☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | No. | 41-0449260 | ||
(State of incorporation) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered |
Common Stock, par value $1-2/3 | WFC | NYSE |
7.5% Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L | WFC.PRL | NYSE |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series N | WFC.PRN | NYSE |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series O | WFC.PRO | NYSE |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series P | WFC.PRP | NYSE |
Depositary Shares, each representing a 1/1000th interest in a share of 5.85% Fixed-to-Floating Rate Non-Cumulative Perpetual Class A Preferred Stock, Series Q | WFC.PRQ | NYSE |
Depositary Shares, each representing a 1/1000th interest in a share of 6.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Class A Preferred Stock, Series R | WFC.PRR | NYSE |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series T | WFC.PRT | NYSE |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series V | WFC.PRV | NYSE |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series W | WFC.PRW | NYSE |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series X | WFC.PRX | NYSE |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series Y | WFC.PRY | NYSE |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series Z | WFC.PRZ | NYSE |
Guarantee of 5.80% Fixed-to-Floating Rate Normal Wachovia Income Trust Securities of Wachovia Capital Trust III | NYSE | |
Guarantee of Medium-Term Notes, Series A, due October 30, 2028 of Wells Fargo Finance LLC | WFC/28A | NYSE |
Shares Outstanding | ||
July 24, | ||
Common stock, $1-2/3 par value |
FORM 10-Q | FORM 10-Q | FORM 10-Q | ||||||||
CROSS-REFERENCE INDEX | CROSS-REFERENCE INDEX | CROSS-REFERENCE INDEX | ||||||||
PART I | Financial Information | Financial Information | ||||||||
Item 1. | Financial Statements | Page | Financial Statements | Page | ||||||
Consolidated Statement of Income | Consolidated Statement of Income | |||||||||
Consolidated Statement of Comprehensive Income | Consolidated Statement of Comprehensive Income | |||||||||
Consolidated Balance Sheet | Consolidated Balance Sheet | |||||||||
Consolidated Statement of Changes in Equity | Consolidated Statement of Changes in Equity | |||||||||
Consolidated Statement of Cash Flows | Consolidated Statement of Cash Flows | |||||||||
Notes to Financial Statements | Notes to Financial Statements | |||||||||
1 | — | Summary of Significant Accounting Policies | 1 | — | Summary of Significant Accounting Policies | |||||
2 | — | Business Combinations | 2 | — | Business Combinations | |||||
3 | — | Cash, Loan and Dividend Restrictions | 3 | — | Cash, Loan and Dividend Restrictions | |||||
4 | — | Trading Activities | 4 | — | Trading Activities | |||||
5 | — | Available-for-Sale and Held-to-Maturity Debt Securities | 5 | — | Available-for-Sale and Held-to-Maturity Debt Securities | |||||
6 | — | Loans and Allowance for Credit Losses | 6 | — | Loans and Related Allowance for Credit Losses | |||||
7 | — | Leasing Activity | 7 | — | Leasing Activity | |||||
8 | — | Equity Securities | 8 | — | Equity Securities | |||||
9 | — | Other Assets | 9 | — | Other Assets | |||||
10 | — | Securitizations and Variable Interest Entities | 10 | — | Securitizations and Variable Interest Entities | |||||
11 | — | Mortgage Banking Activities | 11 | — | Mortgage Banking Activities | |||||
12 | — | Intangible Assets | 12 | — | Intangible Assets | |||||
13 | — | Guarantees, Pledged Assets and Collateral, and Other Commitments | 13 | — | Guarantees, Pledged Assets and Collateral, and Other Commitments | |||||
14 | — | Legal Actions | 14 | — | Legal Actions | |||||
15 | — | Derivatives | 15 | — | Derivatives | |||||
16 | — | Fair Values of Assets and Liabilities | 16 | — | Fair Values of Assets and Liabilities | |||||
17 | — | Preferred Stock | 17 | — | Preferred Stock | |||||
18 | — | Revenue from Contracts with Customers | 18 | — | Revenue from Contracts with Customers | |||||
19 | — | Employee Benefits | 19 | — | Employee Benefits and Other Expenses | |||||
20 | — | Earnings Per Common Share | 20 | — | Earnings and Dividends Per Common Share | |||||
21 | — | Other Comprehensive Income | 21 | — | Other Comprehensive Income | |||||
22 | — | Operating Segments | 22 | — | Operating Segments | |||||
23 | — | Regulatory and Agency Capital Requirements | 23 | — | Regulatory and Agency Capital Requirements | |||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations (Financial Review) | Management’s Discussion and Analysis of Financial Condition and Results of Operations (Financial Review) | ||||||||
Summary Financial Data | Summary Financial Data | |||||||||
Overview | Overview | |||||||||
Earnings Performance | Earnings Performance | |||||||||
Balance Sheet Analysis | Balance Sheet Analysis | |||||||||
Off-Balance Sheet Arrangements | Off-Balance Sheet Arrangements | |||||||||
Risk Management | Risk Management | |||||||||
Capital Management | Capital Management | |||||||||
Regulatory Matters | Regulatory Matters | |||||||||
Critical Accounting Policies | Critical Accounting Policies | |||||||||
Current Accounting Developments | Current Accounting Developments | |||||||||
Forward-Looking Statements | Forward-Looking Statements | |||||||||
Risk Factors | Risk Factors | |||||||||
Glossary of Acronyms | Glossary of Acronyms | |||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | Quantitative and Qualitative Disclosures About Market Risk | ||||||||
Item 4. | Controls and Procedures | Controls and Procedures | ||||||||
PART II | Other Information | Other Information | ||||||||
Item 1. | Legal Proceedings | Legal Proceedings | ||||||||
Item 1A. | Risk Factors | Risk Factors | ||||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | Unregistered Sales of Equity Securities and Use of Proceeds | ||||||||
Item 6. | Exhibits | Exhibits | ||||||||
Signature | Signature | Signature |
Summary Financial Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
Quarter ended | Jun 30, 2019 from | Six months ended | Quarter ended | Jun 30, 2020 from | Six months ended | |||||||||||||||||||||||||||||||||||||||||||||
($ in millions, except per share amounts) | Jun 30, 2019 | Mar 31, 2019 | Jun 30, 2018 | Mar 31, 2019 | Jun 30, 2018 | Jun 30, 2019 | Jun 30, 2018 | % Change | Jun 30, 2020 | Mar 31, 2020 | Jun 30, 2019 | Mar 31, 2020 | Jun 30, 2019 | Jun 30, 2020 | Jun 30, 2019 | % Change | ||||||||||||||||||||||||||||||||||
For the Period | ||||||||||||||||||||||||||||||||||||||||||||||||||
Wells Fargo net income | $ | 6,206 | 5,860 | 5,186 | 6 | % | 20 | $ | 12,066 | 10,322 | 17 | % | ||||||||||||||||||||||||||||||||||||||
Wells Fargo net income applicable to common stock | 5,848 | 5,507 | 4,792 | 6 | 22 | 11,355 | 9,525 | 19 | ||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per common share | 1.30 | 1.20 | 0.98 | 8 | 33 | 2.50 | 1.94 | 29 | ||||||||||||||||||||||||||||||||||||||||||
Wells Fargo net income (loss) | $ | (2,379 | ) | 653 | 6,206 | NM | NM | $ | (1,726 | ) | 12,066 | NM | ||||||||||||||||||||||||||||||||||||||
Wells Fargo net income (loss) applicable to common stock | (2,694 | ) | 42 | 5,848 | NM | NM | (2,652 | ) | 11,355 | NM | ||||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per common share | (0.66 | ) | 0.01 | 1.30 | NM | NM | (0.65 | ) | 2.50 | NM | ||||||||||||||||||||||||||||||||||||||||
Profitability ratios (annualized): | ||||||||||||||||||||||||||||||||||||||||||||||||||
Wells Fargo net income to average assets (ROA) | 1.31 | % | 1.26 | 1.10 | 4 | 19 | 1.29 | % | 1.10 | 17 | ||||||||||||||||||||||||||||||||||||||||
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE) | 13.26 | 12.71 | 10.60 | 4 | 25 | 12.99 | 10.59 | 23 | ||||||||||||||||||||||||||||||||||||||||||
Wells Fargo net income (loss) to average assets (ROA) | (0.49 | )% | 0.13 | 1.31 | NM | NM | (0.18 | )% | 1.29 | NM | ||||||||||||||||||||||||||||||||||||||||
Wells Fargo net income (loss) applicable to common stock to average Wells Fargo common stockholders’ equity (ROE) | (6.63 | ) | 0.10 | 13.26 | NM | NM | (3.23 | ) | 12.99 | NM | ||||||||||||||||||||||||||||||||||||||||
Return on average tangible common equity (ROTCE) (1) | 15.78 | 15.16 | 12.62 | 4 | 25 | 15.47 | 12.62 | 23 | (8.00 | ) | 0.12 | 15.78 | NM | NM | (3.89 | ) | 15.47 | NM | ||||||||||||||||||||||||||||||||
Efficiency ratio (2) | 62.3 | 64.4 | 64.9 | (3 | ) | (4 | ) | 63.4 | 66.7 | (5 | ) | 81.6 | 73.6 | 62.3 | 11 | 31 | 77.6 | 63.4 | 22 | |||||||||||||||||||||||||||||||
Total revenue | $ | 21,584 | 21,609 | 21,553 | — | — | $ | 43,193 | 43,487 | (1 | ) | $ | 17,836 | 17,717 | 21,584 | 1 | (17 | ) | $ | 35,553 | 43,193 | (18 | ) | |||||||||||||||||||||||||||
Pre-tax pre-provision profit (PTPP) (3) | 8,135 | 7,693 | 7,571 | 6 | 7 | 15,828 | 14,463 | 9 | 3,285 | 4,669 | 8,135 | (30 | ) | (60 | ) | 7,954 | 15,828 | (50 | ) | |||||||||||||||||||||||||||||||
Dividends declared per common share | 0.45 | 0.45 | 0.39 | — | 15 | 0.90 | 0.78 | 15 | 0.51 | 0.51 | 0.45 | — | 13 | 1.02 | 0.90 | 13 | ||||||||||||||||||||||||||||||||||
Average common shares outstanding | 4,469.4 | 4,551.5 | 4,865.8 | (2 | ) | (8 | ) | 4,510.2 | 4,875.7 | (7 | ) | 4,105.5 | 4,104.8 | 4,469.4 | — | (8 | ) | 4,105.2 | 4,510.2 | (9 | ) | |||||||||||||||||||||||||||||
Diluted average common shares outstanding | 4,495.0 | 4,584.0 | 4,899.8 | (2 | ) | (8 | ) | 4,540.1 | 4,916.1 | (8 | ) | 4,105.5 | 4,135.3 | 4,495.0 | (1 | ) | (9 | ) | 4,105.2 | 4,540.1 | (10 | ) | ||||||||||||||||||||||||||||
Average loans | $ | 947,460 | 950,010 | 944,079 | — | — | $ | 948,728 | 947,532 | — | $ | 971,266 | 965,046 | 947,460 | 1 | 3 | $ | 968,156 | 948,728 | 2 | ||||||||||||||||||||||||||||||
Average assets | 1,900,627 | 1,883,091 | 1,884,884 | 1 | 1 | 1,891,907 | 1,900,304 | — | 1,948,939 | 1,950,659 | 1,900,627 | — | 3 | 1,949,799 | 1,891,907 | 3 | ||||||||||||||||||||||||||||||||||
Average total deposits | 1,268,979 | 1,262,062 | 1,271,339 | 1 | — | 1,265,539 | 1,284,187 | (1 | ) | 1,386,656 | 1,337,963 | 1,268,979 | 4 | 9 | 1,362,309 | 1,265,539 | 8 | |||||||||||||||||||||||||||||||||
Average consumer and small business banking deposits | 742,671 | 739,654 | 754,047 | — | (2 | ) | 741,171 | 754,898 | (2 | ) | 857,943 | 779,521 | 742,671 | 10 | 16 | 819,791 | 741,171 | 11 | ||||||||||||||||||||||||||||||||
Net interest margin | 2.82 | % | 2.91 | 2.93 | (3 | ) | (4 | ) | 2.86 | % | 2.89 | (1 | ) | 2.25 | % | 2.58 | 2.82 | (13 | ) | (20 | ) | 2.42 | % | 2.86 | (15 | ) | ||||||||||||||||||||||||
At Period End | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | $ | 482,067 | 483,467 | 475,495 | — | 1 | $ | 482,067 | 475,495 | 1 | $ | 472,580 | 501,563 | 482,067 | (6 | ) | (2 | ) | $ | 472,580 | 482,067 | (2 | ) | |||||||||||||||||||||||||||
Loans | 949,878 | 948,249 | 944,265 | — | 1 | 949,878 | 944,265 | 1 | 935,155 | 1,009,843 | 949,878 | (7 | ) | (2 | ) | 935,155 | 949,878 | (2 | ) | |||||||||||||||||||||||||||||||
Allowance for loan losses | 9,692 | 9,900 | 10,193 | (2 | ) | (5 | ) | 9,692 | 10,193 | (5 | ) | 18,926 | 11,263 | 9,692 | 68 | 95 | 18,926 | 9,692 | 95 | |||||||||||||||||||||||||||||||
Goodwill | 26,415 | 26,420 | 26,429 | — | — | 26,415 | 26,429 | — | 26,385 | 26,381 | 26,415 | — | — | 26,385 | 26,415 | — | ||||||||||||||||||||||||||||||||||
Equity securities | 61,537 | 58,440 | 57,505 | 5 | 7 | 61,537 | 57,505 | 7 | 52,494 | 54,047 | 61,537 | (3 | ) | (15 | ) | 52,494 | 61,537 | (15 | ) | |||||||||||||||||||||||||||||||
Assets | 1,923,388 | 1,887,792 | 1,879,700 | 2 | 2 | 1,923,388 | 1,879,700 | 2 | 1,968,766 | 1,981,349 | 1,923,388 | (1 | ) | 2 | 1,968,766 | 1,923,388 | 2 | |||||||||||||||||||||||||||||||||
Deposits | 1,288,426 | 1,264,013 | 1,268,864 | 2 | 2 | 1,288,426 | 1,268,864 | 2 | 1,410,711 | 1,376,532 | 1,288,426 | 2 | 9 | 1,410,711 | 1,288,426 | 9 | ||||||||||||||||||||||||||||||||||
Common stockholders’ equity | 177,235 | 176,025 | 181,386 | 1 | (2 | ) | 177,235 | 181,386 | (2 | ) | 159,322 | 162,654 | 177,235 | (2 | ) | (10 | ) | 159,322 | 177,235 | (10 | ) | |||||||||||||||||||||||||||||
Wells Fargo stockholders’ equity | 199,042 | 197,832 | 205,188 | 1 | (3 | ) | 199,042 | 205,188 | (3 | ) | 179,386 | 182,718 | 199,042 | (2 | ) | (10 | ) | 179,386 | 199,042 | (10 | ) | |||||||||||||||||||||||||||||
Total equity | 200,037 | 198,733 | 206,069 | 1 | (3 | ) | 200,037 | 206,069 | (3 | ) | 180,122 | 183,330 | 200,037 | (2 | ) | (10 | ) | 180,122 | 200,037 | (10 | ) | |||||||||||||||||||||||||||||
Tangible common equity (1) | 148,864 | 147,723 | 152,580 | 1 | (2 | ) | 148,864 | 152,580 | (2 | ) | 131,329 | 134,787 | 148,864 | (3 | ) | (12 | ) | 131,329 | 148,864 | (12 | ) | |||||||||||||||||||||||||||||
Capital ratios (5): | ||||||||||||||||||||||||||||||||||||||||||||||||||
Capital ratios (6): | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity to assets | 10.40 | % | 10.53 | 10.96 | (1 | ) | (5 | ) | 10.40 | % | 10.96 | (5 | ) | 9.15 | % | 9.25 | 10.40 | (1 | ) | (12 | ) | 9.15 | % | 10.40 | (12 | ) | ||||||||||||||||||||||||
Risk-based capital: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 | 11.97 | 11.92 | 11.98 | — | — | 11.97 | 11.98 | — | 10.97 | 10.67 | 11.97 | 3 | (8 | ) | 10.97 | 11.97 | (8 | ) | ||||||||||||||||||||||||||||||||
Tier 1 capital | 13.69 | 13.64 | 13.83 | — | (1 | ) | 13.69 | 13.83 | (1 | ) | 12.60 | 12.22 | 13.69 | 3 | (8 | ) | 12.60 | 13.69 | (8 | ) | ||||||||||||||||||||||||||||||
Total capital | 16.75 | 16.74 | 16.98 | — | (1 | ) | 16.75 | 16.98 | (1 | ) | 15.29 | 15.21 | 16.75 | 1 | (9 | ) | 15.29 | 16.75 | (9 | ) | ||||||||||||||||||||||||||||||
Tier 1 leverage | 9.12 | 9.15 | 9.51 | — | (4 | ) | 9.12 | 9.51 | (4 | ) | 7.95 | 8.03 | 9.12 | (1 | ) | (13 | ) | 7.95 | 9.12 | (13 | ) | |||||||||||||||||||||||||||||
Common shares outstanding | 4,419.6 | 4,511.9 | 4,849.1 | (2 | ) | (9 | ) | 4,419.6 | 4,849.1 | (9 | ) | 4,119.6 | 4,096.4 | 4,419.6 | 1 | (7 | ) | 4,119.6 | 4,419.6 | (7 | ) | |||||||||||||||||||||||||||||
Book value per common share | $ | 40.10 | 39.01 | 37.41 | 3 | 7 | $ | 40.10 | 37.41 | 7 | $ | 38.67 | 39.71 | 40.10 | (3 | ) | (4 | ) | $ | 38.67 | 40.10 | (4 | ) | |||||||||||||||||||||||||||
Tangible book value per common share | 33.68 | 32.74 | 31.47 | 3 | 7 | 33.68 | 31.47 | 7 | 31.88 | 32.90 | 33.68 | (3 | ) | (5 | ) | 31.88 | 33.68 | (5 | ) | |||||||||||||||||||||||||||||||
Team members (active, full-time equivalent) | 262,800 | 262,100 | 264,500 | — | (1 | ) | 262,800 | 264,500 | (1 | ) | 266,300 | 262,800 | 262,800 | 1 | 1 | 266,300 | 262,800 | 1 |
(1) | Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, |
(2) | The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income). |
(3) | Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle. |
(4) | In second quarter 2020, diluted average common shares outstanding equaled average common shares outstanding because our securities convertible into common shares had an anti-dilutive effect. |
(5) | Consumer and small business banking deposits are total deposits excluding mortgage escrow and wholesale deposits. |
The risk-based capital ratios were calculated under the lower of the Standardized or Advanced Approach determined pursuant to Basel III. Beginning January 1, 2018, the requirements for calculating common equity tier 1 and tier 1 capital, along with risk-weighted assets, became fully |
Book value per common share is common stockholders’ equity divided by common shares outstanding. Tangible book value per common share is tangible common equity divided by common shares outstanding. |
• | revenue |
• | a net interest margin of 2.25%, down 57 basis points; |
• |
• | noninterest expense |
• | an efficiency ratio of 81.6%, compared with 62.3%; |
• | average loans |
• | average deposits |
• |
• | nonaccrual loans of $ |
• |
Earnings Performance |
• | average interest-earning deposits with banks of $35.3 billion; |
• | average loans of $23.8 billion; |
• | average mortgage loans held for sale of $7.5 billion; and |
• | other earning assets of $3.0 billion; |
• | average federal funds sold and securities purchased under resale agreements of $ |
• | average equity securities of $7.8 billion. |
• | average loans of $19.4 billion; |
• | average interest-earning deposits with banks of $12.0 billion; |
• | average mortgage loans held for sale of $7.0 billion; |
• | average debt securities of $4.2 billion; |
• | other earning assets of $ |
• | average federal funds sold and securities purchased under resale agreements of $ |
• | average |
Quarter ended June 30, | Quarter ended June 30, | |||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||
(in millions) | Average balance | Yields/ rates | Interest income/ expense | Average balance | Yields/ rates | Interest income/ expense | Average balance | Yields/ rates | Interest income/ expense | Average balance | Yields/ rates | Interest income/ expense | ||||||||||||||||||||||||||||
Earning assets | ||||||||||||||||||||||||||||||||||||||||
Interest-earning deposits with banks | $ | 141,045 | 2.33 | % | $ | 819 | 154,846 | 1.75 | % | $ | 676 | $ | 176,327 | 0.12 | % | $ | 51 | 141,045 | 2.33 | % | $ | 819 | ||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 98,130 | 2.44 | 598 | 80,020 | 1.73 | 344 | 76,384 | 0.01 | 2 | 98,130 | 2.44 | 598 | ||||||||||||||||||||||||||||
Debt securities (3): | ||||||||||||||||||||||||||||||||||||||||
Debt securities (2): | ||||||||||||||||||||||||||||||||||||||||
Trading debt securities | 86,514 | 3.45 | 746 | 80,661 | 3.45 | 695 | 96,049 | 2.76 | 663 | 86,514 | 3.45 | 746 | ||||||||||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | 15,402 | 2.21 | 85 | 6,425 | 1.66 | 27 | 9,452 | 0.83 | 19 | 15,402 | 2.21 | 85 | ||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | 45,769 | 4.02 | 460 | 47,388 | 3.91 | 464 | 35,728 | 2.98 | 267 | 45,769 | 4.02 | 460 | ||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||
Federal agencies | 149,761 | 2.99 | 1,120 | 154,929 | 2.75 | 1,065 | 143,600 | 2.33 | 837 | 149,761 | 2.99 | 1,120 | ||||||||||||||||||||||||||||
Residential and commercial | 5,562 | 4.02 | 56 | 8,248 | 4.86 | 101 | 4,433 | 2.27 | 25 | 5,562 | 4.02 | 56 | ||||||||||||||||||||||||||||
Total mortgage-backed securities | 155,323 | 3.03 | 1,176 | 163,177 | 2.86 | 1,166 | 148,033 | 2.33 | 862 | 155,323 | 3.03 | 1,176 | ||||||||||||||||||||||||||||
Other debt securities | 45,063 | 4.40 | 494 | 47,009 | 4.33 | 506 | 39,231 | 2.75 | 268 | 45,063 | 4.40 | 494 | ||||||||||||||||||||||||||||
Total available-for-sale debt securities | 261,557 | 3.39 | 2,215 | 263,999 | 3.28 | 2,163 | 232,444 | 2.44 | 1,416 | 261,557 | 3.39 | 2,215 | ||||||||||||||||||||||||||||
Held-to-maturity debt securities: | ||||||||||||||||||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | 44,762 | 2.19 | 244 | 44,731 | 2.19 | 244 | 48,574 | 2.14 | 258 | 44,762 | 2.19 | 244 | ||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | 6,958 | 4.06 | 71 | 6,255 | 4.34 | 68 | 14,168 | 3.81 | 135 | 6,958 | 4.06 | 71 | ||||||||||||||||||||||||||||
Federal agency and other mortgage-backed securities | 95,506 | 2.64 | 632 | 94,964 | 2.33 | 552 | 104,047 | 2.21 | 575 | 95,506 | 2.64 | 632 | ||||||||||||||||||||||||||||
Other debt securities | 58 | 3.86 | — | 584 | 4.66 | 7 | 15 | 2.58 | — | 58 | 3.86 | — | ||||||||||||||||||||||||||||
Total held-to-maturity debt securities | 147,284 | 2.57 | 947 | 146,534 | 2.38 | 871 | 166,804 | 2.33 | 968 | 147,284 | 2.57 | 947 | ||||||||||||||||||||||||||||
Total debt securities | 495,355 | 3.16 | 3,908 | 491,194 | 3.04 | 3,729 | 495,297 | 2.46 | 3,047 | 495,355 | 3.16 | 3,908 | ||||||||||||||||||||||||||||
Mortgage loans held for sale | 18,464 | 4.22 | 195 | 18,788 | 4.22 | 198 | 25,960 | 3.55 | 230 | 18,464 | 4.22 | 195 | ||||||||||||||||||||||||||||
Loans held for sale | 1,642 | 4.80 | 20 | 3,481 | 5.48 | 48 | 1,650 | 1.87 | 7 | 1,642 | 4.80 | 20 | ||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||||||||||||||||||
Commercial and industrial – U.S. | 285,084 | 4.47 | 3,176 | 275,259 | 4.16 | 2,851 | 310,104 | 2.58 | 1,990 | 285,084 | 4.47 | 3,176 | ||||||||||||||||||||||||||||
Commercial and industrial – Non U.S. | 62,905 | 3.90 | 611 | 59,716 | 3.51 | 524 | ||||||||||||||||||||||||||||||||||
Commercial and industrial – Non-U.S. | 72,241 | 2.48 | 445 | 62,905 | 3.90 | 611 | ||||||||||||||||||||||||||||||||||
Real estate mortgage | 121,869 | 4.58 | 1,390 | 123,982 | 4.27 | 1,319 | 123,525 | 3.03 | 930 | 121,869 | 4.58 | 1,390 | ||||||||||||||||||||||||||||
Real estate construction | 21,568 | 5.36 | 288 | 23,637 | 4.88 | 287 | 21,361 | 3.37 | 179 | 21,568 | 5.36 | 288 | ||||||||||||||||||||||||||||
Lease financing | 19,133 | 4.71 | 226 | 19,266 | 4.48 | 216 | 18,087 | 4.34 | 196 | 19,133 | 4.71 | 226 | ||||||||||||||||||||||||||||
Total commercial loans | 510,559 | 4.47 | 5,691 | 501,860 | 4.15 | 5,197 | 545,318 | 2.76 | 3,740 | 510,559 | 4.47 | 5,691 | ||||||||||||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 286,169 | 3.88 | 2,776 | 283,101 | 4.06 | 2,870 | 280,878 | 3.44 | 2,414 | 286,169 | 3.88 | 2,776 | ||||||||||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | 32,609 | 5.75 | 468 | 37,249 | 5.32 | 495 | 27,700 | 4.24 | 292 | 32,609 | 5.75 | 468 | ||||||||||||||||||||||||||||
Credit card | 38,154 | 12.65 | 1,204 | 35,883 | 12.66 | 1,133 | 36,539 | 10.78 | 979 | 38,154 | 12.65 | 1,204 | ||||||||||||||||||||||||||||
Automobile | 45,179 | 5.23 | 589 | 48,568 | 5.18 | 628 | 48,441 | 4.99 | 601 | 45,179 | 5.23 | 589 | ||||||||||||||||||||||||||||
Other revolving credit and installment | 34,790 | 7.12 | 617 | 37,418 | 6.62 | 617 | 32,390 | 5.45 | 440 | 34,790 | 7.12 | 617 | ||||||||||||||||||||||||||||
Total consumer loans | 436,901 | 5.18 | 5,654 | 442,219 | 5.20 | 5,743 | 425,948 | 4.45 | 4,726 | 436,901 | 5.18 | 5,654 | ||||||||||||||||||||||||||||
Total loans | 947,460 | 4.80 | 11,345 | 944,079 | 4.64 | 10,940 | 971,266 | 3.50 | 8,466 | 947,460 | 4.80 | 11,345 | ||||||||||||||||||||||||||||
Equity securities | 35,215 | 2.70 | 237 | 37,330 | 2.38 | 222 | 27,417 | 1.70 | 117 | 35,215 | 2.70 | 237 | ||||||||||||||||||||||||||||
Other | 4,693 | 1.76 | 20 | 5,518 | 1.48 | 21 | 7,715 | (0.02 | ) | — | 4,693 | 1.76 | 20 | |||||||||||||||||||||||||||
Total earning assets | $ | 1,742,004 | 3.94 | % | $ | 17,142 | 1,735,256 | 3.73 | % | $ | 16,178 | $ | 1,782,016 | 2.68 | % | $ | 11,920 | 1,742,004 | 3.94 | % | $ | 17,142 | ||||||||||||||||||
Funding sources | ||||||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||||||
Interest-bearing checking | $ | 57,549 | 1.46 | % | $ | 210 | 80,324 | 0.90 | % | $ | 181 | $ | 53,592 | 0.07 | % | $ | 9 | 57,549 | 1.46 | % | $ | 210 | ||||||||||||||||||
Market rate and other savings | 690,677 | 0.59 | 1,009 | 676,668 | 0.26 | 434 | 799,949 | 0.16 | 311 | 690,677 | 0.59 | 1,009 | ||||||||||||||||||||||||||||
Savings certificates | 30,620 | 1.62 | 124 | 20,033 | 0.43 | 21 | 27,051 | 1.11 | 75 | 30,620 | 1.62 | 124 | ||||||||||||||||||||||||||||
Other time deposits | 96,887 | 2.61 | 630 | 82,061 | 2.26 | 465 | 59,920 | 1.01 | 149 | 96,887 | 2.61 | 630 | ||||||||||||||||||||||||||||
Deposits in foreign offices | 51,875 | 1.86 | 240 | 51,474 | 1.30 | 167 | ||||||||||||||||||||||||||||||||||
Deposits in non-U.S. offices | 37,682 | 0.44 | 41 | 51,875 | 1.86 | 240 | ||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 927,608 | 0.96 | 2,213 | 910,560 | 0.56 | 1,268 | 978,194 | 0.24 | 585 | 927,608 | 0.96 | 2,213 | ||||||||||||||||||||||||||||
Short-term borrowings | 114,754 | 2.26 | 646 | 103,795 | 1.54 | 398 | 63,535 | (0.10 | ) | (17 | ) | 114,754 | 2.26 | 646 | ||||||||||||||||||||||||||
Long-term debt | 236,734 | 3.21 | 1,900 | 223,800 | 2.97 | 1,658 | 232,395 | 2.13 | 1,237 | 236,734 | 3.21 | 1,900 | ||||||||||||||||||||||||||||
Other liabilities | 24,314 | 2.18 | 132 | 28,202 | 2.12 | 150 | 29,947 | 1.53 | 116 | 24,314 | 2.18 | 132 | ||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,303,410 | 1.50 | 4,891 | 1,266,357 | 1.10 | 3,474 | 1,304,071 | 0.59 | 1,921 | 1,303,410 | 1.50 | 4,891 | ||||||||||||||||||||||||||||
Portion of noninterest-bearing funding sources | 438,594 | — | — | 468,899 | — | — | 477,945 | — | — | 438,594 | — | — | ||||||||||||||||||||||||||||
Total funding sources | $ | 1,742,004 | 1.12 | 4,891 | 1,735,256 | 0.80 | 3,474 | $ | 1,782,016 | 0.43 | 1,921 | 1,742,004 | 1.12 | 4,891 | ||||||||||||||||||||||||||
Net interest margin and net interest income on a taxable-equivalent basis | 2.82 | % | $ | 12,251 | 2.93 | % | $ | 12,704 | 2.25 | % | $ | 9,999 | 2.82 | % | $ | 12,251 | ||||||||||||||||||||||||
Noninterest-earning assets | ||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 19,475 | 18,609 | $ | 21,227 | 19,475 | ||||||||||||||||||||||||||||||||||
Goodwill | 26,415 | 26,444 | 26,384 | 26,415 | ||||||||||||||||||||||||||||||||||||
Other | 112,733 | 104,575 | 119,312 | 112,733 | ||||||||||||||||||||||||||||||||||||
Total noninterest-earning assets | $ | 158,623 | 149,628 | $ | 166,923 | 158,623 | ||||||||||||||||||||||||||||||||||
Noninterest-bearing funding sources | ||||||||||||||||||||||||||||||||||||||||
Deposits | $ | 341,371 | 360,779 | $ | 408,462 | 341,371 | ||||||||||||||||||||||||||||||||||
Other liabilities | 56,161 | 51,681 | 52,298 | 56,161 | ||||||||||||||||||||||||||||||||||||
Total equity | 199,685 | 206,067 | 184,108 | 199,685 | ||||||||||||||||||||||||||||||||||||
Noninterest-bearing funding sources used to fund earning assets | (438,594 | ) | (468,899 | ) | (477,945 | ) | (438,594 | ) | ||||||||||||||||||||||||||||||||
Net noninterest-bearing funding sources | $ | 158,623 | 149,628 | $ | 166,923 | 158,623 | ||||||||||||||||||||||||||||||||||
Total assets | $ | 1,900,627 | 1,884,884 | $ | 1,948,939 | 1,900,627 | ||||||||||||||||||||||||||||||||||
Average prime rate | 3.25 | % | 5.50 | % | ||||||||||||||||||||||||||||||||||||
Average three-month London Interbank Offered Rate (LIBOR) | 0.60 | 2.51 |
(1) |
Yields/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories. |
Yields/rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented. |
Six months ended June 30, | ||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||
(in millions) | Average balance | Yields/ rates | Interest income/ expense | Average balance | Yields/ rates | Interest income/ expense | ||||||||||||||
Earning assets | ||||||||||||||||||||
Interest-earning deposits with banks | $ | 140,915 | 2.33 | % | $ | 1,629 | 163,520 | 1.61 | % | $ | 1,308 | |||||||||
Federal funds sold and securities purchased under resale agreements | 90,875 | 2.42 | 1,093 | 79,083 | 1.57 | 615 | ||||||||||||||
Debt securities (3): | ||||||||||||||||||||
Trading debt securities | 87,938 | 3.52 | 1,544 | 79,693 | 3.35 | 1,332 | ||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | 14,740 | 2.18 | 159 | 6,426 | 1.66 | 53 | ||||||||||||||
Securities of U.S. states and political subdivisions | 47,049 | 4.02 | 946 | 48,665 | 3.64 | 885 | ||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
Federal agencies | 150,623 | 3.04 | 2,293 | 156,690 | 2.73 | 2,141 | ||||||||||||||
Residential and commercial | 5,772 | 4.17 | 120 | 8,558 | 4.48 | 192 | ||||||||||||||
Total mortgage-backed securities | 156,395 | 3.09 | 2,413 | 165,248 | 2.82 | 2,333 | ||||||||||||||
Other debt securities | 45,920 | 4.43 | 1,011 | 47,549 | 4.02 | 950 | ||||||||||||||
Total available-for-sale debt securities | 264,104 | 3.44 | 4,529 | 267,888 | 3.16 | 4,221 | ||||||||||||||
Held-to-maturity debt securities: | ||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | 44,758 | 2.20 | 487 | 44,727 | 2.20 | 487 | ||||||||||||||
Securities of U.S. states and political subdivisions | 6,560 | 4.05 | 133 | 6,257 | 4.34 | 136 | ||||||||||||||
Federal agency and other mortgage-backed securities | 95,753 | 2.69 | 1,288 | 92,888 | 2.35 | 1,093 | ||||||||||||||
Other debt securities | 60 | 3.91 | 1 | 639 | 3.89 | 12 | ||||||||||||||
Total held-to-maturity debt securities | 147,131 | 2.60 | 1,909 | 144,511 | 2.40 | 1,728 | ||||||||||||||
Total debt securities | 499,173 | 3.20 | 7,982 | 492,092 | 2.96 | 7,281 | ||||||||||||||
Mortgage loans held for sale (4) | 16,193 | 4.28 | 347 | 18,598 | 4.06 | 377 | ||||||||||||||
Loans held for sale (4) | 1,752 | 5.04 | 44 | 2,750 | 5.28 | 72 | ||||||||||||||
Loans: | ||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||
Commercial and industrial – U.S. | 285,827 | 4.47 | 6,345 | 273,658 | 4.00 | 5,435 | ||||||||||||||
Commercial and industrial – Non U.S. | 62,863 | 3.90 | 1,215 | 59,964 | 3.37 | 1,003 | ||||||||||||||
Real estate mortgage | 121,644 | 4.58 | 2,763 | 125,085 | 4.16 | 2,581 | ||||||||||||||
Real estate construction | 21,999 | 5.40 | 589 | 24,041 | 4.70 | 561 | ||||||||||||||
Lease financing | 19,261 | 4.66 | 450 | 19,266 | 4.89 | 471 | ||||||||||||||
Total commercial loans | 511,594 | 4.48 | 11,362 | 502,014 | 4.03 | 10,051 | ||||||||||||||
Consumer loans: | ||||||||||||||||||||
Real estate 1-4 family first mortgage | 285,694 | 3.92 | 5,597 | 283,651 | 4.04 | 5,722 | ||||||||||||||
Real estate 1-4 family junior lien mortgage | 33,197 | 5.75 | 949 | 38,042 | 5.23 | 988 | ||||||||||||||
Credit card | 38,168 | 12.76 | 2,416 | 36,174 | 12.71 | 2,280 | ||||||||||||||
Automobile | 45,007 | 5.21 | 1,163 | 50,010 | 5.17 | 1,283 | ||||||||||||||
Other revolving credit and installment | 35,068 | 7.13 | 1,240 | 37,641 | 6.54 | 1,221 | ||||||||||||||
Total consumer loans | 437,134 | 5.22 | 11,365 | 445,518 | 5.18 | 11,494 | ||||||||||||||
Total loans (4) | 948,728 | 4.82 | 22,727 | 947,532 | 4.57 | 21,545 | ||||||||||||||
Equity securities | 34,154 | 2.63 | 448 | 38,536 | 2.37 | 455 | ||||||||||||||
Other | 4,555 | 1.69 | 38 | 5,765 | 1.34 | 40 | ||||||||||||||
Total earning assets | $ | 1,736,345 | 3.97 | % | $ | 34,308 | 1,747,876 | 3.64 | % | $ | 31,693 | |||||||||
Funding sources | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Interest-bearing checking | $ | 56,905 | 1.44 | % | $ | 407 | 74,084 | 0.84 | % | $ | 310 | |||||||||
Market rate and other savings | 689,628 | 0.54 | 1,856 | 677,861 | 0.24 | 802 | ||||||||||||||
Savings certificates | 27,940 | 1.46 | 202 | 20,025 | 0.38 | 38 | ||||||||||||||
Other time deposits | 97,356 | 2.64 | 1,275 | 79,340 | 2.06 | 812 | ||||||||||||||
Deposits in foreign offices | 53,649 | 1.88 | 499 | 73,023 | 1.09 | 396 | ||||||||||||||
Total interest-bearing deposits | 925,478 | 0.92 | 4,239 | 924,333 | 0.51 | 2,358 | ||||||||||||||
Short-term borrowings | 111,719 | 2.24 | 1,243 | 102,793 | 1.39 | 710 | ||||||||||||||
Long-term debt | 234,963 | 3.27 | 3,827 | 224,924 | 2.88 | 3,234 | ||||||||||||||
Other liabilities | 24,801 | 2.23 | 275 | 28,065 | 2.02 | 282 | ||||||||||||||
Total interest-bearing liabilities | 1,296,961 | 1.49 | 9,584 | 1,280,115 | 1.03 | 6,584 | ||||||||||||||
Portion of noninterest-bearing funding sources | 439,384 | — | 467,761 | — | — | |||||||||||||||
Total funding sources | $ | 1,736,345 | 1.11 | 9,584 | 1,747,876 | 0.75 | 6,584 | |||||||||||||
Net interest margin and net interest income on a taxable-equivalent basis (5) | 2.86 | % | $ | 24,724 | 2.89 | % | $ | 25,109 | ||||||||||||
Noninterest-earning assets | ||||||||||||||||||||
Cash and due from banks | $ | 19,544 | 18,730 | |||||||||||||||||
Goodwill | 26,417 | 26,480 | ||||||||||||||||||
Other | 109,601 | 107,218 | ||||||||||||||||||
Total noninterest-earning assets | $ | 155,562 | 152,428 | |||||||||||||||||
Noninterest-bearing funding sources | ||||||||||||||||||||
Deposits | $ | 340,061 | 359,854 | |||||||||||||||||
Other liabilities | 55,864 | 54,212 | ||||||||||||||||||
Total equity | 199,021 | 206,123 | ||||||||||||||||||
Noninterest-bearing funding sources used to fund earning assets | (439,384 | ) | (467,761 | ) | ||||||||||||||||
Net noninterest-bearing funding sources | $ | 155,562 | 152,428 | |||||||||||||||||
Total assets | $ | 1,891,907 | 1,900,304 | |||||||||||||||||
Nonaccrual loans and related income are included in their respective loan categories. |
Includes taxable-equivalent adjustments of |
Six months ended June 30, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(in millions) | Average balance | Yields/ rates | Interest income/ expense | Average balance | Yields/ rates | Interest income/ expense | ||||||||||||||
Earning assets | ||||||||||||||||||||
Interest-earning deposits with banks | $ | 152,924 | 0.57 | % | $ | 432 | 140,915 | 2.33 | % | $ | 1,629 | |||||||||
Federal funds sold and securities purchased under resale agreements | 91,969 | 0.84 | 382 | 90,875 | 2.42 | 1,093 | ||||||||||||||
Debt securities (2): | ||||||||||||||||||||
Trading debt securities | 98,556 | 2.91 | 1,433 | 87,938 | 3.52 | 1,544 | ||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | 10,116 | 1.14 | 57 | 14,740 | 2.18 | 159 | ||||||||||||||
Securities of U.S. states and political subdivisions | 37,340 | 3.22 | 601 | 47,049 | 4.02 | 946 | ||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
Federal agencies | 151,119 | 2.51 | 1,899 | 150,623 | 3.04 | 2,293 | ||||||||||||||
Residential and commercial | 4,540 | 2.55 | 58 | 5,772 | 4.17 | 120 | ||||||||||||||
Total mortgage-backed securities | 155,659 | 2.51 | 1,957 | 156,395 | 3.09 | 2,413 | ||||||||||||||
Other debt securities | 39,386 | 3.11 | 611 | 45,920 | 4.43 | 1,011 | ||||||||||||||
Total available-for-sale debt securities | 242,501 | 2.66 | 3,226 | 264,104 | 3.44 | 4,529 | ||||||||||||||
Held-to-maturity debt securities: | ||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | 47,255 | 2.17 | 509 | 44,758 | 2.20 | 487 | ||||||||||||||
Securities of U.S. states and political subdivisions | 13,852 | 3.82 | 265 | 6,560 | 4.05 | 133 | ||||||||||||||
Federal agency and other mortgage-backed securities | 101,221 | 2.38 | 1,203 | 95,753 | 2.69 | 1,288 | ||||||||||||||
Other debt securities | 20 | 2.90 | — | 60 | 3.91 | 1 | ||||||||||||||
Total held-to-maturity debt securities | 162,348 | 2.44 | 1,977 | 147,131 | 2.60 | 1,909 | ||||||||||||||
Total debt securities | 503,405 | 2.64 | 6,636 | 499,173 | 3.20 | 7,982 | ||||||||||||||
Mortgage loans held for sale (3) | 23,161 | 3.69 | 427 | 16,193 | 4.28 | 347 | ||||||||||||||
Loans held for sale (3) | 1,567 | 2.49 | 19 | 1,752 | 5.04 | 44 | ||||||||||||||
Loans: | ||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||
Commercial and industrial – U.S. | 299,303 | 3.05 | 4,536 | 285,827 | 4.47 | 6,345 | ||||||||||||||
Commercial and industrial – Non U.S. | 71,451 | 2.82 | 1,001 | 62,863 | 3.90 | 1,215 | ||||||||||||||
Real estate mortgage | 122,656 | 3.47 | 2,117 | 121,644 | 4.58 | 2,763 | ||||||||||||||
Real estate construction | 20,819 | 3.94 | 408 | 21,999 | 5.40 | 589 | ||||||||||||||
Lease financing | 18,687 | 4.37 | 408 | 19,261 | 4.66 | 450 | ||||||||||||||
Total commercial loans | 532,916 | 3.19 | 8,470 | 511,594 | 4.48 | 11,362 | ||||||||||||||
Consumer loans: | ||||||||||||||||||||
Real estate 1-4 family first mortgage | 287,217 | 3.53 | 5,064 | 285,694 | 3.92 | 5,597 | ||||||||||||||
Real estate 1-4 family junior lien mortgage | 28,303 | 4.70 | 662 | 33,197 | 5.75 | 949 | ||||||||||||||
Credit card | 38,147 | 11.53 | 2,186 | 38,168 | 12.76 | 2,416 | ||||||||||||||
Automobile | 48,350 | 4.98 | 1,197 | 45,007 | 5.21 | 1,163 | ||||||||||||||
Other revolving credit and installment | 33,223 | 5.89 | 974 | 35,068 | 7.13 | 1,240 | ||||||||||||||
Total consumer loans | 435,240 | 4.65 | 10,083 | 437,134 | 5.22 | 11,365 | ||||||||||||||
Total loans (3) | 968,156 | 3.85 | 18,553 | 948,728 | 4.82 | 22,727 | ||||||||||||||
Equity securities | 32,475 | 2.00 | 325 | 34,154 | 2.63 | 448 | ||||||||||||||
Other | 7,573 | 0.37 | 14 | 4,555 | 1.69 | 38 | ||||||||||||||
Total earning assets | $ | 1,781,230 | 3.02 | % | $ | 26,788 | 1,736,345 | 3.97 | % | $ | 34,308 | |||||||||
Funding sources | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Interest-bearing checking | $ | 58,339 | 0.50 | % | $ | 144 | 56,905 | 1.44 | % | $ | 407 | |||||||||
Market rate and other savings | 781,044 | 0.33 | 1,289 | 689,628 | 0.54 | 1,856 | ||||||||||||||
Savings certificates | 28,575 | 1.30 | 185 | 27,940 | 1.46 | 202 | ||||||||||||||
Other time deposits | 70,949 | 1.43 | 505 | 97,356 | 2.64 | 1,275 | ||||||||||||||
Deposits in non-U.S. offices | 45,508 | 0.90 | 204 | 53,649 | 1.88 | 499 | ||||||||||||||
Total interest-bearing deposits | 984,415 | 0.48 | 2,327 | 925,478 | 0.92 | 4,239 | ||||||||||||||
Short-term borrowings | 83,256 | 0.66 | 275 | 111,719 | 2.24 | 1,243 | ||||||||||||||
Long-term debt | 230,699 | 2.15 | 2,477 | 234,963 | 3.27 | 3,827 | ||||||||||||||
Other liabilities | 30,073 | 1.71 | 258 | 24,801 | 2.23 | 275 | ||||||||||||||
Total interest-bearing liabilities | 1,328,443 | 0.81 | 5,337 | 1,296,961 | 1.49 | 9,584 | ||||||||||||||
Portion of noninterest-bearing funding sources | 452,787 | — | — | 439,384 | — | — | ||||||||||||||
Total funding sources | $ | 1,781,230 | 0.60 | 5,337 | 1,736,345 | 1.11 | 9,584 | |||||||||||||
Net interest margin and net interest income on a taxable-equivalent basis (4) | 2.42 | % | $ | 21,451 | 2.86 | % | $ | 24,724 | ||||||||||||
Noninterest-earning assets | ||||||||||||||||||||
Cash and due from banks | $ | 20,899 | 19,544 | |||||||||||||||||
Goodwill | 26,386 | 26,417 | ||||||||||||||||||
Other | 121,284 | 109,601 | ||||||||||||||||||
Total noninterest-earning assets | $ | 168,569 | 155,562 | |||||||||||||||||
Noninterest-bearing funding sources | ||||||||||||||||||||
Deposits | $ | 377,894 | 340,061 | |||||||||||||||||
Other liabilities | 57,323 | 55,864 | ||||||||||||||||||
Total equity | 186,139 | 199,021 | ||||||||||||||||||
Noninterest-bearing funding sources used to fund earning assets | (452,787 | ) | (439,384 | ) | ||||||||||||||||
Net noninterest-bearing funding sources | $ | 168,569 | 155,562 | |||||||||||||||||
Total assets | $ | 1,949,799 | 1,891,907 | |||||||||||||||||
Average prime rate | 3.82 | % | 5.50 | % | ||||||||||||||||
Average three-month London Interbank Offered Rate (LIBOR) | 1.07 | 2.60 |
Quarter ended June 30, | % | Six months ended June 30, | % | Quarter ended June 30, | % | Six months ended June 30, | % | |||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | Change | 2019 | 2018 | Change | 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 1,206 | 1,163 | 4 | % | $ | 2,300 | 2,336 | (2 | )% | $ | 930 | 1,206 | (23 | )% | $ | 2,139 | 2,300 | (7 | )% | ||||||||||||||||||
Trust and investment fees: | ||||||||||||||||||||||||||||||||||||||
Brokerage advisory, commissions and other fees | 2,318 | 2,354 | (2 | ) | 4,511 | 4,757 | (5 | ) | 2,117 | 2,318 | (9 | ) | 4,599 | 4,511 | 2 | |||||||||||||||||||||||
Trust and investment management | 795 | 835 | (5 | ) | 1,581 | 1,685 | (6 | ) | 687 | 795 | (14 | ) | 1,388 | 1,581 | (12 | ) | ||||||||||||||||||||||
Investment banking | 455 | 486 | (6 | ) | 849 | 916 | (7 | ) | 547 | 455 | 20 | 938 | 849 | 10 | ||||||||||||||||||||||||
Total trust and investment fees | 3,568 | 3,675 | (3 | ) | 6,941 | 7,358 | (6 | ) | 3,351 | 3,568 | (6 | ) | 6,925 | 6,941 | — | |||||||||||||||||||||||
Card fees | 1,025 | 1,001 | 2 | 1,969 | 1,909 | 3 | 797 | 1,025 | (22 | ) | 1,689 | 1,969 | (14 | ) | ||||||||||||||||||||||||
Other fees: | ||||||||||||||||||||||||||||||||||||||
Lending related charges and fees | 349 | 376 | (7 | ) | 696 | 756 | (8 | ) | 303 | 349 | (13 | ) | 631 | 696 | (9 | ) | ||||||||||||||||||||||
Cash network fees | 117 | 120 | (3 | ) | 226 | 246 | (8 | ) | 88 | 117 | (25 | ) | 194 | 226 | (14 | ) | ||||||||||||||||||||||
Commercial real estate brokerage commissions | 105 | 109 | (4 | ) | 186 | 194 | (4 | ) | — | 105 | (100 | ) | 1 | 186 | (99 | ) | ||||||||||||||||||||||
Wire transfer and other remittance fees | 121 | 121 | — | 234 | 237 | (1 | ) | 99 | 121 | (18 | ) | 209 | 234 | (11 | ) | |||||||||||||||||||||||
All other fees | 108 | 120 | (10 | ) | 228 | 213 | 7 | 88 | 108 | (19 | ) | 175 | 228 | (23 | ) | |||||||||||||||||||||||
Total other fees | 800 | 846 | (5 | ) | 1,570 | 1,646 | (5 | ) | 578 | 800 | (28 | ) | 1,210 | 1,570 | (23 | ) | ||||||||||||||||||||||
Mortgage banking: | ||||||||||||||||||||||||||||||||||||||
Servicing income, net | 277 | 406 | (32 | ) | 641 | 874 | (27 | ) | (689 | ) | 277 | NM | (418 | ) | 641 | NM | ||||||||||||||||||||||
Net gains on mortgage loan origination/sales activities | 481 | 364 | 32 | 825 | 830 | (1 | ) | 1,006 | 481 | 109 | 1,114 | 825 | 35 | |||||||||||||||||||||||||
Total mortgage banking | 758 | 770 | (2 | ) | 1,466 | 1,704 | (14 | ) | 317 | 758 | (58 | ) | 696 | 1,466 | (53 | ) | ||||||||||||||||||||||
Insurance | 93 | 102 | (9 | ) | 189 | 216 | (13 | ) | ||||||||||||||||||||||||||||||
Net gains from trading activities | 229 | 191 | 20 | 586 | 434 | 35 | 807 | 229 | 252 | 871 | 586 | 49 | ||||||||||||||||||||||||||
Net gains on debt securities | 20 | 41 | (51 | ) | 145 | 42 | 245 | 212 | 20 | 960 | 449 | 145 | 210 | |||||||||||||||||||||||||
Net gains from equity securities | 622 | 295 | 111 | 1,436 | 1,078 | 33 | ||||||||||||||||||||||||||||||||
Net gains (losses) from equity securities | 533 | 622 | (14 | ) | (868 | ) | 1,436 | NM | ||||||||||||||||||||||||||||||
Lease income | 424 | 443 | (4 | ) | 867 | 898 | (3 | ) | 334 | 424 | (21 | ) | 686 | 867 | (21 | ) | ||||||||||||||||||||||
Life insurance investment income | 167 | 162 | 3 | 326 | 326 | — | 163 | 167 | (2 | ) | 324 | 326 | (1 | ) | ||||||||||||||||||||||||
All other | 577 | 323 | 79 | 992 | 761 | 30 | ||||||||||||||||||||||||||||||||
All other (1) | (66 | ) | 670 | NM | 240 | 1,181 | (80 | ) | ||||||||||||||||||||||||||||||
Total | $ | 9,489 | 9,012 | 5 | $ | 18,787 | 18,708 | — | $ | 7,956 | 9,489 | (16 | ) | $ | 14,361 | 18,787 | (24 | ) |
(1) |
Quarter ended June 30, | Six months ended June 30, | Quarter ended June 30, | Six months ended June 30, | |||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||
Net gains on mortgage loan origination/sales activities (in millions): | ||||||||||||||||||||||||
Residential | (A) | $ | 322 | 281 | $ | 554 | 605 | (A) | $ | 866 | 322 | $ | 1,226 | 554 | ||||||||||
Commercial | 83 | 49 | 130 | 125 | 83 | 83 | 106 | 130 | ||||||||||||||||
Residential pipeline and unsold/repurchased loan management (1) | 76 | 34 | 141 | 100 | 57 | 76 | (218 | ) | 141 | |||||||||||||||
Total | $ | 481 | 364 | $ | 825 | 830 | $ | 1,006 | 481 | $ | 1,114 | 825 | ||||||||||||
Application data (in billions): | ||||||||||||||||||||||||
Mortgage applications | $ | 84 | 90 | 192 | 154 | |||||||||||||||||||
First mortgage unclosed pipeline (2) | 50 | 44 | 50 | 44 | ||||||||||||||||||||
Residential real estate originations (in billions): | ||||||||||||||||||||||||
Held-for-sale | (B) | $ | 33 | 37 | $ | 55 | 71 | |||||||||||||||||
Held-for-investment | 20 | 13 | 31 | 22 | ||||||||||||||||||||
Held for sale | (B) | $ | 43 | 33 | $ | 76 | 55 | |||||||||||||||||
Held for investment | 16 | 20 | 31 | 31 | ||||||||||||||||||||
Total | $ | 53 | 50 | $ | 86 | 93 | $ | 59 | 53 | $ | 107 | 86 | ||||||||||||
Production margin on residential held-for-sale mortgage loan originations | (A)/(B) | 0.98 | % | 0.77 | 1.01 | % | 0.86 | |||||||||||||||||
Production margin on residential held for sale mortgage loan originations | (A)/(B) | 2.04 | % | 0.98 | 1.61 | % | 1.01 | % |
(1) |
(2) | Balances presented are as of June 30, 2020 |
Quarter ended June 30, | % | Six months ended June 30, | % | Quarter ended June 30, | % | Six months ended June 30, | % | |||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | Change | 2019 | 2018 | Change | 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||
Salaries | $ | 4,541 | 4,465 | 2 | % | $ | 8,966 | 8,828 | 2 | % | ||||||||||||||||||||||||||||
Commission and incentive compensation | 2,597 | 2,642 | (2 | ) | 5,442 | 5,410 | 1 | |||||||||||||||||||||||||||||||
Employee benefits | 1,336 | 1,245 | 7 | 3,274 | 2,843 | 15 | ||||||||||||||||||||||||||||||||
Equipment | 607 | 550 | 10 | 1,268 | 1,167 | 9 | ||||||||||||||||||||||||||||||||
Net occupancy (1) | 719 | 722 | — | 1,436 | 1,435 | — | ||||||||||||||||||||||||||||||||
Personnel (1) | $ | 8,911 | 8,474 | 5 | % | $ | 17,225 | 17,682 | (3 | )% | ||||||||||||||||||||||||||||
Technology and equipment (1) | 562 | 641 | (12 | ) | 1,268 | 1,335 | (5 | ) | ||||||||||||||||||||||||||||||
Occupancy (2) | 871 | 719 | 21 | 1,586 | 1,436 | 10 | ||||||||||||||||||||||||||||||||
Core deposit and other intangibles | 27 | 265 | (90 | ) | 55 | 530 | (90 | ) | 22 | 27 | (19 | ) | 45 | 55 | (18 | ) | ||||||||||||||||||||||
FDIC and other deposit assessments | 144 | 297 | (52 | ) | 303 | 621 | (51 | ) | 165 | 144 | 15 | 283 | 303 | (7 | ) | |||||||||||||||||||||||
Operating losses | 1,219 | 247 | 394 | 1,683 | 485 | 247 | ||||||||||||||||||||||||||||||||
Outside professional services | 821 | 881 | (7 | ) | 1,499 | 1,702 | (12 | ) | 758 | 821 | (8 | ) | 1,485 | 1,499 | (1 | ) | ||||||||||||||||||||||
Contract services | 624 | 536 | 16 | 1,187 | 983 | 21 | ||||||||||||||||||||||||||||||||
Operating losses | 247 | 619 | (60 | ) | 485 | 2,087 | (77 | ) | ||||||||||||||||||||||||||||||
Leases (2) | 311 | 311 | — | 597 | 631 | (5 | ) | |||||||||||||||||||||||||||||||
Contract services (1) | 634 | 590 | 7 | 1,219 | 1,120 | 9 | ||||||||||||||||||||||||||||||||
Leases (3) | 244 | 311 | (22 | ) | 504 | 597 | (16 | ) | ||||||||||||||||||||||||||||||
Advertising and promotion | 329 | 227 | 45 | 566 | 380 | 49 | 137 | 329 | (58 | ) | 318 | 566 | (44 | ) | ||||||||||||||||||||||||
Outside data processing | 175 | 164 | 7 | 342 | 326 | 5 | 142 | 175 | (19 | ) | 307 | 342 | (10 | ) | ||||||||||||||||||||||||
Travel and entertainment | 163 | 157 | 4 | 310 | 309 | — | 15 | 163 | (91 | ) | 108 | 310 | (65 | ) | ||||||||||||||||||||||||
Postage, stationery and supplies | 119 | 121 | (2 | ) | 241 | 263 | (8 | ) | 108 | 119 | (9 | ) | 237 | 241 | (2 | ) | ||||||||||||||||||||||
Telecommunications | 93 | 88 | 6 | 184 | 180 | 2 | 110 | 93 | 18 | 202 | 184 | 10 | ||||||||||||||||||||||||||
Foreclosed assets | 35 | 44 | (20 | ) | 72 | 82 | (12 | ) | 23 | 35 | (34 | ) | 52 | 72 | (28 | ) | ||||||||||||||||||||||
Insurance | 25 | 24 | 4 | 50 | 50 | — | 25 | 25 | — | 50 | 50 | — | ||||||||||||||||||||||||||
All other | 536 | 624 | (14 | ) | 1,088 | 1,197 | (9 | ) | 605 | 536 | 13 | 1,027 | 1,088 | (6 | ) | |||||||||||||||||||||||
Total | $ | 13,449 | 13,982 | (4 | ) | $ | 27,365 | 29,024 | (6 | ) | $ | 14,551 | 13,449 | 8 | $ | 27,599 | 27,365 | 1 |
(1) |
Represents expenses for assets we lease to customers. |
Quarter ended | Six months ended | ||||||||||||
(in millions) | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2019 | Jun 30, 2018 | |||||||||
Net interest income | $ | 18 | 13 | $ | 31 | 23 | |||||||
Net gains (losses) from equity securities | 87 | 37 | 432 | 31 | |||||||||
Total revenue from deferred compensation plan investments | 105 | 50 | 463 | 54 | |||||||||
Employee benefits expense (1) | 114 | 53 | 471 | 57 | |||||||||
Income (loss) before income tax expense | $ | (9 | ) | (3 | ) | $ | (8 | ) | (3 | ) |
Quarter ended June 30, | Six months ended June 30, | ||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||
Net interest income | $ | 3 | 18 | $ | 15 | 31 | |||||||
Net gains (losses) from equity securities | 346 | 87 | (275 | ) | 432 | ||||||||
Total revenue (losses) from deferred compensation plan investments | 349 | 105 | (260 | ) | 463 | ||||||||
Change in deferred compensation plan liabilities | 490 | 114 | (108 | ) | 471 | ||||||||
Net derivative (gains) losses from economic hedges of deferred compensation | (141 | ) | — | (141 | ) | — | |||||||
Personnel expense | 349 | 114 | (249 | ) | 471 | ||||||||
Income (loss) before income tax expense | $ | — | (9 | ) | $ | (11 | ) | (8 | ) |
(income/expense in millions, | Community Banking | Wholesale Banking | Wealth and Investment Management | Other (1) | Consolidated Company | Community Banking | Wholesale Banking | Wealth and Investment Management | Other (1) | Consolidated Company | ||||||||||||||||||||||||||||||||||||||||||||||||||||
average balances in billions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
balance sheet data in billions) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarter ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 11,805 | 11,806 | 7,065 | 7,197 | 4,050 | 3,951 | (1,336 | ) | (1,401 | ) | 21,584 | 21,553 | $ | 8,766 | 11,805 | 6,563 | 7,065 | 3,660 | 4,050 | (1,153 | ) | (1,336 | ) | 17,836 | 21,584 | ||||||||||||||||||||||||||||||||||||
Provision (reversal of provision) for credit losses | 479 | 484 | 28 | (36 | ) | (1 | ) | (2 | ) | (3 | ) | 6 | 503 | 452 | 3,378 | 479 | 6,028 | 28 | 257 | (1 | ) | (129 | ) | (3 | ) | 9,534 | 503 | |||||||||||||||||||||||||||||||||||
Noninterest expense | 7,212 | 7,290 | 3,882 | 4,219 | 3,246 | 3,361 | (891 | ) | (888 | ) | 13,449 | 13,982 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 3,147 | 2,496 | 2,789 | 2,635 | 602 | 445 | (332 | ) | (390 | ) | 6,206 | 5,186 | (331 | ) | 3,147 | (2,143 | ) | 2,789 | 180 | 602 | (85 | ) | (332 | ) | (2,379 | ) | 6,206 | |||||||||||||||||||||||||||||||||||
Average loans | $ | 457.7 | 463.8 | 474.0 | 464.7 | 75.0 | 74.7 | (59.2 | ) | (59.1 | ) | 947.5 | 944.1 | $ | 449.3 | 457.7 | 504.3 | 474.0 | 78.7 | 75.0 | (61.0 | ) | (59.2 | ) | 971.3 | 947.5 | ||||||||||||||||||||||||||||||||||||
Average deposits | 777.6 | 760.6 | 410.4 | 414.0 | 143.5 | 167.1 | (62.5 | ) | (70.4 | ) | 1,269.0 | 1,271.3 | 848.5 | 777.6 | 441.2 | 410.4 | 171.8 | 143.5 | (74.8 | ) | (62.5 | ) | 1,386.7 | 1,269.0 | ||||||||||||||||||||||||||||||||||||||
Goodwill | 16.7 | 16.7 | 8.4 | 8.4 | 1.3 | 1.3 | — | — | 26.4 | 26.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 23,555 | 23,636 | 14,176 | 14,476 | 8,129 | 8,193 | (2,667 | ) | (2,818 | ) | 43,193 | 43,487 | $ | 18,262 | 23,555 | 12,380 | 14,176 | 7,375 | 8,129 | (2,464 | ) | (2,667 | ) | 35,553 | 43,193 | ||||||||||||||||||||||||||||||||||||
Provision (reversal of provision) for credit losses | 1,189 | 702 | 162 | (56 | ) | 3 | (8 | ) | (6 | ) | 5 | 1,348 | 643 | 5,096 | 1,189 | 8,316 | 162 | 265 | 3 | (138 | ) | (6 | ) | 13,539 | 1,348 | |||||||||||||||||||||||||||||||||||||
Noninterest expense | 14,901 | 15,992 | 7,720 | 8,197 | 6,549 | 6,651 | (1,805 | ) | (1,816 | ) | 27,365 | 29,024 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 5,970 | 4,409 | 5,559 | 5,510 | 1,179 | 1,159 | (642 | ) | (756 | ) | 12,066 | 10,322 | (176 | ) | 5,970 | (1,832 | ) | 5,559 | 643 | 1,179 | (361 | ) | (642 | ) | (1,726 | ) | 12,066 | |||||||||||||||||||||||||||||||||||
Average loans | $ | 457.9 | 467.1 | 475.2 | 464.9 | 74.7 | 74.3 | (59.1 | ) | (58.8 | ) | 948.7 | 947.5 | $ | 456.0 | 457.9 | 494.4 | 475.2 | 78.6 | 74.7 | (60.8 | ) | (59.1 | ) | 968.2 | 948.7 | ||||||||||||||||||||||||||||||||||||
Average deposits | 771.6 | 754.1 | 410.1 | 429.9 | 148.3 | 172.5 | (64.5 | ) | (72.3 | ) | 1,265.5 | 1,284.2 | 823.5 | 771.6 | 448.9 | 410.1 | 161.6 | 148.3 | (71.7 | ) | (64.5 | ) | 1,362.3 | 1,265.5 | ||||||||||||||||||||||||||||||||||||||
Goodwill | 16.7 | 16.7 | 8.4 | 8.4 | 1.3 | 1.3 | — | — | 26.4 | 26.4 |
(1) | Includes the elimination of certain items that are included in more than one business segment, most of which |
Quarter ended June 30, | Six months ended June 30, | Quarter ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||
(in millions, except average balances which are in billions) | 2019 | 2018 | % Change | 2019 | 2018 | % Change | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||
Net interest income | $ | 7,066 | 7,346 | (4 | )% | $ | 14,314 | 14,541 | (2 | )% | $ | 5,699 | 7,066 | (19 | )% | $ | 12,486 | 14,314 | (13 | )% | ||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 704 | 632 | 11 | 1,314 | 1,271 | 3 | 419 | 704 | (40 | ) | 1,119 | 1,314 | (15 | ) | ||||||||||||||||||||||||
Trust and investment fees: | ||||||||||||||||||||||||||||||||||||||
Brokerage advisory, commissions and other fees (1) | 480 | 465 | 3 | 929 | 943 | (1 | ) | 433 | 480 | (10 | ) | 951 | 929 | 2 | ||||||||||||||||||||||||
Trust and investment management (1) | 199 | 220 | (10 | ) | 409 | 453 | (10 | ) | 174 | 199 | (13 | ) | 368 | 409 | (10 | ) | ||||||||||||||||||||||
Investment banking (2) | (18 | ) | — | NM | (38 | ) | (10 | ) | NM | (67 | ) | (18 | ) | NM | (166 | ) | (38 | ) | NM | |||||||||||||||||||
Total trust and investment fees | 661 | 685 | (4 | ) | 1,300 | 1,386 | (6 | ) | 540 | 661 | (18 | ) | 1,153 | 1,300 | (11 | ) | ||||||||||||||||||||||
Card fees | 929 | 904 | 3 | 1,787 | 1,725 | 4 | 732 | 929 | (21 | ) | 1,541 | 1,787 | (14 | ) | ||||||||||||||||||||||||
Other fees | 335 | 348 | (4 | ) | 667 | 675 | (1 | ) | 247 | 335 | (26 | ) | 532 | 667 | (20 | ) | ||||||||||||||||||||||
Mortgage banking | 655 | 695 | (6 | ) | 1,296 | 1,537 | (16 | ) | 253 | 655 | (61 | ) | 593 | 1,296 | (54 | ) | ||||||||||||||||||||||
Insurance | 11 | 16 | (31 | ) | 22 | 44 | (50 | ) | ||||||||||||||||||||||||||||||
Net (losses) gains from trading activities | (11 | ) | 24 | NM | (6 | ) | 23 | NM | ||||||||||||||||||||||||||||||
Net gains (losses) on debt securities | 15 | (2 | ) | 850 | 52 | (2 | ) | NM | ||||||||||||||||||||||||||||||
Net gains from equity securities (3) | 471 | 409 | 15 | 1,072 | 1,093 | (2 | ) | |||||||||||||||||||||||||||||||
Other income of the segment | 969 | 749 | 29 | 1,737 | 1,343 | 29 | ||||||||||||||||||||||||||||||||
Net gains (losses) from trading activities | 6 | (11 | ) | 155 | 35 | (6 | ) | 683 | ||||||||||||||||||||||||||||||
Net gains on debt securities | 123 | 15 | 720 | 317 | 52 | 510 | ||||||||||||||||||||||||||||||||
Net gains (losses) from equity securities (3) | 388 | 471 | (18 | ) | (640 | ) | 1,072 | NM | ||||||||||||||||||||||||||||||
Other (4) | 359 | 980 | (63 | ) | 1,126 | 1,759 | (36 | ) | ||||||||||||||||||||||||||||||
Total noninterest income | 4,739 | 4,460 | 6 | 9,241 | 9,095 | 2 | 3,067 | 4,739 | (35 | ) | 5,776 | 9,241 | (37 | ) | ||||||||||||||||||||||||
Total revenue | 11,805 | 11,806 | — | 23,555 | 23,636 | — | 8,766 | 11,805 | (26 | ) | 18,262 | 23,555 | (22 | ) | ||||||||||||||||||||||||
Provision for credit losses | 479 | 484 | (1 | ) | 1,189 | 702 | 69 | 3,378 | 479 | 605 | 5,096 | 1,189 | 329 | |||||||||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||||||||||||||
Personnel expense | 5,436 | 5,400 | 1 | 11,417 | 10,911 | 5 | ||||||||||||||||||||||||||||||||
Equipment | 584 | 525 | 11 | 1,225 | 1,121 | 9 | ||||||||||||||||||||||||||||||||
Net occupancy | 542 | 542 | — | 1,084 | 1,076 | 1 | ||||||||||||||||||||||||||||||||
Personnel | 5,992 | 5,436 | 10 | 11,447 | 11,417 | — | ||||||||||||||||||||||||||||||||
Technology and equipment (4) | 648 | 614 | 6 | 1,335 | 1,283 | 4 | ||||||||||||||||||||||||||||||||
Occupancy | 685 | 542 | 26 | 1,214 | 1,084 | 12 | ||||||||||||||||||||||||||||||||
Core deposit and other intangibles | — | 102 | (100 | ) | 1 | 203 | (100 | ) | — | — | — | 1 | 1 | — | ||||||||||||||||||||||||
FDIC and other deposit assessments | 94 | 155 | (39 | ) | 200 | 336 | (40 | ) | 112 | 94 | 19 | 180 | 200 | (10 | ) | |||||||||||||||||||||||
Outside professional services | 387 | 430 | (10 | ) | 703 | 827 | (15 | ) | 460 | 387 | 19 | 902 | 703 | 28 | ||||||||||||||||||||||||
Operating losses | 197 | 287 | (31 | ) | 416 | 1,727 | (76 | ) | 1,037 | 197 | 426 | 1,491 | 416 | 258 | ||||||||||||||||||||||||
Other expense of the segment | (28 | ) | (151 | ) | 81 | (145 | ) | (209 | ) | 31 | ||||||||||||||||||||||||||||
Other (4) | (588 | ) | (58 | ) | NM | (1,108 | ) | (203 | ) | NM | ||||||||||||||||||||||||||||
Total noninterest expense | 7,212 | 7,290 | (1 | ) | 14,901 | 15,992 | (7 | ) | 8,346 | 7,212 | 16 | 15,462 | 14,901 | 4 | ||||||||||||||||||||||||
Income before income tax expense and noncontrolling interests | 4,114 | 4,032 | 2 | 7,465 | 6,942 | 8 | ||||||||||||||||||||||||||||||||
Income tax expense | 838 | 1,413 | (41 | ) | 1,262 | 2,222 | (43 | ) | ||||||||||||||||||||||||||||||
Net income from noncontrolling interests (4) | 129 | 123 | 5 | 233 | 311 | (25 | ) | |||||||||||||||||||||||||||||||
Net income | $ | 3,147 | 2,496 | 26 | $ | 5,970 | 4,409 | 35 | ||||||||||||||||||||||||||||||
Income (loss) before income tax expense and noncontrolling interests | (2,958 | ) | 4,114 | NM | (2,296 | ) | 7,465 | NM | ||||||||||||||||||||||||||||||
Income tax expense (benefit) | (2,666 | ) | 838 | NM | (2,022 | ) | 1,262 | NM | ||||||||||||||||||||||||||||||
Less: Net income (loss) from noncontrolling interests (5) | 39 | 129 | (70 | ) | (98 | ) | 233 | NM | ||||||||||||||||||||||||||||||
Net income (loss) | $ | (331 | ) | 3,147 | NM | $ | (176 | ) | 5,970 | NM | ||||||||||||||||||||||||||||
Average loans | $ | 457.7 | 463.8 | (1 | ) | $ | 457.9 | 467.1 | (2 | ) | $ | 449.3 | 457.7 | (2 | ) | $ | 456.0 | 457.9 | — | |||||||||||||||||||
Average deposits | 777.6 | 760.6 | 2 | 771.6 | 754.1 | 2 | 848.5 | 777.6 | 9 | 823.5 | 771.6 | 7 |
(1) | Represents income on products and services for WIM customers served through Community Banking distribution channels which is |
(2) | Includes |
(3) |
(4) | In second quarter 2020, insurance income was reclassified to other noninterest income, and expenses for cloud computing services were reclassified from contract services expense (within other noninterest expense) to technology and equipment expense. Prior period balances have been revised to conform with the current period presentation. |
(5) | Reflects results attributable to noncontrolling interests predominantly associated with the Company’s consolidated venture capital investments. |
Quarter ended June 30, | Six months ended June 30, | Quarter ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||
(in millions, except average balances which are in billions) | 2019 | 2018 | % Change | 2019 | 2018 | % Change | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||
Net interest income | $ | 4,535 | 4,693 | (3 | )% | $ | 9,069 | 9,225 | (2 | )% | $ | 3,891 | 4,535 | (14 | )% | $ | 8,027 | 9,069 | (11 | )% | ||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 502 | 530 | (5 | ) | 985 | 1,064 | (7 | ) | 511 | 502 | 2 | 1,019 | 985 | 3 | ||||||||||||||||||||||||
Trust and investment fees: | ||||||||||||||||||||||||||||||||||||||
Brokerage advisory, commissions and other fees | 74 | 78 | (5 | ) | 152 | 145 | 5 | 79 | 74 | 7 | 169 | 152 | 11 | |||||||||||||||||||||||||
Trust and investment management | 117 | 110 | 6 | 231 | 223 | 4 | 130 | 117 | 11 | 261 | 231 | 13 | ||||||||||||||||||||||||||
Investment banking | 475 | 485 | (2 | ) | 887 | 925 | (4 | ) | 614 | 475 | 29 | 1,104 | 887 | 24 | ||||||||||||||||||||||||
Total trust and investment fees | 666 | 673 | (1 | ) | 1,270 | 1,293 | (2 | ) | 823 | 666 | 24 | 1,534 | 1,270 | 21 | ||||||||||||||||||||||||
Card fees | 95 | 96 | (1 | ) | 181 | 183 | (1 | ) | 65 | 95 | (32 | ) | 148 | 181 | (18 | ) | ||||||||||||||||||||||
Other fees | 464 | 496 | (6 | ) | 901 | 968 | (7 | ) | 330 | 464 | (29 | ) | 676 | 901 | (25 | ) | ||||||||||||||||||||||
Mortgage banking | 104 | 75 | 39 | 172 | 168 | 2 | 65 | 104 | (38 | ) | 105 | 172 | (39 | ) | ||||||||||||||||||||||||
Insurance | 75 | 78 | (4 | ) | 153 | 157 | (3 | ) | ||||||||||||||||||||||||||||||
Net gains from trading activities | 226 | 154 | 47 | 559 | 379 | 47 | 794 | 226 | 251 | 835 | 559 | 49 | ||||||||||||||||||||||||||
Net gains on debt securities | 5 | 42 | (88 | ) | 93 | 43 | 116 | 89 | 5 | NM | 132 | 93 | 42 | |||||||||||||||||||||||||
Net gains from equity securities | 116 | 89 | 30 | 193 | 182 | 6 | ||||||||||||||||||||||||||||||||
Other income of the segment | 277 | 271 | 2 | 600 | 814 | (26 | ) | |||||||||||||||||||||||||||||||
Net gains (losses) from equity securities | (16 | ) | 116 | NM | (111 | ) | 193 | NM | ||||||||||||||||||||||||||||||
Other (1) | 11 | 352 | (97 | ) | 15 | 753 | (98 | ) | ||||||||||||||||||||||||||||||
Total noninterest income | 2,530 | 2,504 | 1 | 5,107 | 5,251 | (3 | ) | 2,672 | 2,530 | 6 | 4,353 | 5,107 | (15 | ) | ||||||||||||||||||||||||
Total revenue | 7,065 | 7,197 | (2 | ) | 14,176 | 14,476 | (2 | ) | 6,563 | 7,065 | (7 | ) | 12,380 | 14,176 | (13 | ) | ||||||||||||||||||||||
Provision (reversal of provision) for credit losses | 28 | (36 | ) | 178 | 162 | (56 | ) | 389 | ||||||||||||||||||||||||||||||
Provision for credit losses | 6,028 | 28 | NM | 8,316 | 162 | NM | ||||||||||||||||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||||||||||||||
Personnel expense | 1,384 | 1,386 | — | 2,894 | 2,922 | (1 | ) | |||||||||||||||||||||||||||||||
Equipment | 10 | 14 | (29 | ) | 19 | 26 | (27 | ) | ||||||||||||||||||||||||||||||
Net occupancy | 96 | 100 | (4 | ) | 191 | 200 | (5 | ) | ||||||||||||||||||||||||||||||
Personnel | 1,311 | 1,384 | (5 | ) | 2,694 | 2,894 | (7 | ) | ||||||||||||||||||||||||||||||
Technology and equipment (1) | 8 | 13 | (38 | ) | 19 | 26 | (27 | ) | ||||||||||||||||||||||||||||||
Occupancy | 106 | 96 | 10 | 210 | 191 | 10 | ||||||||||||||||||||||||||||||||
Core deposit and other intangibles | 23 | 94 | (76 | ) | 47 | 189 | (75 | ) | 19 | 23 | (17 | ) | 38 | 47 | (19 | ) | ||||||||||||||||||||||
FDIC and other deposit assessments | 44 | 122 | (64 | ) | 89 | 244 | (64 | ) | 45 | 44 | 2 | 89 | 89 | — | ||||||||||||||||||||||||
Outside professional services | 231 | 255 | (9 | ) | 415 | 488 | (15 | ) | 124 | 231 | (46 | ) | 225 | 415 | (46 | ) | ||||||||||||||||||||||
Operating losses | 10 | 208 | (95 | ) | 11 | 216 | (95 | ) | 173 | 10 | NM | 177 | 11 | NM | ||||||||||||||||||||||||
Other expense of the segment | 2,084 | 2,040 | 2 | 4,054 | 3,912 | 4 | ||||||||||||||||||||||||||||||||
Other (1) | 2,177 | 2,081 | 5 | 4,274 | 4,047 | 6 | ||||||||||||||||||||||||||||||||
Total noninterest expense | 3,882 | 4,219 | (8 | ) | 7,720 | 8,197 | (6 | ) | 3,963 | 3,882 | 2 | 7,726 | 7,720 | — | ||||||||||||||||||||||||
Income before income tax expense and noncontrolling interests | 3,155 | 3,014 | 5 | 6,294 | 6,335 | (1 | ) | |||||||||||||||||||||||||||||||
Income tax expense | 365 | 379 | (4 | ) | 734 | 827 | (11 | ) | ||||||||||||||||||||||||||||||
Net loss from noncontrolling interests | 1 | — | NM | 1 | (2 | ) | 150 | |||||||||||||||||||||||||||||||
Net income | $ | 2,789 | 2,635 | 6 | $ | 5,559 | 5,510 | 1 | ||||||||||||||||||||||||||||||
Income (loss) before income tax expense (benefit) and noncontrolling interests | (3,428 | ) | 3,155 | NM | (3,662 | ) | 6,294 | NM | ||||||||||||||||||||||||||||||
Income tax expense (benefit) (2) | (1,286 | ) | 365 | NM | (1,832 | ) | 734 | NM | ||||||||||||||||||||||||||||||
Less: Net income from noncontrolling interests | 1 | 1 | — | 2 | 1 | 100 | ||||||||||||||||||||||||||||||||
Net income (loss) | $ | (2,143 | ) | 2,789 | NM | $ | (1,832 | ) | 5,559 | NM | ||||||||||||||||||||||||||||
Average loans | $ | 474.0 | 464.7 | 2 | $ | 475.2 | 464.9 | 2 | $ | 504.3 | 474.0 | 6 | $ | 494.4 | 475.2 | 4 | ||||||||||||||||||||||
Average deposits | 410.4 | 414.0 | (1 | ) | 410.1 | 429.9 | (5 | ) | 441.2 | 410.4 | 8 | 448.9 | 410.1 | 9 |
(1) | In second quarter 2020, insurance income was reclassified to other noninterest income, and expenses for cloud computing services were reclassified from contract services expense (within other noninterest expense) to technology and equipment expense. Prior period balances have been revised to conform with the current period presentation. |
(2) | Income tax expense for our Wholesale Banking operating segment included income tax credits related to low-income housing and renewable energy investments of $465 million and $956 million for the second quarter and first half of 2020, respectively, and $423 million and $850 million for the second quarter and first half of 2019, respectively. |
Quarter ended June 30, | Six months ended June 30, | Quarter ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||
(in millions, except average balances which are in billions) | 2019 | 2018 | % Change | 2019 | 2018 | % Change | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||
Net interest income | $ | 1,037 | 1,111 | (7 | )% | $ | 2,138 | 2,223 | (4 | )% | $ | 736 | 1,037 | (29 | )% | $ | 1,603 | 2,138 | (25 | )% | ||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 4 | 5 | (20 | ) | 8 | 9 | (11 | ) | 4 | 4 | — | 9 | 8 | 13 | ||||||||||||||||||||||||
Trust and investment fees: | ||||||||||||||||||||||||||||||||||||||
Brokerage advisory, commissions and other fees | 2,248 | 2,284 | (2 | ) | 4,372 | 4,628 | (6 | ) | 2,039 | 2,248 | (9 | ) | 4,436 | 4,372 | 1 | |||||||||||||||||||||||
Trust and investment management | 687 | 731 | (6 | ) | 1,363 | 1,474 | (8 | ) | 568 | 687 | (17 | ) | 1,150 | 1,363 | (16 | ) | ||||||||||||||||||||||
Investment banking | (1 | ) | 1 | NM | 4 | 1 | 300 | 1 | (1 | ) | 200 | 2 | 4 | (50 | ) | |||||||||||||||||||||||
Total trust and investment fees | 2,934 | 3,016 | (3 | ) | 5,739 | 6,103 | (6 | ) | 2,608 | 2,934 | (11 | ) | 5,588 | 5,739 | (3 | ) | ||||||||||||||||||||||
Card fees | 2 | 2 | — | 3 | 3 | — | 1 | 2 | (50 | ) | 2 | 3 | (33 | ) | ||||||||||||||||||||||||
Other fees | 4 | 5 | (20 | ) | 8 | 9 | (11 | ) | 4 | 4 | — | 8 | 8 | — | ||||||||||||||||||||||||
Mortgage banking | (3 | ) | (2 | ) | (50 | ) | (6 | ) | (5 | ) | (20 | ) | (3 | ) | (3 | ) | — | (6 | ) | (6 | ) | — | ||||||||||||||||
Insurance | 17 | 18 | (6 | ) | 34 | 36 | (6 | ) | ||||||||||||||||||||||||||||||
Net gains from trading activities | 13 | 13 | — | 32 | 32 | — | ||||||||||||||||||||||||||||||||
Net gains (losses) from trading activities | 6 | 13 | (54 | ) | (1 | ) | 32 | NM | ||||||||||||||||||||||||||||||
Net gains on debt securities | — | 1 | (100 | ) | — | 1 | (100 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||
Net gains (losses) from equity securities | 35 | (203 | ) | 117 | 171 | (197 | ) | 187 | 161 | 35 | 360 | (117 | ) | 171 | NM | |||||||||||||||||||||||
Other income of the segment | 7 | (15 | ) | 147 | 2 | (21 | ) | 110 | ||||||||||||||||||||||||||||||
Other (1) | 143 | 24 | 496 | 289 | 36 | 703 | ||||||||||||||||||||||||||||||||
Total noninterest income | 3,013 | 2,840 | 6 | 5,991 | 5,970 | — | 2,924 | 3,013 | (3 | ) | 5,772 | 5,991 | (4 | ) | ||||||||||||||||||||||||
Total revenue | 4,050 | 3,951 | 3 | 8,129 | 8,193 | (1 | ) | 3,660 | 4,050 | (10 | ) | 7,375 | 8,129 | (9 | ) | |||||||||||||||||||||||
Provision (reversal of provision) for credit losses | (1 | ) | (2 | ) | 50 | 3 | (8 | ) | 138 | 257 | (1 | ) | NM | 265 | 3 | NM | ||||||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||||||||||||||
Personnel expense | 2,112 | 2,037 | 4 | 4,309 | 4,202 | 3 | ||||||||||||||||||||||||||||||||
Equipment | 14 | 11 | 27 | 25 | 21 | 19 | ||||||||||||||||||||||||||||||||
Net occupancy | 112 | 110 | 2 | 224 | 219 | 2 | ||||||||||||||||||||||||||||||||
Personnel | 2,021 | 2,112 | (4 | ) | 3,971 | 4,309 | (8 | ) | ||||||||||||||||||||||||||||||
Technology and equipment (1) | (94 | ) | 15 | NM | (86 | ) | 27 | NM | ||||||||||||||||||||||||||||||
Occupancy | 111 | 112 | (1 | ) | 224 | 224 | — | |||||||||||||||||||||||||||||||
Core deposit and other intangibles | 4 | 69 | (94 | ) | 7 | 138 | (95 | ) | 3 | 4 | (25 | ) | 6 | 7 | (14 | ) | ||||||||||||||||||||||
FDIC and other deposit assessments | 12 | 34 | (65 | ) | 26 | 70 | (63 | ) | 14 | 12 | 17 | 26 | 26 | — | ||||||||||||||||||||||||
Outside professional services | 210 | 202 | 4 | 394 | 400 | (2 | ) | 182 | 210 | (13 | ) | 373 | 394 | (5 | ) | |||||||||||||||||||||||
Operating losses | 43 | 127 | (66 | ) | 64 | 149 | (57 | ) | 15 | 43 | (65 | ) | 24 | 64 | (63 | ) | ||||||||||||||||||||||
Other expense of the segment | 739 | 771 | (4 | ) | 1,500 | 1,452 | 3 | |||||||||||||||||||||||||||||||
Other (1) | 901 | 738 | 22 | 1,718 | 1,498 | 15 | ||||||||||||||||||||||||||||||||
Total noninterest expense | 3,246 | 3,361 | (3 | ) | 6,549 | 6,651 | (2 | ) | 3,153 | 3,246 | (3 | ) | 6,256 | 6,549 | (4 | ) | ||||||||||||||||||||||
Income before income tax expense and noncontrolling interests | 805 | 592 | 36 | 1,577 | 1,550 | 2 | 250 | 805 | (69 | ) | 854 | 1,577 | (46 | ) | ||||||||||||||||||||||||
Income tax expense | 201 | 147 | 37 | 393 | 386 | 2 | 63 | 201 | (69 | ) | 216 | 393 | (45 | ) | ||||||||||||||||||||||||
Net income from noncontrolling interests | 2 | — | NM | 5 | 5 | — | ||||||||||||||||||||||||||||||||
Less: Net income (loss) from noncontrolling interests | 7 | 2 | 250 | (5 | ) | 5 | NM | |||||||||||||||||||||||||||||||
Net income | $ | 602 | 445 | 35 | $ | 1,179 | 1,159 | 2 | $ | 180 | 602 | (70 | ) | $ | 643 | 1,179 | (45 | ) | ||||||||||||||||||||
Average loans | $ | 75.0 | 74.7 | — | $ | 74.7 | 74.3 | 1 | $ | 78.7 | 75.0 | 5 | $ | 78.6 | 74.7 | 5 | ||||||||||||||||||||||
Average deposits | 143.5 | 167.1 | (14 | ) | 148.3 | 172.5 | (14 | ) | 171.8 | 143.5 | 20 | 161.6 | 148.3 | 9 |
(1) | In second quarter 2020, insurance income was reclassified to other noninterest income, and expenses for cloud computing services were reclassified from contract services expense (within other noninterest expense) to technology and equipment expense. Prior period balances have been revised to conform with the current period presentation. |
June 30, | June 30, | |||||||||||
($ in billions) | 2019 | 2018 | 2020 | 2019 | ||||||||
Retail brokerage client assets | $ | 1,620.5 | 1,623.7 | $ | 1,561.2 | 1,620.5 | ||||||
Advisory account client assets | 561.3 | 542.6 | 569.4 | 561.3 | ||||||||
Advisory account client assets as a percentage of total client assets | 35 | % | 33 | 36 | % | 35 |
Quarter ended | Six months ended | Quarter ended | Six months ended | |||||||||||||||||||||||||||||||||||||||||||
(in billions) | Balance, beginning of period | Inflows (1) | Outflows (2) | Market impact (3) | Balance, end of period | Balance, beginning of period | Inflows (1) | Outflows (2) | Market impact (3) | Balance, end of period | Balance, beginning of period | Inflows (1) | Outflows (2) | Market impact (3) | Balance, end of period | Balance, beginning of period | Inflows (1) | Outflows (2) | Market impact (3) | Balance, end of period | ||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Client directed (4) | $ | 142.7 | 7.3 | (7.8 | ) | 20.0 | 162.2 | $ | 169.4 | 17.4 | (17.4 | ) | (7.2 | ) | 162.2 | |||||||||||||||||||||||||||||||
Financial advisor directed (5) | 152.4 | 8.4 | (6.6 | ) | 22.6 | 176.8 | 176.3 | 19.1 | (15.2 | ) | (3.4 | ) | 176.8 | |||||||||||||||||||||||||||||||||
Separate accounts (6) | 134.2 | 5.0 | (5.8 | ) | 18.1 | 151.5 | 160.1 | 11.8 | (14.3 | ) | (6.1 | ) | 151.5 | |||||||||||||||||||||||||||||||||
Mutual fund advisory (7) | 69.5 | 2.2 | (2.7 | ) | 9.9 | 78.9 | 83.7 | 5.4 | (7.2 | ) | (3.0 | ) | 78.9 | |||||||||||||||||||||||||||||||||
Total advisory client assets | $ | 498.8 | 22.9 | (22.9 | ) | 70.6 | 569.4 | $ | 589.5 | 53.7 | (54.1 | ) | (19.7 | ) | 569.4 | |||||||||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Client directed (4) | $ | 163.6 | 8.6 | (9.7 | ) | 3.7 | 166.2 | $ | 151.5 | 16.5 | (19.0 | ) | 17.2 | 166.2 | $ | 163.6 | 8.6 | (9.7 | ) | 3.7 | 166.2 | $ | 151.5 | 16.5 | (19.0 | ) | 17.2 | 166.2 | ||||||||||||||||||
Financial advisor directed (5) | 156.9 | 8.6 | (8.7 | ) | 6.4 | 163.2 | 141.9 | 16.1 | (16.4 | ) | 21.6 | 163.2 | 156.9 | 8.6 | (8.7 | ) | 6.4 | 163.2 | 141.9 | 16.1 | (16.4 | ) | 21.6 | 163.2 | ||||||||||||||||||||||
Separate accounts (6) | 148.3 | 6.2 | (8.0 | ) | 5.4 | 151.9 | 136.4 | 11.8 | (14.9 | ) | 18.6 | 151.9 | 148.3 | 6.2 | (8.0 | ) | 5.4 | 151.9 | 136.4 | 11.8 | (14.9 | ) | 18.6 | 151.9 | ||||||||||||||||||||||
Mutual fund advisory (7) | 77.9 | 2.9 | (3.5 | ) | 2.7 | 80.0 | 71.3 | 5.7 | (6.7 | ) | 9.7 | 80.0 | 77.9 | 2.9 | (3.5 | ) | 2.7 | 80.0 | 71.3 | 5.7 | (6.7 | ) | 9.7 | 80.0 | ||||||||||||||||||||||
Total advisory client assets | $ | 546.7 | 26.3 | (29.9 | ) | 18.2 | 561.3 | $ | 501.1 | 50.1 | (57.0 | ) | 67.1 | 561.3 | $ | 546.7 | 26.3 | (29.9 | ) | 18.2 | 561.3 | $ | 501.1 | 50.1 | (57.0 | ) | 67.1 | 561.3 | ||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||
Client directed (4) | $ | 168.4 | 8.2 | (11.1 | ) | 2.0 | 167.5 | $ | 170.9 | 17.6 | (20.3 | ) | (0.7 | ) | 167.5 | |||||||||||||||||||||||||||||||
Financial advisor directed (5) | 148.6 | 7.5 | (9.5 | ) | 3.4 | 150.0 | 147.0 | 15.6 | (16.5 | ) | 3.9 | 150.0 | ||||||||||||||||||||||||||||||||||
Separate accounts (6) | 146.6 | 5.6 | (7.0 | ) | 2.0 | 147.2 | 149.1 | 12.4 | (14.3 | ) | — | 147.2 | ||||||||||||||||||||||||||||||||||
Mutual fund advisory (7) | 76.8 | 3.2 | (3.3 | ) | 1.2 | 77.9 | 75.8 | 7.2 | (6.3 | ) | 1.2 | 77.9 | ||||||||||||||||||||||||||||||||||
Total advisory client assets | $ | 540.4 | 24.5 | (30.9 | ) | 8.6 | 542.6 | $ | 542.8 | 52.8 | (57.4 | ) | 4.4 | 542.6 |
(1) | Inflows include new advisory account assets, contributions, dividends and interest. |
(2) | Outflows include closed advisory account assets, withdrawals, and client management fees. |
(3) | Market impact reflects gains and losses on portfolio investments. |
(4) | Investment advice and other services are provided to client, but decisions are made by the client and the fees earned are based on a percentage of the advisory account assets, not the number and size of transactions executed by the client. |
(5) | Professionally managed portfolios with fees earned based on respective strategies and as a percentage of certain client assets. |
(6) | Professional advisory portfolios managed by Wells Fargo Asset Management or third-party asset managers. Fees are earned based on a percentage of certain client assets. |
(7) | Program with portfolios constructed of load-waived, no-load and institutional share class mutual funds. Fees are earned based on a percentage of certain client assets. |
Quarter ended | Six months ended | Quarter ended | Six months ended | |||||||||||||||||||||||||||||||||||||||||||
(in billions) | Balance, beginning of period | Inflows (1) | Outflows (2) | Market impact (3) | Balance, end of period | Balance, beginning of period | Inflows (1) | Outflows (2) | Market impact (3) | Balance, end of period | Balance, beginning of period | Inflows (1) | Outflows (2) | Market impact (3) | Balance, end of period | Balance, beginning of period | Inflows (1) | Outflows (2) | Market impact (3) | Balance, end of period | ||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Assets managed by WFAM (4): | ||||||||||||||||||||||||||||||||||||||||||||||
Money market funds (5) | $ | 166.2 | 35.7 | — | — | 201.9 | $ | 130.6 | 71.3 | — | — | 201.9 | ||||||||||||||||||||||||||||||||||
Other assets managed | 351.6 | 26.9 | (26.5 | ) | 24.4 | 376.4 | 378.2 | 53.1 | (55.1 | ) | 0.2 | 376.4 | ||||||||||||||||||||||||||||||||||
Assets managed by Wealth and IRT (6) | 162.8 | 8.5 | (10.6 | ) | 15.8 | 176.5 | 187.4 | 16.3 | (21.2 | ) | (6.0 | ) | 176.5 | |||||||||||||||||||||||||||||||||
Total assets under management | $ | 680.6 | 71.1 | (37.1 | ) | 40.2 | 754.8 | $ | 696.2 | 140.7 | (76.3 | ) | (5.8 | ) | 754.8 | |||||||||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Assets managed by WFAM (4): | ||||||||||||||||||||||||||||||||||||||||||||||
Money market funds (5) | $ | 109.5 | 10.3 | — | — | 119.8 | $ | 112.4 | 7.4 | — | — | 119.8 | $ | 109.5 | 10.3 | — | — | 119.8 | $ | 112.4 | 7.4 | — | — | 119.8 | ||||||||||||||||||||||
Other assets managed | 367.0 | 22.2 | (23.0 | ) | 9.1 | 375.3 | 353.5 | 41.5 | (44.9 | ) | 25.2 | 375.3 | 367.0 | 22.2 | (23.0 | ) | 9.1 | 375.3 | 353.5 | 41.5 | (44.9 | ) | 25.2 | 375.3 | ||||||||||||||||||||||
Assets managed by Wealth and Retirement (6) | 181.4 | 8.2 | (11.2 | ) | 3.5 | 181.9 | 170.7 | 17.4 | (21.6 | ) | 15.4 | 181.9 | ||||||||||||||||||||||||||||||||||
Assets managed by Wealth and IRT (6) | 181.4 | 8.2 | (11.2 | ) | 3.5 | 181.9 | 170.7 | 17.4 | (21.6 | ) | 15.4 | 181.9 | ||||||||||||||||||||||||||||||||||
Total assets under management | $ | 657.9 | 40.7 | (34.2 | ) | 12.6 | 677.0 | $ | 636.6 | 66.3 | (66.5 | ) | 40.6 | 677.0 | $ | 657.9 | 40.7 | (34.2 | ) | 12.6 | 677.0 | $ | 636.6 | 66.3 | (66.5 | ) | 40.6 | 677.0 | ||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||
Assets managed by WFAM (4): | ||||||||||||||||||||||||||||||||||||||||||||||
Money market funds (5) | $ | 105.0 | 2.7 | — | — | 107.7 | $ | 108.2 | — | (0.5 | ) | — | 107.7 | |||||||||||||||||||||||||||||||||
Other assets managed | 391.8 | 20.9 | (27.3 | ) | 1.1 | 386.5 | 395.7 | 46.6 | (56.5 | ) | 0.7 | 386.5 | ||||||||||||||||||||||||||||||||||
Assets managed by Wealth and Retirement (6) | 183.3 | 9.1 | (10.3 | ) | 1.1 | 183.2 | 186.2 | 19.5 | (21.7 | ) | (0.8 | ) | 183.2 | |||||||||||||||||||||||||||||||||
Total assets under management | $ | 680.1 | 32.7 | (37.6 | ) | 2.2 | 677.4 | $ | 690.1 | 66.1 | (78.7 | ) | (0.1 | ) | 677.4 |
(1) | Inflows include new managed account assets, contributions, dividends and interest. |
(2) | Outflows include closed managed account assets, withdrawals and client management fees. |
(3) | Market impact reflects gains and losses on portfolio investments. |
(4) | Assets managed by WFAM consist of equity, alternative, balanced, fixed income, money market, and stable value, and include client assets that are managed or sub-advised on behalf of other Wells Fargo lines of business. |
(5) | Money Market funds activity is presented on a net inflow or net outflow basis, because the gross flows are not meaningful nor used by management as an indicator of performance. |
(6) | Includes |
Balance Sheet Analysis |
June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||
(in millions) | Amortized cost | Net unrealized gain (loss) | Fair value | Amortized cost | Net unrealized gain (loss) | Fair value | Amortized cost, net (1) | Net unrealized gain (loss) | Fair value | Amortized cost | Net unrealized gain (loss) | Fair value | ||||||||||||||||||||||||
Available-for-sale | 263,458 | 2,525 | 265,983 | 272,471 | (2,559 | ) | 269,912 | 224,467 | 4,432 | 228,899 | 260,060 | 3,399 | 263,459 | |||||||||||||||||||||||
Held-to-maturity | 145,876 | 1,988 | 147,864 | 144,788 | (2,673 | ) | 142,115 | 169,002 | 7,880 | 176,882 | 153,933 | 2,927 | 156,860 | |||||||||||||||||||||||
Total | $ | 409,334 | 4,513 | 413,847 | 417,259 | (5,232 | ) | 412,027 | $ | 393,469 | 12,312 | 405,781 | 413,993 | 6,326 | 420,319 |
(1) | Represents amortized cost of the securities, net of the allowance for credit losses, of $114 million related to available-for-sale debt securities and $20 million related to held-to-maturity debt securities at June 30, 2020. The allowance for credit losses related to available-for-sale and held-to-maturity debt securities was $0 at December 31, 2019, due to our adoption of CECL on January 1, 2020. For more information, see Note 1 (Summary of Significant Accounting Policies) to Financial Statements in this Report. |
(2) | Available-for-sale debt securities are carried on the balance sheet at fair |
(3) | Held-to-maturity debt securities are carried on the balance sheet at amortized |
(in billions) | Fair value | Net unrealized gain (loss) | Expected remaining maturity (in years) | Fair value | Net unrealized gain (loss) | Expected remaining maturity (in years) | ||||||||||
At June 30, 2019 | ||||||||||||||||
At June 30, 2020 | ||||||||||||||||
Actual | $ | 161.3 | 1.4 | 4.5 | $ | 148.9 | 5.4 | 3.6 | ||||||||
Assuming a 200 basis point: | ||||||||||||||||
Increase in interest rates | 146.0 | (13.9 | ) | 6.8 | 136.0 | (7.5 | ) | 5.5 | ||||||||
Decrease in interest rates | 170.7 | 10.8 | 3.3 | 151.5 | 8.0 | 3.2 |
(in millions) | June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | ||||||||
Commercial | $ | 512,245 | 513,405 | $ | 513,187 | 515,719 | ||||||
Consumer | 437,633 | 439,705 | 421,968 | 446,546 | ||||||||
Total loans | $ | 949,878 | 953,110 | $ | 935,155 | 962,265 | ||||||
Change from prior year-end | $ | (3,232 | ) | (3,660 | ) | $ | (27,110 | ) | 9,155 |
June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||
(in millions) | Within one year | After one year through five years | After five years | Total | Within one year | After one year through five years | After five years | Total | |||||||||||||||||
Selected loan maturities: | |||||||||||||||||||||||||
Commercial and industrial | $ | 109,939 | 210,083 | 28,824 | 348,846 | 109,566 | 213,425 | 27,208 | 350,199 | ||||||||||||||||
Real estate mortgage | 16,089 | 65,324 | 41,595 | 123,008 | 16,413 | 63,648 | 40,953 | 121,014 | |||||||||||||||||
Real estate construction | 9,663 | 10,575 | 829 | 21,067 | 9,958 | 11,343 | 1,195 | 22,496 | |||||||||||||||||
Total selected loans | $ | 135,691 | 285,982 | 71,248 | 492,921 | 135,937 | 288,416 | 69,356 | 493,709 | ||||||||||||||||
Distribution of loans to changes in interest rates: | |||||||||||||||||||||||||
Loans at fixed interest rates | $ | 17,815 | 26,912 | 28,872 | 73,599 | 17,619 | 28,545 | 28,163 | 74,327 | ||||||||||||||||
Loans at floating/variable interest rates | 117,876 | 259,070 | 42,376 | 419,322 | 118,318 | 259,871 | 41,193 | 419,382 | |||||||||||||||||
Total selected loans | $ | 135,691 | 285,982 | 71,248 | 492,921 | 135,937 | 288,416 | 69,356 | 493,709 |
($ in millions) | Jun 30, 2019 | % of total deposits | Dec 31, 2018 | % of total deposits | % Change | Jun 30, 2020 | % of total deposits | Dec 31, 2019 | % of total deposits | % Change | ||||||||||||||||||||||
Noninterest-bearing | $ | 340,813 | 26 | % | $ | 349,534 | 27 | % | (2 | ) | $ | 432,857 | 31 | % | $ | 344,496 | 26 | % | 26 | |||||||||||||
Interest-bearing checking | 54,722 | 4 | 56,797 | 4 | (4 | ) | 54,477 | 4 | 62,814 | 5 | (13 | ) | ||||||||||||||||||||
Market rate and other savings | 713,219 | 56 | 703,338 | 55 | 1 | 809,232 | 57 | 751,080 | 57 | 8 | ||||||||||||||||||||||
Savings certificates | 32,379 | 3 | 22,648 | 2 | 43 | 26,118 | 2 | 31,715 | 2 | (18 | ) | |||||||||||||||||||||
Other time deposits | 93,868 | 7 | 95,602 | 7 | (2 | ) | 53,203 | 4 | 78,609 | 6 | (32 | ) | ||||||||||||||||||||
Deposits in foreign offices (1) | 53,425 | 4 | 58,251 | 5 | (8 | ) | ||||||||||||||||||||||||||
Deposits in non-U.S. offices (1) | 34,824 | 2 | 53,912 | 4 | (35 | ) | ||||||||||||||||||||||||||
Total deposits | $ | 1,288,426 | 100 | % | $ | 1,286,170 | 100 | % | — | $ | 1,410,711 | 100 | % | $ | 1,322,626 | 100 | % | 7 |
(1) | Includes Eurodollar sweep balances of |
June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||
($ in billions) | Total balance | Level 3 (1) | Total balance | Level 3 (1) | Total balance | Level 3 (1) | Total balance | Level 3 (1) | ||||||||||||||||
Assets carried at fair value | $ | 415.1 | 24.9 | 408.4 | 25.3 | $ | 380.5 | 20.4 | 428.6 | 24.3 | ||||||||||||||
As a percentage of total assets | 22 | % | 1 | 22 | 1 | 19 | % | 1 | 22 | 1 | ||||||||||||||
Liabilities carried at fair value | $ | 24.4 | 2.3 | 28.2 | 1.6 | $ | 31.6 | 1.6 | 26.5 | 1.8 | ||||||||||||||
As a percentage of total liabilities | 1 | % | * | 2 | * | 2 | % | * | 2 | * |
(1) | Before derivative netting adjustments. |
Off-Balance Sheet Arrangements |
Risk Management |
(in millions) | Jun 30, 2019 | Dec 31, 2018 | ||||
Commercial: | ||||||
Commercial and industrial | $ | 348,846 | 350,199 | |||
Real estate mortgage | 123,008 | 121,014 | ||||
Real estate construction | 21,067 | 22,496 | ||||
Lease financing | 19,324 | 19,696 | ||||
Total commercial | 512,245 | 513,405 | ||||
Consumer: | ||||||
Real estate 1-4 family first mortgage | 286,427 | 285,065 | ||||
Real estate 1-4 family junior lien mortgage | 32,068 | 34,398 | ||||
Credit card | 38,820 | 39,025 | ||||
Automobile | 45,664 | 45,069 | ||||
Other revolving credit and installment | 34,654 | 36,148 | ||||
Total consumer | 437,633 | 439,705 | ||||
Total loans | $ | 949,878 | 953,110 |
(in millions) | Jun 30, 2020 | Dec 31, 2019 | ||||
Commercial: | ||||||
Commercial and industrial | $ | 350,116 | 354,125 | |||
Real estate mortgage | 123,967 | 121,824 | ||||
Real estate construction | 21,694 | 19,939 | ||||
Lease financing | 17,410 | 19,831 | ||||
Total commercial | 513,187 | 515,719 | ||||
Consumer: | ||||||
Real estate 1-4 family first mortgage | 277,945 | 293,847 | ||||
Real estate 1-4 family junior lien mortgage | 26,839 | 29,509 | ||||
Credit card | 36,018 | 41,013 | ||||
Automobile | 48,808 | 47,873 | ||||
Other revolving credit and installment | 32,358 | 34,304 | ||||
Total consumer | 421,968 | 446,546 | ||||
Total loans | $ | 935,155 | 962,265 |
• | Nonaccrual loans were $ |
• | Net |
• | Loans that are not government insured/guaranteed and 90 days or more past due and still accruing were $ |
• | Our provision for credit losses for loans was $ |
• | The allowance for credit losses for loans totaled $ |
(in millions) | Unpaid principal balance of modified loans (1) | % of loan class (2) | General program description | |||||
Six months ended June 30, 2020 | ||||||||
Commercial: | ||||||||
Commercial and industrial | $ | 20,656 | 6 | % | Initial deferral of scheduled principal and/or interest up to 90 days, with available extensions up to 90 days | |||
Real estate mortgage and construction | 16,229 | 11 | Initial deferral of scheduled principal and/or interest up to 90 days, with available extensions up to 90 days | |||||
Lease financing | 1,287 | 7 | Initial deferral of lease payments up to 90 days, with available extensions up to 90 days | |||||
Total commercial | $ | 38,172 | 7 | % |
(1) | Includes all COVID-related modifications provided since the inception of the loan modification programs in first quarter 2020. COVID-related modifications are at the loan facility level. |
(2) | Based on total loans outstanding at June 30, 2020. |
(in millions) | Unpaid principal balance of modified loans (1) | % of loan class (2) | % current at time of deferral (3) | % with payment during deferral (4) | Unpaid principal balance of modified loans still in deferral period | % of loan class (2) | General program description | |||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||
Consumer: | ||||||||||||||||||
Real estate 1-4 family first mortgage (5) | $ | 38,022 | 14 | % | 79 | 34 | $ | 32,253 | 12 | % | Initial deferral up to 90 days of scheduled principal and interest; with available extensions up to 90 days | |||||||
Real estate 1-4 family junior lien mortgage | 3,123 | 12 | 88 | 62 | 2,812 | 10 | Initial deferral up to 90 days of scheduled principal and interest; with available extensions up to 90 days | |||||||||||
Credit card | 3,173 | 9 | 91 | 48 | 2,616 | 7 | Initial 90 day deferral of minimum payment and waiver of interest and fees; modifications subsequent to June 3, 2020, including extensions, were 60 day deferral of minimum payment only | |||||||||||
Automobile | 6,560 | 13 | 87 | 24 | 4,880 | 10 | Initial 90 day deferral of scheduled principal and interest, with available extensions of 90 days | |||||||||||
Other revolving credit and installment | 1,968 | 6 | 89 | 20 | 1,673 | 5 | Revolving lines: Initial 90 day deferral of minimum payment and waiver of interest and fees; with available extensions of 60 days Installment loans: Initial 90 day deferral of scheduled principal and interest, with available extensions of 90 days | |||||||||||
Total consumer | $ | 52,846 | 13 | % | 82 | 35 | $ | 44,234 | 10 | % |
(1) | Includes all COVID-related modifications provided since the inception of the loan modification programs in first quarter 2020. |
(2) | Based on total loans outstanding at June 30, 2020. |
(3) | Represents loans that were less than 30 days past due at the date of the initial COVID-related modification, based on the outstanding balance of modified loans at June 30, 2020. |
(4) | Represents loans for which at least a partial payment was collected during the deferral period, based on the outstanding balance of modified loans at June 30, 2020. |
(5) | Unpaid principal balance includes approximately $7.4 billion of real estate 1-4 family first mortgage loans insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) that were repurchased from GNMA loan securitization pools. FHA/VA loans are entitled to payment deferrals of scheduled principal and interest up to a total of 12 months. Excluding these loans, the percentage current at time of deferral was 95%. |
June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||
(in millions) | Nonaccrual loans | Total portfolio | % of total loans | Nonaccrual loans | Total portfolio | % of total loans | ||||||||||||||||||||||||||||||||||||||||
($ in millions) | Nonaccrual loans | Loans outstanding | % of total loans | Total commitments (1) | Nonaccrual loans | Loans outstanding | % of total loans | Total commitments (1) | ||||||||||||||||||||||||||||||||||||||
Financials except banks | $ | 160 | 107,292 | 11 | % | $ | 305 | 105,925 | 11 | % | $ | 219 | 112,130 | 12 | % | $ | 197,152 | $ | 112 | 117,312 | 12 | % | $ | 200,848 | ||||||||||||||||||||||
Equipment, machinery and parts manufacturing | 98 | 21,622 | 2 | 41,771 | 36 | 23,457 | 2 | 42,040 | ||||||||||||||||||||||||||||||||||||||
Technology, telecom and media | 46 | 24,648 | 3 | 26 | 25,681 | 3 | 61 | 24,912 | 3 | 54,894 | 28 | 22,447 | 2 | 53,343 | ||||||||||||||||||||||||||||||||
Real estate and construction | 43 | 22,463 | 2 | 31 | 23,380 | 2 | 290 | 25,245 | 3 | 49,925 | 47 | 22,011 | 2 | 48,217 | ||||||||||||||||||||||||||||||||
Equipment, machinery and parts manufacturing | 66 | 22,298 | 2 | 47 | 20,850 | 2 | ||||||||||||||||||||||||||||||||||||||||
Banks | — | 15,548 | 2 | 16,598 | — | 20,070 | 2 | 20,728 | ||||||||||||||||||||||||||||||||||||||
Retail | 88 | 20,351 | 2 | 87 | 19,541 | 2 | 216 | 23,149 | 2 | 43,212 | 105 | 19,923 | 2 | 41,938 | ||||||||||||||||||||||||||||||||
Materials and commodities | 94 | 19,599 | 2 | 136 | 18,688 | 2 | 46 | 15,877 | 2 | 37,877 | 33 | 16,375 | 2 | 39,369 | ||||||||||||||||||||||||||||||||
Banks | — | 17,136 | 2 | — | 18,407 | 2 | ||||||||||||||||||||||||||||||||||||||||
Automobile related | 23 | 16,673 | 2 | 16 | 16,801 | 2 | 24 | 13,103 | 1 | 25,162 | 24 | 15,996 | 2 | 26,310 | ||||||||||||||||||||||||||||||||
Food and beverage manufacturing | 5 | 14,640 | 2 | 48 | 15,448 | 2 | 12 | 13,082 | 1 | 29,284 | 9 | 14,991 | 2 | 29,172 | ||||||||||||||||||||||||||||||||
Health care and pharmaceuticals | 24 | 14,555 | 2 | 124 | 15,529 | 2 | 76 | 17,144 | 2 | 32,481 | 28 | 14,920 | 2 | 30,168 | ||||||||||||||||||||||||||||||||
Oil, gas and pipelines | 1,414 | 12,598 | 1 | 32,679 | 615 | 13,562 | 1 | 35,445 | ||||||||||||||||||||||||||||||||||||||
Entertainment and recreation | 36 | 13,644 | 1 | 33 | 14,045 | 1 | 62 | 11,820 | 1 | 18,134 | 44 | 13,462 | 1 | 19,854 | ||||||||||||||||||||||||||||||||
Oil, gas and pipelines | 636 | 13,562 | 1 | 417 | 12,840 | 1 | ||||||||||||||||||||||||||||||||||||||||
Transportation services | 88 | 11,797 | 1 | 176 | 12,029 | 1 | 319 | 10,849 | 1 | 17,040 | 224 | 10,957 | 1 | 17,660 | ||||||||||||||||||||||||||||||||
Commercial services | 50 | 10,820 | 1 | 48 | 10,591 | 1 | 98 | 12,095 | 1 | 24,548 | 50 | 10,455 | 1 | 22,713 | ||||||||||||||||||||||||||||||||
Agribusiness | 61 | 7,118 | 1 | 46 | 7,996 | 1 | 54 | 7,362 | * | 12,984 | 35 | 7,539 | * | 12,901 | ||||||||||||||||||||||||||||||||
Utilities | 224 | 5,864 | 1 | 6 | 5,756 | 1 | 1 | 6,486 | * | 20,615 | 224 | 5,995 | * | 19,390 | ||||||||||||||||||||||||||||||||
Insurance and fiduciaries | 2 | 6,032 | * | 17,069 | 1 | 5,525 | * | 15,596 | ||||||||||||||||||||||||||||||||||||||
Government and education | 2 | 5,765 | 1 | 3 | 6,160 | 1 | 6 | 5,741 | * | 12,128 | 6 | 5,363 | * | 12,267 | ||||||||||||||||||||||||||||||||
Other (2) | 51 | 19,945 | 2 | 27 | 20,228 | 2 | 36 | 12,731 | 1 | 32,843 | 19 | 13,596 | * | 32,988 | ||||||||||||||||||||||||||||||||
Total | $ | 1,697 | 368,170 | 39 | % | $ | 1,576 | 369,895 | 39 | % | $ | 3,034 | 367,526 | 39 | % | $ | 716,396 | $ | 1,640 | 373,956 | 39 | % | $ | 720,947 |
* | Less than 1%. |
(1) |
(2) | No other single industry had total loans in excess of |
June 30, 2019 | June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate mortgage | Real estate construction | Total | Real estate mortgage | Real estate construction | Total | % of total loans | ||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Nonaccrual loans | Total portfolio | Nonaccrual loans | Total portfolio | Nonaccrual loans | Total portfolio | % of total loans | |||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | Nonaccrual loans | Total portfolio | Nonaccrual loans | Total portfolio | Nonaccrual loans | Total portfolio | % of total loans | |||||||||||||||||||||||||||||||||||||||||||||||
By state: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
California | $ | 142 | 33,152 | 9 | 4,502 | 151 | 37,654 | 4 | % | $ | 149 | 32,164 | 2 | 4,666 | 151 | 36,830 | 4 | % | ||||||||||||||||||||||||||||||||||||
New York | 23 | 11,926 | 2 | 2,387 | 25 | 14,313 | 2 | 96 | 12,952 | 2 | 2,059 | 98 | 15,011 | 2 | ||||||||||||||||||||||||||||||||||||||||
Florida | 19 | 8,078 | 3 | 1,554 | 22 | 9,632 | 1 | 27 | 8,295 | 1 | 1,446 | 28 | 9,741 | 1 | ||||||||||||||||||||||||||||||||||||||||
Texas | 56 | 7,833 | 4 | 1,437 | 60 | 9,270 | 1 | 341 | 8,047 | — | 1,226 | 341 | 9,273 | * | ||||||||||||||||||||||||||||||||||||||||
Washington | 13 | 3,934 | — | 782 | 13 | 4,716 | * | |||||||||||||||||||||||||||||||||||||||||||||||
Georgia | 15 | 4,043 | — | 448 | 15 | 4,491 | * | |||||||||||||||||||||||||||||||||||||||||||||||
North Carolina | 12 | 3,737 | — | 648 | 12 | 4,385 | * | |||||||||||||||||||||||||||||||||||||||||||||||
Arizona | 70 | 4,632 | — | 312 | 70 | 4,944 | 1 | 35 | 3,862 | — | 318 | 35 | 4,180 | * | ||||||||||||||||||||||||||||||||||||||||
North Carolina | 23 | 3,663 | 4 | 904 | 27 | 4,567 | * | |||||||||||||||||||||||||||||||||||||||||||||||
Georgia | 14 | 3,908 | — | 517 | 14 | 4,425 | * | |||||||||||||||||||||||||||||||||||||||||||||||
Washington | 17 | 3,450 | — | 599 | 17 | 4,049 | * | |||||||||||||||||||||||||||||||||||||||||||||||
Illinois | 176 | 3,477 | — | 348 | 176 | 3,825 | * | |||||||||||||||||||||||||||||||||||||||||||||||
Colorado | 16 | 3,300 | — | 587 | 16 | 3,887 | * | |||||||||||||||||||||||||||||||||||||||||||||||
Virginia | 8 | 2,749 | — | 903 | 8 | 3,652 | * | 4 | 3,036 | — | 664 | 4 | 3,700 | * | ||||||||||||||||||||||||||||||||||||||||
Other | 189 | 40,140 | 14 | 7,604 | 203 | 47,744 | (1) | 5 | 509 | 40,597 | 29 | 8,850 | 538 | 49,447 | (1) | 5 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 737 | 123,008 | 36 | 21,067 | 773 | 144,075 | 15 | % | $ | 1,217 | 123,967 | 34 | 21,694 | 1,251 | 145,661 | 16 | % | ||||||||||||||||||||||||||||||||||||
By property: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Office buildings | $ | 152 | 36,237 | 5 | 2,618 | 157 | 38,855 | 4 | % | $ | 160 | 35,280 | 1 | 3,209 | 161 | 38,489 | 4 | % | ||||||||||||||||||||||||||||||||||||
Apartments | 13 | 16,886 | — | 6,937 | 13 | 23,823 | 3 | 11 | 19,284 | — | 7,694 | 11 | 26,978 | 3 | ||||||||||||||||||||||||||||||||||||||||
Industrial/warehouse | 80 | 15,711 | 2 | 1,303 | 82 | 17,014 | 2 | 72 | 16,149 | 1 | 1,674 | 73 | 17,823 | 2 | ||||||||||||||||||||||||||||||||||||||||
Retail (excluding shopping center) | 98 | 15,072 | 10 | 349 | 108 | 15,421 | 2 | 171 | 14,211 | 2 | 181 | 173 | 14,392 | 2 | ||||||||||||||||||||||||||||||||||||||||
Hotel/motel | 170 | 10,637 | — | 1,610 | 170 | 12,247 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
Shopping center | 83 | 10,999 | — | 1,364 | 83 | 12,363 | 1 | 399 | 10,878 | — | 1,055 | 399 | 11,933 | 1 | ||||||||||||||||||||||||||||||||||||||||
Hotel/motel | 86 | 9,711 | — | 1,574 | 86 | 11,285 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
Mixed use properties | 93 | 6,705 | — | 447 | 93 | 7,152 | 1 | 90 | 5,641 | — | 640 | 90 | 6,281 | * | ||||||||||||||||||||||||||||||||||||||||
Institutional | 39 | 3,478 | — | 1,888 | 39 | 5,366 | 1 | 77 | 3,910 | 20 | 2,159 | 97 | 6,069 | * | ||||||||||||||||||||||||||||||||||||||||
Collateral pool | — | 2,428 | — | 7 | — | 2,435 | * | — | 2,336 | — | 202 | — | 2,538 | * | ||||||||||||||||||||||||||||||||||||||||
Agriculture | 80 | 2,419 | — | 7 | 80 | 2,426 | * | 61 | 2,006 | — | 9 | 61 | 2,015 | * | ||||||||||||||||||||||||||||||||||||||||
Other | 13 | 3,362 | 19 | 4,573 | 32 | 7,935 | 1 | 6 | 3,635 | 10 | 3,261 | 16 | 6,896 | * | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 737 | 123,008 | 36 | 21,067 | 773 | 144,075 | 15 | % | $ | 1,217 | 123,967 | 34 | 21,694 | 1,251 | 145,661 | 16 | % |
* | Less than 1%. |
Derivatives and other exposure represents foreign exchange contracts, derivative contracts, securities resale agreements, and securities lending agreements. |
June 30, 2019 | June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Lending | Securities | Derivatives and other | Total exposure | Lending | Securities | Derivatives and other | Total exposure | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Sovereign | Non- sovereign | Sovereign | Non- sovereign | Sovereign | Non- sovereign | Sovereign | Non- sovereign (1) | Total | Sovereign | Non- sovereign | Sovereign | Non- sovereign | Sovereign | Non- sovereign | Sovereign | Non- sovereign (1) | Total | ||||||||||||||||||||||||||||||||||||
Top 20 country exposures: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
United Kingdom | $ | 4,193 | 21,727 | — | 1,552 | — | 266 | 4,193 | 23,545 | 27,738 | $ | 11,579 | 21,649 | — | 1,189 | — | 1,894 | 11,579 | 24,732 | 36,311 | ||||||||||||||||||||||||||||||||||
Canada | 32 | 17,696 | 42 | 258 | — | 112 | 74 | 18,066 | 18,140 | 4 | 16,575 | — | 87 | — | 425 | 4 | 17,087 | 17,091 | ||||||||||||||||||||||||||||||||||||
Cayman Islands | — | 6,598 | — | 43 | — | 134 | — | 6,775 | 6,775 | — | 6,398 | — | — | — | 138 | — | 6,536 | 6,536 | ||||||||||||||||||||||||||||||||||||
Ireland | 62 | 4,464 | — | 143 | — | 163 | 62 | 4,770 | 4,832 | 1,217 | 4,873 | — | 168 | — | 117 | 1,217 | 5,158 | 6,375 | ||||||||||||||||||||||||||||||||||||
Japan | 19 | 1,049 | 4,535 | 236 | — | 28 | 4,554 | 1,313 | 5,867 | |||||||||||||||||||||||||||||||||||||||||||||
Luxembourg | — | 3,745 | — | 102 | — | 64 | — | 3,911 | 3,911 | |||||||||||||||||||||||||||||||||||||||||||||
Guernsey | — | 3,522 | — | 3 | — | 16 | — | 3,541 | 3,541 | |||||||||||||||||||||||||||||||||||||||||||||
China | — | 2,838 | (14 | ) | 327 | 49 | 53 | 35 | 3,218 | 3,253 | ||||||||||||||||||||||||||||||||||||||||||||
Bermuda | — | 3,634 | — | 115 | — | 73 | — | 3,822 | 3,822 | — | 3,034 | — | 73 | — | 56 | — | 3,163 | 3,163 | ||||||||||||||||||||||||||||||||||||
Germany | — | 2,621 | — | 179 | 6 | 60 | 6 | 2,860 | 2,866 | |||||||||||||||||||||||||||||||||||||||||||||
Netherlands | — | 2,744 | 95 | 337 | — | 32 | 95 | 3,113 | 3,208 | — | 2,382 | — | 205 | — | 272 | — | 2,859 | 2,859 | ||||||||||||||||||||||||||||||||||||
Luxembourg | — | 2,473 | — | 583 | — | 32 | — | 3,088 | 3,088 | |||||||||||||||||||||||||||||||||||||||||||||
Germany | — | 2,304 | 19 | 228 | — | 305 | 19 | 2,837 | 2,856 | |||||||||||||||||||||||||||||||||||||||||||||
China | — | 2,345 | 15 | 339 | 15 | 25 | 30 | 2,709 | 2,739 | |||||||||||||||||||||||||||||||||||||||||||||
Guernsey | — | 2,704 | — | — | — | 1 | — | 2,705 | 2,705 | |||||||||||||||||||||||||||||||||||||||||||||
South Korea | — | 2,573 | (5 | ) | 181 | — | 16 | (5 | ) | 2,770 | 2,765 | |||||||||||||||||||||||||||||||||||||||||||
Switzerland | — | 1,924 | — | (79 | ) | — | 121 | — | 1,966 | 1,966 | ||||||||||||||||||||||||||||||||||||||||||||
France | — | 1,999 | — | 67 | 39 | 1 | 39 | 2,067 | 2,106 | — | 1,729 | — | 43 | 20 | 15 | 20 | 1,787 | 1,807 | ||||||||||||||||||||||||||||||||||||
Brazil | — | 1,626 | — | 4 | 5 | 11 | 5 | 1,641 | 1,646 | |||||||||||||||||||||||||||||||||||||||||||||
Chile | — | 1,481 | — | 150 | — | 2 | — | 1,633 | 1,633 | |||||||||||||||||||||||||||||||||||||||||||||
Australia | — | 1,913 | — | 51 | — | 1 | — | 1,965 | 1,965 | — | 1,405 | — | 66 | — | 14 | — | 1,485 | 1,485 | ||||||||||||||||||||||||||||||||||||
Singapore | — | 1,173 | — | 72 | — | 49 | — | 1,294 | 1,294 | |||||||||||||||||||||||||||||||||||||||||||||
India | — | 1,824 | — | 66 | — | — | — | 1,890 | 1,890 | — | 1,185 | — | 94 | — | — | — | 1,279 | 1,279 | ||||||||||||||||||||||||||||||||||||
Chile | 1 | 1,734 | — | (1 | ) | — | 103 | 1 | 1,836 | 1,837 | ||||||||||||||||||||||||||||||||||||||||||||
Brazil | — | 1,772 | — | 2 | 5 | — | 5 | 1,774 | 1,779 | |||||||||||||||||||||||||||||||||||||||||||||
South Korea | — | 1,364 | 1 | 60 | — | 7 | 1 | 1,431 | 1,432 | |||||||||||||||||||||||||||||||||||||||||||||
Virgin Islands (British) | — | 1,276 | — | 45 | — | — | — | 1,321 | 1,321 | |||||||||||||||||||||||||||||||||||||||||||||
Japan | 311 | 1,042 | 3 | (49 | ) | — | 8 | 314 | 1,001 | 1,315 | ||||||||||||||||||||||||||||||||||||||||||||
United Arab Emirates | — | 1,262 | — | 2 | — | — | — | 1,264 | 1,264 | — | 1,029 | — | 3 | — | 2 | — | 1,034 | 1,034 | ||||||||||||||||||||||||||||||||||||
Mexico | — | 1,156 | — | 7 | — | 1 | — | 1,164 | 1,164 | |||||||||||||||||||||||||||||||||||||||||||||
Total top 20 country exposures | $ | 4,599 | 82,031 | 175 | 3,848 | 59 | 1,264 | 4,833 | 87,143 | 91,976 | $ | 12,819 | 82,811 | 4,516 | 3,103 | 80 | 3,353 | 17,415 | 89,267 | 106,682 | ||||||||||||||||||||||||||||||||||
Eurozone exposure: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Eurozone countries included in Top 20 above (2) | $ | 62 | 13,984 | 114 | 1,358 | 39 | 533 | 215 | 15,875 | 16,090 | ||||||||||||||||||||||||||||||||||||||||||||
Belgium | — | 545 | — | (66 | ) | — | 2 | — | 481 | 481 | ||||||||||||||||||||||||||||||||||||||||||||
Spain | — | 405 | — | 25 | — | 1 | — | 431 | 431 | |||||||||||||||||||||||||||||||||||||||||||||
Austria | — | 265 | — | (2 | ) | — | — | — | 263 | 263 | ||||||||||||||||||||||||||||||||||||||||||||
Other Eurozone exposure (3) | — | 218 | — | 88 | — | — | — | 306 | 306 | |||||||||||||||||||||||||||||||||||||||||||||
Total Eurozone exposure | $ | 62 | 15,417 | 114 | 1,403 | 39 | 536 | 215 | 17,356 | 17,571 |
(1) | For countries presented in the table, total non-sovereign exposure comprises |
June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||
(in millions) | Balance | % of portfolio | Balance | % of portfolio | Balance | % of portfolio | Balance | % of portfolio | ||||||||||||||||||
Real estate 1-4 family first mortgage | $ | 286,427 | 90 | % | $ | 285,065 | 89 | % | $ | 277,945 | 91 | % | $ | 293,847 | 91 | % | ||||||||||
Real estate 1-4 family junior lien mortgage | 32,068 | 10 | 34,398 | 11 | 26,839 | 9 | 29,509 | 9 | ||||||||||||||||||
Total real estate 1-4 family mortgage loans | $ | 318,495 | 100 | % | $ | 319,463 | 100 | % | $ | 304,784 | 100 | % | $ | 323,356 | 100 | % |
June 30, 2019 | June 30, 2020 | |||||||||||||||||||||||
(in millions) | Real estate 1-4 family first mortgage | Real estate 1-4 family junior lien mortgage | Total real estate 1-4 family mortgage | % of total loans | Real estate 1-4 family first mortgage | Real estate 1-4 family junior lien mortgage | Total real estate 1-4 family mortgage | % of total loans | ||||||||||||||||
Real estate 1-4 family loans (excluding PCI): | ||||||||||||||||||||||||
Real estate 1-4 family mortgage loans: | ||||||||||||||||||||||||
California | $ | 113,523 | 8,812 | 122,335 | 13 | % | $ | 112,828 | 7,291 | 120,119 | 13 | % | ||||||||||||
New York | 30,032 | 1,612 | 31,644 | 3 | 31,163 | 1,406 | 32,569 | 3 | ||||||||||||||||
New Jersey | 13,923 | 2,955 | 16,878 | 2 | 13,159 | 2,539 | 15,698 | 2 | ||||||||||||||||
Florida | 11,943 | 2,853 | 14,796 | 2 | 11,172 | 2,393 | 13,565 | 2 | ||||||||||||||||
Washington | 10,380 | 719 | 11,099 | 1 | 10,302 | 603 | 10,905 | 1 | ||||||||||||||||
Virginia | 8,627 | 1,858 | 10,485 | 1 | 7,829 | 1,549 | 9,378 | 1 | ||||||||||||||||
Texas | 8,746 | 626 | 9,372 | 1 | 8,309 | 546 | 8,855 | 1 | ||||||||||||||||
North Carolina | 5,883 | 1,484 | 7,367 | 1 | 5,287 | 1,262 | 6,549 | 1 | ||||||||||||||||
Pennsylvania | 5,341 | 1,792 | 7,133 | 1 | ||||||||||||||||||||
Colorado | 5,929 | 595 | 6,524 | 1 | ||||||||||||||||||||
Other (1) | 65,496 | 9,342 | 74,838 | 8 | 59,505 | 8,655 | 68,160 | 7 | ||||||||||||||||
Government insured/ guaranteed loans (2) | 11,374 | — | 11,374 | 1 | 12,462 | — | 12,462 | 1 | ||||||||||||||||
Real estate 1-4 family loans (excluding PCI) | 285,268 | 32,053 | 317,321 | 34 | ||||||||||||||||||||
Real estate 1-4 family PCI loans | 1,159 | 15 | 1,174 | — | ||||||||||||||||||||
Total | $ | 286,427 | 32,068 | 318,495 | 34 | % | $ | 277,945 | 26,839 | 304,784 | 33 | % |
(1) | Consists of 41 states; |
(2) | Represents loans whose repayments are predominantly insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA). |
Outstanding balance | % of loans 30 days or more past due | Loss (recovery) rate (annualized) quarter ended | ||||||||||||||||||
(in millions) | Jun 30, 2019 | Dec 31, 2018 | Jun 30, 2019 | Dec 31, 2018 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | |||||||||||
California | $ | 113,523 | 109,092 | 0.55 | % | 0.68 | (0.04 | ) | (0.03 | ) | (0.04 | ) | (0.05 | ) | (0.07 | ) | ||||
New York | 30,032 | 28,954 | 1.00 | 1.12 | — | 0.02 | 0.02 | 0.04 | 0.09 | |||||||||||
New Jersey | 13,923 | 13,811 | 1.60 | 1.91 | (0.06 | ) | 0.08 | 0.05 | (0.02 | ) | 0.02 | |||||||||
Florida | 11,943 | 12,350 | 2.22 | 2.58 | (0.11 | ) | (0.10 | ) | (0.18 | ) | (0.22 | ) | (0.15 | ) | ||||||
Washington | 10,380 | 9,677 | 0.42 | 0.57 | (0.03 | ) | (0.04 | ) | (0.06 | ) | (0.06 | ) | (0.06 | ) | ||||||
Other | 94,093 | 93,261 | 1.40 | 1.70 | (0.06 | ) | (0.02 | ) | (0.03 | ) | (0.03 | ) | (0.03 | ) | ||||||
Total | 273,894 | 267,145 | 1.01 | 1.23 | (0.04 | ) | (0.02 | ) | (0.03 | ) | (0.04 | ) | (0.04 | ) | ||||||
Government insured/guaranteed loans | 11,374 | 12,932 | ||||||||||||||||||
PCI | 1,159 | 4,988 | ||||||||||||||||||
Total first lien mortgages | $ | 286,427 | 285,065 |
June 30, 2019 | December 31, 2018 | ||||||||||||
(in millions) | Adjusted unpaid principal balance (1) | % of total | Adjusted unpaid principal balance (1) | % of total | |||||||||
Option payment loans | $ | 5,618 | 52 | % | $ | 8,813 | 50 | % | |||||
Non-option payment adjustable-rate and fixed-rate loans | 2,433 | 22 | 2,848 | 16 | |||||||||
Full-term loan modifications | 2,783 | 26 | 6,080 | 34 | |||||||||
Total adjusted unpaid principal balance | $ | 10,834 | 100 | % | $ | 17,741 | 100 | % | |||||
Total carrying value | $ | 10,512 | 16,115 |
Outstanding balance | % of loans 30 days or more past due | Loss (recovery) rate (annualized) quarter ended | ||||||||||||||||||
(in millions) | Jun 30, 2020 | Dec 31, 2019 | Jun 30, 2020 | Dec 31, 2019 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |||||||||||
California | $ | 112,828 | 118,256 | 0.59 | % | 0.48 | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.04 | ) | ||||
New York | 31,163 | 31,336 | 0.95 | 0.83 | 0.02 | (0.01 | ) | 0.02 | 0.01 | — | ||||||||||
New Jersey | 13,159 | 14,113 | 1.38 | 1.40 | 0.03 | — | 0.02 | 0.02 | (0.06 | ) | ||||||||||
Florida | 11,172 | 11,804 | 2.07 | 1.81 | (0.01 | ) | (0.03 | ) | (0.06 | ) | (0.07 | ) | (0.11 | ) | ||||||
Washington | 10,302 | 10,863 | 0.37 | 0.29 | (0.01 | ) | (0.02 | ) | (0.02 | ) | — | (0.03 | ) | |||||||
Other | 86,859 | 95,750 | 1.21 | 1.20 | 0.01 | 0.01 | (0.02 | ) | — | (0.06 | ) | |||||||||
Total | 265,483 | 282,122 | 0.93 | 0.86 | — | — | (0.02 | ) | (0.01 | ) | (0.04 | ) | ||||||||
Government insured/guaranteed loans | 12,462 | 11,170 | ||||||||||||||||||
PCI (1) | N/A | 555 | ||||||||||||||||||
Total first lien mortgages | $ | 277,945 | 293,847 |
(1) |
Outstanding balance | % of loans 30 days or more past due | Loss (recovery) rate (annualized) quarter ended | Outstanding balance | % of loans 30 days or more past due | Loss (recovery) rate (annualized) quarter ended | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Jun 30, 2019 | Dec 31, 2018 | Jun 30, 2019 | Dec 31, 2018 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Jun 30, 2020 | Dec 31, 2019 | Jun 30, 2020 | Dec 31, 2019 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||||||||||||||||||||||
California | $ | 8,812 | 9,338 | 1.64 | % | 1.67 | (0.40 | ) | (0.39 | ) | (0.33 | ) | (0.51 | ) | (0.56 | ) | $ | 7,291 | 8,054 | 1.55 | % | 1.62 | (0.26 | ) | (0.36 | ) | (0.44 | ) | (0.51 | ) | (0.40 | ) | ||||||||||||||||||||
New Jersey | 2,955 | 3,152 | 2.77 | 2.57 | (0.07 | ) | 0.12 | 0.03 | 0.24 | 0.28 | 2,539 | 2,744 | 2.36 | 2.74 | (0.12 | ) | 0.13 | 0.07 | 0.11 | (0.07 | ) | |||||||||||||||||||||||||||||||
Florida | 2,853 | 3,140 | 2.82 | 2.73 | (0.11 | ) | (0.05 | ) | 0.07 | 0.12 | (0.05 | ) | 2,393 | 2,600 | 2.38 | 2.93 | (0.01 | ) | — | (0.09 | ) | (0.11 | ) | (0.11 | ) | |||||||||||||||||||||||||||
Virginia | 1,858 | 2,020 | 2.03 | 1.91 | (0.17 | ) | 0.14 | 0.04 | 0.16 | 0.30 | 1,549 | 1,712 | 1.79 | 1.97 | (0.05 | ) | 0.09 | (0.02 | ) | (0.23 | ) | (0.17 | ) | |||||||||||||||||||||||||||||
Pennsylvania | 1,792 | 1,929 | 2.19 | 2.10 | (0.19 | ) | 0.04 | 0.25 | 0.18 | 0.13 | 1,540 | 1,674 | 1.78 | 2.16 | 0.05 | 0.11 | (0.10 | ) | (0.05 | ) | (0.19 | ) | ||||||||||||||||||||||||||||||
Other | 13,783 | 14,802 | 1.99 | 2.12 | (0.22 | ) | (0.03 | ) | (0.11 | ) | (0.05 | ) | (0.06 | ) | 11,527 | 12,712 | 1.77 | 2.05 | (0.21 | ) | 0.01 | (0.18 | ) | (0.29 | ) | (0.22 | ) | |||||||||||||||||||||||||
Total | 32,053 | 34,381 | 2.05 | 2.08 | (0.24 | ) | (0.10 | ) | (0.11 | ) | (0.10 | ) | (0.13 | ) | 26,839 | 29,496 | 1.82 | 2.07 | (0.17 | ) | (0.07 | ) | (0.21 | ) | (0.28 | ) | (0.24 | ) | ||||||||||||||||||||||||
PCI | 15 | 17 | N/A | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total junior lien mortgages | $ | 32,068 | 34,398 | $ | 26,839 | 29,509 |
(1) | In connection with our adoption of CECL on January 1, 2020, PCI loans were reclassified as PCD loans and are therefore included with other non-PCD loans in this table. For more information, see Note 1 (Summary of Significant Accounting Policies) to Financial Statements in this Report. |
Scheduled end of draw / term | Scheduled end of draw / term | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Outstanding balance June 30, 2019 | Remainder of 2019 | 2020 | 2021 | 2022 | 2023 | 2024 and thereafter (1) | Amortizing | Outstanding balance June 30, 2020 | Remainder of 2020 | 2021 | 2022 | 2023 | 2024 | 2025 and thereafter (1) | Amortizing | ||||||||||||||||||||||||||||||||
Junior lien lines and loans | $ | 32,053 | 165 | 405 | 984 | 3,636 | 2,501 | 14,043 | 10,319 | $ | 26,839 | 133 | 739 | 2,982 | 2,055 | 1,646 | 11,101 | 8,183 | ||||||||||||||||||||||||||||||
First lien lines | 11,059 | 58 | 164 | 460 | 1,749 | 1,307 | 5,437 | 1,884 | 9,806 | 60 | 367 | 1,501 | 1,128 | 879 | 4,247 | 1,624 | ||||||||||||||||||||||||||||||||
Total | $ | 43,112 | 223 | 569 | 1,444 | 5,385 | 3,808 | 19,480 | 12,203 | $ | 36,645 | 193 | 1,106 | 4,483 | 3,183 | 2,525 | 15,348 | 9,807 | ||||||||||||||||||||||||||||||
% of portfolios | 100 | % | 1 | 1 | 3 | 12 | 9 | 45 | 29 | 100 | % | 1 | 3 | 12 | 9 | 7 | 42 | 26 | ||||||||||||||||||||||||||||||
End-of-term balloon payments included in Total | $ | 764 | 75 | 185 | 322 | 153 | 6 | 23 |
(1) | Substantially all lines and loans are scheduled to convert to amortizing loans by the end of |
June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | Balance | % of total loans | Balance | % of total loans | Balance | % of total loans | Balance | % of total loans | Balance | % of total loans | Balance | % of total loans | Balance | % of total loans | Balance | % of total loans | ||||||||||||||||||||||||||||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,634 | 0.47 | % | $ | 1,986 | 0.57 | % | $ | 1,486 | 0.42 | % | $ | 1,555 | 0.46 | % | $ | 2,896 | 0.83 | % | $ | 1,779 | 0.44 | % | $ | 1,545 | 0.44 | % | $ | 1,539 | 0.44 | % | ||||||||||||||||||||||||
Real estate mortgage | 737 | 0.60 | 699 | 0.57 | 580 | 0.48 | 603 | 0.50 | 1,217 | 0.98 | 944 | 0.77 | 573 | 0.47 | 669 | 0.55 | ||||||||||||||||||||||||||||||||||||||||
Real estate construction | 36 | 0.17 | 36 | 0.16 | 32 | 0.14 | 44 | 0.19 | 34 | 0.16 | 21 | 0.10 | 41 | 0.21 | 32 | 0.16 | ||||||||||||||||||||||||||||||||||||||||
Lease financing | 63 | 0.33 | 76 | 0.40 | 90 | 0.46 | 96 | 0.49 | 138 | 0.79 | 131 | 0.68 | 95 | 0.48 | 72 | 0.37 | ||||||||||||||||||||||||||||||||||||||||
Total commercial | 2,470 | 0.48 | 2,797 | 0.55 | 2,188 | 0.43 | 2,298 | 0.46 | 4,285 | 0.83 | 2,875 | 0.51 | 2,254 | 0.44 | 2,312 | 0.45 | ||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 2,425 | 0.85 | 3,026 | 1.06 | 3,183 | 1.12 | 3,267 | 1.15 | 2,393 | 0.86 | 2,372 | 0.81 | 2,150 | 0.73 | 2,261 | 0.78 | ||||||||||||||||||||||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | 868 | 2.71 | 916 | 2.77 | 945 | 2.75 | 983 | 2.78 | 753 | 2.81 | 769 | 2.70 | 796 | 2.70 | 819 | 2.66 | ||||||||||||||||||||||||||||||||||||||||
Automobile | 115 | 0.25 | 116 | 0.26 | 130 | 0.29 | 118 | 0.26 | 129 | 0.26 | 99 | 0.20 | 106 | 0.22 | 110 | 0.24 | ||||||||||||||||||||||||||||||||||||||||
Other revolving credit and installment | 44 | 0.13 | 50 | 0.14 | 50 | 0.14 | 48 | 0.13 | 45 | 0.14 | 41 | 0.12 | 40 | 0.12 | 43 | 0.12 | ||||||||||||||||||||||||||||||||||||||||
Total consumer | 3,452 | 0.79 | 4,108 | 0.94 | 4,308 | 0.98 | 4,416 | 1.00 | 3,320 | 0.79 | 3,281 | 0.74 | 3,092 | 0.69 | 3,233 | 0.73 | ||||||||||||||||||||||||||||||||||||||||
Total nonaccrual loans | 5,922 | 0.62 | 6,905 | 0.73 | 6,496 | 0.68 | 6,714 | 0.71 | 7,605 | 0.81 | 6,156 | 0.61 | 5,346 | 0.56 | 5,545 | 0.58 | ||||||||||||||||||||||||||||||||||||||||
Foreclosed assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government insured/guaranteed | 68 | 75 | 88 | 87 | 31 | 43 | 50 | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-government insured/guaranteed | 309 | 361 | 363 | 435 | 164 | 209 | 253 | 378 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total foreclosed assets | 377 | 436 | 451 | 522 | 195 | 252 | 303 | 437 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total nonperforming assets | $ | 6,299 | 0.66 | % | $ | 7,341 | 0.77 | % | $ | 6,947 | 0.73 | % | $ | 7,236 | 0.77 | % | $ | 7,800 | 0.83 | % | $ | 6,408 | 0.63 | % | $ | 5,649 | 0.59 | % | $ | 5,982 | 0.63 | % | ||||||||||||||||||||||||
Change in NPAs from prior quarter | $ | (1,042 | ) | 394 | (289 | ) | (389 | ) | $ | 1,392 | 759 | (333 | ) | (317 | ) |
(1) |
Real estate 1-4 family mortgage loans predominantly insured by the FHA or guaranteed by the VA are not placed on nonaccrual status because they are insured or guaranteed. |
Consistent with regulatory reporting requirements, foreclosed real estate resulting from government insured/guaranteed loans are classified as nonperforming. Both principal and interest related to these foreclosed real estate assets are collectible because the loans were predominantly insured by the FHA or guaranteed by the VA. |
Quarter ended | Quarter ended | |||||||||||||||||||||||||||||
(in millions) | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||||||||
Commercial nonaccrual loans | ||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 2,797 | 2,188 | 2,298 | 2,455 | 2,409 | $ | 2,875 | 2,254 | 2,312 | 2,470 | 2,797 | ||||||||||||||||||
Inflows | 621 | 1,238 | 662 | 774 | 726 | 2,741 | 1,479 | 652 | 710 | 621 | ||||||||||||||||||||
Outflows: | ||||||||||||||||||||||||||||||
Returned to accruing | (46 | ) | (43 | ) | (45 | ) | (122 | ) | (43 | ) | (64 | ) | (56 | ) | (124 | ) | (52 | ) | (46 | ) | ||||||||||
Foreclosures | (2 | ) | (15 | ) | (12 | ) | — | — | — | — | — | (78 | ) | (2 | ) | |||||||||||||||
Charge-offs | (187 | ) | (158 | ) | (193 | ) | (191 | ) | (133 | ) | (560 | ) | (360 | ) | (201 | ) | (194 | ) | (187 | ) | ||||||||||
Payments, sales and other | (713 | ) | (413 | ) | (522 | ) | (618 | ) | (504 | ) | (707 | ) | (442 | ) | (385 | ) | (544 | ) | (713 | ) | ||||||||||
Total outflows | (948 | ) | (629 | ) | (772 | ) | (931 | ) | (680 | ) | (1,331 | ) | (858 | ) | (710 | ) | (868 | ) | (948 | ) | ||||||||||
Balance, end of period | 2,470 | 2,797 | 2,188 | 2,298 | 2,455 | 4,285 | 2,875 | 2,254 | 2,312 | 2,470 | ||||||||||||||||||||
Consumer nonaccrual loans | ||||||||||||||||||||||||||||||
Balance, beginning of period | 4,108 | 4,308 | 4,416 | 4,671 | 4,930 | 3,281 | 3,092 | 3,233 | 3,452 | 4,108 | ||||||||||||||||||||
Inflows | 437 | 552 | 569 | 572 | 578 | |||||||||||||||||||||||||
Inflows (1) | 379 | 749 | 473 | 448 | 437 | |||||||||||||||||||||||||
Outflows: | ||||||||||||||||||||||||||||||
Returned to accruing | (250 | ) | (248 | ) | (269 | ) | (319 | ) | (342 | ) | (135 | ) | (254 | ) | (227 | ) | (274 | ) | (250 | ) | ||||||||||
Foreclosures | (34 | ) | (42 | ) | (35 | ) | (41 | ) | (40 | ) | (6 | ) | (21 | ) | (29 | ) | (32 | ) | (34 | ) | ||||||||||
Charge-offs | (34 | ) | (49 | ) | (57 | ) | (65 | ) | (84 | ) | (39 | ) | (48 | ) | (45 | ) | (44 | ) | (34 | ) | ||||||||||
Payments, sales and other | (775 | ) | (413 | ) | (316 | ) | (402 | ) | (371 | ) | (160 | ) | (237 | ) | (313 | ) | (317 | ) | (775 | ) | ||||||||||
Total outflows | (1,093 | ) | (752 | ) | (677 | ) | (827 | ) | (837 | ) | (340 | ) | (560 | ) | (614 | ) | (667 | ) | (1,093 | ) | ||||||||||
Balance, end of period | 3,452 | 4,108 | 4,308 | 4,416 | 4,671 | 3,320 | 3,281 | 3,092 | 3,233 | 3,452 | ||||||||||||||||||||
Total nonaccrual loans | $ | 5,922 | 6,905 | 6,496 | 6,714 | 7,126 | $ | 7,605 | 6,156 | 5,346 | 5,545 | 5,922 |
(1) | In connection with our adoption of CECL on January 1, 2020, we classified $275 million of PCD loans as nonaccruing based on performance. |
• |
• | losses of $ |
• |
• | of the $ |
(in millions) | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||||||||
Summary by loan segment | ||||||||||||||||||||||||||||||
Government insured/guaranteed | $ | 68 | 75 | 88 | 87 | 90 | $ | 31 | 43 | 50 | 59 | 68 | ||||||||||||||||||
Commercial | 101 | 124 | 127 | 201 | 176 | 45 | 49 | 62 | 180 | 101 | ||||||||||||||||||||
Consumer | 208 | 237 | 236 | 234 | 233 | 119 | 160 | 191 | 198 | 208 | ||||||||||||||||||||
Total foreclosed assets | $ | 377 | 436 | 451 | 522 | 499 | $ | 195 | 252 | 303 | 437 | 377 | ||||||||||||||||||
Analysis of changes in foreclosed assets | ||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 436 | 451 | 522 | 499 | 571 | $ | 252 | 303 | 437 | 377 | 436 | ||||||||||||||||||
Net change in government insured/guaranteed (1) | (7 | ) | (13 | ) | 1 | (3 | ) | (13 | ) | (12 | ) | (7 | ) | (9 | ) | (9 | ) | (7 | ) | |||||||||||
Additions to foreclosed assets (2) | 144 | 193 | 193 | 209 | 191 | 51 | 107 | 126 | 235 | 144 | ||||||||||||||||||||
Reductions: | ||||||||||||||||||||||||||||||
Sales | (199 | ) | (205 | ) | (274 | ) | (181 | ) | (257 | ) | (98 | ) | (154 | ) | (250 | ) | (155 | ) | (199 | ) | ||||||||||
Write-downs and gains (losses) on sales | 3 | 10 | 9 | (2 | ) | 7 | 2 | 3 | (1 | ) | (11 | ) | 3 | |||||||||||||||||
Total reductions | (196 | ) | (195 | ) | (265 | ) | (183 | ) | (250 | ) | (96 | ) | (151 | ) | (251 | ) | (166 | ) | (196 | ) | ||||||||||
Balance, end of period | $ | 377 | 436 | 451 | 522 | 499 | $ | 195 | 252 | 303 | 437 | 377 |
(1) | Foreclosed government insured/guaranteed loans are temporarily transferred to and held by us as servicer, until reimbursement is received from FHA or VA. |
(2) | Includes loans moved into foreclosed assets from nonaccrual status |
(in millions) | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,294 | 1,740 | 1,623 | 1,837 | 1,792 | $ | 1,882 | 1,302 | 1,183 | 1,162 | 1,294 | ||||||||||||||||||
Real estate mortgage | 620 | 681 | 704 | 782 | 904 | 717 | 697 | 669 | 598 | 620 | ||||||||||||||||||||
Real estate construction | 43 | 45 | 39 | 49 | 40 | 20 | 33 | 36 | 40 | 43 | ||||||||||||||||||||
Lease financing | 31 | 46 | 56 | 65 | 50 | 10 | 10 | 13 | 16 | 31 | ||||||||||||||||||||
Total commercial TDRs | 1,988 | 2,512 | 2,422 | 2,733 | 2,786 | 2,629 | 2,042 | 1,901 | 1,816 | 1,988 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 8,218 | 10,343 | 10,629 | 10,967 | 11,387 | 7,176 | 7,284 | 7,589 | 7,905 | 8,218 | ||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | 1,550 | 1,604 | 1,639 | 1,689 | 1,735 | 1,309 | 1,356 | 1,407 | 1,457 | 1,550 | ||||||||||||||||||||
Credit Card | 486 | 473 | 449 | 431 | 410 | 510 | 527 | 520 | 504 | 486 | ||||||||||||||||||||
Automobile | 85 | 85 | 89 | 91 | 81 | 108 | 76 | 81 | 82 | 85 | ||||||||||||||||||||
Other revolving credit and installment | 159 | 156 | 154 | 146 | 141 | 173 | 172 | 170 | 167 | 159 | ||||||||||||||||||||
Trial modifications | 127 | 136 | 149 | 163 | 200 | 91 | 108 | 115 | 123 | 127 | ||||||||||||||||||||
Total consumer TDRs | 10,625 | 12,797 | 13,109 | 13,487 | 13,954 | 9,367 | 9,523 | 9,882 | 10,238 | 10,625 | ||||||||||||||||||||
Total TDRs | $ | 12,613 | 15,309 | 15,531 | 16,220 | 16,740 | $ | 11,996 | 11,565 | 11,783 | 12,054 | 12,613 | ||||||||||||||||||
TDRs on nonaccrual status | $ | 3,058 | 4,037 | 4,058 | 4,298 | 4,454 | $ | 3,475 | 2,846 | 2,833 | 2,775 | 3,058 | ||||||||||||||||||
TDRs on accrual status: | ||||||||||||||||||||||||||||||
Government insured/guaranteed | 1,209 | 1,275 | 1,299 | 1,308 | 1,368 | 1,277 | 1,157 | 1,190 | 1,199 | 1,209 | ||||||||||||||||||||
Non-government insured/guaranteed | 8,346 | 9,997 | 10,174 | 10,614 | 10,918 | 7,244 | 7,562 | 7,760 | 8,080 | 8,346 | ||||||||||||||||||||
Total TDRs | $ | 12,613 | 15,309 | 15,531 | 16,220 | 16,740 | $ | 11,996 | 11,565 | 11,783 | 12,054 | 12,613 |
Quarter ended | Quarter ended | |||||||||||||||||||||||||||||
(in millions) | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||||||||
Commercial TDRs | ||||||||||||||||||||||||||||||
Balance, beginning of quarter | $ | 2,512 | 2,422 | 2,733 | 2,786 | 2,740 | $ | 2,042 | 1,901 | 1,816 | 1,988 | 2,512 | ||||||||||||||||||
Inflows (1)(2) | 232 | 539 | 374 | 588 | 481 | |||||||||||||||||||||||||
Inflows (1) | 971 | 452 | 476 | 293 | 232 | |||||||||||||||||||||||||
Outflows | ||||||||||||||||||||||||||||||
Charge-offs | (37 | ) | (44 | ) | (88 | ) | (92 | ) | (41 | ) | (60 | ) | (56 | ) | (48 | ) | (66 | ) | (37 | ) | ||||||||||
Foreclosures | — | — | (2 | ) | (13 | ) | — | — | — | (1 | ) | — | — | |||||||||||||||||
Payments, sales and other | (719 | ) | (405 | ) | (595 | ) | (536 | ) | (394 | ) | (324 | ) | (255 | ) | (342 | ) | (399 | ) | (719 | ) | ||||||||||
Balance, end of quarter | 1,988 | 2,512 | 2,422 | 2,733 | 2,786 | 2,629 | 2,042 | 1,901 | 1,816 | 1,988 | ||||||||||||||||||||
Consumer TDRs | ||||||||||||||||||||||||||||||
Balance, beginning of quarter | 12,797 | 13,109 | 13,487 | 13,954 | 14,380 | 9,523 | 9,882 | 10,238 | 10,625 | 12,797 | ||||||||||||||||||||
Inflows (1) | 336 | 439 | 379 | 414 | 467 | 425 | 312 | 350 | 360 | 336 | ||||||||||||||||||||
Outflows | ||||||||||||||||||||||||||||||
Charge-offs | (61 | ) | (60 | ) | (57 | ) | (56 | ) | (56 | ) | (46 | ) | (63 | ) | (57 | ) | (56 | ) | (61 | ) | ||||||||||
Foreclosures | (74 | ) | (86 | ) | (90 | ) | (116 | ) | (133 | ) | (8 | ) | (57 | ) | (61 | ) | (70 | ) | (74 | ) | ||||||||||
Payments, sales and other | (2,364 | ) | (593 | ) | (595 | ) | (672 | ) | (706 | ) | (510 | ) | (544 | ) | (580 | ) | (617 | ) | (2,364 | ) | ||||||||||
Net change in trial modifications | (9 | ) | (12 | ) | (15 | ) | (37 | ) | 2 | (17 | ) | (7 | ) | (8 | ) | (4 | ) | (9 | ) | |||||||||||
Balance, end of quarter | 10,625 | 12,797 | 13,109 | 13,487 | 13,954 | 9,367 | 9,523 | 9,882 | 10,238 | 10,625 | ||||||||||||||||||||
Total TDRs | $ | 12,613 | 15,309 | 15,531 | 16,220 | 16,740 | $ | 11,996 | 11,565 | 11,783 | 12,054 | 12,613 |
(1) | Inflows include loans that modify, even if they resolve within the period, as well as gross advances on term loans that modified in a prior period and net advances on revolving |
(2) |
Other outflows consist of normal amortization/accretion of loan basis adjustments and loans transferred to |
Net change in trial modifications includes: inflows of new TDRs entering the trial payment period, net of outflows for modifications that either (i) successfully perform and enter into a permanent modification, or (ii) did not successfully perform according to the terms of the trial period plan and are subsequently charged-off, foreclosed upon or otherwise resolved. |
(in millions) | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||||||||
Total (excluding PCI (1)): | $ | 7,258 | 7,870 | 8,704 | 8,838 | 9,087 | ||||||||||||||||||||||||
Total: | $ | 9,739 | 7,023 | 7,285 | 7,130 | 7,258 | ||||||||||||||||||||||||
Less: FHA insured/VA guaranteed | 6,478 | 6,996 | 7,725 | 7,906 | 8,246 | 8,922 | 6,142 | 6,352 | 6,308 | 6,478 | ||||||||||||||||||||
Total, not government insured/guaranteed | $ | 780 | 874 | 979 | 932 | 841 | $ | 817 | 881 | 933 | 822 | 780 | ||||||||||||||||||
By segment and class, not government insured/guaranteed: Commercial: | ||||||||||||||||||||||||||||||
Commercial and industrial | $ | 17 | 42 | 43 | 42 | 23 | $ | 101 | 24 | 47 | 6 | 17 | ||||||||||||||||||
Real estate mortgage | 24 | 20 | 51 | 56 | 26 | 44 | 28 | 31 | 28 | 24 | ||||||||||||||||||||
Real estate construction | — | 5 | — | — | — | — | 1 | — | — | — | ||||||||||||||||||||
Total commercial | 41 | 67 | 94 | 98 | 49 | 145 | 53 | 78 | 34 | 41 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 108 | 117 | 124 | 128 | 132 | 93 | 128 | 112 | 100 | 108 | ||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | 27 | 28 | 32 | 32 | 33 | 19 | 25 | 32 | 35 | 27 | ||||||||||||||||||||
Credit card | 449 | 502 | 513 | 460 | 429 | 418 | 528 | 546 | 491 | 449 | ||||||||||||||||||||
Automobile | 63 | 68 | 114 | 108 | 105 | 54 | 69 | 78 | 75 | 63 | ||||||||||||||||||||
Other revolving credit and installment | 92 | 92 | 102 | 106 | 93 | 88 | 78 | 87 | 87 | 92 | ||||||||||||||||||||
Total consumer | 739 | 807 | 885 | 834 | 792 | 672 | 828 | 855 | 788 | 739 | ||||||||||||||||||||
Total, not government insured/guaranteed | $ | 780 | 874 | 979 | 932 | 841 | $ | 817 | 881 | 933 | 822 | 780 |
(1) |
Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA. |
Quarter ended | Quarter ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | Net loan charge- offs | % of avg. loans(1) | Net loan charge- offs | % of avg. loans (1) | Net loan charge- offs | % of avg. loans (1) | Net loan charge-offs | % of avg. loans (1) | Net loan charge-offs | % of avg. loans (1) | Net loan charge- offs | % of avg. loans(1) | Net loan charge- offs | % of avg. loans (1) | Net loan charge- offs | % of avg. loans (1) | Net loan charge-offs | % of avg. loans (1) | Net loan charge-offs | % of avg. loans (1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 159 | 0.18 | % | $ | 133 | 0.15 | % | $ | 132 | 0.15 | % | $ | 148 | 0.18 | % | $ | 58 | 0.07 | % | $ | 521 | 0.55 | % | $ | 333 | 0.37 | % | $ | 168 | 0.19 | % | $ | 147 | 0.17 | % | $ | 159 | 0.18 | % | ||||||||||||||||||||||||||||
Real estate mortgage | 4 | 0.01 | 6 | 0.02 | (12 | ) | (0.04 | ) | (1 | ) | — | — | — | 67 | 0.22 | (2 | ) | (0.01 | ) | 4 | 0.01 | (8 | ) | (0.02 | ) | 4 | 0.01 | |||||||||||||||||||||||||||||||||||||||||
Real estate construction | (2 | ) | (0.04 | ) | (2 | ) | (0.04 | ) | (1 | ) | (0.01 | ) | (2 | ) | (0.04 | ) | (6 | ) | (0.09 | ) | (1 | ) | (0.02 | ) | (16 | ) | (0.32 | ) | — | — | (8 | ) | (0.14 | ) | (2 | ) | (0.04 | ) | ||||||||||||||||||||||||||||||
Lease financing | 4 | 0.09 | 8 | 0.17 | 13 | 0.26 | 7 | 0.14 | 15 | 0.32 | 15 | 0.33 | 9 | 0.19 | 31 | 0.63 | 8 | 0.17 | 4 | 0.09 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial | 165 | 0.13 | 145 | 0.11 | 132 | 0.10 | 152 | 0.12 | 67 | 0.05 | 602 | 0.44 | 324 | 0.25 | 203 | 0.16 | 139 | 0.11 | 165 | 0.13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | (30 | ) | (0.04 | ) | (12 | ) | (0.02 | ) | (22 | ) | (0.03 | ) | (25 | ) | (0.04 | ) | (23 | ) | (0.03 | ) | 2 | — | (3 | ) | — | (3 | ) | — | (5 | ) | (0.01 | ) | (30 | ) | (0.04 | ) | ||||||||||||||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | (19 | ) | (0.24 | ) | (9 | ) | (0.10 | ) | (10 | ) | (0.11 | ) | (9 | ) | (0.10 | ) | (13 | ) | (0.13 | ) | (12 | ) | (0.17 | ) | (5 | ) | (0.07 | ) | (16 | ) | (0.20 | ) | (22 | ) | (0.28 | ) | (19 | ) | (0.24 | ) | ||||||||||||||||||||||||||||
Credit card | 349 | 3.68 | 352 | 3.73 | 338 | 3.54 | 299 | 3.22 | 323 | 3.61 | 327 | 3.60 | 377 | 3.81 | 350 | 3.48 | 319 | 3.22 | 349 | 3.68 | ||||||||||||||||||||||||||||||||||||||||||||||||
Automobile | 52 | 0.46 | 91 | 0.82 | 133 | 1.16 | 130 | 1.10 | 113 | 0.93 | 106 | 0.88 | 82 | 0.68 | 87 | 0.73 | 76 | 0.65 | 52 | 0.46 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other revolving credit and installment | 136 | 1.56 | 128 | 1.47 | 150 | 1.64 | 133 | 1.44 | 135 | 1.44 | 88 | 1.09 | 134 | 1.59 | 148 | 1.71 | 138 | 1.60 | 136 | 1.56 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer | 488 | 0.45 | 550 | 0.51 | 589 | 0.53 | 528 | 0.47 | 535 | 0.49 | 511 | 0.48 | 585 | 0.53 | 566 | 0.51 | 506 | 0.46 | 488 | 0.45 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 653 | 0.28 | % | $ | 695 | 0.30 | % | $ | 721 | 0.30 | % | $ | 680 | 0.29 | % | $ | 602 | 0.26 | % | $ | 1,113 | 0.46 | % | $ | 909 | 0.38 | % | $ | 769 | 0.32 | % | $ | 645 | 0.27 | % | $ | 653 | 0.28 | % | ||||||||||||||||||||||||||||
(1) | Quarterly net loan charge-offs (recoveries) as a percentage of average respective loans are annualized. |
Jun 30, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Jun 30, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | ACL | Loans as % of total loans | ACL | Loans as % of total loans | ACL | Loans as % of total loans | ACL | Loans as % of total loans | ACL | Loans as % of total loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | ACL | Loans as % of total loans | ACL | Loans as % of total loans | ACL | Loans as % of total loans | ACL | Loans as % of total loans | ACL | Loans as % of total loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 3,583 | 37 | % | $ | 3,628 | 37 | % | $ | 3,752 | 35 | % | $ | 4,560 | 34 | % | $ | 4,231 | 33 | % | $ | 8,109 | 37 | % | $ | 3,600 | 37 | % | $ | 3,628 | 37 | % | $ | 3,752 | 35 | % | $ | 4,560 | 34 | % | ||||||||||||||||||||||||||||
Real estate mortgage | 1,275 | 13 | 1,282 | 13 | 1,374 | 13 | 1,320 | 14 | 1,264 | 13 | 2,395 | 13 | 1,236 | 13 | 1,282 | 13 | 1,374 | 13 | 1,320 | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||
Real estate construction | 1,122 | 2 | 1,200 | 2 | 1,238 | 3 | 1,294 | 2 | 1,210 | 3 | 484 | 2 | 1,079 | 2 | 1,200 | 2 | 1,238 | 3 | 1,294 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Lease financing | 318 | 2 | 307 | 2 | 268 | 2 | 220 | 2 | 167 | 1 | 681 | 2 | 330 | 2 | 307 | 2 | 268 | 2 | 220 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial | 6,298 | 54 | 6,417 | 54 | 6,632 | 53 | 7,394 | 52 | 6,872 | 50 | 11,669 | 54 | 6,245 | 54 | 6,417 | 54 | 6,632 | 53 | 7,394 | 52 | ||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 729 | 30 | 750 | 30 | 1,085 | 30 | 1,270 | 29 | 1,895 | 30 | 1,541 | 30 | 692 | 30 | 750 | 30 | 1,085 | 30 | 1,270 | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | 294 | 3 | 431 | 3 | 608 | 4 | 815 | 5 | 1,223 | 6 | 725 | 3 | 247 | 3 | 431 | 3 | 608 | 4 | 815 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Credit card | 2,249 | 4 | 2,064 | 4 | 1,944 | 4 | 1,605 | 4 | 1,412 | 4 | 3,777 | 4 | 2,252 | 4 | 2,064 | 4 | 1,944 | 4 | 1,605 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||
Automobile | 462 | 5 | 475 | 5 | 1,039 | 5 | 817 | 6 | 529 | 6 | 1,174 | 5 | 459 | 5 | 475 | 5 | 1,039 | 5 | 817 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other revolving credit and installment | 571 | 4 | 570 | 4 | 652 | 4 | 639 | 4 | 581 | 4 | 1,550 | 4 | 561 | 4 | 570 | 4 | 652 | 4 | 639 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer | 4,305 | 46 | 4,290 | 46 | 5,328 | 47 | 5,146 | 48 | 5,640 | 50 | 8,767 | 46 | 4,211 | 46 | 4,290 | 46 | 5,328 | 47 | 5,146 | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 10,603 | 100 | % | $ | 10,707 | 100 | % | $ | 11,960 | 100 | % | $ | 12,540 | 100 | % | $ | 12,512 | 100 | % | $ | 20,436 | 100 | % | $ | 10,456 | 100 | % | $ | 10,707 | 100 | % | $ | 11,960 | 100 | % | $ | 12,540 | 100 | % | ||||||||||||||||||||||||||||
Jun 30, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Jun 30, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | $ | 9,692 | 9,775 | 11,004 | 11,419 | 11,545 | $ | 18,926 | 9,551 | 9,775 | 11,004 | 11,419 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for unfunded credit commitments | 911 | 932 | 956 | 1,121 | 967 | 1,510 | 905 | 932 | 956 | 1,121 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | $ | 10,603 | 10,707 | 11,960 | 12,540 | 12,512 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses for loans | $ | 20,436 | 10,456 | 10,707 | 11,960 | 12,540 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses as a percentage of total loans | 1.02 | % | 1.03 | 1.15 | 1.18 | 1.26 | 2.02 | % | 0.99 | 1.03 | 1.15 | 1.18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses as a percentage of total net charge-offs (1) | 370 | 356 | 376 | 324 | 399 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses as a percentage of total loans | 1.12 | 1.12 | 1.25 | 1.30 | 1.37 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses as a percentage of total nonaccrual loans | 179 | 165 | 156 | 126 | 115 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses as a percentage of total net loan charge-offs (2) | 423 | 346 | 356 | 376 | 324 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses for loans as a percentage of total loans | 2.19 | 1.09 | 1.12 | 1.25 | 1.30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses for loans as a percentage of total nonaccrual loans | 269 | 196 | 165 | 156 | 126 |
(1) | Disclosure is not comparative due to our adoption of CECL on January 1, 2020. For more information, see Note 1 (Summary of Significant Accounting Policies) to Financial Statements in this Report. |
(2) | Total net loan charge-offs are annualized for the quarter ended June 30, |
4Q 2020 | 2Q 2021 | 4Q 2021 | ||||||
Blend of 80% base case and 20% downside scenario (1): | ||||||||
U.S. unemployment rate (2) | 11.0 | 9.2 | 7.5 | |||||
U.S. real GDP (3) | 4.3 | 6.3 | 3.5 | |||||
Home price index (4) | 0.7 | (3.0 | ) | (0.9 | ) | |||
Commercial real estate asset prices (4) | (2.5 | ) | (7.6 | ) | (5.1 | ) |
(1) | Represents a weighted average of the forecasted economic variable inputs. |
(2) | Quarterly average. |
(3) | Seasonally adjusted annualized rate. |
(4) | Percentage change year over year of national average; outlook differs by geography and property type. |
Lower Rates | Higher Rates | ||||||
($ in billions) | Base | 100 bps Ramp Parallel Decrease | 100 bps Instantaneous Parallel Increase | 200 bps Ramp Parallel Increase | |||
First Year of Forecasting Horizon | |||||||
Net Interest Income Sensitivity to Base Scenario | $ | (1.2) - (0.7) | 1.2 - 1.7 | 1.0 - 1.5 | |||
Key Rates at Horizon End | |||||||
Fed Funds Target | 2.50 | % | 1.50 | 3.50 | 4.50 | ||
10-year CMT (1) | 2.87 | 1.87 | 3.87 | 4.87 | |||
Second Year of Forecasting Horizon | |||||||
Net Interest Income Sensitivity to Base Scenario | $ | (3.1) - (2.6 ) | 1.6 - 2.1 | 2.3 - 2.8 | |||
Key Rates at Horizon End | |||||||
Fed Funds Target | 2.50 | % | 1.50 | 3.50 | 4.50 | ||
10-year CMT (1) | 3.16 | 2.16 | 4.16 | 5.16 |
Lower Rates (1) | Higher Rates | ||||||
($ in billions) | Base | 100 bps Ramp Parallel Decrease | 100 bps Instantaneous Parallel Increase | 200 bps Ramp Parallel Increase | |||
First Year of Forecasting Horizon | |||||||
Net Interest Income Sensitivity to Base Scenario | $ | (0.9) - (0.4) | 4.6 - 5.1 | 4.2 - 4.7 | |||
Key Rates at Horizon End | |||||||
Fed Funds Target | 0.25 | % | 0.00 | 1.25 | 2.25 | ||
10-year CMT (2) | 0.76 | 0.00 | 1.76 | 2.76 | |||
Second Year of Forecasting Horizon | |||||||
Net Interest Income Sensitivity to Base Scenario | $ | (2.3) - (1.8) | 7.2 - 7.7 | 11.2 - 11.7 | |||
Key Rates at Horizon End | |||||||
Fed Funds Target | 0.25 | % | 0.00 | 1.25 | 2.25 | ||
10-year CMT (2) | 0.89 | 0.00 | 1.89 | 2.89 |
(1) | U.S. interest rates are floored at zero where applicable in this scenario analysis |
(2) | U.S. Constant Maturity Treasury Rate |
Quarter ended | Quarter ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 | March 31, 2019 | June 30, 2018 | June 30, 2020 | March 31, 2020 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Period end | Average | Low | High | Period end | Average | Low | High | Period end | Average | Low | High | Period end | Average | Low | High | Period end | Average | Low | High | Period end | Average | Low | High | ||||||||||||||||||||||||||||||||||||||||||||||||
Company Trading General VaR Risk Categories | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit | $ | 15 | 15 | 11 | 18 | 15 | 15 | 11 | 19 | 17 | 18 | 15 | 20 | $ | 86 | 82 | 61 | 99 | 62 | 28 | 15 | 75 | 15 | 15 | 11 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 29 | 37 | 27 | 49 | 42 | 34 | 22 | 44 | 18 | 17 | 11 | 24 | 155 | 106 | 42 | 161 | 84 | 32 | 5 | 198 | 29 | 37 | 27 | 49 | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity | 4 | 5 | 4 | 8 | 5 | 5 | 4 | 7 | 8 | 7 | 5 | 16 | 14 | 10 | 6 | 17 | 6 | 7 | 4 | 10 | 4 | 5 | 4 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commodity | 2 | 2 | 1 | 6 | 2 | 2 | 1 | 4 | 1 | 1 | 1 | 1 | 4 | 4 | 2 | 7 | 2 | 2 | 1 | 6 | 2 | 2 | 1 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 0 | 0 | 0 | 1 | 1 | 2 | 1 | 3 | 2 | 1 | 1 | 6 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Diversification benefit (1) | (32 | ) | (40 | ) | (46 | ) | (42 | ) | (29 | ) | (28 | ) | (51 | ) | (49 | ) | (63 | ) | (37 | ) | (32 | ) | (40 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Company Trading General VaR | $ | 19 | 20 | 19 | 15 | 15 | 15 | $ | 209 | 155 | 93 | 33 | 19 | 20 |
(1) | The period-end VaR was less than the sum of the VaR components described above, which is due to portfolio diversification. The diversification effect arises because the risks are not perfectly correlated causing a portfolio of positions to usually be less risky than the sum of the risks of the positions alone. The diversification benefit is not meaningful for low and high metrics since they may occur on different days. |
(in millions, except ratio) | Average for Quarter ended June 30, 2019 | Average for Quarter ended June 30, 2020 | ||||
HQLA (1)(2) | $ | 352,298 | $ | 409,467 | ||
Projected net cash outflows | 291,624 | 316,268 | ||||
LCR | 121 | % | 129 | % |
(1) | Excludes excess HQLA at certain subsidiaries that is not transferable to other Wells Fargo entities. |
(2) | Net of applicable haircuts required under the LCR rule. |
June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||
(in millions) | Total | Encumbered | Unencumbered | Total | Encumbered | Unencumbered | Total | Encumbered | Unencumbered | Total | Encumbered | Unencumbered | ||||||||||||||||||||||||
Interest-earning deposits with banks | $ | 143,547 | — | 143,547 | 149,736 | — | 149,736 | $ | 237,799 | — | 237,799 | 119,493 | — | 119,493 | ||||||||||||||||||||||
Debt securities of U.S. Treasury and federal agencies | 60,655 | 2,384 | 58,271 | 57,688 | 1,504 | 56,184 | 58,486 | 3,181 | 55,305 | 61,099 | 3,107 | 57,992 | ||||||||||||||||||||||||
Mortgage-backed securities of federal agencies (1) | 249,619 | 34,627 | 214,992 | 244,211 | 35,656 | 208,555 | 255,447 | 37,215 | 218,232 | 258,589 | 41,135 | 217,454 | ||||||||||||||||||||||||
Total | $ | 453,821 | 37,011 | 416,810 | 451,635 | 37,160 | 414,475 | $ | 551,732 | 40,396 | 511,336 | 439,181 | 44,242 | 394,939 |
(1) | Included in encumbered |
Quarter ended | Quarter ended | |||||||||||||||||||||||||||||
(in millions) | Jun 30 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||||||||
Balance, period end | ||||||||||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | $ | 102,560 | 93,896 | 92,430 | 92,418 | 89,307 | $ | 49,659 | 79,036 | 92,403 | 110,399 | 102,560 | ||||||||||||||||||
Other short-term borrowings | 12,784 | 12,701 | 13,357 | 13,033 | 15,189 | 10,826 | 13,253 | 12,109 | 13,509 | 12,784 | ||||||||||||||||||||
Total | $ | 115,344 | 106,597 | 105,787 | 105,451 | 104,496 | $ | 60,485 | 92,289 | 104,512 | 123,908 | 115,344 | ||||||||||||||||||
Average daily balance for period | ||||||||||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | $ | 102,557 | 95,721 | 93,483 | 92,141 | 89,138 | $ | 52,868 | 90,722 | 103,614 | 109,499 | 102,557 | ||||||||||||||||||
Other short-term borrowings | 12,197 | 12,930 | 12,479 | 13,331 | 14,657 | 10,667 | 12,255 | 12,335 | 12,343 | 12,197 | ||||||||||||||||||||
Total | $ | 114,754 | 108,651 | 105,962 | 105,472 | 103,795 | $ | 63,535 | 102,977 | 115,949 | 121,842 | 114,754 | ||||||||||||||||||
Maximum month-end balance for period | ||||||||||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase (1) | $ | 105,098 | 97,650 | 93,918 | 92,531 | 92,103 | $ | 50,397 | 91,121 | 111,727 | 110,399 | 105,098 | ||||||||||||||||||
Other short-term borrowings (2) | 12,784 | 14,129 | 13,357 | 14,270 | 15,272 | 11,220 | 13,253 | 12,708 | 13,509 | 12,784 |
(1) | Highest month-end balance in each of the last five quarters was in |
(2) | Highest month-end balance in each of the last five quarters was in April and March 2020, and October, September and June |
June 30, 2019 | |||||||||||||||||||||
(in millions) | Remaining 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | ||||||||||||||
Wells Fargo & Company (Parent Only) | |||||||||||||||||||||
Senior notes | $ | 1,280 | 13,497 | 18,146 | 18,028 | 11,092 | 54,815 | 116,858 | |||||||||||||
Subordinated notes | — | — | — | — | 3,655 | 23,619 | 27,274 | ||||||||||||||
Junior subordinated notes | — | — | — | — | — | 1,733 | 1,733 | ||||||||||||||
Total long-term debt - Parent | $ | 1,280 | 13,497 | 18,146 | 18,028 | 14,747 | 80,167 | 145,865 | |||||||||||||
Wells Fargo Bank, N.A. and other bank entities (Bank) | |||||||||||||||||||||
Senior notes | $ | 17,219 | 30,630 | 27,232 | 2,148 | 2,883 | 181 | 80,293 | |||||||||||||
Subordinated notes | — | — | — | — | 1,041 | 4,354 | 5,395 | ||||||||||||||
Junior subordinated notes | — | — | — | — | — | 357 | 357 | ||||||||||||||
Securitizations and other bank debt | 1,302 | 1,793 | 861 | 418 | 108 | 2,035 | 6,517 | ||||||||||||||
Total long-term debt - Bank | $ | 18,521 | 32,423 | 28,093 | 2,566 | 4,032 | 6,927 | 92,562 | |||||||||||||
Other consolidated subsidiaries | |||||||||||||||||||||
Senior notes | $ | 1,146 | 66 | 1,123 | 12 | 422 | 248 | 3,017 | |||||||||||||
Securitizations and other bank debt | — | — | — | — | — | 32 | 32 | ||||||||||||||
Total long-term debt - Other consolidated subsidiaries | $ | 1,146 | 66 | 1,123 | 12 | 422 | 280 | 3,049 | |||||||||||||
Total long-term debt | $ | 20,947 | 45,986 | 47,362 | 20,606 | 19,201 | 87,374 | 241,476 |
June 30, 2020 | |||||||||||||||||||||
(in millions) | Remaining 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | Total | ||||||||||||||
Wells Fargo & Company (Parent Only) | |||||||||||||||||||||
Senior notes | $ | 7,665 | 17,999 | 18,411 | 11,573 | 12,346 | 88,248 | 156,242 | |||||||||||||
Subordinated notes | — | — | — | 3,789 | 772 | 26,818 | 31,379 | ||||||||||||||
Junior subordinated notes | — | — | — | — | — | 1,949 | 1,949 | ||||||||||||||
Total long-term debt – Parent | $ | 7,665 | 17,999 | 18,411 | 15,362 | 13,118 | 117,015 | 189,570 | |||||||||||||
Wells Fargo Bank, N.A. and other bank entities (Bank) | |||||||||||||||||||||
Senior notes | $ | 2,109 | 15,207 | 4,897 | 2,943 | 6 | 416 | 25,578 | |||||||||||||
Subordinated notes | — | — | — | 1,005 | — | 4,929 | 5,934 | ||||||||||||||
Junior subordinated notes | — | — | — | — | — | 369 | 369 | ||||||||||||||
Securitizations and other bank debt | 1,683 | 1,296 | 933 | 268 | 139 | 1,472 | 5,791 | ||||||||||||||
Total long-term debt – Bank | $ | 3,792 | 16,503 | 5,830 | 4,216 | 145 | 7,186 | 37,672 | |||||||||||||
Other consolidated subsidiaries | |||||||||||||||||||||
Senior notes | $ | 131 | 1,843 | 206 | 508 | 123 | 836 | 3,647 | |||||||||||||
Securitizations and other bank debt | — | — | — | — | — | 32 | 32 | ||||||||||||||
Total long-term debt – Other consolidated subsidiaries | $ | 131 | 1,843 | 206 | 508 | 123 | 868 | 3,679 | |||||||||||||
Total long-term debt | $ | 11,588 | 36,345 | 24,447 | 20,086 | 13,386 | 125,069 | 230,921 |
Wells Fargo & Company | Wells Fargo Bank, N.A. | ||||||
Senior debt | Short-term borrowings | Long-term deposits | Short-term borrowings | ||||
Moody’s | A2 | P-1 | Aa1 | P-1 | |||
S&P Global Ratings (1) | A- | A-2 | A+ | A-1 | |||
Fitch Ratings, Inc. | A+ | F1 | AA | F1+ | |||
DBRS Morningstar | AA (low) | R-1 (middle) | AA | R-1 (high) |
(1) | On July 22, 2020, S&P Global Ratings lowered the long-term rating of the Company to BBB+ from A- and revised the rating outlook to stable from negative. |
Capital Management |
June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||
(in millions, except ratios) | Advanced Approach | Standardized Approach | Advanced Approach | Standardized Approach | Required Minimum Capital Ratios | Advanced Approach | Standardized Approach | Advanced Approach | Standardized Approach | ||||||||||||||||||||||||
Common Equity Tier 1 | (A) | $ | 149,183 | 149,183 | 146,363 | 146,363 | (A) | $ | 133,055 | 133,055 | 138,760 | 138,760 | |||||||||||||||||||||
Tier 1 Capital | (B) | 170,675 | 170,675 | 167,866 | 167,866 | (B) | 152,871 | 152,871 | 158,949 | 158,949 | |||||||||||||||||||||||
Total Capital | (C) | 200,291 | 208,298 | 198,103 | 206,346 | (C) | 182,698 | 192,486 | 187,813 | 195,703 | |||||||||||||||||||||||
Risk-Weighted Assets | (D) | 1,182,838 | 1,246,683 | 1,177,350 | 1,247,210 | (D) | 1,195,423 | 1,213,062 | 1,165,079 | 1,245,853 | |||||||||||||||||||||||
Common Equity Tier 1 Capital Ratio | (A)/(D) | 12.61 | % | 11.97 | * | 12.43 | 11.74 | * | (A)/(D) | 9.00 | % | 11.13 | % | 10.97 | * | 11.91 | 11.14 | * | |||||||||||||||
Tier 1 Capital Ratio | (B)/(D) | 14.43 | 13.69 | * | 14.26 | 13.46 | * | (B)/(D) | 10.50 | 12.79 | 12.60 | * | 13.64 | 12.76 | * | ||||||||||||||||||
Total Capital Ratio | (C)/(D) | 16.93 | 16.71 | * | 16.83 | 16.54 | * | (C)/(D) | 12.50 | 15.28 | * | 15.87 | 16.12 | 15.71 | * |
(1) | See Table 37 for information regarding the calculation and components of CET1, tier 1 capital, total capital and RWAs. |
(2) | Fully phased-in total capital amounts and ratios are considered non-GAAP financial measures that are used by management, bank regulatory agencies, investors and analysts to assess and monitor the Company’s capital position. See Table 37 for information regarding the calculation and components of |
(3) | RWAs and capital ratios for December 31, 2019, have been revised as a result of a decrease in RWAs under the Advanced Approach due to the correction of duplicated operational loss amounts. |
June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||
(in millions) | Advanced Approach | Standardized Approach | Advanced Approach | Standardized Approach | Advanced Approach | Standardized Approach | Advanced Approach | Standardized Approach | ||||||||||||||||||
Total equity | $ | 200,037 | 200,037 | 197,066 | 197,066 | $ | 180,122 | 180,122 | 187,984 | 187,984 | ||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Preferred stock | (23,021 | ) | (23,021 | ) | (23,214 | ) | (23,214 | ) | (21,098 | ) | (21,098 | ) | (21,549 | ) | (21,549 | ) | ||||||||||
Additional paid-in capital on ESOP preferred stock | (78 | ) | (78 | ) | (95 | ) | (95 | ) | ||||||||||||||||||
Additional paid-in capital on preferred stock | 159 | 159 | (71 | ) | (71 | ) | ||||||||||||||||||||
Unearned ESOP shares | 1,292 | 1,292 | 1,502 | 1,502 | 875 | 875 | 1,143 | 1,143 | ||||||||||||||||||
Noncontrolling interests | (995 | ) | (995 | ) | (900 | ) | (900 | ) | (736 | ) | (736 | ) | (838 | ) | (838 | ) | ||||||||||
Total common stockholders’ equity | 177,235 | 177,235 | 174,359 | 174,359 | 159,322 | 159,322 | 166,669 | 166,669 | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Goodwill | (26,415 | ) | (26,415 | ) | (26,418 | ) | (26,418 | ) | (26,385 | ) | (26,385 | ) | (26,390 | ) | (26,390 | ) | ||||||||||
Certain identifiable intangible assets (other than MSRs) | (493 | ) | (493 | ) | (559 | ) | (559 | ) | (389 | ) | (389 | ) | (437 | ) | (437 | ) | ||||||||||
Other assets (1) | (2,251 | ) | (2,251 | ) | (2,187 | ) | (2,187 | ) | ||||||||||||||||||
Applicable deferred taxes (2) | 788 | 788 | 785 | 785 | ||||||||||||||||||||||
Investment in certain subsidiaries and other | 319 | 319 | 383 | 383 | ||||||||||||||||||||||
Common Equity Tier 1 (Fully Phased-In) | 149,183 | 149,183 | 146,363 | 146,363 | ||||||||||||||||||||||
Goodwill and other intangibles on nonmarketable equity securities (included in other assets) | (2,050 | ) | (2,050 | ) | (2,146 | ) | (2,146 | ) | ||||||||||||||||||
Applicable deferred taxes related to goodwill and other intangible assets (1) | 831 | 831 | 810 | 810 | ||||||||||||||||||||||
CECL transition provision (2) | 1,857 | 1,857 | — | — | ||||||||||||||||||||||
Other | (131 | ) | (131 | ) | 254 | 254 | ||||||||||||||||||||
Common Equity Tier 1 | 133,055 | 133,055 | 138,760 | 138,760 | ||||||||||||||||||||||
Common Equity Tier 1 (Fully Phased-In) | $ | 149,183 | 149,183 | 146,363 | 146,363 | |||||||||||||||||||||
Common Equity Tier 1 | $ | 133,055 | 133,055 | 138,760 | 138,760 | |||||||||||||||||||||
Preferred stock | 23,021 | 23,021 | 23,214 | 23,214 | 21,098 | 21,098 | 21,549 | 21,549 | ||||||||||||||||||
Additional paid-in capital on ESOP preferred stock | 78 | 78 | 95 | 95 | ||||||||||||||||||||||
Additional paid-in capital on preferred stock | (159 | ) | (159 | ) | 71 | 71 | ||||||||||||||||||||
Unearned ESOP shares | (1,292 | ) | (1,292 | ) | (1,502 | ) | (1,502 | ) | (875 | ) | (875 | ) | (1,143 | ) | (1,143 | ) | ||||||||||
Other | (315 | ) | (315 | ) | (304 | ) | (304 | ) | (248 | ) | (248 | ) | (288 | ) | (288 | ) | ||||||||||
Total Tier 1 capital (Fully Phased-In) | (A) | 170,675 | 170,675 | 167,866 | 167,866 | |||||||||||||||||||||
Total Tier 1 capital | (A) | 152,871 | 152,871 | 158,949 | 158,949 | |||||||||||||||||||||
Long-term debt and other instruments qualifying as Tier 2 | 27,223 | 27,223 | 27,946 | 27,946 | 25,471 | 25,471 | 26,515 | 26,515 | ||||||||||||||||||
Qualifying allowance for credit losses (3) | 2,596 | 10,603 | 2,463 | 10,706 | 4,591 | 14,379 | 2,566 | 10,456 | ||||||||||||||||||
Other | (203 | ) | (203 | ) | (172 | ) | (172 | ) | (235 | ) | (235 | ) | (217 | ) | (217 | ) | ||||||||||
Total Tier 2 capital (Fully Phased-In) | (B) | 29,616 | 37,623 | 30,237 | 38,480 | (B) | 29,827 | 39,615 | 28,864 | 36,754 | ||||||||||||||||
Effect of Transition Requirements | 519 | 519 | 695 | 695 | ||||||||||||||||||||||
Total Tier 2 capital (Transition Requirements) | $ | 30,135 | 38,142 | 30,932 | 39,175 | |||||||||||||||||||||
Effect of Basel III Transition Requirements | 133 | 133 | 520 | 520 | ||||||||||||||||||||||
Total Tier 2 capital (Basel III Transition Requirements) | $ | 29,960 | 39,748 | 29,384 | 37,274 | |||||||||||||||||||||
Total qualifying capital (Fully Phased-In) | (A)+(B) | $ | 200,291 | 208,298 | 198,103 | 206,346 | (A)+(B) | $ | 182,698 | 192,486 | 187,813 | 195,703 | ||||||||||||||
Total Effect of Transition Requirements | 519 | 519 | 695 | 695 | ||||||||||||||||||||||
Total qualifying capital (Transition Requirements) | $ | 200,810 | 208,817 | 198,798 | 207,041 | |||||||||||||||||||||
Total Effect of Basel IIII Transition Requirements | 133 | 133 | 520 | 520 | ||||||||||||||||||||||
Total qualifying capital (Basel III Transition Requirements) | $ | 182,831 | 192,619 | 188,333 | 196,223 | |||||||||||||||||||||
Risk-Weighted Assets (RWAs) (4)(5): | ||||||||||||||||||||||||||
Credit risk | $ | 802,054 | 1,203,474 | 803,273 | 1,201,246 | |||||||||||||||||||||
Credit risk (6) | $ | 787,340 | 1,145,141 | 790,784 | 1,210,209 | |||||||||||||||||||||
Market risk | 43,209 | 43,209 | 45,964 | 45,964 | 67,920 | 67,921 | 35,644 | 35,644 | ||||||||||||||||||
Operational risk | 337,575 | — | 328,113 | N/A | ||||||||||||||||||||||
Total RWAs (Fully Phased-In) | $ | 1,182,838 | 1,246,683 | 1,177,350 | 1,247,210 | |||||||||||||||||||||
Operational risk (7) | 340,163 | — | 338,651 | — | ||||||||||||||||||||||
Total RWAs (7) | $ | 1,195,423 | 1,213,062 | 1,165,079 | 1,245,853 |
(1) |
(2) | In second quarter 2020, the Company elected to apply a modified transition provision issued by federal banking regulators in March 2020 related to the impact of CECL on regulatory capital. The rule permits certain banking organizations to exclude from regulatory capital the initial adoption impact of CECL, plus 25% of the cumulative changes in the ACL under CECL for each period until December 31, 2021, followed by a three-year phase-out of the benefits. The impact of the CECL transition provision on our regulatory capital at June 30, 2020, was an increase in capital of $1.9 billion, reflecting a $991 million (post-tax) increase in capital recognized upon our initial adoption of CECL, offset by 25% of the $11.4 billion increase in our ACL under CECL from January 1, 2020, through June 30, 2020. |
(3) | Under the Advanced Approach the allowance for credit losses that exceeds expected credit losses is eligible for inclusion in Tier 2 Capital, to the extent the excess allowance does not exceed |
(4) | RWAs calculated under the Advanced Approach utilize a risk-sensitive methodology, which relies upon the use of internal credit models based upon our experience with internal rating grades. Advanced Approach also includes an operational risk component, which reflects the risk of operating loss resulting from inadequate or failed internal processes or systems. |
(5) | Under the regulatory guidelines for risk-based capital, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories according to the obligor, or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar amount in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total RWAs. |
(6) | Includes an increase of $1.5 billion under both the Advanced Approach and Standardized Approach related to the impact of the CECL transition provision on our excess allowance for credit losses as of June 30, 2020. See footnote (3) to this table. |
(7) | Amounts for December 31, 2019, have been revised as a result of a decrease in RWAs under the Advanced Approach due to the correction of duplicated operational loss amounts. |
(in millions) | ||||||||
Common Equity Tier 1 (Fully Phased-In) at December 31, 2018 | $ | 146,363 | ||||||
Common Equity Tier 1 at December 31, 2019 | $ | 138,760 | ||||||
Net income applicable to common stock | 11,355 | (2,652 | ) | |||||
Common stock dividends | (4,069 | ) | (4,189 | ) | ||||
Common stock issued, repurchased, and stock compensation-related items | (8,030 | ) | (2,189 | ) | ||||
Changes in cumulative other comprehensive income | 513 | |||||||
Cumulative effect from change in accounting policies (1) | 991 | |||||||
Goodwill | 3 | 5 | ||||||
Certain identifiable intangible assets (other than MSRs) | 67 | 48 | ||||||
Other assets (1) | (64 | ) | ||||||
Applicable deferred taxes (2) | 3 | |||||||
Investment in certain subsidiaries and other | 3,555 | |||||||
Goodwill and other intangibles on nonmarketable equity securities (included in other assets) | 96 | |||||||
Applicable deferred taxes related to goodwill and other intangible assets (2) | 21 | |||||||
CECL transition provision (3) | 1,857 | |||||||
Other | (206 | ) | ||||||
Change in Common Equity Tier 1 | 2,820 | (5,705 | ) | |||||
Common Equity Tier 1 (Fully Phased-In) at June 30, 2019 | $ | 149,183 | ||||||
Common Equity Tier 1 at June 30, 2020 | $ | 133,055 |
(1) |
(2) |
(3) | In second quarter 2020, the Company elected to apply a modified transition provision issued by federal banking regulators in March 2020 related to the impact of CECL on regulatory capital. The rule permits certain banking organizations to exclude from regulatory capital the initial adoption impact of CECL, plus 25% of the cumulative changes in the ACL under CECL for each period until December 31, 2021, followed by a three-year phase-out of the benefits. The impact of the CECL transition provision on our regulatory capital at June 30, 2020, was an increase in capital of $1.9 billion, reflecting a $991 million (post-tax) increase in capital recognized upon our initial adoption of CECL, offset by 25% of the $11.4 billion increase in our ACL under CECL from January 1, 2020, through June 30, 2020. |
(in millions) | Advanced Approach | Standardized Approach | Advanced Approach | Standardized Approach | ||||||
RWAs (Fully Phased-In) at December 31, 2018 | $ | 1,177,350 | 1,247,210 | |||||||
RWAs at December 31, 2019 (1) | $ | 1,165,079 | 1,245,853 | |||||||
Net change in credit risk RWAs | (1,219 | ) | 2,228 | (3,444 | ) | (65,068 | ) | |||
Net change in market risk RWAs | (2,755 | ) | (2,755 | ) | 32,276 | 32,277 | ||||
Net change in operational risk RWAs | 9,462 | — | 1,512 | — | ||||||
Total change in RWAs | 5,488 | (527 | ) | 30,344 | (32,791 | ) | ||||
RWAs (Fully Phased-In) at June 30, 2019 | $ | 1,182,838 | 1,246,683 | |||||||
RWAs at June 30, 2020 | $ | 1,195,423 | 1,213,062 |
(1) | Amount for December 31, 2019, has been revised as a result of a decrease in RWAs under the Advanced Approach due to the correction of duplicated operational loss amounts. |
(2) | Includes an increase of $1.5 billion under both the Advanced Approach and Standardized Approach related to the impact of the CECL transition provision on our excess allowance for credit losses. See Table 37 for more information. |
Balance at period end | Average balance | Balance at period end | Average balance | |||||||||||||||||||||||||||||||||||||||||
Quarter ended | Quarter ended | Six months ended | Quarter ended | Quarter ended | Six months ended | |||||||||||||||||||||||||||||||||||||||
(in millions, except ratios) | Jun 30, 2019 | Mar 31, 2019 | Jun 30, 2018 | Jun 30, 2019 | Mar 31, 2019 | Jun 30, 2018 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2020 | Mar 31, 2020 | Jun 30, 2019 | Jun 30, 2020 | Mar 31, 2020 | Jun 30, 2019 | Jun 30, 2020 | Jun 30, 2019 | ||||||||||||||||||||||||||||
Total equity | $ | 200,037 | 198,733 | 206,069 | 199,685 | 198,349 | 206,067 | 199,021 | 206,123 | $ | 180,122 | 183,330 | 200,037 | 184,108 | 188,170 | 199,685 | 186,139 | 199,021 | ||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||
Preferred stock | (23,021 | ) | (23,214 | ) | (25,737 | ) | (23,023 | ) | (23,214 | ) | (26,021 | ) | (23,118 | ) | (26,089 | ) | (21,098 | ) | (21,347 | ) | (23,021 | ) | (21,344 | ) | (21,794 | ) | (23,023 | ) | (21,569 | ) | (23,118 | ) | ||||||||||||
Additional paid-in capital on ESOP preferred stock | (78 | ) | (95 | ) | (116 | ) | (78 | ) | (95 | ) | (129 | ) | (87 | ) | (141 | ) | ||||||||||||||||||||||||||||
Additional paid-in capital on preferred stock | 159 | 140 | (78 | ) | 140 | 135 | (78 | ) | 138 | (87 | ) | |||||||||||||||||||||||||||||||||
Unearned ESOP shares | 1,292 | 1,502 | 2,051 | 1,294 | 1,502 | 2,348 | 1,397 | 2,428 | 875 | 1,143 | 1,292 | 1,140 | 1,143 | 1,294 | 1,141 | 1,397 | ||||||||||||||||||||||||||||
Noncontrolling interests | (995 | ) | (901 | ) | (881 | ) | (939 | ) | (899 | ) | (919 | ) | (919 | ) | (958 | ) | (736 | ) | (612 | ) | (995 | ) | (643 | ) | (785 | ) | (939 | ) | (714 | ) | (919 | ) | ||||||||||||
Total common stockholders’ equity | (A) | 177,235 | 176,025 | 181,386 | 176,939 | 175,643 | 181,346 | 176,294 | 181,363 | (A) | 159,322 | 162,654 | 177,235 | 163,401 | 166,869 | 176,939 | 165,135 | 176,294 | ||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||
Goodwill | (26,415 | ) | (26,420 | ) | (26,429 | ) | (26,415 | ) | (26,420 | ) | (26,444 | ) | (26,417 | ) | (26,480 | ) | (26,385 | ) | (26,381 | ) | (26,415 | ) | (26,384 | ) | (26,387 | ) | (26,415 | ) | (26,386 | ) | (26,417 | ) | ||||||||||||
Certain identifiable intangible assets (other than MSRs) | (493 | ) | (522 | ) | (1,091 | ) | (505 | ) | (543 | ) | (1,223 | ) | (524 | ) | (1,355 | ) | (389 | ) | (413 | ) | (493 | ) | (402 | ) | (426 | ) | (505 | ) | (414 | ) | (524 | ) | ||||||||||||
Other assets (1) | (2,251 | ) | (2,131 | ) | (2,160 | ) | (2,155 | ) | (2,159 | ) | (2,271 | ) | (2,157 | ) | (2,252 | ) | ||||||||||||||||||||||||||||
Applicable deferred taxes (2) | 788 | 771 | 874 | 780 | 784 | 889 | 782 | 911 | ||||||||||||||||||||||||||||||||||||
Goodwill and other intangibles on nonmarketable equity securities (included in other assets) | (2,050 | ) | (1,894 | ) | (2,251 | ) | (1,922 | ) | (2,152 | ) | (2,155 | ) | (2,037 | ) | (2,157 | ) | ||||||||||||||||||||||||||||
Applicable deferred taxes related to goodwill and other intangible assets (1) | 831 | 821 | 788 | 828 | 818 | 780 | 823 | 782 | ||||||||||||||||||||||||||||||||||||
Tangible common equity | (B) | $ | 148,864 | 147,723 | 152,580 | 148,644 | 147,305 | 152,297 | 147,978 | 152,187 | (B) | $ | 131,329 | 134,787 | 148,864 | 135,521 | 138,722 | 148,644 | 137,121 | 147,978 | ||||||||||||||||||||||||
Common shares outstanding | (C) | 4,419.6 | 4,511.9 | 4,849.1 | N/A | N/A | N/A | N/A | N/A | (C) | 4,119.6 | 4,096.4 | 4,419.6 | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
Net income applicable to common stock | (D) | N/A | N/A | N/A | $ | 5,848 | 5,507 | 4,792 | 11,355 | 9,525 | (D) | N/A | N/A | N/A | $ | (2,694 | ) | 42 | 5,848 | (2,652 | ) | 11,355 | ||||||||||||||||||||||
Book value per common share | (A)/(C) | $ | 40.10 | 39.01 | 37.41 | N/A | N/A | N/A | N/A | N/A | (A)/(C) | $ | 38.67 | 39.71 | 40.10 | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Tangible book value per common share | (B)/(C) | 33.68 | 32.74 | 31.47 | N/A | N/A | N/A | N/A | N/A | (B)/(C) | 31.88 | 32.90 | 33.68 | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
Return on average common stockholders’ equity (ROE) (annualized) | (D)/(A) | N/A | N/A | N/A | 13.26 | % | 12.71 | 10.60 | 12.99 | 10.59 | (D)/(A) | N/A | N/A | N/A | (6.63 | )% | 0.10 | 13.26 | (3.23 | ) | 12.99 | |||||||||||||||||||||||
Return on average tangible common equity (ROTCE) (annualized) | (D)/(B) | N/A | N/A | N/A | 15.78 | 15.16 | 12.62 | 15.47 | 12.62 | (D)/(B) | N/A | N/A | N/A | (8.00 | ) | 0.12 | 15.78 | (3.89 | ) | 15.47 |
(1) |
(in millions, except ratio) | Quarter ended June 30, 2019 | Quarter ended June 30, 2020 | ||||||
Tier 1 capital | (A) | $ | 170,675 | (A) | $ | 152,871 | ||
Total average assets | 1,900,627 | 1,950,796 | ||||||
Less: Goodwill and other permitted Tier 1 capital deductions (net of deferred tax liabilities) | 28,821 | 28,367 | ||||||
Less: Other SLR exclusions | 218,984 | |||||||
Total adjusted average assets | 1,871,806 | 1,703,445 | ||||||
Plus adjustments for off-balance sheet exposures: | ||||||||
Derivatives (1) | 68,229 | 74,435 | ||||||
Repo-style transactions (2) | 5,033 | 3,604 | ||||||
Other (3) | 257,539 | 250,765 | ||||||
Total off-balance sheet exposures | 330,801 | 328,804 | ||||||
Total leverage exposure | (B) | $ | 2,202,607 | (B) | $ | 2,032,249 | ||
Supplementary leverage ratio | (A)/(B) | 7.7 | % | (A)/(B) | 7.52 | % |
(1) | Adjustment represents derivatives and collateral netting exposures as defined for supplementary leverage ratio determination purposes. |
(2) | Adjustment represents counterparty credit risk for repo-style transactions where Wells Fargo & Company is the principal (i.e., principal counterparty facing the client). |
(3) | Adjustment represents credit equivalent amounts of other off-balance sheet exposures not already included as derivatives and repo-style transactions exposures. |
Regulatory Matters |
Critical Accounting Policies |
• | Economic assumptions and the length of the initial loss forecast period. Forecasted economic variables, such as gross domestic product (GDP), unemployment rate or collateral asset prices, are used to estimate expected credit losses. While many of these economic variables are evaluated at the macro-economy level, some economic variables may be forecasted at more granular levels, for example, using the metro statistical area (MSA) level for unemployment rates, home prices and commercial real estate prices. Quarterly, we assess the length of the initial loss forecast period and have currently set the period to one year. Management exercises judgment when assigning weight to the three economic scenarios that are used to estimate future credit losses. The three scenarios include a most likely expectation of economic variables referred to as the base case scenario, as well as an optimistic (upside) scenario and a pessimistic (downside) scenario. |
• | Reversion of losses beyond the initial forecast period. We use a reversion approach to connect the losses estimated for our initial loss forecast period to the period of our historical loss forecast based on economic conditions at the measurement date. Our reversion methodology considers the type of portfolio, point in the credit cycle, expected length of recessions and recoveries, as well as other relevant factors. The length of reversion period varies by asset type – one year for shorter contractual term loans such as commercial loans and two years for longer contractual term loans such as real estate 1-4 family mortgage loans. We assess the reversion approach on a quarterly basis and the length of the reversion period by asset type annually. |
• | Historical loss expectations. At the end of the reversion period, we incorporate the changes in economic variables observed during representative historical time periods that include both recessions and expansions. This analysis is used to compute average losses for any given portfolio and its associated credit characteristics. Annually, we assess the historical time periods and ensure the average loss estimates are representative of our historical loss experience. |
• | Credit risk ratings applied to individual commercial loans, unfunded credit commitments, and debt securities. Individually assessed credit risk ratings are considered key credit variables in our modeled approaches to help assess probability of default and loss given default. Borrower quality ratings are aligned to the borrower’s financial strength and contribute to forecasted probability of default curves. Collateral quality ratings combined with forecasted collateral prices (as applicable) contribute to the forecasted severity of loss in the event of default. These credit risk ratings are reviewed by experienced senior credit officers and subjected to reviews by an internal team of credit risk specialists. |
• | Usage of credit loss estimation models. We use internally developed models that incorporate credit attributes and economic variables to generate estimates of credit losses. Management uses a combination of judgement and quantitative analytics in the determination of segmentation, modeling approach, and variables that are leveraged in the models. These models are validated in accordance with the Company’s policies by an internal model validation group.We routinely assess our model performance and apply |
• | Valuation of collateral. The current fair value of collateral is utilized to assess the expected credit losses when a financial asset is considered to be collateral dependent. We apply judgment when valuing the collateral either through appraisals, evaluation of the cash flows of the property, or other quantitative techniques. Decreases in collateral valuations support incremental charge-downs and increases in collateral valuation are included in the allowance for credit losses as a negative allowance when the financial asset has been previously written-down below current recovery value. |
• | Contractual term considerations. The remaining contractual term of a loan is adjusted for expected prepayments and certain expected extensions, renewals, or modifications. We extend the contractual term when we are not able to unconditionally cancel contractual renewals or extension options. We also incorporate into our allowance for credit losses any scenarios where we reasonably expect to provide an extension through a TDR. |
• | Qualitative factors which may not be adequately captured in the loss models. These amounts represent management’s judgment of risks inherent in the processes and assumptions used in establishing the ACL. We also consider economic environmental factors, modeling assumptions and performance, process risk, and other subjective factors, including industry trends and emerging risk assessments. |
Current Accounting Developments |
Description | Effective date and financial statement impact | |||
Targeted Improvements to the Accounting for Long-Duration Contractsand subsequent related updates | ||||
The Update requires all features in long-duration insurance contracts that meet the definition of a market risk benefit to be measured at fair value through earnings with changes in fair value attributable to our own credit risk recognized in other comprehensive income. Currently, two measurement models exist for these features, fair value and insurance accrual. The Update requires the use of a standardized discount rate and routine updates for insurance assumptions used in valuing the liability for future policy benefits for traditional long-duration contracts. The Update also simplifies the amortization of deferred acquisition costs. | The guidance becomes effective on January 1, | |||
• | ASU |
Forward-Looking Statements |
• | the other risk factors and uncertainties described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, |
Risk Factors |
Disclosure Controls and Procedures |
Internal Control Over Financial Reporting |
Wells Fargo & Company and Subsidiaries | Consolidated Statement of Income (Unaudited) | ||||||||||||||||||||||||
Quarter ended June 30, | Six months ended June 30, | Quarter ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(in millions, except per share amounts) | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||
Interest income | |||||||||||||||||||||||||
Debt securities | $ | 3,781 | 3,594 | 7,722 | 7,008 | $ | 2,946 | 3,781 | $ | 6,418 | 7,722 | ||||||||||||||
Mortgage loans held for sale | 195 | 198 | 347 | 377 | 230 | 195 | 427 | 347 | |||||||||||||||||
Loans held for sale | 20 | 48 | 44 | 72 | 7 | 20 | 19 | 44 | |||||||||||||||||
Loans | 11,316 | 10,912 | 22,670 | 21,491 | 8,448 | 11,316 | 18,513 | 22,670 | |||||||||||||||||
Equity securities | 236 | 221 | 446 | 452 | 116 | 236 | 322 | 446 | |||||||||||||||||
Other interest income | 1,438 | 1,042 | 2,760 | 1,962 | 54 | 1,438 | 829 | 2,760 | |||||||||||||||||
Total interest income | 16,986 | 16,015 | 33,989 | 31,362 | 11,801 | 16,986 | 26,528 | 33,989 | |||||||||||||||||
Interest expense | |||||||||||||||||||||||||
Deposits | 2,213 | 1,268 | 4,239 | 2,358 | 585 | 2,213 | 2,327 | 4,239 | |||||||||||||||||
Short-term borrowings | 646 | 398 | 1,242 | 709 | (17 | ) | 646 | 274 | 1,242 | ||||||||||||||||
Long-term debt | 1,900 | 1,658 | 3,827 | 3,234 | 1,237 | 1,900 | 2,477 | 3,827 | |||||||||||||||||
Other interest expense | 132 | 150 | 275 | 282 | 116 | 132 | 258 | 275 | |||||||||||||||||
Total interest expense | 4,891 | 3,474 | 9,583 | 6,583 | 1,921 | 4,891 | 5,336 | 9,583 | |||||||||||||||||
Net interest income | 12,095 | 12,541 | 24,406 | 24,779 | 9,880 | 12,095 | 21,192 | 24,406 | |||||||||||||||||
Provision for credit losses | 503 | 452 | 1,348 | 643 | |||||||||||||||||||||
Provision (reversal of provision) for credit losses: | |||||||||||||||||||||||||
Debt securities (1) | (31 | ) | — | 141 | — | ||||||||||||||||||||
Loans | 9,565 | 503 | 13,398 | 1,348 | |||||||||||||||||||||
Net interest income after provision for credit losses | 11,592 | 12,089 | 23,058 | 24,136 | 346 | 11,592 | 7,653 | 23,058 | |||||||||||||||||
Noninterest income | |||||||||||||||||||||||||
Service charges on deposit accounts | 1,206 | 1,163 | 2,300 | 2,336 | 930 | 1,206 | 2,139 | 2,300 | |||||||||||||||||
Trust and investment fees | 3,568 | 3,675 | 6,941 | 7,358 | 3,351 | 3,568 | 6,925 | 6,941 | |||||||||||||||||
Card fees | 1,025 | 1,001 | 1,969 | 1,909 | 797 | 1,025 | 1,689 | 1,969 | |||||||||||||||||
Other fees | 800 | 846 | 1,570 | 1,646 | 578 | 800 | 1,210 | 1,570 | |||||||||||||||||
Mortgage banking | 758 | 770 | 1,466 | 1,704 | 317 | 758 | 696 | 1,466 | |||||||||||||||||
Insurance | 93 | 102 | 189 | 216 | |||||||||||||||||||||
Net gains from trading activities | 229 | 191 | 586 | 434 | 807 | 229 | 871 | 586 | |||||||||||||||||
Net gains on debt securities (1) | 20 | 41 | 145 | 42 | |||||||||||||||||||||
Net gains from equity securities (2) | 622 | 295 | 1,436 | 1,078 | |||||||||||||||||||||
Net gains on debt securities | 212 | 20 | 449 | 145 | |||||||||||||||||||||
Net gains (losses) from equity securities | 533 | 622 | (868 | ) | 1,436 | ||||||||||||||||||||
Lease income | 424 | 443 | 867 | 898 | 334 | 424 | 686 | 867 | |||||||||||||||||
Other | 744 | 485 | 1,318 | 1,087 | |||||||||||||||||||||
Other (2) | 97 | 837 | 564 | 1,507 | |||||||||||||||||||||
Total noninterest income | 9,489 | 9,012 | 18,787 | 18,708 | 7,956 | 9,489 | 14,361 | 18,787 | |||||||||||||||||
Noninterest expense | |||||||||||||||||||||||||
Salaries | 4,541 | 4,465 | 8,966 | 8,828 | |||||||||||||||||||||
Commission and incentive compensation | 2,597 | 2,642 | 5,442 | 5,410 | |||||||||||||||||||||
Employee benefits | 1,336 | 1,245 | 3,274 | 2,843 | |||||||||||||||||||||
Equipment | 607 | 550 | 1,268 | 1,167 | |||||||||||||||||||||
Net occupancy | 719 | 722 | 1,436 | 1,435 | |||||||||||||||||||||
Personnel (2) | 8,911 | 8,474 | 17,225 | 17,682 | |||||||||||||||||||||
Technology and equipment (2) | 562 | 641 | 1,268 | 1,335 | |||||||||||||||||||||
Occupancy | 871 | 719 | 1,586 | 1,436 | |||||||||||||||||||||
Core deposit and other intangibles | 27 | 265 | 55 | 530 | 22 | 27 | 45 | 55 | |||||||||||||||||
FDIC and other deposit assessments | 144 | 297 | 303 | 621 | 165 | 144 | 283 | 303 | |||||||||||||||||
Other | 3,478 | 3,796 | 6,621 | 8,190 | |||||||||||||||||||||
Other (2) | 4,020 | 3,444 | 7,192 | 6,554 | |||||||||||||||||||||
Total noninterest expense | 13,449 | 13,982 | 27,365 | 29,024 | 14,551 | 13,449 | 27,599 | 27,365 | |||||||||||||||||
Income before income tax expense | 7,632 | 7,119 | 14,480 | 13,820 | |||||||||||||||||||||
Income tax expense | 1,294 | 1,810 | 2,175 | 3,184 | |||||||||||||||||||||
Net income before noncontrolling interests | 6,338 | 5,309 | 12,305 | 10,636 | |||||||||||||||||||||
Less: Net income from noncontrolling interests | 132 | 123 | 239 | 314 | |||||||||||||||||||||
Wells Fargo net income | $ | 6,206 | 5,186 | 12,066 | 10,322 | ||||||||||||||||||||
Income (loss) before income tax expense (benefit) | (6,249 | ) | 7,632 | (5,585 | ) | 14,480 | |||||||||||||||||||
Income tax expense (benefit) | (3,917 | ) | 1,294 | (3,758 | ) | 2,175 | |||||||||||||||||||
Net income (loss) before noncontrolling interests | (2,332 | ) | 6,338 | (1,827 | ) | 12,305 | |||||||||||||||||||
Less: Net income (loss) from noncontrolling interests | 47 | 132 | (101 | ) | 239 | ||||||||||||||||||||
Wells Fargo net income (loss) | $ | (2,379 | ) | 6,206 | $ | (1,726 | ) | 12,066 | |||||||||||||||||
Less: Preferred stock dividends and other | 358 | 394 | 711 | 797 | 315 | 358 | 926 | 711 | |||||||||||||||||
Wells Fargo net income applicable to common stock | $ | 5,848 | 4,792 | 11,355 | 9,525 | ||||||||||||||||||||
Wells Fargo net income (loss) applicable to common stock | $ | (2,694 | ) | 5,848 | $ | (2,652 | ) | 11,355 | |||||||||||||||||
Per share information | |||||||||||||||||||||||||
Earnings per common share | $ | 1.31 | 0.98 | 2.52 | 1.95 | ||||||||||||||||||||
Diluted earnings per common share | 1.30 | 0.98 | 2.50 | 1.94 | |||||||||||||||||||||
Earnings (loss) per common share | $ | (0.66 | ) | 1.31 | $ | (0.65 | ) | 2.52 | |||||||||||||||||
Diluted earnings (loss) per common share (3) | (0.66 | ) | 1.30 | (0.65 | ) | 2.50 | |||||||||||||||||||
Average common shares outstanding | 4,469.4 | 4,865.8 | 4,510.2 | 4,875.7 | 4,105.5 | 4,469.4 | 4,105.2 | 4,510.2 | |||||||||||||||||
Diluted average common shares outstanding | 4,495.0 | 4,899.8 | 4,540.1 | 4,916.1 | |||||||||||||||||||||
Diluted average common shares outstanding (3) | 4,105.5 | 4,495.0 | 4,105.2 | 4,540.1 |
(1) | Prior to our adoption of Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (CECL), on January 1, 2020, provision for credit losses |
(2) |
(3) | In second quarter 2020, diluted earnings per common share equaled earnings per common share because our securities convertible into common shares had an anti-dilutive effect. |
Wells Fargo & Company and Subsidiaries | ||||||||||||||||||||||||||
Consolidated Statement of Comprehensive Income (Unaudited) | Consolidated Statement of Comprehensive Income (Unaudited) | Consolidated Statement of Comprehensive Income (Unaudited) | ||||||||||||||||||||||||
Quarter ended June 30, | Six months ended June 30, | Quarter ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||
Wells Fargo net income | $ | 6,206 | 5,186 | 12,066 | 10,322 | |||||||||||||||||||||
Wells Fargo net income (loss) | $ | (2,379 | ) | 6,206 | (1,726 | ) | 12,066 | |||||||||||||||||||
Other comprehensive income (loss), before tax: | ||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||
Net unrealized gains (losses) arising during the period | 1,709 | (617 | ) | 4,540 | (4,060 | ) | ||||||||||||||||||||
Net unrealized gains arising during the period | 1,596 | 1,709 | 1,486 | 4,540 | ||||||||||||||||||||||
Reclassification of net (gains) losses to net income | 39 | 49 | (42 | ) | 117 | (90 | ) | 39 | (262 | ) | (42 | ) | ||||||||||||||
Derivative and hedging activities: | ||||||||||||||||||||||||||
Net unrealized gains (losses) arising during the period | 57 | (150 | ) | 22 | (392 | ) | (52 | ) | 57 | 72 | 22 | |||||||||||||||
Reclassification of net losses to net income | 79 | 77 | 158 | 137 | 55 | 79 | 113 | 158 | ||||||||||||||||||
Defined benefit plans adjustments: | ||||||||||||||||||||||||||
Net actuarial and prior service gains (losses) arising during the period | — | — | (4 | ) | 6 | |||||||||||||||||||||
Net actuarial and prior service losses arising during the period | (674 | ) | — | (671 | ) | (4 | ) | |||||||||||||||||||
Amortization of net actuarial loss, settlements and other to net income | 33 | 29 | 68 | 61 | 101 | 33 | 137 | 68 | ||||||||||||||||||
Foreign currency translation adjustments: | ||||||||||||||||||||||||||
Net unrealized gains (losses) arising during the period | 14 | (83 | ) | 56 | (85 | ) | 51 | 14 | (144 | ) | 56 | |||||||||||||||
Other comprehensive income (loss), before tax | 1,931 | (695 | ) | 4,798 | (4,216 | ) | ||||||||||||||||||||
Income tax benefit (expense) related to other comprehensive income | (473 | ) | 154 | (1,167 | ) | 1,016 | ||||||||||||||||||||
Other comprehensive income (loss), net of tax | 1,458 | (541 | ) | 3,631 | (3,200 | ) | ||||||||||||||||||||
Other comprehensive income, before tax | 987 | 1,931 | 731 | 4,798 | ||||||||||||||||||||||
Income tax expense related to other comprehensive income | (221 | ) | (473 | ) | (219 | ) | (1,167 | ) | ||||||||||||||||||
Other comprehensive income, net of tax | 766 | 1,458 | 512 | 3,631 | ||||||||||||||||||||||
Less: Other comprehensive loss from noncontrolling interests | — | (1 | ) | — | (1 | ) | — | — | (1 | ) | — | |||||||||||||||
Wells Fargo other comprehensive income (loss), net of tax | 1,458 | (540 | ) | 3,631 | (3,199 | ) | ||||||||||||||||||||
Wells Fargo comprehensive income | 7,664 | 4,646 | 15,697 | 7,123 | ||||||||||||||||||||||
Comprehensive income from noncontrolling interests | 132 | 122 | 239 | 313 | ||||||||||||||||||||||
Total comprehensive income | $ | 7,796 | 4,768 | 15,936 | 7,436 | |||||||||||||||||||||
Wells Fargo other comprehensive income, net of tax | 766 | 1,458 | 513 | 3,631 | ||||||||||||||||||||||
Wells Fargo comprehensive income (loss) | (1,613 | ) | 7,664 | (1,213 | ) | 15,697 | ||||||||||||||||||||
Comprehensive income (loss) from noncontrolling interests | 47 | 132 | (102 | ) | 239 | |||||||||||||||||||||
Total comprehensive income (loss) | $ | (1,566 | ) | 7,796 | (1,315 | ) | 15,936 |
Wells Fargo & Company and Subsidiaries | ||||||||||||
Consolidated Balance Sheet | ||||||||||||
(in millions, except shares) | Jun 30, 2019 | Dec 31, 2018 | Jun 30, 2020 | Dec 31, 2019 | ||||||||
Assets | (Unaudited) | (Unaudited) | ||||||||||
Cash and due from banks | $ | 20,880 | 23,551 | $ | 24,704 | 21,757 | ||||||
Interest-earning deposits with banks | 143,547 | 149,736 | 237,799 | 119,493 | ||||||||
Total cash, cash equivalents, and restricted cash | 164,427 | 173,287 | 262,503 | 141,250 | ||||||||
Federal funds sold and securities purchased under resale agreements | 112,119 | 80,207 | 79,289 | 102,140 | ||||||||
Debt securities: | ||||||||||||
Trading, at fair value | 70,208 | 69,989 | 74,679 | 79,733 | ||||||||
Available-for-sale, at fair value | 265,983 | 269,912 | ||||||||||
Held-to-maturity, at cost (fair value $147,864 and $142,115) | 145,876 | 144,788 | ||||||||||
Mortgage loans held for sale (includes $16,343 and $11,771 carried at fair value) (1) | 22,998 | 15,126 | ||||||||||
Loans held for sale (includes $1,118 and $1,469 carried at fair value) (1) | 1,181 | 2,041 | ||||||||||
Loans (includes $202 and $244 carried at fair value) (1) | 949,878 | 953,110 | ||||||||||
Available-for-sale, at fair value (includes amortized cost of $224,467 and $260,060, net of allowance for credit losses of $114 and $0) (1) | 228,899 | 263,459 | ||||||||||
Held-to-maturity, at amortized cost, net of allowance for credit losses of $20 and $0 (fair value $176,882 and $156,860) (1) | 169,002 | 153,933 | ||||||||||
Mortgage loans held for sale (includes $18,644 and $16,606 carried at fair value) (2) | 32,355 | 23,342 | ||||||||||
Loans held for sale (includes $1,201 and $972 carried at fair value) (2) | 1,339 | 977 | ||||||||||
Loans (includes $152 and $171 carried at fair value) (2) | 935,155 | 962,265 | ||||||||||
Allowance for loan losses | (9,692 | ) | (9,775 | ) | (18,926 | ) | (9,551 | ) | ||||
Net loans | 940,186 | 943,335 | 916,229 | 952,714 | ||||||||
Mortgage servicing rights: | ||||||||||||
Measured at fair value | 12,096 | 14,649 | 6,819 | 11,517 | ||||||||
Amortized | 1,407 | 1,443 | 1,361 | 1,430 | ||||||||
Premises and equipment, net | 9,435 | 8,920 | 9,025 | 9,309 | ||||||||
Goodwill | 26,415 | 26,418 | 26,385 | 26,390 | ||||||||
Derivative assets | 13,162 | 10,770 | 22,776 | 14,203 | ||||||||
Equity securities (includes $35,950 and $29,556 carried at fair value) (1) | 61,537 | 55,148 | ||||||||||
Equity securities (includes $27,339 and $41,936 carried at fair value) (2) | 52,494 | 68,241 | ||||||||||
Other assets | 76,358 | 79,850 | 85,611 | 78,917 | ||||||||
Total assets (2) | $ | 1,923,388 | 1,895,883 | |||||||||
Total assets (3) | $ | 1,968,766 | 1,927,555 | |||||||||
Liabilities | ||||||||||||
Noninterest-bearing deposits | $ | 340,813 | 349,534 | $ | 432,857 | 344,496 | ||||||
Interest-bearing deposits | 947,613 | 936,636 | 977,854 | 978,130 | ||||||||
Total deposits | 1,288,426 | 1,286,170 | 1,410,711 | 1,322,626 | ||||||||
Short-term borrowings | 115,344 | 105,787 | 60,485 | 104,512 | ||||||||
Derivative liabilities | 8,399 | 8,499 | 11,368 | 9,079 | ||||||||
Accrued expenses and other liabilities | 69,706 | 69,317 | 75,159 | 75,163 | ||||||||
Long-term debt | 241,476 | 229,044 | 230,921 | 228,191 | ||||||||
Total liabilities (3) | 1,723,351 | 1,698,817 | ||||||||||
Total liabilities (4) | 1,788,644 | 1,739,571 | ||||||||||
Equity | ||||||||||||
Wells Fargo stockholders’ equity: | ||||||||||||
Preferred stock | 23,021 | 23,214 | 21,098 | 21,549 | ||||||||
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 shares | 9,136 | 9,136 | 9,136 | 9,136 | ||||||||
Additional paid-in capital | 60,625 | 60,685 | 59,923 | 61,049 | ||||||||
Retained earnings | 164,551 | 158,163 | 159,952 | 166,697 | ||||||||
Cumulative other comprehensive income (loss) | (2,224 | ) | (6,336 | ) | (798 | ) | (1,311 | ) | ||||
Treasury stock – 1,062,220,277 shares and 900,557,866 shares | (54,775 | ) | (47,194 | ) | ||||||||
Treasury stock – 1,362,252,882 shares and 1,347,385,537 shares | (69,050 | ) | (68,831 | ) | ||||||||
Unearned ESOP shares | (1,292 | ) | (1,502 | ) | (875 | ) | (1,143 | ) | ||||
Total Wells Fargo stockholders’ equity | 199,042 | 196,166 | 179,386 | 187,146 | ||||||||
Noncontrolling interests | 995 | 900 | 736 | 838 | ||||||||
Total equity | 200,037 | 197,066 | 180,122 | 187,984 | ||||||||
Total liabilities and equity | $ | 1,923,388 | 1,895,883 | $ | 1,968,766 | 1,927,555 |
(1) | Prior to our adoption of CECL on January 1, 2020, the allowance for credit losses (ACL) related to available-for-sale (AFS) and held-to-maturity (HTM) debt securities was not applicable and is therefore presented as $0 at December 31, 2019. For more information, see Note 1 (Summary of Significant Accounting Policies) to Financial Statements in this Report. |
(2) | Parenthetical amounts represent assets and liabilities that we are required to carry at fair value or for which we have elected the fair value option. |
Our consolidated assets at June 30, |
Our consolidated liabilities at June 30, |
Wells Fargo & Company and Subsidiaries | ||||||||||||||||||||||||||
Consolidated Statement of Changes in Equity (Unaudited) | Consolidated Statement of Changes in Equity (Unaudited) | Consolidated Statement of Changes in Equity (Unaudited) | ||||||||||||||||||||||||
Preferred stock | Common stock | Preferred stock | Common stock | |||||||||||||||||||||||
(in millions, except shares) | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||
Balance March 31, 2020 | 5,743,949 | $ | 21,347 | 4,096,410,304 | $ | 9,136 | ||||||||||||||||||||
Net income (loss) | ||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||
Noncontrolling interests | ||||||||||||||||||||||||||
Common stock issued | 13,460,720 | |||||||||||||||||||||||||
Common stock repurchased | (45,866 | ) | ||||||||||||||||||||||||
Preferred stock released by ESOP | ||||||||||||||||||||||||||
Preferred stock converted to common shares | (249,176 | ) | (249 | ) | 9,733,434 | |||||||||||||||||||||
Common stock dividends | ||||||||||||||||||||||||||
Preferred stock dividends | ||||||||||||||||||||||||||
Stock incentive compensation expense | ||||||||||||||||||||||||||
Net change in deferred compensation and related plans | ||||||||||||||||||||||||||
Net change | (249,176 | ) | (249 | ) | 23,148,288 | — | ||||||||||||||||||||
Balance June 30, 2020 | 5,494,773 | $ | 21,098 | 4,119,558,592 | $ | 9,136 | ||||||||||||||||||||
Balance March 31, 2019 | 9,377,211 | $ | 23,214 | 4,511,947,830 | $ | 9,136 | 9,377,211 | $ | 23,214 | 4,511,947,830 | $ | 9,136 | ||||||||||||||
Net income | ||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||
Noncontrolling interests | ||||||||||||||||||||||||||
Common stock issued | 8,491,923 | 8,491,923 | ||||||||||||||||||||||||
Common stock repurchased | (104,852,744 | ) | (104,852,744 | ) | ||||||||||||||||||||||
Preferred stock issued to ESOP | — | — | ||||||||||||||||||||||||
Preferred stock released by ESOP | ||||||||||||||||||||||||||
Preferred stock converted to common shares | (193,042 | ) | (193 | ) | 4,004,188 | (193,042 | ) | (193 | ) | 4,004,188 | ||||||||||||||||
Common stock warrants repurchased/exercised | ||||||||||||||||||||||||||
Preferred stock issued | — | — | ||||||||||||||||||||||||
Common stock dividends | ||||||||||||||||||||||||||
Preferred stock dividends | ||||||||||||||||||||||||||
Stock incentive compensation expense | ||||||||||||||||||||||||||
Net change in deferred compensation and related plans | ||||||||||||||||||||||||||
Net change | (193,042 | ) | (193 | ) | (92,356,633 | ) | Balance | — | (193,042 | ) | (193 | ) | (92,356,633 | ) | — | |||||||||||
Balance June 30, 2019 | 9,184,169 | $ | 23,021 | 4,419,591,197 | $ | 9,136 | 9,184,169 | $ | 23,021 | 4,419,591,197 | $ | 9,136 | ||||||||||||||
Balance March 31, 2018 | 12,546,235 | $ | 26,227 | 4,873,882,481 | $ | 9,136 | ||||||||||||||||||||
Net income | ||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||
Noncontrolling interests | ||||||||||||||||||||||||||
Common stock issued | 1,834,029 | |||||||||||||||||||||||||
Common stock repurchased (1) | (35,771,728 | ) | ||||||||||||||||||||||||
Preferred stock issued to ESOP | — | — | ||||||||||||||||||||||||
Preferred stock released by ESOP | ||||||||||||||||||||||||||
Preferred stock converted to common shares | (490,251 | ) | (490 | ) | 9,123,072 | |||||||||||||||||||||
Common stock warrants repurchased/exercised | ||||||||||||||||||||||||||
Preferred stock issued | — | — | ||||||||||||||||||||||||
Common stock dividends | ||||||||||||||||||||||||||
Preferred stock dividends | ||||||||||||||||||||||||||
Stock incentive compensation expense | ||||||||||||||||||||||||||
Net change in deferred compensation and related plans | ||||||||||||||||||||||||||
Net change | (490,251 | ) | (490 | ) | (24,814,627 | ) | — | |||||||||||||||||||
Balance June 30, 2018 | 12,055,984 | $ | 25,737 | 4,849,067,854 | $ | 9,136 |
Quarter ended June 30, | ||||||||||||||||||||||
Wells Fargo stockholders’ equity | ||||||||||||||||||||||
Additional paid-in capital | Retained earnings | Cumulative other comprehensive income | Treasury stock | Unearned ESOP shares | Total Wells Fargo stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||
59,849 | 165,308 | (1,564 | ) | (70,215 | ) | (1,143 | ) | 182,718 | 612 | 183,330 | ||||||||||||
(2,379 | ) | (2,379 | ) | 47 | (2,332 | ) | ||||||||||||||||
766 | 766 | — | 766 | |||||||||||||||||||
— | 77 | 77 | ||||||||||||||||||||
224 | (549 | ) | 692 | 367 | 367 | |||||||||||||||||
(2 | ) | (2 | ) | (2 | ) | |||||||||||||||||
— | — | — | — | |||||||||||||||||||
— | — | — | — | |||||||||||||||||||
(19 | ) | 268 | 249 | 249 | ||||||||||||||||||
(243 | ) | 492 | — | — | ||||||||||||||||||
— | — | |||||||||||||||||||||
20 | (2,113 | ) | (2,093 | ) | (2,093 | ) | ||||||||||||||||
— | (315 | ) | (315 | ) | (315 | ) | ||||||||||||||||
120 | 120 | 120 | ||||||||||||||||||||
(28 | ) | (17 | ) | (45 | ) | (45 | ) | |||||||||||||||
74 | (5,356 | ) | 766 | 1,165 | 268 | (3,332 | ) | 124 | (3,208 | ) | ||||||||||||
59,923 | 159,952 | (798 | ) | (69,050 | ) | (875 | ) | 179,386 | 736 | 180,122 | ||||||||||||
60,409 | 160,776 | (3,682 | ) | (50,519 | ) | (1,502 | ) | 197,832 | 901 | 198,733 | ||||||||||||
6,206 | 6,206 | 132 | 6,338 | |||||||||||||||||||
1,458 | 1,458 | — | 1,458 | |||||||||||||||||||
— | (38 | ) | (38 | ) | ||||||||||||||||||
(2 | ) | (38 | ) | 439 | 399 | 399 | ||||||||||||||||
(4,898 | ) | (4,898 | ) | (4,898 | ) | |||||||||||||||||
— | — | — | ||||||||||||||||||||
— | — | — | — | |||||||||||||||||||
(17 | ) | 210 | 193 | 193 | ||||||||||||||||||
(15 | ) | 208 | — | — | ||||||||||||||||||
— | — | — | ||||||||||||||||||||
20 | (2,035 | ) | (2,015 | ) | (2,015 | ) | ||||||||||||||||
(358 | ) | (358 | ) | (358 | ) | |||||||||||||||||
247 | 247 | 247 | ||||||||||||||||||||
(17 | ) | (5 | ) | (22 | ) | (22 | ) | |||||||||||||||
216 | 3,775 | 1,458 | (4,256 | ) | 210 | 1,210 | 94 | 1,304 | ||||||||||||||
60,625 | 164,551 | (2,224 | ) | (54,775 | ) | (1,292 | ) | 199,042 | 995 | 200,037 |
Wells Fargo & Company and Subsidiaries | |||||||||||||
Consolidated Statement of Changes in Equity (Unaudited) | |||||||||||||
Preferred stock | Common stock | ||||||||||||
(in millions, except shares) | Shares | Amount | Shares | Amount | |||||||||
Balance December 31, 2019 | 7,492,169 | $ | 21,549 | 4,134,425,937 | $ | 9,136 | |||||||
Cumulative effect from change in accounting policies (1) | |||||||||||||
Balance January 1, 2020 | 7,492,169 | $ | 21,549 | 4,134,425,937 | $ | 9,136 | |||||||
Net income (loss) | |||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||
Noncontrolling interests | |||||||||||||
Common stock issued | 50,812,607 | ||||||||||||
Common stock repurchased | (75,413,386 | ) | |||||||||||
Preferred stock redeemed | (1,828,720 | ) | (2,215 | ) | |||||||||
Preferred stock released by ESOP | |||||||||||||
Preferred stock converted to common shares | (249,176 | ) | (249 | ) | 9,733,434 | ||||||||
Preferred stock issued | 80,500 | 2,013 | |||||||||||
Common stock dividends | |||||||||||||
Preferred stock dividends | |||||||||||||
Stock incentive compensation expense | |||||||||||||
Net change in deferred compensation and related plans | |||||||||||||
Net change | (1,997,396 | ) | (451 | ) | (14,867,345 | ) | — | ||||||
Balance June 30, 2020 | 5,494,773 | $ | 21,098 | 4,119,558,592 | $ | 9,136 | |||||||
Balance December 31, 2018 | 9,377,216 | $ | 23,214 | 4,581,253,608 | $ | 9,136 | |||||||
Cumulative effect from change in accounting policies (2) | |||||||||||||
Balance January 1, 2019 | 9,377,216 | $ | 23,214 | 4,581,253,608 | $ | 9,136 | |||||||
Net income | |||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||
Noncontrolling interests | |||||||||||||
Common stock issued | 36,549,824 | ||||||||||||
Common stock repurchased | (202,216,454 | ) | |||||||||||
Preferred stock redeemed | — | — | |||||||||||
Preferred stock released by ESOP | |||||||||||||
Preferred stock converted to common shares | (193,047 | ) | (193 | ) | 4,004,219 | ||||||||
Preferred stock issued | |||||||||||||
Common stock dividends | |||||||||||||
Preferred stock dividends | |||||||||||||
Stock incentive compensation expense | |||||||||||||
Net change in deferred compensation and related plans | |||||||||||||
Net change | (193,047 | ) | (193 | ) | (161,662,411 | ) | — | ||||||
Balance June 30, 2019 | 9,184,169 | $ | 23,021 | 4,419,591,197 | $ | 9,136 |
(1) | We adopted CECL effective January 1, 2020. For |
Quarter ended June 30, | ||||||||||||||||||||||
Wells Fargo stockholders’ equity | ||||||||||||||||||||||
Additional paid-in capital | Retained earnings | Cumulative other comprehensive income | Treasury stock | Unearned ESOP shares | Total Wells Fargo stockholders’ equity | Noncontrolling interests | Total equity | |||||||||||||||
60,409 | 160,776 | (3,682 | ) | (50,519 | ) | (1,502 | ) | 197,832 | 901 | 198,733 | ||||||||||||
6,206 | 6,206 | 132 | 6,338 | |||||||||||||||||||
1,458 | 1,458 | — | 1,458 | |||||||||||||||||||
— | — | (38 | ) | (38 | ) | |||||||||||||||||
(2 | ) | (38 | ) | 439 | 399 | 399 | ||||||||||||||||
— | (4,898 | ) | (4,898 | ) | (4,898 | ) | ||||||||||||||||
— | — | — | — | |||||||||||||||||||
(17 | ) | 210 | 193 | 193 | ||||||||||||||||||
(15 | ) | 208 | — | — | ||||||||||||||||||
— | — | — | ||||||||||||||||||||
— | — | — | ||||||||||||||||||||
20 | (2,035 | ) | (2,015 | ) | (2,015 | ) | ||||||||||||||||
(358 | ) | (358 | ) | (358 | ) | |||||||||||||||||
247 | 247 | 247 | ||||||||||||||||||||
(17 | ) | (5 | ) | (22 | ) | (22 | ) | |||||||||||||||
216 | 3,775 | 1,458 | (4,256 | ) | 210 | 1,210 | 94 | 1,304 | ||||||||||||||
60,625 | 164,551 | (2,224 | ) | (54,775 | ) | (1,292 | ) | 199,042 | 995 | 200,037 | ||||||||||||
60,399 | 147,928 | (4,921 | ) | (31,246 | ) | (2,571 | ) | 204,952 | 958 | 205,910 | ||||||||||||
5,186 | 5,186 | 123 | 5,309 | |||||||||||||||||||
(540 | ) | (540 | ) | (1 | ) | (541 | ) | |||||||||||||||
— | — | (199 | ) | (199 | ) | |||||||||||||||||
(20 | ) | — | 93 | 73 | 73 | |||||||||||||||||
(1,000 | ) | (1,923 | ) | (2,923 | ) | (2,923 | ) | |||||||||||||||
— | — | — | — | |||||||||||||||||||
(30 | ) | 520 | 490 | 490 | ||||||||||||||||||
22 | 468 | — | — | |||||||||||||||||||
(1 | ) | (1 | ) | (1 | ) | |||||||||||||||||
— | — | — | ||||||||||||||||||||
17 | (1,917 | ) | (1,900 | ) | (1,900 | ) | ||||||||||||||||
(394 | ) | (394 | ) | (394 | ) | |||||||||||||||||
258 | 258 | 258 | ||||||||||||||||||||
(1 | ) | (12 | ) | (13 | ) | (13 | ) | |||||||||||||||
(755 | ) | 2,875 | (540 | ) | (1,374 | ) | 520 | 236 | (77 | ) | 159 | |||||||||||
59,644 | 150,803 | (5,461 | ) | (32,620 | ) | (2,051 | ) | 205,188 | 881 | 206,069 |
Wells Fargo & Company and Subsidiaries | |||||||||||||
Consolidated Statement of Changes in Equity (Unaudited) | |||||||||||||
Preferred stock | Common stock | ||||||||||||
(in millions, except shares) | Shares | Amount | Shares | Amount | |||||||||
Balance December 31, 2018 | 9,377,216 | $ | 23,214 | 4,581,253,608 | $ | 9,136 | |||||||
Cumulative effect from change in accounting policies (1) | |||||||||||||
Balance January 1, 2019 | 9,377,216 | $ | 23,214 | 4,581,253,608 | $ | 9,136 | |||||||
Net income | |||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||
Noncontrolling interests | |||||||||||||
Common stock issued | 36,549,824 | ||||||||||||
Common stock repurchased | (202,216,454 | ) | |||||||||||
Preferred stock issued to ESOP | — | — | |||||||||||
Preferred stock released by ESOP | |||||||||||||
Preferred stock converted to common shares | (193,047 | ) | (193 | ) | 4,004,219 | ||||||||
Common stock warrants repurchased/exercised | |||||||||||||
Preferred stock issued | — | — | |||||||||||
Common stock dividends | |||||||||||||
Preferred stock dividends | |||||||||||||
Stock incentive compensation expense | |||||||||||||
Net change in deferred compensation and related plans | |||||||||||||
Net change | (193,047 | ) | (193 | ) | (161,662,411 | ) | — | ||||||
Balance June 30, 2019 | 9,184,169 | $ | 23,021 | 4,419,591,197 | $ | 9,136 | |||||||
Balance December 31, 2017 | 11,677,235 | $ | 25,358 | 4,891,616,628 | $ | 9,136 | |||||||
Cumulative effect from change in accounting policies (2) | |||||||||||||
Balance January 1, 2018 | 11,677,235 | $ | 25,358 | 4,891,616,628 | $ | 9,136 | |||||||
Net income | |||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||
Noncontrolling interests | |||||||||||||
Common stock issued | 30,259,788 | ||||||||||||
Common stock repurchased (3) | (86,339,185 | ) | |||||||||||
Preferred stock issued to ESOP | 1,100,000 | 1,100 | |||||||||||
Preferred stock released by ESOP | |||||||||||||
Preferred stock converted to common shares | (721,251 | ) | (721 | ) | 13,530,623 | ||||||||
Common stock warrants repurchased/exercised | |||||||||||||
Preferred stock issued | — | — | |||||||||||
Common stock dividends | |||||||||||||
Preferred stock dividends | |||||||||||||
Stock incentive compensation expense | |||||||||||||
Net change in deferred compensation and related plans | |||||||||||||
Net change | 378,749 | 379 | (42,548,774 | ) | — | ||||||||
Balance June 30, 2018 | 12,055,984 | $ | 25,737 | 4,849,067,854 | $ | 9,136 |
Effective January 1, 2019, we adopted ASU 2016-02 – Leases (Topic 842) and subsequent related Updates, ASU 2017-08 – Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt |
Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
Wells Fargo stockholders’ equity | Wells Fargo stockholders’ equity | |||||||||||||||||||||||||||||||||||||||||||
Additional paid-in capital | Retained earnings | Cumulative other comprehensive income | Treasury stock | Unearned ESOP shares | Total Wells Fargo stockholders’ equity | Noncontrolling interests | Total equity | Retained earnings | Cumulative other comprehensive income | Treasury stock | Unearned ESOP shares | Total Wells Fargo stockholders’ equity | Noncontrolling interests | Total equity | ||||||||||||||||||||||||||||||
61,049 | 166,697 | (1,311 | ) | (68,831 | ) | (1,143 | ) | 187,146 | 838 | 187,984 | ||||||||||||||||||||||||||||||||||
991 | — | 991 | 991 | |||||||||||||||||||||||||||||||||||||||||
61,049 | 167,688 | (1,311 | ) | (68,831 | ) | (1,143 | ) | 188,137 | 838 | 188,975 | ||||||||||||||||||||||||||||||||||
(1,726 | ) | (1,726 | ) | (101 | ) | (1,827 | ) | |||||||||||||||||||||||||||||||||||||
513 | 513 | (1 | ) | 512 | ||||||||||||||||||||||||||||||||||||||||
— | — | — | ||||||||||||||||||||||||||||||||||||||||||
207 | (857 | ) | 2,694 | 2,044 | 2,044 | |||||||||||||||||||||||||||||||||||||||
(3,409 | ) | (3,409 | ) | (3,409 | ) | |||||||||||||||||||||||||||||||||||||||
17 | (272 | ) | (2,470 | ) | (2,470 | ) | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | |||||||||||||||||||||||||||||||||||||||||
(19 | ) | 268 | 249 | 249 | ||||||||||||||||||||||||||||||||||||||||
(243 | ) | 492 | — | — | ||||||||||||||||||||||||||||||||||||||||
(45 | ) | 1,968 | 1,968 | |||||||||||||||||||||||||||||||||||||||||
38 | (4,227 | ) | (4,189 | ) | (4,189 | ) | ||||||||||||||||||||||||||||||||||||||
(654 | ) | (654 | ) | (654 | ) | |||||||||||||||||||||||||||||||||||||||
301 | 301 | 301 | ||||||||||||||||||||||||||||||||||||||||||
(1,382 | ) | 4 | (1,378 | ) | (1,378 | ) | ||||||||||||||||||||||||||||||||||||||
(1,126 | ) | (7,736 | ) | 513 | (219 | ) | 268 | (8,751 | ) | (102 | ) | (8,853 | ) | |||||||||||||||||||||||||||||||
59,923 | 159,952 | (798 | ) | (69,050 | ) | (875 | ) | 179,386 | 736 | 180,122 | ||||||||||||||||||||||||||||||||||
60,685 | 158,163 | (6,336 | ) | (47,194 | ) | (1,502 | ) | 196,166 | 900 | 197,066 | 158,163 | (6,336 | ) | (47,194 | ) | (1,502 | ) | 196,166 | 900 | 197,066 | ||||||||||||||||||||||||
(492 | ) | 481 | (11 | ) | (11 | ) | (492 | ) | 481 | (11 | ) | (11 | ) | |||||||||||||||||||||||||||||||
60,685 | 157,671 | (5,855 | ) | (47,194 | ) | (1,502 | ) | 196,155 | 900 | 197,055 | 157,671 | (5,855 | ) | (47,194 | ) | (1,502 | ) | 196,155 | 900 | 197,055 | ||||||||||||||||||||||||
12,066 | 12,066 | 239 | 12,305 | 12,066 | 12,066 | 239 | 12,305 | |||||||||||||||||||||||||||||||||||||
3,631 | 3,631 | — | 3,631 | 3,631 | 3,631 | — | 3,631 | |||||||||||||||||||||||||||||||||||||
— | — | (144 | ) | (144 | ) | |||||||||||||||||||||||||||||||||||||||
— | (144 | ) | (144 | ) | ||||||||||||||||||||||||||||||||||||||||
(2 | ) | (367 | ) | 1,907 | 1,538 | 1,538 | ) | (367 | ) | 1,907 | 1,538 | 1,538 | ||||||||||||||||||||||||||||||||
— | (9,718 | ) | (9,718 | ) | (9,718 | ) | ||||||||||||||||||||||||||||||||||||||
(9,718 | ) | (9,718 | ) | (9,718 | ) | |||||||||||||||||||||||||||||||||||||||
— | — | — | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
(17 | ) | 210 | 193 | 193 | ) | 210 | 193 | 193 | ||||||||||||||||||||||||||||||||||||
(15 | ) | 208 | — | — | ) | 208 | — | — | ||||||||||||||||||||||||||||||||||||
— | — | — | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | ||||||||||||||||||||||||||||||||||||||||||
— | — | |||||||||||||||||||||||||||||||||||||||||||
39 | (4,108 | ) | (4,069 | ) | (4,069 | ) | (4,108 | ) | (4,069 | ) | (4,069 | ) | ||||||||||||||||||||||||||||||||
(711 | ) | (711 | ) | (711 | ) | (711 | ) | (711 | ) | (711 | ) | |||||||||||||||||||||||||||||||||
791 | 791 | 791 | 791 | 791 | ||||||||||||||||||||||||||||||||||||||||
(856 | ) | 22 | (834 | ) | (834 | ) | ) | 22 | (834 | ) | (834 | ) | ||||||||||||||||||||||||||||||||
(60 | ) | 6,880 | 3,631 | (7,581 | ) | 210 | 2,887 | 95 | 2,982 | ) | 6,880 | 3,631 | (7,581 | ) | 210 | 2,887 | 95 | 2,982 | ||||||||||||||||||||||||||
60,625 | 164,551 | (2,224 | ) | (54,775 | ) | (1,292 | ) | 199,042 | 995 | 200,037 | 164,551 | (2,224 | ) | (54,775 | ) | (1,292 | ) | 199,042 | 995 | 200,037 | ||||||||||||||||||||||||
60,893 | 145,263 | (2,144 | ) | (29,892 | ) | (1,678 | ) | 206,936 | 1,143 | 208,079 | ||||||||||||||||||||||||||||||||||
94 | (118 | ) | (24 | ) | (24 | ) | ||||||||||||||||||||||||||||||||||||||
60,893 | 145,357 | (2,262 | ) | (29,892 | ) | (1,678 | ) | 206,912 | 1,143 | 208,055 | ||||||||||||||||||||||||||||||||||
10,322 | 10,322 | 314 | 10,636 | |||||||||||||||||||||||||||||||||||||||||
(3,199 | ) | (3,199 | ) | (1 | ) | (3,200 | ) | |||||||||||||||||||||||||||||||||||||
7 | 7 | (575 | ) | (568 | ) | |||||||||||||||||||||||||||||||||||||||
5 | (231 | ) | 1,507 | 1,281 | 1,281 | |||||||||||||||||||||||||||||||||||||||
(1,000 | ) | (4,952 | ) | (5,952 | ) | (5,952 | ) | |||||||||||||||||||||||||||||||||||||
43 | (1,143 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||
(49 | ) | 770 | 721 | 721 | ||||||||||||||||||||||||||||||||||||||||
27 | 694 | — | — | |||||||||||||||||||||||||||||||||||||||||
(158 | ) | (158 | ) | (158 | ) | |||||||||||||||||||||||||||||||||||||||
— | — | — | ||||||||||||||||||||||||||||||||||||||||||
30 | (3,841 | ) | (3,811 | ) | (3,811 | ) | ||||||||||||||||||||||||||||||||||||||
(804 | ) | (804 | ) | (804 | ) | |||||||||||||||||||||||||||||||||||||||
695 | 695 | 695 | ||||||||||||||||||||||||||||||||||||||||||
(849 | ) | 23 | (826 | ) | (826 | ) | ||||||||||||||||||||||||||||||||||||||
(1,249 | ) | 5,446 | (3,199 | ) | (2,728 | ) | (373 | ) | (1,724 | ) | (262 | ) | (1,986 | ) | ||||||||||||||||||||||||||||||
59,644 | 150,803 | (5,461 | ) | (32,620 | ) | (2,051 | ) | 205,188 | 881 | 206,069 |
Wells Fargo & Company and Subsidiaries | ||||||||||||
Consolidated Statement of Cash Flows (Unaudited) | ||||||||||||
Six months ended June 30, | Six months ended June 30, | |||||||||||
(in millions) | 2019 | 2018 | 2020 | 2019 | ||||||||
Cash flows from operating activities: | ||||||||||||
Net income before noncontrolling interests | $ | 12,305 | 10,636 | |||||||||
Net income (loss) before noncontrolling interests | $ | (1,827 | ) | 12,305 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Provision for credit losses | 1,348 | 643 | 13,539 | 1,348 | ||||||||
Changes in fair value of MSRs, MLHFS and LHFS carried at fair value | 2,408 | (787 | ) | 4,481 | 2,408 | |||||||
Depreciation, amortization and accretion | 3,100 | 2,835 | 4,062 | 3,100 | ||||||||
Other net (gains) | (1,360 | ) | (6,285 | ) | ||||||||
Other net (gains) losses | 7,146 | (1,360 | ) | |||||||||
Stock-based compensation | 1,388 | 1,286 | 953 | 1,388 | ||||||||
Originations and purchases of mortgage loans held for sale | (63,836 | ) | (80,948 | ) | (82,713 | ) | (63,836 | ) | ||||
Proceeds from sales of and paydowns on mortgage loans held for sale | 39,741 | 60,898 | 68,614 | 39,741 | ||||||||
Net change in: | ||||||||||||
Debt and equity securities, held for trading | 14,777 | 16,371 | 36,459 | 14,777 | ||||||||
Loans held for sale | 619 | (411 | ) | (242 | ) | 619 | ||||||
Deferred income taxes | (821 | ) | 1,118 | (1,358 | ) | (821 | ) | |||||
Derivative assets and liabilities | (2,461 | ) | 958 | (6,825 | ) | (2,461 | ) | |||||
Other assets | 7,194 | 7,547 | (5,910 | ) | 7,194 | |||||||
Other accrued expenses and liabilities | (7,120 | ) | 520 | (2,987 | ) | (7,120 | ) | |||||
Net cash provided by operating activities | 7,282 | 14,381 | 33,392 | 7,282 | ||||||||
Cash flows from investing activities: | ||||||||||||
Net change in: | ||||||||||||
Federal funds sold and securities purchased under resale agreements | (31,912 | ) | (1,161 | ) | 22,851 | (31,912 | ) | |||||
Available-for-sale debt securities: | ||||||||||||
Proceeds from sales | 6,682 | 6,151 | 29,524 | 6,682 | ||||||||
Prepayments and maturities | 17,657 | 17,377 | 35,340 | 17,657 | ||||||||
Purchases | (18,306 | ) | (26,300 | ) | (28,310 | ) | (18,306 | ) | ||||
Held-to-maturity debt securities: | ||||||||||||
Paydowns and maturities | 5,145 | 5,431 | 11,566 | 5,145 | ||||||||
Purchases | (154 | ) | — | (25,376 | ) | (154 | ) | |||||
Equity securities, not held for trading: | ||||||||||||
Proceeds from sales and capital returns | 2,320 | 3,337 | 5,584 | 2,320 | ||||||||
Purchases | (2,426 | ) | (2,791 | ) | (5,587 | ) | (2,426 | ) | ||||
Loans: | ||||||||||||
Loans originated by banking subsidiaries, net of principal collected | (7,008 | ) | (445 | ) | 8,871 | (7,008 | ) | |||||
Proceeds from sales (including participations) of loans held for investment | 8,196 | 7,879 | 5,325 | 8,196 | ||||||||
Purchases (including participations) of loans | (1,001 | ) | (668 | ) | (775 | ) | (1,001 | ) | ||||
Principal collected on nonbank entities’ loans | 1,770 | 3,229 | 5,505 | 1,770 | ||||||||
Loans originated by nonbank entities | (2,604 | ) | (2,998 | ) | (5,856 | ) | (2,604 | ) | ||||
Proceeds from sales of foreclosed assets and short sales | 1,405 | 1,954 | 753 | 1,405 | ||||||||
Other, net | 512 | (284 | ) | (31 | ) | 512 | ||||||
Net cash provided (used) by investing activities | (19,724 | ) | 10,711 | 59,384 | (19,724 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Net change in: | ||||||||||||
Deposits | 1,938 | (67,101 | ) | 88,085 | 1,938 | |||||||
Short-term borrowings | 9,557 | 1,240 | (44,027 | ) | 9,557 | |||||||
Long-term debt: | ||||||||||||
Proceeds from issuance | 33,091 | 21,308 | 37,664 | 33,091 | ||||||||
Repayment | (26,357 | ) | (22,305 | ) | (44,574 | ) | (26,357 | ) | ||||
Preferred stock: | ||||||||||||
Proceeds from issuance | 1,968 | — | ||||||||||
Redeemed | (2,470 | ) | — | |||||||||
Cash dividends paid | (711 | ) | (872 | ) | (654 | ) | (711 | ) | ||||
Common stock: | ||||||||||||
Proceeds from issuance | 242 | 446 | 454 | 242 | ||||||||
Stock tendered for payment of withholding taxes | (272 | ) | (311 | ) | (320 | ) | (272 | ) | ||||
Repurchased | (9,718 | ) | (5,952 | ) | (3,409 | ) | (9,718 | ) | ||||
Cash dividends paid | (3,954 | ) | (3,722 | ) | (4,055 | ) | (3,954 | ) | ||||
Net change in noncontrolling interests | (124 | ) | (232 | ) | (31 | ) | (124 | ) | ||||
Other, net | (110 | ) | (89 | ) | (154 | ) | (110 | ) | ||||
Net cash provided (used) by financing activities | 3,582 | (77,590 | ) | |||||||||
Net cash provided by financing activities | 28,477 | 3,582 | ||||||||||
Net change in cash, cash equivalents, and restricted cash | (8,860 | ) | (52,498 | ) | 121,253 | (8,860 | ) | |||||
Cash, cash equivalents, and restricted cash at beginning of period | 173,287 | 215,947 | 141,250 | 173,287 | ||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 164,427 | 163,449 | $ | 262,503 | 164,427 | ||||||
Supplemental cash flow disclosures: | ||||||||||||
Cash paid for interest | $ | 9,354 | 6,352 | $ | 5,545 | 9,354 | ||||||
Cash paid for income taxes | 2,516 | 1,679 | 2,254 | 2,516 |
Note 1: Summary of Significant Accounting Policies |
• | Accounting Standards Update (ASU or Update) |
• | ASU |
• | ASU |
• | ASU 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 (a consensus of the Financial Accounting Standards Board (FASB) Emerging Issues Task Force) |
• | ASU 2018-13 – Fair Value Measurement (Topic 820):Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. |
• | ASU 2017-04 – Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment |
• | ASU 2016-13 – Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and related subsequent Updates |
Dec 31, 2019 | ASU 2016-13 Adoption Impact | Jan 1, 2020 | ||||||||||||
(in billions) | Balance Outstanding | ACL Balance | Coverage | ACL Balance | Coverage | |||||||||
Total commercial (2) | $ | 515.7 | 6.2 | 1.2 | % | $ | (2.9 | ) | 3.4 | 0.7 | % | |||
Real estate 1-4 family mortgage (3) | 323.4 | 0.9 | 0.3 | — | 0.9 | 0.3 | ||||||||
Credit card (4) | 41.0 | 2.3 | 5.5 | 0.7 | 2.9 | 7.1 | ||||||||
Automobile (4) | 47.9 | 0.5 | 1.0 | 0.3 | 0.7 | 1.5 | ||||||||
Other revolving credit and installment (4) | 34.3 | 0.6 | 1.6 | 0.6 | 1.2 | 3.5 | ||||||||
Total consumer | 446.5 | 4.2 | 0.9 | 1.5 | 5.7 | 1.3 | ||||||||
Total loans | 962.3 | 10.5 | 1.1 | (1.3 | ) | 9.1 | 0.9 | |||||||
Available-for-sale and held-to-maturity debt securities and other assets (5) | 420.0 | 0.1 | NM | — | 0.1 | NM | ||||||||
Total | $ | 1,382.3 | 10.6 | NM | $ | (1.3 | ) | 9.3 | NM |
(1) | Amounts presented in this table may not equal the sum of its components due to rounding. |
(2) | Decrease reflecting shorter contractual maturities given limitation to contractual terms. |
(3) | Impact reflects an increase due to longer contractual terms, offset by expectation of recoveries in collateral value on mortgage loans previously written down significantly below current recovery value. |
(4) | Increase due to longer contractual terms or indeterminate maturities. |
(5) | Excludes other financial assets in the scope of CECL that do not have an allowance for credit losses based on the nature of the asset. |
Loan Portfolio | Key economic variables | |
Total commercial | • Gross domestic product • Commercial real estate asset prices, where applicable • Unemployment rate • Corporate investment-grade bond spreads | |
Real estate 1-4 family mortgage | • Home price index • Unemployment rate | |
Other consumer (including credit card, automobile, and other revolving credit and installment) | • Unemployment rate |
Six months ended June 30, | ||||||
(in millions) | 2019 | 2018 | ||||
Trading debt securities retained from securitization of MLHFS | $ | 19,131 | 17,674 | |||
Transfers from loans to MLHFS | 4,419 | 3,053 | ||||
Transfers from loans to LHFS | 92 | 2,149 | ||||
Transfers from available-for-sale debt securities to held-to-maturity debt securities | 6,071 | 10,371 | ||||
Operating lease ROU assets acquired with operating lease liabilities (1) | 5,302 | — |
Six months ended June 30, | ||||||
(in millions) | 2020 | 2019 | ||||
Trading debt securities retained from securitization of mortgage loans held for sale (MLHFS) | $ | 16,953 | 19,131 | |||
Transfers from loans to MLHFS | 12,430 | 4,419 | ||||
Transfers from available-for-sale debt securities to held-to-maturity debt securities | — | 6,071 | ||||
Operating lease ROU assets acquired with operating lease liabilities (1) | 345 | 5,302 |
(1) |
Note 2: Business Combinations |
Note 3: Cash, Loan and Dividend Restrictions |
(in millions) | Jun 30, 2019 | Dec 31, 2018 | Jun 30, 2020 | Dec 31, 2019 | ||||||||
Average required reserve balance for FRB (1) | $ | 11,179 | 12,428 | |||||||||
Required reserve balance for the FRB (1) | $ | — | 11,374 | |||||||||
Reserve balance for non-U.S. central banks | 556 | 517 | 200 | 460 | ||||||||
Segregated for benefit of brokerage customers under federal and other brokerage regulations | 956 | 1,135 | 703 | 733 | ||||||||
Related to consolidated variable interest entities (VIEs) that can only be used to settle liabilities of VIEs | 19 | 147 | 26 | 300 |
(1) | Effective March 26, 2020, the FRB |
Note 4: Trading Activities |
Jun 30, | Dec 31, | Jun 30, | Dec 31, | |||||||||
(in millions) | 2019 | 2018 | 2020 | 2019 | ||||||||
Trading assets: | ||||||||||||
Debt securities | $ | 70,208 | 69,989 | $ | 74,679 | 79,733 | ||||||
Equity securities | 23,327 | 19,449 | 12,591 | 27,440 | ||||||||
Loans held for sale | 1,118 | 1,469 | 1,201 | 972 | ||||||||
Gross trading derivative assets | 34,683 | 29,216 | 60,644 | 34,825 | ||||||||
Netting (1) | (22,827 | ) | (19,807 | ) | (39,885 | ) | (21,463 | ) | ||||
Total trading derivative assets | 11,856 | 9,409 | 20,759 | 13,362 | ||||||||
Total trading assets | 106,509 | 100,316 | 109,230 | 121,507 | ||||||||
Trading liabilities: | ||||||||||||
Short sale | 15,955 | 19,720 | 20,213 | 17,430 | ||||||||
Gross trading derivative liabilities | 33,458 | 28,717 | 54,985 | 33,861 | ||||||||
Netting (1) | (26,417 | ) | (21,178 | ) | (44,901 | ) | (26,074 | ) | ||||
Total trading derivative liabilities | 7,041 | 7,539 | 10,084 | 7,787 | ||||||||
Total trading liabilities | $ | 22,996 | 27,259 | $ | 30,297 | 25,217 |
(1) | Represents balance sheet netting for trading derivative asset and liability balances, and trading portfolio level counterparty valuation adjustments. |
Quarter ended June 30, | Six months ended June 30, | Quarter ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||
Interest income: | |||||||||||||||||||||||||
Debt securities | $ | 740 | 689 | 1,533 | 1,320 | $ | 659 | 740 | $ | 1,425 | 1,533 | ||||||||||||||
Equity securities | 143 | 128 | 258 | 269 | 68 | 143 | 205 | 258 | |||||||||||||||||
Loans held for sale | 20 | 15 | 43 | 23 | 6 | 20 | 18 | 43 | |||||||||||||||||
Total interest income | 903 | 832 | 1,834 | 1,612 | 733 | 903 | 1,648 | 1,834 | |||||||||||||||||
Less: Interest expense | 127 | 144 | 263 | 272 | 116 | 127 | 257 | 263 | |||||||||||||||||
Net interest income | 776 | 688 | 1,571 | 1,340 | 617 | 776 | 1,391 | 1,571 | |||||||||||||||||
Net gains (losses) from trading activities (1): | |||||||||||||||||||||||||
Debt securities | 401 | (140 | ) | 1,089 | (639 | ) | 329 | 401 | 2,684 | 1,089 | |||||||||||||||
Equity securities | 1,236 | (635 | ) | 3,303 | (1,104 | ) | 2,329 | 1,236 | (2,072 | ) | 3,303 | ||||||||||||||
Loans held for sale | (4 | ) | 7 | 10 | 15 | 24 | (4 | ) | 12 | 10 | |||||||||||||||
Derivatives (2) | (1,404 | ) | 959 | (3,816 | ) | 2,162 | (1,875 | ) | (1,404 | ) | 247 | (3,816 | ) | ||||||||||||
Total net gains from trading activities | 229 | 191 | 586 | 434 | 807 | 229 | 871 | 586 | |||||||||||||||||
Total trading-related net interest and noninterest income | $ | 1,005 | 879 | 2,157 | 1,774 | $ | 1,424 | 1,005 | $ | 2,262 | 2,157 |
(1) | Represents realized gains (losses) from our trading activities and unrealized gains (losses) due to changes in fair value of our trading positions. |
(2) | Excludes economic hedging of mortgage banking and asset/liability management activities, for which hedge results (realized and unrealized) are reported with the respective hedged activities. |
Note 5: Available-for-Sale and Held-to-Maturity Debt Securities |
(in millions) | Amortized Cost | Gross unrealized gains | Gross unrealized losses | Fair value | Amortized cost, net (1) | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | $ | 15,334 | 2 | (17 | ) | 15,319 | $ | 7,923 | 69 | (9 | ) | 7,983 | ||||||||||||
Securities of U.S. states and political subdivisions | 44,205 | 968 | (78 | ) | 45,095 | 33,259 | 200 | (448 | ) | 33,011 | ||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||
Federal agencies | 154,549 | 1,617 | (308 | ) | 155,858 | 139,326 | 5,533 | (24 | ) | 144,835 | ||||||||||||||
Residential | 1,241 | 23 | (1 | ) | 1,263 | 542 | 2 | (3 | ) | 541 | ||||||||||||||
Commercial | 4,140 | 45 | (5 | ) | 4,180 | 3,663 | 9 | (113 | ) | 3,559 | ||||||||||||||
Total mortgage-backed securities | 159,930 | 1,685 | (314 | ) | 161,301 | 143,531 | 5,544 | (140 | ) | 148,935 | ||||||||||||||
Corporate debt securities | 6,058 | 208 | (36 | ) | 6,230 | 4,972 | 95 | (92 | ) | 4,975 | ||||||||||||||
Collateralized loan and other debt obligations (2) | 32,944 | 165 | (114 | ) | 32,995 | |||||||||||||||||||
Collateralized loan obligations | 25,727 | 1 | (729 | ) | 24,999 | |||||||||||||||||||
Other | 4,987 | 70 | (14 | ) | 5,043 | 9,055 | 69 | (128 | ) | 8,996 | ||||||||||||||
Total available-for-sale debt securities | 263,458 | 3,098 | (573 | ) | 265,983 | 224,467 | 5,978 | (1,546 | ) | 228,899 | ||||||||||||||
Held-to-maturity debt securities: | ||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | 44,766 | 574 | (4 | ) | 45,336 | 48,578 | 1,972 | (47 | ) | 50,503 | ||||||||||||||
Securities of U.S. states and political subdivisions | 7,948 | 182 | (5 | ) | 8,125 | 14,277 | 622 | (7 | ) | 14,892 | ||||||||||||||
Federal agency and other mortgage-backed securities | 93,105 | 1,312 | (71 | ) | 94,346 | 106,133 | 5,350 | (10 | ) | 111,473 | ||||||||||||||
Collateralized loan obligations | 57 | — | — | 57 | ||||||||||||||||||||
Other debt securities | 14 | — | — | 14 | ||||||||||||||||||||
Total held-to-maturity debt securities | 145,876 | 2,068 | (80 | ) | 147,864 | 169,002 | 7,944 | (64 | ) | 176,882 | ||||||||||||||
Total | $ | 409,334 | 5,166 | (653 | ) | 413,847 | $ | 393,469 | 13,922 | (1,610 | ) | 405,781 | ||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | $ | 13,451 | 3 | (106 | ) | 13,348 | $ | 14,948 | 13 | (1 | ) | 14,960 | ||||||||||||
Securities of U.S. states and political subdivisions | 48,994 | 716 | (446 | ) | 49,264 | 39,381 | 992 | (36 | ) | 40,337 | ||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||
Federal agencies | 155,974 | 369 | (3,140 | ) | 153,203 | 160,318 | 2,299 | (164 | ) | 162,453 | ||||||||||||||
Residential | 2,638 | 142 | (5 | ) | 2,775 | 814 | 14 | (1 | ) | 827 | ||||||||||||||
Commercial | 4,207 | 40 | (22 | ) | 4,225 | 3,899 | 41 | (6 | ) | 3,934 | ||||||||||||||
Total mortgage-backed securities | 162,819 | 551 | (3,167 | ) | 160,203 | 165,031 | 2,354 | (171 | ) | 167,214 | ||||||||||||||
Corporate debt securities | 6,230 | 131 | (90 | ) | 6,271 | 6,343 | 252 | (32 | ) | 6,563 | ||||||||||||||
Collateralized loan and other debt obligations (2) | 35,581 | 158 | (396 | ) | 35,343 | |||||||||||||||||||
Collateralized loan obligations | 29,153 | 25 | (123 | ) | 29,055 | |||||||||||||||||||
Other | 5,396 | 100 | (13 | ) | 5,483 | 5,204 | 150 | (24 | ) | 5,330 | ||||||||||||||
Total available-for-sale debt securities | 272,471 | 1,659 | (4,218 | ) | 269,912 | 260,060 | 3,786 | (387 | ) | 263,459 | ||||||||||||||
Held-to-maturity debt securities: | ||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | 44,751 | 4 | (415 | ) | 44,340 | 45,541 | 617 | (19 | ) | 46,139 | ||||||||||||||
Securities of U.S. states and political subdivisions | 6,286 | 30 | (116 | ) | 6,200 | 13,486 | 286 | (13 | ) | 13,759 | ||||||||||||||
Federal agency and other mortgage-backed securities | 93,685 | 112 | (2,288 | ) | 91,509 | 94,869 | 2,093 | (37 | ) | 96,925 | ||||||||||||||
Collateralized loan obligations | 66 | — | — | 66 | ||||||||||||||||||||
Other debt securities | 37 | — | — | 37 | ||||||||||||||||||||
Total held-to-maturity debt securities | 144,788 | 146 | (2,819 | ) | 142,115 | 153,933 | 2,996 | (69 | ) | 156,860 | ||||||||||||||
Total | $ | 417,259 | 1,805 | (7,037 | ) | 412,027 | $ | 413,993 | 6,782 | (456 | ) | 420,319 |
(1) | Represents amortized cost of the securities, net of the allowance for credit losses of $114 million related to available-for-sale debt securities and $20 million related to held-to-maturity debt securities at June 30, 2020. Prior to our adoption of CECL on January 1, 2020, the allowance for credit losses related to available-for-sale and held-to-maturity debt securities was not applicable and is therefore presented as $0 at December 31, 2019. For more information, see Note 1 (Summary of Significant Accounting Policies). |
(2) | Includes investments in tax-exempt preferred debt securities issued by investment funds or trusts that predominantly invest in tax-exempt municipal securities. The amortized cost |
(3) | Predominantly consists of federal agency mortgage-backed securities at both June 30, 2020 and December 31, 2019. |
(4) | We held available-for-sale and held-to-maturity debt securities from Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC) that each exceeded 10% of stockholders’ equity, with an amortized cost of $93.6 billion and $80.1 billion and a fair value of $98.1 billion and $83.8 billion at June 30, 2020 and an amortized cost of $98.5 billion and $84.1 billion and a fair value of $100.3 billion and $85.5 billion at December 31, 2019, respectively. |
Quarter ended June 30, | Six months ended June 30, | ||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||
Purchases of held-to-maturity debt securities: | |||||||||||||
Securities of U.S. Treasury and federal agencies | $ | — | — | $ | 3,016 | — | |||||||
Securities of U.S. states and political subdivisions | 15 | 243 | 881 | 243 | |||||||||
Federal agency and other mortgage-backed securities | 6,970 | 37 | 22,895 | 53 | |||||||||
Total purchases of held-to-maturity debt securities | 6,985 | 280 | 26,792 | 296 | |||||||||
Transfers from available-for-sale debt securities to held-to-maturity debt securities: | |||||||||||||
Securities of U.S. states and political subdivisions | — | 1,558 | — | 1,558 | |||||||||
Federal agency and other mortgage-backed securities | — | 2,106 | — | 4,513 | |||||||||
Total transfers from available-for-sale debt securities to held-to-maturity debt securities | $ | — | 3,664 | $ | — | 6,071 |
Quarter ended June 30, | Six months ended June 30, | ||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||
Interest income: | |||||||||||||
Available-for-sale | $ | 1,349 | 2,110 | $ | 3,075 | 4,311 | |||||||
Held-to-maturity | 938 | 931 | 1,918 | 1,878 | |||||||||
Total interest income (1) | 2,287 | 3,041 | 4,993 | 6,189 | |||||||||
Provision (reversal of provision) for credit losses (2): | |||||||||||||
Available-for-sale | (40 | ) | — | 128 | — | ||||||||
Held-to-maturity | 9 | — | 13 | — | |||||||||
Total provision (reversal of provision) for credit losses | (31 | ) | — | 141 | — | ||||||||
Realized gains and losses (3): | |||||||||||||
Gross realized gains | 248 | 29 | 504 | 202 | |||||||||
Gross realized losses | (36 | ) | (2 | ) | (40 | ) | (5 | ) | |||||
Impairment write-downs included in earnings: | |||||||||||||
Credit-related (4) | — | (7 | ) | — | (23 | ) | |||||||
Intent-to-sell | — | — | (15 | ) | (29 | ) | |||||||
Total impairment write-downs included in earnings | — | (7 | ) | (15 | ) | (52 | ) | ||||||
Net realized gains | $ | 212 | 20 | $ | 449 | 145 |
(1) | Total interest income from debt securities excludes interest income from trading debt securities, which is disclosed in Note 4 (Trading Activities). |
(2) | Prior to our adoption of CECL on January 1, 2020, the provision for credit losses from debt securities was not applicable and is therefore presented as $0 for the prior period. For more information, see Note 1 (Summary of Significant Accounting Policies). |
(3) | Realized gains and losses relate to available-for-sale debt securities. There were 0 realized gains or losses from held-to-maturity debt securities in all periods presented. |
(4) | For the second quarter and first half of 2020, credit-related impairment recognized in earnings is classified as provision for credit losses due to our adoption of CECLon January 1, 2020. For more information, see Note 1 (Summary of Significant Accounting Policies). |
Available-for-Sale | Held-to-Maturity | |||||||||
($ in millions) | Fair value | % investment grade | Amortized cost | % investment grade | ||||||
June 30, 2020 | ||||||||||
Total portfolio | $ | 228,899 | 99 | % | 169,022 | 99 | % | |||
Breakdown by category: | ||||||||||
Securities of U.S. Treasury and federal agencies (1) | $ | 152,818 | 100 | % | 153,863 | 100 | % | |||
Securities of U.S. states and political subdivisions | 33,011 | 99 | 14,286 | 100 | ||||||
Collateralized loan obligations | 24,999 | 100 | N/A | N/A | ||||||
All other debt securities (2) | 18,071 | 87 | 873 | 6 | ||||||
December 31, 2019 | ||||||||||
Total portfolio | $ | 263,459 | 99 | % | 153,933 | 99 | % | |||
Breakdown by category: | ||||||||||
Securities of U.S. Treasury and federal agencies (1) | $ | 177,413 | 100 | % | 139,619 | 100 | % | |||
Securities of U.S. states and political subdivisions | 40,337 | 99 | 13,486 | 100 | ||||||
Collateralized loan obligations | 29,055 | 100 | N/A | N/A | ||||||
All other debt securities (2) | 16,654 | 82 | 828 | 4 |
(1) | Includes federal agency mortgage-backed securities. |
(2) | Includes |
(in millions) | Six months ended June 30, 2020 | ||
Available-for-sale debt securities purchased with credit deterioration (PCD): | |||
Par value | $ | 164 | |
Allowance for credit losses at acquisition | (11 | ) | |
Discount (or premiums) attributable to other factors | 3 | ||
Purchase price of available-for-sale debt securities purchased with credit deterioration | $ | 156 |
Less than 12 months | 12 months or more | Total | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||
(in millions) | Gross unrealized losses | Fair value | Gross unrealized losses | Fair value | Gross unrealized losses | Fair value | Gross unrealized losses | Fair value | Gross unrealized losses | Fair value | Gross unrealized losses | Fair value | ||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | $ | (2 | ) | 5,780 | (15 | ) | 5,511 | (17 | ) | 11,291 | $ | (9 | ) | 608 | — | — | (9 | ) | 608 | |||||||||||||||||
Securities of U.S. states and political subdivisions | (32 | ) | 5,003 | (46 | ) | 2,696 | (78 | ) | 7,699 | (372 | ) | 17,219 | (76 | ) | 2,539 | (448 | ) | 19,758 | ||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||
Federal agencies | (2 | ) | 1,203 | (306 | ) | 32,179 | (308 | ) | 33,382 | (22 | ) | 4,129 | (2 | ) | 512 | (24 | ) | 4,641 | ||||||||||||||||||
Residential | (1 | ) | 180 | — | — | (1 | ) | 180 | (2 | ) | 302 | (1 | ) | 58 | (3 | ) | 360 | |||||||||||||||||||
Commercial | (3 | ) | 837 | (2 | ) | 89 | (5 | ) | 926 | (84 | ) | 2,895 | (29 | ) | 343 | (113 | ) | 3,238 | ||||||||||||||||||
Total mortgage-backed securities | (6 | ) | 2,220 | (308 | ) | 32,268 | (314 | ) | 34,488 | (108 | ) | 7,326 | (32 | ) | 913 | (140 | ) | 8,239 | ||||||||||||||||||
Corporate debt securities | (11 | ) | 470 | (25 | ) | 281 | (36 | ) | 751 | (79 | ) | 1,308 | (13 | ) | 93 | (92 | ) | 1,401 | ||||||||||||||||||
Collateralized loan and other debt obligations | (58 | ) | 12,847 | (56 | ) | 7,239 | (114 | ) | 20,086 | |||||||||||||||||||||||||||
Collateralized loan obligations | (478 | ) | 18,215 | (251 | ) | 6,640 | (729 | ) | 24,855 | |||||||||||||||||||||||||||
Other | (8 | ) | 1,222 | (6 | ) | 246 | (14 | ) | 1,468 | (82 | ) | 4,185 | (46 | ) | 905 | (128 | ) | 5,090 | ||||||||||||||||||
Total available-for-sale debt securities | (117 | ) | 27,542 | (456 | ) | 48,241 | (573 | ) | 75,783 | $ | (1,128 | ) | 48,861 | (418 | ) | 11,090 | (1,546 | ) | 59,951 | |||||||||||||||||
Held-to-maturity debt securities: | ||||||||||||||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | — | — | (4 | ) | 1,613 | (4 | ) | 1,613 | ||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | — | — | (5 | ) | 514 | (5 | ) | 514 | ||||||||||||||||||||||||||||
Federal agency and other mortgage-backed securities | (1 | ) | 15 | (70 | ) | 17,392 | (71 | ) | 17,407 | |||||||||||||||||||||||||||
Collateralized loan obligations | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Total held-to-maturity debt securities | (1 | ) | 15 | (79 | ) | 19,519 | (80 | ) | 19,534 | |||||||||||||||||||||||||||
Total | $ | (118 | ) | 27,557 | (535 | ) | 67,760 | (653 | ) | 95,317 | ||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | $ | (1 | ) | 498 | (105 | ) | 6,204 | (106 | ) | 6,702 | $ | — | — | (1 | ) | 2,423 | (1 | ) | 2,423 | |||||||||||||||||
Securities of U.S. states and political subdivisions | (73 | ) | 9,746 | (373 | ) | 9,017 | (446 | ) | 18,763 | (10 | ) | 2,776 | (26 | ) | 2,418 | (36 | ) | 5,194 | ||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||
Federal agencies | (42 | ) | 10,979 | (3,098 | ) | 112,252 | (3,140 | ) | 123,231 | (50 | ) | 16,807 | (114 | ) | 10,641 | (164 | ) | 27,448 | ||||||||||||||||||
Residential | (3 | ) | 398 | (2 | ) | 69 | (5 | ) | 467 | (1 | ) | 149 | — | — | (1 | ) | 149 | |||||||||||||||||||
Commercial | (20 | ) | 1,972 | (2 | ) | 79 | (22 | ) | 2,051 | (3 | ) | 998 | (3 | ) | 244 | (6 | ) | 1,242 | ||||||||||||||||||
Total mortgage-backed securities | (65 | ) | 13,349 | (3,102 | ) | 112,400 | (3,167 | ) | 125,749 | (54 | ) | 17,954 | (117 | ) | 10,885 | (171 | ) | 28,839 | ||||||||||||||||||
Corporate debt securities | (64 | ) | 1,965 | (26 | ) | 298 | (90 | ) | 2,263 | (9 | ) | 303 | (23 | ) | 216 | (32 | ) | 519 | ||||||||||||||||||
Collateralized loan and other debt obligations | (388 | ) | 28,306 | (8 | ) | 553 | (396 | ) | 28,859 | |||||||||||||||||||||||||||
Collateralized loan obligations | (13 | ) | 5,001 | (110 | ) | 16,789 | (123 | ) | 21,790 | |||||||||||||||||||||||||||
Other | (7 | ) | 819 | (6 | ) | 159 | (13 | ) | 978 | (12 | ) | 1,656 | (12 | ) | 492 | (24 | ) | 2,148 | ||||||||||||||||||
Total available-for-sale debt securities | (598 | ) | 54,683 | (3,620 | ) | 128,631 | (4,218 | ) | 183,314 | $ | (98 | ) | 27,690 | (289 | ) | 33,223 | (387 | ) | 60,913 | |||||||||||||||||
Held-to-maturity debt securities: | ||||||||||||||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | (3 | ) | 895 | (412 | ) | 41,083 | (415 | ) | 41,978 | |||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | (4 | ) | 598 | (112 | ) | 3,992 | (116 | ) | 4,590 | |||||||||||||||||||||||||||
Federal agency and other mortgage-backed securities | (5 | ) | 4,635 | (2,283 | ) | 77,741 | (2,288 | ) | 82,376 | |||||||||||||||||||||||||||
Collateralized loan obligations | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Total held-to-maturity debt securities | (12 | ) | 6,128 | (2,807 | ) | 122,816 | (2,819 | ) | 128,944 | |||||||||||||||||||||||||||
Total | $ | (610 | ) | 60,811 | (6,427 | ) | 251,447 | (7,037 | ) | 312,258 |
Investment grade | Non-investment grade | |||||||||||
(in millions) | Gross unrealized losses | Fair value | Gross unrealized losses | Fair value | ||||||||
June 30, 2019 | ||||||||||||
Available-for-sale debt securities: | ||||||||||||
Securities of U.S. Treasury and federal agencies | $ | (17 | ) | 11,291 | — | — | ||||||
Securities of U.S. states and political subdivisions | (69 | ) | 7,480 | (9 | ) | 219 | ||||||
Mortgage-backed securities: | ||||||||||||
Federal agencies | (308 | ) | 33,382 | — | — | |||||||
Residential | (1 | ) | 180 | — | — | |||||||
Commercial | (4 | ) | 915 | (1 | ) | 11 | ||||||
Total mortgage-backed securities | (313 | ) | 34,477 | (1 | ) | 11 | ||||||
Corporate debt securities | (6 | ) | 299 | (30 | ) | 452 | ||||||
Collateralized loan and other debt obligations | (114 | ) | 20,086 | — | — | |||||||
Other | (8 | ) | 1,120 | (6 | ) | 348 | ||||||
Total available-for-sale debt securities | (527 | ) | 74,753 | (46 | ) | 1,030 | ||||||
Held-to-maturity debt securities: | ||||||||||||
Securities of U.S. Treasury and federal agencies | (4 | ) | 1,613 | — | — | |||||||
Securities of U.S. states and political subdivisions | (5 | ) | 514 | — | — | |||||||
Federal agency and other mortgage-backed securities | (70 | ) | 17,374 | (1 | ) | 33 | ||||||
Collateralized loan obligations | — | — | — | — | ||||||||
Total held-to-maturity debt securities | (79 | ) | 19,501 | (1 | ) | 33 | ||||||
Total | $ | (606 | ) | 94,254 | (47 | ) | 1,063 | |||||
December 31, 2018 | ||||||||||||
Available-for-sale debt securities: | ||||||||||||
Securities of U.S. Treasury and federal agencies | $ | (106 | ) | 6,702 | — | — | ||||||
Securities of U.S. states and political subdivisions | (425 | ) | 18,447 | (21 | ) | 316 | ||||||
Mortgage-backed securities: | ||||||||||||
Federal agencies | (3,140 | ) | 123,231 | — | — | |||||||
Residential | (2 | ) | 295 | (3 | ) | 172 | ||||||
Commercial | (20 | ) | 1,999 | (2 | ) | 52 | ||||||
Total mortgage-backed securities | (3,162 | ) | 125,525 | (5 | ) | 224 | ||||||
Corporate debt securities | (17 | ) | 791 | (73 | ) | 1,472 | ||||||
Collateralized loan and other debt obligations | (396 | ) | 28,859 | — | — | |||||||
Other | (7 | ) | 726 | (6 | ) | 252 | ||||||
Total available-for-sale debt securities | (4,113 | ) | 181,050 | (105 | ) | 2,264 | ||||||
Held-to-maturity debt securities: | ||||||||||||
Securities of U.S. Treasury and federal agencies | (415 | ) | 41,978 | — | — | |||||||
Securities of U.S. states and political subdivisions | (116 | ) | 4,590 | — | — | |||||||
Federal agency and other mortgage-backed securities | (2,278 | ) | 81,977 | (10 | ) | 399 | ||||||
Collateralized loan obligations | — | — | — | — | ||||||||
Total held-to-maturity debt securities | (2,809 | ) | 128,545 | (10 | ) | 399 | ||||||
Total | $ | (6,922 | ) | 309,595 | (115 | ) | 2,663 |
Quarter ended June 30, 2020 | Six months ended June 30, 2020 | ||||||||||
(in millions) | Available-for-Sale | Held-to-Maturity | Available-for-Sale | Held-to-Maturity | |||||||
Balance, beginning of period (1) | $ | 161 | 11 | $ | — | — | |||||
Cumulative effect from change in accounting policies (2) | — | — | 24 | 7 | |||||||
Balance, beginning of period, adjusted | 161 | 11 | 24 | 7 | |||||||
Provision (reversal of provision) for credit losses | (40 | ) | 9 | 128 | 13 | ||||||
Securities purchased with credit deterioration | — | — | 11 | — | |||||||
Reduction due to sales | (8 | ) | — | (8 | ) | — | |||||
Reduction due to intent to sell | �� | — | (11 | ) | — | ||||||
Charge-offs | (1 | ) | — | (33 | ) | — | |||||
Interest income (3) | 2 | — | 3 | — | |||||||
Balance, end of period (4) | $ | 114 | 20 | $ | 114 | 20 |
(1) | Prior to our adoption of CECL on January 1, 2020, the allowance for credit losses related to available-for-sale and held-to-maturity debt securities was not applicable and is therefore presented as $0 at December 31, 2019. For more information, see Note 1 (Summary of Significant Accounting Policies). |
(2) | Represents the impact of adoption of CECL on January 1, 2020. For more information, see Note 1 (Summary of Significant Accounting Policies). |
(3) | Certain debt securities with an allowance for credit losses calculated by discounting expected cash flows using the securities’ effective interest rate over its remaining life, recognize changes in the allowance for credit losses attributable to the passage of time as interest income. |
(4) | The allowance for credit losses for debt securities largely relates to corporate debt securities as of June 30, 2020. |
Remaining contractual maturity | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | Within one year | After one year through five years | After five years through ten years | After ten years | |||||||||||||||||||||||||||||||||||||||||||||
(in millions) | amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | |||||||||||||||||||||||||||||||||||||||
June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
By remaining contractual maturity ($ in millions) | Total | Within one year | After one year through five years | After five years through ten years | After ten years | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale debt securities (1): | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair value: | |||||||||||||||||||||||||||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | $ | 15,319 | 1.94 | % | $ | 5,521 | 1.69 | % | $ | 9,747 | 2.08 | % | $ | 51 | 1.89 | % | $ | — | — | % | |||||||||||||||||||||||||||||
Amortized cost, net | $ | 7,923 | 3,671 | 1,280 | 10 | 2,962 | |||||||||||||||||||||||||||||||||||||||||||
Fair value | 7,983 | 3,672 | 1,283 | 11 | 3,017 | ||||||||||||||||||||||||||||||||||||||||||||
Weighted average yield | 1.84 | % | 2.66 | 0.27 | 2.34 | 1.49 | |||||||||||||||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | 45,095 | 4.92 | 2,016 | 3.34 | 5,135 | 3.34 | 4,322 | 3.54 | 33,622 | 5.40 | |||||||||||||||||||||||||||||||||||||||
Amortized cost, net | 33,259 | 2,687 | 3,094 | 3,990 | 23,488 | ||||||||||||||||||||||||||||||||||||||||||||
Fair value | 33,011 | 2,687 | 3,134 | 3,996 | 23,194 | ||||||||||||||||||||||||||||||||||||||||||||
Weighted average yield | 2.37 | 1.17 | 2.00 | 1.51 | 2.70 | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||||
Federal agencies | 155,858 | 3.50 | — | — | 137 | 3.48 | 1,665 | 2.56 | 154,056 | 3.51 | |||||||||||||||||||||||||||||||||||||||
Amortized cost, net | 139,326 | 2 | 119 | 2,418 | 136,787 | ||||||||||||||||||||||||||||||||||||||||||||
Fair value | 144,835 | 2 | 125 | 2,505 | 142,203 | ||||||||||||||||||||||||||||||||||||||||||||
Weighted average yield | 3.18 | 2.09 | 3.18 | 2.38 | 3.20 | ||||||||||||||||||||||||||||||||||||||||||||
Residential | 1,263 | 2.80 | — | — | — | — | — | — | 1,263 | 2.80 | |||||||||||||||||||||||||||||||||||||||
Amortized cost, net | 542 | — | — | — | 542 | ||||||||||||||||||||||||||||||||||||||||||||
Fair value | 541 | — | — | — | 541 | ||||||||||||||||||||||||||||||||||||||||||||
Weighted average yield | 2.26 | — | — | — | 2.26 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial | 4,180 | 3.71 | — | — | — | — | 342 | 3.61 | 3,838 | 3.72 | |||||||||||||||||||||||||||||||||||||||
Amortized cost, net | 3,663 | — | 33 | 194 | 3,436 | ||||||||||||||||||||||||||||||||||||||||||||
Fair value | 3,559 | — | 30 | 193 | 3,336 | ||||||||||||||||||||||||||||||||||||||||||||
Weighted average yield | 2.20 | — | 2.49 | 2.50 | 2.18 | ||||||||||||||||||||||||||||||||||||||||||||
Total mortgage-backed securities | 161,301 | 3.50 | — | — | 137 | 3.48 | 2,007 | 2.74 | 159,157 | 3.51 | |||||||||||||||||||||||||||||||||||||||
Amortized cost, net | 143,531 | 2 | 152 | 2,612 | 140,765 | ||||||||||||||||||||||||||||||||||||||||||||
Fair value | 148,935 | 2 | 155 | 2,698 | 146,080 | ||||||||||||||||||||||||||||||||||||||||||||
Weighted average yield | 3.16 | 2.09 | 3.03 | 2.39 | 3.17 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 6,230 | 5.01 | 484 | 6.17 | 2,384 | 5.00 | 2,737 | 4.69 | 625 | 5.59 | |||||||||||||||||||||||||||||||||||||||
Collateralized loan and other debt obligations | 32,995 | 3.96 | — | — | 8 | 5.02 | 10,005 | 4.03 | 22,982 | 3.93 | |||||||||||||||||||||||||||||||||||||||
Amortized cost, net | 4,972 | 260 | 1,579 | 2,332 | 801 | ||||||||||||||||||||||||||||||||||||||||||||
Fair value | 4,975 | 262 | 1,585 | 2,360 | 768 | ||||||||||||||||||||||||||||||||||||||||||||
Weighted average yield | 4.86 | 6.17 | 4.79 | 4.92 | 4.40 | ||||||||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | |||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost, net | 25,727 | — | 193 | 11,565 | 13,969 | ||||||||||||||||||||||||||||||||||||||||||||
Fair value | 24,999 | — | 191 | 11,291 | 13,517 | ||||||||||||||||||||||||||||||||||||||||||||
Weighted average yield | 2.44 | — | 2.85 | 2.56 | 2.34 | ||||||||||||||||||||||||||||||||||||||||||||
Other | 5,043 | 3.10 | 12 | 3.34 | 749 | 3.80 | 1,424 | 2.13 | 2,858 | 3.40 | |||||||||||||||||||||||||||||||||||||||
Total available-for-sale debt securities at fair value | $ | 265,983 | 3.73 | % | $ | 8,033 | 2.38 | % | $ | 18,160 | 2.96 | % | $ | 20,546 | 3.75 | % | $ | 219,244 | 3.85 | % | |||||||||||||||||||||||||||||
Amortized cost, net | 9,055 | 4,690 | 476 | 1,116 | 2,773 | ||||||||||||||||||||||||||||||||||||||||||||
Fair value | 8,996 | 4,682 | 462 | 1,098 | 2,754 | ||||||||||||||||||||||||||||||||||||||||||||
Weighted average yield | 0.89 | (0.14 | ) | 2.51 | 1.34 | 2.18 | |||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale debt securities | |||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost, net | $ | 224,467 | 11,310 | 6,774 | 21,625 | 184,758 | |||||||||||||||||||||||||||||||||||||||||||
Fair value | 228,899 | 11,305 | 6,810 | 21,454 | 189,330 | ||||||||||||||||||||||||||||||||||||||||||||
Weighted average yield | 2.86 | % | 1.23 | 2.43 | 2.54 | 3.01 |
(1) | Weighted-average yields displayed by maturity bucket are weighted based on |
Remaining contractual maturity | ||||||||||||||||||||||||||||||||||
Total | Within one year | After one year through five years | After five years through ten years | After ten years | ||||||||||||||||||||||||||||||
(in millions) | amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||||
Held-to-maturity debt securities (1): | ||||||||||||||||||||||||||||||||||
Amortized cost: | ||||||||||||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | $ | 44,766 | 2.12 | % | $ | — | — | % | $ | 34,667 | 2.07 | % | $ | 10,099 | 2.28 | % | $ | — | — | % | ||||||||||||||
Securities of U.S. states and political subdivisions | 7,948 | 4.97 | — | — | 75 | 6.05 | 1,570 | 4.89 | 6,303 | 4.98 | ||||||||||||||||||||||||
Federal agency and other mortgage-backed securities | 93,105 | 3.12 | — | — | 15 | 3.77 | — | — | 93,090 | 3.12 | ||||||||||||||||||||||||
Collateralized loan obligations | 57 | 3.78 | — | — | — | — | 57 | 3.78 | — | — | ||||||||||||||||||||||||
Total held-to-maturity debt securities at amortized cost | $ | 145,876 | 2.91 | % | $ | — | — | % | $ | 34,757 | 2.08 | % | $ | 11,726 | 2.64 | % | $ | 99,393 | 3.24 | % |
By remaining contractual maturity ($ in millions) | Total | Within one year | After one year through five years | After five years through ten years | After ten years | ||||||||||
June 30, 2020 | |||||||||||||||
Held-to-maturity debt securities (1): | |||||||||||||||
Securities of U.S. Treasury and federal agencies | |||||||||||||||
Amortized cost, net | $ | 48,578 | 21,011 | 23,787 | — | 3,780 | |||||||||
Fair value | 50,503 | 21,349 | 25,164 | — | 3,990 | ||||||||||
Weighted average yield | 2.14 | % | 2.21 | 2.18 | — | 1.56 | |||||||||
Securities of U.S. states and political subdivisions | |||||||||||||||
Amortized cost, net | 14,277 | 143 | 640 | 1,864 | 11,630 | ||||||||||
Fair value | 14,892 | 145 | 669 | 1,960 | 12,118 | ||||||||||
Weighted average yield | 2.71 | 1.61 | 2.43 | 2.88 | 2.72 | ||||||||||
Federal agency and other mortgage-backed securities | |||||||||||||||
Amortized cost, net | 106,133 | — | 15 | 703 | 105,415 | ||||||||||
Fair value | 111,473 | — | 13 | 755 | 110,705 | ||||||||||
Weighted average yield | 2.90 | — | 1.52 | 1.41 | 2.91 | ||||||||||
Other debt securities | |||||||||||||||
Amortized cost, net | 14 | — | — | 14 | — | ||||||||||
Fair value | 14 | — | — | 14 | — | ||||||||||
Weighted average yield | 2.40 | — | — | 2.40 | — | ||||||||||
Total held-to-maturity debt securities | |||||||||||||||
Amortized cost, net | $ | 169,002 | 21,154 | 24,442 | 2,581 | 120,825 | |||||||||
Fair value | 176,882 | 21,494 | 25,846 | 2,729 | 126,813 | ||||||||||
Weighted average yield | 2.66 | % | 2.20 | 2.19 | 2.47 | 2.85 |
(1) | Weighted-average yields displayed by maturity bucket are weighted based on amortized cost and are shown pre-tax. |
Remaining contractual maturity | |||||||||||||||
Total | Within one year | After one year through five years | After five years through ten years | After ten years | |||||||||||
(in millions) | amount | Amount | Amount | Amount | Amount | ||||||||||
June 30, 2019 | |||||||||||||||
Held-to-maturity debt securities: | |||||||||||||||
Fair value: | |||||||||||||||
Securities of U.S. Treasury and federal agencies | $ | 45,336 | — | 34,962 | 10,374 | — | |||||||||
Securities of U.S. states and political subdivisions | 8,125 | — | 75 | 1,625 | 6,425 | ||||||||||
Federal agency and other mortgage-backed securities | 94,346 | — | 15 | — | 94,331 | ||||||||||
Collateralized loan obligations | 57 | — | — | 57 | — | ||||||||||
Total held-to-maturity debt securities at fair value | $ | 147,864 | — | 35,052 | 12,056 | 100,756 |
Quarter ended June 30, | Six months ended June 30, | |||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||
Gross realized gains | $ | 29 | 53 | 202 | 74 | |||||||
Gross realized losses | (2 | ) | (4 | ) | (5 | ) | (14 | ) | ||||
OTTI write-downs | (7 | ) | (8 | ) | (52 | ) | (18 | ) | ||||
Net realized gains from available-for-sale debt securities | $ | 20 | 41 | 145 | 42 |
Quarter ended June 30, | Six months ended June 30, | |||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||
Debt securities OTTI write-downs included in earnings: | ||||||||||||
Securities of U.S. states and political subdivisions | $ | 4 | — | 33 | 2 | |||||||
Mortgage-backed securities: | ||||||||||||
Residential | — | 1 | — | 2 | ||||||||
Commercial | 3 | 7 | 17 | 14 | ||||||||
Corporate debt securities | — | — | 2 | — | ||||||||
Total debt securities OTTI write-downs included in earnings | $ | 7 | 8 | 52 | 18 |
Quarter ended June 30, | Six months ended June 30, | |||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||
OTTI on debt securities | ||||||||||||
Recorded as part of gross realized losses: | ||||||||||||
Credit-related OTTI | $ | 7 | 8 | 23 | 17 | |||||||
Intent-to-sell OTTI | — | — | 29 | 1 | ||||||||
Total recorded as part of gross realized losses | 7 | 8 | 52 | 18 | ||||||||
Changes to OCI for losses (reversal of losses) in non-credit-related OTTI (1): | ||||||||||||
Securities of U.S. states and political subdivisions | (1 | ) | — | (1 | ) | (2 | ) | |||||
Residential mortgage-backed securities | — | — | (1 | ) | (1 | ) | ||||||
Commercial mortgage-backed securities | — | (11 | ) | 1 | (1 | ) | ||||||
Total changes to OCI for non-credit-related OTTI | (1 | ) | (11 | ) | (1 | ) | (4 | ) | ||||
Total OTTI losses recorded on debt securities | $ | 6 | (3 | ) | 51 | 14 |
Quarter ended June 30, | Six months ended June 30, | |||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||
Credit loss recognized, beginning of period | $ | 232 | 649 | 562 | 742 | |||||||
Additions: | ||||||||||||
For securities with initial credit impairments | 4 | — | 6 | — | ||||||||
For securities with previous credit impairments | 3 | 8 | 17 | 17 | ||||||||
Total additions | 7 | 8 | 23 | 17 | ||||||||
Reductions: | ||||||||||||
For securities sold, matured, or intended/required to be sold | (23 | ) | (30 | ) | (369 | ) | (131 | ) | ||||
For recoveries of previous credit impairments (1) | — | (1 | ) | — | (2 | ) | ||||||
Total reductions | (23 | ) | (31 | ) | (369 | ) | (133 | ) | ||||
Credit loss recognized, end of period | $ | 216 | 626 | 216 | 626 |
Note 6: Loans and Related Allowance for Credit Losses |
(in millions) | Jun 30, 2019 | Dec 31, 2018 | Jun 30, 2020 | Dec 31, 2019 | ||||||||
Commercial: | ||||||||||||
Commercial and industrial | $ | 348,846 | 350,199 | $ | 350,116 | 354,125 | ||||||
Real estate mortgage | 123,008 | 121,014 | 123,967 | 121,824 | ||||||||
Real estate construction | 21,067 | 22,496 | 21,694 | 19,939 | ||||||||
Lease financing | 19,324 | 19,696 | 17,410 | 19,831 | ||||||||
Total commercial | 512,245 | 513,405 | 513,187 | 515,719 | ||||||||
Consumer: | ||||||||||||
Real estate 1-4 family first mortgage | 286,427 | 285,065 | 277,945 | 293,847 | ||||||||
Real estate 1-4 family junior lien mortgage | 32,068 | 34,398 | 26,839 | 29,509 | ||||||||
Credit card | 38,820 | 39,025 | 36,018 | 41,013 | ||||||||
Automobile | 45,664 | 45,069 | 48,808 | 47,873 | ||||||||
Other revolving credit and installment | 34,654 | 36,148 | 32,358 | 34,304 | ||||||||
Total consumer | 437,633 | 439,705 | 421,968 | 446,546 | ||||||||
Total loans | $ | 949,878 | 953,110 | $ | 935,155 | 962,265 |
(in millions) | Jun 30, 2019 | Dec 31, 2018 | Jun 30, 2020 | Dec 31, 2019 | ||||||||
Commercial foreign loans: | ||||||||||||
Non-U.S. Commercial Loans | ||||||||||||
Commercial and industrial | $ | 63,296 | 62,564 | $ | 67,015 | 70,494 | ||||||
Real estate mortgage | 6,801 | 6,731 | 6,460 | 7,004 | ||||||||
Real estate construction | 1,287 | 1,011 | 1,697 | 1,434 | ||||||||
Lease financing | 1,215 | 1,159 | 1,146 | 1,220 | ||||||||
Total commercial foreign loans | $ | 72,599 | 71,465 | |||||||||
Total non-U.S. commercial loans | $ | 76,318 | 80,152 |
2019 | 2018 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
(in millions) | Commercial | Consumer | Total | Commercial | Consumer | Total | Commercial | Consumer | Total | Commercial | Consumer | Total | ||||||||||||||||||||||||
Quarter ended June 30, | ||||||||||||||||||||||||||||||||||||
Purchases | $ | 670 | 5 | 675 | 398 | 7 | 405 | $ | 332 | 2 | 334 | 670 | 5 | 675 | ||||||||||||||||||||||
Sales | (535 | ) | (153 | ) | (688 | ) | (294 | ) | (88 | ) | (382 | ) | (1,957 | ) | (1 | ) | (1,958 | ) | (535 | ) | (153 | ) | (688 | ) | ||||||||||||
Transfers (to) from MLHFS/LHFS | (89 | ) | (1,852 | ) | (1,941 | ) | (100 | ) | (72 | ) | (172 | ) | (8 | ) | (10,379 | ) | (10,387 | ) | (89 | ) | (1,852 | ) | (1,941 | ) | ||||||||||||
Six months ended June 30, | ||||||||||||||||||||||||||||||||||||
Purchases | $ | 999 | 8 | 1,007 | 654 | 7 | 661 | $ | 673 | 3 | 676 | 999 | 8 | 1,007 | ||||||||||||||||||||||
Sales | (956 | ) | (332 | ) | (1,288 | ) | (754 | ) | (88 | ) | (842 | ) | (2,770 | ) | (27 | ) | (2,797 | ) | (956 | ) | (332 | ) | (1,288 | ) | ||||||||||||
Transfers (to) from MLHFS/LHFS | (92 | ) | (1,852 | ) | (1,944 | ) | (520 | ) | (1,625 | ) | (2,145 | ) | 69 | (10,377 | ) | (10,308 | ) | (92 | ) | (1,852 | ) | (1,944 | ) |
(in millions) | Jun 30, 2019 | Dec 31, 2018 | Jun 30, 2020 | Dec 31, 2019 | ||||||||
Commercial: | ||||||||||||
Commercial and industrial | $ | 329,751 | 330,492 | $ | 348,870 | 346,991 | ||||||
Real estate mortgage | 7,905 | 6,984 | 8,394 | 8,206 | ||||||||
Real estate construction | 15,459 | 16,400 | 17,316 | 17,729 | ||||||||
Total commercial | 353,115 | 353,876 | 374,580 | 372,926 | ||||||||
Consumer: | ||||||||||||
Real estate 1-4 family first mortgage | 43,427 | 29,736 | 32,845 | 34,391 | ||||||||
Real estate 1-4 family junior lien mortgage | 37,454 | 37,719 | 35,932 | 36,916 | ||||||||
Credit card | 113,306 | 109,840 | 121,237 | 114,933 | ||||||||
Other revolving credit and installment | 26,676 | 27,530 | 23,357 | 25,898 | ||||||||
Total consumer | 220,863 | 204,825 | 213,371 | 212,138 | ||||||||
Total unfunded credit commitments | $ | 573,978 | 558,701 | $ | 587,951 | 585,064 |
Quarter ended June 30, | Six months ended June 30, | Quarter ended June 30, | Six months ended June 30, | |||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Balance, beginning of period | $ | 10,821 | 11,313 | 10,707 | 11,960 | $ | 12,022 | 10,821 | 10,456 | 10,707 | ||||||||||||||
Cumulative effect from change in accounting policies (1) | — | — | (1,337 | ) | — | |||||||||||||||||||
Allowance for purchased credit-deteriorated (PCD) loans (2) | — | — | 8 | — | ||||||||||||||||||||
Balance, beginning of period, adjusted | 12,022 | 10,821 | 9,127 | 10,707 | ||||||||||||||||||||
Provision for credit losses | 503 | 452 | 1,348 | 643 | 9,565 | 503 | 13,398 | 1,348 | ||||||||||||||||
Interest income on certain impaired loans (1) | (39 | ) | (43 | ) | (78 | ) | (86 | ) | ||||||||||||||||
Interest income on certain loans (3) | (38 | ) | (39 | ) | (76 | ) | (78 | ) | ||||||||||||||||
Loan charge-offs: | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial and industrial | (205 | ) | (134 | ) | (381 | ) | (298 | ) | (556 | ) | (205 | ) | (933 | ) | (381 | ) | ||||||||
Real estate mortgage | (14 | ) | (19 | ) | (26 | ) | (21 | ) | (72 | ) | (14 | ) | (75 | ) | (26 | ) | ||||||||
Real estate construction | — | — | (1 | ) | — | — | — | — | (1 | ) | ||||||||||||||
Lease financing | (12 | ) | (20 | ) | (23 | ) | (37 | ) | (19 | ) | (12 | ) | (32 | ) | (23 | ) | ||||||||
Total commercial | (231 | ) | (173 | ) | (431 | ) | (356 | ) | (647 | ) | (231 | ) | (1,040 | ) | (431 | ) | ||||||||
Consumer: | ||||||||||||||||||||||||
Real estate 1-4 family first mortgage | (27 | ) | (55 | ) | (70 | ) | (96 | ) | (20 | ) | (27 | ) | (43 | ) | (70 | ) | ||||||||
Real estate 1-4 family junior lien mortgage | (29 | ) | (47 | ) | (63 | ) | (94 | ) | (18 | ) | (29 | ) | (48 | ) | (63 | ) | ||||||||
Credit card | (437 | ) | (404 | ) | (874 | ) | (809 | ) | (415 | ) | (437 | ) | (886 | ) | (874 | ) | ||||||||
Automobile | (142 | ) | (216 | ) | (329 | ) | (516 | ) | (158 | ) | (142 | ) | (314 | ) | (329 | ) | ||||||||
Other revolving credit and installment | (167 | ) | (164 | ) | (329 | ) | (344 | ) | (113 | ) | (167 | ) | (278 | ) | (329 | ) | ||||||||
Total consumer | (802 | ) | (886 | ) | (1,665 | ) | (1,859 | ) | (724 | ) | (802 | ) | (1,569 | ) | (1,665 | ) | ||||||||
Total loan charge-offs | (1,033 | ) | (1,059 | ) | (2,096 | ) | (2,215 | ) | (1,371 | ) | (1,033 | ) | (2,609 | ) | (2,096 | ) | ||||||||
Loan recoveries: | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial and industrial | 46 | 76 | 89 | 155 | 35 | 46 | 79 | 89 | ||||||||||||||||
Real estate mortgage | 10 | 19 | 16 | 36 | 5 | 10 | 10 | 16 | ||||||||||||||||
Real estate construction | 2 | 6 | 5 | 10 | 1 | 2 | 17 | 5 | ||||||||||||||||
Lease financing | 8 | 5 | 11 | 10 | 4 | 8 | 8 | 11 | ||||||||||||||||
Total commercial | 66 | 106 | 121 | 211 | 45 | 66 | 114 | 121 | ||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 57 | 78 | 112 | 137 | 18 | 57 | 44 | 112 | ||||||||||||||||
Real estate 1-4 family junior lien mortgage | 48 | 60 | 91 | 115 | 30 | 48 | 65 | 91 | ||||||||||||||||
Credit card | 88 | 81 | 173 | 154 | 88 | 88 | 182 | 173 | ||||||||||||||||
Automobile | 90 | 103 | 186 | 195 | 52 | 90 | 126 | 186 | ||||||||||||||||
Other revolving credit and installment | 31 | 29 | 65 | 60 | 25 | 31 | 56 | 65 | ||||||||||||||||
Total consumer | 314 | 351 | 627 | 661 | 213 | 314 | 473 | 627 | ||||||||||||||||
Total loan recoveries | 380 | 457 | 748 | 872 | 258 | 380 | 587 | 748 | ||||||||||||||||
Net loan charge-offs | (653 | ) | (602 | ) | (1,348 | ) | (1,343 | ) | (1,113 | ) | (653 | ) | (2,022 | ) | (1,348 | ) | ||||||||
Other | (29 | ) | (10 | ) | (26 | ) | (64 | ) | — | (29 | ) | 9 | (26 | ) | ||||||||||
Balance, end of period | $ | 10,603 | 11,110 | 10,603 | 11,110 | $ | 20,436 | 10,603 | 20,436 | 10,603 | ||||||||||||||
Components: | ||||||||||||||||||||||||
Allowance for loan losses | $ | 9,692 | 10,193 | 9,692 | 10,193 | $ | 18,926 | 9,692 | 18,926 | 9,692 | ||||||||||||||
Allowance for unfunded credit commitments | 911 | 917 | 911 | 917 | 1,510 | 911 | 1,510 | 911 | ||||||||||||||||
Allowance for credit losses | $ | 10,603 | 11,110 | 10,603 | 11,110 | |||||||||||||||||||
Allowance for credit losses for loans | $ | 20,436 | 10,603 | 20,436 | 10,603 | |||||||||||||||||||
Net loan charge-offs (annualized) as a percentage of average total loans | 0.28 | % | 0.26 | 0.29 | 0.29 | 0.46 | % | 0.28 | 0.42 | 0.29 | ||||||||||||||
Allowance for loan losses as a percentage of total loans | 1.02 | 1.08 | 1.02 | 1.08 | 2.02 | 1.02 | 2.02 | 1.02 | ||||||||||||||||
Allowance for credit losses as a percentage of total loans | 1.12 | 1.18 | 1.12 | 1.18 | ||||||||||||||||||||
Allowance for credit losses for loans as a percentage of total loans | 2.19 | 1.12 | 2.19 | 1.12 |
(1) |
(2) | Represents the allowance estimated for PCI loans that automatically became PCD loans with the adoption of CECL. For more information, see Note 1 (Summary of Significant Accounting Policies). |
(3) | Loans with an allowance |
2019 | 2018 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
(in millions) | Commercial | Consumer | Total | Commercial | Consumer | Total | Commercial | Consumer | Total | Commercial | Consumer | Total | ||||||||||||||||||||||||
Quarter ended June 30, | ||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 6,428 | 4,393 | 10,821 | 6,708 | 4,605 | 11,313 | $ | 5,279 | 6,743 | 12,022 | 6,428 | 4,393 | 10,821 | ||||||||||||||||||||||
Provision for credit losses | 46 | 457 | 503 | 89 | 363 | 452 | 6,999 | 2,566 | 9,565 | 46 | 457 | 503 | ||||||||||||||||||||||||
Interest income on certain impaired loans | (14 | ) | (25 | ) | (39 | ) | (14 | ) | (29 | ) | (43 | ) | ||||||||||||||||||||||||
Interest income on certain loans (1) | (12 | ) | (26 | ) | (38 | ) | (14 | ) | (25 | ) | (39 | ) | ||||||||||||||||||||||||
Loan charge-offs | (231 | ) | (802 | ) | (1,033 | ) | (173 | ) | (886 | ) | (1,059 | ) | (647 | ) | (724 | ) | (1,371 | ) | (231 | ) | (802 | ) | (1,033 | ) | ||||||||||||
Loan recoveries | 66 | 314 | 380 | 106 | 351 | 457 | 45 | 213 | 258 | 66 | 314 | 380 | ||||||||||||||||||||||||
Net loan charge-offs | (165 | ) | (488 | ) | (653 | ) | (67 | ) | (535 | ) | (602 | ) | (602 | ) | (511 | ) | (1,113 | ) | (165 | ) | (488 | ) | (653 | ) | ||||||||||||
Other | 3 | (32 | ) | (29 | ) | (5 | ) | (5 | ) | (10 | ) | 5 | (5 | ) | — | 3 | (32 | ) | (29 | ) | ||||||||||||||||
Balance, end of period | $ | 6,298 | 4,305 | 10,603 | 6,711 | 4,399 | 11,110 | $ | 11,669 | 8,767 | 20,436 | 6,298 | 4,305 | 10,603 | ||||||||||||||||||||||
Six months ended June 30, | ||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 6,417 | 4,290 | 10,707 | 6,632 | 5,328 | 11,960 | $ | 6,245 | 4,211 | 10,456 | 6,417 | 4,290 | 10,707 | ||||||||||||||||||||||
Cumulative effect from change in accounting policies (1) | (2,861 | ) | 1,524 | (1,337 | ) | — | — | — | ||||||||||||||||||||||||||||
Allowance for purchased credit-deteriorated (PCD) loans (2) | — | 8 | 8 | — | — | — | ||||||||||||||||||||||||||||||
Balance, beginning of period, adjusted | 3,384 | 5,743 | 9,127 | 6,417 | 4,290 | 10,707 | ||||||||||||||||||||||||||||||
Provision for credit losses | 210 | 1,138 | 1,348 | 258 | 385 | 643 | 9,239 | 4,159 | 13,398 | 210 | 1,138 | 1,348 | ||||||||||||||||||||||||
Interest income on certain impaired loans | (25 | ) | (53 | ) | (78 | ) | (25 | ) | (61 | ) | (86 | ) | ||||||||||||||||||||||||
Interest income on certain loans (3) | (26 | ) | (50 | ) | (76 | ) | (25 | ) | (53 | ) | (78 | ) | ||||||||||||||||||||||||
Loan charge-offs | (431 | ) | (1,665 | ) | (2,096 | ) | (356 | ) | (1,859 | ) | (2,215 | ) | (1,040 | ) | (1,569 | ) | (2,609 | ) | (431 | ) | (1,665 | ) | (2,096 | ) | ||||||||||||
Loan recoveries | 121 | 627 | 748 | 211 | 661 | 872 | 114 | 473 | 587 | 121 | 627 | 748 | ||||||||||||||||||||||||
Net loan charge-offs | (310 | ) | (1,038 | ) | (1,348 | ) | (145 | ) | (1,198 | ) | (1,343 | ) | (926 | ) | (1,096 | ) | (2,022 | ) | (310 | ) | (1,038 | ) | (1,348 | ) | ||||||||||||
Other | 6 | (32 | ) | (26 | ) | (9 | ) | (55 | ) | (64 | ) | (2 | ) | 11 | 9 | 6 | (32 | ) | (26 | ) | ||||||||||||||||
Balance, end of period | $ | 6,298 | 4,305 | 10,603 | 6,711 | 4,399 | 11,110 | $ | 11,669 | 8,767 | 20,436 | 6,298 | 4,305 | 10,603 |
(1) | Represents the overall decrease in our allowance for credit losses for loans as a result of our adoption of CECL on January 1, 2020. |
(2) | Represents the allowance estimated for PCI loans that automatically became PCD loans with the adoption of CECL. For more information, see Note 1 (Summary of Significant Accounting Policies). |
(3) | Loans with an allowance measured by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize changes in allowance attributable to the passage of time as interest income. |
Allowance for credit losses | Recorded investment in loans | Allowance for credit losses for loans | Recorded investment in loans | |||||||||||||||||||||||||||||||||
(in millions) | Commercial | Consumer | Total | Commercial | Consumer | Total | Commercial | Consumer | Total | Commercial | Consumer | Total | ||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||||||
Collectively evaluated (1) | $ | 5,831 | 3,436 | 9,267 | 508,798 | 425,818 | 934,616 | $ | 5,778 | 3,364 | 9,142 | 512,586 | 436,081 | 948,667 | ||||||||||||||||||||||
Individually evaluated (2) | 467 | 869 | 1,336 | 3,447 | 10,641 | 14,088 | 467 | 847 | 1,314 | 3,133 | 9,897 | 13,030 | ||||||||||||||||||||||||
PCI (3) | — | — | — | — | 1,174 | 1,174 | — | — | — | — | 568 | 568 | ||||||||||||||||||||||||
Total | $ | 6,298 | 4,305 | 10,603 | 512,245 | 437,633 | 949,878 | $ | 6,245 | 4,211 | 10,456 | 515,719 | 446,546 | 962,265 | ||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||
Collectively evaluated (1) | $ | 5,903 | 3,361 | 9,264 | 510,180 | 421,574 | 931,754 | |||||||||||||||||||||||||||||
Individually evaluated (2) | 514 | 929 | 1,443 | 3,221 | 13,126 | 16,347 | ||||||||||||||||||||||||||||||
PCI (3) | — | — | — | 4 | 5,005 | 5,009 | ||||||||||||||||||||||||||||||
Total | $ | 6,417 | 4,290 | 10,707 | 513,405 | 439,705 | 953,110 |
(1) | Represents non-impaired loans evaluated collectively impairment. |
(2) | Represents impaired loans evaluated individually impairment. |
(3) | Represents the allowance for loan losses and related loan carrying value |
Term loans by origination year | Revolving loans | Revolving loans converted to term loans | Total | ||||||||||||||||||||||||||||||||||||||||
(in millions) | Commercial and industrial | Real estate mortgage | Real estate construction | Lease financing | Total | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | ||||||||||||||||||||||||||||||||
June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 46,042 | 46,198 | 20,195 | 10,082 | 6,048 | 6,347 | 189,019 | 215 | 324,146 | |||||||||||||||||||||||||||||||||
Criticized | 1,461 | 1,886 | 2,170 | 1,367 | 592 | 510 | 17,863 | 121 | 25,970 | ||||||||||||||||||||||||||||||||||
Total commercial and industrial | 47,503 | 48,084 | 22,365 | 11,449 | 6,640 | 6,857 | 206,882 | 336 | 350,116 | ||||||||||||||||||||||||||||||||||
Real estate mortgage | |||||||||||||||||||||||||||||||||||||||||||
Pass | 12,781 | 29,006 | 21,842 | 13,270 | 13,973 | 18,728 | 5,134 | 104 | 114,838 | ||||||||||||||||||||||||||||||||||
Criticized | 789 | 1,609 | 1,440 | 1,306 | 1,217 | 2,358 | 410 | — | 9,129 | ||||||||||||||||||||||||||||||||||
Total real estate mortgage | 13,570 | 30,615 | 23,282 | 14,576 | 15,190 | 21,086 | 5,544 | 104 | 123,967 | ||||||||||||||||||||||||||||||||||
Real estate construction | |||||||||||||||||||||||||||||||||||||||||||
Pass | 2,970 | 6,823 | 5,319 | 2,432 | 879 | 396 | 1,592 | 8 | 20,419 | ||||||||||||||||||||||||||||||||||
Criticized | 26 | 329 | 500 | 144 | 265 | 10 | 1 | — | 1,275 | ||||||||||||||||||||||||||||||||||
Total real estate construction | 2,996 | 7,152 | 5,819 | 2,576 | 1,144 | 406 | 1,593 | 8 | 21,694 | ||||||||||||||||||||||||||||||||||
Lease financing | |||||||||||||||||||||||||||||||||||||||||||
Pass | 2,068 | 4,626 | 2,786 | 2,063 | 1,595 | 2,480 | — | — | 15,618 | ||||||||||||||||||||||||||||||||||
Criticized | 178 | 562 | 485 | 264 | 174 | 129 | — | — | 1,792 | ||||||||||||||||||||||||||||||||||
Total lease financing | 2,246 | 5,188 | 3,271 | 2,327 | 1,769 | 2,609 | — | — | 17,410 | ||||||||||||||||||||||||||||||||||
Total commercial loans | $ | 66,315 | 91,039 | 54,737 | 30,928 | 24,743 | 30,958 | 214,019 | 448 | 513,187 | |||||||||||||||||||||||||||||||||
Commercial and industrial | Real estate mortgage | Real estate construction | Lease financing | Total | |||||||||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||
By risk category: | |||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 334,034 | 118,768 | 20,883 | 18,225 | 491,910 | $ | 338,740 | 118,054 | 19,752 | 18,655 | 495,201 | |||||||||||||||||||||||||||||||
Criticized | 14,812 | 4,240 | 184 | 1,099 | 20,335 | 15,385 | 3,770 | 187 | 1,176 | 20,518 | |||||||||||||||||||||||||||||||||
Total commercial loans (excluding PCI) | 348,846 | 123,008 | 21,067 | 19,324 | 512,245 | ||||||||||||||||||||||||||||||||||||||
Total commercial PCI loans (carrying value) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Total commercial loans | $ | 348,846 | 123,008 | 21,067 | 19,324 | 512,245 | $ | 354,125 | 121,824 | 19,939 | 19,831 | 515,719 | |||||||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||
By risk category: | |||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 335,412 | 116,514 | 22,207 | 18,671 | 492,804 | |||||||||||||||||||||||||||||||||||||
Criticized | 14,783 | 4,500 | 289 | 1,025 | 20,597 | ||||||||||||||||||||||||||||||||||||||
Total commercial loans (excluding PCI) | 350,195 | 121,014 | 22,496 | 19,696 | 513,401 | ||||||||||||||||||||||||||||||||||||||
Total commercial PCI loans (carrying value) | 4 | — | — | — | 4 | ||||||||||||||||||||||||||||||||||||||
Total commercial loans | $ | 350,199 | 121,014 | 22,496 | 19,696 | 513,405 |
(1) | Disclosure is not comparative due to our adoption of CECL on January 1, 2020. For more information, see Note 1 (Summary of Significant Accounting Policies). |
(in millions) | Commercial and industrial | Real estate mortgage | Real estate construction | Lease financing | Total | Commercial and industrial | Real estate mortgage | Real estate construction | Lease financing | Total | ||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||
By delinquency status: | ||||||||||||||||||||||||||||||
Current-29 days past due (DPD) and still accruing | $ | 346,688 | 122,101 | 20,854 | 19,101 | 508,744 | $ | 346,680 | 122,136 | 21,580 | 17,045 | 507,441 | ||||||||||||||||||
30-89 DPD and still accruing | 507 | 146 | 177 | 160 | 990 | 439 | 570 | 80 | 227 | 1,316 | ||||||||||||||||||||
90+ DPD and still accruing | 17 | 24 | — | — | 41 | 101 | 44 | — | — | 145 | ||||||||||||||||||||
Nonaccrual loans | 1,634 | 737 | 36 | 63 | 2,470 | 2,896 | 1,217 | 34 | 138 | 4,285 | ||||||||||||||||||||
Total commercial loans (excluding PCI) | 348,846 | 123,008 | 21,067 | 19,324 | 512,245 | |||||||||||||||||||||||||
Total commercial PCI loans (carrying value) | — | — | — | — | — | |||||||||||||||||||||||||
Total commercial loans | $ | 348,846 | 123,008 | 21,067 | 19,324 | 512,245 | $ | 350,116 | 123,967 | 21,694 | 17,410 | 513,187 | ||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||
By delinquency status: | ||||||||||||||||||||||||||||||
Current-29 DPD and still accruing | $ | 348,158 | 120,176 | 22,411 | 19,443 | 510,188 | $ | 352,110 | 120,967 | 19,845 | 19,484 | 512,406 | ||||||||||||||||||
30-89 DPD and still accruing | 508 | 207 | 53 | 163 | 931 | 423 | 253 | 53 | 252 | 981 | ||||||||||||||||||||
90+ DPD and still accruing | 43 | 51 | — | — | 94 | 47 | 31 | — | — | 78 | ||||||||||||||||||||
Nonaccrual loans | 1,486 | 580 | 32 | 90 | 2,188 | 1,545 | 573 | 41 | 95 | 2,254 | ||||||||||||||||||||
Total commercial loans (excluding PCI) | 350,195 | 121,014 | 22,496 | 19,696 | 513,401 | |||||||||||||||||||||||||
Total commercial PCI loans (carrying value) | 4 | — | — | — | 4 | |||||||||||||||||||||||||
Total commercial loans | $ | 350,199 | 121,014 | 22,496 | 19,696 | 513,405 | $ | 354,125 | 121,824 | 19,939 | 19,831 | 515,719 |
Term loans by origination year | Revolving loans | Revolving loans converted to term loans | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | Real estate 1-4 family first mortgage | Real estate 1-4 family junior lien mortgage | Credit card | Automobile | Other revolving credit and installment | Total | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | ||||||||||||||||||||||||||||||||||||||||||||
By delinquency status: | ||||||||||||||||||||||||||||||||||||||||||||
Current-29 DPD | 271,144 | 31,374 | 37,925 | 44,554 | 34,383 | 419,380 | $ | 30,155 | 54,199 | 21,265 | 32,823 | 38,466 | 76,491 | 7,644 | 1,994 | 263,037 | ||||||||||||||||||||||||||||
30-59 DPD | 1,311 | 250 | 258 | 808 | 97 | 2,724 | 25 | 37 | 30 | 26 | 60 | 771 | 23 | 39 | 1,011 | |||||||||||||||||||||||||||||
60-89 DPD | 436 | 115 | 188 | 232 | 70 | 1,041 | 1 | 2 | 6 | 8 | 14 | 370 | 14 | 25 | 440 | |||||||||||||||||||||||||||||
90-119 DPD | 196 | 63 | 152 | 69 | 68 | 548 | — | — | 1 | 4 | 6 | 166 | 8 | 15 | 200 | |||||||||||||||||||||||||||||
120-179 DPD | 177 | 70 | 297 | 1 | 22 | 567 | — | — | — | 2 | 3 | 127 | 9 | 20 | 161 | |||||||||||||||||||||||||||||
180+ DPD | 630 | 181 | — | — | 14 | 825 | — | — | 3 | 6 | 9 | 482 | 9 | 125 | 634 | |||||||||||||||||||||||||||||
Government insured/guaranteed loans (1) | 11,172 | — | — | — | — | 11,172 | ||||||||||||||||||||||||||||||||||||||
Loans held at fair value | 202 | — | — | — | — | 202 | ||||||||||||||||||||||||||||||||||||||
Total consumer loans (excluding PCI) | 285,268 | 32,053 | 38,820 | 45,664 | 34,654 | 436,459 | ||||||||||||||||||||||||||||||||||||||
Total consumer PCI loans (carrying value) (2) | 1,159 | 15 | — | — | — | 1,174 | ||||||||||||||||||||||||||||||||||||||
Total consumer loans | 286,427 | 32,068 | 38,820 | 45,664 | 34,654 | 437,633 | ||||||||||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Government insured/guaranteed loans (2) | 5 | 73 | 206 | 334 | 669 | 11,175 | — | — | 12,462 | |||||||||||||||||||||||||||||||||||
Total real estate 1-4 family first mortgage | 30,186 | 54,311 | 21,511 | 33,203 | 39,227 | 89,582 | 7,707 | 2,218 | 277,945 | |||||||||||||||||||||||||||||||||||
Real estate 1-4 family junior mortgage | ||||||||||||||||||||||||||||||||||||||||||||
By delinquency status: | ||||||||||||||||||||||||||||||||||||||||||||
Current-29 DPD | 263,881 | 33,644 | 38,008 | 43,604 | 35,794 | 414,931 | 12 | 39 | 47 | 42 | 36 | 1,382 | 18,052 | 6,730 | 26,340 | |||||||||||||||||||||||||||||
30-59 DPD | 1,411 | 247 | 292 | 1,040 | 140 | 3,130 | 1 | 1 | — | — | — | 26 | 47 | 79 | 154 | |||||||||||||||||||||||||||||
60-89 DPD | 549 | 126 | 212 | 314 | 87 | 1,288 | — | 2 | 2 | 4 | 2 | 13 | 23 | 49 | 95 | |||||||||||||||||||||||||||||
90-119 DPD | 257 | 74 | 192 | 109 | 80 | 712 | — | — | — | — | — | 8 | 12 | 30 | 50 | |||||||||||||||||||||||||||||
120-179 DPD | 225 | 77 | 320 | 2 | 27 | 651 | — | — | — | — | — | 4 | 10 | 34 | 48 | |||||||||||||||||||||||||||||
180+ DPD | 822 | 213 | 1 | — | 20 | 1,056 | 1 | — | — | 1 | 1 | 14 | 13 | 122 | 152 | |||||||||||||||||||||||||||||
Government insured/guaranteed loans (1) | 12,688 | — | — | — | — | 12,688 | ||||||||||||||||||||||||||||||||||||||
Loans held at fair value | 244 | — | — | — | — | 244 | ||||||||||||||||||||||||||||||||||||||
Total consumer loans (excluding PCI) | 280,077 | 34,381 | 39,025 | 45,069 | 36,148 | 434,700 | ||||||||||||||||||||||||||||||||||||||
Total consumer PCI loans (carrying value) (2) | 4,988 | 17 | — | — | — | 5,005 | ||||||||||||||||||||||||||||||||||||||
Total real estate 1-4 family junior mortgage | 14 | 42 | 49 | 47 | 39 | 1,447 | 18,157 | 7,044 | 26,839 | |||||||||||||||||||||||||||||||||||
Credit cards | ||||||||||||||||||||||||||||||||||||||||||||
By delinquency status: | ||||||||||||||||||||||||||||||||||||||||||||
Current-29 DPD | — | — | — | — | — | — | 35,008 | 253 | 35,261 | |||||||||||||||||||||||||||||||||||
30-59 DPD | — | — | — | — | — | — | 180 | 11 | 191 | |||||||||||||||||||||||||||||||||||
60-89 DPD | — | — | — | — | — | — | 137 | 10 | 147 | |||||||||||||||||||||||||||||||||||
90-119 DPD | — | — | — | — | — | — | 127 | 10 | 137 | |||||||||||||||||||||||||||||||||||
120-179 DPD | — | — | — | — | — | — | 267 | 8 | 275 | |||||||||||||||||||||||||||||||||||
180+ DPD | — | — | — | — | — | — | 6 | 1 | 7 | |||||||||||||||||||||||||||||||||||
Total credit cards | — | — | — | — | — | — | 35,725 | 293 | 36,018 | |||||||||||||||||||||||||||||||||||
Automobile | ||||||||||||||||||||||||||||||||||||||||||||
By delinquency status: | ||||||||||||||||||||||||||||||||||||||||||||
Current-29 DPD | 11,407 | 17,980 | 8,151 | 4,802 | 4,051 | 1,538 | — | — | 47,929 | |||||||||||||||||||||||||||||||||||
30-59 DPD | 30 | 171 | 122 | 92 | 136 | 76 | — | — | 627 | |||||||||||||||||||||||||||||||||||
60-89 DPD | 8 | 46 | 37 | 28 | 43 | 25 | — | — | 187 | |||||||||||||||||||||||||||||||||||
90-119 DPD | 3 | 19 | 12 | 10 | 13 | 8 | — | — | 65 | |||||||||||||||||||||||||||||||||||
120-179 DPD | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
180+ DPD | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total automobile | 11,448 | 18,216 | 8,322 | 4,932 | 4,243 | 1,647 | — | — | 48,808 | |||||||||||||||||||||||||||||||||||
Other revolving credit and installment | ||||||||||||||||||||||||||||||||||||||||||||
By delinquency status: | ||||||||||||||||||||||||||||||||||||||||||||
Current-29 DPD | 1,386 | 3,262 | 1,980 | 1,343 | 1,195 | 5,383 | 17,293 | 179 | 32,021 | |||||||||||||||||||||||||||||||||||
30-59 DPD | 2 | 8 | 11 | 13 | 11 | 60 | 16 | 4 | 125 | |||||||||||||||||||||||||||||||||||
60-89 DPD | 1 | 6 | 7 | 8 | 9 | 60 | 9 | 6 | 106 | |||||||||||||||||||||||||||||||||||
90-119 DPD | — | 4 | 5 | 4 | 5 | 31 | 8 | 2 | 59 | |||||||||||||||||||||||||||||||||||
120-179 DPD | — | 1 | 1 | 2 | 3 | 12 | 13 | 3 | 35 | |||||||||||||||||||||||||||||||||||
180+ DPD | — | — | — | — | — | 1 | 2 | 9 | 12 | |||||||||||||||||||||||||||||||||||
Total other revolving credit and installment | 1,389 | 3,281 | 2,004 | 1,370 | 1,223 | 5,547 | 17,341 | 203 | 32,358 | |||||||||||||||||||||||||||||||||||
Total consumer loans | 285,065 | 34,398 | 39,025 | 45,069 | 36,148 | 439,705 | $ | 43,037 | 75,850 | 31,886 | 39,552 | 44,732 | 98,223 | 78,930 | 9,758 | 421,968 |
Real estate 1-4 family first mortgage | Real estate 1-4 family junior lien mortgage | Credit card | Automobile | Other revolving credit and installment | Total | |||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
By delinquency status: | ||||||||||||||||||||||||
Current-29 DPD | $ | 279,722 | 28,870 | 39,935 | 46,650 | 33,981 | 429,158 | |||||||||||||||||
30-59 DPD | 1,136 | 216 | 311 | 882 | 140 | 2,685 | ||||||||||||||||||
60-89 DPD | 404 | 115 | 221 | 263 | 81 | 1,084 | ||||||||||||||||||
90-119 DPD | 197 | 69 | 202 | 77 | 74 | 619 | ||||||||||||||||||
120-179 DPD | 160 | 71 | 343 | 1 | 18 | 593 | ||||||||||||||||||
180+ DPD | 503 | 155 | 1 | — | 10 | 669 | ||||||||||||||||||
Government insured/guaranteed loans (2) | 11,170 | — | — | — | — | 11,170 | ||||||||||||||||||
Total consumer loans (excluding PCI) | 293,292 | 29,496 | 41,013 | 47,873 | 34,304 | 445,978 | ||||||||||||||||||
Total consumer PCI loans (carrying value) (3) | 555 | 13 | — | — | — | 568 | ||||||||||||||||||
Total consumer loans | $ | 293,847 | 29,509 | 41,013 | 47,873 | 34,304 | 446,546 |
(1) | Disclosure is not comparative due to our adoption of CECL on January 1, 2020. For more information, see Note 1 (Summary of Significant Accounting Policies). |
(2) | Represents loans whose repayments are predominantly insured by the |
26% of the adjusted unpaid principal balance for consumer PCI loans |
Term loans by origination year | Revolving loans | Revolving loans converted to term loans | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | Real estate 1-4 family first mortgage | Real estate 1-4 family junior lien mortgage | Credit card | Automobile | Other revolving credit and installment | Total | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
By FICO: | ||||||||||||||||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | ||||||||||||||||||||||||||||||||||||||||||||
800+ | $ | 15,684 | 35,804 | 14,694 | 24,108 | 28,853 | 46,203 | 3,855 | 531 | 169,732 | ||||||||||||||||||||||||||||||||||
760-799 | 10,373 | 12,379 | 3,925 | 5,095 | 5,444 | 11,147 | 1,424 | 280 | 50,067 | |||||||||||||||||||||||||||||||||||
720-759 | 3,008 | 4,014 | 1,587 | 2,231 | 2,550 | 7,491 | 944 | 272 | 22,097 | |||||||||||||||||||||||||||||||||||
680-719 | 827 | 1,312 | 667 | 884 | 1,025 | 4,888 | 602 | 249 | 10,454 | |||||||||||||||||||||||||||||||||||
640-679 | 163 | 350 | 236 | 298 | 325 | 2,655 | 270 | 176 | 4,473 | |||||||||||||||||||||||||||||||||||
600-639 | 40 | 77 | 47 | 64 | 99 | 1,555 | 144 | 103 | 2,129 | |||||||||||||||||||||||||||||||||||
< 600 | 3,539 | 1,297 | 3,064 | 6,442 | 707 | 15,049 | 9 | 33 | 50 | 62 | 88 | 2,315 | 200 | 215 | 2,972 | |||||||||||||||||||||||||||||
No FICO available | 77 | 269 | 99 | 127 | 174 | 2,153 | 268 | 392 | 3,559 | |||||||||||||||||||||||||||||||||||
Government insured/guaranteed loans (2) | 5 | 73 | 206 | 334 | 669 | 11,175 | — | — | 12,462 | |||||||||||||||||||||||||||||||||||
Total real estate 1-4 family first mortgage | 30,186 | 54,311 | 21,511 | 33,203 | 39,227 | 89,582 | 7,707 | 2,218 | 277,945 | |||||||||||||||||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | ||||||||||||||||||||||||||||||||||||||||||||
800+ | — | — | — | — | — | 350 | 9,233 | 1,984 | 11,567 | |||||||||||||||||||||||||||||||||||
760-799 | — | — | — | — | — | 206 | 3,308 | 1,117 | 4,631 | |||||||||||||||||||||||||||||||||||
720-759 | — | — | — | — | — | 251 | 2,407 | 1,182 | 3,840 | |||||||||||||||||||||||||||||||||||
680-719 | — | — | — | — | — | 226 | 1,485 | 1,016 | 2,727 | |||||||||||||||||||||||||||||||||||
640-679 | — | — | — | — | — | 125 | 620 | 568 | 1,313 | |||||||||||||||||||||||||||||||||||
600-639 | 2,559 | 897 | 2,670 | 4,498 | 677 | 11,301 | — | — | — | — | — | 76 | 289 | 342 | 707 | |||||||||||||||||||||||||||||
< 600 | — | — | — | — | — | 111 | 336 | 538 | 985 | |||||||||||||||||||||||||||||||||||
No FICO available | 14 | 42 | 49 | 47 | 39 | 102 | 479 | 297 | 1,069 | |||||||||||||||||||||||||||||||||||
Total real estate 1-4 family junior lien mortgage | 14 | 42 | 49 | 47 | 39 | 1,447 | 18,157 | 7,044 | 26,839 | |||||||||||||||||||||||||||||||||||
Credit card | ||||||||||||||||||||||||||||||||||||||||||||
800+ | — | — | — | — | — | — | 3,778 | 1 | 3,779 | |||||||||||||||||||||||||||||||||||
760-799 | — | — | — | — | — | — | 5,103 | 7 | 5,110 | |||||||||||||||||||||||||||||||||||
720-759 | — | — | — | — | — | — | 7,650 | 25 | 7,675 | |||||||||||||||||||||||||||||||||||
680-719 | — | — | — | — | — | — | 8,786 | 54 | 8,840 | |||||||||||||||||||||||||||||||||||
640-679 | 5,276 | 1,720 | 6,313 | 6,386 | 1,757 | 21,452 | — | — | — | — | — | — | 5,588 | 60 | 5,648 | |||||||||||||||||||||||||||||
600-639 | — | — | — | — | — | — | 2,281 | 48 | 2,329 | |||||||||||||||||||||||||||||||||||
< 600 | — | — | — | — | — | — | 2,533 | 97 | 2,630 | |||||||||||||||||||||||||||||||||||
No FICO available | — | — | — | — | — | — | 6 | 1 | 7 | |||||||||||||||||||||||||||||||||||
Total credit card | — | — | — | — | — | — | 35,725 | 293 | 36,018 | |||||||||||||||||||||||||||||||||||
Automobile | ||||||||||||||||||||||||||||||||||||||||||||
800+ | 1,639 | 3,112 | 1,547 | 1,002 | 716 | 256 | — | — | 8,272 | |||||||||||||||||||||||||||||||||||
760-799 | 1,697 | 3,185 | 1,414 | 787 | 550 | 191 | — | — | 7,824 | |||||||||||||||||||||||||||||||||||
720-759 | 1,890 | 3,086 | 1,403 | 801 | 613 | 224 | — | — | 8,017 | |||||||||||||||||||||||||||||||||||
680-719 | 12,898 | 3,620 | 9,415 | 7,475 | 3,283 | 36,691 | 2,150 | 3,133 | 1,388 | 762 | 622 | 230 | — | — | 8,285 | |||||||||||||||||||||||||||||
640-679 | 2,032 | 2,502 | 1,005 | 549 | 498 | 194 | — | — | 6,780 | |||||||||||||||||||||||||||||||||||
600-639 | 1,269 | 1,521 | 612 | 361 | 389 | 161 | — | — | 4,313 | |||||||||||||||||||||||||||||||||||
< 600 | 770 | 1,647 | 946 | 655 | 830 | 373 | — | — | 5,221 | |||||||||||||||||||||||||||||||||||
No FICO available | 1 | 30 | 7 | 15 | 25 | 18 | — | — | 96 | |||||||||||||||||||||||||||||||||||
Total automobile | 11,448 | 18,216 | 8,322 | 4,932 | 4,243 | 1,647 | — | — | 48,808 | |||||||||||||||||||||||||||||||||||
Other revolving credit and installment | ||||||||||||||||||||||||||||||||||||||||||||
800+ | 464 | 1,027 | 612 | 452 | 456 | 2,129 | 2,723 | 30 | 7,893 | |||||||||||||||||||||||||||||||||||
760-799 | 365 | 752 | 400 | 260 | 242 | 1,094 | 1,212 | 18 | 4,343 | |||||||||||||||||||||||||||||||||||
720-759 | 27,807 | 4,947 | 8,022 | 7,051 | 4,164 | 51,991 | 257 | 592 | 346 | 217 | 199 | 888 | 1,001 | 27 | 3,527 | |||||||||||||||||||||||||||||
760-799 | 61,007 | 6,001 | 5,323 | 6,240 | 4,999 | 83,570 | ||||||||||||||||||||||||||||||||||||||
800+ | 157,049 | 12,346 | 3,879 | 7,464 | 8,011 | 188,749 | ||||||||||||||||||||||||||||||||||||||
680-719 | 144 | 407 | 265 | 166 | 149 | 650 | 877 | 30 | 2,688 | |||||||||||||||||||||||||||||||||||
640-679 | 52 | 186 | 136 | 89 | 82 | 362 | 445 | 22 | 1,374 | |||||||||||||||||||||||||||||||||||
600-639 | 14 | 56 | 49 | 35 | 36 | 172 | 178 | 15 | 555 | |||||||||||||||||||||||||||||||||||
< 600 | 7 | 48 | 56 | 42 | 42 | 182 | 190 | 25 | 592 | |||||||||||||||||||||||||||||||||||
No FICO available | 3,759 | 1,225 | 134 | 108 | 2,434 | 7,660 | 86 | 213 | 140 | 109 | 17 | 70 | 1,205 | 36 | 1,876 | |||||||||||||||||||||||||||||
FICO not required | — | — | — | — | 8,622 | 8,622 | — | — | — | — | — | — | 9,510 | — | 9,510 | |||||||||||||||||||||||||||||
Government insured/guaranteed loans (1) | 11,374 | — | — | — | — | 11,374 | ||||||||||||||||||||||||||||||||||||||
Total consumer loans (excluding PCI) | 285,268 | 32,053 | 38,820 | 45,664 | 34,654 | 436,459 | ||||||||||||||||||||||||||||||||||||||
Total consumer PCI loans (carrying value) (2) | 1,159 | 15 | — | — | — | 1,174 | ||||||||||||||||||||||||||||||||||||||
Total other revolving credit and installment | 1,389 | 3,281 | 2,004 | 1,370 | 1,223 | 5,547 | 17,341 | 203 | 32,358 | |||||||||||||||||||||||||||||||||||
Total consumer loans | 286,427 | 32,068 | 38,820 | 45,664 | 34,654 | 437,633 | $ | 43,037 | 75,850 | 31,886 | 39,552 | 44,732 | 98,223 | 78,930 | 9,758 | 421,968 | ||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||
By FICO: | ||||||||||||||||||||||||||||||||||||||||||||
< 600 | 4,273 | 1,454 | 3,292 | 7,071 | 697 | 16,787 | ||||||||||||||||||||||||||||||||||||||
600-639 | 2,974 | 994 | 2,777 | 4,431 | 725 | 11,901 | ||||||||||||||||||||||||||||||||||||||
640-679 | 5,810 | 1,898 | 6,464 | 6,225 | 1,822 | 22,219 | ||||||||||||||||||||||||||||||||||||||
680-719 | 13,568 | 3,908 | 9,445 | 7,354 | 3,384 | 37,659 | ||||||||||||||||||||||||||||||||||||||
720-759 | 27,258 | 5,323 | 7,949 | 6,853 | 4,395 | 51,778 | ||||||||||||||||||||||||||||||||||||||
760-799 | 57,193 | 6,315 | 5,227 | 5,947 | 5,322 | 80,004 | ||||||||||||||||||||||||||||||||||||||
800+ | 151,465 | 13,190 | 3,794 | 7,099 | 8,411 | 183,959 | ||||||||||||||||||||||||||||||||||||||
No FICO available | 4,604 | 1,299 | 77 | 89 | 2,507 | 8,576 | ||||||||||||||||||||||||||||||||||||||
FICO not required | — | — | — | — | 8,885 | 8,885 | ||||||||||||||||||||||||||||||||||||||
Government insured/guaranteed loans (1) | 12,932 | — | — | — | — | 12,932 | ||||||||||||||||||||||||||||||||||||||
Total consumer loans (excluding PCI) | 280,077 | 34,381 | 39,025 | 45,069 | 36,148 | 434,700 | ||||||||||||||||||||||||||||||||||||||
Total consumer PCI loans (carrying value) (2) | 4,988 | 17 | — | — | — | 5,005 | ||||||||||||||||||||||||||||||||||||||
Total consumer loans | 285,065 | 34,398 | 39,025 | 45,069 | 36,148 | 439,705 |
Real estate 1-4 family first mortgage | Real estate 1-4 family junior lien mortgage | Credit card | Automobile | Other revolving credit and installment | Total | |||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
By FICO: | ||||||||||||||||||||||||
800+ | $ | 165,460 | 11,851 | 4,037 | 7,900 | 7,585 | 196,833 | |||||||||||||||||
760-799 | 61,559 | 5,483 | 5,648 | 7,624 | 4,915 | 85,229 | ||||||||||||||||||
720-759 | 27,879 | 4,407 | 8,376 | 7,839 | 4,097 | 52,598 | ||||||||||||||||||
680-719 | 12,844 | 3,192 | 9,732 | 7,871 | 3,212 | 36,851 | ||||||||||||||||||
640-679 | 5,068 | 1,499 | 6,626 | 6,324 | 1,730 | 21,247 | ||||||||||||||||||
600-639 | 2,392 | 782 | 2,853 | 4,230 | 670 | 10,927 | ||||||||||||||||||
< 600 | 3,264 | 1,164 | 3,373 | 6,041 | 704 | 14,546 | ||||||||||||||||||
No FICO available | 3,656 | 1,118 | 368 | 44 | 2,316 | 7,502 | ||||||||||||||||||
FICO not required | — | — | — | — | 9,075 | 9,075 | ||||||||||||||||||
Government insured/guaranteed loans (2) | 11,170 | — | — | — | — | 11,170 | ||||||||||||||||||
Total consumer loans (excluding PCI) | 293,292 | 29,496 | 41,013 | 47,873 | 34,304 | 445,978 | ||||||||||||||||||
Total consumer PCI loans (carrying value) (3) | 555 | 13 | — | — | — | 568 | ||||||||||||||||||
Total consumer loans | $ | 293,847 | 29,509 | 41,013 | 47,873 | 34,304 | 446,546 |
(1) | Disclosure is not comparative due to our adoption of CECL on January 1, 2020. For more information, see Note 1 (Summary of Significant Accounting Policies). |
(2) | Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA. |
41% of the adjusted unpaid principal balance for consumer PCI loans |
June 30, 2019 | December 31, 2018 | Term loans by origination year | Revolving loans | Revolving loans converted to term loans | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | Real estate 1-4 family first mortgage by LTV | Real estate 1-4 family junior lien mortgage by CLTV | Total | Real estate 1-4 family first mortgage by LTV | Real estate 1-4 family junior lien mortgage by CLTV | Total | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | |||||||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | ||||||||||||||||||||||||||||||||||||||||||||||
By LTV/CLTV: | ||||||||||||||||||||||||||||||||||||||||||||||
0-60% | $ | 145,884 | 15,004 | 160,888 | 147,666 | 15,753 | 163,419 | $ | 9,292 | 16,664 | 7,380 | 14,769 | 22,978 | 62,108 | 5,289 | 1,632 | 140,112 | |||||||||||||||||||||||||||||
60.01-80% | 110,919 | 10,452 | 121,371 | 104,477 | 11,183 | 115,660 | 19,968 | 31,417 | 11,884 | 16,671 | 14,609 | 14,001 | 1,587 | 382 | 110,519 | |||||||||||||||||||||||||||||||
80.01-100% | 14,763 | 4,387 | 19,150 | 12,372 | 4,874 | 17,246 | 851 | 5,908 | 1,861 | 1,245 | 787 | 1,605 | 544 | 141 | 12,942 | |||||||||||||||||||||||||||||||
100.01-120% (1) | 1,052 | 1,350 | 2,402 | 1,211 | 1,596 | 2,807 | ||||||||||||||||||||||||||||||||||||||||
> 120% (1) | 412 | 480 | 892 | 484 | 578 | 1,062 | ||||||||||||||||||||||||||||||||||||||||
100.01-120% (2) | 2 | 98 | 83 | 75 | 57 | 281 | 165 | 36 | 797 | |||||||||||||||||||||||||||||||||||||
> 120% (2) | — | 55 | 25 | 28 | 31 | 124 | 66 | 13 | 342 | |||||||||||||||||||||||||||||||||||||
No LTV/CLTV available | 864 | 380 | 1,244 | 935 | 397 | 1,332 | 68 | 96 | 72 | 81 | 96 | 288 | 56 | 14 | 771 | |||||||||||||||||||||||||||||||
Government insured/guaranteed loans (2) | 11,374 | — | 11,374 | 12,932 | — | 12,932 | ||||||||||||||||||||||||||||||||||||||||
Government insured/guaranteed loans (3) | 5 | 73 | 206 | 334 | 669 | 11,175 | — | — | 12,462 | |||||||||||||||||||||||||||||||||||||
Total real estate 1-4 family first mortgage | 30,186 | 54,311 | 21,511 | 33,203 | 39,227 | 89,582 | 7,707 | 2,218 | 277,945 | |||||||||||||||||||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | ||||||||||||||||||||||||||||||||||||||||||||||
By LTV/CLTV: | ||||||||||||||||||||||||||||||||||||||||||||||
0-60% | — | — | — | — | — | 603 | 9,127 | 3,921 | 13,651 | |||||||||||||||||||||||||||||||||||||
60.01-80% | — | — | — | — | — | 409 | 6,279 | 1,887 | 8,575 | |||||||||||||||||||||||||||||||||||||
80.01-100% | — | — | — | — | — | 260 | 1,996 | 878 | 3,134 | |||||||||||||||||||||||||||||||||||||
100.01-120% (2) | — | — | — | — | — | 90 | 525 | 240 | 855 | |||||||||||||||||||||||||||||||||||||
> 120% (2) | — | — | — | — | — | 29 | 205 | 74 | 308 | |||||||||||||||||||||||||||||||||||||
No LTV/CLTV available | 14 | 42 | 49 | 47 | 39 | 56 | 25 | 44 | 316 | |||||||||||||||||||||||||||||||||||||
Total real estate 1-4 family junior lien mortgage | 14 | 42 | 49 | 47 | 39 | 1,447 | 18,157 | 7,044 | 26,839 | |||||||||||||||||||||||||||||||||||||
Total | $ | 30,200 | 54,353 | 21,560 | 33,250 | 39,266 | 91,029 | 25,864 | 9,262 | 304,784 | ||||||||||||||||||||||||||||||||||||
December 31, 2019 | Real estate 1-4 family first mortgage by LTV | Real estate 1-4 family junior lien mortgage by CLTV | Total | |||||||||||||||||||||||||||||||||||||||||||
By LTV/CLTV: | ||||||||||||||||||||||||||||||||||||||||||||||
0-60% | $ | 151,478 | 14,603 | 166,081 | ||||||||||||||||||||||||||||||||||||||||||
60.01-80% | 114,795 | 9,663 | 124,458 | |||||||||||||||||||||||||||||||||||||||||||
80.01-100% | 13,867 | 3,574 | 17,441 | |||||||||||||||||||||||||||||||||||||||||||
100.01-120% (2) | 860 | 978 | 1,838 | |||||||||||||||||||||||||||||||||||||||||||
> 120% (2) | 338 | 336 | 674 | |||||||||||||||||||||||||||||||||||||||||||
No LTV/CLTV available | 784 | 342 | 1,126 | |||||||||||||||||||||||||||||||||||||||||||
Government insured/guaranteed loans (3) | 11,170 | — | 11,170 | |||||||||||||||||||||||||||||||||||||||||||
Total consumer loans (excluding PCI) | 285,268 | 32,053 | 317,321 | 280,077 | 34,381 | 314,458 | 293,292 | 29,496 | 322,788 | |||||||||||||||||||||||||||||||||||||
Total consumer PCI loans (carrying value) (3) | 1,159 | 15 | 1,174 | 4,988 | 17 | 5,005 | ||||||||||||||||||||||||||||||||||||||||
Total consumer PCI loans (carrying value) (4) | 555 | 13 | 568 | |||||||||||||||||||||||||||||||||||||||||||
Total consumer loans | $ | 286,427 | 32,068 | 318,495 | 285,065 | 34,398 | 319,463 | $ | 293,847 | 29,509 | 323,356 |
(1) | Disclosure is not comparative due to our adoption of CECL on January 1, 2020. For more information, see Note 1 (Summary of Significant Accounting Policies). |
(2) | Reflects total loan balances with LTV/CLTV amounts in excess of 100%. In the event of default, the loss content would generally be limited to only the amount in excess of 100% LTV/CLTV. |
Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA. |
9% of the adjusted unpaid principal balance for consumer PCI loans have LTV/CLTV amounts greater than 80% at |
Amortized cost | Six months ended June 30, 2020 | ||||||||||||||
(in millions) | Jun 30, 2019 | Dec 31, 2018 | Nonaccrual loans | Nonaccrual loans without related allowance for credit losses (2) | Recognized interest income | ||||||||||
June 30, 2020 | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial | $ | 2,896 | 661 | 30 | |||||||||||
Real estate mortgage | 1,217 | 71 | 17 | ||||||||||||
Real estate construction | 34 | 2 | 5 | ||||||||||||
Lease financing | 138 | 8 | — | ||||||||||||
Total commercial | 4,285 | 742 | 52 | ||||||||||||
Consumer: | |||||||||||||||
Real estate 1-4 family first mortgage | 2,393 | 1,330 | 81 | ||||||||||||
Real estate 1-4 family junior lien mortgage | 753 | 424 | 28 | ||||||||||||
Automobile | 129 | — | 7 | ||||||||||||
Other revolving credit and installment | 45 | — | 1 | ||||||||||||
Total consumer | 3,320 | 1,754 | 117 | ||||||||||||
Total nonaccrual loans | $ | 7,605 | 2,496 | 169 | |||||||||||
December 31, 2019 | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial | $ | 1,634 | 1,486 | $ | 1,545 | ||||||||||
Real estate mortgage | 737 | 580 | 573 | ||||||||||||
Real estate construction | 36 | 32 | 41 | ||||||||||||
Lease financing | 63 | 90 | 95 | ||||||||||||
Total commercial | 2,470 | 2,188 | 2,254 | ||||||||||||
Consumer: | |||||||||||||||
Real estate 1-4 family first mortgage | 2,425 | 3,183 | 2,150 | ||||||||||||
Real estate 1-4 family junior lien mortgage | 868 | 945 | 796 | ||||||||||||
Automobile | 115 | 130 | 106 | ||||||||||||
Other revolving credit and installment | 44 | 50 | 40 | ||||||||||||
Total consumer | 3,452 | 4,308 | 3,092 | ||||||||||||
Total nonaccrual loans (excluding PCI) | $ | 5,922 | 6,496 | $ | 5,346 |
(1) | Disclosure is not comparative due to our adoption of CECL on January 1, 2020. For more information, see Note 1 (Summary of Significant Accounting Policies). |
(2) | Nonaccrual loans may not have an allowance for credit losses if the loss expectations are zero given solid collateral value. |
(in millions) | Jun 30, 2019 | Dec 31, 2018 | Jun 30, 2020 | Dec 31, 2019 | ||||||||
Total (excluding PCI): | $ | 7,258 | 8,704 | |||||||||
Total: | $ | 9,739 | 7,285 | |||||||||
Less: FHA insured/VA guaranteed (1) | 6,478 | 7,725 | 8,922 | 6,352 | ||||||||
Total, not government insured/guaranteed | $ | 780 | 979 | $ | 817 | 933 | ||||||
By segment and class, not government insured/guaranteed: | ||||||||||||
Commercial: | ||||||||||||
Commercial and industrial | $ | 17 | 43 | $ | 101 | 47 | ||||||
Real estate mortgage | 24 | 51 | 44 | 31 | ||||||||
Real estate construction | — | — | ||||||||||
Total commercial | 41 | 94 | 145 | 78 | ||||||||
Consumer: | ||||||||||||
Real estate 1-4 family first mortgage | 108 | 124 | 93 | 112 | ||||||||
Real estate 1-4 family junior lien mortgage | 27 | 32 | 19 | 32 | ||||||||
Credit card | 449 | 513 | 418 | 546 | ||||||||
Automobile | 63 | 114 | 54 | 78 | ||||||||
Other revolving credit and installment | 92 | 102 | 88 | 87 | ||||||||
Total consumer | 739 | 885 | 672 | 855 | ||||||||
Total, not government insured/guaranteed | $ | 780 | 979 | $ | 817 | 933 |
(1) | Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA. |
Recorded investment | Recorded investment | |||||||||||||||||||||||
(in millions) | Unpaid principal balance (1) | Impaired loans | Impaired loans with related allowance for credit losses | Related allowance for credit losses | Unpaid principal balance | Impaired loans | Impaired loans with related allowance for credit losses | Related allowance for credit losses | ||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial and industrial | $ | 2,963 | 2,169 | 1,991 | 303 | $ | 2,792 | 2,003 | 1,903 | 311 | ||||||||||||||
Real estate mortgage | 1,297 | 1,142 | 1,078 | 134 | 1,137 | 974 | 803 | 110 | ||||||||||||||||
Real estate construction | 82 | 54 | 53 | 10 | 81 | 51 | 41 | 11 | ||||||||||||||||
Lease financing | 91 | 82 | 82 | 20 | 131 | 105 | 105 | 35 | ||||||||||||||||
Total commercial | 4,433 | 3,447 | 3,204 | 467 | 4,141 | 3,133 | 2,852 | 467 | ||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 8,803 | 8,307 | 3,782 | 451 | 8,107 | 7,674 | 4,433 | 437 | ||||||||||||||||
Real estate 1-4 family junior lien mortgage | 1,781 | 1,603 | 1,040 | 174 | 1,586 | 1,451 | 925 | 144 | ||||||||||||||||
Credit card | 487 | 486 | 486 | 194 | 520 | 520 | 520 | 209 | ||||||||||||||||
Automobile | 144 | 85 | 45 | 9 | 138 | 81 | 42 | 8 | ||||||||||||||||
Other revolving credit and installment | 166 | 160 | 142 | 41 | 178 | 171 | 155 | 49 | ||||||||||||||||
Total consumer | 11,381 | 10,641 | 5,495 | 869 | 10,529 | 9,897 | 6,075 | 847 | ||||||||||||||||
Total impaired loans (excluding PCI) | $ | 15,814 | 14,088 | 8,699 | 1,336 | $ | 14,670 | 13,030 | 8,927 | 1,314 | ||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial and industrial | $ | 3,057 | 2,030 | 1,730 | 319 | |||||||||||||||||||
Real estate mortgage | 1,228 | 1,032 | 1,009 | 154 | ||||||||||||||||||||
Real estate construction | 74 | 47 | 46 | 9 | ||||||||||||||||||||
Lease financing | 146 | 112 | 112 | 32 | ||||||||||||||||||||
Total commercial | 4,505 | 3,221 | 2,897 | 514 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 12,309 | 10,738 | 4,420 | 525 | ||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | 1,886 | 1,694 | 1,133 | 183 | ||||||||||||||||||||
Credit card | 449 | 449 | 449 | 172 | ||||||||||||||||||||
Automobile | 153 | 89 | 43 | 8 | ||||||||||||||||||||
Other revolving credit and installment | 162 | 156 | 136 | 41 | ||||||||||||||||||||
Total consumer (3) | 14,959 | 13,126 | 6,181 | 929 | ||||||||||||||||||||
Total impaired loans (excluding PCI) | $ | 19,464 | 16,347 | 9,078 | 1,443 |
(1) |
Included the recorded investment of |
Year ended December 31, 2019 | ||||||
(in millions) | Average recorded investment | Recognized interest income | ||||
Commercial: | ||||||
Commercial and industrial | $ | 2,150 | 129 | |||
Real estate mortgage | 1,067 | 59 | ||||
Real estate construction | 52 | 6 | ||||
Lease financing | 93 | 1 | ||||
Total commercial | 3,362 | 195 | ||||
Consumer: | ||||||
Real estate 1-4 family first mortgage | 9,031 | 506 | ||||
Real estate 1-4 family junior lien mortgage | 1,586 | 99 | ||||
Credit card | 488 | 64 | ||||
Automobile | 84 | 12 | ||||
Other revolving credit and installment | 162 | 13 | ||||
Total consumer | 11,351 | 694 | ||||
Total impaired loans (excluding PCI) | $ | 14,713 | 889 |
Interest income: | |||
Cash basis of accounting | $ | 241 | |
Other (1) | 648 | ||
Total interest income | $ | 889 |
Quarter ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||
(in millions) | Average recorded investment | Recognized interest income | Average recorded investment | Recognized interest income | Average recorded investment | Recognized interest income | Average recorded investment | Recognized interest income | |||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 2,285 | 50 | 2,212 | 43 | 2,249 | 73 | 2,318 | 79 | ||||||||||||||||
Real estate mortgage | 1,116 | 16 | 1,299 | 22 | 1,079 | 31 | 1,266 | 50 | |||||||||||||||||
Real estate construction | 55 | — | 62 | 1 | 53 | 2 | 60 | 2 | |||||||||||||||||
Lease financing | 88 | — | 138 | 1 | 98 | — | 132 | 1 | |||||||||||||||||
Total commercial | 3,544 | 66 | 3,711 | 67 | 3,479 | 106 | 3,776 | 132 | |||||||||||||||||
Consumer: | |||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 9,398 | 128 | 11,772 | 167 | 9,950 | 281 | 11,921 | 339 | |||||||||||||||||
Real estate 1-4 family junior lien mortgage | 1,630 | 26 | 1,832 | 29 | 1,654 | 52 | 1,861 | 58 | |||||||||||||||||
Credit card | 480 | 16 | 398 | 12 | 470 | 31 | 384 | 22 | |||||||||||||||||
Automobile | 86 | 3 | 82 | 3 | 87 | 7 | 83 | 6 | |||||||||||||||||
Other revolving credit and installment | 158 | 3 | 140 | 3 | 157 | 7 | 136 | 5 | |||||||||||||||||
Total consumer | 11,752 | 176 | 14,224 | 214 | 12,318 | 378 | 14,385 | 430 | |||||||||||||||||
Total impaired loans (excluding PCI) | $ | 15,296 | 242 | 17,935 | 281 | 15,797 | 484 | 18,161 | 562 | ||||||||||||||||
Interest income: | |||||||||||||||||||||||||
Cash basis of accounting | $ | 76 | 84 | 135 | 165 | ||||||||||||||||||||
Other (1) | 166 | 197 | 349 | 397 | |||||||||||||||||||||
Total interest income | $ | 242 | 281 | 484 | 562 |
(1) |
Primary modification type (1) | Financial effects of modifications | Primary modification type (1) | Financial effects of modifications | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Principal (2) | Interest rate reduction | Other concessions (3) | Total | Charge- offs (4) | Weighted average interest rate reduction | Recorded investment related to interest rate reduction (5) | Principal (2) | Interest rate reduction | Other concessions (3) | Total | Charge- offs (4) | Weighted average interest rate reduction | Recorded investment related to interest rate reduction (5) | ||||||||||||||||||||||||||||||
Quarter ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | — | 17 | 948 | 965 | 38 | 0.79 | % | $ | 17 | ||||||||||||||||||||||||||||||||||
Real estate mortgage | — | 5 | 98 | 103 | — | 1.75 | 5 | |||||||||||||||||||||||||||||||||||||
Real estate construction | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Lease financing | — | — | 1 | 1 | — | — | — | |||||||||||||||||||||||||||||||||||||
Total commercial | — | 22 | 1,047 | 1,069 | 38 | 1.00 | 22 | |||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 20 | 3 | 279 | 302 | 1 | 1.84 | 14 | |||||||||||||||||||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | 3 | 2 | 22 | 27 | — | 2.39 | 3 | |||||||||||||||||||||||||||||||||||||
Credit card | — | 62 | — | 62 | — | 12.79 | 62 | |||||||||||||||||||||||||||||||||||||
Automobile | 1 | 2 | 44 | 47 | 28 | 4.42 | 2 | |||||||||||||||||||||||||||||||||||||
Other revolving credit and installment | — | 3 | 6 | 9 | — | 5.90 | 3 | |||||||||||||||||||||||||||||||||||||
Trial modifications (6) | — | — | (13 | ) | (13 | ) | — | — | — | |||||||||||||||||||||||||||||||||||
Total consumer | 24 | 72 | 338 | 434 | 29 | 10.09 | 84 | |||||||||||||||||||||||||||||||||||||
Total | $ | 24 | 94 | 1,385 | 1,503 | 67 | 8.17 | % | $ | 106 | ||||||||||||||||||||||||||||||||||
Quarter ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | — | 34 | 180 | 214 | 26 | 0.34 | % | $ | 34 | $ | — | 34 | 180 | 214 | 26 | 0.34 | % | $ | 34 | ||||||||||||||||||||||||
Real estate mortgage | — | 24 | 95 | 119 | — | 0.49 | 24 | — | 24 | 95 | 119 | — | 0.49 | 24 | ||||||||||||||||||||||||||||||
Real estate construction | 13 | — | 13 | 26 | — | — | — | 13 | — | 13 | 26 | — | — | — | ||||||||||||||||||||||||||||||
Lease financing | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Total commercial | 13 | 58 | 288 | 359 | 26 | 0.40 | 58 | 13 | 58 | 288 | 359 | 26 | 0.40 | 58 | ||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 28 | 2 | 181 | 211 | — | 1.83 | 19 | 28 | 2 | 181 | 211 | — | 1.83 | 19 | ||||||||||||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | 1 | 11 | 21 | 33 | 1 | 2.39 | 11 | 1 | 11 | 21 | 33 | 1 | 2.39 | 11 | ||||||||||||||||||||||||||||||
Credit card | — | 89 | — | 89 | — | 13.35 | 89 | — | 89 | — | 89 | — | 13.35 | 89 | ||||||||||||||||||||||||||||||
Automobile | 2 | 3 | 14 | 19 | 8 | 4.13 | 3 | 2 | 3 | 14 | 19 | 8 | 4.13 | 3 | ||||||||||||||||||||||||||||||
Other revolving credit and installment | — | 12 | 1 | 13 | — | 7.67 | 12 | — | 12 | 1 | 13 | — | 7.67 | 12 | ||||||||||||||||||||||||||||||
Trial modifications (6) | — | — | 5 | 5 | — | — | — | — | — | 5 | 5 | — | — | — | ||||||||||||||||||||||||||||||
Total consumer | 31 | 117 | 222 | 370 | 9 | 10.06 | 134 | 31 | 117 | 222 | 370 | 9 | 10.06 | 134 | ||||||||||||||||||||||||||||||
Total | $ | 44 | 175 | 510 | 729 | 35 | 7.17 | % | $ | 192 | $ | 44 | 175 | 510 | 729 | 35 | 7.17 | % | $ | 192 | ||||||||||||||||||||||||
Quarter ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 3 | 5 | 449 | 457 | 14 | 0.58 | % | $ | 5 | ||||||||||||||||||||||||||||||||||
Real estate mortgage | — | 11 | 121 | 132 | — | 0.67 | 11 | |||||||||||||||||||||||||||||||||||||
Real estate construction | — | — | 1 | 1 | — | — | — | |||||||||||||||||||||||||||||||||||||
Lease financing | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Total commercial | 3 | 16 | 571 | 590 | 14 | 0.64 | 16 | |||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 64 | 8 | 286 | 358 | 2 | 2.26 | 31 | |||||||||||||||||||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | 2 | 12 | 30 | 44 | 2 | 1.66 | 13 | |||||||||||||||||||||||||||||||||||||
Credit card | — | 83 | — | 83 | — | 13.19 | 83 | |||||||||||||||||||||||||||||||||||||
Automobile | 2 | 4 | 11 | 17 | 5 | 6.49 | 4 | |||||||||||||||||||||||||||||||||||||
Other revolving credit and installment | — | 10 | 2 | 12 | — | 7.95 | 10 | |||||||||||||||||||||||||||||||||||||
Trial modifications (6) | — | — | 17 | 17 | — | — | — | |||||||||||||||||||||||||||||||||||||
Total consumer | 68 | 117 | 346 | 531 | 9 | 9.17 | 141 | |||||||||||||||||||||||||||||||||||||
Total | $ | 71 | 133 | 917 | 1,121 | 23 | 8.30 | % | $ | 157 |
Primary modification type (1) | Financial effects of modifications | Primary modification type (1) | Financial effects of modifications | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Principal (2) | Interest rate reduction | Other concessions (3) | Total | Charge- offs (4) | Weighted average interest rate reduction | Recorded investment related to interest rate reduction (5) | |||||||||||||||||||||||||||||||||||||
($ in millions) | Principal (2) | Interest rate reduction | Other concessions (3) | Total | Charge- offs (4) | Weighted average interest rate reduction | Recorded investment related to interest rate reduction (5) | |||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 18 | 32 | 1,262 | 1,312 | 82 | 0.73 | % | $ | 32 | ||||||||||||||||||||||||||||||||||
Real estate mortgage | — | 18 | 250 | 268 | — | 1.17 | 18 | |||||||||||||||||||||||||||||||||||||
Real estate construction | — | — | 6 | 6 | — | 2.49 | — | |||||||||||||||||||||||||||||||||||||
Lease financing | — | — | 1 | 1 | — | — | — | |||||||||||||||||||||||||||||||||||||
Total commercial | 18 | 50 | 1,519 | 1,587 | 82 | 0.90 | 50 | |||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 41 | 6 | 445 | 492 | 1 | 1.73 | 31 | |||||||||||||||||||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | 4 | 8 | 36 | 48 | — | 2.38 | 9 | |||||||||||||||||||||||||||||||||||||
Credit card | — | 157 | — | 157 | — | 12.51 | 157 | |||||||||||||||||||||||||||||||||||||
Automobile | 3 | 4 | 54 | 61 | 34 | 4.56 | 4 | |||||||||||||||||||||||||||||||||||||
Other revolving credit and installment | — | 15 | 8 | 23 | — | 7.71 | 15 | |||||||||||||||||||||||||||||||||||||
Trial modifications (6) | — | — | (11 | ) | (11 | ) | — | — | — | |||||||||||||||||||||||||||||||||||
Total consumer | 48 | 190 | 532 | 770 | 35 | 10.04 | 216 | |||||||||||||||||||||||||||||||||||||
Total | $ | 66 | 240 | 2,051 | 2,357 | 117 | 8.30 | % | $ | 266 | ||||||||||||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | — | 45 | 734 | 779 | 39 | 0.42 | % | $ | 45 | $ | — | 45 | 734 | 779 | 39 | 0.42 | % | $ | 45 | ||||||||||||||||||||||||
Real estate mortgage | — | 26 | 168 | 194 | — | 0.54 | 26 | — | 26 | 168 | 194 | — | 0.54 | 26 | ||||||||||||||||||||||||||||||
Real estate construction | 13 | — | 16 | 29 | — | — | — | 13 | — | 16 | 29 | — | — | — | ||||||||||||||||||||||||||||||
Lease financing | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Total commercial | 13 | 71 | 918 | 1,002 | 39 | 0.47 | 71 | 13 | 71 | 918 | 1,002 | 39 | 0.47 | 71 | ||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 63 | 5 | 475 | 543 | 1 | 1.89 | 38 | 63 | 5 | 475 | 543 | 1 | 1.89 | 38 | ||||||||||||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | 3 | 22 | 46 | 71 | 2 | 2.34 | 23 | 3 | 22 | 46 | 71 | 2 | 2.34 | 23 | ||||||||||||||||||||||||||||||
Credit card | — | 186 | — | 186 | — | 13.27 | 186 | — | 186 | — | 186 | — | 13.27 | 186 | ||||||||||||||||||||||||||||||
Automobile | 4 | 4 | 26 | 34 | 14 | 4.55 | 4 | 4 | 4 | 26 | 34 | 14 | 4.55 | 4 | ||||||||||||||||||||||||||||||
Other revolving credit and installment | — | 23 | 4 | 27 | — | 7.63 | 23 | — | 23 | 4 | 27 | — | 7.63 | 23 | ||||||||||||||||||||||||||||||
Trial modifications (6) | — | — | 5 | 5 | — | — | — | — | — | 5 | 5 | — | — | — | ||||||||||||||||||||||||||||||
Total consumer | 70 | 240 | 556 | 866 | 17 | 10.17 | 274 | 70 | 240 | 556 | 866 | 17 | 10.17 | 274 | ||||||||||||||||||||||||||||||
Total | $ | 83 | 311 | 1,474 | 1,868 | 56 | 8.18 | % | $ | 345 | $ | 83 | 311 | 1,474 | 1,868 | 56 | 8.18 | % | $ | 345 | ||||||||||||||||||||||||
Six months ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 3 | 14 | 937 | 954 | 20 | 0.88 | % | $ | 14 | ||||||||||||||||||||||||||||||||||
Real estate mortgage | — | 17 | 219 | 236 | — | 0.89 | 17 | |||||||||||||||||||||||||||||||||||||
Real estate construction | — | — | 4 | 4 | — | — | — | |||||||||||||||||||||||||||||||||||||
Lease financing | — | — | 39 | 39 | — | — | — | |||||||||||||||||||||||||||||||||||||
Total commercial | 3 | 31 | 1,199 | 1,233 | 20 | 0.88 | 31 | |||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 110 | 18 | 592 | 720 | 3 | 2.33 | 66 | |||||||||||||||||||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | 3 | 20 | 58 | 81 | 3 | 1.89 | 22 | |||||||||||||||||||||||||||||||||||||
Credit card | — | 169 | — | 169 | — | 12.24 | 169 | |||||||||||||||||||||||||||||||||||||
Automobile | 3 | 8 | 25 | 36 | 14 | 6.48 | 8 | |||||||||||||||||||||||||||||||||||||
Other revolving credit and installment | — | 25 | 4 | 29 | — | 7.95 | 25 | |||||||||||||||||||||||||||||||||||||
Trial modifications (6) | — | — | 32 | 32 | — | — | — | |||||||||||||||||||||||||||||||||||||
Total consumer | 116 | 240 | 711 | 1,067 | 20 | 8.67 | 290 | |||||||||||||||||||||||||||||||||||||
Total | $ | 119 | 271 | 1,910 | 2,300 | 40 | 7.92 | % | $ | 321 |
(1) | Amounts represent the recorded investment in loans after recognizing the effects of the TDR, if any. TDRs may have multiple types of concessions, but are presented only once in the first modification type based on the order presented in the table above. The reported amounts include loans remodified of |
(2) | Principal modifications include principal forgiveness at the time of the modification, contingent principal forgiveness granted over the life of the loan based on borrower performance, and principal that has been legally separated and deferred to the end of the loan, with a zero percent contractual interest rate. |
(3) | Other concessions include loans discharged in bankruptcy, loan renewals, term extensions and other interest and noninterest adjustments, but exclude modifications that also forgive principal and/or reduce the contractual interest rate. |
(4) | Charge-offs include write-downs of the investment in the loan in the period it is contractually modified. The amount of charge-off will differ from the modification terms if the loan has been charged down prior to the modification based on our policies. In addition, there may be cases where we have a charge-off/down with no legal principal modification. Modifications resulted in deferring or legally forgiving principal (actual |
(5) | Reflects the effect of reduced interest rates on loans with an interest rate concession as one of its concession types, which includes loans reported as a principal primary modification type that also have an interest rate concession. |
(6) | Trial modifications are granted a delay in payments due under the original terms during the trial payment period. However, these loans continue to advance through delinquency status and accrue interest according to their original terms. Any subsequent permanent modification generally includes interest rate related concessions; however, the exact concession type and resulting financial effect are usually not known until the loan is permanently modified. Trial modifications for the period are presented net of previously reported trial modifications that became permanent in the current period. |
Recorded investment of defaults | Recorded investment of defaults | |||||||||||||||||||||||
Quarter ended June 30, | Six months ended June 30, | Quarter ended June 30, | Six months ended June 30, | |||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial and industrial | $ | 25 | 7 | 48 | 93 | $ | 37 | 25 | 222 | 48 | ||||||||||||||
Real estate mortgage | 5 | 14 | 33 | 40 | 81 | 5 | 102 | 33 | ||||||||||||||||
Real estate construction | — | 16 | 3 | 16 | — | — | — | 3 | ||||||||||||||||
Total commercial | 30 | 37 | 84 | 149 | 118 | 30 | 324 | 84 | ||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 13 | 15 | 24 | 33 | 8 | 13 | 18 | 24 | ||||||||||||||||
Real estate 1-4 family junior lien mortgage | 4 | 2 | 9 | 7 | 6 | 4 | 8 | 9 | ||||||||||||||||
Credit card | 21 | 24 | 42 | 37 | 19 | 21 | 45 | 42 | ||||||||||||||||
Automobile | 4 | 4 | 7 | 7 | 1 | 4 | 3 | 7 | ||||||||||||||||
Other revolving credit and installment | 1 | 1 | 3 | 2 | 2 | 1 | 3 | 3 | ||||||||||||||||
Total consumer | 43 | 46 | 85 | 86 | 36 | 43 | 77 | 85 | ||||||||||||||||
Total | $ | 73 | 83 | 169 | 235 | $ | 154 | 73 | 401 | 169 |
(in millions) | Jun 30, 2019 | Dec 31, 2018 | ||||
Total commercial | $ | — | 4 | |||
Consumer: | ||||||
Real estate 1-4 family first mortgage | 1,159 | 4,988 | ||||
Real estate 1-4 family junior lien mortgage | 15 | 17 | ||||
Total consumer | 1,174 | 5,005 | ||||
Total PCI loans (carrying value) | $ | 1,174 | 5,009 | |||
Total PCI loans (unpaid principal balance) | $ | 1,952 | 7,348 |
Note 7: Leasing Activity |
Quarter ended June 30, | Six months ended June 30, | |||||||||||||||||
(in millions) | Quarter ended June 30, 2019 | Six months ended June 30, 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Interest income on lease financing | $ | 224 | 447 | $ | 196 | 224 | $ | 407 | 447 | |||||||||
Other lease revenues: | ||||||||||||||||||
Variable revenues on lease financing | 26 | 50 | 26 | 26 | 53 | 50 | ||||||||||||
Fixed revenues on operating leases | 357 | 730 | 294 | 357 | 608 | 730 | ||||||||||||
Variable revenues on operating leases | 14 | 32 | 11 | 14 | 24 | 32 | ||||||||||||
Other lease-related revenues (1) | 27 | 55 | 3 | 27 | 1 | 55 | ||||||||||||
Lease income | 424 | 867 | 334 | 424 | 686 | 867 | ||||||||||||
Total leasing revenue | $ | 648 | 1,314 | $ | 530 | 648 | $ | 1,093 | 1,314 |
(1) | Predominantly includes net gains (losses) on disposition of assets leased under operating leases or lease financings. |
(in millions) | Jun 30, 2019 | ||
Lease receivables | $ | 17,735 | |
Residual asset values | 4,244 | ||
Unearned income | (2,655 | ) | |
Lease financing | $ | 19,324 |
June 30, 2019 | |||||
(in millions) | Direct financing and sales- type leases | Operating leases | |||
Remainder of 2019 | $ | 3,036 | 535 | ||
2020 | 5,167 | 880 | |||
2021 | 4,004 | 591 | |||
2022 | 2,127 | 407 | |||
2023 | 1,219 | 269 | |||
Thereafter | 2,182 | 605 | |||
Total lease receivables | $ | 17,735 | 3,287 |
(in millions) | Jun 30, 2019 | Jun 30, 2020 | Dec 31, 2019 | |||||
ROU assets | $ | 4,776 | $ | 4,548 | 4,724 | |||
Lease liabilities | 5,302 | 5,125 | 5,297 |
Quarter ended June 30, | Six months ended June 30, | |||||||||||||||||
(in millions) | Quarter ended June 30, 2019 | Six months ended June 30, 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Fixed lease expense - operating leases | $ | 291 | 588 | |||||||||||||||
Fixed lease expense – operating leases | $ | 292 | 291 | $ | 583 | 588 | ||||||||||||
Variable lease expense | 80 | 153 | 80 | 80 | 146 | 153 | ||||||||||||
Other (1) | (9 | ) | (17 | ) | (42 | ) | (9 | ) | (56 | ) | (17 | ) | ||||||
Total lease costs | $ | 362 | 724 | $ | 330 | 362 | $ | 673 | 724 |
(1) | Predominantly includes |
(in millions) | December 31, 2018 | ||
2019 | $ | 1,174 | |
2020 | 1,056 | ||
2021 | 880 | ||
2022 | 713 | ||
2023 | 577 | ||
Thereafter | 1,654 | ||
Total | $ | 6,054 |
(in millions, except for weighted averages) | June 30, 2019 | ||
Remainder of 2019 | $ | 566 | |
2020 | 1,127 | ||
2021 | 947 | ||
2022 | 792 | ||
2023 | 654 | ||
Thereafter | 2,054 | ||
Total lease payments | 6,140 | ||
Less: imputed interest | 838 | ||
Total operating lease liabilities | $ | 5,302 | |
Weighted average remaining lease term (in years) | 7.3 | ||
Weighted average discount rate | 3.2 | % |
Note 8: Equity Securities |
Jun 30, | Dec 31, | |||||||||||
(in millions) | 2019 | 2018 | Jun 30, 2020 | Dec 31, 2019 | ||||||||
Held for trading at fair value: | ||||||||||||
Marketable equity securities | $ | 23,327 | 19,449 | $ | 12,591 | 27,440 | ||||||
Not held for trading: | ||||||||||||
Fair value: | ||||||||||||
Marketable equity securities (1) | 5,379 | 4,513 | 6,426 | 6,481 | ||||||||
Nonmarketable equity securities | 7,244 | 5,594 | 8,322 | 8,015 | ||||||||
Total equity securities at fair value | 12,623 | 10,107 | 14,748 | 14,496 | ||||||||
Equity method: | ||||||||||||
Low-income housing tax credit investments | 11,162 | 10,999 | 11,294 | 11,343 | ||||||||
Private equity | 3,352 | 3,832 | 3,351 | 3,459 | ||||||||
Tax-advantaged renewable energy | 3,051 | 3,073 | 3,940 | 3,811 | ||||||||
New market tax credit and other | 294 | 311 | 377 | 387 | ||||||||
Total equity method | 17,859 | 18,215 | 18,962 | 19,000 | ||||||||
Other: | ||||||||||||
Federal Reserve Bank stock and other at cost (2) | 5,622 | 5,643 | 3,794 | 4,790 | ||||||||
Private equity (3) | 2,106 | 1,734 | 2,399 | 2,515 | ||||||||
Total equity securities not held for trading | 38,210 | 35,699 | 39,903 | 40,801 | ||||||||
Total equity securities | $ | 61,537 | 55,148 | $ | 52,494 | 68,241 |
(1) | Includes |
(2) | Includes |
(3) | Represents nonmarketable equity securities accounted for under the measurement alternative. |
Quarter ended June 30, | Six months ended June 30, | Quarter ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||
Net gains (losses) from equity securities carried at fair value: | |||||||||||||||||||||||||
Marketable equity securities | $ | 264 | 28 | 641 | 36 | $ | 394 | 264 | $ | (409 | ) | 641 | |||||||||||||
Nonmarketable equity securities | 732 | 594 | 1,668 | 703 | 1,424 | 732 | 320 | 1,668 | |||||||||||||||||
Total equity securities carried at fair value | 996 | 622 | 2,309 | 739 | 1,818 | 996 | (89 | ) | 2,309 | ||||||||||||||||
Net gains (losses) from nonmarketable equity securities not carried at fair value: | |||||||||||||||||||||||||
Impairment write-downs | (31 | ) | (237 | ) | (67 | ) | (257 | ) | (106 | ) | (31 | ) | (1,041 | ) | (67 | ) | |||||||||
Net unrealized gains related to measurement alternative observable transactions | 146 | 35 | 331 | 263 | 24 | 146 | 246 | 331 | |||||||||||||||||
Net realized gains on sale | 169 | 399 | 406 | 897 | 199 | 169 | 199 | 406 | |||||||||||||||||
All other | — | 16 | — | 34 | |||||||||||||||||||||
Total nonmarketable equity securities not carried at fair value | 284 | 213 | 670 | 937 | 117 | 284 | (596 | ) | 670 | ||||||||||||||||
Net losses from economic hedge derivatives (1) | (658 | ) | (540 | ) | (1,543 | ) | (598 | ) | |||||||||||||||||
Total net gains from equity securities | $ | 622 | 295 | 1,436 | 1,078 | ||||||||||||||||||||
Net gains (losses) from economic hedge derivatives (1) | (1,402 | ) | (658 | ) | (183 | ) | (1,543 | ) | |||||||||||||||||
Total net gains (losses) from equity securities not held for trading | $ | 533 | 622 | $ | (868 | ) | 1,436 |
(1) | Includes net gains (losses) on derivatives not designated as hedging instruments. |
Quarter ended June 30, | Six months ended June 30, | Quarter ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||
Net gains (losses) recognized in earnings during the period: | |||||||||||||||||||||||||
Gross unrealized gains due to observable price changes | $ | 157 | 43 | 342 | 271 | $ | 24 | 157 | $ | 246 | 342 | ||||||||||||||
Gross unrealized losses due to observable price changes | (11 | ) | (8 | ) | (11 | ) | (8 | ) | — | (11 | ) | — | (11 | ) | |||||||||||
Impairment write-downs | (11 | ) | (5 | ) | (33 | ) | (12 | ) | (58 | ) | (11 | ) | (412 | ) | (33 | ) | |||||||||
Realized net gains from sale | 102 | 16 | 125 | 91 | 11 | 102 | 13 | 125 | |||||||||||||||||
Total net gains recognized during the period | $ | 237 | 46 | 423 | 342 | ||||||||||||||||||||
Total net gains (losses) recognized during the period | $ | (23 | ) | 237 | $ | (153 | ) | 423 |
Jun 30, | Dec 31, | |||||||||||
(in millions) | 2019 | 2018 | Jun 30, 2020 | Dec 31, 2019 | ||||||||
Cumulative gains (losses): | ||||||||||||
Gross unrealized gains due to observable price changes | $ | 733 | 415 | $ | 1,109 | 973 | ||||||
Gross unrealized losses due to observable price changes | (36 | ) | (25 | ) | (43 | ) | (42 | ) | ||||
Impairment write-downs | (52 | ) | (33 | ) | (522 | ) | (134 | ) |
Note 9: Other Assets |
(in millions) | Jun 30, 2019 | Dec 31, 2018 | Jun 30, 2020 | Dec 31, 2019 | ||||||||
Corporate/bank-owned life insurance | $ | 19,912 | 19,751 | $ | 20,227 | 20,070 | ||||||
Accounts receivable (1) | 26,213 | 34,281 | 31,794 | 29,137 | ||||||||
Interest receivable | 6,177 | 6,084 | ||||||||||
Interest receivable: | ||||||||||||
AFS and HTM debt securities | 1,506 | 1,729 | ||||||||||
Loans | 3,046 | 3,099 | ||||||||||
Trading and other | 492 | 758 | ||||||||||
Customer relationship and other amortized intangibles | 479 | 545 | 375 | 423 | ||||||||
Foreclosed assets: | ||||||||||||
Residential real estate: | ||||||||||||
Government insured/guaranteed | 68 | 88 | ||||||||||
Government insured/guaranteed (1) | 31 | 50 | ||||||||||
Non-government insured/guaranteed | 185 | 229 | 107 | 172 | ||||||||
Other | 124 | 134 | 57 | 81 | ||||||||
Operating lease assets (lessor) | 8,663 | 9,036 | 7,930 | 8,221 | ||||||||
Operating lease ROU assets (lessee) (2) | 4,776 | — | ||||||||||
Operating lease ROU assets (lessee) | 4,548 | 4,724 | ||||||||||
Due from customers on acceptances | 272 | 258 | 173 | 253 | ||||||||
Other | 9,489 | 9,444 | 15,325 | 10,200 | ||||||||
Total other assets | $ | 76,358 | 79,850 | $ | 85,611 | 78,917 |
(1) | Certain government-guaranteed residential real estate mortgage loans upon foreclosure are included in Accounts receivable. For more information, see Note 1 (Summary of Significant Accounting Policies) in our |
Note 10: Securitizations and Variable Interest Entities |
(in millions) | VIEs that we do not consolidate | VIEs that we consolidate | Transfers that we account for as secured borrowings | Total | VIEs that we do not consolidate | VIEs that we consolidate | Transfers that we account for as secured borrowings | Total | ||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||
Cash and due from banks | $ | — | 11 | — | 11 | $ | — | 26 | — | 26 | ||||||||||||||
Interest-earning deposits with banks | — | 8 | — | 8 | — | — | — | — | ||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Debt securities (1): | ||||||||||||||||||||||||
Trading debt securities | 2,072 | 60 | 200 | 2,332 | 1,670 | 257 | — | 1,927 | ||||||||||||||||
Available-for-sale debt securities | 1,879 | — | 68 | 1,947 | 1,554 | 298 | — | 1,852 | ||||||||||||||||
Held-to-maturity debt securities | 560 | — | — | 560 | 1,156 | — | — | 1,156 | ||||||||||||||||
Loans | 1,214 | 13,602 | 87 | 14,903 | 1,890 | 11,579 | 74 | 13,543 | ||||||||||||||||
Mortgage servicing rights | 12,354 | — | — | 12,354 | 7,499 | — | — | 7,499 | ||||||||||||||||
Derivative assets | 143 | — | — | 143 | 269 | 1 | — | 270 | ||||||||||||||||
Equity securities | 11,211 | 121 | — | 11,332 | 11,351 | 71 | — | 11,422 | ||||||||||||||||
Other assets | — | 208 | 2 | 210 | 974 | 215 | — | 1,189 | ||||||||||||||||
Total assets | 29,433 | 14,010 | 357 | 43,800 | 26,363 | 12,447 | 74 | 38,884 | ||||||||||||||||
Short-term borrowings | — | — | 263 | 263 | — | 501 | — | 501 | ||||||||||||||||
Derivative liabilities | 1 | 1 | (2) | — | 2 | 2 | 1 | — | 3 | |||||||||||||||
Accrued expenses and other liabilities | 198 | 201 | (2) | 2 | 401 | 239 | 212 | — | 451 | |||||||||||||||
Long-term debt | 3,857 | 748 | (2) | 85 | 4,690 | 4,201 | 225 | 73 | 4,499 | |||||||||||||||
Total liabilities | 4,056 | 950 | 350 | 5,356 | 4,442 | 939 | 73 | 5,454 | ||||||||||||||||
Noncontrolling interests | — | 41 | — | 41 | — | 36 | — | 36 | ||||||||||||||||
Net assets | $ | 25,377 | 13,019 | 7 | 38,403 | $ | 21,921 | 11,472 | 1 | 33,394 | ||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
Cash and due from banks | $ | — | 139 | — | 139 | $ | — | 16 | — | 16 | ||||||||||||||
Interest-earning deposits with banks | — | 8 | — | 8 | — | 284 | — | 284 | ||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
Debt securities (1): | ||||||||||||||||||||||||
Trading debt securities | 2,110 | 45 | 200 | 2,355 | 792 | 339 | — | 1,131 | ||||||||||||||||
Available-for-sale debt securities | 2,686 | — | 317 | 3,003 | 1,696 | 201 | — | 1,897 | ||||||||||||||||
Held-to-maturity debt securities | 510 | — | — | 510 | 791 | — | — | 791 | ||||||||||||||||
Loans | 1,433 | 13,564 | 94 | 15,091 | 2,127 | 13,170 | 80 | 15,377 | ||||||||||||||||
Mortgage servicing rights | 14,761 | — | — | 14,761 | 11,884 | — | — | 11,884 | ||||||||||||||||
Derivative assets | 53 | — | — | 53 | 142 | 1 | — | 143 | ||||||||||||||||
Equity securities | 11,041 | 85 | — | 11,126 | 11,401 | 118 | — | 11,519 | ||||||||||||||||
Other assets | — | 221 | 6 | 227 | 1,268 | 239 | — | 1,507 | ||||||||||||||||
Total assets | 32,594 | 14,062 | 617 | 47,273 | 30,101 | 14,368 | 80 | 44,549 | ||||||||||||||||
Short-term borrowings | — | — | 493 | 493 | — | 401 | — | 401 | ||||||||||||||||
Derivative liabilities | 26 | — | (2) | — | 26 | 1 | 3 | — | 4 | |||||||||||||||
Accrued expenses and other liabilities | 231 | 191 | (2) | 8 | 430 | 189 | 235 | — | 424 | |||||||||||||||
Long-term debt | 3,870 | 816 | (2) | 93 | 4,779 | 4,817 | 587 | 79 | 5,483 | |||||||||||||||
Total liabilities | 4,127 | 1,007 | 594 | 5,728 | 5,007 | 1,226 | 79 | 6,312 | ||||||||||||||||
Noncontrolling interests | — | 34 | — | 34 | — | 43 | — | 43 | ||||||||||||||||
Net assets | $ | 28,467 | 13,021 | 23 | 41,511 | $ | 25,094 | 13,099 | 1 | 38,194 |
(1) | Excludes certain debt securities related to loans serviced for the Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) and |
Carrying value – asset (liability) | |||||||||||||||||||
(in millions) | Total VIE assets | Debt and equity interests (1) | Servicing assets | Derivatives | Other commitments and guarantees | Net assets | |||||||||||||
June 30, 2019 | |||||||||||||||||||
Residential mortgage loan securitizations: | |||||||||||||||||||
Conforming (2) | $ | 1,132,124 | 2,367 | 11,420 | — | (136 | ) | 13,651 | |||||||||||
Other/nonconforming | 9,438 | 37 | 57 | — | — | 94 | |||||||||||||
Commercial mortgage securitizations | 154,690 | 2,041 | 877 | 85 | (42 | ) | 2,961 | ||||||||||||
Collateralized debt obligations: | |||||||||||||||||||
Debt securities | 637 | — | — | 4 | (20 | ) | (16 | ) | |||||||||||
Asset-based finance structures | 244 | 143 | — | — | — | 143 | |||||||||||||
Tax credit structures | 36,888 | 12,232 | — | — | (3,857 | ) | 8,375 | ||||||||||||
Collateralized loan obligations | 176 | 1 | — | — | — | 1 | |||||||||||||
Investment funds | 210 | 49 | — | — | — | 49 | |||||||||||||
Other (3) | 1,508 | 66 | — | 53 | — | 119 | |||||||||||||
Total | $ | 1,335,915 | 16,936 | 12,354 | 142 | (4,055 | ) | 25,377 | |||||||||||
Maximum exposure to loss | |||||||||||||||||||
Debt and equity interests (1) | Servicing assets | Derivatives | Other commitments and guarantees | Total exposure | |||||||||||||||
Residential mortgage loan securitizations: | |||||||||||||||||||
Conforming | $ | 2,367 | 11,420 | — | 902 | 14,689 | |||||||||||||
Other/nonconforming | 37 | 57 | — | — | 94 | ||||||||||||||
Commercial mortgage securitizations | 2,041 | 877 | 85 | 12,007 | 15,010 | ||||||||||||||
Collateralized debt obligations: | |||||||||||||||||||
Debt securities | — | — | 4 | 20 | 24 | ||||||||||||||
Asset-based finance structures | 143 | — | — | 71 | 214 | ||||||||||||||
Tax credit structures | 12,232 | — | — | 1,373 | 13,605 | ||||||||||||||
Collateralized loan obligations | 1 | — | — | — | 1 | ||||||||||||||
Investment funds | 49 | — | — | — | 49 | ||||||||||||||
Other (3) | 66 | — | 54 | 159 | 279 | ||||||||||||||
Total | $ | 16,936 | 12,354 | 143 | 14,532 | 43,965 |
Carrying value – asset (liability) | |||||||||||||||||||
(in millions) | Total VIE assets | Debt and equity interests (1) | Servicing assets | Derivatives | Other commitments and guarantees | Net assets | |||||||||||||
December 31, 2018 | |||||||||||||||||||
Residential mortgage loan securitizations: | |||||||||||||||||||
Conforming (2) | $ | 1,172,833 | 2,377 | 13,811 | — | (171 | ) | 16,017 | |||||||||||
Other/nonconforming | 10,596 | 453 | 57 | — | — | 510 | |||||||||||||
Commercial mortgage securitizations | 153,350 | 2,409 | 893 | (22 | ) | (40 | ) | 3,240 | |||||||||||
Collateralized debt obligations: | |||||||||||||||||||
Debt securities | 659 | — | — | 5 | (20 | ) | (15 | ) | |||||||||||
Asset-based finance structures | 304 | 205 | — | — | — | 205 | |||||||||||||
Tax credit structures | 35,185 | 12,087 | — | — | (3,870 | ) | 8,217 | ||||||||||||
Collateralized loan obligations | 2 | — | — | — | — | — | |||||||||||||
Investment funds | 185 | 42 | — | — | — | 42 | |||||||||||||
Other (3) | 1,688 | 207 | — | 44 | — | 251 | |||||||||||||
Total | $ | 1,374,802 | 17,780 | 14,761 | 27 | (4,101 | ) | 28,467 | |||||||||||
Maximum exposure to loss | |||||||||||||||||||
Debt and equity interests (1) | Servicing assets | Derivatives | Other commitments and guarantees | Total exposure | |||||||||||||||
Residential mortgage loan securitizations: | |||||||||||||||||||
Conforming | $ | 2,377 | 13,811 | — | 1,183 | 17,371 | |||||||||||||
Other/nonconforming | 453 | 57 | — | — | 510 | ||||||||||||||
Commercial mortgage securitizations | 2,409 | 893 | 28 | 11,563 | 14,893 | ||||||||||||||
Collateralized debt obligations: | |||||||||||||||||||
Debt securities | — | — | 5 | 20 | 25 | ||||||||||||||
Asset-based finance structures | 205 | — | — | 71 | 276 | ||||||||||||||
Tax credit structures | 12,087 | — | — | 1,420 | 13,507 | ||||||||||||||
Collateralized loan obligations | — | — | — | — | — | ||||||||||||||
Investment funds | 42 | — | — | — | 42 | ||||||||||||||
Other (3) | 207 | — | 45 | 158 | 410 | ||||||||||||||
Total | $ | 17,780 | 14,761 | 78 | 14,415 | 47,034 |
Carrying value – asset (liability) | |||||||||||||||||||
(in millions) | Total VIE assets | Debt and equity interests (1) | Servicing assets and advances | Derivatives | Debt, guarantees, and other commitments | Net assets | |||||||||||||
June 30, 2020 | |||||||||||||||||||
Residential mortgage loan securitizations: | |||||||||||||||||||
Conforming (2) | $ | 1,042,774 | 1,884 | 7,291 | — | (248 | ) | 8,927 | |||||||||||
Other/nonconforming | 5,184 | 1 | 34 | — | — | 35 | |||||||||||||
Commercial mortgage loan securitizations (2) | 175,912 | 2,484 | 1,148 | 195 | (33 | ) | 3,794 | ||||||||||||
Tax credit structures | 38,839 | 13,037 | — | — | (4,159 | ) | 8,878 | ||||||||||||
Other asset-based finance structures | 1,277 | 167 | — | 72 | — | 239 | |||||||||||||
Other | 1,146 | 48 | — | — | — | 48 | |||||||||||||
Total | $ | 1,265,132 | 17,621 | 8,473 | 267 | (4,440 | ) | 21,921 | |||||||||||
Maximum exposure to loss | |||||||||||||||||||
Debt and equity interests (1) | Servicing assets and advances | Derivatives | Debt, guarantees, and other commitments | Total exposure | |||||||||||||||
Residential mortgage loan securitizations: | |||||||||||||||||||
Conforming (2) | $ | 1,853 | 7,291 | — | 1,335 | 10,479 | |||||||||||||
Other/nonconforming | 1 | 34 | — | — | 35 | ||||||||||||||
Commercial mortgage loan securitizations (2) | 2,473 | 1,148 | 195 | 12,108 | 15,924 | ||||||||||||||
Tax credit structures | 13,037 | — | — | 1,327 | 14,364 | ||||||||||||||
Other asset-based finance structures | 167 | — | 76 | 71 | 314 | ||||||||||||||
Other | 48 | — | — | 157 | 205 | ||||||||||||||
Total | $ | 17,579 | 8,473 | 271 | 14,998 | 41,321 | |||||||||||||
Carrying value – asset (liability) | |||||||||||||||||||
(in millions) | Total VIE assets | Debt and equity interests (1) | Servicing assets and advances | Derivatives | Debt, guarantees, and other commitments | Net assets | |||||||||||||
December 31, 2019 | |||||||||||||||||||
Residential mortgage loan securitizations: | |||||||||||||||||||
Conforming (2) | $ | 1,098,103 | 1,528 | 11,931 | — | (683 | ) | 12,776 | |||||||||||
Other/nonconforming | 5,178 | 6 | 152 | — | — | 158 | |||||||||||||
Commercial mortgage loan securitizations (2) | 169,736 | 2,239 | 1,069 | 80 | (43 | ) | 3,345 | ||||||||||||
Tax credit structures | 39,091 | 12,826 | — | — | (4,260 | ) | 8,566 | ||||||||||||
Other asset-based finance structures | 1,355 | 157 | — | 61 | (20 | ) | 198 | ||||||||||||
Other | 1,167 | 51 | — | — | — | 51 | |||||||||||||
Total | $ | 1,314,630 | 16,807 | 13,152 | 141 | (5,006 | ) | 25,094 | |||||||||||
Maximum exposure to loss | |||||||||||||||||||
Debt and equity interests (1) | Servicing assets and advances | Derivatives | Debt, guarantees, and other commitments | Total exposure | |||||||||||||||
Residential mortgage loan securitizations: | |||||||||||||||||||
Conforming (2) | $ | 972 | 11,931 | — | 937 | 13,840 | |||||||||||||
Other/nonconforming | 6 | 152 | — | — | 158 | ||||||||||||||
Commercial mortgage loan securitizations (2) | 2,239 | 1,069 | 80 | 11,667 | 15,055 | ||||||||||||||
Tax credit structures | 12,826 | — | — | 1,701 | 14,527 | ||||||||||||||
Other asset-based finance structures | 157 | — | 63 | 91 | 311 | ||||||||||||||
Other | 51 | — | — | 157 | 208 | ||||||||||||||
Total | $ | 16,251 | 13,152 | 143 | 14,553 | 44,099 |
(1) | Includes total equity interests of |
(2) | Carrying values include assets and related liabilities |
Mortgage loans | ||||||
(in millions) | 2019 | 2018 | ||||
Quarter ended June 30, | ||||||
Proceeds from securitizations and whole loan sales | $ | 39,697 | 51,990 | |||
Fees from servicing rights retained | 786 | 830 | ||||
Cash flows from other interests held (1) | 133 | 168 | ||||
Repurchases of assets/loss reimbursements (2): | ||||||
Non-agency securitizations and whole loan transactions | 1 | 1 | ||||
Agency securitizations (3) | 27 | 19 | ||||
Servicing advances, net of repayments | (54 | ) | (7 | ) | ||
Six months ended June 30, | ||||||
Proceeds from securitizations and whole loan sales | $ | 76,204 | 102,577 | |||
Fees from servicing rights retained | 1,566 | 1,675 | ||||
Cash flows from other interests held (1) | 244 | 353 | ||||
Repurchases of assets/loss reimbursements (2): | ||||||
Non-agency securitizations and whole loan transactions | 1 | 2 | ||||
Agency securitizations (3) | 44 | 52 | ||||
Servicing advances, net of repayments | (93 | ) | (43 | ) |
(in millions) | 2020 | 2019 | ||||||||||
Quarter ended June 30, | Residential mortgages | Commercial mortgages | Residential mortgages | Commercial mortgages | ||||||||
Net gains (losses) on sale | $ | — | 64 | 46 | 74 | |||||||
Asset balances sold | 63,584 | 2,505 | 36,672 | 3,358 | ||||||||
Servicing rights recognized | 443 | 48 | 387 | 33 | ||||||||
Securities recognized (1) | (263 | ) | 12 | 2,482 | — | |||||||
Liability for repurchase losses recognized | 4 | — | 5 | — | ||||||||
Six months ended June 30, | ||||||||||||
Net gains (losses) on sale | $ | 52 | 133 | 60 | 121 | |||||||
Asset balances sold | 111,441 | 5,233 | 70,775 | 6,060 | ||||||||
Servicing rights recognized | 889 | 82 | 707 | 59 | ||||||||
Securities recognized (1) | 2,050 | 74 | 3,394 | — | ||||||||
Liability for repurchase losses recognized | 7 | — | 8 | — |
(1) | Includes securities retained upon initial transfer and subsequent sales during the periods presented, which may result in a net reduction of securities recognized. |
Residential mortgage servicing rights | Residential mortgage servicing rights | |||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||
Quarter ended June 30, | ||||||||||||
Prepayment speed (1) | 13.5 | % | 10.7 | 15.0 | % | 13.5 | ||||||
Discount rate | 7.5 | 7.4 | 7.0 | 7.5 | ||||||||
Cost to service ($ per loan) (2) | $ | 121 | 146 | $ | 97 | 121 | ||||||
Six months ended June 30, | ||||||||||||
Prepayment speed (1) | 13.5 | % | 10.1 | 14.0 | % | 13.5 | ||||||
Discount rate | 7.7 | 7.4 | 6.8 | 7.7 | ||||||||
Cost to service ($ per loan) (2) | $ | 109 | 132 | $ | 94 | 109 |
(1) | The prepayment speed assumption for residential |
(2) | Includes costs to service and unreimbursed foreclosure costs, which can vary period to period |
Mortgage loans | ||||||
(in millions) | 2020 | 2019 | ||||
Quarter ended June 30, | ||||||
Proceeds from securitizations and whole loan sales | $ | 65,009 | 39,697 | |||
Fees from servicing rights retained | 663 | 786 | ||||
Cash flows from other interests held | 192 | 133 | ||||
Repurchases of assets/loss reimbursements: | ||||||
Non-agency securitizations and whole loan transactions | (1 | ) | (1 | ) | ||
Government insured loans | (3,594 | ) | (1,246 | ) | ||
Agency securitizations | (35 | ) | (27 | ) | ||
Servicing advances, net of recoveries (1) | (93 | ) | 54 | |||
Six months ended June 30, | ||||||
Proceeds from securitizations and whole loan sales | $ | 115,238 | 76,204 | |||
Fees from servicing rights retained | 1,419 | 1,566 | ||||
Cash flows from other interests held | 359 | 244 | ||||
Repurchases of assets/loss reimbursements: | ||||||
Non-agency securitizations and whole loan transactions | (1 | ) | (1 | ) | ||
Government insured loans | (5,034 | ) | (3,188 | ) | ||
Agency securitizations | (61 | ) | (44 | ) | ||
Servicing advances, net of recoveries (1) | (60 | ) | 93 |
(1) | Cash flows from servicing advances includes principal and interest payments to investors required by servicing agreements. |
Other interests held | ||||||||||
Residential mortgage servicing rights | Commercial | |||||||||
($ in millions, except cost to service amounts) | Subordinated bonds | Senior bonds | ||||||||
Fair value of interests held at June 30, 2020 | $ | 6,819 | 982 | 273 | ||||||
Expected weighted-average life (in years) | 3.9 | 7.0 | 6.6 | |||||||
Key economic assumptions: | ||||||||||
Prepayment speed assumption | 18.5 | % | ||||||||
Decrease in fair value from: | ||||||||||
10% adverse change | $ | 470 | ||||||||
25% adverse change | 1,089 | |||||||||
Discount rate assumption | 6.8 | % | 5.4 | 1.8 | ||||||
Decrease in fair value from: | ||||||||||
100 basis point increase | $ | 255 | 57 | 15 | ||||||
200 basis point increase | 490 | 109 | 30 | |||||||
Cost to service assumption ($ per loan) | 152 | |||||||||
Decrease in fair value from: | ||||||||||
10% adverse change | 234 | |||||||||
25% adverse change | 583 | |||||||||
Credit loss assumption | 4.5 | % | — | |||||||
Decrease in fair value from: | ||||||||||
10% higher losses | $ | 36 | — | |||||||
25% higher losses | 40 | — | ||||||||
Fair value of interests held at December 31, 2019 | $ | 11,517 | 909 | 352 | ||||||
Expected weighted-average life (in years) | 5.3 | 7.3 | 5.5 | |||||||
Key economic assumptions: | ||||||||||
Prepayment speed assumption | 11.9 | % | ||||||||
Decrease in fair value from: | ||||||||||
10% adverse change | $ | 537 | ||||||||
25% adverse change | 1,261 | |||||||||
Discount rate assumption | 7.2 | % | 4.0 | 2.9 | ||||||
Decrease in fair value from: | ||||||||||
100 basis point increase | $ | 464 | 53 | 16 | ||||||
200 basis point increase | 889 | 103 | 32 | |||||||
Cost to service assumption ($ per loan) | 102 | |||||||||
Decrease in fair value from: | ||||||||||
10% adverse change | 253 | |||||||||
25% adverse change | 632 | |||||||||
Credit loss assumption | 3.1 | % | — | |||||||
Decrease in fair value from: | ||||||||||
10% higher losses | $ | 1 | — | |||||||
25% higher losses | 4 | — |
Other interests held | |||||||||||||
Residential mortgage servicing rights (1) | Interest-only strips | Commercial | |||||||||||
($ in millions, except cost to service amounts) | Subordinated bonds | Senior bonds | |||||||||||
Fair value of interests held at June 30, 2019 | $ | 12,096 | 14 | 706 | 302 | ||||||||
Expected weighted-average life (in years) | 5.6 | 3.4 | 7.2 | 5.3 | |||||||||
Key economic assumptions: | |||||||||||||
Prepayment speed assumption (2) | 12.2 | % | 18.8 | ||||||||||
Decrease in fair value from: | |||||||||||||
10% adverse change | $ | 526 | 1 | ||||||||||
25% adverse change | 1,239 | 1 | |||||||||||
Discount rate assumption | 7.4 | % | 13.9 | 3.5 | 2.8 | ||||||||
Decrease in fair value from: | |||||||||||||
100 basis point increase | $ | 499 | — | 41 | 14 | ||||||||
200 basis point increase | 954 | — | 79 | 26 | |||||||||
Cost to service assumption ($ per loan) | 104 | ||||||||||||
Decrease in fair value from: | |||||||||||||
10% adverse change | 283 | ||||||||||||
25% adverse change | 707 | ||||||||||||
Credit loss assumption | 4.4 | % | — | ||||||||||
Decrease in fair value from: | |||||||||||||
10% higher losses | $ | 2 | — | ||||||||||
25% higher losses | 5 | — | |||||||||||
Fair value of interests held at December 31, 2018 | $ | 14,649 | 16 | 668 | 309 | ||||||||
Expected weighted-average life (in years) | 6.5 | 3.6 | 7.0 | 5.7 | |||||||||
Key economic assumptions: | |||||||||||||
Prepayment speed assumption (2) | 9.9 | % | 17.7 | ||||||||||
Decrease in fair value from: | |||||||||||||
10% adverse change | $ | 530 | 1 | ||||||||||
25% adverse change | 1,301 | 1 | |||||||||||
Discount rate assumption | 8.1 | % | 14.5 | 4.3 | 3.7 | ||||||||
Decrease in fair value from: | |||||||||||||
100 basis point increase | $ | 615 | — | 37 | 14 | ||||||||
200 basis point increase | 1,176 | 1 | 72 | 28 | |||||||||
Cost to service assumption ($ per loan) | 106 | ||||||||||||
Decrease in fair value from: | |||||||||||||
10% adverse change | 316 | ||||||||||||
25% adverse change | 787 | ||||||||||||
Credit loss assumption | 5.1 | % | — | ||||||||||
Decrease in fair value from: | |||||||||||||
10% higher losses | $ | 2 | — | ||||||||||
25% higher losses | 5 | — |
Net charge-offs | Net charge-offs (2) | |||||||||||||||||||||||||||||||||||
Total loans | Delinquent loans and foreclosed assets (1) | Six months ended Jun 30, | Total loans | Delinquent loans and foreclosed assets (1) | Six months ended Jun 30, | |||||||||||||||||||||||||||||||
(in millions) | Jun 30, 2019 | Dec 31, 2018 | Jun 30, 2019 | Dec 31, 2018 | 2019 | 2018 | Jun 30, 2020 | Dec 31, 2019 | Jun 30, 2020 | Dec 31, 2019 | 2020 | 2019 | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||||||
Real estate mortgage | $ | 107,239 | 105,173 | 955 | 1,008 | 89 | 151 | $ | 114,057 | 112,507 | 791 | 776 | 83 | 89 | ||||||||||||||||||||||
Total commercial | 107,239 | 105,173 | 955 | 1,008 | 89 | 151 | 114,057 | 112,507 | 791 | 776 | 83 | 89 | ||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 1,045,840 | 1,097,128 | 7,650 | 8,947 | 110 | 250 | 942,481 | 1,008,446 | 53,282 | 6,664 | 59 | 110 | ||||||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | 11 | 13 | 2 | 2 | — | — | ||||||||||||||||||||||||||||||
Total consumer | 1,045,840 | 1,097,128 | 7,650 | 8,947 | 110 | 250 | 942,492 | 1,008,459 | 53,284 | 6,666 | 59 | 110 | ||||||||||||||||||||||||
Total off-balance sheet sold or securitized loans (2) | $ | 1,153,079 | 1,202,301 | 8,605 | 9,955 | 199 | 401 | |||||||||||||||||||||||||||||
Total off-balance sheet sold or securitized loans (3) | $ | 1,056,549 | 1,120,966 | 54,075 | 7,442 | 142 | 199 |
(1) | Includes |
(2) |
(3) | At June 30, 2020, and December 31, 2019, the table includes total loans of $1.0 trillion at both dates, delinquent loans of $51.3 billion and $5.2 billion, respectively, and foreclosed assets of $224 million and $251 million, respectively, for FNMA, FHLMC and GNMA. |
Carrying value | Carrying value | |||||||||||||||||||||||||||||
(in millions) | Total VIE assets | Assets | Liabilities | Noncontrolling interests | Net assets | Total VIE assets | Assets | Liabilities | Noncontrolling interests | Net assets | ||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||
Secured borrowings: | ||||||||||||||||||||||||||||||
Municipal tender option bond securitizations | $ | 263 | 270 | (265 | ) | — | 5 | |||||||||||||||||||||||
Residential mortgage securitizations | 87 | 87 | (85 | ) | — | 2 | $ | 74 | 74 | (73 | ) | — | 1 | |||||||||||||||||
Total secured borrowings | 350 | 357 | (350 | ) | — | 7 | 74 | 74 | (73 | ) | — | 1 | ||||||||||||||||||
Consolidated VIEs: | ||||||||||||||||||||||||||||||
Commercial and industrial loans and leases | 7,742 | 7,728 | (490 | ) | (13 | ) | 7,225 | 6,970 | 5,838 | (210 | ) | (12 | ) | 5,616 | ||||||||||||||||
Nonconforming residential mortgage loan securitizations | 1,475 | 1,288 | (452 | ) | — | 836 | 652 | 565 | (225 | ) | — | 340 | ||||||||||||||||||
Commercial real estate loans | 4,794 | 4,794 | — | — | 4,794 | 5,387 | 5,387 | — | — | 5,387 | ||||||||||||||||||||
Investment funds | 194 | 194 | (6 | ) | (24 | ) | 164 | |||||||||||||||||||||||
Municipal tender option bond securitizations | 501 | 500 | (500 | ) | — | — | ||||||||||||||||||||||||
Other | 6 | 6 | (2 | ) | (4 | ) | — | 157 | 157 | (4 | ) | (24 | ) | 129 | ||||||||||||||||
Total consolidated VIEs | 14,211 | 14,010 | (950 | ) | (41 | ) | 13,019 | 13,667 | 12,447 | (939 | ) | (36 | ) | 11,472 | ||||||||||||||||
Total secured borrowings and consolidated VIEs | $ | 14,561 | 14,367 | (1,300 | ) | (41 | ) | 13,026 | $ | 13,741 | 12,521 | (1,012 | ) | (36 | ) | 11,473 | ||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||
Secured borrowings: | ||||||||||||||||||||||||||||||
Municipal tender option bond securitizations | $ | 627 | 523 | (501 | ) | — | 22 | |||||||||||||||||||||||
Residential mortgage securitizations | 95 | 94 | (93 | ) | — | 1 | $ | 81 | 80 | (79 | ) | — | 1 | |||||||||||||||||
Total secured borrowings | 722 | 617 | (594 | ) | — | 23 | 81 | 80 | (79 | ) | — | 1 | ||||||||||||||||||
Consolidated VIEs: | ||||||||||||||||||||||||||||||
Commercial and industrial loans and leases | 8,215 | 8,204 | (477 | ) | (14 | ) | 7,713 | 8,054 | 8,042 | (529 | ) | (16 | ) | 7,497 | ||||||||||||||||
Nonconforming residential mortgage loan securitizations | 1,947 | 1,732 | (521 | ) | — | 1,211 | 935 | 809 | (290 | ) | — | 519 | ||||||||||||||||||
Commercial real estate loans | 3,957 | 3,957 | — | — | 3,957 | 4,836 | 4,836 | — | — | 4,836 | ||||||||||||||||||||
Investment funds | 155 | 155 | (5 | ) | (15 | ) | 135 | |||||||||||||||||||||||
Municipal tender option bond securitizations | 401 | 402 | (401 | ) | — | 1 | ||||||||||||||||||||||||
Other | 14 | 14 | (4 | ) | (5 | ) | 5 | 279 | 279 | (6 | ) | (27 | ) | 246 | ||||||||||||||||
Total consolidated VIEs | 14,288 | 14,062 | (1,007 | ) | (34 | ) | 13,021 | 14,505 | 14,368 | (1,226 | ) | (43 | ) | 13,099 | ||||||||||||||||
Total secured borrowings and consolidated VIEs | $ | 15,010 | 14,679 | (1,601 | ) | (34 | ) | 13,044 | $ | 14,586 | 14,448 | (1,305 | ) | (43 | ) | 13,100 |
Note 11: Mortgage Banking Activities |
Quarter ended June 30, | Six months ended June 30, | Quarter ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||
Fair value, beginning of period | $ | 13,336 | 15,041 | 14,649 | 13,625 | $ | 8,126 | 13,336 | $ | 11,517 | 14,649 | ||||||||||||||
Servicing from securitizations or asset transfers (1) | 400 | 486 | 741 | 1,059 | 462 | 400 | 923 | 741 | |||||||||||||||||
Sales and other (2) | (1 | ) | (1 | ) | (282 | ) | (5 | ) | (1 | ) | (1 | ) | (32 | ) | (282 | ) | |||||||||
Net additions | 399 | 485 | 459 | 1,054 | 461 | 399 | 891 | 459 | |||||||||||||||||
Changes in fair value: | |||||||||||||||||||||||||
Due to changes in valuation model inputs or assumptions: | |||||||||||||||||||||||||
Due to valuation inputs or assumptions: | |||||||||||||||||||||||||
Mortgage interest rates (3) | (1,153 | ) | 376 | (2,093 | ) | 1,629 | (600 | ) | (1,153 | ) | (3,622 | ) | (2,093 | ) | |||||||||||
Servicing and foreclosure costs (4) | (22 | ) | 30 | (10 | ) | 64 | (349 | ) | (22 | ) | (422 | ) | (10 | ) | |||||||||||
Discount rates | (109 | ) | — | (9 | ) | — | — | (109 | ) | 27 | (9 | ) | |||||||||||||
Prepayment estimates and other | 206 | (61 | ) | 143 | (18 | ) | (182 | ) | 206 | (371 | ) | 143 | |||||||||||||
Net changes in valuation model inputs or assumptions | (1,078 | ) | 345 | (1,969 | ) | 1,675 | |||||||||||||||||||
Changes due to collection/realization of expected cash flows over time | (561 | ) | (460 | ) | (1,043 | ) | (943 | ) | |||||||||||||||||
Net changes in valuation inputs or assumptions | (1,131 | ) | (1,078 | ) | (4,388 | ) | (1,969 | ) | |||||||||||||||||
Changes due to collection/realization of expected cash flows (6) | (637 | ) | (561 | ) | (1,201 | ) | (1,043 | ) | |||||||||||||||||
Total changes in fair value | (1,639 | ) | (115 | ) | (3,012 | ) | 732 | (1,768 | ) | (1,639 | ) | (5,589 | ) | (3,012 | ) | ||||||||||
Fair value, end of period | $ | 12,096 | 15,411 | 12,096 | 15,411 | $ | 6,819 | 12,096 | $ | 6,819 | 12,096 |
(1) | Includes impacts associated with exercising cleanup calls on securitizations and our right to repurchase delinquent loans from GNMA loan securitization pools. |
(2) | Includes sales and transfers of MSRs, which can result in an increase |
(3) | Includes prepayment speed changes as well as other valuation changes due to changes in mortgage interest |
(4) | Includes costs to service and unreimbursed foreclosure costs. |
(5) |
(6) | Represents the reduction in the MSR fair value for the cash flows expected to be collected during the period, net of income accreted due to the passage of time. |
Quarter ended June 30, | Six months ended June 30, | Quarter ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||
Balance, beginning of period | $ | 1,427 | 1,411 | 1,443 | 1,424 | $ | 1,406 | 1,427 | $ | 1,430 | 1,443 | ||||||||||||||
Purchases | 16 | 22 | 40 | 40 | 7 | 16 | 15 | 40 | |||||||||||||||||
Servicing from securitizations or asset transfers | 33 | 39 | 59 | 73 | 48 | 33 | 82 | 59 | |||||||||||||||||
Amortization | (69 | ) | (65 | ) | (135 | ) | (130 | ) | (100 | ) | (69 | ) | (166 | ) | (135 | ) | |||||||||
Balance, end of period | $ | 1,407 | 1,407 | 1,407 | 1,407 | $ | 1,361 | 1,407 | $ | 1,361 | 1,407 | ||||||||||||||
Fair value of amortized MSRs: | |||||||||||||||||||||||||
Beginning of period | $ | 2,149 | 2,307 | 2,288 | 2,025 | $ | 1,490 | 2,149 | $ | 1,490 | 2,288 | ||||||||||||||
End of period | 1,897 | 2,309 | 1,897 | 2,309 | 1,401 | 1,897 | 1,401 | 1,897 |
(1) | Commercial amortized MSRs are evaluated for impairment purposes by the following risk strata: agency (GSEs) for multi-family properties and non-agency. There was |
(in billions) | Jun 30, 2019 | Dec 31, 2018 | Jun 30, 2020 | Dec 31, 2019 | ||||||||
Residential mortgage servicing: | ||||||||||||
Serviced for others | $ | 1,107 | 1,164 | |||||||||
Serviced and subserviced for others | $ | 992 | 1,065 | |||||||||
Owned loans serviced | 340 | 334 | 335 | 343 | ||||||||
Subserviced for others | 5 | 4 | ||||||||||
Total residential servicing | 1,452 | 1,502 | 1,327 | 1,408 | ||||||||
Commercial mortgage servicing: | ||||||||||||
Serviced for others | 548 | 543 | ||||||||||
Serviced and subserviced for others | 578 | 575 | ||||||||||
Owned loans serviced | 123 | 121 | 125 | 124 | ||||||||
Subserviced for others | 9 | 9 | ||||||||||
Total commercial servicing | 680 | 673 | 703 | 699 | ||||||||
Total managed servicing portfolio | $ | 2,132 | 2,175 | $ | 2,030 | 2,107 | ||||||
Total serviced for others | $ | 1,655 | 1,707 | |||||||||
Total serviced for others, excluding subserviced for others | $ | 1,558 | 1,629 | |||||||||
Ratio of MSRs to related loans serviced for others | 0.82 | % | 0.94 | 0.52 | % | 0.79 |
Quarter ended June 30, | Six months ended June 30, | ||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||
Servicing income, net: | |||||||||||||
Servicing fees: | |||||||||||||
Contractually specified servicing fees | $ | 846 | 901 | 1,686 | 1,817 | ||||||||
Late charges | 30 | 42 | 63 | 86 | |||||||||
Ancillary fees | 38 | 47 | 76 | 87 | |||||||||
Unreimbursed direct servicing costs (1) | (84 | ) | (85 | ) | (154 | ) | (179 | ) | |||||
Net servicing fees | 830 | 905 | 1,671 | 1,811 | |||||||||
Changes in fair value of MSRs carried at fair value: | |||||||||||||
Due to changes in valuation model inputs or assumptions (2) | (A) | (1,078 | ) | 345 | (1,969 | ) | 1,675 | ||||||
Changes due to collection/realization of expected cash flows over time | (561 | ) | (460 | ) | (1,043 | ) | (943 | ) | |||||
Total changes in fair value of MSRs carried at fair value | (1,639 | ) | (115 | ) | (3,012 | ) | 732 | ||||||
Amortization | (69 | ) | (65 | ) | (135 | ) | (130 | ) | |||||
Net derivative gains (losses) from economic hedges (3) | (B) | 1,155 | (319 | ) | 2,117 | (1,539 | ) | ||||||
Total servicing income, net | 277 | 406 | 641 | 874 | |||||||||
Net gains on mortgage loan origination/sales activities (4) | 481 | 364 | 825 | 830 | |||||||||
Total mortgage banking noninterest income | $ | 758 | 770 | 1,466 | 1,704 | ||||||||
Market-related valuation changes to MSRs, net of hedge results (2)(3) | (A)+(B) | $ | 77 | 26 | 148 | 136 |
Quarter ended June 30, | Six months ended June 30, | |||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||
Servicing fees: | ||||||||||||||
Contractually specified servicing fees, late charges and ancillary fees | $ | 749 | 914 | $ | 1,614 | 1,825 | ||||||||
Unreimbursed direct servicing costs (1) | (105 | ) | (84 | ) | (212 | ) | (154 | ) | ||||||
Servicing fees | 644 | 830 | 1,402 | 1,671 | ||||||||||
Amortization (2) | (100 | ) | (69 | ) | (166 | ) | (135 | ) | ||||||
Changes due to collection/realization of expected cash flows (3) | (A) | (637 | ) | (561 | ) | (1,201 | ) | (1,043 | ) | |||||
Net servicing fees | (93 | ) | 200 | 35 | 493 | |||||||||
Changes in fair value of MSRs due to valuation inputs or assumptions (4) | (B) | (1,131 | ) | (1,078 | ) | (4,388 | ) | (1,969 | ) | |||||
Net derivative gains from economic hedges (5) | 535 | 1,155 | 3,935 | 2,117 | ||||||||||
Market-related valuation changes to MSRs, net of hedge results | (596 | ) | 77 | (453 | ) | 148 | ||||||||
Total servicing income (loss), net | (689 | ) | 277 | (418 | ) | 641 | ||||||||
Net gains on mortgage loan origination/sales activities (6) | 1,006 | 481 | 1,114 | 825 | ||||||||||
Total mortgage banking noninterest income | $ | 317 | 758 | 696 | 1,466 | |||||||||
Total changes in fair value of MSRs carried at fair value | (A)+(B) | $ | (1,768 | ) | (1,639 | ) | (5,589 | ) | (3,012 | ) |
(1) | Includes costs associated with foreclosures, unreimbursed interest advances to investors, and other interest costs. |
(2) | Includes a $30 million impairment and associated valuation allowance recorded in the second quarter and first half of 2020 on the commercial amortized MSRs. |
(3) | Represents the reduction in the MSR fair value for the cash flows expected to be collected during the period, net of income accreted due to the passage of time. |
(4) | Refer to the analysis of changes in fair value MSRs presented in Table 11.1 in this Note for more detail. |
Includes net |
Note 12: Intangible Assets |
June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||
(in millions) | Gross carrying value | Accumulated amortization | Net carrying value | Gross carrying value | Accumulated amortization | Net carrying value | Gross carrying value | Accumulated amortization | Net carrying value | Gross carrying value | Accumulated amortization | Net carrying value | ||||||||||||||||||||||||
Amortized intangible assets (1): | ||||||||||||||||||||||||||||||||||||
MSRs (2) | $ | 4,260 | (2,853 | ) | 1,407 | 4,161 | (2,718 | ) | 1,443 | $ | 4,519 | (3,158 | ) | 1,361 | 4,422 | (2,992 | ) | 1,430 | ||||||||||||||||||
Core deposit intangibles | — | — | — | 12,834 | (12,834 | ) | — | |||||||||||||||||||||||||||||
Customer relationship and other intangibles | 3,937 | (3,458 | ) | 479 | 3,994 | (3,449 | ) | 545 | 879 | (504 | ) | 375 | 947 | (524 | ) | 423 | ||||||||||||||||||||
Total amortized intangible assets | $ | 8,197 | (6,311 | ) | 1,886 | 20,989 | (19,001 | ) | 1,988 | $ | 5,398 | (3,662 | ) | 1,736 | 5,369 | (3,516 | ) | 1,853 | ||||||||||||||||||
Unamortized intangible assets: | ||||||||||||||||||||||||||||||||||||
MSRs (carried at fair value) (2) | $ | 12,096 | 14,649 | $ | 6,819 | 11,517 | ||||||||||||||||||||||||||||||
Goodwill | 26,415 | 26,418 | 26,385 | 26,390 | ||||||||||||||||||||||||||||||||
Trademark | 14 | 14 | 14 | 14 |
(1) | Balances are excluded commencing in the period following full amortization. |
(2) | Includes a $30 million impairment and associated valuation allowance recorded in the second quarter and first half of 2020 on the commercial amortized MSRs. See Note 11 (Mortgage Banking Activities) for additional information on MSRs. |
(in millions) | Amortized MSRs | Customer relationship and other intangibles | Total | Amortized MSRs | Customer relationship and other intangibles | Total | |||||||||||||||
Six months ended June 30, 2019 (actual) | $ | 135 | 59 | 194 | |||||||||||||||||
Estimate for the remainder of 2019 | $ | 136 | 55 | 191 | |||||||||||||||||
Six months ended June 30, 2020 (actual) | $ | 166 | 48 | 214 | |||||||||||||||||
Estimate for the remainder of 2020 | $ | 130 | 47 | 177 | |||||||||||||||||
Estimate for year ended December 31, | Estimate for year ended December 31, | ||||||||||||||||||||
2020 | 249 | 95 | 344 | ||||||||||||||||||
2021 | 213 | 81 | 294 | 235 | 81 | 316 | |||||||||||||||
2022 | 188 | 68 | 256 | 210 | 68 | 278 | |||||||||||||||
2023 | 159 | 59 | 218 | 182 | 59 | 241 | |||||||||||||||
2024 | 134 | 48 | 182 | 157 | 48 | 205 | |||||||||||||||
2025 | 132 | 39 | 171 |
(in millions) | Community Banking | Wholesale Banking | Wealth and Investment Management | Consolidated Company | Community Banking | Wholesale Banking | Wealth and Investment Management | Consolidated Company | ||||||||||||||||
December 31, 2017 | $ | 16,849 | 8,455 | 1,283 | 26,587 | |||||||||||||||||||
Reclassification of goodwill held for sale to other assets | (155 | ) | — | — | (155 | ) | ||||||||||||||||||
Reduction in goodwill related to divested businesses and other | — | (3 | ) | — | (3 | ) | ||||||||||||||||||
June 30, 2018 (1) | $ | 16,694 | 8,452 | 1,283 | 26,429 | |||||||||||||||||||
December 31, 2018 | $ | 16,685 | 8,450 | 1,283 | 26,418 | $ | 16,685 | 8,450 | 1,283 | 26,418 | ||||||||||||||
Reclassification of goodwill held for sale to other assets | — | — | (7 | ) | (7 | ) | — | — | (7 | ) | (7 | ) | ||||||||||||
Foreign currency translation | — | 4 | — | 4 | — | 4 | — | 4 | ||||||||||||||||
June 30, 2019 (1) | $ | 16,685 | 8,454 | 1,276 | 26,415 | |||||||||||||||||||
June 30, 2019 | $ | 16,685 | 8,454 | 1,276 | 26,415 | |||||||||||||||||||
December 31, 2019 | $ | 16,685 | 8,429 | 1,276 | 26,390 | |||||||||||||||||||
Foreign currency translation | — | (5 | ) | — | (5 | ) | ||||||||||||||||||
June 30, 2020 | $ | 16,685 | 8,424 | 1,276 | 26,385 |
Note 13: Guarantees, Pledged Assets and Collateral, and Other Commitments |
Maximum exposure to loss | |||||||||||||||||||||
(in millions) | Carrying value of obligation (asset) | Expires in one year or less | Expires after one year through three years | Expires after three years through five years | Expires after five years | Total | Non- investment grade | ||||||||||||||
June 30, 2019 | |||||||||||||||||||||
Standby letters of credit (1) | $ | 38 | 14,078 | 7,185 | 3,901 | 464 | 25,628 | 7,938 | |||||||||||||
Securities lending and other indemnifications (2) | — | — | 1 | — | 849 | 850 | 1 | ||||||||||||||
Written put options (3) | (371 | ) | 12,574 | 11,682 | 2,803 | 386 | 27,445 | 15,882 | |||||||||||||
Loans and MLHFS sold with recourse (4) | 53 | 111 | 634 | 1,205 | 10,597 | 12,547 | 9,318 | ||||||||||||||
Factoring guarantees (5) | — | 639 | — | — | — | 639 | 558 | ||||||||||||||
Other guarantees | 1 | — | — | 3 | 4,146 | 4,149 | 1 | ||||||||||||||
Total guarantees | $ | (279 | ) | 27,402 | 19,502 | 7,912 | 16,442 | 71,258 | 33,698 | ||||||||||||
December 31, 2018 | |||||||||||||||||||||
Standby letters of credit (1) | $ | 40 | 14,636 | 7,897 | 3,398 | 497 | 26,428 | 8,027 | |||||||||||||
Securities lending and other indemnifications (2) | — | — | 1 | — | 1,044 | 1,045 | 1 | ||||||||||||||
Written put options (3) | (185 | ) | 17,243 | 10,502 | 3,066 | 400 | 31,211 | 21,732 | |||||||||||||
Loans and MLHFS sold with recourse (4) | 54 | 104 | 653 | 1,207 | 10,163 | 12,127 | 9,079 | ||||||||||||||
Factoring guarantees (5) | — | 889 | — | — | — | 889 | 751 | ||||||||||||||
Other guarantees | 1 | — | — | 3 | 2,959 | 2,962 | 1 | ||||||||||||||
Total guarantees | $ | (90 | ) | 32,872 | 19,053 | 7,674 | 15,063 | 74,662 | 39,591 |
Maximum exposure to loss | |||||||||||||||||||||
(in millions) | Carrying value of obligation (asset) | Expires in one year or less | Expires after one year through three years | Expires after three years through five years | Expires after five years | Total | Non- investment grade | ||||||||||||||
June 30, 2020 | |||||||||||||||||||||
Standby letters of credit | $ | 178 | 12,171 | 4,447 | 2,051 | 426 | 19,095 | 7,689 | |||||||||||||
Direct pay letters of credit | 72 | 1,846 | 3,475 | 971 | 39 | 6,331 | 1,224 | ||||||||||||||
Written options (1) | (49 | ) | 15,916 | 10,481 | 2,495 | 357 | 29,249 | 19,223 | |||||||||||||
Loans and MLHFS sold with recourse (2) | 31 | 122 | 722 | 1,714 | 9,957 | 12,515 | 10,363 | ||||||||||||||
Exchange and clearing house guarantees | — | — | — | — | 5,296 | 5,296 | — | ||||||||||||||
Other guarantees and indemnifications (3) | 1 | 444 | 1 | 1 | 1,389 | 1,835 | 426 | ||||||||||||||
Total guarantees | $ | 233 | 30,499 | 19,126 | 7,232 | 17,464 | 74,321 | 38,925 | |||||||||||||
December 31, 2019 | |||||||||||||||||||||
Standby letters of credit | $ | 36 | 11,569 | 4,460 | 2,812 | 467 | 19,308 | 7,104 | |||||||||||||
Direct pay letters of credit | — | 1,861 | 3,815 | 824 | 105 | 6,605 | 1,184 | ||||||||||||||
Written options (1) | (345 | ) | 17,088 | 10,869 | 2,341 | 273 | 30,571 | 18,113 | |||||||||||||
Loans and MLHFS sold with recourse (2) | 52 | 114 | 576 | 1,356 | 10,050 | 12,096 | 9,835 | ||||||||||||||
Exchange and clearing house guarantees | — | — | — | — | 4,817 | 4,817 | — | ||||||||||||||
Other guarantees and indemnifications (3) | 1 | 785 | 1 | 3 | 809 | 1,598 | 698 | ||||||||||||||
Total guarantees | $ | (256 | ) | 31,417 | 19,721 | 7,336 | 16,521 | 74,995 | 36,934 |
(1) |
Written |
Represent recourse provided, predominantly to the GSEs, on loans sold under various programs and arrangements. |
Includes indemnifications provided to certain third-party clearing agents. Outstanding customer obligations under these arrangements were $77 million and $80 million with related collateral of |
(in millions) | Jun 30, 2020 | Dec 31, 2019 | ||||
Related to trading activities: | ||||||
Repledged third-party owned debt and equity securities | $ | 41,952 | 60,083 | |||
Trading debt securities and other | 22,847 | 51,083 | ||||
Equity securities | 971 | 1,379 | ||||
Total pledged assets related to trading activities | 65,770 | 112,545 | ||||
Related to non-trading activities: | ||||||
Loans | 406,496 | 406,106 | ||||
Debt securities: | ||||||
Available-for-sale | 54,455 | 61,126 | ||||
Held-to-maturity | 2,826 | 3,685 | ||||
Mortgage loans held for sale | 181 | 2,266 | ||||
Total pledged assets related to non-trading activities | 463,958 | 473,183 | ||||
Related to VIEs: | ||||||
Consolidated VIE assets | 12,447 | 14,368 | ||||
VIEs accounted for as secured borrowings | 74 | 80 | ||||
Loans eligible for repurchase from GNMA securitizations | 54 | 568 | ||||
Total pledged assets related to VIEs | 12,575 | 15,016 | ||||
Total pledged assets | $ | 542,303 | 600,744 |
(in millions) | Jun 30, 2019 | Dec 31, 2018 | ||||
Related to trading activities: | ||||||
Debt securities | $ | 107,673 | 96,616 | |||
Equity securities | 10,594 | 9,695 | ||||
Total pledged assets related to trading activities (1) | 118,267 | 106,311 | ||||
Related to non-trading activities: | ||||||
Debt securities and other (2) | 56,413 | 62,438 | ||||
Mortgage loans held for sale and loans (3) | 413,882 | 453,894 | ||||
Total pledged assets related to non-trading activities | 470,295 | 516,332 | ||||
Total pledged assets | $ | 588,562 | 622,643 |
(in millions) | Jun 30, 2019 | Dec 31, 2018 | Jun 30, 2020 | Dec 31, 2019 | ||||||||
Assets: | ||||||||||||
Resale and securities borrowing agreements | ||||||||||||
Gross amounts recognized | $ | 146,096 | 112,662 | $ | 110,900 | 140,773 | ||||||
Gross amounts offset in consolidated balance sheet (1) | (15,248 | ) | (15,258 | ) | (13,640 | ) | (19,180 | ) | ||||
Net amounts in consolidated balance sheet (2) | 130,848 | 97,404 | 97,260 | 121,593 | ||||||||
Collateral not recognized in consolidated balance sheet (3) | (130,082 | ) | (96,734 | ) | (96,541 | ) | (120,786 | ) | ||||
Net amount (4) | $ | 766 | 670 | $ | 719 | 807 | ||||||
Liabilities: | ||||||||||||
Repurchase and securities lending agreements | ||||||||||||
Gross amounts recognized | $ | 116,900 | 106,248 | $ | 63,028 | 111,038 | ||||||
Gross amounts offset in consolidated balance sheet (1) | (15,248 | ) | (15,258 | ) | (13,640 | ) | (19,180 | ) | ||||
Net amounts in consolidated balance sheet | 101,652 | 90,990 | 49,388 | 91,858 | ||||||||
Collateral pledged but not netted in consolidated balance sheet | (101,476 | ) | (90,798 | ) | (49,147 | ) | (91,709 | ) | ||||
Net amount | $ | 176 | 192 | $ | 241 | 149 |
(1) | Represents recognized amount of resale and repurchase agreements with counterparties subject to enforceable MRAs that have been offset in the consolidated balance sheet. |
(2) | Includes |
(3) | Represents the fair value of collateral we have received under enforceable MRAs or MSLAs, limited |
(4) | Represents the amount of our exposure (assets) or obligation (liabilities) that is not collateralized and/or is not subject to an enforceable MRA or MSLA. |
(5) |
Amount is classified in short-term borrowings on our consolidated balance sheet. |
Represents the fair value of collateral we have pledged, related to enforceable MRAs or MSLAs, limited |
(in millions) | Jun 30, 2019 | Dec 31, 2018 | Jun 30, 2020 | Dec 31, 2019 | ||||||||||
Repurchase agreements: | ||||||||||||||
Securities of U.S. Treasury and federal agencies | $ | 49,622 | 38,408 | $ | 33,757 | 48,161 | ||||||||
Securities of U.S. States and political subdivisions | 97 | 159 | 54 | 104 | ||||||||||
Federal agency mortgage-backed securities | 43,346 | 47,241 | 9,751 | 44,737 | ||||||||||
Non-agency mortgage-backed securities | 1,754 | 1,875 | 1,103 | 1,818 | ||||||||||
Corporate debt securities | 8,132 | 6,191 | 9,273 | 7,126 | ||||||||||
Asset-backed securities | 2,258 | 2,074 | 1,008 | 1,844 | ||||||||||
Equity securities | 2,034 | 992 | 1,399 | 1,674 | ||||||||||
Other | 866 | 340 | 363 | 705 | ||||||||||
Total repurchases | 108,109 | 97,280 | 56,708 | 106,169 | ||||||||||
Securities lending arrangements: | ||||||||||||||
Securities of U.S. Treasury and federal agencies | 198 | 222 | 38 | 163 | ||||||||||
Federal agency mortgage-backed securities | — | 2 | 18 | — | ||||||||||
Corporate debt securities | 483 | 389 | 97 | 223 | ||||||||||
Equity securities (1) | 8,094 | 8,349 | 6,164 | 4,481 | ||||||||||
Other | 16 | 6 | 3 | 2 | ||||||||||
Total securities lending | 8,791 | 8,968 | 6,320 | 4,869 | ||||||||||
Total repurchases and securities lending | $ | 116,900 | 106,248 | $ | 63,028 | 111,038 |
(1) | Equity securities are generally exchange traded and represent collateral received from third parties that has been repledged. We received the collateral through either |
(in millions) | Overnight/continuous | Up to 30 days | 30-90 days | >90 days | Total gross obligation | Overnight/continuous | Up to 30 days | 30-90 days | >90 days | Total gross obligation | ||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||
Repurchase agreements | $ | 96,487 | 3,565 | 3,938 | 4,119 | 108,109 | $ | 44,823 | 3,430 | 4,970 | 3,485 | 56,708 | ||||||||||||||||||
Securities lending arrangements | 8,643 | — | 148 | — | 8,791 | 5,771 | — | 549 | — | 6,320 | ||||||||||||||||||||
Total repurchases and securities lending (1) | $ | 105,130 | 3,565 | 4,086 | 4,119 | 116,900 | $ | 50,594 | 3,430 | 5,519 | 3,485 | 63,028 | ||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||
Repurchase agreements | $ | 86,574 | 3,244 | 2,153 | 5,309 | 97,280 | $ | 79,793 | 17,681 | 4,825 | 3,870 | 106,169 | ||||||||||||||||||
Securities lending arrangements | 8,669 | — | 299 | — | 8,968 | 4,724 | — | 145 | — | 4,869 | ||||||||||||||||||||
Total repurchases and securities lending (1) | $ | 95,243 | 3,244 | 2,452 | 5,309 | 106,248 | $ | 84,517 | 17,681 | 4,970 | 3,870 | 111,038 |
(1) | Securities lending is executed under agreements that allow either party to terminate the transaction without notice, while repurchase agreements have a term structure to them that technically matures at a point in time. The overnight/continuous repurchase agreements require election of both parties to roll the trade rather than the election to terminate the arrangement as in securities lending. |
Note 14: Legal Actions |
Note 15: Derivatives |
June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||
Notional or contractual amount | Fair value | Notional or contractual amount | Fair value | Notional or contractual amount | Fair value | Notional or contractual amount | Fair value | |||||||||||||||||||||||||||||||
(in millions) | Derivative assets | Derivative liabilities | Derivative assets | Derivative liabilities | Derivative assets | Derivative liabilities | Derivative assets | Derivative liabilities | ||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 186,206 | 2,559 | 1,368 | 177,511 | 2,237 | 636 | $ | 192,835 | 3,701 | 2,035 | 182,789 | 2,595 | 1,237 | ||||||||||||||||||||||||
Foreign exchange contracts | 33,439 | 540 | 1,162 | 34,176 | 573 | 1,376 | 34,459 | 281 | 1,220 | 32,386 | 341 | 1,170 | ||||||||||||||||||||||||||
Total derivatives designated as qualifying hedging instruments | 3,099 | 2,530 | 2,810 | 2,012 | 3,982 | 3,255 | 2,936 | 2,407 | ||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||
Economic hedges: | ||||||||||||||||||||||||||||||||||||||
Interest rate contracts (2) | 255,760 | 692 | 290 | 173,215 | 849 | 369 | ||||||||||||||||||||||||||||||||
Interest rate contracts | 313,604 | 556 | 374 | 235,810 | 207 | 160 | ||||||||||||||||||||||||||||||||
Equity contracts | 17,374 | 1,213 | 658 | 13,920 | 1,362 | 79 | 22,616 | 1,294 | 100 | 19,263 | 1,126 | 224 | ||||||||||||||||||||||||||
Foreign exchange contracts | 20,829 | 212 | 85 | 19,521 | 225 | 80 | 52,349 | 1,062 | 196 | 26,595 | 118 | 286 | ||||||||||||||||||||||||||
Credit contracts – protection purchased | 220 | 38 | — | 100 | 27 | — | 99 | 35 | — | 1,400 | 27 | — | ||||||||||||||||||||||||||
Subtotal | 2,155 | 1,033 | 2,463 | 528 | 2,947 | 670 | 1,478 | 670 | ||||||||||||||||||||||||||||||
Customer accommodation trading and other derivatives: | ||||||||||||||||||||||||||||||||||||||
Interest rate contracts | 11,130,569 | 22,302 | 18,979 | 9,162,821 | 15,349 | 15,303 | 11,254,860 | 44,355 | 34,055 | 11,117,542 | 21,245 | 17,969 | ||||||||||||||||||||||||||
Commodity contracts | 72,255 | 1,424 | 1,936 | 66,173 | 1,588 | 2,336 | 77,608 | 2,039 | 3,741 | 79,737 | 1,421 | 1,770 | ||||||||||||||||||||||||||
Equity contracts | 246,045 | 6,164 | 8,520 | 217,890 | 6,183 | 5,931 | 303,271 | 9,375 | 11,986 | 272,145 | 7,410 | 10,240 | ||||||||||||||||||||||||||
Foreign exchange contracts | 353,918 | 4,803 | 5,021 | 364,982 | 5,916 | 5,657 | 302,847 | 5,088 | 6,043 | 364,469 | 4,755 | 4,791 | ||||||||||||||||||||||||||
Credit contracts – protection sold | 10,507 | 15 | 80 | 11,741 | 76 | 182 | 15,513 | 10 | 58 | 12,215 | 12 | 65 | ||||||||||||||||||||||||||
Credit contracts – protection purchased | 20,784 | 88 | 17 | 20,880 | 175 | 98 | 25,695 | 85 | 15 | 24,030 | 69 | 18 | ||||||||||||||||||||||||||
Subtotal | 34,796 | 34,553 | 29,287 | 29,507 | 60,952 | 55,898 | 34,912 | 34,853 | ||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | 36,951 | 35,586 | 31,750 | 30,035 | 63,899 | 56,568 | 36,390 | 35,523 | ||||||||||||||||||||||||||||||
Total derivatives before netting | 40,050 | 38,116 | 34,560 | 32,047 | 67,881 | 59,823 | 39,326 | 37,930 | ||||||||||||||||||||||||||||||
Netting | (26,888 | ) | (29,717 | ) | (23,790 | ) | (23,548 | ) | (45,105 | ) | (48,455 | ) | (25,123 | ) | (28,851 | ) | ||||||||||||||||||||||
Total | $ | 13,162 | 8,399 | 10,770 | 8,499 | $ | 22,776 | 11,368 | 14,203 | 9,079 |
(in millions) | Gross amounts recognized | Gross amounts offset in consolidated balance sheet (1) | Net amounts in consolidated balance sheet | Gross amounts not offset in consolidated balance sheet (Disclosure-only netting) (2) | Net amounts | Percent exchanged in over-the-counter market (3) | Gross amounts recognized | Gross amounts offset in consolidated balance sheet (1) | Net amounts in consolidated balance sheet | Gross amounts not offset in consolidated balance sheet (Disclosure-only netting) | Net amounts | Percent exchanged in over-the-counter market | ||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 25,553 | (16,558 | ) | 8,995 | (313 | ) | 8,682 | 95 | % | $ | 48,612 | (31,539 | ) | 17,073 | (1,318 | ) | 15,755 | 97 | % | ||||||||||||||||
Commodity contracts | 1,424 | (951 | ) | 473 | (1 | ) | 472 | 73 | 2,039 | (1,495 | ) | 544 | (3 | ) | 541 | 73 | ||||||||||||||||||||
Equity contracts | 7,377 | (5,041 | ) | 2,336 | (34 | ) | 2,302 | 71 | 10,669 | (7,076 | ) | 3,593 | (650 | ) | 2,943 | 67 | ||||||||||||||||||||
Foreign exchange contracts | 5,555 | (4,250 | ) | 1,305 | (8 | ) | 1,297 | 100 | 6,431 | (4,920 | ) | 1,511 | (4 | ) | 1,507 | 100 | ||||||||||||||||||||
Credit contracts – protection sold | 15 | (9 | ) | 6 | — | 6 | 74 | 10 | (8 | ) | 2 | — | 2 | 68 | ||||||||||||||||||||||
Credit contracts – protection purchased | 126 | (79 | ) | 47 | (1 | ) | 46 | 99 | 120 | (67 | ) | 53 | (2 | ) | 51 | 89 | ||||||||||||||||||||
Total derivative assets | $ | 40,050 | (26,888 | ) | 13,162 | (357 | ) | 12,805 | $ | 67,881 | (45,105 | ) | 22,776 | (1,977 | ) | 20,799 | ||||||||||||||||||||
Derivative liabilities | ||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 20,637 | (18,046 | ) | 2,591 | (848 | ) | 1,743 | 95 | % | $ | 36,464 | (33,777 | ) | 2,687 | (637 | ) | 2,050 | 96 | % | ||||||||||||||||
Commodity contracts | 1,936 | (738 | ) | 1,198 | — | 1,198 | 81 | 3,741 | (1,404 | ) | 2,337 | (2 | ) | 2,335 | 86 | |||||||||||||||||||||
Equity contracts | 9,178 | (5,934 | ) | 3,244 | (214 | ) | 3,030 | 84 | 12,086 | (7,361 | ) | 4,725 | (242 | ) | 4,483 | 73 | ||||||||||||||||||||
Foreign exchange contracts | 6,268 | (4,918 | ) | 1,350 | (197 | ) | 1,153 | 100 | 7,459 | (5,855 | ) | 1,604 | (59 | ) | 1,545 | 100 | ||||||||||||||||||||
Credit contracts – protection sold | 80 | (75 | ) | 5 | (3 | ) | 2 | 99 | 58 | (54 | ) | 4 | — | 4 | 95 | |||||||||||||||||||||
Credit contracts – protection purchased | 17 | (6 | ) | 11 | — | 11 | 98 | 15 | (4 | ) | 11 | — | 11 | 84 | ||||||||||||||||||||||
Total derivative liabilities | $ | 38,116 | (29,717 | ) | 8,399 | (1,262 | ) | 7,137 | $ | 59,823 | (48,455 | ) | 11,368 | (940 | ) | 10,428 | ||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 18,435 | (12,029 | ) | 6,406 | (80 | ) | 6,326 | 90 | % | $ | 24,047 | (14,878 | ) | 9,169 | (445 | ) | 8,724 | 95 | % | ||||||||||||||||
Commodity contracts | 1,588 | (849 | ) | 739 | (4 | ) | 735 | 57 | 1,421 | (888 | ) | 533 | (2 | ) | 531 | 80 | ||||||||||||||||||||
Equity contracts | 7,545 | (5,318 | ) | 2,227 | (755 | ) | 1,472 | 78 | 8,536 | (5,570 | ) | 2,966 | (69 | ) | 2,897 | 65 | ||||||||||||||||||||
Foreign exchange contracts | 6,714 | (5,355 | ) | 1,359 | (35 | ) | 1,324 | 100 | 5,214 | (3,722 | ) | 1,492 | (22 | ) | 1,470 | 100 | ||||||||||||||||||||
Credit contracts – protection sold | 76 | (73 | ) | 3 | — | 3 | 12 | 12 | (9 | ) | 3 | — | 3 | 84 | ||||||||||||||||||||||
Credit contracts – protection purchased | 202 | (166 | ) | 36 | (1 | ) | 35 | 78 | 96 | (56 | ) | 40 | (1 | ) | 39 | 97 | ||||||||||||||||||||
Total derivative assets | $ | 34,560 | (23,790 | ) | 10,770 | (875 | ) | 9,895 | $ | 39,326 | (25,123 | ) | 14,203 | (539 | ) | 13,664 | ||||||||||||||||||||
Derivative liabilities | ||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 16,308 | (13,152 | ) | 3,156 | (567 | ) | 2,589 | 92 | % | $ | 19,366 | (16,595 | ) | 2,771 | (545 | ) | 2,226 | 94 | % | ||||||||||||||||
Commodity contracts | 2,336 | (727 | ) | 1,609 | (8 | ) | 1,601 | 85 | 1,770 | (677 | ) | 1,093 | (2 | ) | 1,091 | 82 | ||||||||||||||||||||
Equity contracts | 6,010 | (3,877 | ) | 2,133 | (110 | ) | 2,023 | 75 | 10,464 | (6,647 | ) | 3,817 | (319 | ) | 3,498 | 81 | ||||||||||||||||||||
Foreign exchange contracts | 7,113 | (5,522 | ) | 1,591 | (188 | ) | 1,403 | 100 | 6,247 | (4,866 | ) | 1,381 | (169 | ) | 1,212 | 100 | ||||||||||||||||||||
Credit contracts – protection sold | 182 | (180 | ) | 2 | (2 | ) | — | 67 | 65 | (60 | ) | 5 | (3 | ) | 2 | 98 | ||||||||||||||||||||
Credit contracts – protection purchased | 98 | (90 | ) | 8 | — | 8 | 11 | 18 | (6 | ) | 12 | — | 12 | 93 | ||||||||||||||||||||||
Total derivative liabilities | $ | 32,047 | (23,548 | ) | 8,499 | (875 | ) | 7,624 | $ | 37,930 | (28,851 | ) | 9,079 | (1,038 | ) | 8,041 |
(1) | Represents amounts with counterparties subject to enforceable master netting arrangements that have been offset in the consolidated balance sheet, including related cash collateral and portfolio level counterparty valuation adjustments. Counterparty valuation adjustments |
Net interest income | Noninterest income | |||||||||||||||
(in millions) | Debt securities | Loans | Mortgage loans held for sale | Deposits | Long-term debt | Other | Total | |||||||||
Quarter ended June 30, 2019 | ||||||||||||||||
Total amounts presented in the consolidated statement of income | $ | 3,781 | 11,316 | 195 | (2,213 | ) | (1,900 | ) | 744 | 11,923 | ||||||
Gains (losses) on fair value hedging relationships | ||||||||||||||||
Interest contracts | ||||||||||||||||
Amounts related to interest settlements on derivatives (1) | 14 | — | — | (7 | ) | 7 | — | 14 | ||||||||
Recognized on derivatives | (1,089 | ) | — | (25 | ) | 351 | 2,947 | — | 2,184 | |||||||
Recognized on hedged items | 1,096 | — | 24 | (343 | ) | (2,890 | ) | — | (2,113 | ) | ||||||
Foreign exchange contracts | ||||||||||||||||
Amounts related to interest settlements on derivatives (1)(2) | 10 | — | — | — | (128 | ) | — | (118 | ) | |||||||
Recognized on derivatives (3) | (5 | ) | — | — | — | 205 | 326 | 526 | ||||||||
Recognized on hedged items | 4 | — | — | — | (186 | ) | (315 | ) | (497 | ) | ||||||
Net income (expense) recognized on fair value hedges | 30 | — | (1 | ) | 1 | (45 | ) | 11 | (4 | ) | ||||||
Gains (losses) on cash flow hedging relationships | ||||||||||||||||
Interest contracts | ||||||||||||||||
Realized gains (losses) (pre-tax) reclassified from cumulative OCI into net income (4) | — | (77 | ) | — | — | 1 | — | (76 | ) | |||||||
Foreign exchange contracts | ||||||||||||||||
Realized gains (losses) (pre-tax) reclassified from cumulative OCI into net income (4) | $ | — | — | — | — | (3 | ) | — | (3 | ) | ||||||
Net income (expense) recognized on cash flow hedges | $ | — | (77 | ) | — | — | (2 | ) | — | (79 | ) | |||||
Six months ended June 30, 2019 | ||||||||||||||||
Total amounts presented in the consolidated statement of income | $ | 7,722 | 22,670 | 347 | (4,239 | ) | (3,827 | ) | 1,318 | 23,991 | ||||||
Gains (losses) on fair value hedging relationships: | ||||||||||||||||
Interest contracts | ||||||||||||||||
Amounts related to interest settlements on derivatives (1) | 30 | — | — | (30 | ) | — | — | — | ||||||||
Recognized on derivatives | (1,903 | ) | — | (33 | ) | 558 | 4,933 | — | 3,555 | |||||||
Recognized on hedged items | 1,913 | — | 31 | (533 | ) | (4,837 | ) | — | (3,426 | ) | ||||||
Foreign exchange contracts | ||||||||||||||||
Amounts related to interest settlements on derivatives (1)(2) | 20 | — | — | — | (270 | ) | — | (250 | ) | |||||||
Recognized on derivatives (3) | (9 | ) | — | — | — | 497 | (76 | ) | 412 | |||||||
Recognized on hedged items | 9 | — | — | — | (452 | ) | 76 | (367 | ) | |||||||
Net income (expense) recognized on fair value hedges | 60 | — | (2 | ) | (5 | ) | (129 | ) | — | (76 | ) | |||||
Gains (losses) on cash flow hedging relationships: | ||||||||||||||||
Interest contracts | ||||||||||||||||
Realized gains (losses) (pre-tax) reclassified from cumulative OCI into net income (4) | — | (155 | ) | — | — | 1 | — | (154 | ) | |||||||
Foreign exchange contracts | ||||||||||||||||
Realized gains (losses) (pre-tax) reclassified from cumulative OCI into net income (4) | — | — | — | — | (4 | ) | — | (4 | ) | |||||||
Net income (expense) recognized on cash flow hedges | $ | — | (155 | ) | — | — | (3 | ) | — | (158 | ) |
Net interest income | Noninterest income | Total recorded in net income | Total recorded in OCI | ||||||||||||||||
(in millions) | Debt securities | Mortgage loans held for sale | Deposits | Long-term debt | Other | Derivative gains (losses) | Derivative gains (losses) | ||||||||||||
Quarter ended June 30, 2020 | |||||||||||||||||||
Total amounts presented in the consolidated statement of income and other comprehensive income | $ | 2,946 | 230 | (585 | ) | (1,237 | ) | 97 | N/A | 3 | |||||||||
Interest contracts: | |||||||||||||||||||
Amounts related to interest settlements on derivatives | (93 | ) | — | 152 | 428 | — | 487 | ||||||||||||
Recognized on derivatives | (21 | ) | (3 | ) | (86 | ) | 549 | — | 439 | — | |||||||||
Recognized on hedged items | 63 | 4 | 77 | (618 | ) | — | (474 | ) | |||||||||||
Total gains (losses) (pre-tax) on interest rate contracts | (51 | ) | 1 | 143 | 359 | — | 452 | — | |||||||||||
Foreign exchange contracts: | |||||||||||||||||||
Amounts related to interest settlements on derivatives | 11 | — | — | (46 | ) | — | (35 | ) | |||||||||||
Recognized on derivatives | (1 | ) | — | — | 117 | 709 | 825 | (57 | ) | ||||||||||
Recognized on hedged items | 1 | — | — | (70 | ) | (684 | ) | (753 | ) | ||||||||||
Total gains (losses) (pre-tax) on foreign exchange contracts | 11 | — | — | 1 | 25 | 37 | (57 | ) | |||||||||||
Total gains (losses) (pre-tax) recognized on fair value hedges | $ | (40 | ) | $ | 1 | $ | 143 | $ | 360 | 25 | 489 | (57 | ) | ||||||
Six months ended June 30, 2020 | |||||||||||||||||||
Total amounts presented in the consolidated statement of income and other comprehensive income | $ | 6,418 | 427 | (2,327 | ) | (2,477 | ) | 564 | N/A | 185 | |||||||||
Interest contracts: | |||||||||||||||||||
Amounts related to interest settlements on derivatives | (139 | ) | — | 222 | 602 | — | 685 | ||||||||||||
Recognized on derivatives | (1,892 | ) | (53 | ) | 444 | 10,324 | — | 8,823 | — | ||||||||||
Recognized on hedged items | 1,919 | 54 | (434 | ) | (10,044 | ) | — | (8,505 | ) | ||||||||||
Total gains (losses) (pre-tax) on interest rate contracts | (112 | ) | 1 | 232 | 882 | — | 1,003 | — | |||||||||||
Foreign exchange contracts: | |||||||||||||||||||
Amounts related to interest settlements on derivatives | 17 | — | — | (131 | ) | — | (114 | ) | |||||||||||
Recognized on derivatives | (2 | ) | — | — | 224 | (76 | ) | 146 | 87 | ||||||||||
Recognized on hedged items | 3 | — | — | (244 | ) | 80 | (161 | ) | |||||||||||
Total gains (losses) (pre-tax) on foreign exchange contracts | 18 | — | — | (151 | ) | 4 | (129 | ) | 87 | ||||||||||
Total gains (losses) (pre-tax) recognized on fair value hedges | $ | (94 | ) | 1 | 232 | 731 | 4 | 874 | 87 |
Net interest income | Noninterest income | Total recorded in net income | Total recorded in OCI | |||||||||||||
(in millions) | Debt securities | Mortgage loans held for sale | Deposits | Long-term debt | Other | Derivative gains (losses) | Derivative gains (losses) | |||||||||
Quarter ended June 30, 2019 | ||||||||||||||||
Total amounts presented in the consolidated statement of income and other comprehensive income | $ | 3,781 | 195 | (2,213 | ) | (1,900 | ) | 837 | N/A | 136 | ||||||
Interest contracts: | ||||||||||||||||
Amounts related to interest settlements on derivatives | 14 | — | (7 | ) | 7 | — | 14 | |||||||||
Recognized on derivatives | (1,089 | ) | (25 | ) | 351 | 2,947 | — | 2,184 | — | |||||||
Recognized on hedged items | 1,096 | 24 | (343 | ) | (2,890 | ) | — | (2,113 | ) | |||||||
Total gains (losses) (pre-tax) on interest rate contracts | 21 | (1 | ) | 1 | 64 | — | 85 | — | ||||||||
Foreign exchange contracts: | ||||||||||||||||
Amounts related to interest settlements on derivatives | 10 | — | — | (128 | ) | — | (118 | ) | ||||||||
Recognized on derivatives | (5 | ) | — | — | 205 | 326 | 526 | 56 | ||||||||
Recognized on hedged items | 4 | — | — | (186 | ) | (315 | ) | (497 | ) | |||||||
Total gains (losses) (pre-tax) on foreign exchange contracts | 9 | — | — | (109 | ) | 11 | (89 | ) | 56 | |||||||
Total gains (losses) (pre-tax) recognized on fair value hedges | $ | 30 | (1 | ) | 1 | (45 | ) | 11 | (4 | ) | 56 | |||||
Six months ended June 30, 2019 | ||||||||||||||||
Total amounts presented in the consolidated statement of income and other comprehensive income | $ | 7,722 | 347 | (4,239 | ) | (3,827 | ) | 1,507 | N/A | 180 | ||||||
Interest contracts: | ||||||||||||||||
Amounts related to interest settlements on derivatives | 30 | — | (30 | ) | — | — | — | |||||||||
Recognized on derivatives | (1,903 | ) | (33 | ) | 558 | 4,933 | — | 3,555 | — | |||||||
Recognized on hedged items | 1,913 | 31 | (533 | ) | (4,837 | ) | — | (3,426 | ) | |||||||
Total gains (losses) (pre-tax) on interest rate contracts | 40 | (2 | ) | (5 | ) | 96 | — | 129 | — | |||||||
Foreign exchange contracts: | ||||||||||||||||
Amounts related to interest settlements on derivatives | 20 | — | — | (270 | ) | — | (250 | ) | ||||||||
Recognized on derivatives | (9 | ) | — | — | 497 | (76 | ) | 412 | 30 | |||||||
Recognized on hedged items | 9 | — | — | (452 | ) | 76 | (367 | ) | ||||||||
Total gains (losses) (pre-tax) on foreign exchange contracts | 20 | — | — | (225 | ) | — | (205 | ) | 30 | |||||||
Total gains (losses) (pre-tax) recognized on fair value hedges | $ | 60 | (2 | ) | (5 | ) | (129 | ) | — | (76 | ) | 30 |
Net interest Income | Total recorded in net income | Total recorded in OCI | |||||||||
(in millions) | Loans | Long-term debt | Derivative gains (losses) | Derivative gains (losses) | |||||||
Quarter ended June 30, 2020 | |||||||||||
Total amounts presented in the consolidated statement of income and other comprehensive income | $ | 8,448 | (1,237 | ) | N/A | 3 | |||||
Interest rate contracts: | |||||||||||
Realized gains (losses) (pre-tax) reclassified from OCI into net income | (53 | ) | 1 | (52 | ) | 52 | |||||
Net unrealized gains (losses) (pre-tax) recognized in OCI | N/A | N/A | N/A | — | |||||||
Total gains (losses) (pre-tax) on interest rate contracts | (53 | ) | 1 | (52 | ) | 52 | |||||
Foreign exchange contracts: | |||||||||||
Realized gains (losses) (pre-tax) reclassified from OCI into net income | — | (3 | ) | (3 | ) | 3 | |||||
Net unrealized gains (losses) (pre-tax) recognized in OCI | N/A | N/A | N/A | 5 | |||||||
Total gains (losses) (pre-tax) on foreign exchange contracts | — | (3 | ) | (3 | ) | 8 | |||||
Total gains (losses) (pre-tax) recognized on cash flow hedges | $ | (53 | ) | $ | (2 | ) | (55 | ) | 60 | ||
Six months ended June 30, 2020 | |||||||||||
Total amounts presented in the consolidated statement of income and other comprehensive income | $ | 18,513 | (2,477 | ) | N/A | 185 | |||||
Interest rate contracts: | |||||||||||
Realized gains (losses) (pre-tax) reclassified from OCI into net income | (109 | ) | 1 | (108 | ) | 108 | |||||
Net unrealized gains (losses) (pre-tax) recognized in OCI | N/A | N/A | N/A | — | |||||||
Total gains (losses) (pre-tax) on interest rate contracts | (109 | ) | 1 | (108 | ) | 108 | |||||
Foreign exchange contracts: | |||||||||||
Realized gains (losses) (pre-tax) reclassified from OCI into net income | — | (5 | ) | (5 | ) | 5 | |||||
Net unrealized gains (losses) (pre-tax) recognized in OCI | N/A | N/A | N/A | (15 | ) | ||||||
Total gains (losses) (pre-tax) on foreign exchange contracts | — | (5 | ) | (5 | ) | (10 | ) | ||||
Total gains (losses) (pre-tax) recognized on cash flow hedges | $ | (109 | ) | (4 | ) | (113 | ) | 98 | |||
Quarter ended June 30, 2019 | |||||||||||
Total amounts presented in the consolidated statement of income and other comprehensive income | $ | 11,316 | (1,900 | ) | N/A | 136 | |||||
Interest rate contracts: | |||||||||||
Realized gains (losses) (pre-tax) reclassified from OCI into net income | (77 | ) | 1 | (76 | ) | 76 | |||||
Net unrealized gains (losses) (pre-tax) recognized in OCI | N/A | N/A | N/A | — | |||||||
Total gains (losses) (pre-tax) on interest rate contracts | (77 | ) | 1 | (76 | ) | 76 | |||||
Foreign exchange contracts: | |||||||||||
Realized gains (losses) (pre-tax) reclassified from OCI into net income | — | (3 | ) | (3 | ) | 3 | |||||
Net unrealized gains (losses) (pre-tax) recognized in OCI | N/A | N/A | N/A | 1 | |||||||
Total gains (losses) (pre-tax) on foreign exchange contracts | — | (3 | ) | (3 | ) | 4 | |||||
Total gains (losses) (pre-tax) recognized on cash flow hedges | $ | (77 | ) | (2 | ) | (79 | ) | 80 | |||
Six months ended June 30, 2019 | |||||||||||
Total amounts presented in the consolidated statement of income and other comprehensive income | $ | 22,670 | (3,827 | ) | N/A | 180 | |||||
Interest rate contracts: | |||||||||||
Realized gains (losses) (pre-tax) reclassified from OCI into net income | (155 | ) | 1 | (154 | ) | 154 | |||||
Net unrealized gains (losses) (pre-tax) recognized in OCI | N/A | N/A | N/A | — | |||||||
Total gains (losses) (pre-tax) on interest rate contracts | (155 | ) | 1 | (154 | ) | 154 | |||||
Foreign exchange contracts: | |||||||||||
Realized gains (losses) (pre-tax) reclassified from OCI into net income | — | (4 | ) | (4 | ) | 4 | |||||
Net unrealized gains (losses) (pre-tax) recognized in OCI | N/A | N/A | N/A | (8 | ) | ||||||
Total gains (losses) (pre-tax) on foreign exchange contracts | — | (4 | ) | (4 | ) | (4 | ) | ||||
Total gains (losses) (pre-tax) recognized on cash flow hedges | $ | (155 | ) | (3 | ) | (158 | ) | 150 |
(continued from previous page) | ||||||||||||||||
Net interest income | Noninterest income | |||||||||||||||
(in millions) | Debt securities | Loans | Mortgage loans held for sale | Deposits | Long-term debt | Other | Total | |||||||||
Quarter ended June 30, 2018 | ||||||||||||||||
Total amounts presented in the consolidated statement of income | $ | 3,594 | 10,912 | 198 | (1,268 | ) | (1,658 | ) | 485 | 12,263 | ||||||
Gains (losses) on fair value hedging relationships: | ||||||||||||||||
Interest contracts | ||||||||||||||||
Amounts related to interest settlements on derivatives (1) | (42 | ) | — | (1 | ) | (20 | ) | 81 | — | 18 | ||||||
Recognized on derivatives | 356 | — | 5 | (41 | ) | (819 | ) | — | (499 | ) | ||||||
Recognized on hedged items | (352 | ) | — | (7 | ) | 31 | 780 | — | 452 | |||||||
Foreign exchange contracts | ||||||||||||||||
Amounts related to interest settlements on derivatives (1)(2) | 10 | — | — | — | (102 | ) | — | (92 | ) | |||||||
Recognized on derivatives (3) | 2 | — | — | — | 97 | (1,410 | ) | (1,311 | ) | |||||||
Recognized on hedged items | 1 | — | — | — | (82 | ) | 1,308 | 1,227 | ||||||||
Net income (expense) recognized on fair value hedges | (25 | ) | — | (3 | ) | (30 | ) | (45 | ) | (102 | ) | (205 | ) | |||
Gains (losses) on cash flow hedging relationships: | ||||||||||||||||
Interest contracts | ||||||||||||||||
Realized gains (losses) (pre-tax) reclassified from cumulative OCI into net income (4) | — | (77 | ) | — | — | — | — | (77 | ) | |||||||
Foreign exchange contracts | ||||||||||||||||
Realized gains (losses) (pre-tax) reclassified from cumulative OCI into net income (4) | — | — | — | — | — | — | — | |||||||||
Net income (expense) recognized on cash flow hedges | $ | — | (77 | ) | — | — | — | — | (77 | ) | ||||||
Six months ended June 30, 2018 | ||||||||||||||||
Total amounts presented in the consolidated statement of income | $ | 7,008 | 21,491 | 377 | (2,358 | ) | (3,234 | ) | 1,087 | 24,371 | ||||||
Gains (losses) on fair value hedging relationships: | ||||||||||||||||
Interest contracts | ||||||||||||||||
Amounts related to interest settlements on derivatives (1) | (124 | ) | — | (2 | ) | (25 | ) | 252 | — | 101 | ||||||
Recognized on derivatives | 1,306 | 1 | 11 | (190 | ) | (3,212 | ) | — | (2,084 | ) | ||||||
Recognized on hedged items | (1,320 | ) | (1 | ) | (15 | ) | 172 | 3,114 | — | 1,950 | ||||||
Foreign exchange contracts | ||||||||||||||||
Amounts related to interest settlements on derivatives (1)(2) | 15 | — | — | — | (182 | ) | — | (167 | ) | |||||||
Recognized on derivatives (3) | 6 | — | — | — | (74 | ) | (750 | ) | (818 | ) | ||||||
Recognized on hedged items | (2 | ) | — | — | — | 27 | 681 | 706 | ||||||||
Net income (expense) recognized on fair value hedges | (119 | ) | — | (6 | ) | (43 | ) | (75 | ) | (69 | ) | (312 | ) | |||
Gains (losses) on cash flow hedging relationships: | ||||||||||||||||
Interest contracts | ||||||||||||||||
Realized gains (losses) (pre-tax) reclassified from cumulative OCI into net income (4) | — | (137 | ) | — | — | — | — | (137 | ) | |||||||
Foreign exchange contracts | ||||||||||||||||
Realized gains (losses) (pre-tax) reclassified from cumulative OCI into net income (4) | — | — | — | — | — | — | — | |||||||||
Net income (expense) recognized on cash flow hedges | $ | — | (137 | ) | — | — | — | — | (137 | ) |
Hedged Items Currently Designated | Hedged Items No Longer Designated (1) | Hedged Items Currently Designated | Hedged Items No Longer Designated (1) | |||||||||||||||||
(in millions) | Carrying Amount of Assets/(Liabilities) (2)(4) | Hedge Accounting Basis Adjustment Assets/(Liabilities) (3) | Carrying Amount of Assets/(Liabilities) (4) | Hedge Accounting Basis Adjustment Assets/(Liabilities) | Carrying Amount of Assets/(Liabilities) (2)(4) | Hedge Accounting Basis Adjustment Assets/(Liabilities) (3) | Carrying Amount of Assets/(Liabilities) (4) | Hedge Accounting Basis Adjustment Assets/(Liabilities) | ||||||||||||
June 30, 2019 | ||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||
Available-for-sale debt securities (5) | $ | 39,478 | 1,226 | 5,704 | 110 | $ | 29,585 | 2,560 | 8,952 | 269 | ||||||||||
Mortgage loans held for sale | 852 | 16 | 388 | 4 | 233 | 10 | — | — | ||||||||||||
Deposits | (56,584 | ) | (425 | ) | — | — | (35,247 | ) | (761 | ) | — | — | ||||||||
Long-term debt | (115,922 | ) | (5,999 | ) | (25,638 | ) | 270 | (166,000 | ) | (16,022 | ) | (21,254 | ) | 92 | ||||||
December 31, 2018 | ||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Available-for-sale debt securities (5) | 37,857 | (157 | ) | 4,938 | 238 | $ | 36,896 | 1,110 | 9,486 | 278 | ||||||||||
Mortgage loans held for sale | 448 | 7 | — | — | 961 | (12 | ) | — | — | |||||||||||
Deposits | (56,535 | ) | 115 | — | — | (43,716 | ) | (324 | ) | — | — | |||||||||
Long-term debt | (104,341 | ) | (742 | ) | (25,539 | ) | 366 | (127,423 | ) | (5,827 | ) | (25,750 | ) | 173 |
(1) | Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance sheet date. |
(2) | Does not include the carrying amount of hedged items where only foreign currency risk is the designated hedged risk. The carrying amount excluded |
(3) | The balance includes |
(4) | Represents the full carrying amount of the hedged asset or liability item as of the balance sheet date, except for circumstances in which only a portion of the asset or liability was designated as the hedged item in which case only the portion designated is presented. |
(5) | Carrying amount represents the amortized cost. |
Noninterest income | Noninterest Expense | |||||||||||||
(in millions) | Mortgage banking | Net gains (losses) from equity securities | Net gains (losses) from trading activities | Other | Total | Personnel expense | ||||||||
Quarter ended June 30, 2020 | ||||||||||||||
Net gains (losses) recognized on economic hedges derivatives: | ||||||||||||||
Interest contracts (1) | $ | 142 | — | — | (74 | ) | 68 | — | ||||||
Equity contracts | — | (1,402 | ) | — | (6 | ) | (1,408 | ) | (141 | ) | ||||
Foreign exchange contracts | — | — | — | (55 | ) | (55 | ) | — | ||||||
Credit contracts | — | — | — | 1 | 1 | — | ||||||||
Subtotal | 142 | (1,402 | ) | — | (134 | ) | (1,394 | ) | (141 | ) | ||||
Net gains (losses) recognized on customer accommodation trading and other derivatives: | ||||||||||||||
Interest contracts | 546 | — | 676 | — | 1,222 | — | ||||||||
Commodity contracts | — | — | (224 | ) | — | (224 | ) | — | ||||||
Equity contracts | — | — | (2,348 | ) | (145 | ) | (2,493 | ) | — | |||||
Foreign exchange contracts | — | — | 155 | — | 155 | — | ||||||||
Credit contracts | — | — | (134 | ) | — | (134 | ) | — | ||||||
Subtotal | 546 | — | (1,875 | ) | (145 | ) | (1,474 | ) | — | |||||
Net gains (losses) recognized related to derivatives not designated as hedging instruments | $ | 688 | (1,402 | ) | (1,875 | ) | (279 | ) | (2,868 | ) | (141 | ) | ||
Six months ended June 30, 2020 | ||||||||||||||
Net gains (losses) recognized on economic hedges derivatives: | ||||||||||||||
Interest contracts (1) | $ | 2,613 | — | — | (45 | ) | 2,568 | — | ||||||
Equity contracts | — | (183 | ) | — | (34 | ) | (217 | ) | (141 | ) | ||||
Foreign exchange contracts | — | — | — | 572 | 572 | — | ||||||||
Credit contracts | — | — | — | 17 | 17 | — | ||||||||
Subtotal | 2,613 | (183 | ) | — | 510 | 2,940 | (141 | ) | ||||||
Net gains (losses) recognized on customer accommodation trading and other derivatives: | ||||||||||||||
Interest contracts | 1,099 | — | (1,787 | ) | — | (688 | ) | — | ||||||
Commodity contracts | — | — | (112 | ) | — | (112 | ) | — | ||||||
Equity contracts | — | — | 2,401 | (72 | ) | 2,329 | — | |||||||
Foreign exchange contracts | — | — | (402 | ) | — | (402 | ) | — | ||||||
Credit contracts | — | — | 147 | — | 147 | — | ||||||||
Subtotal | 1,099 | — | 247 | (72 | ) | 1,274 | — | |||||||
Net gains (losses) recognized related to derivatives not designated as hedging instruments | $ | 3,712 | (183 | ) | 247 | 438 | 4,214 | (141 | ) |
Noninterest income | |||||||||||
(in millions) | Mortgage banking | Net gains (losses) from equity securities | Net gains (losses) from trading activities | Other | Total | ||||||
Quarter ended June 30, 2019 | |||||||||||
Net gains (losses) recognized on economic hedges derivatives: | |||||||||||
Interest contracts (1) | $ | 872 | — | — | 2 | 874 | |||||
Equity contracts | — | (658 | ) | — | (7 | ) | (665 | ) | |||
Foreign exchange contracts | — | — | — | 164 | 164 | ||||||
Credit contracts | — | — | — | (5 | ) | (5 | ) | ||||
Subtotal (2) | 872 | (658 | ) | — | 154 | 368 | |||||
Net gains (losses) recognized on customer accommodation trading and other derivatives: | |||||||||||
Interest contracts (3) | 179 | — | (222 | ) | — | (43 | ) | ||||
Commodity contracts | — | — | 27 | — | 27 | ||||||
Equity contracts | — | — | (1,110 | ) | (133 | ) | (1,243 | ) | |||
Foreign exchange contracts | — | — | (83 | ) | — | (83 | ) | ||||
Credit contracts | — | — | (16 | ) | — | (16 | ) | ||||
Subtotal | 179 | — | (1,404 | ) | (133 | ) | (1,358 | ) | |||
Net gains (losses) recognized related to derivatives not designated as hedging instruments | $ | 1,051 | (658 | ) | (1,404 | ) | 21 | (990 | ) | ||
Six months ended June 30, 2019 | |||||||||||
Net gains (losses) recognized on economic hedges derivatives: | |||||||||||
Interest contracts (1) | $ | 1,683 | — | — | 7 | 1,690 | |||||
Equity contracts | — | (1,543 | ) | — | — | (1,543 | ) | ||||
Foreign exchange contracts | — | — | — | 140 | 140 | ||||||
Credit contracts | — | — | — | 10 | 10 | ||||||
Subtotal (2) | 1,683 | (1,543 | ) | — | 157 | 297 | |||||
Net gains (losses) recognized on customer accommodation trading and other derivatives: | |||||||||||
Interest contracts (3) | 297 | — | (506 | ) | — | (209 | ) | ||||
Commodity contracts | — | — | 78 | — | 78 | ||||||
Equity contracts | — | — | (3,259 | ) | (406 | ) | (3,665 | ) | |||
Foreign exchange contracts | — | — | (69 | ) | — | (69 | ) | ||||
Credit contracts | — | — | (60 | ) | — | (60 | ) | ||||
Subtotal | 297 | — | (3,816 | ) | (406 | ) | (3,925 | ) | |||
Net gains (losses) recognized related to derivatives not designated as hedging instruments | $ | 1,980 | (1,543 | ) | (3,816 | ) | (249 | ) | (3,628 | ) |
(continued from previous page) | ||||||||||||||||||||||
Noninterest income | Noninterest income | |||||||||||||||||||||
(in millions) | Mortgage banking | Net gains (losses) from equity securities | Net gains (losses) from trading activities | Other | Total | Mortgage banking | Net gains (losses) from equity securities | Net gains (losses) from trading activities | Other | Total | ||||||||||||
Quarter ended June 30, 2018 | ||||||||||||||||||||||
Quarter ended June 30, 2019 | ||||||||||||||||||||||
Net gains (losses) recognized on economic hedges derivatives: | ||||||||||||||||||||||
Interest contracts (1) | $ | (185 | ) | — | — | (3 | ) | (188 | ) | $ | 872 | — | — | 2 | 874 | |||||||
Equity contracts | — | (540 | ) | — | 5 | (535 | ) | — | (658 | ) | — | (7 | ) | (665 | ) | |||||||
Foreign exchange contracts | — | — | — | 486 | 486 | — | — | — | 164 | 164 | ||||||||||||
Credit contracts | — | — | — | (10 | ) | (10 | ) | — | — | — | (5 | ) | (5 | ) | ||||||||
Subtotal (2) | (185 | ) | (540 | ) | — | 478 | (247 | ) | ||||||||||||||
Subtotal | 872 | (658 | ) | — | 154 | 368 | ||||||||||||||||
Net gains (losses) recognized on customer accommodation trading and other derivatives: | ||||||||||||||||||||||
Interest contracts | (46 | ) | — | 182 | — | 136 | 179 | — | (222 | ) | — | (43 | ) | |||||||||
Commodity contracts | — | — | 35 | — | 35 | — | — | 27 | — | 27 | ||||||||||||
Equity contracts | — | — | 655 | (71 | ) | 584 | — | — | (1,110 | ) | (133 | ) | (1,243 | ) | ||||||||
Foreign exchange contracts | — | — | 91 | — | 91 | — | — | (83 | ) | — | (83 | ) | ||||||||||
Credit contracts | — | — | (4 | ) | — | (4 | ) | — | — | (16 | ) | — | (16 | ) | ||||||||
Subtotal | (46 | ) | — | 959 | (71 | ) | 842 | 179 | — | (1,404 | ) | (133 | ) | (1,358 | ) | |||||||
Net gains (losses) recognized related to derivatives not designated as hedging instruments | $ | (231 | ) | (540 | ) | 959 | 407 | 595 | $ | 1,051 | (658 | ) | (1,404 | ) | 21 | (990 | ) | |||||
Six months ended June 30, 2018 | ||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||
Net gains (losses) recognized on economic hedges derivatives: | ||||||||||||||||||||||
Interest contracts (1) | $ | (780 | ) | — | — | 6 | (774 | ) | $ | 1,683 | — | — | 7 | 1,690 | ||||||||
Equity contracts | — | (598 | ) | — | 5 | (593 | ) | — | (1,543 | ) | — | — | (1,543 | ) | ||||||||
Foreign exchange contracts | — | — | — | 327 | 327 | — | — | — | 140 | 140 | ||||||||||||
Credit contracts | — | — | — | (6 | ) | (6 | ) | — | — | — | 10 | 10 | ||||||||||
Subtotal (2) | (780 | ) | (598 | ) | — | 332 | (1,046 | ) | ||||||||||||||
Subtotal | 1,683 | (1,543 | ) | — | 157 | 297 | ||||||||||||||||
Net gains (losses) recognized on customer accommodation trading and other derivatives: | ||||||||||||||||||||||
Interest contracts | (305 | ) | — | 567 | — | 262 | 297 | — | (506 | ) | — | (209 | ) | |||||||||
Commodity contracts | — | — | 74 | — | 74 | — | — | 78 | — | 78 | ||||||||||||
Equity contracts | — | — | 1,114 | (266 | ) | 848 | — | — | (3,259 | ) | (406 | ) | (3,665 | ) | ||||||||
Foreign exchange contracts | — | — | 401 | — | 401 | — | — | (69 | ) | — | (69 | ) | ||||||||||
Credit contracts | — | — | 6 | — | 6 | — | — | (60 | ) | — | (60 | ) | ||||||||||
Subtotal | (305 | ) | — | 2,162 | (266 | ) | 1,591 | 297 | — | (3,816 | ) | (406 | ) | (3,925 | ) | |||||||
Net gains (losses) recognized related to derivatives not designated as hedging instruments | $ | (1,085 | ) | (598 | ) | 2,162 | 66 | 545 | $ | 1,980 | (1,543 | ) | (3,816 | ) | (249 | ) | (3,628 | ) |
(1) | Mortgage banking amounts for the second quarter and first half of |
Notional amount | Notional amount | |||||||||||||||||||||||||||||||||||||||||
(in millions) | Fair value liability | Protection sold (A) | Protection sold – non- investment grade | Protection purchased with identical underlyings (B) | Net protection sold (A) - (B) | Other protection purchased | Range of maturities | Fair value asset | Fair value liability | Protection sold (A) | Protection sold – non- investment grade | Protection purchased with identical underlyings (B) | Net protection sold (A) - (B) | Other protection purchased | Range of maturities | |||||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||
Credit default swaps on: | ||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | $ | 1 | 1,995 | 472 | 1,362 | 633 | 2,021 | 2019 - 2029 | $ | 7 | 2 | 3,433 | 827 | 2,508 | 925 | 2,971 | 2020 - 2029 | |||||||||||||||||||||||||
Structured products | 31 | 138 | 133 | 109 | 29 | 113 | 2022 - 2047 | — | 9 | 30 | 31 | 29 | 1 | 110 | 2034 - 2047 | |||||||||||||||||||||||||||
Credit protection on: | ||||||||||||||||||||||||||||||||||||||||||
Default swap index | — | 1,897 | 194 | 163 | 1,734 | 3,923 | 2019 - 2029 | 1 | 1 | 5,084 | 1,759 | 2,610 | 2,474 | 3,874 | 2020 - 2029 | |||||||||||||||||||||||||||
Commercial mortgage-backed securities index | 38 | 342 | 87 | 316 | 26 | 51 | 2047 - 2058 | 2 | 27 | 317 | 59 | 292 | 25 | 75 | 2047 - 2072 | |||||||||||||||||||||||||||
Asset-backed securities index | 8 | 41 | 41 | 41 | — | 1 | 2045 - 2046 | — | 8 | 40 | 41 | 41 | (1 | ) | 1 | 2045 - 2046 | ||||||||||||||||||||||||||
Other | 2 | 6,094 | 5,796 | — | 6,094 | 12,904 | 2019 - 2048 | — | 11 | 6,609 | 6,441 | — | 6,609 | 13,283 | 2020 - 2040 | |||||||||||||||||||||||||||
Total credit derivatives | $ | 80 | 10,507 | 6,723 | 1,991 | 8,516 | 19,013 | $ | 10 | 58 | 15,513 | 9,158 | 5,480 | 10,033 | 20,314 | |||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||
Credit default swaps on: | ||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | $ | 59 | 2,037 | 441 | 1,374 | 663 | 1,460 | 2019 - 2027 | $ | 8 | 1 | 2,855 | 707 | 1,885 | 970 | 2,447 | 2020 - 2029 | |||||||||||||||||||||||||
Structured products | 62 | 133 | 128 | 121 | 12 | 113 | 2022 - 2047 | — | 25 | 74 | 69 | 63 | 11 | 111 | 2022 - 2047 | |||||||||||||||||||||||||||
Credit protection on: | ||||||||||||||||||||||||||||||||||||||||||
Default swap index | 1 | 3,618 | 582 | 1,998 | 1,620 | 2,896 | 2019 - 2028 | 1 | — | 2,542 | 120 | 550 | 1,992 | 8,105 | 2020 - 2029 | |||||||||||||||||||||||||||
Commercial mortgage-backed securities index | 49 | 389 | 109 | 363 | 26 | 51 | 2047 - 2058 | 3 | 26 | 322 | 67 | 296 | 26 | 50 | 2047 - 2058 | |||||||||||||||||||||||||||
Asset-backed securities index | 9 | 42 | 42 | 42 | — | 1 | 2045 - 2046 | — | 8 | 41 | 41 | 41 | — | 1 | 2045 - 2046 | |||||||||||||||||||||||||||
Other | 2 | 5,522 | 5,327 | — | 5,522 | 12,561 | 2018 - 2048 | — | 5 | 6,381 | 5,738 | — | 6,381 | 11,881 | 2020 - 2049 | |||||||||||||||||||||||||||
Total credit derivatives | $ | 182 | 11,741 | 6,629 | 3,898 | 7,843 | 17,082 | $ | 12 | 65 | 12,215 | 6,742 | 2,835 | 9,380 | 22,595 |
(in billions) | Jun 30, 2020 | Dec 31, 2019 | |||
Net derivative liabilities with credit-risk contingent features | $ | 15.2 | 10.4 | ||
Collateral posted | 13.4 | 9.1 | |||
Additional collateral to be posted upon a below investment grade credit rating (1) | 1.8 | 1.3 |
(1) | Any credit rating below investment grade requires us to post the maximum amount of collateral. |
Note 16: Fair Values of Assets and Liabilities |
Brokers | Third-party pricing services | June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
June 30, 2019 | |||||||||||||||||||||||||||||||||||
Trading debt securities | $ | — | — | — | 534 | 319 | — | 1,113 | 291 | — | 634 | 329 | — | ||||||||||||||||||||||
Available-for-sale debt securities: | |||||||||||||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | — | — | — | 12,324 | 2,995 | — | 7,983 | — | — | 13,460 | 1,500 | — | |||||||||||||||||||||||
Securities of U.S. states and political subdivisions | — | — | — | — | 44,642 | 38 | — | 32,660 | 72 | — | 39,868 | 34 | |||||||||||||||||||||||
Mortgage-backed securities | — | — | — | — | 161,260 | 41 | — | 148,611 | 61 | — | 167,172 | 42 | |||||||||||||||||||||||
Other debt securities (1) | — | 45 | 130 | — | 41,947 | 663 | — | 36,610 | 571 | — | 38,067 | 650 | |||||||||||||||||||||||
Total available-for-sale debt securities | — | 45 | 130 | 12,324 | 250,844 | 742 | 7,983 | 217,881 | 704 | 13,460 | 246,607 | 726 | |||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||
Marketable | — | — | — | — | 160 | — | |||||||||||||||||||||||||||||
Nonmarketable | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total equity securities | — | — | — | — | 160 | — | |||||||||||||||||||||||||||||
Marketable equity securities | — | 99 | — | — | 110 | — | |||||||||||||||||||||||||||||
Derivative assets | — | — | — | 12 | — | — | 17 | 1 | — | 12 | 1 | — | |||||||||||||||||||||||
Derivative liabilities | — | — | — | (13 | ) | (2 | ) | — | (19 | ) | (1 | ) | — | (11 | ) | (3 | ) | — | |||||||||||||||||
Other liabilities (2) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||||||||||
Trading debt securities | $ | — | — | — | 899 | 256 | — | ||||||||||||||||||||||||||||
Available-for-sale debt securities: | |||||||||||||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | — | — | — | 10,399 | 2,949 | — | |||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | — | — | — | — | 48,377 | 43 | |||||||||||||||||||||||||||||
Mortgage-backed securities | — | — | — | — | 160,162 | 41 | |||||||||||||||||||||||||||||
Other debt securities (1) | — | 45 | 129 | — | 44,292 | 758 | |||||||||||||||||||||||||||||
Total available-for-sale debt securities | — | 45 | 129 | 10,399 | 255,780 | 842 | |||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||
Marketable | — | — | — | — | 158 | — | |||||||||||||||||||||||||||||
Nonmarketable | — | — | — | — | 1 | — | |||||||||||||||||||||||||||||
Total equity securities | — | — | — | — | 159 | — | |||||||||||||||||||||||||||||
Derivative assets | — | — | — | 17 | — | — | |||||||||||||||||||||||||||||
Derivative liabilities | — | — | — | (12 | ) | — | — | ||||||||||||||||||||||||||||
Other liabilities (2) | — | — | — | — | — | — |
(1) | Includes corporate debt securities, collateralized loan |
(in millions) | Level 1 | Level 2 | Level 3 | Netting (1) | Total | Level 1 | Level 2 | Level 3 | Netting (1) | Total | ||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||
Trading debt securities: | ||||||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | $ | 15,010 | 3,215 | — | — | 18,225 | $ | 30,741 | 4,114 | — | — | 34,855 | ||||||||||||||||
Securities of U.S. states and political subdivisions | — | 3,314 | — | — | 3,314 | — | 1,868 | — | — | 1,868 | ||||||||||||||||||
Collateralized loan obligations | — | 758 | 249 | — | 1,007 | — | 606 | 128 | — | 734 | ||||||||||||||||||
Corporate debt securities | — | 11,321 | 44 | — | 11,365 | — | 12,609 | 23 | — | 12,632 | ||||||||||||||||||
Mortgage-backed securities | — | 35,186 | — | — | 35,186 | — | 23,777 | 49 | — | 23,826 | ||||||||||||||||||
Asset-backed securities | — | 1,084 | — | — | 1,084 | |||||||||||||||||||||||
Other trading debt securities | — | 13 | 14 | — | 27 | |||||||||||||||||||||||
Other | — | 741 | 23 | — | 764 | |||||||||||||||||||||||
Total trading debt securities | 15,010 | 54,891 | 307 | — | 70,208 | 30,741 | 43,715 | 223 | — | 74,679 | ||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | 12,324 | 2,995 | — | — | 15,319 | 7,983 | — | — | — | 7,983 | ||||||||||||||||||
Securities of U.S. states and political subdivisions | — | 44,704 | 391 | — | 45,095 | — | 32,660 | 351 | — | 33,011 | ||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||
Federal agencies | — | 155,858 | — | — | 155,858 | — | 144,835 | — | — | 144,835 | ||||||||||||||||||
Residential | — | 1,263 | — | — | 1,263 | — | 541 | — | — | 541 | ||||||||||||||||||
Commercial | — | 4,139 | 41 | — | 4,180 | — | 3,498 | 61 | — | 3,559 | ||||||||||||||||||
Total mortgage-backed securities | — | 161,260 | 41 | — | 161,301 | — | 148,874 | 61 | — | 148,935 | ||||||||||||||||||
Corporate debt securities | 37 | 5,810 | 383 | — | 6,230 | 35 | 3,889 | 1,051 | — | 4,975 | ||||||||||||||||||
Collateralized loan and other debt obligations (2) | — | 32,346 | 649 | — | 32,995 | |||||||||||||||||||||||
Asset-backed securities: | ||||||||||||||||||||||||||||
Automobile loans and leases | — | 889 | — | — | 889 | |||||||||||||||||||||||
Home equity loans | — | 14 | — | — | 14 | |||||||||||||||||||||||
Other asset-backed securities | — | 3,792 | 341 | — | 4,133 | |||||||||||||||||||||||
Total asset-backed securities | — | 4,695 | 341 | — | 5,036 | |||||||||||||||||||||||
Other debt securities | — | 7 | — | — | 7 | |||||||||||||||||||||||
Collateralized loan obligations | — | 24,990 | 9 | — | 24,999 | |||||||||||||||||||||||
Other | — | 8,370 | 626 | — | 8,996 | |||||||||||||||||||||||
Total available-for-sale debt securities | 12,361 | 251,817 | 1,805 | (3) | — | 265,983 | 8,018 | 218,783 | 2,098 | (2) | — | 228,899 | ||||||||||||||||
Mortgage loans held for sale | — | 15,228 | 1,115 | — | 16,343 | — | 17,893 | 751 | — | 18,644 | ||||||||||||||||||
Loans held for sale | — | 1,106 | 12 | — | 1,118 | — | 1,194 | 7 | — | 1,201 | ||||||||||||||||||
Loans | — | — | 202 | — | 202 | — | — | 152 | — | 152 | ||||||||||||||||||
Mortgage servicing rights (residential) | — | — | 12,096 | — | 12,096 | — | — | 6,819 | — | 6,819 | ||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||
Interest rate contracts | 45 | 25,258 | 250 | — | 25,553 | 37 | 47,985 | 590 | — | 48,612 | ||||||||||||||||||
Commodity contracts | — | 1,404 | 20 | — | 1,424 | — | 2,002 | 37 | — | 2,039 | ||||||||||||||||||
Equity contracts | 2,162 | 3,300 | 1,915 | — | 7,377 | 3,527 | 5,692 | 1,450 | — | 10,669 | ||||||||||||||||||
Foreign exchange contracts | 12 | 5,522 | 21 | — | 5,555 | 17 | 6,404 | 10 | — | 6,431 | ||||||||||||||||||
Credit contracts | — | 62 | 79 | — | 141 | — | 60 | 70 | — | 130 | ||||||||||||||||||
Netting | — | — | — | (26,888 | ) | (26,888 | ) | — | — | — | (45,105 | ) | (45,105 | ) | ||||||||||||||
Total derivative assets | 2,219 | 35,546 | 2,285 | (26,888 | ) | 13,162 | 3,581 | 62,143 | 2,157 | (45,105 | ) | 22,776 | ||||||||||||||||
Equity securities - excluding securities at NAV: | ||||||||||||||||||||||||||||
Equity securities – excluding securities at NAV: | ||||||||||||||||||||||||||||
Marketable | 28,447 | 259 | — | — | 28,706 | 18,822 | 195 | — | — | 19,017 | ||||||||||||||||||
Nonmarketable | — | 16 | 7,110 | — | 7,126 | — | 18 | 8,165 | — | 8,183 | ||||||||||||||||||
Total equity securities | 28,447 | 275 | 7,110 | — | 35,832 | 18,822 | 213 | 8,165 | — | 27,200 | ||||||||||||||||||
Total assets included in the fair value hierarchy | $ | 58,037 | 358,863 | 24,932 | (26,888 | ) | 414,944 | $ | 61,162 | 343,941 | 20,372 | (45,105 | ) | 380,370 | ||||||||||||||
Equity securities at NAV (4) | 118 | |||||||||||||||||||||||||||
Equity securities at NAV (3) | 139 | |||||||||||||||||||||||||||
Total assets recorded at fair value | 415,062 | 380,509 | ||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||
Interest rate contracts | $ | (55 | ) | (20,537 | ) | (45 | ) | — | (20,637 | ) | $ | (44 | ) | (36,353 | ) | (67 | ) | — | (36,464 | ) | ||||||||
Commodity contracts | — | (1,887 | ) | (49 | ) | — | (1,936 | ) | — | (3,705 | ) | (36 | ) | — | (3,741 | ) | ||||||||||||
Equity contracts | (1,509 | ) | (5,526 | ) | (2,143 | ) | — | (9,178 | ) | (3,288 | ) | (7,368 | ) | (1,430 | ) | — | (12,086 | ) | ||||||||||
Foreign exchange contracts | (13 | ) | (6,224 | ) | (31 | ) | — | (6,268 | ) | (19 | ) | (7,414 | ) | (26 | ) | — | (7,459 | ) | ||||||||||
Credit contracts | — | (63 | ) | (34 | ) | — | (97 | ) | — | (53 | ) | (20 | ) | — | (73 | ) | ||||||||||||
Netting | — | — | — | 29,717 | 29,717 | — | — | — | 48,455 | 48,455 | ||||||||||||||||||
Total derivative liabilities | (1,577 | ) | (34,237 | ) | (2,302 | ) | 29,717 | (8,399 | ) | (3,351 | ) | (54,893 | ) | (1,579 | ) | 48,455 | (11,368 | ) | ||||||||||
Short sale liabilities: | ||||||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | (7,768 | ) | (230 | ) | — | — | (7,998 | ) | (11,080 | ) | (207 | ) | — | — | (11,287 | ) | ||||||||||||
Mortgage-backed securities | — | (533 | ) | — | — | (533 | ) | — | (1,286 | ) | — | — | (1,286 | ) | ||||||||||||||
Asset-backed securities | — | (10 | ) | — | — | (10 | ) | |||||||||||||||||||||
Corporate debt securities | — | (4,887 | ) | — | — | (4,887 | ) | — | (5,104 | ) | — | — | (5,104 | ) | ||||||||||||||
Equity securities | (2,527 | ) | — | — | — | (2,527 | ) | (2,531 | ) | — | — | — | (2,531 | ) | ||||||||||||||
Other securities | — | — | — | — | — | — | (2 | ) | (3 | ) | — | (5 | ) | |||||||||||||||
Total short sale liabilities | (10,295 | ) | (5,660 | ) | — | — | (15,955 | ) | (13,611 | ) | (6,599 | ) | (3 | ) | — | (20,213 | ) | |||||||||||
Other liabilities | — | — | (2 | ) | — | (2 | ) | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Total liabilities recorded at fair value | $ | (11,872 | ) | (39,897 | ) | (2,304 | ) | 29,717 | (24,356 | ) | $ | (16,962 | ) | (61,492 | ) | (1,584 | ) | 48,455 | (31,583 | ) |
(1) | Represents balance sheet netting of derivative asset and liability balances, |
(2) | Largely consists of |
(3) | Consists of certain nonmarketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy. |
(in millions) | Level 1 | Level 2 | Level 3 | Netting (1) | Total | |||||||||
December 31, 2019 | ||||||||||||||
Trading debt securities: | ||||||||||||||
Securities of U.S. Treasury and federal agencies | $ | 32,335 | 4,382 | — | — | 36,717 | ||||||||
Securities of U.S. states and political subdivisions | — | 2,434 | — | — | 2,434 | |||||||||
Collateralized loan obligations | — | 555 | 183 | — | 738 | |||||||||
Corporate debt securities | — | 11,006 | 38 | — | 11,044 | |||||||||
Mortgage-backed securities | — | 27,712 | — | — | 27,712 | |||||||||
Other | — | 1,086 | 2 | — | 1,088 | |||||||||
Total trading debt securities | 32,335 | 47,175 | 223 | — | 79,733 | |||||||||
Available-for-sale debt securities: | ||||||||||||||
Securities of U.S. Treasury and federal agencies | 13,460 | 1,500 | — | — | 14,960 | |||||||||
Securities of U.S. states and political subdivisions | — | 39,924 | 413 | — | 40,337 | |||||||||
Mortgage-backed securities: | ||||||||||||||
Federal agencies | — | 162,453 | — | — | 162,453 | |||||||||
Residential | — | 827 | — | — | 827 | |||||||||
Commercial | — | 3,892 | 42 | — | 3,934 | |||||||||
Total mortgage-backed securities | — | 167,172 | 42 | — | 167,214 | |||||||||
Corporate debt securities | 37 | 6,159 | 367 | — | 6,563 | |||||||||
Collateralized loan obligations | — | 29,055 | — | — | 29,055 | |||||||||
Other | — | 4,587 | 743 | — | 5,330 | |||||||||
Total available-for-sale debt securities | 13,497 | 248,397 | 1,565 | (2) | — | 263,459 | ||||||||
Mortgage loans held for sale | — | 15,408 | 1,198 | — | 16,606 | |||||||||
Loans held for sale | — | 956 | 16 | — | 972 | |||||||||
Loans | — | — | 171 | — | 171 | |||||||||
Mortgage servicing rights (residential) | — | — | 11,517 | — | 11,517 | |||||||||
Derivative assets: | ||||||||||||||
Interest rate contracts | 26 | 23,792 | 229 | — | 24,047 | |||||||||
Commodity contracts | — | 1,413 | 8 | — | 1,421 | |||||||||
Equity contracts | 2,946 | 4,135 | 1,455 | — | 8,536 | |||||||||
Foreign exchange contracts | 12 | 5,197 | 5 | — | 5,214 | |||||||||
Credit contracts | — | 49 | 59 | — | 108 | |||||||||
Netting | — | — | — | (25,123 | ) | (25,123 | ) | |||||||
Total derivative assets | 2,984 | 34,586 | 1,756 | (25,123 | ) | 14,203 | ||||||||
Equity securities – excluding securities at NAV: | ||||||||||||||
Marketable | 33,702 | 216 | 3 | — | 33,921 | |||||||||
Nonmarketable | — | 22 | 7,847 | — | 7,869 | |||||||||
Total equity securities | 33,702 | 238 | 7,850 | — | 41,790 | |||||||||
Total assets included in the fair value hierarchy | $ | 82,518 | 346,760 | 24,296 | (25,123 | ) | 428,451 | |||||||
Equity securities at NAV (3) | 146 | |||||||||||||
Total assets recorded at fair value | 428,597 | |||||||||||||
Derivative liabilities: | ||||||||||||||
Interest rate contracts | $ | (23 | ) | (19,328 | ) | (15 | ) | — | (19,366 | ) | ||||
Commodity contracts | — | (1,746 | ) | (24 | ) | — | (1,770 | ) | ||||||
Equity contracts | (2,011 | ) | (6,729 | ) | (1,724 | ) | — | (10,464 | ) | |||||
Foreign exchange contracts | (11 | ) | (6,213 | ) | (23 | ) | — | (6,247 | ) | |||||
Credit contracts | — | (53 | ) | (30 | ) | — | (83 | ) | ||||||
Netting | — | — | — | 28,851 | 28,851 | |||||||||
Total derivative liabilities | (2,045 | ) | (34,069 | ) | (1,816 | ) | 28,851 | (9,079 | ) | |||||
Short sale liabilities: | ||||||||||||||
Securities of U.S. Treasury and federal agencies | (9,035 | ) | (31 | ) | — | — | (9,066 | ) | ||||||
Mortgage-backed securities | — | (2 | ) | — | — | (2 | ) | |||||||
Corporate debt securities | — | (5,915 | ) | — | — | (5,915 | ) | |||||||
Equity securities | (2,447 | ) | — | — | — | (2,447 | ) | |||||||
Other securities | — | — | — | — | — | |||||||||
Total short sale liabilities | (11,482 | ) | (5,948 | ) | — | — | (17,430 | ) | ||||||
Other liabilities | — | — | (2 | ) | — | (2 | ) | |||||||
Total liabilities recorded at fair value | $ | (13,527 | ) | (40,017 | ) | (1,818 | ) | 28,851 | (26,511 | ) |
(1) | Represents balance sheet netting of derivative asset and liability balances, related cash collateral and portfolio level counterparty valuation adjustments. See Note 15 (Derivatives) for additional information. |
(2) | A significant portion of the balance consists of securities that are investment grade based on ratings received from the ratings agencies or internal credit grades categorized as investment grade if external ratings are not available. The securities are classified as Level 3 due to limited market activity. |
Consists of certain nonmarketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy. |
(in millions) | Level 1 | Level 2 | Level 3 | Netting (1) | Total | |||||||||
December 31, 2018 | ||||||||||||||
Trading debt securities: | ||||||||||||||
Securities of U.S. Treasury and federal agencies | $ | 20,525 | 2,892 | — | — | 23,417 | ||||||||
Securities of U.S. states and political subdivisions | — | 3,272 | 3 | — | 3,275 | |||||||||
Collateralized loan obligations | — | 673 | 237 | — | 910 | |||||||||
Corporate debt securities | — | 10,723 | 34 | — | 10,757 | |||||||||
Mortgage-backed securities | — | 30,715 | — | — | 30,715 | |||||||||
Asset-backed securities | — | 893 | — | — | 893 | |||||||||
Other trading debt securities | — | 6 | 16 | — | 22 | |||||||||
Total trading debt securities | 20,525 | 49,174 | 290 | — | 69,989 | |||||||||
Available-for-sale debt securities: | ||||||||||||||
Securities of U.S. Treasury and federal agencies | 10,399 | 2,949 | — | — | 13,348 | |||||||||
Securities of U.S. states and political subdivisions | — | 48,820 | 444 | — | 49,264 | |||||||||
Mortgage-backed securities: | ||||||||||||||
Federal agencies | — | 153,203 | — | — | 153,203 | |||||||||
Residential | — | 2,775 | — | — | 2,775 | |||||||||
Commercial | — | 4,184 | 41 | — | 4,225 | |||||||||
Total mortgage-backed securities | — | 160,162 | 41 | — | 160,203 | |||||||||
Corporate debt securities | 34 | 5,867 | 370 | — | 6,271 | |||||||||
Collateralized loan and other debt obligations (2) | — | 34,543 | 800 | — | 35,343 | |||||||||
Asset-backed securities: | ||||||||||||||
Automobile loans and leases | — | 925 | — | — | 925 | |||||||||
Home equity loans | — | 112 | — | — | 112 | |||||||||
Other asset-backed securities | — | 4,056 | 389 | — | 4,445 | |||||||||
Total asset-backed securities | — | 5,093 | 389 | — | 5,482 | |||||||||
Other debt securities | — | 1 | — | — | 1 | |||||||||
Total available-for-sale debt securities | 10,433 | 257,435 | 2,044 | (3) | — | 269,912 | ||||||||
Mortgage loans held for sale | — | 10,774 | 997 | — | 11,771 | |||||||||
Loans held for sale | — | 1,409 | 60 | — | 1,469 | |||||||||
Loans | — | — | 244 | — | 244 | |||||||||
Mortgage servicing rights (residential) | — | — | 14,649 | — | 14,649 | |||||||||
Derivative assets: | ||||||||||||||
Interest rate contracts | 46 | 18,294 | 95 | — | 18,435 | |||||||||
Commodity contracts | — | 1,535 | 53 | — | 1,588 | |||||||||
Equity contracts | 1,648 | 4,582 | 1,315 | — | 7,545 | |||||||||
Foreign exchange contracts | 17 | 6,689 | 8 | — | 6,714 | |||||||||
Credit contracts | — | 179 | 99 | — | 278 | |||||||||
Netting | — | — | — | (23,790 | ) | (23,790 | ) | |||||||
Total derivative assets | 1,711 | 31,279 | 1,570 | (23,790 | ) | 10,770 | ||||||||
Equity securities - excluding securities at NAV: | ||||||||||||||
Marketable | 23,205 | 757 | — | — | 23,962 | |||||||||
Nonmarketable | — | 24 | 5,468 | — | 5,492 | |||||||||
Total equity securities | 23,205 | 781 | 5,468 | — | 29,454 | |||||||||
Total assets included in the fair value hierarchy | $ | 55,874 | 350,852 | 25,322 | (23,790 | ) | 408,258 | |||||||
Equity securities at NAV (4) | 102 | |||||||||||||
Total assets recorded at fair value | 408,360 | |||||||||||||
Derivative liabilities: | ||||||||||||||
Interest rate contracts | $ | (21 | ) | (16,217 | ) | (70 | ) | — | (16,308 | ) | ||||
Commodity contracts | — | (2,287 | ) | (49 | ) | — | (2,336 | ) | ||||||
Equity contracts | (1,492 | ) | (3,186 | ) | (1,332 | ) | — | (6,010 | ) | |||||
Foreign exchange contracts | (12 | ) | (7,067 | ) | (34 | ) | — | (7,113 | ) | |||||
Credit contracts | — | (216 | ) | (64 | ) | — | (280 | ) | ||||||
Netting | — | — | — | 23,548 | 23,548 | |||||||||
Total derivative liabilities | (1,525 | ) | (28,973 | ) | (1,549 | ) | 23,548 | (8,499 | ) | |||||
Short sale liabilities: | ||||||||||||||
Securities of U.S. Treasury and federal agencies | (11,850 | ) | (411 | ) | — | — | (12,261 | ) | ||||||
Mortgage-backed securities | — | (47 | ) | — | — | (47 | ) | |||||||
Corporate debt securities | — | (4,505 | ) | — | — | (4,505 | ) | |||||||
Equity securities | (2,902 | ) | (2 | ) | — | — | (2,904 | ) | ||||||
Other securities | — | (3 | ) | — | — | (3 | ) | |||||||
Total short sale liabilities | (14,752 | ) | (4,968 | ) | — | — | (19,720 | ) | ||||||
Other liabilities | — | — | (2 | ) | — | (2 | ) | |||||||
Total liabilities recorded at fair value | $ | (16,277 | ) | (33,941 | ) | (1,551 | ) | 23,548 | (28,221 | ) |
Total net gains (losses) included in | Purchases, sales, issuances and settlements, net (1) | Net unrealized gains (losses) included in income related to assets and liabilities held at period end (4) | Total net gains (losses) included in | Purchases, sales, issuances and settlements, net (1) | Net unrealized gains (losses) related to assets and liabilities held at period end included in | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Balance, beginning of period | Net income | Other compre- hensive income | Transfers into Level 3 (2) | Transfers out of Level 3 (3) | Balance, end of period | Balance, beginning of period | Net income | Other compre- hensive income | Transfers into Level 3 (2) | Transfers out of Level 3 (3) | Balance, end of period | Net income | (4) | Other compre-hensive income | |||||||||||||||||||||||||||||||||||||
Quarter ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarter ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | $ | — | — | — | — | — | — | — | — | $ | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Collateralized loan obligations | 275 | (2 | ) | — | (24 | ) | — | — | 249 | (6 | ) | 154 | — | — | 4 | (5 | ) | (25 | ) | 128 | (2 | ) | — | |||||||||||||||||||||||||||||
Corporate debt securities | 41 | 1 | — | 3 | — | (1 | ) | 44 | 1 | 34 | (7 | ) | — | 1 | — | (5 | ) | 23 | 1 | — | ||||||||||||||||||||||||||||||||
Other trading debt securities | 15 | (1 | ) | — | — | — | — | 14 | — | |||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 177 | 35 | — | (148 | ) | 4 | (19 | ) | 49 | 12 | — | |||||||||||||||||||||||||||||||||||||||||
Other | 24 | 5 | — | (22 | ) | 16 | — | 23 | 3 | — | ||||||||||||||||||||||||||||||||||||||||||
Total trading debt securities | 331 | (2 | ) | — | (21 | ) | — | (1 | ) | 307 | (5 | ) | (5) | 389 | 33 | — | (165 | ) | 15 | (49 | ) | 223 | 14 | (5) | — | |||||||||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | 470 | 1 | 2 | (33 | ) | — | (49 | ) | 391 | — | 351 | 1 | 2 | (23 | ) | 35 | (15 | ) | 351 | — | — | |||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | — | 31 | 5 | — | (25 | ) | — | (11 | ) | — | — | — | |||||||||||||||||||||||||||||||||
Commercial | 41 | — | — | — | — | — | 41 | — | 154 | (2 | ) | (1 | ) | (1 | ) | 31 | (120 | ) | 61 | (2 | ) | (1 | ) | |||||||||||||||||||||||||||||
Total mortgage-backed securities | 41 | — | — | — | — | — | 41 | — | 185 | 3 | (1 | ) | (26 | ) | 31 | (131 | ) | 61 | (2 | ) | (1 | ) | ||||||||||||||||||||||||||||||
Corporate debt securities | 377 | — | (1 | ) | 7 | — | — | 383 | — | 1,130 | (2 | ) | 43 | (46 | ) | — | (74 | ) | 1,051 | (2 | ) | 42 | ||||||||||||||||||||||||||||||
Collateralized loan and other debt obligations | 755 | 7 | (6 | ) | (107 | ) | — | — | 649 | — | ||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | 362 | — | — | (21 | ) | — | — | 341 | — | |||||||||||||||||||||||||||||||||||||||||||
Total asset-backed securities | 362 | — | — | (21 | ) | — | — | 341 | — | |||||||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | 50 | — | (1 | ) | — | 10 | (50 | ) | 9 | — | — | |||||||||||||||||||||||||||||||||||||||||
Other | 696 | 3 | (27 | ) | (28 | ) | 9 | (27 | ) | 626 | (1 | ) | (28 | ) | ||||||||||||||||||||||||||||||||||||||
Total available-for-sale debt securities | 2,005 | 8 | (5 | ) | (154 | ) | — | (49 | ) | 1,805 | — | (6) | 2,412 | 5 | 16 | (123 | ) | 85 | (297 | ) | 2,098 | (5 | ) | (6) | 13 | |||||||||||||||||||||||||||
Mortgage loans held for sale | 998 | 37 | — | (22 | ) | 104 | (2 | ) | 1,115 | 39 | (7) | 3,157 | (37 | ) | — | (251 | ) | 80 | (2,198 | ) | 751 | (27 | ) | (7) | — | |||||||||||||||||||||||||||
Loans held for sale | 71 | — | — | (3 | ) | — | (56 | ) | 12 | — | 19 | (4 | ) | — | (7 | ) | — | (1 | ) | 7 | (5 | ) | (5) | — | ||||||||||||||||||||||||||||
Loans | 225 | 1 | — | (24 | ) | — | — | 202 | (2 | ) | (7) | 160 | (2 | ) | — | (6 | ) | — | — | 152 | (4 | ) | (7) | — | ||||||||||||||||||||||||||||
Mortgage servicing rights (residential)(8) | 13,336 | (1,639 | ) | — | 399 | — | — | 12,096 | (1,078 | ) | (7) | 8,126 | (1,768 | ) | — | 461 | — | — | 6,819 | (1,131 | ) | (7) | — | |||||||||||||||||||||||||||||
Net derivative assets and liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | 101 | 237 | — | (133 | ) | — | — | 205 | 141 | 685 | 460 | — | (622 | ) | — | — | 523 | 291 | — | |||||||||||||||||||||||||||||||||
Commodity contracts | (18 | ) | (75 | ) | — | 64 | — | — | (29 | ) | (10 | ) | (44 | ) | 15 | — | 12 | 18 | — | 1 | 45 | — | ||||||||||||||||||||||||||||||
Equity contracts | (162 | ) | 15 | — | (66 | ) | (2 | ) | (13 | ) | (228 | ) | (29 | ) | 217 | (277 | ) | — | 79 | — | 1 | 20 | (387 | ) | — | |||||||||||||||||||||||||||
Foreign exchange contracts | (16 | ) | 3 | — | 3 | — | — | (10 | ) | 7 | (6 | ) | (12 | ) | — | 2 | — | — | (16 | ) | 2 | — | ||||||||||||||||||||||||||||||
Credit contracts | 49 | (3 | ) | — | (1 | ) | — | — | 45 | (3 | ) | 47 | 4 | — | (1 | ) | — | — | 50 | — | — | |||||||||||||||||||||||||||||||
Total derivative contracts | (46 | ) | 177 | — | (133 | ) | (2 | ) | (13 | ) | (17 | ) | 106 | (9) | 899 | 190 | — | (530 | ) | 18 | 1 | 578 | (49 | ) | (9) | — | ||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable | 3 | — | — | — | — | (3 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Nonmarketable | 6,381 | 724 | — | — | 5 | — | 7,110 | 724 | 6,751 | 1,414 | — | — | — | — | 8,165 | 1,414 | — | |||||||||||||||||||||||||||||||||||
Total equity securities | 6,381 | 724 | — | — | 5 | — | 7,110 | 724 | (10) | 6,754 | 1,414 | — | — | — | (3 | ) | 8,165 | 1,414 | (10) | — | ||||||||||||||||||||||||||||||||
Short sale liabilities | — | — | — | (3 | ) | — | — | (3 | ) | — | (5) | — | ||||||||||||||||||||||||||||||||||||||||
Other liabilities | (2 | ) | — | — | — | — | — | (2 | ) | — | (7) | (2 | ) | — | — | — | — | — | (2 | ) | — | (7) | — |
(1) | See Table 16.4 for detail. |
(2) | All assets and liabilities transferred into level 3 were previously classified within level 2. |
(3) | All assets and liabilities transferred out of level 3 are classified as level 2. |
(4) | Represents only net gains (losses) that are due to changes in economic conditions and management’s estimates of fair value and excludes changes due to the collection/realization of cash flows over time. |
(5) | Included in net gains |
(6) | Included in net gains |
(7) | Included in mortgage banking and other noninterest income in the income statement. |
(8) | For more information on the changes in mortgage servicing rights, see Note 11 (Mortgage Banking Activities). |
(9) | Included in mortgage banking income, net gains from trading activities, net gains (losses) from equity securities and other noninterest income in the income statement. |
(10) | Included in net gains (losses) from equity securities in the income statement. |
(in millions) | Purchases | Sales | Issuances | Settlements | Net | Purchases | Sales | Issuances | Settlements | Net | ||||||||||||||||||||
Quarter ended June 30, 2019 | ||||||||||||||||||||||||||||||
Quarter ended June 30, 2020 | ||||||||||||||||||||||||||||||
Trading debt securities: | ||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | $ | — | — | — | — | — | $ | — | — | — | — | — | ||||||||||||||||||
Collateralized loan obligations | 44 | (65 | ) | — | (3 | ) | (24 | ) | 86 | (82 | ) | — | — | 4 | ||||||||||||||||
Corporate debt securities | 6 | (3 | ) | — | — | 3 | 22 | (21 | ) | — | — | 1 | ||||||||||||||||||
Other trading debt securities | — | — | — | — | — | |||||||||||||||||||||||||
Mortgage-backed securities | 72 | (216 | ) | — | (4 | ) | (148 | ) | ||||||||||||||||||||||
Other | 6 | (27 | ) | — | (1 | ) | (22 | ) | ||||||||||||||||||||||
Total trading debt securities | 50 | (68 | ) | — | (3 | ) | (21 | ) | 186 | (346 | ) | — | (5 | ) | (165 | ) | ||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | — | — | 6 | (39 | ) | (33 | ) | — | — | — | (23 | ) | (23 | ) | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||
Residential | — | — | — | — | — | (1 | ) | (23 | ) | — | (1 | ) | (25 | ) | ||||||||||||||||
Commercial | — | — | — | — | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||||
Total mortgage-backed securities | — | — | — | — | — | (1 | ) | (23 | ) | — | (2 | ) | (26 | ) | ||||||||||||||||
Corporate debt securities | 8 | — | — | (1 | ) | 7 | 6 | — | — | (52 | ) | (46 | ) | |||||||||||||||||
Collateralized loan and other debt obligations | — | — | — | (107 | ) | (107 | ) | |||||||||||||||||||||||
Asset-backed securities: | ||||||||||||||||||||||||||||||
Other asset-backed securities | — | (2 | ) | 57 | (76 | ) | (21 | ) | ||||||||||||||||||||||
Total asset-backed securities | — | (2 | ) | 57 | (76 | ) | (21 | ) | ||||||||||||||||||||||
Collateralized loan obligations | — | — | — | — | — | |||||||||||||||||||||||||
Other | — | (5 | ) | — | (23 | ) | (28 | ) | ||||||||||||||||||||||
Total available-for-sale debt securities | 8 | (2 | ) | 63 | (223 | ) | (154 | ) | 5 | (28 | ) | — | (100 | ) | (123 | ) | ||||||||||||||
Mortgage loans held for sale | 30 | (47 | ) | 54 | (59 | ) | (22 | ) | 32 | (281 | ) | 62 | (64 | ) | (251 | ) | ||||||||||||||
Loans held for sale | — | (1 | ) | — | (2 | ) | (3 | ) | — | (7 | ) | — | — | (7 | ) | |||||||||||||||
Loans | — | — | 2 | (26 | ) | (24 | ) | — | — | 2 | (8 | ) | (6 | ) | ||||||||||||||||
Mortgage servicing rights (residential) (1) | — | (1 | ) | 400 | — | 399 | — | (1 | ) | 462 | — | 461 | ||||||||||||||||||
Net derivative assets and liabilities: | ||||||||||||||||||||||||||||||
Interest rate contracts | — | — | — | (133 | ) | (133 | ) | — | — | — | (622 | ) | (622 | ) | ||||||||||||||||
Commodity contracts | — | — | — | 64 | 64 | — | — | — | 12 | 12 | ||||||||||||||||||||
Equity contracts | — | — | — | (66 | ) | (66 | ) | — | — | — | 79 | 79 | ||||||||||||||||||
Foreign exchange contracts | — | — | — | 3 | 3 | — | — | — | 2 | 2 | ||||||||||||||||||||
Credit contracts | 2 | (3 | ) | — | — | (1 | ) | 2 | (1 | ) | — | (2 | ) | (1 | ) | |||||||||||||||
Total derivative contracts | 2 | (3 | ) | — | (132 | ) | (133 | ) | 2 | (1 | ) | — | (531 | ) | (530 | ) | ||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||
Marketable | — | — | — | — | — | |||||||||||||||||||||||||
Nonmarketable | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total equity securities | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Short sale liabilities | — | (3 | ) | — | — | (3 | ) | |||||||||||||||||||||||
Other liabilities | — | — | — | — | — | — | — | — | — | — |
(1) | For more information on the changes in mortgage servicing rights, see Note 11 (Mortgage Banking Activities). |
Balance, beginning of period | Total net gains (losses) included in | Purchases, sales, issuances and settlements, net (1) | Net unrealized gains (losses) included in income related to assets and liabilities held at period end | Balance, beginning of period | Total net gains (losses) included in | Purchases, sales, issuances and settlements, net (1) | Net unrealized gains (losses)included in income related to assets and liabilities held at period end | |||||||||||||||||||||||||||||||||||||||||||
(in millions) | Net income | Other compre- hensive income | Transfers into Level 3 (2) | Transfers out of Level 3 (3) | Balance, end of period | (4) | Net income | Other compre- hensive income | Transfers into Level 3 (2) | Transfers out of Level 3 (3) | Balance, end of period | (4) | ||||||||||||||||||||||||||||||||||||||
Quarter ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Quarter ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Trading debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | $ | 3 | — | — | — | — | — | 3 | — | $ | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Collateralized loan obligations | 316 | (6 | ) | — | (19 | ) | — | — | 291 | (8 | ) | 275 | (2 | ) | — | (24 | ) | — | — | 249 | (6 | ) | ||||||||||||||||||||||||||||
Corporate debt securities | 34 | — | — | 3 | — | (1 | ) | 36 | 1 | 41 | 1 | — | 3 | — | (1 | ) | 44 | 1 | ||||||||||||||||||||||||||||||||
Other trading debt securities | 18 | (1 | ) | — | — | — | — | 17 | — | |||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other | 15 | (1 | ) | — | — | — | — | 14 | — | |||||||||||||||||||||||||||||||||||||||||
Total trading debt securities | 371 | (7 | ) | — | (16 | ) | — | (1 | ) | 347 | (7 | ) | (5) | 331 | (2 | ) | — | (21 | ) | — | (1 | ) | 307 | (5 | ) | (5) | ||||||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | 617 | 1 | — | (49 | ) | — | (10 | ) | 559 | — | 470 | 1 | 2 | (33 | ) | — | (49 | ) | 391 | — | ||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | 1 | — | (1 | ) | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Commercial | 67 | — | (1 | ) | (13 | ) | — | — | 53 | — | 41 | — | — | — | — | — | 41 | — | ||||||||||||||||||||||||||||||||
Total mortgage-backed securities | 68 | — | (2 | ) | (13 | ) | — | — | 53 | — | 41 | — | — | — | — | — | 41 | — | ||||||||||||||||||||||||||||||||
Corporate debt securities | 410 | 1 | 1 | 31 | — | — | 443 | — | 377 | — | (1 | ) | 7 | — | — | 383 | — | |||||||||||||||||||||||||||||||||
Collateralized loan and other debt obligations | 1,045 | 6 | 10 | (24 | ) | — | — | 1,037 | — | |||||||||||||||||||||||||||||||||||||||||
Asset-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | 501 | — | (1 | ) | (99 | ) | — | — | 401 | — | ||||||||||||||||||||||||||||||||||||||||
Total asset-backed securities | 501 | — | (1 | ) | (99 | ) | — | — | 401 | — | ||||||||||||||||||||||||||||||||||||||||
Other | 1,117 | 7 | (6 | ) | (128 | ) | — | — | 990 | — | ||||||||||||||||||||||||||||||||||||||||
Total available-for-sale debt securities | 2,641 | 8 | 8 | (154 | ) | — | (10 | ) | 2,493 | — | (6) | 2,005 | 8 | (5 | ) | (154 | ) | — | (49 | ) | 1,805 | — | (6) | |||||||||||||||||||||||||||
Mortgage loans held for sale | 950 | (11 | ) | — | 25 | 25 | (3 | ) | 986 | (11 | ) | (7) | 998 | 37 | — | (22 | ) | 104 | (2 | ) | 1,115 | 39 | (7) | |||||||||||||||||||||||||||
Loans held for sale | — | (1 | ) | — | — | 21 | — | 20 | — | 71 | — | — | (3 | ) | — | (56 | ) | 12 | — | (5) | ||||||||||||||||||||||||||||||
Loans | 352 | — | — | (31 | ) | — | — | 321 | (4 | ) | (7) | 225 | 1 | — | (24 | ) | — | — | 202 | (2 | ) | (7) | ||||||||||||||||||||||||||||
Mortgage servicing rights (residential) (8) | 15,041 | (115 | ) | — | 485 | — | — | 15,411 | 345 | (7) | 13,336 | (1,639 | ) | — | 399 | — | — | 12,096 | (1,078 | ) | (7) | |||||||||||||||||||||||||||||
Net derivative assets and liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | (8 | ) | (63 | ) | — | 30 | — | — | (41 | ) | 6 | 101 | 237 | — | (133 | ) | — | — | 205 | 141 | ||||||||||||||||||||||||||||||
Commodity contracts | 10 | 15 | — | (2 | ) | 3 | — | 26 | 21 | (18 | ) | (75 | ) | — | 64 | — | — | (29 | ) | (10 | ) | |||||||||||||||||||||||||||||
Equity contracts | (322 | ) | (12 | ) | — | (7 | ) | — | 2 | (339 | ) | 261 | (162 | ) | 15 | — | (66 | ) | (2 | ) | (13 | ) | (228 | ) | (29 | ) | ||||||||||||||||||||||||
Foreign exchange contracts | 1 | (18 | ) | — | 2 | — | — | (15 | ) | (13 | ) | (16 | ) | 3 | — | 3 | — | — | (10 | ) | 7 | |||||||||||||||||||||||||||||
Credit contracts | 41 | (12 | ) | — | (5 | ) | — | — | 24 | (17 | ) | 49 | (3 | ) | — | (1 | ) | — | — | 45 | (3 | ) | ||||||||||||||||||||||||||||
Total derivative contracts | (278 | ) | (90 | ) | — | 18 | 3 | 2 | (345 | ) | 258 | (9) | (46 | ) | 177 | — | (133 | ) | (2 | ) | (13 | ) | (17 | ) | 106 | (9) | ||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Nonmarketable | 5,219 | 585 | — | — | 6 | (4 | ) | 5,806 | 586 | 6,381 | 724 | — | — | 5 | — | 7,110 | 724 | |||||||||||||||||||||||||||||||||
Total equity securities | 5,219 | 585 | — | — | 6 | (4 | ) | 5,806 | 586 | (10) | 6,381 | 724 | — | — | 5 | — | 7,110 | 724 | (10) | |||||||||||||||||||||||||||||||
Other liabilities | (2 | ) | — | — | — | — | — | (2 | ) | — | (7) | (2 | ) | — | — | — | — | — | (2 | ) | — | (7) |
(1) | See Table 16.6 for detail. |
(2) | All assets and liabilities transferred into level 3 were previously classified within level 2. |
(3) | All assets and liabilities transferred out of level 3 are classified as level 2. |
(4) | Represents only net gains (losses) that are due to changes in economic conditions and management’s estimates of fair value and excludes changes due to the collection/realization of cash flows over time. |
(5) | Included in net gains |
(6) | Included in net gains |
(7) | Included in mortgage banking and other noninterest income in the income statement. |
(8) | For more information on the changes in mortgage servicing rights, see Note 11 (Mortgage Banking Activities). |
(9) | Included in mortgage banking income, net gains from trading activities, net gains (losses) from equity securities and other noninterest income in the income statement. |
(10) | Included in net gains (losses) from equity securities in the income statement. |
(in millions) | Purchases | Sales | Issuances | Settlements | Net | Purchases | Sales | Issuances | Settlements | Net | ||||||||||||||||||||
Quarter ended June 30, 2018 | ||||||||||||||||||||||||||||||
Quarter ended June 30, 2019 | ||||||||||||||||||||||||||||||
Trading debt securities: | ||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | $ | — | — | — | — | — | $ | — | — | — | — | — | ||||||||||||||||||
Collateralized loan obligations | 89 | (39 | ) | — | (69 | ) | (19 | ) | 44 | (65 | ) | — | (3 | ) | (24 | ) | ||||||||||||||
Corporate debt securities | 4 | (1 | ) | — | — | 3 | 6 | (3 | ) | — | — | 3 | ||||||||||||||||||
Other trading debt securities | — | — | — | — | — | |||||||||||||||||||||||||
Mortgage-backed securities | — | — | — | — | — | |||||||||||||||||||||||||
Other | — | — | — | — | — | |||||||||||||||||||||||||
Total trading debt securities | 93 | (40 | ) | — | (69 | ) | (16 | ) | 50 | (68 | ) | — | (3 | ) | (21 | ) | ||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | — | — | — | (49 | ) | (49 | ) | — | — | 6 | (39 | ) | (33 | ) | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Commercial | — | — | — | (13 | ) | (13 | ) | — | — | — | — | — | ||||||||||||||||||
Total mortgage-backed securities | — | — | — | (13 | ) | (13 | ) | — | — | — | — | — | ||||||||||||||||||
Corporate debt securities | 31 | — | — | — | 31 | 8 | — | — | (1 | ) | 7 | |||||||||||||||||||
Collateralized loan and other debt obligations | — | — | — | (24 | ) | (24 | ) | |||||||||||||||||||||||
Asset-backed securities: | ||||||||||||||||||||||||||||||
Other asset-backed securities | — | — | 9 | (108 | ) | (99 | ) | |||||||||||||||||||||||
Total asset-backed securities | — | — | 9 | (108 | ) | (99 | ) | |||||||||||||||||||||||
Other | — | (2 | ) | 57 | (183 | ) | (128 | ) | ||||||||||||||||||||||
Total available-for-sale debt securities | 31 | — | 9 | (194 | ) | (154 | ) | 8 | (2 | ) | 63 | (223 | ) | (154 | ) | |||||||||||||||
Mortgage loans held for sale | 20 | (68 | ) | 109 | (36 | ) | 25 | 30 | (47 | ) | 54 | (59 | ) | (22 | ) | |||||||||||||||
Loans held for sale | — | — | — | — | — | — | (1 | ) | — | (2 | ) | (3 | ) | |||||||||||||||||
Loans | — | — | 4 | (35 | ) | (31 | ) | — | — | 2 | (26 | ) | (24 | ) | ||||||||||||||||
Mortgage servicing rights (residential) (1) | — | (1 | ) | 486 | — | 485 | — | (1 | ) | 400 | — | 399 | ||||||||||||||||||
Net derivative assets and liabilities: | ||||||||||||||||||||||||||||||
Interest rate contracts | — | — | — | 30 | 30 | — | — | — | (133 | ) | (133 | ) | ||||||||||||||||||
Commodity contracts | — | — | — | (2 | ) | (2 | ) | — | — | — | 64 | 64 | ||||||||||||||||||
Equity contracts | — | — | — | (7 | ) | (7 | ) | — | — | — | (66 | ) | (66 | ) | ||||||||||||||||
Foreign exchange contracts | — | — | — | 2 | 2 | — | — | — | 3 | 3 | ||||||||||||||||||||
Credit contracts | 5 | (2 | ) | — | (8 | ) | (5 | ) | 2 | (3 | ) | — | — | (1 | ) | |||||||||||||||
Total derivative contracts | 5 | (2 | ) | — | 15 | 18 | 2 | (3 | ) | — | (132 | ) | (133 | ) | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||
Marketable | — | — | — | — | — | |||||||||||||||||||||||||
Nonmarketable | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total equity securities | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Other liabilities | — | — | — | — | — | — | — | — | — | — |
(1) | For more information on the changes in mortgage servicing rights, see Note 11 (Mortgage Banking Activities). |
Total net gains (losses) included in | Purchases, sales, issuances and settlements, net (1) | Net unrealized gains (losses) included in income related to assets and liabilities held at period end (4) | Total net gains (losses) included in | Purchases, sales, issuances and settlements, net (1) | Net unrealized gains (losses) related to assets and liabilities held at period end included in | ||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Balance, beginning of period | Net income | Other compre- hensive income | Transfers into Level 3 (2) | Transfers out of Level 3 (3) | Balance, end of period | Balance, beginning of period | Net income | Other compre- hensive income | Transfers into Level 3 (2) | Transfers out of Level 3 (3) | Balance, end of period | Net income | (4) | Other compre- hensive income | ||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading debt securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | $ | 3 | — | — | (2 | ) | — | (1 | ) | — | — | $ | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Collateralized loan obligations | 237 | (5 | ) | — | 17 | — | — | 249 | (4 | ) | 183 | (69 | ) | — | 23 | 16 | (25 | ) | 128 | (62 | ) | — | |||||||||||||||||||||||||||||||
Corporate debt securities | 34 | 3 | — | 7 | 1 | (1 | ) | 44 | 3 | 38 | (11 | ) | — | 4 | — | (8 | ) | 23 | — | — | |||||||||||||||||||||||||||||||||
Other trading debt securities | 16 | (2 | ) | — | — | — | — | 14 | — | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | — | (7 | ) | — | 23 | 52 | (19 | ) | 49 | (5 | ) | — | |||||||||||||||||||||||||||||||||||||||||
Other | 2 | 2 | — | (28 | ) | 47 | — | 23 | (2 | ) | — | ||||||||||||||||||||||||||||||||||||||||||
Total trading debt securities | 290 | (4 | ) | — | 22 | 1 | (2 | ) | 307 | (1 | ) | (5) | 223 | (85 | ) | — | 22 | 115 | (52 | ) | 223 | (69 | ) | (5) | — | ||||||||||||||||||||||||||||
Available-for-sale debt securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | 444 | 1 | 5 | (10 | ) | — | (49 | ) | 391 | — | 413 | 1 | — | (44 | ) | 67 | (86 | ) | 351 | — | — | ||||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | — | — | — | (3 | ) | 1 | 13 | (11 | ) | — | — | — | ||||||||||||||||||||||||||||||||||
Commercial | 41 | — | — | — | — | — | 41 | — | 42 | 1 | (14 | ) | (3 | ) | 155 | (120 | ) | 61 | (2 | ) | (2 | ) | |||||||||||||||||||||||||||||||
Total mortgage-backed securities | 41 | — | — | — | — | — | 41 | — | 42 | 1 | (17 | ) | (2 | ) | 168 | (131 | ) | 61 | (2 | ) | (2 | ) | |||||||||||||||||||||||||||||||
Corporate debt securities | 370 | 1 | 3 | 9 | — | — | 383 | — | 367 | (54 | ) | 27 | (46 | ) | 831 | (74 | ) | 1,051 | (56 | ) | 36 | ||||||||||||||||||||||||||||||||
Collateralized loan and other debt obligations | 800 | 13 | (10 | ) | (154 | ) | — | — | 649 | — | |||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | 389 | — | (1 | ) | (47 | ) | — | — | 341 | — | |||||||||||||||||||||||||||||||||||||||||||
Total asset-backed securities | 389 | — | (1 | ) | (47 | ) | — | — | 341 | — | |||||||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | — | — | (9 | ) | — | 68 | (50 | ) | 9 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other | 743 | 6 | (76 | ) | (58 | ) | 38 | (27 | ) | 626 | (1 | ) | (74 | ) | |||||||||||||||||||||||||||||||||||||||
Total available-for-sale debt securities | 2,044 | 15 | (3 | ) | (202 | ) | — | (49 | ) | 1,805 | — | (6) | 1,565 | (46 | ) | (75 | ) | (150 | ) | 1,172 | (368 | ) | 2,098 | (59 | ) | (6 | ) | (40 | ) | ||||||||||||||||||||||||
Mortgage loans held for sale | 997 | 52 | — | (88 | ) | 160 | (6 | ) | 1,115 | 54 | (7) | 1,198 | (98 | ) | — | 449 | 1,402 | (2,200 | ) | 751 | (30 | ) | (7 | ) | — | ||||||||||||||||||||||||||||
Loans held for sale | 60 | — | — | 8 | 37 | (93 | ) | 12 | — | 16 | (6 | ) | — | (9 | ) | 7 | (1 | ) | 7 | (4 | ) | (5 | ) | — | |||||||||||||||||||||||||||||
Loans | 244 | 1 | — | (43 | ) | — | — | 202 | (4 | ) | (7) | 171 | (2 | ) | — | (17 | ) | — | — | 152 | (6 | ) | (7 | ) | — | ||||||||||||||||||||||||||||
Mortgage servicing rights (residential) (8) | 14,649 | (3,012 | ) | — | 459 | — | — | 12,096 | (1,969 | ) | (7) | 11,517 | (5,589 | ) | — | 891 | — | — | 6,819 | (4,388 | ) | (7 | ) | — | |||||||||||||||||||||||||||||
Net derivative assets and liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | 25 | 424 | — | (244 | ) | — | — | 205 | 220 | 214 | 1,204 | — | (895 | ) | — | — | 523 | 374 | — | ||||||||||||||||||||||||||||||||||
Commodity contracts | 4 | (126 | ) | — | 91 | 2 | — | (29 | ) | (26 | ) | (16 | ) | (65 | ) | — | 70 | 12 | — | 1 | 18 | — | |||||||||||||||||||||||||||||||
Equity contracts | (17 | ) | (104 | ) | — | (69 | ) | 7 | (45 | ) | (228 | ) | (175 | ) | (269 | ) | 153 | — | 152 | (10 | ) | (6 | ) | 20 | 48 | — | |||||||||||||||||||||||||||
Foreign exchange contracts | (26 | ) | 10 | — | 6 | — | — | (10 | ) | 17 | (18 | ) | (2 | ) | — | 4 | — | — | (16 | ) | (6 | ) | — | ||||||||||||||||||||||||||||||
Credit contracts | 35 | 5 | — | 5 | — | — | 45 | 10 | 29 | 19 | — | 2 | — | — | 50 | 21 | — | ||||||||||||||||||||||||||||||||||||
Total derivative contracts | 21 | 209 | — | (211 | ) | 9 | (45 | ) | (17 | ) | 46 | (9) | (60 | ) | 1,309 | — | (667 | ) | 2 | (6 | ) | 578 | 455 | (9 | ) | — | |||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable | 3 | — | — | — | — | (3 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Nonmarketable | 5,468 | 1,650 | — | (1 | ) | 5 | (12 | ) | 7,110 | 1,650 | 7,847 | 313 | — | — | 7 | (2 | ) | 8,165 | 310 | — | |||||||||||||||||||||||||||||||||
Total equity securities | 5,468 | 1,650 | — | (1 | ) | 5 | (12 | ) | 7,110 | 1,650 | (10) | 7,850 | 313 | — | — | 7 | (5 | ) | 8,165 | 310 | (10 | ) | — | ||||||||||||||||||||||||||||||
Short sale liabilities | — | — | — | (3 | ) | — | — | (3 | ) | — | (5 | ) | — | ||||||||||||||||||||||||||||||||||||||||
Other liabilities | (2 | ) | — | — | — | — | — | (2 | ) | — | (7) | (2 | ) | — | — | — | — | — | (2 | ) | — | (7 | ) | — |
(1) | See Table 16.8 for detail. |
(2) | All assets and liabilities transferred into level 3 were previously classified within level 2. |
(3) | All assets and liabilities transferred out of level 3 are classified as level 2. |
(4) | Represents only net gains (losses) that are due to changes in economic conditions and management’s estimates of fair value and excludes changes due to the collection/realization of cash flows over time. |
(5) | Included in net gains |
(6) | Included in net gains |
(7) | Included in mortgage banking and other noninterest income in the income statement. |
(8) | For more information on the changes in mortgage servicing rights, see Note 11 (Mortgage Banking Activities). |
(9) | Included in mortgage banking income, net gains from trading activities, net gains (losses) from equity securities and other noninterest income in the income statement. |
(10) | Included in net gains (losses) from equity securities in the income statement. |
(in millions) | Purchases | Sales | Issuances | Settlements | Net | Purchases | Sales | Issuances | Settlements | Net | ||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||
Trading debt securities: | ||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | $ | — | — | — | (2 | ) | (2 | ) | $ | — | — | — | — | — | ||||||||||||||||
Collateralized loan obligations | 174 | (152 | ) | — | (5 | ) | 17 | 171 | (138 | ) | — | (10 | ) | 23 | ||||||||||||||||
Corporate debt securities | 11 | (4 | ) | — | — | 7 | 32 | (28 | ) | — | — | 4 | ||||||||||||||||||
Other trading debt securities | — | — | — | — | — | |||||||||||||||||||||||||
Mortgage-backed securities | 267 | (240 | ) | — | (4 | ) | 23 | |||||||||||||||||||||||
Other | 6 | (33 | ) | — | (1 | ) | (28 | ) | ||||||||||||||||||||||
Total trading debt securities | 185 | (156 | ) | — | (7 | ) | 22 | 476 | (439 | ) | — | (15 | ) | 22 | ||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | — | — | 55 | (65 | ) | (10 | ) | — | — | — | (44 | ) | (44 | ) | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||
Residential | — | — | — | — | — | 25 | (23 | ) | — | (1 | ) | 1 | ||||||||||||||||||
Commercial | — | — | — | — | — | — | — | — | (3 | ) | (3 | ) | ||||||||||||||||||
Total mortgage-backed securities | — | — | — | — | — | 25 | (23 | ) | — | (4 | ) | (2 | ) | |||||||||||||||||
Corporate debt securities | 11 | — | — | (2 | ) | 9 | 6 | — | — | (52 | ) | (46 | ) | |||||||||||||||||
Collateralized loan and other debt obligations | — | — | — | (154 | ) | (154 | ) | |||||||||||||||||||||||
Asset-backed securities: | ||||||||||||||||||||||||||||||
Other asset-backed securities | — | (5 | ) | 123 | (165 | ) | (47 | ) | ||||||||||||||||||||||
Total asset-backed securities | — | (5 | ) | 123 | (165 | ) | (47 | ) | ||||||||||||||||||||||
Collateralized loan obligations | — | — | — | — | — | |||||||||||||||||||||||||
Other | — | (10 | ) | — | (48 | ) | (58 | ) | ||||||||||||||||||||||
Total available-for-sale debt securities | 11 | (5 | ) | 178 | (386 | ) | (202 | ) | 31 | (33 | ) | — | (148 | ) | (150 | ) | ||||||||||||||
Mortgage loans held for sale | 46 | (140 | ) | 100 | (94 | ) | (88 | ) | 55 | (350 | ) | 905 | (161 | ) | 449 | |||||||||||||||
Loans held for sale | 12 | (2 | ) | — | (2 | ) | 8 | — | (8 | ) | — | (1 | ) | (9 | ) | |||||||||||||||
Loans | 2 | — | 5 | (50 | ) | (43 | ) | 1 | — | 4 | (22 | ) | (17 | ) | ||||||||||||||||
Mortgage servicing rights (residential) (1) | — | (282 | ) | 741 | — | 459 | — | (33 | ) | 923 | 1 | 891 | ||||||||||||||||||
Net derivative assets and liabilities: | ||||||||||||||||||||||||||||||
Interest rate contracts | — | — | — | (244 | ) | (244 | ) | — | — | — | (895 | ) | (895 | ) | ||||||||||||||||
Commodity contracts | — | — | — | 91 | 91 | — | — | — | 70 | 70 | ||||||||||||||||||||
Equity contracts | — | — | — | (69 | ) | (69 | ) | — | — | — | 152 | 152 | ||||||||||||||||||
Foreign exchange contracts | — | — | — | 6 | 6 | — | — | — | 4 | 4 | ||||||||||||||||||||
Credit contracts | 8 | (3 | ) | — | — | 5 | 8 | (4 | ) | — | (2 | ) | 2 | |||||||||||||||||
Total derivative contracts | 8 | (3 | ) | — | (216 | ) | (211 | ) | 8 | (4 | ) | — | (671 | ) | (667 | ) | ||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||
Marketable | — | — | — | — | — | |||||||||||||||||||||||||
Nonmarketable | — | (1 | ) | — | — | (1 | ) | — | — | — | — | — | ||||||||||||||||||
Total equity securities | — | (1 | ) | — | — | (1 | ) | — | — | — | — | — | ||||||||||||||||||
Short sale liabilities | — | (3 | ) | — | — | (3 | ) | |||||||||||||||||||||||
Other liabilities | — | — | — | — | — | — | — | — | — | — |
(1) | For more information on the changes in mortgage servicing rights, see Note 11 (Mortgage Banking Activities). |
Balance, beginning of period | Total net gains (losses) included in | Purchases, sales, issuances and settlements, net (1) | Net unrealized gains (losses) included in income related to assets and liabilities held at period end | Balance, beginning of period | Total net gains (losses) included in | Purchases, sales, issuances and settlements, net (1) | Net unrealized gains (losses) included in income related to assets and liabilities held at period end | |||||||||||||||||||||||||||||||||||||||||||
(in millions) | Net income | Other compre- hensive income | Transfers into Level 3 (2) | Transfers out of Level 3 (3) | Balance, end of period | (4) | Net income | Other compre- hensive income | Transfers into Level 3 (2) | Transfers out of Level 3 (3) | Balance, end of period | (4) | ||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Trading debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | $ | 3 | — | — | — | — | — | 3 | — | $ | 3 | — | — | (2 | ) | — | (1 | ) | — | — | ||||||||||||||||||||||||||||||
Collateralized loan obligations | 354 | (4 | ) | — | (59 | ) | — | — | 291 | — | 237 | (5 | ) | — | 17 | — | — | 249 | (4 | ) | ||||||||||||||||||||||||||||||
Corporate debt securities | 31 | — | — | 6 | — | (1 | ) | 36 | — | 34 | 3 | — | 7 | 1 | (1 | ) | 44 | 3 | ||||||||||||||||||||||||||||||||
Other trading debt securities | 19 | (2 | ) | — | — | — | — | 17 | — | |||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other | 16 | (2 | ) | — | — | — | — | 14 | — | |||||||||||||||||||||||||||||||||||||||||
Total trading debt securities | 407 | (6 | ) | — | (53 | ) | — | (1 | ) | 347 | — | (5) | 290 | (4 | ) | — | 22 | 1 | (2 | ) | 307 | (1 | ) | (5) | ||||||||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | 925 | 5 | (2 | ) | (90 | ) | — | (279 | ) | 559 | — | 444 | 1 | 5 | (10 | ) | — | (49 | ) | 391 | — | |||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | 1 | — | (1 | ) | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Commercial | 75 | 1 | (2 | ) | (21 | ) | — | — | 53 | — | 41 | — | — | — | — | — | 41 | — | ||||||||||||||||||||||||||||||||
Total mortgage-backed securities | 76 | 1 | (3 | ) | (21 | ) | — | — | 53 | — | 41 | — | — | — | — | — | 41 | — | ||||||||||||||||||||||||||||||||
Corporate debt securities | 407 | 2 | 4 | 30 | — | — | 443 | — | 370 | 1 | 3 | 9 | — | — | 383 | — | ||||||||||||||||||||||||||||||||||
Collateralized loan and other debt obligations | 1,020 | 11 | 53 | (47 | ) | — | — | 1,037 | — | |||||||||||||||||||||||||||||||||||||||||
Asset-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | 566 | 8 | (8 | ) | (165 | ) | — | — | 401 | — | ||||||||||||||||||||||||||||||||||||||||
Total asset-backed securities | 566 | 8 | (8 | ) | (165 | ) | — | — | 401 | — | ||||||||||||||||||||||||||||||||||||||||
Other | 1,189 | 13 | (11 | ) | (201 | ) | — | — | 990 | — | ||||||||||||||||||||||||||||||||||||||||
Total available-for-sale debt securities | 2,994 | 27 | 44 | (293 | ) | — | (279 | ) | 2,493 | — | (6) | 2,044 | 15 | (3 | ) | (202 | ) | — | (49 | ) | 1,805 | — | (6) | |||||||||||||||||||||||||||
Mortgage loans held for sale | 998 | (34 | ) | — | (12 | ) | 40 | (6 | ) | 986 | (32 | ) | (7) | 997 | 52 | — | (88 | ) | 160 | (6 | ) | 1,115 | 54 | (7) | ||||||||||||||||||||||||||
Loans held for sale | 14 | 1 | — | (16 | ) | 21 | — | 20 | — | 60 | — | — | 8 | 37 | (93 | ) | 12 | — | (5) | |||||||||||||||||||||||||||||||
Loans | 376 | (1 | ) | — | (54 | ) | — | — | 321 | (7 | ) | (7) | 244 | 1 | — | (43 | ) | — | — | 202 | (4 | ) | (7) | |||||||||||||||||||||||||||
Mortgage servicing rights (residential) (8) | 13,625 | 732 | — | 1,054 | — | — | 15,411 | 1,675 | (7) | 14,649 | (3,012 | ) | — | 459 | — | — | 12,096 | (1,969 | ) | (7) | ||||||||||||||||||||||||||||||
Net derivative assets and liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | 71 | (408 | ) | — | 296 | — | — | (41 | ) | (94 | ) | 25 | 424 | — | (244 | ) | — | — | 205 | 220 | ||||||||||||||||||||||||||||||
Commodity contracts | 19 | 30 | — | (26 | ) | 3 | — | 26 | 22 | 4 | (126 | ) | — | 91 | 2 | — | (29 | ) | (26 | ) | ||||||||||||||||||||||||||||||
Equity contracts | (511 | ) | 57 | — | 64 | — | 51 | (339 | ) | 80 | (17 | ) | (104 | ) | — | (69 | ) | 7 | (45 | ) | (228 | ) | (175 | ) | ||||||||||||||||||||||||||
Foreign exchange contracts | 7 | (25 | ) | — | 3 | — | — | (15 | ) | (17 | ) | (26 | ) | 10 | — | 6 | — | — | (10 | ) | 17 | |||||||||||||||||||||||||||||
Credit contracts | 36 | (4 | ) | — | (8 | ) | — | — | 24 | (8 | ) | 35 | 5 | — | 5 | — | — | 45 | 10 | |||||||||||||||||||||||||||||||
Total derivative contracts | (378 | ) | (350 | ) | — | 329 | 3 | 51 | (345 | ) | (17 | ) | (9) | 21 | 209 | — | (211 | ) | 9 | (45 | ) | (17 | ) | 46 | (9) | |||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Nonmarketable | 5,203 | 693 | — | (96 | ) | 10 | (4 | ) | 5,806 | 687 | 5,468 | 1,650 | — | (1 | ) | 5 | (12 | ) | 7,110 | 1,650 | ||||||||||||||||||||||||||||||
Total equity securities | 5,203 | 693 | — | (96 | ) | 10 | (4 | ) | 5,806 | 687 | (10) | 5,468 | 1,650 | — | (1 | ) | 5 | (12 | ) | 7,110 | 1,650 | (10) | ||||||||||||||||||||||||||||
Other liabilities | (3 | ) | 1 | — | — | — | — | (2 | ) | — | (7) | (2 | ) | — | — | — | — | — | (2 | ) | — | (7) |
(1) | See Table 16.10 for detail. |
(2) | All assets and liabilities transferred into level 3 were previously classified within level 2. |
(3) | All assets and liabilities transferred out of level 3 are classified as level 2. |
(4) | Represents only net gains (losses) that are due to changes in economic conditions and management’s estimates of fair value and excludes changes due to the collection/realization of cash flows over time. |
(5) | Included in net gains |
(6) | Included in net gains |
(7) | Included in mortgage banking and other noninterest income in the income statement. |
(8) | For more information on the changes in mortgage servicing rights, see Note 11 (Mortgage Banking Activities). |
(9) | Included in mortgage banking income, net gains from trading activities, net gains (losses) from equity securities and other noninterest income in the income statement. |
(10) | Included in net gains (losses) from equity securities in the income statement. |
(in millions) | Purchases | Sales | Issuances | Settlements | Net | Purchases | Sales | Issuances | Settlements | Net | ||||||||||||||||||||
Six months ended June 30, 2018 | ||||||||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||
Trading debt securities: | ||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | $ | — | — | — | — | — | $ | — | — | — | (2 | ) | (2 | ) | ||||||||||||||||
Collateralized loan obligations | 271 | (230 | ) | — | (100 | ) | (59 | ) | 174 | (152 | ) | — | (5 | ) | 17 | |||||||||||||||
Corporate debt securities | 8 | (2 | ) | — | — | 6 | 11 | (4 | ) | — | — | 7 | ||||||||||||||||||
Other trading debt securities | — | — | — | — | — | |||||||||||||||||||||||||
Mortgage-backed securities | — | — | — | — | — | |||||||||||||||||||||||||
Other | — | — | — | — | — | |||||||||||||||||||||||||
Total trading debt securities | 279 | (232 | ) | — | (100 | ) | (53 | ) | 185 | (156 | ) | — | (7 | ) | 22 | |||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | — | (4 | ) | 10 | (96 | ) | (90 | ) | — | — | 55 | (65 | ) | (10 | ) | |||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Commercial | — | — | — | (21 | ) | (21 | ) | — | — | — | — | — | ||||||||||||||||||
Total mortgage-backed securities | — | — | — | (21 | ) | (21 | ) | — | — | — | — | — | ||||||||||||||||||
Corporate debt securities | 31 | — | — | (1 | ) | 30 | 11 | — | — | (2 | ) | 9 | ||||||||||||||||||
Collateralized loan and other debt obligations | — | — | — | (47 | ) | (47 | ) | |||||||||||||||||||||||
Asset-backed securities: | ||||||||||||||||||||||||||||||
Other asset-backed securities | — | (8 | ) | 58 | (215 | ) | (165 | ) | ||||||||||||||||||||||
Total asset-backed securities | — | (8 | ) | 58 | (215 | ) | (165 | ) | ||||||||||||||||||||||
Other | — | (5 | ) | 123 | (319 | ) | (201 | ) | ||||||||||||||||||||||
Total available-for-sale debt securities | 31 | (12 | ) | 68 | (380 | ) | (293 | ) | 11 | (5 | ) | 178 | (386 | ) | (202 | ) | ||||||||||||||
Mortgage loans held for sale | 47 | (151 | ) | 167 | (75 | ) | (12 | ) | 46 | (140 | ) | 100 | (94 | ) | (88 | ) | ||||||||||||||
Loans held for sale | — | (16 | ) | — | — | (16 | ) | 12 | (2 | ) | — | (2 | ) | 8 | ||||||||||||||||
Loans | 1 | — | 8 | (63 | ) | (54 | ) | 2 | — | 5 | (50 | ) | (43 | ) | ||||||||||||||||
Mortgage servicing rights (residential) (1) | — | (5 | ) | 1,059 | — | 1,054 | — | (282 | ) | 741 | — | 459 | ||||||||||||||||||
Net derivative assets and liabilities: | ||||||||||||||||||||||||||||||
Interest rate contracts | — | — | — | 296 | 296 | — | — | — | (244 | ) | (244 | ) | ||||||||||||||||||
Commodity contracts | — | — | — | (26 | ) | (26 | ) | — | — | — | 91 | 91 | ||||||||||||||||||
Equity contracts | — | — | — | 64 | 64 | — | — | — | (69 | ) | (69 | ) | ||||||||||||||||||
Foreign exchange contracts | — | — | — | 3 | 3 | — | — | — | 6 | 6 | ||||||||||||||||||||
Credit contracts | 8 | (4 | ) | — | (12 | ) | (8 | ) | 8 | (3 | ) | — | — | 5 | ||||||||||||||||
Total derivative contracts | 8 | (4 | ) | — | 325 | 329 | 8 | (3 | ) | — | (216 | ) | (211 | ) | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||
Marketable | — | — | — | — | — | |||||||||||||||||||||||||
Nonmarketable | — | (17 | ) | — | (79 | ) | (96 | ) | — | (1 | ) | — | — | (1 | ) | |||||||||||||||
Total equity securities | — | (17 | ) | — | (79 | ) | (96 | ) | — | (1 | ) | — | — | (1 | ) | |||||||||||||||
Other liabilities | — | — | — | — | — | — | — | — | — | — |
(1) | For more information on the changes in mortgage servicing rights, see Note 11 (Mortgage Banking Activities). |
($ in millions, except cost to service amounts) | Fair Value Level 3 | Valuation Technique(s) | Significant Unobservable Input | Range of Inputs | Weighted Average (1) | Fair Value Level 3 | Valuation Technique(s) | Significant Unobservable Inputs | Range of Inputs Positive (Negative) | Weighted Average | ||||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||||||
Trading and available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions: | ||||||||||||||||||||||||||||||||||||
Government, healthcare and other revenue bonds | $ | 353 | Discounted cash flow | Discount rate | 1.5 | - | 6.2 | % | 3.0 | |||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | $ | 279 | Discounted cash flow | Discount rate | 0.6 | - | 4.8 | % | 1.4 | |||||||||||||||||||||||||||
38 | Vendor priced | 72 | Vendor priced | |||||||||||||||||||||||||||||||||
Collateralized loan and other debt obligations (2) | 249 | Market comparable pricing | Comparability adjustment | (11.3 | ) | - | 20.0 | 1.7 | ||||||||||||||||||||||||||||
Collateralized loan obligations | 127 | Market comparable pricing | Comparability adjustment | (31.6 | ) | - | 31.0 | (12.3 | ) | |||||||||||||||||||||||||||
649 | Vendor priced | 10 | Vendor priced | |||||||||||||||||||||||||||||||||
Corporate debt securities | 232 | Discounted cash flow | Discount rate | 2.0 | 14.9 | 8.5 | 852 | Discounted cash flow | Discount rate | 3.6 | - | 14.8 | 4.2 | |||||||||||||||||||||||
66 | Market comparable pricing | Comparability adjustment | (14.0 | ) | 14.4 | (2.8 | ) | 100 | Market comparable pricing | Comparability adjustment | (29.4 | ) | - | 8.8 | (22.1 | ) | ||||||||||||||||||||
129 | Vendor priced | 122 | Vendor priced | |||||||||||||||||||||||||||||||||
Asset-backed securities: | ||||||||||||||||||||||||||||||||||||
Diversified payment rights (3) | 132 | Discounted cash flow | Discount rate | 2.5 | - | 4.9 | 3.4 | |||||||||||||||||||||||||||||
Other commercial and consumer | 194 | (4) | Discounted cash flow | Discount rate | 3.9 | - | 4.8 | 4.0 | ||||||||||||||||||||||||||||
Mortgage-backed securities | 49 | Market comparable pricing | Comparability adjustment | (29.2 | ) | - | (4.7 | ) | (12.9 | ) | ||||||||||||||||||||||||||
61 | Vendor priced | |||||||||||||||||||||||||||||||||||
Other debt securities | 64 | Discounted cash flow | Discount rate | 1.4 | - | 3.4 | 2.6 | |||||||||||||||||||||||||||||
Weighted average life | 1.3 | - | 1.9 | yrs | 1.8 | 23 | Market comparable pricing | Comparability adjustment | (5.4 | ) | - | 9.2 | (3.0 | ) | ||||||||||||||||||||||
15 | Vendor priced | 562 | Vendor priced | |||||||||||||||||||||||||||||||||
Mortgage loans held for sale (residential) | 1,101 | Discounted cash flow | Default rate | 0.0 | - | 18.4 | % | 0.8 | 735 | Discounted cash flow | Default rate | 0.0 | - | 27.8 | 1.4 | |||||||||||||||||||||
Discount rate | 3.0 | - | 6.3 | 4.6 | Discount rate | 2.5 | - | 6.0 | 5.2 | |||||||||||||||||||||||||||
Loss severity | 0.0 | - | 46.4 | 25.0 | Loss severity | 0.0 | - | 32.0 | 21.5 | |||||||||||||||||||||||||||
Prepayment rate | 4.3 | - | 14.4 | 6.1 | Prepayment rate | 7.6 | - | 22.1 | 14.8 | |||||||||||||||||||||||||||
14 | Market comparable pricing | Comparability adjustment | (56.3 | ) | - | (25.0 | ) | (40.9 | ) | 16 | Market comparable pricing | Comparability adjustment | (50.0 | ) | - | (14.3 | ) | (38.1 | ) | |||||||||||||||||
Loans | 202 | (5) | Discounted cash flow | Discount rate | 3.9 | - | 4.4 | 4.1 | ||||||||||||||||||||||||||||
Loans (1) | 152 | Discounted cash flow | Discount rate | 3.9 | - | 5.6 | 4.3 | |||||||||||||||||||||||||||||
Default rate | 0.0 | 29.6 | 0.6 | |||||||||||||||||||||||||||||||||
Prepayment rate | 4.4 | - | 100.0 | 85.6 | Prepayment rate | 8.1 | - | 100.0 | 85.3 | |||||||||||||||||||||||||||
Loss severity | 0.0 | - | 34.8 | 12.0 | Loss severity | 0.0 | - | 41.9 | 14.9 | |||||||||||||||||||||||||||
Mortgage servicing rights (residential) | 12,096 | Discounted cash flow | Cost to service per loan (6) | $ | 63 | - | 482 | 104 | 6,819 | Discounted cash flow | Cost to service per loan (2) | $ | 65 | - | 1,138 | 152 | ||||||||||||||||||||
Discount rate | 6.5 | - | 13.2 | % | 7.4 | Discount rate | 6.1 | - | 9.1 | % | 6.8 | |||||||||||||||||||||||||
Prepayment rate (7) | 10.6 | - | 24.6 | 12.2 | Prepayment rate (3) | 12.7 | - | 26.4 | 18.5 | |||||||||||||||||||||||||||
Net derivative assets and (liabilities): | ||||||||||||||||||||||||||||||||||||
Interest rate contracts | 111 | Discounted cash flow | Default rate | 0.0 | - | 5.0 | 2.0 | 215 | Discounted cash flow | Default rate | 0.0 | - | 6.0 | 1.6 | ||||||||||||||||||||||
Loss severity | 50.0 | - | 50.0 | 50.0 | ||||||||||||||||||||||||||||||||
Loss severity | 50.0 | - | 50.0 | 50.0 | Prepayment rate | 2.8 | - | 22.0 | 14.7 | |||||||||||||||||||||||||||
Prepayment rate | 2.8 | - | 25.0 | 15.3 | 13 | Market comparable pricing | Comparability adjustment | (23.7 | ) | (21.2 | ) | (22.2 | ) | |||||||||||||||||||||||
Interest rate contracts: derivative loan commitments | 94 | Discounted cash flow | Fall-out factor | 1.0 | - | 99.0 | 19.5 | 295 | Discounted cash flow | Fall-out factor | 1.0 | - | 99.0 | 20.5 | ||||||||||||||||||||||
Initial-value servicing | (40.5 | ) | - | 67.1 | bps | 12.3 | Initial-value servicing | (37.1 | ) | - | 137.0 | bps | 42.3 | |||||||||||||||||||||||
Equity contracts | 146 | Discounted cash flow | Conversion factor | (8.9 | ) | - | 0.0 | % | (8.3 | ) | 171 | Discounted cash flow | Conversion factor | (8.8 | ) | - | 0.0 | % | (7.7 | ) | ||||||||||||||||
Weighted average life | 1.0 | - | 3.5 | yrs | 2.0 | Weighted average life | 0.5 | - | 2.5 | yrs | 1.1 | |||||||||||||||||||||||||
(374 | ) | Option model | Correlation factor | (77.0 | ) | - | 98.5 | % | 63.9 | (151 | ) | Option model | Correlation factor | (77.0 | ) | - | 99.0 | % | 37.7 | |||||||||||||||||
Volatility factor | 6.5 | - | 105.2 | 24.1 | Volatility factor | 6.5 | - | 83.4 | 27.0 | |||||||||||||||||||||||||||
Credit contracts | 2 | Market comparable pricing | Comparability adjustment | (48.3 | ) | - | 29.6 | (6.9 | ) | 38 | Market comparable pricing | Comparability adjustment | (96.8 | ) | - | 477.6 | 14.8 | |||||||||||||||||||
43 | Option model | Credit spread | 0.1 | - | 21.4 | 0.9 | 12 | Option model | Credit spread | 0.0 | - | 86.2 | 2.5 | |||||||||||||||||||||||
Loss severity | 13.0 | - | 60.0 | 45.6 | Loss severity | 12.0 | - | 60.0 | 45.4 | |||||||||||||||||||||||||||
Nonmarketable equity securities | 7,110 | Market comparable pricing | Comparability adjustment | (21.7 | ) | - | (6.3 | ) | (16.6 | ) | 8,165 | Market comparable pricing | Comparability adjustment | 4.2 | - | 22.0 | 13.6 | |||||||||||||||||||
Insignificant Level 3 assets, net of liabilities | 26 | (8) | (13 | ) | ||||||||||||||||||||||||||||||||
Total level 3 assets, net of liabilities | $ | 22,628 | (9) | $ | 18,788 | (4) |
(1) |
Consists of reverse mortgage loans. |
The high end of the range of inputs is for servicing modified loans. For non-modified loans the range is |
Includes a blend of prepayment speeds and expected defaults. Prepayment speeds are influenced by mortgage interest rates as well as our estimation of drivers of borrower behavior. |
Consists of total Level 3 assets of |
($ in millions, except cost to service amounts) | Fair Value Level 3 | Valuation Technique(s) | Significant Unobservable Input | Range of Inputs | Weighted Average (1) | Fair Value Level 3 | Valuation Technique(s) | Significant Unobservable Inputs | Range of Inputs Positive (Negative) | Weighted Average | ||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||||||
Trading and available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions: | ||||||||||||||||||||||||||||||||||||
Government, healthcare and other revenue bonds | $ | 404 | Discounted cash flow | Discount rate | 2.1 | - | 6.4 | % | 3.4 | |||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | $ | 379 | Discounted cash flow | Discount rate | 1.3 | - | 5.4 | % | 2.4 | |||||||||||||||||||||||||||
43 | Vendor priced | 34 | Vendor priced | |||||||||||||||||||||||||||||||||
Collateralized loan and other debt obligations (2) | 298 | Market comparable pricing | Comparability adjustment | (13.5 | ) | - | 22.1 | 3.2 | ||||||||||||||||||||||||||||
739 | Vendor priced | |||||||||||||||||||||||||||||||||||
Collateralized loan obligations | 183 | Market comparable pricing | Comparability adjustment | (15.0 | ) | - | 19.2 | 1.3 | ||||||||||||||||||||||||||||
Corporate debt securities | 220 | Discounted cash flow | Discount rate | 4.0 | 11.7 | 8.5 | 220 | Discounted cash flow | Discount rate | 3.2 | 14.9 | 9.2 | ||||||||||||||||||||||||
56 | Market comparable pricing | Comparability adjustment | (11.3 | ) | 16.6 | (1.4 | ) | 60 | Market comparable pricing | Comparability adjustment | (19.7 | ) | 14.0 | (4.4 | ) | |||||||||||||||||||||
128 | Vendor priced | 125 | Vendor priced | |||||||||||||||||||||||||||||||||
Asset-backed securities: | ||||||||||||||||||||||||||||||||||||
Diversified payment rights (3) | 171 | Discounted cash flow | Discount rate | 3.4 | - | 6.2 | 4.4 | |||||||||||||||||||||||||||||
Other commercial and consumer | 198 | (4) | Discounted cash flow | Discount rate | 4.6 | - | 5.2 | 4.7 | ||||||||||||||||||||||||||||
Weighted average life | 1.1 | - | 1.5 | yrs | 1.1 | |||||||||||||||||||||||||||||||
Other debt securities | 92 | Discounted cash flow | Discount rate | 2.3 | - | 3.1 | 2.8 | |||||||||||||||||||||||||||||
20 | Vendor priced | 651 | Vendor priced | |||||||||||||||||||||||||||||||||
Mortgage loans held for sale (residential) | 982 | Discounted cash flow | Default rate | 0.0 | - | 15.6 | % | 0.8 | 1,183 | Discounted cash flow | Default rate | 0.0 | - | 15.5 | 0.7 | |||||||||||||||||||||
Discount rate | 1.1 | - | 6.6 | 5.5 | Discount rate | 3.0 | - | 5.6 | 4.5 | |||||||||||||||||||||||||||
Loss severity | — | - | 43.3 | 23.4 | Loss severity | 0.0 | - | 43.5 | 21.7 | |||||||||||||||||||||||||||
Prepayment rate | 3.2 | - | 13.4 | 4.6 | Prepayment rate | 5.7 | - | 15.4 | 7.8 | |||||||||||||||||||||||||||
15 | Market comparable pricing | Comparability adjustment | (56.3 | ) | - | (6.3 | ) | (36.3 | ) | 15 | Market comparable pricing | Comparability adjustment | (56.3 | ) | - | (6.3 | ) | (40.3 | ) | |||||||||||||||||
Loans | 244 | (5) | Discounted cash flow | Discount rate | 3.4 | - | 6.4 | 4.2 | ||||||||||||||||||||||||||||
Loans (1) | 171 | Discounted cash flow | Discount rate | 3.9 | - | 4.3 | 4.1 | |||||||||||||||||||||||||||||
Prepayment rate | 2.9 | - | 100.0 | 87.2 | Prepayment rate | 6.0 | - | 100.0 | 85.6 | |||||||||||||||||||||||||||
Loss severity | 0.0 | - | 34.8 | 10.2 | Loss severity | 0.0 | - | 36.5 | 14.1 | |||||||||||||||||||||||||||
Mortgage servicing rights (residential) | 14,649 | Discounted cash flow | Cost to service per loan (6) | $ | 62 | - | 507 | 106 | 11,517 | Discounted cash flow | Cost to service per loan (2) | $ | 61 | - | 495 | 102 | ||||||||||||||||||||
Discount rate | 7.1 | - | 15.3 | % | 8.1 | Discount rate | 6.0 | - | 13.6 | % | 7.2 | |||||||||||||||||||||||||
Prepayment rate (7) | 9.0 | - | 23.5 | 9.9 | Prepayment rate (3) | 9.6 | - | 24.4 | 11.9 | |||||||||||||||||||||||||||
Net derivative assets and (liabilities): | ||||||||||||||||||||||||||||||||||||
Interest rate contracts | (35 | ) | Discounted cash flow | Default rate | 0.0 | - | 5.0 | 2.0 | 146 | Discounted cash flow | Default rate | 0.0 | - | 5.0 | 1.7 | |||||||||||||||||||||
Loss severity | 50.0 | - | 50.0 | 50.0 | Loss severity | 50.0 | - | 50.0 | 50.0 | |||||||||||||||||||||||||||
Prepayment rate | 2.8 | - | 25.0 | 13.8 | Prepayment rate | 2.8 | - | 25.0 | 15.0 | |||||||||||||||||||||||||||
Interest rate contracts: derivative loan commitments | 60 | Discounted cash flow | Fall-out factor | 1.0 | - | 99.0 | 19.4 | 68 | Discounted cash flow | Fall-out factor | 1.0 | - | 99.0 | 16.7 | ||||||||||||||||||||||
Initial-value servicing | (36.6 | ) | - | 91.7 | bps | 18.5 | Initial-value servicing | (32.2 | ) | - | 149.0 | bps | 36.4 | |||||||||||||||||||||||
Equity contracts | 104 | Discounted cash flow | Conversion factor | (9.3 | ) | - | 0.0 | % | (7.8 | ) | 147 | Discounted cash flow | Conversion factor | (8.8 | ) | - | 0.0 | % | (7.7 | ) | ||||||||||||||||
Weighted average life | 1.0 | - | 3.0 | yrs | 1.8 | Weighted average life | 0.5 | - | 3.0 | yrs | 1.5 | |||||||||||||||||||||||||
(121 | ) | Option model | Correlation factor | (77.0 | ) | - | 99.0 | % | 21.6 | (416 | ) | Option model | Correlation factor | (77.0 | ) | - | 99.0 | % | 23.8 | |||||||||||||||||
Volatility factor | 6.5 | - | 100.0 | 21.8 | Volatility factor | 6.8 | - | 100.0 | 18.7 | |||||||||||||||||||||||||||
Credit contracts | 3 | Market comparable pricing | Comparability adjustment | (15.5 | ) | - | 40.0 | 3.5 | 2 | Market comparable pricing | Comparability adjustment | (56.1 | ) | - | 10.8 | (16.0 | ) | |||||||||||||||||||
32 | Option model | Credit spread | 0.9 | - | 21.5 | 1.3 | 27 | Option model | Credit spread | 0.0 | - | 17.8 | 0.8 | |||||||||||||||||||||||
Loss severity | 13.0 | - | 60.0 | 45.2 | Loss severity | 12.0 | - | 60.0 | 45.6 | |||||||||||||||||||||||||||
Nonmarketable equity securities | 5,468 | Market comparable pricing | Comparability adjustment | (20.6 | ) | - | (4.3 | ) | (15.8 | ) | 7,847 | Market comparable pricing | Comparability adjustment | (20.2 | ) | - | (4.2 | ) | (14.6 | ) | ||||||||||||||||
Insignificant Level 3 assets, net of liabilities | 93 | (8) | 27 | |||||||||||||||||||||||||||||||||
Total level 3 assets, net of liabilities | $ | 23,771 | (9) | $ | 22,478 | (4) |
(1) |
Consists of reverse mortgage loans. |
The high end of the range of inputs is for servicing modified loans. For non-modified loans the range is |
Includes a blend of prepayment speeds and expected defaults. Prepayment speeds are influenced by mortgage interest rates as well as our estimation of drivers of borrower behavior. |
Consists of total Level 3 assets of |
June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Mortgage loans held for sale (LOCOM) (1) | $ | — | 1,865 | 3,148 | 5,013 | — | 1,213 | 1,233 | 2,446 | |||||||||||||||
Loans held for sale | — | 26 | — | 26 | — | 313 | — | 313 | ||||||||||||||||
Loans: | ||||||||||||||||||||||||
Commercial | — | 215 | — | 215 | — | 339 | — | 339 | ||||||||||||||||
Consumer | — | 164 | 1 | 165 | — | 346 | 1 | 347 | ||||||||||||||||
Total loans (2) | — | 379 | 1 | 380 | — | 685 | 1 | 686 | ||||||||||||||||
Nonmarketable equity securities (3) | — | 812 | 83 | 895 | — | 774 | 157 | 931 | ||||||||||||||||
Other assets (4) | — | 153 | — | 153 | — | 149 | 6 | 155 | ||||||||||||||||
Total assets at fair value on a nonrecurring basis | $ | — | 3,235 | 3,232 | 6,467 | — | 3,134 | 1,397 | 4,531 |
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Mortgage loans held for sale (1) | $ | — | 981 | 1,791 | 2,772 | — | 2,034 | 3,803 | 5,837 | |||||||||||||||
Loans held for sale | — | 29 | — | 29 | — | 5 | — | 5 | ||||||||||||||||
Loans: | ||||||||||||||||||||||||
Commercial | — | 957 | — | 957 | — | 280 | — | 280 | ||||||||||||||||
Consumer | — | 161 | — | 161 | — | 213 | 1 | 214 | ||||||||||||||||
Total loans | — | 1,118 | — | 1,118 | — | 493 | 1 | 494 | ||||||||||||||||
Mortgage servicing rights (commercial) | — | — | 568 | 568 | — | — | — | — | ||||||||||||||||
Nonmarketable equity securities | — | �� | 726 | 788 | 1,514 | — | 1,308 | 173 | 1,481 | |||||||||||||||
Other assets | — | 532 | 439 | 971 | — | 359 | 27 | 386 | ||||||||||||||||
Total assets at fair value on a nonrecurring basis | $ | — | 3,386 | 3,586 | 6,972 | — | 4,199 | 4,004 | 8,203 |
(1) | Consists of commercial mortgages and residential real estate 1-4 family first mortgage loans. |
Six months ended June 30, | ||||||
(in millions) | 2020 | 2019 | ||||
Mortgage loans held for sale | $ | (61 | ) | 18 | ||
Loans held for sale | (16 | ) | (2 | ) | ||
Loans: | ||||||
Commercial | (392 | ) | (106 | ) | ||
Consumer | (128 | ) | (121 | ) | ||
Total loans | (520 | ) | (227 | ) | ||
Mortgage servicing rights (commercial) | (30 | ) | — | |||
Nonmarketable equity securities | (410 | ) | 264 | |||
Other assets | (394 | ) | (29 | ) | ||
Total | $ | (1,431 | ) | 24 |
Six months ended June 30, | ||||||
(in millions) | 2019 | 2018 | ||||
Mortgage loans held for sale (LOCOM) | $ | 18 | 13 | |||
Loans held for sale | (2 | ) | (78 | ) | ||
Loans: | ||||||
Commercial | (106 | ) | (138 | ) | ||
Consumer | (121 | ) | (185 | ) | ||
Total loans (1) | (227 | ) | (323 | ) | ||
Nonmarketable equity securities (2) | 264 | (17 | ) | |||
Other assets (3) | (29 | ) | (30 | ) | ||
Total | $ | 24 | (435 | ) |
($ in millions) | Fair Value Level 3 | Valuation Technique(s) (1) | Significant Unobservable Inputs (1) | Range of inputs | Weighted Average (2) | ||||||||||
June 30, 2019 | |||||||||||||||
Residential mortgage loans held for sale (LOCOM) | $ | 3,148 | (3) | Discounted cash flow | Default rate | (4) | 0.3 | — | 5.7 | % | 1.4 | % | |||
Discount rate | 1.5 | — | 9.5 | 4.8 | |||||||||||
Loss severity | 0.5 | — | 62.3 | 24.7 | |||||||||||
Prepayment rate | (5) | 5.1 | — | 100.0 | 21.6 | ||||||||||
Nonmarketable equity securities | — | Discounted cash flow | Discount rate | — | — | — | — | ||||||||
Insignificant level 3 assets | 84 | ||||||||||||||
Total | $ | 3,232 | |||||||||||||
December 31, 2018 | |||||||||||||||
Residential mortgage loans held for sale (LOCOM) | $ | 1,233 | (3) | Discounted cash flow | Default rate | (4) | 0.2 | — | 2.3 | % | 1.4 | % | |||
Discount rate | 1.5 | — | 8.5 | 4.0 | |||||||||||
Loss severity | 0.5 | — | 66.0 | 1.7 | |||||||||||
Prepayment rate | (5) | 3.5 | — | 100.0 | 46.5 | ||||||||||
Nonmarketable equity securities | 7 | Discounted cash flow | Discount rate | 10.5 | — | 10.5 | 10.5 | ||||||||
Insignificant level 3 assets | 157 | ||||||||||||||
Total | $ | 1,397 |
($ in millions) | Fair Value Level 3 | Valuation Technique(s) (1) | Significant Unobservable Inputs (1) | Range of Inputs Positive (Negative) | Weighted Average | ||||||||||||
June 30, 2020 | |||||||||||||||||
Residential mortgage loans held for sale | $ | 1,791 | (2) | Discounted cash flow | Default rate | (3) | 0.6 | — | 65.0 | % | 26.4 | ||||||
Discount rate | 0.7 | — | 8.5 | 4.3 | |||||||||||||
Loss severity | 1.0 | — | 83.9 | 8.7 | |||||||||||||
Prepayment rate | (4) | 3.4 | — | 100.0 | 42.5 | ||||||||||||
Mortgage servicing rights (commercial) | 568 | Discounted cash flow | Cost to service per loan | $ | 150 | — | 3,369 | 2,771 | |||||||||
Discount rate | 3.0 | — | 3.0 | % | 3.0 | ||||||||||||
Prepayment rate | 5.0 | — | 20.0 | 6.4 | |||||||||||||
Nonmarketable equity securities (5) | 674 | Market comparable pricing | Multiples | 0.1x | — | 11.6x | 5.1x | ||||||||||
353 | Market comparable pricing | Comparability adjustment | (100.0 | ) | — | (6.0 | )% | (44.3 | ) | ||||||||
110 | Other | Company risk factor | (100.0 | ) | — | (20.0 | ) | (43.4 | ) | ||||||||
87 | Discounted cash flow | Discount rate | 10.0 | — | 20.0 | 11.3 | |||||||||||
Company risk factor | (64.5 | ) | — | 0.0 | (26.6 | ) | |||||||||||
Crude oil prices ($/barrel) | $ | 48 | — | 48 | 48 | ||||||||||||
Natural gas prices ($/MMBtu) | 2 | — | 2 | 2 | |||||||||||||
Insignificant level 3 assets | 3 | ||||||||||||||||
Total | $ | 3,586 | |||||||||||||||
December 31, 2019 | |||||||||||||||||
Residential mortgage loans held for sale | $ | 3,803 | (2) | Discounted cash flow | Default rate | (3) | 0.3 | — | 48.3 | % | 4.6 | ||||||
Discount rate | 1.5 | — | 9.4 | 4.3 | |||||||||||||
Loss severity | 0.4 | — | 100.0 | 23.4 | |||||||||||||
Prepayment rate | (4) | 4.8 | — | 100.0 | 23.2 | ||||||||||||
Insignificant level 3 assets | 201 | ||||||||||||||||
Total | $ | 4,004 |
(1) | Refer to |
(2) |
Consists of approximately |
Applies only to non-government insured/guaranteed loans. |
Includes the impact on prepayment rate of expected defaults for government insured/guaranteed loans, which impact the frequency and timing of early resolution of loans. |
(5) | Includes $439 million of private equity and venture capital investments in consolidated portfolio companies classified in other assets on the balance sheet. |
June 30, 2020 | December 31, 2019 | |||||||||||||||||
(in millions) | Fair value carrying amount | Aggregate unpaid principal | Fair value carrying amount less aggregate unpaid principal | Fair value carrying amount | Aggregate unpaid principal | Fair value carrying amount less aggregate unpaid principal | ||||||||||||
Mortgage loans held for sale: | ||||||||||||||||||
Total loans | $ | 18,644 | 17,923 | 721 | 16,606 | 16,279 | 327 | |||||||||||
Nonaccrual loans | 134 | 165 | (31 | ) | 133 | 157 | (24 | ) | ||||||||||
Loans 90 days or more past due and still accruing | 140 | 152 | (12 | ) | 8 | 10 | (2 | ) | ||||||||||
Loans held for sale: | ||||||||||||||||||
Total loans | 1,201 | 1,329 | (128 | ) | 972 | 1,020 | (48 | ) | ||||||||||
Nonaccrual loans | 15 | 49 | (34 | ) | 21 | 29 | (8 | ) | ||||||||||
Loans: | ||||||||||||||||||
Total loans | 152 | 183 | (31 | ) | 171 | 201 | (30 | ) | ||||||||||
Nonaccrual loans | 118 | 149 | (31 | ) | 129 | 159 | (30 | ) |
June 30, 2019 | December 31, 2018 | |||||||||||||||||
(in millions) | Fair value carrying amount | Aggregate unpaid principal | Fair value carrying amount less aggregate unpaid principal | Fair value carrying amount | Aggregate unpaid principal | Fair value carrying amount less aggregate unpaid principal | ||||||||||||
Mortgage loans held for sale: | ||||||||||||||||||
Total loans | $ | 16,343 | 15,906 | 437 | 11,771 | 11,573 | 198 | |||||||||||
Nonaccrual loans | 130 | 155 | (25 | ) | 127 | 158 | (31 | ) | ||||||||||
Loans 90 days or more past due and still accruing | 8 | 10 | (2 | ) | 7 | 9 | (2 | ) | ||||||||||
Loans held for sale: | ||||||||||||||||||
Total loans | 1,118 | 1,166 | (48 | ) | 1,469 | 1,536 | (67 | ) | ||||||||||
Nonaccrual loans | 57 | 65 | (8 | ) | 21 | 32 | (11 | ) | ||||||||||
Loans: | ||||||||||||||||||
Total loans | 202 | 231 | (29 | ) | 244 | 274 | (30 | ) | ||||||||||
Nonaccrual loans | 150 | 179 | (29 | ) | 179 | 208 | (29 | ) |
2020 | 2019 | |||||||||||||||||
(in millions) | Mortgage banking noninterest income | Net gains (losses) from trading activities | Other noninterest income | Mortgage banking noninterest income | Net gains (losses) from trading activities | Other noninterest income | ||||||||||||
Quarter ended June 30, | ||||||||||||||||||
Mortgage loans held for sale | $ | 749 | — | — | 379 | — | — | |||||||||||
Loans held for sale | — | 24 | — | — | (4 | ) | — | |||||||||||
Loans | — | — | (2 | ) | — | — | 1 | |||||||||||
Six months ended June 30, | ||||||||||||||||||
Mortgage loans held for sale | $ | 1,097 | — | — | 593 | — | — | |||||||||||
Loans held for sale | — | 11 | — | — | 10 | 1 | ||||||||||||
Loans | — | — | (2 | ) | — | — | 1 |
2019 | 2018 | |||||||||||||||||
(in millions) | Mortgage banking noninterest income | Net gains (losses) from trading activities | Other noninterest income | Mortgage banking noninterest income | Net gains (losses) from trading activities | Other noninterest income | ||||||||||||
Quarter ended June 30, | ||||||||||||||||||
Mortgage loans held for sale | $ | 379 | — | — | 114 | — | — | |||||||||||
Loans held for sale | — | (4 | ) | — | — | 9 | — | |||||||||||
Loans | — | — | 1 | — | — | — | ||||||||||||
Other interests held (1) | — | (1 | ) | — | — | (1 | ) | — | ||||||||||
Six months ended June 30, | ||||||||||||||||||
Mortgage loans held for sale | $ | 593 | — | — | 55 | — | — | |||||||||||
Loans held for sale | — | 10 | 1 | — | 15 | — | ||||||||||||
Loans | — | — | 1 | — | — | (1 | ) | |||||||||||
Other interests held (1) | — | (2 | ) | — | — | (2 | ) | — |
Quarter ended June 30, | Six months ended June 30, | Quarter ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||
Gains (losses) attributable to instrument-specific credit risk: | |||||||||||||||||||||||||
Mortgage loans held for sale | $ | 16 | (2 | ) | 12 | (1 | ) | $ | (35 | ) | 16 | $ | (217 | ) | 12 | ||||||||||
Loans held for sale | (3 | ) | 9 | 11 | 15 | 26 | (3 | ) | 14 | 11 | |||||||||||||||
Total | $ | 13 | 7 | 23 | 14 | $ | (9 | ) | 13 | $ | (203 | ) | 23 |
Estimated fair value | |||||||||||||||
(in millions) | Carrying amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||
June 30, 2019 | |||||||||||||||
Financial assets | |||||||||||||||
Cash and due from banks (1) | $ | 20,880 | 20,880 | — | — | 20,880 | |||||||||
Interest-earning deposits with banks (1) | 143,547 | 143,312 | 235 | — | 143,547 | ||||||||||
Federal funds sold and securities purchased under resale agreements (1) | 112,119 | — | 112,119 | — | 112,119 | ||||||||||
Held-to-maturity debt securities | 145,876 | 45,336 | 101,943 | 585 | 147,864 | ||||||||||
Mortgage loans held for sale | 6,655 | — | 3,548 | 4,102 | 7,650 | ||||||||||
Loans held for sale | 63 | — | 63 | — | 63 | ||||||||||
Loans, net (2) | 920,977 | — | 49,839 | 878,601 | 928,440 | ||||||||||
Nonmarketable equity securities (cost method) | 5,622 | — | — | 5,654 | 5,654 | ||||||||||
Total financial assets | $ | 1,355,739 | 209,528 | 267,747 | 888,942 | 1,366,217 | |||||||||
Financial liabilities | |||||||||||||||
Deposits (3) | $ | 139,343 | — | 106,653 | 32,549 | 139,202 | |||||||||
Short-term borrowings | 115,344 | — | 115,345 | — | 115,345 | ||||||||||
Long-term debt (4) | 241,441 | — | 242,529 | 1,626 | 244,155 | ||||||||||
Total financial liabilities | $ | 496,128 | — | 464,527 | 34,175 | 498,702 | |||||||||
December 31, 2018 | |||||||||||||||
Financial assets | |||||||||||||||
Cash and due from banks (1) | $ | 23,551 | 23,551 | — | — | 23,551 | |||||||||
Interest-earning deposits with banks (1) | 149,736 | 149,542 | 194 | — | 149,736 | ||||||||||
Federal funds sold and securities purchased under resale agreements (1) | 80,207 | — | 80,207 | — | 80,207 | ||||||||||
Held-to-maturity debt securities | 144,788 | 44,339 | 97,275 | 501 | 142,115 | ||||||||||
Mortgage loans held for sale | 3,355 | — | 2,129 | 1,233 | 3,362 | ||||||||||
Loans held for sale | 572 | — | 572 | — | 572 | ||||||||||
Loans, net (2) | 923,703 | — | 45,190 | 872,725 | 917,915 | ||||||||||
Nonmarketable equity securities (cost method) | 5,643 | — | — | 5,675 | 5,675 | ||||||||||
Total financial assets | $ | 1,331,555 | 217,432 | 225,567 | 880,134 | 1,323,133 | |||||||||
Financial liabilities | |||||||||||||||
Deposits (3) | $ | 130,645 | — | 107,448 | 22,641 | 130,089 | |||||||||
Short-term borrowings | 105,787 | — | 105,789 | — | 105,789 | ||||||||||
Long-term debt (4) | 229,008 | — | 225,904 | 2,230 | 228,134 | ||||||||||
Total financial liabilities | $ | 465,440 | — | 439,141 | 24,871 | 464,012 |
Estimated fair value | |||||||||||||||
(in millions) | Carrying amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||
June 30, 2020 | |||||||||||||||
Financial assets | |||||||||||||||
Cash and due from banks (1) | $ | 24,704 | 24,704 | — | — | 24,704 | |||||||||
Interest-earning deposits with banks (1) | 237,799 | 237,583 | 216 | — | 237,799 | ||||||||||
Federal funds sold and securities purchased under resale agreements (1) | 79,289 | — | 79,289 | — | 79,289 | ||||||||||
Held-to-maturity debt securities, net | 169,002 | 50,504 | 125,483 | 895 | 176,882 | ||||||||||
Mortgage loans held for sale | 13,711 | — | 11,987 | 2,321 | 14,308 | ||||||||||
Loans held for sale | 138 | — | 139 | — | 139 | ||||||||||
Loans, net (2) | 899,347 | — | 55,225 | 854,436 | 909,661 | ||||||||||
Nonmarketable equity securities (cost method) | 3,794 | — | — | 3,838 | 3,838 | ||||||||||
Total financial assets | $ | 1,427,784 | 312,791 | 272,339 | 861,490 | 1,446,620 | |||||||||
Financial liabilities | |||||||||||||||
Deposits (3) | $ | 83,654 | — | 58,313 | 26,287 | 84,600 | |||||||||
Short-term borrowings | 60,485 | — | 60,486 | — | 60,486 | ||||||||||
Long-term debt (4) | 230,891 | — | 230,563 | 1,395 | 231,958 | ||||||||||
Total financial liabilities | $ | 375,030 | — | 349,362 | 27,682 | 377,044 | |||||||||
December 31, 2019 | |||||||||||||||
Financial assets | |||||||||||||||
Cash and due from banks (1) | $ | 21,757 | 21,757 | — | — | 21,757 | |||||||||
Interest-earning deposits with banks (1) | 119,493 | 119,257 | 236 | — | 119,493 | ||||||||||
Federal funds sold and securities purchased under resale agreements (1) | 102,140 | — | 102,140 | — | 102,140 | ||||||||||
Held-to-maturity debt securities | 153,933 | 46,138 | 109,933 | 789 | 156,860 | ||||||||||
Mortgage loans held for sale | 6,736 | — | 2,939 | 4,721 | 7,660 | ||||||||||
Loans held for sale | 5 | — | 5 | — | 5 | ||||||||||
Loans, net (2) | 933,042 | — | 54,125 | 891,714 | 945,839 | ||||||||||
Nonmarketable equity securities (cost method) | 4,790 | — | — | 4,823 | 4,823 | ||||||||||
Total financial assets | $ | 1,341,896 | 187,152 | 269,378 | 902,047 | 1,358,577 | |||||||||
Financial liabilities | |||||||||||||||
Deposits (3) | $ | 118,849 | — | 87,279 | 31,858 | 119,137 | |||||||||
Short-term borrowings | 104,512 | — | 104,513 | — | 104,513 | ||||||||||
Long-term debt (4) | 228,159 | — | 231,332 | 1,720 | 233,052 | ||||||||||
Total financial liabilities | $ | 451,520 | — | 423,124 | 33,578 | 456,702 |
(1) | Amounts consist of financial instruments for which carrying value approximates fair value. |
(2) | Excludes lease financing with a carrying amount of $16.7 billion and $19.5 billion at June 30, 2020 and December 31, 2019, respectively. |
(3) | Excludes deposit liabilities with no defined or contractual maturity of $1.3 trillion and $1.2 trillion at June 30, 2020 and December 31, 2019, respectively. |
(4) | Excludes capital lease obligations under capital leases of $30 million and $32 million at June 30, 2020 and December 31, 2019, respectively. |
Note 17: Preferred Stock |
June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||
Liquidation preference per share | Shares authorized and designated | Liquidation preference per share | Shares authorized and designated | Liquidation preference per share | Shares authorized and designated | Liquidation preference per share | Shares authorized and designated | |||||||||||||||||||
DEP Shares | ||||||||||||||||||||||||||
Dividend Equalization Preferred Shares (DEP) | $ | 10 | 97,000 | $ | 10 | 97,000 | $ | 10 | 97,000 | $ | 10 | 97,000 | ||||||||||||||
Series I | ||||||||||||||||||||||||||
Floating Class A Preferred Stock (1) | 100,000 | 25,010 | 100,000 | 25,010 | 100,000 | 25,010 | 100,000 | 25,010 | ||||||||||||||||||
Series K | ||||||||||||||||||||||||||
Floating Non-Cumulative Perpetual Class A Preferred Stock (2) | 1,000 | 3,500,000 | 1,000 | 3,500,000 | — | — | 1,000 | 3,500,000 | ||||||||||||||||||
Series L | ||||||||||||||||||||||||||
7.50% Non-Cumulative Perpetual Convertible Class A Preferred Stock | 1,000 | 4,025,000 | 1,000 | 4,025,000 | 1,000 | 4,025,000 | 1,000 | 4,025,000 | ||||||||||||||||||
Series N | ||||||||||||||||||||||||||
5.20% Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 30,000 | 25,000 | 30,000 | 25,000 | 30,000 | 25,000 | 30,000 | ||||||||||||||||||
Series O | ||||||||||||||||||||||||||
5.125% Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 27,600 | 25,000 | 27,600 | 25,000 | 27,600 | 25,000 | 27,600 | ||||||||||||||||||
Series P | ||||||||||||||||||||||||||
5.25% Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 26,400 | 25,000 | 26,400 | 25,000 | 26,400 | 25,000 | 26,400 | ||||||||||||||||||
Series Q | ||||||||||||||||||||||||||
5.85% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 69,000 | 25,000 | 69,000 | 25,000 | 69,000 | 25,000 | 69,000 | ||||||||||||||||||
Series R | ||||||||||||||||||||||||||
6.625% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 34,500 | 25,000 | 34,500 | 25,000 | 34,500 | 25,000 | 34,500 | ||||||||||||||||||
Series S | ||||||||||||||||||||||||||
5.90% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 80,000 | 25,000 | 80,000 | 25,000 | 80,000 | 25,000 | 80,000 | ||||||||||||||||||
Series T | ||||||||||||||||||||||||||
6.00% Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 32,200 | 25,000 | 32,200 | ||||||||||||||||||||||
6.00% Non-Cumulative Perpetual Class A Preferred Stock (4) | 25,000 | 32,200 | 25,000 | 32,200 | ||||||||||||||||||||||
Series U | ||||||||||||||||||||||||||
5.875% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 80,000 | 25,000 | 80,000 | 25,000 | 80,000 | 25,000 | 80,000 | ||||||||||||||||||
Series V | ||||||||||||||||||||||||||
6.00% Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 40,000 | 25,000 | 40,000 | 25,000 | 40,000 | 25,000 | 40,000 | ||||||||||||||||||
Series W | ||||||||||||||||||||||||||
5.70% Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 40,000 | 25,000 | 40,000 | 25,000 | 40,000 | 25,000 | 40,000 | ||||||||||||||||||
Series X | ||||||||||||||||||||||||||
5.50% Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 46,000 | 25,000 | 46,000 | 25,000 | 46,000 | 25,000 | 46,000 | ||||||||||||||||||
Series Y | ||||||||||||||||||||||||||
5.625% Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 27,600 | 25,000 | 27,600 | 25,000 | 27,600 | 25,000 | 27,600 | ||||||||||||||||||
Series Z | ||||||||||||||||||||||||||
4.750% Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 80,500 | — | — | ||||||||||||||||||||||
ESOP | ||||||||||||||||||||||||||
Cumulative Convertible Preferred Stock (3) | — | 1,213,418 | — | 1,406,460 | ||||||||||||||||||||||
Cumulative Convertible Preferred Stock (5) | — | 822,242 | — | 1,071,418 | ||||||||||||||||||||||
Total | 9,393,728 | 9,586,770 | 5,583,052 | 9,251,728 |
(1) | Preferred Stock, Series I, |
(2) | Floating rate for Preferred Stock, Series K, is three-month LIBOR plus 3.77%. In first quarter 2020, the remaining $1.8 billion of Preferred Stock, Series K, was redeemed. |
(3) | Preferred Stock, Series L, may be converted at any time, at the option of the holder, into 6.3814 shares of our common stock, plus cash in lieu of fractional shares, subject to anti-dilution adjustments. |
(4) | In first quarter 2020, $669 million of Preferred Stock, Series T, was redeemed. |
(5) | See the ESOP Cumulative Convertible Preferred Stock section in this Note for additional information about the liquidation |
June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except shares) | Shares issued and outstanding | Liquidation preference value | Carrying value | Discount | Shares issued and outstanding | Liquidation preference value | Carrying value | Discount | Shares issued and outstanding | Liquidation preference value | Carrying value | Discount | Shares issued and outstanding | Liquidation preference value | Carrying value | Discount | ||||||||||||||||||||||||||||||||||
DEP Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend Equalization Preferred Shares (DEP) | 96,546 | $ | — | — | — | 96,546 | $ | — | — | — | 96,546 | $ | — | — | — | 96,546 | $ | — | — | — | ||||||||||||||||||||||||||||||
Series I | ||||||||||||||||||||||||||||||||||||||||||||||||||
Floating Class A Preferred Stock | 25,010 | 2,501 | 2,501 | — | 25,010 | 2,501 | 2,501 | — | 25,010 | 2,501 | 2,501 | — | 25,010 | 2,501 | 2,501 | — | ||||||||||||||||||||||||||||||||||
Series K | ||||||||||||||||||||||||||||||||||||||||||||||||||
Floating Non-Cumulative Perpetual Class A Preferred Stock | 3,352,000 | 3,352 | 2,876 | 476 | 3,352,000 | 3,352 | 2,876 | 476 | — | — | — | — | 1,802,000 | 1,802 | 1,546 | 256 | ||||||||||||||||||||||||||||||||||
Series L (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Series L (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
7.50% Non-Cumulative Perpetual Convertible Class A Preferred Stock | 3,967,995 | 3,968 | 3,200 | 768 | 3,968,000 | 3,968 | 3,200 | 768 | 3,967,995 | 3,968 | 3,200 | 768 | 3,967,995 | 3,968 | 3,200 | 768 | ||||||||||||||||||||||||||||||||||
Series N (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Series N | ||||||||||||||||||||||||||||||||||||||||||||||||||
5.20% Non-Cumulative Perpetual Class A Preferred Stock | 30,000 | 750 | 750 | — | 30,000 | 750 | 750 | — | 30,000 | 750 | 750 | — | 30,000 | 750 | 750 | — | ||||||||||||||||||||||||||||||||||
Series O (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Series O | ||||||||||||||||||||||||||||||||||||||||||||||||||
5.125% Non-Cumulative Perpetual Class A Preferred Stock | 26,000 | 650 | 650 | — | 26,000 | 650 | 650 | — | 26,000 | 650 | 650 | — | 26,000 | 650 | 650 | — | ||||||||||||||||||||||||||||||||||
Series P (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Series P | ||||||||||||||||||||||||||||||||||||||||||||||||||
5.25% Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 625 | 625 | — | 25,000 | 625 | 625 | — | 25,000 | 625 | 625 | — | 25,000 | 625 | 625 | — | ||||||||||||||||||||||||||||||||||
Series Q | ||||||||||||||||||||||||||||||||||||||||||||||||||
5.85% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock | 69,000 | 1,725 | 1,725 | — | 69,000 | 1,725 | 1,725 | — | 69,000 | 1,725 | 1,725 | — | 69,000 | 1,725 | 1,725 | — | ||||||||||||||||||||||||||||||||||
Series R | ||||||||||||||||||||||||||||||||||||||||||||||||||
6.625% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock | 33,600 | 840 | 840 | — | 33,600 | 840 | 840 | — | 33,600 | 840 | 840 | — | 33,600 | 840 | 840 | — | ||||||||||||||||||||||||||||||||||
Series S | ||||||||||||||||||||||||||||||||||||||||||||||||||
5.90% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock | 80,000 | 2,000 | 2,000 | — | 80,000 | 2,000 | 2,000 | — | 80,000 | 2,000 | 2,000 | — | 80,000 | 2,000 | 2,000 | — | ||||||||||||||||||||||||||||||||||
Series T | ||||||||||||||||||||||||||||||||||||||||||||||||||
6.00% Non-Cumulative Perpetual Class A Preferred Stock | 32,000 | 800 | 800 | — | 32,000 | 800 | 800 | — | 5,280 | 131 | 131 | — | 32,000 | 800 | 800 | — | ||||||||||||||||||||||||||||||||||
Series U | ||||||||||||||||||||||||||||||||||||||||||||||||||
5.875% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock | 80,000 | 2,000 | 2,000 | — | 80,000 | 2,000 | 2,000 | — | 80,000 | 2,000 | 2,000 | — | 80,000 | 2,000 | 2,000 | — | ||||||||||||||||||||||||||||||||||
Series V | ||||||||||||||||||||||||||||||||||||||||||||||||||
6.00% Non-Cumulative Perpetual Class A Preferred Stock | 40,000 | 1,000 | 1,000 | — | 40,000 | 1,000 | 1,000 | — | 40,000 | 1,000 | 1,000 | — | 40,000 | 1,000 | 1,000 | — | ||||||||||||||||||||||||||||||||||
Series W | ||||||||||||||||||||||||||||||||||||||||||||||||||
5.70% Non-Cumulative Perpetual Class A Preferred Stock | 40,000 | 1,000 | 1,000 | — | 40,000 | 1,000 | 1,000 | — | 40,000 | 1,000 | 1,000 | — | 40,000 | 1,000 | 1,000 | — | ||||||||||||||||||||||||||||||||||
Series X | ||||||||||||||||||||||||||||||||||||||||||||||||||
5.50% Non-Cumulative Perpetual Class A Preferred Stock | 46,000 | 1,150 | 1,150 | — | 46,000 | 1,150 | 1,150 | — | 46,000 | 1,150 | 1,150 | — | 46,000 | 1,150 | 1,150 | — | ||||||||||||||||||||||||||||||||||
Series Y | ||||||||||||||||||||||||||||||||||||||||||||||||||
5.625% Non-Cumulative Perpetual Class A Preferred Stock | 27,600 | 690 | 690 | — | 27,600 | 690 | 690 | — | 27,600 | 690 | 690 | — | 27,600 | 690 | 690 | — | ||||||||||||||||||||||||||||||||||
Series Z | ||||||||||||||||||||||||||||||||||||||||||||||||||
4.750% Non-Cumulative Perpetual Class A Preferred Stock | 80,500 | 2,013 | 2,013 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
ESOP | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Convertible Preferred Stock | 1,213,418 | 1,214 | 1,214 | — | 1,406,460 | 1,407 | 1,407 | — | 822,242 | 823 | 823 | — | 1,071,418 | 1,072 | 1,072 | — | ||||||||||||||||||||||||||||||||||
Total | 9,184,169 | $ | 24,265 | 23,021 | 1,244 | 9,377,216 | $ | 24,458 | 23,214 | 1,244 | 5,494,773 | $ | 21,866 | 21,098 | 768 | 7,492,169 | $ | 22,573 | 21,549 | 1,024 |
(1) |
Floating rate for Preferred Stock, Series I, is the greater of three-month LIBOR plus 0.93% and 5.56975%. |
Floating rate for Preferred Stock, Series K, is three-month LIBOR plus 3.77%. In first quarter 2020, the remaining $1.8 billion of Preferred Stock, Series K, was redeemed. |
(3) | Preferred Stock, Series L, may be converted at any time, at the option of the holder, into 6.3814 shares of our common stock, plus cash in lieu of fractional shares, subject to anti-dilution adjustments. |
(4) | In first quarter 2020, $669 million of Preferred Stock, Series T, was redeemed. |
Shares issued and outstanding | Carrying value | Adjustable dividend rate | Shares issued and outstanding | Carrying value | Adjustable dividend rate | |||||||||||||||||||||||||||||||
(in millions, except shares) | Jun 30, 2019 | Dec 31, 2018 | Jun 30, 2019 | Dec 31, 2018 | Minimum | Maximum | Jun 30, 2020 | Dec 31, 2019 | Jun 30, 2020 | Dec 31, 2019 | Minimum | Maximum | ||||||||||||||||||||||||
ESOP Preferred Stock | ||||||||||||||||||||||||||||||||||||
$1,000 liquidation preference per share | ||||||||||||||||||||||||||||||||||||
2018 | 336,945 | 336,945 | 337 | 337 | 7.00 | % | 8.00 | % | 221,945 | 254,945 | 222 | 255 | 7.00 | % | 8.00 | % | ||||||||||||||||||||
2017 | 222,210 | 222,210 | 222 | 222 | 7.00 | 8.00 | 163,210 | 192,210 | 163 | 192 | 7.00 | 8.00 | ||||||||||||||||||||||||
2016 | 227,450 | 233,835 | 228 | 234 | 9.30 | 10.30 | 162,450 | 197,450 | 163 | 198 | 9.30 | 10.30 | ||||||||||||||||||||||||
2015 | 116,784 | 144,338 | 117 | 144 | 8.90 | 9.90 | 92,904 | 116,784 | 93 | 117 | 8.90 | 9.90 | ||||||||||||||||||||||||
2014 | 136,151 | 174,151 | 136 | 174 | 8.70 | 9.70 | 99,151 | 136,151 | 99 | 136 | 8.70 | 9.70 | ||||||||||||||||||||||||
2013 | 97,948 | 133,948 | 98 | 134 | 8.50 | 9.50 | 61,948 | 97,948 | 62 | 98 | 8.50 | 9.50 | ||||||||||||||||||||||||
2012 | 49,134 | 77,634 | 49 | 78 | 10.00 | 11.00 | 20,634 | 49,134 | 21 | 49 | 10.00 | 11.00 | ||||||||||||||||||||||||
2011 | 26,796 | 61,796 | 27 | 62 | 9.00 | 10.00 | — | 26,796 | — | 27 | 9.00 | 10.00 | ||||||||||||||||||||||||
2010 (1) | — | 21,603 | — | 22 | 9.50 | 10.50 | ||||||||||||||||||||||||||||||
Total ESOP Preferred Stock (2) | 1,213,418 | 1,406,460 | $ | 1,214 | 1,407 | |||||||||||||||||||||||||||||||
Unearned ESOP shares (3) | $ | (1,292 | ) | (1,502 | ) | |||||||||||||||||||||||||||||||
Total ESOP Preferred Stock (1) | 822,242 | 1,071,418 | $ | 823 | 1,072 | |||||||||||||||||||||||||||||||
Unearned ESOP shares (2) | $ | (875 | ) | (1,143 | ) |
(1) | At June 30, 2020, and December 31, 2019 |
(2) |
We recorded a corresponding charge to unearned ESOP shares in connection with the issuance of the ESOP Preferred Stock. The unearned ESOP shares are reduced as shares of the ESOP Preferred Stock are committed to be released. |
Note 18: Revenue from Contracts with Customers |
Quarter ended June 30, | Quarter ended June 30, | |||||||||||||||||||||||||||||||||||||||||
Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | |||||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Net interest income (1) | $ | 7,066 | 7,346 | 4,535 | 4,693 | 1,037 | 1,111 | (543 | ) | (609 | ) | 12,095 | 12,541 | $ | 5,699 | 7,066 | 3,891 | 4,535 | 736 | 1,037 | (446 | ) | (543 | ) | 9,880 | 12,095 | ||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 704 | 632 | 502 | 530 | 4 | 5 | (4 | ) | (4 | ) | 1,206 | 1,163 | 419 | 704 | 511 | 502 | 4 | 4 | (4 | ) | (4 | ) | 930 | 1,206 | ||||||||||||||||||
Trust and investment fees: | ||||||||||||||||||||||||||||||||||||||||||
Brokerage advisory, commissions and other fees | 480 | 465 | 74 | 78 | 2,248 | 2,284 | (484 | ) | (473 | ) | 2,318 | 2,354 | 433 | 480 | 79 | 74 | 2,039 | 2,248 | (434 | ) | (484 | ) | 2,117 | 2,318 | ||||||||||||||||||
Trust and investment management | 199 | 220 | 117 | 110 | 687 | 731 | (208 | ) | (226 | ) | 795 | 835 | 174 | 199 | 130 | 117 | 568 | 687 | (185 | ) | (208 | ) | 687 | 795 | ||||||||||||||||||
Investment banking | (18 | ) | — | 475 | 485 | (1 | ) | 1 | (1 | ) | — | 455 | 486 | (67 | ) | (18 | ) | 614 | 475 | 1 | (1 | ) | (1 | ) | (1 | ) | 547 | 455 | ||||||||||||||
Total trust and investment fees | 661 | 685 | 666 | 673 | 2,934 | 3,016 | (693 | ) | (699 | ) | 3,568 | 3,675 | 540 | 661 | 823 | 666 | 2,608 | 2,934 | (620 | ) | (693 | ) | 3,351 | 3,568 | ||||||||||||||||||
Card fees | 929 | 904 | 95 | 96 | 2 | 2 | (1 | ) | (1 | ) | 1,025 | 1,001 | 732 | 929 | 65 | 95 | 1 | 2 | (1 | ) | (1 | ) | 797 | 1,025 | ||||||||||||||||||
Other fees: | ||||||||||||||||||||||||||||||||||||||||||
Lending related charges and fees (1)(2) | 65 | 69 | 284 | 307 | 2 | 2 | (2 | ) | (2 | ) | 349 | 376 | ||||||||||||||||||||||||||||||
Lending related charges and fees (1) | 36 | 65 | 267 | 284 | 2 | 2 | (2 | ) | (2 | ) | 303 | 349 | ||||||||||||||||||||||||||||||
Cash network fees | 117 | 118 | — | 2 | — | — | — | — | 117 | 120 | 88 | 117 | — | — | — | — | — | — | 88 | 117 | ||||||||||||||||||||||
Commercial real estate brokerage commissions | — | — | 105 | 109 | — | — | — | — | 105 | 109 | — | — | — | 105 | — | — | — | — | — | 105 | ||||||||||||||||||||||
Wire transfer and other remittance fees | 71 | 67 | 49 | 53 | 2 | 2 | (1 | ) | (1 | ) | 121 | 121 | 60 | 71 | 38 | 49 | 2 | 2 | (1 | ) | (1 | ) | 99 | 121 | ||||||||||||||||||
All other fees(1) | 82 | 94 | 26 | 25 | — | 1 | — | — | 108 | 120 | ||||||||||||||||||||||||||||||||
All other fees (1) | 63 | 82 | 25 | 26 | — | — | — | — | 88 | 108 | ||||||||||||||||||||||||||||||||
Total other fees | 335 | 348 | 464 | 496 | 4 | 5 | (3 | ) | (3 | ) | 800 | 846 | 247 | 335 | 330 | 464 | 4 | 4 | (3 | ) | (3 | ) | 578 | 800 | ||||||||||||||||||
Mortgage banking (1) | 655 | 695 | 104 | 75 | (3 | ) | (2 | ) | 2 | 2 | 758 | 770 | 253 | 655 | 65 | 104 | (3 | ) | (3 | ) | 2 | 2 | 317 | 758 | ||||||||||||||||||
Insurance (1) | 11 | 16 | 75 | 78 | 17 | 18 | (10 | ) | (10 | ) | 93 | 102 | ||||||||||||||||||||||||||||||
Net gains (losses) from trading activities (1) | (11 | ) | 24 | 226 | 154 | 13 | 13 | 1 | — | 229 | 191 | 6 | (11 | ) | 794 | 226 | 6 | 13 | 1 | 1 | 807 | 229 | ||||||||||||||||||||
Net gains (losses) on debt securities (1) | 15 | (2 | ) | 5 | 42 | — | 1 | — | — | 20 | 41 | 123 | 15 | 89 | 5 | — | — | — | — | 212 | 20 | |||||||||||||||||||||
Net gains from equity securities (1) | 471 | 409 | 116 | 89 | 35 | (203 | ) | — | — | 622 | 295 | |||||||||||||||||||||||||||||||
Net gains (losses) from equity securities (1) | 388 | 471 | (16 | ) | 116 | 161 | 35 | — | — | 533 | 622 | |||||||||||||||||||||||||||||||
Lease income (1) | — | — | 424 | 443 | — | — | — | — | 424 | 443 | — | — | 334 | 424 | — | — | — | — | 334 | 424 | ||||||||||||||||||||||
Other income of the segment (1) | 969 | 749 | (147 | ) | (172 | ) | 7 | (15 | ) | (85 | ) | (77 | ) | 744 | 485 | |||||||||||||||||||||||||||
Other (1)(2) | 359 | 980 | (323 | ) | (72 | ) | 143 | 24 | (82 | ) | (95 | ) | 97 | 837 | ||||||||||||||||||||||||||||
Total noninterest income | 4,739 | 4,460 | 2,530 | 2,504 | 3,013 | 2,840 | (793 | ) | (792 | ) | 9,489 | 9,012 | 3,067 | 4,739 | 2,672 | 2,530 | 2,924 | 3,013 | (707 | ) | (793 | ) | 7,956 | 9,489 | ||||||||||||||||||
Revenue | $ | 11,805 | 11,806 | 7,065 | 7,197 | 4,050 | 3,951 | (1,336 | ) | (1,401 | ) | 21,584 | 21,553 | $ | 8,766 | 11,805 | 6,563 | 7,065 | 3,660 | 4,050 | (1,153 | ) | (1,336 | ) | 17,836 | 21,584 | ||||||||||||||||
Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||
Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | |||||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Net interest income (1) | $ | 14,314 | 14,541 | 9,069 | 9,225 | 2,138 | 2,223 | (1,115 | ) | (1,210 | ) | 24,406 | 24,779 | $ | 12,486 | 14,314 | 8,027 | 9,069 | 1,603 | 2,138 | (924 | ) | (1,115 | ) | 21,192 | 24,406 | ||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 1,314 | 1,271 | 985 | 1,064 | 8 | 9 | (7 | ) | (8 | ) | 2,300 | 2,336 | 1,119 | 1,314 | 1,019 | 985 | 9 | 8 | (8 | ) | (7 | ) | 2,139 | 2,300 | ||||||||||||||||||
Trust and investment fees: | ||||||||||||||||||||||||||||||||||||||||||
Brokerage advisory, commissions and other fees | 929 | 943 | 152 | 145 | 4,372 | 4,628 | (942 | ) | (959 | ) | 4,511 | 4,757 | 951 | 929 | 169 | 152 | 4,436 | 4,372 | (957 | ) | (942 | ) | 4,599 | 4,511 | ||||||||||||||||||
Trust and investment management | 409 | 453 | 231 | 223 | 1,363 | 1,474 | (422 | ) | (465 | ) | 1,581 | 1,685 | 368 | 409 | 261 | 231 | 1,150 | 1,363 | (391 | ) | (422 | ) | 1,388 | 1,581 | ||||||||||||||||||
Investment banking | (38 | ) | (10 | ) | 887 | 925 | 4 | 1 | (4 | ) | — | 849 | 916 | (166 | ) | (38 | ) | 1,104 | 887 | 2 | 4 | (2 | ) | (4 | ) | 938 | 849 | |||||||||||||||
Total trust and investment fees | 1,300 | 1,386 | 1,270 | 1,293 | 5,739 | 6,103 | (1,368 | ) | (1,424 | ) | 6,941 | 7,358 | 1,153 | 1,300 | 1,534 | 1,270 | 5,588 | 5,739 | (1,350 | ) | (1,368 | ) | 6,925 | 6,941 | ||||||||||||||||||
Card fees | 1,787 | 1,725 | 181 | 183 | 3 | 3 | (2 | ) | (2 | ) | 1,969 | 1,909 | 1,541 | 1,787 | 148 | 181 | 2 | 3 | (2 | ) | (2 | ) | 1,689 | 1,969 | ||||||||||||||||||
Other fees: | ||||||||||||||||||||||||||||||||||||||||||
Lending related charges and fees (1)(2) | 130 | 145 | 566 | 611 | 4 | 4 | (4 | ) | (4 | ) | 696 | 756 | ||||||||||||||||||||||||||||||
Lending related charges and fees (1) | 86 | 130 | 545 | 566 | 4 | 4 | (4 | ) | (4 | ) | 631 | 696 | ||||||||||||||||||||||||||||||
Cash network fees | 226 | 243 | — | 3 | — | — | — | — | 226 | 246 | 194 | 226 | — | — | — | — | — | — | 194 | 226 | ||||||||||||||||||||||
Commercial real estate brokerage commissions | — | — | 186 | 194 | — | — | — | — | 186 | 194 | — | — | 1 | 186 | — | — | — | — | 1 | 186 | ||||||||||||||||||||||
Wire transfer and other remittance fees | 135 | 130 | 97 | 105 | 4 | 4 | (2 | ) | (2 | ) | 234 | 237 | 126 | 135 | 81 | 97 | 4 | 4 | (2 | ) | (2 | ) | 209 | 234 | ||||||||||||||||||
All other fees (1) | 176 | 157 | 52 | 55 | — | 1 | — | — | 228 | 213 | 126 | 176 | 49 | 52 | — | — | — | — | 175 | 228 | ||||||||||||||||||||||
Total other fees | 667 | 675 | 901 | 968 | 8 | 9 | (6 | ) | (6 | ) | 1,570 | 1,646 | 532 | 667 | 676 | 901 | 8 | 8 | (6 | ) | (6 | ) | 1,210 | 1,570 | ||||||||||||||||||
Mortgage banking (1) | 1,296 | 1,537 | 172 | 168 | (6 | ) | (5 | ) | 4 | 4 | 1,466 | 1,704 | 593 | 1,296 | 105 | 172 | (6 | ) | (6 | ) | 4 | 4 | 696 | 1,466 | ||||||||||||||||||
Insurance (1) | 22 | 44 | 153 | 157 | 34 | 36 | (20 | ) | (21 | ) | 189 | 216 | ||||||||||||||||||||||||||||||
Net gains (losses) from trading activities (1) | (6 | ) | 23 | 559 | 379 | 32 | 32 | 1 | — | 586 | 434 | 35 | (6 | ) | 835 | 559 | (1 | ) | 32 | 2 | 1 | 871 | 586 | |||||||||||||||||||
Net gains on debt securities (1) | 52 | (2 | ) | 93 | 43 | — | 1 | — | — | 145 | 42 | |||||||||||||||||||||||||||||||
Net gains from equity securities (1) | 1,072 | 1,093 | 193 | 182 | 171 | (197 | ) | — | — | 1,436 | 1,078 | |||||||||||||||||||||||||||||||
Net gains (losses) on debt securities (1) | 317 | 52 | 132 | 93 | — | — | — | — | 449 | 145 | ||||||||||||||||||||||||||||||||
Net gains (losses) from equity securities (1) | (640 | ) | 1,072 | (111 | ) | 193 | (117 | ) | 171 | — | — | (868 | ) | 1,436 | ||||||||||||||||||||||||||||
Lease income (1) | — | — | 867 | 898 | — | — | — | — | 867 | 898 | — | — | 686 | 867 | — | — | — | — | 686 | 867 | ||||||||||||||||||||||
Other income of the segment (1) | 1,737 | 1,343 | (267 | ) | (84 | ) | 2 | (21 | ) | (154 | ) | (151 | ) | 1,318 | 1,087 | |||||||||||||||||||||||||||
Other (1)(2) | 1,126 | 1,759 | (671 | ) | (114 | ) | 289 | 36 | (180 | ) | (174 | ) | 564 | 1,507 | ||||||||||||||||||||||||||||
Total noninterest income | 9,241 | 9,095 | 5,107 | 5,251 | 5,991 | 5,970 | (1,552 | ) | (1,608 | ) | 18,787 | 18,708 | 5,776 | 9,241 | 4,353 | 5,107 | 5,772 | 5,991 | (1,540 | ) | (1,552 | ) | 14,361 | 18,787 | ||||||||||||||||||
Revenue | $ | 23,555 | 23,636 | 14,176 | 14,476 | 8,129 | 8,193 | (2,667 | ) | (2,818 | ) | 43,193 | 43,487 | $ | 18,262 | 23,555 | 12,380 | 14,176 | 7,375 | 8,129 | (2,464 | ) | (2,667 | ) | 35,553 | 43,193 |
(1) |
(2) |
Quarter ended June 30, | Quarter ended June 30, | |||||||||||||||||||||||||||||||||||||||||
Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | |||||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Overdraft fees | $ | 496 | 416 | 1 | 1 | 1 | 1 | — | — | 498 | 418 | $ | 243 | 496 | 1 | 1 | — | 1 | — | — | 244 | 498 | ||||||||||||||||||||
Account charges | 208 | 216 | 501 | 529 | 3 | 4 | (4 | ) | (4 | ) | 708 | 745 | 176 | 208 | 510 | 501 | 4 | 3 | (4 | ) | (4 | ) | 686 | 708 | ||||||||||||||||||
Service charges on deposit accounts | $ | 704 | 632 | 502 | 530 | 4 | 5 | (4 | ) | (4 | ) | 1,206 | 1,163 | $ | 419 | 704 | 511 | 502 | 4 | 4 | (4 | ) | (4 | ) | 930 | 1,206 | ||||||||||||||||
Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||
Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | |||||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Overdraft fees | $ | 913 | 828 | 2 | 3 | 1 | 1 | — | — | 916 | 832 | $ | 727 | 913 | 2 | 2 | — | 1 | — | — | 729 | 916 | ||||||||||||||||||||
Account charges | 401 | 443 | 983 | 1,061 | 7 | 8 | (7 | ) | (8 | ) | 1,384 | 1,504 | 392 | 401 | 1,017 | 983 | 9 | 7 | (8 | ) | (7 | ) | 1,410 | 1,384 | ||||||||||||||||||
Service charges on deposit accounts | $ | 1,314 | 1,271 | 985 | 1,064 | 8 | 9 | (7 | ) | (8 | ) | 2,300 | 2,336 | $ | 1,119 | 1,314 | 1,019 | 985 | 9 | 8 | (8 | ) | (7 | ) | 2,139 | 2,300 |
Quarter ended June 30, | Quarter ended June 30, | |||||||||||||||||||||||||||||||||||||||||
Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | |||||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Asset-based revenue (1) | $ | 369 | 365 | — | — | 1,698 | 1,722 | (369 | ) | (365 | ) | 1,698 | 1,722 | $ | 342 | 369 | — | — | 1,568 | 1,698 | (343 | ) | (369 | ) | 1,567 | 1,698 | ||||||||||||||||
Transactional revenue | 94 | 83 | 10 | 16 | 390 | 400 | (98 | ) | (92 | ) | 396 | 407 | 78 | 94 | 2 | 10 | 343 | 390 | (79 | ) | (98 | ) | 344 | 396 | ||||||||||||||||||
Other revenue | 17 | 17 | 64 | 62 | 160 | 162 | (17 | ) | (16 | ) | 224 | 225 | 13 | 17 | 77 | 64 | 128 | 160 | (12 | ) | (17 | ) | 206 | 224 | ||||||||||||||||||
Brokerage advisory, commissions and other fees | $ | 480 | 465 | 74 | 78 | 2,248 | 2,284 | (484 | ) | (473 | ) | 2,318 | 2,354 | $ | 433 | 480 | 79 | 74 | 2,039 | 2,248 | (434 | ) | (484 | ) | 2,117 | 2,318 | ||||||||||||||||
Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||
Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | |||||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Asset-based revenue (1) | $ | 712 | 736 | — | — | 3,278 | 3,465 | (712 | ) | (736 | ) | 3,278 | 3,465 | $ | 740 | 712 | — | — | 3,373 | 3,278 | (741 | ) | (712 | ) | 3,372 | 3,278 | ||||||||||||||||
Transactional revenue | 183 | 176 | 26 | 28 | 777 | 839 | (196 | ) | (192 | ) | 790 | 851 | 180 | 183 | 5 | 26 | 775 | 777 | (186 | ) | (196 | ) | 774 | 790 | ||||||||||||||||||
Other revenue | 34 | 31 | 126 | 117 | 317 | 324 | (34 | ) | (31 | ) | 443 | 441 | 31 | 34 | 164 | 126 | 288 | 317 | (30 | ) | (34 | ) | 453 | 443 | ||||||||||||||||||
Brokerage advisory, commissions and other fees | $ | 929 | 943 | 152 | 145 | 4,372 | 4,628 | (942 | ) | (959 | ) | 4,511 | 4,757 | $ | 951 | 929 | 169 | 152 | 4,436 | 4,372 | (957 | ) | (942 | ) | 4,599 | 4,511 |
(1) | We earned trailing commissions of |
Quarter ended June 30, | Quarter ended June 30, | |||||||||||||||||||||||||||||||||||||||||
Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | |||||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Investment management fees | $ | (1 | ) | — | — | — | 501 | 531 | — | — | 500 | 531 | $ | — | (1 | ) | — | — | 474 | 501 | — | — | 474 | 500 | ||||||||||||||||||
Trust fees | 200 | 232 | 83 | 82 | 175 | 185 | (208 | ) | (226 | ) | 250 | 273 | 175 | 200 | 81 | 83 | 101 | 175 | (185 | ) | (208 | ) | 172 | 250 | ||||||||||||||||||
Other revenue | — | (12 | ) | 34 | 28 | 11 | 15 | — | — | 45 | 31 | (1 | ) | — | 49 | 34 | (7 | ) | 11 | — | — | 41 | 45 | |||||||||||||||||||
Trust and investment management fees | $ | 199 | 220 | 117 | 110 | 687 | 731 | (208 | ) | (226 | ) | 795 | 835 | $ | 174 | 199 | 130 | 117 | 568 | 687 | (185 | ) | (208 | ) | 687 | 795 | ||||||||||||||||
Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||
Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | |||||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Investment management fees | $ | — | — | — | — | 978 | 1,065 | — | — | 978 | 1,065 | $ | — | — | — | — | 963 | 978 | — | — | 963 | 978 | ||||||||||||||||||||
Trust fees | 409 | 453 | 165 | 168 | 343 | 373 | (422 | ) | (465 | ) | 495 | 529 | 369 | 409 | 170 | 165 | 203 | 343 | (391 | ) | (422 | ) | 351 | 495 | ||||||||||||||||||
Other revenue | — | — | 66 | 55 | 42 | 36 | — | — | 108 | 91 | (1 | ) | — | 91 | 66 | (16 | ) | 42 | — | — | 74 | 108 | ||||||||||||||||||||
Trust and investment management fees | $ | 409 | 453 | 231 | 223 | 1,363 | 1,474 | (422 | ) | (465 | ) | 1,581 | 1,685 | $ | 368 | 409 | 261 | 231 | 1,150 | 1,363 | (391 | ) | (422 | ) | 1,388 | 1,581 |
Quarter ended June 30, | Quarter ended June 30, | |||||||||||||||||||||||||||||||||||||||||
Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | |||||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Credit card interchange and network revenues (1) | $ | 209 | 211 | 95 | 96 | 2 | 2 | (1 | ) | (1 | ) | 305 | 308 | $ | 154 | 209 | 65 | 95 | 1 | 2 | (1 | ) | (1 | ) | 219 | 305 | ||||||||||||||||
Debit card interchange and network revenues | 546 | 525 | — | — | — | — | — | — | 546 | 525 | 479 | 546 | — | — | — | — | — | — | 479 | 546 | ||||||||||||||||||||||
Late fees, cash advance fees, balance transfer fees, and annual fees | 174 | 168 | — | — | — | — | — | — | 174 | 168 | 99 | 174 | — | — | — | — | — | — | 99 | 174 | ||||||||||||||||||||||
Card fees | $ | 929 | 904 | 95 | 96 | 2 | 2 | (1 | ) | (1 | ) | 1,025 | 1,001 | $ | 732 | 929 | 65 | 95 | 1 | 2 | (1 | ) | (1 | ) | 797 | 1,025 | ||||||||||||||||
Six months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||
Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | Community Banking | Wholesale Banking | Wealth and Investment Management | Other | Consolidated Company | |||||||||||||||||||||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Credit card interchange and network revenues (1) | $ | 398 | 382 | 181 | 183 | 3 | 3 | (2 | ) | (2 | ) | 580 | 566 | $ | 288 | 398 | 148 | 181 | 2 | 3 | (2 | ) | (2 | ) | 436 | 580 | ||||||||||||||||
Debit card interchange and network revenues | 1,053 | 1,004 | — | — | — | — | — | — | 1,053 | 1,004 | 992 | 1,053 | — | — | — | — | — | — | 992 | 1,053 | ||||||||||||||||||||||
Late fees, cash advance fees, balance transfer fees, and annual fees | 336 | 339 | — | — | — | — | — | — | 336 | 339 | 261 | 336 | — | — | — | — | — | — | 261 | 336 | ||||||||||||||||||||||
Card fees | $ | 1,787 | 1,725 | 181 | 183 | 3 | 3 | (2 | ) | (2 | ) | 1,969 | 1,909 | $ | 1,541 | 1,787 | 148 | 181 | 2 | 3 | (2 | ) | (2 | ) | 1,689 | 1,969 |
(1) | The cost of credit card rewards and rebates of |
Note 19: Employee Benefits and Other Expenses |
2019 | 2018 | |||||||||||||||||
Pension benefits | Pension benefits | |||||||||||||||||
(in millions) | Qualified | Non-qualified | Other benefits | Qualified | Non-qualified | Other benefits | ||||||||||||
Quarter ended June 30, | ||||||||||||||||||
Service cost | $ | 3 | — | — | 2 | — | — | |||||||||||
Interest cost (1) | 104 | 5 | 6 | 98 | 6 | 5 | ||||||||||||
Expected return on plan assets (1) | (142 | ) | — | (7 | ) | (161 | ) | — | (8 | ) | ||||||||
Amortization of net actuarial loss (gain) (1) | 37 | 3 | (4 | ) | 33 | 3 | (5 | ) | ||||||||||
Amortization of prior service credit (1) | — | — | (3 | ) | — | — | (2 | ) | ||||||||||
Settlement loss (1) | — | — | — | — | — | — | ||||||||||||
Net periodic benefit cost (income) | $ | 2 | 8 | (8 | ) | (28 | ) | 9 | (10 | ) | ||||||||
Six months ended June 30, | ||||||||||||||||||
Service cost | $ | 6 | — | — | 3 | — | — | |||||||||||
Interest cost (1) | 209 | 11 | 11 | 196 | 11 | 10 | ||||||||||||
Expected return on plan assets (1) | (284 | ) | — | (14 | ) | (321 | ) | — | (15 | ) | ||||||||
Amortization of net actuarial loss (gain) (1) | 74 | 5 | (8 | ) | 66 | 6 | (9 | ) | ||||||||||
Amortization of prior service credit (1) | — | — | (5 | ) | — | — | (5 | ) | ||||||||||
Settlement loss (1) | — | 2 | — | — | 3 | — | ||||||||||||
Net periodic benefit cost (income) | $ | 5 | 18 | (16 | ) | (56 | ) | 20 | (19 | ) |
Table 19.1:Net Periodic Benefit Cost
Other Expenses Table 19.2 separately presents other expenses exceeding 1% of the sum of net interest income and total noninterest income in any of the periods presented. Table 19.2:Other Expenses
Table 20.1 shows earnings per common share and diluted earnings per common share and reconciles the numerator and denominator of both earnings per common share calculations. See Note 1 (Summary of Significant Accounting Policies) for discussion on share repurchases. Table 20.1: Earnings Per Common Share Calculations
Table 20.2 presents the outstanding Table 20.2: Outstanding Anti-Dilutive Securities
Table 20.3 presents dividends declared per common share. Table 20.3: Dividends Declared Per Common Share
Table 21.1 provides the components of OCI, reclassifications to net income by income statement line item, and the related tax effects. Table 21.1: Summary of Other Comprehensive Income
Note 21: Other Comprehensive Income (continued) Table 21.2: Cumulative OCI Balances
Corporate and Investment Banking; and Wealth and Investment Management. This new organizational structure is intended to help drive operating, control, and business performance. In July 2020, the Company completed the transition to this new organizational structure, including finalizing leadership for these principal business lines and aligning management reporting and allocation methodologies. These changes will not impact the consolidated financial results of the Company. Accordingly, we will update our Table 22.1: Operating Segments
The Company and each of its subsidiary banks are subject to regulatory capital adequacy requirements promulgated by federal Table 23.1 presents regulatory capital information for Wells Fargo & Company and the Bank Basel III capital At June 30, 2020, the Bank and our other insured depository institutions were considered well-capitalized under the requirements of the Federal Deposit Insurance Act. The Bank is an approved seller/servicer of mortgage loans and is required to maintain minimum levels of shareholders’ equity, as specified by various agencies, including the United States Department of Housing and Urban Development, GNMA, FHLMC and FNMA. At June 30, Table 23.1: Regulatory Capital Information(1)
*Denotes the lowest capital ratio as determined under the Advanced and Standardized Approaches.
RWAs for the Company and the Bank include an increase of $1.5 billion under both the Advanced Approach and Standardized Approach related to the impact of the CECL transition provision on the excess allowance for credit losses as of June 30, 2020.
Table 23.2 presents the minimum required regulatory capital ratios under Transition Requirements to which the Company and the Bank were subject as of June 30, December 31, Table 23.2: Minimum Required Regulatory Capital Ratios – Transition Requirements (1)
PART II – OTHER INFORMATION Item 1. Legal Proceedings Information in response to this item can be found in Note 14 (Legal Actions) to Financial Statements in this Report which information is incorporated by reference into this item. Item 1A. Risk Factors Information in response to this item can be found under the “Financial Review – Risk Factors” section in this Report which information is incorporated by reference into this item. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The following table shows Company repurchases of its common stock for each calendar month in the quarter ended June 30,
A list of exhibits to this Form 10-Q is set forth below. The Company’s SEC file number is 001-2979. On and before November 2, 1998, the Company filed documents with the SEC under the name Norwest Corporation. The former Wells Fargo & Company filed documents under SEC file number 001-6214.
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized. Dated: August
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