Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 10, 2023 | Jun. 30, 2022 | |
Document And Entity Information [Abstract] | |||
Document Annual Report | true | ||
Entity Incorporation, State or Country Code | DE | ||
City Area Code | (214) | ||
Local Phone Number | 462-6831 | ||
Title of 12(b) Security | Common Stock, $5 par value | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2022 | ||
Entity File Number | 1-10706 | ||
Amendment Flag | false | ||
Entity Registrant Name | Comerica Incorporated | ||
Entity Central Index Key | 0000028412 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 131,352,922 | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Public Float | $ 9,500,000,000 | ||
Document Transition Report | false | ||
Trading Symbol | CMA | ||
Security Exchange Name | NYSE | ||
Entity Address, Address Line One | 1717 Main Street, MC 6404 | ||
Entity Address, City or Town | Dallas | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75201 | ||
Entity Tax Identification Number | 38-1998421 | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Dallas, Texas | ||
Auditor Firm ID | 42 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 1,758 | $ 1,236 |
Interest-bearing deposits with banks | 4,524 | 21,443 |
Other short-term investments | 157 | 197 |
Investment Securities, Available-for-sale | 19,012 | 16,986 |
Commercial loans | 30,909 | 29,366 |
Real estate construction loans | 3,105 | 2,948 |
Commercial mortgage loans | 13,306 | 11,255 |
Lease financing | 760 | 640 |
International loans | 1,197 | 1,208 |
Residential mortgage loans | 1,814 | 1,771 |
Consumer loans | 2,311 | 2,097 |
Total loans | 53,402 | 49,285 |
Less allowance for loan losses | (610) | (588) |
Net loans | 52,792 | 48,697 |
Premises and equipment | 400 | 454 |
Accrued income and other assets | 6,763 | 5,603 |
Total assets | 85,406 | 94,616 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Noninterest-bearing deposits | 39,945 | 45,800 |
Money market and interest-bearing checking deposits | 26,290 | 31,349 |
Savings deposits | 3,225 | 3,167 |
Customer certificates of deposit | 1,762 | 1,973 |
Other time deposits | 124 | 0 |
Foreign office time deposits | 51 | 50 |
Total interest-bearing deposits | 31,452 | 36,539 |
Total deposits | 71,397 | 82,339 |
Short-term borrowings | 3,211 | 0 |
Accrued expenses and other liabilities | 2,593 | 1,584 |
Total medium- and long-term debt | 3,024 | 2,796 |
Total liabilities | 80,225 | 86,719 |
Fixed rate reset non-cumulative perpetual preferred stock, series A, no par value, $100,000 liquidation preference per share: Authorized - 4,000 shares, Issued - 4,000 shares at 12/31/2022 and 12/31/2021 | 394 | 394 |
Common stock - $5 par value: Authorized - 325,000,000 shares; Issued - 228,164,824 shares | 1,141 | 1,141 |
Capital surplus | 2,220 | 2,175 |
Accumulated other comprehensive loss | (3,742) | (212) |
Retained earnings | 11,258 | 10,494 |
Less cost of common stock in treasury - 97,197,962 shares at 12/31/22 and 97,476,872 shares at 12/31/21 | (6,090) | (6,095) |
Total shareholders' equity | 5,181 | 7,897 |
Total liabilities and shareholders' equity | $ 85,406 | $ 94,616 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, No Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 4,000 | 4,000 |
Preferred Stock, Shares Issued | 4,000 | 4,000 |
Common stock, par value | $ 5 | $ 5 |
Common stock, authorized shares | 325,000,000 | 325,000,000 |
Common stock, issued shares | 228,164,824 | 228,164,824 |
Shares in treasury | 97,197,962 | 97,476,872 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
INTEREST INCOME | ||||
Interest and fees on loans | $ 2,153 | $ 1,594 | $ 1,773 | |
Interest on investment securities | 414 | 280 | 291 | |
Interest on short-term investments | 105 | 27 | 29 | |
Total interest income | 2,672 | 1,901 | 2,093 | |
INTEREST EXPENSE | ||||
Interest on deposits | 102 | 22 | 101 | |
Interest on short-term borrowings | 17 | 0 | 1 | |
Total interest on medium- and long-term debt | [1] | 87 | 35 | 80 |
Total interest expense | 206 | 57 | 182 | |
Net interest income | 2,466 | 1,844 | 1,911 | |
Provision for credit losses | 60 | (384) | 537 | |
Net interest income after provision for credit losses | 2,406 | 2,228 | 1,374 | |
NONINTEREST INCOME | ||||
Card fees | 273 | 298 | 270 | |
Fiduciary income | 233 | 231 | 209 | |
Service charges on deposit accounts | 195 | 195 | 185 | |
Commercial lending fees | 109 | 104 | 77 | |
Derivative income | 109 | 99 | 67 | |
Bank-owned life insurance | 47 | 43 | 44 | |
Letter of credit fees | 38 | 40 | 37 | |
Brokerage fees | 21 | 14 | 21 | |
Other noninterest income | 43 | 99 | 91 | |
Total noninterest income | 1,068 | 1,123 | 1,001 | |
NONINTEREST EXPENSES | ||||
Salaries and benefits expense | 1,208 | 1,133 | 1,019 | |
Outside processing fee expense | 251 | 266 | 242 | |
Occupancy expense | 175 | 161 | 156 | |
Software expense | 161 | 155 | 154 | |
Equipment expense | 50 | 50 | 49 | |
Advertising expense | 38 | 35 | 35 | |
FDIC insurance expense | 31 | 22 | 33 | |
Other noninterest expenses | 84 | 39 | 66 | |
Total noninterest expenses | 1,998 | 1,861 | 1,754 | |
Income before income taxes | 1,476 | 1,490 | 621 | |
Provision for income taxes | 325 | 322 | 124 | |
Net Income | 1,151 | 1,168 | 497 | |
Less income allocated to participating securities | 6 | 5 | 2 | |
Preferred stock dividends | 23 | 23 | 13 | |
Net income attributable to common shares | $ 1,122 | $ 1,140 | $ 482 | |
Basic earnings per common share | $ 8.56 | $ 8.45 | $ 3.45 | |
Diluted earnings per common share | $ 8.47 | $ 8.35 | $ 3.43 | |
Cash dividends declared on common stock | $ 356 | $ 365 | $ 378 | |
Cash dividends declared per common share | $ 2.72 | $ 2.72 | $ 2.72 | |
[1]Includes the effects of hedging. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,151 | $ 1,168 | $ 497 |
Net unrealized holding (losses) gains arising during the period | (2,903) | (406) | 191 |
Change in net unrealized (losses) gains before income taxes | (2,903) | (406) | 191 |
Net cash flow hedge (losses) gains arising during the period before income taxes | (1,329) | (35) | 229 |
Net cash flow hedge (losses) gains recognized in interest and fees on loans before taxes | (25) | 95 | 70 |
Change in net cash flow hedge (losses) gains before income taxes | (1,304) | (130) | 159 |
Actuarial (loss) gain arising during the period | (415) | 159 | 128 |
Prior service credit arising during the period | 0 | 1 | 0 |
Amortization of actuarial net loss | 28 | 40 | 47 |
Amortization of prior service credit | (23) | (25) | (27) |
Change in defined benefit pension and other postretirement plans adjustment before income taxes | (410) | 175 | 148 |
Total other comprehensive (loss) income before income taxes | (4,617) | (361) | 498 |
(Benefit) provision for income taxes | (1,087) | (85) | 118 |
Total other comprehensive income (loss), net of tax | (3,530) | (276) | 380 |
Comprehensive (Loss) Income | $ (2,379) | $ 892 | $ 877 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Nonredeemable Preferred Stock | Common Stock | Capital Surplus | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Treasury Stock |
BALANCE (in shares) | 142.1 | ||||||
BALANCE at Dec. 31, 2019 | $ 7,327 | $ 0 | $ 1,141 | $ 2,174 | $ (316) | $ 9,619 | $ (5,291) |
Cumulative effect of change in accounting principle | 13 | 13 | |||||
Net income | 497 | 497 | |||||
Other comprehensive income (loss), net of tax | 380 | 380 | |||||
Cash dividends declared on common stock | (378) | (378) | |||||
Cash dividends declared on preferred stock | (13) | (13) | |||||
Purchase of common stock (in shares) | (3.4) | ||||||
Purchase of common stock | (194) | (194) | |||||
Issuance of preferred stock | 394 | 394 | |||||
Net issuance of common stock under employee stock plans (in shares) | 0.5 | ||||||
Net issuance of common stock under employee stock plans | 0 | (13) | (11) | 24 | |||
Share-based compensation | 24 | 24 | |||||
BALANCE at Dec. 31, 2020 | 8,050 | 394 | $ 1,141 | 2,185 | 64 | 9,727 | (5,461) |
BALANCE (in shares) | 139.2 | ||||||
Net income | 1,168 | 1,168 | |||||
Other comprehensive income (loss), net of tax | (276) | (276) | |||||
Cash dividends declared on common stock | (365) | (365) | |||||
Cash dividends declared on preferred stock | (23) | (23) | |||||
Purchase of common stock (in shares) | (9.5) | ||||||
Purchase of common stock | (723) | (24) | (699) | ||||
Issuance of preferred stock | 0 | ||||||
Net issuance of common stock under employee stock plans (in shares) | 1 | ||||||
Net issuance of common stock under employee stock plans | 25 | (27) | (13) | 65 | |||
Share-based compensation | 41 | 41 | |||||
BALANCE at Dec. 31, 2021 | 7,897 | 394 | $ 1,141 | 2,175 | (212) | 10,494 | (6,095) |
BALANCE (in shares) | 130.7 | ||||||
Net income | 1,151 | 1,151 | |||||
Other comprehensive income (loss), net of tax | (3,530) | (3,530) | |||||
Cash dividends declared on common stock | (356) | (356) | |||||
Cash dividends declared on preferred stock | (23) | (23) | |||||
Purchase of common stock (in shares) | (0.4) | ||||||
Purchase of common stock | (36) | (36) | |||||
Issuance of preferred stock | 0 | ||||||
Net issuance of common stock under employee stock plans (in shares) | 0.7 | ||||||
Net issuance of common stock under employee stock plans | 18 | (15) | (8) | 41 | |||
Share-based compensation | 60 | 60 | |||||
BALANCE at Dec. 31, 2022 | $ 5,181 | $ 394 | $ 1,141 | $ 2,220 | $ (3,742) | $ 11,258 | $ (6,090) |
BALANCE (in shares) | 131 |
Consolidated Statements Of Ch_2
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Changes in Equity Parenthetical [Abstract] | |||
Cash dividends declared per common share | $ 2.72 | $ 2.72 | $ 2.72 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | |||
Net income | $ 1,151 | $ 1,168 | $ 497 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 60 | (384) | 537 |
(Benefit) provision for deferred income taxes | (27) | 79 | (82) |
Depreciation and amortization | 92 | 99 | 108 |
Net periodic defined benefit credit | (91) | (81) | (55) |
Share-based compensation expense | 60 | 41 | 24 |
Net amortization of securities | 30 | 36 | 15 |
Net gains on sales of foreclosed property | (2) | 0 | (1) |
Net change in accrued income receivable | (152) | 13 | 25 |
Net change in accrued expenses payable | 131 | 132 | (29) |
Other, net | (614) | (469) | (111) |
Net cash provided by operating activities | 638 | 634 | 928 |
INVESTING ACTIVITIES | |||
Maturities and redemptions of investment securities available-for-sale | 2,511 | 5,536 | 3,350 |
Purchases of investment securities available-for-sale | (7,470) | (7,936) | (5,804) |
Net change in loans | (4,824) | 4,067 | (2,136) |
Proceeds from sales of foreclosed property | 3 | 8 | 5 |
Net increase in premises and equipment | (82) | (70) | (79) |
Purchases of Federal Home Loan Bank stock | (131) | 0 | (51) |
Redemptions of Federal Home Loan Bank stock | 0 | 115 | 92 |
Proceeds from bank-owned life insurance settlements | 39 | 16 | 20 |
Other, net | 2 | (13) | 1 |
Net cash (used in) provided by investing activities | (9,952) | 1,723 | (4,602) |
FINANCING ACTIVITIES | |||
Net change in deposits | (10,401) | 8,438 | 15,554 |
Net change in short-term borrowings | 3,211 | 0 | (71) |
Maturities and redemptions of medium- and long-term debt | 0 | (2,800) | (1,675) |
Issuances and advances of medium- and long-term debt | 500 | 0 | 0 |
Issuance of preferred stock | 0 | 0 | 394 |
Cash dividends paid on preferred stock | (23) | (23) | (8) |
Repurchases of common stock | (43) | (729) | (199) |
Cash dividends paid on common stock | (353) | (369) | (375) |
Issuances of common stock under employee stock plans | 28 | 34 | 4 |
Other, net | (2) | 4 | (1) |
Net cash (used in) provided by financing activities | (7,083) | 4,555 | 13,623 |
Net (decrease) increase in cash and cash equivalents | (16,397) | 6,912 | 9,949 |
Cash and cash equivalents at beginning of period | 22,679 | 15,767 | 5,818 |
Cash and cash equivalents at end of period | 6,282 | 22,679 | 15,767 |
Interest paid | 130 | 57 | 203 |
Income taxes paid | $ 277 | $ 157 | $ 141 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | BASIS OF PRESENTATION AND ACCOUNTING POLICIES Organization Comerica Incorporated (the Corporation) is a registered financial holding company headquartered in Dallas, Texas. The Corporation’s major business segments are the Commercial Bank, the Retail Bank and Wealth Management. For further discussion of each business segment, refer to Note 22. The Corporation and its banking subsidiaries are regulated at both the state and federal levels. The accounting and reporting policies of the Corporation conform to United States (U.S.) generally accepted accounting principles (GAAP). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from these estimates. Certain amounts in the financial statements for prior years have been reclassified to conform to the current financial statement presentation. The following summarizes the significant accounting policies of the Corporation applied in the preparation of the accompanying consolidated financial statements. Principles of Consolidation The consolidated financial statements include the accounts of the Corporation and the accounts of those subsidiaries that are majority owned and in which the Corporation has a controlling financial interest. The Corporation consolidates entities not determined to be variable interest entities (VIEs) when it holds a controlling financial interest and applies the cost or equity method when it holds less than a controlling financial interest. In consolidation, all significant intercompany accounts and transactions are eliminated. The results of operations of companies acquired are included from the date of acquisition. The Corporation holds investments in certain legal entities that are considered VIEs. In general, a VIE is an entity that either (1) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (2) has a group of equity owners that are unable to make significant decisions about its activities, or (3) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns generated by its operations. If any of these characteristics are present, the entity is subject to a variable interests consolidation model, and consolidation is based on variable interests, not on voting interests. Variable interests are defined as contractual ownership or other economic interests in an entity that change with fluctuations in the entity’s net asset value. The primary beneficiary, which is required to consolidate the VIE, is defined as the party that has both the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. The maximum potential exposure to losses relative to investments in VIEs is generally limited to the sum of the outstanding book basis and unfunded commitments for future investments. The Corporation evaluates its investments in VIEs, both at inception and when there is a change in circumstances that requires reconsideration, to determine if the Corporation is the primary beneficiary and consolidation is required. The Corporation accounts for unconsolidated VIEs using either the proportional, cost or equity method. These investments comprise investments in community development projects which generate tax credits to their investors and are included in accrued income and other assets on the Consolidated Balance Sheets. The proportional method is used for investments in affordable housing projects that qualify for the low-income housing tax credit (LIHTC). The equity method is used for other investments where the Corporation has the ability to exercise significant influence over the entity’s operation and financial policies. Other unconsolidated equity investments that do not meet the criteria to be accounted for under the equity method are accounted for under the cost method. Amortization and other write-downs of LIHTC investments are presented on a net basis as a component of the provision for income taxes, while income, amortization and write-downs from cost and equity method investments are recorded in other noninterest income on the Consolidated Statements of Income. Assets held in an agency or fiduciary capacity are not assets of the Corporation and are not included in the consolidated financial statements. See Note 9 for additional information about the Corporation’s involvement with VIEs. Fair Value Measurements The Corporation utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, the Corporation uses present value techniques and other valuation methods to estimate the fair values of its financial instruments. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used. Fair value is an estimate of the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (i.e., not a forced transaction, such as a liquidation or distressed sale) between market participants at the measurement date. Fair value is based on the assumptions market participants would use when pricing an asset or liability. Investment securities available-for-sale, derivatives, deferred compensation plans and equity securities with readily determinable fair values (primarily money market mutual funds) are recorded at fair value on a recurring basis. Additionally, from time to time, the Corporation may be required to record other assets and liabilities at fair value on a nonrecurring basis, such as impaired loans, other real estate (primarily foreclosed property), nonmarketable equity securities and certain other assets and liabilities. These nonrecurring fair value adjustments typically involve write-downs of individual assets or application of lower of cost or fair value accounting. Fair value measurements and disclosures guidance establishes a three-level fair value hierarchy based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. Fair value measurements are separately disclosed by level within the fair value hierarchy. For assets and liabilities recorded at fair value, it is the Corporation’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are less active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. The Corporation generally utilizes third-party pricing services to value Level 1 and Level 2 securities. Management reviews the methodologies and assumptions used by the third-party pricing services and evaluates the values provided, principally by comparison with other available market quotes for similar instruments and/or analysis based on internal models using available third-party market data. The Corporation may occasionally adjust certain values provided by the third-party pricing service when management believes, as the result of its review, that the adjusted price most appropriately reflects the fair value of the particular security. Fair value measurements for assets and liabilities where limited or no observable market data exists are based primarily upon estimates, often calculated based on the economic and competitive environment, the characteristics of the asset or liability and other factors. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. Additionally, there may be inherent weaknesses in any calculation technique so that changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values. Following are descriptions of the valuation methodologies and key inputs used to measure financial assets and liabilities recorded at fair value, as well as a description of the methods and significant assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a recurring basis. The descriptions include an indication of the level of the fair value hierarchy in which the assets or liabilities are classified. Cash and due from banks, federal funds sold and interest-bearing deposits with banks Due to their short-term nature, the carrying amount of these instruments approximates the estimated fair value. As such, the Corporation classifies the estimated fair value of these instruments as Level 1. Deferred compensation plan assets and liabilities as well as equity securities with a readily determinable fair value The Corporation holds a portfolio of securities that includes equity securities and assets held related to deferred compensation plans. Securities and associated deferred compensation plan liabilities are recorded at fair value on a recurring basis and included in other short-term investments and accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheets. Level 1 securities include assets related to deferred compensation plans, which are invested in mutual funds, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and other securities traded on an active exchange, such as the New York Stock Exchange. Level 2 securities include municipal bonds and mortgage-backed securities issued by U.S. government-sponsored entities and corporate debt securities. Deferred compensation plan liabilities represent the fair value of the obligation to the plan participant, which corresponds to the fair value of the invested assets. The methods used to value equity securities and deferred compensation plan assets are the same as the methods used to value investment securities, discussed below. Investment securities Investment securities available-for-sale are recorded at fair value on a recurring basis. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored entities, as well as corporate debt securities. The fair value of Level 2 securities is determined using quoted prices of securities with similar characteristics, or pricing models based on observable market data inputs, primarily interest rates, spreads and prepayment information. Securities classified as Level 3 represent securities in less liquid markets requiring significant management assumptions when determining fair value. Loans held-for-sale Loans held-for-sale, included in other short-term investments on the Consolidated Balance Sheets, are recorded at the lower of cost or fair value. Loans held-for-sale may be carried at fair value on a nonrecurring basis when fair value is less than cost. The fair value is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, the Corporation classifies both loans held-for-sale subjected to nonrecurring fair value adjustments and the estimated fair value of loans held-for sale as Level 2. Loans The Corporation does not record loans at fair value on a recurring basis. However, an individual allowance may be established for a loan that no longer shares risk characteristics with loan pools, typically collateral-dependent loans for which reserves are based on the fair value of the underlying collateral. Such loan values are reported as nonrecurring fair value measurements. Collateral values supporting individually evaluated loans are evaluated quarterly. When management determines that the fair value of the collateral requires additional adjustments, either as a result of non-current appraisal value or when there is no observable market price, the Corporation classifies the loan as Level 3. The Corporation discloses fair value estimates for loans. The estimated fair value is determined based on characteristics such as loan category, repricing features and remaining maturity, and includes prepayment and credit loss estimates. Fair values are estimated using a discounted cash flow model that employs discount rates reflecting current pricing for loans with similar maturity and risk characteristics, including credit characteristics, and the cost of equity for the portfolio at the balance sheet date. The rates take into account the expected yield curve, as well as an adjustment for prepayment risk, when applicable. The Corporation classifies the estimated fair value of loans held for investment as Level 3. Customers’ liability on acceptances outstanding and acceptances outstanding Customers' liability on acceptances outstanding is included in accrued income and other assets and acceptances outstanding are included in accrued expenses and other liabilities on the Consolidated Balance Sheets. Due to their short-term nature, the carrying amount of these instruments approximates the estimated fair value. As such, the Corporation classifies the estimated fair value of these instruments as Level 1. Derivative assets and derivative liabilities Derivative instruments held or issued for risk management or customer-initiated activities are traded in over-the-counter markets where quoted market prices are not readily available. Fair value for over-the-counter derivative instruments is measured on a recurring basis using internally developed models primarily based on market observable inputs, such as yield curves and option volatilities. The Corporation manages credit risk on its derivative positions based on whether the derivatives are settled through a clearinghouse or bilaterally with each counterparty. For derivative positions settled on a counterparty-by-counterparty basis, the Corporation calculates credit valuation adjustments, included in the fair value of these instruments, on the basis of its relationships at the counterparty portfolio or master netting agreement level. These credit valuation adjustments are determined by applying a credit spread for the counterparty or the Corporation, as appropriate, to the total expected exposure of the derivative after considering collateral and other master netting arrangements. These adjustments, which are considered Level 3 inputs, are based on estimates of current credit spreads to evaluate the likelihood of default. When credit valuation adjustments are significant to the overall fair value of a derivative, the Corporation classifies the over-the-counter derivative valuation in Level 3 of the fair value hierarchy; otherwise, over-the-counter derivative valuations are classified in Level 2. Nonmarketable equity securities The Corporation has a portfolio of indirect (through funds) private equity and venture capital investments, included in accrued income and other assets on the Consolidated Balance Sheets. The investments are accounted for either on the cost or equity method and are individually reviewed for impairment on a quarterly basis by comparing the carrying value to the estimated fair value. These investments may be carried at fair value on a nonrecurring basis when they are deemed to be impaired and written down to fair value. Where there is not a readily determinable fair value, the Corporation estimates fair value for indirect private equity and venture capital investments based on the net asset value, as reported by the fund. The Corporation also holds restricted equity investments, primarily Federal Reserve Bank (FRB) and Federal Home Loan Bank (FHLB) stock. Restricted equity securities are not readily marketable and are recorded at cost (par value) in accrued income and other assets on the Consolidated Balance Sheets and evaluated for impairment based on the ultimate recoverability of the par value. No significant observable market data for these instruments is available. The Corporation considers the profitability and asset quality of the issuer, dividend payment history and recent redemption experience and believes its investments in FRB and FHLB stock are ultimately recoverable at par. Therefore, the carrying amount for these restricted equity investments approximates fair value. The Corporation classifies the estimated fair value of such investments as Level 1. The Corporation’s investment in FHLB stock totaled $138 million and $7 million at December 31, 2022 and 2021, and its investment in FRB stock totaled $85 million at both December 31, 2022 and 2021. Other real estate Other real estate is included in accrued income and other assets on the Consolidated Balance Sheets and includes primarily foreclosed property. Foreclosed property is initially recorded at fair value, less costs to sell, at the date of legal title transfer to the Corporation, establishing a new cost basis. Subsequently, foreclosed property is carried at the lower of cost or fair value, less costs to sell. Other real estate may be carried at fair value on a nonrecurring basis when fair value is less than cost. Fair value is based upon independent market prices, appraised value or management's estimate of the value of the property. When management determines that the fair value of other real estate requires additional adjustments, either as a result of a non-current appraisal or when there is no observable market price, the Corporation classifies the other real estate as Level 3. Deposit liabilities The estimated fair value of checking, savings and certain money market deposit accounts is represented by the amounts payable on demand. The estimated fair value of term deposits is calculated by discounting the scheduled cash flows using the period-end rates offered on these instruments. As such, the Corporation classifies the estimated fair value of deposit liabilities as Level 2. Short-term borrowings The carrying amount of federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings approximates the estimated fair value. As such, the Corporation classifies the estimated fair value of short-term borrowings as Level 1. Medium- and long-term debt The estimated fair value of the Corporation's medium- and long-term debt is based on quoted market values when available. If quoted market values are not available, the estimated fair value is based on the market values of debt with similar characteristics. The Corporation classifies the estimated fair value of medium- and long-term debt as Level 2. Credit-related financial instruments Credit-related financial instruments include unused commitments to extend credit and letters of credit. These instruments generate ongoing fees which are recognized over the term of the commitment. The carrying value of the deferred fees, which approximates fair value of these instruments, is included in accrued expenses and other liabilities on the Consolidated Balance Sheets. The Corporation classifies the estimated fair value of credit-related financial instruments as Level 3. For further information about fair value measurements refer to Note 2. Other Short-Term Investments Other short-term investments include deferred compensation plan assets, certificates of deposits, equity securities with a readily determinable fair value and loans held-for-sale. Deferred compensation plan assets and equity securities are carried at fair value. Realized and unrealized gains or losses are included in other noninterest income on the Consolidated Statements of Income. Loans held-for-sale, typically residential mortgages originated with the intent to sell and occasionally including other loans transferred to held-for-sale, are carried at the lower of cost or fair value. Fair value is determined in the aggregate for each portfolio. Changes in fair value and gains or losses upon sale are included in other noninterest income on the Consolidated Statements of Income. Investment Securities Debt securities are classified as trading, available-for-sale (AFS) or held-to-maturity. Trading securities are recorded at fair value, with unrealized gains and losses included in noninterest income on the Consolidated Statements of Income. AFS securities are recorded at fair value, with unrealized gains and losses, net of income taxes, reported as a separate component of other comprehensive income (OCI). Securities for which management has the intent and ability to hold to maturity are classified as held-to-maturity and recorded at amortized cost. Interest income is recognized using the interest method. All of the Corporation's investment securities are classified as AFS at December 31, 2022 and 2021. An AFS security is impaired if its fair value is less than amortized cost. Credit-related impairment is recognized as an allowance to investment securities available-for-sale on the Consolidated Balance Sheets with a corresponding adjustment to provision for credit losses on the Consolidated Statements of Income. Non-credit-related impairment is recognized as a component of OCI. If the Corporation intends to sell an impaired AFS security or more likely than not will be required to sell that security before recovering its amortized cost basis, the entire impairment amount is recognized in earnings with corresponding adjustment to the security's amortized cost basis. For certain types of AFS securities, such as U.S. Treasuries and other securities with government guarantees, the Corporation generally expects zero credit losses. The zero-loss expectation applies to all the Corporation’s securities and no allowance for credit losses was recorded on its AFS securities portfolio at December 31, 2022. Gains or losses on the sale of securities are computed based on the adjusted cost of the specific security sold. For further information on investment securities, refer to Note 3. Loans Loans and leases originated and held for investment are recorded at the principal balance outstanding, net of unearned income, charge-offs and unamortized deferred fees and costs. Interest income is recognized on loans and leases using the interest method. The Corporation assesses all loan modifications to determine whether a restructuring constitutes a troubled debt restructuring (TDR). A restructuring is considered a TDR when a borrower is experiencing financial difficulty and the Corporation grants a concession to the borrower. TDRs on accrual status at the original contractual rate of interest are considered performing. Nonperforming TDRs include TDRs on nonaccrual status and loans which have been renegotiated to less than the original contractual rates (reduced-rate loans). Certain types of modifications related to COVID-19 that were granted during 2020 and 2021 were excluded from TDR accounting. See Note 1 in the 2021 10-K for additional information. Effective January 1, 2020, the Corporation adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," (ASU 2020-04). Typically, entities must evaluate whether a loan contract modification results in a modified loan or a new loan for accounting purposes. Topic 848 allows entities to bypass this evaluation for qualifying modifications related to reference rate reform. The Corporation will apply the relief provided by Topic 848 to qualifying contract modifications. The FASB included a sunset provision within Topic 848 of December 31, 2022, based on the United Kingdom’s Financial Conduct Authority (FCA) announcement that it would no longer need to persuade or compel banks to submit to LIBOR after December 31, 2021. In March 2021, the FCA extended the intended cessation date of most tenors of LIBOR in the United States to June 30, 2023. In response, the FASB issued ASU 2022-06 “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848,” (ASU 2022-06) in December 2022, which defers the expiration date of ASC Topic 848 to December 31, 2024. The Corporation adopted ASU 2022-06 immediately upon issuance. Loan Origination Fees and Costs Substantially all loan origination fees and costs are deferred and amortized to net interest income over the life of the related loan or over the commitment period as a yield adjustment. Net deferred income on originated loans, including unearned income and unamortized costs, fees, premiums and discounts, totaled $118 million and $102 million at December 31, 2022 and 2021, respectively. Loan fees on unused commitments and net origination fees related to loans sold are recognized in noninterest income. Allowance for Credit Losses The allowance for credit losses includes both the allowance for loan losses and the allowance for credit losses on lending-related commitments. The Corporation disaggregates the loan portfolio into segments for purposes of determining the allowance for credit losses. These segments are based on the level at which the Corporation develops, documents and applies a systematic methodology to determine the allowance for credit losses. The Corporation's portfolio segments are business loans and retail loans. Business loans include the commercial, real estate construction, commercial mortgage, lease financing and international loan portfolios. Retail loans consist of residential mortgage and consumer loans, including home equity loans. Current expected credit losses are estimated over the contractual life of the loan portfolio, considering all available relevant information, including historical and current conditions as well as reasonable and supportable forecasts of future events. Allowance for Loan Losses The allowance for loan losses is estimated on a quarterly basis and represents management’s estimates of current expected credit losses in the Corporation’s loan portfolio. Pools of loans with similar risk characteristics are collectively evaluated while loans that no longer share risk characteristics with loan pools are evaluated individually. Collective loss estimates are determined by applying loss factors, designed to estimate current expected credit losses, to amortized cost balances over the remaining contractual life of the collectively evaluated portfolio. Loans with similar risk characteristics are aggregated into homogeneous pools. Business loans are assigned to pools based primarily on business line and the Corporation’s internal risk rating system. For retail loans, pools are based on loan type, past due status and credit scores. Loss factors are based on estimated probability of default for each pool, set to a default horizon based on contractual life, and loss given default. Historical estimates are calibrated to economic forecasts over the reasonable and supportable forecast period based on the projected performance of specific economic variables that statistically correlate with each of the probability of default and loss given default pools. At least annually, management considers different models when estimating credit losses, selecting ones that most reasonably forecast credit losses in the relevant economic environment. The calculation of current expected credit losses is inherently subjective, as it requires management to exercise judgment in determining appropriate factors used to determine the allowance. Some of the most significant factors in the quantitative allowance estimate are assigning internal risk ratings to loans, selecting the economic forecasts used to calibrate the reserve factors and determining the reasonable and supportable forecast period. • Internal Risk Ratings : Loss factors are dependent on loan risk ratings for business loans. Risk ratings are assigned at origination, based on inherent credit risk, and updated based on new information that becomes available, periodic reviews of credit quality, a change in borrower performance or modifications to lending agreements. • Economic Forecasts: Management selects economic variables it believes to be most relevant based on the composition of the loan portfolio and customer base, including forecasted levels of employment, gross domestic product, corporate bond and treasury spreads, industrial production levels, consumer and commercial real estate price indices as well as housing statistics. Different economic forecast scenarios ranging from more benign to more severe are evaluated each reporting period to forecast losses over the contractual life of the loan portfolio. • Forecast Period : Economic forecasts are applied over the period management believes it can estimate reasonable and supportable forecasts. Forecast periods may be adjusted in response to changes in the economic environment. To estimate losses for contractual periods that extend beyond the forecast horizon, the Corporation reverts to an average historical loss experience. The Corporation typically forecasts economic variables over a two-year horizon, followed by an immediate reversion to an average historical loss experience that generally incorporates a full economic cycle. Management reviews this methodology on at least an annual basis. The allowance for loan losses also includes qualitative adjustments to bring the allowance to the level management believes is appropriate based on factors that have not otherwise been fully accounted for, including adjustments for foresight risk, input imprecision and model imprecision. Foresight risk reflects the inherent imprecision in forecasting economic variables, including determining the depth and duration of economic cycles and their impact to relevant economic variables. The Corporation may make qualitative adjustments based on its evaluation of different forecast scenarios and known recent events impacting relevant economic variables. Input imprecision factors address the risk that certain model inputs may not reflect all available information including (i) risk factors that have not been fully addressed in internal risk ratings, (ii) changes in lending policies and procedures, (iii) changes in the level and quality of experience held by lending management, (iv) imprecision in the risk rating system and (v) limitations in data available for certain loan portfolios. Model imprecision considers known model limitations and model updates not yet fully reflected in the quantitative estimate. The determination of the appropriate qualitative adjustment is based on management's analysis of current and expected economic conditions and their impact to the portfolio, as well as internal credit risk movements and a qualitative assessment of the lending environment, including underwriting standards. Management recognizes the sensitivity of various assumptions made in the quantitative modeling of expected losses and may adjust reserves depending upon the level of uncertainty that currently exists in one or more assumptions. Credit losses for loans that no longer share risk characteristics with the loan pools are estimated on an individual basis. Individual credit loss estimates are typically performed for nonaccrual loans and modified loans classified as TDRs and are based on one of several methods, including the estimated fair value of the underlying collateral, observable market value of similar debt or the present value of expected cash flows. The Corporation considers certain loans to b |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTSNote 1 contains information about the fair value hierarchy, descriptions of the valuation methodologies and key inputs used to measure financial assets and liabilities recorded at fair value, as well as a description of the methods and significant assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a recurring basis. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following tables present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2021. (in millions) Total Level 1 Level 2 Level 3 December 31, 2022 Deferred compensation plan assets $ 92 $ 92 $ — $ — Equity securities 44 44 — — Investment securities available-for-sale: U.S. Treasury securities 2,664 2,664 — — Residential mortgage-backed securities (a) 11,655 — 11,655 — Commercial mortgage-backed securities (a) 4,693 — 4,693 — Total investment securities available-for-sale 19,012 2,664 16,348 — Derivative assets: Interest rate contracts 206 — 206 — Energy contracts 1,020 — 1,020 — Foreign exchange contracts 53 — 53 — Total derivative assets 1,279 — 1,279 — Total assets at fair value $ 20,427 $ 2,800 $ 17,627 $ — Derivative liabilities: Interest rate contracts $ 644 $ — $ 644 $ — Energy contracts 1,006 — 1,006 — Foreign exchange contracts 45 — 45 — Other financial derivative 12 — — 12 Total derivative liabilities 1,707 — 1,695 12 Deferred compensation plan liabilities 92 92 — — Total liabilities at fair value $ 1,799 $ 92 $ 1,695 $ 12 December 31, 2021 Deferred compensation plan assets $ 113 $ 113 $ — $ — Equity securities 62 62 — — Investment securities available-for-sale: U.S. Treasury securities 2,993 2,993 — — Residential mortgage-backed securities (a) 13,288 — 13,288 — Commercial mortgage-backed securities (a) 705 — 705 — Total investment securities available-for-sale 16,986 2,993 13,993 — Derivative assets: Interest rate contracts 239 — 213 26 Energy contracts 670 — 670 — Foreign exchange contracts 19 — 19 — Total derivative assets 928 — 902 26 Total assets at fair value $ 18,089 $ 3,168 $ 14,895 $ 26 Derivative liabilities: Interest rate contracts $ 69 $ — $ 69 $ — Energy contracts 662 — 662 — Foreign exchange contracts 16 — 16 — Other financial derivative 13 — — 13 Total derivative liabilities 760 — 747 13 Deferred compensation plan liabilities 113 113 — — Total liabilities at fair value $ 873 $ 113 $ 747 $ 13 (a) Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. There were no transfers of assets or liabilities recorded at fair value on a recurring basis into or out of Level 3 fair value measurements during the years ended December 31, 2022 and 2021. The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2022 and 2021. Net Realized/Unrealized Gains (Losses) (Pretax) Recorded in Earnings (a) Balance at Beginning of Period Settlements Balance at End of Period (in millions) Realized Unrealized Year Ended December 31, 2022 Derivative assets: Interest rate contracts $ 26 $ — $ — $ (26) $ — Derivative liabilities: Other financial derivative (13) — 1 — (12) Year Ended December 31, 2021 Derivative assets: Interest rate contracts $ 39 — $ (13) — $ 26 Derivative liabilities: Other financial derivative (11) — (2) — (13) (a) Realized and unrealized gains and losses due to changes in fair value recorded in other noninterest income on the Consolidated Statements of Income. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The Corporation may be required to record certain assets and liabilities at fair value on a nonrecurring basis. These include assets that are recorded at the lower of cost or fair value, and were recognized at fair value since it was less than cost at the end of the period. The following table presents assets recorded at fair value on a nonrecurring basis at December 31, 2022 and 2021. No liabilities were recorded at fair value on a nonrecurring basis at December 31, 2022 and 2021. (in millions) Level 3 December 31, 2022 Loans: Commercial $ 53 Real estate construction 2 Commercial mortgage 11 Total loans $ 66 Other real estate 9 Total assets at fair value $ 75 December 31, 2021 Loans: Commercial $ 125 Real estate construction 4 Commercial mortgage 17 International 4 Total assets at fair value $ 150 Level 3 assets recorded at fair value on a nonrecurring basis at December 31, 2022 and 2021 included both nonaccrual loans and TDRs for which a specific allowance was established based on the fair value of collateral as well as bank property held for sale. The unobservable inputs were the additional adjustments applied by management to the appraised values to reflect such factors as non-current appraisals and revisions to estimated time to sell. These adjustments are determined based on qualitative judgments made by management on a case-by-case basis and are not observable inputs, although they are used in the determination of fair value. Estimated Fair Values of Financial Instruments Not Recorded at Fair Value on a Recurring Basis The Corporation typically holds the majority of its financial instruments until maturity and thus does not expect to realize many of the estimated fair value amounts disclosed. The disclosures also do not include estimated fair value amounts for items that are not defined as financial instruments, but which have significant value. These include such items as the future earnings potential of significant customer relationships and the value of trust operations and other fee generating businesses. The Corporation believes the imprecision of an estimate could be significant. The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis on the Corporation’s Consolidated Balance Sheets are as follows: Carrying Estimated Fair Value (in millions) Total Level 1 Level 2 Level 3 December 31, 2022 Assets Cash and due from banks $ 1,758 $ 1,758 $ 1,758 $ — $ — Interest-bearing deposits with banks 4,524 4,524 4,524 — — Other short-term investments 19 19 19 — — Loans held-for-sale 2 2 — 2 — Total loans, net of allowance for loan losses (a) 52,792 50,964 — — 50,964 Customers’ liability on acceptances outstanding 3 3 3 — — Restricted equity investments 223 223 223 — — Nonmarketable equity securities (b) 5 12 Liabilities Demand deposits (noninterest-bearing) 39,945 39,945 — 39,945 — Interest-bearing deposits 29,566 29,566 — 29,566 — Customer certificates of deposit 1,762 1,719 — 1,719 — Other time deposits 124 124 — 124 — Total deposits 71,397 71,354 — 71,354 — Short-term borrowings 3,211 3,211 3,211 — — Acceptances outstanding 3 3 3 — — Medium- and long-term debt 3,024 3,071 — 3,071 — Credit-related financial instruments (79) (79) — — (79) December 31, 2021 Assets Cash and due from banks $ 1,236 $ 1,236 $ 1,236 $ — $ — Interest-bearing deposits with banks 21,443 21,443 21,443 — — Other short-term investments 16 16 16 — — Loans held-for-sale 6 6 — 6 — Total loans, net of allowance for loan losses (a) 48,697 49,127 — — 49,127 Customers’ liability on acceptances outstanding 5 5 5 — — Restricted equity investments 92 92 92 — — Nonmarketable equity securities (b) 5 10 Liabilities Demand deposits (noninterest-bearing) 45,800 45,800 — 45,800 — Interest-bearing deposits 34,566 34,566 — 34,566 — Customer certificates of deposit 1,973 1,968 — 1,968 — Total deposits 82,339 82,334 — 82,334 — Acceptances outstanding 5 5 5 — — Medium- and long-term debt 2,796 2,854 — 2,854 — Credit-related financial instruments (59) (59) — — (59) (a) Included $66 million and $150 million of loans recorded at fair value on a nonrecurring basis at December 31, 2022 and 2021, respectively. (b) Certain investments that are measured at fair value using the net asset value have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES A summary of the Corporation’s investment securities follows: (in millions) Amortized Gross Gross Fair Value December 31, 2022 Investment securities available-for-sale: U.S. Treasury securities $ 2,810 $ — $ 146 $ 2,664 Residential mortgage-backed securities (a) 13,983 — 2,328 11,655 Commercial mortgage-backed securities (a) 5,252 — 559 4,693 Total investment securities available-for-sale $ 22,045 $ — $ 3,033 $ 19,012 December 31, 2021 Investment securities available-for-sale: U.S. Treasury securities $ 3,010 $ 22 $ 39 $ 2,993 Residential mortgage-backed securities (a) 13,397 67 176 13,288 Commercial mortgage-backed securities (a) 709 2 6 705 Total investment securities available-for-sale $ 17,116 $ 91 $ 221 $ 16,986 (a) Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. A summary of the Corporation’s investment securities in an unrealized loss position as of December 31, 2022 and 2021 follows: Less than 12 Months 12 Months or more Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2022 U.S. Treasury securities $ 996 $ 5 $ 1,668 $ 141 $ 2,664 $ 146 Residential mortgage-backed securities (a) 3,500 361 8,153 1,967 11,653 2,328 Commercial mortgage-backed securities (a) 4,008 405 685 154 4,693 559 Total temporarily impaired securities $ 8,504 $ 771 $ 10,506 $ 2,262 $ 19,010 $ 3,033 December 31, 2021 U.S. Treasury securities $ 465 $ 6 $ 1,334 $ 33 $ 1,799 $ 39 Residential mortgage-backed securities (a) 7,197 128 1,128 48 8,325 176 Commercial mortgage-backed securities (a) 346 6 — — 346 6 Total temporarily impaired securities $ 8,008 $ 140 $ 2,462 $ 81 $ 10,470 $ 221 (a) Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. Unrealized losses on investment securities resulted from changes in market interest rates. The Corporation’s portfolio is comprised of securities issued or guaranteed by the U.S. government or government-sponsored enterprises. As such, it is expected that the securities would not be settled at a price less than the amortized cost of the investments. Further, the Corporation does not intend to sell the investments, and it is not more-likely-than-not that it will be required to sell the the investments before recovery of amortized costs. At December 31, 2022, the Corporation had 1,289 securities in an unrealized loss position with no allowance for credit losses, comprised of 27 U.S. Treasury securities, 1,008 residential mortgage-backed securities and 254 commercial mortgage-backed securities. Interest receivable on investment securities totaled $49 million and $36 million at December 31, 2022 and 2021 and was included in accrued income and other assets on the Consolidated Balance Sheets. Sales, calls and write-downs of investment securities available-for-sale, computed based on the adjusted cost of the specific security, resulted in no gains or losses during the years ended December 31, 2022 and 2021. During the year ended December 31, 2020, a $1 million gain was offset by a $1 million loss, recorded in noninterest income. The following table summarizes the amortized cost and fair values of investment securities by contractual maturity. Securities with multiple maturity dates are classified in the period of final maturity. The actual cash flows of mortgage-backed securities may differ as borrowers of the underlying loans may exercise prepayment options. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (in millions) December 31, 2022 Amortized Cost Fair Value Contractual maturity Within one year $ 1,103 $ 1,093 After one year through five years 1,943 1,797 After five years through ten years 5,518 4,946 After ten years 13,481 11,176 Total investment securities $ 22,045 $ 19,012 At December 31, 2022, investment securities with a carrying value of $3.2 billion were pledged where permitted or required by law, including $1.0 billion pledged to the Federal Home Loan Bank (FHLB) as collateral for potential future borrowings and $2.2 billion to secure $1.0 billion of liabilities, primarily public and other deposits of state and local government agencies as well as derivative instruments. For information on FHLB borrowings, refer to Note 12. |
Credit Quality And Allowance Fo
Credit Quality And Allowance For Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Credit Quality And Allowance For Credit Losses [Abstract] | |
Credit Quality And Allowance For Credit Losses | CREDIT QUALITY AND ALLOWANCE FOR CREDIT LOSSES The following table presents an aging analysis of the amortized cost basis of loans. Loans Past Due and Still Accruing (in millions) 30-59 60-89 90 Days Total Nonaccrual Current Total December 31, 2022 Business loans: Commercial $ 238 $ 13 $ 20 $ 271 $ 142 $ 30,496 $ 30,909 Real estate construction: Commercial Real Estate business line (b) — — — — — 2,505 2,505 Other business lines (c) 2 — — 2 3 595 600 Total real estate construction 2 — — 2 3 3,100 3,105 Commercial mortgage: Commercial Real Estate business line (b) — 6 — 6 1 4,674 4,681 Other business lines (c) 64 5 3 72 22 8,531 8,625 Total commercial mortgage 64 11 3 78 23 13,205 13,306 Lease financing 6 — — 6 — 754 760 International — 9 — 9 3 1,185 1,197 Total business loans 310 33 23 366 171 48,740 49,277 Retail loans: Residential mortgage 22 — — 22 53 1,739 1,814 Consumer: Home equity 4 3 — 7 15 1,754 1,776 Other consumer 5 1 — 6 1 528 535 Total consumer 9 4 — 13 16 2,282 2,311 Total retail loans 31 4 — 35 69 4,021 4,125 Total loans $ 341 $ 37 $ 23 $ 401 $ 240 $ 52,761 $ 53,402 December 31, 2021 Business loans: Commercial $ 35 $ 18 $ 6 $ 59 $ 173 $ 29,134 $ 29,366 Real estate construction: Commercial Real Estate business line (b) — — — — — 2,391 2,391 Other business lines (c) 15 1 — 16 6 535 557 Total real estate construction 15 1 — 16 6 2,926 2,948 Commercial mortgage: Commercial Real Estate business line (b) — — — — 1 3,337 3,338 Other business lines (c) 18 4 16 38 31 7,848 7,917 Total commercial mortgage 18 4 16 38 32 11,185 11,255 Lease financing 5 — — 5 — 635 640 International 5 8 1 14 5 1,189 1,208 Total business loans 78 31 23 132 216 45,069 45,417 Retail loans: Residential mortgage 4 — — 4 36 1,731 1,771 Consumer: Home equity 4 3 — 7 12 1,514 1,533 Other consumer 32 1 4 37 — 527 564 Total consumer 36 4 4 44 12 2,041 2,097 Total retail loans 40 4 4 48 48 3,772 3,868 Total loans $ 118 $ 35 $ 27 $ 180 $ 264 $ 48,841 $ 49,285 (a) Includes $22 million of loans with deferred payments not considered past due in accordance with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) at December 31, 2021. (b) Primarily loans to real estate developers. (c) Primarily loans secured by owner-occupied real estate. The following table presents loans by credit quality indicator (CQI) and vintage year. CQI is based on internal risk ratings assigned to each business loan at the time of approval and subjected to subsequent reviews, generally at least annually, and to pools of retail loans with similar risk characteristics. Vintage year is the year of origination or major modification. December 31, 2022 Vintage Year (in millions) 2022 2021 2020 2019 2018 Prior Revolvers Revolvers Converted to Term Total Business loans: Commercial: Pass (a) $ 3,946 (b) $ 3,509 (b) $ 917 (b) $ 1,041 $ 598 $ 1,030 $ 18,604 $ 9 $ 29,654 Criticized (c) 75 274 81 69 45 78 632 1 1,255 Total commercial 4,021 3,783 998 1,110 643 1,108 19,236 10 30,909 Real estate construction Pass (a) 836 1,134 633 162 102 28 207 — 3,102 Criticized (c) — — 3 — — — — — 3 Total real estate construction 836 1,134 636 162 102 28 207 — 3,105 Commercial mortgage Pass (a) 3,349 2,501 1,825 1,394 1,050 2,182 838 — 13,139 Criticized (c) 7 5 7 32 31 75 10 — 167 Total commercial mortgage 3,356 2,506 1,832 1,426 1,081 2,257 848 — 13,306 Lease financing Pass (a) 316 140 64 47 37 130 — — 734 Criticized (c) 10 — 2 8 5 1 — — 26 Total lease financing 326 140 66 55 42 131 — — 760 International Pass (a) 317 161 55 88 19 14 498 — 1,152 Criticized (c) 12 — 3 — 3 10 17 — 45 Total international 329 161 58 88 22 24 515 — 1,197 Total business loans 8,868 7,724 3,590 2,841 1,890 3,548 20,806 10 49,277 Retail loans: Residential mortgage Pass (a) 327 398 480 133 68 355 — — 1,761 Criticized (c) 4 — — 9 1 39 — — 53 Total residential mortgage 331 398 480 142 69 394 — — 1,814 Consumer: Home equity Pass (a) — — — — — 9 1,708 40 1,757 Criticized (c) — — — — — — 17 2 19 Total home equity — — — — — 9 1,725 42 1,776 Other consumer Pass (a) 69 38 50 8 1 10 355 — 531 Criticized (c) — — — 1 — — 3 — 4 Total other consumer 69 38 50 9 1 10 358 — 535 Total consumer 69 38 50 9 1 19 2,083 42 2,311 Total retail loans 400 436 530 151 70 413 2,083 42 4,125 Total loans $ 9,268 $ 8,160 $ 4,120 $ 2,992 $ 1,960 $ 3,961 $ 22,889 $ 52 $ 53,402 Table continues on the following page. December 31, 2021 Vintage Year 2021 2020 2019 2018 2017 Prior Revolvers Revolvers Converted to Term Total Business loans: Commercial: Pass (a) $ 5,270 (b) $ 1,740 (b) $ 1,528 $ 947 $ 713 $ 763 $ 17,241 $ 10 $ 28,212 Criticized (c) 101 120 105 86 26 94 620 2 1,154 Total commercial 5,371 1,860 1,633 1,033 739 857 17,861 12 29,366 Real estate construction: Pass (a) 458 858 849 424 158 34 132 — 2,913 Criticized (c) — 3 — 13 8 8 3 — 35 Total real estate construction 458 861 849 437 166 42 135 — 2,948 Commercial mortgage: Pass (a) 2,491 1,932 1,444 1,343 1,018 2,298 481 — 11,007 Criticized (c) 17 44 50 22 23 87 5 — 248 Total commercial mortgage 2,508 1,976 1,494 1,365 1,041 2,385 486 — 11,255 Lease financing Pass (a) 166 88 97 50 38 179 — — 618 Criticized (c) — 2 10 8 1 1 — — 22 Total lease financing 166 90 107 58 39 180 — — 640 International Pass (a) 381 141 103 29 1 16 480 — 1,151 Criticized (c) 20 10 3 5 4 8 7 — 57 Total international 401 151 106 34 5 24 487 — 1,208 Total business loans 8,904 4,938 4,189 2,927 1,990 3,488 18,969 12 45,417 Retail loans: Residential mortgage Pass (a) 443 527 164 83 111 407 — — 1,735 Criticized (c) 5 — 1 2 7 21 — — 36 Total residential mortgage 448 527 165 85 118 428 — — 1,771 Consumer: Home equity Pass (a) — — — — — 11 1,460 45 1,516 Criticized (c) — — — — — 1 12 4 17 Total home equity — — — — — 12 1,472 49 1,533 Other consumer Pass (a) 101 68 13 9 1 31 337 — 560 Criticized (c) — — — — — — 4 — 4 Total other consumer 101 68 13 9 1 31 341 — 564 Total consumer 101 68 13 9 1 43 1,813 49 2,097 Total retail loans 549 595 178 94 119 471 1,813 49 3,868 Total loans $ 9,453 $ 5,533 $ 4,367 $ 3,021 $ 2,109 $ 3,959 $ 20,782 $ 61 $ 49,285 (a) Includes all loans not included in the categories of special mention, substandard or nonaccrual. (b) Includes Small Business Administration Paycheck Protection Program (PPP) loans of $35 million and $459 million at December 31, 2022 and 2021, respectively. (c) Includes loans with an internal rating of special mention, substandard loans for which the accrual of interest has not been discontinued and nonaccrual loans. Special mention loans have potential credit weaknesses that deserve management’s close attention, such as loans to borrowers who may be experiencing financial difficulties that may result in deterioration of repayment prospects from the borrower at some future date. Accruing substandard loans have a well-defined weakness, or weaknesses, such as loans to borrowers who may be experiencing losses from operations or inadequate liquidity of a degree and duration that jeopardizes the orderly repayment of the loan. Substandard loans are also distinguished by the distinct possibility of loss in the future if these weaknesses are not corrected. Nonaccrual loans are loans for which the accrual of interest has been discontinued. For further information regarding nonaccrual loans, refer to the Nonperforming Assets subheading in Note 1 - Basis of Presentation and Accounting Policies. These categories are generally consistent with the "special mention" and "substandard" categories as defined by regulatory authorities. A minority of nonaccrual loans are consistent with the "doubtful" category. Loan interest receivable totaled $261 million and $120 million at December 31, 2022 and 2021, respectively, and was included in accrued income and other assets on the Consolidated Balance Sheets. Allowance for Credit Losses The following table details the changes in the allowance for credit losses. 2022 2021 2020 (in millions) Business Loans Retail Loans Total Business Loans Retail Loans Total Business Loans Retail Loans Total Years Ended December 31, Balance at beginning of period: Allowance for loan losses $ 531 $ 57 $ 588 $ 895 $ 53 $ 948 $ 601 $ 36 $ 637 Allowance for credit losses on lending-related commitments 24 6 30 35 9 44 28 3 31 Allowance for credit losses 555 63 618 930 62 992 629 39 668 Cumulative effect of change in accounting principle — — — — — — (42) 25 (17) Loan charge-offs (65) (3) (68) (67) (3) (70) (233) (5) (238) Recoveries on loans previously charged-off 47 4 51 76 4 80 38 4 42 Net loan (charge-offs) recoveries (18) 1 (17) 9 1 10 (195) (1) (196) Provision for credit losses: Provision for loan losses 28 11 39 (373) 3 (370) 531 (7) 524 Provision for credit losses on lending-related commitments 16 5 21 (11) (3) (14) 7 6 13 Provision for credit losses 44 16 60 (384) — (384) 538 (1) 537 Balance at end of period: Allowance for loan losses 541 69 610 531 57 588 895 53 948 Allowance for credit losses on lending-related commitments 40 11 51 24 6 30 35 9 44 Allowance for credit losses $ 581 $ 80 $ 661 $ 555 $ 63 $ 618 $ 930 $ 62 $ 992 Allowance for loan losses as a percentage of total loans 1.10 % 1.67 % 1.14 % 1.17 % 1.47 % 1.19 % 1.85 % 1.32 % 1.81 % Allowance for credit losses as a percentage of total loans 1.18 1.96 1.24 1.22 1.63 1.26 1.93 1.55 1.90 Nonaccrual Loans The following table presents additional information regarding nonaccrual loans. Interest income of $12 million, $11 million and $7 million was recognized on nonaccrual loans for the years ended December 31, 2022, 2021 and 2020, respectively. (in millions) Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total December 31, 2022 Business loans: Commercial $ 64 $ 78 $ 142 Real estate construction: Other business lines (a) — 3 3 Commercial mortgage: Commercial Real Estate business line (b) — 1 1 Other business lines (a) 4 18 22 Total commercial mortgage 4 19 23 International 3 — 3 Total business loans 71 100 171 Retail loans: Residential mortgage 53 — 53 Consumer: Home equity 15 — 15 Other consumer 1 — 1 Total consumer 16 — 16 Total retail loans 69 — 69 Total nonaccrual loans $ 140 $ 100 $ 240 December 31, 2021 Business loans: Commercial $ 8 $ 165 $ 173 Real estate construction: Other business lines (a) — 6 6 Commercial mortgage: Commercial Real Estate business line (b) — 1 1 Other business lines (a) 4 27 31 Total commercial mortgage 4 28 32 International — 5 5 Total business loans 12 204 216 Retail loans: Residential mortgage 36 — 36 Consumer: Home equity 12 — 12 Total retail loans 48 — 48 Total nonaccrual loans $ 60 $ 204 $ 264 (a) Primarily loans secured by owner-occupied real estate. (b) Primarily loans to real estate developers. Foreclosed Properties Foreclosed properties were insignificant at December 31, 2022, compared to $1 million at December 31, 2021. Retail loans secured by residential real estate properties in process of foreclosure included in nonaccrual loans were insignificant at December 31, 2022 compared to none at December 31, 2021. Troubled Debt Restructurings The following table details the amortized cost basis at December 31, 2022 and 2021 of loans considered to be TDRs that were restructured during the years ended December 31, 2022 and 2021, by type of modification. In cases of loans with more than one type of modification, the loans were categorized based on the most significant modification. 2022 2021 (a) Type of Modification Type of Modification (in millions) Principal Deferrals (b) Interest Rate Reductions Total Modifications Principal Deferrals (b) Interest Rate Reductions Total Modifications Years Ended December 31, Business loans: Commercial $ 26 $ — $ 26 $ 8 $ — $ 8 Real estate construction: Other business lines (c) 3 — 3 — — — Commercial mortgage: Other business lines (c) 14 — 14 — — — Total business loans 43 — 43 8 — 8 Retail loans: Residential mortgage — 27 27 — — — Consumer: Home equity (d) 1 1 2 — 2 2 Other consumer — 1 1 — — — Total consumer 1 2 3 — 2 2 Total retail loans 1 29 30 — 2 2 Total loans $ 44 $ 29 $ 73 $ 8 $ 2 $ 10 (a) Under the provisions of the CARES Act, qualifying COVID-19-related modifications, primarily principal deferrals, were not considered TDRs during the year ended December 31, 2021. (b) Primarily represents loan balances where terms were extended by more than an insignificant time period, typically more than 180 days, at or above contractual interest rates. Also includes commercial loans restructured in bankruptcy. (c) Primarily loans secured by owner-occupied real estate. (d) Includes bankruptcy loans for which the court has discharged the borrower's obligation and the borrower has not reaffirmed the debt. The Corporation charges interest on principal balances outstanding during deferral periods. Additionally, none of the modifications involved forgiveness of principal. There were no significant commitments to lend additional funds to borrowers whose terms have been modified in TDRs at December 31, 2022 and 2021. On an ongoing basis, the Corporation monitors the performance of modified loans to their restructured terms. The allowance for loan losses continues to be reassessed on the basis of an individual evaluation of the loan. For principal deferrals, incremental deterioration in the credit quality of the loan, represented by a downgrade in the risk rating of the loan, for example, due to missed interest payments or a reduction of collateral value, is considered a subsequent default. For interest rate reductions, a subsequent payment default is defined in terms of delinquency, when a principal or interest payment is 90 days past due. Of the TDRs modified during the years ended December 31, 2022 and 2021, there were $6 million of subsequent defaults of principal deferrals and no interest rate reductions for the year ended December 31, 2022, compared to no principal deferrals or interest rate reductions for the comparable period in 2021. |
Significant Group Concentration
Significant Group Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2022 | |
Significant Group Concentrations of Credit Risk [Abstract] | |
Significant Group Concentrations of Credit Risk | SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK Concentrations of credit risk may exist when a number of borrowers are engaged in similar activities, or activities in the same geographic region, and have similar economic characteristics that would cause them to be similarly impacted by changes in economic or other conditions. Concentrations of both on-balance sheet and off-balance sheet credit risk are controlled and monitored as part of credit policies. The Corporation is a regional financial services holding company with a geographic concentration of its on-balance-sheet and off-balance-sheet activities in Michigan, California and Texas. At December 31, 2022, the Corporation's concentration of credit risk with the commercial real estate industry, which includes a portfolio of real estate construction and commercial mortgage loans, represented 31 percent of total loans. The following table summarizes the Corporation's commercial real estate loan portfolio by loan category. (in millions) December 31 2022 2021 Real estate construction loans: Commercial Real Estate business line (a) $ 2,505 $ 2,391 Other business lines (b) 600 557 Total real estate construction loans 3,105 2,948 Commercial mortgage loans: Commercial Real Estate business line (a) 4,681 3,338 Other business lines (b) 8,625 7,917 Total commercial mortgage loans 13,306 11,255 Total commercial real estate loans $ 16,411 $ 14,203 Total unused commitments on commercial real estate loans $ 6,602 $ 4,030 (a) Primarily loans to real estate developers. (b) Primarily loans secured by owner-occupied real estate. The Corporation also has a concentration of credit risk with the automotive industry, which represented 12 percent of total loans at December 31, 2022. Outstanding loans, included in commercial loans on the Consolidated Balance Sheets, and total exposure (outstanding loans, unused commitments and standby letters of credit) to companies related to the automotive industry were as follows: (in millions) December 31 2022 2021 Automotive loans: Production $ 1,068 $ 1,112 (a) Dealer 5,367 4,162 Total automotive loans $ 6,435 $ 5,274 Total automotive exposure: Production $ 2,028 $ 2,041 (a) Dealer 10,910 10,665 Total automotive exposure $ 12,938 $ 12,706 (a) Excludes PPP loans. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Premises and Equipments [Abstract] | |
Premises and Equipment | PREMISES AND EQUIPMENT A summary of premises and equipment by major category follows: (in millions) December 31 2022 2021 Land $ 81 $ 85 Buildings and improvements 737 852 Furniture and equipment 518 516 Total cost 1,336 1,453 Less: Accumulated depreciation and amortization (936) (999) Net book value $ 400 $ 454 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Core Deposit Intangibles | GOODWILL AND CORE DEPOSIT INTANGIBLES The following table summarizes the carrying value of goodwill by reporting unit for the years ended December 31, 2022 and 2021. (in millions) December 31 2022 2021 Commercial Bank $ 473 $ 473 Retail Bank 101 101 Wealth Management 61 61 Total $ 635 $ 635 The Corporation performs its annual evaluation of goodwill impairment in the third quarter of each year and may elect to perform a quantitative impairment analysis or first conduct a qualitative analysis to determine if a quantitative analysis is necessary. In addition, the Corporation evaluates goodwill impairment on an interim basis if events or changes in circumstances between annual tests indicate additional testing may be warranted to determine if goodwill might be impaired. In 2022 and 2021, the annual test of goodwill impairment was performed as of the beginning of the third quarter, and in both periods, a qualitative assessment resulted in the Corporation determining goodwill was not impaired, as it was more likely than not that the fair value of each reporting unit exceeded its carrying value. The Corporation recorded amortization expense related to the core deposit intangible of $1 million for both the years ended December 31, 2021 and 2020. The core deposit intangible was fully amortized at December 31, 2021. |
Derivative And Credit-Related F
Derivative And Credit-Related Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | DERIVATIVE AND CREDIT-RELATED FINANCIAL INSTRUMENTS In the normal course of business, the Corporation enters into various transactions involving derivative and credit-related financial instruments to manage exposure to fluctuations in interest rate, foreign currency and other market risks and to meet the financing needs of customers (customer-initiated derivatives). These financial instruments involve, to varying degrees, elements of market and credit risk. Market and credit risk are included in the determination of fair value. Market risk is the potential loss that may result from movements in interest rates, foreign currency exchange rates or energy commodity prices that cause an unfavorable change in the value of a financial instrument. The Corporation manages this risk by establishing monetary exposure limits and monitoring compliance with those limits. Market risk inherent in interest rate and energy contracts entered into on behalf of customers is mitigated by taking offsetting positions, except in those circumstances when the amount, tenor and/or contract rate level results in negligible economic risk, whereby the cost of purchasing an offsetting contract is not economically justifiable. The Corporation mitigates most of the inherent market risk in foreign exchange contracts entered into on behalf of customers by taking offsetting positions and manages the remainder through individual foreign currency position limits and aggregate value-at-risk limits. These limits are established annually and positions are monitored quarterly. Market risk inherent in derivative instruments held or issued for risk management purposes is typically offset by changes in the fair value of the assets or liabilities being hedged. Credit risk is the possible loss that may occur in the event of nonperformance by the counterparty to a financial instrument. The Corporation attempts to minimize credit risk arising from customer-initiated derivatives by evaluating the creditworthiness of each customer, adhering to the same credit approval process used for traditional lending activities and obtaining collateral as deemed necessary. Derivatives with dealer counterparties are either cleared through a clearinghouse or settled directly with a single counterparty. For derivatives settled directly with dealer counterparties, the Corporation utilizes counterparty risk limits and monitoring procedures as well as master netting arrangements and bilateral collateral agreements to facilitate the management of credit risk. Included in the fair value of derivative instruments are credit valuation adjustments reflecting counterparty credit risk. These adjustments are determined by applying a credit spread for the counterparty or the Corporation, as appropriate, to the total expected exposure of the derivative. Master netting arrangements effectively reduce credit valuation adjustments by permitting settlement of positive and negative positions and offset cash collateral held with the same counterparty on a net basis. Bilateral collateral agreements require daily exchange of cash or highly rated securities issued by the U.S. Treasury or other U.S. government entities to collateralize amounts due to either party. At December 31, 2022, counterparties with bilateral collateral agreements deposited $185 million of cash with the Corporation to secure the fair value of contracts in an unrealized gain position, and the Corporation had pledged $202 million of marketable investment securities and posted $4 million of cash as collateral for contracts in an unrealized loss position. For those counterparties not covered under bilateral collateral agreements, collateral is obtained, if deemed necessary, based on the results of management’s credit evaluation of the counterparty. Collateral varies, but may include cash, investment securities, accounts receivable, equipment or real estate. Derivative Instruments Derivative instruments utilized by the Corporation are negotiated over-the-counter and primarily include swaps, caps and floors, forward contracts and options, each of which may relate to interest rates, energy commodity prices or foreign currency exchange rates. Swaps are agreements in which two parties periodically exchange cash payments based on specified indices applied to a specified notional amount until a stated maturity. Caps and floors are agreements which entitle the buyer to receive cash payments based on the difference between a specified reference rate or price and an agreed strike rate or price, applied to a specified notional amount until a stated maturity. Forward contracts are over-the-counter agreements to buy or sell an asset at a specified future date and price. Options are similar to forward contracts except the purchaser has the right, but not the obligation, to buy or sell the asset during a specified period or at a specified future date. Over-the-counter contracts are tailored to meet the needs of the counterparties involved and, therefore, contain a greater degree of credit risk and liquidity risk than exchange-traded contracts, which have standardized terms and readily available price information. The Corporation reduces exposure to market and liquidity risks from over-the-counter derivative instruments entered into for risk management purposes, and transactions entered into to mitigate the market risk associated with customer-initiated transactions, by taking offsetting positions with investment grade domestic and foreign financial institutions and subjecting counterparties to credit approvals, limits and collateral monitoring procedures similar to those used in making other extensions of credit. In addition, certain derivative contracts executed bilaterally with a dealer counterparty in the over-the-counter market are cleared through a clearinghouse, whereby the clearinghouse becomes the counterparty to the transaction. The following table presents the composition of the Corporation’s derivative instruments held or issued for risk management purposes or in connection with customer-initiated and other activities at December 31, 2022 and 2021. The table excludes a derivative related to the Corporation's 2008 sale of its remaining ownership of Visa shares and includes accrued interest receivable and payable. December 31, 2022 December 31, 2021 Fair Value Fair Value (in millions) Notional/ Gross Derivative Assets Gross Derivative Liabilities Notional/ Gross Derivative Assets Gross Derivative Liabilities Risk management purposes Derivatives designated as hedging instruments Interest rate contracts: Fair value swaps - receive fixed/pay floating $ 3,150 $ — $ — $ 2,650 $ — $ — Cash flow swaps - receive fixed/ pay floating (b) 26,600 — 50 8,050 — — Derivatives used as economic hedges Foreign exchange contracts: Spot, forwards and swaps 392 1 3 452 — 2 Total risk management purposes 30,142 1 53 11,152 — 2 Customer-initiated and other activities Interest rate contracts: Caps and floors written 924 — 25 809 — 3 Caps and floors purchased 924 25 — 809 3 — Swaps 18,450 181 569 19,382 236 66 Total interest rate contracts 20,298 206 594 21,000 239 69 Energy contracts: Caps and floors written 4,051 — 430 1,779 — 203 Caps and floors purchased 4,051 431 — 1,779 204 — Swaps 6,419 589 576 4,212 466 459 Total energy contracts 14,521 1,020 1,006 7,770 670 662 Foreign exchange contracts: Spot, forwards, options and swaps 2,704 52 42 1,716 19 14 Total customer-initiated and other activities 37,523 1,278 1,642 30,486 928 745 Total gross derivatives $ 67,665 1,279 1,695 $ 41,638 928 747 Amounts offset in the Consolidated Balance Sheets: Netting adjustment - Offsetting derivative assets/liabilities (644) (644) (187) (187) Netting adjustment - Cash collateral received/posted (180) (4) (15) (452) Net derivatives included in the Consolidated Balance Sheets (c) 455 1,047 726 108 Amounts not offset in the Consolidated Balance Sheets: Marketable securities pledged under bilateral collateral agreements (70) (202) — (52) Net derivatives after deducting amounts not offset in the Consolidated Balance Sheets $ 385 $ 845 $ 726 $ 56 (a) Notional or contractual amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected on the Consolidated Balance Sheets. (b) December 31, 2022 included $4.6 billion of forward starting swaps that will become effective on their contractual start dates in 2023 and 2024. (c) Net derivative assets are included in accrued income and other assets and net derivative liabilities are included in accrued expenses and other liabilities on the Consolidated Balance Sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and credit risk of the Corporation. The fair value of net derivative assets included credit valuation adjustments for counterparty credit risk of $2 million and $9 million at December 31, 2022 and 2021, respectively. Risk Management The Corporation's derivative instruments used for managing interest rate risk include cash flow hedging strategies that convert variable-rate loans to fixed rates and fair value hedging strategies that convert fixed-rate medium-and long-term debt to variable rates. Interest and fees on loans included $(25) million, $95 million and $70 million of cash flow hedge (loss) income for the years ended December 31, 2022, 2021 and 2020, respectively. The following table details the effects of fair value hedging on the Consolidated Statements of Comprehensive Income. (in millions) Interest on Medium- and Long-Term Debt Years Ended December 31 2022 2021 2020 Total interest on medium-and long-term debt (a) $ 87 $ 35 $ 80 Fair value hedging relationships: Interest rate contracts: Hedged items 112 102 109 Derivatives designated as hedging instruments (25) (68) (51) (a) Includes the effects of hedging. Centrally-cleared derivative positions are settled daily based on derivative fair values and the party receiving net settlement amounts pays price alignment, based on an earning rate, to the party making settlement payments. Accordingly, the Corporation may recognize risk management hedging income consisting of price alignment income or expense depending on the fair value of its positions. Price alignment income was reported in other noninterest income on the Consolidated Statements of Income and totaled $8 million for the year ending December 31, 2022 and was insignificant for the years ending December 31, 2021 and 2020. For information on accumulated net (losses) gains on cash flow hedges, refer to Note 14. The following tables summarize the expected weighted average remaining maturity of the notional amount of risk management interest rate swaps, the weighted average interest rates associated with amounts expected to be received or paid on interest rate swap agreements, and for fair value swaps, the carrying amount of the related hedged items, as of December 31, 2022 and 2021. Cash flow swaps - receive fixed/pay floating rate on variable-rate loans (dollar amounts in millions) December 31, 2022 December 31, 2021 Weighted average: Time to maturity (in years) 4.6 2.4 Receive rate (a) 2.35 % 1.84 % Pay rate (a), (b) 4.07 0.10 (a) Excludes forward starting swaps not effective as of the period shown. December 31, 2022 excluded $4.6 billion of forward starting swaps. December 31, 2021 excluded $3.0 billion of forward starting swaps. (b) Variable rates paid on receive fixed swaps designated as cash flow hedges are based on one-month LIBOR, BSBY or Secured Overnight Financing Rate (SOFR) rates in effect at December 31, 2022 and 2021. Derivative contracts with maturity dates beyond the LIBOR cessation date will fall back to the daily SOFR with a spread adjustment. Fair value swaps - receive fixed/pay floating rate on medium- and long-term debt (dollar amounts in millions) December 31, 2022 December 31, 2021 Carrying value of hedged items (a) 3,024 2,796 Weighted average: Time to maturity (in years) 3.9 3.6 Receive rate 3.52 % 3.68 % Pay rate (b) 4.90 1.08 (a) Included $(124) million and $145 million of cumulative hedging adjustments at December 31, 2022 and 2021, respectively, which included $4 million and $5 million, respectively, of hedging adjustment on a discontinued hedging relationship. (b) Floating rates paid on receive fixed swaps designated as fair value hedges are based on one-month LIBOR rates in effect at December 31, 2022 and 2021. Derivative contracts with maturity dates beyond the LIBOR cessation date will fall back to the daily SOFR with a spread adjustment. Customer-Initiated and Other The Corporation enters into derivative transactions at the request of customers and generally takes offsetting positions with dealer counterparties to mitigate the inherent market risk. Income primarily results from the spread between the customer derivative and the offsetting dealer position. For customer-initiated foreign exchange contracts where offsetting positions have not been taken, the Corporation manages the remaining inherent market risk through individual foreign currency position limits and aggregate value-at-risk limits. These limits are established annually and reviewed quarterly. For those customer-initiated derivative contracts which were not offset or where the Corporation holds a position within the limits described above, the Corporation recognized no net gains and losses in other noninterest income on the Consolidated Statements of Income for the years ending December 31, 2022, 2021 and 2020, respectively. Fair values of customer-initiated and other derivative instruments represent the net unrealized gains or losses on such contracts and are recorded on the Consolidated Balance Sheets. Changes in fair value are recognized on the Consolidated Statements of Income. The net gains recognized in income on customer-initiated derivative instruments, net of the impact of offsetting positions included in derivative income, were as follows: Years Ended December 31, (in millions) 2022 2021 2020 Interest rate contracts $ 34 $ 36 $ 26 Energy contracts 28 18 1 Foreign exchange contracts 47 45 40 Total $ 109 $ 99 $ 67 Credit-Related Financial Instruments The Corporation issues off-balance sheet financial instruments in connection with commercial and consumer lending activities. The Corporation’s credit risk associated with these instruments is represented by the contractual amounts indicated in the following table. (in millions) December 31 2022 2021 Unused commitments to extend credit: Commercial and other $ 30,800 $ 25,910 Bankcard, revolving credit and home equity loan commitments 4,017 3,554 Total unused commitments to extend credit $ 34,817 $ 29,464 Standby letters of credit $ 3,712 $ 3,378 Commercial letters of credit 39 44 The Corporation maintains an allowance to cover current expected credit losses inherent in lending-related commitments, including unused commitments to extend credit, letters of credit and financial guarantees. The allowance for credit losses on lending-related commitments, included in accrued expenses and other liabilities on the Consolidated Balance Sheets, was $51 million and $30 million at December 31, 2022 and 2021, respectively. Unused Commitments to Extend Credit Commitments to extend credit are legally binding agreements to lend to a customer, provided there is no violation of any condition established in the contract. These commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many commitments expire without being drawn upon, the total contractual amount of commitments does not necessarily represent future cash requirements of the Corporation. Commercial and other unused commitments are primarily variable rate commitments. The allowance for credit losses on lending-related commitments included $44 million and $27 million at December 31, 2022 and 2021, respectively, for expected credit losses inherent in the Corporation’s unused commitments to extend credit. Standby and Commercial Letters of Credit Standby letters of credit represent conditional obligations of the Corporation which guarantee the performance of a customer to a third party. Standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Commercial letters of credit are issued to finance foreign or domestic trade transactions. These contracts expire in decreasing amounts through the year 2029. The Corporation may enter into participation arrangements with third parties that effectively reduce the maximum amount of future payments which may be required under standby and commercial letters of credit. These risk participations covered $107 million and $98 million at December 31, 2022 and 2021, respectively, of the $3.8 billion and $3.4 billion of standby and commercial letters of credit outstanding at December 31, 2022 and 2021, respectively. The carrying value of the Corporation’s standby and commercial letters of credit, included in accrued expenses and other liabilities on the Consolidated Balance Sheets, totaled $35 million at December 31, 2022, including $28 million in deferred fees and $7 million in the allowance for credit losses on lending-related commitments. At December 31, 2021, the comparable amounts were $32 million, $29 million and $3 million, respectively. The following table presents a summary of criticized standby and commercial letters of credit at December 31, 2022 and 2021. The Corporation's criticized list is consistent with the Special Mention, Substandard and Doubtful categories defined by regulatory authorities. The Corporation manages credit risk through underwriting, periodically reviewing and approving its credit exposures using Board committee approved credit policies and guidelines. (dollar amounts in millions) December 31, 2022 December 31, 2021 Total criticized standby and commercial letters of credit $ 37 $ 37 As a percentage of total outstanding standby and commercial letters of credit 1.0 % 1.1 % Other Credit-Related Financial Instruments The Corporation enters into credit risk participation agreements, under which the Corporation assumes credit exposure associated with a borrower’s performance related to certain interest rate derivative contracts. The Corporation is not a party to the interest rate derivative contracts and only enters into these credit risk participation agreements in instances in which the Corporation is also a party to the related loan participation agreement for such borrowers. The Corporation manages its credit risk on the credit risk participation agreements by monitoring the creditworthiness of the borrowers, which is based on the normal credit review process as if the Corporation had entered into the derivative instruments directly with the borrower. The notional amount of such credit risk participation agreements reflects the pro-rata share of the derivative instrument, consistent with its share of the related participated loan. The total notional amount of the credit risk participation agreements was approximately $951 million and $1.1 billion at December 31, 2022 and 2021, respectively, and the fair value was insignificant at December 31, 2022 and $1 million at December 31, 2021. The maximum estimated exposure to these agreements, as measured by projecting a maximum value of the guaranteed derivative instruments, assuming 100 percent default by all obligors on the maximum values, was insignificant at December 31, 2022 and $30 million at December 31, 2021. In the event of default, the lead bank has the ability to liquidate the assets of the borrower, in which case the lead bank would be required to return a percentage of the recouped assets to the participating banks. As of December 31, 2022, the weighted average remaining maturity of outstanding credit risk participation agreements was 3.8 years. In 2008, the Corporation sold its remaining ownership of Visa Class B shares and entered into a derivative contract. Under the terms of the derivative contract, the Corporation will compensate the counterparty primarily for dilutive adjustments made to the conversion factor of the Visa Class B shares to Class A shares based on the ultimate outcome of litigation involving Visa. Conversely, the Corporation will be compensated by the counterparty for any increase in the conversion factor from anti- dilutive adjustments. The notional amount of the derivative contract was equivalent to approximately 780,000 Visa Class B Shares. The fair value of the derivative liability, included in accrued expenses and other liabilities on the Consolidated Balance Sheets, was $12 million and $13 million at December 31, 2022 and December 31, 2021, respectively. |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) | 12 Months Ended |
Dec. 31, 2022 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Variable Interest Entities (VIEs) | VARIABLE INTEREST ENTITIES (VIEs) The Corporation evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Corporation is the primary beneficiary and should consolidate the entity based on the variable interests it held both at inception and when there is a change in circumstances that requires a reconsideration. The Corporation holds ownership interests in funds in the form of limited partnerships or limited liability companies (LLCs) investing in affordable housing projects that qualify for the low-income housing tax credit (LIHTC). The Corporation also directly invests in limited partnerships and LLCs which invest in community development projects, which generate similar tax credits to investors (other tax credit entities). As an investor, the Corporation obtains income tax credits and deductions from the operating losses of these tax credit entities. These tax credit entities meet the definition of a VIE; however, the Corporation is not the primary beneficiary of the entities, as the general partner or the managing member has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. The Corporation accounts for its interests in LIHTC entities using the proportional amortization method. Ownership interests in other tax credit entities are accounted for under either the cost or equity method. Exposure to loss as a result of the Corporation’s involvement in LIHTC entities and other tax credit entities at December 31, 2022 was limited to $475 million and $31 million, respectively. Investment balances, including all legally binding commitments to fund future investments, are included in accrued income and other assets on the Consolidated Balance Sheets. A liability is recognized in accrued expenses and other liabilities on the Consolidated Balance Sheets for all legally binding unfunded commitments to fund tax credit entities ($208 million at December 31, 2022). Amortization and other write-downs of LIHTC investments are presented on a net basis as a component of the provision for income taxes on the Consolidated Statements of Income, while amortization and write-downs of other tax credit investments are recorded in other noninterest income. The income tax credits and deductions are recorded as a reduction of income tax expense and a reduction of federal income taxes payable. The Corporation provided no financial or other support that was not contractually required to any of the above VIEs during the years ended December 31, 2022, 2021 and 2020. The following table summarizes the impact of these tax credit entities on the Corporation’s Consolidated Statements of Income. (in millions) Years Ended December 31 2022 2021 2020 Other noninterest income: Amortization of other tax credit investments $ — $ 1 $ 1 Provision for income taxes: Amortization of LIHTC Investments 72 $ 71 67 Low income housing tax credits (68) (68) (63) Other tax benefits related to tax credit entities (18) (17) (16) Total provision for income taxes $ (14) $ (14) $ (12) For further information on the Corporation’s consolidation policy, see Note 1. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposits | DEPOSITS At December 31, 2022, the scheduled maturities of certificates of deposit and other deposits with a stated maturity were as follows: (in millions) Years Ending December 31 2023 $ 1,789 2024 88 2025 24 2026 18 2027 13 Thereafter 5 Total $ 1,937 A maturity distribution of domestic certificates of deposit of $100,000 and over follows: (in millions) December 31 2022 2021 Three months or less $ 220 $ 436 Over three months to six months 136 314 Over six months to twelve months 590 319 Over twelve months 49 74 Total $ 995 $ 1,143 |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Short-Term Debt [Abstract] | |
Short-term Borrowings | SHORT-TERM BORROWINGS Federal funds purchased and securities sold under agreements to repurchase generally mature within one to four days from the transaction date. Other short-term borrowings, which may consist of borrowed securities and short-term notes, generally mature within one to 120 days from the transaction date. At December 31, 2022, other short-term borrowings consisted of advances from the Federal Home Loan Bank (FHLB) of Dallas, Texas, which provides short- and long-term funding to its members through advances collateralized by real estate-related loans, certain government agency-backed securities and other eligible assets. Actual borrowing capacity is contingent on the amount of collateral pledged to the FHLB. At December 31, 2022, $9.5 billion of real estate-related loans and $1.0 billion of investment securities were pledged to the FHLB as collateral for the short-term advances and provided an additional $7.2 billion for potential future borrowings. At December 31, 2022, Comerica Bank (the Bank), a wholly-owned subsidiary of the Corporation, had pledged loans totaling $24.5 billion, which provided for up to $19.6 billion of available collateralized borrowing with the FRB. The following table provides a summary of short-term borrowings. (dollar amounts in millions) Federal Funds Purchased Other December 31, 2022 Amount outstanding at year-end $ 11 $ 3,200 Weighted average interest rate at year-end 4.32 % 4.54 % Maximum month-end balance during the year $ 1,106 $ 3,200 Average balance outstanding during the year 82 354 Weighted average interest rate during the year 3.28 % 4.08 % December 31, 2021 Amount outstanding at year-end $ — $ — Weighted average interest rate at year-end — % — % Maximum month-end balance during the year $ 2 $ — Average balance outstanding during the year 2 — Weighted average interest rate during the year 0.06 % — % December 31, 2020 Amount outstanding at year-end $ — $ — Weighted average interest rate at year-end — % — % Maximum month-end balance during the year $ 1,513 $ 1,250 Average balance outstanding during the year 30 284 Weighted average interest rate during the year 0.97 % 0.25 % |
Medium- And Long-Term Debt
Medium- And Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Medium- And Long-Term Debt | MEDIUM- AND LONG-TERM DEBT Medium- and long-term debt is summarized as follows: (in millions) December 31 2022 2021 Parent company Subordinated notes: 3.80% subordinated notes due 2026 (a) $ 237 $ 265 Medium- and long-term notes: 3.70% notes due 2023 (a) 841 877 4.00% notes due 2029 (a) 515 594 Total medium- and long-term notes 1,356 1,471 Total parent company 1,593 1,736 Subsidiaries Subordinated notes: 4.00% subordinated notes due 2025 (a) 331 363 7.875% subordinated notes due 2026 (a) 165 190 5.332% subordinated notes due 2033 (a) 459 — Total subordinated notes 955 553 Medium- and long-term notes: 2.50% notes due 2024 (a) 476 507 Total subsidiaries 1,431 1,060 Total medium- and long-term debt $ 3,024 $ 2,796 (a) The fixed interest rates on these notes have been swapped to a variable rate and designated in a hedging relationship. Accordingly, carrying value has been adjusted to reflect the change in the fair value of the debt as a result of changes in the benchmark rate. Subordinated notes with remaining maturities greater than one year qualify as Tier 2 capital. Comerica Bank (the Bank), a wholly-owned subsidiary of the Corporation, is a member of the FHLB, which provides short- and long-term funding to its members through advances collateralized by real estate-related assets. The Bank held no outstanding long-term advances at both December 31, 2022 and 2021. In third quarter 2022, the Bank issued $500 million of fixed-to-floating rate subordinated notes due in 2033, with a rate of 5.332% for the first ten years. The rate on the subordinated notes will reset on August 25, 2032 to Secured Overnight Financing Rate (SOFR) plus 261 basis points until called or matured. Additionally, the Bank entered into a fair value fixed-to-floating rate swap in which the Bank received a fixed rate of 2.67% and will pay a floating rate based on the SOFR for the first 10 years. Unamortized debt issuance costs deducted from the carrying amount of medium- and long-term debt totaled $9 million and $7 million at December 31, 2022 and 2021, respectively. At December 31, 2022, the principal maturities of medium- and long-term debt were as follows: (in millions) Years Ending December 31 2023 $ 850 2024 500 2025 350 2026 400 2027 — Thereafter 1,050 Total $ 3,150 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | SHAREHOLDERS’ EQUITYIn March 2020, as the economic climate grew increasingly uncertain, the Corporation temporarily suspended its share repurchase program, initially authorized in 2010 by the Board of Directors of the Corporation, with a focus on deploying capital to meet customers' growing financial requirements. In the second quarter 2021, share repurchases were resumed under the share repurchase program, including an Accelerated Share Repurchase transaction (ASR). On April 27, 2021, the Corporation's Board of Directors approved the authorization to repurchase up to an additional 10 million shares of its outstanding common stock, including the ASR. Repurchases of common stock under the share repurchase program totaled 377 thousand shares at an average price paid of $92.61 in 2022, 9.5 million shares at an average price paid of $75.82 per share in 2021 and 3.2 million shares at an average price paid of $58.55 per share in 2020. There is no expiration date for the share repurchase program. During the year ended December 31, 2022, the Corporation repurchased $35 million under the share repurchase program. At December 31, 2022, the Corporation had 4.2 million shares of common stock reserved for stock option exercises and restricted stock unit vesting. In May 2020, the Corporation issued and sold 400,000 depositary shares, each representing a 1/100th ownership interest in a share of 5.625% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, without par value, with a liquidation preference of $100,000 per share (equivalent of 1,000 per depositary share). Holders of the depositary shares will be entitled to all proportional rights and preferences of the Series A preferred stock (including dividend, voting, redemption and liquidation rights). The $400 million issuance yielded $394 million in proceeds net of underwriting discounts and offering expenses. Dividends on the Series A preferred stock accrue on a non-cumulative basis and are payable in arrears when, as and if authorized by the Corporation’s Board of Directors or a duly authorized committee of the Board and declared by the Corporation, on the first day of January, April, July and October of each year, and commenced on October 1, 2020. Under the terms of the Series A preferred stock, the ability of the Corporation to pay dividends on, make distributions with respect to, or to repurchase, redeem or acquire its common stock or any other stock ranking on parity with or junior to the Series A preferred stock, is subject to restrictions in the event that the Corporation does not declare and either pay or set aside a sum sufficient for payment of dividends on the Series A preferred stock for the immediately preceding dividend period. The Series A preferred stock is perpetual and has no maturity date, but is redeemable by the Corporation at specified times subject to regulatory considerations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The following table presents a reconciliation of the changes in the components of accumulated other comprehensive (loss) income and details the components of other comprehensive (loss) income for the years ended December 31, 2022, 2021 and 2020, including the amount of income tax (benefit) expense allocated to each component of other comprehensive (loss) income. (in millions) Years Ended December 31 2022 2021 2020 Accumulated net unrealized losses on investment securities: Balance at beginning of period, net of tax $ (99) $ 211 $ 65 Net unrealized (losses) gains arising during the period (2,903) (406) 191 Less: (Benefit) provision for income taxes (683) (96) 45 Change in net unrealized (losses) gains on investment securities, net of tax (2,220) (310) 146 Balance at end of period, net of tax $ (2,319) $ (99) $ 211 Accumulated net (losses) gains on cash flow hedges: Balance at beginning of period, net of tax $ 55 $ 155 $ 34 Net cash flow hedge (losses) gains arising during the period (1,329) (35) 229 Less: (Benefit) provision for income taxes (313) (8) 56 Change in net cash flow hedge (losses) gains arising during the period, net of tax (1,016) (27) 173 Less: Net cash flow (losses) gains included in interest and fees on loans (25) 95 70 Less: (Benefit) provision for income taxes (6) 22 18 Reclassification adjustment for net cash flow hedge (losses) gains included in net income, net of tax (19) 73 52 Change in net cash flow hedge (losses) gains, net of tax (997) (100) 121 Balance at end of period, net of tax (a) $ (942) $ 55 $ 155 Accumulated defined benefit pension and other postretirement plans adjustment: Balance at beginning of period, net of tax $ (168) $ (302) $ (415) Actuarial (loss) gain arising during the period (415) 159 128 Prior service credit arising during the period — 1 — Net defined benefit pension and other postretirement plans adjustment arising during the period (415) 160 128 Less: (Benefit) provision for income taxes (98) 38 31 Net defined benefit pension and other postretirement plans adjustment arising during the period, net of tax (317) 122 97 Amounts recognized in other noninterest expenses: Amortization of actuarial net loss 28 40 47 Amortization of prior service credit (23) (25) (27) Total amounts recognized in other noninterest expenses 5 15 20 Less: Provision for income taxes 1 3 4 Adjustment for amounts recognized as components of net periodic benefit credit during the period, net of tax 4 12 16 Change in defined benefit pension and other postretirement plans adjustment, net of tax (313) 134 113 Balance at end of period, net of tax $ (481) $ (168) $ (302) Total accumulated other comprehensive (loss) income at end of period, net of tax $ (3,742) $ (212) $ 64 (a) The Corporation expects to reclassify $428 million of losses, net of tax, from accumulated other comprehensive loss to earnings over the next twelve months if interest yield curves and notional amounts remain at December 31, 2022 levels. |
Net Income Per Common Share
Net Income Per Common Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | NET INCOME PER COMMON SHARE Basic and diluted net income per common share are presented in the following table. (in millions, except per share data) Years Ended December 31 2022 2021 2020 Basic and diluted Net income $ 1,151 $ 1,168 $ 497 Less: Income allocated to participating securities 6 5 2 Preferred stock dividends 23 23 13 Net income attributable to common shares $ 1,122 $ 1,140 $ 482 Basic average common shares 131 135 139 Basic net income per common share $ 8.56 $ 8.45 $ 3.45 Basic average common shares 131 135 139 Dilutive common stock equivalents: Net effect of the assumed exercise of stock awards 2 2 1 Diluted average common shares 133 137 140 Diluted net income per common share $ 8.47 $ 8.35 $ 3.43 Declared dividends on preferred stock are excluded from net income attributable to common shares. Refer to Note 13 for further information on preferred stock. The following average shares related to outstanding options to purchase shares of common stock were not included in the computation of diluted net income per common share because the options were anti-dilutive for the period. (average outstanding options in thousands) Years Ended December 31 2022 2021 2020 Average outstanding options 543 438 1,498 Range of exercise prices $70.18 - $95.25 $79.01 - $95.25 $49.20 - $95.25 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Compensation | SHARE-BASED COMPENSATION Share-based compensation expense is charged to salaries and benefits expense on the Consolidated Statements of Income. The components of share-based compensation expense for all share-based compensation plans and related tax benefits are as follows: (in millions) Years Ended December 31 2022 2021 2020 Total share-based compensation expense $ 60 $ 41 $ 24 Related tax benefits recognized in net income $ 14 $ 10 $ 6 The following table summarizes unrecognized compensation expense for all share-based plans. (dollar amounts in millions) December 31, 2022 Total unrecognized share-based compensation expense $ 38 Weighted-average expected recognition period (in years) 2.1 The Corporation has share-based compensation plans under which it awards shares of restricted stock units to executive officers, directors and key personnel and stock options to executive officers and key personnel of the Corporation and its subsidiaries. Restricted stock units fully vest after a period ranging from three years to five years, and stock options fully vest after four years. A majority of share-based compensation awards include a retirement eligibility clause where qualified employees are exempt from the service requirements of the award. This generally results in the recognition of compensation expense at the grant date for retirement eligible employees. The maturity of each option is determined at the date of grant; however, no options may be exercised later than ten years from the date of grant. The options may have restrictions regarding exercisability. The plans provide for a grant of up to 7.7 million common shares, plus shares under certain plans that are forfeited, expire or are canceled, which become available for re-grant. At December 31, 2022, over 4.5 million shares were available for grant. The Corporation used a binomial model to value stock options granted in the periods presented. Option valuation models require several inputs, including the expected stock price volatility, and changes in input assumptions can materially affect the fair value estimates. The model used may not necessarily provide a reliable single measure of the fair value of stock options. The risk-free interest rate assumption used in the binomial option-pricing model as outlined in the table below was based on the federal ten-year treasury interest rate. The expected dividend yield was based on the historical and projected long-term dividend yield patterns of the Corporation’s common shares. Expected volatility assumptions considered both the historical volatility of the Corporation’s common stock over a ten-year period and implied volatility based on actively traded options on the Corporation’s common stock with pricing terms and trade dates similar to the stock options granted. Expected option life was based on historical exercise activity over the contractual term of the option grant (ten years), excluding certain forced transactions. The estimated weighted-average grant-date fair value per option and the underlying binomial option-pricing model assumptions are summarized in the following table: Years Ended December 31 2022 2021 2020 Weighted-average grant-date fair value per option $ 25.31 $ 18.36 $ 13.03 Weighted-average assumptions: Risk-free interest rates 1.78 % 1.05 % 1.65 % Expected dividend yield 4.00 4.00 4.14 Volatility 34 39 27 Expected option life (in years) 8.0 7.8 8.4 A summary of the Corporation’s stock option activity and related information for the year ended December 31, 2022 follows: Weighted-Average Number of Exercise Price Remaining Aggregate Outstanding-January 1, 2022 2,244 $ 57.50 Granted 183 92.58 Forfeited or expired (32) 76.55 Exercised (387) 50.64 Outstanding-December 31, 2022 2,008 61.71 5.1 $ 22 Exercisable-December 31, 2022 1,379 $ 57.20 3.9 $ 20 The aggregate intrinsic value of outstanding options shown in the table above represents the total pretax intrinsic value at December 31, 2022, based on the Corporation’s closing stock price of $66.85 at December 31, 2022. The total intrinsic value of stock options exercised was $17 million, $29 million and $6 million for the years ended December 31, 2022, 2021 and 2020, respectively. A summary of the Corporation’s restricted stock activity and related information for the year ended December 31, 2022 follows: Number of Weighted-Average Outstanding-January 1, 2022 41 61.64 Forfeited — — Vested (41) 67.69 Outstanding-December 31, 2022 — $ — The total fair value of restricted stock awards that fully vested was $4 million, $8 million and $17 million for the years ended December 31, 2022, 2021 and 2020, respectively. A summary of the Corporation's restricted stock unit activity and related information for the year ended December 31, 2022 follows: Service-Based Units Performance-Based Units Number of Weighted-Average Number of Weighted-Average Outstanding-January 1, 2022 1,346 $ 59.18 816 $ 63.12 Granted 361 84.14 182 87.45 Forfeited (70) 65.24 (34) 70.40 Vested (a) (232) 65.36 (220) 79.13 Outstanding-December 31, 2022 1,405 64.27 744 64.01 (a) Includes performance-based units valued at zero, as they did not meet the minimum performance threshold. The total fair value of restricted stock units that fully vested was $19 million, $21 million and $12 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Corporation expects to satisfy the exercise of stock options, the vesting of restricted stock units and future grants of restricted stock by issuing shares of common stock out of treasury. At December 31, 2022, the Corporation held 97 million shares in treasury. For further information on the Corporation’s share-based compensation plans, refer to Note 1. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Defined Benefit Pension and Postretirement Benefit Plans The Corporation has a qualified and non-qualified defined benefit pension plan. In October 2016, the Corporation modified its defined benefit pension plans to freeze final average pay benefits as of December 31, 2016, other than for participants who were age 60 or older as of December 31, 2016, and added a cash balance plan provision effective January 1, 2017. Active pension plan participants 60 years or older as of December 31, 2016 receive the greater of the final average pay formula or the frozen final average pay benefit as of December 31, 2016 plus the cash balance benefit earned after January 1, 2017. Employees participating in the retirement account plan as of December 31, 2016 were eligible to participate in the cash balance pension plan effective January 1, 2017. Benefits earned under the cash balance pension formula, in the form of an account balance, include contribution credits based on eligible pay earned each month, age and years of service and monthly interest credits based on the 30-year Treasury rate. The Corporation’s postretirement benefit plan provides postretirement health care and life insurance benefits for retirees as of December 31, 1992. The plan also provides certain postretirement health care and life insurance benefits for a limited number of retirees who retired prior to January 1, 2000. For all other employees hired prior to January 1, 2000, a nominal benefit is provided. Employees hired on or after January 1, 2000 and prior to January 1, 2007 are eligible to participate in the plan on a full contributory basis until Medicare-eligible based on age and service. Employees hired on or after January 1, 2007 are not eligible to participate in the plan. The Corporation funds the pre-1992 retiree plan benefits with bank-owned life insurance. Effective January 1, 2022, the plan moved from a self-insured plan to the Medicare and pre-65 individual marketplace with a funded Health Reimbursement Arrangement account for those with subsidized coverage. This change did not have a material impact on the Corporation's consolidated financial condition, results of operations or cash flow. The following table sets forth reconciliations of plan assets and the projected benefit obligation, the weighted-average assumptions used to determine year-end benefit obligations, and the amounts recognized in accumulated other comprehensive (loss) income for the Corporation’s defined benefit pension plans and postretirement benefit plan at December 31, 2022 and 2021. The Corporation used a measurement date of December 31, 2022 for these plans. Defined Benefit Pension Plans Qualified Non-Qualified Postretirement Benefit Plan (dollar amounts in millions) 2022 2021 2022 2021 2022 2021 Change in fair value of plan assets: Fair value of plan assets at January 1 $ 3,462 $ 3,350 $ — $ — $ 53 $ 57 Actual return on plan assets (777) 291 — — (4) (1) Plan participants' contributions — — — — — 1 Benefits paid (177) (179) — — (3) (4) Fair value of plan assets at December 31 $ 2,508 $ 3,462 $ — $ — $ 46 $ 53 Change in projected benefit obligation: Projected benefit obligation at January 1 $ 2,214 $ 2,327 $ 207 $ 252 $ 31 $ 35 Service cost 37 38 2 2 — — Interest cost 62 61 6 7 1 1 Actuarial gain (525) (69) (37) (3) (8) (1) Plan participants' contributions — — — — — 1 Benefits paid (177) (179) (15) (15) (3) (4) Plan amendments (a) — 36 — (36) — (1) Projected benefit obligation at December 31 $ 1,611 $ 2,214 $ 163 $ 207 $ 21 $ 31 Accumulated benefit obligation $ 1,598 $ 2,199 $ 161 $ 204 $ 21 $ 31 Funded status at December 31 (b) (c) $ 897 $ 1,248 $ (163) $ (207) $ 25 $ 22 Weighted-average assumptions used: Discount rate 5.60 % 2.96 % 5.60 % 2.96 % 5.71 % 2.79 % Rate of compensation increase 4.25 4.00 4.25 4.00 n/a n/a Interest crediting rate 3.99 - 5.25 3.79 - 5.00 3.99 - 5.25 3.79 - 5.00 n/a n/a Amounts recognized in accumulated other comprehensive (loss) income before income taxes: Net actuarial loss $ (638) $ (205) $ (46) $ (92) $ (10) $ (11) Prior service credit 33 48 38 47 2 2 Balance at December 31 $ (605) $ (157) $ (8) $ (45) $ (8) $ (9) (a) The qualified defined benefit pension plan was amended in 2021 to include a flat dollar benefit for specified participants that would otherwise have been payable from the non-qualified defined benefit pension plan, resulting in a shift in projected benefit obligation from the non-qualified plan to the qualified plan. (b) Based on projected benefit obligation for defined benefit pension plans and accumulated benefit obligation for postretirement benefit plan. (c) The Corporation recognizes the overfunded and underfunded status of the plans in accrued income and other assets and accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheets. n/a - not applicable Because the non-qualified defined benefit pension plan has no assets, the accumulated benefit obligation exceeded the fair value of plan assets at December 31, 2022 and December 31, 2021. The following table details the changes in plan assets and benefit obligations recognized in other comprehensive loss for the year ended December 31, 2022. Defined Benefit Pension Plans (in millions) Qualified Non-Qualified Postretirement Benefit Plan Total Actuarial gain (loss) arising during the period $ (453) $ 37 $ 1 $ (415) Amortization of net actuarial loss 19 9 — 28 Amortization of prior service credit (14) (9) — (23) Total recognized in other comprehensive loss $ (448) $ 37 $ 1 $ (410) Components of net periodic defined benefit (credit) cost and postretirement benefit credit, the actual return on plan assets and the weighted-average assumptions used were as follows: Defined Benefit Pension Plans (dollar amounts in millions) Qualified Non-Qualified Years Ended December 31 2022 2021 2020 2022 2021 2020 Service cost (a) $ 37 $ 38 $ 32 $ 2 $ 2 $ 1 Other components of net benefit (credit) cost: Interest cost 62 61 70 6 7 8 Expected return on plan assets (201) (202) (185) — — — Amortization of prior service credit (14) (19) (19) (9) (6) (8) Amortization of actuarial net loss 19 29 38 9 11 9 Total other components of net benefit (credit) cost (b) (134) (131) (96) 6 12 9 Net periodic defined benefit (credit) cost $ (97) $ (93) $ (64) $ 8 $ 14 $ 10 Actual return on plan assets $ (777) $ 291 $ 537 n/a n/a n/a Actual rate of return on plan assets (23.02) % 8.92 % 18.72 % n/a n/a n/a Weighted-average assumptions used: Discount rate 2.96 % 2.71 % 3.43 % 2.96 % 2.71 % 3.43 % Expected long-term return on plan assets 6.50 6.50 6.50 n/a n/a n/a Rate of compensation increase 4.00 4.00 4.00 4.00 4.00 4.00 (a) Included in salaries and benefits expense on the Consolidated Statements of Income. (b) Included in other noninterest expenses on the Consolidated Statements of Income. n/a - not applicable (dollar amounts in millions) Postretirement Benefit Plan Years Ended December 31 2022 2021 2020 Other components of net benefit credit: Interest cost $ 1 $ 1 $ 1 Expected return on plan assets (3) (3) (2) Net periodic postretirement benefit credit $ (2) $ (2) $ (1) Actual return on plan assets $ (4) $ (1) $ 3 Actual rate of return on plan assets (8.24 %) (2.25 %) 6.00 % Weighted-average assumptions used: Discount rate 2.79% 2.43 % 3.26 % Expected long-term return on plan assets 5.00 5.00 5.00 Healthcare cost trend rate (a): Cost trend rate assumed n/a 6.00 6.25 Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) n/a 4.50 4.50 Year that the rate reaches the ultimate trend rate n/a 2027 2027 (a) Beginning January 1, 2022, the healthcare cost trend assumption is no longer a relevant assumption due to the change from a self-insured plan to the Medicare and pre-65 individual marketplace with a funded Health Reimbursement Arrangement account. n/a - not applicable The expected long-term rate of return of plan assets is the average rate of return expected to be realized on funds invested or expected to be invested over the life of the plan, which has an estimated duration of approximately 9 years as of December 31, 2022. The expected long-term rate of return on plan assets is set after considering both long-term returns in the general market and long-term returns experienced by the assets in the plan. The returns on the various asset categories are blended to derive an equity and a fixed income long-term rate of return. The Corporation reviews its pension plan assumptions on an annual basis with its actuarial consultants to determine if assumptions are reasonable and adjusts the assumptions to reflect changes in future expectations. Plan Assets The Corporation’s overall investment goals for the qualified defined benefit pension plan are to maintain a portfolio of assets of appropriate liquidity and diversification; to generate investment returns (net of all operating costs) that are reasonably anticipated to maintain the plan’s fully funded status or to reduce a funding deficit, after taking into account various factors, including reasonably anticipated future contributions, expense and the interest rate sensitivity of the plan’s assets relative to that of the plan’s liabilities; and to generate investment returns (net of all operating costs) that meet or exceed a customized benchmark as defined in the plan's investment policy. Derivative instruments are permissible for hedging and transactional efficiency, but only to the extent that the derivative use enhances the efficient execution of the plan’s investment policy. The plan does not directly invest in securities issued by the Corporation and its subsidiaries. The Corporation’s target allocations for plan investments are 40 percent to 50 percent for equity securities and 50 percent to 60 percent for fixed income, including cash. Equity securities include collective investment and mutual funds and common stock. Fixed income securities include U.S. Treasury and other U.S. government agency securities, mortgage-backed securities, corporate bonds and notes, municipal bonds, collateralized mortgage obligations and money market funds. Fair Value Measurements The Corporation’s qualified defined benefit pension plan utilizes fair value measurements to record fair value adjustments and to determine fair value disclosures. The Corporation’s qualified benefit pension plan categorizes investments recorded at fair value into a three-level hierarchy, based on the markets in which the investment are traded and the reliability of the assumptions used to determine fair value. Refer to Note 1 for a description of the three-level hierarchy. Following is a description of the valuation methodologies and key inputs used to measure the fair value of the Corporation’s qualified defined benefit pension plan investments, including an indication of the level of the fair value hierarchy in which the investments are classified. Mutual funds Fair value measurement is based upon the net asset value (NAV) provided by the administrator of the fund. Mutual fund NAVs are quoted in an active market exchange, such as the New York Stock Exchange, and are included in Level 1 of the fair value hierarchy. Common stock Fair value measurement is based upon the closing price quoted in an active market exchange, such as the New York Stock Exchange. Level 1 common stock includes domestic and foreign stock and real estate investment trusts. U.S. Treasury and other U.S. government agency securities Level 1 securities include U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. Fair value measurement is based upon quoted prices in an active market exchange, such as the New York Stock Exchange. Level 2 securities include debt securities issued by U.S. government agencies and U.S. government-sponsored entities. The fair value of Level 2 securities is determined using quoted prices of securities with similar characteristics, or pricing models based on observable market data inputs, primarily interest rates and spreads. Corporate and municipal bonds and notes Fair value measurement is based upon quoted prices of securities with similar characteristics or pricing models based on observable market data inputs, primarily interest rates, spreads and prepayment information. Level 2 securities include corporate bonds, municipal bonds, foreign bonds and foreign notes. Mortgage-backed securities Fair value measurement is based upon independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security's credit rating, prepayment assumptions and other factors, such as credit loss and liquidity assumptions, and are included in Level 2 of the fair value hierarchy. Private placements Fair value is measured using the NAV provided by fund management as quoted prices in active markets are not available. Management considers additional discounts to the provided NAV for market and credit risk. Private placements are included in Level 3 of the fair value hierarchy. Collective investment funds Fair value measurement is based upon the NAV provided by the administrator of the fund as a practical expedient to estimate fair value. There are no unfunded commitments or redemption restrictions on the collective investment funds. The investments are redeemable daily. Fair Values The fair values of the Corporation’s qualified defined benefit pension plan investments measured at fair value on a recurring basis at December 31, 2022 and 2021, by asset category and level within the fair value hierarchy, are detailed in the table below. (in millions) Total Level 1 Level 2 Level 3 December 31, 2022 Fixed income securities: U.S. Treasury and other U.S. government agency securities $ 534 $ 531 $ 3 $ — Corporate and municipal bonds and notes 676 — 676 — Mortgage-backed securities 20 — 20 — Private placements 39 — — 39 Total investments in the fair value hierarchy $ 1,269 $ 531 $ 699 $ 39 Investments measured at net asset value: Collective investment funds 1,230 Total investments at fair value $ 2,499 December 31, 2021 Fixed income securities: U.S. Treasury and other U.S. government agency securities $ 599 $ 595 $ 4 $ — Corporate and municipal bonds and notes 893 — 893 — Mortgage-backed securities 27 — 27 — Private placements 50 — — 50 Total investments in the fair value hierarchy $ 1,569 $ 595 $ 924 $ 50 Investments measured at net asset value: Collective investment funds 1,885 Total investments at fair value $ 3,454 The table below provides a summary of changes in the Corporation’s qualified defined benefit pension plan’s Level 3 investments measured at fair value on a recurring basis for the years ended December 31, 2022 and 2021. Balance at Balance at Net Gains (Losses) (in millions) Realized Unrealized Purchases Sales Year Ended December 31, 2022 Private placements $ 50 $ (3) $ (12) $ 38 $ (34) $ 39 Year Ended December 31, 2021 Private placements $ 58 $ 2 $ (4) $ 44 $ (50) $ 50 There were no assets in the non-qualified defined benefit pension plan at December 31, 2022 and 2021. The postretirement benefit plan is fully invested in bank-owned life insurance policies. The fair value of bank-owned life insurance policies is based on the cash surrender values of the policies as reported by the insurance companies and is classified in Level 2 of the fair value hierarchy. Cash Flows The Corporation currently expects to make no employer contributions to the qualified and non-qualified defined benefit pension plans and postretirement benefit plan for the year ended December 31, 2023. Estimated Future Benefit Payments (in millions) Years Ended December 31 Qualified Non-Qualified Postretirement 2023 $ 168 $ 14 $ 3 2024 140 15 3 2025 139 15 3 2026 143 15 2 2027 140 14 2 2028 - 2032 663 70 8 (a) Estimated benefit payments in the postretirement benefit plan are net of estimated Medicare subsidies. Defined Contribution Plans Substantially all of the Corporation’s employees are eligible to participate in the Corporation’s principal defined contribution plan (a 401(k) plan). Under this plan, the Corporation makes core matching cash contributions of 100 percent of the first 4 percent of qualified earnings contributed by employees (up to the current IRS compensation limit), invested based on employee investment elections. Employee benefits expense included expense for the plan of $24 million for the each of the years ended December 31, 2022, 2021 and 2020. Deferred Compensation Plans The Corporation offers optional deferred compensation plans under which certain employees and non-employee directors (participants) may make an irrevocable election to defer incentive compensation and/or a portion of base salary until retirement or separation from the Corporation. The participant may direct deferred compensation into one or more deemed investment options. Although not required to do so, the Corporation invests actual funds into the deemed investments as directed by participants, resulting in a deferred compensation asset, recorded in other short-term investments on the Consolidated Balance Sheets that offsets the liability to participants under the plan, recorded in accrued expenses and other liabilities. The earnings from the deferred compensation asset are recorded in interest on short-term investments and other noninterest income and the related change in the liability to participants under the plan is recorded in salaries and benefits expense on the Consolidated Statements of Income. |
Income Taxes And Tax-Related It
Income Taxes And Tax-Related Items | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes and Tax-Related Items | INCOME TAXES AND TAX-RELATED ITEMS The provision for income taxes is calculated as the sum of income taxes due for the current year and deferred taxes. Income taxes due for the current year are computed by applying federal and state tax statutes to current year taxable income. Deferred taxes arise from temporary differences between the income tax basis and financial accounting basis of assets and liabilities. Tax-related interest and penalties and foreign taxes are then added to the tax provision. The current and deferred components of the provision for income taxes were as follows: (in millions) December 31 2022 2021 2020 Current: Federal $ 296 $ 212 $ 171 Foreign 6 5 5 State and local 50 26 30 Total current 352 243 206 Deferred: Federal (24) 62 (73) State and local (3) 17 (9) Total deferred (27) 79 (82) Total $ 325 $ 322 $ 124 Income before income taxes of $1.5 billion for the year ended December 31, 2022 included $48 million of foreign taxable income. The provision for income taxes does not reflect the tax effects of unrealized gains and losses on investment securities available-for-sale, hedging transactions or the change in defined benefit pension and other postretirement plans adjustment included in accumulated other comprehensive (loss) income. Refer to Note 14 for additional information on accumulated other comprehensive (loss) income. A reconciliation of expected income tax expense at the federal statutory rate to the Corporation’s provision for income taxes and effective tax rate follows: (dollar amounts in millions) 2022 2021 2020 Years Ended December 31 Amount Rate Amount Rate Amount Rate Tax based on federal statutory rate $ 310 21.0 % $ 313 21.0 % $ 130 21.0 % State income taxes 36 2.5 35 2.4 18 2.9 Affordable housing and historic credits (13) (0.9) (13) (0.9) (12) (1.9) Bank-owned life insurance (10) (0.7) (10) (0.6) (10) (1.6) FDIC insurance expense 6 0.4 5 0.3 7 1.1 Employee stock transactions (3) (0.2) (3) (0.2) (1) (0.2) Tax-related interest and penalties — — — — (2) (0.3) Other (1) (0.1) (5) (0.4) (6) (1.0) Provision for income taxes $ 325 22.0 % $ 322 21.6 % $ 124 20.0 % The liability for tax-related interest and penalties, included in accrued expenses and other liabilities on the Consolidated Balance Sheets, was $5 million and $6 million at December 31, 2022 and 2021, respectively. In the ordinary course of business, the Corporation enters into certain transactions that have tax consequences. From time to time, the Internal Revenue Service (IRS) may review and/or challenge specific interpretive tax positions taken by the Corporation with respect to those transactions. The Corporation believes that its tax returns were filed based upon applicable statutes, regulations and case law in effect at the time of the transactions. The IRS or other tax jurisdictions, an administrative authority or a court, if presented with the transactions, could disagree with the Corporation’s interpretation of the tax law. A reconciliation of the beginning and ending amount of net unrecognized tax benefits follows: (in millions) 2022 2021 2020 Balance at January 1 $ 18 $ 19 $ 17 (Decrease) increase as a result of tax positions taken during a prior period (2) 1 1 Increase as a result of tax positions taken during the current period 3 3 2 Decreases related to settlements with tax authorities (3) (3) (1) Reduction as a result of expiration of statute of limitations — (2) — Balance at December 31 $ 16 $ 18 $ 19 After consideration of the effect of the federal tax benefit available on unrecognized state tax benefits, the total amount of unrecognized tax benefits which, if recognized, would affect the Corporation’s effective tax rate was approximately $13 million and $14 million at December 31, 2022 and 2021, respectively. The following tax years for significant jurisdictions remain subject to examination as of December 31, 2022: Jurisdiction Tax Years Federal 2019-2021 New York 2018-2021 California 2006-2007, 2018-2021 The Corporation expects to enter into a settlement agreement with the California Franchise Tax Board related to open years 2006 and 2007 that will result in a change in net unrecognized tax benefits within the next twelve months. As a result of the agreement, the Corporation anticipates a favorable change of approximately $4 million in tax and $3 million in interest and penalties. Based on current knowledge and probability assessment of various potential outcomes, the Corporation believes current tax reserves are adequate, and the amount of any potential incremental liability arising is not expected to have a material adverse effect on the Corporation’s consolidated financial condition or results of operations. Probabilities and outcomes are reviewed as events unfold, and adjustments to the reserves are made when necessary. During 2022, the Corporation received a favorable ruling from the Michigan Supreme Court in its petition to the state for its tax credit transfer regarding tax years 2008 through 2011. The Corporation has recorded a non-income tax benefit of $4 million, with the expectation of another $7 million to be recognized in the following year (amounts are not inclusive of interest.) The principal components of deferred tax assets and liabilities were as follows: (in millions) December 31 2022 2021 Deferred tax assets: Allowance for depreciation $ — $ 7 Allowance for loan losses 128 124 Deferred compensation 84 71 Deferred loan origination fees and costs 12 17 Net hedging losses 290 — Net unrealized losses on investment securities available-for-sale 713 30 Operating lease liabilities 85 74 Other temporary differences, net 42 21 Total deferred tax assets before valuation allowance 1,354 344 Valuation allowance (5) (5) Total deferred tax assets 1,349 339 Deferred tax liabilities: Lease financing transactions (31) (49) Defined benefit plans (123) (198) Allowance for depreciation (4) — Net hedging gains — (17) Leasing Right of Use assets (71) (66) Total deferred tax liabilities (229) (330) Net deferred tax assets $ 1,120 $ 9 |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | TRANSACTIONS WITH RELATED PARTIES The Corporation’s banking subsidiaries had, and expect to have in the future, transactions with the Corporation’s directors and executive officers, companies with which these individuals are associated and certain related individuals. Such transactions were made in the ordinary course of business and included extensions of credit, leases and professional services. With respect to extensions of credit, all were made on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other customers and did not, in management’s opinion, involve more than normal risk of collectibility or present other unfavorable features. The aggregate amount of loans attributable to persons who were related parties at December 31, 2022 totaled $74 million at the beginning of 2022 and $57 million at the end of 2022. During 2022, new loans to related parties aggregated $270 million and repayments totaled $287 million. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital | REGULATORY CAPITALBanking regulations limit the transfer of assets in the form of dividends, loans or advances from the bank subsidiaries to the parent company. Under the most restrictive of these regulations, the aggregate amount of dividends which can be paid to the parent company, with prior approval from bank regulatory agencies, approximated $506 million at January 1, 2023, plus 2023 net profits. Substantially all the assets of the Corporation’s banking subsidiaries are restricted from transfer to the parent company of the Corporation in the form of loans or advances. The Corporation’s subsidiary banks declared dividends of $1.0 billion, $852 million and $498 million in 2022, 2021 and 2020, respectively. The Corporation and its U.S. banking subsidiaries are subject to various regulatory capital requirements administered by federal and state banking agencies under the Basel III regulatory framework (Basel III). This regulatory framework establishes comprehensive methodologies for calculating regulatory capital and risk-weighted assets (RWA). Basel III also set minimum capital ratios as well as overall capital adequacy standards. Under Basel III, regulatory capital comprises Common Equity Tier 1 (CET1) capital, additional Tier 1 capital and Tier 2 capital. CET1 capital predominantly includes common shareholders' equity, less certain deductions for goodwill, intangible assets and deferred tax assets that arise from net operating losses and tax credit carry-forwards. Additionally, the Corporation has elected to permanently exclude capital in accumulated other comprehensive income (AOCI) related to debt and equity securities classified as available-for-sale as well as for cash flow hedges and defined benefit postretirement plans from CET1, an option available to standardized approach entities under Basel III. Tier 1 capital incrementally includes noncumulative perpetual preferred stock. Tier 2 capital includes Tier 1 capital as well as subordinated debt qualifying as Tier 2 and qualifying allowance for credit losses. In addition to the minimum risk-based capital requirements, the Corporation and its Bank subsidiaries are required to maintain a minimum capital conservation buffer, in the form of common equity, of 2.5 percent in order to avoid restrictions on capital distributions and discretionary bonuses. The Corporation computes RWA using the standardized approach. Under the standardized approach, RWA is generally based on supervisory risk-weightings which vary by counterparty type and asset class. Under the Basel III standardized approach, capital is required for credit risk RWA, to cover the risk of unexpected losses due to failure of a customer or counterparty to meet its financial obligations in accordance with contractual terms; and if trading assets and liabilities exceed certain thresholds, capital is also required for market risk RWA, to cover the risk of losses due to adverse market movements or from position-specific factors. Quantitative measures established by regulation to ensure capital adequacy require the maintenance of minimum amounts and ratios of CET1, Tier 1 and total capital (as defined in the regulations) to average and/or risk-weighted assets. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s financial statements. At December 31, 2022 and 2021, the Corporation and its U.S. banking subsidiaries exceeded the ratios required for an institution to be considered “well capitalized”. For U.S. banking subsidiaries, those requirements were total risk-based capital, Tier 1 risk-based capital, CET1 risk-based capital and leverage ratios greater than 10 percent, 8 percent, 6.5 percent and 5 percent, respectively, at December 31, 2022 and 2021. For the Corporation, requirements to be considered "well capitalized" were total risk-based capital and Tier 1 risk-based capital ratios greater than 10 percent and 6 percent, respectively, at December 31, 2022 and 2021. There have been no conditions or events since December 31, 2022 that management believes have changed the capital adequacy classification of the Corporation or its U.S. banking subsidiaries. The following is a summary of the capital position of the Corporation and Comerica Bank, its principal banking subsidiary. (dollar amounts in millions) Comerica Comerica December 31, 2022 CET1 capital (minimum $3.5 billion (Consolidated)) $ 7,884 $ 7,801 Tier 1 capital (minimum $4.7 billion (Consolidated)) 8,278 7,801 Total capital (minimum $6.3 billion (Consolidated)) 9,817 9,190 Risk-weighted assets 78,871 78,781 Average assets (fourth quarter) 86,726 86,608 CET1 capital to risk-weighted assets (minimum-4.5%) 10.00 % 9.90 % Tier 1 capital to risk-weighted assets (minimum-6.0%) 10.50 9.90 Total capital to risk-weighted assets (minimum-8.0%) 12.45 11.67 Tier 1 capital to average assets (minimum-4.0%) 9.55 9.01 Capital conservation buffer (minimum-2.5%) 4.45 3.67 December 31, 2021 CET1 capital (minimum $3.1 billion (Consolidated)) $ 7,064 $ 7,634 Tier 1 capital (minimum $4.2 billion (Consolidated)) 7,458 7,634 Total capital (minimum $5.6 billion (Consolidated)) 8,608 8,584 Risk-weighted assets 69,708 69,542 Average assets (fourth quarter) 96,417 96,216 CET1 capital to risk-weighted assets (minimum-4.5%) 10.13 % 10.98 % Tier 1 capital to risk-weighted assets (minimum-6.0%) 10.70 10.98 Total capital to risk-weighted assets (minimum-8.0%) 12.35 12.34 Tier 1 capital to average assets (minimum-4.0%) 7.74 7.93 Capital conservation buffer (minimum-2.5%) 4.35 4.34 |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | CONTINGENT LIABILITIES Legal Proceedings and Regulatory Matters The Corporation and certain of its subsidiaries are subject to various other pending or threatened legal proceedings arising out of the normal course of business or operations. The Corporation believes it has meritorious defenses to the claims asserted against it in its other currently outstanding legal proceedings and, with respect to such legal proceedings, intends to continue to defend itself vigorously, litigating or settling cases according to management’s judgment as to what is in the best interests of the Corporation and its shareholders. Settlement may result from the Corporation's determination that it may be more prudent financially to settle, rather than litigate, and should not be regarded as an admission of liability. Further, from time to time, the Corporation is also subject to examinations, inquiries and investigations by regulatory authorities in areas including, but not limited to, compliance, risk management and consumer protection, which could lead to administrative or legal proceedings or settlements. For example, the Consumer Financial Protection Bureau (“CFPB”) is investigating certain of the Corporation's practices, and the Corporation has responded and continues to respond to the CFPB. We are unable to predict the outcome of these discussions at this time. Remedies in these proceedings or settlements may include fines, penalties, restitution or alterations in the Corporation's business practices and may result in increased operating expenses or decreased revenues. On at least a quarterly basis, the Corporation assesses its potential liabilities and contingencies in connection with outstanding legal proceedings and regulatory matters utilizing the latest information available. On a case-by-case basis, accruals are established for those legal claims and regulatory matters for which it is probable that a loss will be incurred and the amount of such loss can be reasonably estimated. The actual costs of resolving these claims and regulatory matters may be substantially higher or lower than the amounts accrued. Based on current knowledge, and after consultation with legal counsel, management believes current accruals are adequate, and the amount of any incremental liability arising from these matters is not expected to have a material adverse effect on the Corporation’s consolidated financial condition, results of operations or cash flows. Legal fees of $17 million, $14 million and $17 million for the years ended December 31, 2022, 2021 and 2020, respectively, were included in other noninterest expenses on the Consolidated Statements of Income. For matters where a loss is not probable, the Corporation has not established an accrual. The Corporation believes the estimate of the aggregate range of reasonably possible losses, in excess of established accruals, for all legal proceedings and regulatory matters in which it is involved is from zero to approximately $80 million at December 31, 2022. This estimated aggregate range of reasonably possible losses is based upon currently available information for those legal proceedings and regulatory matters in which the Corporation is involved, taking into account the Corporation’s best estimate of such losses for those legal cases and regulatory matters for which such estimate can be made. For certain legal cases and regulatory matters, the Corporation does not believe that an estimate can currently be made. The Corporation’s estimate involves significant judgment, given the varying stages of the legal proceedings and regulatory matters (including the fact many are currently in preliminary stages), the existence in certain legal proceedings of multiple defendants (including the Corporation) whose share of liability has yet to be determined, the numerous yet-unresolved issues in many of the legal proceedings and regulatory matters (including issues regarding class certification and the scope of many of the claims) and the attendant uncertainty of the various potential outcomes of such legal proceedings and regulatory matters. Accordingly, the Corporation’s estimate will change from time to time, and actual losses may be more or less than the current estimate. In the event of unexpected future developments, it is possible that the ultimate resolution of these matters, if unfavorable, may be material to the Corporation's consolidated financial condition, results of operations or cash flows. For information regarding income tax contingencies, refer to Note 18. |
Strategic Lines of Business
Strategic Lines of Business | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | STRATEGIC LINES OF BUSINESS The Corporation has strategically aligned its operations into three major business segments: the Commercial Bank, the Retail Bank and Wealth Management. These business segments are differentiated based on the type of customer and the related products and services provided. In addition to the three major business segments, the Finance Division is also reported as a segment. Business segment results are produced by the Corporation’s internal management accounting system. This system measures financial results based on the internal business unit structure of the Corporation. The performance of the business segments is not comparable with the Corporation's consolidated results and is not necessarily comparable with similar information for any other financial institution. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. The management accounting system assigns balance sheet and income statement items to each business segment using certain methodologies, which are regularly reviewed and refined. From time to time, the Corporation may make reclassifications among the segments to more appropriately reflect management's current view of the segments, and methodologies may be modified as the management accounting system is enhanced and changes occur in the organizational structure and/or product lines. For comparability purposes, amounts in all periods are based on business unit structure and methodologies in effect at December 31, 2022. Net interest income for each segment reflects the interest income generated by earning assets less interest expense on interest-bearing liabilities plus the net impact from associated internal funds transfer pricing (FTP) funding credits and charges. The FTP methodology allocates credits to each business segment for deposits and other funds provided as well as charges for loans and other assets being funded. This credit or charge is based on matching stated or implied maturities for these assets and liabilities. The FTP crediting rates on deposits and other funds provided reflect the long-term value of deposits and other funding sources based on their implied maturity. Due to the longer-term nature of implied maturities, FTP crediting rates are generally less volatile than changes in interest rates observed in the market. FTP charge rates for funding loans and other assets reflect a matched cost of funds based on the pricing and duration characteristics of the assets. As a result of applying matched funding, interest revenue for each segment resulting from loans and other assets is generally not impacted by changes in interest rates. Therefore, net interest income for each segment primarily reflects the volume of loans and other earning assets at the spread over the matched cost of funds, as well as the volume of deposits at the associated FTP crediting rates. Generally, in periods of rising interest rates, FTP charge rates for funding loans and FTP crediting rates on deposits will increase, with FTP crediting rates for deposits typically repricing at a slower pace than FTP charge rates for funding loans. For acquired loans and deposits, matched maturity funding is determined based on origination date. Accordingly, the FTP process reflects the transfer of interest rate risk exposures to the Corporate Treasury department within the Finance segment, where such exposures are centrally managed. The allowance for credit losses is allocated to the business segments based on the methodology used to estimate the consolidated allowance for credit losses described in Note 1. The related provision for credit losses is assigned based on the amount necessary to maintain an allowance for credit losses appropriate for each business segment. Noninterest income and expenses directly attributable to a line of business are assigned to that business segment. Direct expenses incurred by areas whose services support the overall Corporation are allocated to the business segments as follows: product processing expenditures are allocated based on standard unit costs applied to actual volume measurements; administrative expenses are allocated based on estimated time expended; and corporate overhead is assigned 50 percent based on the ratio of the business segment’s noninterest expenses to total noninterest expenses incurred by all business segments and 50 percent based on the ratio of the business segment’s attributed equity to total attributed equity of all business segments. Equity is attributed based on credit, operational and interest rate risks. Most of the equity attributed relates to credit risk, which is determined based on the credit score and expected remaining life of each loan, letter of credit and unused commitment recorded in the business segments. Operational risk is allocated based on loans and letters of credit, deposit balances, non-earning assets, trust assets under management, certain noninterest income items, and the nature and extent of expenses incurred by business units. Virtually all interest rate risk is assigned to Finance, as are the Corporation’s hedging activities. The following discussion provides information about the activities of each business segment. A discussion of the financial results and the factors impacting 2022 performance can be found in "Strategic Lines of Business" section of the financial review. The Commercial Bank meets the needs of small and middle market businesses, multinational corporations and governmental entities by offering various products and services including commercial loans and lines of credit, deposits, cash management, payment solutions, card services, capital market products, international trade finance, letters of credit, foreign exchange management services and loan syndication services. The Retail Bank includes a full range of personal financial services, consisting of consumer lending, consumer deposit gathering and mortgage loan origination. This business segment offers a variety of consumer products, including deposit accounts, installment loans, credit cards, student loans, home equity lines of credit and residential mortgage loans. In addition, this business segment offers a subset of commercial products and services to micro-businesses whose primary contact is through the branch network. Wealth Management offers products and services consisting of fiduciary services, private banking, retirement services, securities-based lending, investment management and advisory services, investment banking and brokerage services. This business segment also offers the sale of annuity products, as well as life, disability and long-term care insurance products. The Finance segment includes the Corporation’s securities portfolio and asset and liability management activities. This segment is responsible for managing the Corporation’s funding, liquidity and capital needs, performing interest sensitivity analysis and executing various strategies to manage the Corporation’s exposure to liquidity, interest rate risk and foreign exchange risk. The Other category includes the income and expense impact of equity and cash, tax benefits not assigned to specific business segments, charges of an unusual or infrequent nature that are not reflective of the normal operations of the business segments and miscellaneous other expenses of a corporate nature. Business segment financial results are as follows: (dollar amounts in millions) Commercial Retail Wealth Management Finance Other Total Year Ended December 31, 2022 Earnings summary: Net interest income (expense) $ 1,753 $ 680 $ 199 $ (187) $ 21 $ 2,466 Provision for credit losses 32 11 9 — 8 60 Noninterest income 607 122 298 58 (17) 1,068 Noninterest expenses 963 689 348 1 (3) 1,998 Provision (benefit) for income taxes 313 22 33 (37) (6) 325 Net income (loss) $ 1,052 $ 80 $ 107 $ (93) $ 5 $ 1,151 Net credit-related charge-offs (recoveries) $ 21 $ (1) $ (3) $ — $ — $ 17 Selected average balances: Assets $ 47,660 $ 2,814 $ 5,037 $ 20,682 $ 11,079 $ 87,272 Loans 43,481 2,063 4,906 — 10 50,460 Deposits 42,584 26,672 5,439 591 195 75,481 Statistical data: Return on average assets (a) 2.21 % 0.29 % 1.83 % n/m n/m 1.32 % Efficiency ratio (b) 40.69 85.31 70.00 n/m n/m 56.32 Year Ended December 31, 2021 Earnings summary: Net interest income (expense) $ 1,574 $ 565 $ 166 $ (471) $ 10 $ 1,844 Provision for credit losses (346) (5) (32) — (1) (384) Noninterest income 663 123 279 41 17 1,123 Noninterest expenses 870 645 317 1 28 1,861 Provision (benefit) for income taxes 384 5 36 (100) (3) 322 Net income (loss) $ 1,329 $ 43 $ 124 $ (331) $ 3 $ 1,168 Net credit-related (recoveries) charge-offs $ (12) $ 2 $ — $ — $ — $ (10) Selected average balances: Assets $ 44,004 $ 3,213 $ 5,028 $ 17,705 $ 20,202 $ 90,152 Loans 41,801 2,382 4,903 — (3) 49,083 Deposits 45,602 25,682 5,218 965 214 77,681 Statistical data: Return on average assets (a) 2.71 % 0.16 % 2.24 % n/m n/m 1.30 % Efficiency ratio (b) 38.76 92.98 71.02 n/m n/m 62.42 (Table continues on following page) (dollar amounts in millions) Commercial Bank Retail Wealth Management Finance Other Total Year Ended December 31, 2020 Earnings summary: Net interest income (expense) $ 1,605 $ 503 $ 167 $ (384) $ 20 $ 1,911 Provision for credit losses 495 7 35 — — 537 Noninterest income 555 110 263 55 18 1,001 Noninterest expenses 813 607 295 2 37 1,754 Provision (benefit) for income taxes 184 (3) 22 (78) (1) 124 Net income (loss) $ 668 $ 2 $ 78 $ (253) $ 2 $ 497 Net credit-related charge-offs $ 192 $ 1 $ 3 $ — $ — $ 196 Selected average balances: Assets $ 45,716 $ 3,281 $ 5,162 $ 15,418 $ 11,569 $ 81,146 Loans 44,119 2,468 5,045 — (1) 51,631 Deposits 36,616 22,832 4,402 1,026 162 65,038 Statistical data: Return on average assets (a) 1.46 % — % 1.51 % n/m n/m 0.61 % Efficiency ratio (b) 37.63 98.52 68.47 n/m n/m 60.13 (a) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. (b) Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains (losses) from securities, a derivative contract tied to the conversion rate of Visa Class B shares and changes in the value of shares obtained through monetization of warrants. n/m – not meaningful |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Financial Statments | PARENT COMPANY FINANCIAL STATEMENTS BALANCE SHEETS - COMERICA INCORPORATED (in millions, except share data) December 31 2022 2021 Assets Cash and due from subsidiary banks $ 1,810 $ 1,105 Other short-term investments 92 113 Receivable due from subsidiary bank 150 150 Investment in subsidiaries, principally banks 4,853 8,278 Premises and equipment — 1 Accrued income and other assets 191 265 Total assets $ 7,096 $ 9,912 Liabilities and Shareholders’ Equity Medium- and long-term debt $ 1,593 $ 1,736 Accrued expenses and other liabilities 322 279 Total liabilities 1,915 2,015 Fixed-rate reset non-cumulative perpetual preferred stock, series A, no par value, $100,000 liquidation preference per share: Authorized - 4,000 shares Issued - 4,000 shares 394 394 Common stock - $5 par value: Authorized - 325,000,000 shares Issued - 228,164,824 shares 1,141 1,141 Capital surplus 2,220 2,175 Accumulated other comprehensive loss (3,742) (212) Retained earnings 11,258 10,494 Less cost of common stock in treasury - 97,197,962 shares at 12/31/2022 and 97,476,872 shares at 12/31/2021 (6,090) (6,095) Total shareholders’ equity 5,181 7,897 Total liabilities and shareholders’ equity $ 7,096 $ 9,912 STATEMENTS OF INCOME - COMERICA INCORPORATED (in millions) Years Ended December 31 2022 2021 2020 Income Income from subsidiaries: Dividends from subsidiaries $ 1,067 $ 849 $ 498 Other interest income 13 1 4 Intercompany management fees 109 235 209 Total income 1,189 1,085 711 Expenses Interest on medium- and long-term debt 47 20 30 Salaries and benefits expense 53 170 141 Other noninterest expenses 46 72 66 Total expenses 146 262 237 Income before benefit for income taxes and equity in undistributed earnings of subsidiaries 1,043 823 474 Benefit for income taxes (3) (6) (6) Income before equity in undistributed earnings of subsidiaries 1,046 829 480 Equity in undistributed earnings of subsidiaries, principally banks 105 339 17 Net income 1,151 1,168 497 Less income allocated to participating securities 6 5 2 Preferred stock dividends 23 23 13 Net income attributable to common shares $ 1,122 $ 1,140 $ 482 STATEMENTS OF CASH FLOWS - COMERICA INCORPORATED (in millions) Years Ended December 31 2022 2021 2020 Operating Activities Net income $ 1,151 $ 1,168 $ 497 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed (earnings) of subsidiaries, principally banks (105) (339) (17) Net periodic defined benefit cost 2 5 4 Share-based compensation expense 22 19 11 Benefit for deferred income taxes — (2) (1) Other, net 24 3 2 Net cash provided by operating activities 1,094 854 496 Investing Activities Advance to subsidiary bank — (150) — Capital transactions with subsidiaries — — (21) Other, net 2 (1) 2 Net cash provided by (used in) investing activities 2 (151) (19) Financing Activities Preferred Stock: Issuances — — 394 Cash dividends paid (23) (23) (8) Common Stock: Repurchases (43) (729) (199) Cash dividends paid (353) (369) (375) Issuances under employee stock plans 28 34 4 Net cash used in financing activities (391) (1,087) (184) Net increase (decrease) in cash and cash equivalents 705 (384) 293 Cash and cash equivalents at beginning of period 1,105 1,489 1,196 Cash and cash equivalents at end of period $ 1,810 $ 1,105 $ 1,489 Interest paid $ 41 $ 21 $ 33 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue from contracts with customers comprises the noninterest income earned by the Corporation in exchange for services provided to customers. The following table presents the composition of revenue from contracts with customers, segregated from other sources of noninterest income, by business segment. Commercial Retail Wealth Management Finance & Other Total (in millions) Year Ended December 31, 2022 Revenue from contracts with customers: Card fees $ 227 $ 42 $ 4 $ — $ 273 Fiduciary income — — 233 — 233 Service charges on deposit accounts 132 57 6 — 195 Commercial loan servicing fees (a) 18 — — — 18 Brokerage fees — — 21 — 21 Other noninterest income (b) 7 16 24 1 48 Total revenue from contracts with customers 384 115 288 1 788 Other sources of noninterest income 223 7 10 40 280 Total noninterest income $ 607 $ 122 $ 298 $ 41 $ 1,068 Year Ended December 31, 2021 Revenue from contracts with customers: Card fees $ 250 $ 44 $ 4 $ — $ 298 Fiduciary income — — 231 — 231 Service charges on deposit accounts 136 54 5 — 195 Commercial loan servicing fees (a) 19 — — — 19 Brokerage fees — — 14 — 14 Other noninterest income (b) 5 17 17 — 39 Total revenue from contracts with customers 410 115 271 — 796 Other sources of noninterest income 253 8 8 58 327 Total noninterest income 663 123 279 58 1,123 Year Ended December 31, 2020 Revenue from contracts with customers: Card fees $ 229 $ 38 $ 3 $ — $ 270 Fiduciary income — — 209 — 209 Service charges on deposit accounts 128 52 5 — 185 Commercial loan servicing fees (a) 18 — — — 18 Brokerage fees — — 21 — 21 Other noninterest income (b) 28 10 17 — 55 Total revenue from contracts with customers 403 100 255 — 758 Other sources of noninterest income 152 10 8 73 243 Total noninterest income $ 555 $ 110 $ 263 $ 73 $ 1,001 (a) Included in commercial lending fees on the Consolidated Statements of Income. (b) Excludes derivative, warrant and other miscellaneous income. Revenue from contracts with customers did not generate significant contract assets and liabilities. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases [Text Block] | LEASES As a lessee, the Corporation has entered into operating leases for the majority of its real estate locations, primarily retail and office space. Total lease expense for the years ended December 31, 2022, 2021 and 2020 were as follows: (in millions) Years Ended December 31 2022 2021 2020 Operating lease expense $ 68 $ 65 $ 64 Variable lease expense 17 15 16 Less sublease income (1) (1) (1) Total lease expense $ 84 $ 79 $ 79 Supplemental balance sheet information related to leases is summarized as follows: (dollar amounts in millions) Years Ended December 31 2022 2021 2020 Included in accrued income and other assets Right-of-use (ROU) assets $ 338 $ 317 $ 306 Included in accrued expenses and other liabilities Operating lease liabilities 406 356 344 Weighted average discount rate 3.53 % 3.33 % 3.61 % Weighted average lease term in years 9 8 8 Supplemental cash flow information related to leases is summarized as follows: (in millions) Years Ended December 31 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 66 $ 66 $ 65 ROU assets obtained in exchange for new liabilities (a) 80 64 28 (a) Includes a $24 million reduction to both ROU assets and lease liabilities for a partial termination related to the Company's Texas headquarters for the year ended December 31, 2022. As of December 31, 2022, the contractual maturities of operating lease liabilities were as follows: (in millions) Years Ending December 31 2023 $ 63 2024 69 2025 63 2026 55 2027 45 Thereafter 185 Total contractual maturities 480 Less imputed interest (74) Total operating lease liabilities $ 406 As a lessor, the Corporation leases certain types of manufacturing and warehouse equipment as well as public and private transportation vehicles to its customers. The Corporation recognized lease-related revenue, primarily interest income from sales-type and direct financing leases of $21 million, $12 million and $13 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Corporation's net investment in sales-type and direct financing leases was $659 million and $464 million at December 31, 2022 and 2021, respectively. As of December 31, 2022, the contractual maturities of sales-type and direct financing lease receivables were as follows: (in millions) Years Ending December 31 2023 $ 101 2024 127 2025 137 2026 71 2027 36 Thereafter 148 Total lease payments receivable 620 Unguaranteed residual values 61 Less deferred interest income (22) Total lease receivables (a) $ 659 (a) Excludes net investment in leveraged leases of $101 million. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies Basis of Presentation and Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Corporation and the accounts of those subsidiaries that are majority owned and in which the Corporation has a controlling financial interest. The Corporation consolidates entities not determined to be variable interest entities (VIEs) when it holds a controlling financial interest and applies the cost or equity method when it holds less than a controlling financial interest. In consolidation, all significant intercompany accounts and transactions are eliminated. The results of operations of companies acquired are included from the date of acquisition. The Corporation holds investments in certain legal entities that are considered VIEs. In general, a VIE is an entity that either (1) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (2) has a group of equity owners that are unable to make significant decisions about its activities, or (3) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns generated by its operations. If any of these characteristics are present, the entity is subject to a variable interests consolidation model, and consolidation is based on variable interests, not on voting interests. Variable interests are defined as contractual ownership or other economic interests in an entity that change with fluctuations in the entity’s net asset value. The primary beneficiary, which is required to consolidate the VIE, is defined as the party that has both the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. The maximum potential exposure to losses relative to investments in VIEs is generally limited to the sum of the outstanding book basis and unfunded commitments for future investments. The Corporation evaluates its investments in VIEs, both at inception and when there is a change in circumstances that requires reconsideration, to determine if the Corporation is the primary beneficiary and consolidation is required. The Corporation accounts for unconsolidated VIEs using either the proportional, cost or equity method. These investments comprise investments in community development projects which generate tax credits to their investors and are included in accrued income and other assets on the Consolidated Balance Sheets. The proportional method is used for investments in affordable housing projects that qualify for the low-income housing tax credit (LIHTC). The equity method is used for other investments where the Corporation has the ability to exercise significant influence over the entity’s operation and financial policies. Other unconsolidated equity investments that do not meet the criteria to be accounted for under the equity method are accounted for under the cost method. Amortization and other write-downs of LIHTC investments are presented on a net basis as a component of the provision for income taxes, while income, amortization and write-downs from cost and equity method investments are recorded in other noninterest income on the Consolidated Statements of Income. Assets held in an agency or fiduciary capacity are not assets of the Corporation and are not included in the consolidated financial statements. See Note 9 for additional information about the Corporation’s involvement with VIEs. |
Fair Value Measurements | Fair Value Measurements The Corporation utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, the Corporation uses present value techniques and other valuation methods to estimate the fair values of its financial instruments. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used. Fair value is an estimate of the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (i.e., not a forced transaction, such as a liquidation or distressed sale) between market participants at the measurement date. Fair value is based on the assumptions market participants would use when pricing an asset or liability. Investment securities available-for-sale, derivatives, deferred compensation plans and equity securities with readily determinable fair values (primarily money market mutual funds) are recorded at fair value on a recurring basis. Additionally, from time to time, the Corporation may be required to record other assets and liabilities at fair value on a nonrecurring basis, such as impaired loans, other real estate (primarily foreclosed property), nonmarketable equity securities and certain other assets and liabilities. These nonrecurring fair value adjustments typically involve write-downs of individual assets or application of lower of cost or fair value accounting. Fair value measurements and disclosures guidance establishes a three-level fair value hierarchy based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. Fair value measurements are separately disclosed by level within the fair value hierarchy. For assets and liabilities recorded at fair value, it is the Corporation’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are less active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. The Corporation generally utilizes third-party pricing services to value Level 1 and Level 2 securities. Management reviews the methodologies and assumptions used by the third-party pricing services and evaluates the values provided, principally by comparison with other available market quotes for similar instruments and/or analysis based on internal models using available third-party market data. The Corporation may occasionally adjust certain values provided by the third-party pricing service when management believes, as the result of its review, that the adjusted price most appropriately reflects the fair value of the particular security. Fair value measurements for assets and liabilities where limited or no observable market data exists are based primarily upon estimates, often calculated based on the economic and competitive environment, the characteristics of the asset or liability and other factors. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. Additionally, there may be inherent weaknesses in any calculation technique so that changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values. Following are descriptions of the valuation methodologies and key inputs used to measure financial assets and liabilities recorded at fair value, as well as a description of the methods and significant assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a recurring basis. The descriptions include an indication of the level of the fair value hierarchy in which the assets or liabilities are classified. Cash and due from banks, federal funds sold and interest-bearing deposits with banks Due to their short-term nature, the carrying amount of these instruments approximates the estimated fair value. As such, the Corporation classifies the estimated fair value of these instruments as Level 1. Deferred compensation plan assets and liabilities as well as equity securities with a readily determinable fair value The Corporation holds a portfolio of securities that includes equity securities and assets held related to deferred compensation plans. Securities and associated deferred compensation plan liabilities are recorded at fair value on a recurring basis and included in other short-term investments and accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheets. Level 1 securities include assets related to deferred compensation plans, which are invested in mutual funds, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and other securities traded on an active exchange, such as the New York Stock Exchange. Level 2 securities include municipal bonds and mortgage-backed securities issued by U.S. government-sponsored entities and corporate debt securities. Deferred compensation plan liabilities represent the fair value of the obligation to the plan participant, which corresponds to the fair value of the invested assets. The methods used to value equity securities and deferred compensation plan assets are the same as the methods used to value investment securities, discussed below. Investment securities Investment securities available-for-sale are recorded at fair value on a recurring basis. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored entities, as well as corporate debt securities. The fair value of Level 2 securities is determined using quoted prices of securities with similar characteristics, or pricing models based on observable market data inputs, primarily interest rates, spreads and prepayment information. Securities classified as Level 3 represent securities in less liquid markets requiring significant management assumptions when determining fair value. Loans held-for-sale Loans held-for-sale, included in other short-term investments on the Consolidated Balance Sheets, are recorded at the lower of cost or fair value. Loans held-for-sale may be carried at fair value on a nonrecurring basis when fair value is less than cost. The fair value is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, the Corporation classifies both loans held-for-sale subjected to nonrecurring fair value adjustments and the estimated fair value of loans held-for sale as Level 2. Loans The Corporation does not record loans at fair value on a recurring basis. However, an individual allowance may be established for a loan that no longer shares risk characteristics with loan pools, typically collateral-dependent loans for which reserves are based on the fair value of the underlying collateral. Such loan values are reported as nonrecurring fair value measurements. Collateral values supporting individually evaluated loans are evaluated quarterly. When management determines that the fair value of the collateral requires additional adjustments, either as a result of non-current appraisal value or when there is no observable market price, the Corporation classifies the loan as Level 3. The Corporation discloses fair value estimates for loans. The estimated fair value is determined based on characteristics such as loan category, repricing features and remaining maturity, and includes prepayment and credit loss estimates. Fair values are estimated using a discounted cash flow model that employs discount rates reflecting current pricing for loans with similar maturity and risk characteristics, including credit characteristics, and the cost of equity for the portfolio at the balance sheet date. The rates take into account the expected yield curve, as well as an adjustment for prepayment risk, when applicable. The Corporation classifies the estimated fair value of loans held for investment as Level 3. Customers’ liability on acceptances outstanding and acceptances outstanding Customers' liability on acceptances outstanding is included in accrued income and other assets and acceptances outstanding are included in accrued expenses and other liabilities on the Consolidated Balance Sheets. Due to their short-term nature, the carrying amount of these instruments approximates the estimated fair value. As such, the Corporation classifies the estimated fair value of these instruments as Level 1. Derivative assets and derivative liabilities Derivative instruments held or issued for risk management or customer-initiated activities are traded in over-the-counter markets where quoted market prices are not readily available. Fair value for over-the-counter derivative instruments is measured on a recurring basis using internally developed models primarily based on market observable inputs, such as yield curves and option volatilities. The Corporation manages credit risk on its derivative positions based on whether the derivatives are settled through a clearinghouse or bilaterally with each counterparty. For derivative positions settled on a counterparty-by-counterparty basis, the Corporation calculates credit valuation adjustments, included in the fair value of these instruments, on the basis of its relationships at the counterparty portfolio or master netting agreement level. These credit valuation adjustments are determined by applying a credit spread for the counterparty or the Corporation, as appropriate, to the total expected exposure of the derivative after considering collateral and other master netting arrangements. These adjustments, which are considered Level 3 inputs, are based on estimates of current credit spreads to evaluate the likelihood of default. When credit valuation adjustments are significant to the overall fair value of a derivative, the Corporation classifies the over-the-counter derivative valuation in Level 3 of the fair value hierarchy; otherwise, over-the-counter derivative valuations are classified in Level 2. Nonmarketable equity securities The Corporation has a portfolio of indirect (through funds) private equity and venture capital investments, included in accrued income and other assets on the Consolidated Balance Sheets. The investments are accounted for either on the cost or equity method and are individually reviewed for impairment on a quarterly basis by comparing the carrying value to the estimated fair value. These investments may be carried at fair value on a nonrecurring basis when they are deemed to be impaired and written down to fair value. Where there is not a readily determinable fair value, the Corporation estimates fair value for indirect private equity and venture capital investments based on the net asset value, as reported by the fund. The Corporation also holds restricted equity investments, primarily Federal Reserve Bank (FRB) and Federal Home Loan Bank (FHLB) stock. Restricted equity securities are not readily marketable and are recorded at cost (par value) in accrued income and other assets on the Consolidated Balance Sheets and evaluated for impairment based on the ultimate recoverability of the par value. No significant observable market data for these instruments is available. The Corporation considers the profitability and asset quality of the issuer, dividend payment history and recent redemption experience and believes its investments in FRB and FHLB stock are ultimately recoverable at par. Therefore, the carrying amount for these restricted equity investments approximates fair value. The Corporation classifies the estimated fair value of such investments as Level 1. The Corporation’s investment in FHLB stock totaled $138 million and $7 million at December 31, 2022 and 2021, and its investment in FRB stock totaled $85 million at both December 31, 2022 and 2021. Other real estate Other real estate is included in accrued income and other assets on the Consolidated Balance Sheets and includes primarily foreclosed property. Foreclosed property is initially recorded at fair value, less costs to sell, at the date of legal title transfer to the Corporation, establishing a new cost basis. Subsequently, foreclosed property is carried at the lower of cost or fair value, less costs to sell. Other real estate may be carried at fair value on a nonrecurring basis when fair value is less than cost. Fair value is based upon independent market prices, appraised value or management's estimate of the value of the property. When management determines that the fair value of other real estate requires additional adjustments, either as a result of a non-current appraisal or when there is no observable market price, the Corporation classifies the other real estate as Level 3. Deposit liabilities The estimated fair value of checking, savings and certain money market deposit accounts is represented by the amounts payable on demand. The estimated fair value of term deposits is calculated by discounting the scheduled cash flows using the period-end rates offered on these instruments. As such, the Corporation classifies the estimated fair value of deposit liabilities as Level 2. Short-term borrowings The carrying amount of federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings approximates the estimated fair value. As such, the Corporation classifies the estimated fair value of short-term borrowings as Level 1. Medium- and long-term debt The estimated fair value of the Corporation's medium- and long-term debt is based on quoted market values when available. If quoted market values are not available, the estimated fair value is based on the market values of debt with similar characteristics. The Corporation classifies the estimated fair value of medium- and long-term debt as Level 2. Credit-related financial instruments Credit-related financial instruments include unused commitments to extend credit and letters of credit. These instruments generate ongoing fees which are recognized over the term of the commitment. The carrying value of the deferred fees, which approximates fair value of these instruments, is included in accrued expenses and other liabilities on the Consolidated Balance Sheets. The Corporation classifies the estimated fair value of credit-related financial instruments as Level 3. For further information about fair value measurements refer to Note 2. |
Other Short-Term Investments | Other Short-Term Investments Other short-term investments include deferred compensation plan assets, certificates of deposits, equity securities with a readily determinable fair value and loans held-for-sale. Deferred compensation plan assets and equity securities are carried at fair value. Realized and unrealized gains or losses are included in other noninterest income on the Consolidated Statements of Income. Loans held-for-sale, typically residential mortgages originated with the intent to sell and occasionally including other loans transferred to held-for-sale, are carried at the lower of cost or fair value. Fair value is determined in the aggregate for each portfolio. Changes in fair value and gains or losses upon sale are included in other noninterest income on the Consolidated Statements of Income. |
Investment Securities | Investment Securities Debt securities are classified as trading, available-for-sale (AFS) or held-to-maturity. Trading securities are recorded at fair value, with unrealized gains and losses included in noninterest income on the Consolidated Statements of Income. AFS securities are recorded at fair value, with unrealized gains and losses, net of income taxes, reported as a separate component of other comprehensive income (OCI). Securities for which management has the intent and ability to hold to maturity are classified as held-to-maturity and recorded at amortized cost. Interest income is recognized using the interest method. All of the Corporation's investment securities are classified as AFS at December 31, 2022 and 2021. An AFS security is impaired if its fair value is less than amortized cost. Credit-related impairment is recognized as an allowance to investment securities available-for-sale on the Consolidated Balance Sheets with a corresponding adjustment to provision for credit losses on the Consolidated Statements of Income. Non-credit-related impairment is recognized as a component of OCI. If the Corporation intends to sell an impaired AFS security or more likely than not will be required to sell that security before recovering its amortized cost basis, the entire impairment amount is recognized in earnings with corresponding adjustment to the security's amortized cost basis. For certain types of AFS securities, such as U.S. Treasuries and other securities with government guarantees, the Corporation generally expects zero credit losses. The zero-loss expectation applies to all the Corporation’s securities and no allowance for credit losses was recorded on its AFS securities portfolio at December 31, 2022. Gains or losses on the sale of securities are computed based on the adjusted cost of the specific security sold. For further information on investment securities, refer to Note 3. |
Loans | Loans Loans and leases originated and held for investment are recorded at the principal balance outstanding, net of unearned income, charge-offs and unamortized deferred fees and costs. Interest income is recognized on loans and leases using the interest method. The Corporation assesses all loan modifications to determine whether a restructuring constitutes a troubled debt restructuring (TDR). A restructuring is considered a TDR when a borrower is experiencing financial difficulty and the Corporation grants a concession to the borrower. TDRs on accrual status at the original contractual rate of interest are considered performing. Nonperforming TDRs include TDRs on nonaccrual status and loans which have been renegotiated to less than the original contractual rates (reduced-rate loans). Certain types of modifications related to COVID-19 that were granted during 2020 and 2021 were excluded from TDR accounting. See Note 1 in the 2021 10-K for additional information. Effective January 1, 2020, the Corporation adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate |
Loan Origination Fees and Costs | Loan Origination Fees and Costs Substantially all loan origination fees and costs are deferred and amortized to net interest income over the life of the related loan or over the commitment period as a yield adjustment. Net deferred income on originated loans, including unearned income and unamortized costs, fees, premiums and discounts, totaled $118 million and $102 million at December 31, 2022 and 2021, respectively. Loan fees on unused commitments and net origination fees related to loans sold are recognized in noninterest income. |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses includes both the allowance for loan losses and the allowance for credit losses on lending-related commitments. The Corporation disaggregates the loan portfolio into segments for purposes of determining the allowance for credit losses. These segments are based on the level at which the Corporation develops, documents and applies a systematic methodology to determine the allowance for credit losses. The Corporation's portfolio segments are business loans and retail loans. Business loans include the commercial, real estate construction, commercial mortgage, lease financing and international loan portfolios. Retail loans consist of residential mortgage and consumer loans, including home equity loans. Current expected credit losses are estimated over the contractual life of the loan portfolio, considering all available relevant information, including historical and current conditions as well as reasonable and supportable forecasts of future events. Allowance for Loan Losses The allowance for loan losses is estimated on a quarterly basis and represents management’s estimates of current expected credit losses in the Corporation’s loan portfolio. Pools of loans with similar risk characteristics are collectively evaluated while loans that no longer share risk characteristics with loan pools are evaluated individually. Collective loss estimates are determined by applying loss factors, designed to estimate current expected credit losses, to amortized cost balances over the remaining contractual life of the collectively evaluated portfolio. Loans with similar risk characteristics are aggregated into homogeneous pools. Business loans are assigned to pools based primarily on business line and the Corporation’s internal risk rating system. For retail loans, pools are based on loan type, past due status and credit scores. Loss factors are based on estimated probability of default for each pool, set to a default horizon based on contractual life, and loss given default. Historical estimates are calibrated to economic forecasts over the reasonable and supportable forecast period based on the projected performance of specific economic variables that statistically correlate with each of the probability of default and loss given default pools. At least annually, management considers different models when estimating credit losses, selecting ones that most reasonably forecast credit losses in the relevant economic environment. The calculation of current expected credit losses is inherently subjective, as it requires management to exercise judgment in determining appropriate factors used to determine the allowance. Some of the most significant factors in the quantitative allowance estimate are assigning internal risk ratings to loans, selecting the economic forecasts used to calibrate the reserve factors and determining the reasonable and supportable forecast period. • Internal Risk Ratings : Loss factors are dependent on loan risk ratings for business loans. Risk ratings are assigned at origination, based on inherent credit risk, and updated based on new information that becomes available, periodic reviews of credit quality, a change in borrower performance or modifications to lending agreements. • Economic Forecasts: Management selects economic variables it believes to be most relevant based on the composition of the loan portfolio and customer base, including forecasted levels of employment, gross domestic product, corporate bond and treasury spreads, industrial production levels, consumer and commercial real estate price indices as well as housing statistics. Different economic forecast scenarios ranging from more benign to more severe are evaluated each reporting period to forecast losses over the contractual life of the loan portfolio. • Forecast Period : Economic forecasts are applied over the period management believes it can estimate reasonable and supportable forecasts. Forecast periods may be adjusted in response to changes in the economic environment. To estimate losses for contractual periods that extend beyond the forecast horizon, the Corporation reverts to an average historical loss experience. The Corporation typically forecasts economic variables over a two-year horizon, followed by an immediate reversion to an average historical loss experience that generally incorporates a full economic cycle. Management reviews this methodology on at least an annual basis. The allowance for loan losses also includes qualitative adjustments to bring the allowance to the level management believes is appropriate based on factors that have not otherwise been fully accounted for, including adjustments for foresight risk, input imprecision and model imprecision. Foresight risk reflects the inherent imprecision in forecasting economic variables, including determining the depth and duration of economic cycles and their impact to relevant economic variables. The Corporation may make qualitative adjustments based on its evaluation of different forecast scenarios and known recent events impacting relevant economic variables. Input imprecision factors address the risk that certain model inputs may not reflect all available information including (i) risk factors that have not been fully addressed in internal risk ratings, (ii) changes in lending policies and procedures, (iii) changes in the level and quality of experience held by lending management, (iv) imprecision in the risk rating system and (v) limitations in data available for certain loan portfolios. Model imprecision considers known model limitations and model updates not yet fully reflected in the quantitative estimate. The determination of the appropriate qualitative adjustment is based on management's analysis of current and expected economic conditions and their impact to the portfolio, as well as internal credit risk movements and a qualitative assessment of the lending environment, including underwriting standards. Management recognizes the sensitivity of various assumptions made in the quantitative modeling of expected losses and may adjust reserves depending upon the level of uncertainty that currently exists in one or more assumptions. Credit losses for loans that no longer share risk characteristics with the loan pools are estimated on an individual basis. Individual credit loss estimates are typically performed for nonaccrual loans and modified loans classified as TDRs and are based on one of several methods, including the estimated fair value of the underlying collateral, observable market value of similar debt or the present value of expected cash flows. The Corporation considers certain loans to be collateral-dependent if the borrower is experiencing financial difficulty and management expects repayment for the loan to be substantially through the operation or sale of the collateral. For collateral-dependent loans, loss estimates are based on the fair value of collateral, less estimated cost to sell (if applicable). Collateral values supporting individually evaluated loans are assessed quarterly and appraisals are typically obtained at least annually. The total allowance for loan losses is sufficient to absorb expected credit losses over the contractual life of the portfolio. Unanticipated events impacting the economy, including political instability or global events affecting the U.S. economy, could cause changes to expectations for current conditions and economic forecasts that result in an unanticipated increase in the allowance. Significant increases in current portfolio exposures or changes in credit characteristics could also increase the amount of the allowance. Such events, or others of similar nature, may result in the need for additional provision for credit losses in order to maintain an allowance that complies with credit risk and accounting policies. Loans deemed uncollectible are charged off and deducted from the allowance. Recoveries on loans previously charged off are added to the allowance. Credit losses are not estimated for accrued interest receivable as interest that is deemed uncollectible is written off through interest income. Allowance for Credit Losses on Lending-Related Commitments The allowance for credit losses on lending-related commitments estimates current expected credit losses on collective pools of letters of credit and unused commitments to extend credit based on reserve factors, determined in a manner similar to business loans, multiplied by a probability of draw estimate, based on historical experience and credit risk, applied to commitment amounts. The allowance for credit losses on lending-related commitments is included in accrued expenses and other liabilities on the Consolidated Balance Sheets, with the corresponding charge included in the provision for credit losses on the Consolidated Statements of Comprehensive Income. |
Nonperforming Assets | Nonperforming Assets Nonperforming assets consist of nonaccrual loans, reduced-rate loans and foreclosed property. A loan is considered past due when the contractually required principal or interest payment is not received by the specified due date or, for certain loans, when a scheduled monthly payment is past due and unpaid for 30 days or more. Business loans are generally placed on nonaccrual status when management determines full collection of principal or interest is unlikely or when principal or interest payments are 90 days past due, unless the loan is fully collateralized and in the process of collection. The past-due status of a business loan is one of many indicative factors considered in determining the collectibility of the credit. The primary driver of when the principal amount of a business loan should be fully or partially charged-off is based on a qualitative assessment of the recoverability of the principal amount from collateral and other cash flow sources. Residential mortgage and home equity loans are generally placed on nonaccrual status once they become 90 days past due and are charged off to current appraised values less costs to sell no later than 180 days past due. In addition, junior lien home equity loans less than 90 days past due are placed on nonaccrual status if they have underlying risk characteristics that place full collection of the loan in doubt, such as when the related senior lien position is identified as seriously delinquent. Residential mortgage and consumer loans in bankruptcy for which the court has discharged the borrower's obligation and the borrower has not reaffirmed the debt are placed on nonaccrual status and written down to estimated collateral value, without regard to the actual payment status of the loan, and are classified as TDRs. All other consumer loans are generally placed on nonaccrual status at 90 days past due and are charged off at no later than 120 days past due, or earlier if deemed uncollectible. At the time a loan is placed on nonaccrual status, interest previously accrued but not collected is charged against current income. Principal and interest payments received on such loans are generally first applied as a reduction of principal. Income on nonaccrual loans is then recognized only to the extent that cash is received after principal has been fully repaid or future collection of principal is probable. Generally, a loan may be returned to accrual status when all delinquent principal and interest have been received and the Corporation expects repayment of the remaining contractual principal and interest, or when the loan or debt security is both well secured and in the process of collection. Foreclosed property (primarily real estate) is initially recorded at fair value, less costs to sell, at the date of legal title transfer to the Corporation and subsequently carried at the lower of cost or fair value, less estimated costs to sell. Loans are reclassified to foreclosed property upon obtaining legal title to the collateral. Independent appraisals are obtained to substantiate the fair value of foreclosed property at the time of foreclosure and updated at least annually or upon evidence of deterioration in the property’s value. At the time of foreclosure, the adjustment for the difference between the related loan balance and fair value (less estimated costs to sell) of the property acquired is charged or credited to the allowance for loan losses. Subsequent write-downs, operating expenses and losses upon sale, if any, are charged to noninterest expenses. Foreclosed property is included in accrued income and other assets on the Consolidated Balance Sheets. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation, computed using the straight-line method, is charged to occupancy expenses in the Consolidated Statements of Income over the estimated useful lives of the assets. Estimated useful lives are generally 3 years to 33 years for premises that the Corporation owns and 3 years to 8 years for furniture and equipment. Leasehold improvements are generally amortized over the terms of their respective leases or 10 years, whichever is shorter. |
Operating Leases | Operating Leases Operating leases with a term greater than one year are recognized as lease liabilities, measured as the present value of unpaid lease payments for operating leases where the Corporation is the lessee, and corresponding right-of-use (ROU) assets for the right to use the leased properties. Operating lease liabilities, recorded in accrued expenses and other liabilities, reflect the Corporation’s obligation to make future lease payments, primarily for real estate locations. Lease terms typically comprise contractual terms but may include extension options reasonably certain of being exercised at lease inception for certain strategic locations such as regional headquarters. Payments are discounted using the Corporation's incremental borrowing rate, or the rate it would pay to borrow amounts equal to the lease payments over the lease term. The Corporation does not separate lease and non-lease components for contracts in which it is the lessee. ROU assets, recorded in accrued income and other assets, are measured based on lease liabilities adjusted for incentives as well as accrued and prepaid rent. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are recognized as incurred. Common area maintenance and other executory costs are the main components of variable lease payments. Operating and variable lease expenses are recorded in net occupancy expense on the Consolidated Statements of Income. |
Software | Software Capitalized software, stated at cost less accumulated amortization, includes purchased software and capitalizable application development costs associated with internally developed software and cloud computing arrangements, including capitalizable implementation costs associated with hosting arrangements that are service contracts. Cloud computing arrangements include software as a service (SaaS), platform as a service (PaaS), infrastructure as a service (IaaS) and other similar hosting arrangements. The Corporation primarily utilizes SaaS and IaaS arrangements. Capitalized implementation costs of hosting arrangements that are service contracts were $32 million at December 31, 2022, which included accumulated depreciation related to these costs of $3 million. Capitalized implementation costs of hosting arrangements that are service contracts were $21 million at December 31, 2021, which included accumulated depreciation related to these costs of $3 million. |
Goodwill and Core Deposit Intangibles | Goodwill and Core Deposit Intangibles Goodwill, included in accrued income and other assets on the Consolidated Balance Sheets, is initially recorded as the excess of the purchase price over the fair value of net assets acquired in a business combination and is subsequently evaluated at least annually for impairment. Goodwill impairment testing is performed at the reporting unit level, equivalent to a business segment or one level below. The Corporation has three reporting units: the Commercial Bank, the Retail Bank and Wealth Management. The Corporation performs its annual evaluation of goodwill impairment in the third quarter of each year and may elect to perform a quantitative impairment analysis or first conduct a qualitative analysis to determine if a quantitative analysis is necessary. Additionally, the Corporation evaluates goodwill impairment on an interim basis if events or changes in circumstances between annual tests indicate additional testing may be warranted to determine if goodwill might be impaired. Factors considered in the assessment of the likelihood of impairment include macroeconomic conditions, industry and market considerations, stock performance of the Corporation and its peers, financial performance of the reporting units, and previous results of goodwill impairment tests, amongst other factors. Based on the results of the qualitative analysis, the Corporation determines whether a quantitative test is necessary. The quantitative test compares the estimated fair value of identified reporting units with their carrying amount, including goodwill. If the estimated fair value of the reporting unit is less than the carrying value, an impairment charge would be recorded for the excess, not to exceed the amount of goodwill allocated to the reporting unit. Core deposit intangibles are amortized on an accelerated basis, based on the estimated period the economic benefits are expected to be received. Core deposit intangibles are reviewed for impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment for a finite-lived intangible asset exists if its carrying value exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Additional information regarding goodwill and core deposit intangibles can be found in Note 7. |
Nonmarketable Equity Securities | Nonmarketable Equity Securities The Corporation has certain investments that are not readily marketable. These investments include a portfolio of investments in indirect private equity and venture capital funds and restricted equity investments, which are securities the Corporation is required to hold for various reasons, primarily Federal Home Loan Bank of Dallas (FHLB) and Federal Reserve Bank (FRB) stock. These investments are accounted for on the cost or equity method and are included in accrued income and other assets on the Consolidated Balance Sheets. The investments are individually reviewed for impairment on a quarterly basis. Indirect private equity and venture capital funds are evaluated for impairment by comparing the carrying value to the estimated fair value. Impairment is charged to current earnings and the carrying value of the investment is written down accordingly. FHLB and FRB stock are recorded at cost (par value) and evaluated for impairment based on the ultimate recoverability of the par value. If the Corporation does not expect to recover the full par value, the amount by which the par value exceeds the ultimately recoverable value would be charged to current earnings and the carrying value of the investment would be written down accordingly. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Derivative instruments are carried at fair value in either accrued income and other assets or accrued expenses and other liabilities on the Consolidated Balance Sheets. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument is determined by whether it has been designated and qualifies as part of a hedging relationship and, further, by the type of hedging relationship. The Corporation presents derivative instruments at fair value on the Consolidated Balance Sheets on a net basis when a right of offset exists, based on transactions with a single counterparty and any cash collateral paid to and/or received from that counterparty for derivative contracts that are subject to legally enforceable master netting arrangements. For derivative instruments designated and qualifying as fair value hedges (i.e., hedging the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), the gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in the same consolidated statement of income line that is used to present the earnings effect of the hedged item during the period of the change in fair values. For derivative instruments that are designated and qualify as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same consolidated statement of income line item as the earnings effect of the hedged item in the same period or periods during which the hedged transaction affects earnings. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. To qualify for the use of hedge accounting, a derivative must be effective at inception and expected to be continuously effective in offsetting the risk being hedged. For derivatives designated as hedging instruments at inception, the Corporation uses either the short-cut method or applies statistical regression analysis to assess effectiveness. The short-cut method is used for $2.6 billion of notional of fair value hedges of medium- and long-term debt. This method allows for the assumption of perfect effectiveness and eliminates the requirement to further assess hedge effectiveness on these transactions. For hedge relationships to which the Corporation does not apply the short-cut method, statistical regression analysis is used at inception to assess whether the derivative used is expected to be highly effective in offsetting changes in the fair value or cash flows of the hedged item. A statistical regression or qualitative analysis is performed at each reporting period thereafter to evaluate hedge effectiveness. Topic 848 provided optional provisions to minimize the impact of reference rate reform to qualifying fair value and cash flow hedging relationships by allowing certain hedge accounting requirements to be suspended during the transition period. The Corporation has elected various provisions to transition its hedging relationships away from LIBOR. For further information on Topic 848, refer to the "Loans" policy in this Note. Further information on the Corporation’s derivative instruments and hedging activities is included in Note 8. |
Short-Term Borrowings | Short-Term Borrowings Securities sold under agreements to repurchase are treated as collateralized borrowings and are recorded at amounts equal to the cash received. The contractual terms of the agreements to repurchase may require the Corporation to provide additional collateral if the fair value of the securities underlying the borrowings declines during the term of the agreement. |
Financial Guarantees | Financial Guarantees Certain guarantee contracts or indemnification agreements that contingently require the Corporation, as guarantor, to make payments to the guaranteed party are initially measured at fair value and included in accrued expenses and other liabilities on the Consolidated Balance Sheets. The subsequent accounting for the liability depends on the nature of the underlying guarantee. The release from risk is accounted for under a particular guarantee when the guarantee expires or is settled, or by a systematic and rational amortization method. Further information on the Corporation’s obligations under guarantees is included in Note 8. |
Share-Based Compensation | Share-Based Compensation The Corporation recognizes share-based compensation expense using the straight-line method over the requisite service period for all stock awards, including those with graded vesting. The requisite service period is the period an employee is required to provide service in order to vest in the award, which cannot extend beyond the date at which the employee is no longer required to perform any service to receive the share-based compensation (i.e., the retirement-eligible date). Forfeiture of stock awards and dividend equivalents are accounted for as they occur. Certain awards are contingent upon performance and/or market conditions, which affect the number of shares ultimately issued. The Corporation periodically evaluates the probable outcome of the performance conditions and makes cumulative adjustments to compensation expense as appropriate. Market conditions are included in the determination of the fair value of the award on the date of grant. Subsequent to the grant date, market conditions have no impact on the amount of compensation expense the Corporation will recognize over the life of the award. Further information on the Corporation’s share-based compensation plans is included in Note 16. |
Revenue Recognition | Revenue Recognition Revenue from contracts with customers comprises the noninterest income earned by the Corporation in exchange for services provided to customers and is recognized when services are completed or as they are rendered, although contracts are generally short-term by nature. Services provided over a period of time are typically transferred to customers evenly over the term of the contracts and revenue is recognized accordingly over the period services are provided. Contract receivables are included in accrued income and other assets on the Consolidated Balance Sheets. Payment terms vary by services offered, and the time between completion of performance obligations and payment is typically not significant. Card Fees Card fees comprise interchange and other fee income earned on government card, commercial card, debit/automated teller machine card and merchant payment processing programs. Card fees are presented net of network costs, as performance obligations for card services are limited to transaction processing and settlement with the card network on behalf of the customers. Fees for these services are primarily based on interchange rates set by the network and transaction volume. The Corporation also provides ongoing card program support services, for which fees are based on contractually agreed-upon prices and customer demand for services. Service Charges on Deposit Accounts Service charges on deposit accounts comprise charges on retail and business accounts, including fees for treasury management services. Treasury management services include transaction-based services related to payment processing, overdrafts, non-sufficient funds and other deposit account activity, as well as account management services that are provided over time. Business customers can earn credits depending on deposit balances maintained with the Corporation, which may be used to offset fees. Fees and credits are based on predetermined, agreed-upon rates. Fiduciary Income Fiduciary income includes fees and commissions from asset management, custody, recordkeeping, investment advisory and other services provided primarily to personal and institutional trust customers. Revenue is recognized as the services are performed and is based either on the market value of the assets managed or the services provided, as well as agreed-upon rates. Commercial Lending Fees Commercial lending fees include both revenue from contracts with customers (primarily loan servicing fees) and other sources of revenue. Commercial loan servicing fees are based on contractually agreed-upon prices and when the services are provided. Other sources of revenue in commercial lending fees primarily include fees assessed on the unused portion of commercial lines of credit (unused commitment fees) and syndication arrangements. Brokerage Fees Brokerage fees are commissions earned for facilitating securities transactions for customers, as well as other brokerage services provided. Revenue is recognized when services are completed and is based on the type of services provided and agreed-upon rates. The Corporation pays commissions based on brokerage fee revenue. These are typically recognized when incurred because the amortization period is one year or less and are included in salaries and benefits expense on the Consolidated Statements of Income. Other Revenues Other revenues, consisting primarily of other retail fees, investment banking fees and insurance commissions, are typically recognized when services or transactions are completed and are based on the type of services provided and agreed-upon rates. Except as discussed above, commissions and other incentives paid to employees are generally based on several internal and external metrics and, as a result, are not solely dependent on revenue generating activities. |
Defined Benefit Pension and Other Postretirement Costs | Defined Benefit Pension and Other Postretirement Costs Defined benefit pension costs are funded consistent with the requirements of federal laws and regulations. Inherent in the determination of defined benefit pension costs are assumptions concerning future events that will affect the amount and timing of required benefit payments under the plans. These include demographic assumptions such as retirement age and mortality, a compensation rate increase, a discount rate used to determine the current benefit obligation, form of payment election and a long-term expected rate of return on plan assets. Net periodic defined benefit pension expense includes service cost, interest cost based on the assumed discount rate, an expected return on plan assets based on an actuarially derived market-related value of assets (MRVA), amortization of prior service cost or credit and amortization of net actuarial gains or losses. The MRVA for fixed income securities and private placement assets is based on the fair value of plan assets, whereas the MRVA for other plan assets is determined by amortizing the current year’s investment gains and losses (the actual investment return net of the expected investment return) over 5 years. The amortization adjustment cannot exceed 10 percent of the fair value of assets. Prior service costs or credits include the impact of plan amendments on the liabilities and are amortized over the future service periods of active employees expected to receive benefits under the plan. Actuarial gains and losses result from experience different from that assumed and from changes in assumptions (excluding asset gains and losses not yet reflected in market-related value). Amortization of actuarial gains and losses is included as a component of net periodic defined benefit pension cost for a year if the actuarial net gain or loss exceeds 10 percent of the greater of the projected benefit obligation or the market-related value of plan assets. If amortization is required, the excess is amortized over the average remaining service period of participating employees expected to receive benefits under the plan. Service costs are included in salaries and benefits expense, while the other components of net periodic defined benefit pension expense are included in other noninterest expenses on the Consolidated Statements of Income. Postretirement benefit costs includes service cost, interest cost based on the assumed discount rate, an expected return on plan assets based on an actuarially derived MRVA, amortization of prior service cost or credit and amortization of net actuarial gains or losses. The components of postretirement benefit costs follow similar policies and methodologies as defined benefit pensions costs. Postretirement benefits are recognized in other noninterest expenses on the Consolidated Statements of Income. See Note 17 for further information regarding the Corporation’s defined benefit pension and other postretirement plans. |
Income Taxes | Income Taxes The provision for income taxes is the sum of income taxes due for the current year and deferred taxes. The Corporation classifies interest and penalties on income tax liabilities and excess tax benefits and deficiencies resulting from employee stock awards in the provision for income taxes on the Consolidated Statements of Income. Deferred taxes arise from temporary differences between the income tax basis and financial accounting basis of assets and liabilities. Deferred tax assets are evaluated for realization based on available evidence of projected future reversals of existing taxable temporary differences, foreign tax credit limitations, assumptions made regarding future events and, when applicable, state loss carryback capacity. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. |
Earnings Per Share | Earnings Per Share Basic net income per common share is calculated using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared (distributed earnings) and participation rights in undistributed earnings. Distributed and undistributed earnings are allocated between common and participating security shareholders based on their respective rights to receive dividends. Nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are considered participating securities (e.g., certain service-based restricted stock units). Undistributed net losses are not allocated to nonvested restricted shareholders, as these shareholders do not have a contractual obligation to fund the losses incurred by the Corporation. Net income attributable to common shares is then divided by the weighted-average number of common shares outstanding during the period. Diluted net income per common share is calculated using the more dilutive of either the treasury method or the two-class method. The dilutive calculation considers common stock issuable under the assumed exercise of stock options and warrants, as well as service- and performance-based restricted stock units granted under the Corporation’s stock plans using the treasury stock method, if dilutive. Net income attributable to common shares is then divided by the total of weighted-average number of common shares and common stock equivalents outstanding during the period. |
Statements Of Cash Flows | Statements of Cash FlowsCash and cash equivalents are defined as those amounts included in cash and due from banks and interest-bearing deposits with banks on the Consolidated Balance Sheets. |
Comprehensive (Loss) Income | Comprehensive (Loss) IncomeThe Corporation presents on an annual basis the components of net income and other comprehensive income in two separate, but consecutive statements and presents on an interim basis the components of net income and a total for comprehensive income in one continuous consolidated statement of comprehensive income. |
Pending Accounting Pronouncements | Pending Accounting Pronouncements In March 2022, the FASB issued ASU No. 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures" (ASU 2022-02), which eliminates the accounting for troubled debt restructurings (TDR) while expanding modification and vintage disclosure requirements. The update requires additional disclosures on the nature, magnitude and subsequent performance of certain types of modifications with borrowers experiencing financial difficulties. ASU 2022-02 further included a requirement to disclose gross charge-offs incurred by year of origination of the related loan or lease. The standard update is effective for the Corporation on January 1, 2023, and must be applied prospectively, except that the recognition and measurement of TDRs may be applied using a modified retrospective approach. Early adoption is permitted. The Corporation adopted ASU 2022-02 prospectively on January 1, 2023 and will update its disclosures in the first quarter of 2023. The update is not expected to have a material impact to the Corporation's financial condition or results of operations upon adoption. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets And Liabilities Recorded At Fair Value On A Recurring Basis | The following tables present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2021. (in millions) Total Level 1 Level 2 Level 3 December 31, 2022 Deferred compensation plan assets $ 92 $ 92 $ — $ — Equity securities 44 44 — — Investment securities available-for-sale: U.S. Treasury securities 2,664 2,664 — — Residential mortgage-backed securities (a) 11,655 — 11,655 — Commercial mortgage-backed securities (a) 4,693 — 4,693 — Total investment securities available-for-sale 19,012 2,664 16,348 — Derivative assets: Interest rate contracts 206 — 206 — Energy contracts 1,020 — 1,020 — Foreign exchange contracts 53 — 53 — Total derivative assets 1,279 — 1,279 — Total assets at fair value $ 20,427 $ 2,800 $ 17,627 $ — Derivative liabilities: Interest rate contracts $ 644 $ — $ 644 $ — Energy contracts 1,006 — 1,006 — Foreign exchange contracts 45 — 45 — Other financial derivative 12 — — 12 Total derivative liabilities 1,707 — 1,695 12 Deferred compensation plan liabilities 92 92 — — Total liabilities at fair value $ 1,799 $ 92 $ 1,695 $ 12 December 31, 2021 Deferred compensation plan assets $ 113 $ 113 $ — $ — Equity securities 62 62 — — Investment securities available-for-sale: U.S. Treasury securities 2,993 2,993 — — Residential mortgage-backed securities (a) 13,288 — 13,288 — Commercial mortgage-backed securities (a) 705 — 705 — Total investment securities available-for-sale 16,986 2,993 13,993 — Derivative assets: Interest rate contracts 239 — 213 26 Energy contracts 670 — 670 — Foreign exchange contracts 19 — 19 — Total derivative assets 928 — 902 26 Total assets at fair value $ 18,089 $ 3,168 $ 14,895 $ 26 Derivative liabilities: Interest rate contracts $ 69 $ — $ 69 $ — Energy contracts 662 — 662 — Foreign exchange contracts 16 — 16 — Other financial derivative 13 — — 13 Total derivative liabilities 760 — 747 13 Deferred compensation plan liabilities 113 113 — — Total liabilities at fair value $ 873 $ 113 $ 747 $ 13 (a) Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2022 and 2021. Net Realized/Unrealized Gains (Losses) (Pretax) Recorded in Earnings (a) Balance at Beginning of Period Settlements Balance at End of Period (in millions) Realized Unrealized Year Ended December 31, 2022 Derivative assets: Interest rate contracts $ 26 $ — $ — $ (26) $ — Derivative liabilities: Other financial derivative (13) — 1 — (12) Year Ended December 31, 2021 Derivative assets: Interest rate contracts $ 39 — $ (13) — $ 26 Derivative liabilities: Other financial derivative (11) — (2) — (13) (a) Realized and unrealized gains and losses due to changes in fair value recorded in other noninterest income on the Consolidated Statements of Income. |
Assets And Liabilities Recorded At Fair Value On A Nonrecurring Basis | The following table presents assets recorded at fair value on a nonrecurring basis at December 31, 2022 and 2021. No liabilities were recorded at fair value on a nonrecurring basis at December 31, 2022 and 2021. (in millions) Level 3 December 31, 2022 Loans: Commercial $ 53 Real estate construction 2 Commercial mortgage 11 Total loans $ 66 Other real estate 9 Total assets at fair value $ 75 December 31, 2021 Loans: Commercial $ 125 Real estate construction 4 Commercial mortgage 17 International 4 Total assets at fair value $ 150 |
Estimated Fair Values Of Financial Instruments Not Recorded At Fair Value In Their Entirety On A Recurring Basis | The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis on the Corporation’s Consolidated Balance Sheets are as follows: Carrying Estimated Fair Value (in millions) Total Level 1 Level 2 Level 3 December 31, 2022 Assets Cash and due from banks $ 1,758 $ 1,758 $ 1,758 $ — $ — Interest-bearing deposits with banks 4,524 4,524 4,524 — — Other short-term investments 19 19 19 — — Loans held-for-sale 2 2 — 2 — Total loans, net of allowance for loan losses (a) 52,792 50,964 — — 50,964 Customers’ liability on acceptances outstanding 3 3 3 — — Restricted equity investments 223 223 223 — — Nonmarketable equity securities (b) 5 12 Liabilities Demand deposits (noninterest-bearing) 39,945 39,945 — 39,945 — Interest-bearing deposits 29,566 29,566 — 29,566 — Customer certificates of deposit 1,762 1,719 — 1,719 — Other time deposits 124 124 — 124 — Total deposits 71,397 71,354 — 71,354 — Short-term borrowings 3,211 3,211 3,211 — — Acceptances outstanding 3 3 3 — — Medium- and long-term debt 3,024 3,071 — 3,071 — Credit-related financial instruments (79) (79) — — (79) December 31, 2021 Assets Cash and due from banks $ 1,236 $ 1,236 $ 1,236 $ — $ — Interest-bearing deposits with banks 21,443 21,443 21,443 — — Other short-term investments 16 16 16 — — Loans held-for-sale 6 6 — 6 — Total loans, net of allowance for loan losses (a) 48,697 49,127 — — 49,127 Customers’ liability on acceptances outstanding 5 5 5 — — Restricted equity investments 92 92 92 — — Nonmarketable equity securities (b) 5 10 Liabilities Demand deposits (noninterest-bearing) 45,800 45,800 — 45,800 — Interest-bearing deposits 34,566 34,566 — 34,566 — Customer certificates of deposit 1,973 1,968 — 1,968 — Total deposits 82,339 82,334 — 82,334 — Acceptances outstanding 5 5 5 — — Medium- and long-term debt 2,796 2,854 — 2,854 — Credit-related financial instruments (59) (59) — — (59) (a) Included $66 million and $150 million of loans recorded at fair value on a nonrecurring basis at December 31, 2022 and 2021, respectively. (b) Certain investments that are measured at fair value using the net asset value have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary Of Investment Securities | A summary of the Corporation’s investment securities follows: (in millions) Amortized Gross Gross Fair Value December 31, 2022 Investment securities available-for-sale: U.S. Treasury securities $ 2,810 $ — $ 146 $ 2,664 Residential mortgage-backed securities (a) 13,983 — 2,328 11,655 Commercial mortgage-backed securities (a) 5,252 — 559 4,693 Total investment securities available-for-sale $ 22,045 $ — $ 3,033 $ 19,012 December 31, 2021 Investment securities available-for-sale: U.S. Treasury securities $ 3,010 $ 22 $ 39 $ 2,993 Residential mortgage-backed securities (a) 13,397 67 176 13,288 Commercial mortgage-backed securities (a) 709 2 6 705 Total investment securities available-for-sale $ 17,116 $ 91 $ 221 $ 16,986 (a) Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Summary Of Investment Securities In Unrealized Loss Positions | A summary of the Corporation’s investment securities in an unrealized loss position as of December 31, 2022 and 2021 follows: Less than 12 Months 12 Months or more Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2022 U.S. Treasury securities $ 996 $ 5 $ 1,668 $ 141 $ 2,664 $ 146 Residential mortgage-backed securities (a) 3,500 361 8,153 1,967 11,653 2,328 Commercial mortgage-backed securities (a) 4,008 405 685 154 4,693 559 Total temporarily impaired securities $ 8,504 $ 771 $ 10,506 $ 2,262 $ 19,010 $ 3,033 December 31, 2021 U.S. Treasury securities $ 465 $ 6 $ 1,334 $ 33 $ 1,799 $ 39 Residential mortgage-backed securities (a) 7,197 128 1,128 48 8,325 176 Commercial mortgage-backed securities (a) 346 6 — — 346 6 Total temporarily impaired securities $ 8,008 $ 140 $ 2,462 $ 81 $ 10,470 $ 221 (a) Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Contractual Maturity Distribution Of Debt Securities | The following table summarizes the amortized cost and fair values of investment securities by contractual maturity. Securities with multiple maturity dates are classified in the period of final maturity. The actual cash flows of mortgage-backed securities may differ as borrowers of the underlying loans may exercise prepayment options. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (in millions) December 31, 2022 Amortized Cost Fair Value Contractual maturity Within one year $ 1,103 $ 1,093 After one year through five years 1,943 1,797 After five years through ten years 5,518 4,946 After ten years 13,481 11,176 Total investment securities $ 22,045 $ 19,012 |
Credit Quality And Allowance _2
Credit Quality And Allowance For Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Credit Quality And Allowance For Credit Losses [Abstract] | |
Aging Analysis Of Loans | The following table presents an aging analysis of the amortized cost basis of loans. Loans Past Due and Still Accruing (in millions) 30-59 60-89 90 Days Total Nonaccrual Current Total December 31, 2022 Business loans: Commercial $ 238 $ 13 $ 20 $ 271 $ 142 $ 30,496 $ 30,909 Real estate construction: Commercial Real Estate business line (b) — — — — — 2,505 2,505 Other business lines (c) 2 — — 2 3 595 600 Total real estate construction 2 — — 2 3 3,100 3,105 Commercial mortgage: Commercial Real Estate business line (b) — 6 — 6 1 4,674 4,681 Other business lines (c) 64 5 3 72 22 8,531 8,625 Total commercial mortgage 64 11 3 78 23 13,205 13,306 Lease financing 6 — — 6 — 754 760 International — 9 — 9 3 1,185 1,197 Total business loans 310 33 23 366 171 48,740 49,277 Retail loans: Residential mortgage 22 — — 22 53 1,739 1,814 Consumer: Home equity 4 3 — 7 15 1,754 1,776 Other consumer 5 1 — 6 1 528 535 Total consumer 9 4 — 13 16 2,282 2,311 Total retail loans 31 4 — 35 69 4,021 4,125 Total loans $ 341 $ 37 $ 23 $ 401 $ 240 $ 52,761 $ 53,402 December 31, 2021 Business loans: Commercial $ 35 $ 18 $ 6 $ 59 $ 173 $ 29,134 $ 29,366 Real estate construction: Commercial Real Estate business line (b) — — — — — 2,391 2,391 Other business lines (c) 15 1 — 16 6 535 557 Total real estate construction 15 1 — 16 6 2,926 2,948 Commercial mortgage: Commercial Real Estate business line (b) — — — — 1 3,337 3,338 Other business lines (c) 18 4 16 38 31 7,848 7,917 Total commercial mortgage 18 4 16 38 32 11,185 11,255 Lease financing 5 — — 5 — 635 640 International 5 8 1 14 5 1,189 1,208 Total business loans 78 31 23 132 216 45,069 45,417 Retail loans: Residential mortgage 4 — — 4 36 1,731 1,771 Consumer: Home equity 4 3 — 7 12 1,514 1,533 Other consumer 32 1 4 37 — 527 564 Total consumer 36 4 4 44 12 2,041 2,097 Total retail loans 40 4 4 48 48 3,772 3,868 Total loans $ 118 $ 35 $ 27 $ 180 $ 264 $ 48,841 $ 49,285 (a) Includes $22 million of loans with deferred payments not considered past due in accordance with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) at December 31, 2021. (b) Primarily loans to real estate developers. (c) Primarily loans secured by owner-occupied real estate. |
Loans By Credit Quality Indicator and Vintage Year | The following table presents loans by credit quality indicator (CQI) and vintage year. CQI is based on internal risk ratings assigned to each business loan at the time of approval and subjected to subsequent reviews, generally at least annually, and to pools of retail loans with similar risk characteristics. Vintage year is the year of origination or major modification. December 31, 2022 Vintage Year (in millions) 2022 2021 2020 2019 2018 Prior Revolvers Revolvers Converted to Term Total Business loans: Commercial: Pass (a) $ 3,946 (b) $ 3,509 (b) $ 917 (b) $ 1,041 $ 598 $ 1,030 $ 18,604 $ 9 $ 29,654 Criticized (c) 75 274 81 69 45 78 632 1 1,255 Total commercial 4,021 3,783 998 1,110 643 1,108 19,236 10 30,909 Real estate construction Pass (a) 836 1,134 633 162 102 28 207 — 3,102 Criticized (c) — — 3 — — — — — 3 Total real estate construction 836 1,134 636 162 102 28 207 — 3,105 Commercial mortgage Pass (a) 3,349 2,501 1,825 1,394 1,050 2,182 838 — 13,139 Criticized (c) 7 5 7 32 31 75 10 — 167 Total commercial mortgage 3,356 2,506 1,832 1,426 1,081 2,257 848 — 13,306 Lease financing Pass (a) 316 140 64 47 37 130 — — 734 Criticized (c) 10 — 2 8 5 1 — — 26 Total lease financing 326 140 66 55 42 131 — — 760 International Pass (a) 317 161 55 88 19 14 498 — 1,152 Criticized (c) 12 — 3 — 3 10 17 — 45 Total international 329 161 58 88 22 24 515 — 1,197 Total business loans 8,868 7,724 3,590 2,841 1,890 3,548 20,806 10 49,277 Retail loans: Residential mortgage Pass (a) 327 398 480 133 68 355 — — 1,761 Criticized (c) 4 — — 9 1 39 — — 53 Total residential mortgage 331 398 480 142 69 394 — — 1,814 Consumer: Home equity Pass (a) — — — — — 9 1,708 40 1,757 Criticized (c) — — — — — — 17 2 19 Total home equity — — — — — 9 1,725 42 1,776 Other consumer Pass (a) 69 38 50 8 1 10 355 — 531 Criticized (c) — — — 1 — — 3 — 4 Total other consumer 69 38 50 9 1 10 358 — 535 Total consumer 69 38 50 9 1 19 2,083 42 2,311 Total retail loans 400 436 530 151 70 413 2,083 42 4,125 Total loans $ 9,268 $ 8,160 $ 4,120 $ 2,992 $ 1,960 $ 3,961 $ 22,889 $ 52 $ 53,402 Table continues on the following page. December 31, 2021 Vintage Year 2021 2020 2019 2018 2017 Prior Revolvers Revolvers Converted to Term Total Business loans: Commercial: Pass (a) $ 5,270 (b) $ 1,740 (b) $ 1,528 $ 947 $ 713 $ 763 $ 17,241 $ 10 $ 28,212 Criticized (c) 101 120 105 86 26 94 620 2 1,154 Total commercial 5,371 1,860 1,633 1,033 739 857 17,861 12 29,366 Real estate construction: Pass (a) 458 858 849 424 158 34 132 — 2,913 Criticized (c) — 3 — 13 8 8 3 — 35 Total real estate construction 458 861 849 437 166 42 135 — 2,948 Commercial mortgage: Pass (a) 2,491 1,932 1,444 1,343 1,018 2,298 481 — 11,007 Criticized (c) 17 44 50 22 23 87 5 — 248 Total commercial mortgage 2,508 1,976 1,494 1,365 1,041 2,385 486 — 11,255 Lease financing Pass (a) 166 88 97 50 38 179 — — 618 Criticized (c) — 2 10 8 1 1 — — 22 Total lease financing 166 90 107 58 39 180 — — 640 International Pass (a) 381 141 103 29 1 16 480 — 1,151 Criticized (c) 20 10 3 5 4 8 7 — 57 Total international 401 151 106 34 5 24 487 — 1,208 Total business loans 8,904 4,938 4,189 2,927 1,990 3,488 18,969 12 45,417 Retail loans: Residential mortgage Pass (a) 443 527 164 83 111 407 — — 1,735 Criticized (c) 5 — 1 2 7 21 — — 36 Total residential mortgage 448 527 165 85 118 428 — — 1,771 Consumer: Home equity Pass (a) — — — — — 11 1,460 45 1,516 Criticized (c) — — — — — 1 12 4 17 Total home equity — — — — — 12 1,472 49 1,533 Other consumer Pass (a) 101 68 13 9 1 31 337 — 560 Criticized (c) — — — — — — 4 — 4 Total other consumer 101 68 13 9 1 31 341 — 564 Total consumer 101 68 13 9 1 43 1,813 49 2,097 Total retail loans 549 595 178 94 119 471 1,813 49 3,868 Total loans $ 9,453 $ 5,533 $ 4,367 $ 3,021 $ 2,109 $ 3,959 $ 20,782 $ 61 $ 49,285 (a) Includes all loans not included in the categories of special mention, substandard or nonaccrual. (b) Includes Small Business Administration Paycheck Protection Program (PPP) loans of $35 million and $459 million at December 31, 2022 and 2021, respectively. (c) Includes loans with an internal rating of special mention, substandard loans for which the accrual of interest has not been discontinued and nonaccrual loans. Special mention loans have potential credit weaknesses that deserve management’s close attention, such as loans to borrowers who may be experiencing financial difficulties that may result in deterioration of repayment prospects from the borrower at some future date. Accruing substandard loans have a well-defined weakness, or weaknesses, such as loans to borrowers who may be experiencing losses from operations or inadequate liquidity of a degree and duration that jeopardizes the orderly repayment of the loan. Substandard loans are also distinguished by the distinct possibility of loss in the future if these weaknesses are not corrected. Nonaccrual loans are loans for which the accrual of interest has been discontinued. For further information regarding nonaccrual loans, refer to the Nonperforming Assets subheading in Note 1 - Basis of Presentation and Accounting Policies. These categories are generally consistent with the "special mention" and "substandard" categories as defined by regulatory authorities. A minority of nonaccrual loans are consistent with the "doubtful" category. |
Changes In The Allowance For Loan Losses | The following table details the changes in the allowance for credit losses. 2022 2021 2020 (in millions) Business Loans Retail Loans Total Business Loans Retail Loans Total Business Loans Retail Loans Total Years Ended December 31, Balance at beginning of period: Allowance for loan losses $ 531 $ 57 $ 588 $ 895 $ 53 $ 948 $ 601 $ 36 $ 637 Allowance for credit losses on lending-related commitments 24 6 30 35 9 44 28 3 31 Allowance for credit losses 555 63 618 930 62 992 629 39 668 Cumulative effect of change in accounting principle — — — — — — (42) 25 (17) Loan charge-offs (65) (3) (68) (67) (3) (70) (233) (5) (238) Recoveries on loans previously charged-off 47 4 51 76 4 80 38 4 42 Net loan (charge-offs) recoveries (18) 1 (17) 9 1 10 (195) (1) (196) Provision for credit losses: Provision for loan losses 28 11 39 (373) 3 (370) 531 (7) 524 Provision for credit losses on lending-related commitments 16 5 21 (11) (3) (14) 7 6 13 Provision for credit losses 44 16 60 (384) — (384) 538 (1) 537 Balance at end of period: Allowance for loan losses 541 69 610 531 57 588 895 53 948 Allowance for credit losses on lending-related commitments 40 11 51 24 6 30 35 9 44 Allowance for credit losses $ 581 $ 80 $ 661 $ 555 $ 63 $ 618 $ 930 $ 62 $ 992 Allowance for loan losses as a percentage of total loans 1.10 % 1.67 % 1.14 % 1.17 % 1.47 % 1.19 % 1.85 % 1.32 % 1.81 % Allowance for credit losses as a percentage of total loans 1.18 1.96 1.24 1.22 1.63 1.26 1.93 1.55 1.90 |
Nonaccrual Loans | The following table presents additional information regarding nonaccrual loans. Interest income of $12 million, $11 million and $7 million was recognized on nonaccrual loans for the years ended December 31, 2022, 2021 and 2020, respectively. (in millions) Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total December 31, 2022 Business loans: Commercial $ 64 $ 78 $ 142 Real estate construction: Other business lines (a) — 3 3 Commercial mortgage: Commercial Real Estate business line (b) — 1 1 Other business lines (a) 4 18 22 Total commercial mortgage 4 19 23 International 3 — 3 Total business loans 71 100 171 Retail loans: Residential mortgage 53 — 53 Consumer: Home equity 15 — 15 Other consumer 1 — 1 Total consumer 16 — 16 Total retail loans 69 — 69 Total nonaccrual loans $ 140 $ 100 $ 240 December 31, 2021 Business loans: Commercial $ 8 $ 165 $ 173 Real estate construction: Other business lines (a) — 6 6 Commercial mortgage: Commercial Real Estate business line (b) — 1 1 Other business lines (a) 4 27 31 Total commercial mortgage 4 28 32 International — 5 5 Total business loans 12 204 216 Retail loans: Residential mortgage 36 — 36 Consumer: Home equity 12 — 12 Total retail loans 48 — 48 Total nonaccrual loans $ 60 $ 204 $ 264 (a) Primarily loans secured by owner-occupied real estate. (b) Primarily loans to real estate developers. |
Troubled Debt Restructurings By Type Of Modification | The following table details the amortized cost basis at December 31, 2022 and 2021 of loans considered to be TDRs that were restructured during the years ended December 31, 2022 and 2021, by type of modification. In cases of loans with more than one type of modification, the loans were categorized based on the most significant modification. 2022 2021 (a) Type of Modification Type of Modification (in millions) Principal Deferrals (b) Interest Rate Reductions Total Modifications Principal Deferrals (b) Interest Rate Reductions Total Modifications Years Ended December 31, Business loans: Commercial $ 26 $ — $ 26 $ 8 $ — $ 8 Real estate construction: Other business lines (c) 3 — 3 — — — Commercial mortgage: Other business lines (c) 14 — 14 — — — Total business loans 43 — 43 8 — 8 Retail loans: Residential mortgage — 27 27 — — — Consumer: Home equity (d) 1 1 2 — 2 2 Other consumer — 1 1 — — — Total consumer 1 2 3 — 2 2 Total retail loans 1 29 30 — 2 2 Total loans $ 44 $ 29 $ 73 $ 8 $ 2 $ 10 (a) Under the provisions of the CARES Act, qualifying COVID-19-related modifications, primarily principal deferrals, were not considered TDRs during the year ended December 31, 2021. (b) Primarily represents loan balances where terms were extended by more than an insignificant time period, typically more than 180 days, at or above contractual interest rates. Also includes commercial loans restructured in bankruptcy. (c) Primarily loans secured by owner-occupied real estate. (d) Includes bankruptcy loans for which the court has discharged the borrower's obligation and the borrower has not reaffirmed the debt. |
Significant Group Concentrati_2
Significant Group Concentrations of Credit Risk Significant Group Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Group Concentrations of Credit Risk [Abstract] | |
Schedule of Commercial Real Estate Loans and Unused Commitments | The following table summarizes the Corporation's commercial real estate loan portfolio by loan category. (in millions) December 31 2022 2021 Real estate construction loans: Commercial Real Estate business line (a) $ 2,505 $ 2,391 Other business lines (b) 600 557 Total real estate construction loans 3,105 2,948 Commercial mortgage loans: Commercial Real Estate business line (a) 4,681 3,338 Other business lines (b) 8,625 7,917 Total commercial mortgage loans 13,306 11,255 Total commercial real estate loans $ 16,411 $ 14,203 Total unused commitments on commercial real estate loans $ 6,602 $ 4,030 (a) Primarily loans to real estate developers. (b) Primarily loans secured by owner-occupied real estate. |
Schedule of Automotive Industry Outstanding Loans and Total Exposure | Outstanding loans, included in commercial loans on the Consolidated Balance Sheets, and total exposure (outstanding loans, unused commitments and standby letters of credit) to companies related to the automotive industry were as follows: (in millions) December 31 2022 2021 Automotive loans: Production $ 1,068 $ 1,112 (a) Dealer 5,367 4,162 Total automotive loans $ 6,435 $ 5,274 Total automotive exposure: Production $ 2,028 $ 2,041 (a) Dealer 10,910 10,665 Total automotive exposure $ 12,938 $ 12,706 (a) Excludes PPP loans. |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Premises and Equipments [Abstract] | |
Premises and Equipment | A summary of premises and equipment by major category follows: (in millions) December 31 2022 2021 Land $ 81 $ 85 Buildings and improvements 737 852 Furniture and equipment 518 516 Total cost 1,336 1,453 Less: Accumulated depreciation and amortization (936) (999) Net book value $ 400 $ 454 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Value of Goodwill | The following table summarizes the carrying value of goodwill by reporting unit for the years ended December 31, 2022 and 2021. (in millions) December 31 2022 2021 Commercial Bank $ 473 $ 473 Retail Bank 101 101 Wealth Management 61 61 Total $ 635 $ 635 |
Derivative And Credit-Related_2
Derivative And Credit-Related Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivative Instruments | The following table presents the composition of the Corporation’s derivative instruments held or issued for risk management purposes or in connection with customer-initiated and other activities at December 31, 2022 and 2021. The table excludes a derivative related to the Corporation's 2008 sale of its remaining ownership of Visa shares and includes accrued interest receivable and payable. December 31, 2022 December 31, 2021 Fair Value Fair Value (in millions) Notional/ Gross Derivative Assets Gross Derivative Liabilities Notional/ Gross Derivative Assets Gross Derivative Liabilities Risk management purposes Derivatives designated as hedging instruments Interest rate contracts: Fair value swaps - receive fixed/pay floating $ 3,150 $ — $ — $ 2,650 $ — $ — Cash flow swaps - receive fixed/ pay floating (b) 26,600 — 50 8,050 — — Derivatives used as economic hedges Foreign exchange contracts: Spot, forwards and swaps 392 1 3 452 — 2 Total risk management purposes 30,142 1 53 11,152 — 2 Customer-initiated and other activities Interest rate contracts: Caps and floors written 924 — 25 809 — 3 Caps and floors purchased 924 25 — 809 3 — Swaps 18,450 181 569 19,382 236 66 Total interest rate contracts 20,298 206 594 21,000 239 69 Energy contracts: Caps and floors written 4,051 — 430 1,779 — 203 Caps and floors purchased 4,051 431 — 1,779 204 — Swaps 6,419 589 576 4,212 466 459 Total energy contracts 14,521 1,020 1,006 7,770 670 662 Foreign exchange contracts: Spot, forwards, options and swaps 2,704 52 42 1,716 19 14 Total customer-initiated and other activities 37,523 1,278 1,642 30,486 928 745 Total gross derivatives $ 67,665 1,279 1,695 $ 41,638 928 747 Amounts offset in the Consolidated Balance Sheets: Netting adjustment - Offsetting derivative assets/liabilities (644) (644) (187) (187) Netting adjustment - Cash collateral received/posted (180) (4) (15) (452) Net derivatives included in the Consolidated Balance Sheets (c) 455 1,047 726 108 Amounts not offset in the Consolidated Balance Sheets: Marketable securities pledged under bilateral collateral agreements (70) (202) — (52) Net derivatives after deducting amounts not offset in the Consolidated Balance Sheets $ 385 $ 845 $ 726 $ 56 (a) Notional or contractual amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected on the Consolidated Balance Sheets. (b) December 31, 2022 included $4.6 billion of forward starting swaps that will become effective on their contractual start dates in 2023 and 2024. (c) Net derivative assets are included in accrued income and other assets and net derivative liabilities are included in accrued expenses and other liabilities on the Consolidated Balance Sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and credit risk of the Corporation. The fair value of net derivative assets included credit valuation adjustments for counterparty credit risk of $2 million and $9 million at December 31, 2022 and 2021, respectively. |
Schedule of Effects of Fair Value Hedging on the Consolidated Statements of Comprehensive Income | The following table details the effects of fair value hedging on the Consolidated Statements of Comprehensive Income. (in millions) Interest on Medium- and Long-Term Debt Years Ended December 31 2022 2021 2020 Total interest on medium-and long-term debt (a) $ 87 $ 35 $ 80 Fair value hedging relationships: Interest rate contracts: Hedged items 112 102 109 Derivatives designated as hedging instruments (25) (68) (51) (a) Includes the effects of hedging. |
Schedule Of Weighted Average Maturity And Interest Rates On Risk Management Cash Flow Swaps | The following tables summarize the expected weighted average remaining maturity of the notional amount of risk management interest rate swaps, the weighted average interest rates associated with amounts expected to be received or paid on interest rate swap agreements, and for fair value swaps, the carrying amount of the related hedged items, as of December 31, 2022 and 2021. Cash flow swaps - receive fixed/pay floating rate on variable-rate loans (dollar amounts in millions) December 31, 2022 December 31, 2021 Weighted average: Time to maturity (in years) 4.6 2.4 Receive rate (a) 2.35 % 1.84 % Pay rate (a), (b) 4.07 0.10 (a) Excludes forward starting swaps not effective as of the period shown. December 31, 2022 excluded $4.6 billion of forward starting swaps. December 31, 2021 excluded $3.0 billion of forward starting swaps. (b) Variable rates paid on receive fixed swaps designated as cash flow hedges are based on one-month LIBOR, BSBY or Secured Overnight Financing Rate (SOFR) rates in effect at December 31, 2022 and 2021. Derivative contracts with maturity dates beyond the LIBOR cessation date will fall back to the daily SOFR with a spread adjustment. |
Schedule of Weighted Average Maturity And Interest Rates On Risk Management Fair Value Swaps | Fair value swaps - receive fixed/pay floating rate on medium- and long-term debt (dollar amounts in millions) December 31, 2022 December 31, 2021 Carrying value of hedged items (a) 3,024 2,796 Weighted average: Time to maturity (in years) 3.9 3.6 Receive rate 3.52 % 3.68 % Pay rate (b) 4.90 1.08 (a) Included $(124) million and $145 million of cumulative hedging adjustments at December 31, 2022 and 2021, respectively, which included $4 million and $5 million, respectively, of hedging adjustment on a discontinued hedging relationship. (b) Floating rates paid on receive fixed swaps designated as fair value hedges are based on one-month LIBOR rates in effect at December 31, 2022 and 2021. Derivative contracts with maturity dates beyond the LIBOR cessation date will fall back to the daily SOFR with a spread adjustment. |
Schedule Of Net Gains Recognized In Income On Customer-Initiated Derivatives | The net gains recognized in income on customer-initiated derivative instruments, net of the impact of offsetting positions included in derivative income, were as follows: Years Ended December 31, (in millions) 2022 2021 2020 Interest rate contracts $ 34 $ 36 $ 26 Energy contracts 28 18 1 Foreign exchange contracts 47 45 40 Total $ 109 $ 99 $ 67 |
Schedule Of Financial Instruments With Off-Balance Sheet Credit Risk | The Corporation’s credit risk associated with these instruments is represented by the contractual amounts indicated in the following table. (in millions) December 31 2022 2021 Unused commitments to extend credit: Commercial and other $ 30,800 $ 25,910 Bankcard, revolving credit and home equity loan commitments 4,017 3,554 Total unused commitments to extend credit $ 34,817 $ 29,464 Standby letters of credit $ 3,712 $ 3,378 Commercial letters of credit 39 44 |
Summary Of Criticized Letters Of Credit | The following table presents a summary of criticized standby and commercial letters of credit at December 31, 2022 and 2021. The Corporation's criticized list is consistent with the Special Mention, Substandard and Doubtful categories defined by regulatory authorities. The Corporation manages credit risk through underwriting, periodically reviewing and approving its credit exposures using Board committee approved credit policies and guidelines. (dollar amounts in millions) December 31, 2022 December 31, 2021 Total criticized standby and commercial letters of credit $ 37 $ 37 As a percentage of total outstanding standby and commercial letters of credit 1.0 % 1.1 % |
Variable Interest Entities (V_2
Variable Interest Entities (VIEs) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Impact of VIEs on the Consolidated Statements of Income | The following table summarizes the impact of these tax credit entities on the Corporation’s Consolidated Statements of Income. (in millions) Years Ended December 31 2022 2021 2020 Other noninterest income: Amortization of other tax credit investments $ — $ 1 $ 1 Provision for income taxes: Amortization of LIHTC Investments 72 $ 71 67 Low income housing tax credits (68) (68) (63) Other tax benefits related to tax credit entities (18) (17) (16) Total provision for income taxes $ (14) $ (14) $ (12) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Schedule Of Maturities Of Certificates of Deposit and Other Deposits with a Stated Maturity | At December 31, 2022, the scheduled maturities of certificates of deposit and other deposits with a stated maturity were as follows: (in millions) Years Ending December 31 2023 $ 1,789 2024 88 2025 24 2026 18 2027 13 Thereafter 5 Total $ 1,937 |
Schedule Of Maturities Of Domestic Deposits Of $100,000 Or More | A maturity distribution of domestic certificates of deposit of $100,000 and over follows: (in millions) December 31 2022 2021 Three months or less $ 220 $ 436 Over three months to six months 136 314 Over six months to twelve months 590 319 Over twelve months 49 74 Total $ 995 $ 1,143 |
Short-term Borrowings Short-ter
Short-term Borrowings Short-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Short-Term Debt [Abstract] | |
Summary of Short-term Borrowings | The following table provides a summary of short-term borrowings. (dollar amounts in millions) Federal Funds Purchased Other December 31, 2022 Amount outstanding at year-end $ 11 $ 3,200 Weighted average interest rate at year-end 4.32 % 4.54 % Maximum month-end balance during the year $ 1,106 $ 3,200 Average balance outstanding during the year 82 354 Weighted average interest rate during the year 3.28 % 4.08 % December 31, 2021 Amount outstanding at year-end $ — $ — Weighted average interest rate at year-end — % — % Maximum month-end balance during the year $ 2 $ — Average balance outstanding during the year 2 — Weighted average interest rate during the year 0.06 % — % December 31, 2020 Amount outstanding at year-end $ — $ — Weighted average interest rate at year-end — % — % Maximum month-end balance during the year $ 1,513 $ 1,250 Average balance outstanding during the year 30 284 Weighted average interest rate during the year 0.97 % 0.25 % |
Medium- And Long-Term Debt (Tab
Medium- And Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule Of Medium- And Long-Term Debt | Medium- and long-term debt is summarized as follows: (in millions) December 31 2022 2021 Parent company Subordinated notes: 3.80% subordinated notes due 2026 (a) $ 237 $ 265 Medium- and long-term notes: 3.70% notes due 2023 (a) 841 877 4.00% notes due 2029 (a) 515 594 Total medium- and long-term notes 1,356 1,471 Total parent company 1,593 1,736 Subsidiaries Subordinated notes: 4.00% subordinated notes due 2025 (a) 331 363 7.875% subordinated notes due 2026 (a) 165 190 5.332% subordinated notes due 2033 (a) 459 — Total subordinated notes 955 553 Medium- and long-term notes: 2.50% notes due 2024 (a) 476 507 Total subsidiaries 1,431 1,060 Total medium- and long-term debt $ 3,024 $ 2,796 (a) The fixed interest rates on these notes have been swapped to a variable rate and designated in a hedging relationship. Accordingly, carrying value has been adjusted to reflect the change in the fair value of the debt as a result of changes in the benchmark rate. |
Schedule of Maturities of Medium- and Long-term Debt | At December 31, 2022, the principal maturities of medium- and long-term debt were as follows: (in millions) Years Ending December 31 2023 $ 850 2024 500 2025 350 2026 400 2027 — Thereafter 1,050 Total $ 3,150 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income (Loss) | The following table presents a reconciliation of the changes in the components of accumulated other comprehensive (loss) income and details the components of other comprehensive (loss) income for the years ended December 31, 2022, 2021 and 2020, including the amount of income tax (benefit) expense allocated to each component of other comprehensive (loss) income. (in millions) Years Ended December 31 2022 2021 2020 Accumulated net unrealized losses on investment securities: Balance at beginning of period, net of tax $ (99) $ 211 $ 65 Net unrealized (losses) gains arising during the period (2,903) (406) 191 Less: (Benefit) provision for income taxes (683) (96) 45 Change in net unrealized (losses) gains on investment securities, net of tax (2,220) (310) 146 Balance at end of period, net of tax $ (2,319) $ (99) $ 211 Accumulated net (losses) gains on cash flow hedges: Balance at beginning of period, net of tax $ 55 $ 155 $ 34 Net cash flow hedge (losses) gains arising during the period (1,329) (35) 229 Less: (Benefit) provision for income taxes (313) (8) 56 Change in net cash flow hedge (losses) gains arising during the period, net of tax (1,016) (27) 173 Less: Net cash flow (losses) gains included in interest and fees on loans (25) 95 70 Less: (Benefit) provision for income taxes (6) 22 18 Reclassification adjustment for net cash flow hedge (losses) gains included in net income, net of tax (19) 73 52 Change in net cash flow hedge (losses) gains, net of tax (997) (100) 121 Balance at end of period, net of tax (a) $ (942) $ 55 $ 155 Accumulated defined benefit pension and other postretirement plans adjustment: Balance at beginning of period, net of tax $ (168) $ (302) $ (415) Actuarial (loss) gain arising during the period (415) 159 128 Prior service credit arising during the period — 1 — Net defined benefit pension and other postretirement plans adjustment arising during the period (415) 160 128 Less: (Benefit) provision for income taxes (98) 38 31 Net defined benefit pension and other postretirement plans adjustment arising during the period, net of tax (317) 122 97 Amounts recognized in other noninterest expenses: Amortization of actuarial net loss 28 40 47 Amortization of prior service credit (23) (25) (27) Total amounts recognized in other noninterest expenses 5 15 20 Less: Provision for income taxes 1 3 4 Adjustment for amounts recognized as components of net periodic benefit credit during the period, net of tax 4 12 16 Change in defined benefit pension and other postretirement plans adjustment, net of tax (313) 134 113 Balance at end of period, net of tax $ (481) $ (168) $ (302) Total accumulated other comprehensive (loss) income at end of period, net of tax $ (3,742) $ (212) $ 64 (a) The Corporation expects to reclassify $428 million of losses, net of tax, from accumulated other comprehensive loss to earnings over the next twelve months if interest yield curves and notional amounts remain at December 31, 2022 levels. |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic And Diluted Net Income Per Common Share | Basic and diluted net income per common share are presented in the following table. (in millions, except per share data) Years Ended December 31 2022 2021 2020 Basic and diluted Net income $ 1,151 $ 1,168 $ 497 Less: Income allocated to participating securities 6 5 2 Preferred stock dividends 23 23 13 Net income attributable to common shares $ 1,122 $ 1,140 $ 482 Basic average common shares 131 135 139 Basic net income per common share $ 8.56 $ 8.45 $ 3.45 Basic average common shares 131 135 139 Dilutive common stock equivalents: Net effect of the assumed exercise of stock awards 2 2 1 Diluted average common shares 133 137 140 Diluted net income per common share $ 8.47 $ 8.35 $ 3.43 |
Schedule of Average Shares Excluded From Diluted Net Income Per Common Share Computation | The following average shares related to outstanding options to purchase shares of common stock were not included in the computation of diluted net income per common share because the options were anti-dilutive for the period. (average outstanding options in thousands) Years Ended December 31 2022 2021 2020 Average outstanding options 543 438 1,498 Range of exercise prices $70.18 - $95.25 $79.01 - $95.25 $49.20 - $95.25 |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Summary of Components of Share-Based Compensation Expense | The components of share-based compensation expense for all share-based compensation plans and related tax benefits are as follows: (in millions) Years Ended December 31 2022 2021 2020 Total share-based compensation expense $ 60 $ 41 $ 24 Related tax benefits recognized in net income $ 14 $ 10 $ 6 |
Schedule of Unrecognized Compensation Expense | The following table summarizes unrecognized compensation expense for all share-based plans. (dollar amounts in millions) December 31, 2022 Total unrecognized share-based compensation expense $ 38 Weighted-average expected recognition period (in years) 2.1 |
Estimated Weighted-Average Grant-Date Fair Value per Option and the Underlying Model Assumptions | The estimated weighted-average grant-date fair value per option and the underlying binomial option-pricing model assumptions are summarized in the following table: Years Ended December 31 2022 2021 2020 Weighted-average grant-date fair value per option $ 25.31 $ 18.36 $ 13.03 Weighted-average assumptions: Risk-free interest rates 1.78 % 1.05 % 1.65 % Expected dividend yield 4.00 4.00 4.14 Volatility 34 39 27 Expected option life (in years) 8.0 7.8 8.4 |
Summary of Stock Option Activity and Related Information | A summary of the Corporation’s stock option activity and related information for the year ended December 31, 2022 follows: Weighted-Average Number of Exercise Price Remaining Aggregate Outstanding-January 1, 2022 2,244 $ 57.50 Granted 183 92.58 Forfeited or expired (32) 76.55 Exercised (387) 50.64 Outstanding-December 31, 2022 2,008 61.71 5.1 $ 22 Exercisable-December 31, 2022 1,379 $ 57.20 3.9 $ 20 |
Summary of Restricted Stock Activity and Related Information | A summary of the Corporation’s restricted stock activity and related information for the year ended December 31, 2022 follows: Number of Weighted-Average Outstanding-January 1, 2022 41 61.64 Forfeited — — Vested (41) 67.69 Outstanding-December 31, 2022 — $ — |
Summary of Restricted Stock Unit Activity and Related Information | A summary of the Corporation's restricted stock unit activity and related information for the year ended December 31, 2022 follows: Service-Based Units Performance-Based Units Number of Weighted-Average Number of Weighted-Average Outstanding-January 1, 2022 1,346 $ 59.18 816 $ 63.12 Granted 361 84.14 182 87.45 Forfeited (70) 65.24 (34) 70.40 Vested (a) (232) 65.36 (220) 79.13 Outstanding-December 31, 2022 1,405 64.27 744 64.01 (a) Includes performance-based units valued at zero, as they did not meet the minimum performance threshold. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following table sets forth reconciliations of plan assets and the projected benefit obligation, the weighted-average assumptions used to determine year-end benefit obligations, and the amounts recognized in accumulated other comprehensive (loss) income for the Corporation’s defined benefit pension plans and postretirement benefit plan at December 31, 2022 and 2021. The Corporation used a measurement date of December 31, 2022 for these plans. Defined Benefit Pension Plans Qualified Non-Qualified Postretirement Benefit Plan (dollar amounts in millions) 2022 2021 2022 2021 2022 2021 Change in fair value of plan assets: Fair value of plan assets at January 1 $ 3,462 $ 3,350 $ — $ — $ 53 $ 57 Actual return on plan assets (777) 291 — — (4) (1) Plan participants' contributions — — — — — 1 Benefits paid (177) (179) — — (3) (4) Fair value of plan assets at December 31 $ 2,508 $ 3,462 $ — $ — $ 46 $ 53 Change in projected benefit obligation: Projected benefit obligation at January 1 $ 2,214 $ 2,327 $ 207 $ 252 $ 31 $ 35 Service cost 37 38 2 2 — — Interest cost 62 61 6 7 1 1 Actuarial gain (525) (69) (37) (3) (8) (1) Plan participants' contributions — — — — — 1 Benefits paid (177) (179) (15) (15) (3) (4) Plan amendments (a) — 36 — (36) — (1) Projected benefit obligation at December 31 $ 1,611 $ 2,214 $ 163 $ 207 $ 21 $ 31 Accumulated benefit obligation $ 1,598 $ 2,199 $ 161 $ 204 $ 21 $ 31 Funded status at December 31 (b) (c) $ 897 $ 1,248 $ (163) $ (207) $ 25 $ 22 Weighted-average assumptions used: Discount rate 5.60 % 2.96 % 5.60 % 2.96 % 5.71 % 2.79 % Rate of compensation increase 4.25 4.00 4.25 4.00 n/a n/a Interest crediting rate 3.99 - 5.25 3.79 - 5.00 3.99 - 5.25 3.79 - 5.00 n/a n/a Amounts recognized in accumulated other comprehensive (loss) income before income taxes: Net actuarial loss $ (638) $ (205) $ (46) $ (92) $ (10) $ (11) Prior service credit 33 48 38 47 2 2 Balance at December 31 $ (605) $ (157) $ (8) $ (45) $ (8) $ (9) (a) The qualified defined benefit pension plan was amended in 2021 to include a flat dollar benefit for specified participants that would otherwise have been payable from the non-qualified defined benefit pension plan, resulting in a shift in projected benefit obligation from the non-qualified plan to the qualified plan. (b) Based on projected benefit obligation for defined benefit pension plans and accumulated benefit obligation for postretirement benefit plan. (c) The Corporation recognizes the overfunded and underfunded status of the plans in accrued income and other assets and accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheets. n/a - not applicable |
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss | The following table details the changes in plan assets and benefit obligations recognized in other comprehensive loss for the year ended December 31, 2022. Defined Benefit Pension Plans (in millions) Qualified Non-Qualified Postretirement Benefit Plan Total Actuarial gain (loss) arising during the period $ (453) $ 37 $ 1 $ (415) Amortization of net actuarial loss 19 9 — 28 Amortization of prior service credit (14) (9) — (23) Total recognized in other comprehensive loss $ (448) $ 37 $ 1 $ (410) |
Components of Net Periodic Defined Benefit (Credit) Cost | Components of net periodic defined benefit (credit) cost and postretirement benefit credit, the actual return on plan assets and the weighted-average assumptions used were as follows: Defined Benefit Pension Plans (dollar amounts in millions) Qualified Non-Qualified Years Ended December 31 2022 2021 2020 2022 2021 2020 Service cost (a) $ 37 $ 38 $ 32 $ 2 $ 2 $ 1 Other components of net benefit (credit) cost: Interest cost 62 61 70 6 7 8 Expected return on plan assets (201) (202) (185) — — — Amortization of prior service credit (14) (19) (19) (9) (6) (8) Amortization of actuarial net loss 19 29 38 9 11 9 Total other components of net benefit (credit) cost (b) (134) (131) (96) 6 12 9 Net periodic defined benefit (credit) cost $ (97) $ (93) $ (64) $ 8 $ 14 $ 10 Actual return on plan assets $ (777) $ 291 $ 537 n/a n/a n/a Actual rate of return on plan assets (23.02) % 8.92 % 18.72 % n/a n/a n/a Weighted-average assumptions used: Discount rate 2.96 % 2.71 % 3.43 % 2.96 % 2.71 % 3.43 % Expected long-term return on plan assets 6.50 6.50 6.50 n/a n/a n/a Rate of compensation increase 4.00 4.00 4.00 4.00 4.00 4.00 (a) Included in salaries and benefits expense on the Consolidated Statements of Income. (b) Included in other noninterest expenses on the Consolidated Statements of Income. n/a - not applicable (dollar amounts in millions) Postretirement Benefit Plan Years Ended December 31 2022 2021 2020 Other components of net benefit credit: Interest cost $ 1 $ 1 $ 1 Expected return on plan assets (3) (3) (2) Net periodic postretirement benefit credit $ (2) $ (2) $ (1) Actual return on plan assets $ (4) $ (1) $ 3 Actual rate of return on plan assets (8.24 %) (2.25 %) 6.00 % Weighted-average assumptions used: Discount rate 2.79% 2.43 % 3.26 % Expected long-term return on plan assets 5.00 5.00 5.00 Healthcare cost trend rate (a): Cost trend rate assumed n/a 6.00 6.25 Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) n/a 4.50 4.50 Year that the rate reaches the ultimate trend rate n/a 2027 2027 (a) Beginning January 1, 2022, the healthcare cost trend assumption is no longer a relevant assumption due to the change from a self-insured plan to the Medicare and pre-65 individual marketplace with a funded Health Reimbursement Arrangement account. n/a - not applicable |
Fair Value of Defined Benefit Plan Investments | The fair values of the Corporation’s qualified defined benefit pension plan investments measured at fair value on a recurring basis at December 31, 2022 and 2021, by asset category and level within the fair value hierarchy, are detailed in the table below. (in millions) Total Level 1 Level 2 Level 3 December 31, 2022 Fixed income securities: U.S. Treasury and other U.S. government agency securities $ 534 $ 531 $ 3 $ — Corporate and municipal bonds and notes 676 — 676 — Mortgage-backed securities 20 — 20 — Private placements 39 — — 39 Total investments in the fair value hierarchy $ 1,269 $ 531 $ 699 $ 39 Investments measured at net asset value: Collective investment funds 1,230 Total investments at fair value $ 2,499 December 31, 2021 Fixed income securities: U.S. Treasury and other U.S. government agency securities $ 599 $ 595 $ 4 $ — Corporate and municipal bonds and notes 893 — 893 — Mortgage-backed securities 27 — 27 — Private placements 50 — — 50 Total investments in the fair value hierarchy $ 1,569 $ 595 $ 924 $ 50 Investments measured at net asset value: Collective investment funds 1,885 Total investments at fair value $ 3,454 |
Changes in Level 3 Defined Benefit Plan Investments | The table below provides a summary of changes in the Corporation’s qualified defined benefit pension plan’s Level 3 investments measured at fair value on a recurring basis for the years ended December 31, 2022 and 2021. Balance at Balance at Net Gains (Losses) (in millions) Realized Unrealized Purchases Sales Year Ended December 31, 2022 Private placements $ 50 $ (3) $ (12) $ 38 $ (34) $ 39 Year Ended December 31, 2021 Private placements $ 58 $ 2 $ (4) $ 44 $ (50) $ 50 |
Estimated Future Benefit Payments | The Corporation currently expects to make no employer contributions to the qualified and non-qualified defined benefit pension plans and postretirement benefit plan for the year ended December 31, 2023. Estimated Future Benefit Payments (in millions) Years Ended December 31 Qualified Non-Qualified Postretirement 2023 $ 168 $ 14 $ 3 2024 140 15 3 2025 139 15 3 2026 143 15 2 2027 140 14 2 2028 - 2032 663 70 8 (a) Estimated benefit payments in the postretirement benefit plan are net of estimated Medicare subsidies. |
Income Taxes And Tax-Related _2
Income Taxes And Tax-Related Items Income Taxes And Tax-Related Items (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Current and Deferred Components of the Provision for Income Taxes | The current and deferred components of the provision for income taxes were as follows: (in millions) December 31 2022 2021 2020 Current: Federal $ 296 $ 212 $ 171 Foreign 6 5 5 State and local 50 26 30 Total current 352 243 206 Deferred: Federal (24) 62 (73) State and local (3) 17 (9) Total deferred (27) 79 (82) Total $ 325 $ 322 $ 124 |
Reconciliation of Expected Income Tax Expense at the Federal Statutory Rate to the Provision for Income Taxes | A reconciliation of expected income tax expense at the federal statutory rate to the Corporation’s provision for income taxes and effective tax rate follows: (dollar amounts in millions) 2022 2021 2020 Years Ended December 31 Amount Rate Amount Rate Amount Rate Tax based on federal statutory rate $ 310 21.0 % $ 313 21.0 % $ 130 21.0 % State income taxes 36 2.5 35 2.4 18 2.9 Affordable housing and historic credits (13) (0.9) (13) (0.9) (12) (1.9) Bank-owned life insurance (10) (0.7) (10) (0.6) (10) (1.6) FDIC insurance expense 6 0.4 5 0.3 7 1.1 Employee stock transactions (3) (0.2) (3) (0.2) (1) (0.2) Tax-related interest and penalties — — — — (2) (0.3) Other (1) (0.1) (5) (0.4) (6) (1.0) Provision for income taxes $ 325 22.0 % $ 322 21.6 % $ 124 20.0 % |
Reconciliation of Beginning and Ending Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of net unrecognized tax benefits follows: (in millions) 2022 2021 2020 Balance at January 1 $ 18 $ 19 $ 17 (Decrease) increase as a result of tax positions taken during a prior period (2) 1 1 Increase as a result of tax positions taken during the current period 3 3 2 Decreases related to settlements with tax authorities (3) (3) (1) Reduction as a result of expiration of statute of limitations — (2) — Balance at December 31 $ 16 $ 18 $ 19 |
Tax Years Remaining Open for Examination for Significant Tax Jurisdictions | The following tax years for significant jurisdictions remain subject to examination as of December 31, 2022: Jurisdiction Tax Years Federal 2019-2021 New York 2018-2021 California 2006-2007, 2018-2021 |
Principal Components of Deferred Tax Assets and Liabilities | The principal components of deferred tax assets and liabilities were as follows: (in millions) December 31 2022 2021 Deferred tax assets: Allowance for depreciation $ — $ 7 Allowance for loan losses 128 124 Deferred compensation 84 71 Deferred loan origination fees and costs 12 17 Net hedging losses 290 — Net unrealized losses on investment securities available-for-sale 713 30 Operating lease liabilities 85 74 Other temporary differences, net 42 21 Total deferred tax assets before valuation allowance 1,354 344 Valuation allowance (5) (5) Total deferred tax assets 1,349 339 Deferred tax liabilities: Lease financing transactions (31) (49) Defined benefit plans (123) (198) Allowance for depreciation (4) — Net hedging gains — (17) Leasing Right of Use assets (71) (66) Total deferred tax liabilities (229) (330) Net deferred tax assets $ 1,120 $ 9 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Summary of Capital Position | The following is a summary of the capital position of the Corporation and Comerica Bank, its principal banking subsidiary. (dollar amounts in millions) Comerica Comerica December 31, 2022 CET1 capital (minimum $3.5 billion (Consolidated)) $ 7,884 $ 7,801 Tier 1 capital (minimum $4.7 billion (Consolidated)) 8,278 7,801 Total capital (minimum $6.3 billion (Consolidated)) 9,817 9,190 Risk-weighted assets 78,871 78,781 Average assets (fourth quarter) 86,726 86,608 CET1 capital to risk-weighted assets (minimum-4.5%) 10.00 % 9.90 % Tier 1 capital to risk-weighted assets (minimum-6.0%) 10.50 9.90 Total capital to risk-weighted assets (minimum-8.0%) 12.45 11.67 Tier 1 capital to average assets (minimum-4.0%) 9.55 9.01 Capital conservation buffer (minimum-2.5%) 4.45 3.67 December 31, 2021 CET1 capital (minimum $3.1 billion (Consolidated)) $ 7,064 $ 7,634 Tier 1 capital (minimum $4.2 billion (Consolidated)) 7,458 7,634 Total capital (minimum $5.6 billion (Consolidated)) 8,608 8,584 Risk-weighted assets 69,708 69,542 Average assets (fourth quarter) 96,417 96,216 CET1 capital to risk-weighted assets (minimum-4.5%) 10.13 % 10.98 % Tier 1 capital to risk-weighted assets (minimum-6.0%) 10.70 10.98 Total capital to risk-weighted assets (minimum-8.0%) 12.35 12.34 Tier 1 capital to average assets (minimum-4.0%) 7.74 7.93 Capital conservation buffer (minimum-2.5%) 4.35 4.34 |
Strategic Lines of Business (Ta
Strategic Lines of Business (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Financial Results | Business segment financial results are as follows: (dollar amounts in millions) Commercial Retail Wealth Management Finance Other Total Year Ended December 31, 2022 Earnings summary: Net interest income (expense) $ 1,753 $ 680 $ 199 $ (187) $ 21 $ 2,466 Provision for credit losses 32 11 9 — 8 60 Noninterest income 607 122 298 58 (17) 1,068 Noninterest expenses 963 689 348 1 (3) 1,998 Provision (benefit) for income taxes 313 22 33 (37) (6) 325 Net income (loss) $ 1,052 $ 80 $ 107 $ (93) $ 5 $ 1,151 Net credit-related charge-offs (recoveries) $ 21 $ (1) $ (3) $ — $ — $ 17 Selected average balances: Assets $ 47,660 $ 2,814 $ 5,037 $ 20,682 $ 11,079 $ 87,272 Loans 43,481 2,063 4,906 — 10 50,460 Deposits 42,584 26,672 5,439 591 195 75,481 Statistical data: Return on average assets (a) 2.21 % 0.29 % 1.83 % n/m n/m 1.32 % Efficiency ratio (b) 40.69 85.31 70.00 n/m n/m 56.32 Year Ended December 31, 2021 Earnings summary: Net interest income (expense) $ 1,574 $ 565 $ 166 $ (471) $ 10 $ 1,844 Provision for credit losses (346) (5) (32) — (1) (384) Noninterest income 663 123 279 41 17 1,123 Noninterest expenses 870 645 317 1 28 1,861 Provision (benefit) for income taxes 384 5 36 (100) (3) 322 Net income (loss) $ 1,329 $ 43 $ 124 $ (331) $ 3 $ 1,168 Net credit-related (recoveries) charge-offs $ (12) $ 2 $ — $ — $ — $ (10) Selected average balances: Assets $ 44,004 $ 3,213 $ 5,028 $ 17,705 $ 20,202 $ 90,152 Loans 41,801 2,382 4,903 — (3) 49,083 Deposits 45,602 25,682 5,218 965 214 77,681 Statistical data: Return on average assets (a) 2.71 % 0.16 % 2.24 % n/m n/m 1.30 % Efficiency ratio (b) 38.76 92.98 71.02 n/m n/m 62.42 (Table continues on following page) (dollar amounts in millions) Commercial Bank Retail Wealth Management Finance Other Total Year Ended December 31, 2020 Earnings summary: Net interest income (expense) $ 1,605 $ 503 $ 167 $ (384) $ 20 $ 1,911 Provision for credit losses 495 7 35 — — 537 Noninterest income 555 110 263 55 18 1,001 Noninterest expenses 813 607 295 2 37 1,754 Provision (benefit) for income taxes 184 (3) 22 (78) (1) 124 Net income (loss) $ 668 $ 2 $ 78 $ (253) $ 2 $ 497 Net credit-related charge-offs $ 192 $ 1 $ 3 $ — $ — $ 196 Selected average balances: Assets $ 45,716 $ 3,281 $ 5,162 $ 15,418 $ 11,569 $ 81,146 Loans 44,119 2,468 5,045 — (1) 51,631 Deposits 36,616 22,832 4,402 1,026 162 65,038 Statistical data: Return on average assets (a) 1.46 % — % 1.51 % n/m n/m 0.61 % Efficiency ratio (b) 37.63 98.52 68.47 n/m n/m 60.13 (a) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. (b) Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains (losses) from securities, a derivative contract tied to the conversion rate of Visa Class B shares and changes in the value of shares obtained through monetization of warrants. n/m – not meaningful |
Parent Company Financial Stat_2
Parent Company Financial Statements Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Balance Sheets - Comerica Incorporated | BALANCE SHEETS - COMERICA INCORPORATED (in millions, except share data) December 31 2022 2021 Assets Cash and due from subsidiary banks $ 1,810 $ 1,105 Other short-term investments 92 113 Receivable due from subsidiary bank 150 150 Investment in subsidiaries, principally banks 4,853 8,278 Premises and equipment — 1 Accrued income and other assets 191 265 Total assets $ 7,096 $ 9,912 Liabilities and Shareholders’ Equity Medium- and long-term debt $ 1,593 $ 1,736 Accrued expenses and other liabilities 322 279 Total liabilities 1,915 2,015 Fixed-rate reset non-cumulative perpetual preferred stock, series A, no par value, $100,000 liquidation preference per share: Authorized - 4,000 shares Issued - 4,000 shares 394 394 Common stock - $5 par value: Authorized - 325,000,000 shares Issued - 228,164,824 shares 1,141 1,141 Capital surplus 2,220 2,175 Accumulated other comprehensive loss (3,742) (212) Retained earnings 11,258 10,494 Less cost of common stock in treasury - 97,197,962 shares at 12/31/2022 and 97,476,872 shares at 12/31/2021 (6,090) (6,095) Total shareholders’ equity 5,181 7,897 Total liabilities and shareholders’ equity $ 7,096 $ 9,912 |
Statements of Income - Comerica Incorporated | STATEMENTS OF INCOME - COMERICA INCORPORATED (in millions) Years Ended December 31 2022 2021 2020 Income Income from subsidiaries: Dividends from subsidiaries $ 1,067 $ 849 $ 498 Other interest income 13 1 4 Intercompany management fees 109 235 209 Total income 1,189 1,085 711 Expenses Interest on medium- and long-term debt 47 20 30 Salaries and benefits expense 53 170 141 Other noninterest expenses 46 72 66 Total expenses 146 262 237 Income before benefit for income taxes and equity in undistributed earnings of subsidiaries 1,043 823 474 Benefit for income taxes (3) (6) (6) Income before equity in undistributed earnings of subsidiaries 1,046 829 480 Equity in undistributed earnings of subsidiaries, principally banks 105 339 17 Net income 1,151 1,168 497 Less income allocated to participating securities 6 5 2 Preferred stock dividends 23 23 13 Net income attributable to common shares $ 1,122 $ 1,140 $ 482 |
Statements of Cash Flows - Comerica Incorporated | STATEMENTS OF CASH FLOWS - COMERICA INCORPORATED (in millions) Years Ended December 31 2022 2021 2020 Operating Activities Net income $ 1,151 $ 1,168 $ 497 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed (earnings) of subsidiaries, principally banks (105) (339) (17) Net periodic defined benefit cost 2 5 4 Share-based compensation expense 22 19 11 Benefit for deferred income taxes — (2) (1) Other, net 24 3 2 Net cash provided by operating activities 1,094 854 496 Investing Activities Advance to subsidiary bank — (150) — Capital transactions with subsidiaries — — (21) Other, net 2 (1) 2 Net cash provided by (used in) investing activities 2 (151) (19) Financing Activities Preferred Stock: Issuances — — 394 Cash dividends paid (23) (23) (8) Common Stock: Repurchases (43) (729) (199) Cash dividends paid (353) (369) (375) Issuances under employee stock plans 28 34 4 Net cash used in financing activities (391) (1,087) (184) Net increase (decrease) in cash and cash equivalents 705 (384) 293 Cash and cash equivalents at beginning of period 1,105 1,489 1,196 Cash and cash equivalents at end of period $ 1,810 $ 1,105 $ 1,489 Interest paid $ 41 $ 21 $ 33 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Composition of Revenue from Contracts with Customers | The following table presents the composition of revenue from contracts with customers, segregated from other sources of noninterest income, by business segment. Commercial Retail Wealth Management Finance & Other Total (in millions) Year Ended December 31, 2022 Revenue from contracts with customers: Card fees $ 227 $ 42 $ 4 $ — $ 273 Fiduciary income — — 233 — 233 Service charges on deposit accounts 132 57 6 — 195 Commercial loan servicing fees (a) 18 — — — 18 Brokerage fees — — 21 — 21 Other noninterest income (b) 7 16 24 1 48 Total revenue from contracts with customers 384 115 288 1 788 Other sources of noninterest income 223 7 10 40 280 Total noninterest income $ 607 $ 122 $ 298 $ 41 $ 1,068 Year Ended December 31, 2021 Revenue from contracts with customers: Card fees $ 250 $ 44 $ 4 $ — $ 298 Fiduciary income — — 231 — 231 Service charges on deposit accounts 136 54 5 — 195 Commercial loan servicing fees (a) 19 — — — 19 Brokerage fees — — 14 — 14 Other noninterest income (b) 5 17 17 — 39 Total revenue from contracts with customers 410 115 271 — 796 Other sources of noninterest income 253 8 8 58 327 Total noninterest income 663 123 279 58 1,123 Year Ended December 31, 2020 Revenue from contracts with customers: Card fees $ 229 $ 38 $ 3 $ — $ 270 Fiduciary income — — 209 — 209 Service charges on deposit accounts 128 52 5 — 185 Commercial loan servicing fees (a) 18 — — — 18 Brokerage fees — — 21 — 21 Other noninterest income (b) 28 10 17 — 55 Total revenue from contracts with customers 403 100 255 — 758 Other sources of noninterest income 152 10 8 73 243 Total noninterest income $ 555 $ 110 $ 263 $ 73 $ 1,001 (a) Included in commercial lending fees on the Consolidated Statements of Income. (b) Excludes derivative, warrant and other miscellaneous income. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Operating Leases | As a lessee, the Corporation has entered into operating leases for the majority of its real estate locations, primarily retail and office space. Total lease expense for the years ended December 31, 2022, 2021 and 2020 were as follows: (in millions) Years Ended December 31 2022 2021 2020 Operating lease expense $ 68 $ 65 $ 64 Variable lease expense 17 15 16 Less sublease income (1) (1) (1) Total lease expense $ 84 $ 79 $ 79 |
Leases - Supplemental balance sheet information | Supplemental balance sheet information related to leases is summarized as follows: (dollar amounts in millions) Years Ended December 31 2022 2021 2020 Included in accrued income and other assets Right-of-use (ROU) assets $ 338 $ 317 $ 306 Included in accrued expenses and other liabilities Operating lease liabilities 406 356 344 Weighted average discount rate 3.53 % 3.33 % 3.61 % Weighted average lease term in years 9 8 8 |
Leases - Supplemental cash flow information | Supplemental cash flow information related to leases is summarized as follows: (in millions) Years Ended December 31 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 66 $ 66 $ 65 ROU assets obtained in exchange for new liabilities (a) 80 64 28 (a) Includes a $24 million reduction to both ROU assets and lease liabilities for a partial termination related to the Company's Texas headquarters for the year ended December 31, 2022. |
Contractual maturities of operating lease liabilities | As of December 31, 2022, the contractual maturities of operating lease liabilities were as follows: (in millions) Years Ending December 31 2023 $ 63 2024 69 2025 63 2026 55 2027 45 Thereafter 185 Total contractual maturities 480 Less imputed interest (74) Total operating lease liabilities $ 406 |
Contractual maturities of sales-type and direct financing lease receivables | As of December 31, 2022, the contractual maturities of sales-type and direct financing lease receivables were as follows: (in millions) Years Ending December 31 2023 $ 101 2024 127 2025 137 2026 71 2027 36 Thereafter 148 Total lease payments receivable 620 Unguaranteed residual values 61 Less deferred interest income (22) Total lease receivables (a) $ 659 (a) Excludes net investment in leveraged leases of $101 million. |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies Basis of Presentation and Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segments | Dec. 31, 2021 USD ($) | ||
Federal Home Loan Bank Stock | $ 138 | $ 7 | |
Federal Reserve Bank Stock | 85 | 85 | |
Net Deferred Income on Originated Loans | $ 118 | 102 | |
Delinquency Status, Period of Unpaid Scheduled Monthly Payment | 30 days | ||
Hosting Arrangement, Service Contract, Implementation Cost, Capitalized, after Accumulated Amortization | $ 32 | 21 | |
Hosting Arrangement, Service Contract, Implementation Cost, Capitalized, Accumulated Amortization | $ 3 | 3 | |
Number of Reporting Units | segments | 3 | ||
Derivative, Notional Amount | [1] | $ 67,665 | $ 41,638 |
Defined Benefit Plan Investment Gain Loss Amortization Adjustment, Allowable Percentage | 10% | ||
Defined Benefit Plan Actuarial Gain Loss Amortization Adjustment, Allowable Percentage | 10% | ||
Defined Benefit Plan Market-related Value Plan Assets, Amortization Period | 5 years | ||
Premises the Corporation owns | Minimum | |||
Premises and Equipment, Useful Life | 3 years | ||
Premises the Corporation owns | Maximum | |||
Premises and Equipment, Useful Life | 33 years | ||
Furniture and equipment | Minimum | |||
Premises and Equipment, Useful Life | 3 years | ||
Furniture and equipment | Maximum | |||
Premises and Equipment, Useful Life | 8 years | ||
Leasehold improvements | Maximum | |||
Premises and Equipment, Useful Life | 10 years | ||
Software | |||
Premises and Equipment, Useful Life | 5 years | ||
Retail loans | Commercial mortgage | |||
Past Due Period Residential Mortgage And Home Equity Loans Placed On Nonaccrual Status | 90 days | ||
Past Due Threshold For Charge-Off | 180 days | ||
Commercial borrower | Business loans | |||
Past Due Period Business Loans Placed On Nonaccrual Status | 90 days | ||
Consumer borrower | Retail loans | Home equity | |||
Maximum Past Due Status Junior Lien Home Equity Placed On Nonaccrual Status | 90 days | ||
Consumer borrower | Retail loans | Other consumer | |||
Past Due Threshold For Charge-Off | 120 days | ||
Threshold, Days Past Due, Other Consumer Placed On Nonaccrual Status | 90 days | ||
Swaps - fair value - receive fixed/pay floating | Short-Cut Method | Not Designated as Hedging Instrument [Member] | Interest rate swap | |||
Derivative, Notional Amount | $ 2,600 | ||
[1]Notional or contractual amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected on the Consolidated Balance Sheets. |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Recurring | ||
Transfers into or out of Level 3 | $ 0 | $ 0 |
Total liabilities at fair value | 1,799 | 873 |
Nonrecurring | ||
Total liabilities at fair value | $ 0 | $ 0 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Recorded At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | $ 19,012 | $ 16,986 | |
Derivative assets | 1,279 | 928 | |
Derivative liabilities | 1,695 | 747 | |
U.S. Treasury and other U.S. government agency securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | 2,664 | 2,993 | |
Commercial Mortgage Backed Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | [1] | 4,693 | 705 |
Recurring | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | 19,012 | 16,986 | |
Derivative assets | 1,279 | 928 | |
Total assets at fair value | 20,427 | 18,089 | |
Derivative liabilities | 1,707 | 760 | |
Deferred compensation plan liabilities | 92 | 113 | |
Total liabilities at fair value | 1,799 | 873 | |
Recurring | Level 1 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | 2,664 | 2,993 | |
Derivative assets | 0 | 0 | |
Total assets at fair value | 2,800 | 3,168 | |
Derivative liabilities | 0 | 0 | |
Deferred compensation plan liabilities | 92 | 113 | |
Total liabilities at fair value | 92 | 113 | |
Recurring | Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | 16,348 | 13,993 | |
Derivative assets | 1,279 | 902 | |
Total assets at fair value | 17,627 | 14,895 | |
Derivative liabilities | 1,695 | 747 | |
Deferred compensation plan liabilities | 0 | 0 | |
Total liabilities at fair value | 1,695 | 747 | |
Recurring | Level 3 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | 0 | 0 | |
Derivative assets | 0 | 26 | |
Total assets at fair value | 0 | 26 | |
Derivative liabilities | 12 | 13 | |
Deferred compensation plan liabilities | 0 | 0 | |
Total liabilities at fair value | 12 | 13 | |
Recurring | Interest rate contracts | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Derivative assets | 206 | 239 | |
Derivative liabilities | 644 | 69 | |
Recurring | Interest rate contracts | Level 1 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Recurring | Interest rate contracts | Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Derivative assets | 206 | 213 | |
Derivative liabilities | 644 | 69 | |
Recurring | Interest rate contracts | Level 3 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Derivative assets | 0 | 26 | |
Derivative liabilities | 0 | 0 | |
Recurring | Energy derivative contracts | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Derivative assets | 1,020 | 670 | |
Derivative liabilities | 1,006 | 662 | |
Recurring | Energy derivative contracts | Level 1 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Recurring | Energy derivative contracts | Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Derivative assets | 1,020 | 670 | |
Derivative liabilities | 1,006 | 662 | |
Recurring | Energy derivative contracts | Level 3 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Recurring | Foreign exchange contracts | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Derivative assets | 53 | 19 | |
Derivative liabilities | 45 | 16 | |
Recurring | Foreign exchange contracts | Level 1 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Recurring | Foreign exchange contracts | Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Derivative assets | 53 | 19 | |
Derivative liabilities | 45 | 16 | |
Recurring | Foreign exchange contracts | Level 3 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Recurring | Other financial derivative | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Derivative liabilities | 12 | 13 | |
Recurring | Other financial derivative | Level 1 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Derivative liabilities | 0 | 0 | |
Recurring | Other financial derivative | Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Derivative liabilities | 0 | 0 | |
Recurring | Other financial derivative | Level 3 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Total liabilities at fair value | 12 | 13 | |
Recurring | Deferred compensation plan assets | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Deferred compensation plan assets | 92 | 113 | |
Recurring | Deferred compensation plan assets | Level 1 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Deferred compensation plan assets | 92 | 113 | |
Recurring | Deferred compensation plan assets | Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Deferred compensation plan assets | 0 | 0 | |
Recurring | Deferred compensation plan assets | Level 3 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Deferred compensation plan assets | 0 | 0 | |
Recurring | Equity securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Equity securities | 44 | 62 | |
Recurring | Equity securities | Level 1 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Equity securities | 44 | 62 | |
Recurring | Equity securities | Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Equity securities | 0 | 0 | |
Recurring | Equity securities | Level 3 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Equity securities | 0 | 0 | |
Recurring | U.S. Treasury and other U.S. government agency securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | 2,664 | 2,993 | |
Recurring | U.S. Treasury and other U.S. government agency securities | Level 1 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | 2,664 | 2,993 | |
Recurring | U.S. Treasury and other U.S. government agency securities | Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | 0 | 0 | |
Recurring | U.S. Treasury and other U.S. government agency securities | Level 3 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | 0 | 0 | |
Recurring | Residential mortgage-backed securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | [1] | 11,655 | 13,288 |
Recurring | Residential mortgage-backed securities | Level 1 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | [1] | 0 | 0 |
Recurring | Residential mortgage-backed securities | Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | [1] | 11,655 | 13,288 |
Recurring | Residential mortgage-backed securities | Level 3 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | [1] | 0 | 0 |
Recurring | Commercial Mortgage Backed Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | [1] | 4,693 | 705 |
Recurring | Commercial Mortgage Backed Securities | Level 1 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | [1] | 0 | 0 |
Recurring | Commercial Mortgage Backed Securities | Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | [1] | 4,693 | 705 |
Recurring | Commercial Mortgage Backed Securities | Level 3 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Line Items] | |||
Investment Securities, Available-for-sale | [1] | $ 0 | $ 0 |
[1]Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Fair Value Measurements (Change
Fair Value Measurements (Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Interest rate contracts | |||
Balance at beginning of period | $ 26 | $ 39 | |
Realized gains (losses) recorded in earnings | [1] | 0 | 0 |
Unrealized gains (losses) recorded in earnings | [1] | 0 | (13) |
Settlements | (26) | 0 | |
Balance at end of period | 0 | 26 | |
Other financial derivative | |||
Balance at beginning of period | (13) | (11) | |
Realized gains (losses) recorded in earnings | [1] | 0 | 0 |
Unrealized gains (losses) recorded in earnings | [1] | 1 | (2) |
Settlements | 0 | 0 | |
Balance at end of period | $ (12) | $ (13) | |
[1]Realized and unrealized gains and losses due to changes in fair value recorded in other noninterest income on the Consolidated Statements of Income. |
Fair Value Measurements (Asse_2
Fair Value Measurements (Assets And Liabilities Recorded At Fair Value On A Nonrecurring Basis) (Details) - Nonrecurring - Level 3 - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis [Line Items] | ||
Loans | $ 66 | |
Other Real Estate | 9 | |
Total assets at fair value | 75 | $ 150 |
Commercial borrower | Domestic loans | ||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis [Line Items] | ||
Loans | 53 | 125 |
Commercial borrower | Non-US | ||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis [Line Items] | ||
Loans | 4 | |
Commercial borrower | Commercial mortgage loans | Domestic loans | ||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis [Line Items] | ||
Loans | 11 | 17 |
Commercial borrower | Construction | Domestic loans | ||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis [Line Items] | ||
Loans | $ 2 | $ 4 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values Of Financial Instruments Not Recorded At Fair Value In Their Entirety On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash and due from banks | $ 1,758 | $ 1,236 | |
Interest-bearing deposits with banks | 4,524 | 21,443 | |
Total loans, net of allowance for loan losses | 52,792 | 48,697 | |
Demand deposits (noninterest-bearing) | 39,945 | 45,800 | |
Customer certificates of deposit | 1,762 | 1,973 | |
Other time deposits | 124 | 0 | |
Total deposits | 71,397 | 82,339 | |
Short-term borrowings | 3,211 | 0 | |
Total medium- and long-term debt | 3,024 | 2,796 | |
Carrying Amount | |||
Cash and due from banks | 1,758 | 1,236 | |
Interest-bearing deposits with banks | 4,524 | 21,443 | |
Other short-term investments | 19 | 16 | |
Loans held-for-sale | 2 | 6 | |
Total loans, net of allowance for loan losses | [1] | 52,792 | 48,697 |
Customers' liability on acceptances outstanding | 3 | 5 | |
Restricted equity investments | 223 | 92 | |
Nonmarketable equity securities | [2] | 5 | 5 |
Demand deposits (noninterest-bearing) | 39,945 | 45,800 | |
Interest-bearing deposits | 29,566 | 34,566 | |
Customer certificates of deposit | 1,762 | 1,973 | |
Other time deposits | 124 | ||
Total deposits | 71,397 | 82,339 | |
Short-term borrowings | 3,211 | ||
Acceptances outstanding | 3 | 5 | |
Total medium- and long-term debt | 3,024 | 2,796 | |
Credit-related financial instruments | (79) | (59) | |
Estimated Fair Value | |||
Cash and due from banks | 1,758 | 1,236 | |
Interest-bearing deposits with banks | 4,524 | 21,443 | |
Other short-term investments | 19 | 16 | |
Loans held-for-sale | 2 | 6 | |
Total loans, net of allowance for loan losses | [1] | 50,964 | 49,127 |
Customers' liability on acceptances outstanding | 3 | 5 | |
Restricted equity investments | 223 | 92 | |
Nonmarketable equity securities | [2] | 12 | 10 |
Demand deposits (noninterest-bearing) | 39,945 | 45,800 | |
Interest-bearing deposits | 29,566 | 34,566 | |
Customer certificates of deposit | 1,719 | 1,968 | |
Other time deposits | 124 | ||
Total deposits | 71,354 | 82,334 | |
Short-term borrowings | 3,211 | ||
Acceptances outstanding | 3 | 5 | |
Total medium- and long-term debt | 3,071 | 2,854 | |
Credit-related financial instruments | (79) | (59) | |
Level 1 | Estimated Fair Value | |||
Cash and due from banks | 1,758 | 1,236 | |
Interest-bearing deposits with banks | 4,524 | 21,443 | |
Other short-term investments | 19 | 16 | |
Loans held-for-sale | 0 | 0 | |
Total loans, net of allowance for loan losses | [1] | 0 | 0 |
Customers' liability on acceptances outstanding | 3 | 5 | |
Restricted equity investments | 223 | 92 | |
Demand deposits (noninterest-bearing) | 0 | 0 | |
Interest-bearing deposits | 0 | 0 | |
Customer certificates of deposit | 0 | 0 | |
Other time deposits | 0 | ||
Total deposits | 0 | 0 | |
Short-term borrowings | 3,211 | ||
Acceptances outstanding | 3 | 5 | |
Total medium- and long-term debt | 0 | 0 | |
Credit-related financial instruments | 0 | 0 | |
Level 2 | Estimated Fair Value | |||
Cash and due from banks | 0 | 0 | |
Interest-bearing deposits with banks | 0 | 0 | |
Other short-term investments | 0 | 0 | |
Loans held-for-sale | 2 | 6 | |
Total loans, net of allowance for loan losses | [1] | 0 | 0 |
Customers' liability on acceptances outstanding | 0 | 0 | |
Restricted equity investments | 0 | 0 | |
Demand deposits (noninterest-bearing) | 39,945 | 45,800 | |
Interest-bearing deposits | 29,566 | 34,566 | |
Customer certificates of deposit | 1,719 | 1,968 | |
Other time deposits | 124 | ||
Total deposits | 71,354 | 82,334 | |
Short-term borrowings | 0 | ||
Acceptances outstanding | 0 | 0 | |
Total medium- and long-term debt | 3,071 | 2,854 | |
Credit-related financial instruments | 0 | 0 | |
Level 3 | Estimated Fair Value | |||
Cash and due from banks | 0 | 0 | |
Interest-bearing deposits with banks | 0 | 0 | |
Other short-term investments | 0 | 0 | |
Loans held-for-sale | 0 | 0 | |
Total loans, net of allowance for loan losses | [1] | 50,964 | 49,127 |
Customers' liability on acceptances outstanding | 0 | 0 | |
Restricted equity investments | 0 | 0 | |
Demand deposits (noninterest-bearing) | 0 | 0 | |
Interest-bearing deposits | 0 | 0 | |
Customer certificates of deposit | 0 | 0 | |
Other time deposits | 0 | ||
Total deposits | 0 | 0 | |
Short-term borrowings | 0 | ||
Acceptances outstanding | 0 | 0 | |
Total medium- and long-term debt | 0 | 0 | |
Credit-related financial instruments | $ (79) | $ (59) | |
[1]Included $66 million and $150 million of loans recorded at fair value on a nonrecurring basis at December 31, 2022 and 2021, respectively.[2]Certain investments that are measured at fair value using the net asset value have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Securities with no credit impairment in unrealized loss position | 1,289 | ||
Loan interest receivable | $ 49 | $ 36 | |
Securities gains and losses | 0 | $ 0 | |
Securities gains | $ 1 | ||
Securities losses | $ (1) | ||
Carrying value of securities pledged | 3,200 | ||
Pledged to the FHLB as collateral for potential future borrowings - investment securities | 1,000 | ||
Collateral for potential future borrowings | 2,200 | ||
Liabilities secured by pledged collateral | $ 1,000 | ||
U.S. Treasury and other U.S. government agency securities | |||
Securities with no credit impairment in unrealized loss position | 27 | ||
Residential mortgage-backed securities | |||
Securities with no credit impairment in unrealized loss position | 1,008 | ||
Commercial Mortgage Backed Securities | |||
Securities with no credit impairment in unrealized loss position | 254 |
Investment Securities (Summary
Investment Securities (Summary Of Investment Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Investment securities available-for-sale, Amortized Cost | $ 22,045 | $ 17,116 | |
Investment securities available-for-sale, Gross Unrealized Gains | 0 | 91 | |
Investment securities available-for-sale, Gross Unrealized Losses | 3,033 | 221 | |
Investment securities available-for-sale, Fair Value | 19,012 | 16,986 | |
U.S. Treasury and other U.S. government agency securities | |||
Investment securities available-for-sale, Amortized Cost | 2,810 | 3,010 | |
Investment securities available-for-sale, Gross Unrealized Gains | 0 | 22 | |
Investment securities available-for-sale, Gross Unrealized Losses | 146 | 39 | |
Investment securities available-for-sale, Fair Value | 2,664 | 2,993 | |
Residential mortgage-backed securities | |||
Investment securities available-for-sale, Amortized Cost | [1] | 13,983 | 13,397 |
Investment securities available-for-sale, Gross Unrealized Gains | [1] | 0 | 67 |
Investment securities available-for-sale, Gross Unrealized Losses | [1] | 2,328 | 176 |
Investment securities available-for-sale, Fair Value | [1] | 11,655 | 13,288 |
Commercial Mortgage Backed Securities | |||
Investment securities available-for-sale, Amortized Cost | [1] | 5,252 | 709 |
Investment securities available-for-sale, Gross Unrealized Gains | [1] | 0 | 2 |
Investment securities available-for-sale, Gross Unrealized Losses | [1] | 559 | 6 |
Investment securities available-for-sale, Fair Value | [1] | $ 4,693 | $ 705 |
[1]Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Investment Securities (Summar_2
Investment Securities (Summary Of Investment Securities In Unrealized Loss Positions) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Less than 12 Months, Fair Value | $ 8,504 | $ 8,008 | |
Less than 12 Months, Unrealized Losses | 771 | 140 | |
12 Months or more, Fair Value | 10,506 | 2,462 | |
12 Months or more, Unrealized Losses | 2,262 | 81 | |
Total, Fair Value | 19,010 | 10,470 | |
Total, Unrealized Losses | 3,033 | 221 | |
U.S. Treasury and other U.S. government agency securities | |||
Less than 12 Months, Fair Value | 996 | 465 | |
Less than 12 Months, Unrealized Losses | 5 | 6 | |
12 Months or more, Fair Value | 1,668 | 1,334 | |
12 Months or more, Unrealized Losses | 141 | 33 | |
Total, Fair Value | 2,664 | 1,799 | |
Total, Unrealized Losses | 146 | 39 | |
Residential mortgage-backed securities | |||
Less than 12 Months, Fair Value | [1] | 3,500 | 7,197 |
Less than 12 Months, Unrealized Losses | [1] | 361 | 128 |
12 Months or more, Fair Value | [1] | 8,153 | 1,128 |
12 Months or more, Unrealized Losses | [1] | 1,967 | 48 |
Total, Fair Value | [1] | 11,653 | 8,325 |
Total, Unrealized Losses | [1] | 2,328 | 176 |
Commercial Mortgage Backed Securities | |||
Less than 12 Months, Fair Value | [1] | 4,008 | 346 |
Less than 12 Months, Unrealized Losses | [1] | 405 | 6 |
12 Months or more, Fair Value | [1] | 685 | 0 |
12 Months or more, Unrealized Losses | [1] | 154 | 0 |
Total, Fair Value | [1] | 4,693 | 346 |
Total, Unrealized Losses | [1] | $ 559 | $ 6 |
[1]Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Investment Securities (Contract
Investment Securities (Contractual Maturity Distribution Of Debt Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Investment securities available-for-sale, Amortized Cost | $ 22,045 | $ 17,116 |
Investment Securities, Available-for-sale | 19,012 | $ 16,986 |
Debt securities | ||
Available-for-sale, Within one year, Amortized Cost | 1,103 | |
Available-for-sale, After one year through five years, Amortized Cost | 1,943 | |
Available-for-sale, After five years through ten years, Amortized Cost | 5,518 | |
Available-for-sale, After ten years, Amortized Cost | 13,481 | |
Investment securities available-for-sale, Amortized Cost | 22,045 | |
Available-for-sale, Within one year, Fair Value | 1,093 | |
Available-for-sale, After one year through five years, Fair Value | 1,797 | |
Available-for-sale, After five years through ten years, Fair Value | 4,946 | |
Available-for-sale, After ten years, Fair Value | 11,176 | |
Investment Securities, Available-for-sale | $ 19,012 |
Credit Quality And Allowance _3
Credit Quality And Allowance For Credit Losses (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loan interest receivable | $ 261 | $ 120 | |
Financing Receivable, Nonaccrual, Interest Income | 12 | 11 | $ 7 |
Foreclosed property | $ 0 | 1 | |
Retail loans secured by residential real estate in process of foreclosure | $ 0 | ||
Principal deferrals | |||
Minimum period loan terms were extended | 90 days | 90 days | |
Subsequent default during period | $ 6 | $ 0 | |
Interest Rate Reductions | |||
Minimum period loan terms were extended | 90 days | 90 days | |
Subsequent default during period | $ 0 | $ 0 |
Credit Quality And Allowance _4
Credit Quality And Allowance For Credit Losses (Aging Analysis Of Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | $ 401 | $ 180 | |
Nonaccrual loans | 240 | 264 | |
Current Loans | [1] | 52,761 | 48,841 |
Total loans | 53,402 | 49,285 | |
30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 341 | 118 | |
60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 37 | 35 | |
90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 23 | 27 | |
Real estate construction | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 3,105 | 2,948 | |
Real estate construction | Other Business Lines Member | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | [2] | 600 | 557 |
Commercial mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 13,306 | 11,255 | |
Commercial mortgage | Other Business Lines Member | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | [2] | 8,625 | 7,917 |
Business loans | Commercial borrower | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 366 | 132 | |
Nonaccrual loans | 171 | 216 | |
Current Loans | [1] | 48,740 | 45,069 |
Total loans | 49,277 | 45,417 | |
Business loans | Commercial borrower | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 310 | 78 | |
Business loans | Commercial borrower | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 33 | 31 | |
Business loans | Commercial borrower | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 23 | 23 | |
Business loans | Commercial borrower | Domestic loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 271 | 59 | |
Nonaccrual loans | 142 | 173 | |
Current Loans | [1] | 30,496 | 29,134 |
Total loans | 30,909 | 29,366 | |
Business loans | Commercial borrower | Domestic loans | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 238 | 35 | |
Business loans | Commercial borrower | Domestic loans | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 13 | 18 | |
Business loans | Commercial borrower | Domestic loans | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 20 | 6 | |
Business loans | Commercial borrower | International loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 9 | 14 | |
Nonaccrual loans | 3 | 5 | |
Current Loans | [1] | 1,185 | 1,189 |
Total loans | 1,197 | 1,208 | |
Business loans | Commercial borrower | International loans | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 0 | 5 | |
Business loans | Commercial borrower | International loans | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 9 | 8 | |
Business loans | Commercial borrower | International loans | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 0 | 1 | |
Business loans | Commercial borrower | Real estate construction | Domestic loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 2 | 16 | |
Nonaccrual loans | 3 | 6 | |
Current Loans | [1] | 3,100 | 2,926 |
Total loans | 3,105 | 2,948 | |
Business loans | Commercial borrower | Real estate construction | Domestic loans | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 2 | 15 | |
Business loans | Commercial borrower | Real estate construction | Domestic loans | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 0 | 1 | |
Business loans | Commercial borrower | Real estate construction | Domestic loans | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 0 | 0 | |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Commercial Real Estate business line | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | [3] | 0 | 0 |
Nonaccrual loans | [3] | 0 | 0 |
Current Loans | [1],[3] | 2,505 | 2,391 |
Total loans | [3] | 2,505 | 2,391 |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Commercial Real Estate business line | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | [3] | 0 | 0 |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Commercial Real Estate business line | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | [3] | 0 | 0 |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Commercial Real Estate business line | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | [3] | 0 | 0 |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Other business lines | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | [2] | 2 | 16 |
Nonaccrual loans | [2] | 3 | 6 |
Current Loans | [1],[2] | 595 | 535 |
Total loans | [2] | 600 | 557 |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Other business lines | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | [2] | 2 | 15 |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Other business lines | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | [2] | 0 | 1 |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Other business lines | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | [2] | 0 | 0 |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 78 | 38 | |
Nonaccrual loans | 23 | 32 | |
Current Loans | [1] | 13,205 | 11,185 |
Total loans | 13,306 | 11,255 | |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 64 | 18 | |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 11 | 4 | |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 3 | 16 | |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Commercial Real Estate business line | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | [3] | 6 | 0 |
Nonaccrual loans | [3] | 1 | 1 |
Current Loans | [1],[3] | 4,674 | 3,337 |
Total loans | [3] | 4,681 | 3,338 |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Commercial Real Estate business line | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | [3] | 0 | 0 |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Commercial Real Estate business line | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | [3] | 6 | 0 |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Commercial Real Estate business line | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | [3] | 0 | 0 |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Other business lines | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | [2] | 72 | 38 |
Nonaccrual loans | [2] | 22 | 31 |
Current Loans | [1],[2] | 8,531 | 7,848 |
Total loans | [2] | 8,625 | 7,917 |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Other business lines | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | [2] | 64 | 18 |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Other business lines | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | [2] | 5 | 4 |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Other business lines | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | [2] | 3 | 16 |
Business loans | Commercial borrower | Lease financing | Domestic loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 6 | 5 | |
Nonaccrual loans | 0 | 0 | |
Current Loans | [1] | 754 | 635 |
Total loans | 760 | 640 | |
Business loans | Commercial borrower | Lease financing | Domestic loans | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 6 | 5 | |
Business loans | Commercial borrower | Lease financing | Domestic loans | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 0 | 0 | |
Business loans | Commercial borrower | Lease financing | Domestic loans | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 0 | 0 | |
Retail loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 35 | 48 | |
Nonaccrual loans | 69 | 48 | |
Current Loans | [1] | 4,021 | 3,772 |
Total loans | 4,125 | 3,868 | |
Retail loans | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 31 | 40 | |
Retail loans | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 4 | 4 | |
Retail loans | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 0 | 4 | |
Retail loans | Residential mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 22 | 4 | |
Nonaccrual loans | 53 | 36 | |
Current Loans | [1] | 1,739 | 1,731 |
Total loans | 1,814 | 1,771 | |
Retail loans | Residential mortgage | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 22 | 4 | |
Retail loans | Residential mortgage | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 0 | 0 | |
Retail loans | Residential mortgage | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 0 | 0 | |
Retail loans | Consumer borrower | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 13 | 44 | |
Nonaccrual loans | 16 | 12 | |
Current Loans | [1] | 2,282 | 2,041 |
Total loans | 2,311 | 2,097 | |
Retail loans | Consumer borrower | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 9 | 36 | |
Retail loans | Consumer borrower | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 4 | 4 | |
Retail loans | Consumer borrower | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 0 | 4 | |
Retail loans | Consumer borrower | Home equity | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 7 | 7 | |
Nonaccrual loans | 15 | 12 | |
Current Loans | [1] | 1,754 | 1,514 |
Total loans | 1,776 | 1,533 | |
Retail loans | Consumer borrower | Home equity | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 4 | 4 | |
Retail loans | Consumer borrower | Home equity | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 3 | 3 | |
Retail loans | Consumer borrower | Home equity | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 0 | 0 | |
Retail loans | Consumer borrower | Other consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 6 | 37 | |
Nonaccrual loans | 1 | 0 | |
Current Loans | [1] | 528 | 527 |
Total loans | 535 | 564 | |
Retail loans | Consumer borrower | Other consumer | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 5 | 32 | |
Retail loans | Consumer borrower | Other consumer | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | 1 | 1 | |
Retail loans | Consumer borrower | Other consumer | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans Past due and still accruing | $ 0 | $ 4 | |
[1]Includes $22 million of loans with deferred payments not considered past due in accordance with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) at December 31, 2021.[2]Primarily loans secured by owner-occupied real estate.[3]Primarily loans to real estate developers. |
Credit Quality And Allowance _5
Credit Quality And Allowance For Credit Losses (Loans By Credit Quality Indicator) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | $ 53,402 | $ 49,285 | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 9,268 | 9,453 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 8,160 | 5,533 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 4,120 | 4,367 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 2,992 | 3,021 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1,960 | 2,109 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 3,961 | 3,959 | ||
Financing Receivable, Revolving | 22,889 | 20,782 | ||
Financing Receivable, Revolving, Converted to Term Loan | 52 | 61 | ||
Real estate construction | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 3,105 | 2,948 | ||
Commercial mortgage | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 13,306 | 11,255 | ||
Business loans | Commercial borrower | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 49,277 | 45,417 | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 8,868 | 8,904 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 7,724 | 4,938 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 3,590 | 4,189 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 2,841 | 2,927 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1,890 | 1,990 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 3,548 | 3,488 | ||
Financing Receivable, Revolving | 20,806 | 18,969 | ||
Financing Receivable, Revolving, Converted to Term Loan | 10 | 12 | ||
Business loans | Commercial borrower | Domestic loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 30,909 | 29,366 | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 4,021 | 5,371 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 3,783 | 1,860 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 998 | 1,633 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1,110 | 1,033 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 643 | 739 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,108 | 857 | ||
Financing Receivable, Revolving | 19,236 | 17,861 | ||
Financing Receivable, Revolving, Converted to Term Loan | 10 | 12 | ||
Business loans | Commercial borrower | Domestic loans | Pass | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | 29,654 | 28,212 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | [1],[2] | 3,946 | 5,270 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [1],[2] | 3,509 | 1,740 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [1] | 917 | [2] | 1,528 |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [1] | 1,041 | 947 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [1] | 598 | 713 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [1] | 1,030 | 763 | |
Financing Receivable, Revolving | [1] | 18,604 | 17,241 | |
Financing Receivable, Revolving, Converted to Term Loan | [1] | 9 | 10 | |
Business loans | Commercial borrower | Domestic loans | Criticized | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [3] | 1,255 | 1,154 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | [3] | 75 | 101 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [3] | 274 | 120 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [3] | 81 | 105 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [3] | 69 | 86 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [3] | 45 | 26 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [3] | 78 | 94 | |
Financing Receivable, Revolving | [3] | 632 | 620 | |
Financing Receivable, Revolving, Converted to Term Loan | [3] | 1 | 2 | |
Business loans | Commercial borrower | International loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 1,197 | 1,208 | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 329 | 401 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 161 | 151 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 58 | 106 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 88 | 34 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 22 | 5 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 24 | 24 | ||
Financing Receivable, Revolving | 515 | 487 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Business loans | Commercial borrower | International loans | Pass | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | 1,152 | 1,151 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | [1] | 317 | 381 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [1] | 161 | 141 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [1] | 55 | 103 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [1] | 88 | 29 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [1] | 19 | 1 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [1] | 14 | 16 | |
Financing Receivable, Revolving | [1] | 498 | 480 | |
Financing Receivable, Revolving, Converted to Term Loan | [1] | 0 | 0 | |
Business loans | Commercial borrower | International loans | Criticized | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [3] | 45 | 57 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | [3] | 12 | 20 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [3] | 0 | 10 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [3] | 3 | 3 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [3] | 0 | 5 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [3] | 3 | 4 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [3] | 10 | 8 | |
Financing Receivable, Revolving | [3] | 17 | 7 | |
Financing Receivable, Revolving, Converted to Term Loan | [3] | 0 | 0 | |
Business loans | Commercial borrower | Real estate construction | Domestic loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 3,105 | 2,948 | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 836 | 458 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,134 | 861 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 636 | 849 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 162 | 437 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 102 | 166 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 28 | 42 | ||
Financing Receivable, Revolving | 207 | 135 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Business loans | Commercial borrower | Real estate construction | Domestic loans | Pass | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | 3,102 | 2,913 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | [1] | 836 | 458 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [1] | 1,134 | 858 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [1] | 633 | 849 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [1] | 162 | 424 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [1] | 102 | 158 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [1] | 28 | 34 | |
Financing Receivable, Revolving | [1] | 207 | 132 | |
Financing Receivable, Revolving, Converted to Term Loan | [1] | 0 | 0 | |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Criticized | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [3] | 3 | 35 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [3] | 0 | 3 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [3] | 3 | 0 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [3] | 0 | 13 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [3] | 0 | 8 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [3] | 0 | 8 | |
Financing Receivable, Revolving | [3] | 0 | 3 | |
Financing Receivable, Revolving, Converted to Term Loan | [3] | 0 | 0 | |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 13,306 | 11,255 | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 3,356 | 2,508 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 2,506 | 1,976 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,832 | 1,494 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1,426 | 1,365 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1,081 | 1,041 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 2,257 | 2,385 | ||
Financing Receivable, Revolving | 848 | 486 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Pass | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | 13,139 | 11,007 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | [1] | 3,349 | 2,491 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [1] | 2,501 | 1,932 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [1] | 1,825 | 1,444 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [1] | 1,394 | 1,343 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [1] | 1,050 | 1,018 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [1] | 2,182 | 2,298 | |
Financing Receivable, Revolving | [1] | 838 | 481 | |
Financing Receivable, Revolving, Converted to Term Loan | [1] | 0 | 0 | |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Criticized | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [3] | 167 | 248 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | [3] | 7 | 17 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [3] | 5 | 44 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [3] | 7 | 50 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [3] | 32 | 22 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [3] | 31 | 23 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [3] | 75 | 87 | |
Financing Receivable, Revolving | [3] | 10 | 5 | |
Financing Receivable, Revolving, Converted to Term Loan | [3] | 0 | 0 | |
Business loans | Commercial borrower | Lease financing | Domestic loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 760 | 640 | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 326 | 166 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 140 | 90 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 66 | 107 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 55 | 58 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 42 | 39 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 131 | 180 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Business loans | Commercial borrower | Lease financing | Domestic loans | Pass | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | 734 | 618 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | [1] | 316 | 166 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [1] | 140 | 88 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [1] | 64 | 97 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [1] | 47 | 50 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [1] | 37 | 38 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [1] | 130 | 179 | |
Financing Receivable, Revolving | [1] | 0 | 0 | |
Financing Receivable, Revolving, Converted to Term Loan | [1] | 0 | 0 | |
Business loans | Commercial borrower | Lease financing | Domestic loans | Criticized | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [3] | 26 | 22 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | [3] | 10 | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [3] | 0 | 2 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [3] | 2 | 10 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [3] | 8 | 8 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [3] | 5 | 1 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [3] | 1 | 1 | |
Financing Receivable, Revolving | [3] | 0 | 0 | |
Financing Receivable, Revolving, Converted to Term Loan | [3] | 0 | 0 | |
Retail loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 4,125 | 3,868 | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 400 | 549 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 436 | 595 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 530 | 178 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 151 | 94 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 70 | 119 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 413 | 471 | ||
Financing Receivable, Revolving | 2,083 | 1,813 | ||
Financing Receivable, Revolving, Converted to Term Loan | 42 | 49 | ||
Retail loans | Residential mortgage | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 1,814 | 1,771 | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 331 | 448 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 398 | 527 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 480 | 165 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 142 | 85 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 69 | 118 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 394 | 428 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Retail loans | Residential mortgage | Pass | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | 1,761 | 1,735 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | [1] | 327 | 443 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [1] | 398 | 527 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [1] | 480 | 164 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [1] | 133 | 83 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [1] | 68 | 111 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [1] | 355 | 407 | |
Financing Receivable, Revolving | [1] | 0 | 0 | |
Financing Receivable, Revolving, Converted to Term Loan | [1] | 0 | 0 | |
Retail loans | Residential mortgage | Criticized | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [3] | 53 | 36 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | [3] | 4 | 5 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [3] | 0 | 1 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [3] | 9 | 2 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [3] | 1 | 7 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [3] | 39 | 21 | |
Financing Receivable, Revolving | [3] | 0 | 0 | |
Financing Receivable, Revolving, Converted to Term Loan | [3] | 0 | 0 | |
Retail loans | Consumer borrower | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 2,311 | 2,097 | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 69 | 101 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 38 | 68 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 50 | 13 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 9 | 9 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1 | 1 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 19 | 43 | ||
Financing Receivable, Revolving | 2,083 | 1,813 | ||
Financing Receivable, Revolving, Converted to Term Loan | 42 | 49 | ||
Retail loans | Consumer borrower | Home equity | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 1,776 | 1,533 | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 9 | 12 | ||
Financing Receivable, Revolving | 1,725 | 1,472 | ||
Financing Receivable, Revolving, Converted to Term Loan | 42 | 49 | ||
Retail loans | Consumer borrower | Home equity | Pass | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | 1,757 | 1,516 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | [1] | 0 | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [1] | 0 | 0 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [1] | 0 | 0 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [1] | 0 | 0 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [1] | 0 | 0 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [1] | 9 | 11 | |
Financing Receivable, Revolving | [1] | 1,708 | 1,460 | |
Financing Receivable, Revolving, Converted to Term Loan | [1] | 40 | 45 | |
Retail loans | Consumer borrower | Home equity | Criticized | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [3] | 19 | 17 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [3] | 0 | 1 | |
Financing Receivable, Revolving | [3] | 17 | 12 | |
Financing Receivable, Revolving, Converted to Term Loan | [3] | 2 | 4 | |
Retail loans | Consumer borrower | Other consumer | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 535 | 564 | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 69 | 101 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 38 | 68 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 50 | 13 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 9 | 9 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1 | 1 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 10 | 31 | ||
Financing Receivable, Revolving | 358 | 341 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Retail loans | Consumer borrower | Other consumer | Pass | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | 531 | 560 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | [1] | 69 | 101 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [1] | 38 | 68 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [1] | 50 | 13 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [1] | 8 | 9 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [1] | 1 | 1 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [1] | 10 | 31 | |
Financing Receivable, Revolving | [1] | 355 | 337 | |
Financing Receivable, Revolving, Converted to Term Loan | [1] | 0 | 0 | |
Retail loans | Consumer borrower | Other consumer | Criticized | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [3] | 4 | 4 | |
Financing Receivable, Year One, Originated, Current Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | [3] | 1 | 0 | |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Revolving | [3] | 3 | 4 | |
Financing Receivable, Revolving, Converted to Term Loan | [3] | $ 0 | $ 0 | |
[1]Includes all loans not included in the categories of special mention, substandard or nonaccrual.[2]Includes Small Business Administration Paycheck Protection Program (PPP) loans of $35 million and $459 million at December 31, 2022 and 2021, respectively.[3]Includes loans with an internal rating of special mention, substandard loans for which the accrual of interest has not been discontinued and nonaccrual loans. Special mention loans have potential credit weaknesses that deserve management’s close attention, such as loans to borrowers who may be experiencing financial difficulties that may result in deterioration of repayment prospects from the borrower at some future date. Accruing substandard loans have a well-defined weakness, or weaknesses, such as loans to borrowers who may be experiencing losses from operations or inadequate liquidity of a degree and duration that jeopardizes the orderly repayment of the loan. Substandard loans are also distinguished by the distinct possibility of loss in the future if these weaknesses are not corrected. Nonaccrual loans are loans for which the accrual of interest has been discontinued. For further information regarding nonaccrual loans, refer to the Nonperforming Assets subheading in Note 1 - Basis of Presentation and Accounting Policies. These categories are generally consistent with the "special mention" and "substandard" categories as defined by regulatory authorities. A minority of nonaccrual loans are consistent with the "doubtful" category. |
Credit Quality And Allowance _6
Credit Quality And Allowance For Credit Losses (Changes In The Allowance For Loan Losses And Related Loan Amounts) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2022 | Jan. 01, 2021 | Jan. 01, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | $ 618 | $ 992 | $ 668 | |||
Provision for loan losses | 60 | (384) | 537 | |||
Balance at end of period | $ 661 | $ 618 | $ 992 | |||
Allowance as a percentage of total loans | 1.24% | 1.26% | 1.90% | |||
Cumulative effect of change in accounting principle | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Reduction in business loans allowance for credit losses | $ 0 | $ 0 | $ (42) | |||
Increase in retail loans allowance for credit losses | 0 | 0 | 25 | |||
Day-one decrease in the overall allowance for credit losses | $ 0 | $ 0 | $ (17) | |||
Financing Receivable | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | $ 588 | $ 948 | $ 637 | |||
Loan charge-offs | (68) | (70) | (238) | |||
Recoveries on loans previously charged-off | 51 | 80 | 42 | |||
Net loan (charge-offs) recoveries | (17) | 10 | (196) | |||
Provision for loan losses | 39 | (370) | 524 | |||
Balance at end of period | $ 610 | $ 588 | $ 948 | |||
Allowance as a percentage of total loans | 1.14% | 1.19% | 1.81% | |||
Unused Commitments to Extend Credit | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | $ 30 | $ 44 | $ 31 | |||
Provision for loan losses | 21 | (14) | 13 | |||
Balance at end of period | 51 | 30 | 44 | |||
Business loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | 555 | 930 | 629 | |||
Provision for loan losses | 44 | (384) | 538 | |||
Balance at end of period | $ 581 | $ 555 | $ 930 | |||
Allowance as a percentage of total loans | 1.18% | 1.22% | 1.93% | |||
Business loans | Financing Receivable | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | $ 531 | $ 895 | $ 601 | |||
Loan charge-offs | (65) | (67) | (233) | |||
Recoveries on loans previously charged-off | 47 | 76 | 38 | |||
Net loan (charge-offs) recoveries | (18) | 9 | (195) | |||
Provision for loan losses | 28 | (373) | 531 | |||
Balance at end of period | $ 541 | $ 531 | $ 895 | |||
Allowance as a percentage of total loans | 1.10% | 1.17% | 1.85% | |||
Business loans | Unused Commitments to Extend Credit | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | $ 24 | $ 35 | $ 28 | |||
Provision for loan losses | 16 | (11) | 7 | |||
Balance at end of period | 40 | 24 | 35 | |||
Retail loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | 63 | 62 | 39 | |||
Provision for loan losses | 16 | 0 | (1) | |||
Balance at end of period | $ 80 | $ 63 | $ 62 | |||
Allowance as a percentage of total loans | 1.96% | 1.63% | 1.55% | |||
Retail loans | Financing Receivable | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | $ 57 | $ 53 | $ 36 | |||
Loan charge-offs | (3) | (3) | (5) | |||
Recoveries on loans previously charged-off | 4 | 4 | 4 | |||
Net loan (charge-offs) recoveries | 1 | 1 | (1) | |||
Provision for loan losses | 11 | 3 | (7) | |||
Balance at end of period | $ 69 | $ 57 | $ 53 | |||
Allowance as a percentage of total loans | 1.67% | 1.47% | 1.32% | |||
Retail loans | Unused Commitments to Extend Credit | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | $ 6 | $ 9 | $ 3 | |||
Provision for loan losses | 5 | (3) | 6 | |||
Balance at end of period | $ 11 | $ 6 | $ 9 |
Credit Quality And Allowance _7
Credit Quality And Allowance For Credit Losses (Nonaccrual Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Impaired [Line Items] | |||
Nonaccrual Loans with No Related Allowance | $ 140 | $ 60 | |
Nonaccrual Loans with Related Allowance | 100 | 204 | |
Total Nonaccrual Loans | 240 | 264 | |
Business loans | Commercial borrower | |||
Financing Receivable, Impaired [Line Items] | |||
Nonaccrual Loans with No Related Allowance | 71 | 12 | |
Nonaccrual Loans with Related Allowance | 100 | 204 | |
Total Nonaccrual Loans | 171 | 216 | |
Business loans | Commercial borrower | Domestic loans | |||
Financing Receivable, Impaired [Line Items] | |||
Nonaccrual Loans with No Related Allowance | 64 | 8 | |
Nonaccrual Loans with Related Allowance | 78 | 165 | |
Total Nonaccrual Loans | 142 | 173 | |
Business loans | Commercial borrower | Non-US | |||
Financing Receivable, Impaired [Line Items] | |||
Nonaccrual Loans with No Related Allowance | 3 | 0 | |
Nonaccrual Loans with Related Allowance | 0 | 5 | |
Total Nonaccrual Loans | 3 | 5 | |
Retail loans | |||
Financing Receivable, Impaired [Line Items] | |||
Nonaccrual Loans with No Related Allowance | 69 | 48 | |
Nonaccrual Loans with Related Allowance | 0 | 0 | |
Total Nonaccrual Loans | 69 | 48 | |
Retail loans | Consumer borrower | |||
Financing Receivable, Impaired [Line Items] | |||
Nonaccrual Loans with No Related Allowance | 16 | ||
Nonaccrual Loans with Related Allowance | 0 | ||
Total Nonaccrual Loans | 16 | 12 | |
Real estate construction | Business loans | Commercial borrower | Domestic loans | |||
Financing Receivable, Impaired [Line Items] | |||
Total Nonaccrual Loans | 3 | 6 | |
Real estate construction | Commercial Real Estate business line | Business loans | Commercial borrower | Domestic loans | |||
Financing Receivable, Impaired [Line Items] | |||
Total Nonaccrual Loans | [1] | 0 | 0 |
Real estate construction | Other business lines | Business loans | Commercial borrower | Domestic loans | |||
Financing Receivable, Impaired [Line Items] | |||
Nonaccrual Loans with No Related Allowance | [2] | 0 | 0 |
Nonaccrual Loans with Related Allowance | [2] | 3 | 6 |
Total Nonaccrual Loans | [2] | 3 | 6 |
Commercial mortgage | Business loans | Commercial borrower | Domestic loans | |||
Financing Receivable, Impaired [Line Items] | |||
Nonaccrual Loans with No Related Allowance | 4 | 4 | |
Nonaccrual Loans with Related Allowance | 19 | 28 | |
Total Nonaccrual Loans | 23 | 32 | |
Commercial mortgage | Commercial Real Estate business line | Business loans | Commercial borrower | Domestic loans | |||
Financing Receivable, Impaired [Line Items] | |||
Nonaccrual Loans with No Related Allowance | [1] | 0 | 0 |
Nonaccrual Loans with Related Allowance | [1] | 1 | 1 |
Total Nonaccrual Loans | [1] | 1 | 1 |
Commercial mortgage | Other business lines | Business loans | Commercial borrower | Domestic loans | |||
Financing Receivable, Impaired [Line Items] | |||
Nonaccrual Loans with No Related Allowance | [2] | 4 | 4 |
Nonaccrual Loans with Related Allowance | [2] | 18 | 27 |
Total Nonaccrual Loans | [2] | 22 | 31 |
Residential mortgage | Retail loans | |||
Financing Receivable, Impaired [Line Items] | |||
Nonaccrual Loans with No Related Allowance | 53 | 36 | |
Nonaccrual Loans with Related Allowance | 0 | 0 | |
Total Nonaccrual Loans | 53 | 36 | |
Home equity | Retail loans | Consumer borrower | |||
Financing Receivable, Impaired [Line Items] | |||
Nonaccrual Loans with No Related Allowance | 15 | 12 | |
Nonaccrual Loans with Related Allowance | 0 | 0 | |
Total Nonaccrual Loans | 15 | 12 | |
Other consumer | Retail loans | Consumer borrower | |||
Financing Receivable, Impaired [Line Items] | |||
Nonaccrual Loans with No Related Allowance | 1 | ||
Nonaccrual Loans with Related Allowance | 0 | ||
Total Nonaccrual Loans | $ 1 | $ 0 | |
[1]Primarily loans to real estate developers.[2]Primarily loans secured by owner-occupied real estate. |
Credit Quality And Allowance _8
Credit Quality And Allowance For Credit Losses Foreclosed Properties (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Nonaccrual Loans [Abstract] | ||
Foreclosed property | $ 0 | $ 1 |
Credit Quality And Allowance _9
Credit Quality And Allowance For Credit Losses Credit Quality And Allowance For Credit Losses (Troubled Debt Restructuring Subsequent Default) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | [1] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | $ 73 | $ 10 | ||
Business loans | Commercial borrower | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | 43 | 8 | ||
Business loans | Commercial borrower | Domestic loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | 26 | 8 | ||
Business loans | Real estate construction | Commercial borrower | Domestic loans | Other business lines | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | [2] | 3 | 0 | |
Business loans | Commercial mortgage | Commercial borrower | Domestic loans | Other business lines | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | [2] | 14 | 0 | |
Retail loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | 30 | 2 | ||
Retail loans | Consumer borrower | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | 3 | 2 | ||
Retail loans | Residential mortgage | Domestic loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | 27 | 0 | ||
Retail loans | Home equity | Consumer borrower | Domestic loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | [3] | 2 | 2 | |
Retail loans | Other consumer | Consumer borrower | Domestic loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | 1 | 0 | ||
Principal deferrals | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | [4] | 44 | 8 | |
Principal deferrals | Business loans | Commercial borrower | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | [4] | 43 | 8 | |
Principal deferrals | Business loans | Commercial borrower | Domestic loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | [4] | 26 | 8 | |
Principal deferrals | Business loans | Real estate construction | Commercial borrower | Domestic loans | Other business lines | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | [2],[4] | 3 | 0 | |
Principal deferrals | Business loans | Commercial mortgage | Commercial borrower | Domestic loans | Other business lines | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | [2],[4] | 14 | 0 | |
Principal deferrals | Retail loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | [4] | 1 | 0 | |
Principal deferrals | Retail loans | Consumer borrower | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | [4] | 1 | 0 | |
Principal deferrals | Retail loans | Residential mortgage | Domestic loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | [4] | 0 | 0 | |
Principal deferrals | Retail loans | Home equity | Consumer borrower | Domestic loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | [3],[4] | 1 | 0 | |
Principal deferrals | Retail loans | Other consumer | Consumer borrower | Domestic loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | [4] | 0 | 0 | |
Interest Rate Reductions | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | 29 | 2 | ||
Interest Rate Reductions | Business loans | Commercial borrower | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | 0 | 0 | ||
Interest Rate Reductions | Business loans | Commercial borrower | Domestic loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | 0 | 0 | ||
Interest Rate Reductions | Business loans | Real estate construction | Commercial borrower | Domestic loans | Other business lines | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | [2] | 0 | 0 | |
Interest Rate Reductions | Business loans | Commercial mortgage | Commercial borrower | Domestic loans | Other business lines | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | [2] | 0 | 0 | |
Interest Rate Reductions | Retail loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | 29 | 2 | ||
Interest Rate Reductions | Retail loans | Consumer borrower | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | 2 | 2 | ||
Interest Rate Reductions | Retail loans | Residential mortgage | Domestic loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | 27 | 0 | ||
Interest Rate Reductions | Retail loans | Home equity | Consumer borrower | Domestic loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | [3] | 1 | 2 | |
Interest Rate Reductions | Retail loans | Other consumer | Consumer borrower | Domestic loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Recorded balance of troubled debt restructuring modified during the period | $ 1 | $ 0 | ||
[1]Under the provisions of the CARES Act, qualifying COVID-19-related modifications, primarily principal deferrals, were not considered TDRs during the year ended December 31, 2021.[2]Primarily loans secured by owner-occupied real estate.[3]Includes bankruptcy loans for which the court has discharged the borrower's obligation and the borrower has not reaffirmed the debt.[4]Primarily represents loan balances where terms were extended by more than an insignificant time period, typically more than 180 days, at or above contractual interest rates. Also includes commercial loans restructured in bankruptcy. |
Significant Group Concentrati_3
Significant Group Concentrations of Credit Risk (Narrative) (Details) | Dec. 31, 2022 |
Risks and Uncertainties [Abstract] | |
Concentration risk threshold - Commercial Real Estate | 31% |
Concentration risk threshold - Auto | 12% |
Significant Group Concentrati_4
Significant Group Concentrations of Credit Risk Significant Group Concentrations of Credit Risk (Commercial Real Estate Exposure) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 53,402 | $ 49,285 | |
Real estate construction loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 3,105 | 2,948 | |
Commercial mortgage loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 13,306 | 11,255 | |
Total commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 16,411 | 14,203 | |
Total unused commitments | 6,602 | 4,030 | |
Commercial Real Estate business line | Real estate construction loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [1] | 2,505 | 2,391 |
Commercial Real Estate business line | Commercial mortgage loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [1] | 4,681 | 3,338 |
Other Business Lines Member | Real estate construction loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [2] | 600 | 557 |
Other Business Lines Member | Commercial mortgage loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [2] | $ 8,625 | $ 7,917 |
[1]Primarily loans to real estate developers.[2]Primarily loans secured by owner-occupied real estate. |
Significant Group Concentrati_5
Significant Group Concentrations of Credit Risk Significant Group Concentrations of Credit Risk (Schedule of Automotive Industry Outstanding Loans and Total Exposure) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | |||
Total automotive loans | $ 6,435 | $ 5,274 | |
Total automotive exposure | 12,938 | 12,706 | |
Automotive Production | |||
Concentration Risk [Line Items] | |||
Total automotive loans | 1,068 | 1,112 | [1] |
Total automotive exposure | 2,028 | 2,041 | [1] |
Automotive Dealer | |||
Concentration Risk [Line Items] | |||
Total automotive loans | 5,367 | 4,162 | |
Total automotive exposure | $ 10,910 | $ 10,665 | |
[1]Excludes PPP loans |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 81 | $ 85 |
Buildings and improvements | 737 | 852 |
Furniture and equipment | 518 | 516 |
Total cost | 1,336 | 1,453 |
Less: Accumulated depreciation and amortization | (936) | (999) |
Premises and equipment | $ 400 | $ 454 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Core deposit intangible | ||
Amortization expense of core deposit intangible | $ 1 | $ 1 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets Goodwill and Intangible Assets (Summary of Changes in Carrying Value of Goodwill) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill [Line Items] | ||
Balance | $ 635 | $ 635 |
Commercial Bank | ||
Goodwill [Line Items] | ||
Balance | 473 | 473 |
Retail Bank | ||
Goodwill [Line Items] | ||
Balance | 101 | 101 |
Wealth Management | ||
Goodwill [Line Items] | ||
Balance | $ 61 | $ 61 |
Derivative And Credit-Related_3
Derivative And Credit-Related Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash received as collateral for derivative assets | $ 185 | ||
Fair value of securities pledged as collateral for derivative assets | 202 | ||
Cash posted as collateral for derivative liabilities | 4 | ||
Net cash flow hedge gains included in interest and fees on loans | (25) | $ 95 | $ 70 |
Price alignment income | 8 | ||
Net gain on open foreign currency positions | 0 | 0 | $ 0 |
Allowance for credit losses on lending-related commitments | 51 | 30 | |
Allowance for credit losses on lending-related commitments, unused commitments to extend credit | $ 44 | 27 | |
Final year of expiration for outstanding letters of credit | 2029 | ||
Risk participation agreements covering standby and commercial letters of credit | $ 107 | 98 | |
Standby and commercial letters of credit outstanding | 3,800 | 3,400 | |
Carrying value of standby and commercial letters of credit included in accrued expenses and other liabilities | 35 | 32 | |
Deferred fees on standby and commercial letters of credit included in accrued expenses and other liabilities | 28 | 29 | |
Allowance for credit losses on lending-related commitments, amount related to standby and commercial letters of credit | 7 | 3 | |
Notional Amount of Derivative Credit Risk Participation Agreements | $ 951 | 1,100 | |
Fair Value Amount of Derivative Credit Risk Participation Agreements | 1 | ||
Maximum estimated exposure to credit risk participation agreements assuming 100% default | 30 | ||
Weighted average remaining maturity of credit risk participation agreements, in years | 3 years 9 months 18 days | ||
Recurring | |||
Total liabilities at fair value | $ 1,799 | 873 | |
Level 3 | Recurring | |||
Total liabilities at fair value | $ 12 | $ 13 |
Derivative And Credit-Related_4
Derivative And Credit-Related Financial Instruments (Schedule Of Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | $ 67,665 | $ 41,638 |
Fair Value of Gross Derivative Assets | 1,279 | 928 | |
Fair Value of Gross Derivative Liabilities | 1,695 | 747 | |
Derivative assets, Netting adjustment - Offsetting derivative liabilities | (644) | (187) | |
Derivative liabilities, Netting adjustment - Offsetting derivative assets | (644) | (187) | |
Derivative assets, Netting adjustment - Cash collateral received | (180) | (15) | |
Derivative liabilities, Netting adjustment - Cash collateral posted | (4) | (452) | |
Net derivative assets included in consolidated balance sheets | [2] | 455 | 726 |
Net derivative liabilities included in the consolidated balance sheet | [2] | 1,047 | 108 |
Derivative assets, securities pledged as collateral | (70) | 0 | |
Derivative liabilities, securities pledged as collateral | (202) | (52) | |
Net derivative assets after deducting amounts not offset in the consolidated balance sheets | 385 | 726 | |
Net derivative liabilities after deducting amounts not offset in the consolidated balance sheets | 845 | 56 | |
Risk Management Purposes | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 30,142 | 11,152 |
Fair Value of Gross Derivative Assets | 1 | 0 | |
Fair Value of Gross Derivative Liabilities | 53 | 2 | |
Risk Management Purposes | Derivatives designated as hedging instruments | Swaps - fair value - receive fixed/pay floating | Interest rate swap | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 3,150 | 2,650 |
Fair Value of Gross Derivative Assets | 0 | 0 | |
Fair Value of Gross Derivative Liabilities | 0 | 0 | |
Risk Management Purposes | Derivatives designated as hedging instruments | Swaps - cash flow - receive fixed/pay floating rate | Interest rate swap | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1],[3] | 26,600 | 8,050 |
Fair Value of Gross Derivative Assets | [3] | 0 | 0 |
Fair Value of Gross Derivative Liabilities | [3] | 50 | 0 |
Risk Management Purposes | Derivatives used as economic hedges | Foreign exchange spot, forwards and swaps | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 392 | 452 |
Fair Value of Gross Derivative Assets | 1 | 0 | |
Fair Value of Gross Derivative Liabilities | 3 | 2 | |
Customer-initiated and other activities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 37,523 | 30,486 |
Fair Value of Gross Derivative Assets | 1,278 | 928 | |
Fair Value of Gross Derivative Liabilities | 1,642 | 745 | |
Customer-initiated and other activities | Interest rate caps and floors written | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 924 | 809 |
Fair Value of Gross Derivative Assets | 0 | 0 | |
Fair Value of Gross Derivative Liabilities | 25 | 3 | |
Customer-initiated and other activities | Interest rate caps and floors purchased | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 924 | 809 |
Fair Value of Gross Derivative Assets | 25 | 3 | |
Fair Value of Gross Derivative Liabilities | 0 | 0 | |
Customer-initiated and other activities | Interest rate swap | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 18,450 | 19,382 |
Fair Value of Gross Derivative Assets | 181 | 236 | |
Fair Value of Gross Derivative Liabilities | 569 | 66 | |
Customer-initiated and other activities | Interest rate contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 20,298 | 21,000 |
Fair Value of Gross Derivative Assets | 206 | 239 | |
Fair Value of Gross Derivative Liabilities | 594 | 69 | |
Customer-initiated and other activities | Energy caps and floors written | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 4,051 | 1,779 |
Fair Value of Gross Derivative Assets | 0 | 0 | |
Fair Value of Gross Derivative Liabilities | 430 | 203 | |
Customer-initiated and other activities | Energy caps and floors purchased | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 4,051 | 1,779 |
Fair Value of Gross Derivative Assets | 431 | 204 | |
Fair Value of Gross Derivative Liabilities | 0 | 0 | |
Customer-initiated and other activities | Energy swaps | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 6,419 | 4,212 |
Fair Value of Gross Derivative Assets | 589 | 466 | |
Fair Value of Gross Derivative Liabilities | 576 | 459 | |
Customer-initiated and other activities | Energy contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 14,521 | 7,770 |
Fair Value of Gross Derivative Assets | 1,020 | 670 | |
Fair Value of Gross Derivative Liabilities | 1,006 | 662 | |
Customer-initiated and other activities | Foreign exchange spot, options and swaps | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 2,704 | 1,716 |
Fair Value of Gross Derivative Assets | 52 | 19 | |
Fair Value of Gross Derivative Liabilities | $ 42 | $ 14 | |
[1]Notional or contractual amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected on the Consolidated Balance Sheets.[2]Net derivative assets are included in accrued income and other assets and net derivative liabilities are included in accrued expenses and other liabilities on the Consolidated Balance Sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and credit risk of the Corporation. The fair value of net derivative assets included credit valuation adjustments for counterparty credit risk of $2 million and $9 million at December 31, 2022 and 2021, respectively.[3]December 31, 2022 included $4.6 billion of forward starting swaps that will become effective on their contractual start dates in 2023 and 2024. |
Derivative And Credit-Related_5
Derivative And Credit-Related Financial Instruments Derivative And Credit-Related Financial Instruments (Schedule of Effects of Fair Value Hedging on the Consolidated Statements of Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Statement [Line Items] | ||||
Total interest on medium- and long-term debt | [1] | $ 87 | $ 35 | $ 80 |
Swaps - fair value - receive fixed/pay floating | Risk Management Purposes | Interest Rate Swap [Member] | ||||
Statement [Line Items] | ||||
Interest rate contracts: Hedged items | 112 | 102 | 109 | |
Interest rate contracts: Derivatives designated as hedging instruments | $ (25) | $ (68) | $ (51) | |
[1]Includes the effects of hedging. |
Derivative And Credit-Related_6
Derivative And Credit-Related Financial Instruments (Schedule Of Weighted Average Maturity And Interest Rates On Risk Management Cash Flow Swaps) (Details) - Variable rate loans - Swaps - cash flow - receive fixed/pay floating rate - Risk management purposes - Cash flow swap | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Weighted Average Remaining Maturity | 4 years 7 months 6 days | 2 years 4 months 24 days | |
Weighted Average Receive Rate | [1] | 2.35% | 1.84% |
Weighted Average Pay Rate | [1],[2] | 4.07% | 0.10% |
[1]Excludes forward starting swaps not effective as of the period shown. December 31, 2022 excluded $4.6 billion of forward starting swaps. December 31, 2021 excluded $3.0 billion of forward starting swaps.[2]Variable rates paid on receive fixed swaps designated as cash flow hedges are based on one-month LIBOR, BSBY or Secured Overnight Financing Rate (SOFR) rates in effect at December 31, 2022 and 2021. Derivative contracts with maturity dates beyond the LIBOR cessation date will fall back to the daily SOFR with a spread adjustment. |
Derivative And Credit-Related_7
Derivative And Credit-Related Financial Instruments (Schedule Of Weighted Average Maturity And Interest Rates On Risk Management Fair Value Swaps) (Details) - Interest Rate Swap [Member] - Swaps - fair value - receive fixed/pay floating - Risk management purposes - Medium- and long-term debt - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Carrying Value of Hedged Item | [1] | $ 3,024 | $ 2,796 |
Weighted Average Remaining Maturity | 3 years 10 months 24 days | 3 years 7 months 6 days | |
Weighted Average Receive Rate | 3.52% | 3.68% | |
Weighted Average Pay Rate | [2] | 4.90% | 1.08% |
[1]Included $(124) million and $145 million of cumulative hedging adjustments at December 31, 2022 and 2021, respectively, which included $4 million and $5 million, respectively, of hedging adjustment on a discontinued hedging relationship.[2]Floating rates paid on receive fixed swaps designated as fair value hedges are based on one-month LIBOR rates in effect at December 31, 2022 and 2021. Derivative contracts with maturity dates beyond the LIBOR cessation date will fall back to the daily SOFR with a spread adjustment. |
Derivative And Credit-Related_8
Derivative And Credit-Related Financial Instruments (Schedule Of Net Gains Recognized In Income On Customer-Initiated Derivatives) (Details) - Customer-initiated and other activities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains recognized in income on customer-initiated derivative instruments | $ 109 | $ 99 | $ 67 |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains recognized in income on customer-initiated derivative instruments | 34 | 36 | 26 |
Energy Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains recognized in income on customer-initiated derivative instruments | 28 | 18 | 1 |
Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains recognized in income on customer-initiated derivative instruments | $ 47 | $ 45 | $ 40 |
Derivative And Credit-Related_9
Derivative And Credit-Related Financial Instruments (Schedule Of Financial Instruments With Off-Balance Sheet Credit Risk) (Details) - Maximum - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Unused Commitments to Extend Credit | ||
Loss contingency, estimate of possible loss, maximum | $ 34,817 | $ 29,464 |
Commercial And Other | Unused Commitments to Extend Credit | ||
Loss contingency, estimate of possible loss, maximum | 30,800 | 25,910 |
Bankcard, Revolving Check Credit And Home Equity Loan Commitments | Unused Commitments to Extend Credit | ||
Loss contingency, estimate of possible loss, maximum | 4,017 | 3,554 |
Standby Letters Of Credit | ||
Loss contingency, estimate of possible loss, maximum | 3,712 | 3,378 |
Commercial Letters Of Credit | ||
Loss contingency, estimate of possible loss, maximum | $ 39 | $ 44 |
Derivative And Credit-Relate_10
Derivative And Credit-Related Financial Instruments (Summary Of Criticized Letters Of Credit) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Total criticized standby and commercial letters of credit | $ 37 | $ 37 |
As a percentage of total outstanding standby and commercial letters of credit | 1% | 1.10% |
Variable Interest Entities (V_3
Variable Interest Entities (VIEs) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||
Unfunded commitments to fund tax credit entities | $ 208 | ||
Amount of financial or other support not contractually required provided by the Corporation to VIEs | 0 | $ 0 | $ 0 |
Low Income Housing Tax Credit Entities | |||
Variable Interest Entity [Line Items] | |||
Exposure to loss as a result of involvement with VIEs | 475 | ||
Other Tax Credit Entities | |||
Variable Interest Entity [Line Items] | |||
Exposure to loss as a result of involvement with VIEs | $ 31 |
Variable Interest Entities (V_4
Variable Interest Entities (VIEs) (Impact Of VIEs On The Consolidated Statements Of Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||
Other noninterest income | $ 43 | $ 99 | $ 91 |
Provision for income taxes | 325 | 322 | 124 |
Variable Interest Entity | |||
Variable Interest Entity [Line Items] | |||
Other noninterest income | 0 | 1 | 1 |
Provision for income taxes | (14) | (14) | (12) |
Low income housing tax credits | Variable Interest Entity | |||
Variable Interest Entity [Line Items] | |||
Provision for income taxes, amortization of LIHTC investments | 72 | 71 | 67 |
Provision for income taxes, affordable housing tax credits and other tax benefits | (68) | (68) | (63) |
Other tax benefits related to tax credit entities | Variable Interest Entity | |||
Variable Interest Entity [Line Items] | |||
Provision for income taxes, affordable housing tax credits and other tax benefits | $ (18) | $ (17) | $ (16) |
Deposits Deposits (Narrative) (
Deposits Deposits (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Domestic certificates of deposit of $250,000 or more | $ 478 | $ 627 |
Foreign office time deposits in denominations of $250,000 or more | $ 51 | $ 50 |
Deposits Deposits (Schedule of
Deposits Deposits (Schedule of Maturities of Certificates of Deposit and Other Deposits with a Stated Maturity) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Deposits [Abstract] | |
2023 | $ 1,789 |
2024 | 88 |
2025 | 24 |
2026 | 18 |
2027 | 13 |
Thereafter | 5 |
Total | $ 1,937 |
Deposits Deposits (Schedule o_2
Deposits Deposits (Schedule of Maturities of Domestic Deposits of One Hundred Thousand or More) (Details) - Domestic certificates of deposit and other deposits - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Three Months or Less | $ 220 | $ 436 |
Over three months to six months | 136 | 314 |
Over six months to twelve months | 590 | 319 |
Over twelve months | 49 | 74 |
Total | $ 995 | $ 1,143 |
Short-term Borrowings Short-t_2
Short-term Borrowings Short-term Borrowings (Narrative) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Short-Term Debt [Abstract] | |
Pledged to the FHLB as collateral for potential future borrowings - real estate related loans | $ 9,500 |
Pledged to the FHLB as collateral for potential future borrowings - investment securities | 1,000 |
Potential future borrowings | 7,200 |
Pledged loans to provide collateralized borrowing with the FRB | 24,500 |
Available collateralized borrowing with the FRB | $ 19,600 |
Short-term Borrowings Short-t_3
Short-term Borrowings Short-term Borrowings (Summary of Short-term Borrowings) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | |||
Amount outstanding at year-end | $ 3,211 | $ 0 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | |||
Short-term Debt [Line Items] | |||
Amount outstanding at year-end | $ 11 | $ 0 | $ 0 |
Weighted average interest rate at year-end | 4.32% | 0% | 0% |
Maximum month-end balance during the year | $ 1,106 | $ 2 | $ 1,513 |
Average balance outstanding during the year | $ 82 | $ 2 | $ 30 |
Weighted average interest rate during the year | 3.28% | 0.06% | 0.97% |
Other Short-term Borrowings | |||
Short-term Debt [Line Items] | |||
Amount outstanding at year-end | $ 3,200 | $ 0 | $ 0 |
Weighted average interest rate at year-end | 4.54% | 0% | 0% |
Maximum month-end balance during the year | $ 3,200 | $ 0 | $ 1,250 |
Average balance outstanding during the year | $ 354 | $ 0 | $ 284 |
Weighted average interest rate during the year | 4.08% | 0% | 0.25% |
Medium- And Long-Term Debt (Nar
Medium- And Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Fixed-to-floating rate subordinated notes | $ 500 | |
Fair value fixed-to-floating rate swap | 2.67% | |
Unamortized debt issuance costs | $ 9 | $ 7 |
Subsidiaries | ||
Debt Instrument [Line Items] | ||
Long-term Federal Home Loan Bank advances | $ 0 | $ 0 |
5.332% subordinated notes due 2033 | Subsidiaries | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Maturity Year | 2033 | |
Stated interest rate | 5.332% |
Medium- And Long-Term Debt (Sch
Medium- And Long-Term Debt (Schedule Of Medium- And Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Debt Instrument [Line Items] | |||
Total medium- and long-term debt | $ 3,024 | $ 2,796 | |
Parent Company | |||
Debt Instrument [Line Items] | |||
Medium- and long-term notes | 1,356 | 1,471 | |
Total medium- and long-term debt | 1,593 | 1,736 | |
Subsidiaries | |||
Debt Instrument [Line Items] | |||
Subordinated notes | 955 | 553 | |
Total medium- and long-term debt | 1,431 | 1,060 | |
3.80% subordinated notes due 2026 | Parent Company | |||
Debt Instrument [Line Items] | |||
Subordinated notes | [1] | $ 237 | 265 |
Stated interest rate | 3.80% | ||
Maturity year | 2026 | ||
3.70% notes due 2023 | Parent Company | |||
Debt Instrument [Line Items] | |||
Medium- and long-term notes | [1] | $ 841 | 877 |
Stated interest rate | 3.70% | ||
Maturity year | 2023 | ||
4.00% notes due 2029 | Parent Company | |||
Debt Instrument [Line Items] | |||
Medium- and long-term notes | [1] | $ 515 | 594 |
Stated interest rate | 4% | ||
Maturity year | 2029 | ||
4.00% subordinated notes due 2025 | Subsidiaries | |||
Debt Instrument [Line Items] | |||
Subordinated notes | [1] | $ 331 | 363 |
Stated interest rate | 4% | ||
Maturity year | 2025 | ||
7.875% subordinated notes due 2026 | Subsidiaries | |||
Debt Instrument [Line Items] | |||
Subordinated notes | [1] | $ 165 | 190 |
Stated interest rate | 7.875% | ||
Maturity year | 2026 | ||
5.332% subordinated notes due 2033 | Subsidiaries | |||
Debt Instrument [Line Items] | |||
Subordinated notes | [1] | $ 459 | 0 |
Stated interest rate | 5.332% | ||
Maturity year | 2033 | ||
2.50% notes due 2024 | Subsidiaries | |||
Debt Instrument [Line Items] | |||
Medium- and long-term notes | [1] | $ 476 | $ 507 |
Stated interest rate | 2.50% | ||
Maturity year | 2024 | ||
[1]The fixed interest rates on these notes have been swapped to a variable rate and designated in a hedging relationship. Accordingly, carrying value has been adjusted to reflect the change in the fair value of the debt as a result of changes in the benchmark rate. |
Medium- And Long-Term Debt Sche
Medium- And Long-Term Debt Schedule of Maturities of Medium- and Long-term Debt (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 850 |
2024 | 500 |
2025 | 350 |
2026 | 400 |
2027 | 0 |
Thereafter | 1,050 |
Total | $ 3,150 |
Shareholders' Equity Shareholde
Shareholders' Equity Shareholders' Equity (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Depository Shares, Issued | 400,000 | ||
Preferred Stock, Dividend Rate, Percentage | 5.625% | ||
Preferred Stock, Liquidation Preference, Value | $ 100,000 | ||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | ||
Proceeds from Issuance of Preferred Stock, Preference Stock, and Warrants | $ 400,000,000 | ||
Issuance of preferred stock | $ 0 | $ 0 | $ 394,000,000 |
Stock Option | |||
Common stock shares reserved for future issuance | 4,200,000 | ||
Common Stock | |||
Shares repurchased under equity repurchase program | (400,000) | (9,500,000) | (3,400,000) |
Equity Repurchase Program | Common Stock | |||
Shares repurchased under equity repurchase program | 377,000 | 9,500,000 | 3,200,000 |
Average cost per share of shares repurchased under equity repurchase program | $ 92.61 | $ 75.82 | $ 58.55 |
Stock repurchased during the period | $ 35,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Schedule Of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Balance at beginning of period, net of tax | $ (99) | $ 211 | $ 65 | |||
Net unrealized holding (losses) gains arising during the period | (2,903) | (406) | 191 | |||
Investment securities, Less: (Benefit) provision for income taxes | (683) | (96) | 45 | |||
Investment securities, Change in net unrealized (losses) gains on investment securities, net of tax | (2,220) | (310) | 146 | |||
Balance at end of period, net of tax | (2,319) | (99) | 211 | |||
Cash Flow Hedges, Balance at beginning of period, net of tax | 55 | [1] | 155 | [1] | 34 | |
Net cash flow hedge (losses) gains arising during the period before income taxes | (1,329) | (35) | 229 | |||
Cash flow hedges, Less: (Benefit) provision for income taxes | (313) | (8) | 56 | |||
Change in net cash flow hedge (losses) gains arising during the period, net of tax | (1,016) | (27) | 173 | |||
Net cash flow hedge (losses) gains recognized in interest and fees on loans before taxes | (25) | 95 | 70 | |||
Benefit plans, Less: (Benefit) provision for income taxes | (6) | 22 | 18 | |||
Reclassification adjustment for net cash flow hedge (losses) gains included in net income, net of tax | (19) | 73 | 52 | |||
Change in net cash flow hedge (losses) gains, net of tax | (997) | (100) | 121 | |||
Cash Flow Hedges, Balance at end of period, net of tax | [1] | (942) | 55 | 155 | ||
Benefit plans, Balance at beginning of period, net of tax | (168) | (302) | (415) | |||
Benefit plans, Actuarial (loss) gain arising during the period | (415) | 159 | 128 | |||
Prior service credit arising during the period | 0 | 1 | 0 | |||
Actuarial gain (loss) arising during the period | (415) | 160 | 128 | |||
Benefit plans, Less: (Benefit) provision for income taxes | (98) | 38 | 31 | |||
Benefit plans, Net defined benefit pension and other postretirement adjustment arising during the period, net of tax | (317) | 122 | 97 | |||
Benefit plans, Amortization of actuarial net loss | 28 | 40 | 47 | |||
Benefit plans, Amortization of prior service credit | (23) | (25) | (27) | |||
Benefit plans, Total amounts recognized in other noninterest expenses | 5 | 15 | 20 | |||
Benefit plans, Less: Provision for income taxes | 1 | 3 | 4 | |||
Benefit plans, Adjustment for amounts recognized as components of net periodic benefit cost during the period, net of tax | 4 | 12 | 16 | |||
Benefit plans, Change in defined benefit pension and other postretirement plans adjustment, net of tax | (313) | 134 | 113 | |||
Benefit plans, Balance at end of period, net of tax | (481) | (168) | (302) | |||
Total accumulated other comprehensive loss at end of period, net of tax | $ (3,742) | $ (212) | $ 64 | |||
[1]The Corporation expects to reclassify $428 million of losses, net of tax, from accumulated other comprehensive loss to earnings over the next twelve months if interest yield curves and notional amounts remain at December 31, 2022 levels. |
Net Income Per Common Share (Ba
Net Income Per Common Share (Basic And Diluted Net Income Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net income | $ 1,151 | $ 1,168 | $ 497 |
Less income allocated to participating securities | 6 | 5 | 2 |
Preferred stock dividends | 23 | 23 | 13 |
Net income attributable to common shares | $ 1,122 | $ 1,140 | $ 482 |
Basic average common shares | 131 | 135 | 139 |
Basic net income per common share | $ 8.56 | $ 8.45 | $ 3.45 |
Basic average common shares | 131 | 135 | 139 |
Net effect of the assumed exercise of stock awards | 2 | 2 | 1 |
Diluted average common shares | 133 | 137 | 140 |
Diluted net income per common share | $ 8.47 | $ 8.35 | $ 3.43 |
Net Income Per Common Share (Sc
Net Income Per Common Share (Schedule of Average Shares Excluded From Diluted Net Income Per Common Share Computation) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Average outstanding options | 543,000 | 438,000 | 1,498,000 |
Stock Options | Minimum | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Range of exercise prices | $ 70.18 | $ 79.01 | $ 49.20 |
Stock Options | Maximum | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Range of exercise prices | $ 95.25 | $ 95.25 | $ 95.25 |
Share-Based Compensation Shar_2
Share-Based Compensation Share-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Options exercised policy | 10 years | ||
Number of shares originally available for grant | 7,700,000 | ||
Shares available for grant | 4,500,000 | ||
Closing stock price per share | $ 66.85 | ||
Total intrinsic value of stock options exercised | $ 17 | $ 29 | $ 6 |
Shares in treasury | 97,197,962 | 97,476,872 | |
Restricted Stock | |||
Total fair value of restricted stock awards that fully vested | $ 4 | $ 8 | 17 |
Restricted Stock Units (RSUs) | |||
Total fair value of restricted stock awards that fully vested | $ 19 | $ 21 | $ 12 |
Minimum | Restricted Stock Units (RSUs) | |||
Share-based compensation vesting period | 3 years | ||
Minimum | Stock Options | |||
Share-based compensation vesting period | 1 year | ||
Maximum | Restricted Stock Units (RSUs) | |||
Share-based compensation vesting period | 5 years | ||
Maximum | Stock Options | |||
Share-based compensation vesting period | 4 years |
Share-Based Compensation (Summa
Share-Based Compensation (Summary of Components of Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |||
Total share-based compensation expense | $ 60 | $ 41 | $ 24 |
Related tax benefits recognized in net income | $ 14 | $ 10 | $ 6 |
Share-Based Compensation (Unrec
Share-Based Compensation (Unrecognized Compensation Expense) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Total unrecognized share-based compensation expense | $ 38 |
Weighted-average expected recognition period (in years) | 2 years 1 month 6 days |
Share-Based Compensation (Estim
Share-Based Compensation (Estimated Weighted-Average Grant-Date Fair Value Per Option Share and the Underlying Binomial Option-Pricing Model Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |||
Weighted-average grant-date fair value per option | $ 25.31 | $ 18.36 | $ 13.03 |
Risk-free interest rates | 1.78% | 1.05% | 1.65% |
Expected dividend yield | 4% | 4% | 4.14% |
Expected volatility factors of the market price of Comerica common stock | 34% | 39% | 27% |
Expected option life (in years) | 8 years | 7 years 9 months 18 days | 8 years 4 months 24 days |
Share-Based Compensation (Sum_2
Share-Based Compensation (Summary of the Corporation's Stock Option Activity and Related Information) (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Number of options outstanding at January 1, 2022 | shares | 2,244 |
Options granted | shares | 183 |
Options forfeited or expired | shares | (32) |
Options exercised | shares | (387) |
Number of options outstanding at December 31, 2022 | shares | 2,008 |
Number of options exercisable at December 31, 2022 | shares | 1,379 |
Options outstanding at January 1, 2022 (Weighted-average exercise price) | $ / shares | $ 57.50 |
Options granted (Weighted-average exercise price) | $ / shares | 92.58 |
Options forfeited or expired (Weighted-average exercise price) | $ / shares | 76.55 |
Options exercised (Weighted-average exercise price) | $ / shares | 50.64 |
Options outstanding at December 31, 2022 Weighted-average exercise price) | $ / shares | 61.71 |
Options exercisable at December 31, 2022 (Weighted-average exercise price) | $ / shares | $ 57.20 |
Weighted-average remaining contractual term in years at December 31, 2022 | 5 years 1 month 6 days |
Weighted-average remaining contractual term in years exercisable at December 31, 2022 | 3 years 10 months 24 days |
Aggregate intrinsic value outstanding at December 31, 2022 | $ | $ 22 |
Aggregate intrinsic value exercisable at December 31, 2022 | $ | $ 20 |
Share-Based Compensation (Sum_3
Share-Based Compensation (Summary of the Corporation's Restricted Stock Activity and Related Information) (Details) - Restricted Stock shares in Thousands | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Restricted shares outstanding at January 1, 2022 | shares | 41 |
Restricted shares forfeited | shares | 0 |
Restricted shares vested | shares | (41) |
Restricted shares outstanding at December 31, 2022 | shares | 0 |
Restricted shares outstanding at January 1, 2022 (Weighted-average grant-date fair value) | $ / shares | $ 61.64 |
Restricted shares forfeited (Weighted-average grant-date fair value) | $ / shares | 0 |
Restricted shares vested (Weighted-average grant-date fair value) | $ / shares | 67.69 |
Restricted shares outstanding at December 31, 2022 (Weighted-average grant-date fair value) | $ / shares | $ 0 |
Share-Based Compensation Summar
Share-Based Compensation Summary of the Corporation's Restricted Stock Unit Activity and Related Information (Details) - Restricted Stock Units (RSUs) shares in Thousands | 12 Months Ended | |
Dec. 31, 2022 $ / shares shares | ||
Service-Based Units | ||
Restricted shares outstanding at January 1, 2022 | shares | 1,346 | |
Non-vested shares granted | shares | 361 | |
Restricted shares forfeited | shares | (70) | |
Restricted shares vested | shares | (232) | [1] |
Restricted shares outstanding at December 31, 2022 | shares | 1,405 | |
Restricted shares outstanding at January 1, 2022 (Weighted-average grant-date fair value) | $ / shares | $ 59.18 | |
Non-vested shares granted (Weighted-average grant-date fair value) | $ / shares | 84.14 | |
Restricted shares forfeited (Weighted-average grant-date fair value) | $ / shares | 65.24 | |
Restricted shares vested (Weighted-average grant-date fair value) | $ / shares | 65.36 | [1] |
Restricted shares outstanding at December 31, 2022 (Weighted-average grant-date fair value) | $ / shares | $ 64.27 | |
Performance-Based Units | ||
Restricted shares outstanding at January 1, 2022 | shares | 816 | |
Non-vested shares granted | shares | 182 | |
Restricted shares forfeited | shares | (34) | |
Restricted shares vested | shares | (220) | [1] |
Restricted shares outstanding at December 31, 2022 | shares | 744 | |
Restricted shares outstanding at January 1, 2022 (Weighted-average grant-date fair value) | $ / shares | $ 63.12 | |
Non-vested shares granted (Weighted-average grant-date fair value) | $ / shares | 87.45 | |
Restricted shares forfeited (Weighted-average grant-date fair value) | $ / shares | 70.40 | |
Restricted shares vested (Weighted-average grant-date fair value) | $ / shares | 79.13 | [1] |
Restricted shares outstanding at December 31, 2022 (Weighted-average grant-date fair value) | $ / shares | $ 64.01 | |
[1]Includes performance-based units valued at zero, as they did not meet the minimum performance threshold. |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets in defined benefit pension plan | $ 2,499 | $ 3,454 | |
Estimated employer contributions for defined benefit plans for the next year | $ 0 | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100% | ||
Percent of qualified earnings contributed by employee matched by the Corporation | 4% | ||
Defined contribution plan expense | $ 24 | 24 | $ 24 |
Qualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Estimated average life of pension plan in years | 9 | ||
Fair value of plan assets in defined benefit pension plan | $ 2,508 | 3,462 | 3,350 |
Non-Qualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets in defined benefit pension plan | $ 0 | $ 0 | $ 0 |
Minimum | Equity securities | Qualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 40% | ||
Minimum | Debt securities | Qualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 50% | ||
Maximum | Equity securities | Qualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 50% | ||
Maximum | Debt securities | Qualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 60% |
Employee Benefit Plans (Reconci
Employee Benefit Plans (Reconciliations of Plan assets and the Projected Benefit Obligation, the Weighted-Average Assumptions Used to Determine Year-End Benefit Obligations, and the Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Fair value of plan assets at January 1 | $ 3,454 | |||
Fair value of plan assets at December 31 | 2,499 | $ 3,454 | ||
Actuarial (loss) gain arising during the period | (415) | 159 | $ 128 | |
Qualified Plan | ||||
Fair value of plan assets at January 1 | 3,462 | 3,350 | ||
Actual return on plan assets | (777) | 291 | 537 | |
Plan participants' contributions | 0 | 0 | ||
Benefits paid | (177) | (179) | ||
Fair value of plan assets at December 31 | 2,508 | 3,462 | 3,350 | |
Projected benefit obligation at January 1 | 2,214 | 2,327 | ||
Service cost | [1] | 37 | 38 | 32 |
Interest cost | 62 | 61 | 70 | |
Actuarial (loss) gain arising during the period | (525) | (69) | ||
Plan participants' contributions | 0 | 0 | ||
Plan amendments | [2] | 0 | 36 | |
Projected benefit obligation at December 31 | 1,611 | 2,214 | 2,327 | |
Accumulated benefit obligation | 1,598 | 2,199 | ||
Funded Status at December 31 | [3],[4] | $ 897 | $ 1,248 | |
Weighted-average assumptions, discount rate, percent | 5.60% | 2.96% | ||
Weighted-average assumptions, rate of compensation increase, percent | 4.25% | 4% | ||
Net actuarial loss | $ (638) | $ (205) | ||
Amortization of prior service credit | 33 | 48 | ||
Balance at December 31 | $ (605) | $ (157) | ||
Qualified Plan | Minimum | ||||
Weighted-average assumptions, interest credit rating | 399% | 379% | ||
Qualified Plan | Maximum | ||||
Weighted-average assumptions, interest credit rating | 525% | 500% | ||
Non-Qualified Plan | ||||
Fair value of plan assets at January 1 | $ 0 | $ 0 | ||
Actual return on plan assets | 0 | 0 | ||
Plan participants' contributions | 0 | 0 | ||
Benefits paid | (15) | (15) | ||
Fair value of plan assets at December 31 | 0 | 0 | 0 | |
Projected benefit obligation at January 1 | 207 | 252 | ||
Service cost | [1] | 2 | 2 | 1 |
Interest cost | 6 | 7 | 8 | |
Actuarial (loss) gain arising during the period | (37) | (3) | ||
Plan participants' contributions | 0 | 0 | ||
Plan amendments | [2] | 0 | (36) | |
Projected benefit obligation at December 31 | 163 | 207 | 252 | |
Accumulated benefit obligation | 161 | 204 | ||
Funded Status at December 31 | [3],[4] | $ (163) | $ (207) | |
Weighted-average assumptions, discount rate, percent | 5.60% | 2.96% | ||
Weighted-average assumptions, rate of compensation increase, percent | 4.25% | 4% | ||
Net actuarial loss | $ (46) | $ (92) | ||
Amortization of prior service credit | 38 | 47 | ||
Balance at December 31 | $ (8) | $ (45) | ||
Non-Qualified Plan | Minimum | ||||
Weighted-average assumptions, interest credit rating | 399% | 379% | ||
Non-Qualified Plan | Maximum | ||||
Weighted-average assumptions, interest credit rating | 525% | 500% | ||
Postretirement Benefit Plan | ||||
Fair value of plan assets at January 1 | $ 53 | $ 57 | ||
Actual return on plan assets | (4) | (1) | 3 | |
Plan participants' contributions | 0 | 1 | ||
Benefits paid | (3) | (4) | ||
Fair value of plan assets at December 31 | 46 | 53 | 57 | |
Projected benefit obligation at January 1 | 31 | 35 | ||
Service cost | 0 | 0 | ||
Interest cost | 1 | 1 | 1 | |
Actuarial (loss) gain arising during the period | (8) | (1) | ||
Plan participants' contributions | 0 | 1 | ||
Plan amendments | [2] | 0 | (1) | |
Projected benefit obligation at December 31 | 21 | 31 | $ 35 | |
Accumulated benefit obligation | 21 | 31 | ||
Funded Status at December 31 | [3],[4] | $ 25 | $ 22 | |
Weighted-average assumptions, discount rate, percent | 5.71% | 2.79% | ||
Net actuarial loss | $ (10) | $ (11) | ||
Amortization of prior service credit | 2 | 2 | ||
Balance at December 31 | $ (8) | $ (9) | ||
[1]Included in salaries and benefits expense on the Consolidated Statements of Income.[2]The qualified defined benefit pension plan was amended in 2021 to include a flat dollar benefit for specified participants that would otherwise have been payable from the non-qualified defined benefit pension plan, resulting in a shift in projected benefit obligation from the non-qualified plan to the qualified plan.[3]Based on projected benefit obligation for defined benefit pension plans and accumulated benefit obligation for postretirement benefit plan.[4]The Corporation recognizes the overfunded and underfunded status of the plans in accrued income and other assets and accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheets. |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Changes, Net of Tax, in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Actuarial gain (loss) arising during the period | $ (415) | $ 160 | $ 128 |
Amortization of actuarial net loss | 28 | 40 | 47 |
Amortization of prior service credit | (23) | (25) | (27) |
Total recognized in other comprehensive loss | (410) | $ 175 | $ 148 |
Qualified Plan | |||
Actuarial gain (loss) arising during the period | (453) | ||
Amortization of actuarial net loss | 19 | ||
Amortization of prior service credit | (14) | ||
Total recognized in other comprehensive loss | (448) | ||
Non-Qualified Plan | |||
Actuarial gain (loss) arising during the period | 37 | ||
Amortization of actuarial net loss | 9 | ||
Amortization of prior service credit | (9) | ||
Total recognized in other comprehensive loss | 37 | ||
Postretirement Benefit Plan | |||
Actuarial gain (loss) arising during the period | 1 | ||
Amortization of actuarial net loss | 0 | ||
Amortization of prior service credit | 0 | ||
Total recognized in other comprehensive loss | $ 1 |
Employee Benefit Plans Employee
Employee Benefit Plans Employee Benefit Plans (Net Periodic Defined Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic defined benefit (credit) cost | $ (91) | $ (81) | $ (55) | |
Qualified Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | [1] | 37 | 38 | 32 |
Interest cost | 62 | 61 | 70 | |
Expected return on plan assets | (201) | (202) | (185) | |
Amortization of prior service credit | (14) | (19) | (19) | |
Amortization of actuarial net loss | 19 | 29 | 38 | |
Total other components of net benefit credit or cost | [2] | (134) | (131) | (96) |
Net periodic defined benefit (credit) cost | (97) | (93) | (64) | |
Actual return on plan assets | $ (777) | $ 291 | $ 537 | |
Actual rate of return on plan assets, percent | (23.02%) | 8.92% | 18.72% | |
Weighted-average assumptions, discount rate, percent | 2.96% | 2.71% | 3.43% | |
Weighted-average assumptions, expected long-term return on plan assets, percent | 6.50% | 6.50% | 6.50% | |
Weighted-average assumptions, rate of compensation increase, percent | 4% | 4% | 4% | |
Non-Qualified Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | [1] | $ 2 | $ 2 | $ 1 |
Interest cost | 6 | 7 | 8 | |
Expected return on plan assets | 0 | 0 | 0 | |
Amortization of prior service credit | (9) | (6) | (8) | |
Amortization of actuarial net loss | 9 | 11 | 9 | |
Total other components of net benefit credit or cost | [2] | 6 | 12 | 9 |
Net periodic defined benefit (credit) cost | 8 | 14 | $ 10 | |
Actual return on plan assets | $ 0 | $ 0 | ||
Weighted-average assumptions, discount rate, percent | 2.96% | 2.71% | 3.43% | |
Weighted-average assumptions, rate of compensation increase, percent | 4% | 4% | 4% | |
Postretirement Benefit Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | ||
Interest cost | 1 | 1 | $ 1 | |
Expected return on plan assets | (3) | (3) | (2) | |
Net periodic defined benefit (credit) cost | (2) | (2) | (1) | |
Actual return on plan assets | $ (4) | $ (1) | $ 3 | |
Actual rate of return on plan assets, percent | (8.24%) | (2.25%) | 6% | |
Weighted-average assumptions, discount rate, percent | 2.79% | 2.43% | 3.26% | |
Weighted-average assumptions, expected long-term return on plan assets, percent | 5% | 5% | 5% | |
Health care cost trend rate assumed | [3] | 6% | 6.25% | |
Rate to which the healthcare cost trend rate is assumed to decline (the ultimate trend rate), percent | [3] | 4.50% | 4.50% | |
Defined Benefit Plan Year That Reaches Ultimate Trend Rate In Current Expense | [3] | 2027 | 2027 | |
[1]Included in salaries and benefits expense on the Consolidated Statements of Income.[2]Included in other noninterest expenses on the Consolidated Statements of Income.[3]Beginning January 1, 2022, the healthcare cost trend assumption is no longer a relevant assumption due to the change from a self-insured plan to the Medicare and pre-65 individual marketplace with a funded Health Reimbursement Arrangement account. |
Employee Benefit Plans (Fair Va
Employee Benefit Plans (Fair Values of the Corporation's Qualified Defined Benefit Pension Plan Investments Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair value of plan assets in qualified defined benefit pension plan, Excluding assets valued at net asset value | $ 1,269 | $ 1,569 |
Fair value of plan assets in qualified defined benefit pension plan | 2,499 | 3,454 |
Debt securities | U.S. Treasury and other U.S. government agency securities | ||
Fair value of plan assets in qualified defined benefit pension plan | 534 | 599 |
Debt securities | Corporate and municipal bonds and notes | ||
Fair value of plan assets in qualified defined benefit pension plan | 676 | 893 |
Debt securities | Mortgage-backed secutities | ||
Fair value of plan assets in qualified defined benefit pension plan | 20 | 27 |
Debt securities | Collective investments funds | ||
Fair value of plan assets in qualified defined benefit pension plan | 1,230 | 1,885 |
Private placements | Private placements | ||
Fair value of plan assets in qualified defined benefit pension plan | 39 | 50 |
Level 1 | ||
Fair value of plan assets in qualified defined benefit pension plan, Excluding assets valued at net asset value | 531 | 595 |
Level 1 | Debt securities | U.S. Treasury and other U.S. government agency securities | ||
Fair value of plan assets in qualified defined benefit pension plan | 531 | 595 |
Level 1 | Debt securities | Corporate and municipal bonds and notes | ||
Fair value of plan assets in qualified defined benefit pension plan | 0 | 0 |
Level 1 | Debt securities | Mortgage-backed secutities | ||
Fair value of plan assets in qualified defined benefit pension plan | 0 | 0 |
Level 1 | Private placements | Private placements | ||
Fair value of plan assets in qualified defined benefit pension plan | 0 | 0 |
Level 2 | ||
Fair value of plan assets in qualified defined benefit pension plan, Excluding assets valued at net asset value | 699 | 924 |
Level 2 | Debt securities | U.S. Treasury and other U.S. government agency securities | ||
Fair value of plan assets in qualified defined benefit pension plan | 3 | 4 |
Level 2 | Debt securities | Corporate and municipal bonds and notes | ||
Fair value of plan assets in qualified defined benefit pension plan | 676 | 893 |
Level 2 | Debt securities | Mortgage-backed secutities | ||
Fair value of plan assets in qualified defined benefit pension plan | 20 | 27 |
Level 2 | Private placements | Private placements | ||
Fair value of plan assets in qualified defined benefit pension plan | 0 | 0 |
Level 3 | ||
Fair value of plan assets in qualified defined benefit pension plan, Excluding assets valued at net asset value | 39 | 50 |
Level 3 | Debt securities | U.S. Treasury and other U.S. government agency securities | ||
Fair value of plan assets in qualified defined benefit pension plan | 0 | 0 |
Level 3 | Debt securities | Corporate and municipal bonds and notes | ||
Fair value of plan assets in qualified defined benefit pension plan | 0 | 0 |
Level 3 | Debt securities | Mortgage-backed secutities | ||
Fair value of plan assets in qualified defined benefit pension plan | 0 | 0 |
Level 3 | Private placements | Private placements | ||
Fair value of plan assets in qualified defined benefit pension plan | $ 39 | $ 50 |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary of Changes in the Corporation's Qualified Defined Benefit Pension Plan's Level 3 Investments Measured at Fair Value on a Recurring Basis) (Details) - Private placements - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance at beginning of period | $ 50 | $ 58 |
Gains (Losses) Realized | (3) | 2 |
Gains (Losses) Unrealized | (12) | (4) |
Purchases | 38 | 44 |
Sales | (34) | (50) |
Balance at end of period | $ 39 | $ 50 |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of Estimated Future Employer Contributions) (Details) $ in Millions | Dec. 31, 2022 USD ($) | |
Qualified Plan | ||
2023 | $ 168 | |
2024 | 140 | |
2025 | 139 | |
2026 | 143 | |
2027 | 140 | |
2028 - 2032 | 663 | |
Non-Qualified Plan | ||
2023 | 14 | |
2024 | 15 | |
2025 | 15 | |
2026 | 15 | |
2027 | 14 | |
2028 - 2032 | 70 | |
Postretirement Benefit Plan | ||
2023 | 3 | [1] |
2024 | 3 | [1] |
2025 | 3 | [1] |
2026 | 2 | [1] |
2027 | 2 | [1] |
2028 - 2032 | $ 8 | [1] |
[1]Estimated benefit payments in the postretirement benefit plan are net of estimated Medicare subsidies. |
Income Taxes And Tax-Related _3
Income Taxes And Tax-Related Items Income Taxes And Tax-Related Items (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income before income taxes | $ 1,476 | $ 1,490 | $ 621 |
Foreign-source income | 48 | ||
Liability for tax-related interest and penalties | 5 | 6 | |
Unrecognized tax benefits that would impact the effective tax rate | 13 | 14 | |
Unrecognized Tax Benefits is Reasonably Possible, taxes | 4 | ||
Unrecognized Tax Benefits, interest and penalties | 3 | ||
Non-income tax benefit | 4 | ||
Non-income tax benefit recognized in following year | 7 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Federal | 4 | 3 | |
State net operating loss carryforwards | 2 | 3 | |
Deferred tax assets, federal valuation allowance | 4 | 3 | |
Deferred tax assets, state valuation allowance | $ 1 | $ 2 | |
Minimum | |||
Operating Loss Carryforwards, Expiration Date - Federal | 2028 | ||
Operating Loss Carryforwards, Expiration Date - State | 2023 | ||
Minimum | California | |||
Open Tax Year | 2006 | ||
Maximum | |||
Operating Loss Carryforwards, Expiration Date - Federal | 2031 | ||
Operating Loss Carryforwards, Expiration Date - State | 2041 | ||
Maximum | California | |||
Open Tax Year | 2007 |
Income Taxes And Tax-Related _4
Income Taxes And Tax-Related Items Current and Deferred Components of the Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current federal income tax | $ 296 | $ 212 | $ 171 |
Current foreign income tax | 6 | 5 | 5 |
Current state and local income tax | 50 | 26 | 30 |
Total current income tax | 352 | 243 | 206 |
Deferred federal income tax | (24) | 62 | (73) |
Deferred state and local income tax | (3) | 17 | (9) |
Total deferred income tax | (27) | 79 | (82) |
Provision for income taxes | $ 325 | $ 322 | $ 124 |
Income Taxes And Tax-Related _5
Income Taxes And Tax-Related Items Reconciliation of Expected Income Tax Expense at the Federal Statutory Rate to the Corporation's Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Tax based on federal statutory rate, amount | $ 310 | $ 313 | $ 130 |
Tax based on federal statutory rate, percent | 21% | 21% | 21% |
State income taxes, amount | $ 36 | $ 35 | $ 18 |
State income taxes, percent | 2.50% | 2.40% | 2.90% |
Affordable housing and historic credits, amount | $ (13) | $ (13) | $ (12) |
Affordable housing and historic credits, percent | (0.90%) | (0.90%) | (1.90%) |
Bank-owned life insurance, amount | $ (10) | $ (10) | $ (10) |
Bank-owned life insurance, percent | (0.70%) | (0.60%) | (1.60%) |
FDIC insurance expense, amount | $ 6 | $ 5 | $ 7 |
FDIC insurance expense, percent | 0.40% | 0.30% | 1.10% |
Employee Stock Transactions, amount | $ (3) | $ (3) | $ (1) |
Employee Stock Transactions, percent | (0.20%) | (0.20%) | (0.20%) |
Tax-related interest and penalties, amount | $ 0 | $ 0 | $ (2) |
Tax-related interest and penalties, percent | 0% | 0% | (0.30%) |
Other, amount | $ (1) | $ (5) | $ (6) |
Other, percent | (0.10%) | (0.40%) | (1.00%) |
Provision for income taxes, amount | $ 325 | $ 322 | $ 124 |
Provision for income taxes, percent | 22% | 21.60% | 20% |
Income Taxes And Tax-Related _6
Income Taxes And Tax-Related Items Reconciliation of the Beginning and Ending Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Balance at January 1 | $ 18 | $ 19 | $ 17 |
(Decrease) increase as a result of tax positions taken during a prior period | (2) | 1 | 1 |
Increase as a result of tax positions taken during the current period | 3 | 3 | 2 |
Decreases related to settlements with tax authorities | (3) | (3) | (1) |
Reduction as a result of expiration of statue of limitations | 0 | (2) | 0 |
Balance at December 31 | $ 16 | $ 18 | $ 19 |
Income Taxes And Tax-Related _7
Income Taxes And Tax-Related Items Tax Years for Significant Jurisdictions That Remain Subject to Examination (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Federal | Minimum | |
Open Tax Year | 2019 |
Federal | Maximum | |
Open Tax Year | 2021 |
New York | Minimum | |
Open Tax Year | 2018 |
New York | Maximum | |
Open Tax Year | 2021 |
California | Minimum | |
Open Tax Year | 2006 |
Open tax years - second grouping | 2018 |
California | Maximum | |
Open Tax Year | 2007 |
Open tax years - second grouping | 2021 |
Income Taxes And Tax-Related _8
Income Taxes And Tax-Related Items Principal Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Allowance for depreciation | $ 0 | $ 7 |
Allowance for loan losses | 128 | 124 |
Deferred compensation | 84 | 71 |
Deferred loan origination fees and costs | 12 | 17 |
Net hedging losses | 290 | 0 |
Net unrealized losses on investment securities available-for-sale | 713 | 30 |
Operating lease liabilities | 85 | 74 |
Other temporary differences, net | 42 | 21 |
Total deferred tax asset before valuation allowance | 1,354 | 344 |
Valuation allowance | (5) | (5) |
Total deferred tax assets | 1,349 | 339 |
Deferred tax liabilities: | ||
Lease financing transactions | (31) | (49) |
Defined benefit plans | (123) | (198) |
Allowance for depreciation | (4) | 0 |
Net hedging gains | 0 | (17) |
Leasing right of use assets | (71) | (66) |
Total deferred tax liabilities | (229) | (330) |
Net deferred tax assets | $ 1,120 | $ 9 |
Transactions with Related Par_2
Transactions with Related Parties Transactions with Related Parties (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Related Party Transactions [Abstract] | |
Loans attributed to persons who were related parties at beginning of period | $ 74 |
Loans attributed to persons who were related parties at end of period | 57 |
New loans to related parties | 270 |
Repayments on loans to related parties | $ 287 |
Regulatory Capital and Reserve
Regulatory Capital and Reserve Requirements Regulatory Capital and Reserve Requirements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Dividends available to be paid to parent company with prior approval from bank regulatory agencies | $ 506 | ||
Dividends from bank subsidiaries | $ 1,000 | $ 852 | $ 498 |
Total risk-based capital | 10% | 10% | |
Tier 1 risk-based capital | 6% | 6% | |
Minimum | |||
Capital conservation buffer | 2.50% | 2.50% | |
U.S. Banking Subsidiaries | |||
Total risk-based capital | 10% | 10% | |
Tier 1 risk-based capital | 8% | 8% | |
CET1 risk-based capital | 6.50% | 6.50% | |
Leverage ratios | 5% | 5% |
Regulatory Capital and Reserv_2
Regulatory Capital and Reserve Requirements Regulatory Capital and Reserve Requirements (Summary of Capital Position) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Minimum | ||
Summary of Capital Position [Line Items] | ||
CET 1 capital | $ 3,500 | $ 3,100 |
Tier 1 capital | 4,700 | 4,200 |
Total capital | $ 6,300 | $ 5,600 |
CET 1 capital to risk-weighted assets | 4.50% | 4.50% |
Tier 1 capital to risk-weighted assets | 6% | 6% |
Total capital to risk-weighted assets | 8% | 8% |
Tier 1 capital to average assets | 4% | 4% |
Capital conservation buffer | 2.50% | 2.50% |
Comerica Incorporated | ||
Summary of Capital Position [Line Items] | ||
CET 1 capital | $ 7,884 | $ 7,064 |
Tier 1 capital | 8,278 | 7,458 |
Total capital | 9,817 | 8,608 |
Risk-weighted assets | 78,871 | 69,708 |
Average assets (fourth quarter) | $ 86,726 | $ 96,417 |
CET 1 capital to risk-weighted assets | 10% | 10.13% |
Tier 1 capital to risk-weighted assets | 10.50% | 10.70% |
Total capital to risk-weighted assets | 12.45% | 12.35% |
Tier 1 capital to average assets | 9.55% | 7.74% |
Capital conservation buffer | 4.45% | 4.35% |
Comerica Bank | ||
Summary of Capital Position [Line Items] | ||
CET 1 capital | $ 7,801 | $ 7,634 |
Tier 1 capital | 7,801 | 7,634 |
Total capital | 9,190 | 8,584 |
Risk-weighted assets | 78,781 | 69,542 |
Average assets (fourth quarter) | $ 86,608 | $ 96,216 |
CET 1 capital to risk-weighted assets | 9.90% | 10.98% |
Tier 1 capital to risk-weighted assets | 9.90% | 10.98% |
Total capital to risk-weighted assets | 11.67% | 12.34% |
Tier 1 capital to average assets | 9.01% | 7.93% |
Capital conservation buffer | 3.67% | 4.34% |
Contingent Liabilities (Narrati
Contingent Liabilities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | |||
Legal fees | $ 17 | $ 14 | $ 17 |
Pending Litigation | Minimum | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | 0 | ||
Pending Litigation | Maximum | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | $ 80 |
Strategic Lines of Business (Na
Strategic Lines of Business (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2022 segments | |
Segment Reporting [Abstract] | |
Number of Major Business Segments | 3 |
Strategic Lines of Business (Bu
Strategic Lines of Business (Business Segment Financial Results) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Net interest income (expense) | $ 2,466 | $ 1,844 | $ 1,911 | |
Provision for credit losses | 60 | (384) | 537 | |
Noninterest income | 1,068 | 1,123 | 1,001 | |
Noninterest expenses | 1,998 | 1,861 | 1,754 | |
Provision for income taxes, amount | 325 | 322 | 124 | |
Net Income | 1,151 | 1,168 | 497 | |
Net credit-related (recoveries) charge-offs | 17 | (10) | 196 | |
Assets, average | 87,272 | 90,152 | 81,146 | |
Loans, average | 50,460 | 49,083 | 51,631 | |
Deposits, average | $ 75,481 | $ 77,681 | $ 65,038 | |
Return on average assets | [1] | 1.32% | 1.30% | 0.61% |
Efficiency ratio | [2] | 56.32% | 62.42% | 60.13% |
Commercial Bank | ||||
Net interest income (expense) | $ 1,753 | $ 1,574 | $ 1,605 | |
Provision for credit losses | 32 | (346) | 495 | |
Noninterest income | 607 | 663 | 555 | |
Noninterest expenses | 963 | 870 | 813 | |
Provision for income taxes, amount | 313 | 384 | 184 | |
Net Income | 1,052 | 1,329 | 668 | |
Net credit-related (recoveries) charge-offs | 21 | (12) | 192 | |
Assets, average | 47,660 | 44,004 | 45,716 | |
Loans, average | 43,481 | 41,801 | 44,119 | |
Deposits, average | $ 42,584 | $ 45,602 | $ 36,616 | |
Return on average assets | [1] | 2.21% | 2.71% | 1.46% |
Efficiency ratio | [2] | 40.69% | 38.76% | 37.63% |
Retail Bank | ||||
Net interest income (expense) | $ 680 | $ 565 | $ 503 | |
Provision for credit losses | 11 | (5) | 7 | |
Noninterest income | 122 | 123 | 110 | |
Noninterest expenses | 689 | 645 | 607 | |
Provision for income taxes, amount | 22 | 5 | (3) | |
Net Income | 80 | 43 | 2 | |
Net credit-related (recoveries) charge-offs | (1) | 2 | 1 | |
Assets, average | 2,814 | 3,213 | 3,281 | |
Loans, average | 2,063 | 2,382 | 2,468 | |
Deposits, average | $ 26,672 | $ 25,682 | $ 22,832 | |
Return on average assets | [1] | 0.29% | 0.16% | 0% |
Efficiency ratio | [2] | 85.31% | 92.98% | 98.52% |
Wealth Management | ||||
Net interest income (expense) | $ 199 | $ 166 | $ 167 | |
Provision for credit losses | 9 | (32) | 35 | |
Noninterest income | 298 | 279 | 263 | |
Noninterest expenses | 348 | 317 | 295 | |
Provision for income taxes, amount | 33 | 36 | 22 | |
Net Income | 107 | 124 | 78 | |
Net credit-related (recoveries) charge-offs | (3) | 0 | 3 | |
Assets, average | 5,037 | 5,028 | 5,162 | |
Loans, average | 4,906 | 4,903 | 5,045 | |
Deposits, average | $ 5,439 | $ 5,218 | $ 4,402 | |
Return on average assets | [1] | 1.83% | 2.24% | 1.51% |
Efficiency ratio | [2] | 70% | 71.02% | 68.47% |
Finance | ||||
Net interest income (expense) | $ (187) | $ (471) | $ (384) | |
Provision for credit losses | 0 | 0 | 0 | |
Noninterest income | 58 | 41 | 55 | |
Noninterest expenses | 1 | 1 | 2 | |
Provision for income taxes, amount | (37) | (100) | (78) | |
Net Income | (93) | (331) | (253) | |
Net credit-related (recoveries) charge-offs | 0 | 0 | 0 | |
Assets, average | 20,682 | 17,705 | 15,418 | |
Loans, average | 0 | 0 | 0 | |
Deposits, average | 591 | 965 | 1,026 | |
Other | ||||
Net interest income (expense) | 21 | 10 | 20 | |
Provision for credit losses | 8 | (1) | 0 | |
Noninterest income | (17) | 17 | 18 | |
Noninterest expenses | (3) | 28 | 37 | |
Provision for income taxes, amount | (6) | (3) | (1) | |
Net Income | 5 | 3 | 2 | |
Net credit-related (recoveries) charge-offs | 0 | 0 | 0 | |
Assets, average | 11,079 | 20,202 | 11,569 | |
Loans, average | 10 | (3) | (1) | |
Deposits, average | $ 195 | $ 214 | $ 162 | |
[1]Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.[2]Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains (losses) from securities, a derivative contract tied to the conversion rate of Visa Class B shares and changes in the value of shares obtained through monetization of warrants. |
Parent Company Financial Stat_3
Parent Company Financial Statements Parent Company Financial Statements (Balance Sheets) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and due from subsidiary banks | $ 1,758 | $ 1,236 | ||
Other short-term investments | 157 | 197 | ||
Premises and equipment | 400 | 454 | ||
Accrued income and other assets | 6,763 | 5,603 | ||
Total assets | 85,406 | 94,616 | ||
Total medium- and long-term debt | 3,024 | 2,796 | ||
Accrued expenses and other liabilities | 2,593 | 1,584 | ||
Total liabilities | $ 80,225 | $ 86,719 | ||
Preferred Stock, No Par Value | $ 0 | $ 0 | ||
Preferred Stock, Shares Authorized | 4,000 | 4,000 | ||
Preferred Stock, Shares Issued | 4,000 | 4,000 | ||
Fixed rate reset non-cumulative perpetual preferred stock, series A, no par value, $100,000 liquidation preference per share: Authorized - 4,000 shares, Issued - 4,000 shares at 12/31/2022 and 12/31/2021 | $ 394 | $ 394 | ||
Common stock, par value | $ 5 | $ 5 | ||
Common stock, authorized shares | 325,000,000 | 325,000,000 | ||
Common stock, issued shares | 228,164,824 | 228,164,824 | ||
Common stock - $5 par value: Authorized - 325,000,000 shares; Issued - 228,164,824 shares | $ 1,141 | $ 1,141 | ||
Capital surplus | 2,220 | 2,175 | ||
Accumulated other comprehensive loss | (3,742) | (212) | $ 64 | |
Retained earnings | $ 11,258 | $ 10,494 | ||
Shares in treasury | 97,197,962 | 97,476,872 | ||
Less cost of common stock in treasury - 97,197,962 shares at 12/31/22 and 97,476,872 shares at 12/31/21 | $ (6,090) | $ (6,095) | ||
Total shareholders' equity | 5,181 | 7,897 | $ 8,050 | $ 7,327 |
Total liabilities and shareholders' equity | 85,406 | 94,616 | ||
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and due from subsidiary banks | 1,810 | 1,105 | ||
Other short-term investments | 92 | 113 | ||
Receivable due from subsidiary bank | 150 | 150 | ||
Investments in subsidiaries, principally banks | 4,853 | 8,278 | ||
Premises and equipment | 0 | 1 | ||
Accrued income and other assets | 191 | 265 | ||
Total assets | 7,096 | 9,912 | ||
Total medium- and long-term debt | 1,593 | 1,736 | ||
Accrued expenses and other liabilities | 322 | 279 | ||
Total liabilities | 1,915 | 2,015 | ||
Total liabilities and shareholders' equity | $ 7,096 | $ 9,912 |
Parent Company Financial Stat_4
Parent Company Financial Statements Parent Company Financial Statements (Statements of Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Condensed Financial Statements, Captions [Line Items] | ||||
Other interest income | $ 105 | $ 27 | $ 29 | |
Total interest on medium- and long-term debt | [1] | 87 | 35 | 80 |
Salaries and benefits expense | 1,208 | 1,133 | 1,019 | |
Other noninterest expenses | 84 | 39 | 66 | |
Benefit for income taxes | 325 | 322 | 124 | |
Net Income | 1,151 | 1,168 | 497 | |
Less income allocated to participating securities | 6 | 5 | 2 | |
Net income attributable to common shares | 1,122 | 1,140 | 482 | |
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Dividends from subsidiaries | 1,067 | 849 | 498 | |
Other interest income | 13 | 1 | 4 | |
Intercompany management fees | 109 | 235 | 209 | |
Total income | 1,189 | 1,085 | 711 | |
Total interest on medium- and long-term debt | 47 | 20 | 30 | |
Salaries and benefits expense | 53 | 170 | 141 | |
Other noninterest expenses | 46 | 72 | 66 | |
Total expenses | 146 | 262 | 237 | |
Income before benefit for income taxes and equity in undistributed earnings of subsidiaries | 1,043 | 823 | 474 | |
Benefit for income taxes | (3) | (6) | (6) | |
Income before equity in undistributed earnings of subsidiaries, principally banks | 1,046 | 829 | 480 | |
Equity in undistributed earnings of subsidiaries, principally banks | 105 | 339 | 17 | |
Net Income | 1,151 | 1,168 | 497 | |
Less income allocated to participating securities | 6 | 5 | 2 | |
Less preferred stock dividends | 23 | 23 | 13 | |
Net income attributable to common shares | $ 1,122 | $ 1,140 | $ 482 | |
[1]Includes the effects of hedging. |
Parent Company Financial Stat_5
Parent Company Financial Statements Parent Company Financial Statements (Statements of Cash Flows) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net income | $ 1,151 | $ 1,168 | $ 497 |
Net periodic defined benefit credit | (91) | (81) | (55) |
Share-based compensation expense | 60 | 41 | 24 |
Benefit for deferred income taxes | (27) | 79 | (82) |
Other, net | 614 | 469 | 111 |
Net cash provided by operating activities | 638 | 634 | 928 |
Other, net | 82 | 70 | 79 |
Net cash provided by (used in) investing activities | (9,952) | 1,723 | (4,602) |
Cash dividends paid on preferred stock | 23 | 23 | 8 |
Repurchases of common stock | 43 | 729 | 199 |
Cash dividends paid on common stock | 353 | 369 | 375 |
Net cash used in financing activities | (7,083) | 4,555 | 13,623 |
Net increase (decrease) in cash and cash equivalents | (16,397) | 6,912 | 9,949 |
Interest paid | 130 | 57 | 203 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income | 1,151 | 1,168 | 497 |
Undistributed (earnings) of subsidiaries, principally banks | (105) | (339) | (17) |
Net periodic defined benefit credit | 2 | 5 | 4 |
Share-based compensation expense | 22 | 19 | 11 |
Benefit for deferred income taxes | 0 | (2) | (1) |
Other, net | 24 | 3 | 2 |
Net cash provided by operating activities | 1,094 | 854 | 496 |
Advance to subsidiary bank | 0 | (150) | 0 |
Capital transactions with subsidiaries | 0 | 0 | (21) |
Other, net | 2 | (1) | 2 |
Net cash provided by (used in) investing activities | 2 | (151) | (19) |
Issuances of preferred stock | 0 | 0 | 394 |
Cash dividends paid on preferred stock | (23) | (23) | (8) |
Repurchases of common stock | (43) | (729) | (199) |
Cash dividends paid on common stock | (353) | (369) | (375) |
Issuances of common stock under employee stock plans | 28 | 34 | 4 |
Net cash used in financing activities | (391) | (1,087) | (184) |
Net increase (decrease) in cash and cash equivalents | 705 | (384) | 293 |
Cash and cash equivalents at beginning of period | 1,105 | 1,489 | 1,196 |
Cash and cash equivalents at end of period | 1,810 | 1,105 | 1,489 |
Interest paid | $ 41 | $ 21 | $ 33 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | $ 788 | $ 796 | $ 758 | |
Other sources of noninterest income | 280 | 327 | 243 | |
Total noninterest income | 1,068 | 1,123 | 1,001 | |
Commercial Bank | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 384 | 410 | 403 | |
Other sources of noninterest income | 223 | 253 | 152 | |
Total noninterest income | 607 | 663 | 555 | |
Retail Bank | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 115 | 115 | 100 | |
Other sources of noninterest income | 7 | 8 | 10 | |
Total noninterest income | 122 | 123 | 110 | |
Wealth Management | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 288 | 271 | 255 | |
Other sources of noninterest income | 10 | 8 | 8 | |
Total noninterest income | 298 | 279 | 263 | |
Finance & Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 1 | 0 | 0 | |
Other sources of noninterest income | 40 | 58 | 73 | |
Total noninterest income | 41 | 58 | 73 | |
Card fees | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 273 | 298 | 270 | |
Card fees | Commercial Bank | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 227 | 250 | 229 | |
Card fees | Retail Bank | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 42 | 44 | 38 | |
Card fees | Wealth Management | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 4 | 4 | 3 | |
Card fees | Finance & Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | |
Fiduciary income | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 233 | 231 | 209 | |
Fiduciary income | Commercial Bank | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | |
Fiduciary income | Retail Bank | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | |
Fiduciary income | Wealth Management | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 233 | 231 | 209 | |
Fiduciary income | Finance & Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | |
Service charges on deposit accounts | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 195 | 195 | 185 | |
Service charges on deposit accounts | Commercial Bank | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 132 | 136 | 128 | |
Service charges on deposit accounts | Retail Bank | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 57 | 54 | 52 | |
Service charges on deposit accounts | Wealth Management | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 6 | 5 | 5 | |
Service charges on deposit accounts | Finance & Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | |
Commercial loan servicing fees | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | [1] | 18 | 19 | 18 |
Commercial loan servicing fees | Commercial Bank | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | [1] | 18 | 19 | 18 |
Commercial loan servicing fees | Retail Bank | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | [1] | 0 | 0 | 0 |
Commercial loan servicing fees | Wealth Management | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | [1] | 0 | 0 | 0 |
Commercial loan servicing fees | Finance & Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | [1] | 0 | 0 | 0 |
Brokerage fees | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 21 | 14 | 21 | |
Brokerage fees | Commercial Bank | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | |
Brokerage fees | Retail Bank | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | |
Brokerage fees | Wealth Management | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 21 | 14 | 21 | |
Brokerage fees | Finance & Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | |
Other noninterest income | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | [2] | 48 | 39 | 55 |
Other noninterest income | Commercial Bank | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | [2] | 7 | 5 | 28 |
Other noninterest income | Retail Bank | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | [2] | 16 | 17 | 10 |
Other noninterest income | Wealth Management | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | [2] | 24 | 17 | 17 |
Other noninterest income | Finance & Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue from contracts with customers | [2] | $ 1 | $ 0 | $ 0 |
[1]Included in commercial lending fees on the Consolidated Statements of Income.[2]Excludes derivative, warrant and other miscellaneous income. |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Leases [Abstract] | ||||
Sales-type and Direct Financing Leases, Interest Income | $ 21 | $ 12 | $ 13 | |
Total lease receivables | $ 659 | [1] | $ 464 | |
[1]Excludes net investment in leveraged leases of $101 million. |
Leases (Operating Leases) (Deta
Leases (Operating Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease expense | $ 68 | $ 65 | $ 64 |
Variable lease expense | 17 | 15 | 16 |
Less sublease Income | (1) | (1) | (1) |
Total lease expense | $ 84 | $ 79 | $ 79 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | |||
Right-of-use (ROU) assets | $ 338 | $ 317 | $ 306 |
Operating lease liabilities | $ 406 | $ 356 | $ 344 |
Weighted average discount rate | 3.53% | 3.33% | 3.61% |
Weighted average lease term in years | 9 years | 8 years | 8 years |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Leases [Abstract] | ||||
Operating cash flows from operating activities | $ 66 | $ 66 | $ 65 | |
ROU assets obtained in exchange for new lease liabilities | [1] | $ 80 | $ 64 | $ 28 |
[1]Includes a $24 million reduction to both ROU assets and lease liabilities for a partial termination related to the Company's Texas headquarters for the year ended December 31, 2022. |
Leases (Contractual Maturities
Leases (Contractual Maturities of Operating Lease Liabilities) (Details) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | |||
2023 | $ 63 | ||
2024 | 69 | ||
2025 | 63 | ||
2026 | 55 | ||
2027 | 45 | ||
Thereafter | 185 | ||
Total contractual maturities | 480 | ||
Less: Imputed interest | (74) | ||
Total operating lease liabilities | $ 406 | $ 356 | $ 344 |
Leases (Contractual Maturitie_2
Leases (Contractual Maturities of Sales-Type and Direct Financing Lease Receivables) (Details) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
2023 | $ 101 | ||
2024 | 127 | ||
2025 | 137 | ||
2026 | 71 | ||
2027 | 36 | ||
Thereafter | 148 | ||
Total lease payments receivable | 620 | ||
Unguaranteed residual values | 61 | ||
Less: Deferred interest income | (22) | ||
Total lease receivables | $ 659 | [1] | $ 464 |
[1]Excludes net investment in leveraged leases of $101 million. |