related and other risk management | Interest rate contracts | Investment banking and trading income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax Gain (Loss) Recognized in Income | (64) | 10 |
Client-related and other risk management | Foreign exchange contracts | Investment banking and trading income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax Gain (Loss) Recognized in Income | 107 | 2 |
Client-related and other risk management | Equity contracts | Investment banking and trading income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax Gain (Loss) Recognized in Income | (10) | 0 |
Client-related and other risk management | Credit Contract | Investment banking and trading income and other income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax Gain (Loss) Recognized in Income | 0 | |
Client-related and other risk management | Credit Contract | Investment banking and trading income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax Gain (Loss) Recognized in Income | 459 | |
Client-related and other risk management | Commodity Contract | Investment banking and trading income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax Gain (Loss) Recognized in Income | 3 | 0 |
Mortgage banking | Interest rate contracts | Residential mortgage income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax Gain (Loss) Recognized in Income | (122) | (15) |
Mortgage banking | Interest rate contracts | Commercial real estate related income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax Gain (Loss) Recognized in Income | 2 | 0 |
MSRs | Interest rate contracts | Residential mortgage income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax Gain (Loss) Recognized in Income | 495 | 54 |
MSRs | Interest rate contracts | Commercial real estate related income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Pre-tax Gain (Loss) Recognized in Income | $ 20 | $ 0 |
Derivative Financial Instrum_10
Derivative Financial Instruments - Risk Participation Agreements (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Total Return Swap | ||
Credit Derivatives [Line Items] | ||
Collateral Already Posted, Aggregate Fair Value | $ 783 | $ 653 |
Risk Participation Agreements Sold | ||
Credit Derivatives [Line Items] | ||
Maximum potential amount of exposure | $ 410 | $ 291 |
Derivative Financial Instrum_11
Derivative Financial Instruments - Dealer Counterparties and Central Clearing Parties (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Credit Derivatives [Line Items] | ||
Unsecured positions in a net gain with counterparties after collateral postings | $ 4,015 | $ 2,035 |
Dealer Counterparties | ||
Credit Derivatives [Line Items] | ||
Cash and other collateral received from counterparties | 1,467 | 514 |
Derivatives in a net gain position secured by collateral received | 1,581 | 615 |
Unsecured positions in a net gain with counterparties after collateral postings | 114 | 101 |
Cash collateral posted | 1,005 | 1,255 |
Derivatives in a net loss position | 1,052 | 1,300 |
Additional collateral that would have been posted had the Company's credit ratings dropped below investment grade | 13 | 12 |
Central Clearing Parties | ||
Credit Derivatives [Line Items] | ||
Derivatives in a net gain position secured by collateral received | 5 | 0 |
Cash collateral posted | 220 | 30 |
Derivatives in a net loss position | 199 | 31 |
Securities pledged to central counterparties clearing | $ 663 | $ 513 |
Computation of EPS (Details)
Computation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income available to common shareholders | $ 986 | $ 749 |
Weighted average number of common shares | 1,344,372 | 764,135 |
Effect of dilutive outstanding equity-based awards | 13,173 | 9,936 |
Weighted average number of diluted common shares | 1,357,545 | 774,071 |
Basic EPS | $ 0.73 | $ 0.98 |
Diluted EPS | $ 0.73 | $ 0.97 |
Anti-dilutive awards | 1,725 | 0 |
Operating Segments - Narrative
Operating Segments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2020numberOfSegments | |
Segment Reporting [Abstract] | |
Number of Major Reportable Business Segments | 3 |
Operating Segments (Details)
Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Interest Income | $ 3,650 | $ 1,696 | ||
Allocated provision for credit losses | 893 | 155 | ||
Segment net interest income after provision | 2,757 | 1,541 | ||
Noninterest income | 1,961 | 1,202 | ||
Total noninterest expense | 3,431 | 1,768 | ||
Income before income taxes | 1,287 | 975 | ||
Provision for income taxes | 224 | 177 | ||
Net income | 1,063 | 798 | ||
Identifiable assets (period end) | 506,229 | $ 473,078 | ||
CB-Retail | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Interest Income | 1,860 | 828 | ||
CB-Commercial | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Interest Income | 1,534 | 739 | ||
IH | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Interest Income | 36 | 34 | ||
OT&C | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Interest Income | [1] | 220 | 95 | |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Interest Income | 3,650 | 1,696 | ||
Allocated provision for credit losses | 893 | 155 | ||
Segment net interest income after provision | 2,757 | 1,541 | ||
Noninterest income | 1,961 | 1,202 | ||
Total noninterest expense | 3,431 | 1,768 | ||
Income before income taxes | 1,287 | 975 | ||
Provision for income taxes | 224 | 177 | ||
Net income | 1,063 | 798 | ||
Identifiable assets (period end) | 506,229 | 227,683 | ||
Operating Segments | CB-Retail | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Interest Income | 2,248 | 1,021 | ||
Allocated provision for credit losses | 437 | 131 | ||
Segment net interest income after provision | 1,811 | 890 | ||
Noninterest income | 1,072 | 507 | ||
Total noninterest expense | 1,993 | 882 | ||
Income before income taxes | 890 | 515 | ||
Provision for income taxes | 209 | 125 | ||
Net income | 681 | 390 | ||
Identifiable assets (period end) | 168,356 | 75,873 | ||
Operating Segments | CB-Commercial | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Interest Income | 1,340 | 634 | ||
Allocated provision for credit losses | 399 | 20 | ||
Segment net interest income after provision | 941 | 614 | ||
Noninterest income | 460 | 244 | ||
Total noninterest expense | 886 | 315 | ||
Income before income taxes | 515 | 543 | ||
Provision for income taxes | 92 | 113 | ||
Net income | 423 | 430 | ||
Identifiable assets (period end) | 203,363 | 85,911 | ||
Operating Segments | IH | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Interest Income | 25 | 23 | ||
Allocated provision for credit losses | 1 | 3 | ||
Segment net interest income after provision | 24 | 20 | ||
Noninterest income | 557 | 515 | ||
Total noninterest expense | 440 | 417 | ||
Income before income taxes | 141 | 118 | ||
Provision for income taxes | 36 | 30 | ||
Net income | 105 | 88 | ||
Identifiable assets (period end) | 7,009 | 6,376 | ||
Operating Segments | OT&C | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Interest Income | [1] | 37 | 18 | |
Allocated provision for credit losses | [1] | 56 | 1 | |
Segment net interest income after provision | [1] | (19) | 17 | |
Noninterest income | [1] | (128) | (64) | |
Total noninterest expense | [1] | 112 | 154 | |
Income before income taxes | [1] | (259) | (201) | |
Provision for income taxes | [1] | (113) | (91) | |
Net income | [1] | (146) | (110) | |
Identifiable assets (period end) | 127,501 | 59,523 | ||
Intersegment Eliminations | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Interest Income | 0 | 0 | ||
Intersegment Eliminations | CB-Retail | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Interest Income | 388 | 193 | ||
Intersegment Eliminations | CB-Commercial | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Interest Income | (194) | (105) | ||
Intersegment Eliminations | IH | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Interest Income | (11) | (11) | ||
Intersegment Eliminations | OT&C | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Interest Income | [1] | $ (183) | $ (77) | |
[1] | Includes financial data from business units below the quantitative and qualitative thresholds requiring disclosure. |