Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | COF | ||
Entity Registrant Name | CAPITAL ONE FINANCIAL CORP | ||
Entity Central Index Key | 927,628 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 467,880,673 | ||
Entity Public Float | $ 43.1 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income: | |||
Loans, including loans held for sale | $ 24,728 | $ 23,388 | $ 21,203 |
Investment securities | 2,211 | 1,711 | 1,599 |
Other | 237 | 123 | 89 |
Total interest income | 27,176 | 25,222 | 22,891 |
Interest expense: | |||
Deposits | 2,598 | 1,602 | 1,213 |
Securitized debt obligations | 496 | 327 | 216 |
Senior and subordinated notes | 1,125 | 731 | 476 |
Other borrowings | 82 | 102 | 113 |
Total interest expense | 4,301 | 2,762 | 2,018 |
Net interest income | 22,875 | 22,460 | 20,873 |
Benefit for credit losses | 5,856 | 7,551 | 6,459 |
Net interest income after provision for credit losses | 17,019 | 14,909 | 14,414 |
Non-interest income: | |||
Interchange fees, net | 2,823 | 2,573 | 2,452 |
Service charges and other customer-related fees | 1,585 | 1,597 | 1,646 |
Debt and Equity Securities, Gain (Loss) | (209) | 65 | (11) |
Other | 1,002 | 542 | 541 |
Total non-interest income | 5,201 | 4,777 | 4,628 |
Non-interest expense: | |||
Salaries and associate benefits | 5,727 | 5,899 | 5,202 |
Occupancy and equipment | 2,118 | 1,939 | 1,944 |
Marketing | 2,174 | 1,670 | 1,811 |
Professional services | 1,145 | 1,097 | 1,075 |
Communications and data processing | 1,260 | 1,177 | 1,169 |
Amortization of intangibles | 174 | 245 | 386 |
Other | 2,304 | 2,167 | 1,971 |
Total non-interest expense | 14,902 | 14,194 | 13,558 |
Income from continuing operations before income taxes | 7,318 | 5,492 | 5,484 |
Income tax provision | 1,293 | 3,375 | 1,714 |
Income from continuing operations, net of tax | 6,025 | 2,117 | 3,770 |
Loss from discontinued operations, net of tax | (10) | (135) | (19) |
Net income | 6,015 | 1,982 | 3,751 |
Dividends and undistributed earnings allocated to participating securities | (40) | (13) | (24) |
Preferred stock dividends | (265) | (265) | (214) |
Net income available to common stockholders | $ 5,710 | $ 1,704 | $ 3,513 |
Basic earnings per common share: | |||
Net income from continuing operations (in dollars per share) | $ 11.92 | $ 3.80 | $ 7 |
Income (loss) from discontinued operations (in dollars per share) | (0.02) | (0.28) | (0.04) |
Net income per basic common share (in dollars per share) | 11.90 | 3.52 | 6.96 |
Diluted earnings per common share: | |||
Net income from continuing operations (in dollars per share) | 11.84 | 3.76 | 6.93 |
Income (loss) from discontinued operations (in dollars per share) | (0.02) | (0.27) | (0.04) |
Net income per diluted common share (in dollars per share) | $ 11.82 | $ 3.49 | $ 6.89 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 6,015 | $ 1,982 | $ 3,751 |
After Tax | |||
Net unrealized gains (losses) on securities available for sale | (459) | 21 | (166) |
Net changes in securities held to maturity | 447 | 97 | 104 |
Net unrealized gains (losses) on cash flow hedges | (74) | (203) | (198) |
Foreign currency translation adjustments | (39) | 84 | (79) |
Other | (11) | 24 | 6 |
Other comprehensive income (loss), net of tax | (136) | 23 | (333) |
Comprehensive income | $ 5,879 | $ 2,005 | $ 3,418 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 4,768 | $ 4,458 |
Interest-bearing deposits and other short-term investments | 8,418 | 9,582 |
Total cash and cash equivalents | 13,186 | 14,040 |
Restricted cash for securitization investors | 303 | 312 |
Securities available for sale | 46,150 | 37,655 |
Securities held to maturity | 36,771 | 28,984 |
Debt Securities, Available-for-sale and Held-to-maturity | 82,921 | 66,639 |
Loans held for investment: | ||
Total loans held for investment | 245,899 | 254,473 |
Allowance for loan and lease losses | (7,220) | (7,502) |
Net loans held for investment | 238,679 | 246,971 |
Loans held for sale, at lower of cost or fair value | 1,192 | 971 |
Premises and equipment, net | 4,191 | 4,033 |
Interest receivable | 1,614 | 1,536 |
Goodwill | 14,544 | 14,533 |
Other assets | 15,908 | 16,658 |
Total assets | 372,538 | 365,693 |
Liabilities: | ||
Interest payable | 458 | 413 |
Deposits: | ||
Non-interest-bearing deposits | 23,483 | 26,404 |
Interest-bearing deposits | 226,281 | 217,298 |
Total deposits | 249,764 | 243,702 |
Securitized debt obligations | 18,307 | 20,010 |
Other debt: | ||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 352 | 576 |
Senior and subordinated notes | 30,826 | 30,755 |
Other borrowings | 9,420 | 8,940 |
Total other debt | 40,598 | 40,271 |
Other liabilities | 11,743 | 12,567 |
Total liabilities | 320,870 | 316,963 |
Stockholders’ equity: | ||
Preferred stock (par value $.01 per share; 50,000,000 shares authorized; 4,475,000 shares issued and outstanding as of both December 31, 2018 and 2017) | 0 | 0 |
Common stock (par value $.01 per share; 1,000,000,000 shares authorized; 667,969,069 and 661,724,927 shares issued as of December 31, 2018 and 2017, respectively, 467,717,306 and 485,525,340 shares outstanding as of December 31, 2018 and 2017, respectively) | 7 | 7 |
Additional paid-in capital, net | 32,040 | 31,656 |
Retained earnings | 35,875 | 30,700 |
Accumulated other comprehensive loss | (1,263) | (926) |
Treasury stock, at cost (par value $.01 per share; 200,251,763 and 176,199,587 shares as of December 31, 2018 and 2017, respectively) | (14,991) | (12,707) |
Total stockholders’ equity | 51,668 | 48,730 |
Total liabilities and stockholders’ equity | 372,538 | 365,693 |
Loans held in consolidated trusts | ||
Loans held for investment: | ||
Total loans held for investment | 34,197 | 35,667 |
Unsecuritized loans held for investment | ||
Cash and cash equivalents: | ||
Total cash and cash equivalents | 10,286 | 8,196 |
Loans held for investment: | ||
Total loans held for investment | 211,702 | 218,806 |
Other assets | 1,250 | 729 |
Total assets | 73,088 | 65,092 |
Other debt: | ||
Senior and subordinated notes | 19,518 | 14,392 |
Other borrowings | 1,671 | 1,633 |
Other liabilities | 231 | 337 |
Total liabilities | 21,420 | 16,362 |
Stockholders’ equity: | ||
Total stockholders’ equity | 51,668 | 48,730 |
Total liabilities and stockholders’ equity | $ 73,088 | $ 65,092 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 4,475,000 | 4,475,000 |
Preferred stock, shares outstanding | 4,475,000 | 4,475,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 667,969,069 | 661,724,927 |
Common stock, shares outstanding | 467,717,306 | 485,525,340 |
Treasury Stock, Par Value | $ 0.01 | $ 0.01 |
Treasury stock, common, shares | 200,251,763 | 176,199,587 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance at Dec. 31, 2015 | $ 47,284 | $ 0 | $ 6 | $ 29,655 | $ 27,045 | $ (616) | $ (8,806) |
Beginning balance (shares) at Dec. 31, 2015 | 3,375,000 | 648,317,395 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income (loss) | 3,418 | 3,751 | (333) | ||||
Common Stock Dividends, Shares | 52,338 | ||||||
Dividends, Common Stock | (812) | $ 0 | (816) | ||||
Dividends, Share-based Compensation, Stock | 4 | ||||||
Cash dividends - preferred series | (214) | (214) | |||||
Purchases of treasury stock | (3,661) | (3,661) | |||||
Issuances of common stock and restricted stock, shares, net of forfeitures | 3,272,745 | ||||||
Issuances of common stock and restricted stock, value, net of forfeitures | 131 | $ 1 | 130 | ||||
Exercise of stock options and warrants, tax effects of exercises and restricted stock vesting, shares | 2,094,129 | ||||||
Exercise of stock options and warrants, tax effects of exercises and restricted stock vesting, value | 102 | $ 0 | 102 | ||||
Stock Issued During Period, Shares, New Issues | 1,100,000 | ||||||
Stock Issued During Period, Value, New Issues | 1,066 | $ 0 | 1,066 | ||||
Compensation expense for restricted stock awards, restricted stock units and stock options | 200 | 200 | |||||
Ending balance at Dec. 31, 2016 | 47,514 | $ 0 | $ 7 | 31,157 | 29,766 | (949) | (12,467) |
Ending balance (shares) at Dec. 31, 2016 | 4,475,000 | 653,736,607 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income (loss) | 2,005 | 1,982 | 23 | ||||
Common Stock Dividends, Shares | 42,613 | ||||||
Dividends, Common Stock | (780) | $ 0 | (783) | ||||
Dividends, Share-based Compensation, Stock | 3 | ||||||
Cash dividends - preferred series | (265) | (265) | |||||
Purchases of treasury stock | (240) | (240) | |||||
Issuances of common stock and restricted stock, shares, net of forfeitures | 4,057,555 | ||||||
Issuances of common stock and restricted stock, value, net of forfeitures | 164 | $ 0 | 164 | ||||
Exercise of stock options and warrants, tax effects of exercises and restricted stock vesting, shares | 3,888,152 | ||||||
Exercise of stock options and warrants, tax effects of exercises and restricted stock vesting, value | 124 | $ 0 | 124 | ||||
Compensation expense for restricted stock awards, restricted stock units and stock options | 208 | 208 | |||||
Ending balance at Dec. 31, 2017 | 48,730 | $ 0 | $ 7 | 31,656 | 30,700 | (926) | (12,707) |
Ending balance (shares) at Dec. 31, 2017 | 4,475,000 | 661,724,927 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effects from adoption of new accounting standards | 0 | 201 | (201) | ||||
Comprehensive income (loss) | 5,879 | 6,015 | (136) | ||||
Common Stock Dividends, Shares | 35,813 | ||||||
Dividends, Common Stock | (773) | $ 0 | (776) | ||||
Dividends, Share-based Compensation, Stock | 3 | ||||||
Cash dividends - preferred series | (265) | (265) | |||||
Purchases of treasury stock | (2,284) | (2,284) | |||||
Issuances of common stock and restricted stock, shares, net of forfeitures | 4,183,783 | ||||||
Issuances of common stock and restricted stock, value, net of forfeitures | 175 | $ 0 | 175 | ||||
Exercise of stock options and warrants, tax effects of exercises and restricted stock vesting, shares | 2,024,546 | ||||||
Exercise of stock options and warrants, tax effects of exercises and restricted stock vesting, value | 38 | $ 0 | 38 | ||||
Compensation expense for restricted stock awards, restricted stock units and stock options | 168 | 168 | |||||
Ending balance at Dec. 31, 2018 | $ 51,668 | $ 0 | $ 7 | $ 32,040 | $ 35,875 | $ (1,263) | $ (14,991) |
Ending balance (shares) at Dec. 31, 2018 | 4,475,000 | 667,969,069 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | |||
Income from continuing operations, net of tax | $ 6,025 | $ 2,117 | $ 3,770 |
Loss from discontinued operations, net of tax | (10) | (135) | (19) |
Net income | 6,015 | 1,982 | 3,751 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Benefit for credit losses | 5,856 | 7,551 | 6,459 |
Depreciation and amortization, net | 2,396 | 2,440 | 2,428 |
Deferred tax provision (benefit) | 714 | 1,434 | (686) |
Net securities losses (gains) | 209 | (65) | 11 |
Gain on sales of loans | (548) | (72) | (80) |
Stock-based compensation expense | 170 | 244 | 239 |
Other | (125) | (8) | (11) |
Loans held for sale: | |||
Originations and purchases | (9,039) | (8,929) | (8,645) |
Proceeds from sales and paydowns | 8,442 | 9,595 | 8,390 |
Changes in operating assets and liabilities: | |||
Changes in interest receivable | (74) | (157) | (159) |
Changes in other assets | 476 | (714) | (1,907) |
Changes in interest payable | 45 | 85 | 28 |
Changes in other liabilities | (1,553) | 1,157 | 2,013 |
Net change from discontinued operations | (6) | (361) | 25 |
Net cash from operating activities | 12,978 | 14,182 | 11,856 |
Securities available for sale: | |||
Purchases | (14,022) | (12,412) | (14,154) |
Proceeds from paydowns and maturities | 7,510 | 7,213 | 7,867 |
Proceeds from sales | 6,399 | 8,181 | 4,146 |
Securities held to maturity: | |||
Purchases | (19,166) | (5,885) | (3,787) |
Proceeds from paydowns and maturities | 2,419 | 2,594 | 2,681 |
Loans: | |||
Net changes in loans held for investment | 1,015 | (12,315) | (22,036) |
Principal recoveries of loans previously charged off | 2,503 | 1,951 | 1,493 |
Net purchases of premises and equipment | (874) | (1,018) | (779) |
Net cash from acquisition activities | (600) | (3,187) | (629) |
Net cash from other investing activities | (802) | (663) | (432) |
Net cash from investing activities | (15,618) | (15,541) | (25,630) |
Financing activities: | |||
Changes in deposits | 6,077 | 6,993 | 19,031 |
Issuance of securitized debt obligations | 997 | 5,983 | 6,259 |
Maturities and paydowns of securitized debt obligations | (2,673) | (7,233) | (3,540) |
Issuance of senior and subordinated notes and long-term FHLB advances | 5,977 | 35,426 | 22,984 |
Maturities and paydowns of senior and subordinated notes and long-term FHLB advances | (14,163) | (36,554) | (24,170) |
Changes in other borrowings | 8,671 | (400) | 11 |
Common stock: | |||
Net proceeds from issuances | 175 | 164 | 131 |
Dividends paid | (773) | (780) | (812) |
Preferred stock: | |||
Net proceeds from issuances | 0 | 0 | 1,066 |
Dividends paid | (265) | (265) | (214) |
Purchases of treasury stock | (2,284) | (240) | (3,661) |
Proceeds from share-based payment activities | 38 | 124 | 142 |
Net cash from financing activities | 1,777 | 3,218 | 17,227 |
Changes in cash, cash equivalents and restricted cash for securitization investors | (863) | 1,859 | 3,453 |
Cash, cash equivalents and restricted cash for securitization investors, beginning of the period | 14,352 | 12,493 | 9,040 |
Cash, cash equivalents and restricted cash for securitization investors, end of the period | 13,489 | 14,352 | 12,493 |
Non-cash items: | |||
Net transfers from loans held for investment to loans held for sale | 855 | 674 | 552 |
Securitized debt obligations assumed in acquisition | 0 | 2,484 | 0 |
Loans held for sale acquired by assuming other borrowings | 0 | 283 | 0 |
Interest paid | 3,933 | 2,772 | 2,250 |
Income tax paid | $ 407 | $ 1,187 | $ 2,121 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company Capital One Financial Corporation, a Delaware Corporation established in 1994 and headquartered in McLean, Virginia, is a diversified financial services holding company with banking and non-banking subsidiaries. Capital One Financial Corporation and its subsidiaries (the “Company”) offer a broad array of financial products and services to consumers, small businesses and commercial clients through branches, the internet and other distribution channels. As of December 31, 2018 , our principal subsidiaries included: • Capital One Bank (USA), National Association (“COBNA”), which offers credit and debit card products, other lending products and deposit products; and • Capital One, National Association (“CONA”), which offers a broad spectrum of banking products and financial services to consumers, small businesses and commercial clients. The Company is hereafter collectively referred to as “we,” “us” or “our.” COBNA and CONA are collectively referred to as the “Banks.” We also offer products outside of the United States of America (“U.S.”) principally through Capital One (Europe) plc (“COEP”), an indirect subsidiary of COBNA organized and located in the United Kingdom (“U.K.”), and through a branch of COBNA in Canada. COEP has authority, among other things, to provide credit card loans. Our branch of COBNA in Canada also has the authority to provide credit card loans. Our principal operations are organized for management reporting purposes into three major business segments, which are defined primarily based on the products and services provided or the type of customer served: Credit Card, Consumer Banking and Commercial Banking. We provide details on our business segments, the integration of recent acquisitions, if any, into our business segments and the allocation methodologies and accounting policies used to derive our business segment results in “ Note 18—Business Segments and Revenue from Contracts with Customers .” Basis of Presentation and Use of Estimates The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the related disclosures. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgments, actual amounts or results could differ from these estimates. Certain prior period amounts have been reclassified to conform to the current period presentation. Principles of Consolidation The consolidated financial statements include the accounts of Capital One Financial Corporation and all other entities in which we have a controlling financial interest. We determine whether we have a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity (“VOE”) or a variable interest entity (“VIE”). All significant intercompany account balances and transactions have been eliminated. Voting Interest Entities VOEs are entities that have sufficient equity and provide the equity investors voting rights that give them the power to make significant decisions relating to the entity’s operations. Since a controlling financial interest in an entity is typically obtained through ownership of a majority voting interest, we consolidate our majority-owned subsidiaries and other voting interest entities in which we hold, directly or indirectly, more than 50% of the voting rights or where we exercise control through other contractual rights. Investments in entities where we do not have a controlling financial interest but we have significant influence over the entity’s financial and operating decisions (generally defined as owning a voting interest of 20% to 50%) are accounted for under the equity method. If we own less than 20% of a voting interest entity, we generally measure equity investments at fair value with changes in fair value recorded through net income, except those that do not have a readily determinable fair value (for which a measurement alternative can be elected). We report equity investments in other assets on our consolidated balance sheets and include our share of income or loss and dividends from those investments in other non-interest income in our consolidated statements of income. Variable Interest Entities VIEs are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties; or (ii) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and is required to consolidate the VIE. An entity is deemed to be the primary beneficiary of a VIE if that entity has both (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In determining whether we are the primary beneficiary of a VIE, we consider both qualitative and quantitative factors regarding the nature, size and form of our involvement with the VIE, such as our role in establishing the VIE and our ongoing rights and responsibilities; our economic interests, including debt and equity investments, servicing fees and other arrangements deemed to be variable interests in the VIE; the design of the VIE, including the capitalization structure, subordination of interests, payment priority, relative share of interests held across various classes within the VIE’s capital structure and the reasons why the interests are held by us. We perform on-going reassessments to evaluate whether changes in an entity’s capital structure or changes in the nature of our involvement with the entity result in a change to the VIE designation or a change to our consolidation conclusion. See “ Note 6—Variable Interest Entities and Securitizations ” for further details. Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, interest-bearing deposits and other short-term investments, all of which, if applicable, have stated maturities of three months or less when acquired. Securities Resale and Repurchase Agreements Securities purchased under resale agreements and securities loaned or sold under agreements to repurchase, principally U.S. government and agency obligations, are not accounted for as sales but as collateralized financing transactions and recorded at the amounts at which the securities were acquired or sold, plus accrued interest. We continually monitor the market value of these securities and deliver additional collateral to or obtain additional collateral from counterparties, as appropriate. See “ Note 9—Deposits and Borrowings ” for further details. Investment Securities Our investment portfolio consists primarily of the following: U.S. Treasury securities; U.S. government-sponsored enterprise or agency (“Agency”) and non-agency residential mortgage-backed securities (“RMBS”); Agency commercial mortgage-backed securities (“CMBS”); and other securities. The accounting and measurement framework for our investment securities differs depending on the security classification. We classify securities as available for sale or held to maturity based on our investment strategy and management’s assessment of our intent and ability to hold the securities until maturity. Securities that we may sell prior to maturity in response to changes in our investment strategy, liquidity needs, interest rate risk profile or for other reasons are classified as available for sale. Securities that we have the intent and ability to hold until maturity are classified as held to maturity. We report securities available for sale on our consolidated balance sheets at fair value with unrealized gains or losses recorded, net of tax, as a component of accumulated other comprehensive income (“AOCI”). We report securities held to maturity on our consolidated balance sheets at carrying value, which generally equals amortized cost. Amortized cost reflects historical cost adjusted for amortization of premiums, accretion of discounts and any previously recorded impairments. Investment securities transferred into the held to maturity category from the available for sale category are recorded at fair value at the date of transfer. Any unrealized gains or losses at the transfer date are thereafter included in AOCI. Such unrealized gains or losses are accreted over the remaining life of the security and are expected to offset the amortization of the related premium or discount created upon the investment securities transfer into the held to maturity category, with no expected impact on future net income. Unamortized premiums, discounts and other basis adjustments are recognized in interest income over the contractual lives of the securities using the effective interest method. We record purchases and sales of investment securities on a trade date basis. Realized gains or losses from the sale of debt securities are computed using the first in first out method of identification, and are included in non-interest income in our consolidated statements of income. If we intend to sell an available for sale security in an unrealized loss position or it is more likely than not that we will be required to sell the security prior to recovery of its amortized cost basis, the entire difference between the amortized cost basis of the security and its fair value is recognized in our consolidated statements of income. We regularly evaluate our securities whose fair values have declined below amortized cost to assess whether the decline in fair value represents an other than temporary impairment (“OTTI”). We discuss our assessment and accounting for OTTI in “ Note 3—Investment Securities .” We discuss the techniques we use in determining the fair value of our investment securities in “ Note 17—Fair Value Measurement .” Our investment portfolio also includes certain acquired debt securities that were deemed to be credit impaired at the acquisition date, and therefore are accounted for in accordance with accounting guidance for purchased credit-impaired (“PCI”) loans and debt securities. These securities are recorded at fair value at the acquisition date using the estimated cash flows we expect to collect discounted by the prevailing market interest rate. The difference between the contractually required payments due and the undiscounted cash flows we expect to collect at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference. The nonaccretable difference reflects estimated future credit losses expected to be incurred over the life of the security, and is recorded as a discount to the related debt security on our consolidated balance sheet. The excess of the undiscounted cash flows expected to be collected over the estimated fair value of credit-impaired debt securities at acquisition is referred to as the accretable yield, which is accreted into interest income using an effective yield method over the remaining life of the security. Further decreases in expected cash flows attributable to credit result in the recognition of OTTI. Significant increases in expected cash flows are recognized prospectively over the remaining life of the security as an adjustment to the accretable yield. See “Loans Acquired” section of this Note for further discussion of accounting guidance for PCI loans and debt securities. Loans Our loan portfolio consists of loans held for investment, including loans underlying our consolidated securitization trusts, and loans held for sale, and is divided into three portfolio segments: credit card, consumer banking and commercial banking loans. Credit card loans consist of domestic and international credit card loans. Consumer banking loans consist of auto and retail banking loans (see “ Note 2—Business Developments ” for information about our consumer home loan portfolio sale in 2018). Commercial banking loans consist of commercial and multifamily real estate, commercial and industrial, and small-ticket commercial real estate loans. Loan Classification Upon origination or purchase, we classify loans as held for investment or held for sale based on our investment strategy and management’s intent and ability with regard to the loans which may change over time. The accounting and measurement framework for loans differs depending on the loan classification, whether the loans are originated or purchased and whether purchased loans are considered credit-impaired at the date of acquisition. The presentation within the consolidated statements of cash flows is based on management’s intent at acquisition or origination. Cash flows related to loans held for investment are included in cash flows from investing activities on our consolidated statements of cash flows. Cash flows related to loans held for sale are included in cash flows from operating activities on our consolidated statements of cash flows. Loans Held for Investment Loans that we have the ability and intent to hold for the foreseeable future and loans associated with consolidated securitization transactions are classified as held for investment. Loans classified as held for investment, except PCI loans described below, are reported at their amortized cost, which is the outstanding principal balance, adjusted for any unearned income, unamortized deferred fees and costs, unamortized premiums and discounts and charge-offs. Credit card loans also include billed finance charges and fees, net of the estimated uncollectible amount. Interest income is recognized on performing loans held for investment on an accrual basis. We defer loan origination fees and direct loan origination costs on originated loans, premiums and discounts on purchased loans and loan commitment fees. We recognize these amounts in interest income as yield adjustments over the life of the loan and/or commitment period using the effective interest method. For credit card loans, loan origination fees and direct loan origination costs are amortized on a straight-line basis over a 12 -month period. Loans held for investment are subject to our allowance for loan and lease losses methodology described below under “Allowance for Loan and Lease Losses.” Loans Held for Sale Loans purchased or originated with the intent to sell or for which we do not have the ability and intent to hold for the foreseeable future are classified as held for sale. These loans are recorded at the lower of cost or fair value. Loan origination fees, direct loan origination costs and any discounts and premiums are deferred until the loan is sold and are then recognized as part of the total gain or loss on sale. The fair value of loans held for sale is determined on an aggregate portfolio basis for each loan type. If a loan is transferred from held for investment to held for sale, on the transfer date, any decline in fair value related to credit is recorded as a charge-off. Subsequent to transfer, we report write-downs or recoveries in fair value up to the carrying value at the date of transfer and realized gains or losses on loans held for sale in our consolidated statements of income as a component of other non-interest income. We calculate the gain or loss on loan sales as the difference between the proceeds received and the carrying value of the loans sold, net of the fair value of any residual interests retained. Loans Acquired All purchased loans, including loans transferred in a business combination, are initially recorded at fair value, which includes consideration of expected future losses, as of the date of the acquisition. To determine the fair value of loans at acquisition, we estimate discounted contractual cash flows due using an observable market rate of interest, when available, adjusted for factors that a market participant would consider in determining fair value. In determining fair value, contractual cash flows are adjusted to include prepayment estimates based upon trends in default rates and loss severities. The difference between the fair value and the contractual cash flows is recorded as a loan discount or premium at acquisition. Subsequent to acquisition, the loans are classified and accounted for as either held for investment or held for sale based on management’s ability and intent with regard to the loans. Loans held for investment are subject to our allowance for loan and lease losses methodology described below under “Allowance for Loan and Lease Losses.” We account for purchased loans under the accounting guidance for purchased credit-impaired loans and debt securities, which is based upon expected cash flows, if the purchased loans have a discount attributable, at least in part, to credit deterioration and they are not specifically scoped out of the guidance. We refer to these purchased loans that are subsequently accounted for based on expected cash flows to be collected as “PCI loans.” Other purchased loans that do not meet the criteria described above or are specifically scoped out of this guidance are accounted for based on contractual cash flows. Loans Acquired and Accounted for Based on Expected Cash Flows For PCI loans, the excess of cash flows expected to be collected over the estimated fair value of purchased loans is referred to as the accretable yield. This amount is not recorded on our consolidated balance sheets, but is accreted into interest income over the life of the loan, or pool of loans, using the effective interest method. The difference between total contractual payments on the loans and all expected cash flows represents the nonaccretable difference or the amount of principal and interest not considered collectible. We may aggregate loans acquired in the same fiscal quarter into one or more pools if the loans have common risk characteristics. A pool is then accounted for as a single asset, with a single composite interest rate and an aggregate fair value and expected cash flows. Subsequent to acquisition, changes in the estimated cash flows expected to be collected may result in changes in the accretable yield and nonaccretable difference or reclassifications from the nonaccretable difference to the accretable yield. Decreases in expected cash flows resulting from credit deterioration subsequent to acquisition will generally result in an impairment charge recognized in our provision for credit losses and an increase in the allowance for loan and lease losses. Significant increases in the cash flows expected to be collected would first reduce any previously recorded allowance for loan and lease losses. The excess over the recorded allowance for loan and lease losses would result in a reclassification to the accretable yield from the nonaccretable difference and an increase in interest income recognized over the remaining life of the loan or pool of loans. Disposals of loans in the form of sales to third parties, receipt of payment in full or in part by the borrower, and foreclosure of the collateral, result in removal of the loan from the PCI loans portfolio. See “ Note 4—Loans ” for additional information. Loan Modifications and Restructurings As part of our loss mitigation efforts, we may provide modifications to a borrower experiencing financial difficulty to improve long-term collectability of the loan and to avoid the need for foreclosure or repossession of collateral. A loan modification in which a concession is granted to a borrower experiencing financial difficulty is accounted for and reported as a troubled debt restructuring (“TDR”). Our loan modifications typically include an extension of the loan term, a reduction in the interest rate, a reduction in the loan balance, or a combination of these concessions. We describe our accounting for and measurement of impairment on TDR loans below under “Impaired Loans.” See “ Note 4—Loans ” for additional information on our loan modifications and restructurings. Delinquent and Nonperforming Loans The entire balance of a loan is considered contractually delinquent if the minimum required payment is not received by the first statement cycle date equal to or following the due date specified on the customer’s billing statement. Delinquency is reported on loans that are 30 or more days past due. Interest and fees continue to accrue on past due loans until the date the loan is placed on nonaccrual status, if applicable. We generally place loans on nonaccrual status when we believe the collectability of interest and principal is not reasonably assured. Nonperforming loans generally include loans that have been placed on nonaccrual status, but we do not report loans classified as held for sale as nonperforming. Our policies for classifying loans as nonperforming, by loan category, are as follows: • Credit card loans: As permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”), our policy is generally to exempt credit card loans from being classified as nonperforming, as these loans are generally charged off in the period the account becomes 180 days past due. Consistent with industry conventions, we generally continue to accrue interest and fees on delinquent credit card loans until the loans are charged-off. • Consumer banking loans: We classify consumer banking loans as nonperforming when we determine that the collectability of all interest and principal on the loan is not reasonably assured, generally when the loan becomes 90 days past due. • Commercial banking loans : We classify commercial banking loans as nonperforming as of the date we determine that the collectability of all interest and principal on the loan is not reasonably assured. • Modified loans and troubled debt restructurings: Modified loans, including TDRs, that are current at the time of the restructuring remain on accrual status if there is demonstrated performance prior to the restructuring and continued performance under the modified terms is expected. Otherwise, the modified loan is classified as nonperforming. • PCI loans: PCI loans are not classified as delinquent or nonperforming. Interest and fees accrued but not collected at the date a loan is placed on nonaccrual status are reversed against earnings. In addition, the amortization of net deferred loan fees is suspended. Interest and fee income is subsequently recognized only upon the receipt of cash payments. However, if there is doubt regarding the ultimate collectability of loan principal, cash received is generally applied against the principal balance of the loan. Nonaccrual loans are generally returned to accrual status when all principal and interest is current and repayment of the remaining contractual principal and interest is reasonably assured, or when the loan is both well-secured and in the process of collection and collectability is no longer doubtful. Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due from the borrower in accordance with the original contractual terms of the loan. Generally, we report loans as impaired based on the method for measuring impairment in accordance with applicable accounting guidance. Loans held for sale are not reported as impaired, as these loans are recorded at lower of cost or fair value. Impaired loans also exclude PCI loans, as these loans are accounted for based on expected cash flows at acquisition because this accounting methodology takes into consideration future credit losses. Loans defined as individually impaired, based on applicable accounting guidance, include larger-balance nonperforming loans and TDR loans. Loans modified in a TDR continue to be reported as impaired until maturity. Our policies for identifying loans as individually impaired, by loan category, are as follows: • Credit card loans: Credit card loans that have been modified in a troubled debt restructuring are identified and accounted for as individually impaired. • Consumer banking loans: Consumer loans that have been modified in a troubled debt restructuring are identified and accounted for as individually impaired. • Commercial banking loans: Commercial loans classified as nonperforming and commercial loans that have been modified in a troubled debt restructuring are reported as individually impaired. The majority of individually impaired loans are evaluated for an asset-specific allowance. We generally measure impairment and the related asset-specific allowance for individually impaired loans based on the difference between the recorded investment of the loan and the present value of the expected future cash flows, discounted at the original effective interest rate of the loan at the time of modification. If the loan is collateral dependent, we measure impairment based upon the fair value of the underlying collateral, which we determine based on the current fair value of the collateral less estimated selling costs. Loans are identified as collateral dependent if we believe the collateral will be the primary source of repayment. Charge-Offs We charge off loans as a reduction to the allowance for loan and lease losses when we determine the loan is uncollectible and record subsequent recoveries of previously charged off amounts as an increase to the allowance for loan and lease losses. We exclude accrued and unpaid finance charges and fees and certain fraud losses from charge-offs. Costs to recover charged-off loans are recorded as collection expense and included in our consolidated statements of income as a component of other non-interest expense as incurred. Our charge-off time frames by loan type are presented below. • Credit card loans: We generally charge-off credit card loans in the period the account becomes 180 days past due. We charge off delinquent credit card loans for which revolving privileges have been revoked as part of loan workout when the account becomes 120 days past due. Credit card loans in bankruptcy are generally charged-off by the end of the month following 30 days after the receipt of a complete bankruptcy notification from the bankruptcy court. Credit card loans of deceased account holders are charged-off by the end of the month following 60 days of receipt of notification. • Consumer banking loans: We generally charge-off consumer banking loans at the earlier of the date when the account is a specified number of days past due or upon repossession of the underlying collateral. Our charge-off time frame is 180 days for home loans and 120 days for auto loans. Small business banking loans generally charge off at 120 days past due based on when unpaid principal loan amounts are deemed uncollectible. We calculate the initial charge-off amount for home loans based on the excess of our recorded investment in the loan over the fair value of the underlying property less estimated selling costs as of the date of the charge-off. We update our home value estimates on a regular basis and may recognize additional charge-offs for subsequent declines in home values. Auto and home loans where the borrower has filed for bankruptcy and the loan has not been reaffirmed charge off in the period that the loan is 60 days from the bankruptcy notification date, regardless of delinquency status. Auto and home loans that have not been charged off and have been discharged under Chapter 7 bankruptcy are charged off at the end of the month in which the bankruptcy discharge occurs. Remaining consumer loans generally are charged off within 40 days of receipt of notification from the bankruptcy court. Consumer loans of deceased account holders are charged off by the end of the month following 60 days of receipt of notification. • Commercial banking loans: We charge off commercial loans in the period we determine that the unpaid principal loan amounts are uncollectible. • PCI loans: We do not record charge-offs on PCI loans that are meeting or exceeding our performance expectations as of the date of acquisition, as the fair values of these loans already reflect a discount for expected future credit losses. We record charge-offs on PCI loans only if actual losses exceed estimated credit losses incorporated into the fair value recorded at acquisition. Allowance for Loan and Lease Losses We maintain an allowance for loan and lease losses (“allowance”) that represents management’s best estimate of incurred loan and lease losses inherent in our held for investment portfolio as of each balance sheet date. The provision for credit losses reflects credit losses we believe have been incurred and will eventually be recognized over time in our charge-offs. Charge-offs of uncollectible amounts are deducted from the allowance and subsequent recoveries are added back. Management performs a quarterly analysis of our loan portfolio to determine if impairment has occurred and to assess the adequacy of the allowance based on historical and current trends as well as other factors affecting credit losses. We apply documented systematic methodologies to separately calculate the allowance for our consumer loan and commercial loan portfolios. Our allowance for loan and lease losses consists of three components that are allocated to cover the estimated probable losses in each loan portfolio based on the results of our detailed review and loan impairment assessment process: (i) a component for loans collectively evaluated for impairment; (ii) an asset-specific component for individually impaired loans; and (iii) a component related to PCI loans that have experienced significant decreases in expected cash flows subsequent to acquisition. Each of our allowance components is supplemented by an amount that represents management’s qualitative judgment of the imprecision and risks inherent in the processes and assumptions used in establishing the allowance. Management’s judgment involves an assessment of subjective factors, such as process risk, modeling assumption and adjustment risks and probable internal and external events that will likely impact losses. Our credit card and consumer loan portfolios consist of smaller-balance, homogeneous loans. The consumer loan portfolio is divided into two primary portfolio segments: auto loans and retail banking loans (see “ Note 2—Business Developments ” for information about our consumer home loan portfolio sale in 2018). The credit card and consumer loan portfolios are further divided by our business units into groups based on common risk characteristics, such as origination year, contract type, interest rate and geography, which are collectively evaluated for impairment. The commercial loan portfolio is primarily composed of larger-balance, non-homogeneous loans. These loans are subject to individual reviews that result in internal risk ratings. In assessing the risk rating of a particular loan, among the factors we consider are the financial condition of the borrower, geography, collateral performance, historical loss experience, and industry-specific information that management believes is relevant in determining the occurrence of a loss event and measuring impairment. These factors are based on an evaluation of historical and current information, and involve subjective assessment and interpretation. Emphasizing one factor over another or considering additional factors could impact the risk rating assigned to that loan. The component of the allowance related to credit card and consumer loans that we collectively evaluate for impairment is based on a statistical calculation, which is supplemented by management judgment as described above. Because of the homogeneous nature of our consumer loan portfolios, the allowance is based on the aggregated portfolio segment evaluations. The allowance is established through a process that begins with estimates of incurred losses in each pool based upon various statistical analyses. Loss forecast models are utilized to estimate probable losses incurred and consider several portfolio indicators including, but not limited to, historical loss |
Business Developments
Business Developments | 12 Months Ended |
Dec. 31, 2018 | |
Mergers, Acquisitions, Restructuring and Dispositions Disclosures [Abstract] | |
Business Developments | NOTE 2—BUSINESS DEVELOPMENTS Business Developments We periodically initiate restructuring activities to support business strategies and enhance our overall operational efficiency. These restructuring activities have primarily consisted of exiting certain business locations and activities as well as the realignment of resources supporting various businesses, including the decisions within Consumer Banking business to cease new originations of home loan lending products in the fourth quarter of 2017, to sell our online retail brokerage business in the first quarter of 2018 and to sell all of our consumer home loan portfolio in 2018. The charges incurred as a result of these restructuring activities have primarily consisted of severance and related benefits pursuant to our ongoing benefit programs, which are included in salaries and associate benefits within non-interest expense in our consolidated statements of income, as well as impairment of certain assets related to business locations and activities being exited, which are generally included in occupancy and equipment within non-interest expense. During 2018 and 2017, we recognized restructuring charges of $34 million and $184 million , respectively, which are reflected in the Other category of our business segment results. In 2018, we sold all of our consumer home loan portfolio and recognized a net gain of approximately $499 million in the Other category, including a benefit for credit losses of $46 million . The impact of the sale of our consumer home loan portfolio in our consolidated statements of cash flows is included in net changes in loans held for investment. We also sold our online retail brokerage business in 2018 and transferred approximately $1.4 billion |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | NOTE 3—INVESTMENT SECURITIES Our investment securities portfolio consists primarily of the following: U.S. Treasury securities; U.S. government-sponsored enterprise or agency (“Agency”) and non-agency RMBS; Agency CMBS; and other securities. Agency securities include Government National Mortgage Association (“Ginnie Mae”) guaranteed securities, Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”) issued securities. The carrying value of our investments in U.S. Treasury and Agency securities represented 96% and 95% of our total investment securities as of December 31, 2018 and 2017 , respectively. We classify investment securities as either available for sale or held to maturity. As of December 31, 2018 and 2017, we had investment securities available for sale of $46.2 billion and $37.7 billion , respectively, and securities held to maturity of $36.8 billion and $29.0 billion , respectively. The table below presents the amortized cost, gross unrealized gains and losses, and fair value of securities available for sale as of December 31, 2018 and 2017 . Table 3.1 : Investment Securities Available for Sale December 31, 2018 (Dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investment securities available for sale: U.S. Treasury securities $ 6,146 $ 15 $ (17 ) $ 6,144 RMBS: Agency 32,710 62 (869 ) 31,903 Non-agency 1,440 304 (2 ) 1,742 Total RMBS 34,150 366 (871 ) 33,645 Agency CMBS 4,806 11 (78 ) 4,739 Other securities (1) 1,626 2 (6 ) 1,622 Total investment securities available for sale $ 46,728 $ 394 $ (972 ) $ 46,150 December 31, 2017 (Dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investment securities available for sale: U.S. Treasury securities $ 5,168 $ 11 $ (8 ) $ 5,171 RMBS: Agency 26,013 67 (402 ) 25,678 Non-agency 1,722 393 (1 ) 2,114 Total RMBS 27,735 460 (403 ) 27,792 Agency CMBS 3,209 10 (44 ) 3,175 Other securities (1) 1,516 4 (3 ) 1,517 Total investment securities available for sale $ 37,628 $ 485 $ (458 ) $ 37,655 __________ (1) Includes primarily supranational bonds, foreign government bonds and other asset-backed securities. The table below presents the amortized cost, carrying value, gross unrealized gains and losses, and fair value of securities held to maturity as of December 31, 2018 and 2017 . In the first quarter of 2018, we made a one-time transfer of held to maturity securities with a carrying value of $9.0 billion to available for sale as a result of our adoption of ASU No. 2017-12. These securities had pre-tax unrealized losses of $535 million ( $407 million after-tax) in AOCI prior to the transfer. See “ Note 1—Summary of Significant Accounting Policies ” and “ Note 11—Stockholders’ Equity ” for more information. Table 3.2 : Investment Securities Held to Maturity December 31, 2018 (Dollars in millions) Amortized Cost Unrealized Losses Recorded in AOCI Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value Agency RMBS $ 33,299 $ (238 ) $ 33,061 $ 293 $ (377 ) $ 32,977 Agency CMBS 3,723 (13 ) 3,710 21 (89 ) 3,642 Total investment securities held to maturity $ 37,022 $ (251 ) $ 36,771 $ 314 $ (466 ) $ 36,619 December 31, 2017 (Dollars in millions) Amortized Cost Unrealized Losses Recorded in AOCI Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities $ 200 $ 0 $ 200 $ 0 $ 0 $ 200 Agency RMBS 25,741 (761 ) 24,980 565 (150 ) 25,395 Agency CMBS 3,882 (78 ) 3,804 70 (32 ) 3,842 Total investment securities held to maturity $ 29,823 $ (839 ) $ 28,984 $ 635 $ (182 ) $ 29,437 Investment Securities in a Gross Unrealized Loss Position The table below provides, by major security type, information about our securities available for sale in a gross unrealized loss position and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2018 and 2017 . Table 3.3 : Securities in a Gross Unrealized Loss Position December 31, 2018 Less than 12 Months 12 Months or Longer Total (Dollars in millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Investment securities available for sale: U.S. Treasury securities $ 2,543 $ (3 ) $ 1,076 $ (14 ) $ 3,619 $ (17 ) RMBS: Agency 7,863 (260 ) 18,118 (609 ) 25,981 (869 ) Non-agency 89 (2 ) 10 0 99 (2 ) Total RMBS 7,952 (262 ) 18,128 (609 ) 26,080 (871 ) Agency CMBS 2,004 (31 ) 1,540 (47 ) 3,544 (78 ) Other securities 244 (1 ) 678 (5 ) 922 (6 ) Total investment securities available for sale in a gross unrealized loss position $ 12,743 $ (297 ) $ 21,422 $ (675 ) $ 34,165 $ (972 ) December 31, 2017 Less than 12 Months 12 Months or Longer Total (Dollars in millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Investment securities available for sale: U.S. Treasury securities $ 2,031 $ (8 ) $ 0 $ 0 $ 2,031 $ (8 ) RMBS: Agency 8,192 (67 ) 13,175 (335 ) 21,367 (402 ) Non-agency 10 0 10 (1 ) 20 (1 ) Total RMBS 8,202 (67 ) 13,185 (336 ) 21,387 (403 ) Agency CMBS 880 (8 ) 1,236 (36 ) 2,116 (44 ) Other securities 501 (2 ) 95 (1 ) 596 (3 ) Total investment securities available for sale in a gross unrealized loss position $ 11,614 $ (85 ) $ 14,516 $ (373 ) $ 26,130 $ (458 ) As of December 31, 2018 , the amortized cost of approximately 1,390 securities available for sale exceeded their fair value by $972 million, of which $675 million related to securities that had been in a loss position for 12 months or longer. As of December 31, 2018 , the carrying value of approximately 360 securities classified as held to maturity exceeded their fair value by $466 million. Maturities and Yields of Investment Securities The table below summarizes, by major security type, the contractual maturities and weighted-average yields of our investment securities as of December 31, 2018 . Because borrowers may have the right to call or prepay certain obligations, the expected maturities of our securities are likely to differ from the scheduled contractual maturities presented below. The weighted-average yield below represents the effective yield for the investment securities and is calculated based on the amortized cost of each security. Table 3.4 : Contractual Maturities and Weighted-Average Yields of Securities December 31, 2018 (Dollars in millions) Due in 1 Year or Less Due > 1 Year through 5 Years Due > 5 Years through 10 Years Due > 10 Years Total Fair value of securities available for sale: U.S. Treasury securities $ 447 $ 784 $ 4,913 $ 0 $ 6,144 RMBS (1) : Agency 6 23 724 31,150 31,903 Non-agency 0 0 0 1,742 1,742 Total RMBS 6 23 724 32,892 33,645 Agency CMBS (1) 7 1,778 1,687 1,267 4,739 Other securities 233 1,027 342 20 1,622 Total securities available for sale $ 693 $ 3,612 $ 7,666 $ 34,179 $ 46,150 Amortized cost of securities available for sale $ 695 $ 3,642 $ 7,680 $ 34,711 $ 46,728 Weighted-average yield for securities available for sale 1.46 % 2.29 % 2.49 % 2.95 % 2.80 % Carrying value of securities held to maturity: Agency RMBS (1) $ 0 $ 0 $ 51 $ 33,010 $ 33,061 Agency CMBS (1) 0 69 449 3,192 3,710 Total securities held to maturity $ 0 $ 69 $ 500 $ 36,202 $ 36,771 Fair value of securities held to maturity $ 0 $ 70 $ 487 $ 36,062 $ 36,619 Weighted-average yield for securities held to maturity 0.00 % 3.53 % 2.95 % 3.31 % 3.30 % __________ (1) As of December 31, 2018 , the weighted-average expected maturities of RMBS and CMBS are 6.6 years and 5.3 years , respectively. Other-Than-Temporary Impairment We evaluate all securities in an unrealized loss position at least quarterly, and more often as market conditions require, to assess whether the impairment is other-than-temporary. Our OTTI assessment is based on a discounted cash flow analysis which requires careful use of judgments and assumptions. A number of qualitative and quantitative criteria may be considered in our assessment, as applicable, including the size and the nature of the portfolio; historical and projected performance such as prepayment, default and loss severity for the RMBS portfolio; recent credit events specific to the issuer and/or industry to which the issuer belongs; the payment structure of the security; external credit ratings of the issuer and any failure or delay of the issuer to make scheduled interest or principal payments; the value of underlying collateral; our intent and ability to hold the security; and current and projected market and macro-economic conditions. If we intend to sell a security in an unrealized loss position or it is more likely than not that we will be required to sell the security prior to recovery of its amortized cost basis, the entire difference between the amortized cost basis of the security and its fair value is recognized in earnings. As of December 31, 2018 , we had sold all securities previously designated with the intent to sell, and did not intend to sell, nor believe that we will be required to sell, any other security in an unrealized loss position prior to the recovery of its amortized cost basis. For those securities that we do not intend to sell nor expect to be required to sell, an analysis is performed to determine if any of the impairment is due to credit-related factors or whether it is due to other factors, such as interest rates. Credit-related impairment is recognized in earnings, with the remaining unrealized non-credit-related impairment recorded in AOCI. We determine the credit component based on the difference between the security’s amortized cost basis and the present value of its expected cash flows, discounted at the security’s effective yield. Realized Gains and Losses on Securities and OTTI Recognized in Earnings The following table presents the gross realized gains and losses on the sale of securities available for sale, and the OTTI losses recognized in earnings for the years ended December 31, 2018, 2017 and 2016 . We also present the proceeds from the sale of securities available for sale for the periods presented. We did not sell any investment securities that are classified as held to maturity. Table 3.5 : Realized Gains (Losses) on Securities and OTTI Recognized in Earnings Year Ended December 31, (Dollars in millions) 2018 2017 2016 Realized gains (losses): Gross realized gains $ 13 $ 144 $ 12 Gross realized losses (21 ) (74 ) (6 ) Net realized gains (losses) (8 ) 70 6 OTTI recognized in earnings: Credit-related OTTI (1 ) (2 ) (11 ) Intent-to-sell OTTI (200 ) (3 ) (6 ) Total OTTI recognized in earnings (201 ) (5 ) (17 ) Net securities gains (losses) $ (209 ) $ 65 $ (11 ) Total proceeds from sales $ 6,399 $ 8,181 $ 4,146 The cumulative credit loss component of the OTTI losses that have been recognized in our consolidated statements of income related to the securities that we do not intend to sell was $140 million and $147 million as of December 31, 2018 and 2017 , respectively. Securities Pledged and Received We pledged securities available for sale and held to maturity totaling $16.3 billion and $8.5 billion as of December 31, 2018 and 2017 , respectively. These securities are pledged to primarily secure FHLB advances and Public Funds deposits, as well as for other purposes as required or permitted by law. We accepted pledges of securities with a fair value of $1 million as of both December 31, 2018 and 2017 , primarily related to our derivative transactions. Purchased Credit-Impaired Debt Securities The table below presents the outstanding balance and carrying value of the purchased credit-impaired debt securities as of December 31, 2018 and 2017 . Table 3.6 : Outstanding Balance and Carrying Value of Purchased Credit-Impaired Debt Securities (Dollars in millions) December 31, 2018 December 31, 2017 Outstanding balance $ 1,784 $ 2,131 Carrying value 1,537 1,843 Changes in Accretable Yield of Purchased Credit-Impaired Debt Securities The following table presents changes in the accretable yield related to the purchased credit-impaired debt securities for the years ended December 31, 2018, 2017 and 2016 . Table 3.7 : Changes in the Accretable Yield of Purchased Credit-Impaired Debt Securities Year Ended December 31, (Dollars in millions) 2018 2017 2016 Accretable yield, beginning of period $ 826 $ 1,173 $ 1,237 Accretion recognized in earnings (153 ) (182 ) (206 ) Reduction due to payoffs, disposals, transfers and other (3 ) (157 ) (2 ) Net reclassifications (to) from nonaccretable difference 28 (8 ) 144 Accretable yield, end of period $ 698 $ 826 $ 1,173 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans | NOTE 4—LOANS Loan Portfolio Composition Our loan portfolio consists of loans held for investment, including loans held in our consolidated trusts, and loans held for sale, and is divided into three portfolio segments: credit card, consumer banking and commercial banking. Credit card loans consist of domestic and international credit card loans. Consumer banking loans consist of auto and retail banking loans and in prior periods also consisted of home loans. Commercial banking loans consist of commercial and multifamily real estate, commercial and industrial, and small-ticket commercial real estate loans. We sold all of our consumer home loan portfolio and the related servicing during 2018. Credit Quality December 31, 2018 and 2017 . The delinquency aging includes all past due loans, both performing and nonperforming. Table 4.1 : Loan Portfolio Composition and Aging Analysis December 31, 2018 (Dollars in millions) Current 30-59 Days 60-89 Days > 90 Days Total Delinquent Loans PCI Loans Total Loans Credit Card: Domestic credit card $ 103,014 $ 1,270 $ 954 $ 2,111 $ 4,335 $ 1 $ 107,350 International card businesses 8,678 127 78 128 333 0 9,011 Total credit card 111,692 1,397 1,032 2,239 4,668 1 116,361 Consumer Banking: Auto 52,032 2,624 1,326 359 4,309 0 56,341 Retail banking 2,809 23 8 20 51 4 2,864 Total consumer banking 54,841 2,647 1,334 379 4,360 4 59,205 Commercial Banking: Commercial and multifamily real estate 28,737 101 20 19 140 22 28,899 Commercial and industrial 40,704 135 43 101 279 108 41,091 Total commercial lending 69,441 236 63 120 419 130 69,990 Small-ticket commercial real estate 336 2 1 4 7 0 343 Total commercial banking 69,777 238 64 124 426 130 70,333 Total loans (1) $ 236,310 $ 4,282 $ 2,430 $ 2,742 $ 9,454 $ 135 $ 245,899 % of Total loans 96.1 % 1.7 % 1.0 % 1.1 % 3.8 % 0.1 % 100.0 % December 31, 2017 (Dollars in millions) Current 30-59 Days 60-89 Days > 90 Days Total Delinquent Loans PCI Loans Total Loans Credit Card: Domestic credit card $ 101,072 $ 1,211 $ 915 $ 2,093 $ 4,219 $ 2 $ 105,293 International card businesses 9,110 144 81 134 359 0 9,469 Total credit card 110,182 1,355 996 2,227 4,578 2 114,762 Consumer Banking: Auto 50,151 2,483 1,060 297 3,840 0 53,991 Home loan 7,235 37 16 70 123 10,275 17,633 Retail banking 3,389 24 5 18 47 18 3,454 Total consumer banking 60,775 2,544 1,081 385 4,010 10,293 75,078 Commercial Banking: Commercial and multifamily real estate 26,018 41 17 49 107 25 26,150 Commercial and industrial 37,412 1 70 87 158 455 38,025 Total commercial lending 63,430 42 87 136 265 480 64,175 Small-ticket commercial real estate 393 2 1 4 7 0 400 Total commercial banking 63,823 44 88 140 272 480 64,575 Other loans 54 2 1 1 4 0 58 Total loans (1) $ 234,834 $ 3,945 $ 2,166 $ 2,753 $ 8,864 $ 10,775 $ 254,473 % of Total loans 92.3 % 1.5 % 0.9 % 1.1 % 3.5 % 4.2 % 100.0 % __________ (1) Loans, other than PCI loans, include unamortized premiums and discounts, and unamortized deferred fees and costs totaling $818 million and $773 million as of December 31, 2018 and 2017 , respectively. We pledged loan collateral of $15.8 billion and $27.3 billion to secure a portion of our FHLB borrowing capacity of $19.3 billion and $21.0 billion as of December 31, 2018 and 2017 , respectively. We also pledged loan collateral of $9.2 billion and $9.1 billion to secure our Federal Reserve Discount Window borrowing capacity of $7.6 billion and $7.4 billion as of December 31, 2018 and 2017 , respectively. In addition to loans pledged, we securitized a portion of our credit card loans, see “ Note 6—Variable Interest Entities and Securitizations December 31, 2018 and 2017 . Nonperforming loans generally include loans that have been placed on nonaccrual status. PCI loans are excluded from the table below. Table 4.2 : 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans December 31, 2018 December 31, 2017 (Dollars in millions) > 90 Days and Accruing Nonperforming Loans > 90 Days and Accruing Nonperforming Loans Credit Card: Domestic credit card $ 2,111 N/A $ 2,093 N/A International card businesses 122 $ 22 128 $ 24 Total credit card 2,233 22 2,221 24 Consumer Banking: Auto 0 449 0 376 Home loan 0 0 0 176 Retail banking 0 30 0 35 Total consumer banking 0 479 0 587 December 31, 2018 December 31, 2017 (Dollars in millions) > 90 Days and Accruing Nonperforming Loans > 90 Days and Accruing Nonperforming Loans Commercial Banking: Commercial and multifamily real estate $ 0 $ 83 $ 12 $ 38 Commercial and industrial 0 223 0 239 Total commercial lending 0 306 12 277 Small-ticket commercial real estate 0 6 0 7 Total commercial banking 0 312 12 284 Other loans 0 0 0 4 Total $ 2,233 $ 813 $ 2,233 $ 899 % of Total loans held for investment 0.91 % 0.33 % 0.88 % 0.35 % Our credit card loan portfolio is highly diversified across millions of accounts and numerous geographies without significant individual exposure. We therefore generally manage credit risk based on portfolios with common risk characteristics. The risk in our credit card loan portfolio correlates to broad economic trends, such as unemployment rates and home values, as well as consumers’ financial condition, all of which can have a material effect on credit performance. The primary indicators we assess in monitoring the credit quality and risk of our credit card portfolio are delinquency and charge-off trends, including an analysis of loan migration between delinquency categories over time. The table below displays the geographic profile of our credit card loan portfolio as of December 31, 2018 and 2017 . Table 4.3 : Credit Card Risk Profile by Geographic Region December 31, 2018 December 31, 2017 (Dollars in millions) Amount % of Total Amount % of Total Domestic credit card: California $ 11,591 10.0 % $ 11,475 10.0 % Texas 8,173 7.0 7,847 6.8 New York 7,400 6.4 7,389 6.4 Florida 7,086 6.1 6,790 5.9 Illinois 4,761 4.1 4,734 4.1 Pennsylvania 4,575 3.9 4,550 4.0 Ohio 3,967 3.4 3,929 3.4 New Jersey 3,641 3.1 3,621 3.2 Michigan 3,544 3.0 3,523 3.1 Other 52,612 45.3 51,435 44.8 Total domestic credit card 107,350 92.3 105,293 91.7 International card businesses: Canada 6,023 5.1 6,286 5.5 United Kingdom 2,988 2.6 3,183 2.8 Total international card businesses 9,011 7.7 9,469 8.3 Total credit card $ 116,361 100.0 % $ 114,762 100.0 % the years ended December 31, 2018, 2017 and 2016 . Table 4.4 : Credit Card Net Charge-Offs Year Ended December 31, 2018 2017 2016 (Dollars in millions) Amount Rate (1) Amount Rate (1) Amount Rate (1) Net charge-offs: (1) Domestic credit card $ 4,782 4.74 % $ 4,739 4.99 % $ 3,681 4.16 % International card businesses 287 3.19 315 3.69 272 3.33 Total credit card $ 5,069 4.62 $ 5,054 4.88 $ 3,953 4.09 __________ (1) Net charge-offs consist of the unpaid principal balance of loans held for investment that we determine to be uncollectible, net of recovered amounts. Net charge-off rate is calculated by dividing net charge-offs by average loans held for investment for the period for each loan category. Our consumer banking loan portfolio consists of auto and retail banking loans and in prior periods also consisted of home loans. Similar to our credit card loan portfolio, the risk in our consumer banking loan portfolio correlates to broad economic trends, such as unemployment rates, gross domestic product and home values, as well as consumers’ financial condition, all of which can have a material effect on credit performance. Delinquency, nonperforming loans and charge-off trends are key indicators we assess in monitoring the credit quality and risk of our consumer banking loan portfolio. The table below displays the geographic profile of our consumer banking loan portfolio as of December 31, 2018 and 2017 . Table 4.5 : Consumer Banking Risk Profile by Geographic Region December 31, 2018 December 31, 2017 (Dollars in millions) Amount % of Total Amount % of Total Auto: Texas $ 7,264 12.3 % $ 7,040 9.4 % California 6,352 10.7 6,099 8.1 Florida 4,623 7.8 4,486 6.0 Georgia 2,665 4.5 2,726 3.6 Ohio 2,502 4.2 2,318 3.1 Louisiana 2,174 3.7 2,236 3.0 Illinois 2,171 3.7 2,181 2.9 Pennsylvania 2,167 3.7 2,014 2.7 Other 26,423 44.6 24,891 33.1 Total auto 56,341 95.2 53,991 71.9 Retail banking: New York 837 1.4 955 1.3 Louisiana 772 1.3 953 1.3 Texas 647 1.1 717 0.9 New Jersey 201 0.3 221 0.3 Maryland 161 0.3 187 0.2 Virginia 137 0.2 154 0.2 Other 109 0.2 267 0.4 Total retail banking 2,864 4.8 3,454 4.6 Total home loan 0 0.0 17,633 23.5 Total consumer banking $ 59,205 100.0 % $ 75,078 100.0 % the years ended December 31, 2018, 2017 and 2016 , as well as nonperforming loans as of December 31, 2018 and 2017 . Table 4.6 : Consumer Banking Net Charge-Offs and Nonperforming Loans Year Ended December 31, 2018 2017 2016 (Dollars in millions) Amount Rate (1) Amount Rate (1) Amount Rate (1) Net charge-offs (recoveries): Auto $ 912 1.64 % $ 957 1.86 % $ 752 1.69 % Home loan (1 ) (0.02 ) 15 0.08 14 0.06 Retail banking 70 2.26 66 1.92 54 1.53 Total consumer banking $ 981 1.51 $ 1,038 1.39 $ 820 1.15 December 31, 2018 December 31, 2017 (Dollars in millions) Amount Rate (2) Amount Rate (2) Nonperforming loans: Auto $ 449 0.80 % $ 376 0.70 % Home loan 0 0.00 176 1.00 Retail banking 30 1.04 35 1.00 Total consumer banking $ 479 0.81 $ 587 0.78 __________ (1) Net charge-off (recovery) rate is calculated by dividing net charge-offs (recoveries) by average loans held for investment for the period for each loan category. (2) We evaluate the credit risk of commercial loans using a risk rating system. We assign internal risk ratings to loans based on relevant information about the ability of the borrowers to repay their debt. In determining the risk rating of a particular loan, some of the factors considered are the borrower’s current financial condition, historical and projected future credit performance, prospects for support from financially responsible guarantors, the estimated realizable value of any collateral and current economic trends. The scale based on our internal risk rating system is as follows: • Noncriticized: Loans that have not been designated as criticized, frequently referred to as “pass” loans. • Criticized performing: Loans in which the financial condition of the obligor is stressed, affecting earnings, cash flows or collateral values. The borrower currently has adequate capacity to meet near-term obligations; however, the stress, left unabated, may result in deterioration of the repayment prospects at some future date. • Criticized nonperforming: Loans that are not adequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Loans classified as criticized nonperforming have a well-defined weakness, or weaknesses, which jeopardize the full repayment of the debt. These loans are characterized by the distinct possibility that we will sustain a credit loss if the deficiencies are not corrected and are generally placed on nonaccrual status. We use our internal risk rating system for regulatory reporting, determining the frequency of credit exposure reviews, and evaluating and determining the allowance for loan and lease losses for commercial loans. Generally, loans that are designated as criticized performing and criticized nonperforming are reviewed quarterly by management to determine if they are appropriately classified/rated and whether any impairment exists. Noncriticized loans are also generally reviewed, at least annually, to determine the appropriate risk rating. In addition, we evaluate the risk rating during the renewal process of any loan or if a loan becomes past due. The following table presents the geographic concentration and internal risk ratings of our commercial loan portfolio as of December 31, 2018 and 2017 . Table 4.7 : Commercial Banking Risk Profile by Geographic Region and Internal Risk Rating December 31, 2018 (Dollars in millions) Commercial and Multifamily Real Estate % of Total Commercial and Industrial % of Total Small-Ticket Commercial Real Estate % of Total Total Commercial Banking % of Total Geographic concentration: (1) Northeast $ 15,562 53.8 % $ 7,573 18.4 % $ 213 62.1 % $ 23,348 33.2 % Mid-Atlantic 3,410 11.8 4,710 11.5 12 3.5 8,132 11.6 South 4,247 14.7 15,367 37.4 20 5.8 19,634 27.9 Other 5,680 19.7 13,441 32.7 98 28.6 19,219 27.3 Total $ 28,899 100.0 % $ 41,091 100.0 % $ 343 100.0 % $ 70,333 100.0 % Internal risk rating: (2) Noncriticized $ 28,239 97.7 % $ 39,468 96.1 % $ 336 98.0 % $ 68,043 96.8 % Criticized performing 555 1.9 1,292 3.1 1 0.3 1,848 2.6 Criticized nonperforming 83 0.3 223 0.5 6 1.7 312 0.4 PCI loans 22 0.1 108 0.3 0 0.0 130 0.2 Total $ 28,899 100.0 % $ 41,091 100.0 % $ 343 100.0 % $ 70,333 100.0 % December 31, 2017 (Dollars in millions) Commercial and Multifamily Real Estate % of Total (1) Commercial and Industrial % of Total Small-Ticket Commercial Real Estate % of Total Total Commercial Banking % of Total Geographic concentration: (1) Northeast $ 14,969 57.3 % $ 7,774 20.4 % $ 250 62.4 % $ 22,993 35.7 % Mid-Atlantic 2,675 10.2 3,922 10.3 15 3.8 6,612 10.2 South 3,719 14.2 14,739 38.8 22 5.5 18,480 28.6 Other 4,787 18.3 11,590 30.5 113 28.3 16,490 25.5 Total $ 26,150 100.0 % $ 38,025 100.0 % $ 400 100.0 % $ 64,575 100.0 % Internal risk rating: (2) Noncriticized $ 25,609 98.0 % $ 35,161 92.5 % $ 392 97.9 % $ 61,162 94.7 % Criticized performing 478 1.8 2,170 5.7 1 0.3 2,649 4.1 Criticized nonperforming 38 0.1 239 0.6 7 1.8 284 0.4 PCI loans 25 0.1 455 1.2 0 0.0 480 0.8 Total $ 26,150 100.0 % $ 38,025 100.0 % $ 400 100.0 % $ 64,575 100.0 % __________ (1) Geographic concentration is generally determined by the location of the borrower’s business or the location of the collateral associated with the loan. Northeast consists of CT, MA, ME, NH, NJ, NY, PA and VT. Mid-Atlantic consists of DC, DE, MD, VA and WV. South consists of AL, AR, FL, GA, KY, LA, MO, MS, NC, SC, TN and TX. (2) The following table presents information on our impaired loans as of December 31, 2018 and 2017 , and for the years ended December 31, 2018, 2017 and 2016 . Impaired loans include loans modified in troubled debt restructurings (“TDRs”), all nonperforming commercial loans and nonperforming home loans with a specific impairment. Impaired loans without an allowance generally represent loans that have been charged down to the fair value of the underlying collateral for which we believe no additional losses have been incurred, or where the fair value of the underlying collateral meets or exceeds the loan’s amortized cost. PCI loans are excluded from the following tables. Table 4.8 : Impaired Loans December 31, 2018 (Dollars in millions) With an Allowance Without an Allowance Total Recorded Investment Related Allowance Net Recorded Investment Unpaid Principal Balance Credit Card: Domestic credit card $ 666 $ 0 $ 666 $ 186 $ 480 $ 654 International card businesses 189 0 189 91 98 183 Total credit card (1) 855 0 855 277 578 837 Consumer Banking: Auto (2) 301 38 339 22 317 420 Retail banking 42 12 54 5 49 60 Total consumer banking 343 50 393 27 366 480 Commercial Banking: Commercial and multifamily real estate 92 28 120 5 115 121 Commercial and industrial 301 169 470 29 441 593 Total commercial lending 393 197 590 34 556 714 Small-ticket commercial real estate 0 6 6 0 6 9 Total commercial banking 393 203 596 34 562 723 Total $ 1,591 $ 253 $ 1,844 $ 338 $ 1,506 $ 2,040 December 31, 2017 (Dollars in millions) With an Allowance Without an Allowance Total Recorded Investment Related Allowance Net Recorded Investment Unpaid Principal Balance Credit Card: Domestic credit card $ 639 $ 0 $ 639 $ 208 $ 431 $ 625 International card businesses 173 0 173 84 89 167 Total credit card (1) 812 0 812 292 520 792 Consumer Banking: Auto (2) 363 118 481 30 451 730 Home loan 192 41 233 15 218 298 Retail banking 51 10 61 8 53 66 Total consumer banking 606 169 775 53 722 1,094 Commercial Banking: Commercial and multifamily real estate 138 2 140 13 127 143 Commercial and industrial 489 222 711 63 648 844 Total commercial lending 627 224 851 76 775 987 Small-ticket commercial real estate 7 0 7 0 7 9 Total commercial banking 634 224 858 76 782 996 Total $ 2,052 $ 393 $ 2,445 $ 421 $ 2,024 $ 2,882 Year Ended December 31, 2018 2017 2016 (Dollars in millions) Average Interest Average Interest Average Interest Credit Card: Domestic credit card $ 655 $ 63 $ 602 $ 63 $ 540 $ 58 International card businesses 184 12 154 11 133 10 Total credit card (1) 839 75 756 74 673 68 Consumer Banking: Auto (2) 397 45 495 53 501 86 Home loan 91 1 299 5 361 5 Retail banking 59 2 59 1 62 2 Total consumer banking 547 48 853 59 924 93 Commercial Banking: Commercial and multifamily real estate 93 2 134 4 111 3 Commercial and industrial 621 20 1,118 18 1,215 13 Total commercial lending 714 22 1,252 22 1,326 16 Small-ticket commercial real estate 5 0 7 0 7 0 Total commercial banking 719 22 1,259 22 1,333 16 Total $ 2,105 $ 145 $ 2,868 $ 155 $ 2,930 $ 177 __________ (1) The period-end and average recorded investments of credit card loans include finance charges and fees. (2) Total recorded TDRs were $1.6 billion and $2.2 billion as of December 31, 2018 and 2017 , respectively. TDRs classified as performing in our credit card and consumer banking loan portfolios totaled $1.2 billion and $1.3 billion as of December 31, 2018 and 2017 , respectively. TDRs classified as performing in our commercial banking loan portfolio totaled $282 million and $574 million as of December 31, 2018 and 2017 , respectively. Commitments to lend additional funds on loans modified in TDRs totaled $256 million and $241 million as of December 31, 2018 and 2017 , respectively. Loans Modified in TDRs As part of our loan modification programs to borrowers experiencing financial difficulty, we may provide multiple concessions to minimize our economic loss and improve long-term loan performance and collectability. The following tables present the major modification types, recorded investment amounts and financial effects of loans modified in TDRs during the years ended December 31, 2018 , 2017 and 2016 . Table 4.9 : Troubled Debt Restructurings Total Loans (1) Year Ended December 31, 2018 Reduced Interest Rate Term Extension Balance Reduction (Dollars in millions) % of (2) Average % of (2) Average % of (2) Gross Credit Card: Domestic credit card $ 412 100 % 15.93 % 0 % 0 0 % $ 0 International card businesses 184 100 26.96 0 0 0 0 Total credit card 596 100 19.34 0 0 0 0 Consumer Banking: Auto (3) 227 49 3.88 89 8 1 1 Home loan 6 28 1.78 83 214 0 0 Retail banking 8 16 10.92 43 12 0 0 Total consumer banking 241 48 3.93 87 13 1 1 Commercial Banking: Commercial and multifamily real estate 43 0 0.00 80 5 0 0 Commercial and industrial 170 0 1.03 54 13 0 0 Total commercial lending 213 0 1.03 60 11 0 0 Small-ticket commercial real estate 3 0 0.00 0 0 0 0 Total commercial banking 216 0 1.03 59 11 0 0 Total $ 1,053 68 16.84 32 12 0 $ 1 Total Loans (1) Year Ended December 31, 2017 Reduced Interest Rate Term Extension Balance Reduction (Dollars in millions) % of (2) Average % of (2) Average % of (2) Gross Credit Card: Domestic credit card $ 406 100 % 14.50 % 0 % 0 0 % $ 0 International card businesses 169 100 26.51 0 0 0 0 Total credit card 575 100 18.02 0 0 0 0 Consumer Banking: Auto (3) 324 44 3.82 95 6 2 7 Home loan 19 48 2.77 78 233 2 0 Retail banking 13 22 5.77 73 10 0 0 Total consumer banking 356 44 3.79 93 16 2 7 Commercial Banking: Commercial and multifamily real estate 29 7 0.02 26 5 0 0 Commercial and industrial 557 19 0.80 59 17 0 0 Total commercial lending 586 18 0.79 57 16 0 0 Small-ticket commercial real estate 3 0 0.00 4 0 0 0 Total commercial banking 589 18 0.79 57 16 0 0 Total $ 1,520 55 13.19 44 16 0 $ 7 Total Loans (1) Year Ended December 31, 2016 Reduced Interest Rate Term Extension Balance Reduction (Dollars in millions) % of (2) Average % of (2) Average % of (2) Gross Credit Card: Domestic credit card $ 312 100 % 13.19 % 0 % 0 0 % $ 0 International card businesses 138 100 25.87 0 0 0 0 Total credit card 450 100 17.09 0 0 0 0 Consumer Banking: Auto (3) 356 44 3.91 74 7 25 78 Home loan 48 64 2.25 87 243 2 0 Retail banking 18 23 7.89 68 10 9 1 Total consumer banking 422 46 3.73 75 38 22 79 Commercial Banking: Commercial and multifamily real estate 38 0 0.00 67 6 32 3 Commercial and industrial 743 5 0.09 57 20 7 26 Total commercial lending 781 4 0.09 57 19 8 29 Small-ticket commercial real estate 1 0 0.00 0 0 0 0 Total commercial banking 782 4 0.09 57 19 8 29 Total $ 1,654 41 12.42 46 27 9 $ 108 __________ (1) Represents the recorded investment of total loans modified in TDRs at the end of the quarter in which they were modified. As not every modification type is included in the table above, the total percentage of TDR activity may not add up to 100%. Some loans may receive more than one type of concession as part of the modification. (2) Due to multiple concessions granted to some troubled borrowers, percentages may total more than 100% for certain loan types. (3) Includes certain TDRs that are recorded as other assets on our consolidated balance sheets. Subsequent Defaults of Completed TDR Modifications The following table presents the type, number and recorded investment of loans modified in TDRs that experienced a default during the period and had completed a modification event in the twelve months prior to the default. A default occurs if the loan is either 90 days or more delinquent, has been charged off as of the end of the period presented or has been reclassified from accrual to nonaccrual status. Table 4.10 : TDR — Subsequent Defaults Year Ended December 31, 2018 2017 2016 (Dollars in millions) Number of Amount Number of Amount Number of Amount Credit Card: Domestic credit card 61,070 $ 126 55,121 $ 111 42,250 $ 73 International card businesses 61,014 106 51,641 93 40,498 82 Total credit card 122,084 232 106,762 204 82,748 155 Consumer Banking: Auto 6,980 79 9,446 109 8,587 96 Home loan 3 1 28 7 56 7 Retail banking 26 2 41 4 48 9 Total consumer banking 7,009 82 9,515 120 8,691 112 Commercial Banking: Commercial and multifamily real estate 1 3 0 0 1 1 Commercial and industrial 26 120 244 269 150 281 Total commercial lending 27 123 244 269 151 282 Small-ticket commercial real estate 0 0 2 1 7 1 Total commercial banking 27 123 246 270 158 283 Total 129,120 $ 437 116,523 $ 594 91,597 $ 550 Finance Charge and Fee Reserve We continue to accrue finance charges and fees on credit card loans until the account is charged off. Our methodology for estimating the uncollectible portion of billed finance charges and fees is consistent with the methodology we use to estimate the allowance for incurred principal losses on our credit card loan receivables. Total net revenue was reduced by $1.3 billion , $1.4 billion and $1.1 billion in 2018 , 2017 and 2016 , respectively, for the estimated uncollectible amount of billed finance charges and fees and related losses. The finance charge and fee reserve, which is recorded as a contra asset on our consolidated balance sheets, totaled $468 million and $491 million as of December 31, 2018 and 2017 , respectively. Loans Held for Sale Our total loans held for sale was $1.2 billion and $971 million as of December 31, 2018 and 2017 , respectively. We originated for sale $8.7 billion of commercial multifamily real estate loans in 2018 , $8.4 billion and $7.6 billion of conforming residential mortgage loans and commercial multifamily real estate loans in 2017 and 2016 , respectively. We retained servicing on approximately 100% of multifamily real estate loans. In 2018, we sold |
Allowance for Loan and Lease Lo
Allowance for Loan and Lease Losses | 12 Months Ended |
Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance for Loans and Lease Losses | NOTE 5—ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED LENDING COMMITMENTS Our allowance for loan and lease losses represents management’s best estimate of incurred loan and lease losses inherent in our loans held for investment portfolio as of each balance sheet date. In addition to the allowance for loan and lease losses, we also estimate probable losses related to unfunded lending commitments, such as letters of credit, financial guarantees and binding unfunded loan commitments. The provision for losses on unfunded lending commitments is included in the provision for credit losses in our consolidated statements of income and the related reserve for unfunded lending commitments is included in other liabilities on our consolidated balance sheets. See “ Note 1—Summary of Significant Accounting Policies ” for further discussion of our methodology and policy for determining the allowance for loan and lease losses for each of our loan portfolio segments, as well as information on our reserve for unfunded lending commitments. Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity The table below summarizes changes in the allowance for loan and lease losses and reserve for unfunded lending commitments by portfolio segment for the years ended December 31, 2018, 2017 and 2016 . Table 5.1 : Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity (Dollars in millions) Credit Card Consumer Commercial Banking Other (1)(2) Total Allowance for loan and lease losses: Balance as of December 31, 2015 $ 3,654 $ 868 $ 604 $ 4 $ 5,130 Charge-offs (5,019 ) (1,226 ) (307 ) (3 ) (6,555 ) Recoveries (3) 1,066 406 15 6 1,493 Net charge-offs (3,953 ) (820 ) (292 ) 3 (5,062 ) Provision (benefit) for loan and lease losses 4,926 1,055 515 (5 ) 6,491 Allowance build (release) for loan and lease losses 973 235 223 (2 ) 1,429 Other changes (4) (21 ) (1 ) (34 ) 0 (56 ) Balance as of December 31, 2016 4,606 1,102 793 2 6,503 Reserve for unfunded lending commitments: Balance as of December 31, 2015 0 7 161 0 168 Benefit for losses on unfunded lending commitments 0 0 (32 ) 0 (32 ) Balance as of December 31, 2016 0 7 129 0 136 Combined allowance and reserve as of December 31, 2016 $ 4,606 $ 1,109 $ 922 $ 2 $ 6,639 Allowance for loan and lease losses: Balance as of December 31, 2016 $ 4,606 $ 1,102 $ 793 $ 2 $ 6,503 Charge-offs (6,321 ) (1,677 ) (481 ) (34 ) (8,513 ) Recoveries (3) 1,267 639 16 29 1,951 Net charge-offs (5,054 ) (1,038 ) (465 ) (5 ) (6,562 ) Provision for loan and lease losses 6,066 1,180 313 4 7,563 Allowance build (release) for loan and lease losses 1,012 142 (152 ) (1 ) 1,001 Other changes (4) 30 (2 ) (30 ) 0 (2 ) Balance as of December 31, 2017 5,648 1,242 611 1 7,502 Reserve for unfunded lending commitments: Balance as of December 31, 2016 0 7 129 0 136 Benefit for losses on unfunded lending commitments 0 0 (12 ) 0 (12 ) Balance as of December 31, 2017 0 7 117 0 124 Combined allowance and reserve as of December 31, 2017 $ 5,648 $ 1,249 $ 728 $ 1 $ 7,626 (Dollars in millions) Credit Card Consumer Commercial Banking Other (1)(2) Total Allowance for loan and lease losses: Balance as of December 31, 2017 $ 5,648 $ 1,242 $ 611 $ 1 $ 7,502 Charge-offs (6,657 ) (1,832 ) (119 ) (7 ) (8,615 ) Recoveries (3) 1,588 851 63 1 2,503 Net charge-offs (5,069 ) (981 ) (56 ) (6 ) (6,112 ) Provision (benefit) for loan and lease losses 4,984 841 82 (49 ) 5,858 Allowance build (release) for loan and lease losses (85 ) (140 ) 26 (55 ) (254 ) Other changes (1)(4) (28 ) (54 ) 0 54 (28 ) Balance as of December 31, 2018 5,535 1,048 637 0 7,220 Reserve for unfunded lending commitments: Balance as of December 31, 2017 0 7 117 0 124 Provision (benefit) for losses on unfunded lending commitments 0 (3 ) 1 0 (2 ) Balance as of December 31, 2018 0 4 118 0 122 Combined allowance and reserve as of December 31, 2018 $ 5,535 $ 1,052 $ 755 $ 0 $ 7,342 __________ (1) In 2018, we sold all of our consumer home loan portfolio and recognized a gain of approximately $499 million in the Other category, including a benefit for credit losses of $46 million . (2) Includes the legacy loan portfolio of our discontinued GreenPoint mortgage operations. (3) The amount and timing of recoveries is impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications, repossession of collateral, the periodic sale of charged-off loans as well as additional strategies, such as litigation. (4) Represents foreign currency translation adjustments and the net impact of loan transfers and sales where applicable. Components of Allowance for Loan and Lease Losses by Impairment Methodology The table below presents the components of our allowance for loan and lease losses by portfolio segment and impairment methodology as of December 31, 2018 and 2017 . See “ Note 1—Summary of Significant Accounting Policies ” for further discussion of allowance methodologies for each of the loan portfolios. Table 5.2 : Components of Allowance for Loan and Lease Losses by Impairment Methodology December 31, 2018 (Dollars in millions) Credit Card Consumer Banking Commercial Banking Total Allowance for loan and lease losses: Collectively evaluated $ 5,258 $ 1,021 $ 603 $ 6,882 Asset-specific 277 27 34 338 Total allowance for loan and lease losses $ 5,535 $ 1,048 $ 637 $ 7,220 Loans held for investment: Collectively evaluated $ 115,505 $ 58,808 $ 69,607 $ 243,920 Asset-specific 855 393 596 1,844 PCI loans 1 4 130 135 Total loans held for investment $ 116,361 $ 59,205 $ 70,333 $ 245,899 Allowance coverage ratio (1) 4.76 % 1.77 % 0.91 % 2.94 % December 31, 2017 (Dollars in millions) Credit Consumer Banking Commercial Banking Other Total Allowance for loan and lease losses: Collectively evaluated $ 5,356 $ 1,158 $ 529 $ 1 $ 7,044 Asset-specific 292 53 76 0 421 PCI loans 0 31 6 0 37 Total allowance for loan and lease losses $ 5,648 $ 1,242 $ 611 $ 1 $ 7,502 Loans held for investment: Collectively evaluated $ 113,948 $ 64,080 $ 63,237 $ 58 $ 241,323 Asset-specific 812 705 858 0 2,375 PCI loans 2 10,293 480 0 10,775 Total loans held for investment $ 114,762 $ 75,078 $ 64,575 $ 58 $ 254,473 Allowance coverage ratio (1) 4.92 % 1.65 % 0.95 % 1.72 % 2.95 % __________ (1) Allowance coverage ratio is calculated by dividing the period-end allowance for loan and lease losses by period-end loans held for investment within the specified loan category. We have certain credit card partnership agreements that are presented within our consolidated financial statements on a net basis, in which our partner agrees to share a portion of the credit losses on the underlying loan portfolio. The expected reimbursements from these partners, which are netted against our allowance for loan and lease losses, result in reductions to net charge-offs and provision for credit losses. See “ Note 1—Summary of Significant Accounting Policies ” for further discussion of our credit card partnership agreements. The table below summarizes the changes in the estimated reimbursements from these partners for the years ended December 31, 2018, 2017 and 2016 . Table 5.3 : Summary of Loss Sharing Arrangements Impacts (Dollars in millions) Estimated Reimbursements from Loss Sharing Partners Balance as of December 31, 2015 $ 194 Amounts due from partners which reduced net charge-offs (229 ) Amounts estimated to be charged to partners which reduced provision for credit losses 263 Balance as of December 31, 2016 228 Amounts due from partners which reduced net charge-offs (285 ) Amounts estimated to be charged to partners which reduced provision for credit losses 437 Balance as of December 31, 2017 380 Amounts due from partners which reduced net charge-offs (382 ) Amounts estimated to be charged to partners which reduced provision for credit losses 381 Balance as of December 31, 2018 $ 379 |
Variable Interest Entities and
Variable Interest Entities and Securitizations | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities and Securitization [Abstract] | |
Variable Interest Entities and Securitizations | NOTE 6—VARIABLE INTEREST ENTITIES AND SECURITIZATIONS In the normal course of business, we enter into various types of transactions with entities that are considered to be VIEs. Our primary involvement with VIEs has been related to our securitization transactions in which we transferred assets to securitization trusts. We have primarily securitized credit card loans, which have provided a source of funding for us and enabled us to transfer a certain portion of the economic risk of the loans or related debt securities to third parties. The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and is required to consolidate the VIE. The majority of the VIEs in which we are involved have been consolidated in our financial statements. Summary of Consolidated and Unconsolidated VIEs The assets of our consolidated VIEs primarily consist of cash, credit card loan receivables and the related allowance for loan and lease losses, which we report on our consolidated balance sheets under restricted cash for securitization investors, loans held in consolidated trusts and allowance for loan and lease losses, respectively. The assets of a particular VIE are the primary source of funds to settle its obligations. Creditors of these VIEs typically do not have recourse to our general credit. Liabilities primarily consist of debt securities issued by the VIEs, which we report under securitized debt obligations on our consolidated balance sheets. For unconsolidated VIEs, we present the carrying amount of assets and liabilities reflected on our consolidated balance sheets and our maximum exposure to loss. Our maximum exposure to loss is estimated based on the unlikely event that all of the assets in the VIEs become worthless and we are required to meet our maximum remaining funding obligations. The tables below present a summary of VIEs in which we had continuing involvement or held a variable interest, aggregated based on VIEs with similar characteristics as of December 31, 2018 and 2017 . We separately present information for consolidated and unconsolidated VIEs. Table 6.1 : Carrying Amount of Consolidated and Unconsolidated VIEs December 31, 2018 Consolidated Unconsolidated (Dollars in millions) Carrying Amount of Assets Carrying Amount of Liabilities Carrying Amount of Assets Carrying Amount of Liabilities Maximum Exposure to Loss Securitization-Related VIEs: Credit card loan securitizations (1) $ 33,574 $ 18,885 $ 0 $ 0 $ 0 Home loan securitizations 0 0 211 74 554 Total securitization-related VIEs 33,574 18,885 211 74 554 Other VIEs: (2) Affordable housing entities 243 17 4,238 1,303 4,238 Entities that provide capital to low-income and rural communities 1,739 117 0 0 0 Other 0 0 353 0 353 Total other VIEs 1,982 134 4,591 1,303 4,591 Total VIEs $ 35,556 $ 19,019 $ 4,802 $ 1,377 $ 5,145 December 31, 2017 Consolidated Unconsolidated (Dollars in millions) Carrying Amount of Assets Carrying Amount of Liabilities Carrying Amount of Assets Carrying Amount of Liabilities Maximum Exposure to Loss Securitization-Related VIEs: Credit card loan securitizations (1) $ 34,976 $ 20,651 $ 0 $ 0 $ 0 Home loan securitizations 0 0 455 390 1,057 Total securitization-related VIEs 34,976 20,651 455 390 1,057 Other VIEs: (2) Affordable housing entities 226 10 4,175 1,284 4,175 Entities that provide capital to low-income and rural communities 1,498 129 0 0 0 Other 0 0 318 0 318 Total other VIEs 1,724 139 4,493 1,284 4,493 Total VIEs $ 36,700 $ 20,790 $ 4,948 $ 1,674 $ 5,550 __________ (1) Represents the carrying amount of assets and liabilities owned by the VIE, which includes the seller’s interest and repurchased notes held by other related parties. (2) In certain investment structures, we consolidate a VIE which in turn holds as its primary asset an investment in an unconsolidated VIE. In these instances, we disclose the carrying amount of assets and liabilities on our consolidated balance sheets as unconsolidated VIEs to avoid duplicating our exposure, as the unconsolidated VIEs are generally the operating entities generating the exposure. The carrying amount of assets and liabilities included in the unconsolidated VIE columns above related to these investment structures were $2.3 billion of assets and $811 million of liabilities as of December 31, 2018 and $2.2 billion of assets and $901 million of liabilities as of December 31, 2017 . Securitization-Related VIEs In a securitization transaction, assets are transferred to a trust, which generally meets the definition of a VIE. Our primary securitization activity is in the form of credit card securitizations, conducted through securitization trusts which we consolidate. Our continuing involvement in these securitization transactions mainly consists of acting as the primary servicer and holding certain retained interests. We transfer multifamily commercial loans that we originate to the government-sponsored enterprises (“GSEs”) and retain the right to service the transferred loans pursuant to the guidelines set forth by the GSEs. Subsequent to such transfers, these loans are commonly securitized into CMBS by the GSEs. We also hold RMBS and CMBS in our investment securities portfolio, which represent an interest in the respective securitization trusts employed in the transactions under which those securities were issued. We do not consolidate the securitization trusts employed in these transactions as we do not have the power to direct the activities that most significantly impact the economic performance of these securitization trusts. Our maximum exposure to loss as a result of our involvement with these VIEs is the carrying value of MSRs and investment securities on our consolidated balance sheets. See “ Note 7—Goodwill and Intangible Assets ” for information related to our MSRs associated with these multifamily commercial loan securitizations and “ Note 3—Investment Securities ” for more information on the securities held in our investment securities portfolio. We exclude these VIEs from the tables within this note because we do not consider our continuing involvement with these VIEs to be significant as we either invest in securities issued by the VIE and were not involved in the design of the VIE or no transfers have occurred between the VIE and us. In addition, where we have certain lending arrangements in the normal course of business with entities that could be VIEs, we have also excluded these VIEs from the tables presented in this note. See “ Note 4—Loans ” for additional information regarding our lending arrangements in the normal course of business. The table below presents our continuing involvement in certain securitization-related VIEs as of December 31, 2018 and 2017 . Table 6.2 : Continuing Involvement in Securitization-Related VIEs (Dollars in millions) Credit Card Mortgages December 31, 2018: Securities held by third-party investors $ 18,307 $ 1,276 Receivables in the trust 34,197 1,305 Cash balance of spread or reserve accounts 0 116 Retained interests Yes Yes Servicing retained Yes Yes (1) December 31, 2017: Securities held by third-party investors $ 20,010 $ 1,774 Receivables in the trust 35,667 1,812 Cash balance of spread or reserve accounts 0 124 Retained interests Yes Yes Servicing retained Yes Yes (1) __________ (1) We retain servicing on a portion of our remaining mortgage loans in mortgage securitizations. Credit Card Securitizations We securitize a portion of our credit card loans which provides a source of funding for us. The credit card securitizations involve the transfer of credit card receivables from our balance sheet to securitization trusts. These trusts then issue debt securities collateralized by the transferred receivables to third-party investors. We hold certain retained interests in our credit card securitizations and continue to service the receivables in these trusts. We consolidate these trusts because we are deemed to be the primary beneficiary as we have the power to direct the activities that most significantly impact the economic performance of the trusts, and the right to receive benefits or the obligation to absorb losses that could potentially be significant to the trusts. Mortgage Securitizations We had previously securitized mortgage loans by transferring these loans to securitization trusts that had issued mortgage-backed securities to investors. These mortgage trusts consist of option-adjustable rate mortgage (“option-ARM”) securitizations and securitizations from our discontinued operations which include the mortgage origination operations of our wholesale mortgage banking unit, GreenPoint Mortgage Funding, Inc. (“GreenPoint”) and the manufactured housing operations of GreenPoint Credit, LLC, a subsidiary of GreenPoint (collectively “GreenPoint securitizations”). We continue to service a portion of the remaining mortgage loans in the option-ARM securitizations and also retain rights to certain future cash flows arising from these securitizations. We also retain servicing on a portion of the remaining mortgage loans in the GreenPoint securitizations and have the right to receive any funds remaining in the pre-funded letters of credit after the securities are released. We do not consolidate the mortgage securitizations because we do not have the right to receive the benefits nor the obligation to absorb losses that could potentially be significant to the trusts or we do not have the power to direct the activities that most significantly impact the economic performance of the trusts. Other VIEs Affordable Housing Entities As part of our community reinvestment initiatives, we invest in private investment funds that make equity investments in multifamily affordable housing properties. We receive affordable housing tax credits for these investments. The activities of these entities are financed with a combination of invested equity capital and debt. We account for certain of our investments in qualified affordable housing projects using the proportional amortization method if certain criteria are met. The proportional amortization method amortizes the cost of the investment over the period in which the investor expects to receive tax credits and other tax benefits, and the resulting amortization is recognized as a component of income tax expense attributable to continuing operations. For the years ended December 31, 2018 and 2017 , we recognized amortization of $477 million and $582 million , respectively, and tax credits of $529 million and $504 million , respectively, associated with these investments within income tax provision. The carrying value of our equity investments in these qualified affordable housing projects was $4.2 billion and $3.9 billion as of December 31, 2018 and 2017 , respectively. We are periodically required to provide additional financial or other support during the period of the investments. Our liability for these unfunded commitments was $1.5 billion and $1.4 billion as of December 31, 2018 and 2017 , respectively and is largely expected to be paid from 2019 to 2021 . For those investment funds considered to be VIEs, we are not required to consolidate them if we do not have the power to direct the activities that most significantly impact the economic performance of those entities. We record our interests in these unconsolidated VIEs in loans held for investment, other assets and other liabilities on our consolidated balance sheets. Our maximum exposure to these entities is limited to our variable interests in the entities which consisted of assets of approximately $4.2 billion as of both December 31, 2018 and 2017 . The creditors of the VIEs have no recourse to our general credit and we do not provide additional financial or other support other than during the period that we are contractually required to provide it. The total assets of the unconsolidated VIE investment funds were approximately $10.8 billion and $11.5 billion as of December 31, 2018 and 2017 , respectively. Entities that Provide Capital to Low-Income and Rural Communities We hold variable interests in entities (“Investor Entities”) that invest in community development entities (“CDEs”) that provide debt financing to businesses and non-profit entities in low-income and rural communities. Variable interests in the CDEs held by the consolidated Investor Entities are also our variable interests. The activities of the Investor Entities are financed with a combination of invested equity capital and debt. The activities of the CDEs are financed solely with invested equity capital. We receive federal and state tax credits for these investments. We consolidate the VIEs in which we have the power to direct the activities that most significantly impact the VIE’s economic performance and where we have the obligation to absorb losses or right to receive benefits that could be potentially significant to the VIE. We have also consolidated other investments and CDEs that are not considered to be VIEs, but where we hold a controlling financial interest. The assets of the VIEs that we consolidated, which totaled approximately $1.7 billion and $1.5 billion as of December 31, 2018 and 2017 , respectively, are reflected on our consolidated balance sheets in cash, loans held for investment, and other assets. The liabilities are reflected in other liabilities. The creditors of the VIEs have no recourse to our general credit. We have not provided additional financial or other support other than during the period that we are contractually required to provide it. Other Other VIEs include variable interests that we hold in companies that promote renewable energy sources and other equity method investments. We were not required to consolidate these entities because we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to these entities is limited to the investment on our consolidated balance sheets of $353 million and $318 million as of December 31, 2018 and 2017 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | NOTE 7—GOODWILL AND INTANGIBLE ASSETS The table below presents our goodwill, intangible assets and MSRs as of December 31, 2018 and 2017 . Goodwill is presented separately, while intangible assets and MSRs are included in other assets on our consolidated balance sheets. Table 7.1 : Components of Goodwill, Intangible Assets and MSRs December 31, 2018 (Dollars in millions) Carrying Accumulated Amortization Net Remaining Goodwill $ 14,544 N/A $ 14,544 N/A Intangible assets: Purchased credit card relationship (“PCCR”) intangibles 2,102 $ (1,952 ) 150 3.7 years Core deposit intangibles 1,149 (1,148 ) 1 0.2 years Other (1) 271 (168 ) 103 7.1 years Total intangible assets 3,522 (3,268 ) 254 5.0 years Total goodwill and intangible assets $ 18,066 $ (3,268 ) $ 14,798 Commercial MSRs (2) $ 459 $ (185 ) $ 274 December 31, 2017 (Dollars in millions) Carrying Accumulated Amortization Net Remaining Goodwill $ 14,533 N/A $ 14,533 N/A Intangible assets: PCCR intangibles 2,105 $ (1,844 ) 261 3.6 years Core deposit intangibles 1,149 (1,133 ) 16 1.0 years Other (1) 300 (156 ) 144 7.8 years Total intangible assets 3,554 (3,133 ) 421 4.9 years Total goodwill and intangible assets $ 18,087 $ (3,133 ) $ 14,954 MSRs: Consumer MSRs (3) $ 92 N/A $ 92 Commercial MSRs (2) 355 $ (126 ) 229 Total MSRs $ 447 $ (126 ) $ 321 __________ (1) Primarily consists of intangibles for sponsorship relationships, partnership and other contract intangibles and trade name intangibles. (2) Commercial MSRs are accounted for under the amortization method on our consolidated balance sheets. We recorded $59 million and $44 million of amortization expense for the years ended December 31, 2018 and 2017 , respectively. (3) Consumer MSRs were carried at fair value on our consolidated balance sheets as of December 31, 2017. In the first quarter of 2018, we sold the substantial majority of these MSRs. Goodwill The following table presents changes in the carrying amount of goodwill by each of our business segments as of December 31, 2018 and 2017 . We did not recognize any goodwill impairment during 2018 , 2017 or 2016 . Table 7.2 : Goodwill by Business Segments (Dollars in millions) Credit Card Consumer Banking Commercial Banking Total Balance as of December 31, 2015 $ 4,997 $ 4,600 $ 4,883 $ 14,480 Acquisitions 36 0 18 54 Other adjustments (1) (15 ) 0 0 (15 ) Balance as of December 31, 2016 5,018 4,600 4,901 14,519 Acquisitions 6 0 0 6 Other adjustments (1) 8 0 0 8 Balance as of December 31, 2017 5,032 4,600 4,901 14,533 Acquisitions 33 0 0 33 Reductions in goodwill related to divestitures 0 0 (17 ) (17 ) Other adjustments (1) (5 ) 0 0 (5 ) Balance as of December 31, 2018 $ 5,060 $ 4,600 $ 4,884 $ 14,544 __________ (1) Represents foreign currency translation adjustments. The goodwill impairment test, performed as of October 1 of each year, is a two-step test. The first step identifies whether there is potential impairment by comparing the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit is less than its carrying amount, the second step of the impairment test is required to measure the amount of any potential impairment loss. The fair value of reporting units is calculated using a discounted cash flow methodology, a form of the income approach. The calculation uses projected cash flows based on each reporting unit’s internal forecast and uses the perpetuity growth method to calculate terminal values. These cash flows and terminal values are then discounted using appropriate discount rates, which are largely based on our external cost of equity with adjustments for risk inherent in each reporting unit. Cash flows are adjusted, as necessary, in order to maintain each reporting unit’s equity capital requirements. Our discounted cash flow analysis requires management to make judgments about future loan and deposit growth, revenue growth, credit losses, and capital rates. The key inputs into the discounted cash flow analysis were consistent with market data, where available, indicating that assumptions used were within a reasonable range of observable market data. Intangible Assets In connection with our acquisitions, we recorded intangible assets that include PCCR intangibles, core deposit intangibles, brokerage relationship intangibles, partnership contract intangibles, other contract intangibles and trademark intangibles. At acquisition, the PCCR intangibles reflect the estimated value of existing credit card holder relationships and the core deposit intangibles reflect the estimated value of deposit relationships. There were no meaningful impairments of intangible assets in 2018 and 2017. We recorded an impairment charge of $17 million in 2016 related primarily to our brokerage relationship intangibles. Intangible assets are typically amortized over their respective estimated useful lives on either an accelerated or straight-line basis. The following table summarizes the actual amortization expense recorded for the years ended December 31, 2018 , 2017 and 2016 and the estimated future amortization expense for intangible assets as of December 31, 2018 : Table 7.3: Amortization Expense (Dollars in millions) Amortization Actual for the year ended December 31, 2016 $ 386 2017 245 2018 174 Estimated future amounts for the year ended December 31, 2019 109 2020 58 2021 28 2022 20 2023 14 Thereafter 17 Total estimated future amounts $ 246 |
Premises, Equipment & Lease Com
Premises, Equipment & Lease Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment and Lease Commitments [Abstract] | |
Premises, Equipment & Lease Commitments | NOTE 8—PREMISES, EQUIPMENT AND LEASE COMMITMENTS Premises and Equipment The following table presents our premises and equipment as of December 31, 2018 and 2017 . Table 8.1 : Components of Premises and Equipment December 31, (Dollars in millions) 2018 2017 Land $ 386 $ 406 Buildings and improvements 3,994 3,302 Furniture and equipment 2,018 1,901 Computer software 1,847 1,753 In progress 482 902 Total premises and equipment, gross 8,727 8,264 Less: Accumulated depreciation and amortization (4,536 ) (4,231 ) Total premises and equipment, net $ 4,191 $ 4,033 Depreciation and amortization expense was $728 million , $662 million and $710 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Lease Commitments Certain premises and equipment are leased under agreements that expire at various dates through 2071, without taking into consideration available renewal options. Many of these leases provide for payment by us, as the lessee, of variable costs including property taxes, insurance premiums, cost of maintenance and other costs. Total rent expense was $322 million , $307 million and $330 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Future minimum rental commitments as of December 31, 2018 , for all non-cancellable operating leases with initial or remaining terms of one year or more are as follows: Table 8.2 : Lease Commitments (Dollars in millions) Estimated Future 2019 $ 352 2020 309 2021 279 2022 249 2023 213 Thereafter 949 Total $ 2,351 The table above does not include minimum sublease rental income of $183 million |
Deposits and Borrowings
Deposits and Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Deposits and Borrowings [Abstract] | |
Deposits and Borrowings | NOTE 9—DEPOSITS AND BORROWINGS Our deposits, which are our largest source of funding for our assets and operations, consist of non-interest-bearing and interest-bearing deposits, which include checking accounts, money market deposit accounts, negotiable order of withdrawals, savings deposits and time deposits. We use a variety of other funding sources including short-term borrowings, senior and subordinated notes, securitized debt obligations and other borrowings. In addition, we utilize FHLB advances, which are secured by certain portions of our loan and investment securities portfolios. Securitized debt obligations are presented separately on our consolidated balance sheets, as they represent obligations of consolidated securitization trusts, while federal funds purchased and securities loaned or sold under agreements to repurchase, senior and subordinated notes and other borrowings, including FHLB advances, are included in other debt on our consolidated balance sheets. The following tables summarize the components of our deposits, short-term borrowings and long-term debt as of December 31, 2018 and 2017 . Our total short-term borrowings consist of federal funds purchased, securities loaned or sold under agreements to repurchase, and short-term FHLB advances. Our long-term debt consists of borrowings with an original contractual maturity of greater than one year. The carrying value presented below for these borrowings includes unamortized debt premiums and discounts, net of debt issuance costs and fair value hedge accounting adjustments. Table 9.1 : C omponents of Deposits, Short-Term Borrowings and Long-Term Debt (Dollars in millions) December 31, December 31, Deposits: Non-interest-bearing deposits $ 23,483 $ 26,404 Interest-bearing deposits (1) 226,281 217,298 Total deposits $ 249,764 $ 243,702 Short-term borrowings: Federal funds purchased and securities loaned or sold under agreements to repurchase $ 352 $ 576 FHLB advances 9,050 0 Total short-term borrowings $ 9,402 $ 576 December 31, 2018 December 31, (Dollars in millions) Maturity Dates Stated Interest Rates Weighted- Average Interest Rate Carrying Value Carrying Value Long-term debt: Securitized debt obligations 2019-2025 1.33 - 3.31% 2.31 % $ 18,307 $ 20,010 Senior and subordinated notes: Fixed unsecured senior debt 2019-2028 1.85 - 4.75 3.03 23,290 22,776 Floating unsecured senior debt 2019-2023 2.97 - 3.72 3.39 2,993 3,446 Total unsecured senior debt 3.08 26,283 26,222 Fixed unsecured subordinated debt 2019-2026 3.38 - 8.80 4.09 4,543 4,533 Total senior and subordinated notes 30,826 30,755 Other long-term borrowings: FHLB advances 2020-2023 2.48 - 5.36 2.49 251 8,609 Other borrowings 2019-2035 1.00 - 13.63 6.16 119 331 Total other long-term borrowings 370 8,940 Total long-term debt $ 49,503 $ 59,705 Total short-term borrowings and long-term debt $ 58,905 $ 60,281 __________ (1) Includes $4.0 billion and $1.3 billion of time deposits in denominations in excess of the $250,000 federal insurance limit as of December 31, 2018 and 2017 , respectively. The following table presents the carrying value of our interest-bearing time deposits, securitized debt obligations and other debt by remaining contractual maturity as of December 31, 2018 . Table 9.2 : Maturity Profile of Borrowings (Dollars in millions) 2019 2020 2021 2022 2023 Thereafter Total Interest-bearing time deposits $ 22,548 $ 6,524 $ 4,065 $ 4,036 $ 1,176 $ 122 $ 38,471 Securitized debt obligations 6,845 5,266 2,298 2,531 714 653 18,307 Federal funds purchased and securities loaned or sold under agreements to repurchase 352 0 0 0 0 0 352 Senior and subordinated notes 5,314 4,350 4,920 2,504 4,163 9,575 30,826 Other borrowings 9,060 310 6 6 5 33 9,420 Total $ 44,119 $ 16,450 $ 11,289 $ 9,077 $ 6,058 $ 10,383 $ 97,376 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | NOTE 10—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Use of Derivatives and Accounting for Derivatives We regularly enter into derivative transactions to support our overall risk management activities. Our primary market risks stem from the impact on our earnings and economic value of equity due to changes in interest rates and, to a lesser extent, changes in foreign exchange rates. We manage our interest rate sensitivity by employing several techniques, which include changing the duration and re-pricing characteristics of various assets and liabilities by using interest rate derivatives. We also use foreign currency derivatives to limit our earnings and capital exposures to foreign exchange risk by hedging exposures denominated in foreign currencies. In addition to interest rate and foreign currency derivatives, we may also use a variety of other derivative instruments, including caps, floors, options, futures and forward contracts, to manage our interest rate and foreign exchange risks. We designate these risk management derivatives as either qualifying accounting hedges or free-standing derivatives. Qualifying accounting hedges are further designated as fair value hedges, cash flow hedges or net investment hedges, and free-standing derivatives are economic hedges that do not qualify for hedge accounting. We also offer various interest rate, commodity and foreign currency derivatives as accommodation to our customers within our Commercial Banking business. We enter into these derivatives with our customers primarily to help them manage interest rate risks, hedge their energy and other commodities exposures, and manage foreign currency fluctuations. We then enter into offsetting derivative contracts with counterparties to economically hedge the majority of our subsequent exposures. See below for additional information on our use of derivatives and how we account for them: • Fair Value Hedges: We designate derivatives as fair value hedges when they are used to manage our exposure to changes in the fair value of certain financial assets and liabilities, which fluctuate in value as a result of movements in interest rates. Changes in the fair value of derivatives designated as fair value hedges are presented in the same line item on our consolidated statements of income as the earnings effect of the hedged items. Our fair value hedges consist of interest rate swaps that are intended to modify our exposure to interest rate risk on various fixed-rate financial assets and liabilities. • Cash Flow Hedges: We designate derivatives as cash flow hedges when they are used to manage our exposure to variability in cash flows related to forecasted transactions. Changes in the fair value of derivatives designated as cash flow hedges are recorded as a component of AOCI. Those amounts are reclassified into earnings in the same period during which the forecasted transactions impact earnings and presented in the same line item on our consolidated statements of income as the earnings effect of the hedged items. Our cash flow hedges use interest rate swaps and floors that are intended to hedge the variability in interest receipts or interest payments on some of our variable-rate financial assets or liabilities. We also enter into foreign currency forward contracts to hedge our exposure to variability in cash flows related to intercompany borrowings denominated in a foreign currency. • Net Investment Hedges: We use net investment hedges to manage the foreign currency exposure related to our net investments in foreign operations that have functional currencies other than the U.S. dollar. Changes in the fair value of net investment hedges are recorded in the translation adjustment component of AOCI, offsetting the translation gain or loss from those foreign operations. We execute net investment hedges using foreign currency forward contracts to hedge the translation exposure of the net investment in our foreign operations under the forward method. • Free-Standing Derivatives: Our free-standing derivatives primarily consist of our customer accommodation derivatives and other economic hedges. The customer accommodation derivatives and the related offsetting contracts are mainly interest rate, commodity and foreign currency contracts. The other free-standing derivatives are primarily used to economically hedge the risk of changes in the fair value of our commercial mortgage loan origination and purchase commitments as well as other interests held. Changes in the fair value of free-standing derivatives are recorded in earnings as a component of other non-interest income. In the first quarter of 2018, we adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The disclosures below reflect the adoption changes. Derivatives Counterparty Credit Risk Counterparty Types Derivative instruments contain an element of credit risk that arises from the potential failure of a counterparty to perform according to the terms of the contract. We execute our derivative contracts primarily in over-the-counter (“OTC”) markets. We also execute minimal amounts of interest rate and commodity futures in the exchange-traded derivative markets. Our OTC derivatives consist of both centrally cleared and uncleared bilateral contracts. In our centrally cleared contracts, our counterparties are central counterparty clearinghouses (“CCPs”), such as the Chicago Mercantile Exchange (“CME”) and the LCH Group (“LCH”). In our uncleared bilateral contracts, we enter into agreements directly with our derivative counterparties. Counterparty Credit Risk Management We generally manage our counterparty credit risk associated with derivative instruments by entering into legally enforceable master netting arrangements, where possible, and exchanging margin and collateral with our counterparties, typically in the form of cash or high-quality liquid securities. The amount of collateral exchanged is dependent upon the fair value of the derivative instruments as well as the fair value of the pledged collateral. When valuing collateral, an estimate of the variation in price and liquidity over time is subtracted in the form of a “haircut” to discount the value of the collateral pledged. Our exposure to derivative counterparty credit risk, at any point in time, is equal to the amount reported as a derivative asset on our balance sheet. The fair value of derivatives is adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and any associated cash collateral received or pledged. See Table 10.3 for our net exposure associated with derivatives. The terms under which we collateralize our exposures differ between cleared exposures and uncleared bilateral exposures. • CCPs : We clear eligible OTC derivatives as part of our regulatory requirements with CCPs. Futures commission merchants (“FCMs”) serve as the intermediary between CCPs and us. CCPs require that we post initial and variation margin through our FCMs to mitigate the risk of non-payment or default. Initial margin is required upfront by CCPs as collateral against potential losses on our cleared derivative contracts. Variation margin is exchanged on a daily basis to account for mark-to-market changes in the derivative contracts. For CME-cleared OTC derivatives, we characterize variation margin cash payments as settlements. Effective January 16, 2018, LCH amended its rulebook to legally characterize variation margin payments as settlements. We adopted this rule change in the first quarter of 2018. As a result, the balances for the LCH-cleared OTC derivatives are reduced to reflect the settlement of these positions. Our FCM agreements governing these derivative transactions include provisions that may require us to post additional collateral. • Bilateral Counterparties : We generally enter into legally enforceable master netting agreements and collateral agreements, where possible, with bilateral derivative counterparties to mitigate the risk of default. We review our collateral positions on a daily basis and exchange collateral with our counterparties in accordance with these agreements. These bilateral agreements typically provide the right to offset exposure with the same counterparty and require the party in a net liability position to post collateral. Agreements with certain bilateral counterparties require both parties to maintain collateral in the event the fair values of derivative instruments exceed established exposure thresholds. Certain of these bilateral agreements include provisions requiring that our debt maintain a credit rating of investment grade or above by each of the major credit rating agencies. In the event of a downgrade of our debt credit rating below investment grade, some of our counterparties would have the right to terminate the derivative contract and close out the existing positions. Credit Risk Valuation Adjustments We record counterparty credit valuation adjustments (“CVAs”) on our derivative assets to properly reflect the credit quality of the counterparty. We consider collateral and legally enforceable master netting agreements that mitigate our credit exposure to each counterparty in determining CVA, which may be adjusted in future periods due to changes in the fair values of the derivative contracts, collateral and creditworthiness of the counterparty. We also record debit valuation adjustments (“DVAs”) to adjust the fair values of our derivative liabilities to reflect the impact of our own credit quality. We calculate this adjustment by comparing the spreads on our credit default swaps to the discount benchmark curve. Balance Sheet Presentation The following table summarizes the notional and fair values of our derivative instruments as of December 31, 2018 and 2017 , which are segregated by derivatives that are designated as accounting hedges and those that are not, and are further segregated by type of contract within those two categories. The total derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and any associated cash collateral received or pledged. Derivative assets and liabilities are included in other assets and other liabilities, respectively, on our consolidated balance sheets. Table 10.1 : Derivative Assets and Liabilities at Fair Value December 31, 2018 December 31, 2017 Notional or Contractual Amount Derivative (1)(2) Notional or Contractual Amount Derivative (1) (Dollars in millions) Assets Liabilities Assets Liabilities Derivatives designated as accounting hedges: Interest rate contracts: Fair value hedges $ 53,413 $ 64 $ 28 $ 56,604 $ 102 $ 164 Cash flow hedges 81,200 83 70 77,300 30 125 Total interest rate contracts 134,613 147 98 133,904 132 289 Foreign exchange contracts: Cash flow hedges 5,745 184 2 6,086 19 75 Net investment hedges 2,607 178 0 3,036 1 164 Total foreign exchange contracts 8,352 362 2 9,122 20 239 Total derivatives designated as accounting hedges 142,965 509 100 143,026 152 528 Derivatives not designated as accounting hedges: Customer accommodation: Interest rate contracts 49,386 190 256 39,429 316 221 Commodity contracts 10,673 797 786 8,111 518 496 Foreign exchange and other contracts 1,418 12 11 980 14 10 Total customer accommodation 61,477 999 1,053 48,520 848 727 Other interest rate exposures (3) 6,427 29 36 3,857 40 8 Other contracts 1,636 2 12 1,209 0 5 Total derivatives not designated as accounting hedges 69,540 1,030 1,101 53,586 888 740 Total derivatives $ 212,505 $ 1,539 $ 1,201 $ 196,612 $ 1,040 $ 1,268 Less: netting adjustment (4) (1,079 ) (287 ) (275 ) (662 ) Total derivative assets/liabilities $ 460 $ 914 $ 765 $ 606 __________ (1) Derivative assets and liabilities presented above exclude valuation adjustments related to non-performance risk. As of December 31, 2018 and 2017 , the cumulative CVA balances were $3 million and $2 million , respectively, and the cumulative DVA balances were approximately $1 million as of both December 31, 2018 and 2017 . (2) Reflects a reduction in derivative assets of $431 million and a reduction in derivative liabilities of $397 million on our consolidated balance sheets as a result of adopting the LCH variation margin rule change in the first quarter of 2018. (3) Other interest rate exposures include commercial mortgage-related derivatives and interest rate swaps. (4) Represents balance sheet netting of derivative assets and liabilities, and related payables and receivables for cash collateral held or placed with the same counterparty. The following table summarizes the carrying value of our hedged assets and liabilities in fair value hedges and the associated cumulative basis adjustments included in those carrying values as of December 31, 2018 . Table 10.2 : Hedged Items in Fair Value Hedging Relationships December 31, 2018 Carrying Amount Assets/(Liabilities) Cumulative Amount of Basis Adjustments Included in the Carrying Amount (Dollars in millions) Total Assets/(Liabilities) Discontinued-Hedging Relationships Line item on our consolidated balance sheets in which the hedged item is included: Investment securities available for sale (1)(2) $ 14,067 $ (6 ) $ (2 ) Interest-bearing deposits (13,101 ) 247 0 Securitized debt obligations (5,887 ) 168 143 Senior and subordinated notes (23,572 ) 315 392 __________ (1) These amounts include the amortized cost basis of our investment securities designated in hedging relationships for which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. As of December 31, 2018 , the amortized cost basis of this portfolio was $8.3 billion , the amount of the designated hedged items was $4.0 billion , and the cumulative basis adjustment associated with these hedges was $26 million . (2) Carrying value represents amortized cost. Balance Sheet Offsetting of Financial Assets and Liabilities Derivative contracts and repurchase agreements that we execute bilaterally in the OTC market are governed by enforceable master netting arrangements where we generally have the right to offset exposure with the same counterparty. Either counterparty can generally request to net settle all contracts through a single payment upon default on, or termination of, any one contract. We elect to offset the derivative assets and liabilities under netting arrangements for balance sheet presentation where a right of setoff exists. For derivative contracts entered into under master netting arrangements for which we have not been able to confirm the enforceability of the setoff rights, or those not subject to master netting arrangements, we do not offset our derivative positions for balance sheet presentation. The following table presents as of December 31, 2018 and 2017 the gross and net fair values of our derivative assets and liabilities and repurchase agreements, as well as the related offsetting amounts permitted under U.S. GAAP. The table also includes cash and non-cash collateral received or pledged in accordance with such arrangements. The amount of collateral presented, however, is limited to the amount of the related net derivative fair values or outstanding balances; therefore, instances of over-collateralization are excluded. Table 10.3 : Offsetting of Financial Assets and Financial Liabilities Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts as Recognized Securities Collateral Held Under Master Netting Agreements (Dollars in millions) Financial Instruments Cash Collateral Received Net Exposure As of December 31, 2018 Derivative assets (1)(2) $ 1,539 $ (205 ) $ (874 ) $ 460 $ 0 $ 460 As of December 31, 2017 Derivative assets (1) 1,040 (202 ) (73 ) 765 0 765 Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts as Recognized Securities Collateral Pledged Under Master Netting Agreements (Dollars in millions) Financial Instruments Cash Collateral Pledged Net Exposure As of December 31, 2018 Derivative liabilities (1)(2) $ 1,201 $ (205 ) $ (82 ) $ 914 $ 0 $ 914 Repurchase agreements (3) 352 0 0 352 (352 ) 0 As of December 31, 2017 Derivative liabilities (1) 1,268 (202 ) (460 ) 606 0 606 Repurchase agreements 576 0 0 576 (576 ) 0 __________ (1) We received cash collateral from derivative counterparties totaling $925 million and $91 million as of December 31, 2018 and 2017 , respectively. We also received securities from derivative counterparties with a fair value of $1 million as of both December 31, 2018 and 2017 , which we have the ability to re-pledge. We posted $633 million and $966 million of cash collateral as of December 31, 2018 and 2017 , respectively. (2) Reflects a reduction in derivative assets of $431 million and a reduction in derivative liabilities of $397 million on our consolidated balance sheets as a result of adopting the LCH variation margin rule change in the first quarter of 2018. (3) Represents customer repurchase agreements that mature the next business day. As of December 31, 2018 , we pledged collateral with a fair value of $359 million under these customer repurchase agreements, which were primarily agency RMBS securities. Income Statement and AOCI Presentation Fair Value and Cash Flow Hedges The net gains (losses) recognized in our consolidated statements of income related to derivatives in fair value and cash flow hedging relationships are presented below for the years ended December 31, 2018, 2017 and 2016 . Prior period amounts were not reclassified to conform to the current period presentation. Table 10.4 : Effects of Fair Value and Cash Flow Hedge Accounting Year Ended December 31, 2018 Net Interest Income Non-Interest Income (Dollars in millions) Investment Securities Loans, Including Loans Held for Sale Other Deposits Securitized Debt Obligations Senior and Subordinated Notes Other Total amounts presented in our consolidated statements of income $ 2,211 $ 24,728 $ 237 $ (2,598 ) $ (496 ) $ (1,125 ) $ 1,002 Fair value hedging relationships: Interest rate contracts: Interest recognized on derivatives (23 ) 0 0 (76 ) (53 ) 2 0 Gains (losses) recognized on derivatives 34 0 0 (60 ) (61 ) (212 ) 0 Gains (losses) recognized on hedged items (1) (33 ) 0 0 52 38 131 0 Net income (expense) recognized on fair value hedges (22 ) 0 0 (84 ) (76 ) (79 ) 0 Cash flow hedging relationships: (2) Interest rate contracts: Realized gains (losses) reclassified from AOCI into net income (9 ) (82 ) 0 0 0 0 0 Foreign exchange contracts: Realized gains (losses) reclassified from AOCI into net income (3) 0 0 47 0 0 0 (2 ) Net income (expense) recognized on cash flow hedges $ (9 ) $ (82 ) $ 47 $ 0 $ 0 $ 0 $ (2 ) __________ (1) Includes amortization expense of $75 million for the year ended December 31, 2018 related to basis adjustments on discontinued hedges. (2) See “ Note 11—Stockholders’ Equity ” for the effects of cash flow and net investment hedges on AOCI and amounts reclassified to net income, net of tax. (3) The amount recognized in non-interest income represents the net impact of $191 million of realized gains on foreign exchange contracts reclassified from AOCI into net income to offset $193 million of foreign currency transaction losses on our foreign currency denominated inter-company borrowings for the year ended December 31, 2018. Year Ended December 31, (Dollars in millions) 2017 2016 Derivatives designated as fair value hedges: Fair value interest rate contracts: Gains (losses) recognized in net income on derivatives $ (212 ) $ (613 ) Gains (losses) recognized in net income on hedged items 216 603 Net fair value hedge ineffectiveness gains (losses) 4 (10 ) Derivatives designated as cash flow hedges: Gains (losses) reclassified from AOCI into net income: Interest rate contracts 91 192 Foreign exchange contracts 17 3 Subtotal 108 195 Gains (losses) recognized in net income due to ineffectiveness: Interest rate contracts 2 (4 ) Net derivative gains (losses) recognized in net income $ 110 $ 191 In the next 12 months, we expect to reclassify to earnings net after-tax losses of $167 million recorded in AOCI as of December 31, 2018 . These amounts will offset the cash flows associated with the hedged forecasted transactions. The maximum length of time over which forecasted transactions were hedged was approximately five years as of December 31, 2018 . The amount we expect to reclassify into earnings may change as a result of changes in market conditions and ongoing actions taken as part of our overall risk management strategy. Free-Standing Derivatives The net impacts to our consolidated statements of income related to free-standing derivatives are presented below for the years ended December 31, 2018, 2017 and 2016 . These gains or losses are recognized in other non-interest income on our consolidated statements of income. Table 10.5 : Gains (Losses) on Free-Standing Derivatives Year Ended December 31, (Dollars in millions) 2018 2017 2016 Gains (losses) recognized in other non-interest income: Customer accommodation: Interest rate contracts $ 25 $ 20 $ 24 Commodity contracts 16 13 10 Foreign exchange and other contracts 7 5 3 Total customer accommodation 48 38 37 Other interest rate exposures 33 61 67 Other contracts (21 ) 0 (9 ) Total $ 60 $ 99 $ 95 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 11—STOCKHOLDERS’ EQUITY Preferred Stock The following table summarizes the Company’s preferred stock issued and outstanding as of December 31, 2018 and 2017 . Table 11.1 : Preferred Stock Issued and Outstanding (1) Redeemable by Issuer Beginning Per Annum Dividend Rate Dividend Frequency Liquidation Preference per Share Carrying Value (in millions) Series Description Issuance Date Total Shares Outstanding December 31, 2018 December 31, 2017 Series B 6.00% Non-Cumulative August 20, 2012 September 1, 2017 6.00 % Quarterly $ 1,000 875,000 $ 853 $ 853 Series C 6.25% Non-Cumulative June 12, 2014 September 1, 2019 6.25 Quarterly 1,000 500,000 484 484 Series D 6.70% Non-Cumulative October 31, 2014 December 1, 2019 6.70 Quarterly 1,000 500,000 485 485 Series E Fixed-to-Floating Rate Non-Cumulative May 14, 2015 June 1, 2020 5.55% through 5/31/2020; Semi-Annually through 5/31/2020; Quarterly thereafter 1,000 1,000,000 988 988 Series F 6.20% Non-Cumulative August 24, 2015 December 1, 2020 6.20 Quarterly 1,000 500,000 484 484 Series G 5.20% Non-Cumulative July 29, 2016 December 1, 2021 5.20 Quarterly 1,000 600,000 583 583 Series H 6.00% Non-Cumulative November 29, 2016 December 1, 2021 6.00 Quarterly 1,000 500,000 483 483 Total $ 4,360 $ 4,360 __________ (1) Except for Series E, ownership is held in the form of depositary shares, each representing a 1/40th interest in a share of fixed-rate non-cumulative perpetual preferred stock. Accumulated Other Comprehensive Income Accumulated other comprehensive income primarily consists of accumulated net unrealized gains or losses associated with available for sale securities, the changes in fair value of derivatives designated as cash flow hedges, unrealized gains and losses on securities held to maturity on the transfer date from the available for sale category and foreign currency translation adjustments. Unrealized gains and losses for securities held to maturity are amortized over the remaining life of the security with no expected impact on future net income as amortization of these gains or losses will be offset by the amortization of premium or discount created from the transfer of securities from available to sale to held to maturity. The following table includes the AOCI impacts from the adoption of accounting standards and the changes in AOCI by component for the years ended December 31, 2018, 2017 and 2016 . Table 11.2 : Accumulated Other Comprehensive Income (Loss) (Dollars in millions) Securities Available for Sale Securities Held to Maturity Cash Flow Hedges Foreign (1) Other Total AOCI as of December 31, 2015 $ 162 $ (725 ) $ 120 $ (143 ) $ (30 ) $ (616 ) Other comprehensive income (loss) before reclassifications (172 ) 0 (3 ) (79 ) 7 (247 ) Amounts reclassified from AOCI into earnings 6 104 (195 ) 0 (1 ) (86 ) Other comprehensive income (loss), net of tax (166 ) 104 (198 ) (79 ) 6 (333 ) AOCI as of December 31, 2016 (4 ) (621 ) (78 ) (222 ) (24 ) (949 ) Other comprehensive income (loss) before reclassifications 62 0 (95 ) 84 30 81 Amounts reclassified from AOCI into earnings (41 ) 97 (108 ) 0 (6 ) (58 ) Other comprehensive income (loss), net of tax 21 97 (203 ) 84 24 23 AOCI as of December 31, 2017 17 (524 ) (281 ) (138 ) 0 (926 ) Cumulative effects from adoption of new accounting standards 3 (113 ) (63 ) 0 (28 ) (201 ) Transfer of securities held to maturity to available for sale (2) (325 ) 407 0 0 0 82 Other comprehensive income (loss) before reclassifications (293 ) 0 38 (39 ) (8 ) (302 ) Amounts reclassified from AOCI into earnings 159 40 (112 ) 0 (3 ) 84 Other comprehensive income (loss), net of tax (459 ) 447 (74 ) (39 ) (11 ) (136 ) AOCI as of December 31, 2018 $ (439 ) $ (190 ) $ (418 ) $ (177 ) $ (39 ) $ (1,263 ) __________ (1) Includes other comprehensive gain of $ 150 million, loss of $143 million and gain of $280 million for the years ended December 31, 2018, 2017 and 2016, respectively, from hedging instruments designated as net investment hedges. (2) In the first quarter of 2018, we made a one-time transfer of held to maturity securities with a carrying value of $9.0 billion to available for sale as a result of our adoption of ASU No. 2017-12. This transfer resulted in an after-tax gain of $82 million ( $107 million pre-tax) to AOCI. The following table presents the impacts on net income of amounts reclassified from each component of AOCI for the years ended December 31, 2018, 2017 and 2016 . Table 11.3 : Reclassifications from AOCI (Dollars in millions) Year Ended December 31, AOCI Components Affected Income Statement Line Item 2018 2017 2016 Securities available for sale: Non-interest income $ (209 ) $ 65 $ (10 ) Income tax provision (benefit) (50 ) 24 (4 ) Net income (loss) (159 ) 41 (6 ) Securities held to maturity: (1) Interest income (53 ) (150 ) (164 ) Income tax benefit (13 ) (53 ) (60 ) Net loss (40 ) (97 ) (104 ) Cash flow hedges: Interest rate contracts: Interest income (91 ) 145 306 Foreign exchange contracts: Interest income 47 27 6 Non-interest income 191 1 (2 ) Income from continuing operations before income taxes 147 173 310 Income tax provision 35 65 115 Net income 112 108 195 Other: Non-interest income and non-interest expense 4 9 2 Income tax provision 1 3 1 Net income 3 6 1 Total reclassifications $ (84 ) $ 58 $ 86 __________ (1) The amortization of unrealized holding gains or losses reported in AOCI for securities held to maturity will be offset by the amortization of premium or discount created from the transfer of securities from available for sale to held to maturity, which occurred at fair value. These unrealized gains or losses will be amortized over the remaining life of the security with no expected impact on future net income. The table below summarizes other comprehensive income (loss) activity and the related tax impact for the years ended December 31, 2018, 2017 and 2016 . Table 11.4 : Other Comprehensive Income (Loss) Year Ended December 31, 2018 2017 2016 (Dollars in millions) Before Tax Provision After Tax Before Tax Provision After Tax Before Tax Provision After Tax Other comprehensive income (loss): Net unrealized gains (losses) on securities available for sale $ (605 ) $ (146 ) $ (459 ) $ 23 $ 2 $ 21 $ (254 ) $ (88 ) $ (166 ) Net changes in securities held to maturity 588 141 447 150 53 97 164 60 104 Net unrealized losses on cash flow hedges (98 ) (24 ) (74 ) (325 ) (122 ) (203 ) (315 ) (117 ) (198 ) Foreign currency translation adjustments (1) 9 48 (39 ) 3 (81 ) 84 86 165 (79 ) Other (15 ) (4 ) (11 ) 38 14 24 10 4 6 Other comprehensive income (loss) $ (121 ) $ 15 $ (136 ) $ (111 ) $ (134 ) $ 23 $ (309 ) $ 24 $ (333 ) __________ (1) |
Regulatory and Capital Adequacy
Regulatory and Capital Adequacy | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory and Capital Adequacy | NOTE 12—REGULATORY AND CAPITAL ADEQUACY Regulation and Capital Adequacy Bank holding companies (“BHCs”) and national banks are subject to capital adequacy standards adopted by the Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation (collectively, the “Federal Banking Agencies”), including the Basel III Capital Rule. Moreover, the Banks, as insured depository institutions, are subject to prompt corrective action (“PCA”) capital regulations, which require the Federal Banking Agencies to take prompt corrective action for banks that do not meet PCA capital requirements. We entered parallel run under Advanced Approaches on January 1, 2015, during which we calculate capital ratios under both the Basel III Standardized Approach and the Basel III Advanced Approaches, though we continue to use the Standardized Approach for purposes of meeting regulatory capital requirements. Under the Basel III Capital Rule, the regulatory minimum risk-based and leverage capital requirements for Advanced Approaches banking organizations include a common equity Tier 1 capital ratio of at least 4.5% , a Tier 1 capital ratio of at least 6.0% , a total capital ratio of at least 8.0% and a Tier 1 leverage capital ratio of at least 4.0% . The Basel III Capital Rule introduced a supplementary leverage ratio for all Advanced Approaches banking organizations, which compares Tier 1 capital to total leverage exposure, which includes all on-balance sheet assets and certain off-balance sheet exposures, including derivatives and unused commitments. Given that we are in our Basel III Advanced Approaches parallel run, we calculate the ratio based on Tier 1 capital under the Standardized Approach. The supplementary leverage ratio minimum requirement of 3.0% became effective on January 1, 2018. For additional information about the capital adequacy guidelines we are subject to, see “ PART I — Item 1. Business — Supervision and Regulation .” The following table provides a comparison of our regulatory capital amounts and ratios under the Basel III Standardized Approach subject to the applicable transition provisions, the regulatory minimum capital adequacy ratios and the PCA well-capitalized level for each ratio,where applicable, as of December 31, 2018 and 2017 . Table 12.1 : Capital Ratios Under Basel III (1) December 31, 2018 December 31, 2017 (Dollars in millions) Capital Amount Capital Minimum Well- Capital Amount Capital Minimum Well- Capital One Financial Corp: Common equity Tier 1 capital (2) $ 33,071 11.2 % 4.5 % N/A $ 30,036 10.3 % 4.5 % N/A Tier 1 capital (3) 37,431 12.7 6.0 6.0 % 34,396 11.8 6.0 6.0 % Total capital (4) 44,645 15.1 8.0 10.0 41,962 14.4 8.0 10.0 Tier 1 leverage (5) 37,431 10.7 4.0 N/A 34,396 9.9 4.0 N/A Supplementary leverage (6) 37,431 9.0 3.0 N/A 34,396 8.4 N/A N/A COBNA: Common equity Tier 1 capital (2) 16,378 15.3 4.5 6.5 14,791 14.3 4.5 6.5 Tier 1 capital (3) 16,378 15.3 6.0 8.0 14,791 14.3 6.0 8.0 Total capital (4) 18,788 17.6 8.0 10.0 17,521 16.9 8.0 10.0 Tier 1 leverage (5) 16,378 14.0 4.0 5.0 14,791 12.7 4.0 5.0 Supplementary leverage (6) 16,378 11.5 3.0 N/A 14,791 10.4 N/A N/A CONA: Common equity Tier 1 capital (2) 25,637 13.0 4.5 6.5 23,771 12.2 4.5 6.5 Tier 1 capital (3) 25,637 13.0 6.0 8.0 23,771 12.2 6.0 8.0 Total capital (4) 27,912 14.2 8.0 10.0 26,214 13.4 8.0 10.0 Tier 1 leverage (5) 25,637 9.1 4.0 5.0 23,771 8.6 4.0 5.0 Supplementary leverage (6) 25,637 8.0 3.0 N/A 23,771 7.7 N/A N/A __________ (1) Capital ratios are calculated based on the Basel III Standardized Approach framework, subject to applicable transition provisions, such as the inclusion of the unrealized gains and losses on securities available for sale included in AOCI and adjustments related to intangible assets other than goodwill. The inclusion of AOCI and the adjustments related to intangible assets are phased-in at 80% for 2017 and 100% for 2018. Capital requirements that are not applicable are denoted by “N/A.” (2) Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets. (3) Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets. (4) Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets. (5) Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets. (6) Supplementary leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by total leverage exposure. We exceeded the minimum capital requirements and each of the Banks exceeded the minimum regulatory requirements and were well-capitalized under PCA requirements as of both December 31, 2018 and 2017 . Regulatory restrictions exist that limit the ability of the Banks to transfer funds to our BHC. As of December 31, 2018 , funds available for dividend payments from COBNA and CONA were $3.2 billion and $2.2 billion , respectively. Applicable provisions that may be contained in our borrowing agreements or the borrowing agreements of our subsidiaries may limit our subsidiaries’ ability to pay dividends to us or our ability to pay dividends to our stockholders. The Federal Reserve requires depository institutions to maintain certain cash reserves against specified deposit liabilities. As of December 31, 2018 and 2017, our reserve requirements totaled $1.9 billion and $2.2 billion |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | NOTE 13—EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per common share. Dividends and undistributed earnings allocated to participating securities represent the undistributed earnings allocated to participating securities using the two-class method permitted by U.S. GAAP for computing earnings per share. Table 13.1 : Computation of Basic and Diluted Earnings per Common Share Year Ended December 31, (Dollars and shares in millions, except per share data) 2018 2017 2016 Income from continuing operations, net of tax $ 6,025 $ 2,117 $ 3,770 Loss from discontinued operations, net of tax (10 ) (135 ) (19 ) Net income 6,015 1,982 3,751 Dividends and undistributed earnings allocated to participating securities (40 ) (13 ) (24 ) Preferred stock dividends (265 ) (265 ) (214 ) Net income available to common stockholders $ 5,710 $ 1,704 $ 3,513 Total weighted-average basic shares outstanding 479.9 484.2 504.9 Effect of dilutive securities: Stock options 1.6 2.5 2.0 Other contingently issuable shares 1.1 1.2 1.3 Warrants (1) 0.5 0.7 1.6 Total effect of dilutive securities 3.2 4.4 4.9 Total weighted-average diluted shares outstanding 483.1 488.6 509.8 Basic earnings per common share: Net income from continuing operations $ 11.92 $ 3.80 $ 7.00 Loss from discontinued operations (0.02 ) (0.28 ) (0.04 ) Net income per basic common share $ 11.90 $ 3.52 $ 6.96 Diluted earnings per common share: (2) Net income from continuing operations $ 11.84 $ 3.76 $ 6.93 Loss from discontinued operations (0.02 ) (0.27 ) (0.04 ) Net income per diluted common share $ 11.82 $ 3.49 $ 6.89 __________ (1) Represents warrants issued as part of the U.S. Department of Treasury’s Troubled Assets Relief Program which had all been exercised or expired on November 14, 2018. There were 1.3 million and 4.1 million warrants to purchase common stock outstanding as of December 31, 2017 and 2016 , respectively. (2) Excluded from the computation of diluted earnings per share were 56 thousand shares related to options with an exercise price of $86.34 , 233 thousand shares related to options with exercise prices ranging from $82.08 to $86.34 and 1.7 million shares related to options with exercise prices ranging from $63.73 to $88.81 for the years ended December 31, 2018 , 2017 and 2016 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | NOTE 14—STOCK-BASED COMPENSATION PLANS Stock Plans We have one active stock-based compensation plan available for the issuance of shares to employees, directors and third-party service providers (if applicable). As of December 31, 2018 , under the Amended and Restated 2004 Stock Incentive plan (“2004 Plan”), we are authorized to issue 55 million common shares in various forms, including incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards (“RSAs”), share-settled restricted stock units (“RSUs”), performance share awards (“PSAs”) and performance share units (“PSUs”). Of this amount, approximately 13 million shares remain available for future issuance as of December 31, 2018 . The 2004 Plan permits the use of newly issued shares or treasury shares upon the settlement of options and stock-based incentive awards, and we generally settle by issuing new shares. We also issue cash-settled restricted stock units (and in the past issued cash equity units). These cash-settled units are not counted against the common shares authorized for issuance or available for issuance under the 2004 Plan. Total stock-based compensation expense recognized during 2018 , 2017 and 2016 was $170 million , $244 million and $239 million , respectively. The total income tax benefit for stock-based compensation recognized during 2018 , 2017 and 2016 was $34 million , $92 million and $89 million , respectively. Stock Options Stock options have a maximum contractual term of ten years . Generally, the exercise price of stock options will equal the fair market value of our common stock on the date of grant. Option vesting is determined at the time of grant and may be subject to the achievement of any applicable performance conditions. Options generally become exercisable over three years beginning on the first anniversary of the date of grant; however, some option grants cliff-vest on or shortly after the first or third anniversary of the grant date. The following table presents a summary of 2018 activity for stock options and the balance of stock options exercisable as of December 31, 2018 . Table 14.1 : Summary of Stock Options Activity (Shares in thousands, and intrinsic value in millions) Shares Weighted- Weighted- Aggregate Outstanding as of January 1, 2018 4,766 $ 48.50 Granted 0 0.00 Exercised (1,310 ) 28.65 Forfeited 0 0.00 Expired 0 0.00 Outstanding as of December 31, 2018 3,456 $ 56.03 3.88 years $ 71 Exercisable as of December 31, 2018 3,043 $ 53.36 3.37 years $ 68 There were no stock options granted in 2018 and the weighted-average fair value of stock options granted during 2017 and 2016 was $21.48 and $16.36 , respectively. The total intrinsic value of stock options exercised during 2018 , 2017 and 2016 was $94 million , $92 million and $31 million , respectively. Effective January 1, 2017, we adopted the new accounting guidance related to employee share-based payments. As a result of the adoption of this new guidance, all excess tax benefits on share-based payment awards are recognized within income tax expense in the consolidated statements of income. The following table presents the cash received from the exercise of stock options under all stock-based incentive arrangements, and the actual income tax benefit for the tax deductions from the exercise of the stock options. Table 14.2 : Stock Options Cash Flow Impact Year Ended December 31, (Dollars in millions) 2018 2017 2016 Cash received for options exercised $ 38 $ 122 $ 135 Tax benefit 22 34 12 Compensation expense for stock options is based on the grant date fair value, which is estimated using the Black-Scholes option-pricing model. This option pricing model requires the use of numerous assumptions, many of which are subjective. Certain stock options have discretionary vesting conditions and are remeasured at fair value each reporting period. The following table presents the weighted-average assumptions used to value stock options granted during 2017 and 2016 , and there were no stock options granted in 2018. Dividend yield represents the expected dividend rate over the life of the option, and expected option lives are calculated based on historical activities. Table 14.3 : Assumptions Used to Value Stock Options Granted Year Ended December 31, 2017 2016 Dividend yield 1.85 % 2.07 % Volatility (1) 27.00 30.00 Risk-free interest rate (U.S. Treasury yield curve) 2.30 1.64 Expected option lives 6.6 years 6.6 years __________ (1) The volatility assumption was based on the implied volatility of exchange-traded options and the historical volatility of common stock. Restricted Stock Awards and Units RSAs and RSUs represent share-settled awards that do not contain performance conditions and are granted to certain employees at no cost to the recipient. RSAs and RSUs generally vest over three years from the date of grant; however, some RSAs and RSUs cliff vest on or shortly after the first or third anniversary of the grant date. These awards and units are subject to forfeiture until certain restrictions have lapsed, including continued employment for a specified period of time. A recipient of an RSA is entitled to voting rights and is generally entitled to dividends on the common stock. A recipient of an RSU is entitled to receive a share of common stock after the applicable restrictions lapse. Additionally, a recipient of an RSU is generally entitled to receive cash payments or additional shares of common stock equivalent to any dividends paid on the underlying common stock during the period the RSU is outstanding, but is not entitled to voting rights. Generally, the value of RSAs and RSUs will equal the fair value of our common stock on the date of grant and the expense is recognized over the vesting period. The following table presents a summary of 2018 activity for RSAs and RSUs. Table 14.4 : Summary of Restricted Stock Awards and Units Restricted Stock Awards Restricted Stock Units (Shares/units in thousands) Shares Weighted-Average Units Weighted-Average Unvested as of January 1, 2018 16 $ 56.39 3,379 $ 74.06 Granted 0 N/A 1,547 100.73 Vested (16 ) 56.39 (1,426 ) 75.62 Forfeited 0 0.00 (155 ) 88.16 Unvested as of December 31, 2018 0 $ 0.00 3,345 $ 85.01 There were no RSAs granted in 2018, and the total fair value of RSAs that vested during 2018 , 2017 and 2016 was $2 million , $3 million and $21 million , respectively. There was no unrecognized compensation expense related to unvested RSAs as of December 31, 2018 . The weighted-average grant date fair value of RSUs in 2018 , 2017 and 2016 was $100.73 , $86.20 and $65.19 , respectively. The total fair value of RSUs that vested during 2018 , 2017 and 2016 was $139 million , $110 million and $42 million , respectively. The unrecognized compensation expense related to unvested RSUs as of December 31, 2018 was $139 million , which is expected to be amortized over a weighted-average period of approximately 1.8 years . Performance Share Awards and Units PSAs and PSUs represent share-settled awards that contain performance conditions and are granted to certain employees at no cost to the recipient. PSAs and PSUs generally vest over three years from the date of grant; however, some PSUs cliff vest on or shortly after the third anniversary of the grant date. Generally, the value of PSAs and PSUs will equal the fair market value of our common stock on the date of grant and the expense is recognized over the vesting period. Certain PSAs and PSUs have discretionary vesting conditions and are remeasured at fair value each reporting period. A recipient of a PSA is entitled to voting rights and is generally entitled to dividends on the common stock. A recipient of a PSU is entitled to receive a share of common stock after the applicable restrictions lapse. Additionally, a recipient of a PSU is generally entitled to receive cash payments or additional shares of common stock equivalent to any dividends paid on the underlying common stock during the period the PSU is outstanding, but is not entitled to voting rights. The number of PSUs that step vest over three years can be reduced by 50% or 100% depending on whether specific performance goals are met during the vesting period. The number of three-year cliff vesting PSUs that will ultimately vest is contingent upon meeting specific performance goals over a three-year period. These PSUs also include an opportunity to receive from 0% to 150% of the target number of common shares. There were no unvested PSAs at the beginning of the year, and no new PSAs were granted during the year. As such, the following table presents a summary of 2018 activity for PSUs only. Table 14.5 : Summary of Performance Share Units Performance Share Units (Shares/units in thousands) Units Weighted-Average Unvested as of January 1, 2018 1,918 $ 75.38 Granted (1) 878 100.65 Vested (1) (932 ) 74.80 Forfeited (60 ) 90.35 Unvested as of December 31, 2018 1,804 $ 87.48 __________ (1) Granted and vested include adjustments for achievement of specific performance goals for performance share units granted in prior periods. The weighted-average grant date fair value of PSUs granted during 2018 , 2017 and 2016 was $100.65 , $82.48 and $62.89 , respectively. The total fair value of PSUs that vested was $92 million , $90 million and $54 million in 2018 , 2017 and 2016 , respectively. The unrecognized compensation expense related to unvested PSUs as of December 31, 2018 was $31 million , which is expected to be amortized over a weighted-average period of approximately 11 months . Cash-Settled Units Cash-settled units are recorded as liabilities and measured at fair value on a quarterly basis. Cash-settled units are settled with a cash payment for each unit vested that is equal to the average fair market value of our common stock for the 15 trading days preceding the vesting date. Cash-settled units generally vest over three years beginning on the first anniversary of the date of grant; however, some cash-settled units cliff vest shortly before the one year anniversary of the grant date or on or shortly after the third anniversary of the grant date. Cash-settled units vesting during 2018 , 2017 and 2016 resulted in cash payments to associates of $39 million , $42 million and $36 million , respectively. There was no unrecognized compensation cost for unvested cash-settled units as of December 31, 2018 . Associate Stock Purchase Plan We maintain an Associate Stock Purchase Plan (“Purchase Plan”), which is a compensatory plan under the accounting guidance for stock-based compensation. We recognized $23 million , $23 million and $18 million in compensation expense for 2018 , 2017 and 2016 , respectively, under the Purchase Plan. Under the Purchase Plan, eligible associates are permitted to contribute between 1% and 15% of their base compensation through payroll deductions and receive a 15% Company match on the contribution. Both the associates’ contributions and the Company match are applied to the purchase of our unissued common or treasury stock at the current market price. Shares may also be acquired on the open market. Dividends for active participants are automatically reinvested in additional shares of common stock. Of the 33 million total authorized shares as of December 31, 2018 , 16 million shares were available for issuance. Dividend Reinvestment and Stock Purchase Plan We maintain a Dividend Reinvestment and Stock Purchase Plan (“DRP”), which allows participating stockholders to purchase additional shares of our common stock through automatic reinvestment of dividends or optional cash investments. Of the 8 million total authorized shares as of December 31, 2018 , 7 million |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | NOTE 15—EMPLOYEE BENEFIT PLANS Defined Contribution Plan We sponsor a contributory Associate Savings Plan (the “Plan”) in which all full-time and part-time associates over the age of 18 are eligible to participate. We make non-elective contributions to each eligible associates’ account and match a portion of associate contributions. We also sponsor a voluntary non-qualified deferred compensation plan in which select groups of employees are eligible to participate. We make contributions to this plan based on participants’ deferral of salary, bonuses and other eligible pay. In addition, we match participants’ excess compensation (compensation over the Internal Revenue Service compensation limit) less deferrals. We contributed a total of $291 million , $282 million and $252 million to these plans during the years ended December 31, 2018, 2017 and 2016 , respectively. Defined Benefit Pension and Other Postretirement Benefit Plans We sponsor a frozen qualified defined benefit pension plan and several non-qualified defined benefit pension plans. We also sponsor a plan that provides other postretirement benefits, including medical and life insurance coverage. Our pension plans and the other postretirement benefit plan are valued using December 31, 2018 and 2017 measurement dates. Our policy is to amortize prior service amounts on a straight-line basis over the average remaining years of service to full eligibility for benefits of active plan participants. The following table sets forth, on an aggregated basis, changes in the benefit obligation and plan assets, the funded status and how the funded status is recognized on our consolidated balance sheets. Table 15.1 : Changes in Benefit Obligation and Plan Assets Defined Pension Other Postretirement (Dollars in millions) 2018 2017 2018 2017 Change in benefit obligation: Accumulated benefit obligation as of January 1, $ 178 $ 180 $ 35 $ 39 Service cost 1 2 0 0 Interest cost 6 7 1 2 Benefits paid (15 ) (18 ) (2 ) (3 ) Net actuarial loss (gain) (13 ) 7 (5 ) (3 ) Accumulated benefit obligation as of December 31, $ 157 $ 178 $ 29 $ 35 Change in plan assets: Fair value of plan assets as of January 1, $ 246 $ 226 $ 6 $ 6 Actual return on plan assets (14 ) 37 0 1 Employer contributions 1 1 2 2 Benefits paid (15 ) (18 ) (2 ) (3 ) Fair value of plan assets as of December 31, $ 218 $ 246 $ 6 $ 6 Over (under) funded status as of December 31, $ 61 $ 68 $ (23 ) $ (29 ) Defined Pension Other Postretirement (Dollars in millions) 2018 2017 2018 2017 Balance sheet presentation as of December 31, Other assets $ 71 $ 80 $ 0 $ 0 Other liabilities (10 ) (12 ) (23 ) (29 ) Net amount recognized as of December 31, $ 61 $ 68 $ (23 ) $ (29 ) The following table presents the components of net periodic benefit costs and other amounts recognized in other comprehensive income. Table 15.2 : Components of Net Periodic Benefit Cost Year Ended December 31, 2018 2017 2016 2018 2017 2016 (Dollars in millions) Defined Pension Other Postretirement Components of net periodic benefit cost: Service cost $ 1 $ 2 $ 2 $ 0 $ 0 $ 0 Interest cost 6 7 7 1 2 2 Expected return on plan assets (15 ) (14 ) (14 ) 0 0 0 Amortization of transition obligation, prior service credit and net actuarial loss (gain) 1 1 1 (6 ) (6 ) (6 ) Net periodic benefit gain $ (7 ) $ (4 ) $ (4 ) $ (5 ) $ (4 ) $ (4 ) Changes recognized in other comprehensive income, pretax: Net actuarial gain (loss) $ (17 ) $ 16 $ 4 $ 5 $ 4 $ 5 Reclassification adjustments for amounts recognized in net periodic benefit cost 1 1 1 (6 ) (6 ) (6 ) Total gain (loss) recognized in other comprehensive income $ (16 ) $ 17 $ 5 $ (1 ) $ (2 ) $ (1 ) Pre-tax amounts recognized in AOCI that have not yet been recognized as a component of net periodic benefit cost consist of net actuarial loss of $64 million and $49 million for our defined benefit pension plans as of December 31, 2018 and 2017 , respectively, and net actuarial gain of $9 million and $10 million for our other postretirement benefit plan as of December 31, 2018 and 2017 , respectively. There was no meaningful prior service cost recognized in AOCI. The following table presents weighted-average assumptions used in the accounting for the plans: Table 15.3 : Assumptions Used in the Accounting for the Plans December 31, 2018 2017 2016 2018 2017 2016 Defined Pension Other Postretirement Assumptions for benefit obligations at measurement date: Discount rate 4.2 % 3.5 % 4.0 % 4.2 % 3.5 % 4.0 % Assumptions for periodic benefit cost for the year ended: Discount rate 3.5 4.0 4.2 3.5 4.0 4.2 Expected long-term rate of return on plan assets 6.5 6.5 6.5 6.5 6.5 6.5 Assumptions for year-end valuations: Health care cost trend rate assumed for next year: Pre-age 65 N/A N/A N/A 6.2 6.5 6.7 Post-age 65 N/A N/A N/A 6.2 6.5 6.8 Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) N/A N/A N/A 4.5 4.5 4.5 Year the rate reaches the ultimate trend rate N/A N/A N/A 2037 2037 2037 To develop the expected long-term rate of return on plan assets assumption, consideration was given to the current level of expected returns on risk-free investments (primarily government bonds), the historical level of the risk premium associated with the other asset classes in which the portfolio is invested and the expectations for future returns of each asset class. The expected return for each asset class was then weighted based on the target asset allocation to develop the expected long-term rate of return on the plan assets assumption for the portfolio. Plan Assets and Fair Value Measurement Plan assets are invested using a total return investment approach whereby a mix of equity securities and debt securities are used to preserve asset values, diversify risk and enhance our ability to achieve our benchmark for long-term investment return. Investment strategies and asset allocations are based on careful consideration of plan liabilities, the plan’s funded status and our financial condition. Investment performance and asset allocation are measured and monitored on a quarterly basis. Plan assets are managed in a balanced portfolio comprised of three major components: domestic equity, international equity and domestic fixed income investments. The expected role of plan equity investments is to maximize the long-term real growth of fund assets, while the role of fixed income investments is to generate current income, provide for more stable periodic returns and provide some protection against a prolonged decline in the market value of fund equity investments. The investment guidelines provide the following asset allocation targets and ranges: domestic equity target of 39% and allowable range of 34% to 44% , international equity target of 16% and allowable range of 11% to 21% , fixed income investments target of 45% and allowable range of 35% to 55% . As of December 31, 2018 , substantially all of our plan assets of $224 million were invested in common collective trusts, which primarily consist of government securities, corporate and municipal bonds, and domestic and international equity securities. As of December 31, 2017 , our plan assets totaled $252 million , of which approximately 60% were invested in common collective trusts and the remaining 40% were primarily invested in corporate bonds and government securities. The common collective trusts are measured at net asset value per share, or its equivalent, as a practical expedient and therefore are not classified in the fair value hierarchy, and the remaining investments were classified as Level 2 in the fair value hierarchy. For information on fair value measurements, including descriptions of Level 1, 2 and 3 of the fair value hierarchy and the valuation methods we utilize, see “ Note 17—Fair Value Measurement .” Expected Future Benefit Payments As of December 31, 2018 , the benefits expected to be paid in the next ten years totaled $103 million for our defined pension benefit plans and $20 million |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 16—INCOME TAXES We recognize the current and deferred tax consequences of all transactions that have been recognized in the financial statements using the provisions of the enacted tax laws. Current income tax expense represents our estimated taxes to be paid or refunded for the current period and includes income tax expense related to our uncertain tax positions, as well as tax-related interest and penalties. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. We record valuation allowances to reduce deferred tax assets to the amount that is more likely than not to be realized. We record the effect of remeasuring deferred tax assets and liabilities due to a change in tax rates or laws as a component of income tax expense related to continuing operations for the period in which the change is enacted. We subsequently release income tax effects stranded in AOCI using a portfolio approach. Income tax benefits are recognized when, based on their technical merits, they are more likely than not to be sustained upon examination. The amount recognized is the largest amount of benefit that is more likely than not to be realized upon settlement. In the fourth quarter of 2017, we recorded charges of $1.8 billion associated with the impacts of the Tax Act, and there were no material adjustments made to this amount during the measurement period which ended in December 2018. In the fourth quarter of 2018, we recognized a tax benefit of $284 million as a result of an approval from the Internal Revenue Service (IRS) related to a tax methodology change on rewards costs. The following table presents significant components of the provision for income taxes attributable to continuing operations: Table 16.1 : Significant Components of the Provision for Income Taxes Attributable to Continuing Operations Year Ended December 31, (Dollars in millions) 2018 2017 2016 Current income tax provision: Federal taxes $ 210 $ 1,585 $ 2,087 State taxes 234 223 209 International taxes 135 133 104 Total current provision $ 579 $ 1,941 $ 2,400 Deferred income tax provision (benefit): Federal taxes $ 620 $ 1,509 $ (621 ) State taxes 115 (69 ) (63 ) International taxes (21 ) (6 ) (2 ) Total deferred provision (benefit) 714 1,434 (686 ) Total income tax provision $ 1,293 $ 3,375 $ 1,714 The international income tax provision is related to pre-tax earnings from foreign operations of approximately $382 million , $410 million and $287 million in 2018 , 2017 and 2016 , respectively. Total income tax provision does not reflect the tax effects of items that are included in accumulated other comprehensive income, which include a tax provision of $15 million , tax benefit of $134 million and tax provision of $24 million in 2018, 2017 and 2016 , respectively. See “ Note 11—Stockholders’ Equity ” for additional information. The following table presents the reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate applicable to income from continuing operations for the years ended December 31, 2018 , 2017 and 2016 : Table 16.2 : Effective Income Tax Rate Year Ended December 31, 2018 2017 2016 Income tax at U.S. federal statutory tax rate 21.0 % 35.0 % 35.0 % Affordable housing, new markets and other tax credits (4.0 ) (5.8 ) (4.9 ) IRS method changes (3.9 ) 0.0 0.0 Tax-exempt interest and other nontaxable income (0.7 ) (1.5 ) (1.4 ) Impacts of the Tax Act (0.3 ) 32.2 N/A State taxes, net of federal benefit 3.2 2.2 1.9 Non-deductible expenses 2.2 0.7 0.9 Other, net 0.2 (1.3 ) (0.2 ) Effective income tax rate 17.7 % 61.5 % 31.3 % The following table presents significant components of our deferred tax assets and liabilities as of December 31, 2018 and 2017 . The valuation allowance below represents the adjustment of certain state deferred tax assets and net operating loss carryforwards to the amount we have determined is more likely than not to be realized. Table 16.3 : Significant Components of Deferred Tax Assets and Liabilities (Dollars in millions) December 31, 2018 December 31, 2017 Deferred tax assets: Allowance for loan and lease losses $ 1,700 $ 1,768 Rewards programs 500 936 Security and loan valuations 288 424 Net operating loss and tax credit carryforwards 271 244 Goodwill and intangibles 187 201 Compensation and employee benefits 167 208 Partnership investments 162 130 Net unrealized losses on derivatives 135 104 Unearned income 114 130 Other assets 152 156 Subtotal 3,676 4,301 Valuation allowance (245 ) (226 ) Total deferred tax assets 3,431 4,075 Deferred tax liabilities: Original issue discount 720 703 Fixed assets and leases 204 168 Loan fees and expenses 75 68 Mortgage servicing rights 48 57 Other liabilities 239 215 Total deferred tax liabilities 1,286 1,211 Net deferred tax assets $ 2,145 $ 2,864 Our federal net operating loss carryforwards were less than $1 million and $15 million as of December 31, 2018 and 2017 , respectively. These operating loss carryforwards were attributable to prior acquisitions and will expire from 2019 to 2035. Under IRS rules, our ability to utilize these losses against future income is limited. The net tax value of our state net operating loss carryforwards was $253 million and $241 million as of December 31, 2018 and 2017 , respectively, and they will expire from 2019 to 2038. Our foreign tax credit carryforward was $19 million as of December 31, 2018 and will expire in 2028. We recognize accrued interest and penalties related to income taxes as a component of income tax expense. We recognized $6 million and $5 million of expense in 2018 and 2017 , respectively, and $5 million of benefit in 2016 . The following table presents the accrued balance of tax, interest and penalties related to unrecognized tax benefits: Table 16.4 : Reconciliation of the Change in Unrecognized Tax Benefits (Dollars in millions) Gross Accrued Gross Tax, Balance as of January 1, 2016 $ 130 $ 33 $ 163 Additions for tax positions related to prior years 0 6 6 Reductions for tax positions related to prior years due to IRS and other settlements (45 ) (15 ) (60 ) Balance as of December 31, 2016 85 24 109 Additions for tax positions related to prior years 5 7 12 Reductions for tax positions related to prior years due to IRS and other settlements (4 ) (2 ) (6 ) Balance as of December 31, 2017 86 29 115 Additions for tax positions related to the current year 28 0 28 Additions for tax positions related to prior years 402 25 427 Reductions for tax positions related to prior years due to IRS and other settlements (76 ) (19 ) (95 ) Balance as of December 31, 2018 $ 440 $ 35 $ 475 Portion of balance at December 31, 2018 that, if recognized, would impact the effective income tax rate $ 181 $ 28 $ 209 We are subject to examination by the IRS and other tax authorities in certain countries and states in which we operate. The tax years subject to examination vary by jurisdiction. During 2018, we continued our participation in the IRS Compliance Assurance Process (“CAP”) for our 2017 federal income tax return. On that filed return, we requested a change in method of accounting with respect to the proper timing for the recognition of the costs associated with our reward programs for 2017 and prior years. This method change was granted by the IRS during the fourth quarter of 2018, resulting in the withdrawal of our pending refund claims with respect to this issue for the 2012 and 2013 tax years and resolving this issue up through the 2017 tax year. As in prior years, the examination of our 2017 federal income tax return was substantially completed prior to the filing of the return, with the IRS reserving a limited number of issues for further post-filing review. We continued our participation in CAP for the 2018 tax year, with a similar expectation that the IRS examination will be substantially completed prior to the filing of our 2018 federal income tax return in 2019. We have been accepted into CAP for 2019. During 2018, the Company also entered into settlement agreements with various states to resolve outstanding economic nexus issues for prior tax years. It is reasonably possible that further adjustments to our unrecognized tax benefits may be made within 12 months of the reporting date as a result of future judicial or regulatory interpretations of existing tax laws. At this time, an estimate of the potential change to the amount of unrecognized tax benefits cannot be made. The Tax Act requires that all unremitted earnings of our subsidiaries operating outside the U.S. are deemed to be repatriated as of December 31, 2017. As such, a liability of $111 million was paid with our 2017 federal tax return for the deemed repatriation of $1.5 billion of undistributed foreign earnings. No actual distributions of these earnings have been made as of December 31, 2018. Upon repatriation of these earnings, there would be no additional U.S. federal income taxes. In accordance with the accounting for income taxes in special areas, these earnings are considered by management to be invested indefinitely, except for the earnings of our Philippines subsidiary from which we expect to make distributions in 2019. As of December 31, 2018 , U.S. income taxes of $69 million have not been provided for approximately $287 million |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 17—FAIR VALUE MEASUREMENT Fair value, also referred to as an exit price, is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value accounting guidance provides a three-level fair value hierarchy for classifying financial instruments. This hierarchy is based on the markets in which the assets or liabilities trade and whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. The fair value measurement of a financial asset or liability is assigned a level based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are described below: Level 1: Valuation is based on quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Valuation is based on observable market-based inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Valuation is generated from techniques that use significant assumptions not observable in the market. Valuation techniques include pricing models, discounted cash flow methodologies or similar techniques. The accounting guidance for fair value measurements requires that we maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The accounting guidance provides for the irrevocable option to elect, on a contract-by-contract basis, to measure certain financial assets and liabilities at fair value at inception of the contract and record any subsequent changes in fair value in earnings. We have not made any material fair value option elections as of or for the periods disclosed herein. Fair Value Governance and Control We have a governance framework and a number of key controls that are intended to ensure that our fair value measurements are appropriate and reliable. Our governance framework provides for independent oversight and segregation of duties. Our control processes include review and approval of new transaction types, price verification, and review of valuation judgments, methods, models, process controls and results. Groups independent of our trading and investing functions participate in the review and validation process. Tasks performed by these groups include periodic verification of fair value measurements to determine if assigned fair values are reasonable, including comparing prices from vendor pricing services to other available market information. Our Fair Value Committee (“FVC”), which includes representation from business areas, Risk Management and Finance, provides guidance and oversight to ensure an appropriate valuation control environment. The FVC regularly reviews and approves our fair valuations to ensure that our valuation practices are consistent with industry standards and adhere to regulatory and accounting guidance. We have a model policy, established by an independent Model Risk Office, which governs the validation of models and related supporting documentation to ensure the appropriate use of models for pricing and fair value measurements. The Model Risk Office validates all models and provides ongoing monitoring of their performance. The fair value governance process is set up in a manner that allows the Chairperson of the FVC to escalate valuation disputes that cannot be resolved by the FVC to a more senior committee called the Valuations Advisory Committee (“VAC”) for resolution. The VAC is chaired by the Chief Financial Officer and includes other members of senior management. The VAC convenes to review escalated valuation disputes. Assets and Liabilities Measured at Fair Value on a Recurring Basis In 2018, we adopted ASU No. 2016-01, Financial Instrument-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities and in the fourth quarter of 2018, we early adopted ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The disclosures below reflect the adoption changes. The following describes the valuation techniques used in estimating the fair value of our financial assets and liabilities recorded at fair value on a recurring basis. Investment Securities Quoted prices in active markets are used to measure the fair value of U.S. Treasury securities. For the majority of securities in other investment categories, we utilize multiple vendor pricing services to obtain fair value measurements. A waterfall of pricing vendors is determined in order of preference. The determination of the top-ranked pricing vendor is made on an annual basis as part of an assessment of the performance of pricing services provided by the vendors. A pricing service may be considered as the preferred or primary pricing provider depending on how closely aligned its prices are to other vendor prices, and how consistent the prices are with other available market information. The price of each security is confirmed by comparing with other vendor prices before it is finalized. RMBS and CMBS securities are generally classified as Level 2 or 3. When significant assumptions are not consistently observable, fair values are derived using the best available data. Such data may include quotes provided by dealers, valuation from external pricing services, independent pricing models, or other model-based valuation techniques, for example, calculation of the present values of future cash flows incorporating assumptions such as benchmark yields, spreads, prepayment speeds, credit ratings and losses. Generally, the pricing services utilize observable market data to the extent available. Pricing models may be used, which can vary by asset class and may also incorporate available trade, bid and other market information. Across asset classes, information such as trader/dealer inputs, credit spreads, forward curves and prepayment speeds are used to help determine appropriate valuations. Because many fixed income securities do not trade on a daily basis, the pricing models may apply available information through processes such as benchmarking curves, grouping securities based on their characteristics and using matrix pricing to prepare valuations. In addition, model processes are used by the pricing services to develop prepayment assumptions. We validate the pricing obtained from the primary pricing providers through comparison of pricing to additional sources, including other pricing services, dealer pricing indications in transaction results and other internal sources. Pricing variances among different pricing sources are analyzed. Additionally, on an on-going basis, we request more detailed information from the valuation vendors to understand the pricing methodology and assumptions used to value the securities. Derivative Assets and Liabilities We use both exchange-traded and OTC derivatives to manage our interest rate and foreign currency risk exposures. When quoted market prices are available and used to value our exchange-traded derivatives, we classify them as Level 1. However, predominantly all of our derivatives do not have readily available quoted market prices. Therefore, we value most of our derivatives using vendor-based valuation techniques. We primarily rely on market observable inputs for our models, such as interest rate yield curves, credit curves, option volatility and currency rates. These inputs can vary depending on the type of derivatives and nature of the underlying rate, price or index upon which the value of the derivative is based. We typically classify derivatives as Level 2 when significant inputs can be observed in a liquid market and the model itself does not require significant judgment. When instruments are traded in less liquid markets and significant inputs are unobservable, such as interest rate swaps whose remaining terms do not correlate with market observable interest rate yield curves, such derivatives are classified as Level 3. The impact of credit risk valuation adjustments are considered when measuring the fair value of derivative contracts in order to reflect the credit quality of the counterparty and our own credit quality. Official internal pricing is compared against additional pricing sources such as external valuation agents and other internal sources. Pricing variances among different pricing sources are analyzed and validated. These derivatives are included in other assets or other liabilities on the consolidated balance sheets. Retained Interests in Securitizations We have retained interests in various mortgage securitizations from previous acquisitions. Our retained interests primarily include amounts previously funded under letters of credit to cover losses on certain manufactured housing securitizations, interest-only bonds issued by a trust and negative amortization bonds. We record these retained interests at fair value using market indications and valuation models to calculate the present value of future cash flows. The models incorporate various assumptions that market participants use in estimating future cash flows including constant prepayment rate, discount rate, default rate and loss severity. Due to the use of significant unobservable inputs, retained interests in securitizations are classified as Level 3 under the fair value hierarchy. Deferred Compensation Plan Assets We offer a voluntary non-qualified deferred compensation plan to eligible associates. In addition to participant deferrals, we make contributions to the plan. Participants invest these contributions in a variety of publicly traded mutual funds. The plan assets, which consist of publicly traded mutual funds, are classified as Level 1. The determination of the leveling of financial instruments in the fair value hierarchy is performed at the end of each reporting period. We consider all available information, including observable market data, indications of market liquidity and orderliness, and our understanding of the valuation techniques and significant inputs. Based upon the specific facts and circumstances of each instrument or instrument category, judgments are made regarding the significance of the observable or unobservable inputs to the instruments’ fair value measurement in its entirety. If unobservable inputs are considered significant, the instrument is classified as Level 3. The process for determining fair value using unobservable inputs is generally more subjective and involves a high degree of management judgment and assumptions. The following table displays our assets and liabilities measured on our consolidated balance sheets at fair value on a recurring basis as of December 31, 2018 and 2017 . Table 17.1 : Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2018 Fair Value Measurements Using Netting Adjustments (1) (Dollars in millions) Level 1 Level 2 Level 3 Total Assets: Securities available for sale: U.S. Treasury securities $ 6,144 $ 0 $ 0 — $ 6,144 RMBS 0 33,212 433 — 33,645 CMBS 0 4,729 10 — 4,739 Other securities 219 1,403 0 — 1,622 Total securities available for sale 6,363 39,344 443 — 46,150 Other assets: Derivative assets (2) 0 1,501 38 $ (1,079 ) 460 Other (3) 265 0 158 — 423 Total assets $ 6,628 $ 40,845 $ 639 $ (1,079 ) $ 47,033 Liabilities: Other liabilities: Derivative liabilities (2) $ 0 $ 1,153 $ 48 $ (287 ) $ 914 Total liabilities $ 0 $ 1,153 $ 48 $ (287 ) $ 914 December 31, 2017 Fair Value Measurements Using Netting Adjustments (1) (Dollars in millions) Level 1 Level 2 Level 3 Total Assets: Securities available for sale: U.S. Treasury securities $ 5,171 $ 0 $ 0 — $ 5,171 RMBS 0 27,178 614 — 27,792 CMBS 0 3,161 14 — 3,175 Other securities 320 1,192 5 — 1,517 Total securities available for sale 5,491 31,531 633 — 37,655 Other assets: Derivative assets (2) 1 1,002 37 $ (275 ) 765 Other (3) 281 0 264 — 545 Total assets $ 5,773 $ 32,533 $ 934 $ (275 ) $ 38,965 Liabilities: Other liabilities: Derivative liabilities (2) $ 1 $ 1,243 $ 24 $ (662 ) $ 606 Total liabilities $ 1 $ 1,243 $ 24 $ (662 ) $ 606 __________ (1) Represents balance sheet netting of derivative assets and liabilities, and related payables and receivables for cash collateral held or placed with the same counterparty. See “ Note 10—Derivative Instruments and Hedging Activities ” for additional information. (2) Does not reflect $2 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of both December 31, 2018 and 2017 . Non-performance risk is included in derivative assets and liabilities, which are part of other assets and liabilities on the consolidated balance sheets, and is offset through non-interest income in the consolidated statements of income. (3) As of December 31, 2018 , other includes retained interests in securitizations of $158 million , deferred compensation plan assets of $264 million and equity securities of $1 million . As of December 31, 2017 , other includes consumer MSRs of $92 million , retained interests in securitizations of $172 million and deferred compensation plan assets of $281 million . Level 3 Recurring Fair Val ue Rollforward The table below presents a reconciliation for all assets and liabilities measured and recognized at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2018 , 2017 and 2016 . Generally, transfers into Level 3 were primarily driven by the usage of unobservable assumptions in the pricing of these financial instruments as evidenced by wider pricing variations among pricing vendors and transfers out of Level 3 were primarily driven by the usage of assumptions corroborated by market observable information as evidenced by tighter pricing among multiple pricing sources. Table 17.2 : Level 3 Recurring Fair Value Rollforward Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year Ended December 31, 2018 Total Gains (Losses) (Realized/Unrealized) Net Unrealized (1) (Dollars in millions) Balance, January 1, 2018 Included in Net Income (1) Included in OCI Purchases Sales Issuances Settlements Transfers Into Level 3 Transfers Out of Level 3 Balance, December 31, 2018 Securities available for sale: (2) RMBS $ 614 $ 32 $ (8 ) $ 0 $ 0 $ 0 $ (74 ) $ 203 $ (334 ) $ 433 $ 28 CMBS 14 0 0 0 0 0 (4 ) 0 0 10 0 Other securities 5 0 0 0 0 0 (5 ) 0 0 0 0 Total securities available for sale 633 32 (8 ) 0 0 0 (83 ) 203 (334 ) 443 28 Other assets: Consumer MSRs 92 3 0 0 (97 ) 2 0 0 0 0 0 Retained interest in securitizations 172 (14 ) 0 0 0 0 0 0 0 158 (14 ) Net derivative assets (liabilities) (3) 13 (20 ) 0 0 0 13 (17 ) 0 1 (10 ) (20 ) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year Ended December 31, 2017 Total Gains (Losses) (Realized/Unrealized) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2017 (1) (Dollars in millions) Balance, Included in Net Income (1) Included in OCI Purchases Sales Issuances Settlements Transfers Into Level 3 Transfers Out of Level 3 Balance, December 31, 2017 Securities available for sale: RMBS $ 518 $ 90 $ (24 ) $ 0 $ (116 ) $ 0 $ (92 ) $ 572 $ (334 ) $ 614 $ 19 CMBS 51 0 0 110 (50 ) 0 (4 ) 0 (93 ) 14 0 Other securities 9 0 0 0 0 0 (4 ) 0 0 5 0 Total securities available for sale 578 90 (24 ) 110 (166 ) 0 (100 ) 572 (427 ) 633 19 Other assets: Consumer MSRs 80 (5 ) 0 0 (3 ) 27 (7 ) 0 0 92 (5 ) Retained interest in securitizations 201 (29 ) 0 0 0 0 0 0 0 172 (29 ) Net derivative assets (liabilities) (3) 18 0 0 0 0 46 (44 ) 0 (7 ) 13 0 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year Ended December 31, 2016 Total Gains (Losses) (Realized/Unrealized) Net Unrealized (1) (Dollars in millions) Balance, January 1, 2016 Included in Net Income (1) Included in OCI Purchases Sales Issuances Settlements Transfers Into Level 3 Transfers Out of Level 3 Balance, Securities available for sale: RMBS $ 504 $ 31 $ 9 $ 110 $ 0 $ 0 $ (98 ) $ 380 $ (418 ) $ 518 $ 32 CMBS 97 0 0 266 0 0 (14 ) 64 (362 ) 51 0 Other securities 14 (9 ) 0 44 0 0 (10 ) 0 (30 ) 9 0 Total securities available for sale 615 22 9 420 0 0 (122 ) 444 (810 ) 578 32 Other assets: Consumer MSRs 68 (5 ) 0 0 0 23 (6 ) 0 0 80 (5 ) Retained interest in securitizations 211 (10 ) 0 0 0 0 0 0 0 201 (10 ) Net derivative assets (liabilities) (3) 30 (5 ) 0 0 0 36 (33 ) 0 (10 ) 18 (5 ) __________ (1) Realized gains (losses) on securities available for sale are included in net securities gains (losses), retained interests in securitizations and consumer MSRs are reported as a component of non-interest income in our consolidated statements of income. Gains (losses) on derivatives are included as a component of net interest income or non-interest income in our consolidated statements of income. (2) Net unrealized losses included in other comprehensive income related to Level 3 securities available for sale still held as of December 31, 2018 were $17 million . (3) Includes derivative assets and liabilities of $38 million and $48 million , respectively, as of December 31, 2018 , $37 million and $24 million , respectively, as of December 31, 2017 , and $47 million and $29 million , respectively, as of December 31, 2016 . Significant Level 3 Fair Value Asset and Liability Inputs Generally, uncertainties in fair value measurements of financial instruments, such as changes in unobservable inputs, may have a significant impact on fair value. Certain of these unobservable inputs will, in isolation, have a directionally consistent impact on the fair value of the instrument for a given change in that input. Alternatively, the fair value of the instrument may move in an opposite direction for a given change in another input. In general, an increase in the discount rate, default rates, loss severity and credit spreads, in isolation, would result in a decrease in the fair value measurement. In addition, an increase in default rates would generally be accompanied by a decrease in recovery rates, slower prepayment rates and an increase in liquidity spreads. Techniques and Inputs for Level 3 Fair Value Measurements The following table presents the significant unobservable inputs used to determine the fair values of our Level 3 financial instruments on a recurring basis. We utilize multiple vendor pricing services to obtain fair value for our securities. Several of our vendor pricing services are only able to provide unobservable input information for a limited number of securities due to software licensing restrictions. Other vendor pricing services are able to provide unobservable input information for all securities for which they provide a valuation. As a result, the unobservable input information for the securities available for sale presented below represents a composite summary of all information we are able to obtain. The unobservable input information for all other Level 3 financial instruments is based on the assumptions used in our internal valuation models. Table 17.3 : Quantitative Information about Level 3 Fair Value Measurements Quantitative Information about Level 3 Fair Value Measurements (Dollars in millions) Fair Value at December 31, Significant Valuation Techniques Significant Unobservable Inputs Range Weighted Average (1) Securities available for sale: RMBS $ 433 Discounted cash flows (vendor pricing) Yield 3-11% 5% CMBS 10 Discounted cash flows (vendor pricing) Yield 3% 3% Other assets: Retained interests in securitization (2) 158 Discounted cash flows Life of receivables (months) 3-56 N/A Net derivative assets (liabilities) (10 ) Discounted cash flows Swap rates 3% 3% Quantitative Information about Level 3 Fair Value Measurements (Dollars in millions) Fair Value at December 31, 2017 Significant Valuation Techniques Significant Unobservable Inputs Range Weighted Average Securities available for sale: RMBS $ 614 Discounted cash flows (vendor pricing) Yield 2-9% 5% CMBS 14 Discounted cash flows (vendor pricing) Yield 3% 3% Other securities 5 Discounted cash flows Yield 2% 2% Other assets: Consumer MSRs 92 Discounted cash flows Total prepayment rate 7-30% 16% Retained interests in securitization (2) 172 Discounted cash flows Life of receivables (months) 6-79 N/A Net derivative assets (liabilities) 13 Discounted cash flows Swap rates 2% 2% __________ (1) Weighted averages are calculated by using the product of the input multiplied by the relative fair value of the instruments. (2) Due to the nature of the various mortgage securitization structures in which we have retained interests, it is not meaningful to present a consolidated weighted average for the significant unobservable inputs. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We are required to measure and recognize certain assets at fair value on a nonrecurring basis on the consolidated balance sheets. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, from the application of lower of cost or fair value accounting or when we evaluate for impairment). The following describes the valuation techniques used in estimating the fair value of our financial assets and liabilities recorded at fair value on a nonrecurring basis. Net Loans Held for Investment For loans held for investment that are recorded at fair value on our consolidated balance sheets and measured on a nonrecurring basis, the fair value is determined using appraisal values that are obtained from independent appraisers, broker pricing opinions or other available market information, adjusted for the estimated cost to sell. Due to the use of significant unobservable inputs, these loans are classified as Level 3 under the fair value hierarchy. Fair value adjustments for individually impaired collateralized loans held for investment are recorded in provision for credit losses in the consolidated statements of income. Loans Held for Sale Loans held for sale are carried at the lower of aggregate cost, net of deferred fees and deferred origination costs, or fair value. We originate loans with the intent to sell them. Certain commercial mortgage loans are sold to government-sponsored enterprises as part of a delegated underwriting and servicing (“DUS”) program. For DUS commercial mortgage loans, the fair value is estimated primarily using contractual prices and other market observable inputs. Credit card loans held for sale are valued based on other market observable inputs. These assets are therefore classified as Level 2. Fair value adjustments to loans held for sale are recorded in other non-interest income in our consolidated statements of income. Other Assets Other assets subject to nonrecurring fair value measurements include equity investments accounted for under measurement alternative, foreclosed property, other repossessed assets and long-lived assets held for sale. These assets held for sale are carried at the lower of the carrying amount or fair value less costs to sell. The fair value is determined based on the appraisal value, listing price of the property or collateral provided by independent appraisers, and is adjusted for the estimated costs to sell. Due to the use of significant unobservable inputs, these assets are classified as Level 3 under the fair value hierarchy. Fair value adjustments for these assets are recorded in other non-interest expense in the consolidated statements of income. The following table presents the carrying value of the assets measured at fair value on a nonrecurring basis and still held as of December 31, 2018 and 2017 , and for which a nonrecurring fair value measurement was recorded during the year then ended: Table 17.4 : Nonrecurring Fair Value Measurements December 31, 2018 Estimated Fair Value Hierarchy Total (Dollars in millions) Level 2 Level 3 Loans held for investment $ 0 $ 129 $ 129 Loans held for sale 38 0 38 Other assets (1) 0 100 100 Total $ 38 $ 229 $ 267 December 31, 2017 Estimated Fair Value Hierarchy Total (Dollars in millions) Level 2 Level 3 Loans held for investment $ 0 $ 182 $ 182 Loans held for sale 177 1 178 Other assets (1) 0 35 35 Total $ 177 $ 218 $ 395 __________ (1) As of December 31, 2018 , other assets included equity investments accounted for under measurement alternative of $24 million , foreclosed property and repossessed assets of $57 million and long-lived assets held for sale of $19 million . As of December 31, 2017 , other assets included foreclosed property and repossessed assets of $17 million and long-lived assets held for sale of $18 million . In the above table, loans held for investment are generally valued based in part on the estimated fair value of the underlying collateral and the non-recoverable rate, which is considered to be a significant unobservable input. The non-recoverable rate ranged from 0% to 84% , with a weighted average of 33% , and from 0% to 77% , with a weighted average of 21% , as of December 31, 2018 and 2017 , respectively. The weighted average non-recoverable rate is calculated based on the estimated market value of the underlying collateral. The significant unobservable inputs and related quantitative information related to fair value of the other assets are not meaningful to disclose as they vary significantly across properties and collateral. The following table presents total nonrecurring fair value measurements for the period, included in earnings, attributable to the change in fair value relating to assets that are still held at December 31, 2018 , 2017 and 2016 . Table 17.5 : Nonrecurring Fair Value Measurements Included in Earnings Total Gains (Losses) Year Ended December 31, (Dollars in millions) 2018 2017 2016 Loans held for investment $ (85 ) $ (100 ) $ (230 ) Loans held for sale 0 (3 ) (2 ) Other assets (1) (74 ) (12 ) (19 ) Total $ (159 ) $ (115 ) $ (251 ) __________ (1) Other assets include fair value adjustments related to equity investments accounted for under the measurement alternative, foreclosed property, repossessed assets and long-lived assets held for sale. Fair Value of Financial Instruments The following table presents the carrying value and estimated fair value, including the level within the fair value hierarchy, of our financial instruments that are not measured at fair value on a recurring basis on our consolidated balance sheets as of December 31, 2018 and 2017 . Table 17.6 : Fair Value of Financial Instruments December 31, 2018 Carrying Value Estimated Fair Value Estimated Fair Value Hierarchy (Dollars in millions) Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 13,186 $ 13,186 $ 4,768 $ 8,418 $ 0 Restricted cash for securitization investors 303 303 303 0 0 Securities held to maturity 36,771 36,619 0 36,513 106 Net loans held for investment 238,679 241,556 0 0 241,556 Loans held for sale 1,192 1,218 0 1,218 0 Interest receivable 1,614 1,614 0 1,614 0 Other investments (1) 1,725 1,725 0 1,725 0 Financial liabilities: Deposits with defined maturities 38,471 38,279 0 38,279 0 Securitized debt obligations 18,307 18,359 0 18,359 0 Senior and subordinated notes 30,826 30,635 0 30,635 0 Federal funds purchased and securities loaned or sold under agreements to repurchase 352 352 0 352 0 Other borrowings (2) 9,354 9,354 0 9,354 0 Interest payable 458 458 0 458 0 December 31, 2017 Carrying Value Estimated Fair Value Estimated Fair Value Hierarchy (Dollars in millions) Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 14,040 $ 14,040 $ 4,458 $ 9,582 $ 0 Restricted cash for securitization investors 312 312 312 0 0 Securities held to maturity 28,984 29,437 200 29,217 20 Net loans held for investment 246,971 251,468 0 0 251,468 Loans held for sale 971 952 0 949 3 Interest receivable 1,536 1,536 0 1,536 0 Other investments (1) 1,689 1,689 0 1,680 9 Financial liabilities: Deposits 243,702 243,732 26,404 217,328 0 Securitized debt obligations 20,010 20,122 0 20,122 0 Senior and subordinated notes 30,755 31,392 0 31,392 0 Federal funds purchased and securities loaned or sold under agreements to repurchase 576 576 0 576 0 Other borrowings (2) 8,892 8,892 0 8,892 0 Interest payable 413 413 0 413 0 __________ (1) Other investments as of December 31, 2018 include FHLB and Federal Reserve stock. Other investments as of December 31, 2017 include FHLB and Federal Reserve stock, as well as cost method investments. These investments are included in other assets on our consolidated balance sheets. (2) |
Business Segments and Revenue f
Business Segments and Revenue from Contracts with Customers Business Segments and Revenue from Contracts with Customers (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | NOTE 18—BUSINESS SEGMENTS AND REVENUE FROM CONTRACTS WITH CUSTOMERS Our principal operations are organized into three major business segments, which are defined primarily based on the products and services provided or the type of customer served: Credit Card, Consumer Banking and Commercial Banking. The operations of acquired businesses have been integrated into our existing business segments. Certain activities that are not part of a segment, such as management of our corporate investment portfolio, asset/liability management by our centralized Corporate Treasury group and residual tax expense or benefit to arrive at the consolidated effective tax rate that is not assessed to our primary business segments, are included in the Other category. • Credit Card: Consists of our domestic consumer and small business card lending, and international card businesses in Canada and the United Kingdom. • Consumer Banking: Consists of our branch-based deposit gathering and lending activities for consumers and small businesses, national deposit gathering and national auto lending. • Commercial Banking: Consists of our lending, deposit gathering, capital markets and treasury management services to commercial real estate and commercial and industrial customers. Our commercial and industrial customers typically include companies with annual revenues between $20 million and $2 billion . • Other category: Includes the residual impact of the allocation of our centralized Corporate Treasury group activities, such as management of our corporate investment portfolio and asset/liability management, to our business segments. Accordingly, net gains and losses on our investment securities portfolio and certain trading activities are included in the Other category. Other category also includes foreign exchange-rate fluctuations on foreign currency-denominated transactions; unallocated corporate expenses that do not directly support the operations of the business segments or for which the business segments are not considered financially accountable in evaluating their performance, such as certain restructuring charges; certain material items that are non-recurring in nature; offsets related to certain line-item reclassifications; and residual tax expense or benefit to arrive at the consolidated effective tax rate that is not assessed to our primary business segments . Basis of Presentation We report the results of each of our business segments on a continuing operations basis. The results of our individual businesses reflect the manner in which management evaluates performance and makes decisions about funding our operations and allocating resources. Business Segment Reporting Methodology The results of our business segments are intended to present each segment as if it were a stand-alone business. Our internal management and reporting process used to derive our segment results employs various allocation methodologies, including funds transfer pricing, to assign certain balance sheet assets, deposits and other liabilities and their related revenue and expenses directly or indirectly attributable to each business segment. Our funds transfer pricing process provides a funds credit for sources of funds, such as deposits generated by our Consumer Banking and Commercial Banking businesses, and a funds charge for the use of funds by each segment. Due to the integrated nature of our business segments, estimates and judgments have been made in allocating certain revenue and expense items. Transactions between segments are based on specific criteria or approximate third-party rates. We regularly assess the assumptions, methodologies and reporting classifications used for segment reporting, which may result in the implementation of refinements or changes in future periods. The following is additional information on the principles and methodologies used in preparing our business segment results. • Net interest income: Interest income from loans held for investment and interest expense from deposits and other interest-bearing liabilities are reflected within each applicable business segment. Because funding and asset/liability management are managed centrally by our Corporate Treasury group, net interest income for our business segments also includes the results of a funds transfer pricing process that is intended to allocate a cost of funds used or credit for funds provided to all business segment assets and liabilities, respectively, using a matched funding concept. The taxable-equivalent benefit of tax-exempt products is also allocated to each business unit with a corresponding increase in income tax expense. • Non-interest income: Non-interest fees and other revenue associated with loans or customers managed by each business segment and other direct revenues are accounted for within each business segment. • Provision for credit losses: The provision for credit losses is directly attributable to the business segment in accordance with the loans each business segment manages. • Non-interest expense: Non-interest expenses directly managed and incurred by a business segment are accounted for within each business segment. We allocate certain non-interest expenses indirectly incurred by business segments, such as corporate support functions, to each business segment based on various factors, including the actual cost of the services from the service providers, the utilization of the services, the number of employees or other relevant factors. • Goodwill and intangible assets: Goodwill and intangible assets that are not directly attributable to business segments are assigned to business segments based on the relative fair value of each segment. Intangible amortization is included in the results of the applicable segment. • Income taxes: Income taxes are assessed for each business segment based on a standard tax rate with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in the Other category. • Loans held for investment: Loans are reported within each business segment based on product or customer type served by that business segment. • Deposits: Deposits are reported within each business segment based on product or customer type served by that business segment. Segment Results and Reconciliation We may periodically change our business segments or reclassify business segment results based on modifications to our management reporting methodologies or changes in organizational alignment. In the first quarter of 2018, we made a change in how revenue is measured in our Commercial Banking business to include the tax benefits of losses on certain tax-advantaged investments. These tax benefits are included in revenue on a taxable-equivalent basis within our Commercial Banking business, with an offsetting reduction in the Other category. This change in measurement of our Commercial Banking revenue did not have any impact to the consolidated financial statements. The following tables present our business segment results for the years ended December 31, 2018 , 2017 and 2016 , selected balance sheet data as of December 31, 2018 , 2017 and 2016 , and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits. Table 18.1 : Segment Results and Reconciliation Year Ended December 31, 2018 (Dollars in millions) Credit Consumer Commercial (1)(2) Other (1)(2)(3) Consolidated Net interest income $ 14,167 $ 6,549 $ 2,152 $ 7 $ 22,875 Non-interest income 3,520 663 744 274 5,201 Total net revenue 17,687 7,212 2,896 281 28,076 Provision (benefit) for credit losses 4,984 838 83 (49 ) 5,856 Non-interest expense 8,542 4,027 1,654 679 14,902 Income (loss) from continuing operations before income taxes 4,161 2,347 1,159 (349 ) 7,318 Income tax provision (benefit) 970 547 270 (494 ) 1,293 Income from continuing operations, net of tax $ 3,191 $ 1,800 $ 889 $ 145 $ 6,025 Loans held for investment $ 116,361 $ 59,205 $ 70,333 $ 0 $ 245,899 Deposits 0 198,607 29,480 21,677 249,764 Year Ended December 31, 2017 (Dollars in millions) Credit Consumer Commercial (1) Other (1) Consolidated Net interest income $ 13,648 $ 6,380 $ 2,261 $ 171 $ 22,460 Non-interest income 3,325 749 708 (5 ) 4,777 Total net revenue 16,973 7,129 2,969 166 27,237 Provision for credit losses 6,066 1,180 301 4 7,551 Non-interest expense 7,916 4,233 1,603 442 14,194 Income (loss) from continuing operations before income taxes 2,991 1,716 1,065 (280 ) 5,492 Income tax provision 1,071 626 389 1,289 3,375 Income (loss) from continuing operations, net of tax $ 1,920 $ 1,090 $ 676 $ (1,569 ) $ 2,117 Loans held for investment $ 114,762 $ 75,078 $ 64,575 $ 58 $ 254,473 Deposits 0 185,842 33,938 23,922 243,702 Year Ended December 31, 2016 (Dollars in millions) Credit Card Consumer Banking Commercial (1) Other (1) Consolidated Total Net interest income $ 12,635 $ 5,829 $ 2,216 $ 193 $ 20,873 Non-interest income 3,380 733 578 (63 ) 4,628 Total net revenue 16,015 6,562 2,794 130 25,501 Provision (benefit) for credit losses 4,926 1,055 483 (5 ) 6,459 Non-interest expense 7,703 4,139 1,407 309 13,558 Income (loss) from continuing operations before income taxes 3,386 1,368 904 (174 ) 5,484 Income tax provision (benefit) 1,226 498 329 (339 ) 1,714 Income from continuing operations, net of tax $ 2,160 $ 870 $ 575 $ 165 $ 3,770 Loans held for investment $ 105,552 $ 73,054 $ 66,916 $ 64 $ 245,586 Deposits 0 181,917 33,866 20,985 236,768 _________ (1) Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate (21% for 2018 and 35% for 2017 and 2016) and state taxes where applicable, with offsetting reductions to the Other category. (2) In 2018, we made a change in how revenue is measured in our Commercial Banking business to include the tax benefits of losses on certain tax-advantaged investments. These tax benefits are included in revenue on a taxable-equivalent basis within our Commercial Banking business, with an offsetting reduction to the Other category. In addition, all revenue presented on a taxable-equivalent basis in our Commercial Banking business was impacted by the reduction of the federal tax rate set forth in the Tax Act. The net impact of the measurement change and the reduction of the federal tax rate was a decrease of $126 million in revenue in our Commercial Banking business for the year ended December 31, 2018 , with an offsetting impact to the Other category. (3) In 2018, we sold all of our consumer home loan portfolio and recognized a gain of approximately $499 million in the Other category, including a benefit for credit losses of $46 million . Revenue from Contracts with Customers In 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) under the modified retrospective transition method. The majority of our revenue from contracts with customers consists of interchange fees in our Credit Card business, service charges and other customer-related fees, and other contract revenue in our Consumer Banking and Commercial Banking businesses. Interchange fees are primarily from our Credit Card business and are recognized upon settlement with the interchange networks, net of rewards earned by customers. Service charges and other customer-related fees within our Consumer Banking business are primarily related to fees earned on consumer deposit accounts for account maintenance and various transaction-based services such as overdrafts and ATM usage. Service charges and other customer-related fees within our Commercial Banking business are mostly related to fees earned on treasury management and capital markets services. Other contract revenue consists primarily of revenue earned on certain marketing and promotional events from our auto dealers within our Consumer Banking business. Revenue from contracts with customers is included in non-interest income in our consolidated statements of income. The following table presents revenue from contracts with customers and a reconciliation to non-interest income by business segment for the year ended December 31, 2018 . Table 18.2 : Revenue from Contracts with Customers and Reconciliation to Segments Results Year Ended December 31, 2018 (Dollars in millions) Credit Consumer Commercial (1) Other (1) Consolidated Contract revenue: Interchange fees, net (2) $ 2,609 $ 185 $ 33 $ (4 ) $ 2,823 Service charges and other customer-related fees 0 367 123 (1 ) 489 Other 8 109 2 0 119 Total contract revenue 2,617 661 158 (5 ) 3,431 Revenue from other sources 903 2 586 279 1,770 Total non-interest income $ 3,520 $ 663 $ 744 $ 274 $ 5,201 __________ (1) Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reclassifications to the Other category. (2) Interchange fees are presented net of customer reward expenses of $4.4 billion |
Commitments, Contingencies, Gua
Commitments, Contingencies, Guarantees, and Others | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, Guarantees and Others | NOTE 19—COMMITMENTS, CONTINGENCIES, GUARANTEES AND OTHERS Commitments to Lend Our unfunded lending commitments primarily consist of credit card lines, loan commitments to customers of both our Commercial Banking and Consumer Banking businesses, as well as standby and commercial letters of credit. These commitments, other than credit card lines, are legally binding conditional agreements that have fixed expirations or termination dates and specified interest rates and purposes. The contractual amount of these commitments represents the maximum possible credit risk to us should the counterparty draw upon the commitment. We generally manage the potential risk of unfunded lending commitments by limiting the total amount of arrangements, monitoring the size and maturity structure of these portfolios, and applying the same credit standards for all of our credit activities. For unused credit card lines, we have not experienced and do not anticipate that all of our customers will access their entire available line at any given point in time. Commitments to extend credit other than credit card lines generally require customers to maintain certain credit standards. Collateral requirements and loan-to-value (“LTV”) ratios are the same as those for funded transactions and are established based on management’s credit assessment of the customer. These commitments may expire without being drawn upon; therefore, the total commitment amount does not necessarily represent future funding requirements. We also issue letters of credit, such as financial standby, performance standby and commercial letters of credit, to meet the financing needs of our customers. Standby letters of credit are conditional commitments issued by us to guarantee the performance of a customer to a third party in a borrowing arrangement. Commercial letters of credit are short-term commitments issued primarily to facilitate trade finance activities for customers and are generally collateralized by the goods being shipped to the client. These collateral requirements are similar to those for funded transactions and are established based on management’s credit assessment of the customer. Management conducts regular reviews of all outstanding letters of credit and the results of these reviews are considered in assessing the adequacy of reserves for unfunded lending commitments. The following table presents the contractual amount and carrying value of our unfunded lending commitments as of December 31, 2018 and 2017 . The carrying value represents our reserve and deferred revenue on legally binding commitments. Table 19.1 : Unfunded Lending Commitments: Contractual Amount and Carrying Value Contractual Amount Carrying Value (Dollars in millions) December 31, December 31, December 31, December 31, Credit card lines $ 346,186 $ 351,481 N/A N/A Other loan commitments (1) 34,449 31,840 $ 95 $ 84 Standby letters of credit and commercial letters of credit (2) 1,792 2,046 29 43 Total unfunded lending commitments $ 382,427 $ 385,367 $ 124 $ 127 __________ (1) Includes $1.3 billion and $1.0 billion of advised lines of credit as of December 31, 2018 and 2017 , respectively. (2) These financial guarantees have expiration dates ranging from 2019 to 2025 as of December 31, 2018 . Loss Sharing Agreements and Other Obligations Within our Commercial Banking business, we originate multifamily commercial real estate loans with the intent to sell them to the GSEs. We enter into loss sharing agreements with the GSEs upon the sale of the loans. At inception, we record a liability representing the fair value of our obligation which is subsequently amortized as we are released from risk of payment under the loss sharing agreement. If payment under the loss sharing agreement becomes probable and estimable, an additional liability may be recorded on the consolidated balance sheets and a non-interest expense may be recognized in the consolidated statements of income. The liability recognized on our consolidated balance sheets for our loss sharing agreements was $59 million and $60 million as of December 31, 2018 and 2017 , respectively. U.K. Payment Protection Insurance In the U.K., we previously sold payment protection insurance (“PPI”). In response to an elevated level of customer complaints across the industry, heightened media coverage and pressure from consumer advocacy groups, the U.K. Financial Conduct Authority (“FCA”), formerly the Financial Services Authority, investigated and raised concerns about the way the industry has handled complaints related to the sale of these insurance policies. For the past several years, the U.K.’s Financial Ombudsman Service (“FOS”) has been adjudicating customer complaints relating to PPI, escalated to it by consumers who disagree with the rejection of their complaint by firms, leading to customer remediation payments by us and others within the industry. On March 2, 2017, the FCA issued a statement that sets out final rules and guidance on the PPI complaints deadline, which has been set as August 29, 2019. The statement also provides clarity on how to handle PPI complaints under s.140A of the Consumer Credit Act, including guidance on how redress for such complaints should be calculated. The final rules and guidance came into force on August 29, 2017. In determining our best estimate of incurred losses for future remediation payments, management considers numerous factors, including (i) the number of customer complaints we expect in the future; (ii) our expectation of upholding those complaints; (iii) the expected number of complaints customers escalate to the FOS; (iv) our expectation of the FOS upholding such escalated complaints; (v) the number of complaints that fall under s.140A of the Consumer Credit Act; (vi) the number of litigation claims being pursued under s.140A of the Consumer Credit Act; and (vii) the estimated remediation payout to customers. We monitor these factors each quarter and adjust our reserves to reflect the latest data. Management’s best estimate of incurred losses related to U.K. PPI totaled $133 million and $249 million as of December 31, 2018 and 2017 , respectively. In 2018 , we recognized additional charges of $99 million to reflect greater than expected complaint volumes. Other movements to the reserve were a combination of utilization of the reserve through customer refund payments and foreign exchange movements. Our best estimate of reasonably possible future losses beyond our reserve as of December 31, 2018 is approximately $100 million . Litigation In accordance with the current accounting standards for loss contingencies, we establish reserves for litigation related matters that arise from the ordinary course of our business activities when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss can be reasonably estimated. None of the amounts we currently have recorded individually or in the aggregate are considered to be material to our financial condition. Litigation claims and proceedings of all types are subject to many uncertain factors that generally cannot be predicted with assurance. Below we provide a description of potentially material legal proceedings and claims. For some of the matters disclosed below, we are able to estimate reasonably possible losses above existing reserves, and for other disclosed matters, such an estimate is not possible at this time. For those matters below where an estimate is possible, management currently estimates the reasonably possible future losses beyond our reserves as of December 31, 2018 are approximately $1.1 billion . Our reserve and reasonably possible loss estimates involve considerable judgment and reflect that there is still significant uncertainty regarding numerous factors that may impact the ultimate loss levels. Notwithstanding our attempt to estimate a reasonably possible range of loss beyond our current accrual levels for some litigation matters based on current information, it is possible that actual future losses will exceed both the current accrual level and the range of reasonably possible losses disclosed here. Given the inherent uncertainties involved in these matters, especially those involving governmental agencies, and the very large or indeterminate damages sought in some of these matters, there is significant uncertainty as to the ultimate liability we may incur from these litigation matters and an adverse outcome in one or more of these matters could be material to our results of operations or cash flows for any particular reporting period. Interchange In 2005, a putative class of retail merchants filed antitrust lawsuits against MasterCard and Visa and several issuing banks, including Capital One, seeking both injunctive relief and monetary damages for an alleged conspiracy by defendants to fix the level of interchange fees. Other merchants have asserted similar claims in separate lawsuits, and while these separate cases did not name any issuing banks, Visa, MasterCard and issuers, including Capital One, have entered settlement and judgment sharing agreements allocating the liabilities of any judgment or settlement arising from all interchange-related cases. The lawsuits were consolidated before the U.S. District Court for the Eastern District of New York for certain purposes and were settled in 2012. The class settlement, however, was invalidated by the United States Court of Appeals for the Second Circuit in June 2016, and the suit was separated into separate class actions seeking injunctive and monetary relief, respectively. In addition, numerous merchant groups opted out of the 2012 settlement and have pursued their own claims. The claims by the injunctive relief class have not been resolved, but the parties reached a new settlement agreement with the monetary damages class in August 2018, whereby the class would receive up to approximately $6.2 billion collectively from the defendants in exchange for a release of their claims, depending on the percentage of class plaintiffs who opt out. The trial court preliminarily approved the settlement in January 2019. Visa and MasterCard have also settled several of the opt-out cases, which required non-material payments from issuing banks, including Capital One. Visa created a litigation escrow account following its IPO of stock in 2008 that funds settlements for its member banks, and any settlements related to MasterCard-allocated losses have either already been paid or are reflected in Capital One’s reserves. Mortgage Representation and Warranty We face residual exposure related to subsidiaries that originated residential mortgage loans and sold these loans to various purchasers, including purchasers who created securitization trusts. In connection with their sales of mortgage loans, these subsidiaries entered into agreements containing varying representations and warranties about, among other things, the ownership of the loan, the validity of the lien securing the loan, the loan’s compliance with any applicable criteria established by the purchaser, including underwriting guidelines and the existence of mortgage insurance, and the loan’s compliance with applicable federal, state and local laws. Each of these subsidiaries may be required to repurchase mortgage loans or indemnify certain purchasers and others against losses they incur in the event of certain breaches of these representations and warranties. The substantial majority of our representation and warranty exposure has been resolved through litigation, and our remaining representation and warranty exposure is almost entirely litigation-related. Accordingly, we establish litigation reserves for representation and warranty losses that we consider to be both probable and reasonably estimable. The reserve process relies heavily on estimates, which are inherently uncertain, and requires the application of judgment. Our reserves and estimates of reasonably possible losses could be impacted by claims which may be brought by securitization trustees and sponsors, bond-insurers, investors, and GSEs, as well as claims brought by governmental agencies under the Financial Institutions Reform, Recovery and Enforcement Act (“FIRREA”), the False Claims Act or other federal or state statutes. In May, June and July 2012, the Federal Housing Finance Agency (“FHFA”) (acting as conservator for Freddie Mac) filed three summonses with notice in the New York state court against GreenPoint, on behalf of the trustees for three RMBS trusts backed by loans originated by GreenPoint with an aggregate original principal balance of $3.4 billion . In January 2013, the plaintiffs filed an amended consolidated complaint in the name of the three trusts, acting by the respective trustees, alleging breaches of contractual representations and warranties regarding compliance with GreenPoint underwriting guidelines relating to certain loans (“FHFA Litigation”). Plaintiffs seek specific performance of the repurchase obligations with respect to the loans for which they have provided notice of alleged breaches as well as all other allegedly breaching loans, rescissory damages, indemnification, costs and interest. On March 29, 2017, the trial court granted GreenPoint’s motion for summary judgment and dismissed plaintiff’s claims as untimely. The plaintiff appealed to the Second Circuit, which affirmed the dismissal on February 6, 2019. Anti-Money Laundering Capital One is subject to an open consent order with the Office of the Comptroller of the Currency (“OCC”) dated July 10, 2015 relating to our anti-money laundering (“AML”) program. In October 2018, Capital One paid a civil monetary penalty of $100 million to resolve the monetary component of the AML consent order. Capital One continues to be investigated by the New York District Attorney’s Office (“NYDA”), the Department of Justice (“DOJ”) and the Financial Crimes Enforcement Network (“FinCEN”) of the U.S. Department of Treasury primarily with respect to certain former check casher clients of the Commercial Banking business and Capital One’s AML program. Capital One is cooperating with all agencies involved in the investigation. We are in discussions with FinCEN to explore a potential regulatory resolution of its investigation, which could include a monetary penalty. Other Pending and Threatened Litigation |
Capital One Financial Corporati
Capital One Financial Corporation (Parent Company Only) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Capital One Financial Corporation (Parent Company Only) | The following parent company only financial statements are prepared in accordance with Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”). Table 20.1 : Parent Company Statements of Income Year Ended December 31, (Dollars in millions) 2018 2017 2016 Interest income $ 313 $ 178 $ 120 Interest expense 720 381 258 Dividends from subsidiaries 2,750 300 3,936 Non-interest income (loss) 19 19 (13 ) Non-interest expense 29 34 48 Income before income taxes and equity in undistributed earnings of subsidiaries 2,333 82 3,737 Income tax benefit (128 ) (103 ) (79 ) Equity in undistributed earnings of subsidiaries 3,554 1,797 (65 ) Net income 6,015 1,982 3,751 Other comprehensive income (loss), net of tax (136 ) 23 (333 ) Comprehensive income $ 5,879 $ 2,005 $ 3,418 Table 20.2 : Parent Company Balance Sheets December 31, December 31, (Dollars in millions) 2018 2017 Assets: Cash and cash equivalents $ 10,286 $ 8,196 Investments in subsidiaries 58,154 54,712 Loans to subsidiaries 2,603 548 Securities available for sale 795 907 Other assets 1,250 729 Total assets $ 73,088 $ 65,092 Liabilities: Senior and subordinated notes $ 19,518 $ 14,392 Borrowings from subsidiaries 1,671 1,633 Accrued expenses and other liabilities 231 337 Total liabilities 21,420 16,362 Total stockholders’ equity 51,668 48,730 Total liabilities and stockholders’ equity $ 73,088 $ 65,092 Table 20.3 : Parent Company Statements of Cash Flows Year Ended December 31, (Dollars in millions) 2018 2017 2016 Operating activities: Net income $ 6,015 $ 1,982 $ 3,751 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed earnings of subsidiaries (3,554 ) (1,797 ) 65 Other operating activities (35 ) 327 (10 ) Net cash from operating activities 2,426 512 3,806 Investing activities: Net payments to subsidiaries (577 ) (4,956 ) (163 ) Proceeds from paydowns and maturities of securities available for sale 140 130 71 Changes in loans to subsidiaries (2,055 ) 44 (71 ) Net cash from investing activities (2,492 ) (4,782 ) (163 ) Financing activities: Borrowings: Changes in borrowings from subsidiaries 38 23 19 Issuance of senior and subordinated notes 5,227 6,948 1,487 Proceeds from paydowns and maturities of senior and subordinated notes 0 (804 ) (1,750 ) Common stock: Net proceeds from issuances 175 164 131 Dividends paid (773 ) (780 ) (812 ) Preferred stock: Net proceeds from issuances 0 0 1,066 Dividends paid (265 ) (265 ) (214 ) Purchases of treasury stock (2,284 ) (240 ) (3,661 ) Proceeds from share-based payment activities 38 124 142 Net cash from financing activities 2,156 5,170 (3,592 ) Changes in cash and cash equivalents 2,090 900 51 Cash and cash equivalents, beginning of the period 8,196 7,296 7,245 Cash and cash equivalents, end of the period $ 10,286 $ 8,196 $ 7,296 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 21—RELATED PARTY TRANSACTIONS |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”). |
Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the related disclosures. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgments, actual amounts or results could differ from these estimates. Certain prior period amounts have been reclassified to conform to the current period presentation. |
Principles of Consolidation | The consolidated financial statements include the accounts of Capital One Financial Corporation and all other entities in which we have a controlling financial interest. We determine whether we have a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity (“VOE”) or a variable interest entity (“VIE”). All significant intercompany account balances and transactions have been eliminated. |
Voting Interest Entities | VOEs are entities that have sufficient equity and provide the equity investors voting rights that give them the power to make significant decisions relating to the entity’s operations. Since a controlling financial interest in an entity is typically obtained through ownership of a majority voting interest, we consolidate our majority-owned subsidiaries and other voting interest entities in which we hold, directly or indirectly, more than 50% of the voting rights or where we exercise control through other contractual rights. |
Equity and Cost Method Investments | Investments in entities where we do not have a controlling financial interest but we have significant influence over the entity’s financial and operating decisions (generally defined as owning a voting interest of 20% to 50%) are accounted for under the equity method. If we own less than 20% of a voting interest entity, we generally measure equity investments at fair value with changes in fair value recorded through net income, except those that do not have a readily determinable fair value (for which a measurement alternative can be elected). We report equity investments in other assets on our consolidated balance sheets and include our share of income or loss and dividends from those investments in other non-interest income in our consolidated statements of income. |
Variable Interest Entities | VIEs are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties; or (ii) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and is required to consolidate the VIE. An entity is deemed to be the primary beneficiary of a VIE if that entity has both (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In determining whether we are the primary beneficiary of a VIE, we consider both qualitative and quantitative factors regarding the nature, size and form of our involvement with the VIE, such as our role in establishing the VIE and our ongoing rights and responsibilities; our economic interests, including debt and equity investments, servicing fees and other arrangements deemed to be variable interests in the VIE; the design of the VIE, including the capitalization structure, subordination of interests, payment priority, relative share of interests held across various classes within the VIE’s capital structure and the reasons why the interests are held by us. We perform on-going reassessments to evaluate whether changes in an entity’s capital structure or changes in the nature of our involvement with the entity result in a change to the VIE designation or a change to our consolidation conclusion. See “ Note 6—Variable Interest Entities and Securitizations |
Cash and Cash Equivalents | Cash and cash equivalents include cash and due from banks, interest-bearing deposits and other short-term investments, all of which, if applicable, have stated maturities of three months or less when acquired. |
Securities Resale and Repurchase Agreements | Securities purchased under resale agreements and securities loaned or sold under agreements to repurchase, principally U.S. government and agency obligations, are not accounted for as sales but as collateralized financing transactions and recorded at the amounts at which the securities were acquired or sold, plus accrued interest. We continually monitor the market value of these securities and deliver additional collateral to or obtain additional collateral from counterparties, as appropriate. See “ Note 9—Deposits and Borrowings |
Investment Securities | Our investment portfolio consists primarily of the following: U.S. Treasury securities; U.S. government-sponsored enterprise or agency (“Agency”) and non-agency residential mortgage-backed securities (“RMBS”); Agency commercial mortgage-backed securities (“CMBS”); and other securities. The accounting and measurement framework for our investment securities differs depending on the security classification. We classify securities as available for sale or held to maturity based on our investment strategy and management’s assessment of our intent and ability to hold the securities until maturity. Securities that we may sell prior to maturity in response to changes in our investment strategy, liquidity needs, interest rate risk profile or for other reasons are classified as available for sale. Securities that we have the intent and ability to hold until maturity are classified as held to maturity. We report securities available for sale on our consolidated balance sheets at fair value with unrealized gains or losses recorded, net of tax, as a component of accumulated other comprehensive income (“AOCI”). We report securities held to maturity on our consolidated balance sheets at carrying value, which generally equals amortized cost. Amortized cost reflects historical cost adjusted for amortization of premiums, accretion of discounts and any previously recorded impairments. Investment securities transferred into the held to maturity category from the available for sale category are recorded at fair value at the date of transfer. Any unrealized gains or losses at the transfer date are thereafter included in AOCI. Such unrealized gains or losses are accreted over the remaining life of the security and are expected to offset the amortization of the related premium or discount created upon the investment securities transfer into the held to maturity category, with no expected impact on future net income. Unamortized premiums, discounts and other basis adjustments are recognized in interest income over the contractual lives of the securities using the effective interest method. We record purchases and sales of investment securities on a trade date basis. Realized gains or losses from the sale of debt securities are computed using the first in first out method of identification, and are included in non-interest income in our consolidated statements of income. If we intend to sell an available for sale security in an unrealized loss position or it is more likely than not that we will be required to sell the security prior to recovery of its amortized cost basis, the entire difference between the amortized cost basis of the security and its fair value is recognized in our consolidated statements of income. We regularly evaluate our securities whose fair values have declined below amortized cost to assess whether the decline in fair value represents an other than temporary impairment (“OTTI”). We discuss our assessment and accounting for OTTI in “ Note 3—Investment Securities .” We discuss the techniques we use in determining the fair value of our investment securities in “ Note 17—Fair Value Measurement .” |
Loans | Our loan portfolio consists of loans held for investment, including loans underlying our consolidated securitization trusts, and loans held for sale, and is divided into three portfolio segments: credit card, consumer banking and commercial banking loans. Credit card loans consist of domestic and international credit card loans. Consumer banking loans consist of auto and retail banking loans (see “ Note 2—Business Developments ” for information about our consumer home loan portfolio sale in 2018). Commercial banking loans consist of commercial and multifamily real estate, commercial and industrial, and small-ticket commercial real estate loans. Loan Classification Upon origination or purchase, we classify loans as held for investment or held for sale based on our investment strategy and management’s intent and ability with regard to the loans which may change over time. The accounting and measurement framework for loans differs depending on the loan classification, whether the loans are originated or purchased and whether purchased loans are considered credit-impaired at the date of acquisition. The presentation within the consolidated statements of cash flows is based on management’s intent at acquisition or origination. Cash flows related to loans held for investment are included in cash flows from investing activities on our consolidated statements of cash flows. Cash flows related to loans held for sale are included in cash flows from operating activities on our consolidated statements of cash flows. Loans Held for Investment Loans that we have the ability and intent to hold for the foreseeable future and loans associated with consolidated securitization transactions are classified as held for investment. Loans classified as held for investment, except PCI loans described below, are reported at their amortized cost, which is the outstanding principal balance, adjusted for any unearned income, unamortized deferred fees and costs, unamortized premiums and discounts and charge-offs. Credit card loans also include billed finance charges and fees, net of the estimated uncollectible amount. Interest income is recognized on performing loans held for investment on an accrual basis. We defer loan origination fees and direct loan origination costs on originated loans, premiums and discounts on purchased loans and loan commitment fees. We recognize these amounts in interest income as yield adjustments over the life of the loan and/or commitment period using the effective interest method. For credit card loans, loan origination fees and direct loan origination costs are amortized on a straight-line basis over a 12 -month period. Loans held for investment are subject to our allowance for loan and lease losses methodology described below under “Allowance for Loan and Lease Losses.” Loans Held for Sale Loans purchased or originated with the intent to sell or for which we do not have the ability and intent to hold for the foreseeable future are classified as held for sale. These loans are recorded at the lower of cost or fair value. Loan origination fees, direct loan origination costs and any discounts and premiums are deferred until the loan is sold and are then recognized as part of the total gain or loss on sale. The fair value of loans held for sale is determined on an aggregate portfolio basis for each loan type. If a loan is transferred from held for investment to held for sale, on the transfer date, any decline in fair value related to credit is recorded as a charge-off. Subsequent to transfer, we report write-downs or recoveries in fair value up to the carrying value at the date of transfer and realized gains or losses on loans held for sale in our consolidated statements of income as a component of other non-interest income. We calculate the gain or loss on loan sales as the difference between the proceeds received and the carrying value of the loans sold, net of the fair value of any residual interests retained. Loans Acquired All purchased loans, including loans transferred in a business combination, are initially recorded at fair value, which includes consideration of expected future losses, as of the date of the acquisition. To determine the fair value of loans at acquisition, we estimate discounted contractual cash flows due using an observable market rate of interest, when available, adjusted for factors that a market participant would consider in determining fair value. In determining fair value, contractual cash flows are adjusted to include prepayment estimates based upon trends in default rates and loss severities. The difference between the fair value and the contractual cash flows is recorded as a loan discount or premium at acquisition. Subsequent to acquisition, the loans are classified and accounted for as either held for investment or held for sale based on management’s ability and intent with regard to the loans. Loans held for investment are subject to our allowance for loan and lease losses methodology described below under “Allowance for Loan and Lease Losses.” We account for purchased loans under the accounting guidance for purchased credit-impaired loans and debt securities, which is based upon expected cash flows, if the purchased loans have a discount attributable, at least in part, to credit deterioration and they are not specifically scoped out of the guidance. We refer to these purchased loans that are subsequently accounted for based on expected cash flows to be collected as “PCI loans.” Other purchased loans that do not meet the criteria described above or are specifically scoped out of this guidance are accounted for based on contractual cash flows. Loans Acquired and Accounted for Based on Expected Cash Flows For PCI loans, the excess of cash flows expected to be collected over the estimated fair value of purchased loans is referred to as the accretable yield. This amount is not recorded on our consolidated balance sheets, but is accreted into interest income over the life of the loan, or pool of loans, using the effective interest method. The difference between total contractual payments on the loans and all expected cash flows represents the nonaccretable difference or the amount of principal and interest not considered collectible. We may aggregate loans acquired in the same fiscal quarter into one or more pools if the loans have common risk characteristics. A pool is then accounted for as a single asset, with a single composite interest rate and an aggregate fair value and expected cash flows. Subsequent to acquisition, changes in the estimated cash flows expected to be collected may result in changes in the accretable yield and nonaccretable difference or reclassifications from the nonaccretable difference to the accretable yield. Decreases in expected cash flows resulting from credit deterioration subsequent to acquisition will generally result in an impairment charge recognized in our provision for credit losses and an increase in the allowance for loan and lease losses. Significant increases in the cash flows expected to be collected would first reduce any previously recorded allowance for loan and lease losses. The excess over the recorded allowance for loan and lease losses would result in a reclassification to the accretable yield from the nonaccretable difference and an increase in interest income recognized over the remaining life of the loan or pool of loans. Disposals of loans in the form of sales to third parties, receipt of payment in full or in part by the borrower, and foreclosure of the collateral, result in removal of the loan from the PCI loans portfolio. See “ Note 4—Loans ” for additional information. Loan Modifications and Restructurings As part of our loss mitigation efforts, we may provide modifications to a borrower experiencing financial difficulty to improve long-term collectability of the loan and to avoid the need for foreclosure or repossession of collateral. A loan modification in which a concession is granted to a borrower experiencing financial difficulty is accounted for and reported as a troubled debt restructuring (“TDR”). Our loan modifications typically include an extension of the loan term, a reduction in the interest rate, a reduction in the loan balance, or a combination of these concessions. We describe our accounting for and measurement of impairment on TDR loans below under “Impaired Loans.” See “ Note 4—Loans ” for additional information on our loan modifications and restructurings. Delinquent and Nonperforming Loans The entire balance of a loan is considered contractually delinquent if the minimum required payment is not received by the first statement cycle date equal to or following the due date specified on the customer’s billing statement. Delinquency is reported on loans that are 30 or more days past due. Interest and fees continue to accrue on past due loans until the date the loan is placed on nonaccrual status, if applicable. We generally place loans on nonaccrual status when we believe the collectability of interest and principal is not reasonably assured. Nonperforming loans generally include loans that have been placed on nonaccrual status, but we do not report loans classified as held for sale as nonperforming. Our policies for classifying loans as nonperforming, by loan category, are as follows: • Credit card loans: As permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”), our policy is generally to exempt credit card loans from being classified as nonperforming, as these loans are generally charged off in the period the account becomes 180 days past due. Consistent with industry conventions, we generally continue to accrue interest and fees on delinquent credit card loans until the loans are charged-off. • Consumer banking loans: We classify consumer banking loans as nonperforming when we determine that the collectability of all interest and principal on the loan is not reasonably assured, generally when the loan becomes 90 days past due. • Commercial banking loans : We classify commercial banking loans as nonperforming as of the date we determine that the collectability of all interest and principal on the loan is not reasonably assured. • Modified loans and troubled debt restructurings: Modified loans, including TDRs, that are current at the time of the restructuring remain on accrual status if there is demonstrated performance prior to the restructuring and continued performance under the modified terms is expected. Otherwise, the modified loan is classified as nonperforming. • PCI loans: PCI loans are not classified as delinquent or nonperforming. Interest and fees accrued but not collected at the date a loan is placed on nonaccrual status are reversed against earnings. In addition, the amortization of net deferred loan fees is suspended. Interest and fee income is subsequently recognized only upon the receipt of cash payments. However, if there is doubt regarding the ultimate collectability of loan principal, cash received is generally applied against the principal balance of the loan. Nonaccrual loans are generally returned to accrual status when all principal and interest is current and repayment of the remaining contractual principal and interest is reasonably assured, or when the loan is both well-secured and in the process of collection and collectability is no longer doubtful. Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due from the borrower in accordance with the original contractual terms of the loan. Generally, we report loans as impaired based on the method for measuring impairment in accordance with applicable accounting guidance. Loans held for sale are not reported as impaired, as these loans are recorded at lower of cost or fair value. Impaired loans also exclude PCI loans, as these loans are accounted for based on expected cash flows at acquisition because this accounting methodology takes into consideration future credit losses. Loans defined as individually impaired, based on applicable accounting guidance, include larger-balance nonperforming loans and TDR loans. Loans modified in a TDR continue to be reported as impaired until maturity. Our policies for identifying loans as individually impaired, by loan category, are as follows: • Credit card loans: Credit card loans that have been modified in a troubled debt restructuring are identified and accounted for as individually impaired. • Consumer banking loans: Consumer loans that have been modified in a troubled debt restructuring are identified and accounted for as individually impaired. • Commercial banking loans: Commercial loans classified as nonperforming and commercial loans that have been modified in a troubled debt restructuring are reported as individually impaired. The majority of individually impaired loans are evaluated for an asset-specific allowance. We generally measure impairment and the related asset-specific allowance for individually impaired loans based on the difference between the recorded investment of the loan and the present value of the expected future cash flows, discounted at the original effective interest rate of the loan at the time of modification. If the loan is collateral dependent, we measure impairment based upon the fair value of the underlying collateral, which we determine based on the current fair value of the collateral less estimated selling costs. Loans are identified as collateral dependent if we believe the collateral will be the primary source of repayment. Charge-Offs We charge off loans as a reduction to the allowance for loan and lease losses when we determine the loan is uncollectible and record subsequent recoveries of previously charged off amounts as an increase to the allowance for loan and lease losses. We exclude accrued and unpaid finance charges and fees and certain fraud losses from charge-offs. Costs to recover charged-off loans are recorded as collection expense and included in our consolidated statements of income as a component of other non-interest expense as incurred. Our charge-off time frames by loan type are presented below. • Credit card loans: We generally charge-off credit card loans in the period the account becomes 180 days past due. We charge off delinquent credit card loans for which revolving privileges have been revoked as part of loan workout when the account becomes 120 days past due. Credit card loans in bankruptcy are generally charged-off by the end of the month following 30 days after the receipt of a complete bankruptcy notification from the bankruptcy court. Credit card loans of deceased account holders are charged-off by the end of the month following 60 days of receipt of notification. • Consumer banking loans: We generally charge-off consumer banking loans at the earlier of the date when the account is a specified number of days past due or upon repossession of the underlying collateral. Our charge-off time frame is 180 days for home loans and 120 days for auto loans. Small business banking loans generally charge off at 120 days past due based on when unpaid principal loan amounts are deemed uncollectible. We calculate the initial charge-off amount for home loans based on the excess of our recorded investment in the loan over the fair value of the underlying property less estimated selling costs as of the date of the charge-off. We update our home value estimates on a regular basis and may recognize additional charge-offs for subsequent declines in home values. Auto and home loans where the borrower has filed for bankruptcy and the loan has not been reaffirmed charge off in the period that the loan is 60 days from the bankruptcy notification date, regardless of delinquency status. Auto and home loans that have not been charged off and have been discharged under Chapter 7 bankruptcy are charged off at the end of the month in which the bankruptcy discharge occurs. Remaining consumer loans generally are charged off within 40 days of receipt of notification from the bankruptcy court. Consumer loans of deceased account holders are charged off by the end of the month following 60 days of receipt of notification. • Commercial banking loans: We charge off commercial loans in the period we determine that the unpaid principal loan amounts are uncollectible. • PCI loans: |
Allowance for Loan and Lease Losses | We maintain an allowance for loan and lease losses (“allowance”) that represents management’s best estimate of incurred loan and lease losses inherent in our held for investment portfolio as of each balance sheet date. The provision for credit losses reflects credit losses we believe have been incurred and will eventually be recognized over time in our charge-offs. Charge-offs of uncollectible amounts are deducted from the allowance and subsequent recoveries are added back. Management performs a quarterly analysis of our loan portfolio to determine if impairment has occurred and to assess the adequacy of the allowance based on historical and current trends as well as other factors affecting credit losses. We apply documented systematic methodologies to separately calculate the allowance for our consumer loan and commercial loan portfolios. Our allowance for loan and lease losses consists of three components that are allocated to cover the estimated probable losses in each loan portfolio based on the results of our detailed review and loan impairment assessment process: (i) a component for loans collectively evaluated for impairment; (ii) an asset-specific component for individually impaired loans; and (iii) a component related to PCI loans that have experienced significant decreases in expected cash flows subsequent to acquisition. Each of our allowance components is supplemented by an amount that represents management’s qualitative judgment of the imprecision and risks inherent in the processes and assumptions used in establishing the allowance. Management’s judgment involves an assessment of subjective factors, such as process risk, modeling assumption and adjustment risks and probable internal and external events that will likely impact losses. Our credit card and consumer loan portfolios consist of smaller-balance, homogeneous loans. The consumer loan portfolio is divided into two primary portfolio segments: auto loans and retail banking loans (see “ Note 2—Business Developments ” for information about our consumer home loan portfolio sale in 2018). The credit card and consumer loan portfolios are further divided by our business units into groups based on common risk characteristics, such as origination year, contract type, interest rate and geography, which are collectively evaluated for impairment. The commercial loan portfolio is primarily composed of larger-balance, non-homogeneous loans. These loans are subject to individual reviews that result in internal risk ratings. In assessing the risk rating of a particular loan, among the factors we consider are the financial condition of the borrower, geography, collateral performance, historical loss experience, and industry-specific information that management believes is relevant in determining the occurrence of a loss event and measuring impairment. These factors are based on an evaluation of historical and current information, and involve subjective assessment and interpretation. Emphasizing one factor over another or considering additional factors could impact the risk rating assigned to that loan. The component of the allowance related to credit card and consumer loans that we collectively evaluate for impairment is based on a statistical calculation, which is supplemented by management judgment as described above. Because of the homogeneous nature of our consumer loan portfolios, the allowance is based on the aggregated portfolio segment evaluations. The allowance is established through a process that begins with estimates of incurred losses in each pool based upon various statistical analyses. Loss forecast models are utilized to estimate probable losses incurred and consider several portfolio indicators including, but not limited to, historical loss experience, account seasoning, the value of collateral underlying secured loans, estimated foreclosures or defaults based on observable trends, delinquencies, bankruptcy filings, unemployment, credit bureau scores and general economic and business trends. Management believes these factors are relevant in estimating probable losses incurred and also considers an evaluation of overall portfolio credit quality based on indicators such as changes in our credit evaluation, underwriting and collection management policies, the effect of other external factors such as competition and legal and regulatory requirements, general economic conditions and business trends, and uncertainties in forecasting and modeling techniques used in estimating our allowance. We update our credit card and consumer loss forecast models and portfolio indicators on a quarterly basis to incorporate information reflective of the current economic environment. The component of the allowance for commercial loans that we collectively evaluate for impairment is based on our historical loss experience for loans with similar risk characteristics and consideration of the current credit quality of the portfolio, which is supplemented by management judgment as described above. We apply internal risk ratings to commercial loans, which we use to assess credit quality and derive a total loss estimate based on an estimated probability of default (“default rate”) and loss given default (“loss severity”). Management may also apply judgment to adjust the loss factors derived, taking into consideration both quantitative and qualitative factors, including general economic conditions, industry-specific and geographic trends, portfolio concentrations, trends in internal credit quality indicators, and current and past underwriting standards that have occurred but are not yet reflected in the historical data underlying our loss estimates. The asset-specific component of the allowance covers smaller-balance homogeneous credit card and consumer loans whose terms have been modified in a TDR and larger-balance nonperforming, non-homogeneous commercial loans. As discussed above under “Impaired Loans,” we generally measure the asset-specific component of the allowance based on the difference between the recorded investment of individually impaired loans and the present value of expected future cash flows. The asset-specific component of the allowance for smaller-balance impaired loans is calculated on a pool basis using historical loss experience for the respective class of assets. The asset-specific component of the allowance for larger-balance impaired loans is individually calculated for each loan. Key considerations in determining the allowance include the borrower’s overall financial condition, resources and payment history, prospects for support from financially responsible guarantors, and when applicable, the estimated realizable value of any collateral. Applicable accounting guidance prohibits the carry over or creation of valuation allowances in the initial accounting for impaired loans acquired. See “ Note 4—Loans ” for information on loan portfolios associated with acquisitions. In addition to the allowance, we also estimate probable losses related to contractually binding unfunded lending commitments, such as letters of credit, financial guarantees, and binding unfunded loan commitments. The provision for unfunded lending commitments is included in the provision for credit losses in our consolidated statements of income and the related reserve is included in other liabilities on our consolidated balance sheets. Unfunded lending commitments are subject to individual reviews and are analyzed and segregated by risk according to our internal risk rating scale, which we use to assess credit quality and derive a total loss estimate. We assess these risk classifications, taking into consideration both quantitative and qualitative factors, including historical loss experience, utilization assumptions, current economic conditions, performance trends within specific portfolio segments and other pertinent information to estimate the reserve for unfunded lending commitments. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance and the reserve for unfunded lending commitments in future periods. See “ Note 5—Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments |
Securitization of Loans | Our loan securitization activities primarily involve the securitization of credit card loans, which provides a source of funding for us. See “ Note 6—Variable Interest Entities and Securitizations |
Premises and Equipment | Premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation and amortization. Land is carried at cost. We capitalize direct costs incurred during the application development stage of internally developed software projects. Depreciation and amortization expenses are calculated using the straight-line method over the estimated useful lives of the assets. Useful lives for premises and equipment are estimated as follows: Premises and Equipment Useful Lives Buildings and improvements 5-39 years Furniture and equipment 3-10 years Computer software 3 years Leasehold improvements Lesser of the useful life or the remaining Expenditures for maintenance and repairs are expensed as incurred and gains or losses upon disposition are recognized in our consolidated statements of income as realized. See “ Note 8—Premises, Equipment and Lease Commitments |
Goodwill and Other Intangible Assets | Goodwill represents the excess of the acquisition price of an acquired business over the fair value of assets acquired and liabilities assumed and is assigned to one or more reporting units at the date of acquisition. A reporting unit is defined as an operating segment, or a business unit that is one level below an operating segment. We have four reporting units: Credit Card, Auto, Other Consumer Banking and Commercial Banking. Goodwill is not amortized but is tested for impairment at the reporting unit level annually or more frequently if adverse circumstances indicate that it is more likely than not that the carrying amount of a reporting unit exceeds its fair value. These indicators could include a sustained, significant decline in the Company’s stock price, a decline in expected future cash flows, significant disposition activity, a significant adverse change in the economic or business environment, and the testing for recoverability of a significant asset group, among others. Intangible assets with finite useful lives are amortized on either an accelerated or straight-line basis over their estimated useful lives and are evaluated for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. See “ Note 7—Goodwill and Intangible Assets |
Mortgage Servicing Rights | Mortgage servicing rights (“MSRs”) are initially recorded at fair value when mortgage loans are sold or securitized in the secondary market and the right to service these loans is retained for a fee. Subsequently, our consumer MSRs are carried at fair value on our consolidated balance sheets with changes in fair value recognized in non-interest income. Our commercial MSRs are subsequently accounted for under the amortization method and are periodically evaluated for impairment, which is recognized as a reduction in non-interest income. See “ Note 7—Goodwill and Intangible Assets ” and “ Note 17—Fair Value Measurement |
Foreclosed Property and Repossessed Assets | Foreclosed property and repossessed assets obtained through our lending activities typically include commercial and residential real estate or personal property, such as automobiles, and are recorded at net realizable value. For home loans collateralized by residential real estate, we reclassify loans to foreclosed property at the earlier of when we obtain legal title to the residential real estate property or when the borrower conveys all interest in the property to us. For foreclosed property and repossessed assets, we generally reclassify the loan to repossessed assets upon repossession of the property in satisfaction of the loan. Net realizable value is the estimated fair value of the underlying collateral less estimated selling costs and is based on appraisals, when available. Subsequent to initial recognition, foreclosed property and repossessed assets are recorded at the lower of our initial cost basis or net realizable value, which is routinely monitored and updated. Any changes in net realizable value and gains or losses realized from disposition of the property are recorded in other non-interest expense. See “ Note 17—Fair Value Measurement |
Restricted Equity Investments | We have investments in Federal Home Loan Banks (“FHLB”) stock and in the Board of Governors of the Federal Reserve System (“Federal Reserve”) stock. These investments, which are included in other assets on our consolidated balance sheets, are not marketable, are carried at cost, and are reviewed for impairment. |
Litigation | In accordance with the current accounting standards for loss contingencies, we establish reserves for litigation-related matters, including mortgage representation and warranty related matters, that arise from the ordinary course of our business activities when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss can be reasonably estimated. See “ Note 19—Commitments, Contingencies, Guarantees and Others |
Customer Rewards Reserve | We offer products, primarily credit cards, which include programs that allow members to earn rewards based on account activity that can be redeemed for cash (primarily in the form of statement credits), gift cards, travel, or covering eligible charges. The amount of reward that a customer earns varies based on the terms and conditions of the rewards program and product. When rewards are earned by a customer, rewards expense is generally recorded as an offset to interchange income, with a corresponding increase to the customer rewards reserve. The customer rewards reserve is computed based on the estimated future cost of earned rewards that are expected to be redeemed and is reduced as rewards are redeemed. In estimating the customer rewards reserve, we consider historical redemption and spending behavior, as well as the terms and conditions of the current rewards programs, among other factors. We expect the vast majority of all rewards earned will eventually be redeemed. The customer rewards reserve, which is included in other liabilities on our consolidated balance sheets, totaled $4.3 billion and $3.9 billion as of December 31, 2018 and 2017 |
Revenue Recognition | Interest Income and Fees Interest income and fees on loans and investment securities are recognized based on the contractual provisions of the underlying arrangements. Loan origination fees and costs and premiums and discounts on loans held for investment are deferred and generally amortized into interest income as yield adjustments over the contractual life and/or commitment period using the effective interest method. In certain circumstances, we elect to factor prepayment estimates into the calculation of the constant effective yield necessary to apply the interest method. Prepayment estimates are based on historical prepayment data, existing and forecasted interest rates, and economic data. For credit card loans, loan origination fees and direct loan origination costs are amortized on a straight-line basis over a 12 -month period. Unamortized premiums, discounts and other basis adjustments on investment securities are recognized in interest income over the contractual lives of the securities using the effective interest method. Finance charges and fees on credit card loans are recorded in revenue when earned. Billed finance charges and fees on credit card loans are included in loan receivables net of amounts that we consider uncollectible. Unbilled finance charges and fees on credit card loans are included in interest receivables. Annual membership fees are deferred and amortized into income over 12 months on a straight-line basis. We continue to accrue finance charges and fees on credit card loans until the account is charged-off. Our methodology for estimating the uncollectible portion of billed finance charges and fees is consistent with the methodology we use to estimate the allowance for incurred principal losses on our credit card loan receivables. Interchange Income Interchange income represents fees for standing ready to authorize and providing settlement on credit and debit card transactions processed through the MasterCard® (“MasterCard”) and Visa® (“Visa”) interchange networks. The levels and structure of interchange rates are set by MasterCard and Visa and can vary based on cardholder purchase volumes. We recognize interchange income upon settlement with the interchange networks. See “ Note 18—Business Segments and Revenue from Contracts with Customers ” for additional details. Card Partnership Agreements Our partnership agreements relate to alliances with retailers and other partners to provide lending and other services to mutual customers. We primarily issue private-label and cobrand credit card loans to these customers over the term of the partnership agreements, which typically range from two years to ten years . Certain partners assist in or perform marketing activities on our behalf and promote our products and services to their customers. As compensation for providing these services, we often pay royalties, bounties or other special bonuses to these partners. Depending upon the nature of the payments, they are recorded as a reduction of revenue, marketing expenses or other operating expenses. Credit card partnership agreements may also provide for profit or revenue sharing which are presented as a reduction of the related revenue line item when owed to the partner. When a partner agrees to share a portion of the credit losses associated with the partnership, we must determine whether to report the sharing of losses on a gross or net basis in our consolidated financial statements. We evaluate the contractual provisions for the loss share payments and applicable accounting guidance to determine the manner in which to report the impact of the partnership agreement in our consolidated financial statements. Our consolidated net income is the same regardless of whether revenue and loss sharing arrangements are reported on a gross or net basis. When loss sharing amounts due from partners are presented on a net basis, they are recorded as a reduction to our provision for credit losses in our consolidated statements of income and reduce the charge-off amounts that we report. The allowance for loan and lease losses attributable to these portfolios is also reduced by the expected reimbursements from these partners for loss sharing amounts. See “ Note 5—Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments ” for additional information related to our loss sharing arrangements. For loss sharing arrangements presented on a gross basis, any loss share payments due from the partner are recorded as a part of revenue, and the allowance for loan and lease losses is not reduced by the expected loss share reimbursements. Collaborative Arrangements A collaborative arrangement is a contractual arrangement that involves a joint operating activity between two or more parties that are active participants in the activity. These parties are exposed to significant risks and rewards based upon the economic success of the joint operating activity. We assess each of our partnership agreements with profit, revenue or loss sharing payments to determine if a collaborative arrangement exists and, if so, how revenue generated from third parties, costs incurred and transactions between participants in the collaborative arrangement should be accounted for and reported on our consolidated financial statements. We currently have one partnership agreement that meets the definition of a collaborative agreement. We share a fixed percentage of revenues, consisting of finance charges and late fees, with the partner, and the partner is required to reimburse us for a fixed percentage of credit losses incurred. Revenues and losses related to the partner’s credit card program and partnership agreement are reported on a net basis in our consolidated financial statements. Revenue sharing amounts attributable to the partner are recorded as an offset against total net revenue in our consolidated statements of income. Interest income was reduced by $1.3 billion in 2018 and $1.2 billion in both 2017 and 2016 , for amounts earned by the partner, as part of the partnership agreement. The impact of all of our loss sharing arrangements that are presented on a net basis is included in “ Note 5—Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments |
Stock-based Compensation | We reserve common shares for issuance to employees, directors and third-party service providers, in various forms, including stock options, stock appreciation rights, restricted stock awards and units and performance share awards and units. In addition, we also issue cash equity units and cash-settled restricted stock units which are not counted against the common shares reserved for issuance or available for issuance because they are settled in cash. For awards settled in shares, we generally recognize compensation expense on a straight-line basis over the award’s requisite service period based on the fair value of the award at the grant date. If an award settled in shares contains a performance condition with graded vesting, we recognize compensation expense using the accelerated attribution method. Equity units and restricted stock units that are cash-settled are accounted for as liability awards which results in quarterly expense fluctuations based on changes in our stock price through the date that the awards are settled. Awards that continue to vest after retirement are expensed over the shorter of the time period between the grant date and the final vesting period or between the grant date and when the participant becomes retirement eligible. Awards to participants who are retirement eligible at the grant date are subject to immediate expense recognition. Stock-based compensation expense is included in salaries and associate benefits in the consolidated statements of income. Stock-based compensation expense for equity classified stock options is based on the grant date fair value, which is estimated using a Black-Scholes option pricing model. Significant judgment is required when determining the inputs into the fair value model. For awards other than stock options, the fair value of stock-based compensation used in determining compensation expense will generally equal the fair market value of our common stock on the date of grant. Certain share-settled awards have discretionary vesting conditions which result in the remeasurement of these awards at fair value each reporting period and the potential for compensation expense to fluctuate with changes in our stock price. See “ Note 14—Stock-Based Compensation Plans |
Marketing Expense | We expense marketing costs as incurred. |
Income Taxes | We recognize the current and deferred tax consequences of all transactions that have been recognized in the financial statements using the provisions of the enacted tax laws. Current income tax expense represents our estimated taxes to be paid or refunded for the current period and includes income tax expense related to our uncertain tax positions, as well as tax-related interest and penalties. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. We record valuation allowances to reduce deferred tax assets to the amount that is more likely than not to be realized. We record the effect of remeasuring deferred tax assets and liabilities due to a change in tax rates or laws as a component of income tax expense related to continuing operations for the period in which the change is enacted. We subsequently release income tax effects stranded in AOCI using a portfolio approach. Income tax benefits are recognized when, based on their technical merits, they are more likely than not to be sustained upon examination. The amount recognized is the largest amount of benefit that is more likely than not to be realized upon settlement. See “ Note 16—Income Taxes |
Earnings Per Share | Earnings per share is calculated and reported under the “two-class” method. The “two-class” method is an earnings allocation method under which earnings per share is calculated for each class of common stock and participating security considering both dividends declared or accumulated and participation rights in undistributed earnings as if all such earnings had been distributed during the period. We have unvested share-based payment awards which have a right to receive nonforfeitable dividends. These share-based payment awards are deemed to be participating securities. We calculate basic earnings per share by dividing net income, after deducting dividends on preferred stock and participating securities as well as undistributed earnings allocated to participating securities, by the average number of common shares outstanding during the period, net of any treasury shares. We calculate diluted earnings per share in a similar manner after consideration of the potential dilutive effect of common stock equivalents on the average number of common shares outstanding during the period. Common stock equivalents include warrants, stock options, restricted stock awards and units, and performance share awards and units. Common stock equivalents are calculated based upon the treasury stock method using an average market price of common shares during the period. Dilution is not considered when a net loss is reported. Common stock equivalents that have an antidilutive effect are excluded from the computation of diluted earnings per share. See “ Note 13—Earnings Per Common Share |
Derivative Instruments and Hedging Activities | All derivative financial instruments, whether designated for hedge accounting or not, are reported at their fair value on our consolidated balance sheets as either assets or liabilities, with consideration of legally enforceable master netting arrangements that allow us to net settle positive and negative positions and offset cash collateral with the same counterparty. We report net derivatives in a gain position, or derivative assets, on our consolidated balance sheets as a component of other assets. We report net derivatives in a loss position, or derivative liabilities, on our consolidated balance sheets as a component of other liabilities. See “ Note 10—Derivative Instruments and Hedging Activities |
Fair Value | Fair value, also referred to as an exit price, is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value accounting guidance provides a three-level fair value hierarchy for classifying financial instruments. This hierarchy is based on whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. Fair value measurement of a financial asset or liability is assigned to a level based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are described below: Level 1: Valuation is based on quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Valuation is based on observable market-based inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Valuation is generated from techniques that use significant assumptions not observable in the market. Valuation techniques include pricing models, discounted cash flow methodologies or similar techniques. The accounting guidance for fair value requires that we maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The accounting guidance also provides for the irrevocable option to elect, on a contract-by-contract basis, to measure certain financial assets and liabilities at fair value at inception of the contract and record any subsequent changes to fair value in the consolidated statements of income. We have not made any material fair value option elections as of and for the years ended December 31, 2018 , 2017 and 2016 . See “ Note 17—Fair Value Measurement |
Accounting for Acquisitions | We account for business combinations under the acquisition method of accounting. Under the acquisition method, tangible and intangible identifiable assets acquired, liabilities assumed and any noncontrolling interest in the acquiree are recorded at fair value as of the acquisition date, with limited exceptions. Transaction costs and costs to restructure the acquired company are expensed as incurred. Goodwill is recognized as the excess of the acquisition price over the estimated fair value of the identifiable net assets acquired. Likewise, if the fair value of the net assets acquired is greater than the acquisition price, a bargain purchase gain is recognized and recorded in other non-interest income. If the acquired set of activities and assets do not meet the accounting definition of a business, the transaction is accounted for as an asset acquisition. In an asset acquisition, the assets acquired are recorded at the purchase price plus any transaction costs incurred and no goodwill is recognized. |
New Accounting Standards | Newly Adopted Accounting Standards Standard Guidance Adoption Timing and Financial Statements Impacts Accounting Implications of the Tax Act Accounting Standards Update (“ASU”) No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 Issued March 2018 Codifies the SEC Staff views expressed in Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act . Addresses situations where an entity’s accounting for the income tax effects of the Tax Act is incomplete upon issuance of the entity’s financial statements for the reporting period in which the Tax Act was enacted. We adopted this standard in the first quarter of 2018. In accordance with Staff Accounting Bulletin No. 118, we included certain provisional amounts for the income tax effects of the Tax Act in our consolidated financial statements as of and for the year ended December 31, 2017. As of December 2018, we completed our accounting for the income tax effects of the Tax Act. We did not have any significant measurement period adjustments in the year ended December 31, 2018. Reclassification of Stranded Tax Effects ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income Issued February 2018 Allows a one-time reclassification from AOCI to retained earnings for tax effects stranded in AOCI as a result of the Tax Act. We early adopted this standard in the first quarter of 2018, resulting in a decrease to AOCI and an increase to retained earnings of $173 million. Our reclassification included the effects of the reduction in the federal corporate income tax rate enacted by the Tax Act and the resulting impacts on the federal benefit of deducting state income taxes. Hedge Accounting Improvements ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities Issued August 2017 Eliminates the concept of separately measuring and reporting hedge ineffectiveness. Requires entities to present the earnings effect of a hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. For a closed pool of pre-payable financial assets, allows entities to hedge an amount that is not expected to be affected by prepayments, defaults and other events under the “last-of-layer” method. Permits a one-time reclassification of debt securities eligible to be hedged under the “last-of-layer” method from held to maturity to available for sale upon adoption. We early adopted this standard in the first quarter of 2018 under the modified retrospective transition method. As permitted by this standard, and in order to optimize our investment portfolio management for capital and risk management considerations, we made a one-time election to transfer $9.0 billion of held to maturity securities eligible to be hedged under the “last-of-layer” method to the available for sale category, resulting in an increase to AOCI of $82 million after-tax ($107 million pre-tax). See “Note 3—Investment Securities” and “Note 10—Derivative Instruments and Hedging Activities” for additional information on the impacts of the transfer, as well as the disclosures required under the new guidance. Statement of Cash Flows Classification ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments Issued August 2016 Clarifies or creates guidance for eight specific transactions to reduce the identified diversity in practice when presenting or classifying the transactions in the statement of cash flows. We adopted this standard in the first quarter of 2018 under the retrospective transition method and our adoption did not have a material impact on our consolidated financial statements. Standard Guidance Adoption Timing and Financial Statements Impacts Recognition and Measurement ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Issued January 2016 Requires entities to measure equity investments at fair value with changes in fair value recorded through net income, except those accounted for under the equity method of accounting, or those that do not have a readily determinable fair value (for which a measurement alternative can be elected). We adopted this standard in the first quarter of 2018 under the modified retrospective transition method and our adoption did not have a material impact on our consolidated financial statements. Revenue Recognition ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Issued May 2014 Replaces significant portions of existing industry and transaction-specific revenue recognition rules with a more principles-based recognition model. Most revenue associated with financial instruments, including interest income, loan origination fees and credit card fees, is outside the scope of the guidance. Gains and losses on investment securities, derivatives and sales of financial instruments are similarly excluded from the scope. We adopted this standard in the first quarter of 2018 under the modified retrospective transition method. We determined interchange fees earned on credit and debit card transactions, net of any related customer rewards, are in the scope of the amended guidance. We assessed the impact of the new guidance by evaluating our contracts, identifying our performance obligations, determining when the performance obligations were satisfied to allow us to recognize revenue and determining the amount of revenue to recognize. As a result of this analysis, we determined our recognition, measurement and presentation of interchange fees net of customer rewards costs will remain consistent with our past practices. Our adoption did not have a material impact on our consolidated financial statements. See “Note 18—Business Segments and Revenue from Contracts with Customers” for the new disclosures required under this guidance. Accounting Standards Issued but Not Adopted as of December 31, 2018 Standard Guidance Accounting Standards Issued but Not Adopted as of December 31, 2018 Cloud Computing ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Issued August 2018 Aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Effective January 1, 2020, with early adoption permitted, using either the retrospective or prospective method of adoption. We plan to adopt the standard on its effective date and are currently evaluating the expected impact of such adoption. Premium Amortization on Callable Debt ASU No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities Issued March 2017 Shortens the amortization period from the contractual life to the earliest call date for certain purchased callable debt securities held at a premium. We adopted this guidance in the first quarter of 2019 using the modified retrospective method of adoption. Our adoption of this standard did not have a material impact on our consolidated financial statements. Goodwill Impairment Test Simplification ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment Issued January 2017 Eliminates the second step from the current goodwill impairment test. Under the current guidance, the first step compares a reporting unit’s carrying value to its fair value. If the carrying value exceeds fair value, an entity performs the second step, which assigns the reporting unit’s fair value to its assets and liabilities, including unrecognized assets and liabilities, in the same manner as required in purchase accounting. Under the new guidance, any impairment of a reporting unit’s goodwill is determined based on the amount by which the reporting unit’s carrying value exceeds its fair value, limited to the amount of goodwill allocated to the reporting unit. Effective January 1, 2020, with early adoption permitted, using the prospective method of adoption. We plan to adopt the standard on its effective date and do not expect such adoption to have a material impact on our consolidated financial statements. Standard Guidance Accounting Standards Issued but Not Adopted as of December 31, 2018 Current Expected Credit Loss (“CECL”) ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Issued June 2016 Requires the use of current expected credit loss model that is based on expected rather than incurred losses to determine our allowance for credit losses on financial assets measured at amortized cost, certain net investments in leases and certain off-balance sheet arrangements. Replaces current accounting for PCI and impaired loans. Amends the other-than-temporary impairment model for available for sale debt securities to require that credit losses (and subsequent recoveries) be recorded through an allowance approach, rather than through permanent write-downs for credit losses and subsequent accretion of positive changes through interest income over time. Effective January 1, 2020, with early adoption permitted no earlier than January 1, 2019, using the modified retrospective method of adoption. We plan to adopt the standard on its effective date. We have established a company-wide, cross-functional governance structure for our implementation of this standard. We are in the process of determining key accounting interpretations, data requirements and necessary changes to our credit loss estimation methods, processes and systems. We continue to assess the potential impact on our consolidated financial statements and related disclosures. We currently expect our adoption of this guidance will result in an increase to our reserves for credit losses on financial instruments due to the requirement to record expected losses over the remaining contractual lives of our financial instruments; however, the actual impact will depend on the characteristics of our financial instruments, economic conditions, and our economic and loss forecasts at the adoption date. Leases ASU No. 2016-02, Leases (Topic 842) Issued February 2016 Requires lessees to recognize right of use assets and lease liabilities on their consolidated balance sheets and disclose key information about all their leasing arrangements, with certain practical expedients. We adopted this guidance in the first quarter of 2019, using the modified retrospective method of adoption without restating prior periods. We elected the practical expedients that permitted us to not reassess the lease classification of existing leases, whether existing contracts contain a lease or the treatment of initial direct costs on existing leases. Upon adoption, we recorded a lease liability of $1.9 billion and right of use asset of $1.6 billion, which is net of other lease-related balances. We do not expect material changes to the recognition of operating lease expense in our consolidated statements of income as a result of adopting this guidance. |
Offsetting of Financial Assets and Liabilities | Balance Sheet Offsetting of Financial Assets and LiabilitiesDerivative contracts and repurchase agreements that we execute bilaterally in the OTC market are governed by enforceable master netting arrangements where we generally have the right to offset exposure with the same counterparty. Either counterparty can generally request to net settle all contracts through a single payment upon default on, or termination of, any one contract. We elect to offset the derivative assets and liabilities under netting arrangements for balance sheet presentation where a right of setoff exists. For derivative contracts entered into under master netting arrangements for which we have not been able to confirm the enforceability of the setoff rights, or those not subject to master netting arrangements, we do not offset our derivative positions for balance sheet presentation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment | Useful lives for premises and equipment are estimated as follows: Premises and Equipment Useful Lives Buildings and improvements 5-39 years Furniture and equipment 3-10 years Computer software 3 years Leasehold improvements Lesser of the useful life or the remaining December 31, 2018 and 2017 . Table 8.1 : Components of Premises and Equipment December 31, (Dollars in millions) 2018 2017 Land $ 386 $ 406 Buildings and improvements 3,994 3,302 Furniture and equipment 2,018 1,901 Computer software 1,847 1,753 In progress 482 902 Total premises and equipment, gross 8,727 8,264 Less: Accumulated depreciation and amortization (4,536 ) (4,231 ) Total premises and equipment, net $ 4,191 $ 4,033 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale Securities | The table below presents the amortized cost, gross unrealized gains and losses, and fair value of securities available for sale as of December 31, 2018 and 2017 . Table 3.1 : Investment Securities Available for Sale December 31, 2018 (Dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investment securities available for sale: U.S. Treasury securities $ 6,146 $ 15 $ (17 ) $ 6,144 RMBS: Agency 32,710 62 (869 ) 31,903 Non-agency 1,440 304 (2 ) 1,742 Total RMBS 34,150 366 (871 ) 33,645 Agency CMBS 4,806 11 (78 ) 4,739 Other securities (1) 1,626 2 (6 ) 1,622 Total investment securities available for sale $ 46,728 $ 394 $ (972 ) $ 46,150 December 31, 2017 (Dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investment securities available for sale: U.S. Treasury securities $ 5,168 $ 11 $ (8 ) $ 5,171 RMBS: Agency 26,013 67 (402 ) 25,678 Non-agency 1,722 393 (1 ) 2,114 Total RMBS 27,735 460 (403 ) 27,792 Agency CMBS 3,209 10 (44 ) 3,175 Other securities (1) 1,516 4 (3 ) 1,517 Total investment securities available for sale $ 37,628 $ 485 $ (458 ) $ 37,655 __________ (1) |
Investment Securities Held to Maturity | The table below presents the amortized cost, carrying value, gross unrealized gains and losses, and fair value of securities held to maturity as of December 31, 2018 and 2017 . In the first quarter of 2018, we made a one-time transfer of held to maturity securities with a carrying value of $9.0 billion to available for sale as a result of our adoption of ASU No. 2017-12. These securities had pre-tax unrealized losses of $535 million ( $407 million after-tax) in AOCI prior to the transfer. See “ Note 1—Summary of Significant Accounting Policies ” and “ Note 11—Stockholders’ Equity ” for more information. Table 3.2 : Investment Securities Held to Maturity December 31, 2018 (Dollars in millions) Amortized Cost Unrealized Losses Recorded in AOCI Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value Agency RMBS $ 33,299 $ (238 ) $ 33,061 $ 293 $ (377 ) $ 32,977 Agency CMBS 3,723 (13 ) 3,710 21 (89 ) 3,642 Total investment securities held to maturity $ 37,022 $ (251 ) $ 36,771 $ 314 $ (466 ) $ 36,619 December 31, 2017 (Dollars in millions) Amortized Cost Unrealized Losses Recorded in AOCI Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities $ 200 $ 0 $ 200 $ 0 $ 0 $ 200 Agency RMBS 25,741 (761 ) 24,980 565 (150 ) 25,395 Agency CMBS 3,882 (78 ) 3,804 70 (32 ) 3,842 Total investment securities held to maturity $ 29,823 $ (839 ) $ 28,984 $ 635 $ (182 ) $ 29,437 |
Schedule of Available-for-Sale Securities in Gross Unrealized Loss Position | The table below provides, by major security type, information about our securities available for sale in a gross unrealized loss position and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2018 and 2017 . Table 3.3 : Securities in a Gross Unrealized Loss Position December 31, 2018 Less than 12 Months 12 Months or Longer Total (Dollars in millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Investment securities available for sale: U.S. Treasury securities $ 2,543 $ (3 ) $ 1,076 $ (14 ) $ 3,619 $ (17 ) RMBS: Agency 7,863 (260 ) 18,118 (609 ) 25,981 (869 ) Non-agency 89 (2 ) 10 0 99 (2 ) Total RMBS 7,952 (262 ) 18,128 (609 ) 26,080 (871 ) Agency CMBS 2,004 (31 ) 1,540 (47 ) 3,544 (78 ) Other securities 244 (1 ) 678 (5 ) 922 (6 ) Total investment securities available for sale in a gross unrealized loss position $ 12,743 $ (297 ) $ 21,422 $ (675 ) $ 34,165 $ (972 ) December 31, 2017 Less than 12 Months 12 Months or Longer Total (Dollars in millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Investment securities available for sale: U.S. Treasury securities $ 2,031 $ (8 ) $ 0 $ 0 $ 2,031 $ (8 ) RMBS: Agency 8,192 (67 ) 13,175 (335 ) 21,367 (402 ) Non-agency 10 0 10 (1 ) 20 (1 ) Total RMBS 8,202 (67 ) 13,185 (336 ) 21,387 (403 ) Agency CMBS 880 (8 ) 1,236 (36 ) 2,116 (44 ) Other securities 501 (2 ) 95 (1 ) 596 (3 ) Total investment securities available for sale in a gross unrealized loss position $ 11,614 $ (85 ) $ 14,516 $ (373 ) $ 26,130 $ (458 ) |
Schedule of Contractual Maturities for Securities | The table below summarizes, by major security type, the contractual maturities and weighted-average yields of our investment securities as of December 31, 2018 . Because borrowers may have the right to call or prepay certain obligations, the expected maturities of our securities are likely to differ from the scheduled contractual maturities presented below. The weighted-average yield below represents the effective yield for the investment securities and is calculated based on the amortized cost of each security. Table 3.4 : Contractual Maturities and Weighted-Average Yields of Securities December 31, 2018 (Dollars in millions) Due in 1 Year or Less Due > 1 Year through 5 Years Due > 5 Years through 10 Years Due > 10 Years Total Fair value of securities available for sale: U.S. Treasury securities $ 447 $ 784 $ 4,913 $ 0 $ 6,144 RMBS (1) : Agency 6 23 724 31,150 31,903 Non-agency 0 0 0 1,742 1,742 Total RMBS 6 23 724 32,892 33,645 Agency CMBS (1) 7 1,778 1,687 1,267 4,739 Other securities 233 1,027 342 20 1,622 Total securities available for sale $ 693 $ 3,612 $ 7,666 $ 34,179 $ 46,150 Amortized cost of securities available for sale $ 695 $ 3,642 $ 7,680 $ 34,711 $ 46,728 Weighted-average yield for securities available for sale 1.46 % 2.29 % 2.49 % 2.95 % 2.80 % Carrying value of securities held to maturity: Agency RMBS (1) $ 0 $ 0 $ 51 $ 33,010 $ 33,061 Agency CMBS (1) 0 69 449 3,192 3,710 Total securities held to maturity $ 0 $ 69 $ 500 $ 36,202 $ 36,771 Fair value of securities held to maturity $ 0 $ 70 $ 487 $ 36,062 $ 36,619 Weighted-average yield for securities held to maturity 0.00 % 3.53 % 2.95 % 3.31 % 3.30 % __________ (1) As of December 31, 2018 , the weighted-average expected maturities of RMBS and CMBS are 6.6 years and 5.3 years , respectively. |
Schedule of Gross Realized Gains and Losses on Sale of Available-for-Sale Securities Recognized in Earnings | The following table presents the gross realized gains and losses on the sale of securities available for sale, and the OTTI losses recognized in earnings for the years ended December 31, 2018, 2017 and 2016 . We also present the proceeds from the sale of securities available for sale for the periods presented. We did not sell any investment securities that are classified as held to maturity. Table 3.5 : Realized Gains (Losses) on Securities and OTTI Recognized in Earnings Year Ended December 31, (Dollars in millions) 2018 2017 2016 Realized gains (losses): Gross realized gains $ 13 $ 144 $ 12 Gross realized losses (21 ) (74 ) (6 ) Net realized gains (losses) (8 ) 70 6 OTTI recognized in earnings: Credit-related OTTI (1 ) (2 ) (11 ) Intent-to-sell OTTI (200 ) (3 ) (6 ) Total OTTI recognized in earnings (201 ) (5 ) (17 ) Net securities gains (losses) $ (209 ) $ 65 $ (11 ) Total proceeds from sales $ 6,399 $ 8,181 $ 4,146 |
Schedule of Outstanding Contractual Balance and Carrying Value of Credit-Impaired Debt Securities | The table below presents the outstanding balance and carrying value of the purchased credit-impaired debt securities as of December 31, 2018 and 2017 . Table 3.6 : Outstanding Balance and Carrying Value of Purchased Credit-Impaired Debt Securities (Dollars in millions) December 31, 2018 December 31, 2017 Outstanding balance $ 1,784 $ 2,131 Carrying value 1,537 1,843 |
Schedule of Changes in Accretable Yield of Acquired Securities | The following table presents changes in the accretable yield related to the purchased credit-impaired debt securities for the years ended December 31, 2018, 2017 and 2016 . Table 3.7 : Changes in the Accretable Yield of Purchased Credit-Impaired Debt Securities Year Ended December 31, (Dollars in millions) 2018 2017 2016 Accretable yield, beginning of period $ 826 $ 1,173 $ 1,237 Accretion recognized in earnings (153 ) (182 ) (206 ) Reduction due to payoffs, disposals, transfers and other (3 ) (157 ) (2 ) Net reclassifications (to) from nonaccretable difference 28 (8 ) 144 Accretable yield, end of period $ 698 $ 826 $ 1,173 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loan Portfolio Composition and Aging Analysis | The table below presents the composition and an aging analysis of our loans held for investment portfolio as of December 31, 2018 and 2017 . The delinquency aging includes all past due loans, both performing and nonperforming. Table 4.1 : Loan Portfolio Composition and Aging Analysis December 31, 2018 (Dollars in millions) Current 30-59 Days 60-89 Days > 90 Days Total Delinquent Loans PCI Loans Total Loans Credit Card: Domestic credit card $ 103,014 $ 1,270 $ 954 $ 2,111 $ 4,335 $ 1 $ 107,350 International card businesses 8,678 127 78 128 333 0 9,011 Total credit card 111,692 1,397 1,032 2,239 4,668 1 116,361 Consumer Banking: Auto 52,032 2,624 1,326 359 4,309 0 56,341 Retail banking 2,809 23 8 20 51 4 2,864 Total consumer banking 54,841 2,647 1,334 379 4,360 4 59,205 Commercial Banking: Commercial and multifamily real estate 28,737 101 20 19 140 22 28,899 Commercial and industrial 40,704 135 43 101 279 108 41,091 Total commercial lending 69,441 236 63 120 419 130 69,990 Small-ticket commercial real estate 336 2 1 4 7 0 343 Total commercial banking 69,777 238 64 124 426 130 70,333 Total loans (1) $ 236,310 $ 4,282 $ 2,430 $ 2,742 $ 9,454 $ 135 $ 245,899 % of Total loans 96.1 % 1.7 % 1.0 % 1.1 % 3.8 % 0.1 % 100.0 % December 31, 2017 (Dollars in millions) Current 30-59 Days 60-89 Days > 90 Days Total Delinquent Loans PCI Loans Total Loans Credit Card: Domestic credit card $ 101,072 $ 1,211 $ 915 $ 2,093 $ 4,219 $ 2 $ 105,293 International card businesses 9,110 144 81 134 359 0 9,469 Total credit card 110,182 1,355 996 2,227 4,578 2 114,762 Consumer Banking: Auto 50,151 2,483 1,060 297 3,840 0 53,991 Home loan 7,235 37 16 70 123 10,275 17,633 Retail banking 3,389 24 5 18 47 18 3,454 Total consumer banking 60,775 2,544 1,081 385 4,010 10,293 75,078 Commercial Banking: Commercial and multifamily real estate 26,018 41 17 49 107 25 26,150 Commercial and industrial 37,412 1 70 87 158 455 38,025 Total commercial lending 63,430 42 87 136 265 480 64,175 Small-ticket commercial real estate 393 2 1 4 7 0 400 Total commercial banking 63,823 44 88 140 272 480 64,575 Other loans 54 2 1 1 4 0 58 Total loans (1) $ 234,834 $ 3,945 $ 2,166 $ 2,753 $ 8,864 $ 10,775 $ 254,473 % of Total loans 92.3 % 1.5 % 0.9 % 1.1 % 3.5 % 4.2 % 100.0 % __________ (1) Loans, other than PCI loans, include unamortized premiums and discounts, and unamortized deferred fees and costs totaling $818 million and $773 million as of December 31, 2018 and 2017 |
90 Plus Day Delinquent Loans Accruing Interest and Nonperforming Loans | The following table presents the outstanding balance of loans 90 days or more past due that continue to accrue interest and loans classified as nonperforming as of December 31, 2018 and 2017 . Nonperforming loans generally include loans that have been placed on nonaccrual status. PCI loans are excluded from the table below. Table 4.2 : 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans December 31, 2018 December 31, 2017 (Dollars in millions) > 90 Days and Accruing Nonperforming Loans > 90 Days and Accruing Nonperforming Loans Credit Card: Domestic credit card $ 2,111 N/A $ 2,093 N/A International card businesses 122 $ 22 128 $ 24 Total credit card 2,233 22 2,221 24 Consumer Banking: Auto 0 449 0 376 Home loan 0 0 0 176 Retail banking 0 30 0 35 Total consumer banking 0 479 0 587 December 31, 2018 December 31, 2017 (Dollars in millions) > 90 Days and Accruing Nonperforming Loans > 90 Days and Accruing Nonperforming Loans Commercial Banking: Commercial and multifamily real estate $ 0 $ 83 $ 12 $ 38 Commercial and industrial 0 223 0 239 Total commercial lending 0 306 12 277 Small-ticket commercial real estate 0 6 0 7 Total commercial banking 0 312 12 284 Other loans 0 0 0 4 Total $ 2,233 $ 813 $ 2,233 $ 899 % of Total loans held for investment 0.91 % 0.33 % 0.88 % 0.35 % |
Loans and Leases Receivable Disclosure [Line Items] | |
Impaired Financing Receivables [Table Text Block] | The following table presents information on our impaired loans as of December 31, 2018 and 2017 , and for the years ended December 31, 2018, 2017 and 2016 . Impaired loans include loans modified in troubled debt restructurings (“TDRs”), all nonperforming commercial loans and nonperforming home loans with a specific impairment. Impaired loans without an allowance generally represent loans that have been charged down to the fair value of the underlying collateral for which we believe no additional losses have been incurred, or where the fair value of the underlying collateral meets or exceeds the loan’s amortized cost. PCI loans are excluded from the following tables. Table 4.8 : Impaired Loans December 31, 2018 (Dollars in millions) With an Allowance Without an Allowance Total Recorded Investment Related Allowance Net Recorded Investment Unpaid Principal Balance Credit Card: Domestic credit card $ 666 $ 0 $ 666 $ 186 $ 480 $ 654 International card businesses 189 0 189 91 98 183 Total credit card (1) 855 0 855 277 578 837 Consumer Banking: Auto (2) 301 38 339 22 317 420 Retail banking 42 12 54 5 49 60 Total consumer banking 343 50 393 27 366 480 Commercial Banking: Commercial and multifamily real estate 92 28 120 5 115 121 Commercial and industrial 301 169 470 29 441 593 Total commercial lending 393 197 590 34 556 714 Small-ticket commercial real estate 0 6 6 0 6 9 Total commercial banking 393 203 596 34 562 723 Total $ 1,591 $ 253 $ 1,844 $ 338 $ 1,506 $ 2,040 December 31, 2017 (Dollars in millions) With an Allowance Without an Allowance Total Recorded Investment Related Allowance Net Recorded Investment Unpaid Principal Balance Credit Card: Domestic credit card $ 639 $ 0 $ 639 $ 208 $ 431 $ 625 International card businesses 173 0 173 84 89 167 Total credit card (1) 812 0 812 292 520 792 Consumer Banking: Auto (2) 363 118 481 30 451 730 Home loan 192 41 233 15 218 298 Retail banking 51 10 61 8 53 66 Total consumer banking 606 169 775 53 722 1,094 Commercial Banking: Commercial and multifamily real estate 138 2 140 13 127 143 Commercial and industrial 489 222 711 63 648 844 Total commercial lending 627 224 851 76 775 987 Small-ticket commercial real estate 7 0 7 0 7 9 Total commercial banking 634 224 858 76 782 996 Total $ 2,052 $ 393 $ 2,445 $ 421 $ 2,024 $ 2,882 Year Ended December 31, 2018 2017 2016 (Dollars in millions) Average Interest Average Interest Average Interest Credit Card: Domestic credit card $ 655 $ 63 $ 602 $ 63 $ 540 $ 58 International card businesses 184 12 154 11 133 10 Total credit card (1) 839 75 756 74 673 68 Consumer Banking: Auto (2) 397 45 495 53 501 86 Home loan 91 1 299 5 361 5 Retail banking 59 2 59 1 62 2 Total consumer banking 547 48 853 59 924 93 Commercial Banking: Commercial and multifamily real estate 93 2 134 4 111 3 Commercial and industrial 621 20 1,118 18 1,215 13 Total commercial lending 714 22 1,252 22 1,326 16 Small-ticket commercial real estate 5 0 7 0 7 0 Total commercial banking 719 22 1,259 22 1,333 16 Total $ 2,105 $ 145 $ 2,868 $ 155 $ 2,930 $ 177 __________ (1) The period-end and average recorded investments of credit card loans include finance charges and fees. (2) |
TDR Disclosures in Progress Financial Impact of Modification | The following tables present the major modification types, recorded investment amounts and financial effects of loans modified in TDRs during the years ended December 31, 2018 , 2017 and 2016 . Table 4.9 : Troubled Debt Restructurings Total Loans (1) Year Ended December 31, 2018 Reduced Interest Rate Term Extension Balance Reduction (Dollars in millions) % of (2) Average % of (2) Average % of (2) Gross Credit Card: Domestic credit card $ 412 100 % 15.93 % 0 % 0 0 % $ 0 International card businesses 184 100 26.96 0 0 0 0 Total credit card 596 100 19.34 0 0 0 0 Consumer Banking: Auto (3) 227 49 3.88 89 8 1 1 Home loan 6 28 1.78 83 214 0 0 Retail banking 8 16 10.92 43 12 0 0 Total consumer banking 241 48 3.93 87 13 1 1 Commercial Banking: Commercial and multifamily real estate 43 0 0.00 80 5 0 0 Commercial and industrial 170 0 1.03 54 13 0 0 Total commercial lending 213 0 1.03 60 11 0 0 Small-ticket commercial real estate 3 0 0.00 0 0 0 0 Total commercial banking 216 0 1.03 59 11 0 0 Total $ 1,053 68 16.84 32 12 0 $ 1 Total Loans (1) Year Ended December 31, 2017 Reduced Interest Rate Term Extension Balance Reduction (Dollars in millions) % of (2) Average % of (2) Average % of (2) Gross Credit Card: Domestic credit card $ 406 100 % 14.50 % 0 % 0 0 % $ 0 International card businesses 169 100 26.51 0 0 0 0 Total credit card 575 100 18.02 0 0 0 0 Consumer Banking: Auto (3) 324 44 3.82 95 6 2 7 Home loan 19 48 2.77 78 233 2 0 Retail banking 13 22 5.77 73 10 0 0 Total consumer banking 356 44 3.79 93 16 2 7 Commercial Banking: Commercial and multifamily real estate 29 7 0.02 26 5 0 0 Commercial and industrial 557 19 0.80 59 17 0 0 Total commercial lending 586 18 0.79 57 16 0 0 Small-ticket commercial real estate 3 0 0.00 4 0 0 0 Total commercial banking 589 18 0.79 57 16 0 0 Total $ 1,520 55 13.19 44 16 0 $ 7 Total Loans (1) Year Ended December 31, 2016 Reduced Interest Rate Term Extension Balance Reduction (Dollars in millions) % of (2) Average % of (2) Average % of (2) Gross Credit Card: Domestic credit card $ 312 100 % 13.19 % 0 % 0 0 % $ 0 International card businesses 138 100 25.87 0 0 0 0 Total credit card 450 100 17.09 0 0 0 0 Consumer Banking: Auto (3) 356 44 3.91 74 7 25 78 Home loan 48 64 2.25 87 243 2 0 Retail banking 18 23 7.89 68 10 9 1 Total consumer banking 422 46 3.73 75 38 22 79 Commercial Banking: Commercial and multifamily real estate 38 0 0.00 67 6 32 3 Commercial and industrial 743 5 0.09 57 20 7 26 Total commercial lending 781 4 0.09 57 19 8 29 Small-ticket commercial real estate 1 0 0.00 0 0 0 0 Total commercial banking 782 4 0.09 57 19 8 29 Total $ 1,654 41 12.42 46 27 9 $ 108 __________ (1) Represents the recorded investment of total loans modified in TDRs at the end of the quarter in which they were modified. As not every modification type is included in the table above, the total percentage of TDR activity may not add up to 100%. Some loans may receive more than one type of concession as part of the modification. (2) Due to multiple concessions granted to some troubled borrowers, percentages may total more than 100% for certain loan types. (3) Includes certain TDRs that are recorded as other assets on our consolidated balance sheets. Subsequent Defaults of Completed TDR Modifications The following table presents the type, number and recorded investment of loans modified in TDRs that experienced a default during the period and had completed a modification event in the twelve months prior to the default. A default occurs if the loan is either 90 days or more delinquent, has been charged off as of the end of the period presented or has been reclassified from accrual to nonaccrual status. Table 4.10 : TDR — Subsequent Defaults Year Ended December 31, 2018 2017 2016 (Dollars in millions) Number of Amount Number of Amount Number of Amount Credit Card: Domestic credit card 61,070 $ 126 55,121 $ 111 42,250 $ 73 International card businesses 61,014 106 51,641 93 40,498 82 Total credit card 122,084 232 106,762 204 82,748 155 Consumer Banking: Auto 6,980 79 9,446 109 8,587 96 Home loan 3 1 28 7 56 7 Retail banking 26 2 41 4 48 9 Total consumer banking 7,009 82 9,515 120 8,691 112 Commercial Banking: Commercial and multifamily real estate 1 3 0 0 1 1 Commercial and industrial 26 120 244 269 150 281 Total commercial lending 27 123 244 269 151 282 Small-ticket commercial real estate 0 0 2 1 7 1 Total commercial banking 27 123 246 270 158 283 Total 129,120 $ 437 116,523 $ 594 91,597 $ 550 |
Credit Card Portfolio Segment | |
Loans and Leases Receivable Disclosure [Line Items] | |
Schedule of Concentration Risk, by Risk Factor, Including Delinquency and Performing Status | The table below displays the geographic profile of our credit card loan portfolio as of December 31, 2018 and 2017 . Table 4.3 : Credit Card Risk Profile by Geographic Region December 31, 2018 December 31, 2017 (Dollars in millions) Amount % of Total Amount % of Total Domestic credit card: California $ 11,591 10.0 % $ 11,475 10.0 % Texas 8,173 7.0 7,847 6.8 New York 7,400 6.4 7,389 6.4 Florida 7,086 6.1 6,790 5.9 Illinois 4,761 4.1 4,734 4.1 Pennsylvania 4,575 3.9 4,550 4.0 Ohio 3,967 3.4 3,929 3.4 New Jersey 3,641 3.1 3,621 3.2 Michigan 3,544 3.0 3,523 3.1 Other 52,612 45.3 51,435 44.8 Total domestic credit card 107,350 92.3 105,293 91.7 International card businesses: Canada 6,023 5.1 6,286 5.5 United Kingdom 2,988 2.6 3,183 2.8 Total international card businesses 9,011 7.7 9,469 8.3 Total credit card $ 116,361 100.0 % $ 114,762 100.0 % |
Schedule of Net Charge-Offs | The table below presents net charge-offs for the years ended December 31, 2018, 2017 and 2016 . Table 4.4 : Credit Card Net Charge-Offs Year Ended December 31, 2018 2017 2016 (Dollars in millions) Amount Rate (1) Amount Rate (1) Amount Rate (1) Net charge-offs: (1) Domestic credit card $ 4,782 4.74 % $ 4,739 4.99 % $ 3,681 4.16 % International card businesses 287 3.19 315 3.69 272 3.33 Total credit card $ 5,069 4.62 $ 5,054 4.88 $ 3,953 4.09 __________ (1) Net charge-offs consist of the unpaid principal balance of loans held for investment that we determine to be uncollectible, net of recovered amounts. Net charge-off rate is calculated by dividing net charge-offs by average loans held for investment for the period for each loan category. |
Consumer Portfolio Segment | |
Loans and Leases Receivable Disclosure [Line Items] | |
Schedule of Concentration Risk, by Risk Factor, Including Delinquency and Performing Status | The table below displays the geographic profile of our consumer banking loan portfolio as of December 31, 2018 and 2017 . Table 4.5 : Consumer Banking Risk Profile by Geographic Region December 31, 2018 December 31, 2017 (Dollars in millions) Amount % of Total Amount % of Total Auto: Texas $ 7,264 12.3 % $ 7,040 9.4 % California 6,352 10.7 6,099 8.1 Florida 4,623 7.8 4,486 6.0 Georgia 2,665 4.5 2,726 3.6 Ohio 2,502 4.2 2,318 3.1 Louisiana 2,174 3.7 2,236 3.0 Illinois 2,171 3.7 2,181 2.9 Pennsylvania 2,167 3.7 2,014 2.7 Other 26,423 44.6 24,891 33.1 Total auto 56,341 95.2 53,991 71.9 Retail banking: New York 837 1.4 955 1.3 Louisiana 772 1.3 953 1.3 Texas 647 1.1 717 0.9 New Jersey 201 0.3 221 0.3 Maryland 161 0.3 187 0.2 Virginia 137 0.2 154 0.2 Other 109 0.2 267 0.4 Total retail banking 2,864 4.8 3,454 4.6 Total home loan 0 0.0 17,633 23.5 Total consumer banking $ 59,205 100.0 % $ 75,078 100.0 % |
Schedule of Net Charge-Offs | The table below presents net charge-offs in our consumer banking loan portfolio for the years ended December 31, 2018, 2017 and 2016 , as well as nonperforming loans as of December 31, 2018 and 2017 . Table 4.6 : Consumer Banking Net Charge-Offs and Nonperforming Loans Year Ended December 31, 2018 2017 2016 (Dollars in millions) Amount Rate (1) Amount Rate (1) Amount Rate (1) Net charge-offs (recoveries): Auto $ 912 1.64 % $ 957 1.86 % $ 752 1.69 % Home loan (1 ) (0.02 ) 15 0.08 14 0.06 Retail banking 70 2.26 66 1.92 54 1.53 Total consumer banking $ 981 1.51 $ 1,038 1.39 $ 820 1.15 December 31, 2018 December 31, 2017 (Dollars in millions) Amount Rate (2) Amount Rate (2) Nonperforming loans: Auto $ 449 0.80 % $ 376 0.70 % Home loan 0 0.00 176 1.00 Retail banking 30 1.04 35 1.00 Total consumer banking $ 479 0.81 $ 587 0.78 __________ (1) Net charge-off (recovery) rate is calculated by dividing net charge-offs (recoveries) by average loans held for investment for the period for each loan category. (2) |
Commercial Banking | |
Loans and Leases Receivable Disclosure [Line Items] | |
Schedule of Concentration of Risk, by Risk Factor | The following table presents the geographic concentration and internal risk ratings of our commercial loan portfolio as of December 31, 2018 and 2017 . Table 4.7 : Commercial Banking Risk Profile by Geographic Region and Internal Risk Rating December 31, 2018 (Dollars in millions) Commercial and Multifamily Real Estate % of Total Commercial and Industrial % of Total Small-Ticket Commercial Real Estate % of Total Total Commercial Banking % of Total Geographic concentration: (1) Northeast $ 15,562 53.8 % $ 7,573 18.4 % $ 213 62.1 % $ 23,348 33.2 % Mid-Atlantic 3,410 11.8 4,710 11.5 12 3.5 8,132 11.6 South 4,247 14.7 15,367 37.4 20 5.8 19,634 27.9 Other 5,680 19.7 13,441 32.7 98 28.6 19,219 27.3 Total $ 28,899 100.0 % $ 41,091 100.0 % $ 343 100.0 % $ 70,333 100.0 % Internal risk rating: (2) Noncriticized $ 28,239 97.7 % $ 39,468 96.1 % $ 336 98.0 % $ 68,043 96.8 % Criticized performing 555 1.9 1,292 3.1 1 0.3 1,848 2.6 Criticized nonperforming 83 0.3 223 0.5 6 1.7 312 0.4 PCI loans 22 0.1 108 0.3 0 0.0 130 0.2 Total $ 28,899 100.0 % $ 41,091 100.0 % $ 343 100.0 % $ 70,333 100.0 % December 31, 2017 (Dollars in millions) Commercial and Multifamily Real Estate % of Total (1) Commercial and Industrial % of Total Small-Ticket Commercial Real Estate % of Total Total Commercial Banking % of Total Geographic concentration: (1) Northeast $ 14,969 57.3 % $ 7,774 20.4 % $ 250 62.4 % $ 22,993 35.7 % Mid-Atlantic 2,675 10.2 3,922 10.3 15 3.8 6,612 10.2 South 3,719 14.2 14,739 38.8 22 5.5 18,480 28.6 Other 4,787 18.3 11,590 30.5 113 28.3 16,490 25.5 Total $ 26,150 100.0 % $ 38,025 100.0 % $ 400 100.0 % $ 64,575 100.0 % Internal risk rating: (2) Noncriticized $ 25,609 98.0 % $ 35,161 92.5 % $ 392 97.9 % $ 61,162 94.7 % Criticized performing 478 1.8 2,170 5.7 1 0.3 2,649 4.1 Criticized nonperforming 38 0.1 239 0.6 7 1.8 284 0.4 PCI loans 25 0.1 455 1.2 0 0.0 480 0.8 Total $ 26,150 100.0 % $ 38,025 100.0 % $ 400 100.0 % $ 64,575 100.0 % __________ (1) Geographic concentration is generally determined by the location of the borrower’s business or the location of the collateral associated with the loan. Northeast consists of CT, MA, ME, NH, NJ, NY, PA and VT. Mid-Atlantic consists of DC, DE, MD, VA and WV. South consists of AL, AR, FL, GA, KY, LA, MO, MS, NC, SC, TN and TX. (2) |
Allowance for Loan and Lease _2
Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance for Credit Losses on Financing Receivables | The table below summarizes changes in the allowance for loan and lease losses and reserve for unfunded lending commitments by portfolio segment for the years ended December 31, 2018, 2017 and 2016 . Table 5.1 : Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity (Dollars in millions) Credit Card Consumer Commercial Banking Other (1)(2) Total Allowance for loan and lease losses: Balance as of December 31, 2015 $ 3,654 $ 868 $ 604 $ 4 $ 5,130 Charge-offs (5,019 ) (1,226 ) (307 ) (3 ) (6,555 ) Recoveries (3) 1,066 406 15 6 1,493 Net charge-offs (3,953 ) (820 ) (292 ) 3 (5,062 ) Provision (benefit) for loan and lease losses 4,926 1,055 515 (5 ) 6,491 Allowance build (release) for loan and lease losses 973 235 223 (2 ) 1,429 Other changes (4) (21 ) (1 ) (34 ) 0 (56 ) Balance as of December 31, 2016 4,606 1,102 793 2 6,503 Reserve for unfunded lending commitments: Balance as of December 31, 2015 0 7 161 0 168 Benefit for losses on unfunded lending commitments 0 0 (32 ) 0 (32 ) Balance as of December 31, 2016 0 7 129 0 136 Combined allowance and reserve as of December 31, 2016 $ 4,606 $ 1,109 $ 922 $ 2 $ 6,639 Allowance for loan and lease losses: Balance as of December 31, 2016 $ 4,606 $ 1,102 $ 793 $ 2 $ 6,503 Charge-offs (6,321 ) (1,677 ) (481 ) (34 ) (8,513 ) Recoveries (3) 1,267 639 16 29 1,951 Net charge-offs (5,054 ) (1,038 ) (465 ) (5 ) (6,562 ) Provision for loan and lease losses 6,066 1,180 313 4 7,563 Allowance build (release) for loan and lease losses 1,012 142 (152 ) (1 ) 1,001 Other changes (4) 30 (2 ) (30 ) 0 (2 ) Balance as of December 31, 2017 5,648 1,242 611 1 7,502 Reserve for unfunded lending commitments: Balance as of December 31, 2016 0 7 129 0 136 Benefit for losses on unfunded lending commitments 0 0 (12 ) 0 (12 ) Balance as of December 31, 2017 0 7 117 0 124 Combined allowance and reserve as of December 31, 2017 $ 5,648 $ 1,249 $ 728 $ 1 $ 7,626 (Dollars in millions) Credit Card Consumer Commercial Banking Other (1)(2) Total Allowance for loan and lease losses: Balance as of December 31, 2017 $ 5,648 $ 1,242 $ 611 $ 1 $ 7,502 Charge-offs (6,657 ) (1,832 ) (119 ) (7 ) (8,615 ) Recoveries (3) 1,588 851 63 1 2,503 Net charge-offs (5,069 ) (981 ) (56 ) (6 ) (6,112 ) Provision (benefit) for loan and lease losses 4,984 841 82 (49 ) 5,858 Allowance build (release) for loan and lease losses (85 ) (140 ) 26 (55 ) (254 ) Other changes (1)(4) (28 ) (54 ) 0 54 (28 ) Balance as of December 31, 2018 5,535 1,048 637 0 7,220 Reserve for unfunded lending commitments: Balance as of December 31, 2017 0 7 117 0 124 Provision (benefit) for losses on unfunded lending commitments 0 (3 ) 1 0 (2 ) Balance as of December 31, 2018 0 4 118 0 122 Combined allowance and reserve as of December 31, 2018 $ 5,535 $ 1,052 $ 755 $ 0 $ 7,342 __________ (1) In 2018, we sold all of our consumer home loan portfolio and recognized a gain of approximately $499 million in the Other category, including a benefit for credit losses of $46 million . (2) Includes the legacy loan portfolio of our discontinued GreenPoint mortgage operations. (3) The amount and timing of recoveries is impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications, repossession of collateral, the periodic sale of charged-off loans as well as additional strategies, such as litigation. (4) Represents foreign currency translation adjustments and the net impact of loan transfers and sales where applicable. December 31, 2018 and 2017 . See “ Note 1—Summary of Significant Accounting Policies ” for further discussion of allowance methodologies for each of the loan portfolios. Table 5.2 : Components of Allowance for Loan and Lease Losses by Impairment Methodology December 31, 2018 (Dollars in millions) Credit Card Consumer Banking Commercial Banking Total Allowance for loan and lease losses: Collectively evaluated $ 5,258 $ 1,021 $ 603 $ 6,882 Asset-specific 277 27 34 338 Total allowance for loan and lease losses $ 5,535 $ 1,048 $ 637 $ 7,220 Loans held for investment: Collectively evaluated $ 115,505 $ 58,808 $ 69,607 $ 243,920 Asset-specific 855 393 596 1,844 PCI loans 1 4 130 135 Total loans held for investment $ 116,361 $ 59,205 $ 70,333 $ 245,899 Allowance coverage ratio (1) 4.76 % 1.77 % 0.91 % 2.94 % December 31, 2017 (Dollars in millions) Credit Consumer Banking Commercial Banking Other Total Allowance for loan and lease losses: Collectively evaluated $ 5,356 $ 1,158 $ 529 $ 1 $ 7,044 Asset-specific 292 53 76 0 421 PCI loans 0 31 6 0 37 Total allowance for loan and lease losses $ 5,648 $ 1,242 $ 611 $ 1 $ 7,502 Loans held for investment: Collectively evaluated $ 113,948 $ 64,080 $ 63,237 $ 58 $ 241,323 Asset-specific 812 705 858 0 2,375 PCI loans 2 10,293 480 0 10,775 Total loans held for investment $ 114,762 $ 75,078 $ 64,575 $ 58 $ 254,473 Allowance coverage ratio (1) 4.92 % 1.65 % 0.95 % 1.72 % 2.95 % __________ (1) |
Schedule of Loss sharing arrangement impact | The table below summarizes the changes in the estimated reimbursements from these partners for the years ended December 31, 2018, 2017 and 2016 . Table 5.3 : Summary of Loss Sharing Arrangements Impacts (Dollars in millions) Estimated Reimbursements from Loss Sharing Partners Balance as of December 31, 2015 $ 194 Amounts due from partners which reduced net charge-offs (229 ) Amounts estimated to be charged to partners which reduced provision for credit losses 263 Balance as of December 31, 2016 228 Amounts due from partners which reduced net charge-offs (285 ) Amounts estimated to be charged to partners which reduced provision for credit losses 437 Balance as of December 31, 2017 380 Amounts due from partners which reduced net charge-offs (382 ) Amounts estimated to be charged to partners which reduced provision for credit losses 381 Balance as of December 31, 2018 $ 379 |
Variable Interest Entities an_2
Variable Interest Entities and Securitizations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities and Securitization [Abstract] | |
Carrying Amount of Assets and Liabilities of Variable Interest Entities | The tables below present a summary of VIEs in which we had continuing involvement or held a variable interest, aggregated based on VIEs with similar characteristics as of December 31, 2018 and 2017 . We separately present information for consolidated and unconsolidated VIEs. Table 6.1 : Carrying Amount of Consolidated and Unconsolidated VIEs December 31, 2018 Consolidated Unconsolidated (Dollars in millions) Carrying Amount of Assets Carrying Amount of Liabilities Carrying Amount of Assets Carrying Amount of Liabilities Maximum Exposure to Loss Securitization-Related VIEs: Credit card loan securitizations (1) $ 33,574 $ 18,885 $ 0 $ 0 $ 0 Home loan securitizations 0 0 211 74 554 Total securitization-related VIEs 33,574 18,885 211 74 554 Other VIEs: (2) Affordable housing entities 243 17 4,238 1,303 4,238 Entities that provide capital to low-income and rural communities 1,739 117 0 0 0 Other 0 0 353 0 353 Total other VIEs 1,982 134 4,591 1,303 4,591 Total VIEs $ 35,556 $ 19,019 $ 4,802 $ 1,377 $ 5,145 December 31, 2017 Consolidated Unconsolidated (Dollars in millions) Carrying Amount of Assets Carrying Amount of Liabilities Carrying Amount of Assets Carrying Amount of Liabilities Maximum Exposure to Loss Securitization-Related VIEs: Credit card loan securitizations (1) $ 34,976 $ 20,651 $ 0 $ 0 $ 0 Home loan securitizations 0 0 455 390 1,057 Total securitization-related VIEs 34,976 20,651 455 390 1,057 Other VIEs: (2) Affordable housing entities 226 10 4,175 1,284 4,175 Entities that provide capital to low-income and rural communities 1,498 129 0 0 0 Other 0 0 318 0 318 Total other VIEs 1,724 139 4,493 1,284 4,493 Total VIEs $ 36,700 $ 20,790 $ 4,948 $ 1,674 $ 5,550 __________ (1) Represents the carrying amount of assets and liabilities owned by the VIE, which includes the seller’s interest and repurchased notes held by other related parties. (2) In certain investment structures, we consolidate a VIE which in turn holds as its primary asset an investment in an unconsolidated VIE. In these instances, we disclose the carrying amount of assets and liabilities on our consolidated balance sheets as unconsolidated VIEs to avoid duplicating our exposure, as the unconsolidated VIEs are generally the operating entities generating the exposure. The carrying amount of assets and liabilities included in the unconsolidated VIE columns above related to these investment structures were $2.3 billion of assets and $811 million of liabilities as of December 31, 2018 and $2.2 billion of assets and $901 million of liabilities as of December 31, 2017 |
External Debt and Receivable Balances of Securitization Programs | The table below presents our continuing involvement in certain securitization-related VIEs as of December 31, 2018 and 2017 . Table 6.2 : Continuing Involvement in Securitization-Related VIEs (Dollars in millions) Credit Card Mortgages December 31, 2018: Securities held by third-party investors $ 18,307 $ 1,276 Receivables in the trust 34,197 1,305 Cash balance of spread or reserve accounts 0 116 Retained interests Yes Yes Servicing retained Yes Yes (1) December 31, 2017: Securities held by third-party investors $ 20,010 $ 1,774 Receivables in the trust 35,667 1,812 Cash balance of spread or reserve accounts 0 124 Retained interests Yes Yes Servicing retained Yes Yes (1) __________ (1) We retain servicing on a portion of our remaining mortgage loans in mortgage securitizations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Goodwill, Intangible Assets and MSRs | The table below presents our goodwill, intangible assets and MSRs as of December 31, 2018 and 2017 . Goodwill is presented separately, while intangible assets and MSRs are included in other assets on our consolidated balance sheets. Table 7.1 : Components of Goodwill, Intangible Assets and MSRs December 31, 2018 (Dollars in millions) Carrying Accumulated Amortization Net Remaining Goodwill $ 14,544 N/A $ 14,544 N/A Intangible assets: Purchased credit card relationship (“PCCR”) intangibles 2,102 $ (1,952 ) 150 3.7 years Core deposit intangibles 1,149 (1,148 ) 1 0.2 years Other (1) 271 (168 ) 103 7.1 years Total intangible assets 3,522 (3,268 ) 254 5.0 years Total goodwill and intangible assets $ 18,066 $ (3,268 ) $ 14,798 Commercial MSRs (2) $ 459 $ (185 ) $ 274 December 31, 2017 (Dollars in millions) Carrying Accumulated Amortization Net Remaining Goodwill $ 14,533 N/A $ 14,533 N/A Intangible assets: PCCR intangibles 2,105 $ (1,844 ) 261 3.6 years Core deposit intangibles 1,149 (1,133 ) 16 1.0 years Other (1) 300 (156 ) 144 7.8 years Total intangible assets 3,554 (3,133 ) 421 4.9 years Total goodwill and intangible assets $ 18,087 $ (3,133 ) $ 14,954 MSRs: Consumer MSRs (3) $ 92 N/A $ 92 Commercial MSRs (2) 355 $ (126 ) 229 Total MSRs $ 447 $ (126 ) $ 321 __________ (1) Primarily consists of intangibles for sponsorship relationships, partnership and other contract intangibles and trade name intangibles. (2) Commercial MSRs are accounted for under the amortization method on our consolidated balance sheets. We recorded $59 million and $44 million of amortization expense for the years ended December 31, 2018 and 2017 , respectively. (3) |
Goodwill Attributable to Business Segments | The following table presents changes in the carrying amount of goodwill by each of our business segments as of December 31, 2018 and 2017 . We did not recognize any goodwill impairment during 2018 , 2017 or 2016 . Table 7.2 : Goodwill by Business Segments (Dollars in millions) Credit Card Consumer Banking Commercial Banking Total Balance as of December 31, 2015 $ 4,997 $ 4,600 $ 4,883 $ 14,480 Acquisitions 36 0 18 54 Other adjustments (1) (15 ) 0 0 (15 ) Balance as of December 31, 2016 5,018 4,600 4,901 14,519 Acquisitions 6 0 0 6 Other adjustments (1) 8 0 0 8 Balance as of December 31, 2017 5,032 4,600 4,901 14,533 Acquisitions 33 0 0 33 Reductions in goodwill related to divestitures 0 0 (17 ) (17 ) Other adjustments (1) (5 ) 0 0 (5 ) Balance as of December 31, 2018 $ 5,060 $ 4,600 $ 4,884 $ 14,544 __________ (1) Represents foreign currency translation adjustments. |
Schedule of Finite-Lived Intangible Assets Amortization Expenses and Future Amortization Expense | The following table summarizes the actual amortization expense recorded for the years ended December 31, 2018 , 2017 and 2016 and the estimated future amortization expense for intangible assets as of December 31, 2018 : Table 7.3: Amortization Expense (Dollars in millions) Amortization Actual for the year ended December 31, 2016 $ 386 2017 245 2018 174 Estimated future amounts for the year ended December 31, 2019 109 2020 58 2021 28 2022 20 2023 14 Thereafter 17 Total estimated future amounts $ 246 |
Premises, Equipment & Lease C_2
Premises, Equipment & Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment and Lease Commitments [Abstract] | |
Schedule of Property, Plant and Equipment | Useful lives for premises and equipment are estimated as follows: Premises and Equipment Useful Lives Buildings and improvements 5-39 years Furniture and equipment 3-10 years Computer software 3 years Leasehold improvements Lesser of the useful life or the remaining December 31, 2018 and 2017 . Table 8.1 : Components of Premises and Equipment December 31, (Dollars in millions) 2018 2017 Land $ 386 $ 406 Buildings and improvements 3,994 3,302 Furniture and equipment 2,018 1,901 Computer software 1,847 1,753 In progress 482 902 Total premises and equipment, gross 8,727 8,264 Less: Accumulated depreciation and amortization (4,536 ) (4,231 ) Total premises and equipment, net $ 4,191 $ 4,033 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum rental commitments as of December 31, 2018 , for all non-cancellable operating leases with initial or remaining terms of one year or more are as follows: Table 8.2 : Lease Commitments (Dollars in millions) Estimated Future 2019 $ 352 2020 309 2021 279 2022 249 2023 213 Thereafter 949 Total $ 2,351 |
Deposits and Borrowings (Tables
Deposits and Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits and Borrowings [Abstract] | |
Components of Deposits, Short-term Borrowings and Long-term Debt | The following tables summarize the components of our deposits, short-term borrowings and long-term debt as of December 31, 2018 and 2017 . Our total short-term borrowings consist of federal funds purchased, securities loaned or sold under agreements to repurchase, and short-term FHLB advances. Our long-term debt consists of borrowings with an original contractual maturity of greater than one year. The carrying value presented below for these borrowings includes unamortized debt premiums and discounts, net of debt issuance costs and fair value hedge accounting adjustments. Table 9.1 : C omponents of Deposits, Short-Term Borrowings and Long-Term Debt (Dollars in millions) December 31, December 31, Deposits: Non-interest-bearing deposits $ 23,483 $ 26,404 Interest-bearing deposits (1) 226,281 217,298 Total deposits $ 249,764 $ 243,702 Short-term borrowings: Federal funds purchased and securities loaned or sold under agreements to repurchase $ 352 $ 576 FHLB advances 9,050 0 Total short-term borrowings $ 9,402 $ 576 December 31, 2018 December 31, (Dollars in millions) Maturity Dates Stated Interest Rates Weighted- Average Interest Rate Carrying Value Carrying Value Long-term debt: Securitized debt obligations 2019-2025 1.33 - 3.31% 2.31 % $ 18,307 $ 20,010 Senior and subordinated notes: Fixed unsecured senior debt 2019-2028 1.85 - 4.75 3.03 23,290 22,776 Floating unsecured senior debt 2019-2023 2.97 - 3.72 3.39 2,993 3,446 Total unsecured senior debt 3.08 26,283 26,222 Fixed unsecured subordinated debt 2019-2026 3.38 - 8.80 4.09 4,543 4,533 Total senior and subordinated notes 30,826 30,755 Other long-term borrowings: FHLB advances 2020-2023 2.48 - 5.36 2.49 251 8,609 Other borrowings 2019-2035 1.00 - 13.63 6.16 119 331 Total other long-term borrowings 370 8,940 Total long-term debt $ 49,503 $ 59,705 Total short-term borrowings and long-term debt $ 58,905 $ 60,281 __________ (1) Includes $4.0 billion and $1.3 billion of time deposits in denominations in excess of the $250,000 federal insurance limit as of December 31, 2018 and 2017 , respectively. |
Schedule of Maturity Profile of Borrowings and Debt | The following table presents the carrying value of our interest-bearing time deposits, securitized debt obligations and other debt by remaining contractual maturity as of December 31, 2018 . Table 9.2 : Maturity Profile of Borrowings (Dollars in millions) 2019 2020 2021 2022 2023 Thereafter Total Interest-bearing time deposits $ 22,548 $ 6,524 $ 4,065 $ 4,036 $ 1,176 $ 122 $ 38,471 Securitized debt obligations 6,845 5,266 2,298 2,531 714 653 18,307 Federal funds purchased and securities loaned or sold under agreements to repurchase 352 0 0 0 0 0 352 Senior and subordinated notes 5,314 4,350 4,920 2,504 4,163 9,575 30,826 Other borrowings 9,060 310 6 6 5 33 9,420 Total $ 44,119 $ 16,450 $ 11,289 $ 9,077 $ 6,058 $ 10,383 $ 97,376 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative assets and liabilities at fair value | The following table summarizes the notional and fair values of our derivative instruments as of December 31, 2018 and 2017 , which are segregated by derivatives that are designated as accounting hedges and those that are not, and are further segregated by type of contract within those two categories. The total derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and any associated cash collateral received or pledged. Derivative assets and liabilities are included in other assets and other liabilities, respectively, on our consolidated balance sheets. Table 10.1 : Derivative Assets and Liabilities at Fair Value December 31, 2018 December 31, 2017 Notional or Contractual Amount Derivative (1)(2) Notional or Contractual Amount Derivative (1) (Dollars in millions) Assets Liabilities Assets Liabilities Derivatives designated as accounting hedges: Interest rate contracts: Fair value hedges $ 53,413 $ 64 $ 28 $ 56,604 $ 102 $ 164 Cash flow hedges 81,200 83 70 77,300 30 125 Total interest rate contracts 134,613 147 98 133,904 132 289 Foreign exchange contracts: Cash flow hedges 5,745 184 2 6,086 19 75 Net investment hedges 2,607 178 0 3,036 1 164 Total foreign exchange contracts 8,352 362 2 9,122 20 239 Total derivatives designated as accounting hedges 142,965 509 100 143,026 152 528 Derivatives not designated as accounting hedges: Customer accommodation: Interest rate contracts 49,386 190 256 39,429 316 221 Commodity contracts 10,673 797 786 8,111 518 496 Foreign exchange and other contracts 1,418 12 11 980 14 10 Total customer accommodation 61,477 999 1,053 48,520 848 727 Other interest rate exposures (3) 6,427 29 36 3,857 40 8 Other contracts 1,636 2 12 1,209 0 5 Total derivatives not designated as accounting hedges 69,540 1,030 1,101 53,586 888 740 Total derivatives $ 212,505 $ 1,539 $ 1,201 $ 196,612 $ 1,040 $ 1,268 Less: netting adjustment (4) (1,079 ) (287 ) (275 ) (662 ) Total derivative assets/liabilities $ 460 $ 914 $ 765 $ 606 __________ (1) Derivative assets and liabilities presented above exclude valuation adjustments related to non-performance risk. As of December 31, 2018 and 2017 , the cumulative CVA balances were $3 million and $2 million , respectively, and the cumulative DVA balances were approximately $1 million as of both December 31, 2018 and 2017 . (2) Reflects a reduction in derivative assets of $431 million and a reduction in derivative liabilities of $397 million on our consolidated balance sheets as a result of adopting the LCH variation margin rule change in the first quarter of 2018. (3) Other interest rate exposures include commercial mortgage-related derivatives and interest rate swaps. (4) |
Hedged item in fair value hedging relationship | The following table summarizes the carrying value of our hedged assets and liabilities in fair value hedges and the associated cumulative basis adjustments included in those carrying values as of December 31, 2018 . Table 10.2 : Hedged Items in Fair Value Hedging Relationships December 31, 2018 Carrying Amount Assets/(Liabilities) Cumulative Amount of Basis Adjustments Included in the Carrying Amount (Dollars in millions) Total Assets/(Liabilities) Discontinued-Hedging Relationships Line item on our consolidated balance sheets in which the hedged item is included: Investment securities available for sale (1)(2) $ 14,067 $ (6 ) $ (2 ) Interest-bearing deposits (13,101 ) 247 0 Securitized debt obligations (5,887 ) 168 143 Senior and subordinated notes (23,572 ) 315 392 __________ (1) These amounts include the amortized cost basis of our investment securities designated in hedging relationships for which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. As of December 31, 2018 , the amortized cost basis of this portfolio was $8.3 billion , the amount of the designated hedged items was $4.0 billion , and the cumulative basis adjustment associated with these hedges was $26 million . (2) |
Offsetting Assets | The following table presents as of December 31, 2018 and 2017 the gross and net fair values of our derivative assets and liabilities and repurchase agreements, as well as the related offsetting amounts permitted under U.S. GAAP. The table also includes cash and non-cash collateral received or pledged in accordance with such arrangements. The amount of collateral presented, however, is limited to the amount of the related net derivative fair values or outstanding balances; therefore, instances of over-collateralization are excluded. Table 10.3 : Offsetting of Financial Assets and Financial Liabilities Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts as Recognized Securities Collateral Held Under Master Netting Agreements (Dollars in millions) Financial Instruments Cash Collateral Received Net Exposure As of December 31, 2018 Derivative assets (1)(2) $ 1,539 $ (205 ) $ (874 ) $ 460 $ 0 $ 460 As of December 31, 2017 Derivative assets (1) 1,040 (202 ) (73 ) 765 0 765 Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts as Recognized Securities Collateral Pledged Under Master Netting Agreements (Dollars in millions) Financial Instruments Cash Collateral Pledged Net Exposure As of December 31, 2018 Derivative liabilities (1)(2) $ 1,201 $ (205 ) $ (82 ) $ 914 $ 0 $ 914 Repurchase agreements (3) 352 0 0 352 (352 ) 0 As of December 31, 2017 Derivative liabilities (1) 1,268 (202 ) (460 ) 606 0 606 Repurchase agreements 576 0 0 576 (576 ) 0 __________ (1) We received cash collateral from derivative counterparties totaling $925 million and $91 million as of December 31, 2018 and 2017 , respectively. We also received securities from derivative counterparties with a fair value of $1 million as of both December 31, 2018 and 2017 , which we have the ability to re-pledge. We posted $633 million and $966 million of cash collateral as of December 31, 2018 and 2017 , respectively. (2) Reflects a reduction in derivative assets of $431 million and a reduction in derivative liabilities of $397 million on our consolidated balance sheets as a result of adopting the LCH variation margin rule change in the first quarter of 2018. (3) Represents customer repurchase agreements that mature the next business day. As of December 31, 2018 , we pledged collateral with a fair value of $359 million |
Offsetting Liabilities | The following table presents as of December 31, 2018 and 2017 the gross and net fair values of our derivative assets and liabilities and repurchase agreements, as well as the related offsetting amounts permitted under U.S. GAAP. The table also includes cash and non-cash collateral received or pledged in accordance with such arrangements. The amount of collateral presented, however, is limited to the amount of the related net derivative fair values or outstanding balances; therefore, instances of over-collateralization are excluded. Table 10.3 : Offsetting of Financial Assets and Financial Liabilities Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts as Recognized Securities Collateral Held Under Master Netting Agreements (Dollars in millions) Financial Instruments Cash Collateral Received Net Exposure As of December 31, 2018 Derivative assets (1)(2) $ 1,539 $ (205 ) $ (874 ) $ 460 $ 0 $ 460 As of December 31, 2017 Derivative assets (1) 1,040 (202 ) (73 ) 765 0 765 Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts as Recognized Securities Collateral Pledged Under Master Netting Agreements (Dollars in millions) Financial Instruments Cash Collateral Pledged Net Exposure As of December 31, 2018 Derivative liabilities (1)(2) $ 1,201 $ (205 ) $ (82 ) $ 914 $ 0 $ 914 Repurchase agreements (3) 352 0 0 352 (352 ) 0 As of December 31, 2017 Derivative liabilities (1) 1,268 (202 ) (460 ) 606 0 606 Repurchase agreements 576 0 0 576 (576 ) 0 __________ (1) We received cash collateral from derivative counterparties totaling $925 million and $91 million as of December 31, 2018 and 2017 , respectively. We also received securities from derivative counterparties with a fair value of $1 million as of both December 31, 2018 and 2017 , which we have the ability to re-pledge. We posted $633 million and $966 million of cash collateral as of December 31, 2018 and 2017 , respectively. (2) Reflects a reduction in derivative assets of $431 million and a reduction in derivative liabilities of $397 million on our consolidated balance sheets as a result of adopting the LCH variation margin rule change in the first quarter of 2018. (3) Represents customer repurchase agreements that mature the next business day. As of December 31, 2018 , we pledged collateral with a fair value of $359 million |
Effects of fair value and cash flow hedge accounting | The net gains (losses) recognized in our consolidated statements of income related to derivatives in fair value and cash flow hedging relationships are presented below for the years ended December 31, 2018, 2017 and 2016 . Prior period amounts were not reclassified to conform to the current period presentation. Table 10.4 : Effects of Fair Value and Cash Flow Hedge Accounting Year Ended December 31, 2018 Net Interest Income Non-Interest Income (Dollars in millions) Investment Securities Loans, Including Loans Held for Sale Other Deposits Securitized Debt Obligations Senior and Subordinated Notes Other Total amounts presented in our consolidated statements of income $ 2,211 $ 24,728 $ 237 $ (2,598 ) $ (496 ) $ (1,125 ) $ 1,002 Fair value hedging relationships: Interest rate contracts: Interest recognized on derivatives (23 ) 0 0 (76 ) (53 ) 2 0 Gains (losses) recognized on derivatives 34 0 0 (60 ) (61 ) (212 ) 0 Gains (losses) recognized on hedged items (1) (33 ) 0 0 52 38 131 0 Net income (expense) recognized on fair value hedges (22 ) 0 0 (84 ) (76 ) (79 ) 0 Cash flow hedging relationships: (2) Interest rate contracts: Realized gains (losses) reclassified from AOCI into net income (9 ) (82 ) 0 0 0 0 0 Foreign exchange contracts: Realized gains (losses) reclassified from AOCI into net income (3) 0 0 47 0 0 0 (2 ) Net income (expense) recognized on cash flow hedges $ (9 ) $ (82 ) $ 47 $ 0 $ 0 $ 0 $ (2 ) __________ (1) Includes amortization expense of $75 million for the year ended December 31, 2018 related to basis adjustments on discontinued hedges. (2) See “ Note 11—Stockholders’ Equity ” for the effects of cash flow and net investment hedges on AOCI and amounts reclassified to net income, net of tax. (3) The amount recognized in non-interest income represents the net impact of $191 million of realized gains on foreign exchange contracts reclassified from AOCI into net income to offset $193 million of foreign currency transaction losses on our foreign currency denominated inter-company borrowings for the year ended December 31, 2018. Year Ended December 31, (Dollars in millions) 2017 2016 Derivatives designated as fair value hedges: Fair value interest rate contracts: Gains (losses) recognized in net income on derivatives $ (212 ) $ (613 ) Gains (losses) recognized in net income on hedged items 216 603 Net fair value hedge ineffectiveness gains (losses) 4 (10 ) Derivatives designated as cash flow hedges: Gains (losses) reclassified from AOCI into net income: Interest rate contracts 91 192 Foreign exchange contracts 17 3 Subtotal 108 195 Gains (losses) recognized in net income due to ineffectiveness: Interest rate contracts 2 (4 ) Net derivative gains (losses) recognized in net income $ 110 $ 191 |
Gains (losses) on free-standing derivatives | The net impacts to our consolidated statements of income related to free-standing derivatives are presented below for the years ended December 31, 2018, 2017 and 2016 . These gains or losses are recognized in other non-interest income on our consolidated statements of income. Table 10.5 : Gains (Losses) on Free-Standing Derivatives Year Ended December 31, (Dollars in millions) 2018 2017 2016 Gains (losses) recognized in other non-interest income: Customer accommodation: Interest rate contracts $ 25 $ 20 $ 24 Commodity contracts 16 13 10 Foreign exchange and other contracts 7 5 3 Total customer accommodation 48 38 37 Other interest rate exposures 33 61 67 Other contracts (21 ) 0 (9 ) Total $ 60 $ 99 $ 95 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Preferred Stock | The following table summarizes the Company’s preferred stock issued and outstanding as of December 31, 2018 and 2017 . Table 11.1 : Preferred Stock Issued and Outstanding (1) Redeemable by Issuer Beginning Per Annum Dividend Rate Dividend Frequency Liquidation Preference per Share Carrying Value (in millions) Series Description Issuance Date Total Shares Outstanding December 31, 2018 December 31, 2017 Series B 6.00% Non-Cumulative August 20, 2012 September 1, 2017 6.00 % Quarterly $ 1,000 875,000 $ 853 $ 853 Series C 6.25% Non-Cumulative June 12, 2014 September 1, 2019 6.25 Quarterly 1,000 500,000 484 484 Series D 6.70% Non-Cumulative October 31, 2014 December 1, 2019 6.70 Quarterly 1,000 500,000 485 485 Series E Fixed-to-Floating Rate Non-Cumulative May 14, 2015 June 1, 2020 5.55% through 5/31/2020; Semi-Annually through 5/31/2020; Quarterly thereafter 1,000 1,000,000 988 988 Series F 6.20% Non-Cumulative August 24, 2015 December 1, 2020 6.20 Quarterly 1,000 500,000 484 484 Series G 5.20% Non-Cumulative July 29, 2016 December 1, 2021 5.20 Quarterly 1,000 600,000 583 583 Series H 6.00% Non-Cumulative November 29, 2016 December 1, 2021 6.00 Quarterly 1,000 500,000 483 483 Total $ 4,360 $ 4,360 __________ (1) |
Change in AOCI Gain (Loss) by Component (Net of Tax) | The following table includes the AOCI impacts from the adoption of accounting standards and the changes in AOCI by component for the years ended December 31, 2018, 2017 and 2016 . Table 11.2 : Accumulated Other Comprehensive Income (Loss) (Dollars in millions) Securities Available for Sale Securities Held to Maturity Cash Flow Hedges Foreign (1) Other Total AOCI as of December 31, 2015 $ 162 $ (725 ) $ 120 $ (143 ) $ (30 ) $ (616 ) Other comprehensive income (loss) before reclassifications (172 ) 0 (3 ) (79 ) 7 (247 ) Amounts reclassified from AOCI into earnings 6 104 (195 ) 0 (1 ) (86 ) Other comprehensive income (loss), net of tax (166 ) 104 (198 ) (79 ) 6 (333 ) AOCI as of December 31, 2016 (4 ) (621 ) (78 ) (222 ) (24 ) (949 ) Other comprehensive income (loss) before reclassifications 62 0 (95 ) 84 30 81 Amounts reclassified from AOCI into earnings (41 ) 97 (108 ) 0 (6 ) (58 ) Other comprehensive income (loss), net of tax 21 97 (203 ) 84 24 23 AOCI as of December 31, 2017 17 (524 ) (281 ) (138 ) 0 (926 ) Cumulative effects from adoption of new accounting standards 3 (113 ) (63 ) 0 (28 ) (201 ) Transfer of securities held to maturity to available for sale (2) (325 ) 407 0 0 0 82 Other comprehensive income (loss) before reclassifications (293 ) 0 38 (39 ) (8 ) (302 ) Amounts reclassified from AOCI into earnings 159 40 (112 ) 0 (3 ) 84 Other comprehensive income (loss), net of tax (459 ) 447 (74 ) (39 ) (11 ) (136 ) AOCI as of December 31, 2018 $ (439 ) $ (190 ) $ (418 ) $ (177 ) $ (39 ) $ (1,263 ) __________ (1) Includes other comprehensive gain of $ 150 million, loss of $143 million and gain of $280 million for the years ended December 31, 2018, 2017 and 2016, respectively, from hedging instruments designated as net investment hedges. (2) In the first quarter of 2018, we made a one-time transfer of held to maturity securities with a carrying value of $9.0 billion to available for sale as a result of our adoption of ASU No. 2017-12. This transfer resulted in an after-tax gain of $82 million ( $107 million pre-tax) to AOCI. |
Reclassifications from AOCI | The following table presents the impacts on net income of amounts reclassified from each component of AOCI for the years ended December 31, 2018, 2017 and 2016 . Table 11.3 : Reclassifications from AOCI (Dollars in millions) Year Ended December 31, AOCI Components Affected Income Statement Line Item 2018 2017 2016 Securities available for sale: Non-interest income $ (209 ) $ 65 $ (10 ) Income tax provision (benefit) (50 ) 24 (4 ) Net income (loss) (159 ) 41 (6 ) Securities held to maturity: (1) Interest income (53 ) (150 ) (164 ) Income tax benefit (13 ) (53 ) (60 ) Net loss (40 ) (97 ) (104 ) Cash flow hedges: Interest rate contracts: Interest income (91 ) 145 306 Foreign exchange contracts: Interest income 47 27 6 Non-interest income 191 1 (2 ) Income from continuing operations before income taxes 147 173 310 Income tax provision 35 65 115 Net income 112 108 195 Other: Non-interest income and non-interest expense 4 9 2 Income tax provision 1 3 1 Net income 3 6 1 Total reclassifications $ (84 ) $ 58 $ 86 __________ (1) |
Components of Other Comprehensive Income (Loss) and Related Tax Impact | The table below summarizes other comprehensive income (loss) activity and the related tax impact for the years ended December 31, 2018, 2017 and 2016 . Table 11.4 : Other Comprehensive Income (Loss) Year Ended December 31, 2018 2017 2016 (Dollars in millions) Before Tax Provision After Tax Before Tax Provision After Tax Before Tax Provision After Tax Other comprehensive income (loss): Net unrealized gains (losses) on securities available for sale $ (605 ) $ (146 ) $ (459 ) $ 23 $ 2 $ 21 $ (254 ) $ (88 ) $ (166 ) Net changes in securities held to maturity 588 141 447 150 53 97 164 60 104 Net unrealized losses on cash flow hedges (98 ) (24 ) (74 ) (325 ) (122 ) (203 ) (315 ) (117 ) (198 ) Foreign currency translation adjustments (1) 9 48 (39 ) 3 (81 ) 84 86 165 (79 ) Other (15 ) (4 ) (11 ) 38 14 24 10 4 6 Other comprehensive income (loss) $ (121 ) $ 15 $ (136 ) $ (111 ) $ (134 ) $ 23 $ (309 ) $ 24 $ (333 ) __________ (1) |
Regulatory and Capital Adequa_2
Regulatory and Capital Adequacy (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Comparison of Capital Ratios | The following table provides a comparison of our regulatory capital amounts and ratios under the Basel III Standardized Approach subject to the applicable transition provisions, the regulatory minimum capital adequacy ratios and the PCA well-capitalized level for each ratio,where applicable, as of December 31, 2018 and 2017 . Table 12.1 : Capital Ratios Under Basel III (1) December 31, 2018 December 31, 2017 (Dollars in millions) Capital Amount Capital Minimum Well- Capital Amount Capital Minimum Well- Capital One Financial Corp: Common equity Tier 1 capital (2) $ 33,071 11.2 % 4.5 % N/A $ 30,036 10.3 % 4.5 % N/A Tier 1 capital (3) 37,431 12.7 6.0 6.0 % 34,396 11.8 6.0 6.0 % Total capital (4) 44,645 15.1 8.0 10.0 41,962 14.4 8.0 10.0 Tier 1 leverage (5) 37,431 10.7 4.0 N/A 34,396 9.9 4.0 N/A Supplementary leverage (6) 37,431 9.0 3.0 N/A 34,396 8.4 N/A N/A COBNA: Common equity Tier 1 capital (2) 16,378 15.3 4.5 6.5 14,791 14.3 4.5 6.5 Tier 1 capital (3) 16,378 15.3 6.0 8.0 14,791 14.3 6.0 8.0 Total capital (4) 18,788 17.6 8.0 10.0 17,521 16.9 8.0 10.0 Tier 1 leverage (5) 16,378 14.0 4.0 5.0 14,791 12.7 4.0 5.0 Supplementary leverage (6) 16,378 11.5 3.0 N/A 14,791 10.4 N/A N/A CONA: Common equity Tier 1 capital (2) 25,637 13.0 4.5 6.5 23,771 12.2 4.5 6.5 Tier 1 capital (3) 25,637 13.0 6.0 8.0 23,771 12.2 6.0 8.0 Total capital (4) 27,912 14.2 8.0 10.0 26,214 13.4 8.0 10.0 Tier 1 leverage (5) 25,637 9.1 4.0 5.0 23,771 8.6 4.0 5.0 Supplementary leverage (6) 25,637 8.0 3.0 N/A 23,771 7.7 N/A N/A __________ (1) Capital ratios are calculated based on the Basel III Standardized Approach framework, subject to applicable transition provisions, such as the inclusion of the unrealized gains and losses on securities available for sale included in AOCI and adjustments related to intangible assets other than goodwill. The inclusion of AOCI and the adjustments related to intangible assets are phased-in at 80% for 2017 and 100% for 2018. Capital requirements that are not applicable are denoted by “N/A.” (2) Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets. (3) Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets. (4) Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets. (5) Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets. (6) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share. Dividends and undistributed earnings allocated to participating securities represent the undistributed earnings allocated to participating securities using the two-class method permitted by U.S. GAAP for computing earnings per share. Table 13.1 : Computation of Basic and Diluted Earnings per Common Share Year Ended December 31, (Dollars and shares in millions, except per share data) 2018 2017 2016 Income from continuing operations, net of tax $ 6,025 $ 2,117 $ 3,770 Loss from discontinued operations, net of tax (10 ) (135 ) (19 ) Net income 6,015 1,982 3,751 Dividends and undistributed earnings allocated to participating securities (40 ) (13 ) (24 ) Preferred stock dividends (265 ) (265 ) (214 ) Net income available to common stockholders $ 5,710 $ 1,704 $ 3,513 Total weighted-average basic shares outstanding 479.9 484.2 504.9 Effect of dilutive securities: Stock options 1.6 2.5 2.0 Other contingently issuable shares 1.1 1.2 1.3 Warrants (1) 0.5 0.7 1.6 Total effect of dilutive securities 3.2 4.4 4.9 Total weighted-average diluted shares outstanding 483.1 488.6 509.8 Basic earnings per common share: Net income from continuing operations $ 11.92 $ 3.80 $ 7.00 Loss from discontinued operations (0.02 ) (0.28 ) (0.04 ) Net income per basic common share $ 11.90 $ 3.52 $ 6.96 Diluted earnings per common share: (2) Net income from continuing operations $ 11.84 $ 3.76 $ 6.93 Loss from discontinued operations (0.02 ) (0.27 ) (0.04 ) Net income per diluted common share $ 11.82 $ 3.49 $ 6.89 __________ (1) Represents warrants issued as part of the U.S. Department of Treasury’s Troubled Assets Relief Program which had all been exercised or expired on November 14, 2018. There were 1.3 million and 4.1 million warrants to purchase common stock outstanding as of December 31, 2017 and 2016 , respectively. (2) Excluded from the computation of diluted earnings per share were 56 thousand shares related to options with an exercise price of $86.34 , 233 thousand shares related to options with exercise prices ranging from $82.08 to $86.34 and 1.7 million shares related to options with exercise prices ranging from $63.73 to $88.81 for the years ended December 31, 2018 , 2017 and 2016 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | The following table presents a summary of 2018 activity for stock options and the balance of stock options exercisable as of December 31, 2018 . Table 14.1 : Summary of Stock Options Activity (Shares in thousands, and intrinsic value in millions) Shares Weighted- Weighted- Aggregate Outstanding as of January 1, 2018 4,766 $ 48.50 Granted 0 0.00 Exercised (1,310 ) 28.65 Forfeited 0 0.00 Expired 0 0.00 Outstanding as of December 31, 2018 3,456 $ 56.03 3.88 years $ 71 Exercisable as of December 31, 2018 3,043 $ 53.36 3.37 years $ 68 |
Summary of Stock Options Cash Flow Impact | The following table presents the cash received from the exercise of stock options under all stock-based incentive arrangements, and the actual income tax benefit for the tax deductions from the exercise of the stock options. Table 14.2 : Stock Options Cash Flow Impact Year Ended December 31, (Dollars in millions) 2018 2017 2016 Cash received for options exercised $ 38 $ 122 $ 135 Tax benefit 22 34 12 |
Weighted Average Assumptions Used to value Stock Options Granted | The following table presents the weighted-average assumptions used to value stock options granted during 2017 and 2016 , and there were no stock options granted in 2018. Dividend yield represents the expected dividend rate over the life of the option, and expected option lives are calculated based on historical activities. Table 14.3 : Assumptions Used to Value Stock Options Granted Year Ended December 31, 2017 2016 Dividend yield 1.85 % 2.07 % Volatility (1) 27.00 30.00 Risk-free interest rate (U.S. Treasury yield curve) 2.30 1.64 Expected option lives 6.6 years 6.6 years __________ (1) |
Summary of Activity for Restricted Stock Awards and Units | The following table presents a summary of 2018 activity for RSAs and RSUs. Table 14.4 : Summary of Restricted Stock Awards and Units Restricted Stock Awards Restricted Stock Units (Shares/units in thousands) Shares Weighted-Average Units Weighted-Average Unvested as of January 1, 2018 16 $ 56.39 3,379 $ 74.06 Granted 0 N/A 1,547 100.73 Vested (16 ) 56.39 (1,426 ) 75.62 Forfeited 0 0.00 (155 ) 88.16 Unvested as of December 31, 2018 0 $ 0.00 3,345 $ 85.01 |
Schedule of Activity for Performance Share and Performance Units | he following table presents a summary of 2018 activity for PSUs only. Table 14.5 : Summary of Performance Share Units Performance Share Units (Shares/units in thousands) Units Weighted-Average Unvested as of January 1, 2018 1,918 $ 75.38 Granted (1) 878 100.65 Vested (1) (932 ) 74.80 Forfeited (60 ) 90.35 Unvested as of December 31, 2018 1,804 $ 87.48 __________ (1) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Benefit Obligation and Plan Assets | The following table sets forth, on an aggregated basis, changes in the benefit obligation and plan assets, the funded status and how the funded status is recognized on our consolidated balance sheets. Table 15.1 : Changes in Benefit Obligation and Plan Assets Defined Pension Other Postretirement (Dollars in millions) 2018 2017 2018 2017 Change in benefit obligation: Accumulated benefit obligation as of January 1, $ 178 $ 180 $ 35 $ 39 Service cost 1 2 0 0 Interest cost 6 7 1 2 Benefits paid (15 ) (18 ) (2 ) (3 ) Net actuarial loss (gain) (13 ) 7 (5 ) (3 ) Accumulated benefit obligation as of December 31, $ 157 $ 178 $ 29 $ 35 Change in plan assets: Fair value of plan assets as of January 1, $ 246 $ 226 $ 6 $ 6 Actual return on plan assets (14 ) 37 0 1 Employer contributions 1 1 2 2 Benefits paid (15 ) (18 ) (2 ) (3 ) Fair value of plan assets as of December 31, $ 218 $ 246 $ 6 $ 6 Over (under) funded status as of December 31, $ 61 $ 68 $ (23 ) $ (29 ) |
Schedule of Amounts Recognized in Balance Sheet | Defined Pension Other Postretirement (Dollars in millions) 2018 2017 2018 2017 Balance sheet presentation as of December 31, Other assets $ 71 $ 80 $ 0 $ 0 Other liabilities (10 ) (12 ) (23 ) (29 ) Net amount recognized as of December 31, $ 61 $ 68 $ (23 ) $ (29 ) |
Schedule of Net Periodic Benefit Costs and Other Amounts Recognized in Other Comprehensive Income | The following table presents the components of net periodic benefit costs and other amounts recognized in other comprehensive income. Table 15.2 : Components of Net Periodic Benefit Cost Year Ended December 31, 2018 2017 2016 2018 2017 2016 (Dollars in millions) Defined Pension Other Postretirement Components of net periodic benefit cost: Service cost $ 1 $ 2 $ 2 $ 0 $ 0 $ 0 Interest cost 6 7 7 1 2 2 Expected return on plan assets (15 ) (14 ) (14 ) 0 0 0 Amortization of transition obligation, prior service credit and net actuarial loss (gain) 1 1 1 (6 ) (6 ) (6 ) Net periodic benefit gain $ (7 ) $ (4 ) $ (4 ) $ (5 ) $ (4 ) $ (4 ) Changes recognized in other comprehensive income, pretax: Net actuarial gain (loss) $ (17 ) $ 16 $ 4 $ 5 $ 4 $ 5 Reclassification adjustments for amounts recognized in net periodic benefit cost 1 1 1 (6 ) (6 ) (6 ) Total gain (loss) recognized in other comprehensive income $ (16 ) $ 17 $ 5 $ (1 ) $ (2 ) $ (1 ) |
Schedule of Weighted Average Assumptions Used in Accounting for Plans | The following table presents weighted-average assumptions used in the accounting for the plans: Table 15.3 : Assumptions Used in the Accounting for the Plans December 31, 2018 2017 2016 2018 2017 2016 Defined Pension Other Postretirement Assumptions for benefit obligations at measurement date: Discount rate 4.2 % 3.5 % 4.0 % 4.2 % 3.5 % 4.0 % Assumptions for periodic benefit cost for the year ended: Discount rate 3.5 4.0 4.2 3.5 4.0 4.2 Expected long-term rate of return on plan assets 6.5 6.5 6.5 6.5 6.5 6.5 Assumptions for year-end valuations: Health care cost trend rate assumed for next year: Pre-age 65 N/A N/A N/A 6.2 6.5 6.7 Post-age 65 N/A N/A N/A 6.2 6.5 6.8 Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) N/A N/A N/A 4.5 4.5 4.5 Year the rate reaches the ultimate trend rate N/A N/A N/A 2037 2037 2037 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Significant Components of Provision for Income Taxes Attributable to Continuing Operations | The following table presents significant components of the provision for income taxes attributable to continuing operations: Table 16.1 : Significant Components of the Provision for Income Taxes Attributable to Continuing Operations Year Ended December 31, (Dollars in millions) 2018 2017 2016 Current income tax provision: Federal taxes $ 210 $ 1,585 $ 2,087 State taxes 234 223 209 International taxes 135 133 104 Total current provision $ 579 $ 1,941 $ 2,400 Deferred income tax provision (benefit): Federal taxes $ 620 $ 1,509 $ (621 ) State taxes 115 (69 ) (63 ) International taxes (21 ) (6 ) (2 ) Total deferred provision (benefit) 714 1,434 (686 ) Total income tax provision $ 1,293 $ 3,375 $ 1,714 |
Schedule of Effective Income Tax Rate | The following table presents the reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate applicable to income from continuing operations for the years ended December 31, 2018 , 2017 and 2016 : Table 16.2 : Effective Income Tax Rate Year Ended December 31, 2018 2017 2016 Income tax at U.S. federal statutory tax rate 21.0 % 35.0 % 35.0 % Affordable housing, new markets and other tax credits (4.0 ) (5.8 ) (4.9 ) IRS method changes (3.9 ) 0.0 0.0 Tax-exempt interest and other nontaxable income (0.7 ) (1.5 ) (1.4 ) Impacts of the Tax Act (0.3 ) 32.2 N/A State taxes, net of federal benefit 3.2 2.2 1.9 Non-deductible expenses 2.2 0.7 0.9 Other, net 0.2 (1.3 ) (0.2 ) Effective income tax rate 17.7 % 61.5 % 31.3 % |
Schedule of Significant Components of Deferred Tax Assets and Liabilities | The following table presents significant components of our deferred tax assets and liabilities as of December 31, 2018 and 2017 . The valuation allowance below represents the adjustment of certain state deferred tax assets and net operating loss carryforwards to the amount we have determined is more likely than not to be realized. Table 16.3 : Significant Components of Deferred Tax Assets and Liabilities (Dollars in millions) December 31, 2018 December 31, 2017 Deferred tax assets: Allowance for loan and lease losses $ 1,700 $ 1,768 Rewards programs 500 936 Security and loan valuations 288 424 Net operating loss and tax credit carryforwards 271 244 Goodwill and intangibles 187 201 Compensation and employee benefits 167 208 Partnership investments 162 130 Net unrealized losses on derivatives 135 104 Unearned income 114 130 Other assets 152 156 Subtotal 3,676 4,301 Valuation allowance (245 ) (226 ) Total deferred tax assets 3,431 4,075 Deferred tax liabilities: Original issue discount 720 703 Fixed assets and leases 204 168 Loan fees and expenses 75 68 Mortgage servicing rights 48 57 Other liabilities 239 215 Total deferred tax liabilities 1,286 1,211 Net deferred tax assets $ 2,145 $ 2,864 |
Schedule of Reconciliation of Change in Unrecognized Tax Benefits | The following table presents the accrued balance of tax, interest and penalties related to unrecognized tax benefits: Table 16.4 : Reconciliation of the Change in Unrecognized Tax Benefits (Dollars in millions) Gross Accrued Gross Tax, Balance as of January 1, 2016 $ 130 $ 33 $ 163 Additions for tax positions related to prior years 0 6 6 Reductions for tax positions related to prior years due to IRS and other settlements (45 ) (15 ) (60 ) Balance as of December 31, 2016 85 24 109 Additions for tax positions related to prior years 5 7 12 Reductions for tax positions related to prior years due to IRS and other settlements (4 ) (2 ) (6 ) Balance as of December 31, 2017 86 29 115 Additions for tax positions related to the current year 28 0 28 Additions for tax positions related to prior years 402 25 427 Reductions for tax positions related to prior years due to IRS and other settlements (76 ) (19 ) (95 ) Balance as of December 31, 2018 $ 440 $ 35 $ 475 Portion of balance at December 31, 2018 that, if recognized, would impact the effective income tax rate $ 181 $ 28 $ 209 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table displays our assets and liabilities measured on our consolidated balance sheets at fair value on a recurring basis as of December 31, 2018 and 2017 . Table 17.1 : Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2018 Fair Value Measurements Using Netting Adjustments (1) (Dollars in millions) Level 1 Level 2 Level 3 Total Assets: Securities available for sale: U.S. Treasury securities $ 6,144 $ 0 $ 0 — $ 6,144 RMBS 0 33,212 433 — 33,645 CMBS 0 4,729 10 — 4,739 Other securities 219 1,403 0 — 1,622 Total securities available for sale 6,363 39,344 443 — 46,150 Other assets: Derivative assets (2) 0 1,501 38 $ (1,079 ) 460 Other (3) 265 0 158 — 423 Total assets $ 6,628 $ 40,845 $ 639 $ (1,079 ) $ 47,033 Liabilities: Other liabilities: Derivative liabilities (2) $ 0 $ 1,153 $ 48 $ (287 ) $ 914 Total liabilities $ 0 $ 1,153 $ 48 $ (287 ) $ 914 December 31, 2017 Fair Value Measurements Using Netting Adjustments (1) (Dollars in millions) Level 1 Level 2 Level 3 Total Assets: Securities available for sale: U.S. Treasury securities $ 5,171 $ 0 $ 0 — $ 5,171 RMBS 0 27,178 614 — 27,792 CMBS 0 3,161 14 — 3,175 Other securities 320 1,192 5 — 1,517 Total securities available for sale 5,491 31,531 633 — 37,655 Other assets: Derivative assets (2) 1 1,002 37 $ (275 ) 765 Other (3) 281 0 264 — 545 Total assets $ 5,773 $ 32,533 $ 934 $ (275 ) $ 38,965 Liabilities: Other liabilities: Derivative liabilities (2) $ 1 $ 1,243 $ 24 $ (662 ) $ 606 Total liabilities $ 1 $ 1,243 $ 24 $ (662 ) $ 606 __________ (1) Represents balance sheet netting of derivative assets and liabilities, and related payables and receivables for cash collateral held or placed with the same counterparty. See “ Note 10—Derivative Instruments and Hedging Activities ” for additional information. (2) Does not reflect $2 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of both December 31, 2018 and 2017 . Non-performance risk is included in derivative assets and liabilities, which are part of other assets and liabilities on the consolidated balance sheets, and is offset through non-interest income in the consolidated statements of income. (3) As of December 31, 2018 , other includes retained interests in securitizations of $158 million , deferred compensation plan assets of $264 million and equity securities of $1 million . As of December 31, 2017 , other includes consumer MSRs of $92 million , retained interests in securitizations of $172 million and deferred compensation plan assets of $281 million |
Schedule of Level 3 Inputs Reconciliation | The table below presents a reconciliation for all assets and liabilities measured and recognized at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2018 , 2017 and 2016 . Generally, transfers into Level 3 were primarily driven by the usage of unobservable assumptions in the pricing of these financial instruments as evidenced by wider pricing variations among pricing vendors and transfers out of Level 3 were primarily driven by the usage of assumptions corroborated by market observable information as evidenced by tighter pricing among multiple pricing sources. Table 17.2 : Level 3 Recurring Fair Value Rollforward Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year Ended December 31, 2018 Total Gains (Losses) (Realized/Unrealized) Net Unrealized (1) (Dollars in millions) Balance, January 1, 2018 Included in Net Income (1) Included in OCI Purchases Sales Issuances Settlements Transfers Into Level 3 Transfers Out of Level 3 Balance, December 31, 2018 Securities available for sale: (2) RMBS $ 614 $ 32 $ (8 ) $ 0 $ 0 $ 0 $ (74 ) $ 203 $ (334 ) $ 433 $ 28 CMBS 14 0 0 0 0 0 (4 ) 0 0 10 0 Other securities 5 0 0 0 0 0 (5 ) 0 0 0 0 Total securities available for sale 633 32 (8 ) 0 0 0 (83 ) 203 (334 ) 443 28 Other assets: Consumer MSRs 92 3 0 0 (97 ) 2 0 0 0 0 0 Retained interest in securitizations 172 (14 ) 0 0 0 0 0 0 0 158 (14 ) Net derivative assets (liabilities) (3) 13 (20 ) 0 0 0 13 (17 ) 0 1 (10 ) (20 ) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year Ended December 31, 2017 Total Gains (Losses) (Realized/Unrealized) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2017 (1) (Dollars in millions) Balance, Included in Net Income (1) Included in OCI Purchases Sales Issuances Settlements Transfers Into Level 3 Transfers Out of Level 3 Balance, December 31, 2017 Securities available for sale: RMBS $ 518 $ 90 $ (24 ) $ 0 $ (116 ) $ 0 $ (92 ) $ 572 $ (334 ) $ 614 $ 19 CMBS 51 0 0 110 (50 ) 0 (4 ) 0 (93 ) 14 0 Other securities 9 0 0 0 0 0 (4 ) 0 0 5 0 Total securities available for sale 578 90 (24 ) 110 (166 ) 0 (100 ) 572 (427 ) 633 19 Other assets: Consumer MSRs 80 (5 ) 0 0 (3 ) 27 (7 ) 0 0 92 (5 ) Retained interest in securitizations 201 (29 ) 0 0 0 0 0 0 0 172 (29 ) Net derivative assets (liabilities) (3) 18 0 0 0 0 46 (44 ) 0 (7 ) 13 0 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year Ended December 31, 2016 Total Gains (Losses) (Realized/Unrealized) Net Unrealized (1) (Dollars in millions) Balance, January 1, 2016 Included in Net Income (1) Included in OCI Purchases Sales Issuances Settlements Transfers Into Level 3 Transfers Out of Level 3 Balance, Securities available for sale: RMBS $ 504 $ 31 $ 9 $ 110 $ 0 $ 0 $ (98 ) $ 380 $ (418 ) $ 518 $ 32 CMBS 97 0 0 266 0 0 (14 ) 64 (362 ) 51 0 Other securities 14 (9 ) 0 44 0 0 (10 ) 0 (30 ) 9 0 Total securities available for sale 615 22 9 420 0 0 (122 ) 444 (810 ) 578 32 Other assets: Consumer MSRs 68 (5 ) 0 0 0 23 (6 ) 0 0 80 (5 ) Retained interest in securitizations 211 (10 ) 0 0 0 0 0 0 0 201 (10 ) Net derivative assets (liabilities) (3) 30 (5 ) 0 0 0 36 (33 ) 0 (10 ) 18 (5 ) __________ (1) Realized gains (losses) on securities available for sale are included in net securities gains (losses), retained interests in securitizations and consumer MSRs are reported as a component of non-interest income in our consolidated statements of income. Gains (losses) on derivatives are included as a component of net interest income or non-interest income in our consolidated statements of income. (2) Net unrealized losses included in other comprehensive income related to Level 3 securities available for sale still held as of December 31, 2018 were $17 million . (3) Includes derivative assets and liabilities of $38 million and $48 million , respectively, as of December 31, 2018 , $37 million and $24 million , respectively, as of December 31, 2017 , and $47 million and $29 million , respectively, as of December 31, 2016 |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis Quantitative Information | The following table presents the significant unobservable inputs used to determine the fair values of our Level 3 financial instruments on a recurring basis. We utilize multiple vendor pricing services to obtain fair value for our securities. Several of our vendor pricing services are only able to provide unobservable input information for a limited number of securities due to software licensing restrictions. Other vendor pricing services are able to provide unobservable input information for all securities for which they provide a valuation. As a result, the unobservable input information for the securities available for sale presented below represents a composite summary of all information we are able to obtain. The unobservable input information for all other Level 3 financial instruments is based on the assumptions used in our internal valuation models. Table 17.3 : Quantitative Information about Level 3 Fair Value Measurements Quantitative Information about Level 3 Fair Value Measurements (Dollars in millions) Fair Value at December 31, Significant Valuation Techniques Significant Unobservable Inputs Range Weighted Average (1) Securities available for sale: RMBS $ 433 Discounted cash flows (vendor pricing) Yield 3-11% 5% CMBS 10 Discounted cash flows (vendor pricing) Yield 3% 3% Other assets: Retained interests in securitization (2) 158 Discounted cash flows Life of receivables (months) 3-56 N/A Net derivative assets (liabilities) (10 ) Discounted cash flows Swap rates 3% 3% Quantitative Information about Level 3 Fair Value Measurements (Dollars in millions) Fair Value at December 31, 2017 Significant Valuation Techniques Significant Unobservable Inputs Range Weighted Average Securities available for sale: RMBS $ 614 Discounted cash flows (vendor pricing) Yield 2-9% 5% CMBS 14 Discounted cash flows (vendor pricing) Yield 3% 3% Other securities 5 Discounted cash flows Yield 2% 2% Other assets: Consumer MSRs 92 Discounted cash flows Total prepayment rate 7-30% 16% Retained interests in securitization (2) 172 Discounted cash flows Life of receivables (months) 6-79 N/A Net derivative assets (liabilities) 13 Discounted cash flows Swap rates 2% 2% __________ (1) Weighted averages are calculated by using the product of the input multiplied by the relative fair value of the instruments. (2) |
Schedule of Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the carrying value of the assets measured at fair value on a nonrecurring basis and still held as of December 31, 2018 and 2017 , and for which a nonrecurring fair value measurement was recorded during the year then ended: Table 17.4 : Nonrecurring Fair Value Measurements December 31, 2018 Estimated Fair Value Hierarchy Total (Dollars in millions) Level 2 Level 3 Loans held for investment $ 0 $ 129 $ 129 Loans held for sale 38 0 38 Other assets (1) 0 100 100 Total $ 38 $ 229 $ 267 December 31, 2017 Estimated Fair Value Hierarchy Total (Dollars in millions) Level 2 Level 3 Loans held for investment $ 0 $ 182 $ 182 Loans held for sale 177 1 178 Other assets (1) 0 35 35 Total $ 177 $ 218 $ 395 __________ (1) As of December 31, 2018 , other assets included equity investments accounted for under measurement alternative of $24 million , foreclosed property and repossessed assets of $57 million and long-lived assets held for sale of $19 million . As of December 31, 2017 , other assets included foreclosed property and repossessed assets of $17 million and long-lived assets held for sale of $18 million |
Schedule of Earnings Related to Assets Measured at Fair Value on Nonrecurring Basis | The following table presents total nonrecurring fair value measurements for the period, included in earnings, attributable to the change in fair value relating to assets that are still held at December 31, 2018 , 2017 and 2016 . Table 17.5 : Nonrecurring Fair Value Measurements Included in Earnings Total Gains (Losses) Year Ended December 31, (Dollars in millions) 2018 2017 2016 Loans held for investment $ (85 ) $ (100 ) $ (230 ) Loans held for sale 0 (3 ) (2 ) Other assets (1) (74 ) (12 ) (19 ) Total $ (159 ) $ (115 ) $ (251 ) __________ (1) |
Schedule of Fair Value of Financial Instruments | The following table presents the carrying value and estimated fair value, including the level within the fair value hierarchy, of our financial instruments that are not measured at fair value on a recurring basis on our consolidated balance sheets as of December 31, 2018 and 2017 . Table 17.6 : Fair Value of Financial Instruments December 31, 2018 Carrying Value Estimated Fair Value Estimated Fair Value Hierarchy (Dollars in millions) Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 13,186 $ 13,186 $ 4,768 $ 8,418 $ 0 Restricted cash for securitization investors 303 303 303 0 0 Securities held to maturity 36,771 36,619 0 36,513 106 Net loans held for investment 238,679 241,556 0 0 241,556 Loans held for sale 1,192 1,218 0 1,218 0 Interest receivable 1,614 1,614 0 1,614 0 Other investments (1) 1,725 1,725 0 1,725 0 Financial liabilities: Deposits with defined maturities 38,471 38,279 0 38,279 0 Securitized debt obligations 18,307 18,359 0 18,359 0 Senior and subordinated notes 30,826 30,635 0 30,635 0 Federal funds purchased and securities loaned or sold under agreements to repurchase 352 352 0 352 0 Other borrowings (2) 9,354 9,354 0 9,354 0 Interest payable 458 458 0 458 0 December 31, 2017 Carrying Value Estimated Fair Value Estimated Fair Value Hierarchy (Dollars in millions) Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 14,040 $ 14,040 $ 4,458 $ 9,582 $ 0 Restricted cash for securitization investors 312 312 312 0 0 Securities held to maturity 28,984 29,437 200 29,217 20 Net loans held for investment 246,971 251,468 0 0 251,468 Loans held for sale 971 952 0 949 3 Interest receivable 1,536 1,536 0 1,536 0 Other investments (1) 1,689 1,689 0 1,680 9 Financial liabilities: Deposits 243,702 243,732 26,404 217,328 0 Securitized debt obligations 20,010 20,122 0 20,122 0 Senior and subordinated notes 30,755 31,392 0 31,392 0 Federal funds purchased and securities loaned or sold under agreements to repurchase 576 576 0 576 0 Other borrowings (2) 8,892 8,892 0 8,892 0 Interest payable 413 413 0 413 0 __________ (1) Other investments as of December 31, 2018 include FHLB and Federal Reserve stock. Other investments as of December 31, 2017 include FHLB and Federal Reserve stock, as well as cost method investments. These investments are included in other assets on our consolidated balance sheets. (2) |
Business Segments and Revenue_2
Business Segments and Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Results and Reconciliation | The following tables present our business segment results for the years ended December 31, 2018 , 2017 and 2016 , selected balance sheet data as of December 31, 2018 , 2017 and 2016 , and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits. Table 18.1 : Segment Results and Reconciliation Year Ended December 31, 2018 (Dollars in millions) Credit Consumer Commercial (1)(2) Other (1)(2)(3) Consolidated Net interest income $ 14,167 $ 6,549 $ 2,152 $ 7 $ 22,875 Non-interest income 3,520 663 744 274 5,201 Total net revenue 17,687 7,212 2,896 281 28,076 Provision (benefit) for credit losses 4,984 838 83 (49 ) 5,856 Non-interest expense 8,542 4,027 1,654 679 14,902 Income (loss) from continuing operations before income taxes 4,161 2,347 1,159 (349 ) 7,318 Income tax provision (benefit) 970 547 270 (494 ) 1,293 Income from continuing operations, net of tax $ 3,191 $ 1,800 $ 889 $ 145 $ 6,025 Loans held for investment $ 116,361 $ 59,205 $ 70,333 $ 0 $ 245,899 Deposits 0 198,607 29,480 21,677 249,764 Year Ended December 31, 2017 (Dollars in millions) Credit Consumer Commercial (1) Other (1) Consolidated Net interest income $ 13,648 $ 6,380 $ 2,261 $ 171 $ 22,460 Non-interest income 3,325 749 708 (5 ) 4,777 Total net revenue 16,973 7,129 2,969 166 27,237 Provision for credit losses 6,066 1,180 301 4 7,551 Non-interest expense 7,916 4,233 1,603 442 14,194 Income (loss) from continuing operations before income taxes 2,991 1,716 1,065 (280 ) 5,492 Income tax provision 1,071 626 389 1,289 3,375 Income (loss) from continuing operations, net of tax $ 1,920 $ 1,090 $ 676 $ (1,569 ) $ 2,117 Loans held for investment $ 114,762 $ 75,078 $ 64,575 $ 58 $ 254,473 Deposits 0 185,842 33,938 23,922 243,702 Year Ended December 31, 2016 (Dollars in millions) Credit Card Consumer Banking Commercial (1) Other (1) Consolidated Total Net interest income $ 12,635 $ 5,829 $ 2,216 $ 193 $ 20,873 Non-interest income 3,380 733 578 (63 ) 4,628 Total net revenue 16,015 6,562 2,794 130 25,501 Provision (benefit) for credit losses 4,926 1,055 483 (5 ) 6,459 Non-interest expense 7,703 4,139 1,407 309 13,558 Income (loss) from continuing operations before income taxes 3,386 1,368 904 (174 ) 5,484 Income tax provision (benefit) 1,226 498 329 (339 ) 1,714 Income from continuing operations, net of tax $ 2,160 $ 870 $ 575 $ 165 $ 3,770 Loans held for investment $ 105,552 $ 73,054 $ 66,916 $ 64 $ 245,586 Deposits 0 181,917 33,866 20,985 236,768 _________ (1) Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate (21% for 2018 and 35% for 2017 and 2016) and state taxes where applicable, with offsetting reductions to the Other category. (2) In 2018, we made a change in how revenue is measured in our Commercial Banking business to include the tax benefits of losses on certain tax-advantaged investments. These tax benefits are included in revenue on a taxable-equivalent basis within our Commercial Banking business, with an offsetting reduction to the Other category. In addition, all revenue presented on a taxable-equivalent basis in our Commercial Banking business was impacted by the reduction of the federal tax rate set forth in the Tax Act. The net impact of the measurement change and the reduction of the federal tax rate was a decrease of $126 million in revenue in our Commercial Banking business for the year ended December 31, 2018 , with an offsetting impact to the Other category. (3) In 2018, we sold all of our consumer home loan portfolio and recognized a gain of approximately $499 million in the Other category, including a benefit for credit losses of $46 million |
Disaggregation of Revenue | The following table presents revenue from contracts with customers and a reconciliation to non-interest income by business segment for the year ended December 31, 2018 . Table 18.2 : Revenue from Contracts with Customers and Reconciliation to Segments Results Year Ended December 31, 2018 (Dollars in millions) Credit Consumer Commercial (1) Other (1) Consolidated Contract revenue: Interchange fees, net (2) $ 2,609 $ 185 $ 33 $ (4 ) $ 2,823 Service charges and other customer-related fees 0 367 123 (1 ) 489 Other 8 109 2 0 119 Total contract revenue 2,617 661 158 (5 ) 3,431 Revenue from other sources 903 2 586 279 1,770 Total non-interest income $ 3,520 $ 663 $ 744 $ 274 $ 5,201 __________ (1) Some of our commercial investments generate tax-exempt income, tax credits or other tax benefits. Accordingly, we present our Commercial Banking revenue and yields on a taxable-equivalent basis, calculated using the federal statutory tax rate of 21% and state taxes where applicable, with offsetting reclassifications to the Other category. (2) Interchange fees are presented net of customer reward expenses of $4.4 billion |
Commitments, Contingencies, G_2
Commitments, Contingencies, Guarantees, and Others (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Letter of Credit and Other Loan Commitments [Table Text Block] | The following table presents the contractual amount and carrying value of our unfunded lending commitments as of December 31, 2018 and 2017 . The carrying value represents our reserve and deferred revenue on legally binding commitments. Table 19.1 : Unfunded Lending Commitments: Contractual Amount and Carrying Value Contractual Amount Carrying Value (Dollars in millions) December 31, December 31, December 31, December 31, Credit card lines $ 346,186 $ 351,481 N/A N/A Other loan commitments (1) 34,449 31,840 $ 95 $ 84 Standby letters of credit and commercial letters of credit (2) 1,792 2,046 29 43 Total unfunded lending commitments $ 382,427 $ 385,367 $ 124 $ 127 __________ (1) Includes $1.3 billion and $1.0 billion of advised lines of credit as of December 31, 2018 and 2017 , respectively. (2) These financial guarantees have expiration dates ranging from 2019 to 2025 as of December 31, 2018 |
Capital One Financial Corpora_2
Capital One Financial Corporation (Parent Company Only) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Income Statement | Table 20.1 : Parent Company Statements of Income Year Ended December 31, (Dollars in millions) 2018 2017 2016 Interest income $ 313 $ 178 $ 120 Interest expense 720 381 258 Dividends from subsidiaries 2,750 300 3,936 Non-interest income (loss) 19 19 (13 ) Non-interest expense 29 34 48 Income before income taxes and equity in undistributed earnings of subsidiaries 2,333 82 3,737 Income tax benefit (128 ) (103 ) (79 ) Equity in undistributed earnings of subsidiaries 3,554 1,797 (65 ) Net income 6,015 1,982 3,751 Other comprehensive income (loss), net of tax (136 ) 23 (333 ) Comprehensive income $ 5,879 $ 2,005 $ 3,418 |
Condensed Balance Sheet | Table 20.2 : Parent Company Balance Sheets December 31, December 31, (Dollars in millions) 2018 2017 Assets: Cash and cash equivalents $ 10,286 $ 8,196 Investments in subsidiaries 58,154 54,712 Loans to subsidiaries 2,603 548 Securities available for sale 795 907 Other assets 1,250 729 Total assets $ 73,088 $ 65,092 Liabilities: Senior and subordinated notes $ 19,518 $ 14,392 Borrowings from subsidiaries 1,671 1,633 Accrued expenses and other liabilities 231 337 Total liabilities 21,420 16,362 Total stockholders’ equity 51,668 48,730 Total liabilities and stockholders’ equity $ 73,088 $ 65,092 |
Condensed Cash Flow Statement | Table 20.3 : Parent Company Statements of Cash Flows Year Ended December 31, (Dollars in millions) 2018 2017 2016 Operating activities: Net income $ 6,015 $ 1,982 $ 3,751 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed earnings of subsidiaries (3,554 ) (1,797 ) 65 Other operating activities (35 ) 327 (10 ) Net cash from operating activities 2,426 512 3,806 Investing activities: Net payments to subsidiaries (577 ) (4,956 ) (163 ) Proceeds from paydowns and maturities of securities available for sale 140 130 71 Changes in loans to subsidiaries (2,055 ) 44 (71 ) Net cash from investing activities (2,492 ) (4,782 ) (163 ) Financing activities: Borrowings: Changes in borrowings from subsidiaries 38 23 19 Issuance of senior and subordinated notes 5,227 6,948 1,487 Proceeds from paydowns and maturities of senior and subordinated notes 0 (804 ) (1,750 ) Common stock: Net proceeds from issuances 175 164 131 Dividends paid (773 ) (780 ) (812 ) Preferred stock: Net proceeds from issuances 0 0 1,066 Dividends paid (265 ) (265 ) (214 ) Purchases of treasury stock (2,284 ) (240 ) (3,661 ) Proceeds from share-based payment activities 38 124 142 Net cash from financing activities 2,156 5,170 (3,592 ) Changes in cash and cash equivalents 2,090 900 51 Cash and cash equivalents, beginning of the period 8,196 7,296 7,245 Cash and cash equivalents, end of the period $ 10,286 $ 8,196 $ 7,296 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Segments (Details) | 12 Months Ended |
Dec. 31, 2018Segment | |
Accounting Policies [Abstract] | |
Number of Operating Segments | 3 |
Number of Reporting Units | 4 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Loans and Allowance for Loan and Lease Losses (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold period past due for delinquency status of financing receivables | 30 days |
Credit Card Portfolio Segment | |
Loans and Leases Receivable Disclosure [Line Items] | |
Loan origination fees and direct loan origination costs amortization period | 12 months |
Threshold period past due for write-off of financing receivable | 180 days |
Credit Card Portfolio Segment | Privileges Revoked | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold period past due for write-off of financing receivable | 120 days |
Credit Card Portfolio Segment | Notification of Death | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold period past due for write-off of financing receivable | 60 days |
Credit Card Portfolio Segment | Chapter Seven Bankruptcy | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold period past due for write-off of financing receivable | 30 days |
Consumer Portfolio Segment | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold period past due for nonperforming status of financing receivables | 90 days |
Consumer Portfolio Segment | Notification of Death | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold period past due for nonperforming status of financing receivables | 60 days |
Consumer Portfolio Segment | Auto | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold period past due for nonperforming status of financing receivables | 120 days |
Consumer Portfolio Segment | Home loan | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold period past due for nonperforming status of financing receivables | 180 days |
Consumer Portfolio Segment | Small Business Banking Loans | Maximum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold period past due for nonperforming status of financing receivables | 120 days |
Consumer Portfolio Segment | Other Consumer Loans | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold Period Following Bankruptcy Notice for Write-off of Financing Receivable | 40 days |
Consumer Portfolio Segment | Auto and home loan [Member] | Chapter Seven Bankruptcy | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold period past due for nonperforming status of financing receivables | 60 days |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Useful Lives for Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful Lives, years | 5 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful Lives, years | 39 years |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful Lives, years | 3 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful Lives, years | 10 years |
Computers and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful Lives, years | 3 years |
Computers and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful Lives, years | 3 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Customer Rewards Reserve and Revenue Recognition (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Customer Reward Program | $ 4.3 | $ 3.9 |
Minimum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Partnership Agreement Initial Term | 2 years | |
Maximum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Partnership Agreement Initial Term | 10 years | |
Credit Card Portfolio Segment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loan Commitment and Origination Fees and Discounts or Premiums, Amortization Period | 12 months | |
Amortization term of annual membership fees | 12 months |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Arrangements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Reduction in Interest Income | $ (24,728) | $ (23,388) | $ (21,203) |
Collaborative Arrangement [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Reduction in Interest Income | $ (1,300) | $ (1,200) | $ (1,200) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies Newly Adopted and Recently Issued But Not Yet Adopted ASU (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Securities held to maturity | $ 36,771 | $ 28,984 | |||
Accumulated other comprehensive loss | (1,263) | $ (926) | $ (949) | $ (616) | |
Operating Lease, Liability | 1,900 | ||||
Operating Lease, Right-of-Use Asset | 1,600 | ||||
Accounting Standards Update 2018-2 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings, tax effect | $ 173 | ||||
Accounting Standards Update 2017-12 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Securities held to maturity | 9,000 | $ 9,000 | |||
Accumulated other comprehensive loss | 82 | ||||
Accumulated Other Comprehensive Income (loss), before tax | $ 107 |
Business Developments Consumer
Business Developments Consumer Home Loan Portfolio Sale (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gain (Loss) on Securities [Line Items] | |||
Net transfers from loans held for investment to loans held for sale | $ 855 | $ 674 | $ 552 |
Benefit for credit losses | (5,856) | (7,551) | (6,459) |
Other | |||
Gain (Loss) on Securities [Line Items] | |||
Benefit for credit losses | 49 | $ (4) | $ 5 |
Consumer Portfolio Segment | Home loan | Other | |||
Gain (Loss) on Securities [Line Items] | |||
Gain (Loss) on Sale of Mortgage Loans | 499 | ||
Benefit for credit losses | $ 46 |
Business Developments Restructu
Business Developments Restructuring Activities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Mergers, Acquisitions, Restructuring and Dispositions Disclosures [Abstract] | ||
Restructuring Charges | $ 34 | $ 184 |
Deposits transferred to the third party purchaser | $ 1,400 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018USD ($) |
Debt Securities, Available-for-sale [Line Items] | |||
Securities available for sale | $ 46,150 | $ 37,655 | |
Securities held to maturity | $ 36,771 | 28,984 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 1,390 | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 972 | 458 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 675 | 373 | |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 360 | ||
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | $ 466 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | 140 | 147 | |
Derivative, Collateral, Obligation to Return Securities | $ 1 | $ 1 | |
Investment Securities Portfolio [Member] | US Treasury and Government | |||
Debt Securities, Available-for-sale [Line Items] | |||
Percentage of portfolio | 96.00% | 95.00% | |
Accounting Standards Update 2017-12 | |||
Debt Securities, Available-for-sale [Line Items] | |||
Securities held to maturity | $ 9,000 | $ 9,000 | |
AOCI associated with transferred held to maturity securities, pretax | 535 | ||
AOCI associated with transferred held to maturity securities, after tax | $ 407 | ||
Collateral Pledged [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Held-to-maturity, Restricted | $ 16,300 | $ 8,500 |
Investment Securities - Schedul
Investment Securities - Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 46,728 | $ 37,628 |
Gross Unrealized Gains | 394 | 485 |
Gross Unrealized Losses | (972) | (458) |
Fair Value | 46,150 | 37,655 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,146 | 5,168 |
Gross Unrealized Gains | 15 | 11 |
Gross Unrealized Losses | (17) | (8) |
Fair Value | 6,144 | 5,171 |
RMBS, Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 32,710 | 26,013 |
Gross Unrealized Gains | 62 | 67 |
Gross Unrealized Losses | (869) | (402) |
Fair Value | 31,903 | 25,678 |
RMBS, Non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,440 | 1,722 |
Gross Unrealized Gains | 304 | 393 |
Gross Unrealized Losses | (2) | (1) |
Fair Value | 1,742 | 2,114 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 34,150 | 27,735 |
Gross Unrealized Gains | 366 | 460 |
Gross Unrealized Losses | (871) | (403) |
Fair Value | 33,645 | 27,792 |
CMBS, Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,806 | 3,209 |
Gross Unrealized Gains | 11 | 10 |
Gross Unrealized Losses | (78) | (44) |
Fair Value | 4,739 | 3,175 |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,626 | 1,516 |
Gross Unrealized Gains | 2 | 4 |
Gross Unrealized Losses | (6) | (3) |
Fair Value | $ 1,622 | $ 1,517 |
Investment Securities - Investm
Investment Securities - Investment Securities Held to Maturity (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 37,022 | $ 29,823 |
Unrealized Losses Recorded in AOCI | (251) | (839) |
Carrying Value | 36,771 | 28,984 |
Gross Unrealized Gains | 314 | 635 |
Gross Unrealized Losses | (466) | (182) |
Fair Value | 36,619 | 29,437 |
U.S. Treasury securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 200 | |
Unrealized Losses Recorded in AOCI | 0 | |
Carrying Value | 200 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 200 | |
RMBS, Agency | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 33,299 | 25,741 |
Unrealized Losses Recorded in AOCI | (238) | (761) |
Carrying Value | 33,061 | 24,980 |
Gross Unrealized Gains | 293 | 565 |
Gross Unrealized Losses | (377) | (150) |
Fair Value | 32,977 | 25,395 |
CMBS, Agency | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 3,723 | 3,882 |
Unrealized Losses Recorded in AOCI | (13) | (78) |
Carrying Value | 3,710 | 3,804 |
Gross Unrealized Gains | 21 | 70 |
Gross Unrealized Losses | (89) | (32) |
Fair Value | $ 3,642 | $ 3,842 |
Investment Securities - Sched_2
Investment Securities - Schedule of Available-for-Sale Securities in Gross Unrealized Loss Position (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value | ||
Less than 12 Months | $ 12,743 | $ 11,614 |
12 Months or Longer | 21,422 | 14,516 |
Total | 34,165 | 26,130 |
Gross Unrealized Losses | ||
Less than 12 Months | (297) | (85) |
12 Months or Longer | (675) | (373) |
Total | (972) | (458) |
U.S. Treasury securities | ||
Fair Value | ||
Less than 12 Months | 2,543 | 2,031 |
12 Months or Longer | 1,076 | 0 |
Total | 3,619 | 2,031 |
Gross Unrealized Losses | ||
Less than 12 Months | (3) | (8) |
12 Months or Longer | (14) | 0 |
Total | (17) | (8) |
RMBS, Agency | ||
Fair Value | ||
Less than 12 Months | 7,863 | 8,192 |
12 Months or Longer | 18,118 | 13,175 |
Total | 25,981 | 21,367 |
Gross Unrealized Losses | ||
Less than 12 Months | (260) | (67) |
12 Months or Longer | (609) | (335) |
Total | (869) | (402) |
RMBS, Non-agency | ||
Fair Value | ||
Less than 12 Months | 89 | 10 |
12 Months or Longer | 10 | 10 |
Total | 99 | 20 |
Gross Unrealized Losses | ||
Less than 12 Months | (2) | 0 |
12 Months or Longer | 0 | (1) |
Total | (2) | (1) |
RMBS | ||
Fair Value | ||
Less than 12 Months | 7,952 | 8,202 |
12 Months or Longer | 18,128 | 13,185 |
Total | 26,080 | 21,387 |
Gross Unrealized Losses | ||
Less than 12 Months | (262) | (67) |
12 Months or Longer | (609) | (336) |
Total | (871) | (403) |
CMBS, Agency | ||
Fair Value | ||
Less than 12 Months | 2,004 | 880 |
12 Months or Longer | 1,540 | 1,236 |
Total | 3,544 | 2,116 |
Gross Unrealized Losses | ||
Less than 12 Months | (31) | (8) |
12 Months or Longer | (47) | (36) |
Total | (78) | (44) |
Other securities | ||
Fair Value | ||
Less than 12 Months | 244 | 501 |
12 Months or Longer | 678 | 95 |
Total | 922 | 596 |
Gross Unrealized Losses | ||
Less than 12 Months | (1) | (2) |
12 Months or Longer | (5) | (1) |
Total | $ (6) | $ (3) |
Investment Securities - Sched_3
Investment Securities - Schedule of Contractual Maturities and Weighted-Average Yields of Securities (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Securities available for sale | ||
Due in 1 year or less | $ 693 | |
Due after 1 year through 5 years | 3,612 | |
Due after 5 years through 10 years | 7,666 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 34,179 | |
Securities available for sale | 46,150 | $ 37,655 |
Amortized cost of securities available for sale | ||
Due in 1 year or less | 695 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after One Through Five Years, Amortized Cost | 3,642 | |
Due after 5 years through 10 years | 7,680 | |
Due 10 Years | 34,711 | |
Amortized Cost | $ 46,728 | 37,628 |
Weighted average yield for securities available for sale | ||
Due in 1 Year or Less | 1.46% | |
Due 1 Year through 5 Years | 2.29% | |
Due 5 Years through 10 Years | 2.49% | |
Due 10 Years | 2.95% | |
Total weighted average yield | 2.80% | |
Carrying value of securities held to maturity | ||
Due in 1 year or less | $ 0 | |
Due 1 year through 5 years | 69 | |
Due after 5 years through 10 years | 500 | |
Due after 10 years | 36,202 | |
Carrying Value | 36,771 | 28,984 |
Fair value of securities held to maturity | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 70 | |
Due 5 Years through 10 Years | 487 | |
Due 10 Years | 36,062 | |
Fair Value | $ 36,619 | 29,437 |
Weighted average yield for securities held to maturity | ||
Due in 1 Year or Less | 0.00% | |
Due 1 Year through 5 Years | 3.53% | |
Due 5 Years through 10 Years | 2.95% | |
Due 10 Years | 3.31% | |
Total weighted average yield | 3.30% | |
U.S. Treasury securities | ||
Securities available for sale | ||
Due in 1 year or less | $ 447 | |
Due after 1 year through 5 years | 784 | |
Due after 5 years through 10 years | 4,913 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 0 | |
Securities available for sale | 6,144 | 5,171 |
Amortized cost of securities available for sale | ||
Amortized Cost | 6,146 | 5,168 |
Carrying value of securities held to maturity | ||
Carrying Value | 200 | |
Fair value of securities held to maturity | ||
Fair Value | 200 | |
RMBS, Agency | ||
Securities available for sale | ||
Due in 1 year or less | 6 | |
Due after 1 year through 5 years | 23 | |
Due after 5 years through 10 years | 724 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 31,150 | |
Securities available for sale | 31,903 | 25,678 |
Amortized cost of securities available for sale | ||
Amortized Cost | 32,710 | 26,013 |
Carrying value of securities held to maturity | ||
Due in 1 year or less | 0 | |
Due 1 year through 5 years | 0 | |
Due after 5 years through 10 years | 51 | |
Due after 10 years | 33,010 | |
Carrying Value | 33,061 | 24,980 |
Fair value of securities held to maturity | ||
Fair Value | 32,977 | 25,395 |
RMBS, Non-agency | ||
Securities available for sale | ||
Due in 1 year or less | 0 | |
Due after 1 year through 5 years | 0 | |
Due after 5 years through 10 years | 0 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 1,742 | |
Securities available for sale | 1,742 | 2,114 |
Amortized cost of securities available for sale | ||
Amortized Cost | 1,440 | 1,722 |
RMBS | ||
Securities available for sale | ||
Due in 1 year or less | 6 | |
Due after 1 year through 5 years | 23 | |
Due after 5 years through 10 years | 724 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 32,892 | |
Securities available for sale | 33,645 | 27,792 |
Amortized cost of securities available for sale | ||
Amortized Cost | $ 34,150 | 27,735 |
Weighted average yield for securities held to maturity | ||
Weighted-average expected life | 6 years 7 months 6 days | |
CMBS, Agency | ||
Securities available for sale | ||
Due in 1 year or less | $ 7 | |
Due after 1 year through 5 years | 1,778 | |
Due after 5 years through 10 years | 1,687 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 1,267 | |
Securities available for sale | 4,739 | 3,175 |
Amortized cost of securities available for sale | ||
Amortized Cost | 4,806 | 3,209 |
Carrying value of securities held to maturity | ||
Due in 1 year or less | 0 | |
Due 1 year through 5 years | 69 | |
Due after 5 years through 10 years | 449 | |
Due after 10 years | 3,192 | |
Carrying Value | 3,710 | 3,804 |
Fair value of securities held to maturity | ||
Fair Value | 3,642 | 3,842 |
Other securities | ||
Securities available for sale | ||
Due in 1 year or less | 233 | |
Due after 1 year through 5 years | 1,027 | |
Due after 5 years through 10 years | 342 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 20 | |
Securities available for sale | 1,622 | 1,517 |
Amortized cost of securities available for sale | ||
Amortized Cost | $ 1,626 | $ 1,516 |
CMBS | ||
Weighted average yield for securities held to maturity | ||
Weighted-average expected life | 5 years 3 months 18 days |
Investment Securities - Sched_4
Investment Securities - Schedule of Gross Realized Gains and Losses on Available-for-Sale Securities and OTTI Recognized in Earnings (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Realized gains (losses): | |||
Gross realized gains | $ 13 | $ 144 | $ 12 |
Gross realized losses | (21) | (74) | (6) |
Net realized gains (losses) | (8) | 70 | 6 |
OTTI recognized in earnings: | |||
Credit-related OTTI | (1) | (2) | (11) |
Intent to Sell OTTI | (200) | (3) | (6) |
Total OTTI recognized in earnings | (201) | (5) | (17) |
Net securities gains (losses) | (209) | 65 | (11) |
Total proceeds from sales | $ 6,399 | $ 8,181 | $ 4,146 |
Investment Securities - Sched_5
Investment Securities - Schedule of Outstanding Contractual Balance and Carrying Value of Acquired Credit-Impaired Debt Securities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Outstanding Balance and Carrying Value of Acquired Securities | ||
Outstanding balance | $ 1,784 | $ 2,131 |
Carrying value | $ 1,537 | $ 1,843 |
Investment Securities - Sched_6
Investment Securities - Schedule of Changes in Accretable Yield of Acquired Securities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in Accretable Yield of Acquired Securities [Roll Forward] | |||
Accretable yield beginning balance | $ 826 | $ 1,173 | $ 1,237 |
Accretion recognized in earnings | (153) | (182) | (206) |
Reduction due to payoffs, disposals, transfers and other | (3) | (157) | (2) |
Net reclassifications (to) from nonaccretable difference | 28 | (8) | 144 |
Accretable yield ending balance | $ 698 | $ 826 | $ 1,173 |
Loans - Additional Information
Loans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Uncollectible Portion of Billed Finance Charges and Fees | $ 1,300 | $ 1,400 | $ 1,100 |
Finance Charge And Fees Reserves | 468 | 491 | |
Loans held for sale, at lower of cost or fair value | 1,192 | 971 | |
Loans and Leases Receivable, Impaired, Commitment to Lend | $ 256 | 241 | |
Loans Sold Percent Retained Servicing | 100.00% | ||
Performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Troubled debt restructurings included in impaired loans | $ 1,600 | 2,200 | |
Residential Mortgage Loans And Commercial Multifamily Real Estate Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Payments for Origination of Mortgage Loans Held-for-sale | 8,400 | $ 7,600 | |
Commercial Multifamily Real Estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Payments for Origination of Mortgage Loans Held-for-sale | 8,700 | ||
Federal Home Loan banks | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans Pledged as Collateral | 15,800 | 27,300 | |
Line of Credit Facility, Remaining Borrowing Capacity | 19,300 | 21,000 | |
Federal Reserve Discount Window | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans Pledged as Collateral | 9,200 | 9,100 | |
Line of Credit Facility, Remaining Borrowing Capacity | 7,600 | 7,400 | |
Consumer Portfolio Segment | Performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Troubled debt restructurings included in impaired loans | 1,200 | 1,300 | |
Commercial Banking | Performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Troubled debt restructurings included in impaired loans | $ 282 | $ 574 |
Loans - Loan Portfolio Composit
Loans - Loan Portfolio Composition and Aging Analysis (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | $ 236,310 | $ 234,834 | |
Past due | 9,454 | 8,864 | |
Loans held for investment | $ 245,899 | $ 254,473 | $ 245,586 |
Financing Receivable, Recorded Investment, Aging, Percent of Total Loan [Abstract] | |||
Financing Receivable, Percent Current | 96.10% | 92.30% | |
Financing Receivable, Percent Past Due | 3.80% | 3.50% | |
Financing Receivable, Percentage of Total Loan | 100.00% | 100.00% | |
Unamortized Loan Commitment And Origination Fees And Unamortized Discounts Or Premiums | $ 818 | $ 773 | |
Credit Card Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 111,692 | 110,182 | |
Past due | 4,668 | 4,578 | |
Loans held for investment | 116,361 | 114,762 | |
Consumer Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 54,841 | 60,775 | |
Past due | 4,360 | 4,010 | |
Loans held for investment | 59,205 | 75,078 | |
Consumer Portfolio Segment | Auto | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 52,032 | 50,151 | |
Past due | 4,309 | 3,840 | |
Loans held for investment | 56,341 | 53,991 | |
Consumer Portfolio Segment | Home loan | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 7,235 | ||
Past due | 123 | ||
Loans held for investment | 17,633 | ||
Consumer Portfolio Segment | Retail banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 2,809 | 3,389 | |
Past due | 51 | 47 | |
Loans held for investment | 2,864 | 3,454 | |
Commercial Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 69,777 | 63,823 | |
Past due | 426 | 272 | |
Loans held for investment | 70,333 | 64,575 | |
Commercial Banking | Total commercial lending | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 40,704 | 37,412 | |
Past due | 279 | 158 | |
Loans held for investment | 41,091 | 38,025 | |
Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 28,737 | 26,018 | |
Past due | 140 | 107 | |
Loans held for investment | 28,899 | 26,150 | |
Commercial Banking | Total commercial lending | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 69,441 | 63,430 | |
Past due | 419 | 265 | |
Loans held for investment | 69,990 | 64,175 | |
Commercial Banking | Small-ticket commercial real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 336 | 393 | |
Past due | 7 | 7 | |
Loans held for investment | 343 | 400 | |
Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 54 | ||
Past due | 4 | ||
Loans held for investment | 58 | ||
Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Loans held for investment | $ 135 | $ 10,775 | |
Financing Receivable, Recorded Investment, Aging, Percent of Total Loan [Abstract] | |||
Financing Receivable, Percentage of Total Loan | 0.10% | 4.20% | |
Financial Asset Acquired with Credit Deterioration [Member] | Credit Card Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Loans held for investment | $ 1 | $ 2 | |
Financial Asset Acquired with Credit Deterioration [Member] | Consumer Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Loans held for investment | 4 | 10,293 | |
Financial Asset Acquired with Credit Deterioration [Member] | Consumer Portfolio Segment | Auto | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Loans held for investment | 0 | 0 | |
Financial Asset Acquired with Credit Deterioration [Member] | Consumer Portfolio Segment | Home loan | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Loans held for investment | 10,275 | ||
Financial Asset Acquired with Credit Deterioration [Member] | Consumer Portfolio Segment | Retail banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Loans held for investment | 4 | 18 | |
Financial Asset Acquired with Credit Deterioration [Member] | Commercial Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Loans held for investment | 130 | 480 | |
Financial Asset Acquired with Credit Deterioration [Member] | Commercial Banking | Total commercial lending | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Loans held for investment | 108 | 455 | |
Financial Asset Acquired with Credit Deterioration [Member] | Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Loans held for investment | 22 | 25 | |
Financial Asset Acquired with Credit Deterioration [Member] | Commercial Banking | Total commercial lending | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Loans held for investment | 130 | 480 | |
Financial Asset Acquired with Credit Deterioration [Member] | Commercial Banking | Small-ticket commercial real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Loans held for investment | 0 | 0 | |
Financial Asset Acquired with Credit Deterioration [Member] | Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Loans held for investment | 0 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | $ 4,282 | $ 3,945 | |
Financing Receivable, Recorded Investment, Aging, Percent of Total Loan [Abstract] | |||
Financing Receivable, Percent Past Due | 1.70% | 1.50% | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Credit Card Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | $ 1,397 | $ 1,355 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 2,647 | 2,544 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment | Auto | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 2,624 | 2,483 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment | Home loan | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 37 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment | Retail banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 23 | 24 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 238 | 44 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Banking | Total commercial lending | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 135 | 1 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 101 | 41 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Banking | Total commercial lending | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 236 | 42 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Banking | Small-ticket commercial real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 2 | 2 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 2 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | $ 2,430 | $ 2,166 | |
Financing Receivable, Recorded Investment, Aging, Percent of Total Loan [Abstract] | |||
Financing Receivable, Percent Past Due | 1.00% | 0.90% | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Credit Card Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | $ 1,032 | $ 996 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 1,334 | 1,081 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment | Auto | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 1,326 | 1,060 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment | Home loan | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 16 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment | Retail banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 8 | 5 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 64 | 88 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Banking | Total commercial lending | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 43 | 70 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 20 | 17 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Banking | Total commercial lending | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 63 | 87 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Banking | Small-ticket commercial real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 1 | 1 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 1 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | $ 2,742 | $ 2,753 | |
Financing Receivable, Recorded Investment, Aging, Percent of Total Loan [Abstract] | |||
Financing Receivable, Percent Past Due | 1.10% | 1.10% | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Credit Card Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | $ 2,239 | $ 2,227 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 379 | 385 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment | Auto | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 359 | 297 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment | Home loan | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 70 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment | Retail banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 20 | 18 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 124 | 140 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Banking | Total commercial lending | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 101 | 87 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 19 | 49 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Banking | Total commercial lending | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 120 | 136 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Banking | Small-ticket commercial real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 4 | 4 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 1 | ||
Domestic credit card | Credit Card Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 103,014 | 101,072 | |
Past due | 4,335 | 4,219 | |
Loans held for investment | 107,350 | 105,293 | |
Domestic credit card | Financial Asset Acquired with Credit Deterioration [Member] | Credit Card Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Loans held for investment | 1 | 2 | |
Domestic credit card | Financing Receivables, 30 to 59 Days Past Due [Member] | Credit Card Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 1,270 | 1,211 | |
Domestic credit card | Financing Receivables, 60 to 89 Days Past Due [Member] | Credit Card Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 954 | 915 | |
Domestic credit card | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Credit Card Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 2,111 | 2,093 | |
International card business | Credit Card Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 8,678 | 9,110 | |
Past due | 333 | 359 | |
Loans held for investment | 9,011 | 9,469 | |
International card business | Financial Asset Acquired with Credit Deterioration [Member] | Credit Card Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Loans held for investment | 0 | 0 | |
International card business | Financing Receivables, 30 to 59 Days Past Due [Member] | Credit Card Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 127 | 144 | |
International card business | Financing Receivables, 60 to 89 Days Past Due [Member] | Credit Card Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 78 | 81 | |
International card business | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Credit Card Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | $ 128 | $ 134 |
Loans - 90+ Day Delinquent Loan
Loans - 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | $ 2,233 | $ 2,233 |
Nonperforming Loans | $ 813 | $ 899 |
Percent 90 days past due and still accruing | 0.91% | 0.88% |
Financing Receivable, Nonaccrual, Percent Past Due | 0.33% | 0.35% |
Credit Card Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | $ 2,233 | $ 2,221 |
Nonperforming Loans | 22 | 24 |
Credit Card Portfolio Segment | Domestic credit card | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 2,111 | 2,093 |
Credit Card Portfolio Segment | International card business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 122 | 128 |
Nonperforming Loans | 22 | 24 |
Consumer Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 0 | 0 |
Nonperforming Loans | $ 479 | $ 587 |
Financing Receivable, Nonaccrual, Percent Past Due | 0.81% | 0.78% |
Consumer Portfolio Segment | Auto | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | $ 0 | $ 0 |
Nonperforming Loans | $ 449 | $ 376 |
Financing Receivable, Nonaccrual, Percent Past Due | 0.80% | 0.70% |
Consumer Portfolio Segment | Home loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | $ 0 | $ 0 |
Nonperforming Loans | $ 0 | $ 176 |
Financing Receivable, Nonaccrual, Percent Past Due | 0.00% | 1.00% |
Consumer Portfolio Segment | Retail banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | $ 0 | $ 0 |
Nonperforming Loans | $ 30 | $ 35 |
Financing Receivable, Nonaccrual, Percent Past Due | 1.04% | 1.00% |
Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | $ 0 | $ 12 |
Nonperforming Loans | 312 | 284 |
Commercial Banking | Total commercial lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 0 | 12 |
Nonperforming Loans | 306 | 277 |
Commercial Banking | Commercial and multifamily real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 0 | 12 |
Nonperforming Loans | 83 | 38 |
Commercial Banking | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 0 | 0 |
Nonperforming Loans | 223 | 239 |
Commercial Banking | Small-ticket commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 0 | 0 |
Nonperforming Loans | 6 | 7 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 0 | 0 |
Nonperforming Loans | $ 0 | $ 4 |
Loans - Credit Card_ Risk Profi
Loans - Credit Card: Risk Profile by Geographic Region and Delinquency Status (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 245,899 | $ 254,473 | $ 245,586 |
Credit Card Portfolio Segment | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 116,361 | $ 114,762 | |
Percentage of portfolio | 100.00% | 100.00% | |
Credit Card Portfolio Segment | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 11,591 | $ 11,475 | |
Percentage of portfolio | 10.00% | 10.00% | |
Credit Card Portfolio Segment | Texas | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 8,173 | $ 7,847 | |
Percentage of portfolio | 7.00% | 6.80% | |
Credit Card Portfolio Segment | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 7,400 | $ 7,389 | |
Percentage of portfolio | 6.40% | 6.40% | |
Credit Card Portfolio Segment | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 7,086 | $ 6,790 | |
Percentage of portfolio | 6.10% | 5.90% | |
Credit Card Portfolio Segment | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 4,761 | $ 4,734 | |
Percentage of portfolio | 4.10% | 4.10% | |
Credit Card Portfolio Segment | Pennsylvania | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 4,575 | $ 4,550 | |
Percentage of portfolio | 3.90% | 4.00% | |
Credit Card Portfolio Segment | Ohio | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 3,967 | $ 3,929 | |
Percentage of portfolio | 3.40% | 3.40% | |
Credit Card Portfolio Segment | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 3,641 | $ 3,621 | |
Percentage of portfolio | 3.10% | 3.20% | |
Credit Card Portfolio Segment | Michigan | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 3,544 | $ 3,523 | |
Percentage of portfolio | 3.00% | 3.10% | |
Credit Card Portfolio Segment | Other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 52,612 | $ 51,435 | |
Percentage of portfolio | 45.30% | 44.80% | |
Credit Card Portfolio Segment | Canada | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 6,023 | $ 6,286 | |
Percentage of portfolio | 5.10% | 5.50% | |
Credit Card Portfolio Segment | United Kingdom | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 2,988 | $ 3,183 | |
Percentage of portfolio | 2.60% | 2.80% | |
Credit Card Portfolio Segment | Domestic credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 107,350 | $ 105,293 | |
Percentage of portfolio | 92.30% | 91.70% | |
Credit Card Portfolio Segment | International card business | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 9,011 | $ 9,469 | |
Percentage of portfolio | 7.70% | 8.30% |
Loans - Credit Card_ Net Charge
Loans - Credit Card: Net Charge-Offs (Detail) - Credit Card Portfolio Segment - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Net charge-offs | $ 5,069 | $ 5,054 | $ 3,953 |
Percentage annualized net charge-off by average loans held for investment | 4.62% | 4.88% | 4.09% |
Domestic credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Net charge-offs | $ 4,782 | $ 4,739 | $ 3,681 |
Percentage annualized net charge-off by average loans held for investment | 4.74% | 4.99% | 4.16% |
International card business | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Net charge-offs | $ 287 | $ 315 | $ 272 |
Percentage annualized net charge-off by average loans held for investment | 3.19% | 3.69% | 3.33% |
Loans - Consumer Banking_ Risk
Loans - Consumer Banking: Risk Profile by Geographic Region, Delinquency Status and Performing Status (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 245,899 | $ 254,473 | $ 245,586 |
Consumer Portfolio Segment | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 59,205 | $ 75,078 | |
Percentage of portfolio | 100.00% | 100.00% | |
Consumer Portfolio Segment | Auto | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 56,341 | $ 53,991 | |
Consumer Portfolio Segment | Auto | Loans Receivable | Geographic Concentration Risk | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 56,341 | $ 53,991 | |
Percentage of portfolio | 95.20% | 71.90% | |
Consumer Portfolio Segment | Auto | Loans Receivable | Geographic Concentration Risk | Texas | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 7,264 | $ 7,040 | |
Percentage of portfolio | 12.30% | 9.40% | |
Consumer Portfolio Segment | Auto | Loans Receivable | Geographic Concentration Risk | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 6,352 | $ 6,099 | |
Percentage of portfolio | 10.70% | 8.10% | |
Consumer Portfolio Segment | Auto | Loans Receivable | Geographic Concentration Risk | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 4,623 | $ 4,486 | |
Percentage of portfolio | 7.80% | 6.00% | |
Consumer Portfolio Segment | Auto | Loans Receivable | Geographic Concentration Risk | Georgia | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 2,665 | $ 2,726 | |
Percentage of portfolio | 4.50% | 3.60% | |
Consumer Portfolio Segment | Auto | Loans Receivable | Geographic Concentration Risk | Ohio | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 2,502 | $ 2,318 | |
Percentage of portfolio | 4.20% | 3.10% | |
Consumer Portfolio Segment | Auto | Loans Receivable | Geographic Concentration Risk | Louisiana | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 2,174 | $ 2,236 | |
Percentage of portfolio | 3.70% | 3.00% | |
Consumer Portfolio Segment | Auto | Loans Receivable | Geographic Concentration Risk | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 2,171 | $ 2,181 | |
Percentage of portfolio | 3.70% | 2.90% | |
Consumer Portfolio Segment | Auto | Loans Receivable | Geographic Concentration Risk | Pennsylvania | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 2,167 | $ 2,014 | |
Percentage of portfolio | 3.70% | 2.70% | |
Consumer Portfolio Segment | Auto | Loans Receivable | Geographic Concentration Risk | Other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 26,423 | $ 24,891 | |
Percentage of portfolio | 44.60% | 33.10% | |
Consumer Portfolio Segment | Retail banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 2,864 | $ 3,454 | |
Consumer Portfolio Segment | Retail banking | Loans Receivable | Geographic Concentration Risk | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 2,864 | $ 3,454 | |
Percentage of portfolio | 4.80% | 4.60% | |
Consumer Portfolio Segment | Retail banking | Loans Receivable | Geographic Concentration Risk | Texas | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 647 | $ 717 | |
Percentage of portfolio | 1.10% | 0.90% | |
Consumer Portfolio Segment | Retail banking | Loans Receivable | Geographic Concentration Risk | Louisiana | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 772 | $ 953 | |
Percentage of portfolio | 1.30% | 1.30% | |
Consumer Portfolio Segment | Retail banking | Loans Receivable | Geographic Concentration Risk | Other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 109 | $ 267 | |
Percentage of portfolio | 0.20% | 0.40% | |
Consumer Portfolio Segment | Retail banking | Loans Receivable | Geographic Concentration Risk | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 837 | $ 955 | |
Percentage of portfolio | 1.40% | 1.30% | |
Consumer Portfolio Segment | Retail banking | Loans Receivable | Geographic Concentration Risk | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 201 | $ 221 | |
Percentage of portfolio | 0.30% | 0.30% | |
Consumer Portfolio Segment | Retail banking | Loans Receivable | Geographic Concentration Risk | Maryland | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 161 | $ 187 | |
Percentage of portfolio | 0.30% | 0.20% | |
Consumer Portfolio Segment | Retail banking | Loans Receivable | Geographic Concentration Risk | Virginia | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 137 | $ 154 | |
Percentage of portfolio | 0.20% | 0.20% | |
Consumer Portfolio Segment | Home loan | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 17,633 | ||
Consumer Portfolio Segment | Home loan | Loans Receivable | Geographic Concentration Risk | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage of portfolio | 0.00% | 23.50% | |
Consumer Portfolio Segment | Home loan | Home Loans Receivable | Geographic Concentration Risk | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 0 | $ 17,633 |
Loans - Consumer Banking_ Net C
Loans - Consumer Banking: Net Charge-Offs and Nonperforming Loans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Nonperforming Loans | $ 813 | $ 899 | |
Financing Receivable, Nonaccrual, Percent Past Due | 0.33% | 0.35% | |
Consumer Portfolio Segment | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Net charge-offs | $ 981 | $ 1,038 | $ 820 |
Percentage annualized net charge-off by average loans held for investment | 1.51% | 1.39% | 1.15% |
Nonperforming Loans | $ 479 | $ 587 | |
Financing Receivable, Nonaccrual, Percent Past Due | 0.81% | 0.78% | |
Consumer Portfolio Segment | Auto | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Net charge-offs | $ 912 | $ 957 | $ 752 |
Percentage annualized net charge-off by average loans held for investment | 1.64% | 1.86% | 1.69% |
Nonperforming Loans | $ 449 | $ 376 | |
Financing Receivable, Nonaccrual, Percent Past Due | 0.80% | 0.70% | |
Consumer Portfolio Segment | Home loan | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Net charge-offs | $ (1) | $ 15 | $ 14 |
Percentage annualized net charge-off by average loans held for investment | (0.02%) | 0.08% | 0.06% |
Nonperforming Loans | $ 0 | $ 176 | |
Financing Receivable, Nonaccrual, Percent Past Due | 0.00% | 1.00% | |
Consumer Portfolio Segment | Retail banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Net charge-offs | $ 70 | $ 66 | $ 54 |
Percentage annualized net charge-off by average loans held for investment | 2.26% | 1.92% | 1.53% |
Nonperforming Loans | $ 30 | $ 35 | |
Financing Receivable, Nonaccrual, Percent Past Due | 1.04% | 1.00% |
Loans - Commercial Banking_ Ris
Loans - Commercial Banking: Risk Profile by Geographic Region and Internal Risk Rating (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 245,899 | $ 254,473 | $ 245,586 |
Financial Asset Acquired with Credit Deterioration [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | 135 | 10,775 | |
Commercial Banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | 70,333 | 64,575 | |
Commercial Banking | Financial Asset Acquired with Credit Deterioration [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | 130 | 480 | |
Commercial Banking | Geographic Concentration Risk | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 70,333 | $ 64,575 | |
Percentage of portfolio | 100.00% | 100.00% | |
Commercial Banking | Internal Risk Rating Concentration Risk | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 70,333 | $ 64,575 | |
Percentage of portfolio | 100.00% | 100.00% | |
Commercial Banking | Commercial and multifamily real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 28,899 | $ 26,150 | |
Commercial Banking | Commercial and multifamily real estate | Financial Asset Acquired with Credit Deterioration [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | 22 | 25 | |
Commercial Banking | Commercial and multifamily real estate | Geographic Concentration Risk | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 28,899 | $ 26,150 | |
Percentage of portfolio | 100.00% | 100.00% | |
Commercial Banking | Commercial and multifamily real estate | Internal Risk Rating Concentration Risk | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 28,899 | $ 26,150 | |
Percentage of portfolio | 100.00% | 100.00% | |
Commercial Banking | Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 41,091 | $ 38,025 | |
Commercial Banking | Commercial and industrial | Financial Asset Acquired with Credit Deterioration [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | 108 | 455 | |
Commercial Banking | Commercial and industrial | Geographic Concentration Risk | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 41,091 | $ 38,025 | |
Percentage of portfolio | 100.00% | 100.00% | |
Commercial Banking | Commercial and industrial | Internal Risk Rating Concentration Risk | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 41,091 | $ 38,025 | |
Percentage of portfolio | 100.00% | 100.00% | |
Commercial Banking | Small-ticket commercial real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 343 | $ 400 | |
Commercial Banking | Small-ticket commercial real estate | Financial Asset Acquired with Credit Deterioration [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | 0 | 0 | |
Commercial Banking | Small-ticket commercial real estate | Geographic Concentration Risk | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 343 | $ 400 | |
Percentage of portfolio | 100.00% | 100.00% | |
Commercial Banking | Small-ticket commercial real estate | Internal Risk Rating Concentration Risk | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 343 | $ 400 | |
Percentage of portfolio | 100.00% | 100.00% | |
Commercial Banking | Loans Receivable | Geographic Concentration Risk | Northeast | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 23,348 | $ 22,993 | |
Percentage of portfolio | 33.20% | 35.70% | |
Commercial Banking | Loans Receivable | Geographic Concentration Risk | Mid-Atlantic | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 8,132 | $ 6,612 | |
Percentage of portfolio | 11.60% | 10.20% | |
Commercial Banking | Loans Receivable | Geographic Concentration Risk | South | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 19,634 | $ 18,480 | |
Percentage of portfolio | 27.90% | 28.60% | |
Commercial Banking | Loans Receivable | Geographic Concentration Risk | Other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 19,219 | $ 16,490 | |
Percentage of portfolio | 27.30% | 25.50% | |
Commercial Banking | Loans Receivable | Internal Risk Rating Concentration Risk | Financial Asset Acquired with Credit Deterioration [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 130 | $ 480 | |
Percentage of portfolio | 0.20% | 0.80% | |
Commercial Banking | Loans Receivable | Internal Risk Rating Concentration Risk | Noncriticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 68,043 | $ 61,162 | |
Percentage of portfolio | 96.80% | 94.70% | |
Commercial Banking | Loans Receivable | Internal Risk Rating Concentration Risk | Criticized | Criticized performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 1,848 | $ 2,649 | |
Percentage of portfolio | 2.60% | 4.10% | |
Commercial Banking | Loans Receivable | Internal Risk Rating Concentration Risk | Criticized | Criticized nonperforming | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 312 | $ 284 | |
Percentage of portfolio | 0.40% | 0.40% | |
Commercial Banking | Loans Receivable | Commercial and multifamily real estate | Geographic Concentration Risk | Northeast | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 15,562 | $ 14,969 | |
Percentage of portfolio | 53.80% | 57.30% | |
Commercial Banking | Loans Receivable | Commercial and multifamily real estate | Geographic Concentration Risk | Mid-Atlantic | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 3,410 | $ 2,675 | |
Percentage of portfolio | 11.80% | 10.20% | |
Commercial Banking | Loans Receivable | Commercial and multifamily real estate | Geographic Concentration Risk | South | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 4,247 | $ 3,719 | |
Percentage of portfolio | 14.70% | 14.20% | |
Commercial Banking | Loans Receivable | Commercial and multifamily real estate | Geographic Concentration Risk | Other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 5,680 | $ 4,787 | |
Percentage of portfolio | 19.70% | 18.30% | |
Commercial Banking | Loans Receivable | Commercial and multifamily real estate | Internal Risk Rating Concentration Risk | Financial Asset Acquired with Credit Deterioration [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 22 | $ 25 | |
Percentage of portfolio | 0.10% | 0.10% | |
Commercial Banking | Loans Receivable | Commercial and multifamily real estate | Internal Risk Rating Concentration Risk | Noncriticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 28,239 | $ 25,609 | |
Percentage of portfolio | 97.70% | 98.00% | |
Commercial Banking | Loans Receivable | Commercial and multifamily real estate | Internal Risk Rating Concentration Risk | Criticized | Criticized performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 555 | $ 478 | |
Percentage of portfolio | 1.90% | 1.80% | |
Commercial Banking | Loans Receivable | Commercial and multifamily real estate | Internal Risk Rating Concentration Risk | Criticized | Criticized nonperforming | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 83 | $ 38 | |
Percentage of portfolio | 0.30% | 0.10% | |
Commercial Banking | Loans Receivable | Commercial and industrial | Geographic Concentration Risk | Northeast | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 7,573 | $ 7,774 | |
Percentage of portfolio | 18.40% | 20.40% | |
Commercial Banking | Loans Receivable | Commercial and industrial | Geographic Concentration Risk | Mid-Atlantic | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 4,710 | $ 3,922 | |
Percentage of portfolio | 11.50% | 10.30% | |
Commercial Banking | Loans Receivable | Commercial and industrial | Geographic Concentration Risk | South | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 15,367 | $ 14,739 | |
Percentage of portfolio | 37.40% | 38.80% | |
Commercial Banking | Loans Receivable | Commercial and industrial | Geographic Concentration Risk | Other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 13,441 | $ 11,590 | |
Percentage of portfolio | 32.70% | 30.50% | |
Commercial Banking | Loans Receivable | Commercial and industrial | Internal Risk Rating Concentration Risk | Financial Asset Acquired with Credit Deterioration [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 108 | $ 455 | |
Percentage of portfolio | 0.30% | 1.20% | |
Commercial Banking | Loans Receivable | Commercial and industrial | Internal Risk Rating Concentration Risk | Noncriticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 39,468 | $ 35,161 | |
Percentage of portfolio | 96.10% | 92.50% | |
Commercial Banking | Loans Receivable | Commercial and industrial | Internal Risk Rating Concentration Risk | Criticized | Criticized performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 1,292 | $ 2,170 | |
Percentage of portfolio | 3.10% | 5.70% | |
Commercial Banking | Loans Receivable | Commercial and industrial | Internal Risk Rating Concentration Risk | Criticized | Criticized nonperforming | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 223 | $ 239 | |
Percentage of portfolio | 0.50% | 0.60% | |
Commercial Banking | Loans Receivable | Small-ticket commercial real estate | Geographic Concentration Risk | Northeast | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 213 | $ 250 | |
Percentage of portfolio | 62.10% | 62.40% | |
Commercial Banking | Loans Receivable | Small-ticket commercial real estate | Geographic Concentration Risk | Mid-Atlantic | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 12 | $ 15 | |
Percentage of portfolio | 3.50% | 3.80% | |
Commercial Banking | Loans Receivable | Small-ticket commercial real estate | Geographic Concentration Risk | South | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 20 | $ 22 | |
Percentage of portfolio | 5.80% | 5.50% | |
Commercial Banking | Loans Receivable | Small-ticket commercial real estate | Geographic Concentration Risk | Other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 98 | $ 113 | |
Percentage of portfolio | 28.60% | 28.30% | |
Commercial Banking | Loans Receivable | Small-ticket commercial real estate | Internal Risk Rating Concentration Risk | Financial Asset Acquired with Credit Deterioration [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 0 | $ 0 | |
Percentage of portfolio | 0.00% | 0.00% | |
Commercial Banking | Loans Receivable | Small-ticket commercial real estate | Internal Risk Rating Concentration Risk | Noncriticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 336 | $ 392 | |
Percentage of portfolio | 98.00% | 97.90% | |
Commercial Banking | Loans Receivable | Small-ticket commercial real estate | Internal Risk Rating Concentration Risk | Criticized | Criticized performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 1 | $ 1 | |
Percentage of portfolio | 0.30% | 0.30% | |
Commercial Banking | Loans Receivable | Small-ticket commercial real estate | Internal Risk Rating Concentration Risk | Criticized | Criticized nonperforming | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment | $ 6 | $ 7 | |
Percentage of portfolio | 1.70% | 1.80% |
Loans - Impaired Loans, Excludi
Loans - Impaired Loans, Excluding Acquired Loans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Impaired Financing Receivable: | |||
With an Allowance | $ 1,591 | $ 2,052 | |
Without an Allowance | 253 | 393 | |
Total Recorded Investment | 1,844 | 2,445 | |
Related Allowance | 338 | 421 | |
Net Recorded Investment | 1,506 | 2,024 | |
Unpaid Principal Balance | 2,040 | 2,882 | |
Average Recorded Investment | 2,105 | 2,868 | $ 2,930 |
Interest Income Recognized | 145 | 155 | 177 |
Credit Card Portfolio Segment | |||
Impaired Financing Receivable: | |||
With an Allowance | 855 | 812 | |
Without an Allowance | 0 | 0 | |
Total Recorded Investment | 855 | 812 | |
Related Allowance | 277 | 292 | |
Net Recorded Investment | 578 | 520 | |
Unpaid Principal Balance | 837 | 792 | |
Average Recorded Investment | 839 | 756 | 673 |
Interest Income Recognized | 75 | 74 | 68 |
Credit Card Portfolio Segment | Domestic credit card | |||
Impaired Financing Receivable: | |||
With an Allowance | 666 | 639 | |
Without an Allowance | 0 | 0 | |
Total Recorded Investment | 666 | 639 | |
Related Allowance | 186 | 208 | |
Net Recorded Investment | 480 | 431 | |
Unpaid Principal Balance | 654 | 625 | |
Average Recorded Investment | 655 | 602 | 540 |
Interest Income Recognized | 63 | 63 | 58 |
Credit Card Portfolio Segment | International card business | |||
Impaired Financing Receivable: | |||
With an Allowance | 189 | 173 | |
Without an Allowance | 0 | 0 | |
Total Recorded Investment | 189 | 173 | |
Related Allowance | 91 | 84 | |
Net Recorded Investment | 98 | 89 | |
Unpaid Principal Balance | 183 | 167 | |
Average Recorded Investment | 184 | 154 | 133 |
Interest Income Recognized | 12 | 11 | 10 |
Consumer Portfolio Segment | |||
Impaired Financing Receivable: | |||
With an Allowance | 343 | 606 | |
Without an Allowance | 50 | 169 | |
Total Recorded Investment | 393 | 775 | |
Related Allowance | 27 | 53 | |
Net Recorded Investment | 366 | 722 | |
Unpaid Principal Balance | 480 | 1,094 | |
Average Recorded Investment | 547 | 853 | 924 |
Interest Income Recognized | 48 | 59 | 93 |
Consumer Portfolio Segment | Auto | |||
Impaired Financing Receivable: | |||
With an Allowance | 301 | 363 | |
Without an Allowance | 38 | 118 | |
Total Recorded Investment | 339 | 481 | |
Related Allowance | 22 | 30 | |
Net Recorded Investment | 317 | 451 | |
Unpaid Principal Balance | 420 | 730 | |
Average Recorded Investment | 397 | 495 | 501 |
Interest Income Recognized | 45 | 53 | 86 |
Consumer Portfolio Segment | Home loan | |||
Impaired Financing Receivable: | |||
With an Allowance | 192 | ||
Without an Allowance | 41 | ||
Total Recorded Investment | 233 | ||
Related Allowance | 15 | ||
Net Recorded Investment | 218 | ||
Unpaid Principal Balance | 298 | ||
Average Recorded Investment | 91 | 299 | 361 |
Interest Income Recognized | 1 | 5 | 5 |
Consumer Portfolio Segment | Retail banking | |||
Impaired Financing Receivable: | |||
With an Allowance | 42 | 51 | |
Without an Allowance | 12 | 10 | |
Total Recorded Investment | 54 | 61 | |
Related Allowance | 5 | 8 | |
Net Recorded Investment | 49 | 53 | |
Unpaid Principal Balance | 60 | 66 | |
Average Recorded Investment | 59 | 59 | 62 |
Interest Income Recognized | 2 | 1 | 2 |
Commercial Banking | |||
Impaired Financing Receivable: | |||
With an Allowance | 393 | 634 | |
Without an Allowance | 203 | 224 | |
Total Recorded Investment | 596 | 858 | |
Related Allowance | 34 | 76 | |
Net Recorded Investment | 562 | 782 | |
Unpaid Principal Balance | 723 | 996 | |
Average Recorded Investment | 719 | 1,259 | 1,333 |
Interest Income Recognized | 22 | 22 | 16 |
Commercial Banking | Total commercial lending | |||
Impaired Financing Receivable: | |||
With an Allowance | 393 | 627 | |
Without an Allowance | 197 | 224 | |
Total Recorded Investment | 590 | 851 | |
Related Allowance | 34 | 76 | |
Net Recorded Investment | 556 | 775 | |
Unpaid Principal Balance | 714 | 987 | |
Average Recorded Investment | 714 | 1,252 | 1,326 |
Interest Income Recognized | 22 | 22 | 16 |
Commercial Banking | Commercial and multifamily real estate | |||
Impaired Financing Receivable: | |||
With an Allowance | 92 | 138 | |
Without an Allowance | 28 | 2 | |
Total Recorded Investment | 120 | 140 | |
Related Allowance | 5 | 13 | |
Net Recorded Investment | 115 | 127 | |
Unpaid Principal Balance | 121 | 143 | |
Average Recorded Investment | 93 | 134 | 111 |
Interest Income Recognized | 2 | 4 | 3 |
Commercial Banking | Commercial and industrial | |||
Impaired Financing Receivable: | |||
With an Allowance | 301 | 489 | |
Without an Allowance | 169 | 222 | |
Total Recorded Investment | 470 | 711 | |
Related Allowance | 29 | 63 | |
Net Recorded Investment | 441 | 648 | |
Unpaid Principal Balance | 593 | 844 | |
Average Recorded Investment | 621 | 1,118 | 1,215 |
Interest Income Recognized | 20 | 18 | 13 |
Commercial Banking | Small-ticket commercial real estate | |||
Impaired Financing Receivable: | |||
With an Allowance | 0 | 7 | |
Without an Allowance | 6 | 0 | |
Total Recorded Investment | 6 | 7 | |
Related Allowance | 0 | 0 | |
Net Recorded Investment | 6 | 7 | |
Unpaid Principal Balance | 9 | 9 | |
Average Recorded Investment | 5 | 7 | 7 |
Interest Income Recognized | $ 0 | $ 0 | $ 0 |
Loans - TDR Disclosures in Prog
Loans - TDR Disclosures in Progress Financial Impact of Modification (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Modifications [Line Items] | |||
Total Loans Modified | $ 1,053 | $ 1,520 | $ 1,654 |
Credit Card Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Total Loans Modified | 596 | 575 | 450 |
Consumer Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Total Loans Modified | 241 | 356 | 422 |
Consumer Portfolio Segment | Auto | |||
Financing Receivable, Modifications [Line Items] | |||
Total Loans Modified | 227 | 324 | 356 |
Consumer Portfolio Segment | Home loan | |||
Financing Receivable, Modifications [Line Items] | |||
Total Loans Modified | 6 | 19 | 48 |
Consumer Portfolio Segment | Retail banking | |||
Financing Receivable, Modifications [Line Items] | |||
Total Loans Modified | 8 | 13 | 18 |
Commercial Banking | |||
Financing Receivable, Modifications [Line Items] | |||
Total Loans Modified | 216 | 589 | 782 |
Commercial Banking | Total commercial lending | |||
Financing Receivable, Modifications [Line Items] | |||
Total Loans Modified | 213 | 586 | 781 |
Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Total Loans Modified | 43 | 29 | 38 |
Commercial Banking | Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Total Loans Modified | 170 | 557 | 743 |
Commercial Banking | Small-ticket commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Total Loans Modified | $ 3 | $ 3 | $ 1 |
Reduced Interest Rate | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 68.00% | 55.00% | 41.00% |
Average Rate Reduction | 16.84% | 13.19% | 12.42% |
Reduced Interest Rate | Credit Card Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 100.00% | 100.00% | 100.00% |
Average Rate Reduction | 19.34% | 18.02% | 17.09% |
Reduced Interest Rate | Consumer Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 48.00% | 44.00% | 46.00% |
Average Rate Reduction | 3.93% | 3.79% | 3.73% |
Reduced Interest Rate | Consumer Portfolio Segment | Auto | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 49.00% | 44.00% | 44.00% |
Average Rate Reduction | 3.88% | 3.82% | 3.91% |
Reduced Interest Rate | Consumer Portfolio Segment | Home loan | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 28.00% | 48.00% | 64.00% |
Average Rate Reduction | 1.78% | 2.77% | 2.25% |
Reduced Interest Rate | Consumer Portfolio Segment | Retail banking | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 16.00% | 22.00% | 23.00% |
Average Rate Reduction | 10.92% | 5.77% | 7.89% |
Reduced Interest Rate | Commercial Banking | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 18.00% | 4.00% |
Average Rate Reduction | 1.03% | 0.79% | 0.09% |
Reduced Interest Rate | Commercial Banking | Total commercial lending | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 18.00% | 4.00% |
Average Rate Reduction | 1.03% | 0.79% | 0.09% |
Reduced Interest Rate | Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 7.00% | 0.00% |
Average Rate Reduction | 0.00% | 0.02% | 0.00% |
Reduced Interest Rate | Commercial Banking | Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 19.00% | 5.00% |
Average Rate Reduction | 1.03% | 0.80% | 0.09% |
Reduced Interest Rate | Commercial Banking | Small-ticket commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 0.00% |
Average Rate Reduction | 0.00% | 0.00% | 0.00% |
Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 32.00% | 44.00% | 46.00% |
Average Term Extension (Months) | 12 months | 16 months | 27 months |
Term Extension | Credit Card Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 0.00% |
Average Term Extension (Months) | 0 months | 0 months | 0 months |
Term Extension | Consumer Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 87.00% | 93.00% | 75.00% |
Average Term Extension (Months) | 13 months | 16 months | 38 months |
Term Extension | Consumer Portfolio Segment | Auto | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 89.00% | 95.00% | 74.00% |
Average Term Extension (Months) | 8 months | 6 months | 7 months |
Term Extension | Consumer Portfolio Segment | Home loan | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 83.00% | 78.00% | 87.00% |
Average Term Extension (Months) | 214 months | 233 months | 243 months |
Term Extension | Consumer Portfolio Segment | Retail banking | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 43.00% | 73.00% | 68.00% |
Average Term Extension (Months) | 12 months | 10 months | 10 months |
Term Extension | Commercial Banking | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 59.00% | 57.00% | 57.00% |
Average Term Extension (Months) | 11 months | 16 months | 19 months |
Term Extension | Commercial Banking | Total commercial lending | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 60.00% | 57.00% | 57.00% |
Average Term Extension (Months) | 11 months | 16 months | 19 months |
Term Extension | Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 80.00% | 26.00% | 67.00% |
Average Term Extension (Months) | 5 months | 5 months | 6 months |
Term Extension | Commercial Banking | Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 54.00% | 59.00% | 57.00% |
Average Term Extension (Months) | 13 months | 17 months | 20 months |
Term Extension | Commercial Banking | Small-ticket commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 4.00% | 0.00% |
Average Term Extension (Months) | 0 months | 0 months | 0 months |
Balance Reduction | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 9.00% |
Gross Balance Reduction | $ 1 | $ 7 | $ 108 |
Balance Reduction | Credit Card Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 0.00% |
Gross Balance Reduction | $ 0 | $ 0 | $ 0 |
Balance Reduction | Consumer Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 1.00% | 2.00% | 22.00% |
Gross Balance Reduction | $ 1 | $ 7 | $ 79 |
Balance Reduction | Consumer Portfolio Segment | Auto | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 1.00% | 2.00% | 25.00% |
Gross Balance Reduction | $ 1 | $ 7 | $ 78 |
Balance Reduction | Consumer Portfolio Segment | Home loan | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 2.00% | 2.00% |
Gross Balance Reduction | $ 0 | $ 0 | $ 0 |
Balance Reduction | Consumer Portfolio Segment | Retail banking | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 9.00% |
Gross Balance Reduction | $ 0 | $ 0 | $ 1 |
Balance Reduction | Commercial Banking | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 8.00% |
Gross Balance Reduction | $ 0 | $ 0 | $ 29 |
Balance Reduction | Commercial Banking | Total commercial lending | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 8.00% |
Gross Balance Reduction | $ 0 | $ 0 | $ 29 |
Balance Reduction | Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 32.00% |
Gross Balance Reduction | $ 0 | $ 0 | $ 3 |
Balance Reduction | Commercial Banking | Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 7.00% |
Gross Balance Reduction | $ 0 | $ 0 | $ 26 |
Balance Reduction | Commercial Banking | Small-ticket commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 0.00% |
Gross Balance Reduction | $ 0 | $ 0 | $ 0 |
Domestic credit card | Credit Card Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Total Loans Modified | $ 412 | $ 406 | $ 312 |
Domestic credit card | Reduced Interest Rate | Credit Card Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 100.00% | 100.00% | 100.00% |
Average Rate Reduction | 15.93% | 14.50% | 13.19% |
Domestic credit card | Term Extension | Credit Card Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 0.00% |
Average Term Extension (Months) | 0 months | 0 months | 0 months |
Domestic credit card | Balance Reduction | Credit Card Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 0.00% |
Gross Balance Reduction | $ 0 | $ 0 | $ 0 |
International card business | Credit Card Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Total Loans Modified | $ 184 | $ 169 | $ 138 |
International card business | Reduced Interest Rate | Credit Card Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 100.00% | 100.00% | 100.00% |
Average Rate Reduction | 26.96% | 26.51% | 25.87% |
International card business | Term Extension | Credit Card Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 0.00% |
Average Term Extension (Months) | 0 months | 0 months | 0 months |
International card business | Balance Reduction | Credit Card Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 0.00% |
Gross Balance Reduction | $ 0 | $ 0 | $ 0 |
Loans - TDR - Subsequent Defaul
Loans - TDR - Subsequent Defaults of Completed TDR Modifications (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)Contract | Dec. 31, 2017USD ($)Contract | Dec. 31, 2016USD ($)Contract | |
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 129,120 | 116,523 | 91,597 |
Total Loans | $ | $ 437 | $ 594 | $ 550 |
Credit Card Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 122,084 | 106,762 | 82,748 |
Total Loans | $ | $ 232 | $ 204 | $ 155 |
Consumer Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 7,009 | 9,515 | 8,691 |
Total Loans | $ | $ 82 | $ 120 | $ 112 |
Consumer Portfolio Segment | Auto | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 6,980 | 9,446 | 8,587 |
Total Loans | $ | $ 79 | $ 109 | $ 96 |
Consumer Portfolio Segment | Home loan | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 3 | 28 | 56 |
Total Loans | $ | $ 1 | $ 7 | $ 7 |
Consumer Portfolio Segment | Retail banking | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 26 | 41 | 48 |
Total Loans | $ | $ 2 | $ 4 | $ 9 |
Commercial Banking | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 27 | 246 | 158 |
Total Loans | $ | $ 123 | $ 270 | $ 283 |
Commercial Banking | Total commercial lending | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 27 | 244 | 151 |
Total Loans | $ | $ 123 | $ 269 | $ 282 |
Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 1 | 0 | 1 |
Total Loans | $ | $ 3 | $ 0 | $ 1 |
Commercial Banking | Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 26 | 244 | 150 |
Total Loans | $ | $ 120 | $ 269 | $ 281 |
Commercial Banking | Small-ticket commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 0 | 2 | 7 |
Total Loans | $ | $ 0 | $ 1 | $ 1 |
Domestic credit card | Credit Card Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 61,070 | 55,121 | 42,250 |
Total Loans | $ | $ 126 | $ 111 | $ 73 |
International card business | Credit Card Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 61,014 | 51,641 | 40,498 |
Total Loans | $ | $ 106 | $ 93 | $ 82 |
Allowance for Loan and Lease _3
Allowance for Loan and Lease Losses - Summary of Changes in Allowance for Loan and Lease Losses (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance as beginning of the period | $ 7,502 | ||
Balance at end of the period | 7,220 | $ 7,502 | |
Benefit for credit losses | 5,856 | 7,551 | $ 6,459 |
Total Allowance | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance as beginning of the period | 7,502 | 6,503 | 5,130 |
Charge-offs | (8,615) | (8,513) | (6,555) |
Recoveries | 2,503 | 1,951 | 1,493 |
Net charge-offs | (6,112) | (6,562) | (5,062) |
Provision (benefit) for loan and lease losses | 5,858 | 7,563 | 6,491 |
Allowance build (release) for loan and lease losses | (254) | 1,001 | 1,429 |
Other changes | (28) | (2) | (56) |
Balance at end of the period | 7,220 | 7,502 | 6,503 |
Unfunded Lending Commitments Reserve | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance as beginning of the period | 124 | 136 | 168 |
Provision (benefit) for loan and lease losses | (2) | (12) | (32) |
Balance at end of the period | 122 | 124 | 136 |
Combined Allowance & Unfunded Reserve | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance as beginning of the period | 7,626 | 6,639 | |
Balance at end of the period | 7,342 | 7,626 | 6,639 |
Credit Card Portfolio Segment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance as beginning of the period | 5,648 | 4,606 | 3,654 |
Charge-offs | (6,657) | (6,321) | (5,019) |
Recoveries | 1,588 | 1,267 | 1,066 |
Net charge-offs | (5,069) | (5,054) | (3,953) |
Provision (benefit) for loan and lease losses | 4,984 | 6,066 | 4,926 |
Allowance build (release) for loan and lease losses | (85) | 1,012 | 973 |
Other changes | (28) | 30 | (21) |
Balance at end of the period | 5,535 | 5,648 | 4,606 |
Credit Card Portfolio Segment | Unfunded Lending Commitments Reserve | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance as beginning of the period | 0 | 0 | 0 |
Provision (benefit) for loan and lease losses | 0 | 0 | 0 |
Balance at end of the period | 0 | 0 | 0 |
Credit Card Portfolio Segment | Combined Allowance & Unfunded Reserve | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance as beginning of the period | 5,648 | 4,606 | |
Balance at end of the period | 5,535 | 5,648 | 4,606 |
Consumer Portfolio Segment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance as beginning of the period | 1,242 | 1,102 | 868 |
Charge-offs | (1,832) | (1,677) | (1,226) |
Recoveries | 851 | 639 | 406 |
Net charge-offs | (981) | (1,038) | (820) |
Provision (benefit) for loan and lease losses | 841 | 1,180 | 1,055 |
Allowance build (release) for loan and lease losses | (140) | 142 | 235 |
Other changes | (54) | (2) | (1) |
Balance at end of the period | 1,048 | 1,242 | 1,102 |
Consumer Portfolio Segment | Unfunded Lending Commitments Reserve | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance as beginning of the period | 7 | 7 | 7 |
Provision (benefit) for loan and lease losses | (3) | 0 | 0 |
Balance at end of the period | 4 | 7 | 7 |
Consumer Portfolio Segment | Combined Allowance & Unfunded Reserve | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance as beginning of the period | 1,249 | 1,109 | |
Balance at end of the period | 1,052 | 1,249 | 1,109 |
Consumer Portfolio Segment | Home loan | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Net charge-offs | 1 | (15) | (14) |
Commercial Banking | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance as beginning of the period | 611 | 793 | 604 |
Charge-offs | (119) | (481) | (307) |
Recoveries | 63 | 16 | 15 |
Net charge-offs | (56) | (465) | (292) |
Provision (benefit) for loan and lease losses | 82 | 313 | 515 |
Allowance build (release) for loan and lease losses | 26 | (152) | 223 |
Other changes | 0 | (30) | (34) |
Balance at end of the period | 637 | 611 | 793 |
Commercial Banking | Unfunded Lending Commitments Reserve | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance as beginning of the period | 117 | 129 | 161 |
Provision (benefit) for loan and lease losses | 1 | (12) | (32) |
Balance at end of the period | 118 | 117 | 129 |
Commercial Banking | Combined Allowance & Unfunded Reserve | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance as beginning of the period | 728 | 922 | |
Balance at end of the period | 755 | 728 | 922 |
Other | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance as beginning of the period | 1 | 2 | 4 |
Charge-offs | (7) | (34) | (3) |
Recoveries | 1 | 29 | 6 |
Net charge-offs | (6) | (5) | 3 |
Provision (benefit) for loan and lease losses | (49) | 4 | (5) |
Allowance build (release) for loan and lease losses | (55) | (1) | (2) |
Other changes | 54 | 0 | 0 |
Balance at end of the period | 0 | 1 | 2 |
Other | Unfunded Lending Commitments Reserve | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance as beginning of the period | 0 | 0 | 0 |
Provision (benefit) for loan and lease losses | 0 | 0 | 0 |
Balance at end of the period | 0 | 0 | 0 |
Other | Combined Allowance & Unfunded Reserve | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance as beginning of the period | 1 | 2 | |
Balance at end of the period | 0 | 1 | 2 |
Other | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Benefit for credit losses | (49) | $ 4 | $ (5) |
Other | Consumer Portfolio Segment | Home loan | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Gain (Loss) on Sale of Mortgage Loans | 499 | ||
Benefit for credit losses | (46) | ||
Other | Home Loans Receivable | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Gain (Loss) on Sale of Mortgage Loans | 499 | ||
Benefit for credit losses | $ 46 |
Allowance for Loan and Lease _4
Allowance for Loan and Lease Losses - Components of Allowance for Loan and Lease Losses by Impairment Methodology (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for loan and lease losses by impairment methodology: | ||||
Collectively evaluated | $ 6,882 | $ 7,044 | ||
Asset-specific | 338 | 421 | ||
Total allowance for loan and lease losses | 7,220 | 7,502 | ||
Loans held for investment by impairment methodology: | ||||
Collectively evaluated | 243,920 | 241,323 | ||
Asset-specific | 1,844 | 2,375 | ||
Loans held for investment | $ 245,899 | $ 254,473 | $ 245,586 | |
Allowance as a percentage of period-end loans held for investment | 2.94% | 2.95% | ||
Credit Card Portfolio Segment | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Collectively evaluated | $ 5,258 | $ 5,356 | ||
Asset-specific | 277 | 292 | ||
Total allowance for loan and lease losses | 5,535 | 5,648 | 4,606 | $ 3,654 |
Loans held for investment by impairment methodology: | ||||
Collectively evaluated | 115,505 | 113,948 | ||
Asset-specific | 855 | 812 | ||
Loans held for investment | $ 116,361 | $ 114,762 | ||
Allowance as a percentage of period-end loans held for investment | 4.76% | 4.92% | ||
Consumer Portfolio Segment | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Collectively evaluated | $ 1,021 | $ 1,158 | ||
Asset-specific | 27 | 53 | ||
Total allowance for loan and lease losses | 1,048 | 1,242 | 1,102 | 868 |
Loans held for investment by impairment methodology: | ||||
Collectively evaluated | 58,808 | 64,080 | ||
Asset-specific | 393 | 705 | ||
Loans held for investment | $ 59,205 | $ 75,078 | ||
Allowance as a percentage of period-end loans held for investment | 1.77% | 1.65% | ||
Commercial Banking | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Collectively evaluated | $ 603 | $ 529 | ||
Asset-specific | 34 | 76 | ||
Total allowance for loan and lease losses | 637 | 611 | 793 | 604 |
Loans held for investment by impairment methodology: | ||||
Collectively evaluated | 69,607 | 63,237 | ||
Asset-specific | 596 | 858 | ||
Loans held for investment | $ 70,333 | $ 64,575 | ||
Allowance as a percentage of period-end loans held for investment | 0.91% | 0.95% | ||
Other | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Collectively evaluated | $ 1 | |||
Asset-specific | 0 | |||
Total allowance for loan and lease losses | $ 0 | 1 | $ 2 | $ 4 |
Loans held for investment by impairment methodology: | ||||
Collectively evaluated | 58 | |||
Asset-specific | 0 | |||
Loans held for investment | $ 58 | |||
Allowance as a percentage of period-end loans held for investment | 1.72% | |||
Financial Asset Acquired with Credit Deterioration [Member] | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Financing Receivable, Allowance for Credit Losses | $ 37 | |||
Loans held for investment by impairment methodology: | ||||
Loans held for investment | 135 | 10,775 | ||
Financial Asset Acquired with Credit Deterioration [Member] | Credit Card Portfolio Segment | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Financing Receivable, Allowance for Credit Losses | 0 | |||
Loans held for investment by impairment methodology: | ||||
Loans held for investment | 1 | 2 | ||
Financial Asset Acquired with Credit Deterioration [Member] | Consumer Portfolio Segment | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Financing Receivable, Allowance for Credit Losses | 31 | |||
Loans held for investment by impairment methodology: | ||||
Loans held for investment | 4 | 10,293 | ||
Financial Asset Acquired with Credit Deterioration [Member] | Commercial Banking | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Financing Receivable, Allowance for Credit Losses | 6 | |||
Loans held for investment by impairment methodology: | ||||
Loans held for investment | $ 130 | 480 | ||
Financial Asset Acquired with Credit Deterioration [Member] | Other | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Financing Receivable, Allowance for Credit Losses | 0 | |||
Loans held for investment by impairment methodology: | ||||
Loans held for investment | $ 0 |
Allowance for Loan and Lease _5
Allowance for Loan and Lease Losses Allowance for Loan and Lease Losses - Loss Sharing Arrangements (Details) - Loss Sharing Agreement [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Expected reimbursement from loss sharing partners, beginning balance | $ 380 | $ 228 | $ 194 |
Amounts due from partners which reduced net charge-offs | (382) | (285) | (229) |
Amounts estimated to be charged to partners which reduced provision for credit losses | 381 | 437 | 263 |
Expected reimbursement from loss sharing partners, ending balance | $ 379 | $ 380 | $ 228 |
Variable Interest Entities an_3
Variable Interest Entities and Securitizations - Carrying Amount of Assets and Liabilities of Variable Interest Entities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets, Consolidated | $ 35,556 | $ 36,700 |
Carrying Amount of Liabilities, Consolidated | 19,019 | 20,790 |
Carrying Amount of Assets, Unconsolidated | 4,802 | 4,948 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities | 1,377 | 1,674 |
Maximum exposure to loss | 5,145 | 5,550 |
Affordable housing entities | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets, Consolidated | 243 | 226 |
Carrying Amount of Liabilities, Consolidated | 17 | 10 |
Carrying Amount of Assets, Unconsolidated | 4,238 | 4,175 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities | 1,303 | 1,284 |
Maximum exposure to loss | 4,238 | 4,175 |
Variable Interest Entities, nonconsolidated, Carrying amount of Assets included in certain investment structures | 2,300 | 2,200 |
Variable Interest Entities, nonconsolidated, Carrying amount of liabilities included in certain investment structures | 811 | 901 |
Entities that provide capital to low-income and rural communities | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets, Consolidated | 1,739 | 1,498 |
Carrying Amount of Liabilities, Consolidated | 117 | 129 |
Carrying Amount of Assets, Unconsolidated | 0 | 0 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities | 0 | 0 |
Maximum exposure to loss | 0 | 0 |
Other | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets, Consolidated | 0 | 0 |
Carrying Amount of Liabilities, Consolidated | 0 | 0 |
Carrying Amount of Assets, Unconsolidated | 353 | 318 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities | 0 | 0 |
Maximum exposure to loss | 353 | 318 |
Total Other VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets, Consolidated | 1,982 | 1,724 |
Carrying Amount of Liabilities, Consolidated | 134 | 139 |
Carrying Amount of Assets, Unconsolidated | 4,591 | 4,493 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities | 1,303 | 1,284 |
Maximum exposure to loss | 4,591 | 4,493 |
Credit card loan securitizations | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets, Consolidated | 33,574 | 34,976 |
Carrying Amount of Liabilities, Consolidated | 18,885 | 20,651 |
Carrying Amount of Assets, Unconsolidated | 0 | 0 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities | 0 | 0 |
Maximum exposure to loss | 0 | 0 |
Home loan | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets, Consolidated | 0 | 0 |
Carrying Amount of Liabilities, Consolidated | 0 | 0 |
Carrying Amount of Assets, Unconsolidated | 211 | 455 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities | 74 | 390 |
Maximum exposure to loss | 554 | 1,057 |
Total securitization-related VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets, Consolidated | 33,574 | 34,976 |
Carrying Amount of Liabilities, Consolidated | 18,885 | 20,651 |
Carrying Amount of Assets, Unconsolidated | 211 | 455 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities | 74 | 390 |
Maximum exposure to loss | $ 554 | $ 1,057 |
Variable Interest Entities an_4
Variable Interest Entities and Securitizations - External Debt and Receivable Balances of Securitization Programs (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity, Primary Beneficiary | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Securities held by third-party investors, non-mortgage | $ 18,307 | $ 20,010 |
Receivables in the trust, non-mortgage | 34,197 | 35,667 |
Cash balance of spread or reserve accounts, non-mortgage | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Securities held by third-party investors, mortgage | 1,276 | 1,774 |
Receivables in the trust, mortgage | 1,305 | 1,812 |
Cash balance of spread or reserve accounts, mortgage | $ 116 | $ 124 |
Variable Interest Entities an_5
Variable Interest Entities and Securitizations - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | ||
Amortization Method Qualified Affordable Housing Project Investments, Amortization | $ 477 | $ 582 |
Affordable Housing Tax Credits And Other Tax Benefits, Amount | 529 | 504 |
Amortization Method Qualified Affordable Housing Project Investments | 4,200 | 3,900 |
Qualified Affordable Housing Project Investments, Commitment | 1,500 | 1,400 |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 4,802 | 4,948 |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 35,556 | 36,700 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 5,145 | 5,550 |
Affordable housing entities | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 4,238 | 4,175 |
Total assets of the unconsolidated VIE investment funds | 10,800 | 11,500 |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 243 | 226 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 4,238 | 4,175 |
Entities that provide capital to low-income and rural communities | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 0 | 0 |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 1,739 | 1,498 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 0 | 0 |
Other | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 353 | 318 |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 0 | 0 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 353 | $ 318 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Components (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Intangible Assets by Major Class [Line Items] | ||||
Goodwill, Gross | $ 14,544 | $ 14,533 | ||
Goodwill | 14,544 | 14,533 | $ 14,519 | $ 14,480 |
Intangible Assets, Gross (Excluding Goodwill) | 3,522 | 3,554 | ||
Accumulated Amortization | (3,268) | (3,133) | ||
Intangible Assets, Net (Excluding Goodwill) | 254 | 421 | ||
Intangible Assets Gross Including Goodwill | 18,066 | 18,087 | ||
Total goodwill and other intangible assets, Net Carrying Value | 14,798 | 14,954 | ||
Consumer MSRs | 92 | |||
Commercial MSRs, Gross | 459 | 355 | ||
Commercial MSR, Accumulated Amortization | (185) | (126) | ||
Total MSRs, Gross | 447 | |||
Servicing Asset at Amortized Cost | $ 274 | 229 | ||
Total MSRs, Net | $ 321 | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years | 4 years 10 months 24 days | ||
Servicing Asset at Amortized Cost, Amortization | $ 59 | $ 44 | ||
PCCR intangibles | ||||
Schedule of Intangible Assets by Major Class [Line Items] | ||||
Intangible Assets, Gross (Excluding Goodwill) | 2,102 | 2,105 | ||
Accumulated Amortization | (1,952) | (1,844) | ||
Intangible Assets, Net (Excluding Goodwill) | $ 150 | $ 261 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years 8 months 12 days | 3 years 7 months 6 days | ||
Core deposit intangibles | ||||
Schedule of Intangible Assets by Major Class [Line Items] | ||||
Intangible Assets, Gross (Excluding Goodwill) | $ 1,149 | $ 1,149 | ||
Accumulated Amortization | (1,148) | (1,133) | ||
Intangible Assets, Net (Excluding Goodwill) | $ 1 | $ 16 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 2 months 12 days | 1 year | ||
Other Intangible Assets [Member] | ||||
Schedule of Intangible Assets by Major Class [Line Items] | ||||
Intangible Assets, Gross (Excluding Goodwill) | $ 271 | $ 300 | ||
Accumulated Amortization | (168) | (156) | ||
Intangible Assets, Net (Excluding Goodwill) | $ 103 | $ 144 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 7 years 1 month 6 days | 7 years 9 months 18 days |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | $ 0 | $ 17 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Goodwill Attributable to Each Business Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | $ 14,533 | $ 14,519 | $ 14,480 |
Goodwill, Acquired During Period | 33 | 6 | 54 |
Goodwill, Written off Related to Sale of Business Unit | (17) | ||
Other adjustments | (5) | 8 | (15) |
Goodwill, Ending Balance | 14,544 | 14,533 | 14,519 |
Credit Card | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | 5,032 | 5,018 | 4,997 |
Goodwill, Acquired During Period | 33 | 6 | 36 |
Goodwill, Written off Related to Sale of Business Unit | 0 | ||
Other adjustments | (5) | 8 | (15) |
Goodwill, Ending Balance | 5,060 | 5,032 | 5,018 |
Consumer Banking | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | 4,600 | 4,600 | 4,600 |
Goodwill, Acquired During Period | 0 | 0 | 0 |
Goodwill, Written off Related to Sale of Business Unit | 0 | ||
Other adjustments | 0 | 0 | 0 |
Goodwill, Ending Balance | 4,600 | 4,600 | 4,600 |
Commercial Banking | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | 4,901 | 4,901 | 4,883 |
Goodwill, Acquired During Period | 0 | 0 | 18 |
Goodwill, Written off Related to Sale of Business Unit | (17) | ||
Other adjustments | 0 | 0 | 0 |
Goodwill, Ending Balance | $ 4,884 | $ 4,901 | $ 4,901 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Actual and Estimated Future Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 174 | $ 245 | $ 386 |
Estimated future amounts for the year ended December 31, | |||
2,019 | 109 | ||
2,020 | 58 | ||
2,021 | 28 | ||
2,022 | 20 | ||
2,023 | 14 | ||
Thereafter | 17 | ||
Net Carrying Amount | $ 246 |
Premises, Equipment & Lease C_3
Premises, Equipment & Lease Commitments Premises, Equipment & Lease Commitments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment and Lease Commitments [Abstract] | |||
Depreciation and amortization expense | $ 728 | $ 662 | $ 710 |
Total rent expenses from continuing operations | 322 | $ 307 | $ 330 |
Minimum sublease rental income due in future years | $ 183 |
Premises, Equipment & Lease C_4
Premises, Equipment & Lease Commitments Premises, Equipment & Lease Commitments - Components of Premises and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | $ 8,727 | $ 8,264 |
Less: Accumulated depreciation and amortization | (4,536) | (4,231) |
Total premises and equipment, net | 4,191 | 4,033 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | 386 | 406 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | 3,994 | 3,302 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | 2,018 | 1,901 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | 1,847 | 1,753 |
In progress | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | $ 482 | $ 902 |
Premises, Equipment & Lease C_5
Premises, Equipment & Lease Commitments Premises, Equipment & Lease Commitments - Future Minimum Rental Commitments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,019 | $ 352 |
2,020 | 309 |
2,021 | 279 |
2,022 | 249 |
2,023 | 213 |
Thereafter | 949 |
Total | $ 2,351 |
Deposits and Borrowings - Depos
Deposits and Borrowings - Deposits and Short-term Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits: | |||
Non-interest-bearing deposits | $ 23,483 | $ 26,404 | |
Interest-bearing deposits | 226,281 | 217,298 | |
Total deposits | 249,764 | 243,702 | $ 236,768 |
Short-term borrowings | |||
Short-term borrowings | 9,402 | 576 | |
Time Deposits, at or Above FDIC Insurance Limit | 4,000 | 1,300 | |
Federal funds purchased and securities loaned or sold under agreements to repurchase | |||
Short-term borrowings | |||
Short-term borrowings | 352 | 576 | |
Federal Home Loan Bank Advances | |||
Short-term borrowings | |||
Short-term borrowings | $ 9,050 | $ 0 |
Deposits and Borrowings - Long-
Deposits and Borrowings - Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations | $ 49,503 | $ 59,705 |
Debt and Capital Lease Obligations | 58,905 | 60,281 |
Time Deposits, at or Above FDIC Insurance Limit | $ 4,000 | 1,300 |
Securitized debt obligations | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.31% | |
Long-term debt | $ 18,307 | 20,010 |
Total senior and subordinated notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 30,826 | 30,755 |
Senior notes | Total unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.08% | |
Long-term debt | $ 26,283 | 26,222 |
Senior notes | Fixed unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.03% | |
Long-term debt | $ 23,290 | 22,776 |
Senior notes | Floating unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.39% | |
Long-term debt | $ 2,993 | 3,446 |
Subordinated notes | Fixed unsecured subordinated debt | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.09% | |
Long-term debt | $ 4,543 | 4,533 |
FHLB advances | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.49% | |
Long-term debt | $ 251 | 8,609 |
Capital Lease Obligation and GPMH | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 6.16% | |
Long-term debt | $ 119 | 331 |
FHLB Advance Capital Lease Obligation and GPMH | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 370 | $ 8,940 |
Minimum | Securitized debt obligations | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.33% | |
Minimum | Senior notes | Fixed unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.85% | |
Minimum | Senior notes | Floating unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.97% | |
Minimum | Subordinated notes | Fixed unsecured subordinated debt | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.38% | |
Minimum | FHLB advances | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.48% | |
Minimum | Capital Lease Obligation and GPMH | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |
Maximum | Securitized debt obligations | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.31% | |
Maximum | Senior notes | Fixed unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |
Maximum | Senior notes | Floating unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.72% | |
Maximum | Subordinated notes | Fixed unsecured subordinated debt | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.80% | |
Maximum | FHLB advances | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.36% | |
Maximum | Capital Lease Obligation and GPMH | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 13.63% |
Deposits and Borrowings Deposit
Deposits and Borrowings Deposits and Borrowings - Schedule of Maturity Profile of Borrowing and Debt (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Time Deposits, Fiscal Year Maturity: | ||
2,019 | $ 22,548 | |
2,020 | 6,524 | |
2,021 | 4,065 | |
2,022 | 4,036 | |
2,023 | 1,176 | |
Thereafter | 122 | |
Total | 38,471 | |
Debt Fiscal Year Maturity: | ||
Short-term borrowings | 9,402 | $ 576 |
Total, Fiscal Year Maturity: | ||
2,019 | 44,119 | |
2,020 | 16,450 | |
2,021 | 11,289 | |
2,022 | 9,077 | |
2,023 | 6,058 | |
Thereafter | 10,383 | |
Total | 97,376 | |
Securitized debt obligations | ||
Debt Fiscal Year Maturity: | ||
2,019 | 6,845 | |
2,020 | 5,266 | |
2,021 | 2,298 | |
2,022 | 2,531 | |
2,023 | 714 | |
Thereafter | 653 | |
Long-term Debt | 18,307 | 20,010 |
Senior and subordinated notes | ||
Debt Fiscal Year Maturity: | ||
2,019 | 5,314 | |
2,020 | 4,350 | |
2,021 | 4,920 | |
2,022 | 2,504 | |
2,023 | 4,163 | |
Thereafter | 9,575 | |
Long-term Debt | 30,826 | 30,755 |
Other borrowings | ||
Debt Fiscal Year Maturity: | ||
2,019 | 9,060 | |
2,020 | 310 | |
2,021 | 6 | |
2,022 | 6 | |
2,023 | 5 | |
Thereafter | 33 | |
Long-term Debt | 9,420 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Member] | ||
Debt Fiscal Year Maturity: | ||
Short-term debt, maturities, next 12 months | 352 | |
Short-term borrowings | $ 352 | $ 576 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Notional and Fair Values of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | $ 212,505 | $ 196,612 |
Derivative Assets, Gross Amount | 1,539 | 1,040 |
Derivative Liabilities, Gross Amount | 1,201 | 1,268 |
Derivative Asset, Netting Adjustments | (1,079) | (275) |
Derivative Liability, Netting Adjustments | (287) | (662) |
Derivative Assets | 460 | 765 |
Derivative Liability | 914 | 606 |
Cumulative counterparty credit risk valuation adjustment | 3 | 2 |
Cumulative credit risk valuation adjustment related to our credit quality | 1 | 1 |
Decrease/(Increase) In Derivative Assets Due To LCH Rulebook Change | 431 | |
Decrease In Derivative Liabilities Due To LCH Rulebook Change | 397 | |
Derivatives designated as accounting hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 142,965 | 143,026 |
Derivative Assets, Gross Amount | 509 | 152 |
Derivative Liabilities, Gross Amount | 100 | 528 |
Derivatives designated as accounting hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 134,613 | 133,904 |
Derivative Assets, Gross Amount | 147 | 132 |
Derivative Liabilities, Gross Amount | 98 | 289 |
Derivatives designated as accounting hedges | Interest rate contracts | Fair value hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 53,413 | 56,604 |
Derivative Assets, Gross Amount | 64 | 102 |
Derivative Liabilities, Gross Amount | 28 | 164 |
Derivatives designated as accounting hedges | Interest rate contracts | Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 81,200 | 77,300 |
Derivative Assets, Gross Amount | 83 | 30 |
Derivative Liabilities, Gross Amount | 70 | 125 |
Derivatives designated as accounting hedges | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 8,352 | 9,122 |
Derivative Assets, Gross Amount | 362 | 20 |
Derivative Liabilities, Gross Amount | 2 | 239 |
Derivatives designated as accounting hedges | Foreign exchange contracts | Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 5,745 | 6,086 |
Derivative Assets, Gross Amount | 184 | 19 |
Derivative Liabilities, Gross Amount | 2 | 75 |
Derivatives designated as accounting hedges | Foreign exchange contracts | Net investment hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 2,607 | 3,036 |
Derivative Assets, Gross Amount | 178 | 1 |
Derivative Liabilities, Gross Amount | 0 | 164 |
Derivatives not designated as accounting hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 69,540 | 53,586 |
Derivative Assets, Gross Amount | 1,030 | 888 |
Derivative Liabilities, Gross Amount | 1,101 | 740 |
Derivatives not designated as accounting hedges | Customer accommodation | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 61,477 | 48,520 |
Derivative Assets, Gross Amount | 999 | 848 |
Derivative Liabilities, Gross Amount | 1,053 | 727 |
Derivatives not designated as accounting hedges | Interest rate contracts | Customer accommodation | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 49,386 | 39,429 |
Derivative Assets, Gross Amount | 190 | 316 |
Derivative Liabilities, Gross Amount | 256 | 221 |
Derivatives not designated as accounting hedges | Interest rate contracts | Other interest rate exposures | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 6,427 | 3,857 |
Derivative Assets, Gross Amount | 29 | 40 |
Derivative Liabilities, Gross Amount | 36 | 8 |
Derivatives not designated as accounting hedges | Foreign exchange contracts | Customer accommodation | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 1,418 | 980 |
Derivative Assets, Gross Amount | 12 | 14 |
Derivative Liabilities, Gross Amount | 11 | 10 |
Derivatives not designated as accounting hedges | Commodity contracts | Customer accommodation | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 10,673 | 8,111 |
Derivative Assets, Gross Amount | 797 | 518 |
Derivative Liabilities, Gross Amount | 786 | 496 |
Derivatives not designated as accounting hedges | Other contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 1,636 | 1,209 |
Derivative Assets, Gross Amount | 2 | 0 |
Derivative Liabilities, Gross Amount | $ 12 | $ 5 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities - Hedged Items in Fair Value Hedging Relationship (Details) $ in Millions | Dec. 31, 2018USD ($) |
Hedged Items In Fair Value Hedging Relationship [Line Items] | |
Amortized cost of closed prepayment assets | $ 8,300 |
Amortized Cost Of Closed Prepayable Assets Designated In Fair Value Hedges | 4,000 |
Hedged LOLA assets Cumulative Basis Adjustment | 26 |
Available-for-sale Securities | |
Hedged Items In Fair Value Hedging Relationship [Line Items] | |
Carrying Amount of Assets | 14,067 |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | (6) |
Hedged Asset, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | (2) |
Interest-bearing deposits | |
Hedged Items In Fair Value Hedging Relationship [Line Items] | |
Carrying Amount Of Liabilities | (13,101) |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 247 |
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 0 |
Securitized debt obligations | |
Hedged Items In Fair Value Hedging Relationship [Line Items] | |
Carrying Amount Of Liabilities | (5,887) |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 168 |
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 143 |
Senior and subordinated notes | |
Hedged Items In Fair Value Hedging Relationship [Line Items] | |
Carrying Amount Of Liabilities | (23,572) |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 315 |
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | $ 392 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Offsetting Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative assets | ||
Derivative Assets, Gross Amount | $ 1,539 | $ 1,040 |
Derivative Asset, Offsetting Financial Instruments | (205) | (202) |
Derivative Assets, Offsetting Cash Collateral | (874) | (73) |
Derivative Assets | 460 | 765 |
Derivative Asset, Securities Not Netted | 0 | 0 |
Net Exposure | 460 | 765 |
Derivative, Collateral, Obligation to Return Cash | 925 | 91 |
Derivative, Collateral, Obligation to Return Securities | 1 | 1 |
Derivative, Collateral, Right to Reclaim Cash | 633 | $ 966 |
Decrease/(Increase) In Derivative Assets Due To LCH Rulebook Change | 431 | |
Decrease In Derivative Liabilities Due To LCH Rulebook Change | $ 397 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Offsetting Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative liabilities | ||
Derivative Liabilities, Gross Amount | $ 1,201 | $ 1,268 |
Derivative Liability, Offsetting Financial Instruments | (205) | (202) |
Derivative Liability, Offsetting Cash Collateral | (82) | (460) |
Derivative Liability | 914 | 606 |
Derivative Liability, Securities Collateral Not Netted | 0 | 0 |
Net Exposure | 914 | 606 |
Repurchase agreements | ||
Gross Amounts | 352 | 576 |
Securities Sold under Agreements to Repurchase, Asset | 0 | 0 |
Repurchase Agreement, Collateral, Right To Reclaim Cash, Offset | 0 | 0 |
Net Amounts as Recognized | 352 | 576 |
Offsetting Amounts Not Netted, Collateral Pledged | (352) | (576) |
Net Exposure | 0 | 0 |
Derivative, Collateral, Obligation to Return Cash | 925 | 91 |
Derivative, Collateral, Obligation to Return Securities | 1 | 1 |
Derivative, Collateral, Right to Reclaim Cash | 633 | $ 966 |
Decrease/(Increase) In Derivative Assets Due To LCH Rulebook Change | 431 | |
Decrease In Derivative Liabilities Due To LCH Rulebook Change | 397 | |
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | $ 359 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Net Gains (Losses) Recognized in Earnings Related to Derivatives in Fair Value Hedging and Cash Flow Hedging (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest and Dividend Income, Securities, Operating | $ 2,211 | $ 1,711 | $ 1,599 |
Interest and Fee Income, Loans and Leases | 24,728 | 23,388 | 21,203 |
Other Interest and Dividend Income | 237 | 123 | 89 |
Interest Expense, Deposits | (2,598) | (1,602) | (1,213) |
Interest Expense, Secured Debt | (496) | (327) | (216) |
Interest Expense, Unsecured Debt | (1,125) | (731) | (476) |
Other | 1,002 | $ 542 | $ 541 |
Amortization of basis adjustment | 75 | ||
Foreign Currency Transaction Loss, before Tax | 193 | ||
Non Interest Income Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gains on foreign exchange contracts reclassified from AOCI | 191 | ||
Fair value hedges | Interest income - Investment securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | (22) | ||
Fair value hedges | Interest income - Loans | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 0 | ||
Fair value hedges | Interest income - Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 0 | ||
Fair value hedges | Interest expense - Deposits | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | (84) | ||
Fair value hedges | Interest expense - Securitized Debt Obligation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | (76) | ||
Fair value hedges | Interest expense - Senior and Subordinated Debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | (79) | ||
Fair value hedges | Non Interest Income Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 0 | ||
Fair value hedges | Interest rate contracts | Interest income - Investment securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or loss on fair value hedges recognized in net interest income | (23) | ||
Gains (losses) recognized in earnings on derivatives | 34 | ||
Gains (losses) recognized in earnings on hedged items | (33) | ||
Fair value hedges | Interest rate contracts | Interest income - Loans | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or loss on fair value hedges recognized in net interest income | 0 | ||
Gains (losses) recognized in earnings on derivatives | 0 | ||
Gains (losses) recognized in earnings on hedged items | 0 | ||
Fair value hedges | Interest rate contracts | Interest income - Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or loss on fair value hedges recognized in net interest income | 0 | ||
Gains (losses) recognized in earnings on derivatives | 0 | ||
Gains (losses) recognized in earnings on hedged items | 0 | ||
Fair value hedges | Interest rate contracts | Interest expense - Deposits | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or loss on fair value hedges recognized in net interest income | (76) | ||
Gains (losses) recognized in earnings on derivatives | (60) | ||
Gains (losses) recognized in earnings on hedged items | 52 | ||
Fair value hedges | Interest rate contracts | Interest expense - Securitized Debt Obligation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or loss on fair value hedges recognized in net interest income | (53) | ||
Gains (losses) recognized in earnings on derivatives | (61) | ||
Gains (losses) recognized in earnings on hedged items | 38 | ||
Fair value hedges | Interest rate contracts | Interest expense - Senior and Subordinated Debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or loss on fair value hedges recognized in net interest income | 2 | ||
Gains (losses) recognized in earnings on derivatives | (212) | ||
Gains (losses) recognized in earnings on hedged items | 131 | ||
Fair value hedges | Interest rate contracts | Non Interest Income Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain or loss on fair value hedges recognized in net interest income | 0 | ||
Gains (losses) recognized in earnings on derivatives | 0 | ||
Gains (losses) recognized in earnings on hedged items | 0 | ||
Cash flow hedges | Interest income - Investment securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) On Cash Flow Hedges Recognized In Earnings | (9) | ||
Cash flow hedges | Interest income - Loans | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) On Cash Flow Hedges Recognized In Earnings | (82) | ||
Cash flow hedges | Interest income - Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) On Cash Flow Hedges Recognized In Earnings | 47 | ||
Cash flow hedges | Interest expense - Deposits | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) On Cash Flow Hedges Recognized In Earnings | 0 | ||
Cash flow hedges | Interest expense - Securitized Debt Obligation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) On Cash Flow Hedges Recognized In Earnings | 0 | ||
Cash flow hedges | Interest expense - Senior and Subordinated Debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) On Cash Flow Hedges Recognized In Earnings | 0 | ||
Cash flow hedges | Non Interest Income Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) On Cash Flow Hedges Recognized In Earnings | (2) | ||
Cash flow hedges | Interest rate contracts | Interest income - Investment securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (9) | ||
Cash flow hedges | Interest rate contracts | Interest income - Loans | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (82) | ||
Cash flow hedges | Interest rate contracts | Interest income - Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | ||
Cash flow hedges | Interest rate contracts | Interest expense - Deposits | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | ||
Cash flow hedges | Interest rate contracts | Interest expense - Securitized Debt Obligation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | ||
Cash flow hedges | Interest rate contracts | Interest expense - Senior and Subordinated Debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | ||
Cash flow hedges | Interest rate contracts | Non Interest Income Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | ||
Cash flow hedges | Foreign exchange contracts | Interest income - Investment securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | ||
Cash flow hedges | Foreign exchange contracts | Interest income - Loans | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | ||
Cash flow hedges | Foreign exchange contracts | Interest income - Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 47 | ||
Cash flow hedges | Foreign exchange contracts | Interest expense - Deposits | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | ||
Cash flow hedges | Foreign exchange contracts | Interest expense - Securitized Debt Obligation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | ||
Cash flow hedges | Foreign exchange contracts | Interest expense - Senior and Subordinated Debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | ||
Cash flow hedges | Foreign exchange contracts | Non Interest Income Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ (2) |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Net Gains (Losses) Related to Derivatives Designated as Cash Flow Hedges and Fair Value Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Non-Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | $ 60 | $ 99 | $ 95 |
Interest rate contracts | Other Non-Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | 48 | 38 | 37 |
Interest rate contracts | Customer accommodation | Other Non-Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | 25 | 20 | 24 |
Interest rate contracts | Other interest rate exposures | Other Non-Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | 33 | 61 | 67 |
Foreign exchange contracts | Customer accommodation | Other Non-Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | $ 7 | 5 | 3 |
Derivatives designated as accounting hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivative gains (losses) recognized in net income | 110 | 191 | |
Derivatives designated as accounting hedges | Fair value hedges | Interest rate contracts | Other Non-Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (212) | (613) | |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 216 | 603 | |
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net | 4 | (10) | |
Derivatives designated as accounting hedges | Cash flow hedges | Other Non-Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 108 | 195 | |
Derivatives designated as accounting hedges | Cash flow hedges | Interest rate contracts | Other Non-Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | 2 | (4) | |
Derivatives designated as accounting hedges | Cash flow hedges | Interest rate contracts | Customer accommodation | Other Non-Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 91 | 192 | |
Derivatives designated as accounting hedges | Cash flow hedges | Foreign exchange contracts | Other interest rate exposures | Other Non-Interest Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | $ 17 | $ 3 |
Derivative Instruments and He_9
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Loss (net after-tax) recorded in AOCI related to derivatives designated as cash flow hedges expected to be reclassified to earnings over the next 12 months | $ 167 |
Maximum length of time over which forecasted transactions were hedged, years | 5 years |
Derivative Instruments and H_10
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities - Freestanding Derivative (Details) - Other Non-Interest Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | $ 60 | $ 99 | $ 95 |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | 48 | 38 | 37 |
Interest rate contracts | Customer accommodation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | 25 | 20 | 24 |
Interest rate contracts | Other interest rate exposures | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | 33 | 61 | 67 |
Commodity contracts | Customer accommodation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | 16 | 13 | 10 |
Foreign exchange contracts | Customer accommodation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | 7 | 5 | 3 |
Other contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | $ (21) | $ 0 | $ (9) |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Preferred Stock (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | |
Class of Stock [Line Items] | ||
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 4,360 | $ 4,360 |
Depository Share, Percent Interest in Preferred Stock | 0.025 | |
Series B Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, Dividend Rate, Percentage | 6.00% | |
Redemption Price per Depositary Share (in dollars per share) | $ / shares | $ 1,000 | |
Number of Depositary Shares (in shares) | shares | 875,000 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 853 | 853 |
Series C Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, Dividend Rate, Percentage | 6.25% | |
Redemption Price per Depositary Share (in dollars per share) | $ / shares | $ 1,000 | |
Number of Depositary Shares (in shares) | shares | 500,000 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 484 | 484 |
Series D Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, Dividend Rate, Percentage | 6.70% | |
Redemption Price per Depositary Share (in dollars per share) | $ / shares | $ 1,000 | |
Number of Depositary Shares (in shares) | shares | 500,000 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 485 | 485 |
Series E Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, Dividend Rate, Percentage | 5.55% | |
Redemption Price per Depositary Share (in dollars per share) | $ / shares | $ 1,000 | |
Number of Depositary Shares (in shares) | shares | 1,000,000 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 988 | 988 |
Preferred Stock, Dividend Payment Rate, Variable | Libor + 380 bps | |
Preferred Stock Dividend Rate, Variable | 3.80% | |
Series F Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, Dividend Rate, Percentage | 6.20% | |
Redemption Price per Depositary Share (in dollars per share) | $ / shares | $ 1,000 | |
Number of Depositary Shares (in shares) | shares | 500,000 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 484 | 484 |
Series G Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, Dividend Rate, Percentage | 5.20% | |
Redemption Price per Depositary Share (in dollars per share) | $ / shares | $ 1,000 | |
Number of Depositary Shares (in shares) | shares | 600,000 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 583 | 583 |
Series H Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Dividend Rate, Percentage | 6.00% | |
Redemption Price per Depositary Share (in dollars per share) | $ / shares | $ 1,000 | |
Number of Depositary Shares (in shares) | shares | 500,000 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 483 | $ 483 |
Stockholders' Equity - Change i
Stockholders' Equity - Change in AOCI Gain (Loss) by Component (Net of Tax) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 0 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | (926) | $ (949) | $ (616) | |
Other comprehensive income (loss) before reclassifications | (302) | 81 | (247) | |
Net realized (gains) losses reclassified from AOCI into earnings | 84 | (58) | (86) | |
Other comprehensive income (loss), net of tax | (136) | 23 | (333) | |
AOCI ending balance | (1,263) | (926) | (949) | |
Securities held to maturity | 36,771 | 28,984 | ||
Accumulated Net Unrealized Investment Gain (Loss) | Available-for-sale Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 3 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | 17 | (4) | 162 | |
Other comprehensive income (loss) before reclassifications | (293) | 62 | (172) | |
Net realized (gains) losses reclassified from AOCI into earnings | 159 | (41) | 6 | |
Other comprehensive income (loss), net of tax | (459) | 21 | (166) | |
AOCI ending balance | (439) | 17 | (4) | |
Accumulated Net Unrealized Investment Gain (Loss) | Securities Held to Maturity | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (113) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | (524) | (621) | (725) | |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | |
Net realized (gains) losses reclassified from AOCI into earnings | 40 | 97 | 104 | |
Other comprehensive income (loss), net of tax | 447 | 97 | 104 | |
AOCI ending balance | (190) | (524) | (621) | |
Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Transfers from Held-to-maturity to Available-for-Sale Securities, before Tax | 0 | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (63) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | (281) | (78) | 120 | |
Other comprehensive income (loss) before reclassifications | 38 | (95) | (3) | |
Net realized (gains) losses reclassified from AOCI into earnings | (112) | (108) | (195) | |
Other comprehensive income (loss), net of tax | (74) | (203) | (198) | |
AOCI ending balance | (418) | (281) | (78) | |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Transfers from Held-to-maturity to Available-for-Sale Securities, before Tax | 0 | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | (138) | (222) | (143) | |
Other comprehensive income (loss) before reclassifications | (39) | 84 | (79) | |
Net realized (gains) losses reclassified from AOCI into earnings | 0 | 0 | 0 | |
Other comprehensive income (loss), net of tax | (39) | 84 | (79) | |
AOCI ending balance | (177) | (138) | (222) | |
Other | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Transfers from Held-to-maturity to Available-for-Sale Securities, before Tax | 0 | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (28) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | 0 | (24) | (30) | |
Other comprehensive income (loss) before reclassifications | (8) | 30 | 7 | |
Net realized (gains) losses reclassified from AOCI into earnings | (3) | (6) | (1) | |
Other comprehensive income (loss), net of tax | (11) | 24 | 6 | |
AOCI ending balance | (39) | 0 | (24) | |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (201) | |||
Accounting Standards Update 2017-12 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Securities held to maturity | 9,000 | $ 9,000 | ||
Accumulated Other Comprehensive Income (loss), before tax | $ 107 | |||
Accounting Standards Update 2017-12 | Accumulated Net Unrealized Investment Gain (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI ending balance | 82 | |||
Accumulated Other Comprehensive Income (loss), before tax | 107 | |||
Accounting Standards Update 2017-12 | Accumulated Net Unrealized Investment Gain (Loss) | Available-for-sale Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI ending balance | (325) | |||
Accounting Standards Update 2017-12 | Accumulated Net Unrealized Investment Gain (Loss) | Securities Held to Maturity | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI ending balance | 407 | |||
Net investment hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Gains (losses) recorded in AOCI | $ 150 | $ 143 | $ 280 |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassifications from AOCI (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest income | $ 22,875 | $ 22,460 | $ 20,873 |
Non-interest income | 1,002 | 542 | 541 |
Income from continuing operations before income taxes | 7,318 | 5,492 | 5,484 |
Income tax provision (benefit) | 1,293 | 3,375 | 1,714 |
Net income | 6,015 | 1,982 | 3,751 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income | (84) | 58 | 86 |
Accumulated Net Unrealized Investment Gain (Loss) | Reclassification out of Accumulated Other Comprehensive Income [Member] | Available-for-sale Securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Non-interest income | (209) | 65 | (10) |
Income tax provision (benefit) | (50) | 24 | (4) |
Net income | (159) | 41 | (6) |
Accumulated Net Unrealized Investment Gain (Loss) | Reclassification out of Accumulated Other Comprehensive Income [Member] | Securities Held to Maturity | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest income | (53) | (150) | (164) |
Income tax provision (benefit) | (13) | (53) | (60) |
Net income | (40) | (97) | (104) |
Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income from continuing operations before income taxes | 147 | 173 | 310 |
Income tax provision (benefit) | 35 | 65 | 115 |
Net income | 112 | 108 | 195 |
Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest rate contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest income | (91) | 145 | 306 |
Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign exchange contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest income | 47 | 27 | 6 |
Non-interest income | 191 | 1 | (2) |
Other | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income from continuing operations before income taxes | 4 | 9 | 2 |
Income tax provision (benefit) | 1 | 3 | 1 |
Net income | $ 3 | $ 6 | $ 1 |
Stockholders' Equity - Componen
Stockholders' Equity - Components of Other Comprehensive Income Loss and Related Tax Impact (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Before Tax | |||
Net unrealized gains (losses) on securities available for sale | $ (605) | $ 23 | $ (254) |
Net changes in securities held to maturity | 588 | 150 | 164 |
Net unrealized gains (losses) on cash flow hedges | (98) | (325) | (315) |
Foreign currency translation adjustments | 9 | 3 | 86 |
Other | (15) | 38 | 10 |
Other comprehensive income before taxes | (121) | (111) | (309) |
Provision (Benefit) | |||
Net unrealized gains (losses) on securities available for sale | (146) | 2 | (88) |
Net changes in securities held to maturity | 141 | 53 | 60 |
Net unrealized losses on cash flow hedges | (24) | (122) | (117) |
Foreign currency translation adjustments | 48 | (81) | 165 |
Other | (4) | 14 | 4 |
Other comprehensive income (loss), provision (benefit) | 15 | (134) | 24 |
After Tax | |||
Net unrealized gains (losses) on securities available for sale | (459) | 21 | (166) |
Net changes in securities held to maturity | 447 | 97 | 104 |
Net unrealized losses on cash flow hedges | (74) | (203) | (198) |
Foreign currency translation adjustments | (39) | 84 | (79) |
Other | (11) | 24 | 6 |
Other comprehensive income (loss), net of tax | $ (136) | $ 23 | $ (333) |
Regulatory and Capital Adequa_3
Regulatory and Capital Adequacy - Schedule of Comparison of Capital Ratios (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Common equity Tier 1 capital: | ||
Common equity Tier 1 capital | $ 33,071 | $ 30,036 |
Common equity Tier 1 capital, capital ratio | 11.20% | 10.30% |
Common equity Tier 1 capital, minimum capital adequacy | 4.50% | 4.50% |
Tier 1 risk-based capital: | ||
Tier 1 capital | $ 37,431 | $ 34,396 |
Tier 1 capital, capital ratio | 12.70% | 11.80% |
Tier 1 capital, minimum capital adequacy | 6.00% | 6.00% |
Tier 1 capital, well-capitalized | 6.00% | 6.00% |
Total risk-based capital: | ||
Total capital | $ 44,645 | $ 41,962 |
Total capital, capital ratio | 15.10% | 14.40% |
Total capital, minimum capital adequacy | 8.00% | 8.00% |
Total capital, well-capitalized | 10.00% | 10.00% |
Tier 1 leverage capital: | ||
Tier 1 leverage capital | $ 37,431 | $ 34,396 |
Tier 1 leverage, capital ratio | 10.70% | 9.90% |
Tier 1 leverage, minimum capital adequacy | 4.00% | 4.00% |
Supplementary leverage: | ||
Tier one capital under BaselIII standardized approach | $ 37,431 | $ 34,396 |
Basel III Supplementary Leverage Ratio | 9.00% | 8.40% |
Minimum Capital Adequacy for Supplementary Leverage Ratio | 3.00% | |
Basel III Transition Provisions, Inclusion of AOCI and Intangible Asset Adjustments | 100.00% | 80.00% |
Capital One Bank (USA), N.A. | ||
Common equity Tier 1 capital: | ||
Common equity Tier 1 capital | $ 16,378 | $ 14,791 |
Common equity Tier 1 capital, capital ratio | 15.30% | 14.30% |
Common equity Tier 1 capital, minimum capital adequacy | 4.50% | 4.50% |
Common equity Tie 1 capital, well capitalized | 6.50% | 6.50% |
Tier 1 risk-based capital: | ||
Tier 1 capital | $ 16,378 | $ 14,791 |
Tier 1 capital, capital ratio | 15.30% | 14.30% |
Tier 1 capital, minimum capital adequacy | 6.00% | 6.00% |
Tier 1 capital, well-capitalized | 8.00% | 8.00% |
Total risk-based capital: | ||
Total capital | $ 18,788 | $ 17,521 |
Total capital, capital ratio | 17.60% | 16.90% |
Total capital, minimum capital adequacy | 8.00% | 8.00% |
Total capital, well-capitalized | 10.00% | 10.00% |
Tier 1 leverage capital: | ||
Tier 1 leverage capital | $ 16,378 | $ 14,791 |
Tier 1 leverage, capital ratio | 14.00% | 12.70% |
Tier 1 leverage, minimum capital adequacy | 4.00% | 4.00% |
Tier 1 leverage, well-capitalized | 5.00% | 5.00% |
Supplementary leverage: | ||
Tier one capital under BaselIII standardized approach | $ 16,378 | $ 14,791 |
Basel III Supplementary Leverage Ratio | 11.50% | 10.40% |
Minimum Capital Adequacy for Supplementary Leverage Ratio | 3.00% | |
Capital One, N.A. | ||
Common equity Tier 1 capital: | ||
Common equity Tier 1 capital | $ 25,637 | $ 23,771 |
Common equity Tier 1 capital, capital ratio | 13.00% | 12.20% |
Common equity Tier 1 capital, minimum capital adequacy | 4.50% | 4.50% |
Common equity Tie 1 capital, well capitalized | 6.50% | 6.50% |
Tier 1 risk-based capital: | ||
Tier 1 capital | $ 25,637 | $ 23,771 |
Tier 1 capital, capital ratio | 13.00% | 12.20% |
Tier 1 capital, minimum capital adequacy | 6.00% | 6.00% |
Tier 1 capital, well-capitalized | 8.00% | 8.00% |
Total risk-based capital: | ||
Total capital | $ 27,912 | $ 26,214 |
Total capital, capital ratio | 14.20% | 13.40% |
Total capital, minimum capital adequacy | 8.00% | 8.00% |
Total capital, well-capitalized | 10.00% | 10.00% |
Tier 1 leverage capital: | ||
Tier 1 leverage capital | $ 25,637 | $ 23,771 |
Tier 1 leverage, capital ratio | 9.10% | 8.60% |
Tier 1 leverage, minimum capital adequacy | 4.00% | 4.00% |
Tier 1 leverage, well-capitalized | 5.00% | 5.00% |
Supplementary leverage: | ||
Tier one capital under BaselIII standardized approach | $ 25,637 | $ 23,771 |
Basel III Supplementary Leverage Ratio | 8.00% | 7.70% |
Minimum Capital Adequacy for Supplementary Leverage Ratio | 3.00% |
Regulatory and Capital Adequa_4
Regulatory and Capital Adequacy - Additional Information (Details) - USD ($) $ in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Cash Reserves, Federal Reserve Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Cash Reserve Deposit Required and Made | $ 1.9 | $ 2.2 |
Capital One Bank (USA), N.A. | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | 3.2 | |
Capital One, N.A. | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | $ 2.2 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Income from continuing operations, net of tax | $ 6,025 | $ 2,117 | $ 3,770 |
Loss from discontinued operations, net of tax | (10) | (135) | (19) |
Net income | 6,015 | 1,982 | 3,751 |
Dividends and undistributed earnings allocated to participating securities | (40) | (13) | (24) |
Preferred stock dividends | (265) | (265) | (214) |
Net income available to common stockholders | $ 5,710 | $ 1,704 | $ 3,513 |
Total weighted-average basic shares outstanding | 479.9 | 484.2 | 504.9 |
Effect of dilutive securities: | |||
Stock options | 1.6 | 2.5 | 2 |
Other contingently issuable shares | 1.1 | 1.2 | 1.3 |
Warrants | 0.5 | 0.7 | 1.6 |
Total effect of dilutive securities | 3.2 | 4.4 | 4.9 |
Total weighted-average diluted shares outstanding | 483.1 | 488.6 | 509.8 |
Basic earnings per common share: | |||
Net income from continuing operations (in dollars per share) | $ 11.92 | $ 3.80 | $ 7 |
Income (loss) from discontinued operations (in dollars per share) | (0.02) | (0.28) | (0.04) |
Net income per basic common share (in dollars per share) | 11.90 | 3.52 | 6.96 |
Diluted earnings per common share: | |||
Net income from continuing operations (in dollars per share) | 11.84 | 3.76 | 6.93 |
Income (loss) from discontinued operations (in dollars per share) | (0.02) | (0.27) | (0.04) |
Net income per diluted common share (in dollars per share) | $ 11.82 | $ 3.49 | $ 6.89 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Warrant | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Class of Warrant or Right, Outstanding | 1,300 | 4,100 | |
Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive options excluded from the computation of diluted earnings per share (in shares) | 56 | 233 | 1,700 |
Minimum exercise price range | $ 86.34 | $ 82.08 | $ 63.73 |
Maximum exercise price range | $ 86.34 | $ 86.34 | $ 88.81 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Summary of Stock Options Activity (Details) - Amended and Restated 2004 Stock Incentive Plan $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Shares Subject to Options (in shares) | |
Outstanding as of beginning of the period | shares | 4,766 |
Granted | shares | 0 |
Exercised | shares | (1,310) |
Forfeited | shares | 0 |
Expired | shares | 0 |
Outstanding as of end of the period | shares | 3,456 |
Exercisable as of end of the period | shares | 3,043 |
Weighted- Average Exercise Price (in dollars per share) | |
Outstanding as of beginning of the period | $ / shares | $ 48.50 |
Granted | $ / shares | 0 |
Exercised | $ / shares | 28.65 |
Forfeited | $ / shares | 0 |
Expired | $ / shares | 0 |
Outstanding as of end of the period | $ / shares | 56.03 |
Exercisable as of end of the period | $ / shares | $ 53.36 |
Weighted-Average Remaining Contractual Term, Outstanding at end of period, years | 3 years 10 months 17 days |
Weighted-Average Remaining contractual Term Exercisable, at end of period years | 3 years 4 months 13 days |
Aggregate Intrinsic Value, Outstanding, at end of period | $ | $ 71 |
Aggregate Intrinsic Value, Exercisable, at end of period | $ | $ 68 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Stock Options Cash Flow Impact (Details) - Amended and Restated 2004 Stock Incentive Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received for options exercised | $ 38 | $ 122 | $ 135 |
Tax benefit | $ 22 | $ 34 | $ 12 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Weighted Average Assumptions used to Value Stock Options Granted (Details) - Amended and Restated 2004 Stock Incentive Plan | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Dividend yield (percent) | 1.85% | 2.07% |
Volatility (percent) | 27.00% | 30.00% |
Risk-free interest rate (percent) | 2.30% | 1.64% |
Expected option lives (in years) | 6 years 7 months 6 days | 6 years 7 months 6 days |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans - Summary of Activity for Restricted Stock Awards and Restricted Stock Units (Details) - Amended and Restated 2004 Stock Incentive Plan - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Stock | |||
Shares/Units | |||
Unvested as of beginning of the period | 16 | ||
Granted | 0 | ||
Vested | (16) | ||
Forfeited | 0 | ||
Unvested as of end of period | 0 | 16 | |
Weighted Average Grant Date Fair Value per Share (in dollars per share) | |||
Unvested as of beginning of the period | $ 56.39 | ||
Vested | 56.39 | ||
Forfeited | 0 | ||
Unvested as of end of the period | $ 0 | $ 56.39 | |
Restricted Stock Units (RSUs) | |||
Shares/Units | |||
Unvested as of beginning of the period | 3,379 | ||
Granted | 1,547 | ||
Vested | (1,426) | ||
Forfeited | (155) | ||
Unvested as of end of period | 3,345 | 3,379 | |
Weighted Average Grant Date Fair Value per Share (in dollars per share) | |||
Unvested as of beginning of the period | $ 74.06 | ||
Granted | 100.73 | $ 86.20 | $ 65.19 |
Vested | 75.62 | ||
Forfeited | 88.16 | ||
Unvested as of end of the period | $ 85.01 | $ 74.06 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Summary of Activity for Performance Share and Performance Units (Details) - Performance Share Units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted Average Grant Date Fair Value per Share (in dollars per share) | |||
Granted | $ 100.65 | $ 82.48 | $ 62.89 |
Amended and Restated 2004 Stock Incentive Plan | |||
Shares/Units | |||
Unvested as of beginning of the period | 1,918 | ||
Granted | 878 | ||
Vested | (932) | ||
Forfeited | (60) | ||
Unvested as of end of period | 1,804 | 1,918 | |
Weighted Average Grant Date Fair Value per Share (in dollars per share) | |||
Unvested as of beginning of the period | $ 75.38 | ||
Granted | 100.65 | ||
Vested | 74.80 | ||
Forfeited | 90.35 | ||
Unvested as of end of the period | $ 87.48 | $ 75.38 |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans - Additional Information (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)plan$ / sharesshares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of active stock plans | plan | 1 | ||
Shares authorized under plans (in shares) | shares | 55 | ||
Shares available for grant under plans (in shares) | shares | 13 | ||
Compensation expense from award | $ 170 | $ 244 | $ 239 |
Recognized tax benefit from stock-based compensation arrangements | $ 34 | $ 92 | $ 89 |
Percentage of company's match on Associate Stock Purchase Plan contributions by employees (percent) | 15.00% | ||
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 100.65 | $ 82.48 | $ 62.89 |
Amended and Restated 2004 Stock Incentive Plan | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum contractual term (in years) | 10 years | ||
Award vesting period (in years) | 3 years | ||
Weighted-average fair value of options granted (in dollars per share) | $ / shares | $ 0 | $ 21.48 | $ 16.36 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 94 | $ 92 | $ 31 |
Amended and Restated 2004 Stock Incentive Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | ||
Total fair value of awards vested | $ 2 | 3 | 21 |
Unrecognized compensation expense related to unvested awards, awards other than options | 0 | ||
Amended and Restated 2004 Stock Incentive Plan | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of awards vested | 139 | $ 110 | $ 42 |
Unrecognized compensation expense related to unvested awards, awards other than options | $ 139 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 100.73 | $ 86.20 | $ 65.19 |
Weighted-average period of recognition of unrecognized compensation costs (Years) | 1 year 9 months 18 days | ||
Amended and Restated 2004 Stock Incentive Plan | Performance Shares Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | ||
Amended and Restated 2004 Stock Incentive Plan | Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of awards vested | $ 92 | $ 90 | $ 54 |
Unrecognized compensation expense related to unvested awards, awards other than options | $ 31 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 100.65 | ||
Weighted-average period of recognition of unrecognized compensation costs (Years) | 11 months | ||
Performance period | 3 years | ||
Amended and Restated 2004 Stock Incentive Plan | Cash-Settled Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense related to unvested awards, awards other than options | $ 0 | ||
Number of common stock trading days required under vesting condition | 15 days | ||
Cash payments to settle awards | $ 39 | 42 | 36 |
Associate Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized under plans (in shares) | shares | 33 | ||
Shares available for grant under plans (in shares) | shares | 16 | ||
Compensation expense from award | $ 23 | $ 23 | $ 18 |
Share Based Compensation Arrangement By Share Based Payment Award, Minimum Employee Subscription Rate | 1.00% | ||
Maximum percentage of monthly base pay eligible for the purchase plan | 15.00% | ||
Dividend Reinvestment Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized under plans (in shares) | shares | 8 | ||
Shares available for grant under plans (in shares) | shares | 7 | ||
Minimum | Amended and Restated 2004 Stock Incentive Plan | Performance Shares Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential annual reduction in vesting based on performance (percent) | 50.00% | ||
Percentage of target award opportunities | 0.00% | ||
Maximum | Amended and Restated 2004 Stock Incentive Plan | Performance Shares Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential annual reduction in vesting based on performance (percent) | 100.00% | ||
Percentage of target award opportunities | 150.00% |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Contribution Plan (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)age | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, cost | $ | $ 291 | $ 282 | $ 252 |
Associate Savings Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, age eligible to participate | age | 18 |
Employee Benefit Plans - Defi_2
Employee Benefit Plans - Defined Benefit Plan and Other Postretirement Benefit Plans Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | $ (64) | $ (49) |
Defined Benefit Plan, Expected Future Benefit Payment, Next 10 Years | 103 | |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 9 | $ 10 |
Defined Benefit Plan, Expected Future Benefit Payment, Next 10 Years | $ 20 | |
Domestic equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 39.00% | |
International equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 16.00% | |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 45.00% | |
Minimum | Domestic equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 34.00% | |
Minimum | International equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 11.00% | |
Minimum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 35.00% | |
Maximum | Domestic equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 44.00% | |
Maximum | International equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 21.00% | |
Maximum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 55.00% |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Changes in Benefit Obligation and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in plan assets: | |||
Fair value of plan assets as of January 1, | $ 252 | ||
Fair value of plan assets as of December 31, | $ 252 | ||
Defined Pension Benefits | |||
Change in benefit obligation: | |||
Accumulated benefit obligation as of January 1, | 178 | 180 | |
Service cost | 1 | 2 | $ 2 |
Interest cost | 6 | 7 | 7 |
Benefits paid | (15) | (18) | |
Net actuarial loss (gain) | (13) | 7 | |
Accumulated benefit obligation as of December 31, | 157 | 178 | 180 |
Change in plan assets: | |||
Fair value of plan assets as of January 1, | 246 | 226 | |
Actual return on plan assets | (14) | 37 | |
Employer contributions | 1 | 1 | |
Benefits paid | (15) | (18) | |
Fair value of plan assets as of December 31, | 218 | 246 | 226 |
Over (under) funded status as of December 31, | 61 | 68 | |
Other Postretirement Benefits | |||
Change in benefit obligation: | |||
Accumulated benefit obligation as of January 1, | 35 | 39 | |
Service cost | 0 | 0 | 0 |
Interest cost | 1 | 2 | 2 |
Benefits paid | (2) | (3) | |
Net actuarial loss (gain) | (5) | (3) | |
Accumulated benefit obligation as of December 31, | 29 | 35 | 39 |
Change in plan assets: | |||
Fair value of plan assets as of January 1, | 6 | 6 | |
Actual return on plan assets | 0 | 1 | |
Employer contributions | 2 | 2 | |
Benefits paid | (2) | (3) | |
Fair value of plan assets as of December 31, | 6 | 6 | $ 6 |
Over (under) funded status as of December 31, | $ (23) | $ (29) |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | $ 71 | $ 80 |
Other liabilities | (10) | (12) |
Net amount recognized as of December 31, | 61 | 68 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 0 | 0 |
Other liabilities | (23) | (29) |
Net amount recognized as of December 31, | $ (23) | $ (29) |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of Net Periodic Benefit Costs and Other Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Pension Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 1 | $ 2 | $ 2 |
Interest cost | 6 | 7 | 7 |
Expected return on plan assets | (15) | (14) | (14) |
Amortization of transition obligation, prior service credit, and net actuarial loss (gain) | 1 | 1 | 1 |
Net periodic benefit gain | (7) | (4) | (4) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | (17) | 16 | 4 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | 1 | 1 | 1 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | (16) | 17 | 5 |
Other Postretirement Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 1 | 2 | 2 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of transition obligation, prior service credit, and net actuarial loss (gain) | (6) | (6) | (6) |
Net periodic benefit gain | (5) | (4) | (4) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 5 | 4 | 5 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | (6) | (6) | (6) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | $ (1) | $ (2) | $ (1) |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Weighted-Average Assumptions Used in Calculating Net Periodic Benefit Costs (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Pension Benefits | |||
Assumptions for benefit obligations at measurement date: | |||
Discount rate | 4.20% | 3.50% | 4.00% |
Assumptions for periodic benefit cost for the year ended: | |||
Discount rate | 3.50% | 4.00% | 4.20% |
Expected long-term rate of return on plan assets | 6.50% | 6.50% | 6.50% |
Other Postretirement Benefits | |||
Assumptions for benefit obligations at measurement date: | |||
Discount rate | 4.20% | 3.50% | 4.00% |
Assumptions for periodic benefit cost for the year ended: | |||
Discount rate | 3.50% | 4.00% | 4.20% |
Expected long-term rate of return on plan assets | 6.50% | 6.50% | 6.50% |
Assumptions for year-end valuations: | |||
Health care cost trend rate assumed for next year, pre-age 65 | 6.20% | 6.50% | 6.70% |
Health care cost trend rate assumed for next year, post-age 65 | 6.20% | 6.50% | 6.80% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% | 4.50% |
Employee Benefit Plans - Sche_5
Employee Benefit Plans - Schedule of Fair Value of Plan Assets Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Assets in fair value hierarchy | $ 252 | |
Level 2 | Corporate bonds and government securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocation percentage | 40.00% | |
Net Asset Value Per Share | Common collective trusts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets in fair value hierarchy | $ 224 | |
Plan asset allocation percentage | 60.00% |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Provision for Income Taxes Attributable to Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current income tax provision: | |||
Federal taxes | $ 210 | $ 1,585 | $ 2,087 |
State taxes | 234 | 223 | 209 |
International taxes | 135 | 133 | 104 |
Total current provision | 579 | 1,941 | 2,400 |
Deferred income tax (benefit) provision: | |||
Federal taxes | 620 | 1,509 | (621) |
State taxes | 115 | (69) | (63) |
International taxes | (21) | (6) | (2) |
Total deferred (benefit) provision | 714 | 1,434 | (686) |
Income tax provision (benefit) | $ 1,293 | $ 3,375 | $ 1,714 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Income tax at U.S. federal statutory tax rate | 21.00% | 35.00% | 35.00% |
Low-income housing, new markets tax credits, and other credits | (4.00%) | (5.80%) | (4.90%) |
IRS method changes | (3.90%) | 0.00% | 0.00% |
Tax-exempt interest and other nontaxable income | (0.70%) | (1.50%) | (1.40%) |
Impacts on Tax Act | (0.30%) | 32.20% | |
State taxes, net of federal benefit | 3.20% | 2.20% | 1.90% |
Non-deductible expenses | 2.20% | 0.70% | 0.90% |
Other, net | 0.20% | (1.30%) | (0.20%) |
Effective tax rate | 17.70% | 61.50% | 31.30% |
Income Taxes - Schedule of Si_2
Income Taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Allowance for loan and lease losses | $ 1,700 | $ 1,768 |
Rewards programs | 500 | 936 |
Security and loan valuations | 288 | 424 |
Net operating loss and tax credit carryforwards | 271 | 244 |
Goodwill and intangibles | 187 | 201 |
Compensation and employee benefits | 167 | 208 |
Partnership investments | 162 | 130 |
Net unrealized losses on derivatives | 135 | 104 |
Unearned income | 114 | 130 |
Other assets | 152 | 156 |
Subtotal | 3,676 | 4,301 |
Valuation allowance | (245) | (226) |
Total deferred tax assets | 3,431 | 4,075 |
Deferred tax liabilities: | ||
Original issue discount | 720 | 703 |
Fixed assets and leases | 204 | 168 |
Loan fees and expenses | 75 | 68 |
Mortgage Servicing Rights | 48 | 57 |
Other liabilities | 239 | 215 |
Total deferred tax liabilities | 1,286 | 1,211 |
Net deferred tax assets | $ 2,145 | $ 2,864 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Change in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gross Unrecognized Tax Benefits | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 86 | $ 85 | $ 130 |
Additions for tax positions related to current year | 28 | ||
Additions for tax positions related to prior years | 402 | 5 | 0 |
Reductions for tax positions related to prior years due to IRS and other settlements | (76) | (4) | (45) |
Ending balance | 440 | 86 | 85 |
Portion of balance at December 31, that, if recognized, would impact the effective income tax rate | 181 | ||
Accrued Interest and Penalties | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | 29 | 24 | 33 |
Additions for tax positions related to current year | 0 | ||
Additions for tax positions related to prior years | 25 | 7 | 6 |
Reductions for tax positions related to prior years due to IRS and other settlements | (19) | (2) | (15) |
Ending balance | 35 | 29 | 24 |
Portion of balance at December 31, that, if recognized, would impact the effective income tax rate | 28 | ||
Gross Tax, Interest and Penalties | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | 115 | 109 | 163 |
Additions for tax positions related to current year | 28 | ||
Additions for tax positions related to prior years | 427 | 12 | 6 |
Reductions for tax positions related to prior years due to IRS and other settlements | (95) | (6) | (60) |
Ending balance | 475 | $ 115 | $ 109 |
Portion of balance at December 31, that, if recognized, would impact the effective income tax rate | $ 209 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Additional Information [Line Items] | |||||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense (Benefit) | $ 1,800 | ||||
IRS Method Changes, Provision Income Tax Benefit | $ 284 | ||||
Pre-tax earnings from foreign operations | $ 382 | $ 410 | $ 287 | ||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 15 | (134) | 24 | ||
Accrued interest and penalties expense (benefit) related to income taxes included in income tax expense | 6 | 5 | $ (5) | ||
Provisional liability accrued for repatriation of undistributed foreign earnings | 111 | 111 | |||
Undistributed earnings of foreign subsidiaries | 1,500 | 1,500 | |||
Amount of unrecognized deferred tax liability, bad debt reserve for tax purposes of qualified lender | 69 | 69 | |||
Bad debt reserve for tax purposes of qualified lender | 287 | 287 | |||
Internal Revenue Service (IRS) | |||||
Additional Information [Line Items] | |||||
Operating Loss Carryforwards | 1 | 15 | 1 | 15 | |
State and Local Jurisdiction | |||||
Additional Information [Line Items] | |||||
Operating Loss Carryforwards | 253 | $ 241 | 253 | $ 241 | |
Foreign Tax Authority [Member] | |||||
Additional Information [Line Items] | |||||
Operating Loss Carryforwards | $ 19 | $ 19 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | |||
Securities available for sale | $ 46,150 | $ 37,655 | |
Derivative Assets, Gross Amount | 1,539 | 1,040 | |
Derivative Asset, Netting Adjustments | (1,079) | (275) | |
Other assets: | |||
Consumer MSRs | 92 | ||
Liabilities: | |||
Derivative Liabilities, Gross Amount | 1,201 | 1,268 | |
Derivative Liability, Netting Adjustments | (287) | (662) | |
Net valuation allowance | 2 | 2 | |
Recurring | |||
Assets: | |||
Securities available for sale | 46,150 | 37,655 | |
Derivative Assets, Gross Amount | 460 | 765 | |
Other assets | 423 | 545 | |
Total assets | 47,033 | 38,965 | |
Liabilities: | |||
Derivative Liabilities, Gross Amount | 914 | 606 | |
Recurring | Level 1 | |||
Assets: | |||
Securities available for sale | 6,363 | 5,491 | |
Derivative Assets, Gross Amount | 0 | 1 | |
Other assets | 265 | 281 | |
Total assets | 6,628 | 5,773 | |
Other assets: | |||
Deferred compensation plan assets | 264 | 281 | |
Equity securities | 1 | ||
Liabilities: | |||
Derivative Liabilities, Gross Amount | 0 | 1 | |
Recurring | Level 2 | |||
Assets: | |||
Securities available for sale | 39,344 | 31,531 | |
Derivative Assets, Gross Amount | 1,501 | 1,002 | |
Other assets | 0 | 0 | |
Total assets | 40,845 | 32,533 | |
Liabilities: | |||
Derivative Liabilities, Gross Amount | 1,153 | 1,243 | |
Recurring | Level 3 | |||
Assets: | |||
Securities available for sale | 443 | 633 | |
Derivative Assets, Gross Amount | 38 | 37 | $ 47 |
Other assets | 158 | 264 | |
Total assets | 639 | 934 | |
Other assets: | |||
Retained interests in securitizations | 158 | 172 | |
Consumer MSRs | 92 | ||
Liabilities: | |||
Derivative Liabilities, Gross Amount | 48 | 24 | $ 29 |
U.S. Treasury securities | |||
Assets: | |||
Securities available for sale | 6,144 | 5,171 | |
U.S. Treasury securities | Recurring | |||
Assets: | |||
Securities available for sale | 6,144 | 5,171 | |
U.S. Treasury securities | Recurring | Level 1 | |||
Assets: | |||
Securities available for sale | 6,144 | 5,171 | |
U.S. Treasury securities | Recurring | Level 2 | |||
Assets: | |||
Securities available for sale | 0 | 0 | |
U.S. Treasury securities | Recurring | Level 3 | |||
Assets: | |||
Securities available for sale | 0 | 0 | |
RMBS | |||
Assets: | |||
Securities available for sale | 33,645 | 27,792 | |
RMBS | Recurring | |||
Assets: | |||
Securities available for sale | 33,645 | 27,792 | |
RMBS | Recurring | Level 1 | |||
Assets: | |||
Securities available for sale | 0 | 0 | |
RMBS | Recurring | Level 2 | |||
Assets: | |||
Securities available for sale | 33,212 | 27,178 | |
RMBS | Recurring | Level 3 | |||
Assets: | |||
Securities available for sale | 433 | 614 | |
CMBS | Recurring | |||
Assets: | |||
Securities available for sale | 4,739 | 3,175 | |
CMBS | Recurring | Level 1 | |||
Assets: | |||
Securities available for sale | 0 | 0 | |
CMBS | Recurring | Level 2 | |||
Assets: | |||
Securities available for sale | 4,729 | 3,161 | |
CMBS | Recurring | Level 3 | |||
Assets: | |||
Securities available for sale | 10 | 14 | |
Other securities | |||
Assets: | |||
Securities available for sale | 1,622 | 1,517 | |
Other securities | Recurring | |||
Assets: | |||
Securities available for sale | 1,622 | 1,517 | |
Other securities | Recurring | Level 1 | |||
Assets: | |||
Securities available for sale | 219 | 320 | |
Other securities | Recurring | Level 2 | |||
Assets: | |||
Securities available for sale | 1,403 | 1,192 | |
Other securities | Recurring | Level 3 | |||
Assets: | |||
Securities available for sale | $ 0 | $ 5 |
Fair Value Measurement Fair Val
Fair Value Measurement Fair Value Measurement - Schedule of Level 3 Inputs Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative, Fair Value, Net [Abstract] | |||
Derivative Assets, Gross Amount | $ 1,539 | $ 1,040 | |
Derivative Liabilities, Gross Amount | 1,201 | 1,268 | |
Recurring | |||
Derivative, Fair Value, Net [Abstract] | |||
Derivative Assets, Gross Amount | 460 | 765 | |
Derivative Liabilities, Gross Amount | 914 | 606 | |
Recurring | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 633 | 578 | $ 615 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 32 | 90 | 22 |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | (8) | (24) | 9 |
Purchases | 0 | 110 | 420 |
Sales | 0 | (166) | 0 |
Issuances | 0 | 0 | 0 |
Settlements | (83) | (100) | (122) |
Transfers Into Level 3 | 203 | 572 | 444 |
Transfers Out of Level 3 | (334) | (427) | (810) |
Ending balance | 443 | 633 | 578 |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 28 | 19 | 32 |
Net Unrealized Gains (Losses) Included in OCI Related to Assets and Liabilities Still Held | 17 | ||
Derivative, Fair Value, Net [Abstract] | |||
Beginning balance | 13 | 18 | 30 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | (20) | 0 | (5) |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 13 | 46 | 36 |
Settlements | (17) | (44) | (33) |
Transfers Into Level 3 | 0 | 0 | 0 |
Transfers Out of Level 3 | 1 | (7) | (10) |
Ending balance | (10) | 13 | 18 |
Derivative Assets, Gross Amount | 38 | 37 | 47 |
Derivative Liabilities, Gross Amount | 48 | 24 | 29 |
RMBS | Recurring | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 614 | 518 | 504 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 32 | 90 | 31 |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | (8) | (24) | 9 |
Purchases | 0 | 0 | 110 |
Sales | 0 | (116) | 0 |
Issuances | 0 | 0 | 0 |
Settlements | (74) | (92) | (98) |
Transfers Into Level 3 | 203 | 572 | 380 |
Transfers Out of Level 3 | (334) | (334) | (418) |
Ending balance | 433 | 614 | 518 |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 28 | 19 | 32 |
CMBS | Recurring | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 14 | 51 | 97 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 0 | 0 | 0 |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 0 | 0 | 0 |
Purchases | 0 | 110 | 266 |
Sales | 0 | (50) | 0 |
Issuances | 0 | 0 | 0 |
Settlements | (4) | (4) | (14) |
Transfers Into Level 3 | 0 | 0 | 64 |
Transfers Out of Level 3 | 0 | (93) | (362) |
Ending balance | 10 | 14 | 51 |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 0 | 0 | 0 |
Other securities | Recurring | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 5 | 9 | 14 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 0 | 0 | (9) |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 0 | 0 | 0 |
Purchases | 0 | 0 | 44 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | (5) | (4) | (10) |
Transfers Into Level 3 | 0 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 | (30) |
Ending balance | 0 | 5 | 9 |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 0 | 0 | 0 |
Consumer MSRs | Recurring | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 92 | 80 | 68 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 3 | (5) | (5) |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | (97) | (3) | 0 |
Issuances | 2 | 27 | 23 |
Settlements | 0 | (7) | (6) |
Transfers Into Level 3 | 0 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 | 0 |
Ending balance | 0 | 92 | 80 |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 0 | (5) | (5) |
Retained interest in securitizations | Recurring | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 172 | 201 | 211 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | (14) | (29) | (10) |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers Into Level 3 | 0 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 | 0 |
Ending balance | 158 | 172 | 201 |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | (14) | (29) | (10) |
Net Derivative Assets (Liabilities) | Recurring | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | $ (20) | $ 0 | $ (5) |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis Quantitative Information about Level 3 Fair Value Measurements (Detail) $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)$ / SecurityLoan | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale | $ 46,150 | $ 37,655 | ||
Consumer MSRs | 92 | |||
Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale | 46,150 | 37,655 | ||
Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale | 443 | 633 | ||
Consumer MSRs | 92 | |||
Retained interests in securitizations | 158 | 172 | ||
Net derivative assets (liabilities) | (10) | 13 | $ 18 | $ 30 |
RMBS | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale | 33,645 | 27,792 | ||
RMBS | Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale | 33,645 | 27,792 | ||
RMBS | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale | 433 | 614 | ||
CMBS | Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale | 4,739 | 3,175 | ||
CMBS | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale | 10 | 14 | ||
Other securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale | 1,622 | 1,517 | ||
Other securities | Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale | 1,622 | 1,517 | ||
Other securities | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale | $ 0 | 5 | ||
Consumer MSRs | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Consumer MSRs | $ 92 | |||
Yield | RMBS | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0.03 | 0.02 | ||
Yield | RMBS | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0.11 | 0.09 | ||
Yield | RMBS | Recurring | Level 3 | Discounted cash flows | Weighted average | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0.05 | 0.05 | ||
Yield | CMBS | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0.03 | 0.03 | ||
Yield | CMBS | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0.03 | 0.03 | ||
Yield | CMBS | Recurring | Level 3 | Discounted cash flows | Weighted average | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0.03 | 0.03 | ||
Yield | Other securities | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0.02 | |||
Yield | Other securities | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0.02 | |||
Yield | Other securities | Recurring | Level 3 | Discounted cash flows | Weighted average | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0.02 | |||
Constant prepayment rate | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input | 0.03 | 0.02 | ||
Constant prepayment rate | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input | 0.14 | 0.12 | ||
Constant prepayment rate | RMBS | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0 | 0 | ||
Constant prepayment rate | RMBS | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0.17 | 0.15 | ||
Constant prepayment rate | RMBS | Recurring | Level 3 | Discounted cash flows | Weighted average | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0.05 | 0.04 | ||
Constant prepayment rate | CMBS | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0 | |||
Constant prepayment rate | CMBS | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0 | |||
Constant prepayment rate | CMBS | Recurring | Level 3 | Discounted cash flows | Weighted average | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0 | |||
Constant prepayment rate | Consumer MSRs | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Consumer MSRs, measurement input | 0.07 | |||
Constant prepayment rate | Consumer MSRs | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Consumer MSRs, measurement input | 0.30 | |||
Constant prepayment rate | Consumer MSRs | Recurring | Level 3 | Discounted cash flows | Weighted average | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Consumer MSRs, measurement input | 0.16 | |||
Default rate | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input | 0.02 | 0.01 | ||
Default rate | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input | 0.04 | 0.06 | ||
Default rate | RMBS | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0 | 0 | ||
Default rate | RMBS | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0.07 | 0.08 | ||
Default rate | RMBS | Recurring | Level 3 | Discounted cash flows | Weighted average | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0.03 | 0.03 | ||
Loss severity | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input | 0.50 | 0.03 | ||
Loss severity | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input | 1.04 | 1.15 | ||
Loss severity | RMBS | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0 | 0 | ||
Loss severity | RMBS | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0.75 | 0.90 | ||
Loss severity | RMBS | Recurring | Level 3 | Discounted cash flows | Weighted average | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0.65 | 0.62 | ||
Life of receivables (months) | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input, life of receivables | 3 months | 6 months | ||
Life of receivables (months) | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input, life of receivables | 56 months | 79 months | ||
Discount rate | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input | 0.04 | 0.03 | ||
Discount rate | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input | 0.06 | 0.10 | ||
Discount rate | Consumer MSRs | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Consumer MSRs, measurement input | 0.14 | |||
Discount rate | Consumer MSRs | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Consumer MSRs, measurement input | 0.14 | |||
Discount rate | Consumer MSRs | Recurring | Level 3 | Discounted cash flows | Weighted average | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Consumer MSRs, measurement input | 0.14 | |||
Swap rates | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Net derivative assets (liabilities) Net, measurement input | 0.03 | 0.02 | ||
Swap rates | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Net derivative assets (liabilities) Net, measurement input | 0.03 | 0.02 | ||
Swap rates | Recurring | Level 3 | Discounted cash flows | Weighted average | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Net derivative assets (liabilities) Net, measurement input | 0.03 | 0.02 | ||
Option adjusted spread rate | Consumer MSRs | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Consumer MSRs, measurement input | 0.02 | |||
Option adjusted spread rate | Consumer MSRs | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Consumer MSRs, measurement input | 0.15 | |||
Option adjusted spread rate | Consumer MSRs | Recurring | Level 3 | Discounted cash flows | Weighted average | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Consumer MSRs, measurement input | 0.0458 | |||
Servicing cost ($ per loan) | Consumer MSRs | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Consumer MSRs, measurement input | 75 | |||
Servicing cost ($ per loan) | Consumer MSRs | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Consumer MSRs, measurement input | 100 | |||
Servicing cost ($ per loan) | Consumer MSRs | Recurring | Level 3 | Discounted cash flows | Weighted average | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Consumer MSRs, measurement input | $ / SecurityLoan | 76 |
Fair Value Measurement - Sche_3
Fair Value Measurement - Schedule of Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | $ 0 | $ 0 |
Loans held for sale | 1,218 | 949 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | 241,556 | 251,468 |
Loans held for sale | 0 | 3 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | 129 | 182 |
Loans held for sale | 38 | 178 |
Other assets | 100 | 35 |
Total assets | 267 | 395 |
Equity investments accounted for under measurement alternative | 24 | |
Foreclosed property and repossessed assets, fair value disclosure | 57 | 17 |
Long lived assets held for sale | 19 | 18 |
Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | 0 | 0 |
Loans held for sale | 38 | 177 |
Other assets | 0 | 0 |
Total assets | 38 | 177 |
Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | 129 | 182 |
Loans held for sale | 0 | 1 |
Other assets | 100 | 35 |
Total assets | $ 229 | $ 218 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - Non-Recoverable Rate - Level 3 - Appraisal Value | Dec. 31, 2018 | Dec. 31, 2017 |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, measurement input | 0 | 0 |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, measurement input | 0.84 | 0.77 |
Weighted average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, measurement input | 0.33 | 0.21 |
Fair Value Measurement - Sche_4
Fair Value Measurement - Schedule of Earnings Related to Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets: | |||
Loans held for investment | $ (85) | $ (100) | $ (230) |
Loans held for sale | 0 | (3) | (2) |
Other assets | (74) | (12) | (19) |
Total | $ (159) | $ (115) | $ (251) |
Fair Value Measurement - Sche_5
Fair Value Measurement - Schedule of Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Securities held to maturity | $ 36,619 | $ 29,437 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 4,768 | 4,458 |
Restricted cash for securitization investors | 303 | 312 |
Securities held to maturity | 0 | 200 |
Net loans held for investment | 0 | 0 |
Loans held for sale | 0 | 0 |
Interest receivable | 0 | 0 |
Other investments | 0 | 0 |
Financial liabilities: | ||
Deposits with defined maturities | 0 | |
Deposits | 26,404 | |
Securitized debt obligations | 0 | 0 |
Senior and subordinated notes | 0 | 0 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 0 | 0 |
Other borrowings | 0 | 0 |
Interest payable | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 8,418 | 9,582 |
Restricted cash for securitization investors | 0 | 0 |
Securities held to maturity | 36,513 | 29,217 |
Net loans held for investment | 0 | 0 |
Loans held for sale | 1,218 | 949 |
Interest receivable | 1,614 | 1,536 |
Other investments | 1,725 | 1,680 |
Financial liabilities: | ||
Deposits with defined maturities | 38,279 | |
Deposits | 217,328 | |
Securitized debt obligations | 18,359 | 20,122 |
Senior and subordinated notes | 30,635 | 31,392 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 352 | 576 |
Other borrowings | 9,354 | 8,892 |
Interest payable | 458 | 413 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash for securitization investors | 0 | 0 |
Securities held to maturity | 106 | 20 |
Net loans held for investment | 241,556 | 251,468 |
Loans held for sale | 0 | 3 |
Interest receivable | 0 | 0 |
Other investments | 0 | 9 |
Financial liabilities: | ||
Deposits with defined maturities | 0 | |
Deposits | 0 | |
Securitized debt obligations | 0 | 0 |
Senior and subordinated notes | 0 | 0 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 0 | 0 |
Other borrowings | 0 | 0 |
Interest payable | 0 | 0 |
Carrying Value | ||
Financial assets: | ||
Cash and cash equivalents | 13,186 | 14,040 |
Restricted cash for securitization investors | 303 | 312 |
Securities held to maturity | 36,771 | 28,984 |
Net loans held for investment | 238,679 | 246,971 |
Loans held for sale | 1,192 | 971 |
Interest receivable | 1,614 | 1,536 |
Other investments | 1,725 | 1,689 |
Financial liabilities: | ||
Deposits with defined maturities | 38,471 | |
Deposits | 243,702 | |
Securitized debt obligations | 18,307 | 20,010 |
Senior and subordinated notes | 30,826 | 30,755 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 352 | 576 |
Other borrowings | 9,354 | 8,892 |
Interest payable | 458 | 413 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 13,186 | 14,040 |
Restricted cash for securitization investors | 303 | 312 |
Securities held to maturity | 36,619 | 29,437 |
Net loans held for investment | 241,556 | 251,468 |
Loans held for sale | 1,218 | 952 |
Interest receivable | 1,614 | 1,536 |
Other investments | 1,725 | 1,689 |
Financial liabilities: | ||
Deposits with defined maturities | 38,279 | |
Deposits | 243,732 | |
Securitized debt obligations | 18,359 | 20,122 |
Senior and subordinated notes | 30,635 | 31,392 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 352 | 576 |
Other borrowings | 9,354 | 8,892 |
Interest payable | $ 458 | $ 413 |
Business Segments and Revenue_3
Business Segments and Revenue from Contracts with Customers - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)Segment | |
Segment Reporting Information [Line Items] | |
Number of Operating Segments | Segment | 3 |
Commercial Banking | Minimum | |
Segment Reporting Information [Line Items] | |
Customer Net Revenue Range | $ 20 |
Commercial Banking | Maximum | |
Segment Reporting Information [Line Items] | |
Customer Net Revenue Range | $ 2,000 |
Business Segments and Revenue_4
Business Segments and Revenue from Contracts with Customers - Schedule of Segment Results and Reconciliation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Net interest income | $ 22,875 | $ 22,460 | $ 20,873 |
Non-interest income | 5,201 | 4,777 | 4,628 |
Total net revenue | 28,076 | 27,237 | 25,501 |
Provision (benefit) for credit losses | 5,856 | 7,551 | 6,459 |
Total non-interest expense | 14,902 | 14,194 | 13,558 |
Income (loss) from continuing operations before income taxes | 7,318 | 5,492 | 5,484 |
Income tax provision (benefit) | 1,293 | 3,375 | 1,714 |
Income (loss) from continuing operations, net of tax | 6,025 | 2,117 | 3,770 |
Loans held for investment | 245,899 | 254,473 | 245,586 |
Total deposits | $ 249,764 | $ 243,702 | $ 236,768 |
Effective income tax rate | 21.00% | 35.00% | 35.00% |
Operating Segments | Credit Card | |||
Segment Reporting Information [Line Items] | |||
Net interest income | $ 14,167 | $ 13,648 | $ 12,635 |
Non-interest income | 3,520 | 3,325 | 3,380 |
Total net revenue | 17,687 | 16,973 | 16,015 |
Provision (benefit) for credit losses | 4,984 | 6,066 | 4,926 |
Total non-interest expense | 8,542 | 7,916 | 7,703 |
Income (loss) from continuing operations before income taxes | 4,161 | 2,991 | 3,386 |
Income tax provision (benefit) | 970 | 1,071 | 1,226 |
Income (loss) from continuing operations, net of tax | 3,191 | 1,920 | 2,160 |
Loans held for investment | 116,361 | 114,762 | 105,552 |
Total deposits | 0 | 0 | 0 |
Operating Segments | Consumer Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 6,549 | 6,380 | 5,829 |
Non-interest income | 663 | 749 | 733 |
Total net revenue | 7,212 | 7,129 | 6,562 |
Provision (benefit) for credit losses | 838 | 1,180 | 1,055 |
Total non-interest expense | 4,027 | 4,233 | 4,139 |
Income (loss) from continuing operations before income taxes | 2,347 | 1,716 | 1,368 |
Income tax provision (benefit) | 547 | 626 | 498 |
Income (loss) from continuing operations, net of tax | 1,800 | 1,090 | 870 |
Loans held for investment | 59,205 | 75,078 | 73,054 |
Total deposits | 198,607 | 185,842 | 181,917 |
Operating Segments | Commercial Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 2,152 | 2,261 | 2,216 |
Non-interest income | 744 | 708 | 578 |
Total net revenue | 2,896 | 2,969 | 2,794 |
Provision (benefit) for credit losses | 83 | 301 | 483 |
Total non-interest expense | 1,654 | 1,603 | 1,407 |
Income (loss) from continuing operations before income taxes | 1,159 | 1,065 | 904 |
Income tax provision (benefit) | 270 | 389 | 329 |
Income (loss) from continuing operations, net of tax | 889 | 676 | 575 |
Loans held for investment | 70,333 | 64,575 | 66,916 |
Total deposits | 29,480 | 33,938 | 33,866 |
Revenue Change Due To Impact Of Federal Tax Rate And Measurement Change | 126 | ||
Other | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 7 | 171 | 193 |
Non-interest income | 274 | (5) | (63) |
Total net revenue | 281 | 166 | 130 |
Provision (benefit) for credit losses | (49) | 4 | (5) |
Total non-interest expense | 679 | 442 | 309 |
Income (loss) from continuing operations before income taxes | (349) | (280) | (174) |
Income tax provision (benefit) | (494) | 1,289 | (339) |
Income (loss) from continuing operations, net of tax | 145 | (1,569) | 165 |
Loans held for investment | 0 | 58 | 64 |
Total deposits | 21,677 | $ 23,922 | $ 20,985 |
Home Loans Receivable | Other | |||
Segment Reporting Information [Line Items] | |||
Provision (benefit) for credit losses | 46 | ||
Gain (Loss) on Sale of Mortgage Loans | $ 499 |
Business Segments and Revenue_5
Business Segments and Revenue from Contracts with Customers Business Segments and Revenue from Contracts with Customers - Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | $ 3,431 | ||
Revenue from other sources | 1,770 | ||
Total non-interest income | 5,201 | $ 4,777 | $ 4,628 |
Operating Segments | Credit Card | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 2,617 | ||
Revenue from other sources | 903 | ||
Total non-interest income | 3,520 | 3,325 | 3,380 |
Operating Segments | Consumer Banking | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 661 | ||
Revenue from other sources | 2 | ||
Total non-interest income | 663 | 749 | 733 |
Operating Segments | Commercial Banking | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 158 | ||
Revenue from other sources | 586 | ||
Total non-interest income | 744 | 708 | 578 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | (5) | ||
Revenue from other sources | 279 | ||
Total non-interest income | 274 | $ (5) | $ (63) |
Interchange Fees, Contracts | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 2,823 | ||
Customer reward expenses | 4,400 | ||
Interchange Fees, Contracts | Operating Segments | Credit Card | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 2,609 | ||
Interchange Fees, Contracts | Operating Segments | Consumer Banking | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 185 | ||
Interchange Fees, Contracts | Operating Segments | Commercial Banking | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 33 | ||
Interchange Fees, Contracts | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | (4) | ||
Service Charges And Other Customer Fees, Contracts | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 489 | ||
Service Charges And Other Customer Fees, Contracts | Operating Segments | Credit Card | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 0 | ||
Service Charges And Other Customer Fees, Contracts | Operating Segments | Consumer Banking | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 367 | ||
Service Charges And Other Customer Fees, Contracts | Operating Segments | Commercial Banking | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 123 | ||
Service Charges And Other Customer Fees, Contracts | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | (1) | ||
Other Contract Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 119 | ||
Other Contract Revenue | Operating Segments | Credit Card | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 8 | ||
Other Contract Revenue | Operating Segments | Consumer Banking | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 109 | ||
Other Contract Revenue | Operating Segments | Commercial Banking | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 2 | ||
Other Contract Revenue | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | $ 0 |
Commitments, Contingencies, G_3
Commitments, Contingencies, Guarantees, and Others Commitments, Contingencies, Guarantees, and Others - Schedule of letter of credit and other loan commitments (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Loss Contingencies [Line Items] | ||
Letter of Credit Issued Contractual Amount and Unused Commitment to Extend Credit | $ 382,427 | $ 385,367 |
Off-balance Sheet Lending Commitment Carrying Value | 124 | 127 |
Credit Card Portfolio Segment | ||
Loss Contingencies [Line Items] | ||
Unused Commitments to Extend Credit | 346,186 | 351,481 |
Other Portfolio Segments, Excluding Credit Card | ||
Loss Contingencies [Line Items] | ||
Unused Commitments to Extend Credit | 34,449 | 31,840 |
Off-balance Sheet Lending Commitment Carrying Value | 95 | 84 |
Advised Line of Credit | 1,300 | 1,000 |
Letter of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,792 | 2,046 |
Off-balance Sheet Lending Commitment Carrying Value | $ 29 | $ 43 |
Commitments, Contingencies, G_4
Commitments, Contingencies, Guarantees, and Others - Guarantees, Loss Sharing, U.K Cross Sell (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance Claims [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency accrual | $ 133 | $ 249 |
Loss Contingency, Loss in Period | 99 | |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 100 | |
Loss Sharing Agreement | ||
Loss Contingencies [Line Items] | ||
Guarantee Obligation | $ 59 | $ 60 |
Commitments, Contingencies, G_5
Commitments, Contingencies, Guarantees, and Others - Litigation (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Jul. 31, 2012USD ($) | Jul. 31, 2012USD ($)trustsummon | Dec. 31, 2018USD ($) | |
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | $ 1,100 | ||
Anti-Money Laundering | |||
Loss Contingencies [Line Items] | |||
Litigation settlement paid | $ 100 | ||
Pending Litigation | Interchange Litigation | |||
Loss Contingencies [Line Items] | |||
Litigation settlement, attributable to reporting entity and third party | $ 6,200 | ||
GreenPoint Subsidiary | Pending Litigation | FHFA Litigation | |||
Loss Contingencies [Line Items] | |||
Number of summons filed | summon | 3 | ||
Number of residential mortgage backed securities trusts | trust | 3 | ||
Mortgage loans sold to third party, face amount under litigation | $ 3,400 | $ 3,400 |
Capital One Financial Corpora_3
Capital One Financial Corporation (Parent Company Only) - Statements of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Income Statements, Captions [Line Items] | |||
Interest from temporary investments | $ 27,176 | $ 25,222 | $ 22,891 |
Interest expense | 4,301 | 2,762 | 2,018 |
Non-interest income | 5,201 | 4,777 | 4,628 |
Non-interest expense | 14,902 | 14,194 | 13,558 |
Income tax (benefit) | 1,293 | 3,375 | 1,714 |
Net income | 6,015 | 1,982 | 3,751 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 5,879 | 2,005 | 3,418 |
Parent Company | |||
Condensed Income Statements, Captions [Line Items] | |||
Interest from temporary investments | 313 | 178 | 120 |
Interest expense | 720 | 381 | 258 |
Dividends from Subsidiaries | 2,750 | 300 | 3,936 |
Non-interest income | 19 | 19 | (13) |
Non-interest expense | 29 | 34 | 48 |
Income before income taxes and equity in undistributed earnings of subsidiaries | 2,333 | 82 | 3,737 |
Income tax (benefit) | (128) | (103) | (79) |
Income (loss) from subsidiary including discontinued operations, net of tax | 3,554 | 1,797 | (65) |
Net income | 6,015 | 1,982 | 3,751 |
Other Comprehensive Income (Loss), Net of Tax | (136) | 23 | (333) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 5,879 | $ 2,005 | $ 3,418 |
Capital One Financial Corpora_4
Capital One Financial Corporation (Parent Company Only) - Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||||
Cash and cash equivalents | $ 13,186 | $ 14,040 | ||
Other assets | 15,908 | 16,658 | ||
Total assets | 372,538 | 365,693 | ||
Liabilities: | ||||
Senior and subordinated notes | 30,826 | 30,755 | ||
Other borrowings | 9,420 | 8,940 | ||
Accrued expenses and other liabilities | 11,743 | 12,567 | ||
Total liabilities | 320,870 | 316,963 | ||
Stockholders’ equity: | ||||
Total stockholders’ equity | 51,668 | 48,730 | $ 47,514 | $ 47,284 |
Total liabilities and stockholders’ equity | 372,538 | 365,693 | ||
Parent Company | ||||
Assets: | ||||
Cash and cash equivalents | 10,286 | 8,196 | $ 7,296 | $ 7,245 |
Investment in subsidiaries | 58,154 | 54,712 | ||
Loans to subsidiaries | 2,603 | 548 | ||
Securities available for sale | 795 | 907 | ||
Other assets | 1,250 | 729 | ||
Total assets | 73,088 | 65,092 | ||
Liabilities: | ||||
Senior and subordinated notes | 19,518 | 14,392 | ||
Other borrowings | 1,671 | 1,633 | ||
Accrued expenses and other liabilities | 231 | 337 | ||
Total liabilities | 21,420 | 16,362 | ||
Stockholders’ equity: | ||||
Total stockholders’ equity | 51,668 | 48,730 | ||
Total liabilities and stockholders’ equity | $ 73,088 | $ 65,092 |
Capital One Financial Corpora_5
Capital One Financial Corporation (Parent Company Only) - Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | |||
Net income | $ 6,015 | $ 1,982 | $ 3,751 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Net cash from operating activities | 12,978 | 14,182 | 11,856 |
Investing activities: | |||
Net cash from investing activities | (15,618) | (15,541) | (25,630) |
Common Stock | |||
Net proceeds from issuances | 175 | 164 | 131 |
Dividends paid | (773) | (780) | (812) |
Preferred Stock | |||
Net proceeds from issuances | 0 | 0 | 1,066 |
Dividends paid | (265) | (265) | (214) |
Purchases of treasury stock | (2,284) | (240) | (3,661) |
Proceeds from share-based payment activities | 38 | 124 | 142 |
Net cash from financing activities | 1,777 | 3,218 | 17,227 |
Cash, cash equivalents and restricted cash for securitization investors, beginning of the period | 14,040 | ||
Cash, cash equivalents and restricted cash for securitization investors, ending of the period | 13,186 | 14,040 | |
Parent Company | |||
Operating activities: | |||
Net income | 6,015 | 1,982 | 3,751 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Equity in undistributed earnings of subsidiaries | (3,554) | (1,797) | 65 |
Other operating activities | (35) | 327 | (10) |
Net cash from operating activities | 2,426 | 512 | 3,806 |
Investing activities: | |||
Net payments to subsidiaries | (577) | (4,956) | (163) |
Proceeds from paydowns and maturities of securities available for sale | 140 | 130 | 71 |
Changes in loans to subsidiaries | (2,055) | 44 | (71) |
Net cash from investing activities | (2,492) | (4,782) | (163) |
Financing activities: | |||
Changes in borrowings from subsidiaries | 38 | 23 | 19 |
Proceeds from issuance of senior notes and sub notes | 5,227 | 6,948 | 1,487 |
Proceeds from paydowns and maturities of senior and subordinated notes | 0 | (804) | (1,750) |
Common Stock | |||
Net proceeds from issuances | 175 | 164 | 131 |
Dividends paid | (773) | (780) | (812) |
Preferred Stock | |||
Net proceeds from issuances | 0 | 0 | 1,066 |
Dividends paid | (265) | (265) | (214) |
Purchases of treasury stock | (2,284) | (240) | (3,661) |
Proceeds from share-based payment activities | 38 | 124 | 142 |
Net cash from financing activities | 2,156 | 5,170 | (3,592) |
Changes in cash and cash equivalents | 2,090 | 900 | 51 |
Cash, cash equivalents and restricted cash for securitization investors, beginning of the period | 8,196 | 7,296 | 7,245 |
Cash, cash equivalents and restricted cash for securitization investors, ending of the period | $ 10,286 | $ 8,196 | $ 7,296 |