Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Jun. 30, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-13300 | ||
Entity Registrant Name | CAPITAL ONE FINANCIAL CORP | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 54-1719854 | ||
Entity Address, Address Line One | 1680 Capital One Drive, | ||
Entity Address, City or Town | McLean, | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22102 | ||
City Area Code | 703 | ||
Local Phone Number | 720-1000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 28.3 | ||
Entity Common Stock, Shares Outstanding | 459,236,740 | ||
Entity Central Index Key | 0000927628 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the annual meeting of stockholders to be held on May 6, 2021, are incorporated by reference into Part III. | ||
Common Stock (par value $.01 per share) | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock (par value $.01 per share) | ||
Trading Symbol | COF | ||
Security Exchange Name | NYSE | ||
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series G | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series G | ||
Trading Symbol | COF PRG | ||
Security Exchange Name | NYSE | ||
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series H | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series H | ||
Trading Symbol | COF PRH | ||
Security Exchange Name | NYSE | ||
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series I | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series I | ||
Trading Symbol | COF PRI | ||
Security Exchange Name | NYSE | ||
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series J | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series J | ||
Trading Symbol | COF PRJ | ||
Security Exchange Name | NYSE | ||
Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series K | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares, Each Representing a 1/40th Interest in a Share of Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series K | ||
Trading Symbol | COF PRK | ||
Security Exchange Name | NYSE | ||
0.800% Senior Notes Due 2024 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.800% Senior Notes Due 2024 | ||
Trading Symbol | COF24 | ||
Security Exchange Name | NYSE | ||
1.650% Senior Notes Due 2029 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.650% Senior Notes Due 2029 | ||
Trading Symbol | COF29 | ||
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest income: | |||
Loans, including loans held for sale | $ 24,074 | $ 25,862 | $ 24,728 |
Investment securities | 1,877 | 2,411 | 2,211 |
Other | 82 | 240 | 237 |
Total interest income | 26,033 | 28,513 | 27,176 |
Interest expense: | |||
Deposits | 2,165 | 3,420 | 2,598 |
Securitized debt obligations | 232 | 523 | 496 |
Senior and subordinated notes | 679 | 1,159 | 1,125 |
Other borrowings | 44 | 71 | 82 |
Total interest expense | 3,120 | 5,173 | 4,301 |
Net interest income | 22,913 | 23,340 | 22,875 |
Provision for credit losses | 10,264 | 6,236 | 5,856 |
Net interest income after provision for credit losses | 12,649 | 17,104 | 17,019 |
Non-interest income: | |||
Interchange fees, net | 3,017 | 3,179 | 2,823 |
Service charges and other customer-related fees | 1,243 | 1,330 | 1,585 |
Net securities gains (losses) | 25 | 26 | (209) |
Other | 1,325 | 718 | 1,002 |
Total non-interest income | 5,610 | 5,253 | 5,201 |
Non-interest expense: | |||
Salaries and associate benefits | 6,805 | 6,388 | 5,727 |
Occupancy and equipment | 2,118 | 2,098 | 2,118 |
Marketing | 1,610 | 2,274 | 2,174 |
Professional services | 1,312 | 1,237 | 1,145 |
Communications and data processing | 1,215 | 1,290 | 1,260 |
Amortization of intangibles | 60 | 112 | 174 |
Other | 1,936 | 2,084 | 2,304 |
Total non-interest expense | 15,056 | 15,483 | 14,902 |
Income from continuing operations before income taxes | 3,203 | 6,874 | 7,318 |
Income tax provision | 486 | 1,341 | 1,293 |
Income from continuing operations, net of tax | 2,717 | 5,533 | 6,025 |
Income (loss) from discontinued operations, net of tax | (3) | 13 | (10) |
Net income | 2,714 | 5,546 | 6,015 |
Dividends and undistributed earnings allocated to participating securities | (20) | (41) | (40) |
Preferred stock dividends | (280) | (282) | (265) |
Issuance cost for redeemed preferred stock | (39) | (31) | 0 |
Net income available to common stockholders | $ 2,375 | $ 5,192 | $ 5,710 |
Basic earnings per common share: | |||
Net income from continuing operations | $ 5.20 | $ 11.07 | $ 11.92 |
Income (loss) from discontinued operations | (0.01) | 0.03 | (0.02) |
Net income per basic common share | 5.19 | 11.10 | 11.90 |
Diluted earnings per common share: | |||
Net income from continuing operations | 5.19 | 11.02 | 11.84 |
Income (loss) from discontinued operations | (0.01) | 0.03 | (0.02) |
Net income per diluted common share | $ 5.18 | $ 11.05 | $ 11.82 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 2,714 | $ 5,546 | $ 6,015 |
Other comprehensive income (loss), net of tax: | |||
Net unrealized gains (losses) on securities available for sale | 1,259 | 650 | (459) |
Net unrealized gains (losses) on hedging relationships | 1,008 | 772 | (74) |
Foreign currency translation adjustments | 76 | 70 | (39) |
Net changes in securities held to maturity | 0 | 26 | 447 |
Other | 3 | 13 | (11) |
Other comprehensive income (loss), net of tax | 2,346 | 1,531 | (136) |
Comprehensive income | $ 5,060 | $ 7,077 | $ 5,879 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 4,708 | $ 4,129 |
Interest-bearing deposits and other short-term investments | 35,801 | 9,278 |
Total cash and cash equivalents | 40,509 | 13,407 |
Restricted cash for securitization investors | 262 | 342 |
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 100,445 | 79,213 |
Loans held for investment: | ||
Total loans held for investment | 251,624 | 265,809 |
Allowance for credit losses | (15,564) | (7,208) |
Net loans held for investment | 236,060 | 258,601 |
Loans held for sale ($596 million and $251 million carried at fair value at December 31, 2020 and 2019, respectively) | 2,710 | 400 |
Premises and equipment, net | 4,287 | 4,378 |
Interest receivable | 1,471 | 1,758 |
Goodwill | 14,653 | 14,653 |
Other assets | 21,205 | 17,613 |
Total assets | 421,602 | 390,365 |
Liabilities: | ||
Interest payable | 352 | 439 |
Deposits: | ||
Non-interest-bearing deposits | 31,142 | 23,488 |
Interest-bearing deposits | 274,300 | 239,209 |
Total deposits | 305,442 | 262,697 |
Securitized debt obligations | 12,414 | 17,808 |
Other debt: | ||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 668 | 314 |
Senior and subordinated notes | 27,382 | 30,472 |
Other borrowings | 75 | 7,103 |
Total other debt | 28,125 | 37,889 |
Other liabilities | 15,065 | 13,521 |
Total liabilities | 361,398 | 332,354 |
Commitments, contingencies and guarantees (see Note 18) | ||
Stockholders’ equity: | ||
Preferred stock (par value $0.01 per share; 50,000,000 shares authorized; 4,975,000 shares issued and outstanding as of both December 31, 2020 and 2019) | 0 | 0 |
Common stock (par value $0.01 per share; 1,000,000,000 shares authorized; 679,932,837 and 672,969,391 shares issued as of December 31, 2020 and 2019, respectively; 458,972,202 and 456,562,399 shares outstanding as of December 31, 2020 and 2019, respectively) | 7 | 7 |
Additional paid-in capital, net | 33,480 | 32,980 |
Retained earnings | 40,088 | 40,340 |
Accumulated other comprehensive income | 3,494 | 1,156 |
Treasury stock, at cost (par value $0.01 per share; 220,960,635 and 216,406,992 shares as of December 31, 2020 and 2019, respectively) | (16,865) | (16,472) |
Total stockholders’ equity | 60,204 | 58,011 |
Total liabilities and stockholders’ equity | 421,602 | 390,365 |
Unsecuritized loans held for investment | ||
Cash and cash equivalents: | ||
Total cash and cash equivalents | 12,976 | 13,050 |
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 622 | 738 |
Loans held for investment: | ||
Total loans held for investment | 225,698 | 231,992 |
Other assets | 1,473 | 1,017 |
Total assets | 83,061 | 80,336 |
Other debt: | ||
Senior and subordinated notes | 22,037 | 22,080 |
Other liabilities | 820 | 245 |
Total liabilities | 22,857 | 22,325 |
Stockholders’ equity: | ||
Total stockholders’ equity | 60,204 | 58,011 |
Total liabilities and stockholders’ equity | 83,061 | 80,336 |
Loans held in consolidated trusts | ||
Loans held for investment: | ||
Total loans held for investment | 25,926 | 33,817 |
Total assets | 26,619 | 35,519 |
Other debt: | ||
Total liabilities | $ 12,436 | $ 18,201 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Securities available for sale, amortized cost | $ 97,569 | $ 77,984 |
Securities available for sale, allowance for credit loss | 1 | |
Loans held for sale | $ 596 | $ 251 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 4,975,000 | 4,975,000 |
Preferred stock, shares outstanding | 4,975,000 | 4,975,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 679,932,837 | 672,969,391 |
Common stock, shares outstanding | 458,972,202 | 456,562,399 |
Treasury stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Treasury stock, shares | 220,960,635 | 216,406,992 |
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 | Cumulative effects from adoption of new accounting standards | Cumulative effects from adoption of new accounting standardsRetained Earnings | Cumulative effects from adoption of new accounting standardsAccumulated Other Comprehensive Income (Loss) | |
Beginning balance (shares) at Dec. 31, 2017 | 4,475,000 | 661,724,927 | |||||||||
Beginning balance at Dec. 31, 2017 | $ 48,730 | $ 0 | $ 7 | $ 31,656 | $ 30,700 | $ (926) | $ (12,707) | $ 0 | $ 201 | $ (201) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive income | 5,879 | 6,015 | (136) | ||||||||
Dividends, common stock (shares) | [1] | 35,813 | |||||||||
Dividends, common stock | [1] | (773) | $ 0 | 3 | (776) | ||||||
Dividends, preferred stock | (265) | (265) | |||||||||
Purchases of treasury stock | (2,284) | (2,284) | |||||||||
Issuances of common stock and restricted stock, net of forfeitures (shares) | 4,183,783 | ||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 175 | $ 0 | 175 | ||||||||
Exercises of stock options (shares) | 2,024,546 | ||||||||||
Exercises of stock options | 38 | $ 0 | 38 | ||||||||
Compensation expense for restricted stock units and stock options | 168 | 168 | |||||||||
Ending balance (shares) at Dec. 31, 2018 | 4,475,000 | 667,969,069 | |||||||||
Ending balance at Dec. 31, 2018 | 51,668 | $ 0 | $ 7 | 32,040 | 35,875 | (1,263) | (14,991) | (11) | (11) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Comprehensive income | 7,077 | 5,546 | 1,531 | ||||||||
Dividends, common stock (shares) | [1] | 49,963 | |||||||||
Dividends, common stock | [1] | (753) | $ 0 | 4 | (757) | ||||||
Dividends, preferred stock | (282) | (282) | |||||||||
Purchases of treasury stock | (1,481) | (1,481) | |||||||||
Issuances of common stock and restricted stock, net of forfeitures (shares) | 4,678,940 | ||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 199 | $ 0 | 199 | ||||||||
Exercises of stock options (shares) | 271,419 | ||||||||||
Exercises of stock options | 17 | $ 0 | 17 | ||||||||
Issuances of preferred stock (shares) | 1,500,000 | ||||||||||
Issuances of preferred stock | 1,462 | $ 0 | 1,462 | ||||||||
Redemptions of preferred stock (shares) | (1,000,000) | ||||||||||
Redemptions of preferred stock | (1,000) | $ 0 | (969) | (31) | |||||||
Compensation expense for restricted stock units and stock options | 227 | 227 | |||||||||
Ending balance (shares) at Dec. 31, 2019 | 4,975,000 | 672,969,391 | |||||||||
Ending balance at Dec. 31, 2019 | 58,011 | $ 0 | $ 7 | 32,980 | 40,340 | 1,156 | (16,472) | $ (2,192) | $ (2,184) | $ (8) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Effects from transfer of securities held to maturity to available for sale | 888 | 888 | |||||||||
Comprehensive income | 5,060 | 2,714 | 2,346 | ||||||||
Dividends, common stock (shares) | [1] | 32,466 | |||||||||
Dividends, common stock | [1] | (460) | $ 0 | 3 | (463) | ||||||
Dividends, preferred stock | (280) | (280) | |||||||||
Purchases of treasury stock | (393) | (393) | |||||||||
Issuances of common stock and restricted stock, net of forfeitures (shares) | 5,539,010 | ||||||||||
Issuances of common stock and restricted stock, net of forfeitures | 241 | $ 0 | 241 | ||||||||
Exercises of stock options (shares) | 1,391,970 | ||||||||||
Exercises of stock options | 62 | $ 0 | 62 | ||||||||
Issuances of preferred stock (shares) | 1,375,000 | ||||||||||
Issuances of preferred stock | 1,330 | $ 0 | 1,330 | ||||||||
Redemptions of preferred stock (shares) | (1,375,000) | ||||||||||
Redemptions of preferred stock | (1,375) | $ 0 | (1,336) | (39) | |||||||
Compensation expense for restricted stock units and stock options | 200 | 200 | |||||||||
Ending balance (shares) at Dec. 31, 2020 | 4,975,000 | 679,932,837 | |||||||||
Ending balance at Dec. 31, 2020 | $ 60,204 | $ 0 | $ 7 | $ 33,480 | $ 40,088 | $ 3,494 | $ (16,865) | ||||
[1] | We declared dividends per share on our common stock of $0.40 in both of the first two quarters and $0.10 in both of the latter two quarters of 2020 and $0.40 in each quarter of 2019 and 2018. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||||||||
Dividend per share on common stock declared (in dollars per share) | $ 0.10 | $ 0.10 | $ 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Income from continuing operations, net of tax | $ 2,717 | $ 5,533 | $ 6,025 |
Income (loss) from discontinued operations, net of tax | (3) | 13 | (10) |
Net income | 2,714 | 5,546 | 6,015 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Provision for credit losses | 10,264 | 6,236 | 5,856 |
Depreciation and amortization, net | 3,501 | 3,339 | 2,396 |
Deferred tax provision (benefit) | (1,627) | (296) | 714 |
Net securities losses (gains) | (25) | (26) | 209 |
Gain on sales of loans | (6) | (50) | (548) |
Stock-based compensation expense | 203 | 239 | 170 |
Other (including unrealized gains from equity investments) | (520) | 0 | (125) |
Loans held for sale: | |||
Originations and purchases | (10,055) | (9,798) | (9,039) |
Proceeds from sales and paydowns | 9,856 | 10,668 | 8,442 |
Changes in operating assets and liabilities: | |||
Changes in interest receivable | 287 | (63) | (74) |
Changes in other assets | 979 | 662 | 476 |
Changes in interest payable | (87) | (19) | 45 |
Changes in other liabilities | 1,212 | 194 | (1,553) |
Net change from discontinued operations | 3 | 7 | (6) |
Net cash from operating activities | 16,699 | 16,639 | 12,978 |
Securities available for sale: | |||
Purchases | (43,026) | (12,105) | (14,022) |
Proceeds from paydowns and maturities | 22,324 | 8,553 | 7,510 |
Proceeds from sales | 812 | 4,780 | 6,399 |
Securities held to maturity: | |||
Purchases | 0 | (396) | (19,166) |
Proceeds from paydowns and maturities | 0 | 5,050 | 2,419 |
Loans: | |||
Net changes in loans held for investment | 4,136 | (21,280) | 1,015 |
Principal recoveries of loans previously charged off | 2,452 | 2,557 | 2,503 |
Net purchases of premises and equipment | (710) | (887) | (874) |
Net cash from acquisition activities | (7) | (8,393) | (600) |
Net cash from other investing activities | (822) | (877) | (802) |
Net cash from investing activities | (14,841) | (22,998) | (15,618) |
Financing activities: | |||
Changes in deposits | 42,519 | 12,643 | 6,077 |
Issuance of securitized debt obligations | 1,248 | 6,656 | 997 |
Maturities and paydowns of securitized debt obligations | (6,885) | (7,285) | (2,673) |
Issuance of senior and subordinated notes and long-term FHLB advances | 3,987 | 4,142 | 5,977 |
Maturities and paydowns of senior and subordinated notes and long-term FHLB advances | (8,156) | (5,595) | (14,163) |
Changes in other borrowings | (6,674) | (2,104) | 8,671 |
Common stock: | |||
Net proceeds from issuances | 241 | 199 | 175 |
Dividends paid | (460) | (753) | (773) |
Preferred stock: | |||
Net proceeds from issuances | 1,330 | 1,462 | 0 |
Dividends paid | (280) | (282) | (265) |
Redemptions | (1,375) | (1,000) | 0 |
Purchases of treasury stock | (393) | (1,481) | (2,284) |
Proceeds from share-based payment activities | 62 | 17 | 38 |
Net cash from financing activities | 25,164 | 6,619 | 1,777 |
Changes in cash, cash equivalents and restricted cash for securitization investors | 27,022 | 260 | (863) |
Cash, cash equivalents and restricted cash for securitization investors, beginning of the period | 13,749 | 13,489 | 14,352 |
Cash, cash equivalents and restricted cash for securitization investors, end of the period | 40,771 | 13,749 | 13,489 |
Non-cash items: | |||
Net transfers from (to) loans held for investment to (from) loans held for sale | 2,192 | 1,589 | 855 |
Transfers from securities held to maturity to securities available for sale | 0 | 33,187 | 0 |
Interest paid | 3,580 | 4,790 | 3,933 |
Income tax paid | $ 988 | $ 626 | $ 407 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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 digital channels, branches, Cafés and other distribution channels. As of December 31, 2020, 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 types 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 17—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 the 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 which we do not hold a controlling financial interest but 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 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 is applied). 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 is deemed the primary beneficiary of a VIE 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 5—Variable Interest Entities and Securitizations” for further details. Balance Sheet Offsetting of Financial Assets and Liabilities Derivative contracts that we execute bilaterally in the over-the-counter (“OTC”) market or are centrally cleared are generally 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. See “Note 9—Derivative Instruments and Hedging Activities” for more details. We also elect to present securities purchased or sold under resale or repurchase agreements on a net basis when a legally enforceable master netting agreement exists and other applicable criteria are met. Security collateral received from or pledged to the counterparties are not eligible for netting and are presented gross in our consolidated balance sheet. See “Note 8—Deposits and Borrowings” and “Note 9—Derivative Instruments and Hedging Activities” for more 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 8—Deposits and Borrowings” for further details. Significant Accounting Policies Impacted by our Adoption of the CECL Standard In the first quarter of 2020, we adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL standard”) and updated the significant accounting policies described under the "Investment Securities" and "Loans" sections below. 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. On December 31, 2019, we transferred our entire portfolio of held to maturity securities to available for sale. We did not have any securities that were classified as held to maturity as of December 31, 2020 and 2019. We report securities available for sale on our consolidated balance sheets at fair value. The amortized cost of investment securities reflects the amount for which the security was acquired, adjusted for accrued interest, amortization of premiums, discounts, and net deferred fees and costs, any applicable fair value hedge accounting adjustments, collection of cash, and charge-offs. We elect to present accrued interest for securities available for sale within interest receivable on our consolidated balance sheets. Unrealized gains or losses are recorded, net of tax, as a component of accumulated other comprehensive income (“AOCI”). Unamortized premiums, discounts and other basis adjustments for available for sale securities are generally recognized in interest income over the contractual lives of the securities using the effective interest method. However, premiums on certain callable investment securities are amortized to the earliest call date. We record purchases and sales of investment securities available for sale 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. We elect to present accrued interest for securities available for sale within interest receivable on our consolidated balance sheets. An individual debt security is impaired when the fair value of the security is less than its amortized cost. 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, any allowance for credit losses is reversed through our provision for credit losses and the difference between the amortized cost basis of the security and its fair value is recognized in our consolidated statements of income. For impaired debt securities that we have both the intent and ability to hold, the securities are evaluated to determine if a credit loss exists. The allowance for credit losses on our investment securities is recognized through our provision for credit losses and limited by the unrealized losses of a security measured as the difference between the security’s amortized cost and fair value. See further discussion below under the “Allowance for Credit Losses - Available for Sale Investment Securities” section of this Note. Our investment portfolio also includes certain debt securities that, at the time of purchase, had experienced a more-than-insignificant deterioration in credit quality since origination. Such debt securities are accounted for in accordance with accounting guidance for purchased financial assets with credit deterioration and are herein referred to as purchased credit-deteriorated (“PCD”) securities. PCD securities require the recognition of an allowance for credit losses at the time of acquisition. The allowance for credit losses is not recognized in provision for credit losses. Instead, the purchase price and the initial allowance collectively represent the amortized cost basis of a PCD security. Any non-credit discount or premium at the date of acquisition is amortized into interest income over the remaining life of the security. Subsequent to the date of purchase, we remeasure the allowance for credit losses on the amortized cost basis using the same policies as for other debt securities available for sale and changes are recognized through our provision for credit losses. See further discussion below under the “Allowance for Credit Losses - Available for Sale Investment Securities” section of this Note. We charge off any portion of an investment security that we determine is uncollectible. The amortized cost basis, excluding accrued interest, is charged off through the allowance for credit losses. Accrued interest is charged off as a reduction to interest income. Recoveries of previously charged off principal amounts are recognized in our provision for credit losses when received. Allowance for Credit Losses - Available for Sale Investment Securities We maintain an allowance for credit losses (“allowance”) that represents management’s current estimate of expected credit losses over the contractual terms of our investment securities classified as available for sale. When an investment security available for sale is impaired due to credit factors, we recognize a provision for credit losses in our consolidated statements of income and an allowance for credit losses on our consolidated balance sheets. Credit losses recognized in the allowance for credit losses are limited to the amount by which the investment security’s amortized cost basis exceeds its fair value. Investment securities in unrealized gain positions do not have an allowance for credit losses as the investment security could be sold at its fair value to prevent realization of credit losses. We exclude accrued interest from the fair value and amortized cost basis of an investment security for purposes of measuring impairment. Charge-offs of uncollectible amounts of investment securities are deducted from the allowance for credit losses. For certain of our securities available for sale, we have determined that there is no risk of impairment due to credit factors. These investment securities include high quality debt instruments that are issued and guaranteed by the United States government and its agencies or are issued through certain government-sponsored enterprises. Management performs periodic assessments to reevaluate this conclusion by considering any changes in historical losses, current conditions, and reasonable and supportable forecasts. We evaluate impairment on a quarterly basis at the individual security level and determine whether any portion of the decline in fair value is due to a credit loss. We make this determination through the use of quantitative and qualitative analyses. Our qualitative analysis includes factors such as the extent to which fair value is less than amortized cost, any changes in the security’s credit rating, past defaults or delayed payments, and adverse conditions impacting the security or issuer. A credit loss exists to the extent that management does not expect to recover the amortized cost basis. For investment securities which require further assessment, we perform a quantitative analysis using a discounted cash flow methodology and compare the present value of expected future cash flows from the security available for sale to the security’s amortized cost basis. Projected future cash flows reflect management’s best estimate and are based on our understanding of past events, current conditions, reasonable and supportable forecasts, and are discounted by the security’s effective interest rate adjusted for prepayments. The allowance for credit losses for investment securities reflects the difference by which the amortized cost basis exceeds the present value of future cash flows and is limited to the amount by which the security’s amortized cost exceeds its fair value. See “Note 2—Investment Securities” for additional information. 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. Commercial banking loans consist of commercial and multifamily real estate loans as well as commercial and industrial loans. Loan Classification 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 we elect the fair value option, whether the loans are originated or purchased and whether purchased loans are considered to have experienced a more-than-insignificant deterioration in credit quality since origination. The presentation within the consolidated statements of cash flows is based on management’s intent at acquisition or origination. Cash flows related to loans that are acquired or originated with the intent to hold for investment are included in cash flows from investing activities on our consolidated statements of cash flows. Cash flows related to loans that are acquired or originated with the intent to sell 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 for credit card loans, are reported at their amortized cost basis, excluding accrued interest. For these loans, we elect to present accrued interest within interest receivable on our consolidated balance sheets. For credit card loans, billed finance charges and fees are included in loans held for investment. Unbilled finance charges and fees on credit card loans are included in interest receivable. Interest income is recognized on performing loans 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. The amortized cost of loans held for investment is subject to our allowance for credit losses methodology described below under the “Allowance for Credit Losses - Loans Held for Investment” section of this Note. Loans Held for Sale Loans that we intend 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. Multifamily commercial real estate loans originated with the intent to sell to government-sponsored enterprises are accounted for under the fair value option. We elect the fair value option on these loans as part of our management of interest rate risk along with the corresponding forward sale commitments. Loan origination fees and direct loan origination costs are recognized as incurred and are reported in other non-interest income in the consolidated statements of income. Interest income is calculated based on the loan's stated rate of interest and is reported in interest income in the consolidated statements of income. Fair value adjustments are recorded in other non-interest income in the consolidated statements of income. All other loans classified as held for sale 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. Fair value adjustments are recorded in other non-interest income in the consolidated statements of income. If a loan is transferred from held for investment to held for sale, then on the transfer date, any decline in fair value related to credit is recorded as a charge-off and any allowance for credit losses is reversed through our provision for credit losses. The loan is then reclassified to held for sale at its amortized cost at the date of the transfer. A valuation allowance is established, if needed, such that the loan held for sale is recorded at the lower of cost or fair value. 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 historical payment trends, forecasted default rates and loss severities and other relevant factors. The difference between the fair value and the contractual cash flows is recorded as a loan premium or discount, which may relate to either credit or non-credit factors, at acquisition. We account for purchased loans under the accounting guidance for purchased financial assets with credit deterioration when, at the time of purchase, the loans have experienced a more-than-insignificant deterioration in credit quality since origination. We also account for loans under this guidance when the loans were previously accounted for under the accounting guidance for purchased credit impaired loans and debt securities (“PCI”) prior to our adoption of the CECL standard. We refer to these loans which are accounted for under accounting guidance for purchased financial assets with more-than-insignificant deterioration in credit quality since origination as “PCD loans”. We recognize an allowance for credit losses on purchased loans that have not experienced a more-than-insignificant deterioration in credit quality since origination at the time of purchase through earnings in a manner that is consistent with originated loans. The policies relating to the allowance for credit losses on loans is described below in the “Allowance for Credit Losses - Loans Held for Investment” section of this Note. 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, if any. Our loan modifications typically include short-term payment deferrals, an extension of the loan term, a reduction in the interest rate, a reduction in the loan balance, or a combination of these concessions. 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”). See “Note 3—Loans” for additional information on our loan modifications and restructurings, including those in response to the COVID-19 pandemic. 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. For loan modifications, delinquency and nonaccrual status are reported in accordance with the revised terms of the loans. 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. 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 in 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. 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 deferred loan fees, costs, premiums and discounts is suspended. Interest and fee income are 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. Charge-Offs We charge off loans when we determine that the loan is uncollectible. The amortized cost basis, excluding accrued interest, is charged off as a reduction to the allowance for credit losses based on the time frames presented below. Accrued interest on loans other than credit card loans determined to be uncollectible is reversed as a reduction of interest income when the loan is classified as nonperforming. For credit card loans, accrued interest is charged off simultaneously with the charge off of other components of amortized cost and as a reduction of interest income. When received, recoveries of previously charged off amounts are recorded as an increase to the allowance for credit losses (see the “Allowance for Credit Losses - Loans Held for Investment” section of this Note for information on how we account for expected recoveries). 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 generally charged off 5 days after 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 period for auto loans is 120 days past due. Small business banking loans generally charge off at 120 days past due based on the date the amortized cost basis is deemed uncollectible. Auto loans that have not been previously charged off 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 loans that have not been previously 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 amortized cost basis is uncollectible. Allowance for Credit Losses - Loans Held for Investment We maintain an allowance for credit losses (“allowance”) that represents management’s current estimate of expected credit losses over the contractual terms of our loans held for investment. We measure the allowance on a quarterly basis through consideration of past events, including historical experience, current conditions and reasonable and supportable forecasts. We measure current expected credit losses over the contractual terms of our loans. The contractual terms are adjusted for expected prepayments but are not extended for renewals or extensions, except when an extension or renewal arises from a borrower option that is not unconditionally cancellable or through a TDR that is reasonably expected to occur. We aggregate loans sharing similar risk characteristics into pools for purposes of measuring expected credit losses. Pools are reassessed periodically to confirm that all loans within each pool continue to share similar risk characteristics. Expected credit losses for loans that do not share similar risk characteristics with other financial assets are measured individually. Expected recoveries of amounts previously charged off or expected to be charged off are recognized within the allowance, with a corresponding reduction to our provision for credit losses. At times expected recoveries may result in a negative allowance. We limit the allowance to amounts previously charged off and expected to be charged off. Charge-offs of uncollectible amounts result in a reduction to the allowance and recoveries of previously charged o |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | NOTE 2—INVESTMENT SECURITIES Our investment securities portfolio consists of the following: U.S. government-sponsored enterprise or agency (“Agency”) and non-agency residential mortgage-backed securities (“RMBS”), Agency commercial mortgage-backed securities (“CMBS”), U.S. Treasury securities 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 Agency and U.S. Treasury securities represented 96% of our total investment securities portfolio as of both December 31, 2020 and 2019. In the first quarter of 2020, we adopted the CECL standard which resulted in an increase of the amortized cost basis and related allowance for credit losses of PCD securities classified as available for sale. The allowance for credit losses for these PCD securities is limited to the amount by which the amortized cost basis of the security exceeds its fair value. This limitation resulted in an increase of $11 million to our retained earnings with a corresponding decrease in AOCI at adoption. Our disclosures below reflect these adoption changes. Prior period presentation was not reclassified to conform to the current period presentation. See “Note 1—Summary of Significant Accounting Policies” for additional information. The table below presents the amortized cost, gross unrealized gains and losses, and fair value of securities available for sale as of December 31, 2020 and 2019. Accrued interest receivable of $230 million as of December 31, 2020 is not included in the below table. Table 2.1: Investment Securities Available for Sale December 31, 2020 (Dollars in millions) Amortized Allowance Gross Gross Fair Investment securities available for sale: U.S. Treasury securities $ 9,302 $ 0 $ 16 $ 0 $ 9,318 RMBS: Agency 73,248 0 2,326 (108) 75,466 Non-agency 1,035 (1) 204 (1) 1,237 Total RMBS 74,283 (1) 2,530 (109) 76,703 Agency CMBS 11,298 0 448 (11) 11,735 Other securities (1) 2,686 0 3 0 2,689 Total investment securities available for sale $ 97,569 $ (1) $ 2,997 $ (120) $ 100,445 December 31, 2019 (Dollars in millions) Amortized Gross Gross Fair Investment securities available for sale: U.S. Treasury securities $ 4,122 $ 6 $ (4) $ 4,124 RMBS: Agency 62,003 1,120 (284) 62,839 Non-agency 1,235 266 (2) 1,499 Total RMBS 63,238 1,386 (286) 64,338 Agency CMBS 9,303 165 (42) 9,426 Other securities (1) 1,321 4 0 1,325 Total investment securities available for sale $ 77,984 $ 1,561 $ (332) $ 79,213 __________ (1) Includes $1.8 billion and $117 million of asset-backed securities (“ABS”) as of December 31, 2020, and 2019, respectively. The remaining amount is primarily comprised of supranational bonds and foreign government bonds. Investment Securities in a Gross Unrealized Loss Position The table below provides the gross unrealized losses and fair value of our securities available for sale aggregated by major security type and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2020 and 2019. The amounts as of December 31, 2020 only include securities available for sale without an allowance for credit losses. Table 2.2: Securities in a Gross Unrealized Loss Position December 31, 2020 Less than 12 Months 12 Months or Longer Total (Dollars in millions) Fair Value Gross Fair Value Gross Fair Value Gross Investment securities available for sale without an allowance for credit losses: U.S. Treasury securities $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 RMBS: Agency 7,424 (57) 1,791 (51) 9,215 (108) Non-agency 12 0 0 0 12 0 Total RMBS 7,436 (57) 1,791 (51) 9,227 (108) Agency CMBS 1,545 (7) 267 (4) 1,812 (11) Other securities (1) 114 0 1 0 115 0 Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses (2) $ 9,095 $ (64) $ 2,059 $ (55) $ 11,154 $ (119) December 31, 2019 Less than 12 Months 12 Months or Longer Total (Dollars in millions) Fair Value Gross Fair Value Gross Fair Value Gross Investment securities available for sale: U.S. Treasury securities $ 2,647 $ (4) $ 0 $ 0 $ 2,647 $ (4) RMBS: Agency 10,494 (92) 10,567 (192) 21,061 (284) Non-agency 35 (1) 16 (1) 51 (2) Total RMBS 10,529 (93) 10,583 (193) 21,112 (286) Agency CMBS 2,580 (23) 1,563 (19) 4,143 (42) Other securities (1) 126 0 106 0 232 0 Total investment securities available for sale in a gross unrealized loss position $ 15,882 $ (120) $ 12,252 $ (212) $ 28,134 $ (332) __________ (1) Includes primarily other asset-backed securities, foreign government bonds, and supranational bonds. (2) Consists of approxima tely 320 se cur ities in gross unrealized loss positions as of December 31, 2020. 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, 2020. 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 2.3: Contractual Maturities and Weighted-Average Yields of Securities December 31, 2020 (Dollars in millions) Due in Due > 1 Year Due > 5 Years Due > 10 Years Total Fair value of securities available for sale: U.S. Treasury securities $ 202 $ 9,116 $ 0 $ 0 $ 9,318 RMBS (1) : Agency 0 65 1,175 74,226 75,466 Non-agency 0 0 0 1,237 1,237 Total RMBS 0 65 1,175 75,463 76,703 Agency CMBS (1) 90 2,896 5,645 3,104 11,735 Other securities 340 2,073 276 0 2,689 Total securities available for sale $ 632 $ 14,150 $ 7,096 $ 78,567 $ 100,445 Amortized cost of securities available for sale $ 628 $ 14,091 $ 6,860 $ 75,990 $ 97,569 Weighted-average yield for securities available for sale 1.43 % 0.74 % 1.76 % 2.20 % 1.96 % __________ (1) As of December 31, 2020, the weighted-average expected maturities of RMBS and Agency CMBS are 4.0 years and 5.6 years, respectively. Net Securities Gains or Losses and Proceeds from Sales The following table presents the gross realized gains or losses and proceeds from the sale of securities available for sale for the years ended December 31, 2020, 2019 and 2018. We did not sell any investment securities that were classified as held to maturity in those periods where we had securities in that classification. Table 2.4: Realized Gains and Losses on Securities Year Ended December 31, (Dollars in millions) 2020 2019 2018 Realized gains (losses): Gross realized gains $ 25 $ 44 $ 13 Gross realized losses 0 (18) (21) Net realized gains (losses) $ 25 $ 26 $ (8) Total proceeds from sales $ 812 $ 4,780 $ 6,399 Securities Pledged and Received We pledged investment securities totaling $16.5 billion and $14.0 billion as of December 31, 2020 and 2019, respectively. These securities are primarily pledged to 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 approximately $1 million as of both December 31, 2020 and 2019, related to our derivative transactions. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans | NOTE 3—LOANS Our loan portfolio consists of loans held for investment, including loans held in our consolidated trusts, and loans held for sale. We further divide our loans held for investment 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. Commercial banking loans consist of commercial and multifamily real estate as well as commercial and industrial loans. We sold all of our consumer home loan portfolio and the related servicing during 2018. The information presented in this section excludes loans held for sale, which are carried at either fair value (if we elect the fair value option) or at the lower of cost or fair value. In the first quarter of 2020, we adopted the CECL standard. Accordingly, our disclosures below reflect these adoption changes. Prior period presentation was not modified to conform to the current period presentation. See “Note 1—Summary of Significant Accounting Policies” for additional information. Amounts as of December 31, 2020 include the impacts of COVID-19 customer assistance programs where applicable. Accrued interest receivable of $1.2 billion as of December 31, 2020 is not included in the tables in this note. The table below presents the composition and aging analysis of our loans held for investment portfolio as of December 31, 2020 and 2019. The delinquency aging includes all past due loans, both performing and nonperforming. Table 3.1: Loan Portfolio Composition and Aging Analysis December 31, 2020 Delinquent Loans (Dollars in millions) Current 30-59 60-89 > 90 Days Total Total Credit Card: Domestic credit card $ 96,116 $ 755 $ 464 $ 1,169 $ 2,388 $ 98,504 International card businesses 8,218 90 58 86 234 8,452 Total credit card 104,334 845 522 1,255 2,622 106,956 Consumer Banking: Auto 62,381 2,252 907 222 3,381 65,762 Retail banking 3,064 28 19 15 62 3,126 Total consumer banking 65,445 2,280 926 237 3,443 68,888 Commercial Banking: Commercial and multifamily real estate 30,340 136 22 183 341 30,681 Commercial and industrial 44,941 69 15 74 158 45,099 Total commercial banking 75,281 205 37 257 499 75,780 Total loans (1) $ 245,060 $ 3,330 $ 1,485 $ 1,749 $ 6,564 $ 251,624 % of Total loans 97.4 % 1.3 % 0.6 % 0.7 % 2.6 % 100.0 % December 31, 2019 Delinquent Loans (Dollars in millions) Current 30-59 60-89 > 90 Days Total PCI Total Credit Card: Domestic credit card $ 113,857 $ 1,341 $ 1,038 $ 2,277 $ 4,656 $ 93 $ 118,606 International card businesses 9,277 133 84 136 353 0 9,630 Total credit card 123,134 1,474 1,122 2,413 5,009 93 128,236 Consumer Banking: Auto 55,778 2,828 1,361 395 4,584 0 60,362 Retail banking 2,658 24 8 11 43 2 2,703 Total consumer banking 58,436 2,852 1,369 406 4,627 2 63,065 Commercial Banking: Commercial and multifamily real estate 30,157 43 20 4 67 21 30,245 Commercial and industrial 44,009 75 26 143 244 10 44,263 Total commercial banking 74,166 118 46 147 311 31 74,508 Total loans (1) $ 255,736 $ 4,444 $ 2,537 $ 2,966 $ 9,947 $ 126 $ 265,809 % of Total loans 96.2 % 1.6 % 1.0 % 1.1 % 3.7 % 0.1 % 100.0 % __________ The following table presents our loans held for investment that are 90 days or more past due that continue to accrue interest and loans that are classified as nonperforming as of December 31, 2020 and 2019. We also present nonperforming loans without an allowance as of December 31, 2020. Nonperforming loans generally include loans that have been placed on nonaccrual status. Table 3.2: 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans December 31, 2020 December 31, 2019 (Dollars in millions) > 90 Days and Accruing Nonperforming Loans (1) Nonperforming > 90 Days and Accruing Nonperforming Credit Card: Domestic credit card $ 1,169 N/A $ 0 $ 2,277 N/A International card businesses 82 $ 21 0 130 $ 25 Total credit card 1,251 21 0 2,407 25 Consumer Banking: Auto 0 294 0 0 487 Retail banking 0 30 0 0 23 Total consumer banking 0 324 0 0 510 Commercial Banking: Commercial and multifamily real estate 51 200 184 0 38 Commercial and industrial 0 450 265 0 410 Total commercial banking 51 650 449 0 448 Total $ 1,302 $ 995 $ 449 $ 2,407 $ 983 % of Total loans held for investment 0.5 % 0.4 % 0.2 % 0.9 % 0.4 % __________ (1) We recognized interest income for loans classified as nonperforming of $39 million for the year ended December 31, 2020. Credit Quality Indicators We closely monitor economic conditions and loan performance trends to assess and manage our exposure to credit risk. We discuss these risks and our credit quality indicator for each portfolio segment below. Credit Card 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 key indicator we assess in monitoring the credit quality and risk of our credit card loan portfolio is delinquency trends, including an analysis of loan migration between delinquency categories over time. The table below presents our credit card portfolio by delinquency status as of December 31, 2020. Table 3.3: Credit Card Delinquency Status December 31, 2020 (Dollars in millions) Revolving Loans Revolving Loans Converted to Term Total Credit Card: Domestic credit card: Current $ 95,629 $ 487 $ 96,116 30-59 days 734 21 755 60-89 days 451 13 464 Greater than 90 days 1,155 14 1,169 Total domestic credit card 97,969 535 98,504 International card businesses: Current 8,152 66 8,218 30-59 days 79 11 90 60-89 days 47 11 58 Greater than 90 days 76 10 86 Total international card businesses 8,354 98 8,452 Total credit card $ 106,323 $ 633 $ 106,956 Consumer Banking Our consumer banking loan portfolio consists of auto and retail banking 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. The key indicator we monitor when assessing the credit quality and risk of our auto loan portfolio is borrower credit scores as they measure the creditworthiness of borrowers. Delinquency trends are the key indicator we assess in monitoring the credit quality and risk of our retail banking loan portfolio. The table below presents our consumer banking portfolio of loans held for investment by credit quality indicator as of December 31, 2020 and 2019. We present our auto loan portfolio by FICO scores at origination and our retail banking loan portfolio by delinquency status, which includes all past due loans, both performing and nonperforming. Table 3.4: Consumer Banking Portfolio by Credit Quality Indicator December 31, 2020 Term Loans by Vintage Year (Dollars in millions) 2020 2019 2018 2017 2016 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total December 31, 2019 Auto — At origination FICO scores: (1) Greater than 660 $ 13,352 $ 8,091 $ 4,675 $ 2,810 $ 1,168 $ 203 $ 30,299 $ 0 $ 0 $ 30,299 $ 28,773 621-660 5,781 3,631 2,003 1,172 488 109 13,184 0 0 13,184 11,924 620 or below 9,550 6,298 3,317 1,985 886 243 22,279 0 0 22,279 19,665 Total auto 28,683 18,020 9,995 5,967 2,542 555 65,762 0 0 65,762 60,362 Retail banking—Delinquency status: Current 1,041 233 206 222 167 537 2,406 651 7 3,064 2,658 30-59 days 0 0 7 1 2 2 12 15 1 28 24 60-89 days 0 0 1 0 5 4 10 8 1 19 8 Greater than 90 days 0 0 0 1 1 4 6 9 0 15 11 Total retail banking (2) 1,041 233 214 224 175 547 2,434 683 9 3,126 2,701 Total consumer banking $ 29,724 $ 18,253 $ 10,209 $ 6,191 $ 2,717 $ 1,102 $ 68,196 $ 683 $ 9 $ 68,888 $ 63,063 __________ (1) Amounts represent period-end loans held for investment in each credit score category. Auto credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category. (2) Includes Paycheck Protection Program (“PPP”) loans of $919 million as of December 31, 2020. Commercial Banking The key credit quality indicator for our commercial loan portfolios is our internal risk ratings. 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 credit 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 our commercial banking portfolio of loans held for investment by internal risk ratings as of December 31, 2020 and 2019. The internal risk rating status includes all past due loans, both performing and nonperforming. Table 3.5: Commercial Banking Portfolio by Internal Risk Ratings December 31, 2020 Term Loans by Vintage Year (Dollars in millions) 2020 2019 2018 2017 2016 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Internal risk rating: (1) Commercial and multifamily real estate Noncriticized $ 3,791 $ 4,932 $ 3,232 $ 1,437 $ 1,649 $ 4,904 $ 19,945 $ 7,114 $ 0 $ 27,059 Criticized performing 320 446 515 355 391 1,258 3,285 112 25 3,422 Criticized nonperforming 0 11 30 6 3 150 200 0 0 200 Total commercial and multifamily real estate 4,111 5,389 3,777 1,798 2,043 6,312 23,430 7,226 25 30,681 Commercial and industrial Noncriticized 9,761 7,890 4,043 2,717 1,832 3,034 29,277 11,548 80 40,905 Criticized performing 316 794 521 252 106 215 2,204 1,498 42 3,744 Criticized nonperforming 74 108 25 51 9 0 267 183 0 450 Total commercial and industrial 10,151 8,792 4,589 3,020 1,947 3,249 31,748 13,229 122 45,099 Total commercial banking (2) $ 14,262 $ 14,181 $ 8,366 $ 4,818 $ 3,990 $ 9,561 $ 55,178 $ 20,455 $ 147 $ 75,780 December 31, 2019 (Dollars in millions) Commercial and Multifamily Real Estate % of Total Commercial and Industrial % of Total Total Commercial Banking % of Total Internal risk rating: (1) Noncriticized $ 29,625 97.9 % $ 42,223 95.4 % $ 71,848 96.5 % Criticized performing 561 1.9 1,620 3.7 2,181 2.9 Criticized nonperforming 38 0.1 410 0.9 448 0.6 PCI loans 21 0.1 10 0.0 31 0.0 Total $ 30,245 100.0 % $ 44,263 100.0 % $ 74,508 100.0 % __________ (1) Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities. (2) Includes PPP loans of $238 million as of December 31, 2020. Revolving Loans Converted to Term Loans For the year ended December 31, 2020, we converted $602 million of revolving loans to term loans, primarily in our domestic credit card and commercial banking loan portfolios. Troubled Debt Restructurings Additional guidance issued by the Federal Banking Agencies and contained in the Coronavirus Aid, Relief, and Economic Security Act provides banking organizations with TDR relief for modifications of current borrowers impacted by the COVID-19 pandemic. In adherence with the guidance, we assessed all loan modifications introduced to current borrowers in response to the COVID-19 pandemic through December 31, 2020, that would have been designated as TDRs under our existing policies, and followed guidance that any such eligible loan modifications made on a temporary and good faith basis are not considered TDRs. We consider the impact of all loan modifications, including those offered via our COVID-19 programs, when estimating the credit quality of our loan portfolio and establishing allowance levels. For our Commercial Banking customers, enrollment in a customer assistance program is also considered in the assignment of an internal risk rating. Total recorded TDRs were $2.1 billion and $1.7 billion as of December 31, 2020 and 2019, respectively. TDRs classified as performing in our credit card and consumer banking loan portfolios totaled $1.3 billion and $1.1 billion as of December 31, 2020 and 2019, respectively. TDRs classified as performing in our commercial banking loan portfolio totaled $442 million and $224 million as of December 31, 2020 and 2019, respectively. Commitments to lend additional funds on loans modified in TDRs totaled $173 million and $178 million as of December 31, 2020 and 2019, 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, amortized cost amounts and financial effects of loans modified in TDRs during the years ended December 31, 2020, 2019 and 2018. Table 3.6: Troubled Debt Restructurings Total Loans Modified (1) Year Ended December 31, 2020 Reduced Interest Rate Term Extension Balance Reduction (Dollars in millions) % of TDR Activity (2) Average Rate Reduction % of TDR Activity (2) Average Term Extension (Months) % of TDR Activity (2) Gross Balance Reduction Credit Card: Domestic credit card $ 243 100 % 15.94 % 0 % 0 0 % $ 0 International card businesses 168 100 27.38 0 0 0 0 Total credit card 411 100 20.61 0 0 0 0 Consumer Banking: Auto 536 11 5.68 95 3 0 1 Retail banking 5 11 10.86 20 8 0 0 Total consumer banking 541 11 5.73 94 3 0 1 Commercial Banking: Commercial and multifamily real estate 98 0 0.00 86 5 0 0 Commercial and industrial 439 4 0.14 52 21 4 7 Total commercial banking 537 3 0.14 58 17 3 7 Total $ 1,489 33 18.06 55 8 1 $ 8 Total Loans Modified (1) Year Ended December 31, 2019 Reduced Interest Rate Term Extension Balance Reduction (Dollars in millions) % of TDR Activity (2) Average Rate Reduction % of TDR Activity (2) Average Term Extension (Months) % of (2) Gross Credit Card: Domestic credit card $ 351 100 % 16.60 % 0 % 0 0 % $ 0 International card businesses 173 100 27.28 0 0 0 0 Total credit card 524 100 20.12 0 0 0 0 Consumer Banking: Auto 268 39 3.63 90 7 1 1 Retail banking 7 11 10.66 54 3 33 0 Total consumer banking 275 38 3.68 89 7 2 1 Commercial Banking: Commercial and multifamily real estate 39 87 0.00 13 1 0 0 Commercial and industrial 159 3 0.33 20 8 0 0 Total commercial lending 198 19 0.04 18 7 0 0 Small-ticket commercial real estate 1 0 0.00 0 0 0 0 Total commercial banking 199 19 0.04 18 7 0 0 Total $ 998 67 16.37 28 7 0 $ 1 Total Loans Modified (1) Year Ended December 31, 2018 Reduced Interest Rate Term Extension Balance Reduction (Dollars in millions) % of TDR Activity (2) Average Rate Reduction % of TDR Activity (2) Average Term Extension (Months) % 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 __________ (1) Represents the amortized cost of total loans modified in TDRs at the end of the period 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 amortized cost 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 3.7: TDRs—Subsequent Defaults Year Ended December 31, 2020 2019 2018 (Dollars in millions) Number of Contracts Amount Number of Contracts Amount Number of Amount Credit Card: Domestic credit card 32,639 $ 69 47,086 $ 99 61,070 $ 126 International card businesses 58,363 87 69,470 110 61,014 106 Total credit card 91,002 156 116,556 209 122,084 232 Consumer Banking: Auto 5,877 77 5,575 70 6,980 79 Home loan 0 0 0 0 3 1 Retail banking 10 1 24 2 26 2 Total consumer banking 5,887 78 5,599 72 7,009 82 Commercial Banking: Commercial and multifamily real estate 1 50 0 0 1 3 Commercial and industrial 15 130 1 25 26 120 Total commercial banking 16 180 1 25 27 123 Total 96,905 $ 414 122,156 $ 306 129,120 $ 437 Loans Pledged We pledged loan collateral of $14.1 billion and $14.6 billion to secure the majority of our FHLB borrowing capacity of $19.6 billion and $18.7 billion as of December 31, 2020 and 2019, respectively. We also pledged loan collateral of $25.5 billion and $6.7 billion to secure our Federal Reserve Discount Window borrowing capacity of $20.0 billion and $5.3 billion as of December 31, 2020 and 2019, respectively. In addition to loans pledged, we have securitized a portion of our credit card and auto loan portfolios. See “Note 5—Variable Interest Entities and Securitizations” for additional information. Loans Held for Sale Our total loans held for sale was $2.7 billion and $400 million as of December 31, 2020 and 2019, respectively. We originated for sale $10.0 billion, $9.0 billion and $8.7 billion of commercial multifamily real estate loans in 2020, 2019 and 2018, respectively. We retained servicing rights upon the sale of these loans. |
Allowance for Credit Losses and
Allowance for Credit Losses and Reserve for Unfunded Lending Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance for Credit Losses | NOTE 4—ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR UNFUNDED LENDING COMMITMENTS In the first quarter of 2020, we adopted the CECL standard. Accordingly, our disclosures below reflect these adoption changes. Prior period presentation was not modified to conform to the current period presentation. See “Note 1—Summary of Significant Accounting Policies” for additional information. Our allowance for credit losses represents management’s current estimate of expected credit losses over the contractual terms of our loans held for investment as of each balance sheet date. Expected recoveries of amounts previously charged off or expected to be charged off are recognized within the allowance. When developing an estimate of expected credit losses, we use both quantitative and qualitative methods in considering all available information relevant to assessing collectability. This may include internal information, external information or a combination of both relating to past events, current conditions, and reasonable and supportable forecasts. Management will consider and may qualitatively adjust for conditions, changes and trends in loan portfolios that may not be captured in modeled results. These adjustments are referred to as qualitative factors and represent management’s judgment of the imprecision and risks inherent in the processes and assumptions used in establishing the allowance for credit losses. Significant judgment is applied in our estimation of lifetime credit losses. For credit card loans, accrued interest is charged off simultaneously with the charge off of other components of amortized cost as a reduction of revenue. Total net revenue was reduced by $1.1 billion in 2020 for finance charges and fees charged-off as uncollectible and by $1.4 billion and $1.3 billion in 2019 and 2018, respectively, for the estimated uncollectible amount of billed finance charges and fees and related losses. We have unfunded lending commitments in our Commercial Banking business that are not unconditionally cancellable by us and for which we estimate expected credit losses in establishing a reserve. This reserve is measured using the same measurement objectives as the allowance for loans held for investment. We build or release the reserve for unfunded lending commitments through 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. Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity The table below summarizes changes in the allowance for credit losses and reserve for unfunded lending commitments by portfolio segment for the years ended December 31, 2020, 2019 and 2018. The allowance balance as of December 31, 2020 reflects the cumulative effects from adoption of the CECL standard and the change to include finance charge and fee reserve in the allowance for credit losses. The reserve for unfunded lending commitments balance as of December 31, 2020 also reflects the cumulative effects from adoption of the CECL standard, including the component of loss sharing agreements with the government-sponsored enterprises (“GSEs”) on multifamily commercial real estate loans that are within the scope of the CECL standard. Our allowance for credit losses increased by $8.4 billion to $15.6 billion as of December 31, 2020 from 2019, primarily driven by the allowance builds in the first and second quarters of 2020 from expectations of economic worsening as a result of the COVID-19 pandemic as well as the adoption of the CECL standard in the first quarter of 2020. Table 4.1: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity (Dollars in millions) Credit Consumer Commercial Other (1) 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 (2) 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)(3) (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 (Dollars in millions) Credit Card Consumer Banking Commercial Banking Total Allowance for loan and lease losses: Balance as of December 31, 2018 $ 5,535 $ 1,048 $ 637 $ 7,220 Charge-offs (6,711) (1,917) (181) (8,809) Recoveries (2) 1,562 970 25 2,557 Net charge-offs (5,149) (947) (156) (6,252) Provision for loan and lease losses 4,992 937 294 6,223 Allowance build (release) for loan and lease losses (157) (10) 138 (29) Other changes (3) 17 0 0 17 Balance as of December 31, 2019 5,395 1,038 775 7,208 Reserve for unfunded lending commitments: Balance as of December 31, 2018 0 4 118 122 Provision for losses on unfunded lending commitments 0 1 12 13 Balance as of December 31, 2019 0 5 130 135 Combined allowance and reserve as of December 31, 2019 $ 5,395 $ 1,043 $ 905 $ 7,343 Allowance for credit losses: Balance as of December 31, 2019 $ 5,395 $ 1,038 $ 775 $ 7,208 Cumulative effects from adoption of the CECL standard 2,241 502 102 2,845 Finance charge and fee reserve reclassification (4) 462 0 0 462 Balance as of January 1, 2020 8,098 1,540 877 10,515 Charge-offs (5,749) (1,534) (394) (7,677) Recoveries (2) 1,479 956 17 2,452 Net charge-offs (4,270) (578) (377) (5,225) Provision for credit losses 7,327 1,753 1,158 10,238 Allowance build for credit losses (5) 3,057 1,175 781 5,013 Other changes (3) 36 0 0 36 Balance as of December 31, 2020 11,191 2,715 1,658 15,564 Reserve for unfunded lending commitments: Balance as of December 31, 2019 0 5 130 135 Cumulative effects from adoption of the CECL standard 0 (5) 42 37 Balance as of January 1, 2020 0 0 172 172 Provision for losses on unfunded lending commitments 0 0 23 23 Balance as of December 31, 2020 0 0 195 195 Combined allowance and reserve as of December 31, 2020 $ 11,191 $ 2,715 $ 1,853 $ 15,759 __________ (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) The amount and timing of recoveries are 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. (3) Represents foreign currency translation adjustments. (4) Concurrent with our adoption of the CECL standard in the first quarter of 2020, we reclassified our finance charge and fee reserve to our allowance for credit losses, with a corresponding increase to credit card loans held for investment. (5) Includes an allowance release of $327 million for a partnership credit card loan portfolio transferred to held for sale in the third quarter of 2020. Credit Card Partnership Loss Sharing Arrangements 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 are netted against our allowance for credit losses. Our methodology for estimating reimbursements is consistent with the methodology we use to estimate the allowance for credit losses on our credit card loan receivables. These expected reimbursements result in reductions to net charge-offs and the 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, 2020, 2019 and 2018. Beginning in 2019, amounts below include the impacts of our loss sharing arrangement on the acquired Walmart portfolio. Table 4.2: Summary of Credit Card Partnership Loss Sharing Arrangements Impacts Year Ended December 31, (Dollars in millions) 2020 2019 2018 Estimated reimbursements from partners, beginning of period (1) $ 2,166 $ 379 $ 380 Amounts due from partners which reduced net charge-offs (959) (600) (382) Amounts estimated to be charged to partners which reduced provision for credit losses 952 1,383 381 Estimated reimbursements from partners, end of period $ 2,159 $ 1,162 $ 379 __________ |
Variable Interest Entities and
Variable Interest Entities and Securitizations | 12 Months Ended |
Dec. 31, 2020 | |
Variable Interest Entities and Securitization [Abstract] | |
Variable Interest Entities and Securitizations | NOTE 5—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 is related to our securitization transactions in which we transfer assets to securitization trusts. We primarily securitize credit card and auto 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, loan receivables and the related allowance for credit losses, which we report on our consolidated balance sheets under restricted cash for securitization investors, loans held in consolidated trusts and allowance for credit 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, 2020 and 2019. We separately present information for consolidated and unconsolidated VIEs. Table 5.1: Carrying Amount of Consolidated and Unconsolidated VIEs December 31, 2020 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) $ 22,066 $ 10,338 $ 0 $ 0 $ 0 Auto loan securitizations 2,360 2,055 0 0 0 Home loan securitizations 0 0 55 0 305 Total securitization-related VIEs 24,426 12,393 55 0 305 Other VIEs: (2) Affordable housing entities 242 17 4,602 1,240 4,602 Entities that provide capital to low-income and rural communities 1,951 26 0 0 0 Other 0 0 436 0 436 Total other VIEs 2,193 43 5,038 1,240 5,038 Total VIEs $ 26,619 $ 12,436 $ 5,093 $ 1,240 $ 5,343 December 31, 2019 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) $ 31,112 $ 16,113 $ 0 $ 0 $ 0 Auto loan securitizations 2,282 2,012 0 0 0 Home loan securitizations 0 0 66 0 352 Total securitization-related VIEs 33,394 18,125 66 0 352 Other VIEs: (2) Affordable housing entities 236 7 4,559 1,289 4,559 Entities that provide capital to low-income and rural communities 1,889 69 0 0 0 Other 0 0 502 0 502 Total other VIEs 2,125 76 5,061 1,289 5,061 Total VIEs $ 35,519 $ 18,201 $ 5,127 $ 1,289 $ 5,413 __________ (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 $596 million of liabilities as of December 31, 2020, and $2.3 billion of assets and $741 million of liabilities as of December 31, 2019. Securitization-Related VIEs In a securitization transaction, assets are transferred to a trust, which generally meets the definition of a VIE. We engage in securitization activities as an issuer and an investor. Our primary securitization issuance activity includes credit card and auto 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. In our multifamily agency business, we originate multifamily commercial real estate loans and transfer them to GSEs who may, in turn, securitize them. We retain the related MSRs and service the transferred loans pursuant to the guidelines set forth by the GSEs. As an investor, we hold primarily RMBS, CMBS, and ABS in our investment securities portfolio, which represent variable interests in the respective securitization trusts from 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. 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. Our maximum exposure to loss as a result of our involvement with these VIEs is the carrying value of the MSRs and investment securities on our consolidated balance sheets as well as our contractual obligations under loss sharing arrangements. See “Note 6—Goodwill and Intangible Assets” for information related to our MSRs associated with these securitizations and “Note 2—Investment Securities” for more information on the securities held in our investment securities portfolio. 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 3—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, 2020 and 2019. Table 5.2: Continuing Involvement in Securitization-Related VIEs (Dollars in millions) Credit Card Auto Mortgages December 31, 2020: Securities held by third-party investors $ 10,361 $ 2,053 $ 790 Receivables in the trust 23,683 2,243 793 Cash balance of spread or reserve accounts 0 10 15 Retained interests Yes Yes Yes Servicing retained Yes Yes No December 31, 2019: Securities held by third-party investors $ 15,798 $ 2,010 $ 962 Receivables in the trust 31,625 2,192 978 Cash balance of spread or reserve accounts 0 7 17 Retained interests Yes Yes Yes Servicing retained Yes Yes No Credit Card Securitizations We securitize a portion of our credit card loans which provides a source of funding for us. Credit card securitizations involve the transfer of credit card receivables 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. Auto Securitizations Similar to our credit card securitizations, we securitize a portion of our auto loans which provides a source of funding for us. Auto securitization involves the transfer of auto loans to securitization trusts. These trusts then issue debt securities collateralized by the transferred loans to third-party investors. We hold certain retained interests and continue to service the loans 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 retain rights to certain future cash flows arising from these securitizations. We do not consolidate the mortgage securitizations because we do not have the power to direct the activities that most significantly impact the economic performance of the trusts, and the right to receive the benefits or the obligation to absorb losses that could potentially be significant to 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 year ended December 31, 2020 and 2019, we recognized amortization of $556 million and $554 million, respectively, and tax credits of $607 million and $610 million, respectively, associated with these investments within income tax provision or benefit. The carrying value of our equity investments in these qualified affordable housing projects was $4.5 billion and $4.4 billion as of December 31, 2020 and 2019, 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 as of both December 31, 2020 and 2019, and is largely expected to be paid from 2021 to 2023. 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 $4.6 billion as of both December 31, 2020 and 2019. 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 $11.0 billion and $10.9 billion as of December 31, 2020 and 2019, 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 consolidate 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 $2.0 billion and $1.9 billion as of December 31, 2020 and 2019, 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 We hold variable interests in other VIEs, including companies that promote renewable energy sources and other equity method investments. We were not required to consolidate these VIEs because we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to these VIEs is limited to the investments on our consolidated balance sheets of $436 million and $502 million as of December 31, 2020 and 2019, respectively. The creditors of the other 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | NOTE 6—GOODWILL AND INTANGIBLE ASSETS The table below presents our goodwill, intangible assets and MSRs as of December 31, 2020 and 2019. Goodwill is presented separately, while intangible assets and MSRs are included in other assets on our consolidated balance sheets. Table 6.1: Components of Goodwill, Intangible Assets and MSRs December 31, 2020 (Dollars in millions) Carrying Amount of Assets Accumulated Amortization Net Carrying Amount Weighted Average Remaining Goodwill $ 14,653 N/A $ 14,653 N/A Intangible assets: Purchased credit card relationship (“PCCR”) intangibles 148 $ (138) 10 6.2 years Other (1) 248 (168) 80 7.3 years Total intangible assets 396 (306) 90 7.1 years Total goodwill and intangible assets $ 15,049 $ (306) $ 14,743 Commercial MSRs (2) $ 542 $ (175) $ 367 December 31, 2019 (Dollars in millions) Carrying Amount of Assets Accumulated Amortization Net Carrying Amount Weighted Average Remaining Goodwill $ 14,653 N/A $ 14,653 N/A Intangible assets: PCCR intangibles 1,932 $ (1,864) 68 3.9 years Other (1) 246 (140) 106 6.7 years Total intangible assets 2,178 (2,004) 174 5.6 years Total goodwill and intangible assets $ 16,831 $ (2,004) $ 14,827 Commercial MSRs (2) $ 555 $ (255) $ 300 __________ (1) Primarily consists of intangibles for sponsorship, customer and merchant relationships, partnership, trade name and other contract intangibles. (2) Commercial MSRs are accounted for under the amortization method on our consolidated balance sheets. We recorded $69 million and $70 million of amortization expense for the years ended December 31, 2020 and 2019, respectively. Goodwill There were no changes in the carrying amount of goodwill by each of our business segments for the year ended December 31, 2020, and the following table presents such changes for the years ended December 31, 2019 and 2018.We did not recognize any goodwill impairment during 2020, 2019 or 2018. Table 6.2: Goodwill by Business Segments (Dollars in millions) Credit Consumer Commercial Banking Total 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 Acquisitions 25 46 36 107 Reductions in goodwill related to divestitures 0 (1) 0 (1) Other adjustments (1) 3 0 0 3 Balance as of December 31, 2019 $ 5,088 $ 4,645 $ 4,920 $ 14,653 Balance as of December 31, 2020 $ 5,088 $ 4,645 $ 4,920 $ 14,653 __________ (1) Represents foreign currency translation adjustments and measurement period adjustments on prior period acquisitions. The goodwill impairment test is performed as of October 1 of each year. An 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. 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. Capital is allocated based on each reporting unit’s specific regulatory capital requirements, economic capital requirements, and underlying risks. Consolidated stockholder’s equity in excess of the sum of all reporting unit’s capital requirements that is not identified for future capital needs, such as dividends, share buybacks, or other strategic initiatives, is allocated to the reporting units and Other category and assumed distributed to equity holders in future periods. Our discounted cash flow analysis requires management to make judgments about future loan and deposit growth, revenue growth, credit losses, and capital rates. The reasonableness of our fair value calculation is assessed by reference to a market-based approach using comparable market multiples and recent market transactions where available. Intangible Assets In connection with our acquisitions, we recorded intangible assets including PCCRs, sponsorships, customer and merchant relationships, partnerships, trade names and other contract intangibles. At acquisition, the PCCRs reflect the estimated value of existing credit card holder relationships. 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, 2020, 2019 and 2018 and the estimated future amortization expense for intangible assets as of December 31, 2020: Table 6.3: Amortization Expense (Dollars in millions) Amortization Actual for the year ended December 31, 2018 $ 174 2019 112 2020 60 Estimated future amounts for the year ending December 31, 2021 20 2022 16 2023 13 2024 10 2025 9 Thereafter 14 Total estimated future amounts $ 82 |
Premises, Equipment and Leases
Premises, Equipment and Leases | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment and Lease Commitments [Abstract] | |
Premises, Equipment and Leases | NOTE 7—PREMISES, EQUIPMENT AND LEASES Premises and Equipment The following table presents our premises and equipment as of December 31, 2020 and 2019. Table 7.1 Components of Premises and Equipment (Dollars in millions) December 31, 2020 December 31, 2019 Land $ 366 $ 382 Buildings and improvements 3,742 3,903 Furniture and equipment 1,973 2,218 Computer software 2,144 1,996 In progress 768 689 Total premises and equipment, gross 8,993 9,188 Less: Accumulated depreciation and amortization (4,706) (4,810) Total premises and equipment, net $ 4,287 $ 4,378 Depreciation and amortization expense was $809 million, $741 million and $728 million for the years ended December 31, 2020, 2019 and 2018, respectively. Leases Our primary involvement with leases is in the capacity as a lessee where we lease premises to support our business. A majority of our leases are operating leases of office space, retail bank branches and Cafés. For real estate leases, we have elected to account for the lease and non-lease components together as a single lease component. Our operating leases expire at various dates through 2071, and many of them require variable lease payments by us, of property taxes, insurance premiums, common area maintenance and other costs. Certain of these leases also have extension or termination options, and we assess the likelihood of exercising such options. If it is reasonably certain that we will exercise the options, then we include the impact in the measurement of our right-of-use assets and lease liabilities. Our right-of-use assets and lease liabilities for operating leases are included in other assets other liabilities The following tables present information about our operating lease portfolio and the related lease costs as of and for the year ended December 31, 2020. Table 7.2 Operating Lease Portfolio (Dollars in millions) December 31, 2020 December 31, 2019 Right-of-use assets $ 1,316 $ 1,433 Lease liabilities 1,688 1,756 Weighted-average remaining lease term 8.7 years 8.9 years Weighted-average discount rate 3.1 % 3.3 % Table 7.3 Total Operating Lease Expense and Other Information Year Ended December 31, (Dollars in millions) 2020 2019 Operating lease cost $ 315 $ 316 Variable lease cost 43 39 Total lease cost 358 355 Sublease income (26) (26) Net lease cost $ 332 $ 329 Cash paid for amounts included in the measurement of lease liabilities $ 325 $ 328 Right-of-use assets obtained in exchange for lease liabilities 180 112 Right-of-use assets recognized upon adoption of new lease standard 0 1,601 The following table presents a maturity analysis of our operating leases and a reconciliation of the undiscounted cash flows to our lease liabilities as of December 31, 2020. Table 7.4 Maturities of Operating Leases and Reconciliation to Lease Liabilities (Dollars in millions) December 31, 2020 2021 $ 296 2022 272 2023 250 2024 216 2025 180 Thereafter 721 Total undiscounted lease payments 1,935 Less: Imputed interest (247) Total lease liabilities $ 1,688 As of December 31, 2020, we had approximately $69 million and $75 million of right-of-use assets and lease liabilities, respectively, for finance leases with a weighted-average remaining lease term of 4.4 years. As of December 31, 2019, we had approximately $96 million and $103 million of right-of-use assets and lease liabilities, respectively, for finance leases with a weighted-average remaining lease term of 5.9 years. These right-of-use assets and lease liabilities are included in premises and equipment, net and other borrowings, respectively, on our consolidated balance sheets. We recognized $24 million and $27 million of total finance lease expense for the years ended December 31, 2020 and 2019, respectively. |
Deposits and Borrowings
Deposits and Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Deposits and Borrowings | NOTE 8—DEPOSITS AND BORROWINGS Our deposits represent our largest source of funding for our assets and operations, which include checking accounts, money market deposits, negotiable order of withdrawals, savings deposits and time deposits. We also 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. Our total short-term borrowings generally consist of federal funds purchased and 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 following tables summarize the components of our deposits, short-term borrowings and long-term debt as of December 31, 2020 and 2019. 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 8.1: Components of Deposits, Short-Term Borrowings and Long-Term Debt (Dollars in millions) December 31, 2020 December 31, 2019 Deposits: Non-interest-bearing deposits $ 31,142 $ 23,488 Interest-bearing deposits (1) 274,300 239,209 Total deposits $ 305,442 $ 262,697 Short-term borrowings: Federal funds purchased and securities loaned or sold under agreements to repurchase $ 668 $ 314 FHLB advances 0 7,000 Total short-term borrowings $ 668 $ 7,314 December 31, 2020 December 31, 2019 (Dollars in millions) Maturity Dates Stated Interest Rates Weighted-Average Interest Rate Carrying Value Carrying Value Long-term debt: Securitized debt obligations 2021-2026 0.51% - 3.01% 1.87 % $ 12,414 $ 17,808 Senior and subordinated notes: Fixed unsecured senior debt (2) 2021-2029 0.80 - 4.75 3.24 21,045 23,302 Floating unsecured senior debt 2021-2023 0.64 - 1.36 0.97 1,609 2,695 Total unsecured senior debt 3.08 22,654 25,997 Fixed unsecured subordinated debt 2023-2026 3.38 - 4.20 3.78 4,728 4,475 Total senior and subordinated notes 27,382 30,472 Other long-term borrowings: Finance lease liabilities 2021-2031 0.68 - 9.91 3.78 75 103 Total other long-term borrowings 75 103 Total long-term debt $ 39,871 $ 48,383 Total short-term borrowings and long-term debt $ 40,539 $ 55,697 __________ (1) Includes $4.2 billion and $6.5 billion of time deposits in denominations in excess of the $250,000 federal insurance limit as of December 31, 2020 and 2019, respectively. (2) Includes $1.6 billion and $1.4 billion of EUR-denominated unsecured notes as of December 31, 2020 and 2019, respectively. The following table presents the carrying value of our interest-bearing time deposits with contractual maturities, securitized debt obligations and other debt by remaining contractual maturity as of December 31, 2020. Table 8.2: Maturity Profile of Borrowings (Dollars in millions) 2021 2022 2023 2024 2025 Thereafter Total Interest-bearing time deposits $ 21,381 $ 6,447 $ 2,212 $ 2,196 $ 385 $ 126 $ 32,747 Securitized debt obligations 2,331 5,635 1,087 1,569 289 1,503 12,414 Federal funds purchased and securities loaned or sold under agreements to repurchase 668 0 0 0 0 0 668 Senior and subordinated notes 3,878 2,488 6,032 4,661 3,488 6,835 27,382 Other borrowings 20 20 18 5 3 9 75 Total $ 28,278 $ 14,590 $ 9,349 $ 8,431 $ 4,165 $ 8,473 $ 73,286 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | NOTE 9—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. We primarily use interest rate and foreign currency derivatives to hedge, but 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. Free-standing derivatives are economic hedges that do not qualify for hedge accounting. We also offer interest rate, commodity, foreign currency derivatives and other contracts as an accommodation to our customers within our Commercial Banking business. We enter into these derivatives with our customers primarily to help them manage their interest rate risks, hedge their energy and other commodities exposures, and manage foreign currency fluctuations. We then enter into derivative contracts with counterparties to economically hedge substantially all 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 in our consolidated statements of income as the earnings effect of the hedged items. Our fair value hedges primarily 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 in 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 foreign currencies. • 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. 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, including making payments due upon maturity of certain derivative instruments. We execute our derivative contracts primarily in OTC markets. We also execute interest rate and commodity futures in the exchange-traded derivative markets. Our OTC derivatives consist of both trades cleared through central counterparty clearinghouses (“CCPs”) and uncleared bilateral contracts. The Chicago Mercantile Exchange (“CME”) and the LCH Group (“LCH”) are our CCPs in our centrally cleared contracts. In our uncleared bilateral contracts, we enter into agreements directly with our derivative counterparties. Counterparty Credit Risk Management We manage the counterparty credit risk associated with derivative instruments by entering into legally enforceable master netting arrangements, where possible, and exchanging 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 and will vary over time as market variables change. 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 our 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 9.3 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 with CCPs as part of our regulatory requirements. 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 and variation margin is exchanged on a daily basis to account for mark-to-market changes in those derivative contracts. For CME and LCH-cleared OTC derivatives, we characterize variation margin cash payments as settlements. Our FCM agreements governing these derivative transactions include provisions that may require us to post additional collateral under certain circumstances. • Bilateral Counterparties : We 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 their derivative contract and close out existing positions. Credit Risk Valuation Adjustments We record counterparty credit valuation adjustments (“CVAs”) on our derivative assets to reflect the credit quality of our counterparties. We consider collateral and legally enforceable master netting agreements that mitigate our credit exposure to each counterparty in determining CVAs, which may be adjusted 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. Balance Sheet Presentation The following table summarizes the notional amounts and fair values of our derivative instruments as of December 31, 2020 and 2019, 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, and their related gains or losses are included in operating activities as changes in other assets and other liabilities in the consolidated statements of cash flows. Table 9.1: Derivative Assets and Liabilities at Fair Value December 31, 2020 December 31, 2019 Notional or Contractual Amount Derivative (1) Notional or Contractual Amount Derivative (1) (Dollars in millions) Assets Liabilities Assets Liabilities Derivatives designated as accounting hedges: Interest rate contracts: Fair value hedges $ 47,349 $ 9 $ 10 $ 57,587 $ 11 $ 55 Cash flow hedges 82,150 748 1 96,900 321 29 Total interest rate contracts 129,499 757 11 154,487 332 84 Foreign exchange contracts: Fair value hedges 1,527 164 0 1,402 0 6 Cash flow hedges 4,582 0 161 6,103 0 113 Net investment hedges 3,116 0 196 2,829 0 102 Total foreign exchange contracts 9,225 164 357 10,334 0 221 Total derivatives designated as accounting hedges 138,724 921 368 164,821 332 305 Derivatives not designated as accounting hedges: Customer accommodation: Interest rate contracts 68,459 1,429 198 62,268 552 117 Commodity contracts 16,871 935 820 15,492 758 694 Foreign exchange and other contracts 4,677 58 70 4,674 39 42 Total customer accommodation 90,007 2,422 1,088 82,434 1,349 853 Other interest rate exposures (2) 1,770 71 56 6,729 48 30 Other contracts 1,826 1 6 1,562 0 9 Total derivatives not designated as accounting hedges 93,603 2,494 1,150 90,725 1,397 892 Total derivatives $ 232,327 $ 3,415 $ 1,518 $ 255,546 $ 1,729 $ 1,197 Less: netting adjustment (3) (1,148) (739) (633) (523) Total derivative assets/liabilities $ 2,267 $ 779 $ 1,096 $ 674 __________ (1) Does not reflect $31 million and $12 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of December 31, 2020 and 2019 , respectively. Non-performance risk is included in derivative assets and liabilities, which are part of other assets and other liabilities on the consolidated balance sheets, and is offset through non-interest income in the consolidated statements of income. (2) Other interest rate exposures include commercial mortgage-related derivatives and interest rate swaps. (3) 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, excluding basis adjustments related to foreign currency risk, as of December 31, 2020 and 2019. Table 9.2: Hedged Items in Fair Value Hedging Relationships December 31, 2020 December 31, 2019 Carrying Amount Assets/(Liabilities) Cumulative Amount of Basis Adjustments Included in the Carrying Amount Carrying Amount Assets/(Liabilities) Cumulative Amount of Basis Adjustments Included in the Carrying Amount (Dollars in millions) Total Assets/(Liabilities) Discontinued-Hedging Relationships 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) $ 9,797 $ 590 $ 200 $ 10,825 $ 300 $ 52 Interest-bearing deposits (11,312) (213) 0 (14,310) (12) 0 Securitized debt obligations (7,609) (171) 20 (9,403) 44 64 Senior and subordinated notes (21,927) (1,282) (666) (27,777) (458) 324 __________ (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. In the second quarter of 2020, we terminated all last of layer hedging relationships with cumulative basis adjustments related to these discontinued hedging relationships totaling $200 million as of December 31, 2020. As of December 31, 2019, the amortized cost basis of this portfolio was $5.9 billion, the amount of the designated hedged items was $3.1 billion, and the cumulative basis adjustment associated with these hedges was $75 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 generally 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 master 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 the gross and net fair values of our derivative assets, derivative liabilities, resale and repurchase agreements and the related offsetting amounts permitted under U.S. GAAP as of December 31, 2020 and 2019. 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 9.3: 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, 2020 Derivative assets (1) $ 3,415 $ (383) $ (765) $ 2,267 $ 0 $ 2,267 As of December 31, 2019 Derivative assets (1) 1,729 (347) (286) 1,096 0 1,096 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, 2020 Derivative liabilities (1) $ 1,518 $ (383) $ (356) $ 779 $ 0 $ 779 Repurchase agreements (2) 668 0 0 668 (668) 0 As of December 31, 2019 Derivative liabilities (1) 1,197 (347) (176) 674 0 674 Repurchase agreements (2) 314 0 0 314 (314) 0 __________ (1) We received cash collateral from derivative counterparties totaling $862 million and $347 million as of December 31, 2020 and 2019 , respectively. We also received securities from derivative counterparties with a fair value of approximately $1 million as of both December 31, 2020 and 2019, which we have the ability to re-pledge. We posted $1.5 billion and $954 million of cash collateral as of December 31, 2020 and 2019, respectively. (2) Under our customer repurchase agreements, which mature the next business day, we pledged collateral with a fair value of $682 million and $320 million as of December 31, 2020 and 2019 , respectively, primarily consisting of 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, 2020, 2019 and 2018. Table 9.4: Effects of Fair Value and Cash Flow Hedge Accounting Year Ended December 31, 2020 Net Interest Income Non-Interest Income (Dollars in millions) Investment Securities Loans, Including Loans Held for Sale Other Interest-bearing Deposits Securitized Debt Obligations Senior and Subordinated Notes Other Total amounts presented in our consolidated statements of income $ 1,877 $ 24,074 $ 82 $ (2,165) $ (232) $ (679) $ 1,325 Fair value hedging relationships: Interest rate and foreign exchange contracts: Interest recognized on derivatives $ (76) $ 0 $ 0 $ 108 $ 125 $ 225 $ 0 Gains (losses) recognized on derivatives (306) 0 0 204 176 950 126 Gains (losses) recognized on hedged items (1) 290 0 0 (203) (212) (904) (125) Excluded component of fair value hedges (2) 0 0 0 0 0 (3) 0 Net income (expense) recognized on fair value hedges $ (92) $ 0 $ 0 $ 109 $ 89 $ 268 $ 1 Cash flow hedging relationships: (3) Interest rate contracts: Realized gains reclassified from AOCI into net income $ 25 $ 541 $ 0 $ 0 $ 0 $ 0 $ 0 Foreign exchange contracts: Realized gains reclassified from AOCI into net income (4) 0 0 10 0 0 0 (1) Net income recognized on cash flow hedges $ 25 $ 541 $ 10 $ 0 $ 0 $ 0 $ (1) Year Ended December 31, 2019 Net Interest Income Non-Interest Income (Dollars in millions) Investment Securities Loans, Including Loans Held for Sale Other Interest-bearing Deposits Securitized Debt Obligations Senior and Subordinated Notes Other Total amounts presented in our consolidated statements of income $ 2,411 $ 25,862 $ 240 $ (3,420) $ (523) $ (1,159) $ 718 Fair value hedging relationships: Interest rate and foreign exchange contracts: Interest recognized on derivatives $ (12) $ 0 $ 0 $ (108) $ (14) $ (6) $ 0 Gains (losses) recognized on derivatives (278) 0 0 263 45 704 (9) Gains (losses) recognized on hedged items (1) 278 0 0 (258) (123) (801) 9 Excluded component of fair value hedges (2) 0 0 0 0 0 (2) 0 Net expense recognized on fair value hedges $ (12) $ 0 $ 0 $ (103) $ (92) $ (105) $ 0 Cash flow hedging relationships: (3) Interest rate contracts: Realized losses reclassified from AOCI into net income $ (8) $ (163) $ 0 $ 0 $ 0 $ 0 $ 0 Foreign exchange contracts: Realized gains reclassified from AOCI into net income (4) 0 0 44 0 0 0 (1) Net income (expense) recognized on cash flow hedges $ (8) $ (163) $ 44 $ 0 $ 0 $ 0 $ (1) Year Ended December 31, 2018 Net Interest Income Non-Interest Income (Dollars in millions) Investment Securities Loans, Including Loans Held for Sale Other Interest-bearing 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 expense recognized on fair value hedges $ (22) $ 0 $ 0 $ (84) $ (76) $ (79) $ 0 Cash flow hedging relationships: (3) Interest rate contracts: Realized 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 (4) 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 $12 million, $171 million and $75 million for the years ended December 31, 2020, 2019 and 2018 respectively, related to basis adjustments on discontinued hedges. (2) Changes in fair values of cross-currency swaps attributable to changes in cross-currency basis spreads are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial value of the excluded component is recognized in earnings over the life of the swap under the amortization approach. (3) See “Note 10—Stockholders’ Equity” for the effects of cash flow and net investment hedges on AOCI and amounts reclassified to net income, net of tax. (4) We recognized a loss of $57 million and $341 million for the years ended December 31, 2020 and 2019, respectively, and a gain of $191 million for the year ended December 31, 2018, on foreign exchange contracts reclassified from AOCI. These amounts were largely offset by the foreign currency transaction gains (losses) on our foreign currency denominated intercompany funding included other non-interest income. In the next 12 months, we expect to reclassify to earnings net after-tax gains of $652 million recorded in AOCI as of December 31, 2020. 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 6 years as of December 31, 2020. 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, 2020, 2019 and 2018. These gains or losses are recognized in other non-interest income in our consolidated statements of income. Table 9.5: Gains (Losses) on Free-Standing Derivatives Year Ended December 31, (Dollars in millions) 2020 2019 2018 Gains (losses) recognized in other non-interest income: Customer accommodation: Interest rate contracts $ 15 $ 48 $ 25 Commodity contracts 32 17 16 Foreign exchange and other contracts 8 13 7 Total customer accommodation 55 78 48 Other interest rate exposures (8) (16) 33 Other contracts (4) (10) (21) Total $ 43 $ 52 $ 60 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 10—STOCKHOLDERS’ EQUITY Preferred Stock The following table summarizes our preferred stock outstanding as of December 31, 2020 and 2019. Table 10.1: Preferred Stock Outstanding (1) Redeemable by Issuer Beginning Per Annum Dividend Rate Dividend Frequency Liquidation Preference per Share Total Shares Outstanding Carrying Value Series Description Issuance Date December 31, 2020 December 31, 2019 Series B (2) 6.000% August 20, 2012 September 1, 2017 6.000% Quarterly $ 1,000 0 $ 0 $ 853 Series E Fixed-to-Floating Rate May 14, 2015 June 1, 2020 5.550% through 5/31/2020; 3-mo. LIBOR + 380 bps thereafter Semi-Annually through 5/31/2020; Quarterly thereafter 1,000 1,000,000 988 988 Series F (3) 6.200% August 24, 2015 December 1, 2020 6.200 Quarterly 1,000 0 0 484 Series G 5.200% July 29, 2016 December 1, 2021 5.200 Quarterly 1,000 600,000 583 583 Series H 6.000% November 29, 2016 December 1, 2021 6.000 Quarterly 1,000 500,000 483 483 Series I 5.000% September 11, 2019 December 1, 2024 5.000 Quarterly 1,000 1,500,000 1,462 1,462 Series J 4.800% January 31, 2020 June 1, 2025 4.800 Quarterly 1,000 1,250,000 1,209 0 Series K 4.625% September 17, 2020 December 1, 2025 4.625 Quarterly 1,000 125,000 122 0 Total $ 4,847 $ 4,853 __________ (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. (2) On March 2, 2020, we redeemed all outstanding shares of our preferred stock Series B. (3) On December 1, 2020, we redeemed all outstanding shares of our preferred stock Series F. Accumulated Other Comprehensive Income AOCI primarily consists of accumulated net unrealized gains or losses associated with securities available for sale, changes in fair value of derivatives in hedging relationships, and foreign currency translation adjustments. The following table includes the AOCI impacts from the adoption of the CECL standard and the changes in AOCI by component for the years ended December 31, 2020, 2019 and 2018. Table 10.2: AOCI (Dollars in millions) Securities Available for Sale Hedging Relationships (1) Foreign Currency Translation Adjustments (2) Securities Held to Maturity Other Total AOCI as of December 31, 2017 $ 17 $ (281) $ (138) $ (524) $ 0 $ (926) Cumulative effects from adoption of new accounting standards 3 (63) 0 (113) (28) (201) Transfer of securities held to maturity to available for sale (3) (325) 0 0 407 0 82 Other comprehensive income (loss) before reclassifications (293) 38 (39) 0 (8) (302) Amounts reclassified from AOCI into earnings 159 (112) 0 40 (3) 84 Other comprehensive income (loss), net of tax (459) (74) (39) 447 (11) (136) AOCI as of December 31, 2018 (439) (418) (177) (190) (39) (1,263) Other comprehensive income before reclassifications 670 414 70 0 17 1,171 Amounts reclassified from AOCI into earnings (20) 358 0 26 (4) 360 Other comprehensive income, net of tax 650 772 70 26 13 1,531 Transfer of securities held to maturity to available for sale, net of tax (4) 724 0 0 164 0 888 AOCI as of December 31, 2019 935 354 (107) 0 (26) 1,156 Cumulative effects from the adoption of the CECL standard (8) 0 0 0 0 (8) Other comprehensive income before reclassifications 1,278 1,401 76 0 5 2,760 Amounts reclassified from AOCI into earnings (19) (393) 0 0 (2) (414) Other comprehensive income, net of tax 1,259 1,008 76 0 3 2,346 AOCI as of December 31, 2020 $ 2,186 $ 1,362 $ (31) $ 0 $ (23) $ 3,494 __________ (1) Includes amounts related to cash flow hedges as well as the excluded component of cross-currency swaps designated as fair value hedges. (2) Includes other comprehensive loss of $65 million, loss of $49 million and gain of $150 million for the years ended December 31, 2020, 2019 and 2018 respectively, from hedging instruments designated as net investment hedges. (3) 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, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This transfer resulted in an after-tax gain of $82 million ($107 million pre-tax) to AOCI. (4) On December 31, 2019, we transferred our entire portfolio of held to maturity securities to available for sale in consideration of changes to regulatory capital requirements under the Tailoring Rules. The following table presents amounts reclassified from each component of AOCI to our consolidated statements of income for the years ended December 31, 2020, 2019 and 2018. Table 10.3: Reclassifications from AOCI (Dollars in millions) Year Ended December 31, AOCI Components Affected Income Statement Line Item 2020 2019 2018 Securities available for sale: Non-interest income $ 25 $ 26 $ (209) Income tax provision 6 6 (50) Net income 19 20 (159) Hedging relationships: Interest rate contracts: Interest income 566 (171) (91) Foreign exchange contracts: Interest income 10 44 47 Interest expense (3) (2) 0 Non-interest income (57) (341) 191 Income from continuing operations before income taxes 516 (470) 147 Income tax provision 123 (112) 35 Net income 393 (358) 112 Securities held to maturity: (1) Interest income 0 (35) (53) Income tax provision 0 (9) (13) Net income 0 (26) (40) Other: Non-interest income and non-interest expense 2 5 4 Income tax provision 0 1 1 Net income 2 4 3 Total reclassifications $ 414 $ (360) $ (84) __________ (1) On December 31, 2019, we transferred our entire portfolio of held to maturity securities to available for sale. The table below summarizes other comprehensive income (loss) activity and the related tax impact for the years ended December 31, 2020, 2019 and 2018. Table 10.4: Other Comprehensive Income (Loss) Year Ended December 31, 2020 2019 2018 (Dollars in millions) Before Provision After Before Provision After Before Provision After Other comprehensive income (loss): Net unrealized gains (loss) on securities available for sale $ 1,659 $ 400 $ 1,259 $ 855 $ 205 $ 650 $ (605) $ (146) $ (459) Net unrealized gains (loss) on hedging relationships 1,329 321 1,008 1,016 244 772 (98) (24) (74) Foreign currency translation adjustments (1) 56 (20) 76 54 (16) 70 9 48 (39) Net changes in securities held to maturity 0 0 0 36 10 26 588 141 447 Other 4 1 3 17 4 13 (15) (4) (11) Other comprehensive income (loss) $ 3,048 $ 702 $ 2,346 $ 1,978 $ 447 $ 1,531 $ (121) $ 15 $ (136) __________ (1) Includes the impact of hedging instruments designated as net investment hedges. |
Regulatory and Capital Adequacy
Regulatory and Capital Adequacy | 12 Months Ended |
Dec. 31, 2020 | |
Mortgage Banking [Abstract] | |
Regulatory and Capital Adequacy | NOTE 11—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 (“OCC”) and Federal Deposit Insurance Corporation (collectively, the “Federal Banking Agencies”), including rules of the Federal Reserve and the OCC “Basel III Capital Rules” to implement certain capital liquidity requirements published by the Basel Committee on Banking Supervision, along with certain Dodd-Frank Act and other provisions. 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. In July 2019, the Federal Banking Agencies finalized certain changes to the Basel III Capital Rules for institutions not subject to the Basel III Advanced Approaches (“Capital Simplification Rule”). These changes, effective January 1, 2020, generally raised the threshold above which a covered institution such as the Company must deduct certain assets from its common equity Tier 1 capital, including certain deferred tax assets, mortgage servicing assets, and investments in unconsolidated financial institutions. In October 2019, the Federal Banking Agencies amended the Basel III Capital Rules to provide for tailored application of certain capital requirements across different categories of banking institutions (“Tailoring Rules”). As a BHC with total consolidated assets of at least $250 billion that does not exceed any of the applicable risk-based thresholds, we are a Category III institution under the Tailoring Rules. As such, we are no longer subject to the Basel III Advanced Approaches and certain associated capital requirements and have the option of excluding certain elements of AOCI from our regulatory capital. Effective in the first quarter of 2020, we excluded certain elements of AOCI from our regulatory capital as permitted by the Tailoring Rules. The Tailoring Rules and Capital Simplification Rule have, taken together, decreased our capital requirements. As part of their response to the COVID-19 pandemic, the Federal Banking Agencies adopted the 2020 CECL Transition Rule which provides banking institutions an optional five-year transition period to phase in the impact of the CECL standard on their regulatory capital. Pursuant to the 2020 CECL Transition Rule, a banking institution may elect to delay the estimated impact of adopting CECL on its regulatory capital through December 31, 2021 and then phase in the estimated cumulative impact from January 1, 2022 through December 31, 2024. For the “day 2” ongoing impact of CECL during the initial two years, the Federal Banking Agencies use a uniform “scaling factor” of 25% as an approximation of the increase in the allowance under the CECL standard compared to the prior incurred loss methodology. Accordingly, from January 1, 2020 through December 31, 2021, electing banking institutions are permitted to add back to their regulatory capital an amount equal to the sum of the after-tax “day 1” CECL adoption impact and 25% of the increase in the allowance since the adoption of the CECL standard. Beginning January 1, 2022 through December 31, 2024, the after-tax “day 1” CECL adoption impact and the cumulative “day 2” ongoing impact will be phased in to regulatory capital at 25% per year. The following table summarizes the capital impact delay and phase in period on our regulatory capital from years 2020 to 2025. Capital Impact Delayed Phase In Period 2020 2021 2022 2023 2024 2025 “Day 1” CECL adoption impact Capital impact delayed to 2022 25% Phased In 50% Phased In 75% Phased In Fully Phased In Cumulative “day 2” ongoing impact 25% scaling factor as an approximation of the increase in allowance under CECL We adopted the CECL standard (for accounting purposes) as of January 1, 2020, and made the 2020 CECL Transition Election (for regulatory capital purposes) in the first quarter of 2020. Therefore, the applicable amounts presented in this Report reflect such election. Under the Basel III Capital Rules, our regulatory minimum risk-based and leverage capital requirements 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%, a Tier 1 leverage capital ratio of at least 4.0% and a supplementary leverage ratio of at least 3.0%. 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, 2020 and 2019. Table 11.1: Capital Ratios Under Basel III (1) December 31, 2020 December 31, 2019 (Dollars in millions) Capital Amount Capital Minimum Well- Capital Amount Capital Minimum Well- Capital One Financial Corp: Common equity Tier 1 capital (2) $ 40,736 13.7 % 4.5 % N/A $ 38,162 12.2 % 4.5 % N/A Tier 1 capital (3) 45,583 15.3 6.0 6.0 % 43,015 13.7 6.0 6.0 % Total capital (4) 52,788 17.7 8.0 10.0 50,348 16.1 8.0 10.0 Tier 1 leverage (5) 45,583 11.2 4.0 N/A 43,015 11.7 4.0 N/A Supplementary leverage (6) 45,583 10.7 3.0 N/A 43,015 9.9 3.0 N/A COBNA: Common equity Tier 1 capital (2) 19,924 21.5 4.5 6.5 17,883 16.1 4.5 6.5 Tier 1 capital (3) 19,924 21.5 6.0 8.0 17,883 16.1 6.0 8.0 Total capital (4) 21,708 23.4 8.0 10.0 20,109 18.1 8.0 10.0 Tier 1 leverage (5) 19,924 18.3 4.0 5.0 17,883 14.8 4.0 5.0 Supplementary leverage (6) 19,924 14.7 3.0 N/A 17,883 12.1 3.0 N/A CONA: Common equity Tier 1 capital (2) 26,671 12.4 4.5 6.5 28,445 13.4 4.5 6.5 Tier 1 capital (3) 26,671 12.4 6.0 8.0 28,445 13.4 6.0 8.0 Total capital (4) 29,369 13.7 8.0 10.0 30,852 14.5 8.0 10.0 Tier 1 leverage (5) 26,671 7.6 4.0 5.0 28,445 9.2 4.0 5.0 Supplementary leverage (6) 26,671 6.9 3.0 N/A 28,445 8.2 3.0 N/A __________ (1) 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, 2020 and 2019. Regulatory restrictions exist that limit the ability of the Banks to transfer funds to our BHC. As of December 31, 2020, funds available for dividend payments from COBNA and CONA were $4.0 billion and $1.8 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 reserve requirement the Federal Reserve requires depository institutions to maintain against specified deposit liabilities was $1.7 billion for us as of December 31, 2019, before being reduced to zero for all depository institutions in March 2020. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | NOTE 12—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 application of the “two-class” method as described in “Note 1—Summary of Significant Accounting Policies.” Table 12.1: Computation of Basic and Diluted Earnings per Common Share Year Ended December 31, (Dollars and shares in millions, except per share data) 2020 2019 2018 Income from continuing operations, net of tax $ 2,717 $ 5,533 $ 6,025 Income (loss) from discontinued operations, net of tax (3) 13 (10) Net income 2,714 5,546 6,015 Dividends and undistributed earnings allocated to participating securities (20) (41) (40) Preferred stock dividends (280) (282) (265) Issuance cost for redeemed preferred stock (39) (31) 0 Net income available to common stockholders $ 2,375 $ 5,192 $ 5,710 Total weighted-average basic common shares outstanding 457.8 467.6 479.9 Effect of dilutive securities: Stock options 0.6 1.3 1.6 Other contingently issuable shares 0.5 1.0 1.1 Warrants (1) 0.0 0.0 0.5 Total effect of dilutive securities 1.1 2.3 3.2 Total weighted-average diluted common shares outstanding 458.9 469.9 483.1 Basic earnings per common share: Net income from continuing operations $ 5.20 $ 11.07 $ 11.92 Income (loss) from discontinued operations (0.01) 0.03 (0.02) Net income per basic common share $ 5.19 $ 11.10 $ 11.90 Diluted earnings per common share: (2) Net income from continuing operations $ 5.19 $ 11.02 $ 11.84 Income (loss) from discontinued operations (0.01) 0.03 (0.02) Net income per diluted common share $ 5.18 $ 11.05 $ 11.82 __________ (1) Represents warrants issued as part of the U.S. Department of Treasury’s Troubled Assets Relief Program which were either exercised or expired on November 14, 2018. (2) Excluded from the computation of diluted earnings per share were aw ards of 6 thousand and options of 523 thousand with an exercise price ranging from $63.73 to $86.34, 69 thousand shares related to options with an exercise price of $86.34 and 56 thousand shares related to options with an exercise price of $86.34 for the years ended December 31, 2020, 2019 and 2018, respectively, because their inclusion would be anti-dil utive. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | NOTE 13—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, 2020, under the Amended and Restated 2004 Stock Incentive plan (“2004 Plan”), we are authorized to issue 55 million common shares in various forms, primarily share-settled restricted stock units (“RSUs”), performance share units (“PSUs”), and non-qualified stock options. Of this amount, approximately 7 million shares remain available for future issuance as of December 31, 2020. 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. These cash-settled units are not counted against the common shares authorized for issuance or available for issuance under the 2004 Plan. Cash-settled units vesting during 2020, 2019 and 2018 resulted in cash payments to associates of $12 million, $15 million and $39 million, respectively. There was no unrecognized compensation cost for unvested cash-settled units as of December 31, 2020. Total stock-based compensation expense recognized during 2020, 2019 and 2018 was $203 million, $239 million and $170 million, respectively. The total income tax benefit for stock-based compensation recognized during 2020, 2019 and 2018 was $43 million, $50 million and $34 million, respectively. In addition, we maintain an Associate Stock Purchase Plan (“Purchase Plan”), which is a compensatory plan under the accounting guidance for stock-based compensation. Related to the Purchase Plan, we recognized compensation expense of $30 million, $25 million and $23 million for 2020, 2019 and 2018, respectively. We also 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. Restricted Stock Units and Performance Share Units RSUs represent share-settled awards that do not contain performance conditions and are granted to certain employees at no cost to the recipient. RSUs generally vest over three years from the date of grant; however, some RSUs cliff vest on or shortly after the first or third anniversary of the grant date. RSUs are subject to forfeiture until certain restrictions have lapsed, including continued employment for a specified period of time. PSUs represent share-settled awards that contain performance conditions and are granted to certain employees at no cost to the recipient. 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. 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. A recipient of an RSU or PSU is entitled to receive a share of common stock after the applicable restrictions lapse and 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 or PSU is outstanding, but is not entitled to voting rights. Generally, the value of RSUs and PSUs will equal the fair value of our common stock on the date of grant and the expense is recognized over the vesting period. Certain PSUs have discretionary vesting conditions and are remeasured at fair value each reporting period. The following table presents a summary of 2020 activity for RSUs and PSUs. Table 13.1: Summary of Restricted Stock Units and Performance Share Units Restricted Stock Units Performance Share Units (1) (Shares/units in thousands) Units Weighted-Average Units Weighted-Average Unvested as of January 1, 2020 3,670 $ 84.74 1,775 $ 89.95 Granted (2) 1,800 92.04 988 100.04 Vested (1,472) 89.39 (855) 88.19 Forfeited (165) 90.98 (147) 93.76 Unvested as of December 31, 2020 3,833 $ 86.14 1,761 $ 96.15 _________ (1) Granted and vested include adjustments for achievement of specific performance goals for performance share units granted in prior periods. (2) The weighted-average grant date fair value of RSUs was $83.29 and $100.73 in 2019 and 2018, respectively. The weighted-average grant date fair value of PSUs was $78.18 and $100.65 in 2019 and 2018, respectively. The total fair value of RSUs that vested during 2020, 2019 and 2018 was $140 million, $122 million and $139 million, respectively. The total fair value of PSUs that vested was $82 million in both 2020 and 2019 and $92 million in 2018. As of December 31, 2020, the unrecognized compensation expense related to unvested RSUs is $166 million, which is expected to be amortized over a weighted-average period of approximately 1.8 years; and the unrecognized compensation related to unvested PSUs was $34 million, which is expected to be amortized over a weighted-average period of approximately 1 year. 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 2020 activity for stock options and the balance of stock options exercisable as of December 31, 2020. Table 13.2: Summary of Stock Options Activity (Shares in thousands, and intrinsic value in millions) Shares Weighted- Weighted- Aggregate Outstanding as of January 1, 2020 3,185 $ 55.54 Granted 0 0.00 Exercised (1,392) 44.76 Forfeited 0 0.00 Expired 0 0.00 Outstanding and Exercisable as of December 31, 2020 1,793 $ 63.91 3.27 years $ 63 There were no stock options granted in 2020, 2019 and 2018. The total intrinsic value of stock options exercised during 2020, 2019 and 2018 was $65 million, $10 million and $94 million, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | NOTE 14—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 (“IRS”) compensation limit) less deferrals. We contributed a total of $350 million, $316 million and $291 million to these plans during the years ended December 31, 2020, 2019 and 2018, 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 as the measurement date each year. 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 14.1: Changes in Benefit Obligation and Plan Assets Defined Pension Other Postretirement (Dollars in millions) 2020 2019 2020 2019 Change in benefit obligation: Accumulated benefit obligation as of January 1, $ 165 $ 157 $ 27 $ 29 Service cost 1 1 0 0 Interest cost 5 6 1 1 Benefits paid (11) (13) (2) (2) Actuarial loss (gain) 18 14 (5) (1) Accumulated benefit obligation as of December 31, $ 178 $ 165 $ 21 $ 27 Change in plan assets: Fair value of plan assets as of January 1, $ 254 $ 218 $ 6 $ 6 Actual return on plan assets 30 48 1 1 Employer contributions 1 1 1 1 Benefits paid (11) (13) (2) (2) Fair value of plan assets as of December 31, $ 274 $ 254 $ 6 $ 6 Over (under) funded status as of December 31, $ 96 $ 89 $ (15) $ (21) Defined Pension Other Postretirement (Dollars in millions) 2020 2019 2020 2019 Balance sheet presentation as of December 31, Other assets $ 108 $ 100 $ 0 $ 0 Other liabilities (12) (11) (15) (21) Net amount recognized as of December 31, $ 96 $ 89 $ (15) $ (21) Net periodic benefit gain for our defined benefit pension plans and other postretirement benefit plan totaled $8 million, $10 million and $12 million in 2020, 2019 and 2018, respectively. We recognized a pre-tax gain of $4 million and $18 million in other comprehensive income for our defined benefit pension plans and other postretirement benefit plan in 2020 and 2019, respectively, compared to a pre-tax loss of $17 million in 2018. 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 $40 million and $41 million for our defined benefit pension plans as of December 31, 2020 and 2019, respectively, and net actuarial gain of $6 million and $4 million for our other postretirement benefit plan as of December 31, 2020 and 2019, respectively. There was no meaningful prior service cost recognized in AOCI. 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 daily basis. As of December 31, 2020 and 2019, our plan assets totaled $280 million and $260 million, respectively. We invested substantially all our plan assets in common collective trusts, which primarily consist of domestic and international equity securities, government securities and corporate and municipal bonds. Our plan assets were classified as Level 2 in the fair value hierarchy as of December 31, 2020 and 2019. 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 16—Fair Value Measurement.” Expected Future Benefit Payments As of December 31, 2020, the benefits expected to be paid in the next ten years totaled $110 million for our defined pension benefit plans and $14 million for our other postretirement benefit plan, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 15—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. The following table presents significant components of the provision for income taxes attributable to continuing operations for the years ended December 31, 2020, 2019 and 2018. Table 15.1: Significant Components of the Provision for Income Taxes Attributable to Continuing Operations Year Ended December 31, (Dollars in millions) 2020 2019 2018 Current income tax provision: Federal taxes $ 1,676 $ 1,207 $ 210 State taxes 370 301 234 International taxes 67 129 135 Total current provision $ 2,113 $ 1,637 $ 579 Deferred income tax provision (benefit): Federal taxes $ (1,357) $ (222) $ 620 State taxes (266) (45) 115 International taxes (4) (29) (21) Total deferred provision (benefit) (1,627) (296) 714 Total income tax provision $ 486 $ 1,341 $ 1,293 The international income tax provision is related to pre-tax earnings from foreign operations of approximately $293 million, $215 million and $382 million in 2020, 2019 and 2018, respectively. Total income tax provision does not reflect the tax effects of items that are included in AOCI, which include tax provisions of $702 million, $727 million and $15 million in 2020, 2019 and 2018, respectively. See “Note 10—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, 2020, 2019 and 2018. Table 15.2: Effective Income Tax Rate Year Ended December 31, 2020 2019 2018 Income tax at U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit 3.5 3.1 3.2 Non-deductible expenses 3.2 1.6 2.2 Affordable housing, new markets and other tax credits (11.4) (5.2) (4.0) Tax-exempt interest and other nontaxable income (1.7) (0.8) (0.7) IRS method changes 0.0 0.0 (3.9) Changes in valuation allowance 2.3 (0.3) 0.3 Other, net (1.7) 0.1 (0.4) Effective income tax rate 15.2 % 19.5 % 17.7 % The following table presents significant components of our deferred tax assets and liabilities as of December 31, 2020 and 2019. The valuation allowance below represents the adjustment of our foreign tax credit carryforward, 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 15.3: Significant Components of Deferred Tax Assets and Liabilities (Dollars in millions) December 31, 2020 December 31, 2019 Deferred tax assets: Allowance for credit losses $ 3,649 $ 1,729 Rewards programs 711 579 Lease liabilities 396 407 Net operating loss and tax credit carryforwards 314 284 Compensation and employee benefits 306 301 Partnership investments 237 202 Unearned income 117 95 Goodwill and intangibles 116 161 Fixed assets and leases 42 0 Other assets 143 142 Subtotal 6,031 3,900 Valuation allowance (296) (223) Total deferred tax assets 5,735 3,677 Deferred tax liabilities: Security and loan valuations (1) 805 234 Original issue discount 481 600 Net unrealized gains on derivatives 387 93 Right-of-use assets 342 393 Partnership investments 142 147 Mortgage servicing rights 73 55 Loan fees and expenses 36 100 Fixed assets and leases 0 189 Other liabilities 143 146 Total deferred tax liabilities 2,409 1,957 Net deferred tax assets $ 3,326 $ 1,720 _________ (1) Amount includes the tax impact of our December 31, 2019 transfer of our entire portfolio of held to maturity securities to available for sale. Our gross federal net operating loss carryforwards were $36 million and $31 million as of December 31, 2020 and 2019, respectively. These operating loss carryforwards were attributable to acquisitions and will expire from 2028 to 2037, though $26 million has no expiration. 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 were $250 million and $237 million as of December 31, 2020 and 2019, respectively, and they will expire from 2021 to 2040. Our foreign tax credit carryforward was $56 million and $40 million as of December 31, 2020 and 2019, respectively. This carryforward will begin expiring in 2028. Our valuation allowance increased by $73 million to $296 million as of December 31, 2020 compared to $223 million as of December 31, 2019. Of the total increase, $56 million is due to the determination that our foreign tax credit carryforwards will not be fully realized prior to expiration. The remaining increase relates to current year increments for state net operating loss and interest carryforwards. We recognize accrued interest and penalties related to income taxes as a component of income tax expense. We recognized $16 million, $4 million and $6 million of such expense in 2020, 2019 and 2018, respectively. The following table presents the accrued balance of tax, interest and penalties related to unrecognized tax benefits. Table 15.4: Reconciliation of the Change in Unrecognized Tax Benefits (Dollars in millions) Gross Accrued Gross Tax, Balance as of January 1, 2018 $ 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 Additions for tax positions related to the current year 23 17 40 Additions for tax positions related to prior years 12 4 16 Reductions for tax positions related to prior years due to IRS and other settlements (44) (25) (69) Balance as of December 31, 2019 431 31 462 Additions for tax positions related to the current year 33 0 33 Additions for tax positions related to prior years 3 21 24 Reductions for tax positions related to prior years due to IRS and other settlements (16) (6) (22) Balance as of December 31, 2020 $ 451 $ 46 $ 497 Portion of balance at December 31, 2020 that, if recognized, would impact the effective income tax rate $ 153 $ 35 $ 188 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 2020, we continued to participate in the IRS Compliance Assurance Process (“CAP”) for our 2018, 2019 and 2020 federal income tax return years, and have been accepted into CAP for 2021. During 2020, the IRS review of our 2017 federal income tax return was completed, with one issue remaining open. This issue is now pending at the IRS Independent Office of Appeals, with a resolution expected during 2021. The IRS review of our 2018 and 2019 federal income tax returns is also substantially completed and these years are also expected to be closed in 2021. We expect that the IRS review of our 2020 federal income tax return will be substantially completed prior to its filing in 2021. It is reasonably possible that further adjustments to the Company’s 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 changes to the amount of unrecognized tax benefits cannot be made. As of December 31, 2020, the company has approximately $1.6 billion of unremitted earnings of subsidiaries operating outside the U.S. that upon repatriation would have no additional U.S. income taxes. In accordance with the guidance for 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 as we have made distributions and expect to make distributions in the future. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 16—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. Assets and Liabilities Measured at Fair Value on a Recurring Basis 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 We measure the fair value of our U.S. Treasury securities using quoted prices in active markets. For the majority of securities in other investment categories, we utilize multiple vendor pricing services to obtain fair value measurements. We use a waterfall of pricing vendors determined using our annual assessment of pricing service performance. 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 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, foreign currency and commodity risk exposures. When quoted market prices are available and used to value our exchange-traded derivatives, we classify them as Level 1. However, the majority of our derivatives do not have readily available quoted market prices. Therefore, we value most of our derivatives using vendor-based models. We primarily rely on market observable inputs for these models, including, for example, 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. We consider the impact of credit risk valuation adjustments 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. Loans Held for Sale In our commercial business, we originate multifamily commercial real estate loans with the intent to sell them to GSEs. Beginning in the fourth quarter of 2019, we elected the fair value option for such loans as part of our management of interest rate risk in our multifamily agency business. These held for sale loans are valued based on market observable inputs and are therefore classified as Level 2. Unrealized gains and losses on these loans are recorded in other non-interest income in our consolidated statements of income. Retained Interests in Securitizations We have retained interests in various mortgage securitizations from previous acquisitions. Our retained interests primarily include interest-only bonds 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 voluntary 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, 2020 and 2019. Table 16.1: Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2020 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 $ 9,318 $ 0 $ 0 — $ 9,318 RMBS 0 76,375 328 — 76,703 CMBS 0 11,624 111 — 11,735 Other securities 142 2,547 0 — 2,689 Total securities available for sale 9,460 90,546 439 — 100,445 Loans held for sale 0 596 0 — 596 Other assets: Derivative assets (2) 268 3,006 141 $ (1,148) 2,267 Other (3) 430 552 55 — 1,037 Total assets $ 10,158 $ 94,700 $ 635 $ (1,148) $ 104,345 Liabilities: Other liabilities: Derivative liabilities (2) $ 271 $ 1,137 $ 110 $ (739) $ 779 Total liabilities $ 271 $ 1,137 $ 110 $ (739) $ 779 December 31, 2019 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 $ 4,124 $ 0 $ 0 — $ 4,124 RMBS 0 63,909 429 — 64,338 CMBS 0 9,413 13 — 9,426 Other securities 231 1,094 0 — 1,325 Total securities available for sale 4,355 74,416 442 — 79,213 Loans held for sale 0 251 0 — 251 Other assets: Derivative assets (2) 84 1,568 77 $ (633) 1,096 Other (3) 344 0 66 — 410 Total assets $ 4,783 $ 76,235 $ 585 $ (633) $ 80,970 Liabilities: Other liabilities: Derivative liabilities (2) $ 17 $ 1,129 $ 51 $ (523) $ 674 Total liabilities $ 17 $ 1,129 $ 51 $ (523) $ 674 __________ (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 9—Derivative Instruments and Hedging Activities” for additional information. (2) Does not reflect $31 million and $12 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of December 31, 2020 and 2019 , respectively. Non-performance risk is included in derivative assets and liabilities, which are part of other assets and other liabilities on the consolidated balance sheets, and is offset through non-interest income in the consolidated statements of income. (3) As of December 31, 2020 and 2019, other includes retained interests in securitizations of $55 million and $66 million, deferred compensation plan assets of $414 million and $343 million, and equity securities of $568 million (including unrealized gains of $535 million) and $1 million, respectively. 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, 2020, 2019 and 2018. 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 16.2: Level 3 Recurring Fair Value Rollforward Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year Ended December 31, 2020 Total Gains (Losses) (Realized/Unrealized) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2020 (1) (Dollars in millions) Balance, January 1, 2020 Included in Net Income (1) Included in OCI Purchases Sales Issuances Settlements Transfers Transfers Balance, December 31, 2020 Securities available for sale: (2)(4) RMBS $ 433 $ 22 $ (19) $ 0 $ 0 $ 0 $ (72) $ 206 $ (242) $ 328 $ 16 CMBS 13 (3) (9) 0 0 0 (32) 371 (229) 111 0 Total securities available for sale 446 19 (28) 0 0 0 (104) 577 (471) 439 16 Other assets: Retained interests in securitizations 66 (11) 0 0 0 0 0 0 0 55 (11) Net derivative assets (liabilities) (3) 26 10 0 0 0 43 (37) 0 (11) 31 10 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year Ended December 31, 2019 Total Gains (Losses) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2019 (1) (Dollars in millions) Balance, January 1, 2019 Included in Net Income (1) Included in OCI Purchases Sales Issuances Settlements Transfers Transfers Balance, December 31, 2019 Securities available for sale: (2) RMBS $ 433 $ 35 $ 5 $ 0 $ 0 $ 0 $ (63) $ 177 $ (158) $ 429 $ 34 CMBS 10 0 0 0 0 0 (2) 5 0 13 0 Total securities available for sale 443 35 5 0 0 0 (65) 182 (158) 442 34 Other assets: Retained interests in securitizations 158 18 0 0 0 0 (110) 0 0 66 (19) Net derivative assets (liabilities) (3) (10) 6 0 0 0 (16) 52 0 (6) 26 1 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year Ended December 31, 2018 Total Gains (Losses) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2018 (1) (Dollars in millions) Balance, January 1, 2018 Included in Net Income (1) Included in OCI Purchases Sales Issuances Settlements Transfers Transfers 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 interests 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) __________ (1) Realized gains (losses) on securities available for sale are included in net securities gains (losses), and retained interests in securitizations 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, 2020 were $21 million. Net unrealized losses included in other comprehensive income related to Level 3 securities available for sale still held as of December 31, 2019 were $4 million. 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 $141 million and $110 million, respectively, as of December 31, 2020, $77 million and $51 million, respectively, as of December 31, 2019 and $38 million and $48 million, respectively, as of December 31, 2018. (4) The fair value of RMBS as of January 1, 2020 includes a cumulative adjustment of $4 million from the adoption of the CECL standard. 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 16.3: Quantitative Information about Level 3 Fair Value Measurements Quantitative Information about Level 3 Fair Value Measurements (Dollars in millions) Fair Value at Significant Significant Range Weighted Average (1) Securities available for sale: RMBS $ 328 Discounted cash flows (vendor pricing) Yield 2-12% 8-15% 0-11% 30-100% 3% 10% 2% 73% CMBS 111 Discounted cash flows (vendor pricing) Yield 1-3% 2% Other assets: Retained interests in securitizations (2) 55 Discounted cash flows Life of receivables (months) 37-52 3-13% 2-12% 3-3% 55-70% N/A Net derivative assets (liabilities) 31 Discounted cash flows Swap rates 1% 1% Quantitative Information about Level 3 Fair Value Measurements (Dollars in millions) Fair Value at Significant Significant Range Weighted Average (1) Securities available for sale: RMBS $ 429 Discounted cash flows (vendor pricing) Yield 2-18% 0-18% 1-6% 30-95% 5% 10% 2% 67% CMBS 13 Discounted cash flows (vendor pricing) Yield 2-3% 2% Other assets: Retained interests in securitizations (2) 66 Discounted cash flows Life of receivables (months) 35-51 4-14% 3-10% 2-3% 74-88% N/A Net derivative assets (liabilities) 26 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 for which we have not elected the fair value option are carried at the lower of aggregate cost, net of deferred fees and deferred origination costs, or fair value. These loans held for sale are valued based on market observable inputs and are therefore classified as Level 2. Fair value adjustments to these loans 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 the measurement alternative, 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, 2020 and 2019, and for which a nonrecurring fair value measurement was recorded during the year then ended. Table 16.4: Nonrecurring Fair Value Measurements December 31, 2020 Estimated Fair Value Hierarchy Total (Dollars in millions) Level 2 Level 3 Loans held for investment $ 0 $ 305 $ 305 Other assets (1) 0 175 175 Total $ 0 $ 480 $ 480 December 31, 2019 Estimated Fair Value Hierarchy Total (Dollars in millions) Level 2 Level 3 Loans held for investment $ 0 $ 294 $ 294 Other assets (1) 0 103 103 Total $ 0 $ 397 $ 397 __________ (1) As of December 31, 2020, other assets included equity investments accounted for under the measurement al ternative of $25 million, repossessed assets of $42 million and long-lived assets held for sale of $108 million. As of December 31, 2019, other assets included equity investments accounted for under the measurement alternative of $5 million, repossessed assets of $61 million and long-lived assets held for sale of $37 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 89%, with a weighted average of 14%, and from 0% to 50%, with a weighted average of 6%, as of December 31, 2020 and 2019, 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, 2020 and 2019. Table 16.5: Nonrecurring Fair Value Measurements Included in Earnings Total Gains (Losses) Year Ended December 31, (Dollars in millions) 2020 2019 Loans held for investment $ 198 $ (268) Other assets (1) (85) (76) Total $ 113 $ (344) __________ (1) Other assets include fair value adjustments related to repossessed assets, long-lived assets held for sale and equity investments accounted for under the measurement alternative. 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, 2020 and 2019. Table 16.6: Fair Value of Financial Instruments December 31, 2020 Carrying Estimated Estimated Fair Value Hierarchy (Dollars in millions) Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 40,509 $ 40,509 $ 4,708 $ 35,801 $ 0 Restricted cash for securitization investors 262 262 262 0 0 Net loans held for investment 236,060 244,701 0 0 244,701 Loans held for sale 2,114 2,214 0 2,214 0 Interest receivable 1,471 1,471 0 1,471 0 Other investments (1) 1,341 1,341 0 1,341 0 Financial liabilities: Deposits with defined maturities 32,746 33,111 0 33,111 0 Securitized debt obligations 12,414 12,584 0 12,584 0 Senior and subordinated notes 27,382 28,282 0 28,282 0 Federal funds purchased and securities loaned or sold under agreements to repurchase 668 668 0 668 0 Interest payable 352 352 0 352 0 December 31, 2019 Carrying Estimated Estimated Fair Value Hierarchy (Dollars in millions) Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 13,407 $ 13,407 $ 4,129 $ 9,278 $ 0 Restricted cash for securitization investors 342 342 342 0 0 Net loans held for investment 258,601 258,696 0 0 258,696 Loans held for sale 149 149 0 149 0 Interest receivable 1,758 1,758 0 1,758 0 Other investments (1) 1,638 1,638 0 1,638 0 Financial liabilities: Deposits with defined maturities 44,958 45,225 0 45,225 0 Securitized debt obligations 17,808 17,941 0 17,941 0 Senior and subordinated notes 30,472 31,233 0 31,233 0 Federal funds purchased and securities loaned or sold under agreements to repurchase 314 314 0 314 0 Other borrowings (2) 7,000 7,001 0 7,001 0 Interest payable 439 439 0 439 0 __________ (1) Other investments include FHLB and Federal Reserve stock. These investments are included in other assets on our consolidated balance sheets. (2) Other borrowings excludes finance lease liabilities. |
Business Segments and Revenue f
Business Segments and Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | NOTE 17—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 types of customers served: Credit Card, Consumer Banking and Commercial Banking. The operations of acquired businesses have been integrated into or managed as a part of 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 deposit gathering and lending activities for consumers and small businesses, 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 2019, we made a change in how revenue is measured in our Commercial Banking business by revising the allocation of tax benefits on certain tax-advantaged investments. As such, 2018 results have been recast to conform with the current period presentation. The result of this measurement change reduced the previously reported total net revenue in our Commercial Banking business by $108 million for the year ended December 31, 2018, with an offsetting increase 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 table presents our business segment results for the years ended December 31, 2020, 2019 and 2018, selected balance sheet data as of December 31, 2020, 2019 and 2018, and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits. Table 17.1: Segment Results and Reconciliation Year Ended December 31, 2020 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total Net interest income (loss) $ 13,776 $ 7,238 $ 2,048 $ (149) $ 22,913 Non-interest income 3,823 466 923 398 5,610 Total net revenue (2) 17,599 7,704 2,971 249 28,523 Provision for credit losses 7,327 1,753 1,181 3 10,264 Non-interest expense 8,491 4,159 1,706 700 15,056 Income (loss) from continuing operations before income taxes 1,781 1,792 84 (454) 3,203 Income tax provision (benefit) 420 425 19 (378) 486 Income (loss) from continuing operations, net of tax $ 1,361 $ 1,367 $ 65 $ (76) $ 2,717 Loans held for investment $ 106,956 $ 68,888 $ 75,780 $ 0 $ 251,624 Deposits 0 249,815 39,590 16,037 305,442 Year Ended December 31, 2019 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total Net interest income $ 14,461 $ 6,732 $ 1,983 $ 164 $ 23,340 Non-interest income (loss) 3,888 643 831 (109) 5,253 Total net revenue 18,349 7,375 2,814 55 28,593 Provision for credit losses 4,992 938 306 0 6,236 Non-interest expense 9,271 4,091 1,699 422 15,483 Income (loss) from continuing operations before income taxes 4,086 2,346 809 (367) 6,874 Income tax provision (benefit) 959 547 188 (353) 1,341 Income (loss) from continuing operations, net of tax $ 3,127 $ 1,799 $ 621 $ (14) $ 5,533 Loans held for investment $ 128,236 $ 63,065 $ 74,508 $ 0 $ 265,809 Deposits 0 213,099 32,134 17,464 262,697 Year Ended December 31, 2018 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1)(3) Other (1)(3) Consolidated Total Net interest income $ 14,167 $ 6,549 $ 2,044 $ 115 $ 22,875 Non-interest income 3,520 663 744 274 5,201 Total net revenue 17,687 7,212 2,788 389 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 1,051 (241) 7,318 Income tax provision (benefit) 970 547 245 (469) 1,293 Income from continuing operations, net of tax $ 3,191 $ 1,800 $ 806 $ 228 $ 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 __________ (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% for all periods presented) and state taxes where applicable, with offsetting reductions to the Other category. (2) Total net revenue was reduced by $1.1 billion for the year ended December 31, 2020, for finance charges and fees charged off as uncollectible. (3) In the first quarter of 2019, we made a change in how revenue is measured in our Commercial Banking business by revising the allocation of tax benefits on certain tax-advantaged investments. As such, 2018 results have been recast to conform with the current period presentation. The result of this measurement change reduced the previously reported total net revenue in our Commercial Banking business by $108 million for the year ended December 31, 2018, with an offsetting increase in the Other category. Revenue from Contracts with Customers The majority of our revenue from contracts with customers consists of interchange fees, service charges and other customer-related fees, and other contract revenue. 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 in our Credit Card business consists primarily of revenue from our partnership arrangements. Other contract revenue in our Consumer Banking business consists primarily of revenue earned on certain marketing and promotional events from our auto dealers. 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 years ended December 31, 2020, 2019 and 2018. Table 17.2: Revenue from Contracts with Customers and Reconciliation to Segment Results Year Ended December 31, 2020 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total Contract revenue: Interchange fees, net (2) $ 2,747 $ 209 $ 63 $ (2) $ 3,017 Service charges and other customer-related fees 0 188 175 (1) 362 Other 315 39 4 0 358 Total contract revenue 3,062 436 242 (3) 3,737 Revenue from other sources 761 30 681 401 1,873 Total non-interest income $ 3,823 $ 466 $ 923 $ 398 $ 5,610 Year Ended December 31, 2019 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total Contract revenue: Interchange fees, net (2) $ 2,925 $ 205 $ 55 $ (6) $ 3,179 Service charges and other customer-related fees 0 298 120 (1) 417 Other 120 101 3 0 224 Total contract revenue 3,045 604 178 (7) 3,820 Revenue from other sources 843 39 653 (102) 1,433 Total non-interest income $ 3,888 $ 643 $ 831 $ (109) $ 5,253 Year Ended December 31, 2018 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total 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% for all periods presented) and state taxes where applicable, with offsetting reductions to the Other category. (2) Interchange fees are presented net of customer reward expenses of $4.9 billion for the years ended December 31, 2020 and 2019 and $4.4 billion for the year ended December 31, 2018. |
Commitments, Contingencies, Gua
Commitments, Contingencies, Guarantees, and Others | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, Guarantees and Others | NOTE 18—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 customer. 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, 2020 and 2019. The carrying value represents our reserve and deferred revenue on legally binding commitments. Table 18.1: Unfunded Lending Commitments Contractual Amount Carrying Value (Dollars in millions) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Credit card lines $ 349,594 $ 363,446 N/A N/A Other loan commitments (1) 35,836 36,454 $ 144 $ 110 Standby letters of credit and commercial letters of credit (2) 1,302 1,574 32 27 Total unfunded lending commitments $ 386,732 $ 401,474 $ 176 $ 137 __________ (1) Includes $1.8 billion and $1.6 billion of advised lines of credit as of December 31, 2020 and 2019, respectively. (2) These financial guarantees have expiration dates ranging from 2021 to 2023 as of December 31, 2020. Loss Sharing Agreements 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. Beginning January 1, 2020, we elected the fair value option on new loss sharing agreements. Unrealized gains and losses are recorded in other non-interest income in our consolidated statements of income. For those loss sharing agreements entered into as of and prior to December 31, 2019, we amortize the liability recorded at inception into non-interest income as we are released from risk of payment under the loss sharing agreement and record our estimate of expected credit losses each period in provision for credit losses in our consolidated statements of income. The liability recognized on our consolidated balance sheets for these loss sharing agreements was $97 million and $75 million as of December 31, 2020 and 2019, respectively. See “Note 4—Allowance for Credit Losses and Reserve for Unfunded Lending Commitments” for more information related to our credit card partnership loss sharing arrangements. 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. In August 2017, the FCA issued final rules and guidance on the PPI complaints. This set the deadline for complaints as August 29, 2019. It also provided 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. COEP has now materially completed the handling of PPI complaints that were received prior to the deadline set by the FCA. Escalations to the FOS (by customers or their representatives) may still take place until the first quarter of 2021. Throughout this time, the FCA will continue to supervise firms that handle PPI complaints and the supporting processes, people and systems. Our U.K. PPI reserve declined to an immaterial amount as of December 31, 2020 from $188 million as of December 31, 2019. 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, 2020 are approximately $200 million. 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 bifurcated 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 settlement of $5.5 billion for the monetary damages class received final approval from the trial court, and has been appealed to the U.S. Court of Appeals for the Second Circuit. Visa and MasterCard have also settled a number of the opt-out cases, which required non-material payments from issuing banks, including Capital One. Visa created a litigation escrow account following its initial public offering 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 our reserves. Anti-Money Laundering In October 2018, we paid a civil monetary penalty of $100 million to resolve the monetary component of a July 2015 OCC consent order relating to our anti-money laundering (“AML”) program. The OCC lifted the AML consent order in November 2019. In June 2019, the Department of Justice and the New York District Attorney’s Office closed their investigations into certain former check cashing clients of the Commercial Banking business and our AML program. In January 2021, the Financial Crimes Enforcement Network (“FinCEN”) of the U.S. Department of Treasury assessed a civil monetary penalty of $390 million to conclude its investigation into AML compliance regarding certain former check cashing clients. We paid $290 million from existing reserves to satisfy the assessment, after receiving a credit for the related $100 million civil monetary penalty we paid to the OCC in October 2018. The resolution with FinCEN concludes the last government inquiry relating to the former check cashing line of business we exited in 2014. Cybersecurity Incident As a result of the Cybersecurity Incident announced on July 29, 2019, we are subject to numerous legal proceedings and other inquiries and could be the subject of additional proceedings and inquiries in the future. Consumer class actions . We were named as a defendant in approximately 73 putative consumer class action cases (61 in U.S. federal courts and 12 in Canadian courts) alleging harm from the Cybersecurity Incident and seeking various remedies, including monetary and injunctive relief. The lawsuits allege breach of contract, negligence, violations of various privacy laws and a variety of other legal causes of action. The U.S. consumer class actions have been consolidated for pretrial proceedings before a multi-district litigation (“MDL”) panel in the U.S. District Court for the Eastern District of Virginia, Alexandria Division, where the remaining 29 consumer class actions are currently pending. In the third quarter of 2020, the MDL court denied in part and granted in part Capital One’s motion to dismiss and permitted pretrial discovery to continue. Securities class action . The Company and certain officers have also been named as defendants in a putative class action pending in the MDL alleging violations of certain federal securities laws in connection with statements and alleged omissions in securities filings relating to our information security standards and practices. The complaint seeks certification of a class of all persons who purchased or otherwise acquired Capital One securities from July 23, 2015 to July 29, 2019, as well as unspecified monetary damages, costs and other relief. Governmental inquiries . We have received inquiries and requests for information relating to the Cybersecurity Incident from Congress, federal regulators, relevant Canadian regulators, the Department of Justice, and the offices of approximately fourteen state Attorneys General. We are cooperating with these offices and responding to their inquiries. In August 2020, we entered into consent orders with the Federal Reserve and the OCC resulting from regulatory reviews of the Cybersecurity Incident and relating to ongoing enhancements of our cybersecurity and operational risk management processes. We paid an $80 million penalty to the U.S. Treasury as part of the OCC agreement. The Federal Reserve agreement did not contain a monetary penalty. Taxi Medallion Finance Investigations Beginning in 2019, we have received subpoenas from the New York Attorney General’s office and from the U.S. Attorney’s Office for the Southern District of New York, Civil and Criminal Divisions, relating to investigations of the taxi medallion finance industry we exited beginning in 2015. The subpoenas seek, among other things, information regarding our lending counterparties and practices. We are cooperating with these investigations. U.K. PPI Litigation Some of the claimants in the U.K. PPI regulatory claims process have initiated legal proceedings. The significant increase in PPI regulatory claim volumes shortly before the August 29, 2019 claims submission deadline increases the potential exposure for PPI-related litigation, which is not subject to the August 29, 2019 deadline. Other Pending and Threatened Litigation In addition, we are commonly subject to various pending and threatened legal actions relating to the conduct of our normal business activities. In the opinion of management, the ultimate aggregate liability, if any, arising out of all such other pending or threatened legal actions is not expected to be material to our consolidated financial position or our results of operations. |
Capital One Financial Corporati
Capital One Financial Corporation (Parent Company Only) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Capital One Financial Corporation (Parent Company Only) | NOTE 19—CAPITAL ONE FINANCIAL CORPORATION (PARENT COMPANY ONLY) Financial Information 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 19.1: Parent Company Statements of Income Year Ended December 31, (Dollars in millions) 2020 2019 2018 Interest income $ 186 $ 442 $ 313 Interest expense 510 798 720 Dividends from subsidiaries 3,003 3,276 2,750 Non-interest income (loss) (127) (21) 19 Non-interest expense 33 60 29 Income before income taxes and equity in undistributed earnings of subsidiaries 2,519 2,839 2,333 Income tax benefit (93) (138) (128) Equity in undistributed earnings of subsidiaries 102 2,569 3,554 Net income 2,714 5,546 6,015 Other comprehensive income (loss), net of tax 2,346 1,531 (136) Comprehensive income $ 5,060 $ 7,077 $ 5,879 Table 19.2: Parent Company Balance Sheets (Dollars in millions) December 31, 2020 December 31, 2019 Assets: Cash and cash equivalents $ 12,976 $ 13,050 Investments in subsidiaries 62,066 61,626 Loans to subsidiaries 5,924 3,905 Securities available for sale 622 738 Other assets 1,473 1,017 Total assets $ 83,061 $ 80,336 Liabilities: Senior and subordinated notes $ 22,037 $ 22,080 Accrued expenses and other liabilities 820 245 Total liabilities 22,857 22,325 Total stockholders’ equity 60,204 58,011 Total liabilities and stockholders’ equity $ 83,061 $ 80,336 Table 19.3: Parent Company Statements of Cash Flows Year Ended December 31, (Dollars in millions) 2020 2019 2018 Operating activities: Net income $ 2,714 $ 5,546 $ 6,015 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed earnings of subsidiaries (102) (2,569) (3,554) Other operating activities 1,217 216 (35) Net cash from operating activities 3,829 3,193 2,426 Investing activities: Changes in investments in subsidiaries (217) 704 (577) Proceeds from paydowns and maturities of securities available for sale 117 111 140 Changes in loans to subsidiaries (2,019) (1,302) (2,055) Net cash from investing activities (2,119) (487) (2,492) Financing activities: Borrowings: Changes in borrowings from subsidiaries 0 0 38 Issuance of senior and subordinated notes 1,991 2,646 5,227 Maturities and paydowns of senior and subordinated notes (2,900) (750) 0 Common stock: Net proceeds from issuances 241 199 175 Dividends paid (460) (753) (773) Preferred stock: Net proceeds from issuances 1,330 1,462 0 Dividends paid (280) (282) (265) Redemptions (1,375) (1,000) 0 Purchases of treasury stock (393) (1,481) (2,284) Proceeds from share-based payment activities 62 17 38 Net cash from financing activities (1,784) 58 2,156 Changes in cash and cash equivalents (74) 2,764 2,090 Cash and cash equivalents, beginning of the period 13,050 10,286 8,196 Cash and cash equivalents, end of the period $ 12,976 $ 13,050 $ 10,286 Supplemental information: Non-cash impact from the dissolution of wholly-owned subsidiary Decrease in investment in subsidiaries $ 0 $ 1,508 $ 0 Decrease in borrowings from subsidiaries 0 1,671 0 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 20—RELATED PARTY TRANSACTIONS In the ordinary course of business, we may have loans issued to our executive officers, directors and principal stockholders. Pursuant to our policy, such loans are issued on the same terms as those prevailing at the time for comparable loans to unrelated persons and do not involve more than the normal risk of collectability. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 the 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 which we do not hold a controlling financial interest but 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 measure equity investments at fair value with changes in fair value |
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 is deemed the primary beneficiary of a VIE 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 5—Variable Interest Entities and Securitizations” for further details. |
Balance Sheet Offsetting of Financial Assets and Liabilities | Balance Sheet Offsetting of Financial Assets and Liabilities Derivative contracts that we execute bilaterally in the over-the-counter (“OTC”) market or are centrally cleared are generally 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. See “Note 9—Derivative Instruments and Hedging Activities” for more details. We also elect to present securities purchased or sold under resale or repurchase agreements on a net basis when a legally enforceable master netting agreement exists and other applicable criteria are met. Security collateral received from or pledged to the counterparties are not eligible for netting and are presented gross in our consolidated balance sheet. See “Note 8—Deposits and Borrowings” and “Note 9—Derivative Instruments and Hedging Activities” for more 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 8—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. On December 31, 2019, we transferred our entire portfolio of held to maturity securities to available for sale. We did not have any securities that were classified as held to maturity as of December 31, 2020 and 2019. We report securities available for sale on our consolidated balance sheets at fair value. The amortized cost of investment securities reflects the amount for which the security was acquired, adjusted for accrued interest, amortization of premiums, discounts, and net deferred fees and costs, any applicable fair value hedge accounting adjustments, collection of cash, and charge-offs. We elect to present accrued interest for securities available for sale within interest receivable on our consolidated balance sheets. Unrealized gains or losses are recorded, net of tax, as a component of accumulated other comprehensive income (“AOCI”). Unamortized premiums, discounts and other basis adjustments for available for sale securities are generally recognized in interest income over the contractual lives of the securities using the effective interest method. However, premiums on certain callable investment securities are amortized to the earliest call date. We record purchases and sales of investment securities available for sale 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. We elect to present accrued interest for securities available for sale within interest receivable on our consolidated balance sheets. An individual debt security is impaired when the fair value of the security is less than its amortized cost. 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, any allowance for credit losses is reversed through our provision for credit losses and the difference between the amortized cost basis of the security and its fair value is recognized in our consolidated statements of income. For impaired debt securities that we have both the intent and ability to hold, the securities are evaluated to determine if a credit loss exists. The allowance for credit losses on our investment securities is recognized through our provision for credit losses and limited by the unrealized losses of a security measured as the difference between the security’s amortized cost and fair value. See further discussion below under the “Allowance for Credit Losses - Available for Sale Investment Securities” section of this Note. Our investment portfolio also includes certain debt securities that, at the time of purchase, had experienced a more-than-insignificant deterioration in credit quality since origination. Such debt securities are accounted for in accordance with accounting guidance for purchased financial assets with credit deterioration and are herein referred to as purchased credit-deteriorated (“PCD”) securities. PCD securities require the recognition of an allowance for credit losses at the time of acquisition. The allowance for credit losses is not recognized in provision for credit losses. Instead, the purchase price and the initial allowance collectively represent the amortized cost basis of a PCD security. Any non-credit discount or premium at the date of acquisition is amortized into interest income over the remaining life of the security. Subsequent to the date of purchase, we remeasure the allowance for credit losses on the amortized cost basis using the same policies as for other debt securities available for sale and changes are recognized through our provision for credit losses. See further discussion below under the “Allowance for Credit Losses - Available for Sale Investment Securities” section of this Note. |
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. Commercial banking loans consist of commercial and multifamily real estate loans as well as commercial and industrial loans. Loan Classification 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 we elect the fair value option, whether the loans are originated or purchased and whether purchased loans are considered to have experienced a more-than-insignificant deterioration in credit quality since origination. The presentation within the consolidated statements of cash flows is based on management’s intent at acquisition or origination. Cash flows related to loans that are acquired or originated with the intent to hold for investment are included in cash flows from investing activities on our consolidated statements of cash flows. Cash flows related to loans that are acquired or originated with the intent to sell 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 for credit card loans, are reported at their amortized cost basis, excluding accrued interest. For these loans, we elect to present accrued interest within interest receivable on our consolidated balance sheets. For credit card loans, billed finance charges and fees are included in loans held for investment. Unbilled finance charges and fees on credit card loans are included in interest receivable. Interest income is recognized on performing loans 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. The amortized cost of loans held for investment is subject to our allowance for credit losses methodology described below under the “Allowance for Credit Losses - Loans Held for Investment” section of this Note. Loans Held for Sale Loans that we intend 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. Multifamily commercial real estate loans originated with the intent to sell to government-sponsored enterprises are accounted for under the fair value option. We elect the fair value option on these loans as part of our management of interest rate risk along with the corresponding forward sale commitments. Loan origination fees and direct loan origination costs are recognized as incurred and are reported in other non-interest income in the consolidated statements of income. Interest income is calculated based on the loan's stated rate of interest and is reported in interest income in the consolidated statements of income. Fair value adjustments are recorded in other non-interest income in the consolidated statements of income. All other loans classified as held for sale 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. Fair value adjustments are recorded in other non-interest income in the consolidated statements of income. If a loan is transferred from held for investment to held for sale, then on the transfer date, any decline in fair value related to credit is recorded as a charge-off and any allowance for credit losses is reversed through our provision for credit losses. The loan is then reclassified to held for sale at its amortized cost at the date of the transfer. A valuation allowance is established, if needed, such that the loan held for sale is recorded at the lower of cost or fair value. 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 historical payment trends, forecasted default rates and loss severities and other relevant factors. The difference between the fair value and the contractual cash flows is recorded as a loan premium or discount, which may relate to either credit or non-credit factors, at acquisition. We account for purchased loans under the accounting guidance for purchased financial assets with credit deterioration when, at the time of purchase, the loans have experienced a more-than-insignificant deterioration in credit quality since origination. We also account for loans under this guidance when the loans were previously accounted for under the accounting guidance for purchased credit impaired loans and debt securities (“PCI”) prior to our adoption of the CECL standard. We refer to these loans which are accounted for under accounting guidance for purchased financial assets with more-than-insignificant deterioration in credit quality since origination as “PCD loans”. We recognize an allowance for credit losses on purchased loans that have not experienced a more-than-insignificant deterioration in credit quality since origination at the time of purchase through earnings in a manner that is consistent with originated loans. The policies relating to the allowance for credit losses on loans is described below in the “Allowance for Credit Losses - Loans Held for Investment” section of this Note. 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, if any. Our loan modifications typically include short-term payment deferrals, an extension of the loan term, a reduction in the interest rate, a reduction in the loan balance, or a combination of these concessions. 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”). See “Note 3—Loans” for additional information on our loan modifications and restructurings, including those in response to the COVID-19 pandemic. 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. For loan modifications, delinquency and nonaccrual status are reported in accordance with the revised terms of the loans. 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. 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 in 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. 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 deferred loan fees, costs, premiums and discounts is suspended. Interest and fee income are 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. Charge-Offs We charge off loans when we determine that the loan is uncollectible. The amortized cost basis, excluding accrued interest, is charged off as a reduction to the allowance for credit losses based on the time frames presented below. Accrued interest on loans other than credit card loans determined to be uncollectible is reversed as a reduction of interest income when the loan is classified as nonperforming. For credit card loans, accrued interest is charged off simultaneously with the charge off of other components of amortized cost and as a reduction of interest income. When received, recoveries of previously charged off amounts are recorded as an increase to the allowance for credit losses (see the “Allowance for Credit Losses - Loans Held for Investment” section of this Note for information on how we account for expected recoveries). 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 generally charged off 5 days after 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 period for auto loans is 120 days past due. Small business banking loans generally charge off at 120 days past due based on the date the amortized cost basis is deemed uncollectible. Auto loans that have not been previously charged off 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 loans that have not been previously 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 amortized cost basis is uncollectible. |
Allowance for Credit Losses | Allowance for Credit Losses - Available for Sale Investment Securities We maintain an allowance for credit losses (“allowance”) that represents management’s current estimate of expected credit losses over the contractual terms of our investment securities classified as available for sale. When an investment security available for sale is impaired due to credit factors, we recognize a provision for credit losses in our consolidated statements of income and an allowance for credit losses on our consolidated balance sheets. Credit losses recognized in the allowance for credit losses are limited to the amount by which the investment security’s amortized cost basis exceeds its fair value. Investment securities in unrealized gain positions do not have an allowance for credit losses as the investment security could be sold at its fair value to prevent realization of credit losses. We exclude accrued interest from the fair value and amortized cost basis of an investment security for purposes of measuring impairment. Charge-offs of uncollectible amounts of investment securities are deducted from the allowance for credit losses. For certain of our securities available for sale, we have determined that there is no risk of impairment due to credit factors. These investment securities include high quality debt instruments that are issued and guaranteed by the United States government and its agencies or are issued through certain government-sponsored enterprises. Management performs periodic assessments to reevaluate this conclusion by considering any changes in historical losses, current conditions, and reasonable and supportable forecasts. We evaluate impairment on a quarterly basis at the individual security level and determine whether any portion of the decline in fair value is due to a credit loss. We make this determination through the use of quantitative and qualitative analyses. Our qualitative analysis includes factors such as the extent to which fair value is less than amortized cost, any changes in the security’s credit rating, past defaults or delayed payments, and adverse conditions impacting the security or issuer. A credit loss exists to the extent that management does not expect to recover the amortized cost basis. For investment securities which require further assessment, we perform a quantitative analysis using a discounted cash flow methodology and compare the present value of expected future cash flows from the security available for sale to the security’s amortized cost basis. Projected future cash flows reflect management’s best estimate and are based on our understanding of past events, current conditions, reasonable and supportable forecasts, and are discounted by the security’s effective interest rate adjusted for prepayments. The allowance for credit losses for investment securities reflects the difference by which the amortized cost basis exceeds the present value of future cash flows and is limited to the amount by which the security’s amortized cost exceeds its fair value. See “Note 2—Investment Securities” for additional information. Allowance for Credit Losses - Loans Held for Investment We maintain an allowance for credit losses (“allowance”) that represents management’s current estimate of expected credit losses over the contractual terms of our loans held for investment. We measure the allowance on a quarterly basis through consideration of past events, including historical experience, current conditions and reasonable and supportable forecasts. We measure current expected credit losses over the contractual terms of our loans. The contractual terms are adjusted for expected prepayments but are not extended for renewals or extensions, except when an extension or renewal arises from a borrower option that is not unconditionally cancellable or through a TDR that is reasonably expected to occur. We aggregate loans sharing similar risk characteristics into pools for purposes of measuring expected credit losses. Pools are reassessed periodically to confirm that all loans within each pool continue to share similar risk characteristics. Expected credit losses for loans that do not share similar risk characteristics with other financial assets are measured individually. Expected recoveries of amounts previously charged off or expected to be charged off are recognized within the allowance, with a corresponding reduction to our provision for credit losses. At times expected recoveries may result in a negative allowance. We limit the allowance to amounts previously charged off and expected to be charged off. Charge-offs of uncollectible amounts result in a reduction to the allowance and recoveries of previously charged off amounts result in an increase to the allowance. When developing an estimate of expected credit losses, we use both quantitative and qualitative methods in considering all available information relevant to assessing collectability. This may include internal information, external information, or a combination of both relating to past events, current conditions, and reasonable and supportable forecasts. Significant judgment is applied to the development and duration of reasonable and supportable forecasts used in our estimation of lifetime losses. We estimate expected credit losses over the duration of those forecasts and then revert, on a rational and systematic basis, to historical losses at each relevant loss component of the estimate. Expected losses for contractual terms extending beyond the reasonable and supportable forecast and reversion periods are based on those historical losses. Management will consider and may qualitatively adjust for conditions, changes and trends in loan portfolios that may not be captured in modeled results. These adjustments are referred to as qualitative factors and represent management’s judgment of the imprecision and risks inherent in the processes and assumptions used in establishing the allowance for credit losses. Management’s judgment may involve an assessment of current and forward-looking conditions including but not limited to changes in lending policies and procedures, nature and volume of the portfolio, external factors, and uncertainty as it relates to economic, model or forecast risks, where not already captured in the modeled results. Expected credit losses for collateral-dependent loans are based on the fair value of the underlying collateral. When we intend to liquidate the collateral, the fair value of the collateral is adjusted for expected costs to sell. A loan is deemed to be a collateral-dependent loan when (i) we determine foreclosure or repossession of the underlying collateral is probable, or (ii) foreclosure or repossession is not probable, but the borrower is experiencing financial difficulty and we expect repayment to be provided substantially through the operation or sale of the collateral. The allowance for a collateral-dependent loan reflects the difference between the loan’s amortized cost basis and the fair value (less selling costs, where applicable) of the loan's underlying collateral. Our credit card and consumer banking loan portfolios consist of smaller-balance, homogeneous loans. The consumer banking loan portfolio is divided into two primary portfolio segments: auto loans and retail banking loans. The credit card and consumer banking loan portfolios are further divided by our business units into groups based on common risk characteristics, such as origination year, contract type, interest rate, borrower credit score and geography. The commercial banking loan portfolio is primarily composed of larger-balance, non-homogeneous loans. These loans are subject to reviews that result in internal risk ratings. In assessing the risk rating of a particular commercial banking 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 and measuring expected credit losses. Subjective assessment and interpretation are involved. Emphasizing one factor over another or considering additional factors could impact the risk rating assigned to that commercial banking loan. For consumer banking and commercial banking loans, the contractual period typically does not include renewals or extensions because the renewals and extensions are generally not at the borrower’s exclusive option to exercise. Management has determined that the undrawn credit exposure that is associated with our credit card loans is unconditionally cancellable. For this reason, expected credit losses are measured based on the drawn balance at each quarterly measurement date, but not on the undrawn exposure. Because credit card loans do not have a defined contractual life, management estimates both the volume and application of payments to determine a contractual life of the drawn balance at the measurement date over which expected credit losses are developed for credit card loans. With the exception of credit card loans, we have made a policy election to not measure an allowance on accrued interest for loans held for investment because we reverse uncollectible accrued interest in a timely manner. See the “Delinquent and Nonperforming Loans” and “Charge-Offs - Loans” sections of this Note for information on what we consider timely. For credit card loans, we do not make this election, as we reserve for uncollectible accrued interest relating to credit card loans in the allowance. The allowance related to credit card and consumer banking loans assessed on a pooled basis is based on a modeled 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 historical losses in each pool based upon various statistical analyses, with adjustments for current conditions and reasonable and supportable forecasts of conditions, which includes expected economic conditions. Loss forecast models are utilized to estimate expected credit losses and consider several portfolio indicators including, but not limited to, expected economic conditions, historical loss experience, account seasoning, the value of collateral underlying secured loans, estimated foreclosures or defaults based on observable trends, delinquencies, bankruptcy filings, unemployment, borrower credit scores and general business trends. Management believes these factors are relevant in estimating expected credit losses 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. The allowance related to commercial banking loans assessed on a pooled basis 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. These are adjusted for current conditions, and reasonable and supportable forecasts of conditions likely to cause future losses which vary from historical levels. We apply internal risk ratings to commercial banking 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 allowance related to smaller-balance homogeneous credit card and consumer banking loans whose terms have been modified in a TDR is calculated on a pool basis using historical loss experience, adjusted for current conditions and reasonable and supportable forecasts of conditions likely to cause future losses which vary from historical levels for the respective class of assets. The allowance related to consumer banking loans that are assessed at a loan-level is determined based on key considerations that 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. The allowance related to commercial banking loans that are assessed at a loan-level is generally determined in accordance with our policy for estimating expected credit losses for collateral-dependent loans as described above. Off-balance sheet credit exposures In addition to the allowance, we also measure expected credit losses related to unfunded lending commitments that are not unconditionally cancellable in our Commercial Banking business. This reserve is measured using the same measurement objectives as the allowance for loans held for investment and is recorded within other liabilities on our consolidated balance sheets. These commitments are segregated by risk according to our internal risk rating scale, which we use to assess credit quality and derive an expected credit loss estimate. We assess these risk classifications, taking into consideration both quantitative and qualitative factors, including historical loss experience, adjusted for current conditions and reasonable and supportable forecasts of conditions likely to cause future losses which vary from historical levels, and utilization assumptions to estimate the reserve for unfunded lending commitments. Expected credit losses are not measured on unfunded lending commitments that are unconditionally cancellable, including all of our unfunded credit card and consumer banking lending commitments and certain of our unfunded commercial banking lending commitments. Determining the appropriateness of the allowance and the reserve for unfunded lending commitments 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 reserve for unfunded lending commitments in future periods. See “Note 4—Allowance for Credit Losses and Reserve for Unfunded Lending Commitments” for additional information. Significant Accounting Policies Prior to our Adoption of the CECL Standard Loans Held for Investment - Estimate of Incurred Loan and Lease Losses In periods prior to 2020, the allowance represented management’s current estimate of incurred loan and lease losses inherent in our loans held for investment portfolio as of each balance sheet date. The provision for credit losses reflected credit losses we believed had been incurred and would eventually be recognized over time through charge-offs. Management performed a quarterly analysis of our loan portfolio to determine if impairment had occurred and to assess the adequacy of the allowance based on historical and current trends as well as other factors affecting credit losses. We applied documented systematic methodologies to separately calculate the allowance for our credit card, consumer banking and commercial banking loan portfolios. Our allowance for loan and lease losses consisted of three components that were 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 experienced significant decreases in expected cash flows subsequent to acquisition. Each of our allowance components was supplemented by an amount that represented management’s qualitative judgment of the imprecision and risks inherent in the processes and assumptions used in establishing the allowance. The component of the allowance related to credit card and consumer banking loans that we collectively evaluated for impairment was based on a statistical calculation. The component of the allowance for commercial banking loans that we collectively evaluated for impairment was based on our historical loss experience for loans with similar risk characteristics and consideration of the current credit quality of the portfolio. The asset-specific component of the allowance includes smaller-balance homogeneous credit card and consumer banking loans whose terms have been modified in a TDR and larger-balance nonperforming, non-homogeneous commercial banking loans. We generally measured 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. In addition to the allowance, we also estimated probable losses related to contractually binding unfunded lending commitments. Loans Acquired - Credit Impaired For PCI loans, we aggregated 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, decreases in expected cash flows resulting from credit deterioration subsequent to acquisition generally resulted 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. See “Note 3—Loans” for additional information. We recorded charge-offs on PCI loans only if actual losses exceed estimated credit losses incorporated into the fair value recorded at acquisition. Further, PCI loans are not classified as delinquent or nonperforming. |
Securitization of Loans | Our loan securitization activities primarily involve the securitization of credit card and auto loans, which provides a source of funding for us. See “Note 5—Variable Interest Entities and Securitizations” for additional details. Loan securitization involves the transfer of a pool of loan receivables from our portfolio to a trust. The trust then sells an undivided interest in the pool of loan receivables to third-party investors through the issuance of debt securities and transfers the proceeds from the debt issuance to us as consideration for the loan receivables transferred. The debt securities are collateralized by the loan receivables transferred from our portfolio. We remove loans from our consolidated balance sheets when securitizations qualify as sales to non-consolidated VIEs, recognize assets retained and liabilities assumed at fair value and record a gain or loss on the transferred loans. Alternatively, when the transfer does not qualify as a sale but instead is considered a secured borrowing, the assets will remain on our consolidated balance sheets with an offsetting liability recognized for the amount of proceeds received. |
Premises and Equipment | 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 lease term 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 7—Premises, Equipment and Leases” for additional information. |
Leases | Lease classification is determined at inception for all lease transactions with an initial term greater than one year. Operating leases are included as right-of-use (“ROU”) assets within other assets, and operating lease liabilities are classified as other liabilities on our consolidated balance sheets. Finance leases are included in premises and equipment, and other borrowings on our consolidated balance sheets. Our operating lease expense is included in occupancy and equipment within non-interest expense in our consolidated statements of income. Lease expense for minimum lease payments are recognized on a straight-line basis over the lease term. See “Note 7—Premises, Equipment and Leases” for additional information. |
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 6—Goodwill and Intangible Assets” for additional information. |
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. Commercial MSRs are subsequently accounted for under the amortization method. We evaluate for impairment as of each reporting date and recognize any impairment in other non-interest income. See “Note 6—Goodwill and Intangible Assets” for additional information. |
Foreclosed Property and Repossessed Asset | Foreclosed property and repossessed assets obtained through our lending activities typically include commercial real estate or personal property, such as automobiles, and are recorded at net realizable value. 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 16—Fair Value Measurement” for details. |
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 if there is any indicator of impairment. |
Litigation | 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. Professional service fees, including lawyers’ and experts’ fees, expected to be incurred in connection with a loss contingency are expensed as services are provided. See “Note 18—Commitments, Contingencies, Guarantees and Others” for additional information. |
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 $5.4 billion and $4.7 billion as of December 31, 2020 and 2019, respectively. |
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. Costs deferred include direct origination costs such as bounties paid to third parties for new accounts and incentives paid to our network of auto dealers for loan referrals. 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 generally recognized in interest income over the contractual lives of the securities using the effective interest method. However, premiums for certain callable investment securities are amortized to the earliest call date. 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. Unbilled finance charges and fees on credit card loans are included in interest receivable on our consolidated balance sheets. Annual membership fees are classified as service charges and other customer-related fees in our consolidated statements of income and 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. Interchange Income Interchange income generally 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 set by MasterCard and Visa and can vary based on cardholder purchase volumes, among other factors. We recognize interchange income upon settlement. See “Note 17—Business Segments and Revenue from Contracts with Customers” for additional details. Card Partnership Agreements We have contractual agreements with certain 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 reductions of revenue, marketing expenses or other operating expenses. Our credit card partnership agreements may also provide for profit or revenue sharing payments which are presented as a reduction of the related revenue line item(s) when owed to the partner. When a partner agrees to share a portion of the credit losses associated with the partnership, we evaluate the contractual provisions for the loss share payments as well as applicable accounting guidance to determine whether to present the sharing of losses on a gross or net basis in our consolidated financial statements. 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 credit losses attributable to these portfolios is also reduced by the expected reimbursements from these partners for loss sharing amounts. See “Note 4—Allowance for Credit 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 credit losses is not reduced by the expected loss share reimbursements, but rather an indemnification asset is recorded. Our consolidated net income is the same regardless of how revenue and loss sharing arrangements are reported. 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 $1.1 billion, $1.0 billion and $1.3 billion in December 31, 2020, 2019 and 2018, respectively, for amounts earned by the partner pursuant to the partnership agreement. The impact of all of our loss sharing arrangements that are presented on a net basis is included in “Note 4—Allowance for Credit Losses and Reserve for Unfunded Lending Commitments.” |
Stock-based Compensation | We are authorized to issue stock–based compensation to employees and directors in various forms, primarily as restricted stock units (“RSUs”), performance share units and stock options. 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. For RSUs and performance share units, 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. 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. 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 13—Stock-Based Compensation Plans” for additional details. |
Marketing Expenses | Marketing expense includes the cost of our various promotional efforts to attract and retain customers such as advertising, promotional materials, and certain customer incentives. 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 15—Income Taxes” for additional details |
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 non-forfeitable dividends, which 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 |
Derivatives 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 9—Derivative Instruments and Hedging Activities” for additional details. |
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. See “Note 16—Fair Value Measurement” for additional information. |
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 | Accounting Standards Adopted During the Twelve Months Ended December 31, 2020 Standard Guidance Adoption Timing and Financial Statement Impacts 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). We adopted this guidance in the first quarter of 2020 using the prospective 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 Historical guidance for goodwill impairment testing prescribed that the company must compare each 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 and then records an impairment. This ASU eliminates the second step. Under the new guidance, an 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. We adopted this guidance in the first quarter of 2020 using the prospective method of adoption. Our adoption of this standard did not have a material impact on our consolidated financial statements. 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 use of the current expected credit loss model that is based on expected losses (net of expected recoveries), 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 purchased credit-impaired (“PCI”) and impaired loans. Amends the other-than-temporary impairment model for available for sale debt securities. The new guidance requires that credit losses 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. We adopted this guidance in the first quarter of 2020, using the modified retrospective method of adoption. Upon adoption, we recorded an increase to our reserves for credit losses of $2.9 billion, an increase to our deferred tax assets of $694 million, and a decrease to our retained earnings of $2.2 billion. Additionally, we made a prospective change to present our finance charge and fee reserve as a component of our allowance for credit losses instead of as an offset to our loans held for investment. This balance sheet reclassification increased our allowance for credit losses by $462 million as of January 1, 2020, with a corresponding increase to our loans held for investment. Reference Rate Reform ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effect of Reference Rate Reform on Financial Reporting Issued March 2020 The amendments in this ASU provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. This ASU is effective from March 12, 2020 through December 31, 2022 with early adoption as of January 1, 2020 permitted. We adopted certain provisions related to derivative contract modifications and hedge accounting in this guidance in the fourth quarter of 2020, using the prospective method of adoption. The early adoption of the expedients in the guidance eased the administrative burden of accounting for London Interbank Offering Rate (“LIBOR”) related contract modifications. Our adoption of this standard did not have a material impact on our consolidated financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019. Accrued interest receivable of $230 million as of December 31, 2020 is not included in the below table. Table 2.1: Investment Securities Available for Sale December 31, 2020 (Dollars in millions) Amortized Allowance Gross Gross Fair Investment securities available for sale: U.S. Treasury securities $ 9,302 $ 0 $ 16 $ 0 $ 9,318 RMBS: Agency 73,248 0 2,326 (108) 75,466 Non-agency 1,035 (1) 204 (1) 1,237 Total RMBS 74,283 (1) 2,530 (109) 76,703 Agency CMBS 11,298 0 448 (11) 11,735 Other securities (1) 2,686 0 3 0 2,689 Total investment securities available for sale $ 97,569 $ (1) $ 2,997 $ (120) $ 100,445 December 31, 2019 (Dollars in millions) Amortized Gross Gross Fair Investment securities available for sale: U.S. Treasury securities $ 4,122 $ 6 $ (4) $ 4,124 RMBS: Agency 62,003 1,120 (284) 62,839 Non-agency 1,235 266 (2) 1,499 Total RMBS 63,238 1,386 (286) 64,338 Agency CMBS 9,303 165 (42) 9,426 Other securities (1) 1,321 4 0 1,325 Total investment securities available for sale $ 77,984 $ 1,561 $ (332) $ 79,213 __________ (1) Includes $1.8 billion and $117 million of asset-backed securities (“ABS”) as of December 31, 2020, and 2019, respectively. The remaining amount is primarily comprised of supranational bonds and foreign government bonds. |
Schedule of Available-for-Sale Securities in Gross Unrealized Loss Position | The table below provides the gross unrealized losses and fair value of our securities available for sale aggregated by major security type and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2020 and 2019. The amounts as of December 31, 2020 only include securities available for sale without an allowance for credit losses. Table 2.2: Securities in a Gross Unrealized Loss Position December 31, 2020 Less than 12 Months 12 Months or Longer Total (Dollars in millions) Fair Value Gross Fair Value Gross Fair Value Gross Investment securities available for sale without an allowance for credit losses: U.S. Treasury securities $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 RMBS: Agency 7,424 (57) 1,791 (51) 9,215 (108) Non-agency 12 0 0 0 12 0 Total RMBS 7,436 (57) 1,791 (51) 9,227 (108) Agency CMBS 1,545 (7) 267 (4) 1,812 (11) Other securities (1) 114 0 1 0 115 0 Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses (2) $ 9,095 $ (64) $ 2,059 $ (55) $ 11,154 $ (119) December 31, 2019 Less than 12 Months 12 Months or Longer Total (Dollars in millions) Fair Value Gross Fair Value Gross Fair Value Gross Investment securities available for sale: U.S. Treasury securities $ 2,647 $ (4) $ 0 $ 0 $ 2,647 $ (4) RMBS: Agency 10,494 (92) 10,567 (192) 21,061 (284) Non-agency 35 (1) 16 (1) 51 (2) Total RMBS 10,529 (93) 10,583 (193) 21,112 (286) Agency CMBS 2,580 (23) 1,563 (19) 4,143 (42) Other securities (1) 126 0 106 0 232 0 Total investment securities available for sale in a gross unrealized loss position $ 15,882 $ (120) $ 12,252 $ (212) $ 28,134 $ (332) __________ (1) Includes primarily other asset-backed securities, foreign government bonds, and supranational bonds. (2) Consists of approxima tely 320 se cur ities in gross unrealized loss positions as of December 31, 2020. |
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, 2020. 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 2.3: Contractual Maturities and Weighted-Average Yields of Securities December 31, 2020 (Dollars in millions) Due in Due > 1 Year Due > 5 Years Due > 10 Years Total Fair value of securities available for sale: U.S. Treasury securities $ 202 $ 9,116 $ 0 $ 0 $ 9,318 RMBS (1) : Agency 0 65 1,175 74,226 75,466 Non-agency 0 0 0 1,237 1,237 Total RMBS 0 65 1,175 75,463 76,703 Agency CMBS (1) 90 2,896 5,645 3,104 11,735 Other securities 340 2,073 276 0 2,689 Total securities available for sale $ 632 $ 14,150 $ 7,096 $ 78,567 $ 100,445 Amortized cost of securities available for sale $ 628 $ 14,091 $ 6,860 $ 75,990 $ 97,569 Weighted-average yield for securities available for sale 1.43 % 0.74 % 1.76 % 2.20 % 1.96 % __________ (1) As of December 31, 2020, the weighted-average expected maturities of RMBS and Agency CMBS are 4.0 years and 5.6 years, respectively. |
Schedule of Realized Gain (Loss) | The following table presents the gross realized gains or losses and proceeds from the sale of securities available for sale for the years ended December 31, 2020, 2019 and 2018. We did not sell any investment securities that were classified as held to maturity in those periods where we had securities in that classification. Table 2.4: Realized Gains and Losses on Securities Year Ended December 31, (Dollars in millions) 2020 2019 2018 Realized gains (losses): Gross realized gains $ 25 $ 44 $ 13 Gross realized losses 0 (18) (21) Net realized gains (losses) $ 25 $ 26 $ (8) Total proceeds from sales $ 812 $ 4,780 $ 6,399 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loan Portfolio Composition and Aging Analysis | The table below presents the composition and aging analysis of our loans held for investment portfolio as of December 31, 2020 and 2019. The delinquency aging includes all past due loans, both performing and nonperforming. Table 3.1: Loan Portfolio Composition and Aging Analysis December 31, 2020 Delinquent Loans (Dollars in millions) Current 30-59 60-89 > 90 Days Total Total Credit Card: Domestic credit card $ 96,116 $ 755 $ 464 $ 1,169 $ 2,388 $ 98,504 International card businesses 8,218 90 58 86 234 8,452 Total credit card 104,334 845 522 1,255 2,622 106,956 Consumer Banking: Auto 62,381 2,252 907 222 3,381 65,762 Retail banking 3,064 28 19 15 62 3,126 Total consumer banking 65,445 2,280 926 237 3,443 68,888 Commercial Banking: Commercial and multifamily real estate 30,340 136 22 183 341 30,681 Commercial and industrial 44,941 69 15 74 158 45,099 Total commercial banking 75,281 205 37 257 499 75,780 Total loans (1) $ 245,060 $ 3,330 $ 1,485 $ 1,749 $ 6,564 $ 251,624 % of Total loans 97.4 % 1.3 % 0.6 % 0.7 % 2.6 % 100.0 % December 31, 2019 Delinquent Loans (Dollars in millions) Current 30-59 60-89 > 90 Days Total PCI Total Credit Card: Domestic credit card $ 113,857 $ 1,341 $ 1,038 $ 2,277 $ 4,656 $ 93 $ 118,606 International card businesses 9,277 133 84 136 353 0 9,630 Total credit card 123,134 1,474 1,122 2,413 5,009 93 128,236 Consumer Banking: Auto 55,778 2,828 1,361 395 4,584 0 60,362 Retail banking 2,658 24 8 11 43 2 2,703 Total consumer banking 58,436 2,852 1,369 406 4,627 2 63,065 Commercial Banking: Commercial and multifamily real estate 30,157 43 20 4 67 21 30,245 Commercial and industrial 44,009 75 26 143 244 10 44,263 Total commercial banking 74,166 118 46 147 311 31 74,508 Total loans (1) $ 255,736 $ 4,444 $ 2,537 $ 2,966 $ 9,947 $ 126 $ 265,809 % of Total loans 96.2 % 1.6 % 1.0 % 1.1 % 3.7 % 0.1 % 100.0 % __________ |
90 Plus Day Delinquent Loans Accruing Interest and Nonperforming Loans | The following table presents our loans held for investment that are 90 days or more past due that continue to accrue interest and loans that are classified as nonperforming as of December 31, 2020 and 2019. We also present nonperforming loans without an allowance as of December 31, 2020. Nonperforming loans generally include loans that have been placed on nonaccrual status. Table 3.2: 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans December 31, 2020 December 31, 2019 (Dollars in millions) > 90 Days and Accruing Nonperforming Loans (1) Nonperforming > 90 Days and Accruing Nonperforming Credit Card: Domestic credit card $ 1,169 N/A $ 0 $ 2,277 N/A International card businesses 82 $ 21 0 130 $ 25 Total credit card 1,251 21 0 2,407 25 Consumer Banking: Auto 0 294 0 0 487 Retail banking 0 30 0 0 23 Total consumer banking 0 324 0 0 510 Commercial Banking: Commercial and multifamily real estate 51 200 184 0 38 Commercial and industrial 0 450 265 0 410 Total commercial banking 51 650 449 0 448 Total $ 1,302 $ 995 $ 449 $ 2,407 $ 983 % of Total loans held for investment 0.5 % 0.4 % 0.2 % 0.9 % 0.4 % __________ (1) We recognized interest income for loans classified as nonperforming of $39 million for the year ended December 31, 2020. |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
TDR Disclosures | The following tables present the major modification types, amortized cost amounts and financial effects of loans modified in TDRs during the years ended December 31, 2020, 2019 and 2018. Table 3.6: Troubled Debt Restructurings Total Loans Modified (1) Year Ended December 31, 2020 Reduced Interest Rate Term Extension Balance Reduction (Dollars in millions) % of TDR Activity (2) Average Rate Reduction % of TDR Activity (2) Average Term Extension (Months) % of TDR Activity (2) Gross Balance Reduction Credit Card: Domestic credit card $ 243 100 % 15.94 % 0 % 0 0 % $ 0 International card businesses 168 100 27.38 0 0 0 0 Total credit card 411 100 20.61 0 0 0 0 Consumer Banking: Auto 536 11 5.68 95 3 0 1 Retail banking 5 11 10.86 20 8 0 0 Total consumer banking 541 11 5.73 94 3 0 1 Commercial Banking: Commercial and multifamily real estate 98 0 0.00 86 5 0 0 Commercial and industrial 439 4 0.14 52 21 4 7 Total commercial banking 537 3 0.14 58 17 3 7 Total $ 1,489 33 18.06 55 8 1 $ 8 Total Loans Modified (1) Year Ended December 31, 2019 Reduced Interest Rate Term Extension Balance Reduction (Dollars in millions) % of TDR Activity (2) Average Rate Reduction % of TDR Activity (2) Average Term Extension (Months) % of (2) Gross Credit Card: Domestic credit card $ 351 100 % 16.60 % 0 % 0 0 % $ 0 International card businesses 173 100 27.28 0 0 0 0 Total credit card 524 100 20.12 0 0 0 0 Consumer Banking: Auto 268 39 3.63 90 7 1 1 Retail banking 7 11 10.66 54 3 33 0 Total consumer banking 275 38 3.68 89 7 2 1 Commercial Banking: Commercial and multifamily real estate 39 87 0.00 13 1 0 0 Commercial and industrial 159 3 0.33 20 8 0 0 Total commercial lending 198 19 0.04 18 7 0 0 Small-ticket commercial real estate 1 0 0.00 0 0 0 0 Total commercial banking 199 19 0.04 18 7 0 0 Total $ 998 67 16.37 28 7 0 $ 1 Total Loans Modified (1) Year Ended December 31, 2018 Reduced Interest Rate Term Extension Balance Reduction (Dollars in millions) % of TDR Activity (2) Average Rate Reduction % of TDR Activity (2) Average Term Extension (Months) % 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 __________ (1) Represents the amortized cost of total loans modified in TDRs at the end of the period 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. The following table presents the type, number and amortized cost 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 3.7: TDRs—Subsequent Defaults Year Ended December 31, 2020 2019 2018 (Dollars in millions) Number of Contracts Amount Number of Contracts Amount Number of Amount Credit Card: Domestic credit card 32,639 $ 69 47,086 $ 99 61,070 $ 126 International card businesses 58,363 87 69,470 110 61,014 106 Total credit card 91,002 156 116,556 209 122,084 232 Consumer Banking: Auto 5,877 77 5,575 70 6,980 79 Home loan 0 0 0 0 3 1 Retail banking 10 1 24 2 26 2 Total consumer banking 5,887 78 5,599 72 7,009 82 Commercial Banking: Commercial and multifamily real estate 1 50 0 0 1 3 Commercial and industrial 15 130 1 25 26 120 Total commercial banking 16 180 1 25 27 123 Total 96,905 $ 414 122,156 $ 306 129,120 $ 437 |
Credit Card | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Credit Quality Indicator | The table below presents our credit card portfolio by delinquency status as of December 31, 2020. Table 3.3: Credit Card Delinquency Status December 31, 2020 (Dollars in millions) Revolving Loans Revolving Loans Converted to Term Total Credit Card: Domestic credit card: Current $ 95,629 $ 487 $ 96,116 30-59 days 734 21 755 60-89 days 451 13 464 Greater than 90 days 1,155 14 1,169 Total domestic credit card 97,969 535 98,504 International card businesses: Current 8,152 66 8,218 30-59 days 79 11 90 60-89 days 47 11 58 Greater than 90 days 76 10 86 Total international card businesses 8,354 98 8,452 Total credit card $ 106,323 $ 633 $ 106,956 |
Consumer Banking | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Credit Quality Indicator | The table below presents our consumer banking portfolio of loans held for investment by credit quality indicator as of December 31, 2020 and 2019. We present our auto loan portfolio by FICO scores at origination and our retail banking loan portfolio by delinquency status, which includes all past due loans, both performing and nonperforming. Table 3.4: Consumer Banking Portfolio by Credit Quality Indicator December 31, 2020 Term Loans by Vintage Year (Dollars in millions) 2020 2019 2018 2017 2016 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total December 31, 2019 Auto — At origination FICO scores: (1) Greater than 660 $ 13,352 $ 8,091 $ 4,675 $ 2,810 $ 1,168 $ 203 $ 30,299 $ 0 $ 0 $ 30,299 $ 28,773 621-660 5,781 3,631 2,003 1,172 488 109 13,184 0 0 13,184 11,924 620 or below 9,550 6,298 3,317 1,985 886 243 22,279 0 0 22,279 19,665 Total auto 28,683 18,020 9,995 5,967 2,542 555 65,762 0 0 65,762 60,362 Retail banking—Delinquency status: Current 1,041 233 206 222 167 537 2,406 651 7 3,064 2,658 30-59 days 0 0 7 1 2 2 12 15 1 28 24 60-89 days 0 0 1 0 5 4 10 8 1 19 8 Greater than 90 days 0 0 0 1 1 4 6 9 0 15 11 Total retail banking (2) 1,041 233 214 224 175 547 2,434 683 9 3,126 2,701 Total consumer banking $ 29,724 $ 18,253 $ 10,209 $ 6,191 $ 2,717 $ 1,102 $ 68,196 $ 683 $ 9 $ 68,888 $ 63,063 __________ (1) Amounts represent period-end loans held for investment in each credit score category. Auto credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category. (2) Includes Paycheck Protection Program (“PPP”) loans of $919 million as of December 31, 2020. |
Commercial Banking | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Credit Quality Indicator | The following table presents our commercial banking portfolio of loans held for investment by internal risk ratings as of December 31, 2020 and 2019. The internal risk rating status includes all past due loans, both performing and nonperforming. Table 3.5: Commercial Banking Portfolio by Internal Risk Ratings December 31, 2020 Term Loans by Vintage Year (Dollars in millions) 2020 2019 2018 2017 2016 Prior Total Term Loans Revolving Loans Revolving Loans Converted to Term Total Internal risk rating: (1) Commercial and multifamily real estate Noncriticized $ 3,791 $ 4,932 $ 3,232 $ 1,437 $ 1,649 $ 4,904 $ 19,945 $ 7,114 $ 0 $ 27,059 Criticized performing 320 446 515 355 391 1,258 3,285 112 25 3,422 Criticized nonperforming 0 11 30 6 3 150 200 0 0 200 Total commercial and multifamily real estate 4,111 5,389 3,777 1,798 2,043 6,312 23,430 7,226 25 30,681 Commercial and industrial Noncriticized 9,761 7,890 4,043 2,717 1,832 3,034 29,277 11,548 80 40,905 Criticized performing 316 794 521 252 106 215 2,204 1,498 42 3,744 Criticized nonperforming 74 108 25 51 9 0 267 183 0 450 Total commercial and industrial 10,151 8,792 4,589 3,020 1,947 3,249 31,748 13,229 122 45,099 Total commercial banking (2) $ 14,262 $ 14,181 $ 8,366 $ 4,818 $ 3,990 $ 9,561 $ 55,178 $ 20,455 $ 147 $ 75,780 December 31, 2019 (Dollars in millions) Commercial and Multifamily Real Estate % of Total Commercial and Industrial % of Total Total Commercial Banking % of Total Internal risk rating: (1) Noncriticized $ 29,625 97.9 % $ 42,223 95.4 % $ 71,848 96.5 % Criticized performing 561 1.9 1,620 3.7 2,181 2.9 Criticized nonperforming 38 0.1 410 0.9 448 0.6 PCI loans 21 0.1 10 0.0 31 0.0 Total $ 30,245 100.0 % $ 44,263 100.0 % $ 74,508 100.0 % __________ (1) Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities. (2) Includes PPP loans of $238 million as of December 31, 2020. |
Allowance for Credit Losses a_2
Allowance for Credit Losses and Reserve for Unfunded Lending Commitments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 credit losses and reserve for unfunded lending commitments by portfolio segment for the years ended December 31, 2020, 2019 and 2018. The allowance balance as of December 31, 2020 reflects the cumulative effects from adoption of the CECL standard and the change to include finance charge and fee reserve in the allowance for credit losses. The reserve for unfunded lending commitments balance as of December 31, 2020 also reflects the cumulative effects from adoption of the CECL standard, including the component of loss sharing agreements with the government-sponsored enterprises (“GSEs”) on multifamily commercial real estate loans that are within the scope of the CECL standard. Our allowance for credit losses increased by $8.4 billion to $15.6 billion as of December 31, 2020 from 2019, primarily driven by the allowance builds in the first and second quarters of 2020 from expectations of economic worsening as a result of the COVID-19 pandemic as well as the adoption of the CECL standard in the first quarter of 2020. Table 4.1: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity (Dollars in millions) Credit Consumer Commercial Other (1) 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 (2) 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)(3) (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 (Dollars in millions) Credit Card Consumer Banking Commercial Banking Total Allowance for loan and lease losses: Balance as of December 31, 2018 $ 5,535 $ 1,048 $ 637 $ 7,220 Charge-offs (6,711) (1,917) (181) (8,809) Recoveries (2) 1,562 970 25 2,557 Net charge-offs (5,149) (947) (156) (6,252) Provision for loan and lease losses 4,992 937 294 6,223 Allowance build (release) for loan and lease losses (157) (10) 138 (29) Other changes (3) 17 0 0 17 Balance as of December 31, 2019 5,395 1,038 775 7,208 Reserve for unfunded lending commitments: Balance as of December 31, 2018 0 4 118 122 Provision for losses on unfunded lending commitments 0 1 12 13 Balance as of December 31, 2019 0 5 130 135 Combined allowance and reserve as of December 31, 2019 $ 5,395 $ 1,043 $ 905 $ 7,343 Allowance for credit losses: Balance as of December 31, 2019 $ 5,395 $ 1,038 $ 775 $ 7,208 Cumulative effects from adoption of the CECL standard 2,241 502 102 2,845 Finance charge and fee reserve reclassification (4) 462 0 0 462 Balance as of January 1, 2020 8,098 1,540 877 10,515 Charge-offs (5,749) (1,534) (394) (7,677) Recoveries (2) 1,479 956 17 2,452 Net charge-offs (4,270) (578) (377) (5,225) Provision for credit losses 7,327 1,753 1,158 10,238 Allowance build for credit losses (5) 3,057 1,175 781 5,013 Other changes (3) 36 0 0 36 Balance as of December 31, 2020 11,191 2,715 1,658 15,564 Reserve for unfunded lending commitments: Balance as of December 31, 2019 0 5 130 135 Cumulative effects from adoption of the CECL standard 0 (5) 42 37 Balance as of January 1, 2020 0 0 172 172 Provision for losses on unfunded lending commitments 0 0 23 23 Balance as of December 31, 2020 0 0 195 195 Combined allowance and reserve as of December 31, 2020 $ 11,191 $ 2,715 $ 1,853 $ 15,759 __________ (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) The amount and timing of recoveries are 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. (3) Represents foreign currency translation adjustments. (4) Concurrent with our adoption of the CECL standard in the first quarter of 2020, we reclassified our finance charge and fee reserve to our allowance for credit losses, with a corresponding increase to credit card loans held for investment. (5) Includes an allowance release of $327 million for a partnership credit card loan portfolio transferred to held for sale in the third quarter of 2020. |
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, 2020, 2019 and 2018. Beginning in 2019, amounts below include the impacts of our loss sharing arrangement on the acquired Walmart portfolio. Table 4.2: Summary of Credit Card Partnership Loss Sharing Arrangements Impacts Year Ended December 31, (Dollars in millions) 2020 2019 2018 Estimated reimbursements from partners, beginning of period (1) $ 2,166 $ 379 $ 380 Amounts due from partners which reduced net charge-offs (959) (600) (382) Amounts estimated to be charged to partners which reduced provision for credit losses 952 1,383 381 Estimated reimbursements from partners, end of period $ 2,159 $ 1,162 $ 379 __________ |
Variable Interest Entities an_2
Variable Interest Entities and Securitizations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019. We separately present information for consolidated and unconsolidated VIEs. Table 5.1: Carrying Amount of Consolidated and Unconsolidated VIEs December 31, 2020 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) $ 22,066 $ 10,338 $ 0 $ 0 $ 0 Auto loan securitizations 2,360 2,055 0 0 0 Home loan securitizations 0 0 55 0 305 Total securitization-related VIEs 24,426 12,393 55 0 305 Other VIEs: (2) Affordable housing entities 242 17 4,602 1,240 4,602 Entities that provide capital to low-income and rural communities 1,951 26 0 0 0 Other 0 0 436 0 436 Total other VIEs 2,193 43 5,038 1,240 5,038 Total VIEs $ 26,619 $ 12,436 $ 5,093 $ 1,240 $ 5,343 December 31, 2019 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) $ 31,112 $ 16,113 $ 0 $ 0 $ 0 Auto loan securitizations 2,282 2,012 0 0 0 Home loan securitizations 0 0 66 0 352 Total securitization-related VIEs 33,394 18,125 66 0 352 Other VIEs: (2) Affordable housing entities 236 7 4,559 1,289 4,559 Entities that provide capital to low-income and rural communities 1,889 69 0 0 0 Other 0 0 502 0 502 Total other VIEs 2,125 76 5,061 1,289 5,061 Total VIEs $ 35,519 $ 18,201 $ 5,127 $ 1,289 $ 5,413 __________ (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. |
External Debt and Receivable Balances of Securitization Programs | The table below presents our continuing involvement in certain securitization-related VIEs as of December 31, 2020 and 2019. Table 5.2: Continuing Involvement in Securitization-Related VIEs (Dollars in millions) Credit Card Auto Mortgages December 31, 2020: Securities held by third-party investors $ 10,361 $ 2,053 $ 790 Receivables in the trust 23,683 2,243 793 Cash balance of spread or reserve accounts 0 10 15 Retained interests Yes Yes Yes Servicing retained Yes Yes No December 31, 2019: Securities held by third-party investors $ 15,798 $ 2,010 $ 962 Receivables in the trust 31,625 2,192 978 Cash balance of spread or reserve accounts 0 7 17 Retained interests Yes Yes Yes Servicing retained Yes Yes No |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019. Goodwill is presented separately, while intangible assets and MSRs are included in other assets on our consolidated balance sheets. Table 6.1: Components of Goodwill, Intangible Assets and MSRs December 31, 2020 (Dollars in millions) Carrying Amount of Assets Accumulated Amortization Net Carrying Amount Weighted Average Remaining Goodwill $ 14,653 N/A $ 14,653 N/A Intangible assets: Purchased credit card relationship (“PCCR”) intangibles 148 $ (138) 10 6.2 years Other (1) 248 (168) 80 7.3 years Total intangible assets 396 (306) 90 7.1 years Total goodwill and intangible assets $ 15,049 $ (306) $ 14,743 Commercial MSRs (2) $ 542 $ (175) $ 367 December 31, 2019 (Dollars in millions) Carrying Amount of Assets Accumulated Amortization Net Carrying Amount Weighted Average Remaining Goodwill $ 14,653 N/A $ 14,653 N/A Intangible assets: PCCR intangibles 1,932 $ (1,864) 68 3.9 years Other (1) 246 (140) 106 6.7 years Total intangible assets 2,178 (2,004) 174 5.6 years Total goodwill and intangible assets $ 16,831 $ (2,004) $ 14,827 Commercial MSRs (2) $ 555 $ (255) $ 300 __________ (1) Primarily consists of intangibles for sponsorship, customer and merchant relationships, partnership, trade name and other contract intangibles. (2) Commercial MSRs are accounted for under the amortization method on our consolidated balance sheets. We recorded $69 million and $70 million of amortization expense for the years ended December 31, 2020 and 2019, respectively. |
Goodwill by Business Segments | There were no changes in the carrying amount of goodwill by each of our business segments for the year ended December 31, 2020, and the following table presents such changes for the years ended December 31, 2019 and 2018.We did not recognize any goodwill impairment during 2020, 2019 or 2018. Table 6.2: Goodwill by Business Segments (Dollars in millions) Credit Consumer Commercial Banking Total 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 Acquisitions 25 46 36 107 Reductions in goodwill related to divestitures 0 (1) 0 (1) Other adjustments (1) 3 0 0 3 Balance as of December 31, 2019 $ 5,088 $ 4,645 $ 4,920 $ 14,653 Balance as of December 31, 2020 $ 5,088 $ 4,645 $ 4,920 $ 14,653 __________ (1) Represents foreign currency translation adjustments and measurement period adjustments on prior period acquisitions. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table summarizes the actual amortization expense recorded for the years ended December 31, 2020, 2019 and 2018 and the estimated future amortization expense for intangible assets as of December 31, 2020: Table 6.3: Amortization Expense (Dollars in millions) Amortization Actual for the year ended December 31, 2018 $ 174 2019 112 2020 60 Estimated future amounts for the year ending December 31, 2021 20 2022 16 2023 13 2024 10 2025 9 Thereafter 14 Total estimated future amounts $ 82 |
Premises, Equipment and Leases
Premises, Equipment and Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment and Lease Commitments [Abstract] | |
Schedule of Property, Plant and Equipment | The following table presents our premises and equipment as of December 31, 2020 and 2019. Table 7.1 Components of Premises and Equipment (Dollars in millions) December 31, 2020 December 31, 2019 Land $ 366 $ 382 Buildings and improvements 3,742 3,903 Furniture and equipment 1,973 2,218 Computer software 2,144 1,996 In progress 768 689 Total premises and equipment, gross 8,993 9,188 Less: Accumulated depreciation and amortization (4,706) (4,810) Total premises and equipment, net $ 4,287 $ 4,378 |
Schedule of Lease Cost | The following tables present information about our operating lease portfolio and the related lease costs as of and for the year ended December 31, 2020. Table 7.2 Operating Lease Portfolio (Dollars in millions) December 31, 2020 December 31, 2019 Right-of-use assets $ 1,316 $ 1,433 Lease liabilities 1,688 1,756 Weighted-average remaining lease term 8.7 years 8.9 years Weighted-average discount rate 3.1 % 3.3 % Table 7.3 Total Operating Lease Expense and Other Information Year Ended December 31, (Dollars in millions) 2020 2019 Operating lease cost $ 315 $ 316 Variable lease cost 43 39 Total lease cost 358 355 Sublease income (26) (26) Net lease cost $ 332 $ 329 Cash paid for amounts included in the measurement of lease liabilities $ 325 $ 328 Right-of-use assets obtained in exchange for lease liabilities 180 112 Right-of-use assets recognized upon adoption of new lease standard 0 1,601 |
Schedule of Future Minimum Lease Payments | The following table presents a maturity analysis of our operating leases and a reconciliation of the undiscounted cash flows to our lease liabilities as of December 31, 2020. Table 7.4 Maturities of Operating Leases and Reconciliation to Lease Liabilities (Dollars in millions) December 31, 2020 2021 $ 296 2022 272 2023 250 2024 216 2025 180 Thereafter 721 Total undiscounted lease payments 1,935 Less: Imputed interest (247) Total lease liabilities $ 1,688 |
Deposits and Borrowings (Tables
Deposits and Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [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, 2020 and 2019. 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 8.1: Components of Deposits, Short-Term Borrowings and Long-Term Debt (Dollars in millions) December 31, 2020 December 31, 2019 Deposits: Non-interest-bearing deposits $ 31,142 $ 23,488 Interest-bearing deposits (1) 274,300 239,209 Total deposits $ 305,442 $ 262,697 Short-term borrowings: Federal funds purchased and securities loaned or sold under agreements to repurchase $ 668 $ 314 FHLB advances 0 7,000 Total short-term borrowings $ 668 $ 7,314 December 31, 2020 December 31, 2019 (Dollars in millions) Maturity Dates Stated Interest Rates Weighted-Average Interest Rate Carrying Value Carrying Value Long-term debt: Securitized debt obligations 2021-2026 0.51% - 3.01% 1.87 % $ 12,414 $ 17,808 Senior and subordinated notes: Fixed unsecured senior debt (2) 2021-2029 0.80 - 4.75 3.24 21,045 23,302 Floating unsecured senior debt 2021-2023 0.64 - 1.36 0.97 1,609 2,695 Total unsecured senior debt 3.08 22,654 25,997 Fixed unsecured subordinated debt 2023-2026 3.38 - 4.20 3.78 4,728 4,475 Total senior and subordinated notes 27,382 30,472 Other long-term borrowings: Finance lease liabilities 2021-2031 0.68 - 9.91 3.78 75 103 Total other long-term borrowings 75 103 Total long-term debt $ 39,871 $ 48,383 Total short-term borrowings and long-term debt $ 40,539 $ 55,697 __________ (1) Includes $4.2 billion and $6.5 billion of time deposits in denominations in excess of the $250,000 federal insurance limit as of December 31, 2020 and 2019, respectively. (2) Includes $1.6 billion and $1.4 billion of EUR-denominated unsecured notes as of December 31, 2020 and 2019, respectively. The following table presents the carrying value of our interest-bearing time deposits with contractual maturities, securitized debt obligations and other debt by remaining contractual maturity as of December 31, 2020. Table 8.2: Maturity Profile of Borrowings (Dollars in millions) 2021 2022 2023 2024 2025 Thereafter Total Interest-bearing time deposits $ 21,381 $ 6,447 $ 2,212 $ 2,196 $ 385 $ 126 $ 32,747 Securitized debt obligations 2,331 5,635 1,087 1,569 289 1,503 12,414 Federal funds purchased and securities loaned or sold under agreements to repurchase 668 0 0 0 0 0 668 Senior and subordinated notes 3,878 2,488 6,032 4,661 3,488 6,835 27,382 Other borrowings 20 20 18 5 3 9 75 Total $ 28,278 $ 14,590 $ 9,349 $ 8,431 $ 4,165 $ 8,473 $ 73,286 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets and Liabilities at Fair Value | The following table summarizes the notional amounts and fair values of our derivative instruments as of December 31, 2020 and 2019, 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, and their related gains or losses are included in operating activities as changes in other assets and other liabilities in the consolidated statements of cash flows. Table 9.1: Derivative Assets and Liabilities at Fair Value December 31, 2020 December 31, 2019 Notional or Contractual Amount Derivative (1) Notional or Contractual Amount Derivative (1) (Dollars in millions) Assets Liabilities Assets Liabilities Derivatives designated as accounting hedges: Interest rate contracts: Fair value hedges $ 47,349 $ 9 $ 10 $ 57,587 $ 11 $ 55 Cash flow hedges 82,150 748 1 96,900 321 29 Total interest rate contracts 129,499 757 11 154,487 332 84 Foreign exchange contracts: Fair value hedges 1,527 164 0 1,402 0 6 Cash flow hedges 4,582 0 161 6,103 0 113 Net investment hedges 3,116 0 196 2,829 0 102 Total foreign exchange contracts 9,225 164 357 10,334 0 221 Total derivatives designated as accounting hedges 138,724 921 368 164,821 332 305 Derivatives not designated as accounting hedges: Customer accommodation: Interest rate contracts 68,459 1,429 198 62,268 552 117 Commodity contracts 16,871 935 820 15,492 758 694 Foreign exchange and other contracts 4,677 58 70 4,674 39 42 Total customer accommodation 90,007 2,422 1,088 82,434 1,349 853 Other interest rate exposures (2) 1,770 71 56 6,729 48 30 Other contracts 1,826 1 6 1,562 0 9 Total derivatives not designated as accounting hedges 93,603 2,494 1,150 90,725 1,397 892 Total derivatives $ 232,327 $ 3,415 $ 1,518 $ 255,546 $ 1,729 $ 1,197 Less: netting adjustment (3) (1,148) (739) (633) (523) Total derivative assets/liabilities $ 2,267 $ 779 $ 1,096 $ 674 __________ (1) Does not reflect $31 million and $12 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of December 31, 2020 and 2019 , respectively. Non-performance risk is included in derivative assets and liabilities, which are part of other assets and other liabilities on the consolidated balance sheets, and is offset through non-interest income in the consolidated statements of income. (2) Other interest rate exposures include commercial mortgage-related derivatives and interest rate swaps. (3) Represents balance sheet netting of derivative assets and liabilities, and related payables and receivables for cash collateral held or placed with the same counterparty. |
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, excluding basis adjustments related to foreign currency risk, as of December 31, 2020 and 2019. Table 9.2: Hedged Items in Fair Value Hedging Relationships December 31, 2020 December 31, 2019 Carrying Amount Assets/(Liabilities) Cumulative Amount of Basis Adjustments Included in the Carrying Amount Carrying Amount Assets/(Liabilities) Cumulative Amount of Basis Adjustments Included in the Carrying Amount (Dollars in millions) Total Assets/(Liabilities) Discontinued-Hedging Relationships 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) $ 9,797 $ 590 $ 200 $ 10,825 $ 300 $ 52 Interest-bearing deposits (11,312) (213) 0 (14,310) (12) 0 Securitized debt obligations (7,609) (171) 20 (9,403) 44 64 Senior and subordinated notes (21,927) (1,282) (666) (27,777) (458) 324 __________ (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. In the second quarter of 2020, we terminated all last of layer hedging relationships with cumulative basis adjustments related to these discontinued hedging relationships totaling $200 million as of December 31, 2020. As of December 31, 2019, the amortized cost basis of this portfolio was $5.9 billion, the amount of the designated hedged items was $3.1 billion, and the cumulative basis adjustment associated with these hedges was $75 million. (2) Carrying value represents amortized cost. |
Offsetting Assets | The following table presents the gross and net fair values of our derivative assets, derivative liabilities, resale and repurchase agreements and the related offsetting amounts permitted under U.S. GAAP as of December 31, 2020 and 2019. 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 9.3: 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, 2020 Derivative assets (1) $ 3,415 $ (383) $ (765) $ 2,267 $ 0 $ 2,267 As of December 31, 2019 Derivative assets (1) 1,729 (347) (286) 1,096 0 1,096 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, 2020 Derivative liabilities (1) $ 1,518 $ (383) $ (356) $ 779 $ 0 $ 779 Repurchase agreements (2) 668 0 0 668 (668) 0 As of December 31, 2019 Derivative liabilities (1) 1,197 (347) (176) 674 0 674 Repurchase agreements (2) 314 0 0 314 (314) 0 __________ (1) We received cash collateral from derivative counterparties totaling $862 million and $347 million as of December 31, 2020 and 2019 , respectively. We also received securities from derivative counterparties with a fair value of approximately $1 million as of both December 31, 2020 and 2019, which we have the ability to re-pledge. We posted $1.5 billion and $954 million of cash collateral as of December 31, 2020 and 2019, respectively. (2) Under our customer repurchase agreements, which mature the next business day, we pledged collateral with a fair value of $682 million and $320 million as of December 31, 2020 and 2019 , respectively, primarily consisting of agency RMBS securities. |
Offsetting Liabilities | The following table presents the gross and net fair values of our derivative assets, derivative liabilities, resale and repurchase agreements and the related offsetting amounts permitted under U.S. GAAP as of December 31, 2020 and 2019. 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 9.3: 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, 2020 Derivative assets (1) $ 3,415 $ (383) $ (765) $ 2,267 $ 0 $ 2,267 As of December 31, 2019 Derivative assets (1) 1,729 (347) (286) 1,096 0 1,096 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, 2020 Derivative liabilities (1) $ 1,518 $ (383) $ (356) $ 779 $ 0 $ 779 Repurchase agreements (2) 668 0 0 668 (668) 0 As of December 31, 2019 Derivative liabilities (1) 1,197 (347) (176) 674 0 674 Repurchase agreements (2) 314 0 0 314 (314) 0 __________ (1) We received cash collateral from derivative counterparties totaling $862 million and $347 million as of December 31, 2020 and 2019 , respectively. We also received securities from derivative counterparties with a fair value of approximately $1 million as of both December 31, 2020 and 2019, which we have the ability to re-pledge. We posted $1.5 billion and $954 million of cash collateral as of December 31, 2020 and 2019, respectively. (2) Under our customer repurchase agreements, which mature the next business day, we pledged collateral with a fair value of $682 million and $320 million as of December 31, 2020 and 2019 , respectively, primarily consisting of agency RMBS securities. |
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, 2020, 2019 and 2018. Table 9.4: Effects of Fair Value and Cash Flow Hedge Accounting Year Ended December 31, 2020 Net Interest Income Non-Interest Income (Dollars in millions) Investment Securities Loans, Including Loans Held for Sale Other Interest-bearing Deposits Securitized Debt Obligations Senior and Subordinated Notes Other Total amounts presented in our consolidated statements of income $ 1,877 $ 24,074 $ 82 $ (2,165) $ (232) $ (679) $ 1,325 Fair value hedging relationships: Interest rate and foreign exchange contracts: Interest recognized on derivatives $ (76) $ 0 $ 0 $ 108 $ 125 $ 225 $ 0 Gains (losses) recognized on derivatives (306) 0 0 204 176 950 126 Gains (losses) recognized on hedged items (1) 290 0 0 (203) (212) (904) (125) Excluded component of fair value hedges (2) 0 0 0 0 0 (3) 0 Net income (expense) recognized on fair value hedges $ (92) $ 0 $ 0 $ 109 $ 89 $ 268 $ 1 Cash flow hedging relationships: (3) Interest rate contracts: Realized gains reclassified from AOCI into net income $ 25 $ 541 $ 0 $ 0 $ 0 $ 0 $ 0 Foreign exchange contracts: Realized gains reclassified from AOCI into net income (4) 0 0 10 0 0 0 (1) Net income recognized on cash flow hedges $ 25 $ 541 $ 10 $ 0 $ 0 $ 0 $ (1) Year Ended December 31, 2019 Net Interest Income Non-Interest Income (Dollars in millions) Investment Securities Loans, Including Loans Held for Sale Other Interest-bearing Deposits Securitized Debt Obligations Senior and Subordinated Notes Other Total amounts presented in our consolidated statements of income $ 2,411 $ 25,862 $ 240 $ (3,420) $ (523) $ (1,159) $ 718 Fair value hedging relationships: Interest rate and foreign exchange contracts: Interest recognized on derivatives $ (12) $ 0 $ 0 $ (108) $ (14) $ (6) $ 0 Gains (losses) recognized on derivatives (278) 0 0 263 45 704 (9) Gains (losses) recognized on hedged items (1) 278 0 0 (258) (123) (801) 9 Excluded component of fair value hedges (2) 0 0 0 0 0 (2) 0 Net expense recognized on fair value hedges $ (12) $ 0 $ 0 $ (103) $ (92) $ (105) $ 0 Cash flow hedging relationships: (3) Interest rate contracts: Realized losses reclassified from AOCI into net income $ (8) $ (163) $ 0 $ 0 $ 0 $ 0 $ 0 Foreign exchange contracts: Realized gains reclassified from AOCI into net income (4) 0 0 44 0 0 0 (1) Net income (expense) recognized on cash flow hedges $ (8) $ (163) $ 44 $ 0 $ 0 $ 0 $ (1) Year Ended December 31, 2018 Net Interest Income Non-Interest Income (Dollars in millions) Investment Securities Loans, Including Loans Held for Sale Other Interest-bearing 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 expense recognized on fair value hedges $ (22) $ 0 $ 0 $ (84) $ (76) $ (79) $ 0 Cash flow hedging relationships: (3) Interest rate contracts: Realized 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 (4) 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 $12 million, $171 million and $75 million for the years ended December 31, 2020, 2019 and 2018 respectively, related to basis adjustments on discontinued hedges. (2) Changes in fair values of cross-currency swaps attributable to changes in cross-currency basis spreads are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial value of the excluded component is recognized in earnings over the life of the swap under the amortization approach. (3) See “Note 10—Stockholders’ Equity” for the effects of cash flow and net investment hedges on AOCI and amounts reclassified to net income, net of tax. (4) We recognized a loss of $57 million and $341 million for the years ended December 31, 2020 and 2019, respectively, and a gain of $191 million for the year ended December 31, 2018, on foreign exchange contracts reclassified from AOCI. These amounts were largely offset by the foreign currency transaction gains (losses) on our foreign currency denominated intercompany funding included other non-interest income. |
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, 2020, 2019 and 2018. These gains or losses are recognized in other non-interest income in our consolidated statements of income. Table 9.5: Gains (Losses) on Free-Standing Derivatives Year Ended December 31, (Dollars in millions) 2020 2019 2018 Gains (losses) recognized in other non-interest income: Customer accommodation: Interest rate contracts $ 15 $ 48 $ 25 Commodity contracts 32 17 16 Foreign exchange and other contracts 8 13 7 Total customer accommodation 55 78 48 Other interest rate exposures (8) (16) 33 Other contracts (4) (10) (21) Total $ 43 $ 52 $ 60 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Preferred Stock | The following table summarizes our preferred stock outstanding as of December 31, 2020 and 2019. Table 10.1: Preferred Stock Outstanding (1) Redeemable by Issuer Beginning Per Annum Dividend Rate Dividend Frequency Liquidation Preference per Share Total Shares Outstanding Carrying Value Series Description Issuance Date December 31, 2020 December 31, 2019 Series B (2) 6.000% August 20, 2012 September 1, 2017 6.000% Quarterly $ 1,000 0 $ 0 $ 853 Series E Fixed-to-Floating Rate May 14, 2015 June 1, 2020 5.550% through 5/31/2020; 3-mo. LIBOR + 380 bps thereafter Semi-Annually through 5/31/2020; Quarterly thereafter 1,000 1,000,000 988 988 Series F (3) 6.200% August 24, 2015 December 1, 2020 6.200 Quarterly 1,000 0 0 484 Series G 5.200% July 29, 2016 December 1, 2021 5.200 Quarterly 1,000 600,000 583 583 Series H 6.000% November 29, 2016 December 1, 2021 6.000 Quarterly 1,000 500,000 483 483 Series I 5.000% September 11, 2019 December 1, 2024 5.000 Quarterly 1,000 1,500,000 1,462 1,462 Series J 4.800% January 31, 2020 June 1, 2025 4.800 Quarterly 1,000 1,250,000 1,209 0 Series K 4.625% September 17, 2020 December 1, 2025 4.625 Quarterly 1,000 125,000 122 0 Total $ 4,847 $ 4,853 __________ (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. (2) On March 2, 2020, we redeemed all outstanding shares of our preferred stock Series B. |
Change in AOCI Gain (Loss) by Component (Net of Tax) | The following table includes the AOCI impacts from the adoption of the CECL standard and the changes in AOCI by component for the years ended December 31, 2020, 2019 and 2018. Table 10.2: AOCI (Dollars in millions) Securities Available for Sale Hedging Relationships (1) Foreign Currency Translation Adjustments (2) Securities Held to Maturity Other Total AOCI as of December 31, 2017 $ 17 $ (281) $ (138) $ (524) $ 0 $ (926) Cumulative effects from adoption of new accounting standards 3 (63) 0 (113) (28) (201) Transfer of securities held to maturity to available for sale (3) (325) 0 0 407 0 82 Other comprehensive income (loss) before reclassifications (293) 38 (39) 0 (8) (302) Amounts reclassified from AOCI into earnings 159 (112) 0 40 (3) 84 Other comprehensive income (loss), net of tax (459) (74) (39) 447 (11) (136) AOCI as of December 31, 2018 (439) (418) (177) (190) (39) (1,263) Other comprehensive income before reclassifications 670 414 70 0 17 1,171 Amounts reclassified from AOCI into earnings (20) 358 0 26 (4) 360 Other comprehensive income, net of tax 650 772 70 26 13 1,531 Transfer of securities held to maturity to available for sale, net of tax (4) 724 0 0 164 0 888 AOCI as of December 31, 2019 935 354 (107) 0 (26) 1,156 Cumulative effects from the adoption of the CECL standard (8) 0 0 0 0 (8) Other comprehensive income before reclassifications 1,278 1,401 76 0 5 2,760 Amounts reclassified from AOCI into earnings (19) (393) 0 0 (2) (414) Other comprehensive income, net of tax 1,259 1,008 76 0 3 2,346 AOCI as of December 31, 2020 $ 2,186 $ 1,362 $ (31) $ 0 $ (23) $ 3,494 __________ (1) Includes amounts related to cash flow hedges as well as the excluded component of cross-currency swaps designated as fair value hedges. (2) Includes other comprehensive loss of $65 million, loss of $49 million and gain of $150 million for the years ended December 31, 2020, 2019 and 2018 respectively, from hedging instruments designated as net investment hedges. (3) 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, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This transfer resulted in an after-tax gain of $82 million ($107 million pre-tax) to AOCI. (4) On December 31, 2019, we transferred our entire portfolio of held to maturity securities to available for sale in consideration of changes to regulatory capital requirements under the Tailoring Rules. |
Reclassifications from AOCI | The following table presents amounts reclassified from each component of AOCI to our consolidated statements of income for the years ended December 31, 2020, 2019 and 2018. Table 10.3: Reclassifications from AOCI (Dollars in millions) Year Ended December 31, AOCI Components Affected Income Statement Line Item 2020 2019 2018 Securities available for sale: Non-interest income $ 25 $ 26 $ (209) Income tax provision 6 6 (50) Net income 19 20 (159) Hedging relationships: Interest rate contracts: Interest income 566 (171) (91) Foreign exchange contracts: Interest income 10 44 47 Interest expense (3) (2) 0 Non-interest income (57) (341) 191 Income from continuing operations before income taxes 516 (470) 147 Income tax provision 123 (112) 35 Net income 393 (358) 112 Securities held to maturity: (1) Interest income 0 (35) (53) Income tax provision 0 (9) (13) Net income 0 (26) (40) Other: Non-interest income and non-interest expense 2 5 4 Income tax provision 0 1 1 Net income 2 4 3 Total reclassifications $ 414 $ (360) $ (84) __________ (1) On December 31, 2019, we transferred our entire portfolio of held to maturity securities to available for sale. |
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, 2020, 2019 and 2018. Table 10.4: Other Comprehensive Income (Loss) Year Ended December 31, 2020 2019 2018 (Dollars in millions) Before Provision After Before Provision After Before Provision After Other comprehensive income (loss): Net unrealized gains (loss) on securities available for sale $ 1,659 $ 400 $ 1,259 $ 855 $ 205 $ 650 $ (605) $ (146) $ (459) Net unrealized gains (loss) on hedging relationships 1,329 321 1,008 1,016 244 772 (98) (24) (74) Foreign currency translation adjustments (1) 56 (20) 76 54 (16) 70 9 48 (39) Net changes in securities held to maturity 0 0 0 36 10 26 588 141 447 Other 4 1 3 17 4 13 (15) (4) (11) Other comprehensive income (loss) $ 3,048 $ 702 $ 2,346 $ 1,978 $ 447 $ 1,531 $ (121) $ 15 $ (136) __________ (1) Includes the impact of hedging instruments designated as net investment hedges. |
Regulatory and Capital Adequa_2
Regulatory and Capital Adequacy (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Mortgage Banking [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, 2020 and 2019. Table 11.1: Capital Ratios Under Basel III (1) December 31, 2020 December 31, 2019 (Dollars in millions) Capital Amount Capital Minimum Well- Capital Amount Capital Minimum Well- Capital One Financial Corp: Common equity Tier 1 capital (2) $ 40,736 13.7 % 4.5 % N/A $ 38,162 12.2 % 4.5 % N/A Tier 1 capital (3) 45,583 15.3 6.0 6.0 % 43,015 13.7 6.0 6.0 % Total capital (4) 52,788 17.7 8.0 10.0 50,348 16.1 8.0 10.0 Tier 1 leverage (5) 45,583 11.2 4.0 N/A 43,015 11.7 4.0 N/A Supplementary leverage (6) 45,583 10.7 3.0 N/A 43,015 9.9 3.0 N/A COBNA: Common equity Tier 1 capital (2) 19,924 21.5 4.5 6.5 17,883 16.1 4.5 6.5 Tier 1 capital (3) 19,924 21.5 6.0 8.0 17,883 16.1 6.0 8.0 Total capital (4) 21,708 23.4 8.0 10.0 20,109 18.1 8.0 10.0 Tier 1 leverage (5) 19,924 18.3 4.0 5.0 17,883 14.8 4.0 5.0 Supplementary leverage (6) 19,924 14.7 3.0 N/A 17,883 12.1 3.0 N/A CONA: Common equity Tier 1 capital (2) 26,671 12.4 4.5 6.5 28,445 13.4 4.5 6.5 Tier 1 capital (3) 26,671 12.4 6.0 8.0 28,445 13.4 6.0 8.0 Total capital (4) 29,369 13.7 8.0 10.0 30,852 14.5 8.0 10.0 Tier 1 leverage (5) 26,671 7.6 4.0 5.0 28,445 9.2 4.0 5.0 Supplementary leverage (6) 26,671 6.9 3.0 N/A 28,445 8.2 3.0 N/A __________ (1) 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. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 application of the “two-class” method as described in “Note 1—Summary of Significant Accounting Policies.” Table 12.1: Computation of Basic and Diluted Earnings per Common Share Year Ended December 31, (Dollars and shares in millions, except per share data) 2020 2019 2018 Income from continuing operations, net of tax $ 2,717 $ 5,533 $ 6,025 Income (loss) from discontinued operations, net of tax (3) 13 (10) Net income 2,714 5,546 6,015 Dividends and undistributed earnings allocated to participating securities (20) (41) (40) Preferred stock dividends (280) (282) (265) Issuance cost for redeemed preferred stock (39) (31) 0 Net income available to common stockholders $ 2,375 $ 5,192 $ 5,710 Total weighted-average basic common shares outstanding 457.8 467.6 479.9 Effect of dilutive securities: Stock options 0.6 1.3 1.6 Other contingently issuable shares 0.5 1.0 1.1 Warrants (1) 0.0 0.0 0.5 Total effect of dilutive securities 1.1 2.3 3.2 Total weighted-average diluted common shares outstanding 458.9 469.9 483.1 Basic earnings per common share: Net income from continuing operations $ 5.20 $ 11.07 $ 11.92 Income (loss) from discontinued operations (0.01) 0.03 (0.02) Net income per basic common share $ 5.19 $ 11.10 $ 11.90 Diluted earnings per common share: (2) Net income from continuing operations $ 5.19 $ 11.02 $ 11.84 Income (loss) from discontinued operations (0.01) 0.03 (0.02) Net income per diluted common share $ 5.18 $ 11.05 $ 11.82 __________ (1) Represents warrants issued as part of the U.S. Department of Treasury’s Troubled Assets Relief Program which were either exercised or expired on November 14, 2018. (2) Excluded from the computation of diluted earnings per share were aw ards of 6 thousand and options of 523 thousand with an exercise price ranging from $63.73 to $86.34, 69 thousand shares related to options with an exercise price of $86.34 and 56 thousand shares related to options with an exercise price of $86.34 for the years ended December 31, 2020, 2019 and 2018, respectively, because their inclusion would be anti-dil utive. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | The following table presents a summary of 2020 activity for RSUs and PSUs. Table 13.1: Summary of Restricted Stock Units and Performance Share Units Restricted Stock Units Performance Share Units (1) (Shares/units in thousands) Units Weighted-Average Units Weighted-Average Unvested as of January 1, 2020 3,670 $ 84.74 1,775 $ 89.95 Granted (2) 1,800 92.04 988 100.04 Vested (1,472) 89.39 (855) 88.19 Forfeited (165) 90.98 (147) 93.76 Unvested as of December 31, 2020 3,833 $ 86.14 1,761 $ 96.15 _________ (1) Granted and vested include adjustments for achievement of specific performance goals for performance share units granted in prior periods. (2) The weighted-average grant date fair value of RSUs was $83.29 and $100.73 in 2019 and 2018, respectively. The weighted-average grant date fair value of PSUs was $78.18 and $100.65 in 2019 and 2018, respectively. |
Summary of Stock Option Activity | The following table presents a summary of 2020 activity for stock options and the balance of stock options exercisable as of December 31, 2020. Table 13.2: Summary of Stock Options Activity (Shares in thousands, and intrinsic value in millions) Shares Weighted- Weighted- Aggregate Outstanding as of January 1, 2020 3,185 $ 55.54 Granted 0 0.00 Exercised (1,392) 44.76 Forfeited 0 0.00 Expired 0 0.00 Outstanding and Exercisable as of December 31, 2020 1,793 $ 63.91 3.27 years $ 63 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 14.1: Changes in Benefit Obligation and Plan Assets Defined Pension Other Postretirement (Dollars in millions) 2020 2019 2020 2019 Change in benefit obligation: Accumulated benefit obligation as of January 1, $ 165 $ 157 $ 27 $ 29 Service cost 1 1 0 0 Interest cost 5 6 1 1 Benefits paid (11) (13) (2) (2) Actuarial loss (gain) 18 14 (5) (1) Accumulated benefit obligation as of December 31, $ 178 $ 165 $ 21 $ 27 Change in plan assets: Fair value of plan assets as of January 1, $ 254 $ 218 $ 6 $ 6 Actual return on plan assets 30 48 1 1 Employer contributions 1 1 1 1 Benefits paid (11) (13) (2) (2) Fair value of plan assets as of December 31, $ 274 $ 254 $ 6 $ 6 Over (under) funded status as of December 31, $ 96 $ 89 $ (15) $ (21) Defined Pension Other Postretirement (Dollars in millions) 2020 2019 2020 2019 Balance sheet presentation as of December 31, Other assets $ 108 $ 100 $ 0 $ 0 Other liabilities (12) (11) (15) (21) Net amount recognized as of December 31, $ 96 $ 89 $ (15) $ (21) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 for the years ended December 31, 2020, 2019 and 2018. Table 15.1: Significant Components of the Provision for Income Taxes Attributable to Continuing Operations Year Ended December 31, (Dollars in millions) 2020 2019 2018 Current income tax provision: Federal taxes $ 1,676 $ 1,207 $ 210 State taxes 370 301 234 International taxes 67 129 135 Total current provision $ 2,113 $ 1,637 $ 579 Deferred income tax provision (benefit): Federal taxes $ (1,357) $ (222) $ 620 State taxes (266) (45) 115 International taxes (4) (29) (21) Total deferred provision (benefit) (1,627) (296) 714 Total income tax provision $ 486 $ 1,341 $ 1,293 |
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, 2020, 2019 and 2018. Table 15.2: Effective Income Tax Rate Year Ended December 31, 2020 2019 2018 Income tax at U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit 3.5 3.1 3.2 Non-deductible expenses 3.2 1.6 2.2 Affordable housing, new markets and other tax credits (11.4) (5.2) (4.0) Tax-exempt interest and other nontaxable income (1.7) (0.8) (0.7) IRS method changes 0.0 0.0 (3.9) Changes in valuation allowance 2.3 (0.3) 0.3 Other, net (1.7) 0.1 (0.4) Effective income tax rate 15.2 % 19.5 % 17.7 % |
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, 2020 and 2019. The valuation allowance below represents the adjustment of our foreign tax credit carryforward, 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 15.3: Significant Components of Deferred Tax Assets and Liabilities (Dollars in millions) December 31, 2020 December 31, 2019 Deferred tax assets: Allowance for credit losses $ 3,649 $ 1,729 Rewards programs 711 579 Lease liabilities 396 407 Net operating loss and tax credit carryforwards 314 284 Compensation and employee benefits 306 301 Partnership investments 237 202 Unearned income 117 95 Goodwill and intangibles 116 161 Fixed assets and leases 42 0 Other assets 143 142 Subtotal 6,031 3,900 Valuation allowance (296) (223) Total deferred tax assets 5,735 3,677 Deferred tax liabilities: Security and loan valuations (1) 805 234 Original issue discount 481 600 Net unrealized gains on derivatives 387 93 Right-of-use assets 342 393 Partnership investments 142 147 Mortgage servicing rights 73 55 Loan fees and expenses 36 100 Fixed assets and leases 0 189 Other liabilities 143 146 Total deferred tax liabilities 2,409 1,957 Net deferred tax assets $ 3,326 $ 1,720 _________ (1) Amount includes the tax impact of our December 31, 2019 transfer of our entire portfolio of held to maturity securities to available for sale. |
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 15.4: Reconciliation of the Change in Unrecognized Tax Benefits (Dollars in millions) Gross Accrued Gross Tax, Balance as of January 1, 2018 $ 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 Additions for tax positions related to the current year 23 17 40 Additions for tax positions related to prior years 12 4 16 Reductions for tax positions related to prior years due to IRS and other settlements (44) (25) (69) Balance as of December 31, 2019 431 31 462 Additions for tax positions related to the current year 33 0 33 Additions for tax positions related to prior years 3 21 24 Reductions for tax positions related to prior years due to IRS and other settlements (16) (6) (22) Balance as of December 31, 2020 $ 451 $ 46 $ 497 Portion of balance at December 31, 2020 that, if recognized, would impact the effective income tax rate $ 153 $ 35 $ 188 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019. Table 16.1: Assets and Liabilities Measured at Fair Value on a Recurring Basis December 31, 2020 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 $ 9,318 $ 0 $ 0 — $ 9,318 RMBS 0 76,375 328 — 76,703 CMBS 0 11,624 111 — 11,735 Other securities 142 2,547 0 — 2,689 Total securities available for sale 9,460 90,546 439 — 100,445 Loans held for sale 0 596 0 — 596 Other assets: Derivative assets (2) 268 3,006 141 $ (1,148) 2,267 Other (3) 430 552 55 — 1,037 Total assets $ 10,158 $ 94,700 $ 635 $ (1,148) $ 104,345 Liabilities: Other liabilities: Derivative liabilities (2) $ 271 $ 1,137 $ 110 $ (739) $ 779 Total liabilities $ 271 $ 1,137 $ 110 $ (739) $ 779 December 31, 2019 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 $ 4,124 $ 0 $ 0 — $ 4,124 RMBS 0 63,909 429 — 64,338 CMBS 0 9,413 13 — 9,426 Other securities 231 1,094 0 — 1,325 Total securities available for sale 4,355 74,416 442 — 79,213 Loans held for sale 0 251 0 — 251 Other assets: Derivative assets (2) 84 1,568 77 $ (633) 1,096 Other (3) 344 0 66 — 410 Total assets $ 4,783 $ 76,235 $ 585 $ (633) $ 80,970 Liabilities: Other liabilities: Derivative liabilities (2) $ 17 $ 1,129 $ 51 $ (523) $ 674 Total liabilities $ 17 $ 1,129 $ 51 $ (523) $ 674 __________ (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 9—Derivative Instruments and Hedging Activities” for additional information. (2) Does not reflect $31 million and $12 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of December 31, 2020 and 2019 , respectively. Non-performance risk is included in derivative assets and liabilities, which are part of other assets and other liabilities on the consolidated balance sheets, and is offset through non-interest income in the consolidated statements of income. (3) As of December 31, 2020 and 2019, other includes retained interests in securitizations of $55 million and $66 million, deferred compensation plan assets of $414 million and $343 million, and equity securities of $568 million (including unrealized gains of $535 million) and $1 million, respectively. |
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, 2020, 2019 and 2018. 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 16.2: Level 3 Recurring Fair Value Rollforward Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year Ended December 31, 2020 Total Gains (Losses) (Realized/Unrealized) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2020 (1) (Dollars in millions) Balance, January 1, 2020 Included in Net Income (1) Included in OCI Purchases Sales Issuances Settlements Transfers Transfers Balance, December 31, 2020 Securities available for sale: (2)(4) RMBS $ 433 $ 22 $ (19) $ 0 $ 0 $ 0 $ (72) $ 206 $ (242) $ 328 $ 16 CMBS 13 (3) (9) 0 0 0 (32) 371 (229) 111 0 Total securities available for sale 446 19 (28) 0 0 0 (104) 577 (471) 439 16 Other assets: Retained interests in securitizations 66 (11) 0 0 0 0 0 0 0 55 (11) Net derivative assets (liabilities) (3) 26 10 0 0 0 43 (37) 0 (11) 31 10 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year Ended December 31, 2019 Total Gains (Losses) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2019 (1) (Dollars in millions) Balance, January 1, 2019 Included in Net Income (1) Included in OCI Purchases Sales Issuances Settlements Transfers Transfers Balance, December 31, 2019 Securities available for sale: (2) RMBS $ 433 $ 35 $ 5 $ 0 $ 0 $ 0 $ (63) $ 177 $ (158) $ 429 $ 34 CMBS 10 0 0 0 0 0 (2) 5 0 13 0 Total securities available for sale 443 35 5 0 0 0 (65) 182 (158) 442 34 Other assets: Retained interests in securitizations 158 18 0 0 0 0 (110) 0 0 66 (19) Net derivative assets (liabilities) (3) (10) 6 0 0 0 (16) 52 0 (6) 26 1 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Year Ended December 31, 2018 Total Gains (Losses) Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held as of December 31, 2018 (1) (Dollars in millions) Balance, January 1, 2018 Included in Net Income (1) Included in OCI Purchases Sales Issuances Settlements Transfers Transfers 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 interests 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) __________ (1) Realized gains (losses) on securities available for sale are included in net securities gains (losses), and retained interests in securitizations 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, 2020 were $21 million. Net unrealized losses included in other comprehensive income related to Level 3 securities available for sale still held as of December 31, 2019 were $4 million. 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 $141 million and $110 million, respectively, as of December 31, 2020, $77 million and $51 million, respectively, as of December 31, 2019 and $38 million and $48 million, respectively, as of December 31, 2018. (4) The fair value of RMBS as of January 1, 2020 includes a cumulative adjustment of $4 million from the adoption of the CECL standard. |
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 16.3: Quantitative Information about Level 3 Fair Value Measurements Quantitative Information about Level 3 Fair Value Measurements (Dollars in millions) Fair Value at Significant Significant Range Weighted Average (1) Securities available for sale: RMBS $ 328 Discounted cash flows (vendor pricing) Yield 2-12% 8-15% 0-11% 30-100% 3% 10% 2% 73% CMBS 111 Discounted cash flows (vendor pricing) Yield 1-3% 2% Other assets: Retained interests in securitizations (2) 55 Discounted cash flows Life of receivables (months) 37-52 3-13% 2-12% 3-3% 55-70% N/A Net derivative assets (liabilities) 31 Discounted cash flows Swap rates 1% 1% Quantitative Information about Level 3 Fair Value Measurements (Dollars in millions) Fair Value at Significant Significant Range Weighted Average (1) Securities available for sale: RMBS $ 429 Discounted cash flows (vendor pricing) Yield 2-18% 0-18% 1-6% 30-95% 5% 10% 2% 67% CMBS 13 Discounted cash flows (vendor pricing) Yield 2-3% 2% Other assets: Retained interests in securitizations (2) 66 Discounted cash flows Life of receivables (months) 35-51 4-14% 3-10% 2-3% 74-88% N/A Net derivative assets (liabilities) 26 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. |
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, 2020 and 2019, and for which a nonrecurring fair value measurement was recorded during the year then ended. Table 16.4: Nonrecurring Fair Value Measurements December 31, 2020 Estimated Fair Value Hierarchy Total (Dollars in millions) Level 2 Level 3 Loans held for investment $ 0 $ 305 $ 305 Other assets (1) 0 175 175 Total $ 0 $ 480 $ 480 December 31, 2019 Estimated Fair Value Hierarchy Total (Dollars in millions) Level 2 Level 3 Loans held for investment $ 0 $ 294 $ 294 Other assets (1) 0 103 103 Total $ 0 $ 397 $ 397 __________ (1) As of December 31, 2020, other assets included equity investments accounted for under the measurement al ternative of $25 million, repossessed assets of $42 million and long-lived assets held for sale of $108 million. As of December 31, 2019, other assets included equity investments accounted for under the measurement alternative of $5 million, repossessed assets of $61 million and long-lived assets held for sale of $37 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, 2020 and 2019. Table 16.5: Nonrecurring Fair Value Measurements Included in Earnings Total Gains (Losses) Year Ended December 31, (Dollars in millions) 2020 2019 Loans held for investment $ 198 $ (268) Other assets (1) (85) (76) Total $ 113 $ (344) __________ (1) Other assets include fair value adjustments related to repossessed assets, long-lived assets held for sale and equity investments accounted for under the measurement alternative. |
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, 2020 and 2019. Table 16.6: Fair Value of Financial Instruments December 31, 2020 Carrying Estimated Estimated Fair Value Hierarchy (Dollars in millions) Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 40,509 $ 40,509 $ 4,708 $ 35,801 $ 0 Restricted cash for securitization investors 262 262 262 0 0 Net loans held for investment 236,060 244,701 0 0 244,701 Loans held for sale 2,114 2,214 0 2,214 0 Interest receivable 1,471 1,471 0 1,471 0 Other investments (1) 1,341 1,341 0 1,341 0 Financial liabilities: Deposits with defined maturities 32,746 33,111 0 33,111 0 Securitized debt obligations 12,414 12,584 0 12,584 0 Senior and subordinated notes 27,382 28,282 0 28,282 0 Federal funds purchased and securities loaned or sold under agreements to repurchase 668 668 0 668 0 Interest payable 352 352 0 352 0 December 31, 2019 Carrying Estimated Estimated Fair Value Hierarchy (Dollars in millions) Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 13,407 $ 13,407 $ 4,129 $ 9,278 $ 0 Restricted cash for securitization investors 342 342 342 0 0 Net loans held for investment 258,601 258,696 0 0 258,696 Loans held for sale 149 149 0 149 0 Interest receivable 1,758 1,758 0 1,758 0 Other investments (1) 1,638 1,638 0 1,638 0 Financial liabilities: Deposits with defined maturities 44,958 45,225 0 45,225 0 Securitized debt obligations 17,808 17,941 0 17,941 0 Senior and subordinated notes 30,472 31,233 0 31,233 0 Federal funds purchased and securities loaned or sold under agreements to repurchase 314 314 0 314 0 Other borrowings (2) 7,000 7,001 0 7,001 0 Interest payable 439 439 0 439 0 __________ (1) Other investments include FHLB and Federal Reserve stock. These investments are included in other assets on our consolidated balance sheets. (2) Other borrowings excludes finance lease liabilities. |
Business Segments and Revenue_2
Business Segments and Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Results and Reconciliation | The following table presents our business segment results for the years ended December 31, 2020, 2019 and 2018, selected balance sheet data as of December 31, 2020, 2019 and 2018, and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, loans held for investment and deposits. Table 17.1: Segment Results and Reconciliation Year Ended December 31, 2020 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total Net interest income (loss) $ 13,776 $ 7,238 $ 2,048 $ (149) $ 22,913 Non-interest income 3,823 466 923 398 5,610 Total net revenue (2) 17,599 7,704 2,971 249 28,523 Provision for credit losses 7,327 1,753 1,181 3 10,264 Non-interest expense 8,491 4,159 1,706 700 15,056 Income (loss) from continuing operations before income taxes 1,781 1,792 84 (454) 3,203 Income tax provision (benefit) 420 425 19 (378) 486 Income (loss) from continuing operations, net of tax $ 1,361 $ 1,367 $ 65 $ (76) $ 2,717 Loans held for investment $ 106,956 $ 68,888 $ 75,780 $ 0 $ 251,624 Deposits 0 249,815 39,590 16,037 305,442 Year Ended December 31, 2019 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total Net interest income $ 14,461 $ 6,732 $ 1,983 $ 164 $ 23,340 Non-interest income (loss) 3,888 643 831 (109) 5,253 Total net revenue 18,349 7,375 2,814 55 28,593 Provision for credit losses 4,992 938 306 0 6,236 Non-interest expense 9,271 4,091 1,699 422 15,483 Income (loss) from continuing operations before income taxes 4,086 2,346 809 (367) 6,874 Income tax provision (benefit) 959 547 188 (353) 1,341 Income (loss) from continuing operations, net of tax $ 3,127 $ 1,799 $ 621 $ (14) $ 5,533 Loans held for investment $ 128,236 $ 63,065 $ 74,508 $ 0 $ 265,809 Deposits 0 213,099 32,134 17,464 262,697 Year Ended December 31, 2018 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1)(3) Other (1)(3) Consolidated Total Net interest income $ 14,167 $ 6,549 $ 2,044 $ 115 $ 22,875 Non-interest income 3,520 663 744 274 5,201 Total net revenue 17,687 7,212 2,788 389 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 1,051 (241) 7,318 Income tax provision (benefit) 970 547 245 (469) 1,293 Income from continuing operations, net of tax $ 3,191 $ 1,800 $ 806 $ 228 $ 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 __________ (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% for all periods presented) and state taxes where applicable, with offsetting reductions to the Other category. (2) Total net revenue was reduced by $1.1 billion for the year ended December 31, 2020, for finance charges and fees charged off as uncollectible. |
Disaggregation of Revenue | The following table presents revenue from contracts with customers and a reconciliation to non-interest income by business segment for the years ended December 31, 2020, 2019 and 2018. Table 17.2: Revenue from Contracts with Customers and Reconciliation to Segment Results Year Ended December 31, 2020 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total Contract revenue: Interchange fees, net (2) $ 2,747 $ 209 $ 63 $ (2) $ 3,017 Service charges and other customer-related fees 0 188 175 (1) 362 Other 315 39 4 0 358 Total contract revenue 3,062 436 242 (3) 3,737 Revenue from other sources 761 30 681 401 1,873 Total non-interest income $ 3,823 $ 466 $ 923 $ 398 $ 5,610 Year Ended December 31, 2019 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total Contract revenue: Interchange fees, net (2) $ 2,925 $ 205 $ 55 $ (6) $ 3,179 Service charges and other customer-related fees 0 298 120 (1) 417 Other 120 101 3 0 224 Total contract revenue 3,045 604 178 (7) 3,820 Revenue from other sources 843 39 653 (102) 1,433 Total non-interest income $ 3,888 $ 643 $ 831 $ (109) $ 5,253 Year Ended December 31, 2018 (Dollars in millions) Credit Card Consumer Banking Commercial Banking (1) Other (1) Consolidated Total 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% for all periods presented) and state taxes where applicable, with offsetting reductions to the Other category. (2) Interchange fees are presented net of customer reward expenses of $4.9 billion for the years ended December 31, 2020 and 2019 and $4.4 billion for the year ended December 31, 2018. |
Commitments, Contingencies, G_2
Commitments, Contingencies, Guarantees, and Others (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Letter of Credit and Other Loan Commitments | The following table presents the contractual amount and carrying value of our unfunded lending commitments as of December 31, 2020 and 2019. The carrying value represents our reserve and deferred revenue on legally binding commitments. Table 18.1: Unfunded Lending Commitments Contractual Amount Carrying Value (Dollars in millions) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Credit card lines $ 349,594 $ 363,446 N/A N/A Other loan commitments (1) 35,836 36,454 $ 144 $ 110 Standby letters of credit and commercial letters of credit (2) 1,302 1,574 32 27 Total unfunded lending commitments $ 386,732 $ 401,474 $ 176 $ 137 __________ (1) Includes $1.8 billion and $1.6 billion of advised lines of credit as of December 31, 2020 and 2019, respectively. (2) These financial guarantees have expiration dates ranging from 2021 to 2023 as of December 31, 2020. |
Capital One Financial Corpora_2
Capital One Financial Corporation (Parent Company Only) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Income Statement | 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 19.1: Parent Company Statements of Income Year Ended December 31, (Dollars in millions) 2020 2019 2018 Interest income $ 186 $ 442 $ 313 Interest expense 510 798 720 Dividends from subsidiaries 3,003 3,276 2,750 Non-interest income (loss) (127) (21) 19 Non-interest expense 33 60 29 Income before income taxes and equity in undistributed earnings of subsidiaries 2,519 2,839 2,333 Income tax benefit (93) (138) (128) Equity in undistributed earnings of subsidiaries 102 2,569 3,554 Net income 2,714 5,546 6,015 Other comprehensive income (loss), net of tax 2,346 1,531 (136) Comprehensive income $ 5,060 $ 7,077 $ 5,879 |
Condensed Balance Sheet | Table 19.2: Parent Company Balance Sheets (Dollars in millions) December 31, 2020 December 31, 2019 Assets: Cash and cash equivalents $ 12,976 $ 13,050 Investments in subsidiaries 62,066 61,626 Loans to subsidiaries 5,924 3,905 Securities available for sale 622 738 Other assets 1,473 1,017 Total assets $ 83,061 $ 80,336 Liabilities: Senior and subordinated notes $ 22,037 $ 22,080 Accrued expenses and other liabilities 820 245 Total liabilities 22,857 22,325 Total stockholders’ equity 60,204 58,011 Total liabilities and stockholders’ equity $ 83,061 $ 80,336 |
Condensed Cash Flow Statement | Table 19.3: Parent Company Statements of Cash Flows Year Ended December 31, (Dollars in millions) 2020 2019 2018 Operating activities: Net income $ 2,714 $ 5,546 $ 6,015 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed earnings of subsidiaries (102) (2,569) (3,554) Other operating activities 1,217 216 (35) Net cash from operating activities 3,829 3,193 2,426 Investing activities: Changes in investments in subsidiaries (217) 704 (577) Proceeds from paydowns and maturities of securities available for sale 117 111 140 Changes in loans to subsidiaries (2,019) (1,302) (2,055) Net cash from investing activities (2,119) (487) (2,492) Financing activities: Borrowings: Changes in borrowings from subsidiaries 0 0 38 Issuance of senior and subordinated notes 1,991 2,646 5,227 Maturities and paydowns of senior and subordinated notes (2,900) (750) 0 Common stock: Net proceeds from issuances 241 199 175 Dividends paid (460) (753) (773) Preferred stock: Net proceeds from issuances 1,330 1,462 0 Dividends paid (280) (282) (265) Redemptions (1,375) (1,000) 0 Purchases of treasury stock (393) (1,481) (2,284) Proceeds from share-based payment activities 62 17 38 Net cash from financing activities (1,784) 58 2,156 Changes in cash and cash equivalents (74) 2,764 2,090 Cash and cash equivalents, beginning of the period 13,050 10,286 8,196 Cash and cash equivalents, end of the period $ 12,976 $ 13,050 $ 10,286 Supplemental information: Non-cash impact from the dissolution of wholly-owned subsidiary Decrease in investment in subsidiaries $ 0 $ 1,508 $ 0 Decrease in borrowings from subsidiaries 0 1,671 0 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Segments (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 3 |
Number of Reporting Units | 4 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Loans and Allowance for Credit Losses (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan origination fees and direct loan origination costs amortization period | 12 months |
Threshold period past due for delinquency status of financing receivables | 30 days |
Credit Card | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan origination fees and direct loan origination costs amortization period | 12 months |
Threshold period past due for write-off of trade accounts receivable | 180 days |
Credit Card | Privileges Revoked | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Threshold period past due for write-off of trade accounts receivable | 120 days |
Credit Card | Notification of Death | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Threshold period past due for write-off of trade accounts receivable | 5 days |
Credit Card | Chapter Seven Bankruptcy | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Threshold period past due for write-off of trade accounts receivable | 30 days |
Consumer Banking | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Threshold period past due for nonperforming status of financing receivables | 90 days |
Consumer Banking | Notification of Death | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Threshold period past due for nonperforming status of financing receivables | 60 days |
Consumer Banking | Chapter Seven Bankruptcy | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Threshold period past due for nonperforming status of financing receivables | 60 days |
Consumer Banking | Auto | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Threshold period past due for nonperforming status of financing receivables | 120 days |
Consumer Banking | Small Business Banking Loans | Maximum | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Threshold period past due for nonperforming status of financing receivables | 120 days |
Consumer Banking | Other Consumer Loans | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Threshold period past due for nonperforming status of financing receivables | 40 days |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Useful Lives for Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
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_6
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Customer Reward Program | $ 5.4 | $ 4.7 |
Loan origination fees and direct loan origination costs amortization period | 12 months | |
Minimum | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Partnership Agreement Initial Term | 2 years | |
Maximum | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Partnership Agreement Initial Term | 10 years | |
Credit Card | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loan origination fees and direct loan origination costs amortization period | 12 months | |
Amortization term of annual membership fees | 12 months |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Arrangements (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Collaborative Arrangement | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Reduction of interest income | $ 1.1 | $ 1 | $ 1.3 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies Newly Adopted Accounting Standards (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit loss | $ 15,564 | $ 7,208 | |||
Retained earnings | 40,088 | 40,340 | |||
Accounting Standards Update 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred tax assets | $ 694 | ||||
Retained earnings | 2,200 | ||||
Allowance for credit losses | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit loss | $ 15,564 | $ 7,208 | $ 7,220 | $ 7,502 | |
Finance charge and fee reserve reclassification | 462 | ||||
Allowance for credit losses | Accounting Standards Update 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit loss | $ 2,900 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Jan. 01, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||||
Increase in retained earnings | $ 40,088 | $ 40,340 | $ 40,088 | |
Accrued interest receivable | 230 | |||
Derivative, collateral, obligation to return securities | $ 1 | $ 1 | 1 | |
Investment securities portfolio | US Treasury and Agency securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Percentage of portfolio | 96.00% | 96.00% | ||
Collateral pledged | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities, available-for-sale, restricted | $ 16,500 | $ 14,000 | $ 16,500 | |
Cumulative effects from adoption of new accounting standards | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Increase in retained earnings | $ 11 |
Investment Securities - Investm
Investment Securities - Investment Available for Sale (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 97,569 | $ 77,984 |
Allowance for Credit Losses | (1) | |
Gross Unrealized Gains | 2,997 | 1,561 |
Gross Unrealized Losses | (120) | (332) |
Fair Value | 100,445 | 79,213 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,302 | 4,122 |
Allowance for Credit Losses | 0 | |
Gross Unrealized Gains | 16 | 6 |
Gross Unrealized Losses | 0 | (4) |
Fair Value | 9,318 | 4,124 |
RMBS, Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 73,248 | 62,003 |
Allowance for Credit Losses | 0 | |
Gross Unrealized Gains | 2,326 | 1,120 |
Gross Unrealized Losses | (108) | (284) |
Fair Value | 75,466 | 62,839 |
RMBS, Non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,035 | 1,235 |
Allowance for Credit Losses | (1) | |
Gross Unrealized Gains | 204 | 266 |
Gross Unrealized Losses | (1) | (2) |
Fair Value | 1,237 | 1,499 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 74,283 | 63,238 |
Allowance for Credit Losses | (1) | |
Gross Unrealized Gains | 2,530 | 1,386 |
Gross Unrealized Losses | (109) | (286) |
Fair Value | 76,703 | 64,338 |
CMBS, Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,298 | 9,303 |
Allowance for Credit Losses | 0 | |
Gross Unrealized Gains | 448 | 165 |
Gross Unrealized Losses | (11) | (42) |
Fair Value | 11,735 | 9,426 |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,686 | 1,321 |
Allowance for Credit Losses | 0 | |
Gross Unrealized Gains | 3 | 4 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,689 | 1,325 |
Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 1,800 | $ 117 |
Investment Securities - Securit
Investment Securities - Securities in Gross Unrealized Loss Position (Details) $ in Millions | Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less than 12 Months | $ 9,095 | $ 15,882 |
Fair Value - 12 Months or Longer | 2,059 | 12,252 |
Fair Value - Total | 11,154 | 28,134 |
Gross Unrealized Loss - Less than 12 Months | (64) | (120) |
Gross Unrealized Loss - 12 Months or Longer | (55) | (212) |
Gross Unrealized Loss - Total | $ (119) | (332) |
Number of securities in gross unrealized loss positions | security | 320 | |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less than 12 Months | $ 0 | 2,647 |
Fair Value - 12 Months or Longer | 0 | 0 |
Fair Value - Total | 0 | 2,647 |
Gross Unrealized Loss - Less than 12 Months | 0 | (4) |
Gross Unrealized Loss - 12 Months or Longer | 0 | 0 |
Gross Unrealized Loss - Total | 0 | (4) |
RMBS, Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less than 12 Months | 7,424 | 10,494 |
Fair Value - 12 Months or Longer | 1,791 | 10,567 |
Fair Value - Total | 9,215 | 21,061 |
Gross Unrealized Loss - Less than 12 Months | (57) | (92) |
Gross Unrealized Loss - 12 Months or Longer | (51) | (192) |
Gross Unrealized Loss - Total | (108) | (284) |
RMBS, Non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less than 12 Months | 12 | 35 |
Fair Value - 12 Months or Longer | 0 | 16 |
Fair Value - Total | 12 | 51 |
Gross Unrealized Loss - Less than 12 Months | 0 | (1) |
Gross Unrealized Loss - 12 Months or Longer | 0 | (1) |
Gross Unrealized Loss - Total | 0 | (2) |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less than 12 Months | 7,436 | 10,529 |
Fair Value - 12 Months or Longer | 1,791 | 10,583 |
Fair Value - Total | 9,227 | 21,112 |
Gross Unrealized Loss - Less than 12 Months | (57) | (93) |
Gross Unrealized Loss - 12 Months or Longer | (51) | (193) |
Gross Unrealized Loss - Total | (108) | (286) |
CMBS, Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less than 12 Months | 1,545 | 2,580 |
Fair Value - 12 Months or Longer | 267 | 1,563 |
Fair Value - Total | 1,812 | 4,143 |
Gross Unrealized Loss - Less than 12 Months | (7) | (23) |
Gross Unrealized Loss - 12 Months or Longer | (4) | (19) |
Gross Unrealized Loss - Total | (11) | (42) |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less than 12 Months | 114 | 126 |
Fair Value - 12 Months or Longer | 1 | 106 |
Fair Value - Total | 115 | 232 |
Gross Unrealized Loss - Less than 12 Months | 0 | 0 |
Gross Unrealized Loss - 12 Months or Longer | 0 | 0 |
Gross Unrealized Loss - Total | $ 0 | $ 0 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities and Weighted-Average Yields of Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Securities available for sale | ||
Due in 1 year or less | $ 632 | |
Due after 1 year through 5 years | 14,150 | |
Due after 5 years through 10 years | 7,096 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 78,567 | |
Securities available for sale | 100,445 | $ 79,213 |
Amortized cost of securities available for sale | ||
Due in 1 year or less | 628 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after One Through Five Years, Amortized Cost | 14,091 | |
Due after 5 years through 10 years | 6,860 | |
Due > 10 Years | 75,990 | |
Amortized Cost | $ 97,569 | 77,984 |
Weighted average yield for securities available for sale | ||
Due in 1 Year or Less | 1.43% | |
Due > 1 Year through 5 Years | 0.74% | |
Due > 5 Years through 10 Years | 1.76% | |
Due > 10 Years | 2.20% | |
Total weighted average yield | 1.96% | |
U.S. Treasury securities | ||
Securities available for sale | ||
Due in 1 year or less | $ 202 | |
Due after 1 year through 5 years | 9,116 | |
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 | 0 | |
Securities available for sale | 9,318 | 4,124 |
Amortized cost of securities available for sale | ||
Amortized Cost | 9,302 | 4,122 |
RMBS, Agency | ||
Securities available for sale | ||
Due in 1 year or less | 0 | |
Due after 1 year through 5 years | 65 | |
Due after 5 years through 10 years | 1,175 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 74,226 | |
Securities available for sale | 75,466 | 62,839 |
Amortized cost of securities available for sale | ||
Amortized Cost | 73,248 | 62,003 |
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 | 1,237 | |
Securities available for sale | 1,237 | 1,499 |
Amortized cost of securities available for sale | ||
Amortized Cost | 1,035 | 1,235 |
RMBS | ||
Securities available for sale | ||
Due in 1 year or less | 0 | |
Due after 1 year through 5 years | 65 | |
Due after 5 years through 10 years | 1,175 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 75,463 | |
Securities available for sale | 76,703 | 64,338 |
Amortized cost of securities available for sale | ||
Amortized Cost | $ 74,283 | 63,238 |
Weighted average yield for securities available for sale | ||
Weighted-average expected life | 4 years | |
CMBS, Agency | ||
Securities available for sale | ||
Due in 1 year or less | $ 90 | |
Due after 1 year through 5 years | 2,896 | |
Due after 5 years through 10 years | 5,645 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 3,104 | |
Securities available for sale | 11,735 | 9,426 |
Amortized cost of securities available for sale | ||
Amortized Cost | $ 11,298 | 9,303 |
Weighted average yield for securities available for sale | ||
Weighted-average expected life | 5 years 7 months 6 days | |
Other securities | ||
Securities available for sale | ||
Due in 1 year or less | $ 340 | |
Due after 1 year through 5 years | 2,073 | |
Due after 5 years through 10 years | 276 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 0 | |
Securities available for sale | 2,689 | 1,325 |
Amortized cost of securities available for sale | ||
Amortized Cost | $ 2,686 | $ 1,321 |
Investment Securities - Realize
Investment Securities - Realized Gains and Losses on Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Realized gains (losses): | |||
Gross realized gains | $ 25 | $ 44 | $ 13 |
Gross realized losses | 0 | (18) | (21) |
Net realized gains (losses) | 25 | 26 | (8) |
Proceeds from sales | $ 812 | $ 4,780 | $ 6,399 |
Loans - Additional Information
Loans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Accrued interest receivable | $ 1,200 | ||
TDRs | 2,100 | $ 1,700 | |
Commitments to lend on loans modified in TDRs | 173 | 178 | |
Loans held for sale | 2,710 | 400 | |
Commercial and multifamily real estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Payments for Origination of Mortgage Loans Held-for-sale | 10,000 | 9,000 | $ 8,700 |
Federal Home Loan banks | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans Pledged as Collateral | 14,100 | 14,600 | |
Line of Credit Facility, Remaining Borrowing Capacity | 19,600 | 18,700 | |
Federal Reserve Discount Window | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans Pledged as Collateral | 25,500 | 6,700 | |
Line of Credit Facility, Remaining Borrowing Capacity | 20,000 | 5,300 | |
Credit Card and Consumer Banking | Performing | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
TDRs | 1,300 | 1,100 | |
Commercial Banking | Performing | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
TDRs | 442 | $ 224 | |
Domestic credit card: | Credit Card | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Revolving loans converted to term during period | $ 602 |
Loans - Loan Portfolio Composit
Loans - Loan Portfolio Composition and Aging Analysis (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | $ 245,060 | $ 255,736 | |
Past due | 6,564 | 9,947 | |
Total Loans | $ 251,624 | $ 265,809 | $ 245,899 |
Financing Receivable, Recorded Investment, Aging, Percent of Total Loan [Abstract] | |||
Current, percentage of total loans | 97.40% | 96.20% | |
Past due, percentage of total loans | 2.60% | 3.70% | |
Percentage of total loans | 100.00% | 100.00% | |
Unamortized premiums and discounts, deferred fees and costs | $ 1,100 | $ 1,100 | |
Credit Card | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 104,334 | 123,134 | |
Past due | 2,622 | 5,009 | |
Total Loans | 106,956 | 128,236 | |
Consumer Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 65,445 | 58,436 | |
Past due | 3,443 | 4,627 | |
Total Loans | 68,888 | 63,065 | |
Consumer Banking | Auto | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 62,381 | 55,778 | |
Past due | 3,381 | 4,584 | |
Total Loans | 65,762 | 60,362 | |
Consumer Banking | Retail banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 3,064 | 2,658 | |
Past due | 62 | 43 | |
Total Loans | 3,126 | 2,703 | |
Commercial Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 75,281 | 74,166 | |
Past due | 499 | 311 | |
Total Loans | 75,780 | 74,508 | |
Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 30,340 | 30,157 | |
Past due | 341 | 67 | |
Total Loans | 30,681 | 30,245 | |
Commercial Banking | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 44,941 | 44,009 | |
Past due | 158 | 244 | |
Total Loans | 45,099 | 44,263 | |
PCI Loans | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | $ 126 | ||
Financing Receivable, Recorded Investment, Aging, Percent of Total Loan [Abstract] | |||
Percentage of total loans | 0.10% | ||
PCI Loans | Credit Card | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | $ 93 | ||
PCI Loans | Consumer Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 2 | ||
PCI Loans | Consumer Banking | Auto | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 0 | ||
PCI Loans | Consumer Banking | Retail banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 2 | ||
PCI Loans | Commercial Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total Loans | 31 | ||
PCI Loans | Commercial Banking | Total commercial lending | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 31 | ||
PCI Loans | Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 21 | ||
Total Loans | 21 | ||
PCI Loans | Commercial Banking | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 10 | ||
Total Loans | 10 | ||
30-59 days | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | $ 3,330 | $ 4,444 | |
Financing Receivable, Recorded Investment, Aging, Percent of Total Loan [Abstract] | |||
Past due, percentage of total loans | 1.30% | 1.60% | |
30-59 days | Credit Card | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | $ 845 | $ 1,474 | |
30-59 days | Consumer Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 2,280 | 2,852 | |
30-59 days | Consumer Banking | Auto | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 2,252 | 2,828 | |
30-59 days | Consumer Banking | Retail banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 28 | 24 | |
Total Loans | 28 | ||
30-59 days | Commercial Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 205 | 118 | |
30-59 days | Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 136 | 43 | |
30-59 days | Commercial Banking | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 69 | 75 | |
60-89 days | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | $ 1,485 | $ 2,537 | |
Financing Receivable, Recorded Investment, Aging, Percent of Total Loan [Abstract] | |||
Past due, percentage of total loans | 0.60% | 1.00% | |
60-89 days | Credit Card | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | $ 522 | $ 1,122 | |
60-89 days | Consumer Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 926 | 1,369 | |
60-89 days | Consumer Banking | Auto | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 907 | 1,361 | |
60-89 days | Consumer Banking | Retail banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 19 | 8 | |
Total Loans | 19 | ||
60-89 days | Commercial Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 37 | 46 | |
60-89 days | Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 22 | 20 | |
60-89 days | Commercial Banking | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 15 | 26 | |
Greater than 90 days | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | $ 1,749 | $ 2,966 | |
Financing Receivable, Recorded Investment, Aging, Percent of Total Loan [Abstract] | |||
Past due, percentage of total loans | 0.70% | 1.10% | |
Greater than 90 days | Credit Card | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | $ 1,255 | $ 2,413 | |
Greater than 90 days | Consumer Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 237 | 406 | |
Greater than 90 days | Consumer Banking | Auto | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 222 | 395 | |
Greater than 90 days | Consumer Banking | Retail banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 15 | 11 | |
Total Loans | 15 | ||
Greater than 90 days | Commercial Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 257 | 147 | |
Greater than 90 days | Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 183 | 4 | |
Greater than 90 days | Commercial Banking | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 74 | 143 | |
Domestic credit card: | Credit Card | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 96,116 | 113,857 | |
Past due | 2,388 | 4,656 | |
Total Loans | 98,504 | 118,606 | |
Domestic credit card: | PCI Loans | Credit Card | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 93 | ||
Domestic credit card: | 30-59 days | Credit Card | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 755 | 1,341 | |
Total Loans | 755 | ||
Domestic credit card: | 60-89 days | Credit Card | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 464 | 1,038 | |
Total Loans | 464 | ||
Domestic credit card: | Greater than 90 days | Credit Card | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 1,169 | 2,277 | |
Total Loans | 1,169 | ||
International card businesses: | Credit Card | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 8,218 | 9,277 | |
Past due | 234 | 353 | |
Total Loans | 8,452 | 9,630 | |
International card businesses: | PCI Loans | Credit Card | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 0 | ||
International card businesses: | 30-59 days | Credit Card | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 90 | 133 | |
Total Loans | 90 | ||
International card businesses: | 60-89 days | Credit Card | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 58 | 84 | |
Total Loans | 58 | ||
International card businesses: | Greater than 90 days | Credit Card | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Past due | 86 | $ 136 | |
Total Loans | $ 86 |
Loans - 90+ Day Delinquent Loan
Loans - 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Past Due [Line Items] | ||
90 Days Past Due and Accruing | $ 1,302 | $ 2,407 |
Nonperforming Loans | 995 | $ 983 |
Nonperforming Loans Without an Allowance | $ 449 | |
Percentage, 90 Days Past Due and Accruing | 0.50% | 0.90% |
Percentage, Nonperforming Loans | 0.40% | 0.40% |
Percentage, Nonperforming Loans Without an Allowance | 0.20% | |
Interest income for loans classified as nonperforming | $ 39 | |
Credit Card | ||
Financing Receivable, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 1,251 | $ 2,407 |
Nonperforming Loans | 21 | 25 |
Nonperforming Loans Without an Allowance | 0 | |
Credit Card | Domestic credit card: | ||
Financing Receivable, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 1,169 | 2,277 |
Nonperforming Loans Without an Allowance | 0 | |
Credit Card | International card businesses: | ||
Financing Receivable, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 82 | 130 |
Nonperforming Loans | 21 | 25 |
Nonperforming Loans Without an Allowance | 0 | |
Consumer Banking | ||
Financing Receivable, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 0 | 0 |
Nonperforming Loans | 324 | 510 |
Nonperforming Loans Without an Allowance | 0 | |
Consumer Banking | Auto | ||
Financing Receivable, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 0 | 0 |
Nonperforming Loans | 294 | 487 |
Nonperforming Loans Without an Allowance | 0 | |
Consumer Banking | Retail banking | ||
Financing Receivable, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 0 | 0 |
Nonperforming Loans | 30 | 23 |
Nonperforming Loans Without an Allowance | 0 | |
Commercial Banking | ||
Financing Receivable, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 51 | 0 |
Nonperforming Loans | 650 | 448 |
Nonperforming Loans Without an Allowance | 449 | |
Commercial Banking | Commercial and multifamily real estate | ||
Financing Receivable, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 51 | 0 |
Nonperforming Loans | 200 | 38 |
Nonperforming Loans Without an Allowance | 184 | |
Commercial Banking | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 0 | 0 |
Nonperforming Loans | 450 | $ 410 |
Nonperforming Loans Without an Allowance | $ 265 |
Loans - Credit Card Delinquency
Loans - Credit Card Delinquency Status (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total loans held for investment | $ 251,624 | $ 265,809 | $ 245,899 |
Credit Card | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Revolving Loans | 106,323 | ||
Revolving Loans Converted to Term | 633 | ||
Total loans held for investment | 106,956 | 128,236 | |
Domestic credit card: | Credit Card | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Revolving Loans | 97,969 | ||
Revolving Loans Converted to Term | 535 | ||
Total loans held for investment | 98,504 | 118,606 | |
International card businesses: | Credit Card | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Revolving Loans | 8,354 | ||
Revolving Loans Converted to Term | 98 | ||
Total loans held for investment | 8,452 | $ 9,630 | |
Current | Domestic credit card: | Credit Card | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Revolving Loans | 95,629 | ||
Revolving Loans Converted to Term | 487 | ||
Total loans held for investment | 96,116 | ||
Current | International card businesses: | Credit Card | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Revolving Loans | 8,152 | ||
Revolving Loans Converted to Term | 66 | ||
Total loans held for investment | 8,218 | ||
30-59 days | Domestic credit card: | Credit Card | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Revolving Loans | 734 | ||
Revolving Loans Converted to Term | 21 | ||
Total loans held for investment | 755 | ||
30-59 days | International card businesses: | Credit Card | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Revolving Loans | 79 | ||
Revolving Loans Converted to Term | 11 | ||
Total loans held for investment | 90 | ||
60-89 days | Domestic credit card: | Credit Card | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Revolving Loans | 451 | ||
Revolving Loans Converted to Term | 13 | ||
Total loans held for investment | 464 | ||
60-89 days | International card businesses: | Credit Card | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Revolving Loans | 47 | ||
Revolving Loans Converted to Term | 11 | ||
Total loans held for investment | 58 | ||
Greater than 90 days | Domestic credit card: | Credit Card | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Revolving Loans | 1,155 | ||
Revolving Loans Converted to Term | 14 | ||
Total loans held for investment | 1,169 | ||
Greater than 90 days | International card businesses: | Credit Card | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Revolving Loans | 76 | ||
Revolving Loans Converted to Term | 10 | ||
Total loans held for investment | $ 86 |
Loans - Consumer Banking Portfo
Loans - Consumer Banking Portfolio by Credit Quality Indicator (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | $ 251,624 | $ 265,809 | $ 245,899 |
Consumer Banking | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 29,724 | ||
2019 | 18,253 | ||
2018 | 10,209 | ||
2017 | 6,191 | ||
2016 | 2,717 | ||
Prior | 1,102 | ||
Total Term Loans | 68,196 | ||
Revolving Loans | 683 | ||
Revolving Loans Converted to Term | 9 | ||
Total Loans | 68,888 | 63,065 | |
Total Loans, Excluding PCI Loans | 63,063 | ||
Auto | Consumer Banking | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 28,683 | ||
2019 | 18,020 | ||
2018 | 9,995 | ||
2017 | 5,967 | ||
2016 | 2,542 | ||
Prior | 555 | ||
Total Term Loans | 65,762 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total Loans | 65,762 | 60,362 | |
Total Loans, Excluding PCI Loans | 60,362 | ||
Retail banking | Consumer Banking | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 1,041 | ||
2019 | 233 | ||
2018 | 214 | ||
2017 | 224 | ||
2016 | 175 | ||
Prior | 547 | ||
Total Term Loans | 2,434 | ||
Revolving Loans | 683 | ||
Revolving Loans Converted to Term | 9 | ||
Total Loans | 3,126 | 2,703 | |
Total Loans, Excluding PCI Loans | 2,701 | ||
Loans under Paycheck Protection Program | 919 | ||
Current | Retail banking | Consumer Banking | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 1,041 | ||
2019 | 233 | ||
2018 | 206 | ||
2017 | 222 | ||
2016 | 167 | ||
Prior | 537 | ||
Total Term Loans | 2,406 | ||
Revolving Loans | 651 | ||
Revolving Loans Converted to Term | 7 | ||
Total Loans | 3,064 | ||
Total Loans, Excluding PCI Loans | 2,658 | ||
30-59 days | Retail banking | Consumer Banking | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 7 | ||
2017 | 1 | ||
2016 | 2 | ||
Prior | 2 | ||
Total Term Loans | 12 | ||
Revolving Loans | 15 | ||
Revolving Loans Converted to Term | 1 | ||
Total Loans | 28 | ||
Total Loans, Excluding PCI Loans | 24 | ||
60-89 days | Retail banking | Consumer Banking | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 1 | ||
2017 | 0 | ||
2016 | 5 | ||
Prior | 4 | ||
Total Term Loans | 10 | ||
Revolving Loans | 8 | ||
Revolving Loans Converted to Term | 1 | ||
Total Loans | 19 | ||
Total Loans, Excluding PCI Loans | 8 | ||
Greater than 90 days | Retail banking | Consumer Banking | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 1 | ||
2016 | 1 | ||
Prior | 4 | ||
Total Term Loans | 6 | ||
Revolving Loans | 9 | ||
Revolving Loans Converted to Term | 0 | ||
Total Loans | 15 | ||
Total Loans, Excluding PCI Loans | 11 | ||
Greater than 660 | Auto | Consumer Banking | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 13,352 | ||
2019 | 8,091 | ||
2018 | 4,675 | ||
2017 | 2,810 | ||
2016 | 1,168 | ||
Prior | 203 | ||
Total Term Loans | 30,299 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total Loans | 30,299 | ||
Total Loans, Excluding PCI Loans | 28,773 | ||
621-660 | Auto | Consumer Banking | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 5,781 | ||
2019 | 3,631 | ||
2018 | 2,003 | ||
2017 | 1,172 | ||
2016 | 488 | ||
Prior | 109 | ||
Total Term Loans | 13,184 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total Loans | 13,184 | ||
Total Loans, Excluding PCI Loans | 11,924 | ||
620 or below | Auto | Consumer Banking | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 9,550 | ||
2019 | 6,298 | ||
2018 | 3,317 | ||
2017 | 1,985 | ||
2016 | 886 | ||
Prior | 243 | ||
Total Term Loans | 22,279 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total Loans | $ 22,279 | ||
Total Loans, Excluding PCI Loans | $ 19,665 |
Loans - Commercial Banking_ Ris
Loans - Commercial Banking: Risk Profile by Internal Risk Rating (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | $ 251,624 | $ 265,809 | $ 245,899 |
Commercial Banking | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
2020 | 14,262 | ||
2019 | 14,181 | ||
2018 | 8,366 | ||
2017 | 4,818 | ||
2016 | 3,990 | ||
Prior | 9,561 | ||
Total Term Loans | 55,178 | ||
Revolving Loans | 20,455 | ||
Revolving Loans Converted to Term | 147 | ||
Total Loans | 75,780 | $ 74,508 | |
Internal Risk, Percentage | 100.00% | ||
Loans under Paycheck Protection Program | 238 | ||
Commercial Banking | PCI loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | $ 31 | ||
Internal Risk, Percentage | 0.00% | ||
Commercial Banking | Noncriticized | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | $ 71,848 | ||
Internal Risk, Percentage | 96.50% | ||
Commercial Banking | Criticized | Criticized performing | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | $ 2,181 | ||
Internal Risk, Percentage | 2.90% | ||
Commercial Banking | Criticized | Criticized nonperforming | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | $ 448 | ||
Internal Risk, Percentage | 0.60% | ||
Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
2020 | 4,111 | ||
2019 | 5,389 | ||
2018 | 3,777 | ||
2017 | 1,798 | ||
2016 | 2,043 | ||
Prior | 6,312 | ||
Total Term Loans | 23,430 | ||
Revolving Loans | 7,226 | ||
Revolving Loans Converted to Term | 25 | ||
Total Loans | 30,681 | $ 30,245 | |
Internal Risk, Percentage | 100.00% | ||
Commercial Banking | Commercial and multifamily real estate | PCI loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | $ 21 | ||
Internal Risk, Percentage | 0.10% | ||
Commercial Banking | Commercial and multifamily real estate | Noncriticized | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
2020 | 3,791 | ||
2019 | 4,932 | ||
2018 | 3,232 | ||
2017 | 1,437 | ||
2016 | 1,649 | ||
Prior | 4,904 | ||
Total Term Loans | 19,945 | ||
Revolving Loans | 7,114 | ||
Revolving Loans Converted to Term | 0 | ||
Total Loans | 27,059 | $ 29,625 | |
Internal Risk, Percentage | 97.90% | ||
Commercial Banking | Commercial and multifamily real estate | Criticized | Criticized performing | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
2020 | 320 | ||
2019 | 446 | ||
2018 | 515 | ||
2017 | 355 | ||
2016 | 391 | ||
Prior | 1,258 | ||
Total Term Loans | 3,285 | ||
Revolving Loans | 112 | ||
Revolving Loans Converted to Term | 25 | ||
Total Loans | 3,422 | $ 561 | |
Internal Risk, Percentage | 1.90% | ||
Commercial Banking | Commercial and multifamily real estate | Criticized | Criticized nonperforming | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
2020 | 0 | ||
2019 | 11 | ||
2018 | 30 | ||
2017 | 6 | ||
2016 | 3 | ||
Prior | 150 | ||
Total Term Loans | 200 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total Loans | 200 | $ 38 | |
Internal Risk, Percentage | 0.10% | ||
Commercial Banking | Commercial and industrial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
2020 | 10,151 | ||
2019 | 8,792 | ||
2018 | 4,589 | ||
2017 | 3,020 | ||
2016 | 1,947 | ||
Prior | 3,249 | ||
Total Term Loans | 31,748 | ||
Revolving Loans | 13,229 | ||
Revolving Loans Converted to Term | 122 | ||
Total Loans | 45,099 | $ 44,263 | |
Internal Risk, Percentage | 100.00% | ||
Commercial Banking | Commercial and industrial | PCI loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total Loans | $ 10 | ||
Internal Risk, Percentage | 0.00% | ||
Commercial Banking | Commercial and industrial | Noncriticized | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
2020 | 9,761 | ||
2019 | 7,890 | ||
2018 | 4,043 | ||
2017 | 2,717 | ||
2016 | 1,832 | ||
Prior | 3,034 | ||
Total Term Loans | 29,277 | ||
Revolving Loans | 11,548 | ||
Revolving Loans Converted to Term | 80 | ||
Total Loans | 40,905 | $ 42,223 | |
Internal Risk, Percentage | 95.40% | ||
Commercial Banking | Commercial and industrial | Criticized | Criticized performing | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
2020 | 316 | ||
2019 | 794 | ||
2018 | 521 | ||
2017 | 252 | ||
2016 | 106 | ||
Prior | 215 | ||
Total Term Loans | 2,204 | ||
Revolving Loans | 1,498 | ||
Revolving Loans Converted to Term | 42 | ||
Total Loans | 3,744 | $ 1,620 | |
Internal Risk, Percentage | 3.70% | ||
Commercial Banking | Commercial and industrial | Criticized | Criticized nonperforming | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
2020 | 74 | ||
2019 | 108 | ||
2018 | 25 | ||
2017 | 51 | ||
2016 | 9 | ||
Prior | 0 | ||
Total Term Loans | 267 | ||
Revolving Loans | 183 | ||
Revolving Loans Converted to Term | 0 | ||
Total Loans | $ 450 | $ 410 | |
Internal Risk, Percentage | 0.90% |
Loans - Trouble Debt Restructur
Loans - Trouble Debt Restructurings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total Loans Modified | $ 1,489 | $ 998 | $ 1,053 |
Credit Card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total Loans Modified | 411 | 524 | 596 |
Consumer Banking | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total Loans Modified | 541 | 275 | 241 |
Consumer Banking | Auto | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total Loans Modified | 536 | 268 | 227 |
Consumer Banking | Home Loan | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total Loans Modified | 6 | ||
Consumer Banking | Retail banking | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total Loans Modified | 5 | 7 | 8 |
Commercial Banking | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total Loans Modified | 537 | 199 | 216 |
Commercial Banking | Total commercial lending | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total Loans Modified | 198 | 213 | |
Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total Loans Modified | 98 | 39 | 43 |
Commercial Banking | Commercial and industrial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total Loans Modified | $ 439 | 159 | 170 |
Commercial Banking | Small-ticket commercial real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total Loans Modified | $ 1 | $ 3 | |
Reduced Interest Rate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 33.00% | 67.00% | 68.00% |
Average Rate Reduction | 18.06% | 16.37% | 16.84% |
Reduced Interest Rate | Credit Card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 100.00% | 100.00% | 100.00% |
Average Rate Reduction | 20.61% | 20.12% | 19.34% |
Reduced Interest Rate | Consumer Banking | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 11.00% | 38.00% | 48.00% |
Average Rate Reduction | 5.73% | 3.68% | 3.93% |
Reduced Interest Rate | Consumer Banking | Auto | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 11.00% | 39.00% | 49.00% |
Average Rate Reduction | 5.68% | 3.63% | 3.88% |
Reduced Interest Rate | Consumer Banking | Home Loan | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 28.00% | ||
Average Rate Reduction | 1.78% | ||
Reduced Interest Rate | Consumer Banking | Retail banking | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 11.00% | 11.00% | 16.00% |
Average Rate Reduction | 10.86% | 10.66% | 10.92% |
Reduced Interest Rate | Commercial Banking | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 3.00% | 19.00% | 0.00% |
Average Rate Reduction | 0.14% | 0.04% | 1.03% |
Reduced Interest Rate | Commercial Banking | Total commercial lending | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 19.00% | 0.00% | |
Average Rate Reduction | 0.04% | 1.03% | |
Reduced Interest Rate | Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 0.00% | 87.00% | 0.00% |
Average Rate Reduction | 0.00% | 0.00% | 0.00% |
Reduced Interest Rate | Commercial Banking | Commercial and industrial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 4.00% | 3.00% | 0.00% |
Average Rate Reduction | 0.14% | 0.33% | 1.03% |
Reduced Interest Rate | Commercial Banking | Small-ticket commercial real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | |
Average Rate Reduction | 0.00% | 0.00% | |
Term Extension | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 55.00% | 28.00% | 32.00% |
Average Term Extension (Months) | 8 months | 7 months | 12 months |
Term Extension | Credit Card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 0.00% |
Average Term Extension (Months) | 0 months | 0 months | 0 months |
Term Extension | Consumer Banking | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 94.00% | 89.00% | 87.00% |
Average Term Extension (Months) | 3 months | 7 months | 13 months |
Term Extension | Consumer Banking | Auto | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 95.00% | 90.00% | 89.00% |
Average Term Extension (Months) | 3 months | 7 months | 8 months |
Term Extension | Consumer Banking | Home Loan | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 83.00% | ||
Average Term Extension (Months) | 214 months | ||
Term Extension | Consumer Banking | Retail banking | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 20.00% | 54.00% | 43.00% |
Average Term Extension (Months) | 8 months | 3 months | 12 months |
Term Extension | Commercial Banking | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 58.00% | 18.00% | 59.00% |
Average Term Extension (Months) | 17 months | 7 months | 11 months |
Term Extension | Commercial Banking | Total commercial lending | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 18.00% | 60.00% | |
Average Term Extension (Months) | 7 months | 11 months | |
Term Extension | Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 86.00% | 13.00% | 80.00% |
Average Term Extension (Months) | 5 months | 1 month | 5 months |
Term Extension | Commercial Banking | Commercial and industrial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 52.00% | 20.00% | 54.00% |
Average Term Extension (Months) | 21 months | 8 months | 13 months |
Term Extension | Commercial Banking | Small-ticket commercial real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | |
Average Term Extension (Months) | 0 months | 0 months | |
Principal Forgiveness | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 1.00% | 0.00% | 0.00% |
Gross Balance Reduction | $ 8 | $ 1 | $ 1 |
Principal Forgiveness | Credit Card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 0.00% |
Gross Balance Reduction | $ 0 | $ 0 | $ 0 |
Principal Forgiveness | Consumer Banking | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 0.00% | 2.00% | 1.00% |
Gross Balance Reduction | $ 1 | $ 1 | $ 1 |
Principal Forgiveness | Consumer Banking | Auto | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 0.00% | 1.00% | 1.00% |
Gross Balance Reduction | $ 1 | $ 1 | $ 1 |
Principal Forgiveness | Consumer Banking | Home Loan | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 0.00% | ||
Gross Balance Reduction | $ 0 | ||
Principal Forgiveness | Consumer Banking | Retail banking | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 0.00% | 33.00% | 0.00% |
Gross Balance Reduction | $ 0 | $ 0 | $ 0 |
Principal Forgiveness | Commercial Banking | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 3.00% | 0.00% | 0.00% |
Gross Balance Reduction | $ 7 | $ 0 | $ 0 |
Principal Forgiveness | Commercial Banking | Total commercial lending | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | |
Gross Balance Reduction | $ 0 | $ 0 | |
Principal Forgiveness | Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 0.00% |
Gross Balance Reduction | $ 0 | $ 0 | $ 0 |
Principal Forgiveness | Commercial Banking | Commercial and industrial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 4.00% | 0.00% | 0.00% |
Gross Balance Reduction | $ 7 | $ 0 | $ 0 |
Principal Forgiveness | Commercial Banking | Small-ticket commercial real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | |
Gross Balance Reduction | $ 0 | $ 0 | |
Domestic credit card: | Credit Card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total Loans Modified | $ 243 | $ 351 | $ 412 |
Domestic credit card: | Reduced Interest Rate | Credit Card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 100.00% | 100.00% | 100.00% |
Average Rate Reduction | 15.94% | 16.60% | 15.93% |
Domestic credit card: | Term Extension | Credit Card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 0.00% |
Average Term Extension (Months) | 0 months | 0 months | 0 months |
Domestic credit card: | Principal Forgiveness | Credit Card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 0.00% |
Gross Balance Reduction | $ 0 | $ 0 | $ 0 |
International card businesses: | Credit Card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total Loans Modified | $ 168 | $ 173 | $ 184 |
International card businesses: | Reduced Interest Rate | Credit Card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 100.00% | 100.00% | 100.00% |
Average Rate Reduction | 27.38% | 27.28% | 26.96% |
International card businesses: | Term Extension | Credit Card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
% of TDR Activity | 0.00% | 0.00% | 0.00% |
Average Term Extension (Months) | 0 months | 0 months | 0 months |
International card businesses: | Principal Forgiveness | Credit Card | |||
Financing Receivable, Troubled Debt Restructuring [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 (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 96,905 | 122,156 | 129,120 |
Total Loans | $ | $ 414 | $ 306 | $ 437 |
Credit Card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 91,002 | 116,556 | 122,084 |
Total Loans | $ | $ 156 | $ 209 | $ 232 |
Consumer Banking | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 5,887 | 5,599 | 7,009 |
Total Loans | $ | $ 78 | $ 72 | $ 82 |
Consumer Banking | Auto | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 5,877 | 5,575 | 6,980 |
Total Loans | $ | $ 77 | $ 70 | $ 79 |
Consumer Banking | Home Loan | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 3 |
Total Loans | $ | $ 0 | $ 0 | $ 1 |
Consumer Banking | Retail banking | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 10 | 24 | 26 |
Total Loans | $ | $ 1 | $ 2 | $ 2 |
Commercial Banking | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 16 | 1 | 27 |
Total Loans | $ | $ 180 | $ 25 | $ 123 |
Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 1 | 0 | 1 |
Total Loans | $ | $ 50 | $ 0 | $ 3 |
Commercial Banking | Commercial and industrial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 15 | 1 | 26 |
Total Loans | $ | $ 130 | $ 25 | $ 120 |
Domestic credit card: | Credit Card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 32,639 | 47,086 | 61,070 |
Total Loans | $ | $ 69 | $ 99 | $ 126 |
International card businesses: | Credit Card | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 58,363 | 69,470 | 61,014 |
Total Loans | $ | $ 87 | $ 110 | $ 106 |
Allowance for Credit Losses a_3
Allowance for Credit Losses and Reserve for Unfunded Lending Commitments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for credit loss | $ 15,564 | $ 7,208 | ||
Uncollectible Portion of Billed Finance Charges and Fees | 1,100 | 1,400 | $ 1,300 | |
Allowance for credit losses | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Increase (Decrease) in Allowance for Credit Loss | 8,400 | |||
Allowance for credit loss | $ 15,564 | $ 7,208 | $ 7,220 | $ 7,502 |
Allowance for Credit Losses a_4
Allowance for Credit Losses and Reserve for Unfunded Lending Commitments - Allowance for Loan and Lease Losses and Reserve for Unfunded Lending Commitments Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | $ 7,208 | |||
Provision for credit losses | 10,264 | $ 6,236 | $ 5,856 | |
Balance at the end of the period | 15,564 | 7,208 | ||
Other | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Provision for credit losses | 3 | 0 | (49) | |
Allowance for credit losses | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 7,208 | 7,220 | 7,502 | |
Charge-offs | (7,677) | (8,809) | (8,615) | |
Recoveries | 2,452 | 2,557 | 2,503 | |
Net charge-offs | (5,225) | (6,252) | (6,112) | |
Provision for credit losses | 10,238 | 6,223 | 5,858 | |
Allowance build (release) for credit losses | 5,013 | (29) | (254) | |
Other changes | 36 | 17 | (28) | |
Balance at the end of the period | 15,564 | 7,208 | 7,220 | |
Allowance for credit losses | Other | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 0 | 1 | ||
Charge-offs | (7) | |||
Recoveries | 1 | |||
Net charge-offs | (6) | |||
Provision for credit losses | (49) | |||
Allowance build (release) for credit losses | (55) | |||
Other changes | 54 | |||
Balance at the end of the period | 0 | |||
Allowance for credit losses | Cumulative effects from adoption of new accounting standards | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 2,845 | |||
Balance at the end of the period | 2,845 | |||
Allowance for credit losses | Finance charge and fee reserve reclassification | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 462 | |||
Balance at the end of the period | 462 | |||
Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 10,515 | |||
Balance at the end of the period | 10,515 | |||
Reserve for unfunded lending commitments | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 135 | 122 | 124 | |
Provision for credit losses | 23 | 13 | (2) | |
Balance at the end of the period | 195 | 135 | 122 | |
Reserve for unfunded lending commitments | Other | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 0 | 0 | ||
Provision for credit losses | 0 | |||
Balance at the end of the period | 0 | |||
Reserve for unfunded lending commitments | Cumulative effects from adoption of new accounting standards | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 37 | |||
Balance at the end of the period | 37 | |||
Reserve for unfunded lending commitments | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 172 | |||
Balance at the end of the period | 172 | |||
Combined allowance and reserve | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 7,343 | 7,342 | ||
Balance at the end of the period | 15,759 | 7,343 | 7,342 | |
Combined allowance and reserve | Other | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 0 | |||
Balance at the end of the period | 0 | |||
Credit Card | Allowance for credit losses | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 5,395 | 5,535 | 5,648 | |
Charge-offs | (5,749) | (6,711) | (6,657) | |
Recoveries | 1,479 | 1,562 | 1,588 | |
Net charge-offs | (4,270) | (5,149) | (5,069) | |
Provision for credit losses | 7,327 | 4,992 | 4,984 | |
Allowance build (release) for credit losses | 3,057 | (157) | (85) | |
Other changes | 36 | 17 | (28) | |
Balance at the end of the period | 11,191 | 5,395 | 5,535 | |
Credit Card | Allowance for credit losses | Cumulative effects from adoption of new accounting standards | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 2,241 | |||
Balance at the end of the period | 2,241 | |||
Credit Card | Allowance for credit losses | Finance charge and fee reserve reclassification | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 462 | |||
Balance at the end of the period | 462 | |||
Credit Card | Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 8,098 | |||
Balance at the end of the period | 8,098 | |||
Credit Card | Reserve for unfunded lending commitments | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 0 | 0 | 0 | |
Provision for credit losses | 0 | 0 | 0 | |
Balance at the end of the period | 0 | 0 | 0 | |
Credit Card | Reserve for unfunded lending commitments | Cumulative effects from adoption of new accounting standards | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 0 | |||
Balance at the end of the period | 0 | |||
Credit Card | Reserve for unfunded lending commitments | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 0 | |||
Balance at the end of the period | 0 | |||
Credit Card | Combined allowance and reserve | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 5,395 | 5,535 | ||
Balance at the end of the period | 11,191 | 5,395 | 5,535 | |
Consumer Banking | Allowance for credit losses | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 1,038 | 1,048 | 1,242 | |
Charge-offs | (1,534) | (1,917) | (1,832) | |
Recoveries | 956 | 970 | 851 | |
Net charge-offs | (578) | (947) | (981) | |
Provision for credit losses | 1,753 | 937 | 841 | |
Allowance build (release) for credit losses | 1,175 | (10) | (140) | |
Other changes | 0 | 0 | (54) | |
Balance at the end of the period | 2,715 | 1,038 | 1,048 | |
Consumer Banking | Allowance for credit losses | Cumulative effects from adoption of new accounting standards | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 502 | |||
Balance at the end of the period | 502 | |||
Consumer Banking | Allowance for credit losses | Finance charge and fee reserve reclassification | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 0 | |||
Balance at the end of the period | 0 | |||
Consumer Banking | Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 1,540 | |||
Balance at the end of the period | 1,540 | |||
Consumer Banking | Reserve for unfunded lending commitments | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 5 | 4 | 7 | |
Provision for credit losses | 0 | 1 | (3) | |
Balance at the end of the period | 0 | 5 | 4 | |
Consumer Banking | Reserve for unfunded lending commitments | Cumulative effects from adoption of new accounting standards | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | (5) | |||
Balance at the end of the period | (5) | |||
Consumer Banking | Reserve for unfunded lending commitments | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 0 | |||
Balance at the end of the period | 0 | |||
Consumer Banking | Combined allowance and reserve | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 1,043 | 1,052 | ||
Balance at the end of the period | 2,715 | 1,043 | 1,052 | |
Commercial Banking | Allowance for credit losses | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 775 | 637 | 611 | |
Charge-offs | (394) | (181) | (119) | |
Recoveries | 17 | 25 | 63 | |
Net charge-offs | (377) | (156) | (56) | |
Provision for credit losses | 1,158 | 294 | 82 | |
Allowance build (release) for credit losses | 781 | 138 | 26 | |
Other changes | 0 | 0 | 0 | |
Balance at the end of the period | 1,658 | 775 | 637 | |
Commercial Banking | Allowance for credit losses | Cumulative effects from adoption of new accounting standards | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 102 | |||
Balance at the end of the period | 102 | |||
Commercial Banking | Allowance for credit losses | Finance charge and fee reserve reclassification | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 0 | |||
Balance at the end of the period | 0 | |||
Commercial Banking | Allowance for credit losses | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 877 | |||
Balance at the end of the period | 877 | |||
Commercial Banking | Reserve for unfunded lending commitments | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 130 | 118 | 117 | |
Provision for credit losses | 23 | 12 | 1 | |
Balance at the end of the period | 195 | 130 | 118 | |
Commercial Banking | Reserve for unfunded lending commitments | Cumulative effects from adoption of new accounting standards | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 42 | |||
Balance at the end of the period | 42 | |||
Commercial Banking | Reserve for unfunded lending commitments | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 172 | |||
Balance at the end of the period | 172 | |||
Commercial Banking | Combined allowance and reserve | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at the beginning of the period | 905 | 755 | ||
Balance at the end of the period | $ 1,853 | $ 905 | 755 | |
Partnership Credit Card Loan Portfolio | Allowance for credit losses | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Allowance build (release) for credit losses | $ 327 | |||
Residential Portfolio Segment | Other | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Gain in other category | 499 | |||
Benefit for credit losses | $ 46 |
Allowance for Credit Losses a_5
Allowance for Credit Losses and Reserve for Unfunded Lending Commitments - Summary of Loss Sharing Arrangements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Provision for credit losses | $ 10,264 | $ 6,236 | $ 5,856 |
Loss sharing agreements | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Expected reimbursement from loss sharing partners, beginning balance | 1,162 | 379 | 380 |
Amounts due from partners which reduced net charge-offs | (959) | (600) | (382) |
Provision for credit losses | 952 | 1,383 | 381 |
Expected reimbursement from loss sharing partners, ending balance | 2,159 | 1,162 | $ 379 |
Loss sharing agreements | Including CECL Impact Adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Expected reimbursement from loss sharing partners, beginning balance | $ 2,166 | ||
Expected reimbursement from loss sharing partners, ending balance | $ 2,166 |
Variable Interest Entities an_3
Variable Interest Entities and Securitizations - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | ||
Amortization method qualified affordable housing investments, amortization | $ 556 | $ 554 |
Affordable housing tax credits | 607 | 610 |
Amortization method qualified affordable housing investments | 4,500 | 4,400 |
Qualified affordable housing investments, commitment | 1,500 | 1,500 |
Carrying Amount of Assets | 421,602 | 390,365 |
VIE, reporting entity involvement, maximum loss exposure | 5,343 | 5,413 |
Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 5,093 | 5,127 |
Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 26,619 | 35,519 |
Affordable housing entities | ||
Variable Interest Entity [Line Items] | ||
VIE, reporting entity involvement, maximum loss exposure | 4,602 | 4,559 |
Affordable housing entities | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Total assets of the unconsolidated VIE investment funds | 11,000 | 10,900 |
Carrying Amount of Assets | 4,602 | 4,559 |
Affordable housing entities | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 242 | 236 |
Entities that provide capital to low-income and rural communities | ||
Variable Interest Entity [Line Items] | ||
VIE, reporting entity involvement, maximum loss exposure | 0 | 0 |
Entities that provide capital to low-income and rural communities | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 0 | 0 |
Entities that provide capital to low-income and rural communities | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 1,951 | 1,889 |
Other | ||
Variable Interest Entity [Line Items] | ||
VIE, reporting entity involvement, maximum loss exposure | 436 | 502 |
Other | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 436 | 502 |
Other | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | $ 0 | $ 0 |
Variable Interest Entities an_4
Variable Interest Entities and Securitizations - Carrying Amount of Consolidated and Unconsolidated VIEs (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | $ 5,343 | $ 5,413 |
Carrying Amount of Assets | 421,602 | 390,365 |
Carrying Amount of Liabilities | 361,398 | 332,354 |
Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 26,619 | 35,519 |
Carrying Amount of Liabilities | 12,436 | 18,201 |
Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 5,093 | 5,127 |
Carrying Amount of Liabilities | 1,240 | 1,289 |
Affordable housing entities | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 4,602 | 4,559 |
VIE, nonconsolidated, carrying amount of assets included in certain investment structures | 2,300 | 2,300 |
VIE, nonconsolidated, carrying amount of liabilities included in certain investment structures | 596 | 741 |
Affordable housing entities | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 242 | 236 |
Carrying Amount of Liabilities | 17 | 7 |
Affordable housing entities | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 4,602 | 4,559 |
Carrying Amount of Liabilities | 1,240 | 1,289 |
Entities that provide capital to low-income and rural communities | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 0 | 0 |
Entities that provide capital to low-income and rural communities | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 1,951 | 1,889 |
Carrying Amount of Liabilities | 26 | 69 |
Entities that provide capital to low-income and rural communities | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 0 | 0 |
Carrying Amount of Liabilities | 0 | 0 |
Other | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 436 | 502 |
Other | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 0 | 0 |
Carrying Amount of Liabilities | 0 | 0 |
Other | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 436 | 502 |
Carrying Amount of Liabilities | 0 | 0 |
Total other VIEs | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 5,038 | 5,061 |
Total other VIEs | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 2,193 | 2,125 |
Carrying Amount of Liabilities | 43 | 76 |
Total other VIEs | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 5,038 | 5,061 |
Carrying Amount of Liabilities | 1,240 | 1,289 |
Credit card loan securitizations | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 0 | 0 |
Credit card loan securitizations | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 22,066 | 31,112 |
Carrying Amount of Liabilities | 10,338 | 16,113 |
Credit card loan securitizations | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 0 | 0 |
Carrying Amount of Liabilities | 0 | 0 |
Auto loan securitizations | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 0 | 0 |
Auto loan securitizations | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 2,360 | 2,282 |
Carrying Amount of Liabilities | 2,055 | 2,012 |
Auto loan securitizations | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 0 | 0 |
Carrying Amount of Liabilities | 0 | 0 |
Home loan | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 305 | 352 |
Home loan | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 0 | 0 |
Carrying Amount of Liabilities | 0 | 0 |
Home loan | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 55 | 66 |
Carrying Amount of Liabilities | 0 | 0 |
Total securitization-related VIEs | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 305 | 352 |
Total securitization-related VIEs | Consolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 24,426 | 33,394 |
Carrying Amount of Liabilities | 12,393 | 18,125 |
Total securitization-related VIEs | Unconsolidated | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets | 55 | 66 |
Carrying Amount of Liabilities | $ 0 | $ 0 |
Variable Interest Entities an_5
Variable Interest Entities and Securitizations - Continuing Involvement in Securitization Related VIEs (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Credit Card | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Securities held by third-party investors, non-mortgage | $ 10,361 | $ 15,798 |
Receivables in the trust, non-mortgage | 23,683 | 31,625 |
Cash balance of spread or reserve accounts, non-mortgage | 0 | 0 |
Auto | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Securities held by third-party investors, non-mortgage | 2,053 | 2,010 |
Receivables in the trust, non-mortgage | 2,243 | 2,192 |
Cash balance of spread or reserve accounts, non-mortgage | 10 | 7 |
Home Loan | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Securities held by third-party investors, mortgage | 790 | 962 |
Receivables in the trust, mortgage | 793 | 978 |
Cash balance of spread or reserve accounts, mortgage | $ 15 | $ 17 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Components (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Intangible Assets by Major Class [Line Items] | ||||
Goodwill, gross | $ 14,653 | $ 14,653 | ||
Goodwill | 14,653 | 14,653 | $ 14,544 | $ 14,533 |
Intangible assets, gross (excluding Goodwill) | 396 | 2,178 | ||
Accumulated amortization | (306) | (2,004) | ||
Intangible assets, net (excluding Goodwill) | $ 90 | $ 174 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 7 years 1 month 6 days | 5 years 7 months 6 days | ||
Intangible assets gross including Goodwill | $ 15,049 | $ 16,831 | ||
Total goodwill and other intangible assets, net carrying value | 14,743 | 14,827 | ||
Commercial MSRs, gross | 542 | 555 | ||
Commercial MSR, accumulated amortization | (175) | (255) | ||
Total commercial MSRs | 367 | 300 | ||
Amortization expense for amortizable intangible assets | 69 | 70 | ||
PCCR intangibles | ||||
Schedule of Intangible Assets by Major Class [Line Items] | ||||
Intangible assets, gross (excluding Goodwill) | 148 | 1,932 | ||
Accumulated amortization | (138) | (1,864) | ||
Intangible assets, net (excluding Goodwill) | $ 10 | $ 68 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 6 years 2 months 12 days | 3 years 10 months 24 days | ||
Other intangible assets | ||||
Schedule of Intangible Assets by Major Class [Line Items] | ||||
Intangible assets, gross (excluding Goodwill) | $ 248 | $ 246 | ||
Accumulated amortization | (168) | (140) | ||
Intangible assets, net (excluding Goodwill) | $ 80 | $ 106 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 7 years 3 months 18 days | 6 years 8 months 12 days |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Goodwill Business Segments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||||
Goodwill | $ 14,653 | $ 14,544 | $ 14,653 | $ 14,533 |
Acquisitions | 107 | 33 | ||
Reductions in goodwill related to divestitures | (1) | (17) | ||
Other adjustments | 3 | (5) | ||
Credit Card | ||||
Goodwill [Line Items] | ||||
Goodwill | 5,088 | 5,060 | 5,088 | 5,032 |
Acquisitions | 25 | 33 | ||
Reductions in goodwill related to divestitures | 0 | 0 | ||
Other adjustments | 3 | (5) | ||
Consumer Banking | ||||
Goodwill [Line Items] | ||||
Goodwill | 4,645 | 4,600 | 4,645 | 4,600 |
Acquisitions | 46 | 0 | ||
Reductions in goodwill related to divestitures | (1) | 0 | ||
Other adjustments | 0 | 0 | ||
Commercial Banking | ||||
Goodwill [Line Items] | ||||
Goodwill | 4,920 | 4,884 | $ 4,920 | $ 4,901 |
Acquisitions | 36 | 0 | ||
Reductions in goodwill related to divestitures | 0 | (17) | ||
Other adjustments | $ 0 | $ 0 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Actual and Estimated Future Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 60 | $ 112 | $ 174 |
Estimated future amounts for the year ending December 31, | |||
2021 | 20 | ||
2022 | 16 | ||
2023 | 13 | ||
2024 | 10 | ||
2025 | 9 | ||
Thereafter | 14 | ||
Total estimated future amounts | $ 82 |
Premises, Equipment and Lease_2
Premises, Equipment and Leases - Components of Premises and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | $ 8,993 | $ 9,188 |
Less: Accumulated depreciation and amortization | (4,706) | (4,810) |
Total premises and equipment, net | 4,287 | 4,378 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | 366 | 382 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | 3,742 | 3,903 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | 1,973 | 2,218 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | 2,144 | 1,996 |
In progress | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | $ 768 | $ 689 |
Premises, Equipment and Lease_3
Premises, Equipment and Leases - Operating Lease Portfolio (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | $ 1,316 | $ 1,433 |
Lease liabilities | $ 1,688 | $ 1,756 |
Weighted-average remaining lease term | 8 years 8 months 12 days | 8 years 10 months 24 days |
Weighted-average discount rate | 3.10% | 3.30% |
Operating lease cost | $ 315 | $ 316 |
Variable lease cost | 43 | 39 |
Total lease cost | 358 | 355 |
Sublease income | (26) | (26) |
Net lease cost | 332 | 329 |
Cash paid for amounts included in the measurement of lease liabilities | 325 | 328 |
Right-of-use assets obtained in exchange for lease liabilities | $ 180 | $ 112 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets recognized upon adoption of new lease standard | $ 0 | $ 1,601 |
Premises, Equipment and Lease_4
Premises, Equipment and Leases - Maturities of Operating Leases and Reconciliation to Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2021 | $ 296 | |
2022 | 272 | |
2023 | 250 | |
2024 | 216 | |
2025 | 180 | |
Thereafter | 721 | |
Total undiscounted lease payments | 1,935 | |
Less: Imputed interest | (247) | |
Total lease liabilities | $ 1,688 | $ 1,756 |
Premises, Equipment and Lease_5
Premises, Equipment and Leases Premises, Equipment and Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment and Lease Commitments [Abstract] | |||
Depreciation and amortization expense | $ 809 | $ 741 | $ 728 |
Finance lease, right-of-use asset | 69 | 96 | |
Finance lease, liability | $ 75 | $ 103 | |
Finance leases, a weighted-average remaining lease term | 4 years 4 months 24 days | 5 years 10 months 24 days | |
Finance lease expense | $ 24 | $ 27 |
Deposits and Borrowings - Depos
Deposits and Borrowings - Deposits and Short-term Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits: | |||
Non-interest-bearing deposits | $ 31,142 | $ 23,488 | |
Interest-bearing deposits | 274,300 | 239,209 | |
Total deposits | 305,442 | 262,697 | $ 249,764 |
Short-term borrowings | |||
Short-term borrowings | 668 | 7,314 | |
Time deposits, at or above FDIC insurance limit | 4,200 | 6,500 | |
Federal funds purchased and securities loaned or sold under agreements to repurchase | |||
Short-term borrowings | |||
Short-term borrowings | 668 | 314 | |
FHLB advances | |||
Short-term borrowings | |||
Short-term borrowings | $ 0 | $ 7,000 |
Deposits and Borrowings - Long-
Deposits and Borrowings - Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 39,871 | $ 48,383 |
Total short-term borrowings and long-term debt | 40,539 | 55,697 |
EUR denominated unsecured notes | 27,382 | 30,472 |
Euro | ||
Debt Instrument [Line Items] | ||
EUR denominated unsecured notes | $ 1,600 | 1,400 |
Securitized debt obligations | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.87% | |
Carrying value | $ 12,414 | 17,808 |
Total senior and subordinated notes | ||
Debt Instrument [Line Items] | ||
Carrying value | $ 27,382 | 30,472 |
Senior notes | Total unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.08% | |
Carrying value | $ 22,654 | 25,997 |
Senior notes | Fixed unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.24% | |
Carrying value | $ 21,045 | 23,302 |
Senior notes | Floating unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 0.97% | |
Carrying value | $ 1,609 | 2,695 |
Subordinated notes | Fixed unsecured subordinated debt | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.78% | |
Carrying value | $ 4,728 | 4,475 |
Finance lease liabilities | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.78% | |
Carrying value | $ 75 | 103 |
Total other long-term borrowings | ||
Debt Instrument [Line Items] | ||
Carrying value | $ 75 | $ 103 |
Minimum | Securitized debt obligations | ||
Debt Instrument [Line Items] | ||
Stated interest rates | 0.51% | |
Minimum | Senior notes | Fixed unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Stated interest rates | 0.80% | |
Minimum | Senior notes | Floating unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Stated interest rates | 0.64% | |
Minimum | Subordinated notes | Fixed unsecured subordinated debt | ||
Debt Instrument [Line Items] | ||
Stated interest rates | 3.38% | |
Minimum | Finance lease liabilities | ||
Debt Instrument [Line Items] | ||
Stated interest rates | 0.68% | |
Maximum | Securitized debt obligations | ||
Debt Instrument [Line Items] | ||
Stated interest rates | 3.01% | |
Maximum | Senior notes | Fixed unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Stated interest rates | 4.75% | |
Maximum | Senior notes | Floating unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Stated interest rates | 1.36% | |
Maximum | Subordinated notes | Fixed unsecured subordinated debt | ||
Debt Instrument [Line Items] | ||
Stated interest rates | 4.20% | |
Maximum | Finance lease liabilities | ||
Debt Instrument [Line Items] | ||
Stated interest rates | 9.91% |
Deposits and Borrowings - Matur
Deposits and Borrowings - Maturity Profile of Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Time Deposits, Fiscal Year Maturity: | ||
2021 | $ 21,381 | |
2022 | 6,447 | |
2023 | 2,212 | |
2024 | 2,196 | |
2025 | 385 | |
Thereafter | 126 | |
Total | 32,747 | |
Debt Fiscal Year Maturity: | ||
Short-term borrowings | 668 | $ 7,314 |
Total, Fiscal Year Maturity: | ||
2021 | 28,278 | |
2022 | 14,590 | |
2023 | 9,349 | |
2024 | 8,431 | |
2025 | 4,165 | |
Thereafter | 8,473 | |
Total | 73,286 | |
Securitized debt obligations | ||
Debt Fiscal Year Maturity: | ||
2021 | 2,331 | |
2022 | 5,635 | |
2023 | 1,087 | |
2024 | 1,569 | |
2025 | 289 | |
Thereafter | 1,503 | |
Long-term Debt | 12,414 | 17,808 |
Senior and subordinated notes | ||
Debt Fiscal Year Maturity: | ||
2021 | 3,878 | |
2022 | 2,488 | |
2023 | 6,032 | |
2024 | 4,661 | |
2025 | 3,488 | |
Thereafter | 6,835 | |
Long-term Debt | 27,382 | 30,472 |
Other borrowings | ||
Debt Fiscal Year Maturity: | ||
2021 | 20 | |
2022 | 20 | |
2023 | 18 | |
2024 | 5 | |
2025 | 3 | |
Thereafter | 9 | |
Long-term Debt | 75 | |
Federal funds purchased and securities loaned or sold under agreements to repurchase | ||
Debt Fiscal Year Maturity: | ||
Short-term debt, maturities, next 12 months | 668 | |
Short-term borrowings | $ 668 | $ 314 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gain (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 | $ 652 |
Maximum length of time over which forecasted transactions were hedged, years | 6 years |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Derivative Assets and Liabilities at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Notional or contractual amount | $ 232,327 | $ 255,546 |
Derivative assets, gross amount | 3,415 | 1,729 |
Derivative liabilities, gross amount | 1,518 | 1,197 |
Derivative asset, netting adjustments | (1,148) | (633) |
Derivative liability, netting adjustments | (739) | (523) |
Total derivative assets | 2,267 | 1,096 |
Total derivative liabilities | 779 | 674 |
Net valuation allowance on derivative assets and liabilities for non-performance risk | 31 | 12 |
Derivatives designated as accounting hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or contractual amount | 138,724 | 164,821 |
Derivative assets, gross amount | 921 | 332 |
Derivative liabilities, gross amount | 368 | 305 |
Derivatives designated as accounting hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional or contractual amount | 129,499 | 154,487 |
Derivative assets, gross amount | 757 | 332 |
Derivative liabilities, gross amount | 11 | 84 |
Derivatives designated as accounting hedges | Interest rate contracts | Fair value hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or contractual amount | 47,349 | 57,587 |
Derivative assets, gross amount | 9 | 11 |
Derivative liabilities, gross amount | 10 | 55 |
Derivatives designated as accounting hedges | Interest rate contracts | Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or contractual amount | 82,150 | 96,900 |
Derivative assets, gross amount | 748 | 321 |
Derivative liabilities, gross amount | 1 | 29 |
Derivatives designated as accounting hedges | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional or contractual amount | 9,225 | 10,334 |
Derivative assets, gross amount | 164 | 0 |
Derivative liabilities, gross amount | 357 | 221 |
Derivatives designated as accounting hedges | Foreign exchange contracts | Fair value hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or contractual amount | 1,527 | 1,402 |
Derivative assets, gross amount | 164 | 0 |
Derivative liabilities, gross amount | 0 | 6 |
Derivatives designated as accounting hedges | Foreign exchange contracts | Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or contractual amount | 4,582 | 6,103 |
Derivative assets, gross amount | 0 | 0 |
Derivative liabilities, gross amount | 161 | 113 |
Derivatives designated as accounting hedges | Foreign exchange contracts | Net investment hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or contractual amount | 3,116 | 2,829 |
Derivative assets, gross amount | 0 | 0 |
Derivative liabilities, gross amount | 196 | 102 |
Derivatives not designated as accounting hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or contractual amount | 93,603 | 90,725 |
Derivative assets, gross amount | 2,494 | 1,397 |
Derivative liabilities, gross amount | 1,150 | 892 |
Derivatives not designated as accounting hedges | Customer accommodation | ||
Derivatives, Fair Value [Line Items] | ||
Notional or contractual amount | 90,007 | 82,434 |
Derivative assets, gross amount | 2,422 | 1,349 |
Derivative liabilities, gross amount | 1,088 | 853 |
Derivatives not designated as accounting hedges | Interest rate contracts | Customer accommodation | ||
Derivatives, Fair Value [Line Items] | ||
Notional or contractual amount | 68,459 | 62,268 |
Derivative assets, gross amount | 1,429 | 552 |
Derivative liabilities, gross amount | 198 | 117 |
Derivatives not designated as accounting hedges | Interest rate contracts | Other interest rate exposures | ||
Derivatives, Fair Value [Line Items] | ||
Notional or contractual amount | 1,770 | 6,729 |
Derivative assets, gross amount | 71 | 48 |
Derivative liabilities, gross amount | 56 | 30 |
Derivatives not designated as accounting hedges | Foreign exchange contracts | Customer accommodation | ||
Derivatives, Fair Value [Line Items] | ||
Notional or contractual amount | 4,677 | 4,674 |
Derivative assets, gross amount | 58 | 39 |
Derivative liabilities, gross amount | 70 | 42 |
Derivatives not designated as accounting hedges | Commodity contracts | Customer accommodation | ||
Derivatives, Fair Value [Line Items] | ||
Notional or contractual amount | 16,871 | 15,492 |
Derivative assets, gross amount | 935 | 758 |
Derivative liabilities, gross amount | 820 | 694 |
Derivatives not designated as accounting hedges | Other contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional or contractual amount | 1,826 | 1,562 |
Derivative assets, gross amount | 1 | 0 |
Derivative liabilities, gross amount | $ 6 | $ 9 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Hedged Items in Fair Value Hedging Relationship (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Hedged Items In Fair Value Hedging Relationship [Line Items] | ||
Hedged Assets, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | $ 200 | |
Amortized cost of closed prepayment assets | $ 5,900 | |
Amortized cost of closed prepayable assets, designated hedged items | 3,100 | |
Hedged assets cumulative basis adjustment | 75 | |
Available-for-sale securities | ||
Hedged Items In Fair Value Hedging Relationship [Line Items] | ||
Carrying Amount of Assets | 9,797 | 10,825 |
Hedged Assets, Fair Value Hedge, Cumulative Increase (Decrease) | 590 | 300 |
Hedged Assets, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 200 | 52 |
Interest-bearing deposits | ||
Hedged Items In Fair Value Hedging Relationship [Line Items] | ||
Carrying Amount Of Liabilities | (11,312) | (14,310) |
Hedged Liabilities, Fair Value Hedge, Cumulative Increase (Decrease) | (213) | (12) |
Hedged Liabilities, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 0 | 0 |
Securitized debt obligations | ||
Hedged Items In Fair Value Hedging Relationship [Line Items] | ||
Carrying Amount Of Liabilities | (7,609) | (9,403) |
Hedged Liabilities, Fair Value Hedge, Cumulative Increase (Decrease) | (171) | 44 |
Hedged Liabilities, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 20 | 64 |
Senior and subordinated notes | ||
Hedged Items In Fair Value Hedging Relationship [Line Items] | ||
Carrying Amount Of Liabilities | (21,927) | (27,777) |
Hedged Liabilities, Fair Value Hedge, Cumulative Increase (Decrease) | (1,282) | (458) |
Hedged Liabilities, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | $ (666) | $ 324 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Offsetting Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative assets | ||
Derivative assets, gross amount | $ 3,415 | $ 1,729 |
Derivative assets, offsetting financial instruments | (383) | (347) |
Derivative assets, offsetting cash collateral | (765) | (286) |
Total derivative assets | 2,267 | 1,096 |
Derivative assets, securities not netted | 0 | 0 |
Net Exposure | 2,267 | 1,096 |
Derivative, collateral, obligation to return cash | 862 | 347 |
Derivative, collateral, obligation to return securities | 1 | 1 |
Derivative, collateral, right to reclaim cash | $ 1,500 | $ 954 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Offsetting Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative liabilities | ||
Derivative liabilities, gross amount | $ 1,518 | $ 1,197 |
Derivative liabilities, offsetting financial instruments | (383) | (347) |
Derivative liabilities, offsetting cash collateral | (356) | (176) |
Total derivative liabilities | 779 | 674 |
Derivative liabilities, securities collateral not netted | 0 | 0 |
Net exposure | 779 | 674 |
Repurchase agreements | ||
Gross amounts | 668 | 314 |
Repurchase agreements, securities sold, offset | 0 | 0 |
Repurchase agreements, cash collateral pledged, offset | 0 | 0 |
Net amounts as recognized | 668 | 314 |
Repurchase agreements, securities collateral not netted | (668) | (314) |
Net exposure | 0 | 0 |
Derivative, collateral, obligation to return cash | 862 | 347 |
Derivative, collateral, obligation to return securities | 1 | 1 |
Derivative, collateral, right to reclaim cash | 1,500 | 954 |
Securities sold under repurchase agreements, fair value of collateral | $ 682 | $ 320 |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Effects of Fair Value and Cash Flow Hedge Accounting (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest and dividend income, securities | $ 1,877 | $ 2,411 | $ 2,211 |
Interest and fee income, loans | 24,074 | 25,862 | 24,728 |
Interest and dividend income, other | 82 | 240 | 237 |
Deposits | (2,165) | (3,420) | (2,598) |
Securitized debt obligations | (232) | (523) | (496) |
Senior and subordinated notes | (679) | (1,159) | (1,125) |
Non-interest income | 1,325 | 718 | 1,002 |
Amortization of basis adjustment | 12 | 171 | 75 |
Non interest income - Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized (losses) gains on foreign exchange contracts reclassified from AOCI | (57) | (341) | 191 |
Fair value hedges | Interest income - Investment securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income (expense) recognized on fair value hedges | (92) | (12) | (22) |
Fair value hedges | Interest income - Loans | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income (expense) recognized on fair value hedges | 0 | 0 | 0 |
Fair value hedges | Interest income - Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income (expense) recognized on fair value hedges | 0 | 0 | 0 |
Fair value hedges | Interest expense - Deposits | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income (expense) recognized on fair value hedges | 109 | (103) | (84) |
Fair value hedges | Interest expense - Securitized Debt Obligation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income (expense) recognized on fair value hedges | 89 | (92) | (76) |
Fair value hedges | Interest expense - Senior and Subordinated Debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income (expense) recognized on fair value hedges | 268 | (105) | (79) |
Fair value hedges | Non interest income - Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income (expense) recognized on fair value hedges | 1 | 0 | 0 |
Fair value hedges | Interest rate contracts | Interest income - Investment securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest recognized on derivatives | (76) | (12) | (23) |
Gains (losses) recognized on derivatives | (306) | (278) | 34 |
Gains (losses) recognized on hedged items | 290 | 278 | (33) |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | |
Fair value hedges | Interest rate contracts | Interest income - Loans | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest recognized on derivatives | 0 | 0 | 0 |
Gains (losses) recognized on derivatives | 0 | 0 | 0 |
Gains (losses) recognized on hedged items | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | |
Fair value hedges | Interest rate contracts | Interest income - Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest recognized on derivatives | 0 | 0 | 0 |
Gains (losses) recognized on derivatives | 0 | 0 | 0 |
Gains (losses) recognized on hedged items | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | |
Fair value hedges | Interest rate contracts | Interest expense - Deposits | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest recognized on derivatives | 108 | (108) | (76) |
Gains (losses) recognized on derivatives | 204 | 263 | (60) |
Gains (losses) recognized on hedged items | (203) | (258) | 52 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | |
Fair value hedges | Interest rate contracts | Interest expense - Securitized Debt Obligation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest recognized on derivatives | 125 | (14) | (53) |
Gains (losses) recognized on derivatives | 176 | 45 | (61) |
Gains (losses) recognized on hedged items | (212) | (123) | 38 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | |
Fair value hedges | Interest rate contracts | Interest expense - Senior and Subordinated Debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest recognized on derivatives | 225 | (6) | 2 |
Gains (losses) recognized on derivatives | 950 | 704 | (212) |
Gains (losses) recognized on hedged items | (904) | (801) | 131 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | (3) | (2) | |
Fair value hedges | Interest rate contracts | Non interest income - Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest recognized on derivatives | 0 | 0 | 0 |
Gains (losses) recognized on derivatives | 126 | (9) | 0 |
Gains (losses) recognized on hedged items | (125) | 9 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | |
Cash flow hedges | Interest income - Investment securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income recognized on cash flow hedges | 25 | (8) | (9) |
Cash flow hedges | Interest income - Loans | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income recognized on cash flow hedges | 541 | (163) | (82) |
Cash flow hedges | Interest income - Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income recognized on cash flow hedges | 10 | 44 | 47 |
Cash flow hedges | Interest expense - Deposits | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income recognized on cash flow hedges | 0 | 0 | 0 |
Cash flow hedges | Interest expense - Securitized Debt Obligation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income recognized on cash flow hedges | 0 | 0 | 0 |
Cash flow hedges | Interest expense - Senior and Subordinated Debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income recognized on cash flow hedges | 0 | 0 | 0 |
Cash flow hedges | Non interest income - Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income recognized on cash flow hedges | (1) | (1) | (2) |
Cash flow hedges | Interest rate contracts | Interest income - Investment securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net of tax | 25 | (8) | (9) |
Cash flow hedges | Interest rate contracts | Interest income - Loans | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net of tax | 541 | (163) | (82) |
Cash flow hedges | Interest rate contracts | Interest income - Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net of tax | 0 | 0 | 0 |
Cash flow hedges | Interest rate contracts | Interest expense - Deposits | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net of tax | 0 | 0 | 0 |
Cash flow hedges | Interest rate contracts | Interest expense - Securitized Debt Obligation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net of tax | 0 | 0 | 0 |
Cash flow hedges | Interest rate contracts | Interest expense - Senior and Subordinated Debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net of tax | 0 | 0 | 0 |
Cash flow hedges | Interest rate contracts | Non interest income - Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net of tax | 0 | 0 | 0 |
Cash flow hedges | Foreign exchange contracts | Interest income - Investment securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net of tax | 0 | 0 | 0 |
Cash flow hedges | Foreign exchange contracts | Interest income - Loans | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net of tax | 0 | 0 | 0 |
Cash flow hedges | Foreign exchange contracts | Interest income - Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net of tax | 10 | 44 | 47 |
Cash flow hedges | Foreign exchange contracts | Interest expense - Deposits | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net of tax | 0 | 0 | 0 |
Cash flow hedges | Foreign exchange contracts | Interest expense - Securitized Debt Obligation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net of tax | 0 | 0 | 0 |
Cash flow hedges | Foreign exchange contracts | Interest expense - Senior and Subordinated Debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net of tax | 0 | 0 | 0 |
Cash flow hedges | Foreign exchange contracts | Non interest income - Other | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net of tax | $ (1) | $ (1) | $ (2) |
Derivative Instruments and He_9
Derivative Instruments and Hedging Activities - Gains Losses on Freestanding Derivatives (Details) - Other non-interest income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | $ 43 | $ 52 | $ 60 |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | 55 | 78 | 48 |
Interest rate contracts | Customer accommodation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | 15 | 48 | 25 |
Interest rate contracts | Other interest rate exposures | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | (8) | (16) | 33 |
Commodity contracts | Customer accommodation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | 32 | 17 | 16 |
Foreign exchange contracts | Customer accommodation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | 8 | 13 | 7 |
Other contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on derivatives not designated as accounting hedges | $ (4) | $ (10) | $ (21) |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock Outstanding (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | |
Class of Stock [Line Items] | ||
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 4,847 | $ 4,853 |
Depository Share, Percent Interest in Preferred Stock | 0.025 | |
Series B Preferred Stock | ||
Class of Stock [Line Items] | ||
Per Annum Dividend Rate | 6.00% | |
Liquidation Preference per Share | $ / shares | $ 1,000 | |
Total Shares Outstanding as of December 31, 2020 | shares | 0 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 0 | 853 |
Series E Preferred Stock | ||
Class of Stock [Line Items] | ||
Per Annum Dividend Rate | 5.55% | |
Liquidation Preference per Share | $ / shares | $ 1,000 | |
Total Shares Outstanding as of December 31, 2020 | shares | 1,000,000 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 988 | 988 |
Preferred Stock Dividend Rate, Variable | 3.80% | |
Preferred Stock, Dividend Payment Rate, Variable | LIBOR + 380 bps | |
Series F Preferred Stock | ||
Class of Stock [Line Items] | ||
Per Annum Dividend Rate | 6.20% | |
Liquidation Preference per Share | $ / shares | $ 1,000 | |
Total Shares Outstanding as of December 31, 2020 | shares | 0 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 0 | 484 |
Series G Preferred Stock | ||
Class of Stock [Line Items] | ||
Per Annum Dividend Rate | 5.20% | |
Liquidation Preference per Share | $ / shares | $ 1,000 | |
Total Shares Outstanding as of December 31, 2020 | shares | 600,000 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 583 | 583 |
Series H Preferred Stock | ||
Class of Stock [Line Items] | ||
Per Annum Dividend Rate | 6.00% | |
Liquidation Preference per Share | $ / shares | $ 1,000 | |
Total Shares Outstanding as of December 31, 2020 | shares | 500,000 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 483 | 483 |
Series I Preferred Stock | ||
Class of Stock [Line Items] | ||
Per Annum Dividend Rate | 5.00% | |
Liquidation Preference per Share | $ / shares | $ 1,000 | |
Total Shares Outstanding as of December 31, 2020 | shares | 1,500,000 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 1,462 | 1,462 |
Series J Preferred Stock | ||
Class of Stock [Line Items] | ||
Per Annum Dividend Rate | 4.80% | |
Liquidation Preference per Share | $ / shares | $ 1,000 | |
Total Shares Outstanding as of December 31, 2020 | shares | 1,250,000 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 1,209 | 0 |
Series K Preferred Stock | ||
Class of Stock [Line Items] | ||
Per Annum Dividend Rate | 4.625% | |
Liquidation Preference per Share | $ / shares | $ 1,000 | |
Total Shares Outstanding as of December 31, 2020 | shares | 125,000 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $ 122 | $ 0 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | $ 1,156 | |||
Transfer of securities held to maturity to available for sale | $ 888 | |||
Other comprehensive income (loss), net of tax | 2,346 | 1,531 | $ (136) | |
AOCI ending balance | 3,494 | 1,156 | ||
Accounting Standards Update 2017-12 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Transfer of securities held to maturity to available for sale | $ 82 | |||
Held to maturity securities | 9,000 | |||
Accumulated Net Unrealized Investment Gain (Loss) | Accounting Standards Update 2017-12 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Transfer of securities held to maturity to available for sale | 82 | |||
Transfers of securities held to maturity, pre-tax | 107 | |||
Accumulated Net Unrealized Investment Gain (Loss) | Securities Available for Sale | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | 935 | (439) | 17 | |
Transfer of securities held to maturity to available for sale | 724 | |||
Other comprehensive income (loss) before reclassifications | 1,278 | 670 | (293) | |
Amounts reclassified from AOCI into earnings | (19) | (20) | 159 | |
Other comprehensive income (loss), net of tax | 1,259 | 650 | (459) | |
AOCI ending balance | 2,186 | 935 | (439) | |
Accumulated Net Unrealized Investment Gain (Loss) | Securities Available for Sale | Accounting Standards Update 2017-12 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Transfer of securities held to maturity to available for sale | (325) | |||
Accumulated Net Unrealized Investment Gain (Loss) | Securities Held to Maturity | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | 0 | (190) | (524) | |
Transfer of securities held to maturity to available for sale | 164 | |||
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | |
Amounts reclassified from AOCI into earnings | 0 | 26 | 40 | |
Other comprehensive income (loss), net of tax | 0 | 26 | 447 | |
AOCI ending balance | 0 | 0 | (190) | |
Accumulated Net Unrealized Investment Gain (Loss) | Securities Held to Maturity | Accounting Standards Update 2017-12 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Transfer of securities held to maturity to available for sale | 407 | |||
Hedging Relationships | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | 354 | (418) | (281) | |
Transfer of securities held to maturity to available for sale | 0 | |||
Other comprehensive income (loss) before reclassifications | 1,401 | 414 | 38 | |
Amounts reclassified from AOCI into earnings | (393) | 358 | (112) | |
Other comprehensive income (loss), net of tax | 1,008 | 772 | (74) | |
AOCI ending balance | 1,362 | 354 | (418) | |
Hedging Relationships | Accounting Standards Update 2017-12 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Transfer of securities held to maturity to available for sale | 0 | |||
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | (107) | (177) | (138) | |
Transfer of securities held to maturity to available for sale | 0 | |||
Other comprehensive income (loss) before reclassifications | 76 | 70 | (39) | |
Amounts reclassified from AOCI into earnings | 0 | 0 | 0 | |
Other comprehensive income (loss), net of tax | 76 | 70 | (39) | |
AOCI ending balance | (31) | (107) | (177) | |
Foreign Currency Translation Adjustments | Accounting Standards Update 2017-12 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Transfer of securities held to maturity to available for sale | 0 | |||
Other | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | (26) | (39) | 0 | |
Transfer of securities held to maturity to available for sale | 0 | |||
Other comprehensive income (loss) before reclassifications | 5 | 17 | (8) | |
Amounts reclassified from AOCI into earnings | (2) | (4) | (3) | |
Other comprehensive income (loss), net of tax | 3 | 13 | (11) | |
AOCI ending balance | (23) | (26) | (39) | |
Other | Accounting Standards Update 2017-12 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Transfer of securities held to maturity to available for sale | $ 0 | |||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | 1,156 | (1,263) | (926) | |
Transfer of securities held to maturity to available for sale | 888 | |||
Other comprehensive income (loss) before reclassifications | 2,760 | 1,171 | (302) | |
Amounts reclassified from AOCI into earnings | (414) | 360 | 84 | |
Other comprehensive income (loss), net of tax | 2,346 | 1,531 | (136) | |
AOCI ending balance | 3,494 | 1,156 | (1,263) | |
Net investment hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Other comprehensive gain (loss) | (65) | (49) | 150 | |
Cumulative effects from adoption of new accounting standards | Accumulated Net Unrealized Investment Gain (Loss) | Securities Available for Sale | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | (8) | 3 | ||
AOCI ending balance | (8) | |||
Cumulative effects from adoption of new accounting standards | Accumulated Net Unrealized Investment Gain (Loss) | Securities Held to Maturity | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | 0 | (113) | ||
AOCI ending balance | 0 | |||
Cumulative effects from adoption of new accounting standards | Hedging Relationships | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | 0 | (63) | ||
AOCI ending balance | 0 | |||
Cumulative effects from adoption of new accounting standards | Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | 0 | 0 | ||
AOCI ending balance | 0 | |||
Cumulative effects from adoption of new accounting standards | Other | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | 0 | (28) | ||
AOCI ending balance | 0 | |||
Cumulative effects from adoption of new accounting standards | Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
AOCI beginning balance | $ (8) | $ (201) | ||
AOCI ending balance | $ (8) |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassifications from AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest income | $ 22,913 | $ 23,340 | $ 22,875 |
Interest expense | 3,120 | 5,173 | 4,301 |
Non-interest income | 1,325 | 718 | 1,002 |
Income from continuing operations before income taxes | 3,203 | 6,874 | 7,318 |
Income tax provision | 486 | 1,341 | 1,293 |
Net income | 2,714 | 5,546 | 6,015 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income | 414 | (360) | (84) |
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 | 25 | 26 | (209) |
Income tax provision | 6 | 6 | (50) |
Net income | 19 | 20 | (159) |
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 | 0 | (35) | (53) |
Income tax provision | 0 | (9) | (13) |
Net income | 0 | (26) | (40) |
Hedging Relationships | Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest rate contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest income | 566 | (171) | (91) |
Hedging Relationships | Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign exchange contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest income | 10 | 44 | 47 |
Interest expense | (3) | (2) | 0 |
Non-interest income | (57) | (341) | 191 |
Income from continuing operations before income taxes | 516 | (470) | 147 |
Income tax provision | 123 | (112) | 35 |
Net income | 393 | (358) | 112 |
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 | 2 | 5 | 4 |
Income tax provision | 0 | 1 | 1 |
Net income | $ 2 | $ 4 | $ 3 |
Stockholders' Equity - Other Co
Stockholders' Equity - Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Before Tax | |||
Net unrealized gains (losses) on securities available for sale | $ 1,659 | $ 855 | $ (605) |
Net unrealized gains (losses) on hedging relationships | 1,329 | 1,016 | (98) |
Foreign currency translation adjustments | 56 | 54 | 9 |
Net changes in securities held to maturity | 0 | 36 | 588 |
Other | 4 | 17 | (15) |
Other comprehensive income (loss), before tax | 3,048 | 1,978 | (121) |
Provision (Benefit) | |||
Net unrealized gains (losses) on securities available for sale | 400 | 205 | (146) |
Net unrealized gains (losses) on hedging relationships | 321 | 244 | (24) |
Foreign currency translation adjustments | (20) | (16) | 48 |
Net changes in securities held to maturity | 0 | 10 | 141 |
Other | 1 | 4 | (4) |
Other comprehensive income (loss), provision (benefit) | 702 | 447 | 15 |
After Tax | |||
Net unrealized gains (losses) on securities available for sale | 1,259 | 650 | (459) |
Net unrealized gains (losses) on hedging relationships | 1,008 | 772 | (74) |
Foreign currency translation adjustments | 76 | 70 | (39) |
Net changes in securities held to maturity | 0 | 26 | 447 |
Other | 3 | 13 | (11) |
Other comprehensive income (loss), net of tax | $ 2,346 | $ 1,531 | $ (136) |
Regulatory and Capital Adequa_3
Regulatory and Capital Adequacy - Capital Ratios Under Basel III (Details) $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Common equity Tier 1 capital: | ||
Common equity Tier 1 capital | $ 40,736 | $ 38,162 |
Common equity Tier 1 capital, capital ratio | 0.137 | 0.122 |
Common equity Tier 1 capital, minimum capital adequacy | 0.045 | 0.045 |
Tier 1 risk-based capital: | ||
Tier 1 capital | $ 45,583 | $ 43,015 |
Tier 1 capital, capital ratio | 0.153 | 0.137 |
Tier 1 capital, minimum capital adequacy | 0.060 | 0.060 |
Tier 1 capital, well-capitalized | 0.060 | 0.060 |
Total risk-based capital: | ||
Total capital | $ 52,788 | $ 50,348 |
Total capital, capital ratio | 0.177 | 0.161 |
Total capital, minimum capital adequacy | 0.080 | 0.080 |
Total capital, well-capitalized | 0.100 | 0.100 |
Tier 1 leverage capital: | ||
Tier 1 leverage capital | $ 45,583 | $ 43,015 |
Tier 1 leverage, capital ratio | 0.112 | 0.117 |
Tier 1 leverage, minimum capital adequacy | 0.040 | 0.040 |
Supplementary leverage: | ||
Tier one capital under BaselIII standardized approach | $ 45,583 | $ 43,015 |
Basel III Supplementary Leverage Ratio | 0.107 | 0.099 |
Supplementary leverage | 0.030 | 0.030 |
Capital One Bank (USA), N.A. | ||
Common equity Tier 1 capital: | ||
Common equity Tier 1 capital | $ 19,924 | $ 17,883 |
Common equity Tier 1 capital, capital ratio | 0.215 | 0.161 |
Common equity Tier 1 capital, minimum capital adequacy | 0.045 | 0.045 |
Common equity Tie 1 capital, well capitalized | 0.065 | 0.065 |
Tier 1 risk-based capital: | ||
Tier 1 capital | $ 19,924 | $ 17,883 |
Tier 1 capital, capital ratio | 0.215 | 0.161 |
Tier 1 capital, minimum capital adequacy | 0.060 | 0.060 |
Tier 1 capital, well-capitalized | 0.080 | 0.080 |
Total risk-based capital: | ||
Total capital | $ 21,708 | $ 20,109 |
Total capital, capital ratio | 0.234 | 0.181 |
Total capital, minimum capital adequacy | 0.080 | 0.080 |
Total capital, well-capitalized | 0.100 | 0.100 |
Tier 1 leverage capital: | ||
Tier 1 leverage capital | $ 19,924 | $ 17,883 |
Tier 1 leverage, capital ratio | 0.183 | 0.148 |
Tier 1 leverage, minimum capital adequacy | 0.040 | 0.040 |
Tier 1 leverage, well-capitalized | 0.050 | 0.050 |
Supplementary leverage: | ||
Tier one capital under BaselIII standardized approach | $ 19,924 | $ 17,883 |
Basel III Supplementary Leverage Ratio | 0.147 | 0.121 |
Supplementary leverage | 0.030 | 0.030 |
Capital One, N.A. | ||
Common equity Tier 1 capital: | ||
Common equity Tier 1 capital | $ 26,671 | $ 28,445 |
Common equity Tier 1 capital, capital ratio | 0.124 | 0.134 |
Common equity Tier 1 capital, minimum capital adequacy | 0.045 | 0.045 |
Common equity Tie 1 capital, well capitalized | 0.065 | 0.065 |
Tier 1 risk-based capital: | ||
Tier 1 capital | $ 26,671 | $ 28,445 |
Tier 1 capital, capital ratio | 0.124 | 0.134 |
Tier 1 capital, minimum capital adequacy | 0.060 | 0.060 |
Tier 1 capital, well-capitalized | 0.080 | 0.080 |
Total risk-based capital: | ||
Total capital | $ 29,369 | $ 30,852 |
Total capital, capital ratio | 0.137 | 0.145 |
Total capital, minimum capital adequacy | 0.080 | 0.080 |
Total capital, well-capitalized | 0.100 | 0.100 |
Tier 1 leverage capital: | ||
Tier 1 leverage capital | $ 26,671 | $ 28,445 |
Tier 1 leverage, capital ratio | 0.076 | 0.092 |
Tier 1 leverage, minimum capital adequacy | 0.040 | 0.040 |
Tier 1 leverage, well-capitalized | 0.050 | 0.050 |
Supplementary leverage: | ||
Tier one capital under BaselIII standardized approach | $ 26,671 | $ 28,445 |
Basel III Supplementary Leverage Ratio | 0.069 | 0.082 |
Supplementary leverage | 0.030 | 0.030 |
Regulatory and Capital Adequa_4
Regulatory and Capital Adequacy - Additional Information (Details) - USD ($) $ in Billions | Dec. 31, 2020 | Dec. 31, 2019 |
Cash Reserves, Federal Reserve Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Reserve requirement | $ 1.7 | |
Capital One Bank (USA), N.A. | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Funds available for dividend payments | $ 4 | |
Capital One, N.A. | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Funds available for dividend payments | $ 1.8 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Award | |||
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) | 523 | ||
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) | 6 | 69 | 56 |
Maximum exercise price range | $ 86.34 | $ 86.34 | $ 86.34 |
Minimum exercise price range | $ 63.73 | $ 86.34 | $ 86.34 |
Earnings Per Common Share - Com
Earnings Per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Income from continuing operations, net of tax | $ 2,717 | $ 5,533 | $ 6,025 |
Income (loss) from discontinued operations, net of tax | (3) | 13 | (10) |
Net income | 2,714 | 5,546 | 6,015 |
Dividends and undistributed earnings allocated to participating securities | (20) | (41) | (40) |
Preferred stock dividends | (280) | (282) | (265) |
Issuance cost for redeemed preferred stock | (39) | (31) | 0 |
Net income available to common stockholders | $ 2,375 | $ 5,192 | $ 5,710 |
Total weighted-average basic common shares outstanding | 457.8 | 467.6 | 479.9 |
Effect of dilutive securities: | |||
Stock options | 0.6 | 1.3 | 1.6 |
Other contingently issuable shares | 0.5 | 1 | 1.1 |
Warrants | 0 | 0 | 0.5 |
Total effect of dilutive securities | 1.1 | 2.3 | 3.2 |
Total weighted-average diluted common shares outstanding | 458.9 | 469.9 | 483.1 |
Basic earnings per common share: | |||
Net income from continuing operations (in dollars per share) | $ 5.20 | $ 11.07 | $ 11.92 |
Income (loss) from discontinued operations | (0.01) | 0.03 | (0.02) |
Net income per basic common share (in dollars per share) | 5.19 | 11.10 | 11.90 |
Diluted earnings per common share: | |||
Net income from continuing operations (in dollars per share) | 5.19 | 11.02 | 11.84 |
Income (loss) from discontinued operations | (0.01) | 0.03 | (0.02) |
Net income per diluted common share (in dollars per share) | $ 5.18 | $ 11.05 | $ 11.82 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Summary of Restricted Stock Units and Performance Share Units (Details) - Amended and Restated 2004 Stock Incentive Plan - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Units | |||
Units | |||
Unvested as of beginning of the period (in shares) | 3,670 | ||
Granted (in shares) | 1,800 | ||
Vested (in shares) | (1,472) | ||
Forfeited (in shares) | (165) | ||
Unvested as of end of period (in shares) | 3,833 | 3,670 | |
Weighted-Average Grant Date Fair Value per Unit | |||
Unvested as of beginning of the period (in dollars per share) | $ 84.74 | ||
Granted (in dollars per share) | 92.04 | $ 83.29 | $ 100.73 |
Vested (in dollars per share) | 89.39 | ||
Forfeited (in dollars per share) | 90.98 | ||
Unvested as of end of the period (in dollars per share) | $ 86.14 | $ 84.74 | |
Performance Share Units | |||
Units | |||
Unvested as of beginning of the period (in shares) | 1,775 | ||
Granted (in shares) | 988 | ||
Vested (in shares) | (855) | ||
Forfeited (in shares) | (147) | ||
Unvested as of end of period (in shares) | 1,761 | 1,775 | |
Weighted-Average Grant Date Fair Value per Unit | |||
Unvested as of beginning of the period (in dollars per share) | $ 89.95 | ||
Granted (in dollars per share) | 100.04 | $ 78.18 | $ 100.65 |
Vested (in dollars per share) | 88.19 | ||
Forfeited (in dollars per share) | 93.76 | ||
Unvested as of end of the period (in dollars per share) | $ 96.15 | $ 89.95 |
Stock-Based Compensation Plan_3
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, 2020USD ($)$ / sharesshares | |
Shares Subject to Options | |
Outstanding as of beginning of the period (in shares) | shares | 3,185 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (1,392) |
Forfeited (in shares) | shares | 0 |
Expired (in shares) | shares | 0 |
Outstanding as of end of the period (in shares) | shares | 1,793 |
Weighted- Average Exercise Price | |
Outstanding as of beginning of the period (in dollars per share) | $ / shares | $ 55.54 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 44.76 |
Forfeited (in dollars per share) | $ / shares | 0 |
Expired (in dollars per share) | $ / shares | 0 |
Outstanding as of end of the period (in dollars per share) | $ / shares | $ 63.91 |
Weighted-Average Remaining Contractual Term, Outstanding at end of period, years | 3 years 3 months 7 days |
Aggregate Intrinsic Value, Outstanding, at end of period | $ | $ 63 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Additional Information (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)plan$ / sharesshares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / 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 | ||
Compensation expense from award | $ 203 | $ 239 | $ 170 |
Recognized tax benefit from stock-based compensation arrangements | $ 43 | 50 | 34 |
Common Stock, Capital Shares Reserved for Future Issuance | shares | 7 | ||
Amended and Restated 2004 Stock Incentive Plan | Cash-Settled Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash payments to settle awards | $ 12 | 15 | 39 |
Amended and Restated 2004 Stock Incentive Plan | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | ||
Total fair value of awards vested | $ 140 | 122 | 139 |
Unrecognized compensation expense related to unvested awards, awards other than options | $ 166 | ||
Weighted-average period of recognition of unrecognized compensation costs (Years) | 1 year 9 months 18 days | ||
Amended and Restated 2004 Stock Incentive Plan | Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | ||
Total fair value of awards vested | $ 82 | $ 82 | $ 92 |
Unrecognized compensation expense related to unvested awards, awards other than options | $ 34 | ||
Weighted-average period of recognition of unrecognized compensation costs (Years) | 1 year | ||
Amended and Restated 2004 Stock Incentive Plan | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | ||
Maximum contractual term (in years) | 10 years | ||
Weighted-average fair value of options granted (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 0 |
Intrinsic value of stock options exercised | $ 65 | $ 10 | $ 94 |
Associate Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense from award | $ 30 | $ 25 | $ 23 |
Minimum | Amended and Restated 2004 Stock Incentive Plan | Performance Share Units | |||
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 Share Units | |||
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 Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)age | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, cost | $ | $ 350 | $ 316 | $ 291 |
Associate Savings Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, age eligible to participate | age | 18 |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Benefit Obligation and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in plan assets: | ||
Fair value of plan assets as of January 1, | $ 260 | |
Fair value of plan assets as of December 31, | 280 | $ 260 |
Defined Pension Benefits | ||
Change in benefit obligation: | ||
Accumulated benefit obligation as of January 1, | 165 | 157 |
Service cost | 1 | 1 |
Interest cost | 5 | 6 |
Benefits paid | (11) | (13) |
Actuarial loss (gain) | 18 | 14 |
Accumulated benefit obligation as of December 31, | 178 | 165 |
Change in plan assets: | ||
Fair value of plan assets as of January 1, | 254 | 218 |
Actual return on plan assets | 30 | 48 |
Employer contributions | 1 | 1 |
Benefits paid | (11) | (13) |
Fair value of plan assets as of December 31, | 274 | 254 |
Over (under) funded status as of December 31, | 96 | 89 |
Other Postretirement Benefits | ||
Change in benefit obligation: | ||
Accumulated benefit obligation as of January 1, | 27 | 29 |
Service cost | 0 | 0 |
Interest cost | 1 | 1 |
Benefits paid | (2) | (2) |
Actuarial loss (gain) | (5) | (1) |
Accumulated benefit obligation as of December 31, | 21 | 27 |
Change in plan assets: | ||
Fair value of plan assets as of January 1, | 6 | 6 |
Actual return on plan assets | 1 | 1 |
Employer contributions | 1 | 1 |
Benefits paid | (2) | (2) |
Fair value of plan assets as of December 31, | 6 | 6 |
Over (under) funded status as of December 31, | $ (15) | $ (21) |
Employee Benefit Plans - Funded
Employee Benefit Plans - Funded Status Recognized on Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | $ 108 | $ 100 |
Other liabilities | (12) | (11) |
Net amount recognized as of December 31, | 96 | 89 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 0 | 0 |
Other liabilities | (15) | (21) |
Net amount recognized as of December 31, | $ (15) | $ (21) |
Employee Benefit Plans - Defi_2
Employee Benefit Plans - Defined Benefit Plan and Other Postretirement Benefit Plans Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit gain | $ 8 | $ 10 | $ 12 |
Other comprehensive income (loss), before tax | 4 | 18 | (17) |
Plan assets | 280 | 260 | |
Defined Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
AOCI not yet recognized | (40) | (41) | |
Plan assets | 274 | 254 | 218 |
Expected benefits to be paid in the next ten years | 110 | ||
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
AOCI not yet recognized | 6 | 4 | |
Plan assets | 6 | $ 6 | $ 6 |
Expected benefits to be paid in the next ten years | $ 14 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Provision for Income Taxes Attributable to Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current income tax provision: | |||
Federal taxes | $ 1,676 | $ 1,207 | $ 210 |
State taxes | 370 | 301 | 234 |
International taxes | 67 | 129 | 135 |
Total current provision | 2,113 | 1,637 | 579 |
Deferred income tax provision (benefit): | |||
Federal taxes | (1,357) | (222) | 620 |
State taxes | (266) | (45) | 115 |
International taxes | (4) | (29) | (21) |
Total deferred provision (benefit) | (1,627) | (296) | 714 |
Total income tax provision | $ 486 | $ 1,341 | $ 1,293 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Income tax at U.S. federal statutory tax rate | 21.00% | 21.00% | 21.00% |
State taxes, net of federal benefit | 3.50% | 3.10% | 3.20% |
Non-deductible expenses | 3.20% | 1.60% | 2.20% |
Affordable housing, new markets and other tax credits | (11.40%) | (5.20%) | (4.00%) |
Tax-exempt interest and other nontaxable income | (1.70%) | (0.80%) | (0.70%) |
IRS method changes | 0.00% | 0.00% | (3.90%) |
Changes in valuation allowance | 2.30% | (0.30%) | 0.30% |
Other, net | (1.70%) | 0.10% | (0.40%) |
Effective income tax rate | 15.20% | 19.50% | 17.70% |
Income Taxes - Significant Co_2
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for credit losses | $ 3,649 | $ 1,729 |
Rewards programs | 711 | 579 |
Lease liabilities | 396 | 407 |
Net operating loss and tax credit carryforwards | 314 | 284 |
Compensation and employee benefits | 306 | 301 |
Partnership investments | 237 | 202 |
Unearned income | 117 | 95 |
Goodwill and intangibles | 116 | 161 |
Fixed assets and leases | 42 | 0 |
Other assets | 143 | 142 |
Subtotal | 6,031 | 3,900 |
Valuation allowance | (296) | (223) |
Total deferred tax assets | 5,735 | 3,677 |
Deferred tax liabilities: | ||
Security and loan valuations | 805 | 234 |
Original issue discount | 481 | 600 |
Net unrealized gains on derivatives | 387 | 93 |
Right-of-use assets | 342 | 393 |
Partnership investments | 142 | 147 |
Mortgage servicing rights | 73 | 55 |
Loan fees and expenses | 36 | 100 |
Fixed assets and leases | 0 | 189 |
Other liabilities | 143 | 146 |
Total deferred tax liabilities | 2,409 | 1,957 |
Net deferred tax assets | $ 3,326 | $ 1,720 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Change in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gross Unrecognized Tax Benefits | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 431 | $ 440 | $ 86 |
Additions for tax positions related to the current year | 33 | 23 | 28 |
Additions for tax positions related to prior years | 3 | 12 | 402 |
Reductions for tax positions related to prior years due to IRS and other settlements | (16) | (44) | (76) |
Ending balance | 451 | 431 | 440 |
Portion of balance at December 31, that, if recognized, would impact the effective income tax rate | 153 | ||
Accrued Interest and Penalties | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | 31 | 35 | 29 |
Additions for tax positions related to the current year | 0 | 17 | 0 |
Additions for tax positions related to prior years | 21 | 4 | 25 |
Reductions for tax positions related to prior years due to IRS and other settlements | (6) | (25) | (19) |
Ending balance | 46 | 31 | 35 |
Portion of balance at December 31, that, if recognized, would impact the effective income tax rate | 35 | ||
Gross Tax, Interest and Penalties | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | 462 | 475 | 115 |
Additions for tax positions related to the current year | 33 | 40 | 28 |
Additions for tax positions related to prior years | 24 | 16 | 427 |
Reductions for tax positions related to prior years due to IRS and other settlements | (22) | (69) | (95) |
Ending balance | 497 | $ 462 | $ 475 |
Portion of balance at December 31, that, if recognized, would impact the effective income tax rate | $ 188 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Additional Information [Line Items] | |||
Pre-tax earnings from foreign operations | $ 293 | $ 215 | $ 382 |
Other comprehensive income (loss), provision (benefit) | 702 | 447 | 15 |
Other comprehensive income (loss), provision (benefit) including HTM portfolio transfer | 727 | ||
Increase in valuation allowance | 73 | ||
Valuation allowance | 296 | 223 | |
Accrued interest and penalties expense (benefit) related to income taxes included in income tax expense | 16 | 4 | $ 6 |
Unremitted earnings | 1,600 | ||
Amount of unrecognized deferred tax liability, bad debt reserve for tax purposes of qualified lender | 69 | ||
Bad debt reserve for tax purposes of qualified lender | 287 | ||
Foreign Tax Credit Carryforward | |||
Additional Information [Line Items] | |||
Increase in valuation allowance | 56 | ||
Internal Revenue Service (IRS) | |||
Additional Information [Line Items] | |||
Operating loss carryforwards | 36 | 31 | |
Operating loss carryforwards, no expiration | 26 | ||
State and Local Jurisdiction | |||
Additional Information [Line Items] | |||
Operating loss carryforwards | 250 | 237 | |
Foreign Tax Authority | |||
Additional Information [Line Items] | |||
Operating loss carryforwards | $ 56 | $ 40 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - Non-Recoverable Rate - Level 3 - Appraisal value | Dec. 31, 2020 | Dec. 31, 2019 |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, measurement input | 0.00% | 0.00% |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, measurement input | 89.00% | 50.00% |
Weighted average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, measurement input | 14.00% | 6.00% |
Fair Value Measurement - Assets
Fair Value Measurement - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | $ 100,445 | $ 79,213 | |
Loans held for sale | 596 | 251 | |
Derivative assets, gross amount | 3,415 | 1,729 | |
Derivative asset, netting adjustments | (1,148) | (633) | |
Derivative asset | 2,267 | 1,096 | |
Liabilities: | |||
Derivative liabilities, gross amount | 1,518 | 1,197 | |
Derivative liability, netting adjustments | (739) | (523) | |
Derivative liability | 779 | 674 | |
Net valuation allowance | 31 | 12 | |
Level 1 | |||
Assets: | |||
Loans held for sale | 0 | 0 | |
Level 2 | |||
Assets: | |||
Loans held for sale | 2,214 | 149 | |
Level 3 | |||
Assets: | |||
Loans held for sale | 0 | 0 | |
Recurring | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 100,445 | 79,213 | |
Loans held for sale | 596 | 251 | |
Derivative asset | 2,267 | 1,096 | |
Other assets | 1,037 | 410 | |
Total assets | 104,345 | 80,970 | |
Liabilities: | |||
Derivative liability | 779 | 674 | |
Recurring | Level 1 | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 9,460 | 4,355 | |
Loans held for sale | 0 | 0 | |
Derivative assets, gross amount | 268 | 84 | |
Other assets | 430 | 344 | |
Total assets | 10,158 | 4,783 | |
Other assets: | |||
Deferred compensation plan assets | 414 | 343 | |
Equity securities | 1 | ||
Liabilities: | |||
Derivative liabilities, gross amount | 271 | 17 | |
Recurring | Level 2 | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 90,546 | 74,416 | |
Loans held for sale | 596 | 251 | |
Derivative assets, gross amount | 3,006 | 1,568 | |
Other assets | 552 | 0 | |
Total assets | 94,700 | 76,235 | |
Liabilities: | |||
Derivative liabilities, gross amount | 1,137 | 1,129 | |
Recurring | Level 3 | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 439 | 442 | |
Loans held for sale | 0 | 0 | |
Derivative assets, gross amount | 141 | 77 | $ 38 |
Other assets | 55 | 66 | |
Total assets | 635 | 585 | |
Other assets: | |||
Retained interests in securitizations | 55 | 66 | |
Liabilities: | |||
Derivative liabilities, gross amount | 110 | 51 | $ 48 |
Recurring | Fair Value Inputs Level 1 And Level 2 [Member] | |||
Other assets: | |||
Equity securities | 568 | ||
Liabilities: | |||
Debt and Equity Securities, Unrealized Gain (Loss) | 535 | ||
U.S. Treasury securities | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 9,318 | 4,124 | |
U.S. Treasury securities | Recurring | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 9,318 | 4,124 | |
U.S. Treasury securities | Recurring | Level 1 | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 9,318 | 4,124 | |
U.S. Treasury securities | Recurring | Level 2 | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 0 | 0 | |
U.S. Treasury securities | Recurring | Level 3 | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 0 | 0 | |
RMBS | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 76,703 | 64,338 | |
RMBS | Recurring | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 76,703 | 64,338 | |
RMBS | Recurring | Level 1 | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 0 | 0 | |
RMBS | Recurring | Level 2 | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 76,375 | 63,909 | |
RMBS | Recurring | Level 3 | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 328 | 429 | |
CMBS | Recurring | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 11,735 | 9,426 | |
CMBS | Recurring | Level 1 | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 0 | 0 | |
CMBS | Recurring | Level 2 | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 11,624 | 9,413 | |
CMBS | Recurring | Level 3 | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 111 | 13 | |
Other securities | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 2,689 | 1,325 | |
Other securities | Recurring | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 2,689 | 1,325 | |
Other securities | Recurring | Level 1 | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 142 | 231 | |
Other securities | Recurring | Level 2 | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 2,547 | 1,094 | |
Other securities | Recurring | Level 3 | |||
Assets: | |||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | $ 0 | $ 0 |
Fair Value Measurement - Level
Fair Value Measurement - Level 3 Recurring Fair Value Rollfoward (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2020 | |
Derivative, Fair Value, Net [Abstract] | ||||
Fair value of RMBS, cumulative effects from the CECL adoption | $ 4 | |||
Derivative assets, gross amount | $ 3,415 | $ 1,729 | ||
Derivative liabilities, gross amount | 1,518 | 1,197 | ||
Recurring | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Net Unrealized Gains (Losses) Included in OCI Related to Assets and Liabilities Still Held | (21) | (4) | $ (17) | |
Derivative, Fair Value, Net [Abstract] | ||||
Beginning balance | 26 | (10) | 13 | |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 10 | 6 | (20) | |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 43 | (16) | 13 | |
Settlements | (37) | 52 | (17) | |
Transfers Into Level 3 | 0 | 0 | 0 | |
Transfers Out of Level 3 | (11) | (6) | 1 | |
Ending balance | 31 | 26 | (10) | |
Derivative assets, gross amount | 141 | 77 | 38 | |
Derivative liabilities, gross amount | 110 | 51 | 48 | |
RMBS | Recurring | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 429 | 433 | 614 | |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 22 | 35 | 32 | |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | (19) | 5 | (8) | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (72) | (63) | (74) | |
Transfers Into Level 3 | 206 | 177 | 203 | |
Transfers Out of Level 3 | (242) | (158) | (334) | |
Ending balance | 328 | 429 | 433 | |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 16 | 34 | 28 | |
RMBS | Recurring | Level 3 | Including CECL Impact Adoption | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 433 | |||
Ending balance | 433 | |||
CMBS | Recurring | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 13 | 10 | 14 | |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | (3) | 0 | 0 | |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | (9) | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (32) | (2) | (4) | |
Transfers Into Level 3 | 371 | 5 | 0 | |
Transfers Out of Level 3 | (229) | 0 | 0 | |
Ending balance | 111 | 13 | 10 | |
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 | 0 | 5 | ||
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 0 | |||
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 0 | |||
Purchases | 0 | |||
Sales | 0 | |||
Issuances | 0 | |||
Settlements | (5) | |||
Transfers Into Level 3 | 0 | |||
Transfers Out of Level 3 | 0 | |||
Ending balance | 0 | |||
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 0 | |||
Available-for-sale securities | Recurring | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 442 | 443 | 633 | |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 19 | 35 | 32 | |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | (28) | 5 | (8) | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | |
Settlements | (104) | (65) | (83) | |
Transfers Into Level 3 | 577 | 182 | 203 | |
Transfers Out of Level 3 | (471) | (158) | (334) | |
Ending balance | 439 | 442 | 443 | |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 16 | 34 | 28 | |
Available-for-sale securities | Recurring | Level 3 | Including CECL Impact Adoption | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 446 | |||
Ending balance | 446 | |||
Consumer MSRs | Recurring | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 0 | 92 | ||
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 3 | |||
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 0 | |||
Purchases | 0 | |||
Sales | (97) | |||
Issuances | 2 | |||
Settlements | 0 | |||
Transfers Into Level 3 | 0 | |||
Transfers Out of Level 3 | 0 | |||
Ending balance | 0 | |||
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 0 | |||
Retained interest in securitizations | Recurring | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 66 | 158 | 172 | |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | (11) | 18 | (14) | |
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 | (110) | 0 | |
Transfers Into Level 3 | 0 | 0 | 0 | |
Transfers Out of Level 3 | 0 | 0 | 0 | |
Ending balance | 55 | 66 | 158 | |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | (11) | (19) | (14) | |
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 | $ 10 | $ 1 | $ (20) |
Fair Value Measurement - Quanti
Fair Value Measurement - Quantitative Information about Level 3 Fair Value Measurements (Details) $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | $ 100,445 | $ 79,213 | ||
Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 100,445 | 79,213 | ||
Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 439 | 442 | ||
Retained interests in securitizations | 55 | 66 | ||
Net derivative assets (liabilities) | 31 | 26 | $ (10) | $ 13 |
RMBS | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 76,703 | 64,338 | ||
RMBS | Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 76,703 | 64,338 | ||
RMBS | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 328 | 429 | ||
CMBS | Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 11,735 | 9,426 | ||
CMBS | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | $ 111 | $ 13 | ||
Yield | RMBS | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Securities available-for-sale, measurement input | 0.02 | 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 | 0.12 | 0.18 | ||
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 | 0.03 | 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 | 0.01 | 0.02 | ||
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 | 0.02 | 0.02 | ||
Voluntary prepayment rate | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input | 0.03 | 0.04 | ||
Voluntary prepayment rate | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input | 0.13 | 0.14 | ||
Voluntary 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 | 0.08 | 0 | ||
Voluntary 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 | 0.15 | 0.18 | ||
Voluntary 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 | 0.10 | 0.10 | ||
Default 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 | ||
Default rate | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input | 0.03 | 0.03 | ||
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 | 0.01 | ||
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 | 0.11 | 0.06 | ||
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 | 0.02 | 0.02 | ||
Loss severity | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input | 0.55 | 0.74 | ||
Loss severity | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input | 0.70 | 0.88 | ||
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 | 0.30 | 0.30 | ||
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 | 1 | 0.95 | ||
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 | 0.73 | 0.67 | ||
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 | 37 months | 35 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 | 52 months | 51 months | ||
Discount rate | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input | 0.02 | 0.03 | ||
Discount rate | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Retained interests, measurement input | 0.12 | 0.10 | ||
Swap rates | Recurring | Level 3 | Discounted cash flows | Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Net derivative assets (liabilities), measurement input | 0.01 | 0.02 | ||
Swap rates | Recurring | Level 3 | Discounted cash flows | Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Net derivative assets (liabilities), measurement input | 0.01 | 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), measurement input | 0.01 | 0.02 |
Fair Value Measurement - Nonrec
Fair Value Measurement - Nonrecurring Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | $ 0 | $ 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | 244,701 | 258,696 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | 305 | 294 |
Other assets | 175 | 103 |
Total assets | 480 | 397 |
Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 0 | 0 |
Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | 305 | 294 |
Other assets | 175 | 103 |
Total assets | 480 | 397 |
Equity investments accounted for under measurement alternative | 25 | 5 |
Foreclosed property and repossessed assets, fair value disclosure | 42 | 61 |
Long lived assets held for sale | $ 108 | $ 37 |
Fair Value Measurement - Nonr_2
Fair Value Measurement - Nonrecurring Fair Value Measurements Included in Earnings (Details) - Nonrecurring - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | $ 198 | $ (268) |
Other assets | (85) | (76) |
Total | $ 113 | $ (344) |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Loans held for sale | $ 596 | $ 251 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 4,708 | 4,129 |
Restricted cash for securitization investors | 262 | 342 |
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 | 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 | |
Interest payable | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 35,801 | 9,278 |
Restricted cash for securitization investors | 0 | 0 |
Net loans held for investment | 0 | 0 |
Loans held for sale | 2,214 | 149 |
Interest receivable | 1,471 | 1,758 |
Other investments | 1,341 | 1,638 |
Financial liabilities: | ||
Deposits with defined maturities | 33,111 | 45,225 |
Securitized debt obligations | 12,584 | 17,941 |
Senior and subordinated notes | 28,282 | 31,233 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 668 | 314 |
Other borrowings | 7,001 | |
Interest payable | 352 | 439 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash for securitization investors | 0 | 0 |
Net loans held for investment | 244,701 | 258,696 |
Loans held for sale | 0 | 0 |
Interest receivable | 0 | 0 |
Other investments | 0 | 0 |
Financial liabilities: | ||
Deposits with defined maturities | 0 | 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 | |
Interest payable | 0 | 0 |
Carrying Value | ||
Financial assets: | ||
Cash and cash equivalents | 40,509 | 13,407 |
Restricted cash for securitization investors | 262 | 342 |
Net loans held for investment | 236,060 | 258,601 |
Loans held for sale | 2,114 | 149 |
Interest receivable | 1,471 | 1,758 |
Other investments | 1,341 | 1,638 |
Financial liabilities: | ||
Deposits with defined maturities | 32,746 | 44,958 |
Securitized debt obligations | 12,414 | 17,808 |
Senior and subordinated notes | 27,382 | 30,472 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 668 | 314 |
Other borrowings | 7,000 | |
Interest payable | 352 | 439 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 40,509 | 13,407 |
Restricted cash for securitization investors | 262 | 342 |
Net loans held for investment | 244,701 | 258,696 |
Loans held for sale | 2,214 | 149 |
Interest receivable | 1,471 | 1,758 |
Other investments | 1,341 | 1,638 |
Financial liabilities: | ||
Deposits with defined maturities | 33,111 | 45,225 |
Securitized debt obligations | 12,584 | 17,941 |
Senior and subordinated notes | 28,282 | 31,233 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 668 | 314 |
Other borrowings | 7,001 | |
Interest payable | $ 352 | $ 439 |
Business Segments and Revenue_3
Business Segments and Revenue from Contracts with Customers - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)segment | Dec. 31, 2018USD ($) | |
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 | |
Operating segments | Commercial Banking | ||
Segment Reporting Information [Line Items] | ||
Revenue change due to impact of federal tax rate | $ (108) |
Business Segments and Revenue_4
Business Segments and Revenue from Contracts with Customers - Segment Results and Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Net interest income (loss) | $ 22,913 | $ 23,340 | $ 22,875 |
Non-interest income (loss) | 5,610 | 5,253 | 5,201 |
Total net revenue (loss) | 28,523 | 28,593 | 28,076 |
Provision for credit losses | 10,264 | 6,236 | 5,856 |
Non-interest expense | 15,056 | 15,483 | 14,902 |
Income (loss) from continuing operations before income taxes | 3,203 | 6,874 | 7,318 |
Income tax provision | 486 | 1,341 | 1,293 |
Income (loss) from continuing operations, net of tax | 2,717 | 5,533 | 6,025 |
Total loans held for investment | 251,624 | 265,809 | 245,899 |
Total Deposits | 305,442 | 262,697 | 249,764 |
Uncollectible Portion of Billed Finance Charges and Fees | 1,100 | 1,400 | 1,300 |
Operating segments | Credit Card | |||
Segment Reporting Information [Line Items] | |||
Net interest income (loss) | 13,776 | 14,461 | 14,167 |
Non-interest income (loss) | 3,823 | 3,888 | 3,520 |
Total net revenue (loss) | 17,599 | 18,349 | 17,687 |
Provision for credit losses | 7,327 | 4,992 | 4,984 |
Non-interest expense | 8,491 | 9,271 | 8,542 |
Income (loss) from continuing operations before income taxes | 1,781 | 4,086 | 4,161 |
Income tax provision | 420 | 959 | 970 |
Income (loss) from continuing operations, net of tax | 1,361 | 3,127 | 3,191 |
Total loans held for investment | 106,956 | 128,236 | 116,361 |
Total Deposits | 0 | 0 | 0 |
Operating segments | Consumer Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income (loss) | 7,238 | 6,732 | 6,549 |
Non-interest income (loss) | 466 | 643 | 663 |
Total net revenue (loss) | 7,704 | 7,375 | 7,212 |
Provision for credit losses | 1,753 | 938 | 838 |
Non-interest expense | 4,159 | 4,091 | 4,027 |
Income (loss) from continuing operations before income taxes | 1,792 | 2,346 | 2,347 |
Income tax provision | 425 | 547 | 547 |
Income (loss) from continuing operations, net of tax | 1,367 | 1,799 | 1,800 |
Total loans held for investment | 68,888 | 63,065 | 59,205 |
Total Deposits | 249,815 | 213,099 | 198,607 |
Operating segments | Commercial Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income (loss) | 2,048 | 1,983 | 2,044 |
Non-interest income (loss) | 923 | 831 | 744 |
Total net revenue (loss) | 2,971 | 2,814 | 2,788 |
Provision for credit losses | 1,181 | 306 | 83 |
Non-interest expense | 1,706 | 1,699 | 1,654 |
Income (loss) from continuing operations before income taxes | 84 | 809 | 1,051 |
Income tax provision | 19 | 188 | 245 |
Income (loss) from continuing operations, net of tax | 65 | 621 | 806 |
Total loans held for investment | 75,780 | 74,508 | 70,333 |
Total Deposits | 39,590 | 32,134 | 29,480 |
Revenue change due to impact of federal tax rate | (108) | ||
Other | |||
Segment Reporting Information [Line Items] | |||
Net interest income (loss) | (149) | 164 | 115 |
Non-interest income (loss) | 398 | (109) | 274 |
Total net revenue (loss) | 249 | 55 | 389 |
Provision for credit losses | 3 | 0 | (49) |
Non-interest expense | 700 | 422 | 679 |
Income (loss) from continuing operations before income taxes | (454) | (367) | (241) |
Income tax provision | (378) | (353) | (469) |
Income (loss) from continuing operations, net of tax | (76) | (14) | 228 |
Total loans held for investment | 0 | 0 | 0 |
Total Deposits | $ 16,037 | $ 17,464 | $ 21,677 |
Business Segments and Revenue_5
Business Segments and Revenue from Contracts with Customers - Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | $ 3,737 | $ 3,820 | $ 3,431 |
Revenue from other sources | 1,873 | 1,433 | 1,770 |
Non-interest income (loss) | 5,610 | 5,253 | 5,201 |
Operating segments | Credit Card | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 3,062 | 3,045 | 2,617 |
Revenue from other sources | 761 | 843 | 903 |
Non-interest income (loss) | 3,823 | 3,888 | 3,520 |
Operating segments | Consumer Banking | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 436 | 604 | 661 |
Revenue from other sources | 30 | 39 | 2 |
Non-interest income (loss) | 466 | 643 | 663 |
Operating segments | Commercial Banking | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 242 | 178 | 158 |
Revenue from other sources | 681 | 653 | 586 |
Non-interest income (loss) | 923 | 831 | 744 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | (3) | (7) | (5) |
Revenue from other sources | 401 | (102) | 279 |
Non-interest income (loss) | 398 | (109) | 274 |
Interchange fees, net | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 3,017 | 3,179 | 2,823 |
Customer reward expenses | 4,900 | 4,900 | 4,400 |
Interchange fees, net | Operating segments | Credit Card | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 2,747 | 2,925 | 2,609 |
Interchange fees, net | Operating segments | Consumer Banking | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 209 | 205 | 185 |
Interchange fees, net | Operating segments | Commercial Banking | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 63 | 55 | 33 |
Interchange fees, net | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | (2) | (6) | (4) |
Service changes and other customer-related fees | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 362 | 417 | 489 |
Service changes and other customer-related fees | Operating segments | Credit Card | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 0 | 0 | 0 |
Service changes and other customer-related fees | Operating segments | Consumer Banking | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 188 | 298 | 367 |
Service changes and other customer-related fees | Operating segments | Commercial Banking | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 175 | 120 | 123 |
Service changes and other customer-related fees | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | (1) | (1) | (1) |
Other contract revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 358 | 224 | 119 |
Other contract revenue | Operating segments | Credit Card | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 315 | 120 | 8 |
Other contract revenue | Operating segments | Consumer Banking | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 39 | 101 | 109 |
Other contract revenue | Operating segments | Commercial Banking | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | 4 | 3 | 2 |
Other contract revenue | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total contract revenue | $ 0 | $ 0 | $ 0 |
Commitments, Contingencies, G_3
Commitments, Contingencies, Guarantees, and Others - Unfunded Lending Commitments: Contractual Amount and Carrying Value (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||
Unfunded lending commitments, contractual amount | $ 386,732 | $ 401,474 |
Off-balance sheet lending commitment, carrying value | 176 | 137 |
Credit Card | ||
Loss Contingencies [Line Items] | ||
Unused commitments to extend credit, contractual amount | 349,594 | 363,446 |
Other excluding credit card | ||
Loss Contingencies [Line Items] | ||
Unused commitments to extend credit, contractual amount | 35,836 | 36,454 |
Off-balance sheet lending commitment, carrying value | 144 | 110 |
Advised line of credit | 1,800 | 1,600 |
Letter of credit | ||
Loss Contingencies [Line Items] | ||
Standby letters of credit and commercial letters of credit, contractual amount | 1,302 | 1,574 |
Off-balance sheet lending commitment, carrying value | $ 32 | $ 27 |
Commitments, Contingencies, G_4
Commitments, Contingencies, Guarantees, and Others - Loss Sharing and UK PPI (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Insurance claims | ||
Loss Contingencies [Line Items] | ||
Loss contingency accrual | $ 188 | |
Loss sharing agreements | ||
Loss Contingencies [Line Items] | ||
Guarantee obligation | $ 97 | $ 75 |
Commitments, Contingencies, G_5
Commitments, Contingencies, Guarantees, and Others - Litigation (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2021USD ($) | Oct. 31, 2018USD ($) | Dec. 31, 2020USD ($)claim | |
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | $ 200 | ||
Anti-money laundering | |||
Loss Contingencies [Line Items] | |||
Litigation settlement paid | $ 100 | ||
Anti-money laundering | Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Litigation settlement paid | $ 390 | ||
Litigation settlement paid from reserve | $ 290 | ||
Cybersecurity Incident [Member] | |||
Loss Contingencies [Line Items] | |||
Number of consumer class action cases filed for Cybersecurity Incident | claim | 73 | ||
Number of consumer class action cases currently pending for cybersecurity incident | claim | 29 | ||
Penalty Paid to the US Treasury | $ 80 | ||
Pending litigation | Interchange litigation | |||
Loss Contingencies [Line Items] | |||
Litigation settlement, attributable to reporting entity and third party | $ 5,500 | ||
United States | Cybersecurity Incident [Member] | |||
Loss Contingencies [Line Items] | |||
Number of consumer class action cases filed for Cybersecurity Incident | claim | 61 | ||
Canada | Cybersecurity Incident [Member] | |||
Loss Contingencies [Line Items] | |||
Number of consumer class action cases filed for Cybersecurity Incident | claim | 12 |
Capital One Financial Corpora_3
Capital One Financial Corporation (Parent Company Only) - Statements of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Income Statements, Captions [Line Items] | |||
Interest income | $ 26,033 | $ 28,513 | $ 27,176 |
Interest expense | 3,120 | 5,173 | 4,301 |
Non-interest income (loss) | 5,610 | 5,253 | 5,201 |
Non-interest expense | 15,056 | 15,483 | 14,902 |
Income tax benefit | 486 | 1,341 | 1,293 |
Net income | 2,714 | 5,546 | 6,015 |
Comprehensive income | 5,060 | 7,077 | 5,879 |
Parent Company | |||
Condensed Income Statements, Captions [Line Items] | |||
Interest income | 186 | 442 | 313 |
Interest expense | 510 | 798 | 720 |
Dividends from subsidiaries | 3,003 | 3,276 | 2,750 |
Non-interest income (loss) | (127) | (21) | 19 |
Non-interest expense | 33 | 60 | 29 |
Income before income taxes and equity in undistributed earnings of subsidiaries | 2,519 | 2,839 | 2,333 |
Income tax benefit | (93) | (138) | (128) |
Equity in undistributed earnings of subsidiaries | 102 | 2,569 | 3,554 |
Net income | 2,714 | 5,546 | 6,015 |
Other comprehensive income (loss), net of tax | 2,346 | 1,531 | (136) |
Comprehensive income | $ 5,060 | $ 7,077 | $ 5,879 |
Capital One Financial Corpora_4
Capital One Financial Corporation (Parent Company Only) - Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||
Cash and cash equivalents | $ 40,509 | $ 13,407 | ||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 100,445 | 79,213 | ||
Other assets | 21,205 | 17,613 | ||
Total assets | 421,602 | 390,365 | ||
Liabilities: | ||||
Senior and subordinated notes | 27,382 | 30,472 | ||
Accrued expenses and other liabilities | 15,065 | 13,521 | ||
Total liabilities | 361,398 | 332,354 | ||
Stockholders’ equity: | ||||
Total stockholders’ equity | 60,204 | 58,011 | $ 51,668 | $ 48,730 |
Total liabilities and stockholders’ equity | 421,602 | 390,365 | ||
Parent Company | ||||
Assets: | ||||
Cash and cash equivalents | 12,976 | 13,050 | ||
Investments in subsidiaries | 62,066 | 61,626 | ||
Loans to subsidiaries | 5,924 | 3,905 | ||
Securities available for sale (amortized cost of $97.6 billion and allowance for credit losses of $1 million as of December 31, 2020) | 622 | 738 | ||
Other assets | 1,473 | 1,017 | ||
Total assets | 83,061 | 80,336 | ||
Liabilities: | ||||
Senior and subordinated notes | 22,037 | 22,080 | ||
Accrued expenses and other liabilities | 820 | 245 | ||
Total liabilities | 22,857 | 22,325 | ||
Stockholders’ equity: | ||||
Total stockholders’ equity | 60,204 | 58,011 | ||
Total liabilities and stockholders’ equity | $ 83,061 | $ 80,336 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net income | $ 2,714 | $ 5,546 | $ 6,015 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Net cash from operating activities | 16,699 | 16,639 | 12,978 |
Investing activities: | |||
Net cash from investing activities | (14,841) | (22,998) | (15,618) |
Common stock: | |||
Net proceeds from issuances | 241 | 199 | 175 |
Dividends paid | (460) | (753) | (773) |
Preferred stock: | |||
Net proceeds from issuances | 1,330 | 1,462 | 0 |
Dividends paid | (280) | (282) | (265) |
Redemptions | (1,375) | (1,000) | 0 |
Purchases of treasury stock | (393) | (1,481) | (2,284) |
Proceeds from share-based payment activities | 62 | 17 | 38 |
Net cash from financing activities | 25,164 | 6,619 | 1,777 |
Changes in cash and cash equivalents | 27,022 | 260 | (863) |
Cash, cash equivalents and restricted cash for securitization investors, beginning of the period | 13,749 | 13,489 | 14,352 |
Cash, cash equivalents and restricted cash for securitization investors, end of the period | 40,771 | 13,749 | 13,489 |
Parent Company | |||
Operating activities: | |||
Net income | 2,714 | 5,546 | 6,015 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Equity in undistributed earnings of subsidiaries | (102) | (2,569) | (3,554) |
Other operating activities | 1,217 | 216 | (35) |
Net cash from operating activities | 3,829 | 3,193 | 2,426 |
Investing activities: | |||
Changes in investments in subsidiaries | (217) | 704 | (577) |
Proceeds from paydowns and maturities of securities available for sale | 117 | 111 | 140 |
Changes in loans to subsidiaries | (2,019) | (1,302) | (2,055) |
Net cash from investing activities | (2,119) | (487) | (2,492) |
Financing activities: | |||
Changes in borrowings from subsidiaries | 0 | 0 | 38 |
Issuance of senior and subordinated notes | 1,991 | 2,646 | 5,227 |
Maturities and paydowns of senior and subordinated notes | (2,900) | (750) | 0 |
Common stock: | |||
Net proceeds from issuances | 241 | 199 | 175 |
Dividends paid | (460) | (753) | (773) |
Preferred stock: | |||
Net proceeds from issuances | 1,330 | 1,462 | 0 |
Dividends paid | (280) | (282) | (265) |
Redemptions | (1,375) | (1,000) | 0 |
Purchases of treasury stock | (393) | (1,481) | (2,284) |
Proceeds from share-based payment activities | 62 | 17 | 38 |
Net cash from financing activities | (1,784) | 58 | 2,156 |
Changes in cash and cash equivalents | (74) | 2,764 | 2,090 |
Cash, cash equivalents and restricted cash for securitization investors, beginning of the period | 13,050 | 10,286 | 8,196 |
Cash, cash equivalents and restricted cash for securitization investors, end of the period | 12,976 | 13,050 | 10,286 |
Supplemental information: | |||
Decrease in investment in subsidiaries | 0 | 1,508 | 0 |
Decrease in borrowings from subsidiaries | $ 0 | $ 1,671 | $ 0 |