Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Document Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FITB | ||
Entity Registrant Name | FIFTH THIRD BANCORP | ||
Entity Central Index Key | 35,527 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 750,864,896 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 13,447,748,736 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Assets | ||||
Cash and due from banks | [1] | $ 2,392 | $ 2,540 | |
Available-for-sale and other securities | [2] | 31,183 | 29,044 | |
Held-to-maturity securities | [3] | 26 | 70 | |
Trading securities | 410 | 386 | ||
Other short-term investments | 2,754 | 2,671 | ||
Loans held for sale | [4] | 751 | 903 | |
Portfolio loans and leases | [1],[5] | 92,098 | 92,582 | |
ALLL | [1] | (1,253) | (1,272) | |
Portfolio loans and leases, net | 90,845 | 91,310 | ||
Bank premises and equipment | [6] | 2,065 | 2,239 | |
Operating lease equipment | 738 | 707 | ||
Goodwill | 2,416 | 2,416 | ||
Intangible assets | 9 | 12 | ||
Servicing rights | 744 | 785 | ||
Other assets | [1] | 7,844 | 7,965 | [7] |
Total Assets | 142,177 | 141,048 | [7],[8] | |
Deposits | ||||
Noninterest-bearing deposits | 35,782 | 36,267 | ||
Interest-bearing deposits | 68,039 | 66,938 | ||
Total deposits | [9] | 103,821 | 103,205 | |
Federal funds purchased | 132 | 151 | ||
Other short-term borrowings | 3,535 | 1,507 | ||
Accrued taxes, interest and expenses | 1,800 | 2,164 | ||
Other liabilities | [1] | 2,269 | 2,341 | |
Long-term debt | [1] | 14,388 | 15,810 | [7] |
Total liabilities | 125,945 | 125,178 | [7] | |
Equity | ||||
Common stock | [10] | 2,051 | 2,051 | |
Preferred stock | [11] | 1,331 | 1,331 | |
Capital surplus | 2,756 | 2,666 | ||
Retained earnings | 13,441 | 12,358 | ||
Accumulated other comprehensive income | 59 | 197 | ||
Treasury stock | [10] | (3,433) | (2,764) | |
Total Bancorp Shareholders' Equity | 16,205 | 15,839 | ||
Noncontrolling interests | 27 | 31 | ||
Total Equity | 16,232 | 15,870 | ||
Total Liabilities and Equity | $ 142,177 | $ 141,048 | ||
[1] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. | |||
[2] | Amortized cost of $ 31,024 and $ 28,678 at December 31, 2016 and 2015 , respectively. | |||
[3] | Fair value of $ 26 and $ 70 at December 31, 2016 and 2015 , respectively. | |||
[4] | Includes $ 686 and $ 519 of residential mortgage loans held for sale measured at fair value at December 31, 2016 and 2015 , respectively. | |||
[5] | Includes $ 143 and $ 167 of residential mortgage loans measured at fair value at December 31, 2016 and 2015 , respectively. | |||
[6] | Includes $ 39 and $ 81 of bank premises and equipment held for sale at December 31, 2016 and 2015 , respectively. For further information refer to N ote 7 . | |||
[7] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $34 of debt issuance costs from other assets to long-term debt. For further inform ation refer to Note 1 . | |||
[8] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $ 34 of debt issuance costs from other assets to long-term debt. For further information, refer to Note 1. | |||
[9] | Includes $ 0 and $ 628 of deposits held for sale at December 31, 2016 and 2015 , respectively. | |||
[10] | Common shares: Stated value $ 2.22 per share; authori zed 2 billion ; outstanding at December 31, 2016 – 750,479,299 (excludes 173,413,282 treasury shares) , 2015 – 785,080,314 (excludes 138,812,267 treasury shares). | |||
[11] | 446,000 shares of undesignated no pa r value preferred stock are authorized and unissued at December 31, 2016 and 2015 ; fixed-to-floating rate non-cumulative Series H perpetual preferred stock with a $ 25,000 liquidation preference: 24,000 authorized shares, issued and outstanding at December 31, 2016 and 2015 ; fixed-to-floating rate non-cumulative Series I perpetual preferred stock with a $ 25,000 liquidation preference: 18,000 authorized shares, issued and outstanding at December 31, 2016 and 2015 ; and fixed-to-floating rate non-cumulative Series J perpetual preferred stock with a $ 25,000 liquidation preference: 12,000 authorized shares, issue d and outstanding at December 31, 2016 and 2015 . |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash and due from banks | [1] | $ 2,392 | $ 2,540 | |
Portfolio loans and leases | [1],[2] | 92,098 | 92,582 | |
ALLL | [1] | (1,253) | (1,272) | |
Other assets | [1] | 7,844 | 7,965 | [3] |
Other liabilities | [1] | 2,269 | 2,341 | |
Long-term debt | [1] | 14,388 | 15,810 | [3] |
Available-for-sale and other securities, amortized cost | 31,024 | 28,678 | ||
Held-to-maturity securities, fair value | 26 | 70 | ||
Residential mortgage loans held for sale | 686 | 519 | ||
Residential mortgage loans measured at fair value | 143 | 167 | ||
Bank premises and equipment held for sale | 39 | 81 | ||
Deposits held for sale | $ 0 | $ 628 | ||
Common stock, stated value | $ 2.22 | $ 2.22 | ||
Common stock, authorized | 2,000,000,000 | 2,000,000,000 | ||
Common stock, outstanding | 750,479,299 | 785,080,314 | ||
Common stock, treasury shares | 173,413,282 | 138,812,267 | ||
Unamortized debt issuance costs | $ 33 | $ 34 | ||
Residential Mortgage | ||||
Residential mortgage loans measured at fair value | 143 | 167 | ||
Variable Interest Entities | ||||
Cash and due from banks | 85 | 152 | ||
Portfolio loans and leases | 1,216 | 2,537 | ||
ALLL | (26) | (28) | ||
Other assets | 9 | 14 | ||
Other liabilities | 3 | 3 | ||
Long-term debt | $ 1,094 | $ 2,487 | ||
Preferred Stock | ||||
Preferred stock, authorized | 446,000 | 446,000 | ||
Preferred stock Series H | ||||
Preferred stock, authorized | 24,000 | 24,000 | ||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | ||
Preferred stock, issued | 24,000 | 24,000 | ||
Preferred stock, outstanding | 24,000 | 24,000 | ||
Preferred stock Series I | ||||
Preferred stock, authorized | 18,000 | 18,000 | ||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | ||
Preferred stock, issued | 18,000 | 18,000 | ||
Preferred stock, outstanding | 18,000 | 18,000 | ||
Preferred stock Series J | ||||
Preferred stock, authorized | 12,000 | 12,000 | ||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | ||
Preferred stock, issued | 12,000 | 12,000 | ||
Preferred stock, outstanding | 12,000 | 12,000 | ||
[1] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. | |||
[2] | Includes $ 143 and $ 167 of residential mortgage loans measured at fair value at December 31, 2016 and 2015 , respectively. | |||
[3] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $34 of debt issuance costs from other assets to long-term debt. For further inform ation refer to Note 1 . |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Income | |||
Interest and fees on loans and leases | $ 3,233 | $ 3,151 | $ 3,298 |
Interest on securities | 952 | 869 | 724 |
Interest on other short-term investments | 8 | 8 | 8 |
Total interest income | 4,193 | 4,028 | 4,030 |
Interest Expense | |||
Interest on deposits | 205 | 186 | 202 |
Interest on federal funds purchased | 2 | 1 | 0 |
Interest on other short-term borrowings | 10 | 2 | 2 |
Interest on long-term debt | 361 | 306 | 247 |
Total interest expense | 578 | 495 | 451 |
Net Interest Income | 3,615 | 3,533 | 3,579 |
Provision for loan and lease losses | 343 | 396 | 315 |
Net Interest Income After Provision for Loan and Lease Losses | 3,272 | 3,137 | 3,264 |
Noninterest Income: | |||
Service charges on deposits | 558 | 563 | 560 |
Corporate banking revenue | 432 | 384 | 430 |
Wealth and asset management revenue | 404 | 418 | 407 |
Card and processing revenue | 319 | 302 | 295 |
Mortgage banking net revenue | 285 | 348 | 310 |
Other noninterest income | 688 | 979 | 450 |
Securities gains, net | 10 | 9 | 21 |
Total noninterest income | 2,696 | 3,003 | 2,473 |
Noninterest Expense | |||
Salaries, wages and incentives | 1,612 | 1,525 | 1,449 |
Employee benefits | 339 | 323 | 334 |
Net occupancy expense | 299 | 321 | 313 |
Technology and communications | 234 | 224 | 212 |
Card and processing expense | 132 | 153 | 141 |
Equipment expense | 118 | 124 | 121 |
Other noninterest expense | 1,169 | 1,105 | 1,139 |
Total noninterest expense | 3,903 | 3,775 | 3,709 |
Income (Loss) Before Income Taxes | 2,065 | 2,365 | 2,028 |
Applicable income tax expense | 505 | 659 | 545 |
Net Income | 1,560 | 1,706 | 1,483 |
Less: Net income attributable to noncontrolling interests | (4) | (6) | 2 |
Net Income attributable to Bancorp | 1,564 | 1,712 | 1,481 |
Dividends on preferred stock | 75 | 75 | 67 |
Net income (loss) available to common shareholders | $ 1,489 | $ 1,637 | $ 1,414 |
Earnings per share - basic | $ 1.95 | $ 2.03 | $ 1.68 |
Earnings per share - diluted | $ 1.93 | $ 2.01 | $ 1.66 |
Average common shares outstanding - basic | 757,432,291 | 798,628,173 | 833,116,349 |
Average common shares outstanding - diluted | 764,495,353 | 807,658,669 | 842,967,356 |
Cash dividends declared per common share | $ 0.53 | $ 0.52 | $ 0.51 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income | |||
Net income (loss) | $ 1,560 | $ 1,706 | $ 1,483 |
Other Comprehensive Income (Loss), Net of Tax | |||
Unrealized holding gains (losses) on available-for-sale securities arising during the year | (130) | (227) | 378 |
Reclassification adjustment for net (gains) losses included in net income | (7) | (10) | (24) |
Unrealized holding gains (losses) on cash flow hedge derivatives arising during the year | 19 | 48 | 39 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (31) | (49) | (29) |
Net actuarial gain (loss) arising during the year | (1) | (5) | (25) |
Reclassification of amounts to net periodic benefit costs | 12 | 11 | 8 |
Other comprehensive income (loss), Net of Tax | (138) | (232) | 347 |
Comprehensive income | 1,422 | 1,474 | 1,830 |
Comprehensive income attributable to noncontrolling interests | (4) | (6) | 2 |
Comprehensive income attributable to Bancorp | $ 1,426 | $ 1,480 | $ 1,828 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common stock | Preferred Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Bancorp Shareholders' Equity | Non- Controlling Interests | |
Beginning Balance at Dec. 31, 2013 | $ 14,626 | $ 2,051 | $ 1,034 | $ 2,561 | $ 10,156 | $ 82 | $ (1,295) | $ 14,589 | $ 37 | |
Net income (loss) | 1,483 | 1,481 | 1,481 | 2 | ||||||
Other comprehensive income (loss), Net of Tax | 347 | 347 | 347 | |||||||
Cash dividends declared: | ||||||||||
Common stock at $0.53 in 2016, $0.52 in 2015 and $0.51 in 2014 per share | (427) | (427) | (427) | |||||||
Preferred stock | [1] | (67) | (67) | (67) | ||||||
Shares acquired for treasury | (654) | 72 | (726) | (654) | ||||||
Issuance of preferred stock | 297 | 297 | 297 | |||||||
Impact of stock transactions under stock compensation plans, net | 60 | 13 | 47 | 60 | ||||||
Other | 0 | (2) | 2 | 0 | ||||||
Ending Balance at Dec. 31, 2014 | 15,665 | 2,051 | 1,331 | 2,646 | 11,141 | 429 | (1,972) | 15,626 | 39 | |
Net income (loss) | 1,706 | 1,712 | 1,712 | (6) | ||||||
Other comprehensive income (loss), Net of Tax | (232) | (232) | (232) | |||||||
Cash dividends declared: | ||||||||||
Common stock at $0.53 in 2016, $0.52 in 2015 and $0.51 in 2014 per share | (417) | (417) | (417) | |||||||
Preferred stock | [2] | (75) | (75) | (75) | ||||||
Shares acquired for treasury | (850) | (3) | (847) | (850) | ||||||
Impact of stock transactions under stock compensation plans, net | 75 | 23 | 52 | 75 | ||||||
Other | (2) | (3) | 3 | 0 | (2) | |||||
Ending Balance at Dec. 31, 2015 | 15,870 | 2,051 | 1,331 | 2,666 | 12,358 | 197 | (2,764) | 15,839 | 31 | |
Net income (loss) | 1,560 | 1,564 | 1,564 | (4) | ||||||
Other comprehensive income (loss), Net of Tax | (138) | (138) | (138) | |||||||
Cash dividends declared: | ||||||||||
Common stock at $0.53 in 2016, $0.52 in 2015 and $0.51 in 2014 per share | (405) | (405) | (405) | |||||||
Preferred stock | [3] | (75) | (75) | (75) | ||||||
Shares acquired for treasury | (661) | 7 | (668) | (661) | ||||||
Impact of stock transactions under stock compensation plans, net | 80 | 83 | 1 | (4) | 80 | |||||
Other | 1 | (2) | 3 | 1 | ||||||
Ending Balance at Dec. 31, 2016 | $ 16,232 | $ 2,051 | $ 1,331 | $ 2,756 | $ 13,441 | $ 59 | $ (3,433) | $ 16,205 | $ 27 | |
[1] | For the year ended December 31, 2014 , dividends were $ 1, 275.00 per preferred share for Perpetual Preferred Stock, Series H, $ 1,757.46 per preferred share for Perpetual Preferred Stock, Series I and $ 391.32 per preferred share for Perpetual Preferred Stock, Series J . | |||||||||
[2] | For the year ended December 31, 2015 , dividends were $ 1,275.00 per preferred share for Perpetual Preferred Stock, Series H, $ 1, 656.24 per preferred share for Perpetual Preferred Stock, Series I and $ 1,225.00 per preferred share for Perp etual Preferred Stock, Series J. | |||||||||
[3] | For the year ended December 31, 2016 , dividends were $ 1,275.00 per preferred share for Perpetual Preferred Stock, Series H, $ 1,656.24 per preferred share for Perpetual Preferred Stock, Series I and $ 1,225.00 per preferre d share for Perpetual Preferred Stock, Series J. |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Common stock, per share | $ 0.53 | $ 0.52 | $ 0.51 |
Preferred stock Series H | |||
Preferred stock, per share | 1,275 | 1,275 | 1,275 |
Preferred stock Series I | |||
Preferred stock, per share | 1,656.24 | 1,656.24 | 1,757.46 |
Preferred stock Series J | |||
Preferred stock, per share | $ 1,225 | $ 1,225 | $ 391.32 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Operating Activities | |||||
Net income | $ 1,560 | $ 1,706 | $ 1,483 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Provision for (benefit from) loan and lease losses | 343 | 396 | 315 | ||
Depreciation, amortization and accretion | 453 | 441 | 414 | ||
Stock-based compensation expense | 111 | 100 | 83 | ||
(Benefit from) provision for deferred income taxes | (148) | (71) | 79 | ||
Securities gains, net | (7) | (5) | (21) | ||
(Recovery of) provision for MSR impairment | (7) | (4) | 65 | ||
Net gains on sales of loans and fair value adjustments on loans held for sale | (101) | (98) | (67) | ||
Net losses on disposition and impairment of bank premises and equipment | (13) | (101) | (19) | ||
Gain on sale of certain retail branch operations | (19) | 0 | 0 | ||
Net losses on disposition and impairment of operating lease equipment | (9) | (33) | 0 | ||
Gain on sale of Vantiv, Inc. shares | 0 | (331) | (125) | ||
Gain on the TRA associated with Vantiv, Inc. | (197) | (31) | (23) | ||
Proceeds from sales of loans held for sale | 6,895 | 5,102 | 5,477 | ||
Loans originated for sale, net of repayments | (7,014) | (5,142) | (4,874) | ||
Dividends representing return on equity method investments | 28 | 25 | 42 | ||
Net change in: | |||||
Trading securities | (23) | (34) | (16) | ||
Other assets | 351 | 94 | (221) | ||
Accrued taxes, interest and expenses | (157) | 327 | 1 | ||
Other liabilities | 24 | (191) | (555) | ||
Net Cash Provided by (Used in) Operating Activities | 2,114 | 2,418 | 2,076 | ||
Proceeds from sales: | |||||
Available-for-sale and other securities | 18,280 | 16,828 | 5,234 | ||
Loans | 360 | 741 | 147 | ||
Bank premises and equipment | 82 | 37 | 24 | ||
Proceeds from repayments / maturities: | |||||
Available-for-sale and other securities | 3,776 | 2,865 | 2,265 | ||
Held-to-maturity securities | 44 | 117 | 20 | ||
Purchases: | |||||
Available-for-sale and other securities | (24,636) | (26,733) | (10,691) | ||
Bank premises and equipment | (186) | (164) | (216) | ||
Proceeds from sale and dividends representing return of equity method investments | 64 | 458 | 279 | ||
Net cash paid on sale of certain retail branch operations | (219) | 0 | 0 | ||
Net change in: | |||||
Other short-term investments | (83) | 5,243 | (2,798) | ||
Loans and leases | (243) | (3,238) | (3,136) | ||
Operating lease equipment | (126) | (85) | (66) | ||
Net Cash (Used in) Provided by Investing Activities | (2,887) | (3,931) | (8,938) | ||
Net change in: | |||||
Deposits | 1,146 | 1,493 | 2,437 | ||
Federal funds purchased | (19) | 7 | (140) | ||
Other short-term borrowings | 2,028 | (49) | 176 | ||
Dividends paid on common stock | (402) | (422) | (423) | ||
Dividends paid on preferred stock | (52) | (75) | (67) | ||
Proceeds from issuance of long-term debt | 3,735 | 3,091 | 6,570 | ||
Repayment of long-term debt | (5,119) | (2,205) | (1,399) | ||
Repurchase of treasury stock and related forward contract | 661 | 850 | 654 | ||
Issuance of preferred stock | 0 | 0 | 297 | ||
Other | (31) | (28) | (22) | ||
Net Cash Provided by Financing Activities | 625 | 962 | 6,775 | ||
Increase (Decrease) in Cash and Due from Banks | (148) | (551) | (87) | ||
Cash and Due from Banks at Beginning of Period | 2,540 | [1] | 3,091 | 3,178 | |
Cash and Due from Banks at End of Period | $ 2,392 | [1] | $ 2,540 | [1] | $ 3,091 |
[1] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. |
Summary of Significant Accounti
Summary of Significant Accounting and Reporting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Basis of Presentation | |
Summary of Significant Accounting and Reporting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES Nature of Operations Fifth Third Bancorp, an Ohio corporation, conducts its principal lending, deposit gathering, transaction processing and service advisory activities through its banking and non-banking subsidiaries from banking centers located throughout the Midwestern and Southeastern regions of the United States. Basis of Presentation The Consolidated Financial Statements include the accounts of the Bancorp and its majority-owned subsidiaries and VIEs in which the Bancorp has been determined to be the primary beneficiary. Other entities, including certain joint ventures, in which the Bancorp has the ability to exercise significant influence over operating and financial policies of the investee, but upon which the Bancorp does not possess control, are accounted for by the e quity method of accounting and not consolidated. The investments in those entities in which the Bancorp does not have the ability to exercise significant influence are generally carried at the lower of cost or fair value. Intercompany transactions and bala nces among consolidated entities have been eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Due From Banks Cash and due from banks consist of currency and coin, cash items in the process of collection and due from banks. Currency and coin includes both U.S. and f oreign currency owned and held at Fifth Third offices and that is in-transit to the FRB. Cash items in the process of collection include checks and drafts that are drawn on another depository institution or the FRB that are payable immediately upon present ation in the U.S. Balances due from banks include noninterest-bearing balances that are funds on deposit at other depository institutions or the FRB. Securities Securities are classified as held-to-maturity, available-for-sale or trading on the date of pu rchase. Only those securities which management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. Securities are classified as available-for-sale when, in management’s judgment, they may be sol d in response to, or in anticipation of, changes in market conditions. Securities are classified as trading when bought and held principally for the purpose of selling them in the near term. Available-for-sale securities are reported at fair value with unr ealized gains and losses, net of related deferred income taxes, included in OCI. Trading securities are reported at fair value with unrealized gains and losses included in noninterest income. The fair value of a security is determined based on quoted marke t prices. If quoted market prices are not available, fair value is determined based on quoted prices of similar instruments or DCF models that incorporate market inputs and assumptions including discount rates, prepayment speeds and loss rates. Realized se curities gains or losses are reported within noninterest income in the Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. Available-for-sale and held-to-maturity securities with unrealized losses are reviewed quarterly for possible OTTI. For debt securities, if the Bancorp intends to sell the debt security or will more likely than not be required to sell the debt security before recovery of the entire amortized cost basis, then an OTTI has occurred . However, even if the Bancorp does not intend to sell the debt security and will not likely be required to sell the debt security before recovery of its entire amortized cost basis, the Bancorp must evaluate expected cash flows to be received and determin e if a credit loss has occurred. In the event of a credit loss, the credit component of the impairment is recognized within noninterest income and the non-credit component is recognized through OCI. For equity securities, the Bancorp’s management evaluates the securities in an unrealized loss position in the available-for-sale portfolio for OTTI on the basis of the duration of the decline in value of the security and severity of that decline as well as the Bancorp’s intent and ability to hold these securiti es for a period of time sufficient to allow for any anticipated recovery in the market value. If it is determined that the impairment on an equity security is other-than-temporary, an impairment loss equal to the difference between the amortized cost of th e security and its fair value is recognized within noninterest income. Portfolio Loans and Leases Basis of Accounting Portfolio loans and leases are generally reported at the principal amount outstanding, net of unearned income, deferred direct loan origination fees and costs and any direct principal charge-offs. Direct loan origination fees and costs are deferred and the net amount is amortized over the estimated life of the related loans as a yield adjustment. Interest income is recognized based on the principal balance outstanding computed using the effective interest method. Loans acquired by the Bancorp through a purchase business combination are recorded at fair value as of the acquisition date. The Bancorp does not carry over the acquired compan y’s ALLL, nor does the Bancorp add to its existing ALLL as part of purchase accounting. Purchased loans are evaluated for evidence of credit deterioration at acquisition and recorded at their initial fair value. For loans acquired with no evidence of credi t deterioration, the fair value discount or premium is amortized over the contractual life of the loan as an adjustment to yield. For loans acquired with evidence of credit deterioration, the Bancorp determines at the acquisition date the excess of the loa n’s contractually required payments over all cash flows expected to be collected as an amount that should not be accreted into interest income (nonaccretable difference). The remaining amount representing the difference in the expected cash flows of acquir ed loans and the initial investment in the acquired loans is accreted into interest income over the remaining life of the loan or pool of loans (accretable yield). Subsequent to the acquisition date, increases in expected cash flows over those expected at the acquisition date are recognized prospectively as interest income over the remaining life of the loan. The present value of any decreases in expected cash flows resulting directly from a change in the contractual interest rate are recognized prospective ly as a reduction of the accretable yield. The present value of any decreases in expected cash flows after the acquisition date as a result of credit deterioration is recognized by recording an ALLL or a direct charge-off. Subsequent to the acquisition dat e, the methods utilized to estimate the required ALLL are similar to originated loans. This method of accounting for loans acquired with deteriorated cr edit quality does not apply to loans carried at fair value, residential mortgage loans held for sale and loans un der revolving credit agreements. The Bancorp’s lease portfolio consists of both direct financing and leveraged leases. Direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, les s unearned income. Interest income on direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Leveraged leases are carried at the aggregate of lease payments (less nonrec ourse debt payments) plus estimated residual value of the leased property, less unearned income. Interest income on leveraged leases is recognized over the term of the lease to achieve a constant rate of return on the outstanding investment in the lease, n et of the related deferred income tax liability, in the years in which the net investment is positive. Nonaccrual Loans and Leases When a loan is placed on nonaccrual status, the accrual of interest, amortization of loan premium, accretion of loan discount and amortization/accretion of deferred net direct loan origination fees are discontinued and all previously accrued and unpaid interest is charged against income. Commercial loans are placed on nonaccrual status when there is a clear indication th at the borrower’s cash flows may not be sufficient to meet payments as they become due. Such loans are also placed on nonaccrual status when the principal or interest is past due 90 days or more, unless the loan is both well-secured and in the process of c ollection. The Bancorp classifies residential mortgage loans that have principal and interest payments that have become past due 150 days as nonaccrual unless the loan is both well-secured and in the process of collection. Residential mortgage loans may st ay on non accrual status for an extended time as the foreclosure process typically lasts longer than 180 days. Home equity loans and lines of credit are reported on nonaccrual status if principal or interest has been in default for 90 days or more unless th e loan is both well-secured and in the process of collection. Home equity loans and lines of credit that have been in default for 60 days or more are also reported on nonaccrual status if the senior lien has been in default 120 days or more, unless the loa n is both well secured and in the process of collection. Residential mortgage, home equity, automobile and other consumer loans and leases that have been modified in a TDR and subsequently become past due 90 days are placed on nonaccrual status unless the loan is both well-secured and in the process of collection. Commercial and credit card loans that have been modified in a TDR are classified as nonaccrual unless such loans have sustained repayment performance of six months or more and are reasonably assur ed of repayment in accordance with the restructured terms. Well-secured loans are collateralized by perfected security interests in real and/or personal property for which the Bancorp estimates proceeds from the sale would be sufficient to recover the outs tanding principal and accrued interest balance of the loan and pay all costs to sell the collateral. The Bancorp considers a loan in the process of collection if collection efforts or legal action is proceeding and the Bancorp expects to collect funds suff icient to bring the loan current or recover the entire outstanding principal and accrued interest balance. Nonaccrual commercial loans and nonaccrual credit card loans are generally accounted for on the cost recovery method. The Bancorp believes the cost r ecovery method is appropriate for nonaccrual commercial loans and nonaccrual credit card loans because the assessment of collectability of the remaining recorded investment of these loans involves a high degree of subjectivity and uncertainty due to the na ture or absence of underlying collateral. Under the cost recovery method, any payments received are applied to reduce principal. Once the entire recorded investment is collected, additional payments received are treated as recoveries of amounts previously charged-off until recovered in full, and any subsequent payments are treated as interest income. Nonaccrual residential mortgage loans and other nonaccrual consumer loans are generally accounted for on the cash basis method. The Bancorp believes the cash b asis method is appropriate for nonaccrual residential mortgage and other nonaccrual consumer loans because such loans have generally been written down to estimated collateral values and the collectability of the remaining investment involves only an assess ment of the fair value of the underlying collateral, which can be measured more objectively with a lesser degree of uncertainty than assessments of typical commercial loan collateral. Under the cash basis method, interest income is recognized when cash is received, to the extent such income would have been accrued on the loan’s remaining balance at the contractual rate. Nonaccrual loans may be returned to accrual status when all delinquent interest and principal payments become current in accordance with th e loan agreement and are reasonably assured of repayment in accordance with the contractual terms of the loan agreement, or when the loan is both well-secured and in the process of collection. Commercial loans on nonaccrual status, including those modified in a TDR, as well as criticized commercial loans with aggregate borrower relationships exceeding $1 million, are subject to an individual review to identify charge-offs. The Bancorp does not have an established delinquency threshold for partially or fully charging off commercial loans. Residential mortgage loans, home equity loans and lines of credit and credit card loans that have principal and interest payments that have become past due 180 days are assessed for a charge-off to the ALLL, unless such loan s are both well-secured and in the process of collection. Home equity loans and lines of credit are also assessed for charge-off to the ALLL when such loans or lines of credit have become past due 120 days if the senior lien is also 120 days past due, unle ss such loans are both well-secured and in the process of collection. Automobile and other consumer loans and leases that have principal and interest payments that have become past due 120 days are assessed for a charge-off to the ALLL, unless such loans a re both well-secured and in the process of collection. Restructured Loans and Leases A loan is accounted for as a TDR if the Bancorp, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. A TDR typically involves a modification of terms such as a reduction of the stated interest rate or remaining principal amount of the loan, a reduction of accrued interest or an extension of the maturity date at a stated in terest rate lower than the current market rate for a new loan with similar risk. In 2012, the OCC, a national bank regulatory agency, issued interpretive guidance that requires non-reaffirmed loans included in Chapter 7 bankruptcy filings to be accounted f or as nonperforming TDRs and collateral dependent loans regardless of their payment history and capacity to pay in the future. The Bancorp’s banking subsidiary is a state chartered bank which therefore is not subject to guidance of the OCC. The Bancorp doe s not consider the bankruptcy court’s discharge of the borrower’s debt a concession when the discharged debt is not reaffirmed and as such, these loans are classified as TDRs only if one or more of the previously mentioned concessions are granted. The Banc orp measures the impairment loss of a TDR based on the difference between the original loan’s carrying amount and the present value of expected future cash flows discounted at the original, effective yield of the loan. Residential mortgage loans, home equi ty loans, automobile loans and other consumer loans modified as part of a TDR are maintained on accrual status, provided there is reasonable assurance of repayment and of performance according to the modified terms based upon a current, well-documented cre dit evaluation. Commercial loans and credit card loans modified as part of a TDR are maintained on accrual status provided there is a sustained payment history of six months or more prior to the modification in accordance with the modified terms and collec tability is reasonably assured for all remaining contractual pa yments under the modified terms . TDRs of commercial loans and credit cards that do not have a sustained payment history of six months or more in accordance with their modified terms remain on n onaccrual status until a six month payment history is sustained. In certain cases, commercial TDRs on nonaccrual status may be accounted for using the cash basis method for income recognition, provided that full repayment of principal under the modified te rms of the loan is reasonably assured. Impaired Loans and Leases A loan is considered to be impaired when, based on current information and events, it is probable that the Bancorp will be unable to collect all amounts due (including both principal and int erest) according to the contractual terms of the loan agreement. Impaired loans generally consist of nonaccrual loans and leases, loans modified in a TDR and loans over $ 1 million that are currently on accrual status and not yet modified in a TDR, but for which the Bancorp has determined that it is probable that it will grant a payment concession in the near term due to the borrower’s financial difficulties. For loans modified in a TDR, the contractual terms of the loan agreement refer to the terms specifie d in the original loan agreement. A loan restructured in a TDR is no longer considered impaired in years after the restructuring if the restructuring agreement specifies a rate equal to or greater than the rate the Bancorp was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan is not impaired based on the terms specified by the restructuring agreement. Refer to the ALLL section for discussion regarding the Bancorp’s methodology for identifying impaired loans and determination of the need for a loss accrual. Loans Held for Sale Loans held for sale primarily represent conforming fixed-rate residential mortgage loans originated or acquired with the intent to sell in the secondary market and jumbo residential mortgage loans, commercial loans, other residential mortgage loans and other consumer loans that management has the intent to sell. Loans held for sale may be carried at the lower of cost or fair value, or carried at fair value where the Bancorp has electe d the fair value option of accounting under U.S. GAAP. The Bancorp has elected to measure certain residential mortgage loans originated as held for sale under the fair value option. For loans in which the Bancorp has not elected the fair value option, the lower of cost or fair value is determined at the individual loan level. The fair value of residential mortgage loans held for sale for which the fair value election has been made is estimated based upon mortgage-backed securities prices and spreads to thos e prices or, for certain ARM loans, DCF models that may incorporate the anticipated portfolio composition, credit spreads of asset-backed securities with similar collateral and market conditions. The anticipated portfolio composition includes the effects o f interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. These fair value marks are recorded as a component of noninterest income in mortgage banking net revenue. The Bancorp generally has commitments to sell residential mortgage loans held for sale in the secondary market. Gains or losses on sales are recognized in mortgage banking net revenue. Management’s intent to sell residential mortgage loans classif ied as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be reclassified to loans held for investment a nd, thereafter, reported within the Bancorp’s residential mortgage class of portfolio loans and leases. In such cases, the residential mortgage loans will continue to be measured at fair value, which is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Loans held for sale are placed on nonaccrual status consistent with the Bancorp’s nonaccrual policy for portfolio loans and leases. Other Real Estate Owned OREO, which is included in other assets, re presents property acquired through foreclosure or other proceedings and is carried at the lower of cost or fair value, less costs to sell. All OREO property is periodically evaluated for impairment and decreases in carrying value are recognized as reductio ns in other noninterest income in the Consolidated Statements of Income. For government-guaranteed mortgage loans, upon foreclosure, a separate other receivable is recognized if certain conditions are met for the amount of the loan balance (principal and i nterest) expected to be recovered from the guarantor. This receivable is also included in other assets, separate from OREO, in the Consolidated Balance Sheets. ALLL The Bancorp disaggregates its portfolio loans and leases into portfolio segments for purpo ses of determining the ALLL. The Bancorp’s portfolio segments include commercial, residential mortgage and consumer. The Bancorp further disaggregates its portfolio segments into classes for purposes of monitoring and assessing credit quality based on cert ain risk characteristics. Classes within the commercial portfolio segment include commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leasing. The residential mortgage portfolio segment is also considered a class. Classes within the consumer portfolio segment include home equity, automobile, credit card and other consumer loans and leases. For an analysis of the Bancorp’s ALLL by portfolio segment and credit quality inf ormation by class, refer to Note 6. The Bancorp maintains the ALLL to absorb probable loan and lease losses inherent in its portfolio segments. The ALLL is maintained at a level the Bancorp considers to be adequate and is based on ongoing quarterly ass essments and evaluations of the collectability and historical loss experience of loans and leases. Credit losses are charged and recoveries are credited to the ALLL. Provisions for loan and lease losses are based on the Bancorp’s review of the historical c redit loss experience and such factors that, in management’s judgment, deserve consideration under existing economic conditions in estimating probable credit losses. The Bancorp’s strategy for credit risk management includes a combination of conservative e xposure limits significantly below legal lending limits and conservative underwriting, documentation and collections standards. The strategy also emphasizes diversification on a geographic, industry and customer level, regular credit examinations and quart erly management reviews of large credit exposures and loans experiencing deterioration of credit quality. The Bancorp’s methodology for determining the ALLL is based on historical loss rates, current credit grades, specific allocation on loans modified in a TDR and impaired commercial credits above specified thresholds and other qualitative adjustments. Allowances on individual commercial loans, TDRs and historical loss rates are reviewed quarterly and adjusted as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off experience. An unallocated allowance is maintained to recognize the imprecision in estimating and measuring losses when evaluating allowances for pools of loans. Larger commercial loans included w ithin aggregate borrower relationship balances exceeding $ 1 million that exhibit probable or observed credit weaknesses, as well as loans that have been modified in a TDR, are subject to individual review for impairment. The Bancorp considers the current v alue of collateral, credit quality of any guarantees, the guarantor’s liquidity and willingness to cooperate, the loan structure and other factors when evaluating whether an individual loan is impaired. Other factors may include the industry and geographic region of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower and the Bancorp’s evaluation of the borrower’s management. When individual loans are impaired, allowances are determined based on management’s est imate of the borrower’s ability to repay the loan given the availability of collateral and other sources of cash flow, as well as an evaluation of legal options available to the Bancorp. Allowances for impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, fair value of the underlying collateral or readily observable secondary market values. The Bancorp evaluates the collectability of both principal and interest when assessing t he need for a loss accrual. Historical credit loss rates are applied to commercial loans that are not impaired or are impaired, but smaller than the established threshold of $ 1 million and thus not subject to specific allowance allocations. The loss rates are derived from migration analyses for several portfolio stratifications, which track the historical net charge-off experience sustained on loans according to their internal risk grade. The risk grading system utilized for allowance analysis purposes enco mpasses ten categories. During 2016, the Bancorp refined its estimation techniques for the ALLL to introduce individual loss rate mig r ation analyses for several commercial loan portfolio stratifications as contrasted to the single composite loss rate mig r ation analysis for the entire commercial loan portfolio which was used in prior periods. These refinements did not substantively change any material aspect of the Bancorp’s overall approach in the determination of the ALLL and there have been no material c hanges in assumptions as compared to prior periods that impacted the determination of the current period allowance. Homogenous loans and leases in the residential mortgage and consumer portfolio segments are not individually risk graded. Rather, standard c redit scoring systems and delinquency monitoring are used to assess credit risks and allowances are established based on the expected net charge-offs. Loss rates are based on the trailing twelve month net charge-off history by loan category. Historical los s rates may be adjusted for certain prescriptive and qualitative factors that, in management’s judgment, are necessary to reflect losses inherent in the portfolio. The prescriptive loss rate factors include adjustments for delinquency trends, LTV trends an d refreshed FICO score trends. The Bancorp also considers qualitative factors in determining the ALLL. These include adjustments for changes in policies or procedures in underwriting, monitoring or collections, economic conditions, portfolio mix, lending a nd risk management personnel, results of internal audit and quality control reviews, collateral values and geographic concentrations. The Bancorp considers home price index trends when determining the collateral value qualitative factor. The Bancorp’s pri mary market areas for lending are the Midw estern and Southeastern regions of the U .S. When evaluating the adequacy of allowances, consideration is given to these regional geographic concentrations and the closely associated effect changing economic conditi ons have on the Bancorp’s customers. In the current year, the Bancorp has not substantively changed any material aspect to its overall approach to determining its ALLL for any of its portfolio segments. There have been no material changes in criteria or es timation techniques as compared to prior periods that impacted the determination of the current period ALLL for any of the Bancorp’s portfolio segments. Reserve for Unfunded Commitments The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in other liabilities in the Consolidated Balance Sheets. The determination of the adequacy of the reserve is based upon an eva luation of the unfunded credit facilities, including an assessment of historical commitment utilization experience, credit risk grading and historical loss rates based on credit grade migration. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the Bancorp’s ALLL, as previously discussed. Net adjustments to the reserve for unfunded commitments are included in other noninterest expense in the Consolidated Statements of Income. Loan Sales a nd Securitizations The Bancorp periodically sells loans through either securitizations or individual loan sales in accordance with its investment policies. The sold loans are removed from the balance sheet and a net gain or loss is recognized in the Consol idated Financial Statements at the time of sale. The Bancorp typically isolates the loans through the use of a VIE and thus is required to assess whether the entity holding the sold or securitized loans is a VIE and whether the Bancorp is the primary benef iciary and therefore consolidator of that VIE. If the Bancorp holds the power to direct activities most significant to the economic performance of the VIE and has the obligation to absorb losses or right to receive benefits that could potentially be signif icant to the VIE, then the Bancorp will generally be deemed the primary beneficiary of the VIE. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for u nder the equity method of accounting or other accounting standards as appropriate. Refer to Note 11 for further information on consolidated and non-consolidated VIEs. The Bancorp’s loan sales and securitizations are generally structured with servicing r etained. As a result, servicing rights resulting from residential mortgage loan sales are initially recorded at fair value and subsequently amortized in proportion to and over the period of estimated net servicing revenues and are reported as a component o f mortgage banking net revenue in the Consolidated Statements of Income. Servicing rights are assessed for impairment monthly, based on fair value, with temporary impairment recognized through a valuation allowance and other-than-temporary impairment recog nized through a write-off of the servicing asset and related valuation allowance. Key economic assumptions used in measuring any potential impairment of the servicing rights include the prepayment speeds of the underlying loans, the weighted-average life a nd the OAS spread , as applicable. The primary risk of material changes to the value of the servicing rights resides in the potential volatility in the economic assumptions used, particularly the prepayment speeds. The Bancorp monitors risk and adjusts its valuation allowance as necessary to adequately reserve for impairment in the servicing portfolio. For purposes of measuring impairment, the mortgage servicing rights are stratified into classes based on the financial asset type (fixed-rate vs. adjustable-r ate) and interest rates. Fees received for servicing loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in noninterest income in the Consolidated Statements of Income as loan payme nts are received. Costs of servicing loans are charged to expense as incurred. Reserve for Representation and Warranty Provisions Conforming residential mortgage loans sold to unrelated third parties are generally sold with representation and warranty pro visions. A contractual liability arises only in the event of a breach of these representations and warranties and, in general, only when a loss results from the breach. The Bancorp may be required to repurchase any previously sold loan or indemnify (make w hole) the investor or insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading. The Bancorp establishes a residential mortgage repurchase reserve related to various representations and warranties tha t reflects management’s estimate of losses based on a combination of factors. The Bancorp’s estimation process requires management to make subjective and complex judgments about matters that are inherently uncertain, such as future demand expectations, eco nomic factors and the specific characteristics of the loans subject to repurchase. Such factors incorporate historical investor audit and repurchase demand rates, appeals success rates, historical loss severity and any additional information obtained from the GSEs regarding future mortgage repurchase and file request criteria. At the time of a loan sale, the Bancor |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow | |
Supplemental Cash Flow Information | 2 . SUPPLEMENTAL CASH FLOW INFORMATION Cash payments related to interest and income taxes in addition to non-cash investing and financing activities are presented in the following table for the years ended December 31: ($ in millions) 2016 2015 2014 Cash Payments: Interest $ 578 475 429 Income taxes 800 400 550 Non-cash Investing and Financing Activities: Portfolio loans to loans held for sale 238 487 855 Loans held for sale to portfolio loans 28 288 31 Portfolio loans to OREO 49 105 145 Loans held for sale to OREO - - 2 Capital lease - 4 15 |
Restriction on Cash, Dividends
Restriction on Cash, Dividends and Other Capital Actions | 12 Months Ended |
Dec. 31, 2016 | |
Restriction On Cash | |
Restriction on Cash, Dividends and Other Capital Actions | 3 . RESTRICTIONS ON CASH, DIVIDENDS AND OTHER CAPITAL ACTIONS Reserve Requirement The FRB, under Regulation D, requires that banks hold cash in reserve against deposit liabilities when total reservable deposit liabilities are greater than the regulatory exemption , kn own as the reserve requirement. The reserve requirement is calculated based on a two-week average of daily net transaction account deposits as defined by the FRB and may be satisfied with average vault cash during the following two-week maintenance period . When vault cash is not suffici ent to meet the reserve requirement, the remaining amount must be satisfied with average funds held at the FRB. The noninterest-bearing portion of the Bancorp’s deposit at the FRB is held in cash and due from banks in the Consolidated Balance Sheets while the interest-bearing portion is held in other short-term investments in the Consolidated Balance Sheets. At December 31, 2016 and 2015 , th e Bancorp’s banking subsidiary reserve requirement was $ 1.6 billion and $ 1.9 billion, respectively. Additionally , the Bancorp’s banking subsidiary average reserve requirement was $ 1.6 billion and $ 1.8 billion in 2016 and 2015 , respectively. Restrictions on Cash Dividends The principal source of income and funds for the Bancorp (parent company) are dividends f rom its subsidiaries. The dividends paid by the Bancorp’s banking subsidiary are subject to regulations and limitations prescribed by state and federal supervisory agencies. The Bancorp’s banking subsidiary paid the Bancorp’s nonbank subsidiary holding com pany , which in turn paid the Bancorp $ 1.9 billion and $ 1.0 b illion in dividends during the years ended December 31, 2016 and 2015 , respectively. The Bancorp’s nonbank-subsidiaries are also limited by certain federal and state statutory provisions and regulations covering the amount of dividends that may be paid in any given year. Capital Actions In 2011, the FRB adopted the capital plan rule, which requires BHCs with consolidated assets of $ 50 billion or more to submit annual capital plans to the FRB for review. Under the rule, these capital plans must include detailed descriptions of the following: the BHC’s internal processes for assessing capital adequacy; the policies governing capital actions such as common stock issuances, dividends and share re purchases; and all planned capital actions over a nine-quarter planning horizon. Further, each BHC must also report to the FRB the results of stress tests conducted by the BHC under a number of scenarios that assess the sources and uses of capital under ba seline and stressed economic scenarios. The FRB launched the 2016 stress testing program and CCAR on January 28, 2016, with firm submissions of stress test results and capital plans due to the FRB on April 5, 2016, which the Bancorp submitted as required. The FRB’s review of the capital plan assessed the comprehensiveness of the capital plan, the reasonableness of the assumptions and the analysis underlying the capital plan. Additionally, the FRB reviewed the robustness of the capital adequacy process, the capital policy and the Bancorp’s ability to maintain capital above each minimum regulatory capital ratio on a pro forma basis under expected and stressful conditions throughout the planning horizon. On June 29, 2016, the Bancorp announced the results of i ts capital plan submitted to the FRB as part of the 2016 CCAR. For BHCs that proposed capital distributions in their plans, the FRB either objected to the plan or provided a non-objection whereby the FRB permitted the proposed capital distributions. The FR B indicated to the Bancorp that it did not object to the following capital actions for the period beginning July 1, 2016 and ending June 30, 2017: The potential increase in the quarterly common stock dividend to $0.14 in the fourth quarter of 2016 ; The po tential repurchase of common shares in an amount up to $ 660 million, which includes $ 84 million in repurchases related to share issuances under employee benefit plans; The additional ability to repurchase shares in the amount of any realized after-tax gains from the sale of Vantiv, Inc. common stock, if executed; The additional ability to repurchase shares in the amount of any realized after-tax gains from the termination and settlement of any portion of the TRA with Vantiv, Inc., if executed. As conte mplated by the 2015 CCAR, during the first quarter of 2016, the Bancorp entered into a $240 million accelerated share repurchase transaction and during the second quarter of 2016, the Bancorp repurchased approximately $26 million of its outstanding common stock through open market share repurchase transactions. Additionally, as contemplated by the 2016 CCAR, the Bancorp entered into $240 million and $155 million accelerated share repurchase transaction s during the third and fourth quarters of 2016, respecti vely. For further information, refer to Note 23 . In the fourth quarter of 2016 , the Bancorp increased the quarterly common stock dividend to $ 0.14 . Additionally, as a CCAR institution, the Bancorp is required to disclose the results of its company-run stress test under the supervisory severely adverse scenario and to provide information related to the types of risk included in its stress testing; a general description of the methodologies used; estimates of certain financial results and pro forma capital ratios; and an explanation of the most significant causes of changes in regulatory capital ratios. On June 23, 2016 the Bancorp publicly disclosed the results of its company-run stress test as required by the DFA stress testing rules in a pre ss release. The BHCs that participated in the 2016 CCAR, including the Bancorp, were required to also conduct mid-cycle company-run stress tests using data as of June 30, 2016. The stress tests must be based on three BHC defined scenarios – baseline, adver se and severely adverse. The Bancorp reported its mid-cycle stress test results to the FRB by the required October 5, 2016 submission date. In addition, the Bancorp published a Form 8-K providing a summary of the results under the severely adverse scenario on October 27, 2016. These results represented estimates of the Bancorp’s results from the third quarter of 2016 through the third quarter of 2018 under the severely adverse scenario, which is considered highly unlikely to occur. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2016 | |
Investment Securities | |
Investment Securities | 4. INVESTMENT SECURITIES The following table provides the amortized cost, fair value and unrealized gains and losses for the major categories of the available-for-sale and other and held-to-maturity investment securities portfolios as of December 31: 2016 2015 Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair ($ in millions) Cost Gains Losses Value Cost Gains Losses Value Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 547 2 - 549 1,155 32 - 1,187 Obligations of states and political subdivisions securities 44 1 - 45 50 2 - 52 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 15,525 178 (95) 15,608 14,811 283 (13) 15,081 Agency commercial mortgage-backed securities 9,029 87 (61) 9,055 7,795 100 (33) 7,862 Non-agency commercial mortgage-backed securities 3,076 51 (15) 3,112 2,801 35 (32) 2,804 Asset-backed securities and other debt securities 2,106 28 (18) 2,116 1,363 13 (21) 1,355 Equity securities (b) 697 3 (2) 698 703 2 (2) 703 Total available-for-sale and other securities $ 31,024 350 (191) 31,183 28,678 467 (101) 29,044 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 24 - - 24 68 - - 68 Asset-backed securities and other debt securities 2 - - 2 2 - - 2 Total held-to-maturity securities $ 26 - - 26 70 - - 70 Includes interest-only mortgage-backed securities of $ 60 and $ 50 as of December 31, 2016 and 2015 , respectively, recorded at fair value with fair value changes recorded in securities gains, net , i n the Consolidated Statements of Income . Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 358 , and $ 1 , respectively, at December 31, 2016 and $ 248 , $ 355 and $ 1 , respectively, at December 31, 2015 , that are carried at cost, and certain mutual fund and equity security holdings. The following table presents realized gains and losses that were recognized in income from available-for-sale securities for the years ended December 31: ($ in millions) 2016 2015 2014 Realized gains $ 72 97 70 Realized losses (45) (76) (9) OTTI (16) (5) (24) Net realized gains (a) $ 11 16 37 (a) Excludes net losses on interest-only mortgage-backed securities of $ 4 , $ 4 and $ 17 for the years ended December 31, 2016 , 2015 and 2014 , respectively The following table provides a summary of OTTI by security type: ($ in millions) 2016 2015 2014 Available-for-sale and other debt securities $ (15) (5) (24) Available-for-sale equity securities (1) - - Total OTTI (a) $ (16) (5) (24) (a) Included in securiti es gains, net, in the Consolidated Statements of Income . Trading securities were $410 million as of December 31, 2016, compared to $386 million at December 31, 2015. The following table presents total gains and losses that were recognized in income from trading securities for the years ended December 31: ($ in millions) 2016 2015 2014 Realized gains (a) $ 9 6 8 Realized losses (b) (13) (10) (7) Net unrealized gains (losses) (c) 4 (3) (3) Total trading securities losses $ - (7) (2) Includes realized gains of $ 7 , $ 6 and $ 4 for the years ended December 31, 2016 , 2015 and 2014 , respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income. Includes realized losses of $ 10 , $ 10 and $ 7 for the years ended December 31, 2016 , 2015 and 2014 , respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income. Includes an immaterial amount of net unrealized gains for the years ended December 31, 2016 and 2015 , respectively, and an immaterial amount of net unrealized losses for the year ended 2014 recorded in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income. At December 31, 2016 and 2015 , securities with a fair value of $ 10.1 billion and $ 1 1.0 billion, respectively, were pledged to secure borrowings, public deposits, trust funds, derivative contracts and for other purposes as required or permitted by law. The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale and other and held-to-maturity investment securities as of December 31, 2016 are shown in the following table: Available-for-Sale and Other Held-to-Maturity ($ in millions) Amortized Cost Fair Value Amortized Cost Fair Value Debt securities: (a) Less than 1 year $ 328 332 2 2 1-5 years 7,290 7,347 11 11 5-10 years 20,043 20,146 12 12 Over 10 years 2,666 2,660 1 1 Equity securities 697 698 - - Total $ 31,024 31,183 26 26 (a) Actual maturities may differ from contractu al maturities when a right to call or prepay obligations exists with or without call or prepayment penalties. The following table provides the fair value and gross unrealized losses on available-for-sale and other securities in an unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized ($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses 2016 U.S. Treasury and federal agencies securities $ 199 - - - 199 - Agency residential mortgage-backed securities 6,223 (88) 172 (7) 6,395 (95) Agency commercial mortgage-backed securities 3,183 (61) - - 3,183 (61) Non-agency commercial mortgage-backed securities 1,052 (15) - - 1,052 (15) Asset-backed securities and other debt securities 422 (8) 336 (10) 758 (18) Equity securities - - 37 (2) 37 (2) Total $ 11,079 (172) 545 (19) 11,624 (191) 2015 Agency residential mortgage-backed securities $ 2,903 (13) - - 2,903 (13) Agency commercial mortgage-backed securities 3,111 (33) - - 3,111 (33) Non-agency commercial mortgage-backed securities 1,610 (32) - - 1,610 (32) Asset-backed securities and other debt securities 623 (11) 226 (10) 849 (21) Equity securities 1 (1) 37 (1) 38 (2) Total $ 8,248 (90) 263 (11) 8,511 (101) At December 31, 2016 and 2015 , an immaterial amount and 1 % , respectively, of unrealized losses in the available-for-sale and other securities portfolio were represented by non -rated securities |
Loans and Leases
Loans and Leases | 12 Months Ended |
Dec. 31, 2016 | |
Loans and Leases Receivable | |
Loans and Leases | 5 . LOANS AND LEASES The Bancorp diversifies its loan and lease portfolio by offering a variety of loan and lease products with various payment terms and rate structures. Lending activities are generally concentrated within those states in which the Bancorp has banking centers and are primarily located in the Midwestern and Southeastern regions of the U.S. The Bancorp’s commercial loan portfolio consists of lending to various industry types. Management periodically reviews the performance of its loan and lease products to evaluate whether they are performing within acceptable interest rate and credit risk levels and changes are made to underwriting policies and procedures as needed. The Bancorp maintains an allowance to absorb loan and lease losses inherent in the portfo lio. For further information on credit quality and the ALLL, refer to Note 6. The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans and leases classified based upon product or collateral as of December 31: ($ in millions) 2016 2015 Loans held for sale: Commercial and industrial loans $ 60 20 Commercial mortgage loans 5 34 Residential mortgage loans 686 708 Home equity - 35 Automobile loans - 4 Credit card - 101 Other consumer loans - 1 Total loans held for sale $ 751 903 Portfolio loans and leases: Commercial and industrial loans $ 41,676 42,131 Commercial mortgage loans 6,899 6,957 Commercial construction loans 3,903 3,214 Commercial leases 3,974 3,854 Total commercial loans and leases 56,452 56,156 Residential mortgage loans 15,051 13,716 Home equity 7,695 8,301 Automobile loans 9,983 11,493 Credit card 2,237 2,259 Other consumer loans and leases 680 657 Total consumer loans and leases 35,646 36,426 Total portfolio loans and leases $ 92,098 92,582 Total portfolio loans and leases are recorded net of unearned income, which totaled $ 503 million as of December 31, 2016 and $ 624 m illion as of December 31, 2015 . Additionally, portfolio loans and leases are recorded net of unamortized premiums and discount s, deferred direct loan origination fees and costs and fair value adjustments (associated with acquired loans or loans designated as fair value upon origination) which totaled a net premium of $ 240 million and $ 220 million as of December 31, 2016 and 2015 , respectively . The Ba ncorp’s FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $ 13.1 billion and $ 11 .9 billion at December 31, 2016 and 2015 , respectively, pledged at the FHLB, and loans of $ 40.0 billion and $ 33.7 billion at December 31, 2016 and 2015 , respectively, pledged at the FRB. The following table presents a summary of the total loans and leases owned by the Bancorp and net charge-offs (recoveries) as of and for the years ended December 31: 90 Days Past Due Net Carrying Value and Still Accruing Charge-Offs (Recoveries) ($ in millions) 2016 2015 2016 2015 2016 2015 Commercial and industrial loans $ 41,736 42,151 4 7 172 229 Commercial mortgage loans 6,904 6,991 - - 15 27 Commercial construction loans 3,903 3,214 - - (1) 3 Commercial leases 3,974 3,854 - - 4 2 Residential mortgage loans 15,737 14,424 49 40 10 17 Home equity 7,695 8,336 - - 27 39 Automobile loans 9,983 11,497 9 10 35 28 Credit card 2,237 2,360 22 18 80 82 Other consumer loans and leases 680 658 - - 20 19 Total loans and leases $ 92,849 93,485 84 75 362 446 Less: Loans held for sale $ 751 903 Total portfolio loans and leases $ 92,098 92,582 The Bancorp engages in commercial lease products primarily related to the financing of commercial equipment. The Bancorp had $ 3.3 billion and $ 3.1 billion of direct financing leases , net of unearned income, at December 31, 2016 and 2015 , respectively, and $ 701 million and $ 801 million of leveraged leases , net of unearned income, at December 31, 2016 and 2015 , respectively. Pre-tax income from leveraged leases was $ 38 million and included $ 16 million of gains on early terminations during the year ended December 31, 2016 . Pre-tax income from leveraged leases was $ 27 million and included $ 7 million of gains on early terminations during the year ended D ecember 31, 2015 . T he tax effect of this income was a benefit of $ 10 million and an expens e $ 1 million durin g th e years ended December 31, 2016 and 2015 , respectively . The following table provides the components of the commercial lease financing portfolio as of December 31: ($ in millions) 2016 2015 Rentals receivable, net of principal and interest on nonrecourse debt $ 3,551 3,550 Estimated residual value of leased assets 903 906 Initial direct cost, net of amortization 23 22 Gross investment in lease financing 4,477 4,478 Unearned income (503) (624) Net investment in commercial lease financing (a) $ 3,974 3,854 The accumulated allowance for uncollectible m inimum lease payments was $ 15 and $ 47 at December 31, 2016 and 2015 , respectively. The Bancorp periodically reviews residual values associated with its leasing portfolio. Declines in residual values that are deemed to be other-than-temporary are recognized as a loss. The Bancorp recognized $ 1 million and $ 8 million of residual value write-downs related to commercial leases for the year s ended December 31, 2016 and 2015 , respectively. The residual value write-downs related to commercial leases are recorded in corporate banking revenue in the Consolidated Statements of Income. At December 31, 2016 , the minimum future lease payments recei vable for each of the years 2017 through 2021 was $ 813 million, $ 716 million, $ 611 million, $ 482 million and $ 361 million, respectively. |
Credit Quality and the Allowanc
Credit Quality and the Allowance for Loan and Lease Losses | 12 Months Ended |
Dec. 31, 2016 | |
Credit Quality and the Allowance for Loan and Leases Losses | |
Credit Quality and the Allowance for Loan and Lease Losses | 6. CREDIT QUALITY AND THE ALLO WANCE FOR LOAN AND LEASE LOSSES The Bancorp disaggregates ALLL balances and transactions in the ALLL by portfolio segment. Credit quality related disclosures for loans and leases are further disaggregated by class . Allowance for Loan and Lease Losses The following tables summarize transactions in the ALLL by portfolio segment for the years ended December 31: Residential 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 840 100 217 115 1,272 Charge-offs (232) (19) (205) - (456) Recoveries of losses previously charged-off 42 9 43 - 94 Provision for loan and lease losses 181 6 159 (3) 343 Balance, end of period $ 831 96 214 112 1,253 Residential 2015 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 875 104 237 106 1,322 Charge-offs (298) (28) (216) - (542) Recoveries of losses previously charged-off 37 11 48 - 96 Provision for loan and lease losses 226 13 148 9 396 Balance, end of period $ 840 100 217 115 1,272 Residential 2014 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 1,058 189 225 110 1,582 Charge-offs (299) (139) (241) - (679) Recoveries of losses previously charged-off 38 13 53 - 104 Provision for loan and lease losses 78 41 200 (4) 315 Balance, end of period $ 875 104 237 106 1,322 The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: Residential As of December 31, 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 118 a (c) 68 44 - 230 Collectively evaluated for impairment 713 28 170 - 911 Unallocated - - - 112 112 Total ALLL $ 831 96 214 112 1,253 Portfolio loans and leases: (b) Individually evaluated for impairment $ 904 a (c) 652 371 - 1,927 Collectively evaluated for impairment 55,548 14,253 20,224 - 90,025 Loans acquired with deteriorated credit quality - 3 - - 3 Total portfolio loans and leases $ 56,452 14,908 20,595 - 91,955 Includes $ 2 related to leveraged leases at December 31, 2016 . Excludes $ 143 of residential mortgage loans measured at fair value , and includes $ 701 of leveraged leases, net of unearned income, at December 31, 2016 . Includes five restructured loans at December 31, 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $ 26 and an ALLL of $ 18 . Residential As of December 31, 2015 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 119 a (c) 67 49 - 235 Collectively evaluated for impairment 721 33 168 - 922 Unallocated - - - 115 115 Total ALLL $ 840 100 217 115 1,272 Portfolio loans and leases: (b) Individually evaluated for impairment $ 815 a (c) 630 424 - 1,869 Collectively evaluated for impairment 55,341 12,917 22,286 - 90,544 Loans acquired with deteriorated credit quality - 2 - - 2 Total portfolio loans and leases $ 56,156 13,549 22,710 - 92,415 Includes $ 5 related to leveraged leases at December 31, 2015 . Excludes $ 167 of residential mortgage loans measured at fair value , and includes $ 8 01 of leveraged leases, net of unearned income at December 31, 2015 . Includes five restructured loans at December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $ 27 and an ALLL of $ 15 . C REDIT RISK PROFILE Commercial Portfolio Segment For purposes of analyzing historic loss rates used in the determination of the ALLL and monitoring the credit quality and risk characteristics of its commercial portfolio segment, the Bancorp disaggregates the segment into the following classes: commercial and industrial, commercial mortgage owner- occupied, commercial mortgage non owner- occupied, commerc ial construction and commercial leas es . To facilitate the monitoring of credit quality within the commercial portfolio segment, and for purposes of analyzing historical loss rates used in the determination of the ALLL for the commercial portfolio segment, the Bancorp utilizes the following categories of credit grades: pass, special mention, substandard, doubtful and loss. The five categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borr owers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers that do not have identified potential or well defined weaknesses and for which there is a high likelihood of orderly repayment, are updated at least annually ba sed on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter. The Bancorp assigns a special mention rating to loans and leases that have potent ial weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or lease or the Bancorp’s credit position. The Bancorp assigns a substandard rating to loans and leases that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans and leases have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Bancorp will sustain some loss if the deficiencies noted are not addressed and corrected. The Bancorp assigns a doubtf ul rating to loans and leases that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionab le and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estima ted loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. Loans and leases cl assified as loss are considere d uncollectible and are charged- off in the period in which they are determined to be uncollectible. Because loans and leases in this category are ful ly charged-off , they are not included in the following tables. The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class: Special As of December 31, 2016 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 38,844 1,204 1,604 24 41,676 Commercial mortgage owner-occupied loans 3,168 72 117 3 3,360 Commercial mortgage nonowner-occupied loans 3,466 4 69 - 3,539 Commercial construction loans 3,902 1 - - 3,903 Commercial leases 3,894 54 26 - 3,974 Total commercial loans and leases $ 53,274 1,335 1,816 27 56,452 Special As of December 31, 2015 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 38,756 1,633 1,742 - 42,131 Commercial mortgage owner-occupied loans 3,344 124 191 - 3,659 Commercial mortgage nonowner-occupied loans 3,105 63 130 - 3,298 Commercial construction loans 3,201 4 9 - 3,214 Commercial leases 3,724 93 37 - 3,854 Total commercial loans and leases $ 52,130 1,917 2,109 - 56,156 Residential Mortgage and Consumer Portfolio Segments For purposes of monitoring the credit quality and risk characteristics of its consumer portfolio segment, the Bancorp disaggregates the segment into the following classes: home equity, automobile loans, credit card and other consumer loans and leases. The Bancorp’s residential mortgage portfolio segment is also a separate class. The Bancorp considers repayment performance as the best indicator of credit quality for residential mortgage and consumer loans , which includes both the delinquency status and performing versus nonperforming status of the loans. The delinquency status of all residential mortgage and consumer loans is presented by class in the age analysis section while the performing versus nonper forming status is presented in the following table . Refer to the nonaccrual loans and leases section of Note 1 for additional information on delinquenc y and nonperforming loan accounting and reporting policies . The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of December 31: 2016 2015 ($ in millions) Performing Nonperforming Performing Nonperforming Residential mortgage loans (a) $ 14,874 34 13,498 51 Home equity 7,622 73 8,222 79 Automobile loans 9,981 2 11,491 2 Credit card 2,209 28 2,226 33 Other consumer loans and leases 680 - 657 - Total residential mortgage and consumer loans and leases (a) $ 35,366 137 36,094 165 (a) Excludes $ 143 and $ 167 of loans measured at fair value at December 31, 2016 and 2015 , respectively . Age Analysis of Past Due Loans and Leases The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases, by age and class: Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2016 ($ in millions) Leases (c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 41,495 87 94 181 41,676 4 Commercial mortgage owner-occupied loans 3,332 6 22 28 3,360 - Commercial mortgage nonowner-occupied loans 3,530 2 7 9 3,539 - Commercial construction loans 3,902 1 - 1 3,903 - Commercial leases 3,972 - 2 2 3,974 - Residential mortgage loans (a)(b) 14,790 37 81 118 14,908 49 Consumer loans and leases: Home equity 7,570 68 57 125 7,695 - Automobile loans 9,886 85 12 97 9,983 9 Credit card 2,183 28 26 54 2,237 22 Other consumer loans and leases 679 1 - 1 680 - Total portfolio loans and leases (a) $ 91,339 315 301 616 91,955 84 Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2016 , $ 1 1 0 of these loans were 30-89 days past due and $ 3 12 were 90 days or more past due. The Bancorp recognized $ 6 of losses during the year ended December 31, 2016 due to claim denials and curtailments a ssociated with these insured or guaranteed loans. Includes accrual and nonaccrual loans and leases. Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2015 ($ in millions) Leases (c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 41,996 55 80 135 42,131 7 Commercial mortgage owner-occupied loans 3,610 15 34 49 3,659 - Commercial mortgage nonowner-occupied loans 3,262 9 27 36 3,298 - Commercial construction loans 3,214 - - - 3,214 - Commercial leases 3,850 3 1 4 3,854 - Residential mortgage loans (a)(b) 13,420 37 92 129 13,549 40 Consumer loans and leases: Home equity 8,158 82 61 143 8,301 - Automobile loans 11,407 75 11 86 11,493 10 Credit card 2,207 29 23 52 2,259 18 Other consumer loans and leases 656 1 - 1 657 - Total portfolio loans and leases (a) $ 91,780 306 329 635 92,415 75 Excludes $ 167 of residential mortgage loans measured at fair value at December 31, 2015 . Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA . As of December 31, 2015 , $ 102 of these loans were 30-89 days past due and $ 335 were 90 days or more past due. The Bancorp recognized $ 8 of losses during the year ended December 31, 2015 due to claim denials and curtailments associated with these insured or guaranteed loans . Includes accrual and nonaccrual loans and leases . Impaired Portfolio Loans and Leases Larger commercial loans and leases included within aggregate borrower relationship balances exceeding $ 1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp also performs an individual review on loans and leases that are restructured in a TDR . The Bancorp considers the current value of collateral, credit quality of any guarantees, the loan structure and other factors when evaluating whether an individu al loan or lease is impaired. Other factors may include the geography and industry of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower and the Bancorp’s evaluation of the borrower’s management. Smaller- bala nce homogenous loans or leases that are collectively evaluated for impairment are not included in the following tables. The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR as of December 31: Unpaid Principal Recorded 2016 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 440 414 94 Commercial mortgage owner-occupied loans (b) 24 16 5 Commercial mortgage nonowner-occupied loans 7 6 1 Commercial leases 2 2 - Restructured residential mortgage loans 471 465 68 Restructured consumer loans and leases: Home equity 202 201 30 Automobile loans 12 12 2 Credit card 52 52 12 Total impaired portfolio loans and leases with a related ALLL $ 1,210 1,168 212 With no related ALLL: Commercial loans and leases: Commercial and industrial loans $ 394 320 - Commercial mortgage owner-occupied loans 36 35 - Commercial mortgage nonowner-occupied loans 93 83 - Commercial leases 2 2 - Restructured residential mortgage loans 207 187 - Restructured consumer loans and leases: Home equity 107 104 - Automobile loans 3 2 - Total impaired portfolio loans and leases with no related ALLL $ 842 733 - Total impaired portfolio loans and leases $ 2,052 1,901 a (a) 212 Includes $ 322 , $ 635 and $ 323 , respectively, of commercial , residential mortgage and consumer portfolio TDRs on accrual status and $ 192 , $ 17 and $ 48 , respectively , of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2016 . Excludes five restructured l oans at December 31 , 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $ 26 , a recorded investment of $ 26 and an ALLL of $ 18 . Unpaid Principal Recorded 2015 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 412 346 84 Commercial mortgage owner-occupied loans (b) 28 21 5 Commercial mortgage nonowner-occupied loans 75 64 12 Commercial construction loans 4 4 2 Commercial leases 3 3 1 Restructured residential mortgage loans 450 444 67 Restructured consumer loans and leases: Home equity 226 225 32 Automobile loans 17 16 2 Credit card 61 61 15 Total impaired portfolio loans and leases with a related ALLL $ 1,276 1,184 220 With no related ALLL: Commercial loans and leases: Commercial and industrial loans $ 228 182 - Commercial mortgage owner-occupied loans 54 51 - Commercial mortgage nonowner-occupied loans 126 111 - Commercial construction loans 9 5 - Commercial leases 1 1 - Restructured residential mortgage loans 210 186 - Restructured consumer loans and leases: Home equity 122 119 - Automobile loans 3 3 - Total impaired portfolio loans and leases with no related ALLL $ 753 658 - Total impaired portfolio loans and leases $ 2,029 1,842 a (a) 220 Includes $ 491 , $ 607 and $ 372 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 203 , $ 23 and $ 52 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015 . Excludes five restructured loans at December 31, 2015 associated with a consolidated VI E in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $ 27 , a recorded investment of $ 27 and an ALLL of $ 15 . The following table summarizes the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the years ended December 31: 2016 2015 2014 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 691 10 663 21 786 25 Commercial mortgage owner-occupied loans (a) 63 1 92 2 149 4 Commercial mortgage nonowner-occupied loans 139 5 224 7 268 8 Commercial construction loans 3 - 41 1 92 2 Commercial leases 5 - 5 - 13 - Restructured residential mortgage loans 647 25 586 23 1,273 54 Restructured consumer loans and leases: Home equity 325 12 361 13 394 20 Automobile loans 17 - 22 1 24 1 Credit card 56 5 68 6 62 5 Total average impaired portfolio loans and leases $ 1,946 58 2,062 74 3,061 119 (a) Excludes five restructured loans associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 26 , $ 27 and $28 for the years ended December 31, 2016 , 2015 and 2014 , respectively . A n immaterial amount of interest income was recognized during the years ended December 31, 2016 , 2015 and 2014 . Nonperforming Assets Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured commercial and credit card loans which have not yet met the requirements to be classified as a performing asset; restructured consumer loans which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property. The following table presents the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of December 31: ($ in millions) 2016 2015 Commercial loans and leases: Commercial and industrial loans $ 478 259 Commercial mortgage owner-occupied loans (a) 32 46 Commercial mortgage nonowner-occupied loans 9 35 Commercial leases 4 1 Total nonaccrual portfolio commercial loans and leases 523 341 Residential mortgage loans 34 51 Consumer loans and leases: Home equity 73 79 Automobile loans 2 2 Credit card 28 33 Total nonaccrual portfolio consumer loans and leases 103 114 Total nonaccrual portfolio loans and leases (b)(c) $ 660 506 OREO and other repossessed property 78 141 Total nonperforming portfolio assets (b)(c) $ 738 647 Excludes $ 19 and $ 20 of restructured nonaccrual loans at December 31, 2016 and 2015 , respectively, associated with a consolidated VIE in which the Bancorp has no continuing credit risk due the risk being assumed by a third party. Excludes $ 1 3 and $ 12 of nonaccrual loans held for sale at December 31, 2016 and 2015 , respectively. Includes $ 4 and $ 6 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at December 31, 2016 and 2015 , respectively , and $ 1 and $ 2 of restructured nonaccrual government insured commercial loans at December 31, 2016 and 2015 , respectively . The Bancorp’s recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction was $ 260 million and $ 303 million as of December 31, 2016 and 2015 , respectively. Troubled Debt Restructurings If a borrower is experiencing financial difficulty, the Bancorp may consider, in certain circumstances, modifying the terms of their loan to maximize collection of amounts due . Within each of the Bancorp’s loan classes, TDRs typically involve either a reduction of the stated interest rate of the loan, an extension o f the loan’s maturity date with a stated rate lower than the current market rate for a new loan with similar risk, or in limited circumstances, a reduction of the principal balance of the loan or the loan’s accrued interest. Modifying the terms of a loan may result in an increase or decrease to the ALLL depending upon the terms modified, the method used to measure the ALLL for a loan prior to modification, and whether any charge-offs were recorded on the loan before o r at the time of modification. Ref er to the ALLL section of Note 1 for information on the Bancorp’s ALLL methodology. Upon modification of a loan , the Bancorp measures the related imp airment as the difference between the estimated future cash fl ows expected to be collected on the modified loan, discounted at the original effective yield of the loan , and the carrying value of the loan. The resulting measurement may result in the need for minimal or no valuation allowance because it is probable that all cash flows will be collected under the modified terms of the loan. In addition, if the stated interest rate was increased in a TDR, the cash flows on the modified loan, using the pre- modification interest rate as the discount rate, often exceed the recorded investment of the loan. Conversely, upon a modification that reduces the stated interest rate on a loan, the Bancorp recognizes an impairm ent loss as an increase to the ALLL . If a TDR involves a reduction of the principal balance of the loan or the loan’s accrued i nterest, that amount is charged- off to the ALLL. As of December 31, 2016 , the Bancorp had $ 82 million and $ 57 million in line of credit and letter of credit commitments, respectively, compared to $ 39 million and $ 23 million in line of credit and letter of credit commitments as of December 31, 2015 , respectively, to lend additional funds to borrowers whose term s have been modified in a TDR. The following tables provide a summary of loans, by class, modified in a TDR by the Bancorp during the years ended December 31: Recorded investment Number of loans in loans modified Increase Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon 2016 ($ in millions) (a) during the year (b) during the year modification modification Commercial loans and leases: Commercial and industrial loans 74 $ 183 14 - Commercial mortgage owner-occupied loans 12 11 - - Commercial mortgage nonowner-occupied loans 4 5 2 - Commercial leases 5 16 - - Residential mortgage loans 924 137 8 - Consumer loans: Home equity 219 15 - - Automobile loans 221 3 - - Credit card 9,519 43 8 4 Total portfolio loans and leases 10,978 $ 413 32 4 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded investment Increase Number of loans in loans modified (Decrease) Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon 2015 ($ in millions) (a) during the year (b) during the year modification modification Commercial loans: Commercial and industrial loans 77 $ 146 7 3 Commercial mortgage owner-occupied loans 18 16 (2) - Commercial mortgage nonowner-occupied loans 12 7 (1) - Residential mortgage loans 1,089 155 8 - Consumer loans: Home equity 267 16 (1) - Automobile loans 440 7 1 - Credit card 12,569 62 11 7 Total portfolio loans 14,472 $ 409 23 10 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded investment Increase Number of loans in loans modified (Decrease) Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon 2014 ($ in millions) (a) during the year (b) during the year modification modification Commercial loans: Commercial and industrial loans 128 $ 230 12 6 Commercial mortgage owner-occupied loans 32 54 (1) - Commercial mortgage nonowner-occupied loans 28 30 (3) 2 Residential mortgage loans 1,093 160 8 - Consumer loans: Home equity 284 12 - - Automobile loans 608 10 1 - Credit card 8,929 52 10 - Total portfolio loans 11,102 $ 548 27 8 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . The Bancorp considers TDRs that become 90 days or more past due under the modified terms as subsequently defaulted. For commercial loans not subject to individual review for impairment, loss rates that are applied for purposes of determining the ALLL include historical losses associated with subsequent defaults on loans previously modified in a TDR. For consumer loans, the Bancorp performs a qualitative assessment of the adequacy of the consumer ALLL by comparing the consumer ALLL to forecasted consum er losses over the projected loss emergence period (the forecasted losses include the impact of subsequent defaults of consumer TDRs). When a residential mortgage, home equity, auto mobile or other consumer loan that has been modified in a TDR subsequently defaults, the present value of expected cash flows used in the measurement of the potential impairment loss is generally limited to the expected net proceeds from the sale of the loan’s underlying collateral and any resulting impairment loss is reflected a s a charge-off or an increase in ALLL. The Bancorp recognizes ALLL for the entire balance of the credit card loans modified in a TDR that subsequently default . The following tables provide a summary of TDRs that subsequently defaulted during the years ended December 31, 2016, 2015 and 2014 and were within twelve months of the restructuring date: Number of Recorded December 31, 2016 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 8 $ 5 Commercial mortgage nonowner-occupied loans 2 - Commercial leases 2 1 Residential mortgage loans 172 25 Consumer loans: Home equity 17 1 Automobile loans 2 - Credit card 1,715 7 Total portfolio loans and leases 1,918 $ 39 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality . Number of Recorded December 31, 2015 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 7 $ 11 Commercial mortgage owner-occupied loans 3 1 Residential mortgage loans 156 21 Consumer loans: Home equity 15 1 Automobile loans 8 - Credit card 1,935 8 Total portfolio loans 2,124 $ 42 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality . Number of Recorded December 31, 2014 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 11 $ 36 Commercial mortgage owner-occupied loans 3 4 Commercial mortgage nonowner-occupied loans 2 1 Residential mortgage loans 235 32 Consumer loans: Home equity 30 2 Automobile loans 6 - Credit card 2,059 12 Total portfolio loans 2,346 $ 87 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality . |
Bank Premises and Equipment
Bank Premises and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Bank Premises and Equipment | |
Bank Premises and Equipment | 7 . BANK PREMISES AND EQUIPMENT The following table provides a summary of bank premises and equipment as of December 31: ($ in millions) Estimated Useful Life 2016 2015 Land and improvements (a) $ 663 685 Buildings (a) 2 - 30 yrs. 1,672 1,755 Equipment 2 - 30 yrs. 1,761 1,696 Leasehold improvements 1 - 30 yrs. 398 403 Construction in progress (a) 99 85 Bank premises and equipment held for sale: Land and improvements 29 55 Buildings 9 20 Equipment 1 3 Leasehold improvements - 3 Accumulated depreciation and amortization (2,567) (2,466) Total bank premises and equipment $ 2,065 2,239 (a) At December 31, 2016 and 2015 , land and improvements, buildings and construction in progress included $ 92 and $ 102 , respectively, associated with parcels of undeveloped land intended for future branch expansion. Depreciation and amortization expense related to bank premises and equipment was $ 242 million, $ 256 million and $ 2 5 4 million for the years ended December 31, 2016 , 2015 and 2014 , respectively . The Bancorp monitors changing customer preferences associated with the channels it uses for banking transacti ons to evaluate the efficiency, competitiveness and quality of the customer service experience in its consumer distribution network. As part of this ongoing assessment, the Bancorp may determine tha t it is no longer fully committed to maintaining full-service branches at certain of its existing banking center locations. Similarly, the Bancorp may also determine that it is no longer fully committed to building banking centers on certain parcels of lan d which had previously been held for future branch expansion. On June 16, 2015, the Bancorp’s Board of Directors authorized management to pursue a plan to further develop its distribution strategy, including a plan to consolidate and/or sell certain operat ing branch locations and certain parcels of undeveloped land that had been acquired by the Bancorp for future branch expansion (the “Branch Consolidation and Sales Plan”). In addition, the Bancorp announced on September 13, 2016 that it had identified an a dditional 44 branch locations and 5 parcels of undeveloped land that it planned to consolidate or sell. On January 29, 2016, the Bancorp closed the previously announced sale in the St. Louis MSA to Great South ern Bank and recorded a gain on the sale of $ 8 million in o ther noninterest income in the Consolidated Statements of Income. Additionally, on April 22, 2016, the Bancorp closed the previously announced sale in the Pittsburgh MSA to First National Bank of Pennsylvania and recorded a gain on the sale of $ 11 million in other noninterest income in the Consolidated Statements of Income. Both transactions were part of the Branch Consolidation and Sales Plan. As of December 31, 2016 , the Bancorp had 64 branch locations and 35 parcels of undeveloped land tha t had been acquired for future branch expansion that it intended to consolidate or sell. These branch locations and parcels of undeveloped land, which include unsold properties from the Branch Consolidation and Sales Plan as well as properties included in the September 13, 2016 announcement, represent $ 39 million, $ 16 million and $ 1 million of land and improvements, buildings and equipment, respectively, included in bank premises and equipment in the Consolidated Balance Sheets as of December 31, 2016 , of which $ 29 million, $ 9 million and $ 1 million , respectively, were classified as held for sale. The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable . Impairment losses associated with such assessments and lower of cost or market adjustments were $ 32 million , $ 109 million and $ 20 million for the years ended December 31, 2016 , 2015 and 2014 , re spectively. The recognized impairment losses were recorded in other noninterest income in the Consolidated Statements of Income. On September 29, 2016, the Bancorp closed on the sale of an office complex. The sale also included all of the Bancorp’s rights, title and interest as a landlord under existing leases in the complex. Under the terms of the transaction, the Bancorp received proceeds of approximately $ 31 million and entered into a lease agreement whereby the Bancorp leased-back approximately 25% of t he office complex . In conjunction with the transaction, which qualified as a sale-leaseback under U.S. GAAP, the Bancorp retired assets with a net book value of approximately $ 10 million, recognized a deferred gain of $ 10 million, which is being amortized as a reduction of rent expense over the 15 year lease term, and recorded a gain on the transaction of $ 11 million in other non interest income in the Co nsolidated Statements of Income. Gross occupancy expense for cancelable and noncancelable leases, which is included in net occupancy expense in the Consolidated Statements of Income , was $ 1 00 million , $ 110 million and $ 100 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, which was reduced by rental income from leased premises of $ 1 6 million , $ 18 million and $ 17 million during the years ended December 31, 2016 , 2015 and 2014 , respectively. The Bancorp’s subsidiaries have entered into a number of noncancelabl e operating and capital lease agreements with respect to bank premises and equipment. The following table provides the annual future minimum payments under noncancelable operating leases and capital leases for the years ending December 31: ($ in millions) Noncancelable Operating Leases Capital Leases 2017 $ 88 6 2018 84 6 2019 77 5 2020 65 1 2021 52 - Thereafter 210 1 Total minimum lease payments $ 576 19 Less: Amounts representing interest - 2 Present value of net minimum lease payments - 17 |
Operating Lease Equipment
Operating Lease Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Operating Lease Equipment | |
Operating Lease Equipment | 8 . OPERATING LEASE EQUIPMENT The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. Total impairment losses associated with operating lease assets were $ 20 million and $ 36 million for the years ended December 31, 2016 and 2015 , respectively. The recognized impairment losses were recorded in corporate banking revenue in the Consolidated Statements of Income. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill | |
Goodwill | 9 . GOODWILL Business combinations entered into by the Bancorp typically include the acquisition of goodwill. Acquisition activity includes acquis itions in the respective period in addition to purchase accounting adjustments related to previous acquisitions . The Bancorp completed its annual goodwill impairment test as of September 30, 2016 by performing a qualitative assessment of goodwill at the reporting unit level to determine whether any indi cators of impairment existed. In performing this qualitative assessment, the Bancorp evaluated events and circumstances since the last impairment analysis, macroeconomic conditions, banking industry and market conditions and key financial metrics of the Bancorp as well as reporting unit and overall Bancorp financial performance. After assessing the totality of the events and circumstances, the Bancorp determined that it was not more likely than not that the fair values of the Commercial Banking, Branch Banking and Wealth and Asset Management reporting units were less than their respective carrying amounts and, therefore, the first and second steps of the quantitative goodwill impairment test were deemed unnecessary . Changes in the net carrying amount of goodwill, by reporting unit, for the years ended December 31, 2016 and 2015 were as follows: Commercial Branch Consumer Wealth and Asset ($ in millions) Banking Banking Lending Management Total Goodwill $ 1,363 1,655 215 148 3,381 Accumulated impairment losses (750) - (215) - (965) Net carrying amount as of December 31, 2014 $ 613 1,655 - 148 2,416 Acquisition activity - - - - - Net carrying amount as of December 31, 2015 $ 613 1,655 - 148 2,416 Acquisition activity - - - - - Net carrying amount as of December 31, 2016 $ 613 1,655 - 148 2,416 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Intangible Assets | |
Intangible Assets | 10. INTAN GIBLE ASSETS Intangible assets consist of core deposit in tangibles, customer lists, non-compete agreements and cardholder re lationships. Intangible assets are amortized on either a straight-line or an accelerated basis over their estimated useful lives . Intangible assets have an estimated remaining weighted-average life at December 31, 2016 of 4.1 years . The details of the Bancorp’s intangible assets are shown in the following table: Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount As of December 31, 2016 Core deposit intangibles $ 34 (27) 7 Other 15 (13) 2 Total intangible assets $ 49 (40) 9 As of December 31, 2015 Core deposit intangibles $ 34 (26) 8 Other 33 (29) 4 Total intangible assets $ 67 (55) 12 As of December 31, 2016 , all of the Bancorp’s intangible assets were being amortized. Amortization expense recognized on intangible assets for both the years end ed December 31, 2016 and 2015 was $ 2 million and a mortization expense recognized on intangible assets for the year end ed December 31, 2014 was $ 4 million. The Bancorp’s projections of amortization expense shown on the following table is based on existing asset balances as of December 31, 2016 . Future amort ization expense may vary from these projections . Estimated amortization expense for the years ending December 31, 2017 through 2021 is as follows: ($ in millions) Total 2017 $ 2 2018 1 2019 1 2020 1 2021 1 |
VIE
VIE | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities | |
Variable Interest Entities | 11 . VARIABLE INTEREST ENTITIES The Bancorp, in the normal course of business, engages in a variety of activities that involve VIEs, which are legal entities that lack sufficient equ ity at risk to finance their activities without additional subordinated financial support or the equity investors of the entities as a group lack any of the characteri stics of a controlling interest . The Bancorp evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Bancorp 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 require s a reconsideration. If the Bancorp is determined to be the primary beneficiary of a VI E, it must account for the VIE as a consolidated subsidiary. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for under the equity method of accountin g or other accou nting standards as appropriate. Consolidated VIEs The following tables provide a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Consolidated Balance Sheets as of: Automobile Loan CDC December 31, 2016 ($ in millions) Securitizations Investments Total Assets: Cash and due from banks $ 84 1 85 Commercial mortgage loans - 46 46 Automobile loans 1,170 - 1,170 ALLL (6) (20) (26) Other assets 9 - 9 Total assets $ 1,257 27 1,284 Liabilities: Other liabilities $ 3 - 3 Long-term debt 1,094 - 1,094 Total liabilities $ 1,097 - 1,097 Noncontrolling interests $ - 27 27 Automobile Loan CDC December 31, 2015 ($ in millions) Securitizations Investments Total Assets: Cash and due from banks $ 151 1 152 Commercial mortgage loans - 47 47 Automobile loans 2,490 - 2,490 ALLL (11) (17) (28) Other assets (a) 14 - 14 Total assets (a) $ 2,644 31 2,675 Liabilities: Other liabilities $ 3 - 3 Long-term debt (a) 2,487 - 2,487 Total liabilities (a) $ 2,490 - 2,490 Noncontrolling interests $ - 31 31 (a) Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $ 6 of debt issuance costs from other assets to long-term debt. For further information refer to Note 1. Automobile l oan s ecuritization s In securitization transactions that occurred during the years ended December 31, 2015 and 2014, the Bancorp transferred an aggregate amount of $ 750 million and $ 3.8 billion, respectively, in consumer automobile loans to bankruptcy remote trusts which were deemed to be VIEs. The primary purposes of the VIEs were to issue asset-backed securities with varying levels of credit subordination and payment priority, as well as residual interests, and to provide the Bancorp with access to liquidity for its originated loans. The Bancorp retained residual interests in the VIEs and, therefore, has an obligation to absorb losses and a right to receive benefits from the VIEs that could potentially be significant to the VIEs. In additio n, the Bancorp retained servicing rights for the underlying loans and, therefore, holds the power to direct the activities of the VIEs that most significantly impact the economic performance of the VIEs. As a result, the Bancorp concluded that it is the pr imary beneficiary of the VIEs and, therefore, has consolidated these VIEs. The assets of the VIEs are restricted to the settlement of the asset-backed securities and other obligations of the VIEs. Third-party holders of the notes do not have recourse to th e general assets of the Bancorp. T he economic performance of the VIE s is most significantly impacted by the performance of the underlying loans. The principal risks to which the VIE s are exposed include credit risk and prepayment risk. The credit and prepa yment risks are managed through credit enhancements in the form of reserve accounts, overcollateralization, excess interest on the loans and the subordination of certain classes of asset-backed securities to other classes. CDC i nvestment s CDC, a wholly- owned indirect subsidiary of the Bancorp, was created to invest in projects to create affordable housing, revitalize business and residential areas and preserve historic landmarks. CDC generally co-invests with other unrelated companies and/or individuals and typically makes investments in a separate legal entity that owns the property under development. The entities are usually formed a s limited partnerships and LLCs and CDC typically invests as a limited partner/investor member in the form of equity contr ibutions. The economic performance of the VIEs is driven by the performance of their underlying investment projects as well as the VIEs’ ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generate d by equity investments. The Bancorp’s subsidiaries serve as the managing member of certain LLCs invested in business revitalization projects and have the right to make decisions that most significantly impact the economic performance of the LLCs. Addition ally, the investor members do not own substantive kick-out rights or substantive participating rights over the managing member. The Bancorp has provided an indemnification guarante e to the investor member of these LLC s related to the qualification of tax c redits generated by the investor members’ investment. Accordingly, the Bancorp concluded that it is the primary beneficiary and, therefore, has consolidated these VIE s . As a result, the investor members’ interests in these VIE s are presented as noncontroll ing interest s in the Consolidated Financial Statements. This presentation includes reporting separately the equity attributable to the noncontrolling interest s in the Consolidated Balance Sheets and Consolidated Statements of Changes in Equity and reportin g separately the comprehensive income attributable to the noncontrolling interests in the Consolidated Statements of Comprehensive Income and the net income attributable to the noncontrolling interest s in the Con solidated Statements of Income. The Bancorp’ s maxi mum exposure related to these indemnification s at December 31, 2016 and 2015 was $ 31 million and $ 27 million, respectively , which is based on an amount requi red to meet the investor member’ s defined target rate of return. Non-consolidated VIEs The following tables provide a summary of assets and liabilities carried on the Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of: Total Total Maximum December 31, 2016 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,421 357 1,421 Private equity investments 176 - 232 Loans provided to VIEs 1,735 - 2,672 Total Total Maximum December 31, 2015 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,455 367 1,455 Private equity investments 211 - 271 Loans provided to VIEs 1,630 - 2,599 CDC i nvestments As noted previously, CDC typically invests in VIEs as a limited partner or investor member in the form of equity contributions and has no substantive kick-out or substantive participating rights over the managing member . The Bancorp has determined that it is not the primary beneficiary of these VIEs because it lacks the power to direct the activities that most significantly impact the economic performance of the underlying project or the VIEs’ ability to operate in compliance with the rul es and regulations necessary for the qualification of tax credits generated by equity investments. This power is held by the managing members who exercise full and exclusive control of the operations of the VIEs. Accordingly, the Bancorp accounts for these investments under the equity method of accounting. The Bancorp’s funding requirements are limited to its invested capital and any additional unfunded commitments for future equity contributions. The Bancorp’s maximum exposure to loss as a result of its i nvolvement with the VIEs is limited to the carrying amounts of the investments, including the unfunded commitments. The carrying amounts of these investments, which are included in other assets in the Consolidated Balance Sheets, and the liabilities relate d to the unfunded commitments, which are included in other liabilities in the Consolidated Balance Sheets, are included in the previous tables for all periods presented. The Bancorp has no other liquidity arrangements or obligations to purchase assets of t he VIEs that would expose the Bancorp to a loss. In certain arrangements, the general partner/managing member of the VIE has guaranteed a level of projected tax credits to be received by the limited partners/investor members, thereby minimizing a portion o f the Bancorp’s risk. At both December 31, 2016 and 2015 , the Bancorp’s CDC investments included $ 1.3 billion of investments in affordable housing tax credits recognized in other assets in the Consolidated Balance Sheets. The unfunded commitments rel ated to these investments were $ 349 million and $ 356 million at December 31, 2016 and 2015 , respectively. The unfunded commitments as of December 31, 2016 are expected to be funded from 2017 to 2033. The Bancorp has accounted for all of its investments in qualified affordable housing tax credits using the equity method of accounting. The following table summarizes the impact to the Consolidated Statements of Income relating to investments in qualified affordable housing investments: Consolidated Statements of For the years ended December 31 ($ in millions) Income Caption 2016 2015 2014 Pre-tax investment and impairment losses (a) Other noninterest expense $ 144 126 118 Tax credits and other benefits Applicable income tax expense (220) (205) (185) (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during the years ended December 31, 2016 , 2015 and 2014 . Private e quity i nvestments The Bancorp , through Fifth Third Capital Holdings, a wholly-owned indirect subsidiary of the Bancorp, invests as a limited partner in private equity investments which provide the Bancorp an opportunity to obtain higher rates of return on invested capital, while also creating cross-selling opportunities for the Bancorp’s commercial products. Each of the limited partnerships has an unrelated third-party general par tner responsible for appointing the fund manager. The Bancorp has not been appointed fund manager for any of these private equity investments . The funds finance primarily all of their activities from the partners’ capital contributions and investment retur ns. T he Bancorp has determined that it is not the primary beneficiary of the funds because it does not have the obligation to absorb the funds’ expected losses or the right to receive the funds’ expected residual returns that could potentially be significa nt to the funds and lacks the power to direct the activities that most significantly impact the economic performance of the funds . The Bancorp, as a limited partner, does not have substantive participating or substantive kick-out rights over the general pa rtner. Therefore, the Bancorp accounts for its investments in these limited partnerships under the equity method of accounting. The Bancorp is exposed to losses arising from the negative performance of the underlying inv estments in the private equity inves tments . As a limited partner, the Bancorp’s maximum exposure to loss is limited to the carrying amounts of the investments plus unfunded commitments. The carrying amounts of these investments, which are included in other assets in the Consolidated Balance Sheets, are included in the previous tables. Also, a t December 31, 2016 and 2015 , the unfunded commitment amounts to the funds were $ 56 million and $ 60 million, respectively. As part of previous commitments, t he Bancorp made capital contributions to private equity investments of $ 14 million and $ 30 million during the years ended December 31, 2016 and 2015 , respectively. The Bancorp recognized $ 9 million and $ 1 million of OTTI primarily associated with certain nonconforming investments affected by the Volcker Rule during the year s ended December 31, 2016 and 2015 , respectively. The Bancorp did not recognize any OTTI during the year ended December 31, 2014 . Refer to Note 27 for further information. Loans p rovided to VIEs The Bancorp has provided funding to certain unconsolidated VIEs sponsored by third parties. These VIEs are g enerally established to finance certain consumer and small business loans originated by third parties. The entities are primarily funded through the issuance of a loan from the Bancorp or syndication through which the Bancorp is involved. The sponsor/admin istrator of the entities is responsible for servicing the underlying assets in the VIEs. Because the sponsor/administrator, not the Bancorp, holds the servicing responsibilities, which include the establishment and employment of default mitigation policies and procedures, the Bancorp does not hold the power to direct the activities that most significant ly impact the economic performance of the entity and, therefore, is not the primary beneficiary. The principal risk to which these entities are exposed is cr edit risk related to the underlying assets. The Bancorp’s maximum exposure to loss is equal to the carrying amounts of the loans and unfunded commitments to the VIEs. The Bancorp’s o utstanding loans to these VIEs are included in commercial loans in Note 5 . As of December 31, 2016 and 2015 , the Bancorp’s unfunded commitments to these entities were $ 937 million and $ 969 m illion, respectively . The loans and unfunded commitments to these VIEs are included in the Bancorp’s overall analysis of the ALLL and reserve for unfunded commitments, respectively. The Bancorp does not provide any implicit or explicit liquidity guarantees or principal value guarantees to these VIEs. |
Sales of Receivables and Servic
Sales of Receivables and Servicing Rights | 12 Months Ended |
Dec. 31, 2016 | |
Sales of Receivables and Servicing Rights | |
Sales of Receivables and Servicing Rights | 12. SALES OF RECEIVABLES AND SERVICING RIGHTS Residential Mortgage TDR Loan Sale In March of 2015, the Bancorp recognized a $ 37 million gain, included in other noninterest income in the Consolidated Statements of Income, on the sale of certain HFS residential mortgage loans with a carrying value of $ 568 million that were previously modified in a TDR. As part of this sale, the Bancorp provided certain standard representations and warranties which have expired. Additionally, the Bancorp did not obtain servicing responsibilities on the sales of these loan s and the investors have no credit recourse to the Bancorp’s other assets for failure of debtors to pay when due. Residential Mortgage Loan Sales The Ba ncorp sold fixed and adjustable- rate residential mortgag e loans during the years ended December 31, 2016 , 2015 and 2014 . In those sales, the Bancorp obtained servicing responsibilities and provided certain standard representations and warranties, however the investors have no recourse to the Bancorp’s other assets for failure of debtors to pay wh en due. The Bancorp receives annual servicing fees based on a percentage of the outstanding balance. The Bancorp identifies classes of servicing assets based on financial asset type and interest rates. Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Consolidated Statements of Income, for the years ended December 31 is as follows: ($ in millions) 2016 2015 2014 Residential mortgage loan sales (a) $ 6,927 5,078 (b) 5,467 Origination fees and gains on loan sales 186 171 153 Gross mortgage servicing fees 199 222 246 Represents the unpaid principal balance at the time of the sale . Excludes $ 568 of HFS residential mort gage loans previously modified in a TDR that were sold d uring the first quarter of 2015 . Servicing Rights The following table presents changes in the servicing rights related to residential mortgage and automobile loans for the years ended December 31: ($ in millions) 2016 2015 Carrying amount before valuation allowance: Balance, beginning of period $ 1,204 1,392 Servicing rights that result from the transfer of residential mortgage loans 83 63 Amortization (131) (140) Other-than-temporary impairment - (111) Balance, end of period $ 1,156 1,204 Valuation allowance for servicing rights: Balance, beginning of period $ (419) (534) Recovery of MSR impairment 7 4 Other-than-temporary impairment - 111 Balance, end of period (412) (419) Carrying amount after valuation allowance $ 744 785 Amortization expense recognized on servicing rights for the years ended December 31, 2016 , 2015 and 2014 was $ 131 million, $ 140 million and $ 121 million, respectively. The Bancorp's projections of amortization expense shown below are base d on existing asset balances and static key economic assumptions as of December 31, 2016 . Future amortization expense may vary from these projections . Estimated amortization expense for the years ending December 31, 2017 through 2021 is as follows: ($ in millions) Total 2017 $ 142 2018 124 2019 109 2020 96 2021 84 Temporary impa irment or impairment recovery, e ffected through a change in the MSR valuation allowance, is captured as a component of mortgage banking net revenue in the Consolidated Statements of Income. Other-than-temporary impairment recognized through a write-off of the servicing right and related valuation allowance is captured as a component of servicing rights on the Consolidated Balance Sheets . The Bancorp maintains a non-qualifying hedging strategy to manage a portion of the risk associated with changes in the value of the MSR portfolio. This strategy includes the purchase of free-standing derivatives and various available-for-sale securities. The interest income, mark-to-market adjustments and gain or loss from sale a ctivities associated with these portfolios are expected to economically hedge a portion of the change in value of the MSR portfolio caused by fluctuating OAS spreads , earnings rates and prepayment speeds. The fair value of the servicing asset is based on t he present value of expected future cash flows. The following table displays the beginning and ending fair value of the servicing rights for the years ended December 31: ($ in millions) 2016 2015 Fixed-rate residential mortgage loans: Balance, beginning of period $ 757 823 Balance, end of period 722 757 Adjustable-rate residential mortgage loans: Balance, beginning of period 27 33 Balance, end of period 22 27 Fixed-rate automobile loans: Balance, beginning of period 1 2 Balance, end of period - 1 The following table presents activity related to valuations of the MSR portfolio and the impact of the non-qualifying hedging strategy, which is included in mortgage banking net revenue in the Consolidated Statements of Income for the years ended December 31: ($ in millions) 2016 2015 2014 Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio 24 90 95 Recovery of (provision for) MSR impairment 7 4 (65) As of December 31, 2016 and 2015, the key economic assumptions used in measuring the interests in residential mortgage loans that continued to be held by the Bancorp at the date of sale or securitization resulting from transactions completed during the years ended December 31 were as follows: 2016 2015 Weighted- Weighted- Average Prepayment Weighted- Average Prepayment Weighted- Life Speed OAS Spread Average Life Speed OAS Spread Average Rate (in years) (annual) (bps) Default Rate (in years) (annual) (bps) Default Rate Residential mortgage loans: Servicing rights Fixed 7.2 10.3 % 584 N/A 6.9 11.0 % 534 N/A Servicing rights Adjustable 2.8 30.2 679 N/A 3.4 25.2 303 N/A Based on historical credit experience, expected credit losses for residential mortgage loan servicing assets have been deemed immaterial, as the Bancorp sold the majority of the underlying loans without recourse. At December 31, 2016 and 2015 , the Bancorp serviced $ 53.6 billion and $ 59.0 billion, respectively, of residential mortgage loans for other investors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets. At December 31, 2016, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed assumptions and immediate 10% and 20% adverse changes in other assumptions are as follows: Prepayment Residual Servicing Speed Assumption Cash Flows Fair Weighted-Average Life Impact of Adverse Change on Fair Value OAS Spread Impact of Adverse Change on Fair Value ($ in millions) (a) Rate Value (in years) Rate 10% 20% 50% (bps) 10% 20% Residential mortgage loans: Servicing rights Fixed $ 722 6.5 10.2 % $ (28) (55) (124) 654 $ (18) (35) Servicing rights Adjustable 22 3.2 25.3 (1) (3) (6) 738 - (1) (a) The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial . These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on these variation s in the assumptions typically cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. The Bancorp believes variations of these levels are reasonably possible; however , there is the potential that adverse changes in key assumptions could be even greater . Also, in the previous table, the effect of a variation in a particular assumption on the fair value of the interests that continue to be held by the Bancorp is calculated without changing any other assumption; in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which might magnify or counteract these sensitivities. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 13. DERIVA TIVE FINANCIAL INSTRUMENTS T he Bancorp maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce certain risks related to interest rate, prepayment and foreign currency volatility. Additionally, the Bancorp holds derivative instruments for the benefit of its commercial customers and for other business purposes. The Bancorp does not enter into unhedged s peculative derivative positions . The Bancorp’s interest rate risk management strategy involves modifying the repricing charact eristics of certain financial instruments so that changes in interest rates do not adversely affect the Bancorp’s net interest margin and cash flows. Derivative instruments that the Bancorp may use as part of its interest rate risk management strategy incl ude interest rate swaps, interest rate floors, interest rate caps, forward contracts, forward starting interest rate swaps, options and swaptions. Interest rate swap contracts are exchanges of interest payments, such as fixed-rate payments for floating-rat e payments, based on a stated notional amount and maturity date. Interest rate floors protect against declining rates, while interest rate caps protect against rising interest rates. Forward contracts are contracts in which the buyer agrees to purchase, an d the seller agrees to make delivery of, a specific financial instrument at a predetermined price or yield. Options provide the purchaser with the right, but not the obligation, to purchase or sell a contracted item during a specified period at an agreed u pon price. Swaptions are financial instruments granting the owner the right, but not the obligation, to enter into or cancel a swap. Prepayment volatility arises mostly from changes in fair value of the largely fixed-rate MSR portfolio, mortgage loans and mortgage-backed securities. The Bancorp may enter into various free-standing derivatives ( principal-only swaps, interest rate swaptions, interest rate floors, mortgage options, TBAs and interest rate swaps) to economically hedge prepayment volatility. Prin cipal-only swaps are total return swaps based on changes in the value of the underlying mortgage principal-only trust. TBAs are a forward purchase agreement for a mortgage-backed securities trade whereby the terms of the security are undefined at the time the trade is made. Foreign currency volatility occurs as the Bancorp enters into certain loans denominated in foreign currencies. Derivative instruments that the Bancorp may use to economically hedge these foreign denominated loans include foreign exchange swaps and forward contracts. The Bancorp also enters into derivative contracts (including foreign exchange contracts, commodity contracts and interest rate contracts) for the benefit of commercial customers and other business purposes. The Bancorp economi cally hedge s significant exposures related to these free-standing derivatives by entering into offsetting third-party contracts with approved, reputable and independent counterparties with substantially matching terms and currencies. Credit risk arises fro m the possible inability of counterparties to meet the terms of their contracts. The Bancorp’s exposure is limited to the replacement value of the contracts rather than the notional, principal or contract amounts. Credit risk is minimized through credit ap provals, limits, counterparty collateral and monitoring procedures. The Bancorp’s derivative assets include c ertain contractual features in which the Bancorp requires the counterparties to provide collateral in the form of cash and securities to offset ch anges in the fair value of the derivatives, including changes in the fair value due to credit risk of the counterparty. As of December 31, 2016 and 2015 , the balance of collateral held by the Bancorp for derivative assets was $ 444 million and $ 821 m i llion, respectively. The credit component negatively impacting the fair value of derivative assets associated with customer accommodation contracts as of December 31, 2016 and 2015 was $ 6 million and $ 9 million, respectively. In measuring the fair va lue of derivative liabilities, the Bancorp considers its own credit risk, taking into consideration collateral maintenance requirements of certain derivative counterparties and the duration of instruments with counterparties that do not require collateral maintenance. When necessary, the Bancorp posts collateral primarily in the form of cash and securities to offset changes in fair value of the derivatives, including changes in fair value due to the Bancorp’s credit risk. As of December 31, 2016 and 2015 , the balance of collateral posted by the Bancorp for derivative liabilities was $ 399 million and $ 504 million, respectively. Certain of the Bancorp’s derivative liabilities contain credit-risk related contingent features that could result in the requir ement to post additional collateral upon the occurrence of specified events. As of December 31, 2016 and 2015 , the fair value of the additional collateral that could be required to be posted as a result of the credit-risk related contingent features being triggered was immaterial to the Bancorp’s Consolidated Financial Statements. The posting of collateral has been determined to remove the need for further consideration of credit risk. As a result, the Bancorp determined that the impact of the Bancorp ’s credit risk to the valuation of its derivative liabilities was immaterial to the Bancorp’s Consolidated Financial Statements. The Bancorp holds certain derivative instruments that qualify for hedge accounting treatment and are designated as either fair value hedges or cash flow hedges. Derivative instruments that do not qualify for hedge accounting treatment, or for which hedge accounting is not established, are held as free-standing derivatives. All customer accommodation derivatives are held as free-st anding derivatives. The fair value of derivative instruments is presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Derivative instruments with a positive fair value are reported in other assets in t he Consolidated Balance Sheets while derivative instruments with a negative fair value are reported in other liabilities in the Consolidated Balance Sheets. Cash collateral payables and receivables associated with the derivative instruments are not added t o or nette d against the fair value amounts. The following tables reflect the notional amounts and fair values for all derivative instruments included in the Consolidated Balance Sheets as of: Fair Value Notional Derivative Derivative December 31, 2016 ($ in millions) Amount Assets Liabilities Derivatives Designated as Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 3,455 323 12 Total fair value hedges 323 12 Cash flow hedges: Interest rate swaps related to C&I loans 4,475 22 - Total cash flow hedges 22 - Total derivatives designated as qualifying hedging instruments 345 12 Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSRs 10,522 165 39 Forward contracts related to residential mortgage loans held for sale 1,823 20 3 Swap associated with the sale of Visa, Inc. Class B Shares 1,300 - 91 Foreign exchange contracts 111 - - Total free-standing derivatives - risk management and other business purposes 185 133 Free-standing derivatives - customer accommodation: Interest rate contracts for customers 33,431 205 210 Interest rate lock commitments 701 13 1 Commodity contracts 2,095 107 106 Foreign exchange contracts 11,013 202 204 Total free-standing derivatives - customer accommodation 527 521 Total derivatives not designated as qualifying hedging instruments 712 654 Total $ 1,057 666 Fair Value Notional Derivative Derivative December 31, 2015 ($ in millions) Amount Assets Liabilities Derivatives Designated as Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 2,705 372 2 Total fair value hedges 372 2 Cash flow hedges: Interest rate swaps related to C&I loans 5,475 39 - Total cash flow hedges 39 - Total derivatives designated as qualifying hedging instruments 411 2 Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSRs 11,657 239 9 Forward contracts related to residential mortgage loans held for sale 1,330 3 1 Stock warrant associated with Vantiv Holding, LLC 369 262 - Swap associated with the sale of Visa, Inc. Class B Shares 1,292 - 61 Total free-standing derivatives - risk management and other business purposes 504 71 Free-standing derivatives - customer accommodation: Interest rate contracts for customers 29,889 242 249 Interest rate lock commitments 721 15 - Commodity contracts 2,464 294 276 Foreign exchange contracts 16,243 386 340 Total free-standing derivatives - customer accommodation 937 865 Total derivatives not designated as qualifying hedging instruments 1,441 936 Total $ 1,852 938 Fair Value Hedges The Bancorp may enter into interest rate swaps to convert its fixed-rate funding to floating-rate. Decisions to convert fixed-rate funding to floating are made primarily through consideration of the asset/liability mix of the Bancorp, the desired asset/liability sensitivity and interest rate levels. For all interest rate swaps as of December 31, 2016 , an assessment of hedge effectiveness using regression analysis was performed and such swaps were accounted for using the “long-haul” method. The long-haul method requires a quarterly assessment of hedge effectiveness and measurement of ineffectiveness. For interest rate swaps accounted for as a fair value hedge using the long-haul method, ineffectiveness is the difference between the changes in the fair value of the interest rate swap and changes in fair value of the related hedged item attributable to the risk being hedged. The ineffectivenes s on interest rate swaps hedging fixed-rate funding is reported within interest expense in the Consolidated Statements of Income. The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Consolidated Statements of Income: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2016 2015 2014 Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ (59) (29) 120 Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt 54 25 (126) Cash Flow Hedges The Bancorp may enter into interest rate swaps to convert floating-rate assets and liabilities to fixed rates or to hedge certain forecasted transactions. The assets or liabilities may be grouped in circumstances where they s hare the same risk exposure that the Bancorp desires to hedge. The Bancorp may also enter into interest rate caps and floors to limit ca sh flow variability of floating- rate assets and liabilities. As of December 31, 2016 , all hedges designated as cash flow hedges were asses sed for effectiveness using regression analysis. Ineffectiveness is generally measured as the amount by which the cumulative change in the fair value of the hedging instrument exceeds the present value of the cumulative change in the hedged item’s expected cash flows attributable to the risk being hedged. Ineffectiveness is reported within other noninterest income in the Consolidated Statements of Income. The effective portion of the cumulative gains or losses on cash flow hedges are reported within AOCI an d are reclassified from AOCI to current period earnings when the forecasted transaction affects earnings. As of December 31, 2016 , the maximum length of time over which the Bancorp is hedging its exposure to the variability in future cash flows is 36 months. Re classified gains and losses on interest rate contracts related to commercial and industrial loans are recorded within interest income in the Consolidated Statements of Income. As of December 31, 2016 and 2015 , $ 10 million and $ 22 million , respectively, of net deferred gains, net of tax, on cash flow hedges were recorded in AOCI in the Consolidated Balance Sheets. As of December 31, 2016 , $ 1 5 million in net deferred gains, net of tax, recorded in AOCI are expected to be reclassified into earnings during the next twelve months . This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to December 31 , 2016 . D uring the years ended 2016 and 2015 , there were no gains or losses reclassified from AOCI into earnings associated with the discontinuance of cash flow hedges because it was probable that the original forecasted transaction would no longer occur by the end of the originally specified time period or within the additional period of time as defined by U.S. GAAP . The following table presents the pre-tax net gains recorded in the Consolidated Statements of Income and the Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the years ended December 31 ($ in millions) 2016 2015 2014 Amount of pre-tax net gains recognized in OCI $ 30 74 60 Amount of pre-tax net gains reclassified from OCI into net income 48 75 44 Free-Standing Derivative Instruments – Risk Management and Other Business Purposes As part of its overall risk management strategy relative to its mortgage banking activity, the Bancorp may enter into various free-standing derivatives ( principal-only swaps, interest rate swaptions, interest rate floors, mortgage options, TBAs and interest rate swaps) to economically hedge changes in fair value of its largely fixed-rate MSR portfolio. Principal-only swaps hedge the mortgage-LIBOR spread b ecause these swaps appreciate in value as a result of tightening spreads. Principal-only swaps also provide prepayment protection by increasing in value when prepayment speeds increase, as opposed to MSRs that lose value in a faster prepayment environment. Receive fixed/pay floating interest rate swaps and swaptions increase in value when interest rates do not increase as quickly as expected. The Bancorp enters into forward contracts and mortgage options to economically hedge the change in fair value of cer tain residential mortgage loans held for sale du e to changes in interest rates. IRLC s issued on residential mortgage loan commitments that will be held for sale are also considered free-standing derivative instruments and the interest rate exposure on thes e commitments is economically hedged pr imarily with forward contracts. Revaluation gains and losses from free-standing derivatives related to mortgage banking activity are recorded as a component of mortgage banking net revenue in the Consolidated Statemen ts of Income. In conjunction with the initial sale of the Bancorp’s 51 % interest in Vantiv Holding, LLC, the Bancorp received a warrant which is accounted for as a free-standing derivative . Refer to Note 27 for further discussion of significant inputs and assumptions used in the valuation of the warrant. During the year ended December 31, 2015, the Bancorp both sold and exercised part of the warrant. During the year ended December 31, 2016, the Bancorp exercised the remaining portion of the warrant. Fo r more information, refer to Note 19. In conjunction with the sale of Visa, Inc. Class B S hares in 2009, the Bancorp entered into a total return swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rat e of the Class B Shares into Class A S hares. This total return swap is accounted for as a free-standing derivative. Refer to Note 27 for further discussion of significant inputs and assumptions used in the valuation of this instrument. The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2016 2015 2014 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ 14 8 (18) Interest rate contracts related to MSR portfolio Mortgage banking net revenue 24 90 95 Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income 2 23 14 Equity contracts: Stock warrant associated with Vantiv Holding, LLC Other noninterest income 73 (a) 325 (a) 31 Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (56) (37) (38) ( a) The Bancorp recognized a net gain of $ 9 on the exercise of the remaining warrant during the fourth quarter of 2016 and a net gain of $89 on both the sale and partial exercise of the warrant during the fourth quarter of 2015 Free-Standing Derivative Instruments – Customer Accommodation The majority of the free-standing derivative instruments the Bancorp enters into are for the benefit of its commercial customers. These derivative contracts are not designated against specif ic assets or liabilities on the Consolidated Balance Sheets or to forecasted transactions and, therefore, do not qualify for hedge accounting. These instruments include foreign exchange derivative contracts entered into for the benefit of commercial customers involved in international trade to hedge their exposure to foreign currency fluctuations and commodity contracts to hedge such items as natural gas and various other derivative contracts. The Bancorp may economically hedge significant exposures related to these derivative contracts entered into for the benefit of customers by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms. The Bancorp hedges its interest rate exposure on commercial customer transactions by executing offsetting swap agreements with primary dealers. Revaluation gains and losses on interest rate, foreign exchange, commodity and other commercial customer derivative contracts are recorded as a component of corporate banki ng revenue in the Consolidated Statements of Income. The Bancorp enters into risk participation agreements, under which the Bancorp assumes credit exposure relating to certain underlying interest rate derivative contracts. The Bancorp only enters into the se risk participation agreements in instances in which the Bancorp has participated in the loan that the underlying interest rate derivative contract was designed to hedge. The Bancorp will make payments under these agreements if a customer defaults on its obligation to perform under the terms of the underlying interest rate derivative contract. As of December 31, 2016 and 2015 , the total notional amount of the risk participation agreements was $2.5 billion and $1.7 billion, respectively , and the fair value w as a liability of $ 4 million at December 31, 2016 and $ 3 million at December 31, 2015 , which is included in other liabilities in the Consolidated Balance Sheets . As of December 31, 2016 , the risk participation agreements had a weighted- average remaining life of 3.1 year s. The Bancorp’s maximum exposure in the risk participation agreements is contingent on the fair value of the underlying interest rate derivative contracts in an asset position at the time of default. The Bancorp monitors the credit risk associated with th e underlying customers in the risk participation agreements through the same risk grading system currently utilized for establishing loss reserves i n its loan and lease portfolio. Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table: At December 31 ($ in millions) 2016 2015 Pass $ 2,447 1,650 Special mention 14 7 Substandard 6 7 Total $ 2,467 1,664 The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2016 2015 2014 Interest rate contracts: Interest rate contracts for customers (contract revenue) Corporate banking revenue $ 22 23 19 Interest rate contracts for customers (credit losses) Other noninterest expense - (1) (3) Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 1 3 Interest rate lock commitments Mortgage banking net revenue 114 111 124 Commodity contracts: Commodity contracts for customers (contract revenue) Corporate banking revenue 6 5 6 Commodity contracts for customers (credit losses) Other noninterest expense (1) (2) - Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 6 (7) Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Corporate banking revenue 62 70 72 Foreign exchange contracts for customers (credit losses) Other noninterest expense (2) - - Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 - - Offsetting Derivative Financial Instruments The Bancorp’s derivative transactions are generally governed by ISDA Master Agreements and similar arrangements, which include provisions governing the setoff of assets and liabilities between the parties. When the Bancorp has more than one outstanding derivative transaction with a single counterparty, the setoff provisions contained within these agreements generally allow the non-defaulting party the right to reduce its liability to the defaulting party by amoun ts eligible for setoff, including the collateral received as well as eligible offsetting transactions with that counterparty, irrespective of the currency, place of payment or booking office. The Bancorp’s policy is to present its derivative assets and der ivative liabilities on the Consolidated Balance Sheets on a gross basis, even when provisions allowing for setoff are in place. Collateral amounts included in the table s below consist primarily of cash and highly-rated government-backed securities. The following tables provide a summary of offsetting derivative financial instruments: Gross Amount Gross Amounts Not Offset in the Recognized in the Consolidated Balance Sheets As of December 31, 2016 ($ in millions) Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets Derivatives $ 1,044 (374) (377) 293 Total assets 1,044 (374) (377) 293 Liabilities Derivatives 665 (374) (125) 166 Total liabilities $ 665 (374) (125) 166 (a) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements. (b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related d erivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. Gross Amount Gross Amounts Not Offset in the Recognized in the Consolidated Balance Sheets As of December 31, 2015 ($ in millions) Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets Derivatives $ 1,575 (512) (627) 436 Total assets 1,575 (512) (627) 436 Liabilities Derivatives 938 (512) (173) 253 Total liabilities $ 938 (512) (173) 253 Amount does not include the stock warrant associated with Vantiv Holding, LLC and IRLCs because these instruments are not subject to master netting or similar arrangement s . Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets | |
Other Assets | 14. OTHER ASSETS The following table provides the components of other assets included in the Consolidated Balance Sheets as of December 31: ($ in millions) 2016 2015 Accounts receivable and drafts-in-process $ 2,158 1,653 Partnership investments 1,689 1,756 Bank owned life insurance 1,681 1,651 Derivative instruments 1,057 1,852 Investment in Vantiv Holding, LLC 414 360 Accrued interest and fees receivable 350 329 Vantiv, Inc. TRA put/call receivable 165 - OREO and other repossessed personal property 84 155 Prepaid expenses 83 101 Other 163 108 (a) Total other assets $ 7,844 7,965 (a) a) Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $ 34 of debt issuance costs from other assets to long-term debt. For further information, refer to Note 1 . CDC, a wholly- owned indirect subsidiary of the Bancorp, was created to invest in projects to create affordable housing, revitalize business and residential areas and preserve historic landmarks , which are included above in partnership investments . In addition, Fifth Third Capital Holdings, a wholly-owned indirect subsidiary of the Bancorp, invests as a direct private equity investor and as a limited partner in private equity funds, which are included above as partnership investments. The Bancorp has determined that these partnership investments are VIEs and the Bancorp’s investments r epresent variable interests. Refer to Note 11 for further information. The Bancorp recognized $9 million and $1 million of OTTI on its investments in private equity f unds during the years ended December 31, 2016 and 2015 , respectively. The Bancorp did not recognize OTTI on its investments in private equity funds during the year ended December 31, 2014 . Refer to Note 27 for further information. The Bancor p purchases life insurance policies on the lives of certain directors, officers and employees and is the owner and beneficiary of the policies . Certain BOLI policies have a stable value agreement through either a large, well-rated bank or multi-national in surance carrier that provides limited cash surrender value protection from declines in the value of each policy’s underlying investments. Refer to Note 1 for further information. The Bancorp utilizes derivative instruments as part of its overall risk management strategy to reduce certain risks related to interest rate, prepayment and foreign currency volatility. The Bancorp also holds derivatives instruments for the benefit of its commercial customers and for other business purposes. For further infor mation on derivative instruments, refer to Note 13. In 2009, the Bancorp sold an approximate 51% interest in its processing business, Vantiv Holding, LLC. As a result of additional share sales completed by the Bancorp, its current ownership sh are in Vantiv Holding, LLC is approximately 18% . The Bancorp’s ownership in Vantiv Holding , LLC is currently accounted for under the equity method of accounting. Refer to Note 19 for further information. During 2016 the Bancorp entered into an agreement with Vantiv , Inc. in which Vantiv , Inc. may be obligated to pay a total of approximately $171 million to the Bancorp to terminate and settle certain remaining TRA cash flows, totaling an estimated $394 million, upon the exercise of ce rtain call options by Vantiv , Inc. or certain put options by the Bancorp. OREO represents property acquired through fore closure or other proceedings and is carried at the lower of cost or fair value, less costs to sell . Refer to Note 1 for further information. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Short-Term Borrowings | |
Short-Term Borrowings | 15. SHORT-TERM BORROWINGS Borrowings with original maturities of one year or less are classified as short- term and include federal funds purchased and other short-term borrowings. Federal funds purchased are excess balances in reserve accounts held at the FRB that the Bancorp purchased from other member banks on an overnight basis. Other short-term borrowings include securities sold under repurchase agreements, derivative collateral, FHLB advances and other borrowings with original maturities of one year or le ss . The following table summarizes short-term borrowings and weighted-average rates: 2016 2015 ($ in millions) Amount Rate Amount Rate As of December 31: Federal funds purchased $ 132 0.61 % $ 151 0.30 % Other short-term borrowings 3,535 0.54 1,507 0.11 Average for the years ended December 31: Federal funds purchased $ 506 0.39 % $ 920 0.13 % Other short-term borrowings 2,845 0.36 1,721 0.12 Maximum month-end balance for the years ended December 31: Federal funds purchased $ 739 $ 200 Other short-term borrowings 6,374 4,904 The following table presents a summary of the Bancorp's other short-term borrowings as of December 31: ($ in millions) 2016 2015 FHLB advances $ 2,500 - Securities sold under repurchase agreements 661 925 Derivative collateral 374 582 Total other short-term borrowings $ 3,535 1,507 The Bancorp’s securities sold under repurchase agreements are accounted for as secured borrowings and are collateralized by securities included in available-for-sale and other securities in the Consolidated Balance Sheets. These securities are subject to changes in market value and, therefore, the Bancorp may increase or decrease the level of securities pledged as collateral based upon these movements in market value. The following table summarizes the Bancorp's securities sold under repurchase agreements by the type of collateral securing the borrowing and remaining contractual maturity as of December 31: 2016 2015 ($ in millions) Amount Remaining Contractual Maturity Amount Remaining Contractual Maturity Type of Collateral: Agency residential mortgage-backed securities $ 661 Overnight $ 646 Overnight U.S. Treasury and federal agencies securities - Overnight 279 Overnight Total securities sold under repurchase agreements $ 661 $ 925 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Long-Term Debt | |
Long-Term Debt | 16. LON G-TERM DEBT The following table is a summary of the Bancorp’s long-term borrowings at December 31: ($ in millions) Maturity Interest Rate 2016 2015 (d) Parent Company Senior: Fixed-rate notes 2016 3.625% $ - 1,000 Fixed-rate notes 2019 2.30% 499 498 Fixed-rate notes 2020 2.875% 1,096 1,094 Fixed-rate notes 2022 3.50% 497 496 Subordinated: (a) Floating-rate notes (c) 2016 0.99% - 250 Fixed-rate notes 2017 5.45% 501 520 Fixed-rate notes 2018 4.50% 519 532 Fixed-rate notes 2024 4.30% 746 746 Fixed-rate notes 2038 8.25% 1,312 1,320 Subsidiaries Senior: Fixed-rate notes 2016 1.15% - 999 Fixed-rate notes 2016 0.90% - 400 Floating-rate notes (c) 2016 0.87% - 749 Floating-rate notes (c) 2016 0.82% - 300 Fixed-rate notes 2017 1.35% 650 652 Fixed-rate notes 2018 2.15% 997 996 Fixed-rate notes 2018 1.45% 598 597 Floating-rate notes (c) 2018 1.82% 250 250 Fixed-rate notes 2019 2.375% 849 848 Fixed-rate notes 2019 2.30% 748 - Fixed-rate notes 2019 1.625% 737 - Floating-rate notes (c) 2019 1.59% 249 - Fixed-rate notes 2021 2.25% 1,246 - Fixed-rate notes 2021 2.875% 845 844 Subordinated: (a) Fixed-rate bank notes 2026 3.85% 746 - Junior subordinated: (b) Floating-rate debentures (c) 2035 2.38% - 2.65% 52 52 FHLB advances 2017 - 2041 0.05% - 6.87% 33 37 Notes associated with consolidated VIEs: Automobile loan securitizations: Fixed-rate notes 2018 - 2022 0.68% - 1.79% 1,061 2,301 Floating-rate notes (c) 2018 1.25% 33 186 Other 2017 - 2039 Varies 124 143 Total $ 14,388 15,810 In aggregate, $ 2.7 billion and $ 2.4 billion qualifies as Tier II capital for regulatory capital purposes as of December, 31 2016 and 2015 , respectively. Under the Basel III Final Rule transition provisions, $ 0 and $ 13 qualified as Tier I capital as of December 31, 2016 and 2015 , respectively, while the remaining amounts as of December 31, 2016 and 2015 qualify as Tier II capital. Refer to Note 28 for further information . These rates reflect the floating rates as of December 31, 2016 . Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $ 34 of debt issuance costs from other assets to long-term debt. For furthe r information refer to Note 1. The Bancorp pays down long-term debt in accordance with contractual terms over maturity periods summarized in the above table. The aggregate annual maturities of long-term debt obligations (based on final maturit y dates) as of December 31, 2016 a re presented in the following tabl e: ($ in millions) Parent Subsidiaries Total 2017 $ 501 655 1,156 2018 519 2,124 2,643 2019 499 2,782 3,281 2020 1,096 547 1,643 2021 - 2,196 2,196 Thereafter 2,555 914 3,469 Total $ 5,170 9,218 14,388 At December 31, 2016 , the Bancorp had outsta nding principal balances of $ 14.1 billion, net discounts of $ 24 million , debt issuance costs of $ 33 million and additions for mark-to-market adju stments on its hedged debt of $ 328 million. At December 31, 2015 , the Bancorp had outst anding principal balances of $ 15.5 billion, net discounts of $ 24 million , debt issuance costs of $34 million and additions for mark-to-market adjustme nts on its hedged debt of $ 382 million. Th e Bancorp was in compliance with all deb t covenants at December 31, 2016 and 2015 . Parent Company Long-Term Borrowings Senior Notes On March 7, 2012, the Bancorp issued and sold $ 500 m illion of senior notes to third-party investors and entered into a Supp lemental Indenture dated March 7, 2012 with the Trustee, which modified the existing Indenture for Senior Debt Securities dated April 30, 2008 . The Supplemental Indenture and the Indenture define the rights of the s enior n otes and that they are represented by a Global Security dated as of March 7, 2012. The s enior notes bear a fixed- rate of interest of 3.50% per annum. The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes will be due upon maturity on March 15, 2022. These fixed-rate senior note s will be redeemable by the Bancorp , in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid intere st up to, but excluding, the redemption date. On February 28, 2014 , the Bancorp issued and sold $ 500 million of senior notes to third-party investors . The s enior notes bear a fixed- rate of interest of 2.30 % per annum . The notes are unsecured, senior obliga tions of the Bancorp. Payment of the full principal amounts of the notes is due upon maturity on March 1, 2019 . These fixed-rate senior note s will be redeemable by the Bancorp , in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On July 27, 2015 , the Bancorp issued and sold $ 1.1 billion of senior notes to third-party investors . The s enior notes bear a fixed- rate of interest of 2.875 % per annum . The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes is due upon maturity on July 27, 2020 . These fixed-rate senior note s will be redeemable by the Bancorp , in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. Subordinated Debt The Bancorp has entered into interest rate swaps to convert its subordinated fixed-rate notes due in 2017 and 2018 to floating-rate, which pay interest at three -month LIBOR plus 42 bps and 25 bps, respe ctively , at December 31, 2016 . T he rates paid on the swaps hedging the subordinated floating-rate notes due in 2017 and 2018 were 1.34 % and 1.18 %, respectively , at December 31, 2016 . Of the $ 1.0 billion in 8.25% subordinated fixed- rate notes due in 2038, $ 705 million were subsequently hedged to floating and paid a rate of 3.98 % at December 31, 2016 . On November 20, 2013, the Bancorp issued and sold $ 750 million of 4.30% unsecured subordinated fixed-rate notes due on January 16, 2024. These fixed-rate notes will be redeemable by the Bancor p , in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. Subsidiary Long-Term Borrowings Senior and Subordinated Debt Medium-term senior notes and subordinated bank note s with maturities ranging from one year to 30 years can be issued by the Bancorp’s banking subsidiary. Under the Bancorp’s banking subsidiary’s global bank note program, the Bank’s capacity to issue its senior and subordinated unsecured bank notes is $ 25 billion. As of December 31, 2016, $ 17.1 billion was available for future issuance under the global bank note program. O n February 28, 2013, the Bank issued and sold, under its bank notes program, $ 600 million of 1.45% unsecured senior fixed-rate bank notes due on February 28, 2018. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest through the redemption date. On April 25, 2014 , the Bank issued and sold, under its bank notes program, $1.5 billion in aggregate principal amount of unsecured senior bank not es. The bank notes consisted of $ 850 m illion of 2.375% senior fixed- rate notes due on April 25, 2019 and $ 650 m illion of 1.35% senior fixed- rate notes due on June 1, 2017 . These bank no tes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On September 5, 2014 , the Bank issued and sold, under its bank notes program, $ 850 million of 2.875% unsecured senior fixed-rate bank notes due on October 1, 2021. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On August 20, 2015 , the Bank issued and sold, under its bank notes program, $ 1.3 billion in aggregate principal amount of unsecured senior bank not es. The bank notes consisted of $ 1.0 b illion of 2.15% senior fixed- rate notes due on August 20, 2018 and $ 250 m illion of senior floating- rate notes due on August 20, 2018 . The Bancorp en tered into interest rate swaps to convert the fixed-rate notes to floating-rate, which resulted in an effective rate of three-month LIBOR plus 90 bps. Interest on the floating- rate notes is three-month LIBOR plus 91 bps. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On March 15, 2016, th e Bank issued and sold , under its bank notes program, $1.5 billion in aggregate principal amount of unsecured bank notes. The bank notes consisted of $ 750 million of 2.30% senior fixed-rate notes due on March 15, 2019; and $ 750 million of 3.85% subordinated fixed-rate notes due on March 15, 2026. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus acc rued and unpaid interest up to, but excluding, the redemption date. On June 14, 2016, the Bank issued and sold , under its bank notes program, $ 1.3 billion of 2.25% unsecured senior fixed-rate notes due on June 14, 2021. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On September 27, 2016, the Bank issued and sold , under its bank notes program, $1.0 billion in aggregate principal amount of unsecured senior bank notes due on September 27, 2019. The bank notes consisted of $ 750 million of 1.625% senior fixed-rate notes and $ 250 million of sen ior floating-rate notes at three-month LIBOR plus 59 bps. The Bancorp entered into interest rate swaps to convert the fixed-rate notes to a floating-rate, which resulted in an effective interest rate of three-month LIBOR plus 53 bps. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. Junior Subordinated Debt The junior subor dinated floating-rate bank notes due in 2035 were assumed by the Bancorp ’s banking subsidiary as part of the acquisition of First Char ter in June 2008. The obligation was issued to First Charter Capi tal Trust I and II, respectively. The notes of First Charter Capital Trust I and II pay a floating rate at three -month LIBOR plus 169 bp s and 142 bps, respectively . The B ancorp’s nonbank subsidiary holding company has fully and unconditionally guaranteed all obligations under the acquired TruPS issued by First Charter Capital Trust I and II. FHLB Advances At December 31, 2016 , FHLB advances have rates ranging from 0 .05 % to 6 . 87 %, with interest payable monthly. The Bancorp has pledged $ 17.3 billion of certain residential mortgage loans and securities to secure its borrowing capacity at the Federal Home Loan Bank which is partially utilized to fund $ 3 3 m illion i n FHLB advances that are outstanding. The FHLB advances mature as follows: $ 1 million in 2 017, $ 4 million in 2018, $ 9 million in 2019 , $ 3 million in 2020, $ 3 million in 2021 and $ 13 m illion thereafter. Notes Associated with Consolidated VIEs As previously discussed in Note 11, the Bancorp was determined to be the primary beneficiary of vari ous VIE s associated with certain automobile loan securitization transactions. As such, $ 1.1 billion o f long-term debt related to these VIE s was consolidated in the Bancorp’s Consolidated Financial Statements as of December 31, 2016 . Third-party holders of this debt do not have recourse to the general assets of the Bancorp . |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Guarantees | 12 Months Ended |
Dec. 31, 2016 | |
Commitments, Contingent Liabilities and Guarantees | |
Commitments, Contingent Liabilities and Guarantees | 17 . COMMITMENTS, CONTINGENT LIABILITIES AND GUARANTEES The Bancorp, in the normal course of business, enters into financial instruments and various agreements to meet the financing needs of its customers. The Bancorp also enters into certain transactions and agreements to manage its interest rate and prepaymen t risks, provide funding, equipment and locations for its operations and invest in its communities. These instruments and agreements involve, to varying degrees, elements of credit risk, counterparty risk and market risk in excess of the amounts recognized in the Consolidated Balance Sheets. The creditworthiness of counterparties for all instruments and agreements is evaluated on a case-by-case basis in accordance with the Bancorp’s credit policies. The Bancorp’s significant commitments, contingent liabilit ies and guarantees in excess of the amounts recognized in the Consolidated Balance Sheets are discussed in further detail below : Commitments The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of December 31: ($ in millions) 2016 2015 Commitments to extend credit $ 67,909 66,884 Letters of credit 2,583 3,055 Forward contracts related to residential mortgage loans held for sale 1,823 1,330 Noncancelable operating lease obligations 576 635 Capital commitments for private equity investments 59 60 Purchase obligations 57 60 Capital expenditures 29 30 Capital lease obligations 19 27 Commitments to extend credit Commitments to extend credit are agreements to lend, typically having fixed expiration dates or other termination clauses that may require payment of a fee. Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. The Bancorp is exposed to credit risk in the event of nonperformance by the counterparty for the amount of the contract. Fixed-rate commitments are a lso subject to market risk resulting from fluctuations in interest rates and the Bancorp’s exposure is limited to the replacement value of those commitments. As of December 31, 2016 and 2015 , the Bancorp had a reserve for unfunded commitments , includ ing letters of credit, totaling $ 161 million and $ 138 million, respectively, included in other liabilities in the Consolidated Balance Sheets. The Bancorp monitors the credit risk associated with commitments to ex tend credit using the same risk rating system utilized withi n its loan and lease portfolio. Risk ratings under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2016 2015 Pass $ 66,802 65,645 Special mention 338 647 Substandard 753 592 Doubtful 16 - Total commitments to extend credit $ 67,909 66,884 Letters of credit Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of December 31, 2016: ($ in millions) Less than 1 year (a) $ 1,387 1 - 5 years (a) 1,164 Over 5 years 32 Total letters of credit $ 2,583 (a) Includes $ 18 and $ 3 issue d on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively. Standby letters of credit accounted for 99 % of total letters of credit at both December 31, 2016 and 2015 , and are considered guarantees in accordance with U.S. GAAP. Approximately 6 2 % and 6 5 % of the total standby letters of credit were collateralized as of December 31, 2016 and 2015 , respectively . In the event of nonperformance by the customers, the Bancorp has rights to the underlying collateral, which can include commercial real estate, physical plant and property, inventory, rec eivables, cash and marketable securities. The reserve related to these standby letters of credit, which is included in the total reserve for unfunded commitments, was $ 3 million a t December 31, 2016 and immaterial at December 31 , 2015 . The Bancorp mo nitors the credit risk associated with letters of credit using the same risk rating system utilized within its loan and lease portfolio. Risk ratings under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2016 2015 Pass $ 2,134 2,606 Special mention 98 130 Substandard 290 258 Doubtful 61 61 Total letters of credit $ 2,583 3,055 At December 31, 2016 and 2015 , the Bancorp had outstanding letters of credit that were supporting certain securities issued as VRDNs. The Bancorp facilitates financing for its commercial customers, which consist of companies and municipalities, by marketing the VRDNs to investors. The VRDNs pay interest to holders at a rate of interest that fluctuates based upon market demand. The VRDNs generally have long-term maturity dates, but can be tendered by the holder for purchase at par value upon proper a dvance notice. When the VRDNs are tendered, a remarketing agent generally finds another investor to purchase the VRDNs to keep the securities outstanding in the market. As of December 31, 2016 and 2015 , total VRDNs in which the Bancorp was the remark eting agent or were supported by a Bancorp letter of credit were $ 929 m illion and $ 1.3 billion, respectively, of which FTS acted as the remarketing agent to issuers on $ 784 m illion and $ 1.1 billion, resp ectively . As remarketing agent, FTS is responsible fo r finding purchasers for VRDNs that are put by investors. The Bancorp issued letters of credit, as a credit enhancement, to $ 609 m illion and $ 921 million of the VRDNs remarketed by FTS, in addition to $ 145 million and $ 187 million in VRDNs remarketed by th ird parties at December 31, 2016 and 2015 , respectively. These letters of credit are included in the total letters of credit balance provided in the previous table . The Bancorp held $ 6 million and an immaterial amount of these VRDNs in its portfolio and classified them as trading securities at December 31, 2016 and 2015 , respectively. Forward contracts related to residential mortgage loans held for sale The Bancorp enters into forward contracts to economically hedge the change in fair value of certain residential mortgage loans held for sale due to changes in interest rates. The outstanding notional amounts of these forward contracts are included in the summary of sign ificant commitments table for all periods presented. Noncancelable lease obli gations and other commitments The Bancorp’s subsidiaries have entered into a number of noncancelable lease agreements. The minimum rental commitments under noncancelable lease agreements are shown in the summary of significant commitments table. The Bancor p has also entered into a limited number of agreements for work related to banking center construction and to purchase goods or services. Contingent Liabilities Private mortgage reinsurance For certain mortgage loans originated by the Bancorp, borrowers are required to obtain PMI provided by third-party insurers. In some instances, these insurers cede d a portion of the PMI premiums to the B ancorp, and the Bancorp provided reinsurance coverage within a specified range of the total PMI coverage. The Bancorp ’s reins urance coverage typically ranged from 5 % to 10 % of the total PMI coverage. The Bancorp’s maximum exposure in the event of nonperforman ce by the underlying borrowers wa s equivalent to the Bancorp’s total outstanding reinsurance coverage, which was $ 27 million at December 31, 2015 . As of December 31, 2015 , the Bancorp maintained a reserve of $ 2 million related to exposures within the reinsurance portfolio which was included in other liabilities in the Consolidated Bala nce Sheets . In the second quarter of 2016, the Bancorp allowed one of its third-party insurers to terminate its reinsurance agreement with the Bancorp, resulting in the Bancorp releasing collateral to the insurer in the form of investment securities and other assets with a carrying value of $ 6 million, and the insurer assuming the Bancorp’s obligations under the reinsurance agreement, resulting in a decrease to the Bancorp’s reserve liability of $2 million and a decrease in the Bancorp’s maximum exposure of $26 million. In addition , the Bancorp received a payment of $ 4 million related to the difference between the release of the assets and the reserve liability assumed. During the fourth quarter of 2016, the final policies under the reinsurance agreement were terminated and as of De cember 31, 2016 the Bancorp no longer had any remaining exposure or reserves related to exposure within the reinsurance portfolio. Legal claims There are legal claims pending against the Bancorp and its subsidiaries that have arisen in the normal course o f business. Refer to Note 18 for additional information regarding these proceedings. Guarantees The Bancorp has performance obligations upon the occurrence of certain events under financial guarantees provided in certain contractual arrangements as dis cussed in the following sections. Residential mortgage loans sold with representation and warranty provisions Conforming residential mortgage loans sold to unrelated third parties are generally sold with representation and warranty provisions. A contractu al liability arises only in the event of a breach of these representations and warranties and, in general, only when a loss results from the breach. The Bancorp may be required to repurchase any previously sold loan or indemnify (make whole) the investor o r insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading. For more information on how the Bancorp establishes the residential mortgage repurchase reserve, refer to Note 1. During the fourth quarter of 2013, the Bancorp settled certain repurchase claims related to residential mortgage loans originated and sold to FHLMC prior to January 1, 2009 for $ 25 million, after paid claim credits and other adjustments. The settlement removes the Bancorp’s responsibility to repurchase or indemnify FHLMC for representation and warranty violations on any loan sold prior to January 1, 2009 except in limited circumstances. As of December 31, 2016 and 2015 , the Bancorp maintained reserves related to loans sold with representation and warranty provisions totaling $ 13 million and $ 25 million , respectively , included in other liabilities in the Consolidated Balance Sheets . The Bancorp uses the best information available when estimating its mortgage representation and warranty reserve; however, the estimation process is inherently uncertain and imprecise and, accordingly, losses in excess of the amounts reserved as of December 31, 2016 , are reasonably possible. The Bancorp currently estimates that it is reasonably possible that it could incur losses related to mortgage representation and warranty provisions in an amount up to approximately $ 21 million in excess of amounts reserved. This estimate was derived by modifying the key assumptions previousl y discussed to reflect management's judgment regarding reasonably possible adverse changes to those assumptions. The actual repurchase losses could vary significantly from the recorded mortgage representation and warranty reserve or this estimate of reason ably possibly losses, depending on the outcome of various factors, including those previously discussed . During the years ended December 31, 2016 and 2015 , the Bancorp paid $ 1 million and $ 2 million, respectively, in the form of make whole payments a nd repurchased $ 17 million and $ 74 million , respectively, in outstanding principal of loans to satisfy investor demands . Total repurchase demand requests during the years ended December 31, 2016 and 2015 were $ 22 million and $ 75 million, respectively. Total outstanding repurchase demand inventory was $ 2 million at December 31, 2016 compared to $ 4 million at December 31, 2015 . The following table summarizes activity in the reserve for representation and warranty provisions for the years ended December 31: ($ in millions) 2016 2015 Balance, beginning of period $ 25 35 Net reductions to the reserve (10) (3) Losses charged against the reserve (2) (7) Balance, end of period $ 13 25 The following tables provide a rollforward of unresolved claims by claimant type for the years ended December 31: GSE Private Label 2016 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 16 $ 4 2 $ - New demands 309 22 4 - Loan paydowns/payoffs (8) (1) - - Resolved demands (304) (23) (6) - Balance, end of period 13 $ 2 - $ - GSE Private Label 2015 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 37 $ 6 1 $ 1 New demands 436 33 261 42 Loan paydowns/payoffs (29) (2) - - Resolved demands (428) (33) (260) (43) Balance, end of period 16 $ 4 2 $ - Residential mortgage loans sold with credit recourse The Bancorp sold certain residential mortgage loans in the secondary market with credit recourse. In the event of any customer default, pursuant to the credit recourse provided, the Bancorp is required to reimburse the third party. The maximum amount of credit risk in the event of nonperformance by the underlying borrowers is equivalent to the total outstanding balance. In the event of nonperformance, the Bancorp has rights to the underlying collateral v alue securing the loan. The outstanding balances on these loans sold with credit recourse were $ 374 million and $ 465 million at December 31, 2016 and 2015 , respectively, and the delinquency rates were 3. 2 % at December 31, 2016 and 3.0 % at December 31, 2015 . The Bancorp maintained an estimated credit loss reserve on these loans sold with credit recourse of $ 7 million and $ 9 million at December 31, 2016 and 2015 , respectively, recorded in other liabilities in the Consolidated Balance Sheets. To determine th e credit loss reserve, the Bancorp used an approach that is consistent with its overall approach in estimating credit losses for various categories of residential mortgage loans held in its loan portfolio. Margin accounts FTS, a n indirect wholly-owned sub sidiary of the Bancorp, guarantees the collection of all margin account balances held by its brokerage clearing agent for the benefit of its customers. FTS is responsible for payment to its brokerage clearing agent for any loss, liability, damage, cost or expense incurred as a result of customers failing to comply with margin or margin maintenance calls on all margin accounts. The margin account balance held by the brokerage clearing agent was $ 1 5 million at December 31, 2016 and $ 1 0 million at December 31, 2015 . In the event of any customer default, FTS has rights to the underlying collateral provided. Given the existence of the underlying collateral provided and negligible historical credit losses, the Bancorp does not maintain a loss reserve related to the margin accounts. Long-term borrowing obligations The Bancorp had certain fully and unconditionally guaranteed long-term borrowing obligations issued by wholly-owned issuing trust entities of $ 62 million at both December 31, 2016 and 2015 . Visa litigation The Bancorp, as a member bank of Visa prior to Visa’s reorganization and IPO (the “IPO”) of its Class A common shares (the “Class A Shares”) in 2008, had certain indemnification obligations pursuant to Visa’s certificate of incorporation and by- laws and in accordance with their membership agreements. In accordance with Visa’s by-laws prior to the IPO, the Bancorp could have been required to indemnify Visa for the Bancorp’s proportional share of losses based on the pre-IPO membership interests. As part of its reorganization and IPO, the Bancorp’s indemnification obligation was modified to include only certain known or anticipated litigation (the “Covered Litigation”) as of the date of the restructuring. This modification triggered a requirement for the Bancorp to recognize a liability equal to the fair value of the indemnification liability. In conjunction with the IPO, the Bancorp received 10.1 million of Visa’s Class B common shares (the “Class B Shares”) based on the Bancorp’s membership percent age in Visa prior to the IPO. The Class B Shares are not transferable (other than to another member bank) until the later of the third anniversary of the IPO closing or the date which the Covered Litigation has been resolved; therefore, the Bancorp’s Class B Shares were classified in other assets and accounted for at their carryover basis of $ 0 . Visa deposited $ 3 billion of the proceeds from the IPO into a litigation escrow account, established for the purpose of funding judgments in, or settlements of, the Covered Litigation. Since then, when Visa’s litigation committee determined that the escrow account was insufficient, Visa issued additional Class A Shares and deposited the proceeds from the sale of the Class A Shares into the litigation escrow account. When Visa funded the litigation escrow account, the Class B Shares were subjected to dilution through an adjustment in the conversion rate of Class B Shares into Class A Shares. In 2009, the Bancorp completed the sale of Visa, Inc. Class B Shares and enter ed into a total return swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Class B Shares into Class A Shares. The swap terminates on the later of the third anniversary of Visa’s IPO or the date on which the Covered Litigation is settled. Refer to Note 27 for additional information on the valuation of the swap. The counterparty to the swap as a result of its ownership of the Class B Shares will be impacted by dilutive adjustments to the conv ersion rate of the Class B Shares into Class A Shares caused by any Covered Litigation losses in excess of the litigation escrow account. If actual judgments in, or settlements of, the Covered Litigation significantly exceed current expectations, then addi tional funding by Visa of the litigation escrow account and the resulting dilution of the Class B Shares could result in a scenario where the Bancorp’s ultimate exposure associated with the Covered Litigation (the “Visa Litigation Exposure”) exceeds the va lue of the Class B Shares owned by the swap counterparty (the “Class B Value”). In the event the Bancorp concludes that it is probable that the Visa Litigation Exposure exceeds the Class B Value, the Bancorp would record a litigation reserve liability and a corresponding amount of other noninterest expense for the amount of the excess. Any such litigation reserve liability would be separate and distinct from the fair value derivative liability associated with the total return swap. As of the date of the Ban corp’s sale of the Visa Class B Shares and through December 31, 2016 , the Bancorp has concluded that it is not probable that the Visa Litigation Ex posure will exceed the Class B V alue. Based on this determination, upon the sale of the Class B Shares, the Bancor p reversed its net Visa litigation reserve liability and recognized a free-standing derivative liability associated with the total return swap. The fair value of the swap liability was $ 91 million and $ 61 million at December 31, 2016 and 2015 , respectively. Refer to Note 13 and Note 27 for further information. A fter the Bancorp’s sale of the Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilutive adjustments to the conversion of Class B Shares into Class A Shares, and along with other terms of the total return swap, required the Bancorp to make cash payments in varying amounts to the swap counterparty as follows : Visa Bancorp Cash Period ($ in millions) Funding Amount Payment Amount Q2 2010 $ 500 20 Q4 2010 800 35 Q2 2011 400 19 Q1 2012 1,565 75 Q3 2012 150 6 Q3 2014 450 18 |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 12 Months Ended |
Dec. 31, 2016 | |
Legal And Regulatory Proceedings | |
Legal and Regulatory Proceedings | 18. LEGAL AND REGULATORY PROCEEDINGS Litigation Visa/Mastercard Merchant Interchange Litigation In April 2006, the Bancorp was added as a defendant in a consolidated antitrust class action lawsuit originally filed against Visa®, MasterCard® and several other major financial institutions in the United States District Court for the Eastern District of New York. The plaintiffs, merchants operating commercial businesses throughout the U.S. and trade associations, claimed that the interchange fees charged by card-issuing banks were unreasonable and sought injunctive relief and unspecified damages. In addit ion to being a named defendant, the Bancorp is also subject to a possible indemnification obligatio n of Visa as discussed in Note 16 and has also entered into judgment and loss sharing agreements with Visa, MasterCard and certain other named defendants. In October 2012, the parties to the litigation entered into a settlement agreement. On January 14, 2014, the trial court entered a final order approving the class settlement. A number of merchants filed appeals from that approval. The U.S. Court of Appeals f or the Second Circuit held a hearing on those appeals and on June 30, 2016, reversed the district court’s approval of the class settlement, remanding the case to the district court for further proceedings. In rejecting the settlement, the appellate court f ound that counsel for plaintiffs was conflicted and thus could not adequately represent the plaintiff-class members of the separate monetary and injunctive relief settlement classes. The appellate court decertified the settlement classes, ordered that the case return to the trial court and directed the trial court to appoint separate counsel for the separate plaintiff classes. Pursuant to the terms of the overturned settlement agreement, the Bancorp previously paid $ 46 million into a class settlement escrow account. Because the appellate court ruling remands the case to the district court for further proceedings, the ultimate outcome in this matter is uncertain. Approximately 8,000 merchants requested exclusion from the class settlement, and therefore, pursu ant to the terms of the settlement agreement, 25% of the funds paid into the class settlement escrow account were already returned to the control of the defendants. More than 460 of the merchants who requested exclusion from the class filed separate federa l lawsuits against Visa, MasterCard and certain other defendants alleging similar antitrust violations. These “opt-out” federal lawsuits were transferred to the United States District Court for the Eastern District of New York. The Bancorp was not named as a defendant in any of the opt-out federal lawsuits, but may have obligations pursuant to indemnification arrangements and/or the judgment or loss sharing agreements noted above. On July 18, 2015, the court in which all the remaining opt-out federal lawsui ts have been consolidated denied defendants’ motion to dismiss the complaints. Refer to Note 17 for further information. Dudenhoeffer v. Fifth Third Bancorp On March 29, 2016, the court in two class action lawsuits consolidated as Dudenhoeffer v. Fift h Third Bancorp et al. filed in 2008 in the United States District Court for the Southern District of Ohio preliminarily approved a settlement in which the Bancorp agreed to pay $ 6 million and make certain changes to the Bancorp’s profit sharing plan. The complaints alleged that the Bancorp and certain officers violated ERISA by continuing to offer Fifth Third stock in the Bancorp’s profit sharing plan when it was no longer a prudent investment. On July 11, 2016, the court issued a Final Approval Order and Judgment approving the settlement in all respects and ordering that the settlement agreement be implemented in accordance with its terms. Klopfenstein v. Fifth Third Bank On August 3, 2012, William Klopfenstein and Adam McKinney filed a lawsuit against Fi fth Third Bank in the United States District Court for the Northern District of Ohio (Klopfenstein et al. v. Fifth Third Bank), alleging that the 120% APR that Fifth Third disclosed on its Early Access program was misleading. Early Access is a deposit-adva nce program offered to eligible customers with checking accounts. The plaintiffs sought to represent a nationwide class of customers who used the Early Access program and repaid their cash advances within 30 days. On October 31, 2012, the case was transfer red to the United States District Court for the Southern District of Ohio. In 2013, four similar putative class actions were filed against Fifth Third Bank in federal courts throughout the country (Lori and Danielle Laskaris v. Fifth Third Bank, Janet Fyoc k v. Fifth Third Bank, Jesse McQuillen v. Fifth Third Bank, and Brian Harrison v. Fifth Third Bank). Those four lawsuits were transferred to the Southern District of Ohio and consolidated with the original lawsuit as In re: Fifth Third Early Access Cash Ad vance Litigation. On behalf of a putative class, the plaintiffs seek unspecified monetary and statutory damages, injunctive relief, punitive damages, attorney’s fees, and pre- and post-judgment interest. On March 30, 2015, the court dismissed all claims al leged in the consolidated lawsuit except a claim under the TILA. The parties are currently engaged in pre-trial proceedings . No trial date has been scheduled. Nina Investments, LLC v. Fifth Third Bank On July 5, 2012, Nina Investments, LLC (“Nina”) filed a lawsuit against Fifth Third Bank (Nina Investments, LLC. v. Fifth Third Bank, et al.) in the Circuit Court of Cook County, Illinois, alleging fraud and conspiracy to commit fraud related to a credit facility established by Fifth Third Bank in 2007 to fin ance life insurance premiums. Nina invested funds in an entity related to the borrower under the credit facility and is claiming over $ 70 million in damages based on its alleged loss of these funds. Nina alleges that it would have made different investment decisions if Fifth Third had disclosed fraud committed by the borrower with the alleged knowledge of Fifth Third employees. Nina filed this lawsuit in response to a lawsuit filed by Fifth Third Bank in the same court on June 11, 2010 against Nina and othe r defendants (Fifth Third Bank v. Concord Capital Management, LLC, et al.) alleging fraud and breach of contract. In 2015, the court dismissed Fifth Third's contract and fraud cl aims against certain defendants. Fifth Third currently has claims pending agai nst other defendants, including a claim for fraudulent conveyance against Nina. On October 20, 2016, the court denied Fifth Third’s motion to assert a new claim against Nina and other investors for fraudulent inducement of a guarantee related to the credit facility and to reassert claims for breach of guarantee against certain of the investors who also acted as guarantors. The trial has been scheduled in these consolidated actions for April 24, 2017. H elton v. Fifth Third Bank On August 31, 2015, trust ben eficiaries filed an action against Fifth Third Bank, as trustee, in the Probate Court for Hamilton County, Ohio (Helen Clarke Helton, et a l. v. Fifth Third Bank). The plaintiffs allege breach of the duty to diversi f y, breach of the duty of impartiality, br each of trust/fiduciary duty, and unjust enrichment, based on Fifth Third’s alleged failure to diversify assets held in two trusts held f or the plaintiffs’ benefit. The lawsuit seeks unspecified monetary damages, attorney’s fees, removal of Fifth Third as trustee, and injunctive relief. On January 5, 2016, the Court denied Fi fth Third’s motion to dismiss. The parties are currently engaged in pre-trial proceedings. Trial is currently scheduled for September 18, 2017. Upsher-Smith Laboratories, Inc. v. Fif th Third Bank On February 2, 2012, Upsher-Smith Laboratories, Inc. (“Upsher-Smith”) filed suit against Fifth Third Bank in the Fourth Judicial District, Hennepin County, Minnesota (Upsher-Smith Laboratories Inc. v. Fifth Third Bank), alleging that Fifth Th ird improperly implemented foreign exchange (“FX”) transactions requested by plaintiff’s authorized employee who allegedly was the victim of fraud by a third party. Plaintiff asserts claims for breach of contract and the implied covenant of good faith and fair dealing and under Article 4A-202 of the Uniform Commercial Code, with losses allegedly totalling almost $40 million. On March 3, 2016, Fifth Third removed the case to the United States District Court for the District of Minnesota. Fifth Third filed a motion to transfer venue to the United States District Court for the Southern District of Ohio on April 7, 2016, which was denied on December 29, 2016. Discovery was stayed pending the Court’s ruling on the motion to transfer. No trial date has been schedu led. The Champion s Home Owners Association, Inc. v. Jeffrey D. Quammen, et al. On September 12, 2013 Fifth Third Bank was named as a defendant in a cross-complaint filed by Royce Pulliam, P&P Real Estate, LLC and Global Fitness Holdings, LLC (“Plaintiffs”) in the Jessamine Circuit Court in Jessamine County, Kentucky. The Plaintiffs allege that Fifth Third Bank breached a contract to provide commercial funding for Plaintiffs’ national fitness franchise. The Plaintiffs claim to have sustained o ver $50 million in damages from the alleged contract breach. Fifth Third Bank denies that any breach of contract occurred, and further asserts that Plaintiffs executed multiple releases waiving the claims at issue in the litigation. Fifth Third Bank has as serted a $1.5 million claim against Plaintiff Royce Pulliam for breach of guaranty. On February 3, 2017 the Jessamine Circuit Court ruled in favor of Fifth Third Bank granting summary judgment on Fifth Third’s claim for breach of guaranty. The Court denied Fifth Third Bank’s motion for summary judgment seeking dismissal of the Plaintiffs’ claims. The case is set for a bench trial beginning February 27, 2017. Other Litigation The Bancorp and its subsidiaries are not parties to any other material litigati on. However, there are other litigation matters that arise in the normal course of business. While it is impossible to ascertain the ultimate resolution or range of financial liability with respect to these contingent matters, management believes that the resulting liability, if any, from these other actions would not have a material effect upon the Bancorp’s consolidated financial position, results of operations or cash flows. Governmental Investigations and Proceedings The Bancorp and/or its affiliates are involved in information-gathering requests, reviews, investigations and proceedings (both formal and informal) by various governmental regulatory agencies and law enforcement authorities, including but not limited to the CFPB, FINRA, etc., as well as s elf-regulatory bodies regarding their respective businesses. Additional matters will likely arise from time to time. Any of these matters may result in material adverse consequences to the Bancorp, its affiliates and/or their respective directors, officers and other personnel, including adverse judgments, findings, settlements, fines, penalties, orders, injunctions or other actions, amendments and/or restatements of the Bancorp’s SEC filings and/or financial statements, as applicable, and/or determinations of material weaknesses in our disclosure controls and procedures. Investigations by regulatory authorities may from time to time result in civil or criminal referrals to law enforcement. Reasonably Possible Losses in Excess of Accruals The Bancorp and it s subsidiaries are parties to numerous claims and lawsuits as well as threatened or potential actions or claims concerning matters arising from the conduct of its business activities. The outcome of claims or litigation and the timing of ultimate resolutio n are inherently difficult to predict. The following factors, among others, contribute to this lack of predictability: claims often include significant legal uncertainties, damages alleged by plaintiffs are often unspecified or overstated, discovery may no t have started or may not be complete and material facts may be disputed or unsubstantiated. As a result of these factors, the Bancorp is not always able to provide an estimate of the range of reasonably possible outcomes for each claim. An accrual for a p otential litigation loss is established when information related to the loss contingency indicates both that a loss is probable and that the amount of loss can be reasonably estimated. Any such accrual is adjusted from time to time thereafter as appropriat e to reflect changes in circumstances. The Bancorp also determines, when possible (due to the uncertainties described above), estimates of reasonably possible losses or ranges of reasonably possible losses, in excess of amounts accrued. Under U.S. GAAP, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” Thus, references to the upper end o f the range of reasonably possible loss for cases in which the Bancorp is able to estimate a range of reasonably possible loss mean the upper end of the range of loss for cases for which the Bancorp believes the risk of loss is more than slight. For matter s where the Bancorp is able to estimate such possible losses or ranges of possible losses, the Bancorp currently estimates that it is reasonably possible that it could incur losses related to legal and regulatory proceedings in an aggregate amount up to ap proximately $ 43 million in excess of amounts accrued, with it also being reasonably possible that no losses will be incurred in these matters. The estimates included in this amount are based on the Bancorp’s analysis of currently available information, and as new information is obtained the Bancorp may change its estimates. For these matters and others where an unfavorable outcome is reasonably possible but not probable, there may be a range of possible losses in excess of the established accrual that cannot be estimated. Based on information currently available, advice of counsel, available insurance coverage and established accruals, the Bancorp believes that the eventual outcome of the actions against the Bancorp and/or its subsidiaries, including the matters described above, will not, individually or in the aggregate, have a material adverse effect on the Bancorp’s consolidated financial position. However, in the event of unexpected future developments , it is possible that the ultimate resolution of those matters, if unfavorable, may be material to the Bancorp’s results of operations for any particular period, depending, in part, upon the size of the loss or liability imposed and the operating results f or the applicable period . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions | |
Related Party Transactions | 19. RELATED PARTY TRANSACTIONS The Bancorp maintains written policies and procedures covering related party transactions with principal shareholders, directors and executives of the Bancorp. These procedures cover transactions such as employee-stock purchase loans, personal lines of credit, residential secured loans, overdrafts, letters of credit and increases in indebtedness. Such transactions are subject to the Bancorp’s normal underwriting and approval procedures. Prior to approving a loan to a related party, Compliance Risk Manage ment must review and determine whether the transaction requires approval from or a post notification to the Bancorp’s Board of Directors. At December 31, 2016 and 2015 , certain directors, executive officers, principal holders of Bancorp common stock and thei r related interests were indebted, including undrawn commitments to lend, to the Bancorp’s banking subsidiary . The following table summarizes the Bancorp’s lending activities with its principal shareholders, directors, executives and their related interests at December 31: ($ in millions) 2016 2015 Commitments to lend, net of participations: Directors and their affiliated companies $ 618 831 Executive officers 4 5 Total $ 622 836 Outstanding balance on loans, net of participations and undrawn commitments $ 54 97 The commitments to lend are in the form of loans and guarantees for various business and personal interests. This indebtedness was incurred in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties. This indebtedness does not involve more than the normal risk of repayment or present other features unfavorable to the Bancorp. Vantiv Holding, LLC On June 30, 2009, the Ban corp completed the sale of a majority interest in its p rocessing b usiness, Vantiv Holding, LLC . Advent International acquired an approximate 51% interest in Vantiv Holding, LLC for cash and a warrant . The Bancorp retained the remaining approximate 49 % inte rest in Vantiv Holding, LLC. During the first quarter of 2012, Vantiv, Inc. priced an IPO of its shares and contributed the net proceeds to Vantiv Holding, LLC for additional ownership interests. As a result of this offering, the Bancorp’s ownership of Va ntiv Holding, LLC was reduced to approximately 39%. The impact of the capital contributions to Vantiv Holding, LLC and the resulting dilution in the Bancorp’s interest resulted in a gain of $ 115 million recognized by the Bancorp i n the first quarter of 201 2. The following table provides a summary of the sales transactions that impacted the Bancorp's ownership interest in Vantiv Holding, LLC after the initial IPO: Ownership Percentage Sold Gain on Sale Remaining Ownership Percentage (a) ($ in millions) Q4 2012 6 % $ 157 33 % Q2 2013 5 242 28 Q3 2013 3 85 25 Q2 2014 3 125 23 Q4 2015 5 331 18 (a) The Bancorp’s remaining investment in Vantiv Holding, LLC of $ 414 as of December 31, 201 6 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. The Bancorp agreed during the fourth quarter of 2015 to cancel rights to purchase app roximately 4.8 million Class C U nits in Vantiv Holding, LLC, the wholly-owned principal operating subsidiary of Vantiv, Inc., underlying the warrant in exchange for a cash payment of $200 million. Subsequent to this cancellation, the Bancorp exercised its right to purchase approximately 7.8 million Class C Units underlying the warrant at the $15.98 strike price. This exercise was settled on a net basis for app roximately 5.4 million Class C U nits, which were then exchanged for approximately 5.4 million shares of Vantiv, Inc. Class A Common S tock that were sold in the secondary offering. The Bancorp recognized a gain of $89 million in other noninterest income on the 62% of the warrant that was settled or net exercised. Additionally, during the fourth quarter of 2015, the Bancorp exchanged 8 million Clas s B U nits of Vantiv Hold ing, LLC for 8 million Class A S hares in Vantiv, Inc., which were also sold in the secondary offeri ng and on which the Banco rp recognized a gain of $331 million in other noninterest income . During the fourth quarter of 2016, the Bancorp exercised its right to purchase approximately 7.8 million Class C Units underlying the warrant at the $15.98 strike p rice. This exercise was settled on a net basis for approximately 5.7 million Class C U nits , which were then exchanged for approximately 5.7 million shares of Vantiv, Inc. Class A Common Stock of which 4.8 million shares were sold in a secondary offering an d 0.9 million shares were repurchased by Vantiv, Inc . The Banco rp recognized a gain of $9 million in other noninterest income in the Consolidated Statements of Income in 2016 on the exercise of the remaining warrant in Vantiv Holding, LLC. As of December 3 1, 2016 , the Bancorp continued to hold ap proximately 35 million Class B U nits of Vantiv Holding, LLC whic h may be exchanged for Class A Common S tock of Vantiv, Inc. on a one-for-one basis or at Vantiv, Inc.’s option for cash which represents approximate ly 17.9% ownership of Vantiv, Holding, LLC . In addition, the Bancorp holds ap proximately 35 million Class B Common S har es of Vantiv, Inc. The Class B Common S hares give the Bancorp voting rights, but no ec onomic interest in Vantiv, Inc. A t any time , other than in connection with a stockholder vote with respect to a change in control in Van tiv, Inc., the voting rights attributable to the Class B Common Shares are limited to the lesser of 18.5% or the Bancorp’s ownership percentage of Vantiv Holding, LLC, cur rently 17.9%. These securities are subject to certain terms and restrictions. The Bancorp recognized $66 million, $63 million and $48 million, respectively, in other noninterest income as part of its equity method investment in Vantiv Holding, LLC for the years ended December 31, 2016 , 2015 and 2014 and received cash distributions totaling $ 9 million, $ 11 million and $ 23 million during the year s ended December 31, 2016 , 2015 and 2014 , respectively. The Ban corp’s remaining investment in Vantiv Holding, LLC continues to be accounted for under the equity method of accounting as of December 31, 2016 . During the fourth quarter of 2015, the Bancorp entered into an agreement with Vantiv, Inc. under which a portion of its TRA with Vantiv, Inc. was terminated and settled in full for a cash payment of approximately $49 million from Vantiv, Inc. Under the agreement, the Bancorp sold certain TRA cash flows it expected to receive from 2017 to 2030, totaling an estimated $140 million. Approximately half of the sold TRA cash flows related to 2025 and later. This sale did not impact the TRA payment recognized during the fourth quarter of 2015. During the third quarter of 2016, the Bancorp entered into an agreement with Vant iv, Inc. u nder which a portion of its TRA with Vantiv, Inc. was terminated and settled in full for consideration of a cash payment in the amount of $116 million from Vantiv, Inc. Under the agreement, the Bancorp terminated and settled certain TRA cash flow s it expected to receive in the years 2019 to 2035, totaling an estimated $331 million. The Bancorp recognized a gain of $116 million in other noninterest income from this settlement. Additionally, t he agreement provides that Vantiv, Inc. may be obligated to pay up to a total of approximately $171 million to the Bancorp to terminate and settle certain remaining TRA cash flows, totaling an estimated $394 million, upon the exercise of certain call options by Vantiv, Inc. or certain put options by the Bancorp. If the associated call options or put options are exercised, 10% of the obligations would be settled with respect to each quarter in 2017 and 15% of the obligations would be settled with respect to each quarter in 2018. The Bancorp recognized a gain of $1 64 million in other noninterest income associated with these options. This agreement did not impact the TRA payments recognized in the fourth quarter of 2016 and is not expected to impact the TRA payment expecte d in the fourth quarter of 2017. In addition to the impact of the TRA termination s discussed above, the Bancorp recognized $33 million, $31 million and $23 million in noninterest income in the Consolidated Statements of Income associated with the TRA during the years ended December 31, 2016 , 2015 and 2014 , respectively . The following table provides the estimated cash flows to be received as of December 31, 2016 associated with the TRA for the years ending December 31, 2017 and thereafter: Cash Flows to be Received From Put/Call Option Exercises (Fixed Amounts) (b) Estimated Cash Flows to be Received not Subject to Put/Call Option (a) ($ in millions) 2017 $ 63 33 2018 108 42 2019 - 8 2020 - 8 2021 - 8 2022 - 8 2023 - 9 2024 - 9 2025 - 9 2026 - 10 Thereafter - 102 Total $ 171 246 (a) The 2017 cash flow of $33 has been agreed upon with Vantiv, Inc. for settlement in January 2017 and was recognized as a gain in noninterest income during the fourth quarter of 2016. The remaining estimated cash flows in this column (which include TRA benefits associated with the net exercise of the warrant and the subsequent exchange of Vantiv Holding units in the fourth quarter of 2016) will be recognized in future periods when the related uncertainties are resolved. (b) As part of the agreement the Banco rp entered into with Vantiv, Inc. on July 27, 2016, Vantiv, Inc. may be obligated to pay a total of approximately $171 to the Bancorp to terminate certain remaining TRA cash flows, totaling an estimated $394, upon the exercise of certain call options by Va ntiv, Inc. or cert ain put options by the Bancorp . The Bancorp and Vantiv Holding, LLC have various agreements in place covering services relating to the operations of Vantiv Holding, LLC. The services provided by the Bancorp to Vantiv Holding, LLC were initially required to support Vantiv Holding, LLC as a standalone entity during the deconversion period. The majority of services previously provided by the Bancorp to support Vantiv Holding, Inc. as a standalone entity are no longer necessary and are now limited to certain general business resources. Vanti v Holding, LLC paid the Bancorp $ 1 million for these services for each of the years ended December 31, 2016 , 2015 and 2014 . Other services provided to Vantiv Holding, LLC by the Bancorp, have continued beyond the deconversion period, include inte rchange clearing, settlement and sponsorship. Vantiv Holding, LLC paid the Bancorp $ 58 million, $ 47 million and $ 4 4 million for these services for the years ended December 31, 2016 , 2015 and 2014 , respectively . In addition to the previously menti oned services, the Bancorp previously entered into an agreement under which Vantiv Holding, LLC will provide processing services to the Bancorp. The total amount of fees relating to the processing services provided to the Bancorp by Vantiv Holding, LLC tot aled $ 76 million, $ 89 million and $ 8 3 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. These fees are reported as a component of card and processing expense in the Consolidated Statements of Income. As part of the initi al sale, Vantiv Holding, LLC assumed loans totaling $ 1.25 billion owed to the Bancorp, which were refinanced in 2010 into a larger syndicated loan structure that included the Bancorp. The outstanding carrying value of loans to Vantiv Holding, LLC was $ 210 million and $ 191 million at December 31, 2016 and 2015 , respectively . Interest income relating to the loans was $ 4 million, $ 4 million and $ 5 million, respectively, for the years ended December 31, 2016 , 2015 and 2014 and is included in int erest and fees on loans and leases in the Consolidated Statements of Income. Vantiv Holding, LLC’s unused line of credit was $ 59 million and $ 46 million as of December 31, 2016 and 2015 , respectively . SLK Global As of December 31, 2016, the Bancorp owns 100% of Fifth Third Mauritius Holdings Limited , which owns 49% of SLK Global, and accounts for this investment under the equity method of accounting. The Bancorp’s investment in SLK Global was $6 million at both December 31, 2016 and 2015 . The Bancorp recognized $3 million in other noninterest income in the Consolidated Statements of Income as part of its equity method investment in SLK Global for each of the years ended December 31, 2016 , 2015 , and 2014 and received an imm aterial amount of cash distributions during the years ended December 31, 2016 , 2015 and 2014 . The Bancorp paid SLK Global $20 million, $17 million and $13 million for their process and software services during t he years ended December 31, 2016 , 2015 and 2014 , respectively. CDC Investments The Bancorp ’s subsidiary, CDC, has equity investments in entities in which the Bancorp had $76 million and $5 mil lion of loans outstanding at December 31, 2016 and 2015 , respectively , and unfund ed commitmen t balances of $18 million and $88 million at December 31, 2016 and 2015 , respectively. The Bancorp held $28 million and $23 million of deposits for these entities at December 31, 2016 and 2015 , respectively. For further information on CDC investments, refer to Note 11. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Income Taxes | 20. IN COME TAXES The Bancorp and its subsidiaries file a consolidated federal income tax return. The following is a summary of applicable income taxes included in the Consolidated Statements of Income for the years ended December 31: ($ in millions) 2016 2015 2014 Current income tax expense: U.S. Federal income taxes $ 598 662 424 State and local income taxes 55 55 34 Foreign income taxes - 13 8 Total current income tax expense 653 730 466 Deferred income tax (benefit) expense: U.S. Federal income taxes (133) (78) 71 State and local income taxes (14) 6 9 Foreign income taxes (1) 1 (1) Total deferred income tax (benefit) expense (148) (71) 79 Applicable income tax expense $ 505 659 545 The following is a reconciliation between the statutory U.S. Federal income tax rate and the Bancorp’s effective tax rate for the years ended December 31: 2016 2015 2014 Statutory tax rate 35.0 % 35.0 35.0 Increase (decrease) resulting from: State taxes, net of federal benefit 1.3 1.7 1.4 Tax-exempt income (2.7) (1.7) (1.4) Low-income housing tax credits (7.9) (6.6) (7.0) Other tax credits (0.9) (0.9) (1.1) Other, net (0.4) 0.3 - Effective tax rate 24.4 % 27.8 26.9 Other tax credits in the rate reconciliation table include New Markets, Rehabilitation Investment and Qualified Zone Academy Bond tax credits. Tax-exempt income in the rate reconciliation table includes interest on municipal bonds, interest on tax-exempt lending, income on life insurance policies held by the Bancorp, and certain gains on sales of leases that are exempt from federal taxation . The following table provides a reconciliation of the beginning and ending amounts of the Bancorp’s unrecognized tax benefits: ($ in millions) 2016 2015 2014 Unrecognized tax benefits at January 1 $ 13 11 7 Gross increases for tax positions taken during prior period 9 1 2 Gross decreases for tax positions taken during prior period - - - Gross increases for tax positions taken during current period 2 2 2 Settlements with taxing authorities - - - Lapse of applicable statute of limitations - (1) - Unrecognized tax benefits at December 31 (a) $ 24 13 11 (a ) Amounts represent unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. The Bancorp’s unrecognized tax benefits as of December 31, 2016 , 2015 , and 2014 primarily relate to state income tax exposures from taking tax positions where the Bancorp believes it is likely that, upon examination, a state will take a position contrary to the position taken by the Bancorp. While it is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the Bancorp’s uncertain tax positions could increase or decrease during the next twelve months, the Bancorp be lieves it is unlikely that its unrecognized tax benefits will change by a material amount during the next twelve months. Deferred income taxes are comprised of the following items at December 31: ($ in millions) 2016 2015 Deferred tax assets: Allowance for loan and lease losses $ 439 445 Deferred compensation 122 118 Reserves 57 61 Reserve for unfunded commitments 56 48 State net operating loss carryforwards 9 10 Other 223 194 Total deferred tax assets $ 906 876 Deferred tax liabilities: Lease financing $ 940 935 Investments in joint ventures and partnership interests 219 248 MSRs and related economic hedges 202 245 State deferred taxes 64 79 Bank premises and equipment 61 53 Other comprehensive income 34 106 Other 173 218 Total deferred tax liabilities $ 1,693 1,884 Total net deferred tax liability $ (787) (1,008) At December 31, 2016 and 2015, the Bancorp recorded deferred tax assets of $ 9 million and $ 10 million, respectively, related to state net operating loss carryforwards. The deferred tax assets relating to state net operating losses (primarily resulting from leasing operations) are presented net of specific valuation allowances of $ 25 million and $ 22 million at December 31, 2016 and 2015, respectively. If these carryforwards are not utilized, they will expire in varying amounts through 2035. At December 3 1, 2016 and 2015, the Bancorp recorded a deferred tax asset of $ 3 million and $ 5 million, respectively related to a foreign tax credit carryforward. If not utilized, the majority of the deferred tax asset relating to the foreign tax credit carryforward wil l expire in 2025. The Bancorp has determined that a valuation allowance is not needed against the remaining deferred tax assets as of December 31, 2016 or 2015. The Bancorp considered all of the positive and negative evidence available to determine whether it is more likely than not that the deferred tax assets will ultimately be realized and, based upon that evidence, the Bancorp believes it is more likely than not that the deferred tax assets recorded at December 31, 2016 and 2015 will ultimately be reali zed. The Bancorp reached this conclusion as the Bancorp has taxable income in the carryback period and it is expected that the Bancorp’s remaining deferred tax assets will be realized through the reversal of its existing taxable temporary differences and i ts projected future taxable income. The IRS is currently examining the Bancorp’s 2012 and 2013 federal income tax returns. The statute of limitations for the Bancorp’s federal income tax returns remains open for tax years 2012-2016. On occasion, as variou s state and local taxing jurisdictions examine the returns of the Bancorp and its subsidiaries, the Bancorp may agree to extend the statute of limitations for a reasonable period of time. Otherwise, the statutes of limitations for state income tax returns remain open only for tax years in accordance with each state’s statutes. Any interest and penalties incurred in connection with income taxes are recorded as a component of income tax expense in the Consolidated Financial Statements. During the year ended D ecember 31, 2016, the Bancorp recognized $ 1 million of interest expense in connection with income taxes and an immaterial amount of interest expense/benefit for the years ended December 31, 2015 and 2014. At December 31, 2016 and 2015, the Bancorp had accr ued interest liabilities, net of the related tax benefits, of $ 1 million. No material liabilities were recorded for penalties related to income taxes. Retained earnings at December 31, 2016 and 2015 included $ 157 million in allocations of earnings for bad debt deductions of former thrift subsidiaries for which no income tax has been provided. Under current tax law, if certain of the Bancorp’s subsidiaries use these bad debt reserves for purposes other than to absorb bad debt losses, they will be subject to federal income tax at the current corporate tax rate. During 2016, the Bancorp adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, effective as of January 1, 2016. Consistent with existing U.S. GAAP and ASU 2016-09, the Bancorp e stablishes a deferred tax asset and recognizes a corresponding deferred tax benefit for stock-based awards granted to its employees and directors based on enacted tax rates and the expense recorded for financial reporting purposes. The actual tax deductio n for these stock-based awards is determined when the stock-based awards are settled or expired and the tax deductions will typically be greater than or less than the expense previously recognized for financial reporting. Among other requirements, ASU 2016 -09 requires that the tax consequences for the difference between the expense recognized for financial reporting and the Bancorp’s actual tax deduction for the stock-based awards be recognized through income tax expense in the interim periods in which they occur. Prior to the adoption of ASU 2016-09, the tax consequences for the difference between the expense recognized for financial reporting and the actual tax deduction for stock-based awards was recognized either through additional paid-in-capital when t he Bancorp accumulated “excess tax benefits” from stock based awar ds or through income tax expense when the Bancorp depleted its accumulated “excess tax benefits” from stock-based awards . |
Retirement and Benefit Plans
Retirement and Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Retirement and Benefit Plans | |
Retirement and Benefit Plans | 21 . RETIR EMENT AND BENEFIT PLANS The Bancorp’s qualified defined benefit plan’s benefits were frozen in 1998, except for grandfathered employees. The Bancorp’s other retirement plans consist of non - qualified, defined benefit plans, which are frozen and funded on an as needed basis. A majority of these plans were obtained in acquisitions from prior years and are included with the qualified defined benefit plan in the following tables (“the Plan”) . The Bancorp recognizes the overfunded and underfu nded status of the Plan as an ass et and l iability, respectively, in the Consolidated Balance Sheets. The Plan had an underfunded projected benefit obligation at both December 31, 2016 and 2015 . The underfunded amounts recognized in other liabilities in the Consolidated Balance Sheets were $ 34 million and $ 54 million at December 31, 2016 and 2015 , respectively. The following table summarizes the Plan as of and for the years ended December 31: ($ in millions) 2016 2015 Fair value of plan assets at January 1 $ 166 195 Actual return on assets 11 (6) Contributions 20 4 Settlement (15) (17) Benefits paid (10) (10) Fair value of plan assets at December 31 $ 172 166 Projected benefit obligation at January 1 $ 220 247 Interest cost 9 9 Settlement (15) (17) Actuarial (gain) loss 2 (9) Benefits paid (10) (10) Projected benefit obligation at December 31 $ 206 220 Underfunded projected benefit obligation at December 31 $ (34) (54) Accumulated benefit obligation at December 31 (a) $ 206 220 (a) Since the Plan’s benefits are frozen , the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2016 and 2015 . T he estimated net actuarial loss for the Plan that will be amortized from AOCI into net periodic benefit cost during 2017 is $ 7 million. The estimated net prior service cost for the Plan that will be amortized from AOCI into net periodic benefit cost during 2017 is immaterial to the Consolidated Financial Statements. The following table summarizes net periodic benefit cost and other changes in the Plan's assets and benefit obligations recognized in OCI for the years ended December 31: ($ in millions) 2016 2015 2014 Components of net periodic benefit cost: Interest cost $ 9 9 10 Expected return on assets (11) (13) (14) Amortization of net actuarial loss 11 10 7 Settlement 7 7 5 Net periodic benefit cost $ 16 13 8 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial loss $ 2 9 37 Amortization of net actuarial loss (11) (10) (7) Settlement (7) (7) (5) Total recognized in other comprehensive income (16) (8) 25 Total recognized in net periodic benefit cost and other comprehensive income $ - 5 33 Fair Value Measurements of Plan Assets The following tables summarize plan assets measured at fair value on a recurring basis as of December 31: Fair Value Measurements Using (a) 2016 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Equity securities (b) $ 56 - - 56 Mutual and exchange-traded funds: Money market funds 6 - - 6 International funds - 31 - 31 Domestic funds - 39 - 39 Debt funds - 5 - 5 Alternative strategies 1 9 - 10 Commodity funds 6 - - 6 Total mutual and exchange-traded funds $ 13 84 - 97 Debt securities: U.S. Treasury and federal agencies securities 7 1 - 8 Mortgage-backed securities: Agency residential mortgage-backed securities - 1 - 1 Agency commercial mortgage-backed securities - 2 - 2 Asset-backed securities and other debt securities (c) - 8 - 8 Total debt securities $ 7 12 - 19 Total plan assets $ 76 96 - 172 For further information on fair value hierarchy levels, refer to Note 1. Includes holdings in Bancorp common stock. Includes corporate bonds. Fair Value Measurements Using (a) 2015 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Equity securities (b) $ 52 - - 52 Mutual and exchange-traded funds: Money market funds 15 - - 15 International funds - 35 - 35 Domestic funds - 31 - 31 Debt funds - 3 - 3 Alternative strategies - 11 - 11 Commodity funds 6 - - 6 Total mutual and exchange-traded funds $ 21 80 - 101 Debt securities: U.S. Treasury and federal agencies securities 2 2 - 4 Mortgage-backed securities: Agency residential mortgage-backed securities - 3 - 3 Agency commercial mortgage-backed securities - 2 - 2 Non-agency commercial mortgage-backed securities - 1 - 1 Asset-backed securities and other debt securities (c) - 3 - 3 Total debt securities $ 2 11 - 13 Total plan assets $ 75 91 - 166 For further information on fair value hierarchy levels, refer to Note 1 . Includes holdings in Bancorp common stock. Includes corporate bonds. The following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Equity securities The P lan measures common stock using quoted prices which are available in an active market and classifies these investments within Level 1 of the valuation hierarchy. Mutual and exchange- traded funds All of the Plan’s mutual and exchange- traded funds are publicly traded. The P lan measu res the value of these investments using the fund’s quoted prices which are available in an active market and classifies these investments within Level 1 of the valuation hierarchy. Level 1 securities include money market funds, alternative strategies and commodity funds. Where quoted prices are not available, the Plan measures the fair value of these investments based on the redemption price of units held, which is based on the current fair value of the fund’s underlying assets. Unit values are determined by dividing the fund’s net assets at fair value by its units outstanding at the valuation dates to obtain the investment’s net asset value. Therefore, investments such as international funds, domestic funds, debt funds and alternative strategies are classi fied within Level 2 of the valuation hierarchy. Debt securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities. If quoted mark et prices are not available, the n fair values are estimated using pricing models, quoted prices of securities with similar characteristics, or DCFs. Examples of such instruments, which are classified within Level 2 of the valuation hierarchy, include federal agencies securities, agency residential mortgage-backed securities, agency commercial mortgage-backed securities, non-agency commercial mortgage-backed securities and asset-backed securities and other debt securities. Plan Assumptions The P lan ’s assumptions are evaluated annually and are updated as necessary. The discount rate assumption reflects the yield on a portfolio of high quality fixed-income instruments that have a similar duration to the P lan’s liabilities. The expected long-term rate of return assumption reflects the average return expected on the assets invested to provide for the P lan’s liabilities. In determining the expected long-term rate of return, the Bancorp evaluated actuarial and economic inputs, including long-term inflation r ate assumptions and broad equity and bond indices long-term return projections, as well as actual long-t erm historical plan performance. The following table summarizes the weighted-average plan assumptions for the years ended December 31: 2016 2015 2014 For measuring benefit obligations at year end: Discount rate 3.97 % 4.16 3.82 Rate of compensation increase (a) N/A N/A N/A Expected return on plan assets 7.00 7.00 7.25 For measuring net periodic benefit cost: Discount rate 4.16 3.82 4.72 Rate of compensation increase (a) N/A N/A N/A Expected return on plan assets 7.00 7.00 7.25 (a) Since the Plan’s benefits were frozen , except for grandfathered employees, the rate of compensation increase is no longer applicable beginning in 2014 since minimal grandfathered employees are still accruing benefits. Lowering both the expected rate of return on the plan assets and the discount rate by 0.25% would have increased the 2016 pension expense by approximately $ 1 million. Based on the actuarial assumptions, the Bancorp expects to contribute $ 3 million to the Plan in 2017 . Esti mated pension benefit payments are $ 18 million in 2017 , $ 17 million in 201 8 , $ 1 6 million in 201 9 , $ 1 6 million in 20 20 and $ 16 million in 20 21 . The total estimated payments for the years 202 2 through 202 6 is $ 77 million. Inve stment Policies and Strategies The Bancorp’s policy for the investment of plan assets is to employ investment strategies that achieve a range of weighted-average target asset allocations relating to equity securities (including the Bancorp’s common stock), fixed- income securities (including U.S. Treasury and federal agencies securities , mortgage-backed securities, asset-backed securities and corporate bonds ) , alternative strategies (including traditional mutual funds, precious metal s and commodities) and cash. The following table provides the Bancorp’s targeted and actual weighted-average asset allocations by asset category for the years ended December 31: Targeted Range (b) 2016 2015 Equity securities 73 % 69 Bancorp common stock 2 2 Total equity securities (a) 60-90 % 75 71 Fixed-income securities 5-25 14 16 Alternative strategies 3-11 6 7 Cash 0-13 5 6 Total 100 % 100 Includes mutual and exchange- traded funds . These reflect the targeted ranges for both the years ended December 31, 2016 and 2015 . The risk tolerance for the Plan is determined by management to be “moderate to aggressive”, recognizing that higher returns involve some volatility and that periodic declines in the portfolio’s value are tolerated in an effort to achieve real capital growth. There were no significant co ncentrations of risk associated with the investments of th e Plan at December 31, 2016 and 2015 . Permitted asset classes of the Plan include c ash and cash equivalents, fixed- income (domestic and non-U.S. bonds), equities (U.S., non-U.S., emerging mark ets and REITS), equipment leasing , precious metals, commod ity transactions and mortgages. The Plan utilizes derivative instruments including puts, calls, straddles or other option strategies , as approved by management. Per ERISA, the Bancorp’s common stock cannot exceed 10% of the fair value of plan assets. Fifth Third Bank, as Trustee, is expected to manage plan assets in a manner consistent with the plan agreement and other regulatory, federal and state laws. As of December 31, 2016 and 2015 , $ 172 m illion and $ 166 million, respectively, of plan assets were managed by Fifth Third Bank. The Fifth Third Bank Pension, 401(k) and Medical Plan Committee (the “Committee”) is the plan administrator. The Trustee is required to provide to the Committee monthly and quarterly reports covering a list of plan assets, portfolio performance, transactions and asset allocation. The Trustee is also required to keep the Committee apprised of any material changes in the Trustee’s outlook and recommended investment policy. There were no fees paid by the Plan for investment management, accounting or administrative services provided by the Trustee. As of December 31, 2016 and 2015 , Plan assets included $ 5 million and $ 4 million, respectively, of Bancorp common stock, wh ich is below the 10% ERISA threshold previously discussed . Plan assets are not expected to be returned to the Bancorp during 2017 . Other Information on Retirement and Benefit Plans The Bancorp has a qualified defined contribution savings plan t hat allows participants to make voluntary 401(k) contributions on a pre-tax or Roth basis, subject to statutory limitations. The Bancorp amended and restated the qualified defined contribution savings plan in its entirety, effective as of January 1, 2015. Beginning with the 2015 plan year, the Bancorp provides a higher company 401(k) match contribution. Expenses recognized for matching contributions to the Bancorp’s qualified defined contribution savings plan were $ 75 million , $ 71 million and $ 44 million fo r the years ended December 31, 2016 , 2015 and 2014 , respectively. The Bancorp did not make profit sharing contributions during the years ended December 31, 2016 and 2015 . The Bancorp’s profit sharing plan expense was $ 19 million for the year ended December 31, 2014 . In addition, the Bancorp has a non-qualified defined contribution plan that allows certain employees to make voluntary contributions into a deferred compensation plan. Expenses recognized by the Bancorp for its non-qualified defined contribution plan were $ 3 million for both of the years ended December 31, 2016 and 2015 and $ 2 million for the year ended December 31, 2014 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | 22 . ACCUMULATED OTHER COMPREHENSIVE INCOME The tables below presents the activity of the components of OCI and AOCI for the years ended December 31: Total Other Total Accumulated Other Comprehensive Income Comprehensive Income Pre-tax Tax Net Beginning Net Ending ($ in millions) Activity Effect Activity Balance Activity Balance 2016 Unrealized holding losses on available-for-sale securities arising during the year $ (196) 66 (130) Reclassification adjustment for net gains on available-for-sale securities included in net income (11) 4 (7) Net unrealized gains on available-for-sale securities (207) 70 (137) 238 (137) 101 Unrealized holding gains on cash flow hedge derivatives arising during the year 30 (11) 19 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (48) 17 (31) Net unrealized gains on cash flow hedge derivatives (18) 6 (12) 22 (12) 10 Net actuarial loss arising during the year (2) 1 (1) Reclassification of amounts to net periodic benefit costs 18 (6) 12 Defined benefit pension plans, net 16 (5) 11 (63) 11 (52) Total $ (209) 71 (138) 197 (138) 59 Total Other Total Accumulated Other Comprehensive Income Comprehensive Income Pre-tax Tax Net Beginning Net Ending ($ in millions) Activity Effect Activity Balance Activity Balance 2015 Unrealized holding losses on available-for-sale securities arising during the year $ (349) 122 (227) Reclassification adjustment for net gains on available-for-sale securities included in net income (16) 6 (10) Net unrealized gains on available-for-sale securities (365) 128 (237) 475 (237) 238 Unrealized holding gains on cash flow hedge derivatives arising during the year 74 (26) 48 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (75) 26 (49) Net unrealized gains on cash flow hedge derivatives (1) - (1) 23 (1) 22 Net actuarial loss arising during the year (9) 4 (5) Reclassification of amounts to net periodic benefit costs 17 (6) 11 Defined benefit pension plans, net 8 (2) 6 (69) 6 (63) Total $ (358) 126 (232) 429 (232) 197 Total Other Total Accumulated Other Comprehensive Income Comprehensive Income Pre-tax Tax Net Beginning Net Ending ($ in millions) Activity Effect Activity Balance Activity Balance 2014 Unrealized holding gains on available-for-sale securities arising during the year $ 580 (202) 378 Reclassification adjustment for net gains on available-for-sale securities included in net income (37) 13 (24) Net unrealized gains on available-for-sale securities 543 (189) 354 121 354 475 Unrealized holding gains on cash flow hedge derivatives arising during the year 60 (21) 39 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (44) 15 (29) Net unrealized gains on cash flow hedge derivatives 16 (6) 10 13 10 23 Net actuarial loss arising during the year (37) 12 (25) Reclassification of amounts to net periodic benefit costs 12 (4) 8 Defined benefit pension plans, net (25) 8 (17) (52) (17) (69) Total $ 534 (187) 347 82 347 429 The table below presents reclassifications out of AOCI for the years ended December 31: Consolidated Statements of Components of AOCI: ($ in millions) Income Caption 2016 2015 2014 Net unrealized gains on available-for-sale securities: (b) Net gains included in net income Securities gains, net $ 11 16 37 Income before income taxes 11 16 37 Applicable income tax expense (4) (6) (13) Net income 7 10 24 Net unrealized gains on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases 48 75 44 Income before income taxes 48 75 44 Applicable income tax expense (17) (26) (15) Net income 31 49 29 Net periodic benefit costs: (b) Amortization of net actuarial loss Employee benefits expense (a) (11) (10) (7) Settlements Employee benefits expense (a) (7) (7) (5) Income before income taxes (18) (17) (12) Applicable income tax expense 6 6 4 Net income (12) (11) (8) Total reclassifications for the period Net income $ 26 48 45 This AOCI component is included in the computation of net periodi c benefit cost. Refer to Note 20 f or information on the computation of net periodic benefit cost. Amounts in parentheses indicate reductions to net income. |
Common, Preferred and Treasury
Common, Preferred and Treasury Stock | 12 Months Ended |
Dec. 31, 2016 | |
Common, Preferred and Treasury Stock | |
Common, Preferred and Treasury Stock | 23 . COMMON , PREFERRED AND TREASURY STOCK The table presents a summary of the share activity within common, preferred and treasury stock for the years ended: Common Stock Preferred Stock Treasury Stock ($ in millions, except share data) Value Shares Value Shares Value Shares December 31, 2013 $ 2,051 923,892,581 $ 1,034 42,000 $ (1,295) 68,586,836 Shares acquired for treasury - - - - (726) 34,799,873 Issuance of preferred shares, Series J - - 297 12,000 - - Impact of stock transactions under stock compensation plans, net - - - - 47 (3,493,671) Other - - - - 2 (47,409) December 31, 2014 $ 2,051 923,892,581 $ 1,331 54,000 $ (1,972) 99,845,629 Shares acquired for treasury - - - - (847) 42,607,855 Impact of stock transactions under stock compensation plans, net - - - - 52 (3,593,406) Other - - - - 3 (47,811) December 31, 2015 $ 2,051 923,892,581 $ 1,331 54,000 $ (2,764) 138,812,267 Shares acquired for treasury - - - - (668) 34,633,221 Impact of stock transactions under stock compensation plans, net - - - - (4) 42,357 Other - - - - 3 (74,563) December 31, 2016 $ 2,051 923,892,581 $ 1,331 54,000 $ (3,433) 173,413,282 Preferred Stock—Series J On June 5, 201 4 , the Bancorp issued, in a registered public offering, 300,000 depositary shares, representing 12,000 shares of 4.90% fixed to floating-rate non-cumulative Series J perpetual preferred stock, for net proceeds of $ 297 million. Each preferred share has a $ 25,000 liquidation preference. The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 4.90% through but excluding September 30, 2019 , at which time it converts to a quarte rly floating - rate divi dend of three-month LIBOR plus 3.129 %. Subject to any required regulatory approval, the Bancorp may redeem the Series J preferred shares at its option , in whole or in part, at any time on or after September 30, 2019, or any time prior following a regulatory capital ev ent . The Series J preferred shares are not convertible into Bancorp common shares or any other securities. Preferred Stock—Series I On December 9, 2013, the Bancorp issued, in a registered public offering, 18,000,000 depo sitary shares, representing 18,000 shares of 6.625% fixed to floating-rate non-cumulative Series I perpetual preferred stock, for net proceeds of $ 441 million. Each preferred share has a $ 25,000 liquidation preference. The preferred stock accrues dividends , on a non-cumulative quarterly basis, at an annual rate of 6.625% through but excluding December 31 , 2023, at which time it converts to a quarterly floating - rate divi dend of three-month LIBOR plus 3.71 % . Subject to any required regulatory approval, the Ba ncorp may redeem the Series I preferred shares at its option in whole or in part, at any time on or after December 31 , 2023 and may redeem in whole but not in part, following a regulatory capital ev ent at any time prior to December 31, 2023 . The Series I p referred shares are not convertible into Bancorp common shares or any other securities. Preferred Stock—Series H On May 1 6 , 2013, the Bancorp issued , in a registered public offering , 600,000 depositary shares, representing 24,000 shares of 5.10% fixed to floating - rate non-cumulative Series H perpetual p referred stock, for net proceeds of $ 593 million. Each preferred share has a $ 25,000 liquidation preference. The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 5.10% through but excluding June 30, 2023, at which time it converts to a quarterly floating - rate dividend of three-month LIBOR plus 3.033% . Subject to any required regulatory approval, the Bancorp may redeem the Series H preferred shares at its option in whole or in part, at any time on or after June 30, 2023 and may redeem in whole but not in part, following a regulatory capital event at any time prior to June 30, 2023 . The Series H preferred shares are not convertible into Bancorp common shares or any o ther securities. Treasury Stock On March 1 5 , 201 6 , the Board of Directors authorized the Bancorp to repurchase up to 100 million common shares in the open market or in privately negotiated transactions and to utilize any derivative or s imilar instrument to effect share repurchase transactions. This share repurchase authorization replaced the Board’s previous authorization from March of 201 4. On March 26, 2014, the Bancorp announced the results of its capital plan submitted to the FRB as part of the 2014 CCAR. The FRB indicated to the Bancorp that it did not object to the potential repurchase of $ 669 million of common shares with the additional ability to repurchase common shares in an amount equal to any after-tax gains realized by the Ba ncorp from the sale of Vantiv, Inc. common stock for the period beginning April 1, 2014 and ending March 31, 2015. On March 11, 2015, the Bancorp announced the results of its capital plan submitted to the FRB as part of the 2015 CCAR. The FRB indicated to the Bancorp that it did not object to the potential repurchase of $ 765 million of common shares with the additional ability to repurchase common shares in an amount equal to any after-tax gains realized by the Bancorp from the sale of Vantiv, Inc. common s tock for the period beginning April 1, 2015 and ending June 30, 2016. On June 29, 2016, the Bancorp announced the results of its capital plan submitted to the FRB as part of the 2016 CCAR. The FRB indicated to the Bancorp that it did not object to the pote ntial repurchase of $ 660 million of common shares with the additional ability to repurchase common shares in an amount equal to any after-tax gains realized by the Bancorp from the sale of Vantiv, Inc. common stock or from the termination and settlement of any portion of the TRA with Vantiv Inc., if executed, for the period beginning July 1, 2016 and ending June 30, 2017. The Bancorp entered into a number of accelerated share repurchase transaction s during the years ended December 31, 2015 and 2016. As p art of these transaction s , the Bancorp entered into forward contracts in which the final number of shares delivered at settlement was based generally on a disco unt to the average daily volume weighted- average price of the Bancorp’s common stock during the term of the se repurchase a greements. T he accelerated share repurchases were treated as two separate transactions : (i) the repurchase of treasury shares on the repurchase date and (ii) a forward contract indexed to the Bancorp’s common stock. The following table presents a summary of the Bancorp's accelerated share repurchase transactions that were entered into or settled during the years ended December 31, 2015 and 2016: Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Repurchase Date Amount ($ in millions) Settlement Date October 23, 2014 180 8,337,875 794,245 9,132,120 January 8, 2015 January 27, 2015 180 8,542,713 1,103,744 9,646,457 April 28, 2015 April 30, 2015 155 6,704,835 842,655 7,547,490 July 31, 2015 August 3, 2015 150 6,039,792 1,346,314 7,386,106 September 3, 2015 September 9, 2015 150 6,538,462 1,446,613 7,985,075 October 23, 2015 December 14, 2015 215 9,248,482 1,782,477 11,030,959 January 14, 2016 March 4, 2016 240 12,623,762 1,868,379 14,492,141 April 11, 2016 August 5, 2016 240 10,979,548 1,099,205 12,078,753 November 7, 2016 December 20, 2016 155 4,843,750 1,044,362 5,888,112 February 6, 2017 Open Market Share Repurchase Transactions Between June 17, 2016 and June 20, 2016, the Bancorp repurchased 1,436,100 shares, or approximately $26 million, of its outstanding common stock through open market repurchase transactions . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation | |
Stock-Based Compensation | 24 . STOCK-BASED COMPENSATION The Bancorp has histori cally emphasized employee stock ownership. The following table provides detail of the number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance under all of the Bancorp’s equity compensation plans approved by shareholders as of December 31, 2016 : Plan Category (shares in thousands) Number of Shares to be Issued Upon Exercise Weighted-Average Exercise Price Per Share Shares Available for Future Issuance Equity compensation plans 18,478 (a)(f) SARs (b) N/A (a) RSAs 4,638 N/A (a) RSUs 5,086 N/A (a) Stock options (c) 7 $32.26 (a) PSAs (d) N/A (a) Employee stock purchase plan 6,129 (e) Total shares 9,731 24,607 Under the 2014 Incentive Compensation Plan, 36 million shares were authorized for issuance as SARs, RSAs, RSUs, stock options, performance share or unit awards, dividend or dividend equivalent rights and stock awards. The number of shares to be issued upon exercise will be determined at exercise based on the difference between the gra nt price and the market price on the date of exercise and the calculation of taxes owed on the exercise . Excludes 0. 02 million outstanding options awarded under plans assum ed by the Bancorp in connection with certain mergers and acquisitions. The Bancorp has not made any awards under these plans and will make no additional awards under these plans. The weighted-average exercise price of the se outstanding options is $ 14.05 pe r share . The number of shares to be issued is dependent upon the Bancorp achieving certain predefined performance targets and ranges from zero shares to approximately 2 million shares. Represents remaining shares of Fifth Third common stock under the Bancorp’s 1993 Stock Purchase Plan, as amended and restated, including an additional 1.5 million shares approved by shareholders on March 28, 2007 and an additional 12 million shares approved by shareholders on April 21, 2009 . Inclu des 4 million shares for Full Value Awards . Stock-based awards are eligible for issuance under the Bancorp’s Incentive Compensation Plan to executives, directors and key employees of the Bancorp and its subsidiaries. The Incentive Compensation Plan was appr oved by shareholders on April 15, 2014 and authoriz ed the issuance of up to 36 million shares, including 16 million shares for Full Value Awards, as equity compensation and provides for SARs , RSAs, RSUs, stock options, performance share or unit awards, dividend or dividend equivalent rights and st ock awards . Full Value Awards are defined as awards with no cash outlay for the employee to obtain the full value. Based on total stock-based awards outstanding (including SARs , RSAs, RSUs, stock options and PSAs ) and shares remaining for future grants und er the 2014 Incentive C ompensation Plan, the potential dilution to which the Bancorp’s shareholders of common stock are exposed due to the potential that stock-based compensation will be awarded to executives, directors or key employees of the Bancorp and its subsidiaries is 9%. SARs, RSAs, RSUs, stock options and PSAs outstanding represent 7% of the Bancorp’s is sued shares at December 31, 2016 . All of the Bancorp’s stock-based awards are to be settled with stock. The Bancorp has historically used treasu ry stock to settle stock-based awards, when available. SARs, issued at fair value based on the closing price of the Bancorp’s common stock on the date of grant, have up to ten year terms and vest and b ecome exercisable ratably over a four year period of co ntinued employment . The Bancorp does not grant discounted SARs or stock options, re-price previousl y granted SARs or stock options or grant reload stock options. RSAs and RSUs are released after three or four years or ratably over three or four years of co ntinued employment . RSAs include dividend and voting rights while RSUs receive dividend equivalents only . Stock options were previously issued at fair value based on the closing price of the Bancorp’s common stock on the date of grant, ha d up to ten year t erms and vested and became fully exercisab le ratably over a three or four year period of continued employment. PSAs have three year cliff vesting terms with market co nditions and/or performance conditions as defined by the plan. All of the Bancorp’s execut ive stock-based awards contain an annual performance hurdle of 2% return on tangible common equity. If this threshold is not met, all PSAs that would vest in the next year are forfeited and all SARs and RSAs that would vest in the next year may also be for feited at the discretion of the Human Capital and Compensation Committee of the Board of Directors. The Bancorp met this threshold as of December 31, 2016 . Stock-ba sed compensation expense was $ 1 11 million, $ 100 million and $ 83 million for the years en ded December 31, 2016 , 2015 and 2014 , r espectively, and is included in salaries, wages and incentives in the Consolidated Statements of Income. The total related income tax benefit recognized was $ 39 million, $ 36 million and $ 30 million for the y ears ended December 31 , 2016 , 2015 and 2014 , respectively. Stock Appreciation Rights The Bancorp uses assumptions, which are evaluated and revised as necessary, in estimating the grant-date fair value of each SAR grant. The weighted-average assumptions were as follows for the years ended December 31: 2016 2015 2014 Expected life (in years) 6 6 6 Expected volatility 37 % 35 35 Expected dividend yield 3.1 2.7 2.4 Risk-free interest rate 1.5 1.6 2.0 The expected life is generally derived from historical exercise patterns and represents the amount of time that SARs granted are expected to be outstanding. The expected volatility is based on a combination of historical and implied volatilities of the Bancorp’s common stock. The expected dividend yield is based on annual dividends divided by the Bancorp’s stock price. Annual dividends are based on projected dividends, estimated using a n expected long-term dividend payout ratio, over the estimated life of the awards. The risk-free interest rate for periods within th e contractual life of the SARs is based on the U.S. Trea sury yield curve in effect at the time of grant. The grant-date fair value of SARs is measured using the Black-Scholes option-pricing model. The weighted-average grant-date fair value of SARs granted was $ 5. 16 , $ 5 . 52 and $ 6.53 per share for the years end ed December 31, 2016 , 2015 and 2014 , respectively. The total grant-date fair value of SARs that vested during the years ended December 31, 2016 , 2015 and 2014 was $ 32 million , $ 35 million and $ 34 million , respectively. At December 31, 2016 , there was $ 40 million of stock -based compensation expense related to outstanding SARs not yet recognized. The expense is expected to be recognized over a n estimated remaining weighted -ave rage period at December 31, 2016 of 2.4 years. 2016 2015 2014 Weighted- Weighted- Weighted- Number of SARs Average Grant Number of SARs Average Grant Number of SARs Average Grant SARs (in thousands, except per share data) Price Per Share Price Per Share Price Per Share Outstanding at January 1 44,129 $ 19.14 45,590 $ 19.79 48,599 $ 19.98 Granted 6,379 17.68 5,219 18.99 4,526 21.63 Exercised (6,291) 14.47 (3,242) 13.59 (4,408) 13.63 Forfeited or expired (4,176) 32.02 (3,438) 32.96 (3,127) 34.19 Outstanding at December 31 40,041 $ 18.30 44,129 $ 19.14 45,590 $ 19.79 Exercisable at December 31 26,898 $ 18.28 29,721 $ 19.71 27,950 $ 21.71 The following table summarizes outstanding and exercisable SARs by grant price per share at December 31, 2016: Outstanding SARs Exercisable SARs Weighted- Weighted- Average Average Weighted- Remaining Weighted- Remaining Number of Average Grant Contractual Life Number of Average Grant Contractual Life SARs (in thousands, except per share data) SARs Price Per Share (in years) SARs Price Per Share (in years) Under $10.00 2,195 $ 3.98 2.3 2,195 $ 3.98 2.3 $10.01-$20.00 30,446 16.36 6.1 19,125 15.51 4.7 $20.01-$30.00 3,513 21.64 7.3 1,691 21.65 7.2 $30.01-$40.00 3,305 38.27 0.3 3,305 38.27 0.3 Over $40.00 582 40.11 0.3 582 40.11 0.3 All SARs 40,041 $ 18.30 5.4 26,898 $ 18.28 4.0 Restricted Stock Awards The total grant-date fair value of RSAs that were released during the years ended December 31, 2016 , 2015 and 2014 was $ 5 5 million , $ 43 million and $ 32 million, respectively. At December 31, 2016 , there was $ 52 million of stock-based c ompensation expense related to outstanding RSAs not yet recognized. The expense is expected to be recognized over an estimated remaining weighted-average period at December 31, 2016 of 2. 0 years. 2016 2015 2014 Weighted-Average Weighted-Average Weighted-Average Grant-Date Grant-Date Grant-Date Fair Value Fair Value Fair Value RSAs (in thousands, except per share data) Shares Per Share Shares Per Share Shares Per Share Outstanding at January 1 8,281 $ 18.88 7,253 $ 17.98 6,710 $ 15.11 Granted 3 20.65 4,250 19.11 3,264 21.61 Released (3,090) 17.92 (2,580) 16.86 (2,183) 14.84 Forfeited (556) 19.20 (642) 18.64 (538) 16.73 Outstanding at December 31 4,638 $ 19.44 8,281 $ 18.88 7,253 $ 17.98 The following table summarizes outstanding RSAs by grant-date fair value at December 31, 2016: Outstanding RSAs Weighted-Average Remaining Contractual Life RSAs (in thousands) Shares (in years) $15.01-$20.00 3,187 1.2 Over $20.00 1,451 1.0 All RSAs 4,638 1.1 Restricted Stock Units The total grant-date fair value of RSUs that were released during both the years ended December 31, 2016 and 2015 was $ 2 million . At December 31, 2016 , there was $ 57 million of stock-based compensation expense related to outstanding RSUs not yet recognized. The expense is expected to be recognized over an estimated remaining weighted-average period at December 31, 2016 of 2.9 years. 2016 2015 Weighted-Average Weighted-Average Grant-Date Grant-Date Fair Value Fair Value RSUs (in thousands, except per unit data) Units Per Unit Units Per Unit Outstanding at January 1 371 $ 19.56 - $ N/A Granted 5,029 17.75 377 19.58 Released (79) 19.76 (5) 21.63 Forfeited (235) 17.89 (1) 19.46 Outstanding at December 31 5,086 $ 17.84 371 $ 19.56 The following table summarizes outstanding RSUs by grant-date fair value at December 31, 2016: Outstanding RSUs Weighted-Average Remaining Contractual Life RSUs (in thousands) Units (in years) $10.01-$15.00 638 1.1 $15.01-$20.00 4,265 1.8 $20.01-$25.00 159 2.0 $25.01-$30.00 24 2.1 All RSUs 5,086 1.7 Stock O ptions The grant-date fair value of stock option s is measured using the Black-Scholes option-pricing model. There were no stock options granted during the years ended December 31, 2016 , 2015 and 2014 . The total intrinsic value of stock options exercised was immaterial for the year ended December 31, 2016 and $ 1 million for both the years ended December 31, 2015 and 2014 . Cash received from stock options exercised was $ 1 million, $ 2 million and $ 1 million for the years ended Dec ember 31, 2016 , 2015 and 2014 , respectively. The tax benefit realized from exercised stock options was immaterial to the Bancorp’s Consolidated Financial Statements during the years ended December 31, 2016 , 2015 and 2014 . All stock opti ons were vested as of December 31, 2008, therefore, no stock options vested during the years ended December 31, 2016 , 2015 or 2014 . As of December 31, 2016 , the aggregate intrinsic value of both outstanding stock options and exercisable stock options was immaterial . 2016 2015 2014 Weighted-Average Weighted-Average Weighted-Average Number of Exercise Price Number of Exercise Price Number of Exercise Price Stock Options (in thousands, except per share data) Options Per Share Options Per Share Options Per Share Outstanding at January 1 119 $ 14.97 265 $ 14.25 546 $ 20.72 Exercised (94) 13.86 (126) 13.67 (115) 12.84 Forfeited or expired - - (20) 13.59 (166) 36.42 Outstanding at December 31 25 $ 19.17 119 $ 14.97 265 $ 14.25 Exercisable at December 31 25 $ 19.17 119 $ 14.97 265 $ 14.25 The following table summarizes outstanding and exercisable stock options by exercise price per share at December 31, 2016: Number of Options Weighted-Average Weighted-Average Remaining Exercise Price Contractual Life Stock Options (in thousands, except per share data) Per Share (in years) Under $10.00 1 $ 8.59 2.0 $10.01-$20.00 18 14.05 0.1 $20.01-$30.00 1 24.41 1.0 $30.01-$40.00 - - - Over $40.00 5 40.98 - All stock options 25 $ 19.17 0.2 Other Stock-Ba sed C ompensation PSAs are payable contingent upon the Bancorp achieving certain predefined performance targets over the three -year measurement period. Awards granted during the years ended December 31, 2016 , 2015 and 2014 will be entirely settled in stock. The performance targets are based on the Bancorp’s performance relative to a defined peer group. During both 2016 and 2015, PSAs used a performance-based metric based on return on tangible common equity in relation to peers, wher eas during 2014, a market-based metric was used which assessed the stock price performance in relation to peers. During the years ended December 31, 2016 , 2015 and 2014 , 583,608 , 458,355 and 322,567 PSAs, respectively, were granted by the Bancorp . These awards were granted at a weighted-average grant-date fair value of $ 1 4.87 , $ 1 9 . 48 and $ 1 5 . 6 1 per unit during the years ended December 31, 2016 , 2015 and 2014 , respectively. The Bancorp sponsors a n employee stock purchase plan that allows qualifying employees to purchase shares of the Bancorp’s common stock with a 15 % match. During the years ended December 31, 2016 , 2015 and 2014 , there were 6 84 ,8 85 , 617 , 829 and 599,101 shares, respectively, purcha sed by participants and the Bancorp recognized stock-based compensation expense of $ 1 million in each of the respective year s . |
Other Noninterest Income and Ot
Other Noninterest Income and Other Noninterest Expense | 12 Months Ended |
Dec. 31, 2016 | |
Other Noninterest Income | |
Other Noninterest Income and Other Noninterest Expense | 25 . OTHER NONINTEREST INCOME AND OTHER NONINTEREST EXPENSE The following table presents the major components of other noninterest income and other noninterest expense for the years ended December 31: ($ in millions) 2016 2015 2014 Other noninterest income: Income from the TRA associated with Vantiv, Inc. $ 313 80 23 Operating lease income 102 89 84 Equity method income from interest in Vantiv Holding, LLC 66 63 48 Valuation adjustments on the warrant associated with sale of Vantiv Holding, LLC 64 236 31 BOLI income 53 48 44 Cardholder fees 46 43 45 Consumer loan and lease fees 23 23 25 Banking center income 20 21 30 Gain on sale of certain retail branch operations 19 - - Private equity investment income 11 28 27 Insurance income 11 14 13 Net gains on loan sales 10 38 - Gain on sale and exercise of the warrant associated with Vantiv Holding, LLC 9 89 - Gain on sale of Vantiv, Inc. shares - 331 125 Loss on swap associated with the sale of Visa, Inc. Class B Shares (56) (37) (38) Net losses on disposition and impairment of bank premises and equipment (13) (101) (19) Other, net 10 14 12 Total other noninterest income $ 688 979 450 Other noninterest expense: Impairment on affordable housing investments $ 168 145 135 FDIC insurance and other taxes 126 99 89 Loan and lease 110 118 119 Marketing 104 110 98 Operating lease 86 74 67 Losses and adjustments 73 55 188 Professional services fees 61 70 72 Data processing 51 45 41 Postal and courier 46 45 47 Travel 45 54 52 Recruitment and education 37 33 28 Provision for (benefit from) the reserve for unfunded commitments 23 4 (27) Donations 23 29 18 Insurance 15 17 16 Supplies 14 16 15 Other, net 187 191 181 Total other noninterest expense $ 1,169 1,105 1,139 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share | |
Earnings Per Share | 26 . EARNINGS PER SHARE The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the years ended December 31: 2016 2015 2014 Average Per Share Average Per Share Average Per Share ($ in millions, except per share data) Income Shares Amount Income Shares Amount Income Shares Amount Earnings per Share: Net income attributable to Bancorp $ 1,564 1,712 1,481 Dividends on preferred stock 75 75 67 Net income available to common shareholders 1,489 1,637 1,414 Less: Income allocated to participating securities 15 15 12 Net income allocated to common shareholders $ 1,474 757 1.95 1,622 799 2.03 1,402 833 1.68 Earnings per Diluted Share: Net income available to common shareholders $ 1,489 1,637 1,414 Effect of dilutive securities: Stock-based awards - 7 - 9 - 10 Net income available to common shareholders 1,489 1,637 1,414 plus assumed conversions Less: Income allocated to participating securities 15 15 12 Net income allocated to common shareholders plus assumed conversions $ 1,474 764 1.93 1,622 808 2.01 1,402 843 1.66 Shares are excluded from the computation of net income per diluted share when their inclusion has an anti-dilutive effect on earnings per share. The diluted earnings per share computation for the years ended December 31, 2016 , 2015 and 2014 excludes 19 million , 16 million and 13 million, respectively, of SAR s and an immaterial amount of stock options because their inclusion would have been anti-dilutive. The diluted earnings per share computation for the year ended December 31 , 2016 exclu des the impact of the forward contract related to the December 20, 2016 accelerated share repurchase transaction . B ased upon the average daily volume weighted - average price of the Bancorp’s common stock from the repurchase date through the fourth quarte r of 2016 , the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward contract as of December 31 , 2016 , and thus the impact of the forward contract related to the accelerated share repu rchase transaction would have been anti-dilutive to earnings per share. The diluted earnings per share computation for the year ended December 31, 2015 excludes the impact of the forward contract related to the December 14, 2015 accelerated share re purchase transaction . B ased upon the average daily volume weighted - average price of the Bancorp’s common stock from the repurchase date through the fourth quarter of 201 5 , the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward contract as of December 31, 2015 , and thus the impact of the forward contract related to the accelerated share repurchase transaction would have been anti-dilutive to earnings per share. The diluted earnings per share computation for the year ended December 31, 2014 excludes the impact of the forward contract related to the October 23 , 201 4 accelerated share repurchase transaction . B ase d upon the average daily volume weighted - average price of the Bancorp’s c ommon stock from the repurchase date through the fourth quarter of 201 4 , the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward contract as of December 31, 201 4 , and thus the impact of the forward contract related to the accelerated share repurchase transaction would have been anti-dilutive to earnings per share. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements | |
Fair Value Measurements | 27 . FAIR VALUE MEASUREMENTS The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. For more information regarding the fair value hierarchy and how the Bancorp measures fair value, refer to Note 1. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables summarize assets and liabilities measured at fair value on a recurring basis, including residential mortgage loans held for sale for which the Bancorp has elected the fair value option as of: Fair Value Measurements Using December 31, 2016 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Assets: Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 471 78 - 549 Obligations of states and political subdivisions securities - 45 - 45 Mortgage-backed securities: Agency residential mortgage-backed securities - 15,608 - 15,608 Agency commercial mortgage-backed securities - 9,055 - 9,055 Non-agency commercial mortgage-backed securities - 3,112 - 3,112 Asset-backed securities and other debt securities - 2,116 - 2,116 Equity securities (a) 90 1 - 91 Available-for-sale and other securities (a) 561 30,015 - 30,576 Trading securities: U.S. Treasury and federal agencies securities - 23 - 23 Obligations of states and political subdivisions securities - 39 - 39 Mortgage-backed securities: Agency residential mortgage-backed securities - 8 - 8 Asset-backed securities and other debt securities - 15 - 15 Equity securities 325 - - 325 Trading securities 325 85 - 410 Residential mortgage loans held for sale - 686 - 686 Residential mortgage loans (b) - - 143 143 Derivative assets: Interest rate contracts 20 715 13 748 Foreign exchange contracts - 202 - 202 Commodity contracts 22 85 - 107 Derivative assets (d) 42 1,002 13 1,057 Total assets $ 928 31,788 156 32,872 Liabilities: Derivative liabilities: Interest rate contracts $ 3 257 5 265 Foreign exchange contracts - 204 - 204 Equity contracts - - 91 91 Commodity contracts 27 79 - 106 Derivative liabilities (e) 30 540 96 666 Short positions (e) 17 4 - 21 Total liabilities $ 47 544 96 687 Excludes FHLB, FRB and DTCC restricted stock totaling $ 248 , $ 358 and $1 , respectively, at December 31, 2016 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . During the year ended December 31, 2016 , no assets or liabilities were transferred between Level 1 and Level 2 . Included in other assets in the Consolidated Balance Sheets. Included in other liabilities in the Consolidated Balance Sheets. Fair Value Measurements Using December 31, 2015 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Assets: Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 100 1,087 - 1,187 Obligations of states and political subdivisions securities - 52 - 52 Mortgage-backed securities: Agency residential mortgage-backed securities - 15,081 - 15,081 Agency commercial mortgage-backed securities - 7,862 - 7,862 Non-agency commercial mortgage-backed securities - 2,804 - 2,804 Asset-backed securities and other debt securities - 1,355 - 1,355 Equity securities (a) 98 1 - 99 Available-for-sale and other securities (a) 198 28,242 - 28,440 Trading securities: U.S. Treasury and federal agencies securities - 19 - 19 Obligations of states and political subdivisions securities - 9 - 9 Mortgage-backed securities: Agency residential mortgage-backed securities - 6 - 6 Asset-backed securities and other debt securities - 19 - 19 Equity securities 333 - - 333 Trading securities 333 53 - 386 Residential mortgage loans held for sale - 519 - 519 Residential mortgage loans (b) - - 167 167 Derivative assets: Interest rate contracts 3 892 15 910 Foreign exchange contracts - 386 - 386 Equity contracts - - 262 262 Commodity contracts 54 240 - 294 Derivative assets (d) 57 1,518 277 1,852 Total assets $ 588 30,332 444 31,364 Liabilities: Derivative liabilities: Interest rate contracts $ 1 257 3 261 Foreign exchange contracts - 340 - 340 Equity contracts - - 61 61 Commodity contracts 37 239 - 276 Derivative liabilities (e) 38 836 64 938 Short positions (e) 22 7 - 29 Total liabilities $ 60 843 64 967 Excludes FHLB, FRB and DTCC restricted stock totaling $ 248 , $ 355 and $1 , respectively, at December 31, 2015 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . During the year ended December 31, 2015 , no assets or liabilities were transferred between Level 1 and Level 2. Included in other assets in the Consolidated Balance Sheets. Included in other liabilities in the Consolidated Balance Sheet s. The following is a description of the valuation methodologies used for significant instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Available-for-sale and other securities and trading securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities and exchange- traded equities. If quo ted market prices are not available, then fair values are estimated using pricing models, quoted prices of securities with similar characteristics or DCFs . Level 2 securities include federal agencies securities, obligations of states and political subdivis ions securities, agency residential mortgage-backed securities, agency and non-agency commercial mortgage-backed securities, asset-backed securities and other debt securities and equity securities . These securities are generally valued using a market appro ach based on observable prices of securities with similar characteristics. Residential mortgage loans held for sale For residential mortgage loans held for sale for which the fair value election has been made , fair value is estimated based upon mortgag e-backed securities prices and spreads to those prices or, for certain ARM loans, DCF models that may incorporate the anticipated portfolio composition, credit spreads of asset-backed securities with similar collateral and market conditions. The anticipate d portfolio composition includes the effect of interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. Residential mortgage loans held for sale th at are va lued based on mortgage- backed securities prices are classified within Level 2 of the valuation hierarchy as the valuation is based on external pricing for similar instruments. ARM loans classified as held for sale are also classified within Level 2 of the valuation hierarchy due to the use of observable inputs in the DCF model. These observable inputs include interest rate spreads from agency mortgage-backed securities market rates and observable discount rates. Residential mortgage loans Residential mor tgage loans held for sale that are reclassified to held for investment are transferred from Level 2 to Level 3 of the fair value hierarchy. It is the Bancorp’s policy to value any transfers between levels of the fair value hierarchy based on end of period fair values. For residential mortgage loans for which the fair value election has been made, and that are reclassified from held for sale to held for investment, the fair value estimation is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Therefore, these loans are classified within Level 3 of the valuation hierarchy. An adverse change in the loss rate or severity assumption would result in a decrease in fair value of the related loan. The Secon dary Marketing d epartment, which reports to the Bancorp’s Head of the Consumer Bank , in conjunction with the Consumer Credit Risk d epartment, which reports to the Bancorp’s Chief Risk Officer, are responsible for determining the valuation methodology for r esidential mortgage loans held for inves tment. The Secondary Marketing d epartment reviews loss severity assumptions quarterly to determine if adjustments are necessary based on decreases in observable housing market data. This group also reviews trades in comparable benchmark securities and adjusts the values of loans as necessary. Consumer Credit Risk is responsible for the credit component of the fair value which is based on internally developed loss rate models that take into account historical loss rate s and loss severities based on underlying collateral values. Derivatives Exchange-traded derivatives valued using quoted prices and certain over-the-counter derivatives valued using active bids are classified within Level 1 of the valuation hierarchy. Mos t of the Bancorp’s derivative contracts are valued using DCF or other models that incorporate current market interest rates, credit spreads assigned to the derivative counterparties and other market parameters and, therefore, are classified within Level 2 of the valuation hierarchy. Such derivatives include basic and structured interest rate , foreign exchange and commodity swaps and options. Derivatives that are valued based upon models with significant unobservable market parameters are classified within L evel 3 of the valuation hierarchy . During the years ended December 31, 2016 and 2015 , derivatives classified as Level 3, which are valued using models containing unobservable inputs, consisted primarily of a warrant associated with the initial sale o f the Bancorp’s 51% interest in Vantiv Holding, LLC to Advent International and a total return swap associated with the Bancor p’s sale of Visa, Inc. Class B S hares. Level 3 derivatives also include IRLCs, which utilize internally generated loan closing rat e assumptions as a significant unobservable input in the valuation process. During the fourth quarter of 2016 , the Bancorp exercised its right to purchase approximately 7.8 million Class C Units underlying the warrant at the $ 15.98 strike price . This exercise was settled on a net basis for approximately 5.7 million Class C U nits , which were then exchanged for approximately 5.7 million shares of Vantiv, Inc. Class A Common Stock of which 4.8 million shares were sold in a secondary offering and 0.9 million shares were repurchased by Vantiv, Inc. For further information on the warrant transaction, refer to Note 19. Prior to the aforementioned warrant transaction, the fair value of the warrant was calculated in conjunction with a third party valu ation provider by applying Black-Scholes option-pricing models using probability weighted scenarios which contain ed the following inputs: Vantiv, Inc. stock price, strike price per the Warrant Agreement and unobservable inputs, such as expected term and ex pected volatility. For the warrant, an increase in the expected term (years) and the expected volatility assumptions would result in an increase in the fair value; conversely, a decrease in these assumptions would result in a decrease in the fair value. T he Accounting and Treasury departments, both of which report to the Bancorp’s Chief Financial Officer, determined the valuation methodology for the warrant. Accounting and Treasury reviewed changes in fair value on a quarterly basis for reasonableness base d on changes in historical and implied volatilities, expected terms, probability weightings of the related scenarios and other assumptions. Under the terms of the total return swap, the Bancorp will make or receive payments based on subsequent changes in t he conversion rate of the Visa, Inc. Class B Shares into Class A S hares. Additionally, the Bancorp will make a quarterly payment based on Visa’s stock price and the conversion rate of the Visa, Inc. Class B Shares into Class A Shares until the date on whic h the Covered Litigation is settled. The fair value of the total return swap was calculated using a DCF model based on unobservable inputs consisting of management’s estimate of the probability of certain litigation scenarios, the timing of the resolution of the Covered Litigation and Visa litigation loss estimate s in excess, or shortfall, of the Bancorp’s proportional share of escrow funds. An increase in the loss estimate or a delay in the resolution of the Covered Litigation would result in an increase in fair value; conversely , a decrease in the loss estimate or an acceleration of the resolution of the Covered Litigation would result in a decrease in fair valu e. The Accounting and Treasury d epartments determined the valuation methodology for the total r eturn swap. Accounting and Treasury review the changes in fair value on a quarterly basis for reasonableness based on Visa stock price changes, litigation contingencies, and escrow funding. The net fair value asset of the IRLCs at December 31, 2016 was $ 12 million. I mmediate decreases in current interest rates of 25 bp s and 50 bp s would result in increases in fair value of the IRLC s of approximately $ 6 million and $ 11 million, respectively. Immediate increases of current interest rates of 25 bp s and 50 bp s would result in decreases in fair value of the IRLC s of approximately $ 6 million and $ 13 million, respectively. The decrease in fair value of IRLCs due to immediate 10% and 20% adverse changes in the assumed loan closing rates would be approximatel y $ 1 million and $ 2 million, re spectively, and the increase in fair value due to immediate 10% and 20% favorable changes in the assumed loan closing rates would be approximately $ 1 million and $ 2 million, respectively. These sensitivities are hypothetical and should be used with caution, as changes in fair value based on a variation in assumptions typically cannot be extrapolated because the relationship of the change in assumpti ons to the change in fair value may not be linear. The Consumer Line of Busine ss Finance department, which reports to the Bancorp’s Chief Financial Officer, and the aforementioned Secondary Marketing department are responsible for determining the valuation methodology for IRLCs. Secondary Marketi ng, in conjunction with a third party valuation provider, periodically review loan closing rate assumptions and recent loan sales to determine if adjustments are needed for current market conditions not reflected in historical data. The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Trading Mortgage Derivatives, Derivatives, Total For the year ended December 31, 2016 ($ in millions) Securities Loans Net (a) Net (a) Fair Value Balance, beginning of period $ - 167 12 201 380 Total gains (losses) (realized/unrealized): Included in earnings - (2) 115 17 130 Purchases - - (3) - (3) Sale and exercise of warrant - - - (334) (334) Settlements - (40) (116) 25 (131) Transfers into Level 3 (b) - 18 - - 18 Balance, end of period $ - 143 8 (91) 60 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2016 (c) $ - (2) 13 (56) (45) Net interest rate derivatives include derivative assets and liabilities of $ 13 and $ 5 , respectively, as of December 31, 2016 . Net equity derivatives include derivative assets and liabilities of $ 0 and $ 91 , respectively, as of December 31, 2016 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Trading Mortgage Derivatives, Derivatives, Total For the year ended December 31, 2015 ($ in millions) Securities Loans Net (a) Net (a) Fair Value Balance, beginning of period $ - 108 10 366 484 Total gains (realized/unrealized): Included in earnings - - 111 288 399 Purchases - - (2) - (2) Sale and exercise of warrant - - - (477) (477) Settlements - (28) (107) 24 (111) Transfers into Level 3 (b) - 87 - - 87 Balance, end of period $ - 167 12 201 380 The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2015 (c) $ - - 17 66 83 Net interest rate derivatives include derivative assets and liabilities of $ 15 and $ 3 , respect ively, as of December 31, 2015 . Net equity derivatives include derivative assets and liabilities of $ 262 and $ 61 , respectively, as of December 31, 2015 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Trading Mortgage Derivatives, Derivatives, Total For the year ended December 31, 2014 ($ in millions) Securities Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 1 92 8 336 437 Total gains (losses) (realized/unrealized): Included in earnings - 4 125 (7) 122 Purchases - - (1) - (1) Sales (1) - - - (1) Settlements - (17) (122) 37 (102) Transfers into Level 3 (b) - 29 - - 29 Balance, end of period $ - 108 10 366 484 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2014 (c) $ - 4 13 (7) 10 Net interest rate derivatives include derivative assets and liabilities of $ 12 and $ 2 , respectively, as of December 31, 2014 . Net equity derivatives include derivative assets and liabilities of $ 415 and $ 49 , respectively, as of December 31, 2014 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Consolidated Statements of Income for the years ended December 31, 2016, 2015 and 2014 as follows: ($ in millions) 2016 2015 2014 Mortgage banking net revenue $ 112 110 127 Corporate banking revenue 1 1 2 Other noninterest income 17 288 (7) Total gains $ 130 399 122 The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at December 31, 2016, 2015 and 2014 were recorded in the Consolidated Statements of Income as follows: ($ in millions) 2016 2015 2014 Mortgage banking net revenue $ 10 16 16 Corporate banking revenue 1 1 1 Other noninterest income (56) 66 (7) Total (losses) gains $ (45) 83 10 The following tables present information as of December 31, 2016 and 2015 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured at fair value on a recurring basis: As of December 31, 2016 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted- Average Residential mortgage loans $ 143 Loss rate model Interest rate risk factor (11.5) - 13.8% 2.3% Credit risk factor 0 - 75.6% 1.4% IRLCs, net 12 Discounted cash flow Loan closing rates 23.8 - 99.5% 76.8% Swap associated with the sale of Visa, Inc. (91) Discounted cash flow Timing of the resolution 12/31/2018 - NM Class B Shares of the Covered Litigation 12/31/2022 As of December 31, 2015 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted- Average Residential mortgage loans $ 167 Loss rate model Interest rate risk factor (9.2) - 16.5% 3.1% Credit risk factor 0 - 80.5% 1.3% IRLCs, net 15 Discounted cash flow Loan closing rates 5.8 - 94.0% 76.3% Stock warrant associated with Vantiv Holding, LLC 262 Black-Scholes option- Expected term (years) 2.0 - 13.5 5.9 pricing model Expected volatility (a) 22.6 - 31.2% 25.9% Swap associated with the sale of Visa, Inc. (61) Discounted cash flow Timing of the resolution 12/31/2016 - NM Class B Shares of the Covered Litigation 3/31/2021 (a) Based o n historical and implied volatilities of Vantiv, Inc. and comparable companies assuming similar expected terms . Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of December 31, 2016 and 2015 and for which a nonrecurring fair value adjustment was recorded during the years ended December 31, 2016 and 2015, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period. Fair Value Measurements Using Total (Losses) Gains As of December 31, 2016 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2016 Commercial loans held for sale $ - - 5 5 (32) Commercial and industrial loans - - 412 412 (166) Commercial mortgage loans - - 15 15 (4) Commercial construction loans - - - - 2 Commercial leases - - 3 3 (3) MSRs - - 744 744 7 OREO - - 42 42 (17) Bank premises and equipment - - 28 28 (31) Operating lease equipment - - 37 37 (9) Private equity investments - - 60 60 (9) Total $ - - 1,346 1,346 (262) Fair Value Measurements Using Total (Losses) Gains As of December 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2015 Commercial loans held for sale $ - - 13 13 3 Residential mortgage loans held for sale - - 68 68 (2) Automobile loans held for sale - - 2 2 - Credit cards held for sale - - 4 4 (2) Commercial and industrial loans - - 344 344 (137) Commercial mortgage loans - - 103 103 (41) Commercial construction loans - - 6 6 (5) Residential mortgage loans - - 55 55 (1) MSRs - - 784 784 4 OREO - - 58 58 (24) Bank premises and equipment - - 83 83 (101) Operating lease equipment - - 42 42 (33) Private equity investments 13 13 (1) Total $ - - 1,575 1,575 (340) The following tables present information as of December 31, 2016 and 2015 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets measured on a nonrecurring basis: As of December 31, 2016 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 5 Appraised value Appraised value NM NM Commercial and industrial loans 412 Appraised value Collateral value NM NM Commercial mortgage loans 15 Appraised value Collateral value NM NM Commercial construction loans - Appraised value Collateral value NM NM Commercial leases 3 Appraised value Appraised value NM NM MSRs 744 Discounted cash flow Prepayment speed 0.7 - 100% (Fixed) 10.2% (Adjustable) 25.3% OAS spread (bps) 100 - 1,515 (Fixed) 654 (Adjustable) 738 OREO 42 Appraised value Appraised value NM NM Bank premises and equipment 28 Appraised value Appraised value NM NM Operating lease equipment 37 Appraised value Appraised value NM NM Private equity investments 60 Liquidity discount applied Liquidity discount 5.0 - 37.5% 12.8% to fund's net asset value As of December 31, 2015 ($ in millions) Significant Unobservable Ranges of Financial Instrument Fair Value Valuation Technique Inputs Inputs Weighted-Average Commercial loans held for sale $ 13 Discounted cash flow Discount spread NM 4.4% Residential mortgage loans held for sale 68 Loss rate model Interest rate risk factor (7.5) - 0.1% (1.6%) Credit risk factor NM 0.1% Automobile loans held for sale 2 Discounted cash flow Discount spread NM 3.1% Credit cards held for sale 4 Comparable transactions Estimated sales proceeds from NM NM comparable transactions Commercial and industrial loans 344 Appraised value Collateral value NM NM Commercial mortgage loans 103 Appraised value Collateral value NM NM Commercial construction loans 6 Appraised value Collateral value NM NM Residential mortgage loans 55 Appraised value Appraised value NM NM MSRs 784 Discounted cash flow Prepayment speed 1.0 - 100% (Fixed) 11.8% (Adjustable) 27.0% OAS spread (bps) 364 - 1,515 (Fixed) 618 (Adjustable) 703 OREO 58 Appraised value Appraised value NM NM Bank premises and equipment 83 Appraised value Appraised value NM NM Operating lease equipment 42 Appraised value Appraised value NM NM Private equity investments 13 Liquidity discount applied Liquidity discount NM 18.0% to fund's net asset value Commercial loans held for sale During the years ended December 31, 2016 and 2015 , the Bancorp transferred $ 140 million and $ 37 million, respectively, of commercial loans from the portfolio to loans held for sale that upon transfer were measured at the lower of cost or fair value. These loans had fair value adjustments during the years ended December 31, 2016 and 2015 totaling $ 30 million and $ 1 m illion, respectively, and were generally based on either appraisals of the underlying collateral or were estimated by discounting future cash flows using the current market rates of loans to borrowers with similar credit characteristics, similar remaining maturities, prepayment speeds and loss severities and were, therefore, classified within Level 3 of the valuation hierarchy. Additionally, during the years ended December 31, 2016 and 2015 there were fair value adjustments on existing loans held for sale of $ 2 million and $ 1 million, respectively. The fair value adjustments were also based on appraisals of the underlying collateral . The Bancorp recognized an immaterial amount of net gains on the sale of certain commercial loans held for sale during th e year ended December 31, 2016 and $ 5 million in gains on the sale of certain commercial loans held for sale during the year ended December 31, 2015 . The Accounting department determines the procedures for the valuation of commercial loans hel d for sale using appraised value which may include a comparison to recently executed transactions of similar type loans. A monthly review of the portfolio is performed for reasonableness. Qua rterly, appraisals approaching a year old are updated and the Rea l Estate Valuation group, which reports to the Bancorp’s Chief Risk Officer, in conjunction with the Commercial Line o f Business reviews the third party appraisals for reasonableness. Additionally, the Commercial Line of Business Finance department, which reports to the Bancorp’s Chief Financial Officer, in conjunction with the Accounting department review s all loan appraisal values, carry values and vintages. The Treasury department, which reports to the Bancorp’s Chief Financial Officer, is responsible fo r the estimate of fair value adjustments when a discounted future cash flow valuation technique is employed. Residential mortgage loans held for sale During the year ended December 31, 2016 , the Bancorp did not transfer any residential mortgage loan s from the portfolio to loans held for sale. During the year ended December 31, 2015 , the Bancorp transferred $ 233 million of residential mortgage loans from the portfolio to loans held for sale that upon transfer were measured at the lower of cost or f air value using significant unobservable inputs. Fair values were estimated based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. These loans had $ 2 million of fair value adjustments during the year en ded December 31, 2015 . The Secondary Marketing department, which reports to the Bancorp’s Head of the Consumer Bank, in conjunction with the Consumer Credit Risk department, which reports to the Bancorp’s Chief Risk Officer, is responsible for determining the valuation methodology for residential mortgage loans held for investment. The Secondary Marketing department reviews loss severity assumptions quarterly to determine if adjustments are necessary based on decreases in observ able housing market data. This group also reviews trades in comparable benchmark securities and adjusts the values of loans as necessary. Consumer Credit Risk is responsible for the credit component of the fair value which is based on internally developed loss rate models that take into account historical loss rates and loss severities based on underlying collateral values. Commercial loans held for investment During the years ended December 31, 2016 and 2015 , the Bancorp recorded nonrecurring impairment adjustments to certain commercial and industrial l oans, commercial mortgage loans, commercial construction loans and commercial leases held for investment. Larger commercial loans included within aggregate borrower relationship balances exceedi ng $1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp considers the current value of collateral, credit quality of any guarantees, the guarantor’s liquidity and willingness to coopera te, the loan structure and other factors when evaluating whether an individual loan is impaired. When the loan is collateral dependent, the fair value of the loan is generally based on the fair value of the underlying collateral supporting the loan and the refore these loans are classified within Level 3 of the valuation hierarchy. In cases where the carrying value exceeds the fair value, an impairment loss is recognized. The fair values and recognized impairment losses are reflected in the previous table s . Commercial Credit Risk, which reports to the Bancorp’s Chief Risk Officer, is responsible for preparing and reviewing the fair value estimates for commercial loans held for investment. Residential mortgage loans During the year ended December 31, 2015 , the Bancorp transferred approximately $ 55 million of restructured residential mortgage loans from held for sale to the portfolio as the Bancorp no longer had the intent to sell the loans. Upon transfer, the Bancorp recognized a nonrecurring fair value adj ustment of $ 1 million on these loans, which had previously been transferred to held for sale in the fourth quarter of 2014. MSRs Mortgage interest rates increased during both the years ended December 31, 2016 and 2015 and the Bancorp recognized a recovery of temporary impairment in certain classes of the MSR portfolio and the carrying value was adjusted to the fair value. MSRs do not trade in an active, open market with readily observable prices. While sales of MSRs do occur, the precise terms and conditions typically are not readily available. Accordingly, the Bancorp estimates the fair value of MSRs using internal OAS models with certain unobservable inputs, primarily prepayment speed assumptions, OAS and weighted-average lives, resulting in a cla ssification within Level 3 of the valuation hierarchy. Refer to Note 12 for further information on the assumptions used in the valuation of the Bancorp’s MSRs. The Secondary Marketing department and Treasury department are responsible for determining the valuation methodology for MSRs. Representatives from Secondary Marketing, Treasury, Accounting and Risk Management are responsible for reviewing key assumptions used in the internal OAS model. Two external valuations of the MSR portfolio are obtained f rom third parties that use valuation models in order to assess the reasonableness of the internal OAS model. Additionally, the Bancorp participates in peer surveys that provide additional confirmation of the reasonableness of key assumptions utilized in th e MSR valuation process and the resulting MSR prices. OREO During the years ended December 31, 2016 and 2015 , the Bancorp recorded nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO and measured at the lower of carrying amount or fair value. These nonrecurring losses were primarily due to declines in real estate values of the properties recorded in OREO. For the years ended December 31, 2016 and 20 |
Regulatory Capital Requirements
Regulatory Capital Requirements and Capital Ratios | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Capital Requirements and Capital Ratios | |
Regulatory Capital Requirements and Capital Ratios | 28. REGULATORY CAPITAL REQUIREMENTS AND CAPIT AL RATIOS The Board of Governors of the Federal Reserve System issued capital adequacy guidelines pursuant to which it assesses the adequacy of capital in examining and supervising a BHC and in analyzing applications to it under the BHCA of 1956, as amended. These guidelines include quantitative measures that assign risk weightings to assets and off-balance sheet items, as well as define and set minimum regulatory capital requirements . The regulatory capital requirements were revised by the Basel III Final Rule whic h was effective for the Bancorp on January 1, 2015, subject to phase-in periods for certain of its components and other provisions. It established quantitative measures that assign risk weightings to assets and off-balance sheet items and also defined and set minimum regulatory capital requirements. The minimum capital ratios established under the Basel III Final Rule are Common equity Tier 1 capital of at least 4.5% (CET1 ratio), Tier I capital (core capital) of at least 6% of risk-weighted assets (Tier I risk-based capital ratio), Total regulatory capital (Tier I plus Tier II capital) of at least 8% of risk-weighted assets (Total risk-based capital ratio) and Tier I capital of at least 4% of adjusted quarterly average assets (Tier I leverage ratio). Failur e to meet the minimum capital requirements can initiate certain actions by regulators that could have a direct material effect on the Consolidated Financial Statements of the Bancorp. Additionally, when fully phased-in in 2019, the Basel III Final Rule will include a capital conservation buffer requirement of 2.5% in addition to the minimum capital requirements of the CET1, Tier I capital and Total risk-based capital ratios in order to avoid limitations on capital distributions and discretionary bonus payments to executive officers. The Basel III Final Rule provided for certain BHCs, including the Bancorp, to opt out of including AOCI in regulatory capital and also retained the treatment of residential mortgage exposures consistent with the prior Basel I capit al rules. Fifth Third made a one-time permanent election to not include AOCI in regulatory capital in the March 31, 2015 FFIEC 031 for its banking subsidiary and FR Y-9C filing for the Bancorp . The Basel III Final Rule phases out the inclusion of certain T ruPS as a component of Tier I capital. Under these provisions, these TruPS would qualify as a component of Tier II capital. At December 31, 2016 , the Bancorp’s TruPS no longer qualified for Tier I capital , compared to $ 13 million of TruPS, or 1 bp of risk-weigh ted assets , which qualified as Tier I capital at December 31, 2015 . The Bancorp’s Tier II capital consists principally of term subordinated debt and, subject to limitations, allowances for credit losses. The Bancorp’s assets and credit equivalent amoun ts of off-balance sheet items are assigned to one of several broad risk categories according to the Standardized Approach for risk-weighting assets as defined in the Basel III Final Rule. The aggregate dollar value of the amount of each category is multipl ied by the associated risk weighting. The resulting weighted values from each of the risk categories in sum is the total risk-weighted assets. Quarterly average assets are a component of the Tier I leverage ratio and for this purpose do not include goodwil l and any other intangible assets and other investments that the FRB determines should be deducted from Tier I capital. The Board of Governors of the Federal Reserve System issued capital adequacy guidelines for banking subsidiaries substantially similar to those adopted for BHCs, as described previously. In addition, the U.S. banking agencies have issued substantially similar regulations to implement the system of prompt corrective action established by Section 38 of the FDIA. Under the regulations, a ba nk generally shall be deemed to be well-capitalized if it has a CET1 ratio of 6.5% or more, a Tier I risk-based capital ratio of 8% or more, a Total risk-based capital ratio of 10% or more, a Tier I leverage ratio of 5% or more and is not subject to any wr itten capital order or directive. If an institution becomes undercapitalized, it would become subject to significant additional oversight, regulations and requirements as mandated by the FDIA. The Bancorp and its banking subsidiary, Fifth Thi rd Bank, had CET1 capital, Tier I risk-based capital, Total risk-based capital and Tier I leverage ratios above the well-capitalized levels at December 31, 2016 and 2015 . To continue to qualify for financial holding company status pursuant to the Gramm-Leach-Blil ey Act of 1999, the Bancorp’s banking subsidiary must, among other things, maintain “well-capitalized” capital ratios. In addition, the Bancorp exceeded the “capital conservation buffer” ratio for all periods presented. The following table presents capital and risk-based capital and leverage ratios for the Bancorp and its banking subsidiary at December 31: 2016 2015 ($ in millions) Amount Ratio Amount Ratio (a) CET1 capital (to risk-weighted assets): Fifth Third Bancorp $ 12,426 10.39 % $ 11,917 9.82 % Fifth Third Bank 14,015 11.92 14,216 11.92 Tier I risk-based capital (to risk-weighted assets): Fifth Third Bancorp 13,756 11.50 13,260 10.93 Fifth Third Bank 14,015 11.92 14,216 11.92 Total risk-based capital (to risk-weighted assets): Fifth Third Bancorp 17,972 15.02 17,134 14.13 Fifth Third Bank 16,175 13.76 15,642 13.12 Tier I leverage (to quarterly average assets): Fifth Third Bancorp 13,756 9.90 13,260 9.54 Fifth Third Bank 14,015 10.30 14,216 10.43 (a) Ratios not restated for the adoption of the amended guidance of ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” For further information, r efer to Note 1 . |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2016 | |
Parent Company Financial Statements | |
Parent Company Financial Statements | 29. PARENT COMPANY FINANCIAL STATEMENTS Condensed Statements of Income (Parent Company Only) For the years ended December 31 ($ in millions) 2016 2015 2014 Income Dividends from subsidiaries: Consolidated nonbank subsidiaries (a) $ 1,886 1,040 1,094 Interest on loans to subsidiaries 18 15 14 Total income 1,904 1,055 1,108 Expenses Interest 171 178 163 Other 18 22 17 Total expenses 189 200 180 Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries 1,715 855 928 Applicable income tax benefit 63 69 62 Income Before Change in Undistributed Earnings of Subsidiaries 1,778 924 990 Change in undistributed earnings (214) 788 491 Net Income $ 1,564 1,712 1,481 Other Comprehensive Income - - - Comprehensive Income Attributable to Bancorp $ 1,564 1,712 1,481 (a) The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $1.9 billion , $1.0 billion and $1.1 billion for the years ended December 31, 2016 , 2015 and 2014 , respectively . Condensed Balance Sheets (Parent Company Only) As of December 31 ($ in millions) 2016 2015 Assets Cash $ 130 128 Short-term investments 3,074 3,728 Loans to subsidiaries: Nonbank subsidiaries 969 982 Total loans to subsidiaries 969 982 Investment in subsidiaries: Nonbank subsidiaries 17,588 17,831 Total investment in subsidiaries 17,588 17,831 Goodwill 80 80 Other assets 366 414 (a) Total Assets $ 22,207 23,163 (a) Liabilities Other short-term borrowings $ 344 404 Accrued expenses and other liabilities 461 433 Long-term debt (external) 5,170 6,456 (a) Total Liabilities $ 5,975 7,293 (a) Shareholders' Equity Common stock $ 2,051 2,051 Preferred stock 1,331 1,331 Capital surplus 2,756 2,666 Retained earnings 13,441 12,358 Accumulated other comprehensive income 59 197 Treasury stock (3,433) (2,764) Noncontrolling interests 27 31 Total Equity 16,232 15,870 Total Liabilities and Equity $ 22,207 23,163 (a) (a) Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Condensed Balance Sheet was adjusted to reflect the reclassification of $ 17 of debt issuance costs from other assets to long-term debt. For further information refer to Note 1 . Condensed Statements of Cash Flows (Parent Company Only) For the years ended December 31 ($ in millions) 2016 2015 2014 Operating Activities Net income $ 1,564 1,712 1,481 Adjustments to reconcile net income to net cash provided by operating activities: Benefit from deferred income taxes - (4) (1) Net change in undistributed earnings 214 (788) (491) Net change in: Other assets 14 (18) 9 Accrued expenses and other liabilities (35) 31 (41) Net Cash Provided by Operating Activities 1,757 933 957 Investing Activities Net change in: Short-term investments 654 (539) (684) Loans to subsidiaries 13 2 (10) Net Cash Provided by (Used in) Investing Activities 667 (537) (694) Financing Activities Net change in other short-term borrowings (60) (22) 115 Proceeds from issuance of long-term debt - 1,099 499 Repayment of long-term debt (1,250) - - Dividends paid on common stock (402) (422) (423) Dividends paid on preferred stock (52) (75) (67) Issuance of preferred stock - - 297 Repurchase of treasury stock and related forward contract (661) (850) (654) Other, net 3 2 (30) Net Cash Used in Financing Activities (2,422) (268) (263) Increase in Cash 2 128 - Cash at Beginning of Period 128 - - Cash at End of Period $ 130 128 - |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2016 | |
Business Segments | |
Business Segments | 30. BUSIN ESS SEGMENTS The Bancorp reports on four business segments: Commercial Banking, Branch Banking, Consumer Lending and Wealth and Asset Management (formerly Investment Advisors) . Results of the Bancorp’s business segments are presented based on its management structure and management accounting practices. The structure and accounting practices are specific to the Bancorp; therefore, the financial results of the Bancorp’s business segments are not necessarily comparable with similar information for other financial institu tions. The Bancorp refines its methodologies from time to time as management ’s accounting practices and businesses change. The Bancorp manages interest rate risk centrally at the corporate level . B y employing a n FTP methodology, the business segments are insulated from most benchmark interest rate volatility, enabling them to focus on serving customers through the origination of loans and acceptance of deposits . The FTP methodology assigns charge rates and credit rates to classes of assets and liabilities, respecti vely, based on the estimated amount and timing of cash flows for each transaction . Assigning the FTP rate based on matching the duration of cash flows allocates interest income and interest expense to each business segment so its resulting net interest income is insulated from future changes in benchmark interest rates. The Bancorp’s FTP methodology also allocates the contribution to net interest income of the asset-generating and deposit-providing businesses on a duration-adjusted basis to better attribute the driver of the performance. As the asset and liability durations are not perfectly matched, the residual impact of the FTP methodology is captured in General Corporate and Other. The charge and credit rates are determined using the FTP rate curve, which is based on an estimate of Fifth Third’s marginal borrowing cost in the wholesal e funding markets. The FTP curve is constructed using the U.S. swap curve, brokered CD pricing and unsecured debt pricing. The Bancorp adjusts the FTP charge and credit rates as dictated by changes in interest rates for various interest-earning assets and interest-bearing liabi lities and by the review of behavioural assumptions, such as prepayment rates on interest-earning assets and the estimated durations for indeterminate-lived deposits. Key assumptions, including t he credit rate s provided for deposit accounts, are reviewed annually . Credit rates for deposit products and charge rates for loan products may be reset more frequently in response to changes in market conditions. The credit rates for several deposit prod ucts were reset January 1, 2016 to reflect the current market rates and updated market assumptions. These rates were generally higher than those in place during 2015 , thus net interest income f or deposit -providing business segments was positively impacted during 2016 . FTP charge rates on assets were affected by the prevailing level of interest rates and by the duration and repricing characteristics of the portfolio. As overall market rates in creased, the FTP charge increased for asset-generating business segments during 2016 . During the first quarter of 2016 , the Bancorp refined its methodology for allocating provision for loan and lease losses expense to the business segments to include charges or benefits associated with changes in criticized commercia l loan levels in addition to actual net charge-offs experienced by the loans and leases owned by each business segment. The results of operations and financial position for the years ended December 31, 2015 and 2014 were adjusted to reflect this cha nge. Provision for loan and lease losses expense attributable to loan and lease growth and changes in ALLL factors are captured in General Corporate and Other. The financial results of the business segments include allocations for shared serv ices and headq uarters expenses. Additionally, the business segments form synergies by taking advantage of cross-sell opportunities and when funding operations by accessing the capital markets as a collective unit. The results of operations and financial position for the years ended December 31, 2015 and 2014 were adjusted to reflect changes in internal expense allocation methodologies. The following is a description of each of the Bancorp’s business s egments and the products and services they provide to their respective client bases. Commercial Banking offers credit intermediation, cash management and financial services to large and middle-market businesses and government and professional customers. In additio n to the traditional lending and depository offerings, Commercial Banking products and services include global cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate fin ance, public finance, commercial leasing and syndicated finance. Branch Banking provides a full range of deposit and loan and lease products to individuals an d small businesses through 1,191 full-service b anking c enters. Branch Banking offe rs depository and loan products, such as checking and savings accounts, home equity loans and lines of credit, credit cards and loans for automobiles and other personal financing needs, as well as products designed to meet the specific needs of small busin esses, including cash management services. Consumer Lending includes the Bancorp’s residential mortgage, home equity, automobile and other indirect lending activities. Direct lending activities include the origination, retent ion and servicing of residenti al mortgage and home equity loans or lines of credit, sales and securitizations of those loans, pools of loans or lines of credit, and all associated hedging activities. Indirect lending activities include extending loans to consumers through correspondent lenders and automobile dealers. Wealth and Asset Management provides a full range of investment alternatives for individuals, companies and not-for-profit organizations. In the second quarter of 2016 , the Investment Advisors segment name was changed t o Wealth and Asset Management to better reflect the services provided by the business segment. Wealth and Asset Management is made up of four main businesses: FTS, an indirect wholly-owned subsidiary of the Bancorp; ClearArc Capital, Inc., an indirect whol ly-owned subsidiary of the Bancorp; Fifth Third Private Bank; and Fifth Third Institutional Services. FTS offers full service retail brokerage services to individu al clients and broker- dealer services to the institutional marketplace. ClearArc Capital, Inc . provides asset management services. Fifth Third Private Bank offers holistic strategies to affluent clients in wealth planning, investing, insurance and wealth protection. Fifth Third Institutional Services provides advisory services for institutional cl ients including states and municipalities. The following tables present the results of operations and assets by business segment for the years ended December 31: Wealth General Commercial Branch Consumer and Asset Corporate 2016 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,814 1,669 248 168 (284) - 3,615 Provision for loan and lease losses 76 138 44 1 84 - 343 Net interest income after provision for loan and lease losses 1,738 1,531 204 167 (368) - 3,272 Total noninterest income 907 (c) 755 (b) 303 399 463 (131) (a) 2,696 Total noninterest expense 1,426 1,621 475 422 90 (131) 3,903 Income before income taxes 1,219 665 32 144 5 - 2,065 Applicable income tax expense 224 234 12 51 (16) - 505 Net income 995 431 20 93 21 - 1,560 Less: Net income attributable to noncontrolling interests - - - - (4) - (4) Net income attributable to Bancorp 995 431 20 93 25 - 1,564 Dividends on preferred stock - - - - 75 - 75 Net income available to common shareholders $ 995 431 20 93 (50) - 1,489 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 58,092 55,940 22,041 9,487 (3,383) (d) - 142,177 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Consolidated Statements of Income . Includes impairment charge s of $ 32 for branches and land. For more information refer to Note 7 and Note 27. Includes impairment charge s of $ 20 for operating lease equipment. For more information refer to Note 8 and Note 27. Includes bank premises and equipment of $ 39 classified as held for sale. For more information, refer to Note 7. Wealth General Commercial Branch Consumer and Asset Corporate 2015 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,625 1,555 249 128 (24) - 3,533 Provision for loan and lease losses 298 151 44 3 (100) - 396 Net interest income after provision for loan and lease losses 1,327 1,404 205 125 76 - 3,137 Total noninterest income 853 (c) 652 (b) 407 418 822 (149) (a) 3,003 Total noninterest expense 1,369 1,598 440 455 62 (149) 3,775 Income before income taxes 811 458 172 88 836 - 2,365 Applicable income tax expense 93 161 61 30 314 - 659 Net income 718 297 111 58 522 - 1,706 Less: Net income attributable to noncontrolling interests - - - - (6) - (6) Net income attributable to Bancorp 718 297 111 58 528 - 1,712 Dividends on preferred stock - - - - 75 - 75 Net income available to common shareholders $ 718 297 111 58 453 - 1,637 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets (e) $ 58,105 53,609 22,656 9,939 (3,261) (d) - 141,048 Reve nue sharing agreements between wealth and asset management and b ranch b anking are eliminated in the Consolidated Statements of Income. Includes impairment charges of $ 109 for branches and land. For more information refer to Note 7 and Note 27. Includes impairment charges of $ 36 for operating lease equipment. For more information, refer to Note 8 and Not e 27. Includes bank premises and equipment of $ 81 classified as held for sale. For more information, refer to Note 7. Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $ 34 of debt issuance costs from other assets to long-term debt. For further information, refer to Note 1. Wealth General Commercial Branch Consumer and Asset Corporate 2014 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,627 1,573 258 121 - - 3,579 Provision for loan and lease losses 141 171 156 1 (154) - 315 Net interest income after provision for loan and lease losses 1,486 1,402 102 120 154 - 3,264 Total noninterest income 880 726 (b) 350 410 253 (146) (a) 2,473 Total noninterest expense 1,281 1,587 558 443 (14) (146) 3,709 Income (loss) before income taxes 1,085 541 (106) 87 421 - 2,028 Applicable income tax expense (benefit) 201 191 (37) 29 161 - 545 Net income (loss) 884 350 (69) 58 260 - 1,483 Less: Net income attributable to noncontrolling interests - - - - 2 - 2 Net income (loss) attributable to Bancorp 884 350 (69) 58 258 - 1,481 Dividends on preferred stock - - - - 67 - 67 Net income (loss) available to common shareholders $ 884 350 (69) 58 191 - 1,414 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets (d) $ 56,400 51,488 22,567 10,445 (2,230) (c) - 138,670 Revenue sharing agreements between wealth and asset management and b ranch b anking are eliminated in the Consolidated Statements of Income. Includes impairment charges of $ 20 for branches and land. For more information refer to Note 7 and Note 27. Includes bank premises and equipment of $ 26 classified as held for sale. For more information, refer to Note 7 . Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2014 Consolidated Balance Sheet was adjusted t o reflect the reclassification of $ 3 6 of debt issuance costs from other assets to long-term debt. For further information, refer to Note 1. |
Summary of Significant Accoun39
Summary of Significant Accounting and Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting and Reporting Policies | |
Nature of Operations | Nature of Operations Fifth Third Bancorp, an Ohio corporation, conducts its principal lending, deposit gathering, transaction processing and service advisory activities through its banking and non-banking subsidiaries from banking centers located throughout the Midwestern and Southeastern regions of the United States. |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements include the accounts of the Bancorp and its majority-owned subsidiaries and VIEs in which the Bancorp has been determined to be the primary beneficiary. Other entities, including certain joint ventures, in which the Bancorp has the ability to exercise significant influence over operating and financial policies of the investee, but upon which the Bancorp does not possess control, are accounted for by the e quity method of accounting and not consolidated. The investments in those entities in which the Bancorp does not have the ability to exercise significant influence are generally carried at the lower of cost or fair value. Intercompany transactions and bala nces among consolidated entities have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Due from Banks | Cash and Due From Banks Cash and due from banks consist of currency and coin, cash items in the process of collection and due from banks. Currency and coin includes both U.S. and f oreign currency owned and held at Fifth Third offices and that is in-transit to the FRB. Cash items in the process of collection include checks and drafts that are drawn on another depository institution or the FRB that are payable immediately upon present ation in the U.S. Balances due from banks include noninterest-bearing balances that are funds on deposit at other depository institutions or the FRB. |
Securities | Securities Securities are classified as held-to-maturity, available-for-sale or trading on the date of pu rchase. Only those securities which management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. Securities are classified as available-for-sale when, in management’s judgment, they may be sol d in response to, or in anticipation of, changes in market conditions. Securities are classified as trading when bought and held principally for the purpose of selling them in the near term. Available-for-sale securities are reported at fair value with unr ealized gains and losses, net of related deferred income taxes, included in OCI. Trading securities are reported at fair value with unrealized gains and losses included in noninterest income. The fair value of a security is determined based on quoted marke t prices. If quoted market prices are not available, fair value is determined based on quoted prices of similar instruments or DCF models that incorporate market inputs and assumptions including discount rates, prepayment speeds and loss rates. Realized se curities gains or losses are reported within noninterest income in the Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. Available-for-sale and held-to-maturity securities with unrealized losses are reviewed quarterly for possible OTTI. For debt securities, if the Bancorp intends to sell the debt security or will more likely than not be required to sell the debt security before recovery of the entire amortized cost basis, then an OTTI has occurred . However, even if the Bancorp does not intend to sell the debt security and will not likely be required to sell the debt security before recovery of its entire amortized cost basis, the Bancorp must evaluate expected cash flows to be received and determin e if a credit loss has occurred. In the event of a credit loss, the credit component of the impairment is recognized within noninterest income and the non-credit component is recognized through OCI. For equity securities, the Bancorp’s management evaluates the securities in an unrealized loss position in the available-for-sale portfolio for OTTI on the basis of the duration of the decline in value of the security and severity of that decline as well as the Bancorp’s intent and ability to hold these securiti es for a period of time sufficient to allow for any anticipated recovery in the market value. If it is determined that the impairment on an equity security is other-than-temporary, an impairment loss equal to the difference between the amortized cost of th e security and its fair value is recognized within noninterest income. |
Basis of Presentation for Portfolio Loans and Leases | Basis of Accounting Portfolio loans and leases are generally reported at the principal amount outstanding, net of unearned income, deferred direct loan origination fees and costs and any direct principal charge-offs. Direct loan origination fees and costs are deferred and the net amount is amortized over the estimated life of the related loans as a yield adjustment. Interest income is recognized based on the principal balance outstanding computed using the effective interest method. Loans acquired by the Bancorp through a purchase business combination are recorded at fair value as of the acquisition date. The Bancorp does not carry over the acquired compan y’s ALLL, nor does the Bancorp add to its existing ALLL as part of purchase accounting. Purchased loans are evaluated for evidence of credit deterioration at acquisition and recorded at their initial fair value. For loans acquired with no evidence of credi t deterioration, the fair value discount or premium is amortized over the contractual life of the loan as an adjustment to yield. For loans acquired with evidence of credit deterioration, the Bancorp determines at the acquisition date the excess of the loa n’s contractually required payments over all cash flows expected to be collected as an amount that should not be accreted into interest income (nonaccretable difference). The remaining amount representing the difference in the expected cash flows of acquir ed loans and the initial investment in the acquired loans is accreted into interest income over the remaining life of the loan or pool of loans (accretable yield). Subsequent to the acquisition date, increases in expected cash flows over those expected at the acquisition date are recognized prospectively as interest income over the remaining life of the loan. The present value of any decreases in expected cash flows resulting directly from a change in the contractual interest rate are recognized prospective ly as a reduction of the accretable yield. The present value of any decreases in expected cash flows after the acquisition date as a result of credit deterioration is recognized by recording an ALLL or a direct charge-off. Subsequent to the acquisition dat e, the methods utilized to estimate the required ALLL are similar to originated loans. This method of accounting for loans acquired with deteriorated cr edit quality does not apply to loans carried at fair value, residential mortgage loans held for sale and loans un der revolving credit agreements. The Bancorp’s lease portfolio consists of both direct financing and leveraged leases. Direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, les s unearned income. Interest income on direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Leveraged leases are carried at the aggregate of lease payments (less nonrec ourse debt payments) plus estimated residual value of the leased property, less unearned income. Interest income on leveraged leases is recognized over the term of the lease to achieve a constant rate of return on the outstanding investment in the lease, n et of the related deferred income tax liability, in the years in which the net investment is positive. |
Nonaccrual Loans | Nonaccrual Loans and Leases When a loan is placed on nonaccrual status, the accrual of interest, amortization of loan premium, accretion of loan discount and amortization/accretion of deferred net direct loan origination fees are discontinued and all previously accrued and unpaid interest is charged against income. Commercial loans are placed on nonaccrual status when there is a clear indication th at the borrower’s cash flows may not be sufficient to meet payments as they become due. Such loans are also placed on nonaccrual status when the principal or interest is past due 90 days or more, unless the loan is both well-secured and in the process of c ollection. The Bancorp classifies residential mortgage loans that have principal and interest payments that have become past due 150 days as nonaccrual unless the loan is both well-secured and in the process of collection. Residential mortgage loans may st ay on non accrual status for an extended time as the foreclosure process typically lasts longer than 180 days. Home equity loans and lines of credit are reported on nonaccrual status if principal or interest has been in default for 90 days or more unless th e loan is both well-secured and in the process of collection. Home equity loans and lines of credit that have been in default for 60 days or more are also reported on nonaccrual status if the senior lien has been in default 120 days or more, unless the loa n is both well secured and in the process of collection. Residential mortgage, home equity, automobile and other consumer loans and leases that have been modified in a TDR and subsequently become past due 90 days are placed on nonaccrual status unless the loan is both well-secured and in the process of collection. Commercial and credit card loans that have been modified in a TDR are classified as nonaccrual unless such loans have sustained repayment performance of six months or more and are reasonably assur ed of repayment in accordance with the restructured terms. Well-secured loans are collateralized by perfected security interests in real and/or personal property for which the Bancorp estimates proceeds from the sale would be sufficient to recover the outs tanding principal and accrued interest balance of the loan and pay all costs to sell the collateral. The Bancorp considers a loan in the process of collection if collection efforts or legal action is proceeding and the Bancorp expects to collect funds suff icient to bring the loan current or recover the entire outstanding principal and accrued interest balance. Nonaccrual commercial loans and nonaccrual credit card loans are generally accounted for on the cost recovery method. The Bancorp believes the cost r ecovery method is appropriate for nonaccrual commercial loans and nonaccrual credit card loans because the assessment of collectability of the remaining recorded investment of these loans involves a high degree of subjectivity and uncertainty due to the na ture or absence of underlying collateral. Under the cost recovery method, any payments received are applied to reduce principal. Once the entire recorded investment is collected, additional payments received are treated as recoveries of amounts previously charged-off until recovered in full, and any subsequent payments are treated as interest income. Nonaccrual residential mortgage loans and other nonaccrual consumer loans are generally accounted for on the cash basis method. The Bancorp believes the cash b asis method is appropriate for nonaccrual residential mortgage and other nonaccrual consumer loans because such loans have generally been written down to estimated collateral values and the collectability of the remaining investment involves only an assess ment of the fair value of the underlying collateral, which can be measured more objectively with a lesser degree of uncertainty than assessments of typical commercial loan collateral. Under the cash basis method, interest income is recognized when cash is received, to the extent such income would have been accrued on the loan’s remaining balance at the contractual rate. Nonaccrual loans may be returned to accrual status when all delinquent interest and principal payments become current in accordance with th e loan agreement and are reasonably assured of repayment in accordance with the contractual terms of the loan agreement, or when the loan is both well-secured and in the process of collection. Commercial loans on nonaccrual status, including those modified in a TDR, as well as criticized commercial loans with aggregate borrower relationships exceeding $1 million, are subject to an individual review to identify charge-offs. The Bancorp does not have an established delinquency threshold for partially or fully charging off commercial loans. Residential mortgage loans, home equity loans and lines of credit and credit card loans that have principal and interest payments that have become past due 180 days are assessed for a charge-off to the ALLL, unless such loan s are both well-secured and in the process of collection. Home equity loans and lines of credit are also assessed for charge-off to the ALLL when such loans or lines of credit have become past due 120 days if the senior lien is also 120 days past due, unle ss such loans are both well-secured and in the process of collection. Automobile and other consumer loans and leases that have principal and interest payments that have become past due 120 days are assessed for a charge-off to the ALLL, unless such loans a re both well-secured and in the process of collection. |
Restructured Loans | Restructured Loans and Leases A loan is accounted for as a TDR if the Bancorp, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. A TDR typically involves a modification of terms such as a reduction of the stated interest rate or remaining principal amount of the loan, a reduction of accrued interest or an extension of the maturity date at a stated in terest rate lower than the current market rate for a new loan with similar risk. In 2012, the OCC, a national bank regulatory agency, issued interpretive guidance that requires non-reaffirmed loans included in Chapter 7 bankruptcy filings to be accounted f or as nonperforming TDRs and collateral dependent loans regardless of their payment history and capacity to pay in the future. The Bancorp’s banking subsidiary is a state chartered bank which therefore is not subject to guidance of the OCC. The Bancorp doe s not consider the bankruptcy court’s discharge of the borrower’s debt a concession when the discharged debt is not reaffirmed and as such, these loans are classified as TDRs only if one or more of the previously mentioned concessions are granted. The Banc orp measures the impairment loss of a TDR based on the difference between the original loan’s carrying amount and the present value of expected future cash flows discounted at the original, effective yield of the loan. Residential mortgage loans, home equi ty loans, automobile loans and other consumer loans modified as part of a TDR are maintained on accrual status, provided there is reasonable assurance of repayment and of performance according to the modified terms based upon a current, well-documented cre dit evaluation. Commercial loans and credit card loans modified as part of a TDR are maintained on accrual status provided there is a sustained payment history of six months or more prior to the modification in accordance with the modified terms and collec tability is reasonably assured for all remaining contractual pa yments under the modified terms . TDRs of commercial loans and credit cards that do not have a sustained payment history of six months or more in accordance with their modified terms remain on n onaccrual status until a six month payment history is sustained. In certain cases, commercial TDRs on nonaccrual status may be accounted for using the cash basis method for income recognition, provided that full repayment of principal under the modified te rms of the loan is reasonably assured. |
Impaired Loans | Impaired Loans and Leases A loan is considered to be impaired when, based on current information and events, it is probable that the Bancorp will be unable to collect all amounts due (including both principal and int erest) according to the contractual terms of the loan agreement. Impaired loans generally consist of nonaccrual loans and leases, loans modified in a TDR and loans over $ 1 million that are currently on accrual status and not yet modified in a TDR, but for which the Bancorp has determined that it is probable that it will grant a payment concession in the near term due to the borrower’s financial difficulties. For loans modified in a TDR, the contractual terms of the loan agreement refer to the terms specifie d in the original loan agreement. A loan restructured in a TDR is no longer considered impaired in years after the restructuring if the restructuring agreement specifies a rate equal to or greater than the rate the Bancorp was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan is not impaired based on the terms specified by the restructuring agreement. Refer to the ALLL section for discussion regarding the Bancorp’s methodology for identifying impaired loans and determination of the need for a loss accrual. |
Loans Held for Sale | Loans Held for Sale Loans held for sale primarily represent conforming fixed-rate residential mortgage loans originated or acquired with the intent to sell in the secondary market and jumbo residential mortgage loans, commercial loans, other residential mortgage loans and other consumer loans that management has the intent to sell. Loans held for sale may be carried at the lower of cost or fair value, or carried at fair value where the Bancorp has electe d the fair value option of accounting under U.S. GAAP. The Bancorp has elected to measure certain residential mortgage loans originated as held for sale under the fair value option. For loans in which the Bancorp has not elected the fair value option, the lower of cost or fair value is determined at the individual loan level. The fair value of residential mortgage loans held for sale for which the fair value election has been made is estimated based upon mortgage-backed securities prices and spreads to thos e prices or, for certain ARM loans, DCF models that may incorporate the anticipated portfolio composition, credit spreads of asset-backed securities with similar collateral and market conditions. The anticipated portfolio composition includes the effects o f interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. These fair value marks are recorded as a component of noninterest income in mortgage banking net revenue. The Bancorp generally has commitments to sell residential mortgage loans held for sale in the secondary market. Gains or losses on sales are recognized in mortgage banking net revenue. Management’s intent to sell residential mortgage loans classif ied as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be reclassified to loans held for investment a nd, thereafter, reported within the Bancorp’s residential mortgage class of portfolio loans and leases. In such cases, the residential mortgage loans will continue to be measured at fair value, which is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Loans held for sale are placed on nonaccrual status consistent with the Bancorp’s nonaccrual policy for portfolio loans and leases. |
Other Real Estate Owned | Other Real Estate Owned OREO, which is included in other assets, re presents property acquired through foreclosure or other proceedings and is carried at the lower of cost or fair value, less costs to sell. All OREO property is periodically evaluated for impairment and decreases in carrying value are recognized as reductio ns in other noninterest income in the Consolidated Statements of Income. For government-guaranteed mortgage loans, upon foreclosure, a separate other receivable is recognized if certain conditions are met for the amount of the loan balance (principal and i nterest) expected to be recovered from the guarantor. This receivable is also included in other assets, separate from OREO, in the Consolidated Balance Sheets. |
Allowance for Loans and Leases | ALLL The Bancorp disaggregates its portfolio loans and leases into portfolio segments for purpo ses of determining the ALLL. The Bancorp’s portfolio segments include commercial, residential mortgage and consumer. The Bancorp further disaggregates its portfolio segments into classes for purposes of monitoring and assessing credit quality based on cert ain risk characteristics. Classes within the commercial portfolio segment include commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leasing. The residential mortgage portfolio segment is also considered a class. Classes within the consumer portfolio segment include home equity, automobile, credit card and other consumer loans and leases. For an analysis of the Bancorp’s ALLL by portfolio segment and credit quality inf ormation by class, refer to Note 6. The Bancorp maintains the ALLL to absorb probable loan and lease losses inherent in its portfolio segments. The ALLL is maintained at a level the Bancorp considers to be adequate and is based on ongoing quarterly ass essments and evaluations of the collectability and historical loss experience of loans and leases. Credit losses are charged and recoveries are credited to the ALLL. Provisions for loan and lease losses are based on the Bancorp’s review of the historical c redit loss experience and such factors that, in management’s judgment, deserve consideration under existing economic conditions in estimating probable credit losses. The Bancorp’s strategy for credit risk management includes a combination of conservative e xposure limits significantly below legal lending limits and conservative underwriting, documentation and collections standards. The strategy also emphasizes diversification on a geographic, industry and customer level, regular credit examinations and quart erly management reviews of large credit exposures and loans experiencing deterioration of credit quality. The Bancorp’s methodology for determining the ALLL is based on historical loss rates, current credit grades, specific allocation on loans modified in a TDR and impaired commercial credits above specified thresholds and other qualitative adjustments. Allowances on individual commercial loans, TDRs and historical loss rates are reviewed quarterly and adjusted as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off experience. An unallocated allowance is maintained to recognize the imprecision in estimating and measuring losses when evaluating allowances for pools of loans. Larger commercial loans included w ithin aggregate borrower relationship balances exceeding $ 1 million that exhibit probable or observed credit weaknesses, as well as loans that have been modified in a TDR, are subject to individual review for impairment. The Bancorp considers the current v alue of collateral, credit quality of any guarantees, the guarantor’s liquidity and willingness to cooperate, the loan structure and other factors when evaluating whether an individual loan is impaired. Other factors may include the industry and geographic region of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower and the Bancorp’s evaluation of the borrower’s management. When individual loans are impaired, allowances are determined based on management’s est imate of the borrower’s ability to repay the loan given the availability of collateral and other sources of cash flow, as well as an evaluation of legal options available to the Bancorp. Allowances for impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, fair value of the underlying collateral or readily observable secondary market values. The Bancorp evaluates the collectability of both principal and interest when assessing t he need for a loss accrual. Historical credit loss rates are applied to commercial loans that are not impaired or are impaired, but smaller than the established threshold of $ 1 million and thus not subject to specific allowance allocations. The loss rates are derived from migration analyses for several portfolio stratifications, which track the historical net charge-off experience sustained on loans according to their internal risk grade. The risk grading system utilized for allowance analysis purposes enco mpasses ten categories. During 2016, the Bancorp refined its estimation techniques for the ALLL to introduce individual loss rate mig r ation analyses for several commercial loan portfolio stratifications as contrasted to the single composite loss rate mig r ation analysis for the entire commercial loan portfolio which was used in prior periods. These refinements did not substantively change any material aspect of the Bancorp’s overall approach in the determination of the ALLL and there have been no material c hanges in assumptions as compared to prior periods that impacted the determination of the current period allowance. Homogenous loans and leases in the residential mortgage and consumer portfolio segments are not individually risk graded. Rather, standard c redit scoring systems and delinquency monitoring are used to assess credit risks and allowances are established based on the expected net charge-offs. Loss rates are based on the trailing twelve month net charge-off history by loan category. Historical los s rates may be adjusted for certain prescriptive and qualitative factors that, in management’s judgment, are necessary to reflect losses inherent in the portfolio. The prescriptive loss rate factors include adjustments for delinquency trends, LTV trends an d refreshed FICO score trends. The Bancorp also considers qualitative factors in determining the ALLL. These include adjustments for changes in policies or procedures in underwriting, monitoring or collections, economic conditions, portfolio mix, lending a nd risk management personnel, results of internal audit and quality control reviews, collateral values and geographic concentrations. The Bancorp considers home price index trends when determining the collateral value qualitative factor. The Bancorp’s pri mary market areas for lending are the Midw estern and Southeastern regions of the U .S. When evaluating the adequacy of allowances, consideration is given to these regional geographic concentrations and the closely associated effect changing economic conditi ons have on the Bancorp’s customers. In the current year, the Bancorp has not substantively changed any material aspect to its overall approach to determining its ALLL for any of its portfolio segments. There have been no material changes in criteria or es timation techniques as compared to prior periods that impacted the determination of the current period ALLL for any of the Bancorp’s portfolio segments. |
Reserve for Unfunded Commitments | Reserve for Unfunded Commitments The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in other liabilities in the Consolidated Balance Sheets. The determination of the adequacy of the reserve is based upon an eva luation of the unfunded credit facilities, including an assessment of historical commitment utilization experience, credit risk grading and historical loss rates based on credit grade migration. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the Bancorp’s ALLL, as previously discussed. Net adjustments to the reserve for unfunded commitments are included in other noninterest expense in the Consolidated Statements of Income. |
Loan Sales and Securitizations | Loan Sales a nd Securitizations The Bancorp periodically sells loans through either securitizations or individual loan sales in accordance with its investment policies. The sold loans are removed from the balance sheet and a net gain or loss is recognized in the Consol idated Financial Statements at the time of sale. The Bancorp typically isolates the loans through the use of a VIE and thus is required to assess whether the entity holding the sold or securitized loans is a VIE and whether the Bancorp is the primary benef iciary and therefore consolidator of that VIE. If the Bancorp holds the power to direct activities most significant to the economic performance of the VIE and has the obligation to absorb losses or right to receive benefits that could potentially be signif icant to the VIE, then the Bancorp will generally be deemed the primary beneficiary of the VIE. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for u nder the equity method of accounting or other accounting standards as appropriate. Refer to Note 11 for further information on consolidated and non-consolidated VIEs. The Bancorp’s loan sales and securitizations are generally structured with servicing r etained. As a result, servicing rights resulting from residential mortgage loan sales are initially recorded at fair value and subsequently amortized in proportion to and over the period of estimated net servicing revenues and are reported as a component o f mortgage banking net revenue in the Consolidated Statements of Income. Servicing rights are assessed for impairment monthly, based on fair value, with temporary impairment recognized through a valuation allowance and other-than-temporary impairment recog nized through a write-off of the servicing asset and related valuation allowance. Key economic assumptions used in measuring any potential impairment of the servicing rights include the prepayment speeds of the underlying loans, the weighted-average life a nd the OAS spread , as applicable. The primary risk of material changes to the value of the servicing rights resides in the potential volatility in the economic assumptions used, particularly the prepayment speeds. The Bancorp monitors risk and adjusts its valuation allowance as necessary to adequately reserve for impairment in the servicing portfolio. For purposes of measuring impairment, the mortgage servicing rights are stratified into classes based on the financial asset type (fixed-rate vs. adjustable-r ate) and interest rates. Fees received for servicing loans owned by investors are based on a percentage of the outstanding monthly principal balance of such loans and are included in noninterest income in the Consolidated Statements of Income as loan payme nts are received. Costs of servicing loans are charged to expense as incurred. |
Reserve For Representation And Warranty Provisions | Reserve for Representation and Warranty Provisions Conforming residential mortgage loans sold to unrelated third parties are generally sold with representation and warranty pro visions. A contractual liability arises only in the event of a breach of these representations and warranties and, in general, only when a loss results from the breach. The Bancorp may be required to repurchase any previously sold loan or indemnify (make w hole) the investor or insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading. The Bancorp establishes a residential mortgage repurchase reserve related to various representations and warranties tha t reflects management’s estimate of losses based on a combination of factors. The Bancorp’s estimation process requires management to make subjective and complex judgments about matters that are inherently uncertain, such as future demand expectations, eco nomic factors and the specific characteristics of the loans subject to repurchase. Such factors incorporate historical investor audit and repurchase demand rates, appeals success rates, historical loss severity and any additional information obtained from the GSEs regarding future mortgage repurchase and file request criteria. At the time of a loan sale, the Bancorp records a representation and warranty reserve at the estimated fair value of the Bancorp’s guarantee and continually updates the reserve during the life of the loan as losses in excess of the reserve become probable and reasonably estimable. The provision for the estimated fair value of the representation and warranty guarantee arising from the loan sales is recorded as an adjustment to the gain on sale, which is included in other noninterest income at the time of sale. Updates to the reserve ar e recorded in other noninterest expense. |
Legal Contingencies | Legal Contingencies The Bancorp and its subsidiaries are parties to numerous claims and lawsuits as well as threa tened or potential actions or claims concerning matters arising from the conduct of its business activities. The outcome of claims or litigation and the timing of ultimate resolution are inherently difficult to predict and significant judgment may be requi red in the determination of both the probability of loss and whether the amount of the loss is reasonably estimable. The Bancorp’s estimates are subjective and are based on the status of legal and regulatory proceedings, the merit of the Bancorp’s defenses and consultation with internal and external legal counsel. An accrual for a potential litigation loss is established when information related to the loss contingency indicates both that a loss is probable and that the amount of loss can be reasonably esti mated. This accrual is included in other liabilities in the Consolidated Balance Sheets and is adjusted from time to time as appropriate to reflect changes in circumstances. Legal expenses are recorded in other noninterest expense in the Consolidated State ments of Income. |
Bank Premises and Equipment | Bank Premises and Equipment and Other Long-Lived Assets Bank premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method based on estimated useful lives of the assets for book purposes, while accelerated depreciation is used for income tax purposes. Amortization of leasehold improvements is computed using the straight-line method over the lives of the related leases o r useful lives of the related assets, whichever is shorter. Whenever events or changes in circumstances dictate, the Bancorp tests its long-lived assets for impairment by determining whether the sum of the estimated undiscounted future cash flows attributa ble to a long-lived asset or asset group is less than the carrying amount of the long-lived asset or asset group through a probability-weighted approach. In the event the carrying amount of the long-lived asset or asset group is not recoverable, an impairm ent loss is measured as the amount by which the carrying amount of the long-lived asset or asset group exceeds its fair value. Maintenance, repairs and minor improvements are charged to noninterest expense in the Conso lidated Statements of Income as incurr ed. |
Derivative Financial Instruments | Derivative Financial Instruments The Bancorp accounts for its derivatives as either assets or liabilities measured at fair value through adjustments to AOCI and/or current earnings, as appropriate. On the date the Bancorp enters into a derivative cont ract, the Bancorp designates the derivative instrument as either a fair value hedge, cash flow hedge or as a free-standing derivative instrument. For a fair value hedge, changes in the fair value of the derivative instrument and changes in the fair value o f the hedged asset or liability attributable to the hedged risk are recorded in current period net income. For a cash flow hedge, changes in the fair value of the derivative instrument, to the extent that it is effective, are recorded in AOCI and subsequen tly reclassified to net income in the same period(s) that the hedged transaction impacts net income. For free-standing derivative instruments, changes in fair values are reported in current period net income. Prior to entering into a hedge transaction, the Bancorp formally documents the relationship between the hedging instrument and the hedged item, as well as the risk management objective and strategy for undertaking the hedge transaction. This process includes linking the derivative instrument designated as a fair value or cash flow hedge to a specific asset or liability on the balance sheet or to specific forecasted transactions and the risk being hedged, along with a formal assessment at both inception of the hedge and on an ongoing basis as to the effe ctiveness of the derivative instrument in offsetting changes in fair values or cash flows of the hedged item. If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued. |
Tax Receivable Agreement Policy [Policy Text Block] | Tax Receivable Agreement s In conjunction with Vantiv, Inc.’s IPO in 2012, the Bancorp entered into two TRAs with Vantiv, Inc. The TRAs provide for payments by Vantiv, Inc. to the Bancorp of 85% of the cash savings actually realized as a result of the increase in tax basis that results from the h istorical or future purchase of equity in Vantiv Holding, LLC from the Bancorp or from the exchange of equity units in Vantiv Holding, LLC for cash or Class A Stock, as well as any tax benefits attributable to payments made under the TRA. Any actual increa se in tax basis, as well as the amount and timing of any payments made under the TRA depend on a number of uncertain factors, the most significant of which is the realization of the tax benefits by Vantiv, Inc., which depends on the amount and timing of Va ntiv, Inc.’s reportable taxable income. The Bancorp accounts for these TRAs as gain contingencies and recognizes income when all uncertainties surrounding the realization of such amounts are resolved. |
Income Taxes | Income Taxes The Bancorp accounts for income taxes usi ng the asset and liability method, which requires the recognition of deferred tax assets and liabilities for expected future tax consequences. Under the asset and liability method, deferred tax assets and liabilities are determined by applying the federal and state tax rates to the differences between financial statement carrying amounts and the corresponding tax bases of assets and liabilities. Deferred tax assets are also recorded for any tax attributes, such as tax credits and net operating loss carryfor wards. The net balances of deferred tax assets and liabilities are reported in other assets and accrued taxes, interest and expenses in the Consolidated Balance Sheets. Any effect of a change in federal or state tax rates on deferred tax assets and liabili ties is recognized in income tax expense in the period that includes the enactment date. The Bancorp reflects the expected amount of income tax to be paid or refunded during the year as current income tax expense or benefit. Accrued taxes represent the net expected amount due to and/or from taxing jurisdictions and are reported in accrued taxes , interest and expenses in the Consolidated Balance S heets. The Bancorp evaluates the realization of deferred tax assets based on all positive and negative evidence a vailable at the balance sheet date. Realization of deferred tax assets is based on the Bancorp’s judgment about relevant factors affecting their realization, including the taxable income within any applicable carryback periods, future projected taxable inc ome, the reversal of taxable temporary differences and tax-planning strategies. The Bancorp records a valuation allowance for deferred tax assets where the Bancorp does not believe that it is more-likely-than-not that the deferred tax assets will be realiz ed. Income tax benefits from uncertain tax positions are recognized in the financial statements only if the Bancorp believes that it is more-likely-than-not that the uncertain tax position will be sustained based solely on the technical merits of the tax position and consideration of the relevant taxing authority’s widely understood administrative practices and precedents. If the Bancorp does not believe that it is more-likely-than-not that an uncertain tax position will be sustained, the Bancorp records a liability for the uncertain tax position. If the Bancorp believes that it is more likely than not that an uncertain tax position will be sustained, the Bancorp only records a tax benefit for the portion of the uncertain tax position where the likelihood o f realization is greater than 50% upon settlement with the relevant taxing authority that has full knowledge of all relevant information. The Bancorp recognizes interest expense, interest income and penalties related to unrecognized tax benefits within cur rent income tax expense. Refer to Note 20 for further discussion regarding income taxes . |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Earnings per diluted share is computed by dividing adjusted net income available to common shareholders by the weighted-average number of shares of common stock and common stock equivalents outstanding during the period. Dilutive common stock equivalents represent the assumed conversion of dilutive convertible preferred stock, the exer cise of dilutive stock-based awards and warrants and the dilutive effect of the settlement of outstanding forward contracts. The Bancorp calculates earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share separately for common stock and participating securities according to dividends declared and participation rights in undistributed earnings. For purposes of calculating earnings per share under the two-class method, restr icted shares that contain nonforfeitable rights to dividends are considered participating securities until vested. While the dividends declared per share on such restricted shares are the same as dividends declared per common share outstanding, the dividen ds recognized on such restricted shares may be less because dividends paid on restricted shares that are expected to be forfeited are reclassified to compensation expense during the period when forfeiture is expected. |
Goodwill | Goodwill Business combinations enter ed into by the Bancorp typically include the acquisition of goodwill. Goodwill is required to be tested for impairment at the Bancorp’s reporting unit level on an annual basis, which for the Bancorp is September 30, and more frequently if events or circums tances indicate that there may be impairment. The Bancorp has determined that its segments qualify as reporting units under U.S. GAAP. Impairment exists when a reporting unit’s carrying amount of goodwill exceeds its implied fair value. In testing goodwill for impairment, U.S. GAAP permits the Bancorp to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In this qualitative assessment, the Bancorp evaluat es events and circumstances which may include, but are not limited to, the general economic environment, banking industry and market conditions, the overall financial performance of the Bancorp, the performance of the Bancorp’s common stock, the key financ ial performance metrics of the Bancorp’s reporting units and events affecting the reporting units. If, after assessing the totality of events and circumstances, the Bancorp determines it is not more likely than not that the fair value of a reporting unit i s less than its carrying amount, then performing the two-step impairment test would be unnecessary. However, if the Bancorp concludes otherwise or elects to bypass the qualitative assessment, it would then be required to perform the first step (Step 1) of the goodwill impairment test, and continue to the second step (Step 2), if necessary. Step 1 of the goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting u nit exceeds its fair value, Step 2 of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The fair value of a reporting unit is the price that would be received to sell the unit as a whole in an orderly transaction b etween market participants at the measurement date. As none of the Bancorp’s reporting units are publicly traded, individual reporting unit fair value determinations cannot be directly correlated to the Bancorp’s stock price. To determine the fair value of a reporting unit, the Bancorp employs an income-based approach, utilizing the reporting unit’s forecasted cash flows (including a terminal value approach to estimate cash flows beyond the final year of the forecast) and the reporting unit’s estimated cost of equity as the discount rate. Additionally, the Bancorp determines its market capitalization based on the average of the closing price of the Bancorp’s stock during the month including the measurement date, incorporating an additional control premium, a nd compares this market-based fair value measurement to the aggregate fair value of the Bancorp’s reporting units in order to corroborate the results of the income approach. When required to perform Step 2, the Bancorp compares the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount exceeds the implied fair value, an impairment loss equal to that excess amount is recognized. A recognized impairment loss cannot exceed the carrying amount of that goodwill and cannot be reversed in future periods even if the fair value of the reporting unit subsequently recovers. During Step 2, the Bancorp determines the implied fair value of goodwill for a reporting unit by assigning the fair value of the reportin g unit to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. The excess of the fair value of the reporting unit over the amounts assigned to it s assets and liabilities is the implied fair value of goodwill. This assignment process is only performed for purposes of testing goodwill for impairment. The Bancorp does not adjust the carrying values of recognized assets or liabilities (other than goodw ill, if appropriate), nor does it recognize previously unrecognized intangible assets in the Consolidated Financial Statements as a result of this assignment process. Refer to Note 9 for further information regarding the Bancorp’s goodwill. |
Fair Value of Financial Instruments | Fair Value Measurements The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transac tion between market participants at the measurement date. Valuation techniques the Bancorp uses to measure fair value include the market approach, income approach and cost approach. The market approach uses prices or relevant information generated by marke t transactions involving identical or comparable assets or liabilities. The income approach involves discounting future amounts to a single present amount and is based on current market expectations about those future amounts. The cost approach is based on the amount that currently would be required to replace the service capacity of the asset. U.S. GAAP establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument’s categorization within the fair value hierarchy is base d upon the lowest level of input that is significant to the instrument’s fair value measurement. The three levels within the fair value hierarchy are described as follows: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Bancorp has the ability to access at the measurement date. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted price s that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 – Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. Unobservable inputs reflect the Bancorp’s own assumptions about what market participants would use to price the asset or liability. The inputs are developed based on the best information available in the circum stances, which might include the Bancorp’s own financial data such as internally developed pricing models and DCF methodologies, as well as instruments for which the fair value determination requires significant management judgment. The Bancorp’s fair val ue measurements involve various valuation techniques and models, which involve inputs that are observable, when available. Valuation techniques and parameters used for measuring assets and liabilities are reviewed and validated by the Bancorp on a quarterl y basis. Additionally, the Bancorp monitors the fair values of significant assets and liabilities using a variety of methods including the evaluation of pricing runs and exception reports based on certain analytical criteria, comparison to previous trades and overall review and assessments for reasonableness. The Bancorp may, as a practical expedient, measure the fair value of certain investments on the basis of the net asset value per share of the investment, or its equivalent. Any investments which are va lued using this practical expedient are not classified in the fair value hierarchy. Refer to Note 27 for further information on fair value measurements. |
Stock-Based Compensation | Stock-Based Compensation The Bancorp recognizes compensation expense for the grant-date fair val ue of stock-based awards that are expected to vest over the requisite service period. All awards, both those with cliff vesting and graded vesting, are expensed on a straight-line basis. Awards to employees that meet eligible retirement status are expensed immediately. As compensation expense is recognized, a deferred tax asset is recorded that represents an estimate of the future tax deduction from exercise or release of restrictions. At the time awards are exercised, cancelled, expire or restrictions are released, the Bancorp recognizes an adjustment to income tax expense for the difference between the previously estimated tax deduction and the actual tax deduction realized. For further information on the Bancorp’s stock-based compensation plans, refer to Note 24. |
Pension Plans | Pension Plans The Bancorp uses an expected long-term rate of return applied to the fair market value of assets as of the beginning of the year and the expected cash flow during the year for calculating the expected investment return on all pension plan assets. Amortization of the net gain or loss resulting from experience different from that assumed and from changes in assumptions (excluding asset gains and losses not yet reflected in market-related value) is included as a component of net periodic benefit cost. If, as of the beginning of the year, that net gain or loss exceeds 10% of the greater of the projected benefit obligation and the market-related value of plan assets, the amortization is that excess divided by the average remaining s ervice period of participating employees expected to receive benefits under the plan. The Bancorp uses a third-party actuary to compute the remaining service period of participating employees. This period reflects expected turnover, pre-retirement mortalit y and other applicable employee demographics. |
Other | Other Securities and other property held by Fifth Third Wealth and Asset Management , a division of the Bancorp’s banking subsidiary, in a fiduciary or agency capacity are not included in the Consolidated Balance Sheets because such items are not assets of the subsidiaries. Wealth and asset management revenue in the Consolidated Statements of Income is recognized on the accrual basis. Wealth and asset management service revenues are recognized monthly based on a fee charged per transaction processed and/or a fee charged on the market value of average account balances associated with individual contracts. The Bancorp recognizes revenue from its card and processing services on an accrual basis as such services are performed, recording revenues net of certain costs (primarily interchange fees charged by credit card associations) not controlled by the Bancorp. The Bancorp purchases life insurance policies on the lives of certain directors, officers and employees and is the owner and beneficiary of the policies. The Bancorp invests in these policies, known as BOLI, to provide an efficient form of funding for long-term retirement and other employee benefits costs. The Bancorp records these BOLI policies within other assets in the Consolidated Balance Sheets at each policy’s respective cash surrender value, with changes recorded in other noninterest income in the Consolidated Statements of Income. Other intangible assets consist of core deposit intangibles, customer l ists, non-compete agreements and cardholder relationships. Other intangible assets are amortized on either a straight-line or an accelerated basis over their estimated useful lives. The Bancorp reviews other intangible assets for impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Securities sold under repurchase agreements are accounted for as secured borrowings and included in other short-term borrowings in the Consolidated Balance Sheets at the am ounts at which the securities were sold plus accrued interest. Acquisitions of treasury stock are carried at cost. Reissuance of shares in treasury for acquisitions, exercises of stock-based awards or other corporate purposes is recorded based on the speci fic identification method. Advertising costs are generally expensed as incurred. |
Supplemental Cash Flow Inform40
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow | |
Noncash Investing and Financing Activities | Cash payments related to interest and income taxes in addition to non-cash investing and financing activities are presented in the following table for the years ended December 31: ($ in millions) 2016 2015 2014 Cash Payments: Interest $ 578 475 429 Income taxes 800 400 550 Non-cash Investing and Financing Activities: Portfolio loans to loans held for sale 238 487 855 Loans held for sale to portfolio loans 28 288 31 Portfolio loans to OREO 49 105 145 Loans held for sale to OREO - - 2 Capital lease - 4 15 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investment Securities | |
Available-for-Sale and Other and Held-to-Maturity Securities | The following table provides the amortized cost, fair value and unrealized gains and losses for the major categories of the available-for-sale and other and held-to-maturity investment securities portfolios as of December 31: 2016 2015 Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair ($ in millions) Cost Gains Losses Value Cost Gains Losses Value Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 547 2 - 549 1,155 32 - 1,187 Obligations of states and political subdivisions securities 44 1 - 45 50 2 - 52 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 15,525 178 (95) 15,608 14,811 283 (13) 15,081 Agency commercial mortgage-backed securities 9,029 87 (61) 9,055 7,795 100 (33) 7,862 Non-agency commercial mortgage-backed securities 3,076 51 (15) 3,112 2,801 35 (32) 2,804 Asset-backed securities and other debt securities 2,106 28 (18) 2,116 1,363 13 (21) 1,355 Equity securities (b) 697 3 (2) 698 703 2 (2) 703 Total available-for-sale and other securities $ 31,024 350 (191) 31,183 28,678 467 (101) 29,044 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 24 - - 24 68 - - 68 Asset-backed securities and other debt securities 2 - - 2 2 - - 2 Total held-to-maturity securities $ 26 - - 26 70 - - 70 Includes interest-only mortgage-backed securities of $ 60 and $ 50 as of December 31, 2016 and 2015 , respectively, recorded at fair value with fair value changes recorded in securities gains, net , i n the Consolidated Statements of Income . Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 358 , and $ 1 , respectively, at December 31, 2016 and $ 248 , $ 355 and $ 1 , respectively, at December 31, 2015 , that are carried at cost, and certain mutual fund and equity security holdings. |
Realized Gains and Losses Recognized in Income from Securities | The following table presents realized gains and losses that were recognized in income from available-for-sale securities for the years ended December 31: ($ in millions) 2016 2015 2014 Realized gains $ 72 97 70 Realized losses (45) (76) (9) OTTI (16) (5) (24) Net realized gains (a) $ 11 16 37 (a) Excludes net losses on interest-only mortgage-backed securities of $ 4 , $ 4 and $ 17 for the years ended December 31, 2016 , 2015 and 2014 , respectively Trading securities were $410 million as of December 31, 2016, compared to $386 million at December 31, 2015. The following table presents total gains and losses that were recognized in income from trading securities for the years ended December 31: ($ in millions) 2016 2015 2014 Realized gains (a) $ 9 6 8 Realized losses (b) (13) (10) (7) Net unrealized gains (losses) (c) 4 (3) (3) Total trading securities losses $ - (7) (2) Includes realized gains of $ 7 , $ 6 and $ 4 for the years ended December 31, 2016 , 2015 and 2014 , respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income. Includes realized losses of $ 10 , $ 10 and $ 7 for the years ended December 31, 2016 , 2015 and 2014 , respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income. Includes an immaterial amount of net unrealized gains for the years ended December 31, 2016 and 2015 , respectively, and an immaterial amount of net unrealized losses for the year ended 2014 recorded in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income. |
Other Than Temporary Impairment Credit Losses Recognized In Earnings | The following table provides a summary of OTTI by security type: ($ in millions) 2016 2015 2014 Available-for-sale and other debt securities $ (15) (5) (24) Available-for-sale equity securities (1) - - Total OTTI (a) $ (16) (5) (24) (a) Included in securiti es gains, net, in the Consolidated Statements of Income . |
Amortized Cost and Fair Value of Available-for-Sale and Other and Held-to-Maturity Securities | The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale and other and held-to-maturity investment securities as of December 31, 2016 are shown in the following table: Available-for-Sale and Other Held-to-Maturity ($ in millions) Amortized Cost Fair Value Amortized Cost Fair Value Debt securities: (a) Less than 1 year $ 328 332 2 2 1-5 years 7,290 7,347 11 11 5-10 years 20,043 20,146 12 12 Over 10 years 2,666 2,660 1 1 Equity securities 697 698 - - Total $ 31,024 31,183 26 26 (a) Actual maturities may differ from contractu al maturities when a right to call or prepay obligations exists with or without call or prepayment penalties. |
Fair Value and Gross Unrealized Loss of Securities Available for Sale | The following table provides the fair value and gross unrealized losses on available-for-sale and other securities in an unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized ($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses 2016 U.S. Treasury and federal agencies securities $ 199 - - - 199 - Agency residential mortgage-backed securities 6,223 (88) 172 (7) 6,395 (95) Agency commercial mortgage-backed securities 3,183 (61) - - 3,183 (61) Non-agency commercial mortgage-backed securities 1,052 (15) - - 1,052 (15) Asset-backed securities and other debt securities 422 (8) 336 (10) 758 (18) Equity securities - - 37 (2) 37 (2) Total $ 11,079 (172) 545 (19) 11,624 (191) 2015 Agency residential mortgage-backed securities $ 2,903 (13) - - 2,903 (13) Agency commercial mortgage-backed securities 3,111 (33) - - 3,111 (33) Non-agency commercial mortgage-backed securities 1,610 (32) - - 1,610 (32) Asset-backed securities and other debt securities 623 (11) 226 (10) 849 (21) Equity securities 1 (1) 37 (1) 38 (2) Total $ 8,248 (90) 263 (11) 8,511 (101) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Loans and Leases Receivable | |
Loans and Leases Classified by Primary Purpose | The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans and leases classified based upon product or collateral as of December 31: ($ in millions) 2016 2015 Loans held for sale: Commercial and industrial loans $ 60 20 Commercial mortgage loans 5 34 Residential mortgage loans 686 708 Home equity - 35 Automobile loans - 4 Credit card - 101 Other consumer loans - 1 Total loans held for sale $ 751 903 Portfolio loans and leases: Commercial and industrial loans $ 41,676 42,131 Commercial mortgage loans 6,899 6,957 Commercial construction loans 3,903 3,214 Commercial leases 3,974 3,854 Total commercial loans and leases 56,452 56,156 Residential mortgage loans 15,051 13,716 Home equity 7,695 8,301 Automobile loans 9,983 11,493 Credit card 2,237 2,259 Other consumer loans and leases 680 657 Total consumer loans and leases 35,646 36,426 Total portfolio loans and leases $ 92,098 92,582 |
Total Loans And Leases Owned By The Bancorp | The following table presents a summary of the total loans and leases owned by the Bancorp and net charge-offs (recoveries) as of and for the years ended December 31: 90 Days Past Due Net Carrying Value and Still Accruing Charge-Offs (Recoveries) ($ in millions) 2016 2015 2016 2015 2016 2015 Commercial and industrial loans $ 41,736 42,151 4 7 172 229 Commercial mortgage loans 6,904 6,991 - - 15 27 Commercial construction loans 3,903 3,214 - - (1) 3 Commercial leases 3,974 3,854 - - 4 2 Residential mortgage loans 15,737 14,424 49 40 10 17 Home equity 7,695 8,336 - - 27 39 Automobile loans 9,983 11,497 9 10 35 28 Credit card 2,237 2,360 22 18 80 82 Other consumer loans and leases 680 658 - - 20 19 Total loans and leases $ 92,849 93,485 84 75 362 446 Less: Loans held for sale $ 751 903 Total portfolio loans and leases $ 92,098 92,582 |
Investment in Lease Financing | The following table provides the components of the commercial lease financing portfolio as of December 31: ($ in millions) 2016 2015 Rentals receivable, net of principal and interest on nonrecourse debt $ 3,551 3,550 Estimated residual value of leased assets 903 906 Initial direct cost, net of amortization 23 22 Gross investment in lease financing 4,477 4,478 Unearned income (503) (624) Net investment in commercial lease financing (a) $ 3,974 3,854 The accumulated allowance for uncollectible m inimum lease payments was $ 15 and $ 47 at December 31, 2016 and 2015 , respectively. |
Credit Quality and the Allowa43
Credit Quality and the Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Credit Quality and the Allowance for Loan and Leases Losses | |
Summary of Transactions in the ALLL | The following tables summarize transactions in the ALLL by portfolio segment for the years ended December 31: Residential 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 840 100 217 115 1,272 Charge-offs (232) (19) (205) - (456) Recoveries of losses previously charged-off 42 9 43 - 94 Provision for loan and lease losses 181 6 159 (3) 343 Balance, end of period $ 831 96 214 112 1,253 Residential 2015 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 875 104 237 106 1,322 Charge-offs (298) (28) (216) - (542) Recoveries of losses previously charged-off 37 11 48 - 96 Provision for loan and lease losses 226 13 148 9 396 Balance, end of period $ 840 100 217 115 1,272 Residential 2014 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 1,058 189 225 110 1,582 Charge-offs (299) (139) (241) - (679) Recoveries of losses previously charged-off 38 13 53 - 104 Provision for loan and lease losses 78 41 200 (4) 315 Balance, end of period $ 875 104 237 106 1,322 |
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment | The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: Residential As of December 31, 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 118 a (c) 68 44 - 230 Collectively evaluated for impairment 713 28 170 - 911 Unallocated - - - 112 112 Total ALLL $ 831 96 214 112 1,253 Portfolio loans and leases: (b) Individually evaluated for impairment $ 904 a (c) 652 371 - 1,927 Collectively evaluated for impairment 55,548 14,253 20,224 - 90,025 Loans acquired with deteriorated credit quality - 3 - - 3 Total portfolio loans and leases $ 56,452 14,908 20,595 - 91,955 Includes $ 2 related to leveraged leases at December 31, 2016 . Excludes $ 143 of residential mortgage loans measured at fair value , and includes $ 701 of leveraged leases, net of unearned income, at December 31, 2016 . Includes five restructured loans at December 31, 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $ 26 and an ALLL of $ 18 . Residential As of December 31, 2015 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 119 a (c) 67 49 - 235 Collectively evaluated for impairment 721 33 168 - 922 Unallocated - - - 115 115 Total ALLL $ 840 100 217 115 1,272 Portfolio loans and leases: (b) Individually evaluated for impairment $ 815 a (c) 630 424 - 1,869 Collectively evaluated for impairment 55,341 12,917 22,286 - 90,544 Loans acquired with deteriorated credit quality - 2 - - 2 Total portfolio loans and leases $ 56,156 13,549 22,710 - 92,415 Includes $ 5 related to leveraged leases at December 31, 2015 . Excludes $ 167 of residential mortgage loans measured at fair value , and includes $ 8 01 of leveraged leases, net of unearned income at December 31, 2015 . Includes five restructured loans at December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $ 27 and an ALLL of $ 15 . |
Loan and leases balances by credit quality indicator | The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class: Special As of December 31, 2016 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 38,844 1,204 1,604 24 41,676 Commercial mortgage owner-occupied loans 3,168 72 117 3 3,360 Commercial mortgage nonowner-occupied loans 3,466 4 69 - 3,539 Commercial construction loans 3,902 1 - - 3,903 Commercial leases 3,894 54 26 - 3,974 Total commercial loans and leases $ 53,274 1,335 1,816 27 56,452 Special As of December 31, 2015 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 38,756 1,633 1,742 - 42,131 Commercial mortgage owner-occupied loans 3,344 124 191 - 3,659 Commercial mortgage nonowner-occupied loans 3,105 63 130 - 3,298 Commercial construction loans 3,201 4 9 - 3,214 Commercial leases 3,724 93 37 - 3,854 Total commercial loans and leases $ 52,130 1,917 2,109 - 56,156 The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of December 31: 2016 2015 ($ in millions) Performing Nonperforming Performing Nonperforming Residential mortgage loans (a) $ 14,874 34 13,498 51 Home equity 7,622 73 8,222 79 Automobile loans 9,981 2 11,491 2 Credit card 2,209 28 2,226 33 Other consumer loans and leases 680 - 657 - Total residential mortgage and consumer loans and leases (a) $ 35,366 137 36,094 165 (a) Excludes $ 143 and $ 167 of loans measured at fair value at December 31, 2016 and 2015 , respectively . |
Summary by Age and Class of the Recorded Investment in Delinquencies Included in the Bancorp's Portfolio of Loans and Leases | The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases, by age and class: Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2016 ($ in millions) Leases (c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 41,495 87 94 181 41,676 4 Commercial mortgage owner-occupied loans 3,332 6 22 28 3,360 - Commercial mortgage nonowner-occupied loans 3,530 2 7 9 3,539 - Commercial construction loans 3,902 1 - 1 3,903 - Commercial leases 3,972 - 2 2 3,974 - Residential mortgage loans (a)(b) 14,790 37 81 118 14,908 49 Consumer loans and leases: Home equity 7,570 68 57 125 7,695 - Automobile loans 9,886 85 12 97 9,983 9 Credit card 2,183 28 26 54 2,237 22 Other consumer loans and leases 679 1 - 1 680 - Total portfolio loans and leases (a) $ 91,339 315 301 616 91,955 84 Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2016 , $ 1 1 0 of these loans were 30-89 days past due and $ 3 12 were 90 days or more past due. The Bancorp recognized $ 6 of losses during the year ended December 31, 2016 due to claim denials and curtailments a ssociated with these insured or guaranteed loans. Includes accrual and nonaccrual loans and leases. Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2015 ($ in millions) Leases (c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 41,996 55 80 135 42,131 7 Commercial mortgage owner-occupied loans 3,610 15 34 49 3,659 - Commercial mortgage nonowner-occupied loans 3,262 9 27 36 3,298 - Commercial construction loans 3,214 - - - 3,214 - Commercial leases 3,850 3 1 4 3,854 - Residential mortgage loans (a)(b) 13,420 37 92 129 13,549 40 Consumer loans and leases: Home equity 8,158 82 61 143 8,301 - Automobile loans 11,407 75 11 86 11,493 10 Credit card 2,207 29 23 52 2,259 18 Other consumer loans and leases 656 1 - 1 657 - Total portfolio loans and leases (a) $ 91,780 306 329 635 92,415 75 Excludes $ 167 of residential mortgage loans measured at fair value at December 31, 2015 . Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA . As of December 31, 2015 , $ 102 of these loans were 30-89 days past due and $ 335 were 90 days or more past due. The Bancorp recognized $ 8 of losses during the year ended December 31, 2015 due to claim denials and curtailments associated with these insured or guaranteed loans . Includes accrual and nonaccrual loans and leases . |
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class | The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR as of December 31: Unpaid Principal Recorded 2016 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 440 414 94 Commercial mortgage owner-occupied loans (b) 24 16 5 Commercial mortgage nonowner-occupied loans 7 6 1 Commercial leases 2 2 - Restructured residential mortgage loans 471 465 68 Restructured consumer loans and leases: Home equity 202 201 30 Automobile loans 12 12 2 Credit card 52 52 12 Total impaired portfolio loans and leases with a related ALLL $ 1,210 1,168 212 With no related ALLL: Commercial loans and leases: Commercial and industrial loans $ 394 320 - Commercial mortgage owner-occupied loans 36 35 - Commercial mortgage nonowner-occupied loans 93 83 - Commercial leases 2 2 - Restructured residential mortgage loans 207 187 - Restructured consumer loans and leases: Home equity 107 104 - Automobile loans 3 2 - Total impaired portfolio loans and leases with no related ALLL $ 842 733 - Total impaired portfolio loans and leases $ 2,052 1,901 a (a) 212 Includes $ 322 , $ 635 and $ 323 , respectively, of commercial , residential mortgage and consumer portfolio TDRs on accrual status and $ 192 , $ 17 and $ 48 , respectively , of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2016 . Excludes five restructured l oans at December 31 , 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $ 26 , a recorded investment of $ 26 and an ALLL of $ 18 . Unpaid Principal Recorded 2015 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 412 346 84 Commercial mortgage owner-occupied loans (b) 28 21 5 Commercial mortgage nonowner-occupied loans 75 64 12 Commercial construction loans 4 4 2 Commercial leases 3 3 1 Restructured residential mortgage loans 450 444 67 Restructured consumer loans and leases: Home equity 226 225 32 Automobile loans 17 16 2 Credit card 61 61 15 Total impaired portfolio loans and leases with a related ALLL $ 1,276 1,184 220 With no related ALLL: Commercial loans and leases: Commercial and industrial loans $ 228 182 - Commercial mortgage owner-occupied loans 54 51 - Commercial mortgage nonowner-occupied loans 126 111 - Commercial construction loans 9 5 - Commercial leases 1 1 - Restructured residential mortgage loans 210 186 - Restructured consumer loans and leases: Home equity 122 119 - Automobile loans 3 3 - Total impaired portfolio loans and leases with no related ALLL $ 753 658 - Total impaired portfolio loans and leases $ 2,029 1,842 a (a) 220 Includes $ 491 , $ 607 and $ 372 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 203 , $ 23 and $ 52 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015 . Excludes five restructured loans at December 31, 2015 associated with a consolidated VI E in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $ 27 , a recorded investment of $ 27 and an ALLL of $ 15 . The following table summarizes the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the years ended December 31: 2016 2015 2014 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 691 10 663 21 786 25 Commercial mortgage owner-occupied loans (a) 63 1 92 2 149 4 Commercial mortgage nonowner-occupied loans 139 5 224 7 268 8 Commercial construction loans 3 - 41 1 92 2 Commercial leases 5 - 5 - 13 - Restructured residential mortgage loans 647 25 586 23 1,273 54 Restructured consumer loans and leases: Home equity 325 12 361 13 394 20 Automobile loans 17 - 22 1 24 1 Credit card 56 5 68 6 62 5 Total average impaired portfolio loans and leases $ 1,946 58 2,062 74 3,061 119 (a) Excludes five restructured loans associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 26 , $ 27 and $28 for the years ended December 31, 2016 , 2015 and 2014 , respectively . A n immaterial amount of interest income was recognized during the years ended December 31, 2016 , 2015 and 2014 . |
Summary of the Bancorp's Nonperforming Loans and Leases by Class | Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured commercial and credit card loans which have not yet met the requirements to be classified as a performing asset; restructured consumer loans which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property. The following table presents the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of December 31: ($ in millions) 2016 2015 Commercial loans and leases: Commercial and industrial loans $ 478 259 Commercial mortgage owner-occupied loans (a) 32 46 Commercial mortgage nonowner-occupied loans 9 35 Commercial leases 4 1 Total nonaccrual portfolio commercial loans and leases 523 341 Residential mortgage loans 34 51 Consumer loans and leases: Home equity 73 79 Automobile loans 2 2 Credit card 28 33 Total nonaccrual portfolio consumer loans and leases 103 114 Total nonaccrual portfolio loans and leases (b)(c) $ 660 506 OREO and other repossessed property 78 141 Total nonperforming portfolio assets (b)(c) $ 738 647 Excludes $ 19 and $ 20 of restructured nonaccrual loans at December 31, 2016 and 2015 , respectively, associated with a consolidated VIE in which the Bancorp has no continuing credit risk due the risk being assumed by a third party. Excludes $ 1 3 and $ 12 of nonaccrual loans held for sale at December 31, 2016 and 2015 , respectively. Includes $ 4 and $ 6 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at December 31, 2016 and 2015 , respectively , and $ 1 and $ 2 of restructured nonaccrual government insured commercial loans at December 31, 2016 and 2015 , respectively . |
Summary of Loans Modified in a TDR | The following tables provide a summary of loans, by class, modified in a TDR by the Bancorp during the years ended December 31: Recorded investment Number of loans in loans modified Increase Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon 2016 ($ in millions) (a) during the year (b) during the year modification modification Commercial loans and leases: Commercial and industrial loans 74 $ 183 14 - Commercial mortgage owner-occupied loans 12 11 - - Commercial mortgage nonowner-occupied loans 4 5 2 - Commercial leases 5 16 - - Residential mortgage loans 924 137 8 - Consumer loans: Home equity 219 15 - - Automobile loans 221 3 - - Credit card 9,519 43 8 4 Total portfolio loans and leases 10,978 $ 413 32 4 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded investment Increase Number of loans in loans modified (Decrease) Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon 2015 ($ in millions) (a) during the year (b) during the year modification modification Commercial loans: Commercial and industrial loans 77 $ 146 7 3 Commercial mortgage owner-occupied loans 18 16 (2) - Commercial mortgage nonowner-occupied loans 12 7 (1) - Residential mortgage loans 1,089 155 8 - Consumer loans: Home equity 267 16 (1) - Automobile loans 440 7 1 - Credit card 12,569 62 11 7 Total portfolio loans 14,472 $ 409 23 10 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded investment Increase Number of loans in loans modified (Decrease) Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon 2014 ($ in millions) (a) during the year (b) during the year modification modification Commercial loans: Commercial and industrial loans 128 $ 230 12 6 Commercial mortgage owner-occupied loans 32 54 (1) - Commercial mortgage nonowner-occupied loans 28 30 (3) 2 Residential mortgage loans 1,093 160 8 - Consumer loans: Home equity 284 12 - - Automobile loans 608 10 1 - Credit card 8,929 52 10 - Total portfolio loans 11,102 $ 548 27 8 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . |
Summary of Subsequent Defaults | The following tables provide a summary of TDRs that subsequently defaulted during the years ended December 31, 2016, 2015 and 2014 and were within twelve months of the restructuring date: Number of Recorded December 31, 2016 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 8 $ 5 Commercial mortgage nonowner-occupied loans 2 - Commercial leases 2 1 Residential mortgage loans 172 25 Consumer loans: Home equity 17 1 Automobile loans 2 - Credit card 1,715 7 Total portfolio loans and leases 1,918 $ 39 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality . Number of Recorded December 31, 2015 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 7 $ 11 Commercial mortgage owner-occupied loans 3 1 Residential mortgage loans 156 21 Consumer loans: Home equity 15 1 Automobile loans 8 - Credit card 1,935 8 Total portfolio loans 2,124 $ 42 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality . Number of Recorded December 31, 2014 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 11 $ 36 Commercial mortgage owner-occupied loans 3 4 Commercial mortgage nonowner-occupied loans 2 1 Residential mortgage loans 235 32 Consumer loans: Home equity 30 2 Automobile loans 6 - Credit card 2,059 12 Total portfolio loans 2,346 $ 87 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality . |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Bank Premises and Equipment | |
Bank Premises and Equipment | The following table provides a summary of bank premises and equipment as of December 31: ($ in millions) Estimated Useful Life 2016 2015 Land and improvements (a) $ 663 685 Buildings (a) 2 - 30 yrs. 1,672 1,755 Equipment 2 - 30 yrs. 1,761 1,696 Leasehold improvements 1 - 30 yrs. 398 403 Construction in progress (a) 99 85 Bank premises and equipment held for sale: Land and improvements 29 55 Buildings 9 20 Equipment 1 3 Leasehold improvements - 3 Accumulated depreciation and amortization (2,567) (2,466) Total bank premises and equipment $ 2,065 2,239 (a) At December 31, 2016 and 2015 , land and improvements, buildings and construction in progress included $ 92 and $ 102 , respectively, associated with parcels of undeveloped land intended for future branch expansion. |
Annual Future Minimum Payments under Capital Leases and Noncancelable Operating Leases | The following table provides the annual future minimum payments under noncancelable operating leases and capital leases for the years ending December 31: ($ in millions) Noncancelable Operating Leases Capital Leases 2017 $ 88 6 2018 84 6 2019 77 5 2020 65 1 2021 52 - Thereafter 210 1 Total minimum lease payments $ 576 19 Less: Amounts representing interest - 2 Present value of net minimum lease payments - 17 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill | |
Changes in the Net Carrying Amount of Goodwill by Reporting Segment | Changes in the net carrying amount of goodwill, by reporting unit, for the years ended December 31, 2016 and 2015 were as follows: Commercial Branch Consumer Wealth and Asset ($ in millions) Banking Banking Lending Management Total Goodwill $ 1,363 1,655 215 148 3,381 Accumulated impairment losses (750) - (215) - (965) Net carrying amount as of December 31, 2014 $ 613 1,655 - 148 2,416 Acquisition activity - - - - - Net carrying amount as of December 31, 2015 $ 613 1,655 - 148 2,416 Acquisition activity - - - - - Net carrying amount as of December 31, 2016 $ 613 1,655 - 148 2,416 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Intangible Assets | |
Intangible Assets | The details of the Bancorp’s intangible assets are shown in the following table: Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount As of December 31, 2016 Core deposit intangibles $ 34 (27) 7 Other 15 (13) 2 Total intangible assets $ 49 (40) 9 As of December 31, 2015 Core deposit intangibles $ 34 (26) 8 Other 33 (29) 4 Total intangible assets $ 67 (55) 12 |
Estimated Amortization Expense | Estimated amortization expense for the years ending December 31, 2017 through 2021 is as follows: ($ in millions) Total 2017 $ 2 2018 1 2019 1 2020 1 2021 1 Estimated amortization expense for the years ending December 31, 2017 through 2021 is as follows: ($ in millions) Total 2017 $ 142 2018 124 2019 109 2020 96 2021 84 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities | |
Consolidation of Variable Interest Entities Disclosure | Consolidated VIEs The following tables provide a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Consolidated Balance Sheets as of: Automobile Loan CDC December 31, 2016 ($ in millions) Securitizations Investments Total Assets: Cash and due from banks $ 84 1 85 Commercial mortgage loans - 46 46 Automobile loans 1,170 - 1,170 ALLL (6) (20) (26) Other assets 9 - 9 Total assets $ 1,257 27 1,284 Liabilities: Other liabilities $ 3 - 3 Long-term debt 1,094 - 1,094 Total liabilities $ 1,097 - 1,097 Noncontrolling interests $ - 27 27 Automobile Loan CDC December 31, 2015 ($ in millions) Securitizations Investments Total Assets: Cash and due from banks $ 151 1 152 Commercial mortgage loans - 47 47 Automobile loans 2,490 - 2,490 ALLL (11) (17) (28) Other assets (a) 14 - 14 Total assets (a) $ 2,644 31 2,675 Liabilities: Other liabilities $ 3 - 3 Long-term debt (a) 2,487 - 2,487 Total liabilities (a) $ 2,490 - 2,490 Noncontrolling interests $ - 31 31 (a) Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $ 6 of debt issuance costs from other assets to long-term debt. For further information refer to Note 1. |
Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses | Non-consolidated VIEs The following tables provide a summary of assets and liabilities carried on the Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of: Total Total Maximum December 31, 2016 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,421 357 1,421 Private equity investments 176 - 232 Loans provided to VIEs 1,735 - 2,672 Total Total Maximum December 31, 2015 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,455 367 1,455 Private equity investments 211 - 271 Loans provided to VIEs 1,630 - 2,599 |
Investments in Qualified Affordable Housing Tax Credits | The Bancorp has accounted for all of its investments in qualified affordable housing tax credits using the equity method of accounting. The following table summarizes the impact to the Consolidated Statements of Income relating to investments in qualified affordable housing investments: Consolidated Statements of For the years ended December 31 ($ in millions) Income Caption 2016 2015 2014 Pre-tax investment and impairment losses (a) Other noninterest expense $ 144 126 118 Tax credits and other benefits Applicable income tax expense (220) (205) (185) (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during the years ended December 31, 2016 , 2015 and 2014 . |
Sales of Receivables and Serv48
Sales of Receivables and Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Sales of Receivables and Servicing Rights | |
Activity Related to Mortgage Banking Net Revenue | Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Consolidated Statements of Income, for the years ended December 31 is as follows: ($ in millions) 2016 2015 2014 Residential mortgage loan sales (a) $ 6,927 5,078 (b) 5,467 Origination fees and gains on loan sales 186 171 153 Gross mortgage servicing fees 199 222 246 Represents the unpaid principal balance at the time of the sale . Excludes $ 568 of HFS residential mort gage loans previously modified in a TDR that were sold d uring the first quarter of 2015 . |
Changes in the Servicing Assets | The following table presents changes in the servicing rights related to residential mortgage and automobile loans for the years ended December 31: ($ in millions) 2016 2015 Carrying amount before valuation allowance: Balance, beginning of period $ 1,204 1,392 Servicing rights that result from the transfer of residential mortgage loans 83 63 Amortization (131) (140) Other-than-temporary impairment - (111) Balance, end of period $ 1,156 1,204 Valuation allowance for servicing rights: Balance, beginning of period $ (419) (534) Recovery of MSR impairment 7 4 Other-than-temporary impairment - 111 Balance, end of period (412) (419) Carrying amount after valuation allowance $ 744 785 |
Estimated Amortization Expense on Servicing Rights | Estimated amortization expense for the years ending December 31, 2017 through 2021 is as follows: ($ in millions) Total 2017 $ 2 2018 1 2019 1 2020 1 2021 1 Estimated amortization expense for the years ending December 31, 2017 through 2021 is as follows: ($ in millions) Total 2017 $ 142 2018 124 2019 109 2020 96 2021 84 |
Fair Value of the Servicing Assets | The following table displays the beginning and ending fair value of the servicing rights for the years ended December 31: ($ in millions) 2016 2015 Fixed-rate residential mortgage loans: Balance, beginning of period $ 757 823 Balance, end of period 722 757 Adjustable-rate residential mortgage loans: Balance, beginning of period 27 33 Balance, end of period 22 27 Fixed-rate automobile loans: Balance, beginning of period 1 2 Balance, end of period - 1 |
Activity Related to the MSR Portfolio | The following table presents activity related to valuations of the MSR portfolio and the impact of the non-qualifying hedging strategy, which is included in mortgage banking net revenue in the Consolidated Statements of Income for the years ended December 31: ($ in millions) 2016 2015 2014 Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio 24 90 95 Recovery of (provision for) MSR impairment 7 4 (65) |
Servicing Assets and Residual Interests Economic Assumptions | As of December 31, 2016 and 2015, the key economic assumptions used in measuring the interests in residential mortgage loans that continued to be held by the Bancorp at the date of sale or securitization resulting from transactions completed during the years ended December 31 were as follows: 2016 2015 Weighted- Weighted- Average Prepayment Weighted- Average Prepayment Weighted- Life Speed OAS Spread Average Life Speed OAS Spread Average Rate (in years) (annual) (bps) Default Rate (in years) (annual) (bps) Default Rate Residential mortgage loans: Servicing rights Fixed 7.2 10.3 % 584 N/A 6.9 11.0 % 534 N/A Servicing rights Adjustable 2.8 30.2 679 N/A 3.4 25.2 303 N/A |
Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions | At December 31, 2016, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed assumptions and immediate 10% and 20% adverse changes in other assumptions are as follows: Prepayment Residual Servicing Speed Assumption Cash Flows Fair Weighted-Average Life Impact of Adverse Change on Fair Value OAS Spread Impact of Adverse Change on Fair Value ($ in millions) (a) Rate Value (in years) Rate 10% 20% 50% (bps) 10% 20% Residential mortgage loans: Servicing rights Fixed $ 722 6.5 10.2 % $ (28) (55) (124) 654 $ (18) (35) Servicing rights Adjustable 22 3.2 25.3 (1) (3) (6) 738 - (1) (a) The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial . |
Derivative Financial Instrume49
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Financial Instruments | |
Notional Amounts and Fair Values for All Derivative Instruments Included in the Consolidated Balance Sheets | The following tables reflect the notional amounts and fair values for all derivative instruments included in the Consolidated Balance Sheets as of: Fair Value Notional Derivative Derivative December 31, 2016 ($ in millions) Amount Assets Liabilities Derivatives Designated as Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 3,455 323 12 Total fair value hedges 323 12 Cash flow hedges: Interest rate swaps related to C&I loans 4,475 22 - Total cash flow hedges 22 - Total derivatives designated as qualifying hedging instruments 345 12 Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSRs 10,522 165 39 Forward contracts related to residential mortgage loans held for sale 1,823 20 3 Swap associated with the sale of Visa, Inc. Class B Shares 1,300 - 91 Foreign exchange contracts 111 - - Total free-standing derivatives - risk management and other business purposes 185 133 Free-standing derivatives - customer accommodation: Interest rate contracts for customers 33,431 205 210 Interest rate lock commitments 701 13 1 Commodity contracts 2,095 107 106 Foreign exchange contracts 11,013 202 204 Total free-standing derivatives - customer accommodation 527 521 Total derivatives not designated as qualifying hedging instruments 712 654 Total $ 1,057 666 Fair Value Notional Derivative Derivative December 31, 2015 ($ in millions) Amount Assets Liabilities Derivatives Designated as Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 2,705 372 2 Total fair value hedges 372 2 Cash flow hedges: Interest rate swaps related to C&I loans 5,475 39 - Total cash flow hedges 39 - Total derivatives designated as qualifying hedging instruments 411 2 Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSRs 11,657 239 9 Forward contracts related to residential mortgage loans held for sale 1,330 3 1 Stock warrant associated with Vantiv Holding, LLC 369 262 - Swap associated with the sale of Visa, Inc. Class B Shares 1,292 - 61 Total free-standing derivatives - risk management and other business purposes 504 71 Free-standing derivatives - customer accommodation: Interest rate contracts for customers 29,889 242 249 Interest rate lock commitments 721 15 - Commodity contracts 2,464 294 276 Foreign exchange contracts 16,243 386 340 Total free-standing derivatives - customer accommodation 937 865 Total derivatives not designated as qualifying hedging instruments 1,441 936 Total $ 1,852 938 |
Net Gains (Losses) Recognized in the Income Statement Related to Derivatives in Fair Value Hedging Relationships | The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Consolidated Statements of Income: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2016 2015 2014 Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ (59) (29) 120 Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt 54 25 (126) |
Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges | The following table presents the pre-tax net gains recorded in the Consolidated Statements of Income and the Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the years ended December 31 ($ in millions) 2016 2015 2014 Amount of pre-tax net gains recognized in OCI $ 30 74 60 Amount of pre-tax net gains reclassified from OCI into net income 48 75 44 |
Net Gains (Losses) Relating to Free-Standing Derivative Instruments Used for Risk Management and Other Business Purposes | The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2016 2015 2014 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ 14 8 (18) Interest rate contracts related to MSR portfolio Mortgage banking net revenue 24 90 95 Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income 2 23 14 Equity contracts: Stock warrant associated with Vantiv Holding, LLC Other noninterest income 73 (a) 325 (a) 31 Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (56) (37) (38) ( a) The Bancorp recognized a net gain of $ 9 on the exercise of the remaining warrant during the fourth quarter of 2016 and a net gain of $89 on both the sale and partial exercise of the warrant during the fourth quarter of 2015 |
Risk Ratings of the Notional Amount of Risk Participation Agreements | Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table: At December 31 ($ in millions) 2016 2015 Pass $ 2,447 1,650 Special mention 14 7 Substandard 6 7 Total $ 2,467 1,664 |
Net Gains (Losses) Recognized in the Income Statement Related to Free-Standing Derivative Instruments Used For Customer Accomodation | The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2016 2015 2014 Interest rate contracts: Interest rate contracts for customers (contract revenue) Corporate banking revenue $ 22 23 19 Interest rate contracts for customers (credit losses) Other noninterest expense - (1) (3) Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 1 3 Interest rate lock commitments Mortgage banking net revenue 114 111 124 Commodity contracts: Commodity contracts for customers (contract revenue) Corporate banking revenue 6 5 6 Commodity contracts for customers (credit losses) Other noninterest expense (1) (2) - Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 6 (7) Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Corporate banking revenue 62 70 72 Foreign exchange contracts for customers (credit losses) Other noninterest expense (2) - - Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 - - |
Offsetting Derivative Financial Instruments | The following tables provide a summary of offsetting derivative financial instruments: Gross Amount Gross Amounts Not Offset in the Recognized in the Consolidated Balance Sheets As of December 31, 2016 ($ in millions) Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets Derivatives $ 1,044 (374) (377) 293 Total assets 1,044 (374) (377) 293 Liabilities Derivatives 665 (374) (125) 166 Total liabilities $ 665 (374) (125) 166 (a) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements. (b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related d erivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. Gross Amount Gross Amounts Not Offset in the Recognized in the Consolidated Balance Sheets As of December 31, 2015 ($ in millions) Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets Derivatives $ 1,575 (512) (627) 436 Total assets 1,575 (512) (627) 436 Liabilities Derivatives 938 (512) (173) 253 Total liabilities $ 938 (512) (173) 253 Amount does not include the stock warrant associated with Vantiv Holding, LLC and IRLCs because these instruments are not subject to master netting or similar arrangement s . Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets | |
Other Assets Disclosure | The following table provides the components of other assets included in the Consolidated Balance Sheets as of December 31: ($ in millions) 2016 2015 Accounts receivable and drafts-in-process $ 2,158 1,653 Partnership investments 1,689 1,756 Bank owned life insurance 1,681 1,651 Derivative instruments 1,057 1,852 Investment in Vantiv Holding, LLC 414 360 Accrued interest and fees receivable 350 329 Vantiv, Inc. TRA put/call receivable 165 - OREO and other repossessed personal property 84 155 Prepaid expenses 83 101 Other 163 108 (a) Total other assets $ 7,844 7,965 (a) a) Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $ 34 of debt issuance costs from other assets to long-term debt. For further information, refer to Note 1 . |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Short-Term Borrowings | |
Summary of Short-Term Borrowings and Weighted-Average Rates | The following table summarizes short-term borrowings and weighted-average rates: 2016 2015 ($ in millions) Amount Rate Amount Rate As of December 31: Federal funds purchased $ 132 0.61 % $ 151 0.30 % Other short-term borrowings 3,535 0.54 1,507 0.11 Average for the years ended December 31: Federal funds purchased $ 506 0.39 % $ 920 0.13 % Other short-term borrowings 2,845 0.36 1,721 0.12 Maximum month-end balance for the years ended December 31: Federal funds purchased $ 739 $ 200 Other short-term borrowings 6,374 4,904 |
Summary of Other Short-Term Borrowings | The following table presents a summary of the Bancorp's other short-term borrowings as of December 31: ($ in millions) 2016 2015 FHLB advances $ 2,500 - Securities sold under repurchase agreements 661 925 Derivative collateral 374 582 Total other short-term borrowings $ 3,535 1,507 |
Summary of Securities Sold Under Repurchase Agreements by Type | The following table summarizes the Bancorp's securities sold under repurchase agreements by the type of collateral securing the borrowing and remaining contractual maturity as of December 31: 2016 2015 ($ in millions) Amount Remaining Contractual Maturity Amount Remaining Contractual Maturity Type of Collateral: Agency residential mortgage-backed securities $ 661 Overnight $ 646 Overnight U.S. Treasury and federal agencies securities - Overnight 279 Overnight Total securities sold under repurchase agreements $ 661 $ 925 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-Term Debt | |
Summary of the Bancorp's Long-Term Borrowings | The following table is a summary of the Bancorp’s long-term borrowings at December 31: ($ in millions) Maturity Interest Rate 2016 2015 (d) Parent Company Senior: Fixed-rate notes 2016 3.625% $ - 1,000 Fixed-rate notes 2019 2.30% 499 498 Fixed-rate notes 2020 2.875% 1,096 1,094 Fixed-rate notes 2022 3.50% 497 496 Subordinated: (a) Floating-rate notes (c) 2016 0.99% - 250 Fixed-rate notes 2017 5.45% 501 520 Fixed-rate notes 2018 4.50% 519 532 Fixed-rate notes 2024 4.30% 746 746 Fixed-rate notes 2038 8.25% 1,312 1,320 Subsidiaries Senior: Fixed-rate notes 2016 1.15% - 999 Fixed-rate notes 2016 0.90% - 400 Floating-rate notes (c) 2016 0.87% - 749 Floating-rate notes (c) 2016 0.82% - 300 Fixed-rate notes 2017 1.35% 650 652 Fixed-rate notes 2018 2.15% 997 996 Fixed-rate notes 2018 1.45% 598 597 Floating-rate notes (c) 2018 1.82% 250 250 Fixed-rate notes 2019 2.375% 849 848 Fixed-rate notes 2019 2.30% 748 - Fixed-rate notes 2019 1.625% 737 - Floating-rate notes (c) 2019 1.59% 249 - Fixed-rate notes 2021 2.25% 1,246 - Fixed-rate notes 2021 2.875% 845 844 Subordinated: (a) Fixed-rate bank notes 2026 3.85% 746 - Junior subordinated: (b) Floating-rate debentures (c) 2035 2.38% - 2.65% 52 52 FHLB advances 2017 - 2041 0.05% - 6.87% 33 37 Notes associated with consolidated VIEs: Automobile loan securitizations: Fixed-rate notes 2018 - 2022 0.68% - 1.79% 1,061 2,301 Floating-rate notes (c) 2018 1.25% 33 186 Other 2017 - 2039 Varies 124 143 Total $ 14,388 15,810 In aggregate, $ 2.7 billion and $ 2.4 billion qualifies as Tier II capital for regulatory capital purposes as of December, 31 2016 and 2015 , respectively. Under the Basel III Final Rule transition provisions, $ 0 and $ 13 qualified as Tier I capital as of December 31, 2016 and 2015 , respectively, while the remaining amounts as of December 31, 2016 and 2015 qualify as Tier II capital. Refer to Note 28 for further information . These rates reflect the floating rates as of December 31, 2016 . Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $ 34 of debt issuance costs from other assets to long-term debt. For furthe r information refer to Note 1. |
Schedule Of Long Term Debt Maturities | The Bancorp pays down long-term debt in accordance with contractual terms over maturity periods summarized in the above table. The aggregate annual maturities of long-term debt obligations (based on final maturit y dates) as of December 31, 2016 a re presented in the following tabl e: ($ in millions) Parent Subsidiaries Total 2017 $ 501 655 1,156 2018 519 2,124 2,643 2019 499 2,782 3,281 2020 1,096 547 1,643 2021 - 2,196 2,196 Thereafter 2,555 914 3,469 Total $ 5,170 9,218 14,388 |
Commitments, Contingent Liabi53
Commitments, Contingent Liabilities and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments, Contingent Liabilities and Guarantees | |
Summary of Significant Commitments | The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of December 31: ($ in millions) 2016 2015 Commitments to extend credit $ 67,909 66,884 Letters of credit 2,583 3,055 Forward contracts related to residential mortgage loans held for sale 1,823 1,330 Noncancelable operating lease obligations 576 635 Capital commitments for private equity investments 59 60 Purchase obligations 57 60 Capital expenditures 29 30 Capital lease obligations 19 27 |
Credit Risk Associated With Commitments | Risk ratings under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2016 2015 Pass $ 66,802 65,645 Special mention 338 647 Substandard 753 592 Doubtful 16 - Total commitments to extend credit $ 67,909 66,884 |
Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party | Letters of credit Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of December 31, 2016: ($ in millions) Less than 1 year (a) $ 1,387 1 - 5 years (a) 1,164 Over 5 years 32 Total letters of credit $ 2,583 (a) Includes $ 18 and $ 3 issue d on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively. |
Credit Risk associated with Letters of Credit | Risk ratings under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2016 2015 Pass $ 2,134 2,606 Special mention 98 130 Substandard 290 258 Doubtful 61 61 Total letters of credit $ 2,583 3,055 |
Activity in Reserve for Representation and Warranty Provisions | The following table summarizes activity in the reserve for representation and warranty provisions for the years ended December 31: ($ in millions) 2016 2015 Balance, beginning of period $ 25 35 Net reductions to the reserve (10) (3) Losses charged against the reserve (2) (7) Balance, end of period $ 13 25 |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The following tables provide a rollforward of unresolved claims by claimant type for the years ended December 31: GSE Private Label 2016 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 16 $ 4 2 $ - New demands 309 22 4 - Loan paydowns/payoffs (8) (1) - - Resolved demands (304) (23) (6) - Balance, end of period 13 $ 2 - $ - GSE Private Label 2015 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 37 $ 6 1 $ 1 New demands 436 33 261 42 Loan paydowns/payoffs (29) (2) - - Resolved demands (428) (33) (260) (43) Balance, end of period 16 $ 4 2 $ - |
Visa Funding and Bancorp Cash Payments | Visa Bancorp Cash Period ($ in millions) Funding Amount Payment Amount Q2 2010 $ 500 20 Q4 2010 800 35 Q2 2011 400 19 Q1 2012 1,565 75 Q3 2012 150 6 Q3 2014 450 18 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions | |
Summary of the Bancorp's Activities with its Principal Shareholders, Directors and Executives | The following table summarizes the Bancorp’s lending activities with its principal shareholders, directors, executives and their related interests at December 31: ($ in millions) 2016 2015 Commitments to lend, net of participations: Directors and their affiliated companies $ 618 831 Executive officers 4 5 Total $ 622 836 Outstanding balance on loans, net of participations and undrawn commitments $ 54 97 |
Summary Vantiv Holding, LLC Sales Transactions | The following table provides a summary of the sales transactions that impacted the Bancorp's ownership interest in Vantiv Holding, LLC after the initial IPO: Ownership Percentage Sold Gain on Sale Remaining Ownership Percentage (a) ($ in millions) Q4 2012 6 % $ 157 33 % Q2 2013 5 242 28 Q3 2013 3 85 25 Q2 2014 3 125 23 Q4 2015 5 331 18 (a) The Bancorp’s remaining investment in Vantiv Holding, LLC of $ 414 as of December 31, 201 6 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. |
Summary of Estimated Cash Flows to be Received from the TRA | The following table provides the estimated cash flows to be received as of December 31, 2016 associated with the TRA for the years ending December 31, 2017 and thereafter: Cash Flows to be Received From Put/Call Option Exercises (Fixed Amounts) (b) Estimated Cash Flows to be Received not Subject to Put/Call Option (a) ($ in millions) 2017 $ 63 33 2018 108 42 2019 - 8 2020 - 8 2021 - 8 2022 - 8 2023 - 9 2024 - 9 2025 - 9 2026 - 10 Thereafter - 102 Total $ 171 246 (a) The 2017 cash flow of $33 has been agreed upon with Vantiv, Inc. for settlement in January 2017 and was recognized as a gain in noninterest income during the fourth quarter of 2016. The remaining estimated cash flows in this column (which include TRA benefits associated with the net exercise of the warrant and the subsequent exchange of Vantiv Holding units in the fourth quarter of 2016) will be recognized in future periods when the related uncertainties are resolved. (b) As part of the agreement the Banco rp entered into with Vantiv, Inc. on July 27, 2016, Vantiv, Inc. may be obligated to pay a total of approximately $171 to the Bancorp to terminate certain remaining TRA cash flows, totaling an estimated $394, upon the exercise of certain call options by Va ntiv, Inc. or cert ain put options by the Bancorp . |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Applicable Income Taxes Included in the Consolidated Statements Of Income | The Bancorp and its subsidiaries file a consolidated federal income tax return. The following is a summary of applicable income taxes included in the Consolidated Statements of Income for the years ended December 31: ($ in millions) 2016 2015 2014 Current income tax expense: U.S. Federal income taxes $ 598 662 424 State and local income taxes 55 55 34 Foreign income taxes - 13 8 Total current income tax expense 653 730 466 Deferred income tax (benefit) expense: U.S. Federal income taxes (133) (78) 71 State and local income taxes (14) 6 9 Foreign income taxes (1) 1 (1) Total deferred income tax (benefit) expense (148) (71) 79 Applicable income tax expense $ 505 659 545 |
Reconciliation Between the Statutory U.S. Income Tax Rate and the Bancorp's Effective Tax Rate | The following is a reconciliation between the statutory U.S. Federal income tax rate and the Bancorp’s effective tax rate for the years ended December 31: 2016 2015 2014 Statutory tax rate 35.0 % 35.0 35.0 Increase (decrease) resulting from: State taxes, net of federal benefit 1.3 1.7 1.4 Tax-exempt income (2.7) (1.7) (1.4) Low-income housing tax credits (7.9) (6.6) (7.0) Other tax credits (0.9) (0.9) (1.1) Other, net (0.4) 0.3 - Effective tax rate 24.4 % 27.8 26.9 |
Reconciliation of the Beginning and Ending Amounts of the Bancorp's Unrecognized Tax Benefits | The following table provides a reconciliation of the beginning and ending amounts of the Bancorp’s unrecognized tax benefits: ($ in millions) 2016 2015 2014 Unrecognized tax benefits at January 1 $ 13 11 7 Gross increases for tax positions taken during prior period 9 1 2 Gross decreases for tax positions taken during prior period - - - Gross increases for tax positions taken during current period 2 2 2 Settlements with taxing authorities - - - Lapse of applicable statute of limitations - (1) - Unrecognized tax benefits at December 31 (a) $ 24 13 11 (a ) Amounts represent unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. |
Deferred Income Taxes Included in Other Assets in the Consolidated Balance Sheets | Deferred income taxes are comprised of the following items at December 31: ($ in millions) 2016 2015 Deferred tax assets: Allowance for loan and lease losses $ 439 445 Deferred compensation 122 118 Reserves 57 61 Reserve for unfunded commitments 56 48 State net operating loss carryforwards 9 10 Other 223 194 Total deferred tax assets $ 906 876 Deferred tax liabilities: Lease financing $ 940 935 Investments in joint ventures and partnership interests 219 248 MSRs and related economic hedges 202 245 State deferred taxes 64 79 Bank premises and equipment 61 53 Other comprehensive income 34 106 Other 173 218 Total deferred tax liabilities $ 1,693 1,884 Total net deferred tax liability $ (787) (1,008) |
Retirement and Benefit Plans (T
Retirement and Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Retirement and Benefit Plans | |
Defined Benefit Retirement Plans with an Underfunded Status | The following table summarizes the Plan as of and for the years ended December 31: ($ in millions) 2016 2015 Fair value of plan assets at January 1 $ 166 195 Actual return on assets 11 (6) Contributions 20 4 Settlement (15) (17) Benefits paid (10) (10) Fair value of plan assets at December 31 $ 172 166 Projected benefit obligation at January 1 $ 220 247 Interest cost 9 9 Settlement (15) (17) Actuarial (gain) loss 2 (9) Benefits paid (10) (10) Projected benefit obligation at December 31 $ 206 220 Underfunded projected benefit obligation at December 31 $ (34) (54) Accumulated benefit obligation at December 31 (a) $ 206 220 (a) Since the Plan’s benefits are frozen , the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2016 and 2015 . |
Net Periodic Benefit Cost and Other Changes In Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | The following table summarizes net periodic benefit cost and other changes in the Plan's assets and benefit obligations recognized in OCI for the years ended December 31: ($ in millions) 2016 2015 2014 Components of net periodic benefit cost: Interest cost $ 9 9 10 Expected return on assets (11) (13) (14) Amortization of net actuarial loss 11 10 7 Settlement 7 7 5 Net periodic benefit cost $ 16 13 8 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial loss $ 2 9 37 Amortization of net actuarial loss (11) (10) (7) Settlement (7) (7) (5) Total recognized in other comprehensive income (16) (8) 25 Total recognized in net periodic benefit cost and other comprehensive income $ - 5 33 |
Plan Assets Measured at Fair Value on a Recurring Basis | The following tables summarize plan assets measured at fair value on a recurring basis as of December 31: Fair Value Measurements Using (a) 2016 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Equity securities (b) $ 56 - - 56 Mutual and exchange-traded funds: Money market funds 6 - - 6 International funds - 31 - 31 Domestic funds - 39 - 39 Debt funds - 5 - 5 Alternative strategies 1 9 - 10 Commodity funds 6 - - 6 Total mutual and exchange-traded funds $ 13 84 - 97 Debt securities: U.S. Treasury and federal agencies securities 7 1 - 8 Mortgage-backed securities: Agency residential mortgage-backed securities - 1 - 1 Agency commercial mortgage-backed securities - 2 - 2 Asset-backed securities and other debt securities (c) - 8 - 8 Total debt securities $ 7 12 - 19 Total plan assets $ 76 96 - 172 For further information on fair value hierarchy levels, refer to Note 1. Includes holdings in Bancorp common stock. Includes corporate bonds. Fair Value Measurements Using (a) 2015 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Equity securities (b) $ 52 - - 52 Mutual and exchange-traded funds: Money market funds 15 - - 15 International funds - 35 - 35 Domestic funds - 31 - 31 Debt funds - 3 - 3 Alternative strategies - 11 - 11 Commodity funds 6 - - 6 Total mutual and exchange-traded funds $ 21 80 - 101 Debt securities: U.S. Treasury and federal agencies securities 2 2 - 4 Mortgage-backed securities: Agency residential mortgage-backed securities - 3 - 3 Agency commercial mortgage-backed securities - 2 - 2 Non-agency commercial mortgage-backed securities - 1 - 1 Asset-backed securities and other debt securities (c) - 3 - 3 Total debt securities $ 2 11 - 13 Total plan assets $ 75 91 - 166 For further information on fair value hierarchy levels, refer to Note 1 . Includes holdings in Bancorp common stock. Includes corporate bonds. |
Plan Assumptions | The following table summarizes the weighted-average plan assumptions for the years ended December 31: 2016 2015 2014 For measuring benefit obligations at year end: Discount rate 3.97 % 4.16 3.82 Rate of compensation increase (a) N/A N/A N/A Expected return on plan assets 7.00 7.00 7.25 For measuring net periodic benefit cost: Discount rate 4.16 3.82 4.72 Rate of compensation increase (a) N/A N/A N/A Expected return on plan assets 7.00 7.00 7.25 (a) Since the Plan’s benefits were frozen , except for grandfathered employees, the rate of compensation increase is no longer applicable beginning in 2014 since minimal grandfathered employees are still accruing benefits. |
Weighted Average Allocation of Plan Assets | The following table provides the Bancorp’s targeted and actual weighted-average asset allocations by asset category for the years ended December 31: Targeted Range (b) 2016 2015 Equity securities 73 % 69 Bancorp common stock 2 2 Total equity securities (a) 60-90 % 75 71 Fixed-income securities 5-25 14 16 Alternative strategies 3-11 6 7 Cash 0-13 5 6 Total 100 % 100 Includes mutual and exchange- traded funds . These reflect the targeted ranges for both the years ended December 31, 2016 and 2015 . |
Accumulated Other Comprehensi57
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income | |
Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income | The tables below presents the activity of the components of OCI and AOCI for the years ended December 31: Total Other Total Accumulated Other Comprehensive Income Comprehensive Income Pre-tax Tax Net Beginning Net Ending ($ in millions) Activity Effect Activity Balance Activity Balance 2016 Unrealized holding losses on available-for-sale securities arising during the year $ (196) 66 (130) Reclassification adjustment for net gains on available-for-sale securities included in net income (11) 4 (7) Net unrealized gains on available-for-sale securities (207) 70 (137) 238 (137) 101 Unrealized holding gains on cash flow hedge derivatives arising during the year 30 (11) 19 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (48) 17 (31) Net unrealized gains on cash flow hedge derivatives (18) 6 (12) 22 (12) 10 Net actuarial loss arising during the year (2) 1 (1) Reclassification of amounts to net periodic benefit costs 18 (6) 12 Defined benefit pension plans, net 16 (5) 11 (63) 11 (52) Total $ (209) 71 (138) 197 (138) 59 Total Other Total Accumulated Other Comprehensive Income Comprehensive Income Pre-tax Tax Net Beginning Net Ending ($ in millions) Activity Effect Activity Balance Activity Balance 2015 Unrealized holding losses on available-for-sale securities arising during the year $ (349) 122 (227) Reclassification adjustment for net gains on available-for-sale securities included in net income (16) 6 (10) Net unrealized gains on available-for-sale securities (365) 128 (237) 475 (237) 238 Unrealized holding gains on cash flow hedge derivatives arising during the year 74 (26) 48 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (75) 26 (49) Net unrealized gains on cash flow hedge derivatives (1) - (1) 23 (1) 22 Net actuarial loss arising during the year (9) 4 (5) Reclassification of amounts to net periodic benefit costs 17 (6) 11 Defined benefit pension plans, net 8 (2) 6 (69) 6 (63) Total $ (358) 126 (232) 429 (232) 197 Total Other Total Accumulated Other Comprehensive Income Comprehensive Income Pre-tax Tax Net Beginning Net Ending ($ in millions) Activity Effect Activity Balance Activity Balance 2014 Unrealized holding gains on available-for-sale securities arising during the year $ 580 (202) 378 Reclassification adjustment for net gains on available-for-sale securities included in net income (37) 13 (24) Net unrealized gains on available-for-sale securities 543 (189) 354 121 354 475 Unrealized holding gains on cash flow hedge derivatives arising during the year 60 (21) 39 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (44) 15 (29) Net unrealized gains on cash flow hedge derivatives 16 (6) 10 13 10 23 Net actuarial loss arising during the year (37) 12 (25) Reclassification of amounts to net periodic benefit costs 12 (4) 8 Defined benefit pension plans, net (25) 8 (17) (52) (17) (69) Total $ 534 (187) 347 82 347 429 |
Reclassification Out of Accumulated Other Comprehensive Income to Net Income | The table below presents reclassifications out of AOCI for the years ended December 31: Consolidated Statements of Components of AOCI: ($ in millions) Income Caption 2016 2015 2014 Net unrealized gains on available-for-sale securities: (b) Net gains included in net income Securities gains, net $ 11 16 37 Income before income taxes 11 16 37 Applicable income tax expense (4) (6) (13) Net income 7 10 24 Net unrealized gains on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases 48 75 44 Income before income taxes 48 75 44 Applicable income tax expense (17) (26) (15) Net income 31 49 29 Net periodic benefit costs: (b) Amortization of net actuarial loss Employee benefits expense (a) (11) (10) (7) Settlements Employee benefits expense (a) (7) (7) (5) Income before income taxes (18) (17) (12) Applicable income tax expense 6 6 4 Net income (12) (11) (8) Total reclassifications for the period Net income $ 26 48 45 This AOCI component is included in the computation of net periodi c benefit cost. Refer to Note 20 f or information on the computation of net periodic benefit cost. Amounts in parentheses indicate reductions to net income. |
Common, Preferred and Treasur58
Common, Preferred and Treasury Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Common, Preferred and Treasury Stock | |
Share Activity Within Common, Preferred and Treasury Stock | The table presents a summary of the share activity within common, preferred and treasury stock for the years ended: Common Stock Preferred Stock Treasury Stock ($ in millions, except share data) Value Shares Value Shares Value Shares December 31, 2013 $ 2,051 923,892,581 $ 1,034 42,000 $ (1,295) 68,586,836 Shares acquired for treasury - - - - (726) 34,799,873 Issuance of preferred shares, Series J - - 297 12,000 - - Impact of stock transactions under stock compensation plans, net - - - - 47 (3,493,671) Other - - - - 2 (47,409) December 31, 2014 $ 2,051 923,892,581 $ 1,331 54,000 $ (1,972) 99,845,629 Shares acquired for treasury - - - - (847) 42,607,855 Impact of stock transactions under stock compensation plans, net - - - - 52 (3,593,406) Other - - - - 3 (47,811) December 31, 2015 $ 2,051 923,892,581 $ 1,331 54,000 $ (2,764) 138,812,267 Shares acquired for treasury - - - - (668) 34,633,221 Impact of stock transactions under stock compensation plans, net - - - - (4) 42,357 Other - - - - 3 (74,563) December 31, 2016 $ 2,051 923,892,581 $ 1,331 54,000 $ (3,433) 173,413,282 |
Summary of the Bancorp's Accelerated Share Repurchase Transactions | The following table presents a summary of the Bancorp's accelerated share repurchase transactions that were entered into or settled during the years ended December 31, 2015 and 2016: Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Repurchase Date Amount ($ in millions) Settlement Date October 23, 2014 180 8,337,875 794,245 9,132,120 January 8, 2015 January 27, 2015 180 8,542,713 1,103,744 9,646,457 April 28, 2015 April 30, 2015 155 6,704,835 842,655 7,547,490 July 31, 2015 August 3, 2015 150 6,039,792 1,346,314 7,386,106 September 3, 2015 September 9, 2015 150 6,538,462 1,446,613 7,985,075 October 23, 2015 December 14, 2015 215 9,248,482 1,782,477 11,030,959 January 14, 2016 March 4, 2016 240 12,623,762 1,868,379 14,492,141 April 11, 2016 August 5, 2016 240 10,979,548 1,099,205 12,078,753 November 7, 2016 December 20, 2016 155 4,843,750 1,044,362 5,888,112 February 6, 2017 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation | |
Number of Shares to be issued upon Exercise of Outstanding Stock-Based Awards and Remaining Shares Available for Future Issuance under all Equity Compensation Plans | The following table provides detail of the number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance under all of the Bancorp’s equity compensation plans approved by shareholders as of December 31, 2016 : Plan Category (shares in thousands) Number of Shares to be Issued Upon Exercise Weighted-Average Exercise Price Per Share Shares Available for Future Issuance Equity compensation plans 18,478 (a)(f) SARs (b) N/A (a) RSAs 4,638 N/A (a) RSUs 5,086 N/A (a) Stock options (c) 7 $32.26 (a) PSAs (d) N/A (a) Employee stock purchase plan 6,129 (e) Total shares 9,731 24,607 Under the 2014 Incentive Compensation Plan, 36 million shares were authorized for issuance as SARs, RSAs, RSUs, stock options, performance share or unit awards, dividend or dividend equivalent rights and stock awards. The number of shares to be issued upon exercise will be determined at exercise based on the difference between the gra nt price and the market price on the date of exercise and the calculation of taxes owed on the exercise . Excludes 0. 02 million outstanding options awarded under plans assum ed by the Bancorp in connection with certain mergers and acquisitions. The Bancorp has not made any awards under these plans and will make no additional awards under these plans. The weighted-average exercise price of the se outstanding options is $ 14.05 pe r share . The number of shares to be issued is dependent upon the Bancorp achieving certain predefined performance targets and ranges from zero shares to approximately 2 million shares. Represents remaining shares of Fifth Third common stock under the Bancorp’s 1993 Stock Purchase Plan, as amended and restated, including an additional 1.5 million shares approved by shareholders on March 28, 2007 and an additional 12 million shares approved by shareholders on April 21, 2009 . Inclu des 4 million shares for Full Value Awards . |
Schedule of Share-based Payment Award, Stock Appreciation Rights, Valuation Assumptions | The weighted-average assumptions were as follows for the years ended December 31: 2016 2015 2014 Expected life (in years) 6 6 6 Expected volatility 37 % 35 35 Expected dividend yield 3.1 2.7 2.4 Risk-free interest rate 1.5 1.6 2.0 |
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity | 2016 2015 2014 Weighted- Weighted- Weighted- Number of SARs Average Grant Number of SARs Average Grant Number of SARs Average Grant SARs (in thousands, except per share data) Price Per Share Price Per Share Price Per Share Outstanding at January 1 44,129 $ 19.14 45,590 $ 19.79 48,599 $ 19.98 Granted 6,379 17.68 5,219 18.99 4,526 21.63 Exercised (6,291) 14.47 (3,242) 13.59 (4,408) 13.63 Forfeited or expired (4,176) 32.02 (3,438) 32.96 (3,127) 34.19 Outstanding at December 31 40,041 $ 18.30 44,129 $ 19.14 45,590 $ 19.79 Exercisable at December 31 26,898 $ 18.28 29,721 $ 19.71 27,950 $ 21.71 |
Outstanding and Exercisable SARs by Grant Price | The following table summarizes outstanding and exercisable SARs by grant price per share at December 31, 2016: Outstanding SARs Exercisable SARs Weighted- Weighted- Average Average Weighted- Remaining Weighted- Remaining Number of Average Grant Contractual Life Number of Average Grant Contractual Life SARs (in thousands, except per share data) SARs Price Per Share (in years) SARs Price Per Share (in years) Under $10.00 2,195 $ 3.98 2.3 2,195 $ 3.98 2.3 $10.01-$20.00 30,446 16.36 6.1 19,125 15.51 4.7 $20.01-$30.00 3,513 21.64 7.3 1,691 21.65 7.2 $30.01-$40.00 3,305 38.27 0.3 3,305 38.27 0.3 Over $40.00 582 40.11 0.3 582 40.11 0.3 All SARs 40,041 $ 18.30 5.4 26,898 $ 18.28 4.0 |
Schedule of Share-Based Compensation, RSAs | 2016 2015 2014 Weighted-Average Weighted-Average Weighted-Average Grant-Date Grant-Date Grant-Date Fair Value Fair Value Fair Value RSAs (in thousands, except per share data) Shares Per Share Shares Per Share Shares Per Share Outstanding at January 1 8,281 $ 18.88 7,253 $ 17.98 6,710 $ 15.11 Granted 3 20.65 4,250 19.11 3,264 21.61 Released (3,090) 17.92 (2,580) 16.86 (2,183) 14.84 Forfeited (556) 19.20 (642) 18.64 (538) 16.73 Outstanding at December 31 4,638 $ 19.44 8,281 $ 18.88 7,253 $ 17.98 |
Unvested RSAs by Grant-Date Fair Value | The following table summarizes outstanding RSAs by grant-date fair value at December 31, 2016: Outstanding RSAs Weighted-Average Remaining Contractual Life RSAs (in thousands) Shares (in years) $15.01-$20.00 3,187 1.2 Over $20.00 1,451 1.0 All RSAs 4,638 1.1 |
Schedule of Share-Based Compensation, RSUs | 2016 2015 Weighted-Average Weighted-Average Grant-Date Grant-Date Fair Value Fair Value RSUs (in thousands, except per unit data) Units Per Unit Units Per Unit Outstanding at January 1 371 $ 19.56 - $ N/A Granted 5,029 17.75 377 19.58 Released (79) 19.76 (5) 21.63 Forfeited (235) 17.89 (1) 19.46 Outstanding at December 31 5,086 $ 17.84 371 $ 19.56 |
Unvested RSUs by Grant-Date Fair Value | The following table summarizes outstanding RSUs by grant-date fair value at December 31, 2016: Outstanding RSUs Weighted-Average Remaining Contractual Life RSUs (in thousands) Units (in years) $10.01-$15.00 638 1.1 $15.01-$20.00 4,265 1.8 $20.01-$25.00 159 2.0 $25.01-$30.00 24 2.1 All RSUs 5,086 1.7 |
Schedule of Share-based Compensation, Stock Options, Activity | 2016 2015 2014 Weighted-Average Weighted-Average Weighted-Average Number of Exercise Price Number of Exercise Price Number of Exercise Price Stock Options (in thousands, except per share data) Options Per Share Options Per Share Options Per Share Outstanding at January 1 119 $ 14.97 265 $ 14.25 546 $ 20.72 Exercised (94) 13.86 (126) 13.67 (115) 12.84 Forfeited or expired - - (20) 13.59 (166) 36.42 Outstanding at December 31 25 $ 19.17 119 $ 14.97 265 $ 14.25 Exercisable at December 31 25 $ 19.17 119 $ 14.97 265 $ 14.25 |
Outstanding and Exercisable Stock Options by Exercise Price | The following table summarizes outstanding and exercisable stock options by exercise price per share at December 31, 2016: Number of Options Weighted-Average Weighted-Average Remaining Exercise Price Contractual Life Stock Options (in thousands, except per share data) Per Share (in years) Under $10.00 1 $ 8.59 2.0 $10.01-$20.00 18 14.05 0.1 $20.01-$30.00 1 24.41 1.0 $30.01-$40.00 - - - Over $40.00 5 40.98 - All stock options 25 $ 19.17 0.2 |
Other Noninterest Income and 60
Other Noninterest Income and Other Noninterest Expense (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Noninterest Income | |
Other Noninterest Income and Other Noninterest Expense | The following table presents the major components of other noninterest income and other noninterest expense for the years ended December 31: ($ in millions) 2016 2015 2014 Other noninterest income: Income from the TRA associated with Vantiv, Inc. $ 313 80 23 Operating lease income 102 89 84 Equity method income from interest in Vantiv Holding, LLC 66 63 48 Valuation adjustments on the warrant associated with sale of Vantiv Holding, LLC 64 236 31 BOLI income 53 48 44 Cardholder fees 46 43 45 Consumer loan and lease fees 23 23 25 Banking center income 20 21 30 Gain on sale of certain retail branch operations 19 - - Private equity investment income 11 28 27 Insurance income 11 14 13 Net gains on loan sales 10 38 - Gain on sale and exercise of the warrant associated with Vantiv Holding, LLC 9 89 - Gain on sale of Vantiv, Inc. shares - 331 125 Loss on swap associated with the sale of Visa, Inc. Class B Shares (56) (37) (38) Net losses on disposition and impairment of bank premises and equipment (13) (101) (19) Other, net 10 14 12 Total other noninterest income $ 688 979 450 Other noninterest expense: Impairment on affordable housing investments $ 168 145 135 FDIC insurance and other taxes 126 99 89 Loan and lease 110 118 119 Marketing 104 110 98 Operating lease 86 74 67 Losses and adjustments 73 55 188 Professional services fees 61 70 72 Data processing 51 45 41 Postal and courier 46 45 47 Travel 45 54 52 Recruitment and education 37 33 28 Provision for (benefit from) the reserve for unfunded commitments 23 4 (27) Donations 23 29 18 Insurance 15 17 16 Supplies 14 16 15 Other, net 187 191 181 Total other noninterest expense $ 1,169 1,105 1,139 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share | |
Schedule Of Earnings Per Share Basic And Diluted [Table Text Block] | The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the years ended December 31: 2016 2015 2014 Average Per Share Average Per Share Average Per Share ($ in millions, except per share data) Income Shares Amount Income Shares Amount Income Shares Amount Earnings per Share: Net income attributable to Bancorp $ 1,564 1,712 1,481 Dividends on preferred stock 75 75 67 Net income available to common shareholders 1,489 1,637 1,414 Less: Income allocated to participating securities 15 15 12 Net income allocated to common shareholders $ 1,474 757 1.95 1,622 799 2.03 1,402 833 1.68 Earnings per Diluted Share: Net income available to common shareholders $ 1,489 1,637 1,414 Effect of dilutive securities: Stock-based awards - 7 - 9 - 10 Net income available to common shareholders 1,489 1,637 1,414 plus assumed conversions Less: Income allocated to participating securities 15 15 12 Net income allocated to common shareholders plus assumed conversions $ 1,474 764 1.93 1,622 808 2.01 1,402 843 1.66 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables summarize assets and liabilities measured at fair value on a recurring basis, including residential mortgage loans held for sale for which the Bancorp has elected the fair value option as of: Fair Value Measurements Using December 31, 2016 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Assets: Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 471 78 - 549 Obligations of states and political subdivisions securities - 45 - 45 Mortgage-backed securities: Agency residential mortgage-backed securities - 15,608 - 15,608 Agency commercial mortgage-backed securities - 9,055 - 9,055 Non-agency commercial mortgage-backed securities - 3,112 - 3,112 Asset-backed securities and other debt securities - 2,116 - 2,116 Equity securities (a) 90 1 - 91 Available-for-sale and other securities (a) 561 30,015 - 30,576 Trading securities: U.S. Treasury and federal agencies securities - 23 - 23 Obligations of states and political subdivisions securities - 39 - 39 Mortgage-backed securities: Agency residential mortgage-backed securities - 8 - 8 Asset-backed securities and other debt securities - 15 - 15 Equity securities 325 - - 325 Trading securities 325 85 - 410 Residential mortgage loans held for sale - 686 - 686 Residential mortgage loans (b) - - 143 143 Derivative assets: Interest rate contracts 20 715 13 748 Foreign exchange contracts - 202 - 202 Commodity contracts 22 85 - 107 Derivative assets (d) 42 1,002 13 1,057 Total assets $ 928 31,788 156 32,872 Liabilities: Derivative liabilities: Interest rate contracts $ 3 257 5 265 Foreign exchange contracts - 204 - 204 Equity contracts - - 91 91 Commodity contracts 27 79 - 106 Derivative liabilities (e) 30 540 96 666 Short positions (e) 17 4 - 21 Total liabilities $ 47 544 96 687 Excludes FHLB, FRB and DTCC restricted stock totaling $ 248 , $ 358 and $1 , respectively, at December 31, 2016 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . During the year ended December 31, 2016 , no assets or liabilities were transferred between Level 1 and Level 2 . Included in other assets in the Consolidated Balance Sheets. Included in other liabilities in the Consolidated Balance Sheets. Fair Value Measurements Using December 31, 2015 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Assets: Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 100 1,087 - 1,187 Obligations of states and political subdivisions securities - 52 - 52 Mortgage-backed securities: Agency residential mortgage-backed securities - 15,081 - 15,081 Agency commercial mortgage-backed securities - 7,862 - 7,862 Non-agency commercial mortgage-backed securities - 2,804 - 2,804 Asset-backed securities and other debt securities - 1,355 - 1,355 Equity securities (a) 98 1 - 99 Available-for-sale and other securities (a) 198 28,242 - 28,440 Trading securities: U.S. Treasury and federal agencies securities - 19 - 19 Obligations of states and political subdivisions securities - 9 - 9 Mortgage-backed securities: Agency residential mortgage-backed securities - 6 - 6 Asset-backed securities and other debt securities - 19 - 19 Equity securities 333 - - 333 Trading securities 333 53 - 386 Residential mortgage loans held for sale - 519 - 519 Residential mortgage loans (b) - - 167 167 Derivative assets: Interest rate contracts 3 892 15 910 Foreign exchange contracts - 386 - 386 Equity contracts - - 262 262 Commodity contracts 54 240 - 294 Derivative assets (d) 57 1,518 277 1,852 Total assets $ 588 30,332 444 31,364 Liabilities: Derivative liabilities: Interest rate contracts $ 1 257 3 261 Foreign exchange contracts - 340 - 340 Equity contracts - - 61 61 Commodity contracts 37 239 - 276 Derivative liabilities (e) 38 836 64 938 Short positions (e) 22 7 - 29 Total liabilities $ 60 843 64 967 Excludes FHLB, FRB and DTCC restricted stock totaling $ 248 , $ 355 and $1 , respectively, at December 31, 2015 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . During the year ended December 31, 2015 , no assets or liabilities were transferred between Level 1 and Level 2. Included in other assets in the Consolidated Balance Sheets. Included in other liabilities in the Consolidated Balance Sheet s. |
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Trading Mortgage Derivatives, Derivatives, Total For the year ended December 31, 2016 ($ in millions) Securities Loans Net (a) Net (a) Fair Value Balance, beginning of period $ - 167 12 201 380 Total gains (losses) (realized/unrealized): Included in earnings - (2) 115 17 130 Purchases - - (3) - (3) Sale and exercise of warrant - - - (334) (334) Settlements - (40) (116) 25 (131) Transfers into Level 3 (b) - 18 - - 18 Balance, end of period $ - 143 8 (91) 60 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2016 (c) $ - (2) 13 (56) (45) Net interest rate derivatives include derivative assets and liabilities of $ 13 and $ 5 , respectively, as of December 31, 2016 . Net equity derivatives include derivative assets and liabilities of $ 0 and $ 91 , respectively, as of December 31, 2016 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Trading Mortgage Derivatives, Derivatives, Total For the year ended December 31, 2015 ($ in millions) Securities Loans Net (a) Net (a) Fair Value Balance, beginning of period $ - 108 10 366 484 Total gains (realized/unrealized): Included in earnings - - 111 288 399 Purchases - - (2) - (2) Sale and exercise of warrant - - - (477) (477) Settlements - (28) (107) 24 (111) Transfers into Level 3 (b) - 87 - - 87 Balance, end of period $ - 167 12 201 380 The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2015 (c) $ - - 17 66 83 Net interest rate derivatives include derivative assets and liabilities of $ 15 and $ 3 , respect ively, as of December 31, 2015 . Net equity derivatives include derivative assets and liabilities of $ 262 and $ 61 , respectively, as of December 31, 2015 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Trading Mortgage Derivatives, Derivatives, Total For the year ended December 31, 2014 ($ in millions) Securities Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 1 92 8 336 437 Total gains (losses) (realized/unrealized): Included in earnings - 4 125 (7) 122 Purchases - - (1) - (1) Sales (1) - - - (1) Settlements - (17) (122) 37 (102) Transfers into Level 3 (b) - 29 - - 29 Balance, end of period $ - 108 10 366 484 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2014 (c) $ - 4 13 (7) 10 Net interest rate derivatives include derivative assets and liabilities of $ 12 and $ 2 , respectively, as of December 31, 2014 . Net equity derivatives include derivative assets and liabilities of $ 415 and $ 49 , respectively, as of December 31, 2014 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. |
Total Gains and Losses Included in Earnings for Assets and Liabilites Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Consolidated Statements of Income for the years ended December 31, 2016, 2015 and 2014 as follows: ($ in millions) 2016 2015 2014 Mortgage banking net revenue $ 112 110 127 Corporate banking revenue 1 1 2 Other noninterest income 17 288 (7) Total gains $ 130 399 122 The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at December 31, 2016, 2015 and 2014 were recorded in the Consolidated Statements of Income as follows: ($ in millions) 2016 2015 2014 Mortgage banking net revenue $ 10 16 16 Corporate banking revenue 1 1 1 Other noninterest income (56) 66 (7) Total (losses) gains $ (45) 83 10 |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of December 31, 2016 and 2015 and for which a nonrecurring fair value adjustment was recorded during the years ended December 31, 2016 and 2015, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period. Fair Value Measurements Using Total (Losses) Gains As of December 31, 2016 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2016 Commercial loans held for sale $ - - 5 5 (32) Commercial and industrial loans - - 412 412 (166) Commercial mortgage loans - - 15 15 (4) Commercial construction loans - - - - 2 Commercial leases - - 3 3 (3) MSRs - - 744 744 7 OREO - - 42 42 (17) Bank premises and equipment - - 28 28 (31) Operating lease equipment - - 37 37 (9) Private equity investments - - 60 60 (9) Total $ - - 1,346 1,346 (262) Fair Value Measurements Using Total (Losses) Gains As of December 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2015 Commercial loans held for sale $ - - 13 13 3 Residential mortgage loans held for sale - - 68 68 (2) Automobile loans held for sale - - 2 2 - Credit cards held for sale - - 4 4 (2) Commercial and industrial loans - - 344 344 (137) Commercial mortgage loans - - 103 103 (41) Commercial construction loans - - 6 6 (5) Residential mortgage loans - - 55 55 (1) MSRs - - 784 784 4 OREO - - 58 58 (24) Bank premises and equipment - - 83 83 (101) Operating lease equipment - - 42 42 (33) Private equity investments 13 13 (1) Total $ - - 1,575 1,575 (340) |
Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Inputs | The following tables present information as of December 31, 2016 and 2015 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured at fair value on a recurring basis: As of December 31, 2016 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted- Average Residential mortgage loans $ 143 Loss rate model Interest rate risk factor (11.5) - 13.8% 2.3% Credit risk factor 0 - 75.6% 1.4% IRLCs, net 12 Discounted cash flow Loan closing rates 23.8 - 99.5% 76.8% Swap associated with the sale of Visa, Inc. (91) Discounted cash flow Timing of the resolution 12/31/2018 - NM Class B Shares of the Covered Litigation 12/31/2022 As of December 31, 2015 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted- Average Residential mortgage loans $ 167 Loss rate model Interest rate risk factor (9.2) - 16.5% 3.1% Credit risk factor 0 - 80.5% 1.3% IRLCs, net 15 Discounted cash flow Loan closing rates 5.8 - 94.0% 76.3% Stock warrant associated with Vantiv Holding, LLC 262 Black-Scholes option- Expected term (years) 2.0 - 13.5 5.9 pricing model Expected volatility (a) 22.6 - 31.2% 25.9% Swap associated with the sale of Visa, Inc. (61) Discounted cash flow Timing of the resolution 12/31/2016 - NM Class B Shares of the Covered Litigation 3/31/2021 (a) Based o n historical and implied volatilities of Vantiv, Inc. and comparable companies assuming similar expected terms . The following tables present information as of December 31, 2016 and 2015 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets measured on a nonrecurring basis: As of December 31, 2016 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 5 Appraised value Appraised value NM NM Commercial and industrial loans 412 Appraised value Collateral value NM NM Commercial mortgage loans 15 Appraised value Collateral value NM NM Commercial construction loans - Appraised value Collateral value NM NM Commercial leases 3 Appraised value Appraised value NM NM MSRs 744 Discounted cash flow Prepayment speed 0.7 - 100% (Fixed) 10.2% (Adjustable) 25.3% OAS spread (bps) 100 - 1,515 (Fixed) 654 (Adjustable) 738 OREO 42 Appraised value Appraised value NM NM Bank premises and equipment 28 Appraised value Appraised value NM NM Operating lease equipment 37 Appraised value Appraised value NM NM Private equity investments 60 Liquidity discount applied Liquidity discount 5.0 - 37.5% 12.8% to fund's net asset value As of December 31, 2015 ($ in millions) Significant Unobservable Ranges of Financial Instrument Fair Value Valuation Technique Inputs Inputs Weighted-Average Commercial loans held for sale $ 13 Discounted cash flow Discount spread NM 4.4% Residential mortgage loans held for sale 68 Loss rate model Interest rate risk factor (7.5) - 0.1% (1.6%) Credit risk factor NM 0.1% Automobile loans held for sale 2 Discounted cash flow Discount spread NM 3.1% Credit cards held for sale 4 Comparable transactions Estimated sales proceeds from NM NM comparable transactions Commercial and industrial loans 344 Appraised value Collateral value NM NM Commercial mortgage loans 103 Appraised value Collateral value NM NM Commercial construction loans 6 Appraised value Collateral value NM NM Residential mortgage loans 55 Appraised value Appraised value NM NM MSRs 784 Discounted cash flow Prepayment speed 1.0 - 100% (Fixed) 11.8% (Adjustable) 27.0% OAS spread (bps) 364 - 1,515 (Fixed) 618 (Adjustable) 703 OREO 58 Appraised value Appraised value NM NM Bank premises and equipment 83 Appraised value Appraised value NM NM Operating lease equipment 42 Appraised value Appraised value NM NM Private equity investments 13 Liquidity discount applied Liquidity discount NM 18.0% to fund's net asset value |
Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance for Residential Mortgage Loans Measured at Fair Value | The following table summarizes the difference between the fair value and the principal balance for residential mortgage loans measured at fair value as of: Aggregate Aggregate Unpaid ($ in millions) Fair Value Principal Balance Difference December 31, 2016 Residential mortgage loans measured at fair value $ 829 823 6 Past due loans of 90 days or more 2 2 - Nonaccrual loans 1 1 - December 31, 2015 Residential mortgage loans measured at fair value $ 686 669 17 Past due loans of 90 days or more 2 2 - Nonaccrual loans 2 2 - |
Carrying Amounts and Estimated Fair Values for Certain Financial Instruments | The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis: Net Carrying Fair Value Measurements Using Total As of December 31, 2016 ($ in millions) Amount Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and due from banks $ 2,392 2,392 - - 2,392 Other securities 607 - 607 - 607 Held-to-maturity securities 26 - - 26 26 Other short-term investments 2,754 2,754 - - 2,754 Loans held for sale 65 - - 65 65 Portfolio loans and leases: Commercial and industrial loans 40,958 - - 41,976 41,976 Commercial mortgage loans 6,817 - - 6,735 6,735 Commercial construction loans 3,887 - - 3,853 3,853 Commercial leases 3,959 - - 3,651 3,651 Residential mortgage loans 14,812 - - 15,415 15,415 Home equity 7,637 - - 8,421 8,421 Automobile loans 9,941 - - 9,640 9,640 Credit card 2,135 - - 2,503 2,503 Other consumer loans and leases 668 - - 678 678 Unallocated ALLL (112) - - - - Total portfolio loans and leases, net $ 90,702 - - 92,872 92,872 Financial liabilities: Deposits $ 103,821 - 103,811 - 103,811 Federal funds purchased 132 132 - - 132 Other short-term borrowings 3,535 - 3,535 - 3,535 Long-term debt 14,388 14,288 545 - 14,833 Net Carrying Fair Value Measurements Using Total As of December 31, 2015 ($ in millions) Amount Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and due from banks $ 2,540 2,540 - - 2,540 Other securities 604 - 604 - 604 Held-to-maturity securities 70 - - 70 70 Other short-term investments 2,671 2,671 - - 2,671 Loans held for sale 384 - - 384 384 Portfolio loans and leases: Commercial and industrial loans 41,479 - - 41,802 41,802 Commercial mortgage loans 6,840 - - 6,656 6,656 Commercial construction loans 3,190 - - 2,918 2,918 Commercial leases 3,807 - - 3,533 3,533 Residential mortgage loans 13,449 - - 14,061 14,061 Home equity 8,234 - - 8,948 8,948 Automobile loans 11,453 - - 11,170 11,170 Credit card 2,160 - - 2,551 2,551 Other consumer loans and leases 646 - - 643 643 Unallocated ALLL (115) - - - - Total portfolio loans and leases, net $ 91,143 - - 92,282 92,282 Financial liabilities: Deposits $ 103,205 - 103,219 - 103,219 Federal funds purchased 151 151 - - 151 Other short-term borrowings 1,507 - 1,507 - 1,507 Long-term debt (a) 15,810 15,603 625 - 16,228 (a) Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the re classification of $34 of debt issuance costs from other assets to long-term debt. For further information, refer to Note 1 . |
Regulatory Capital Requiremen63
Regulatory Capital Requirements and Capital Ratios (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Capital Requirements and Capital Ratios | |
Capital and Risk-Based Capital and Leverage Ratios for the Bancorp and its Significant Subsidiary Banks | The following table presents capital and risk-based capital and leverage ratios for the Bancorp and its banking subsidiary at December 31: 2016 2015 ($ in millions) Amount Ratio Amount Ratio (a) CET1 capital (to risk-weighted assets): Fifth Third Bancorp $ 12,426 10.39 % $ 11,917 9.82 % Fifth Third Bank 14,015 11.92 14,216 11.92 Tier I risk-based capital (to risk-weighted assets): Fifth Third Bancorp 13,756 11.50 13,260 10.93 Fifth Third Bank 14,015 11.92 14,216 11.92 Total risk-based capital (to risk-weighted assets): Fifth Third Bancorp 17,972 15.02 17,134 14.13 Fifth Third Bank 16,175 13.76 15,642 13.12 Tier I leverage (to quarterly average assets): Fifth Third Bancorp 13,756 9.90 13,260 9.54 Fifth Third Bank 14,015 10.30 14,216 10.43 (a) Ratios not restated for the adoption of the amended guidance of ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” For further information, r efer to Note 1 . |
Parent Company Financial Stat64
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Parent Company Financial Statements | |
Condensed Statements of Income (Parent Company Only) | Condensed Statements of Income (Parent Company Only) For the years ended December 31 ($ in millions) 2016 2015 2014 Income Dividends from subsidiaries: Consolidated nonbank subsidiaries (a) $ 1,886 1,040 1,094 Interest on loans to subsidiaries 18 15 14 Total income 1,904 1,055 1,108 Expenses Interest 171 178 163 Other 18 22 17 Total expenses 189 200 180 Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries 1,715 855 928 Applicable income tax benefit 63 69 62 Income Before Change in Undistributed Earnings of Subsidiaries 1,778 924 990 Change in undistributed earnings (214) 788 491 Net Income $ 1,564 1,712 1,481 Other Comprehensive Income - - - Comprehensive Income Attributable to Bancorp $ 1,564 1,712 1,481 (a) The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $1.9 billion , $1.0 billion and $1.1 billion for the years ended December 31, 2016 , 2015 and 2014 , respectively . |
Condensed Balance Sheets (Parent Company Only) | Condensed Balance Sheets (Parent Company Only) As of December 31 ($ in millions) 2016 2015 Assets Cash $ 130 128 Short-term investments 3,074 3,728 Loans to subsidiaries: Nonbank subsidiaries 969 982 Total loans to subsidiaries 969 982 Investment in subsidiaries: Nonbank subsidiaries 17,588 17,831 Total investment in subsidiaries 17,588 17,831 Goodwill 80 80 Other assets 366 414 (a) Total Assets $ 22,207 23,163 (a) Liabilities Other short-term borrowings $ 344 404 Accrued expenses and other liabilities 461 433 Long-term debt (external) 5,170 6,456 (a) Total Liabilities $ 5,975 7,293 (a) Shareholders' Equity Common stock $ 2,051 2,051 Preferred stock 1,331 1,331 Capital surplus 2,756 2,666 Retained earnings 13,441 12,358 Accumulated other comprehensive income 59 197 Treasury stock (3,433) (2,764) Noncontrolling interests 27 31 Total Equity 16,232 15,870 Total Liabilities and Equity $ 22,207 23,163 (a) (a) Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Condensed Balance Sheet was adjusted to reflect the reclassification of $ 17 of debt issuance costs from other assets to long-term debt. For further information refer to Note 1 . |
Condensed Statements of Cash Flows (Parent Company Only) | Condensed Statements of Cash Flows (Parent Company Only) For the years ended December 31 ($ in millions) 2016 2015 2014 Operating Activities Net income $ 1,564 1,712 1,481 Adjustments to reconcile net income to net cash provided by operating activities: Benefit from deferred income taxes - (4) (1) Net change in undistributed earnings 214 (788) (491) Net change in: Other assets 14 (18) 9 Accrued expenses and other liabilities (35) 31 (41) Net Cash Provided by Operating Activities 1,757 933 957 Investing Activities Net change in: Short-term investments 654 (539) (684) Loans to subsidiaries 13 2 (10) Net Cash Provided by (Used in) Investing Activities 667 (537) (694) Financing Activities Net change in other short-term borrowings (60) (22) 115 Proceeds from issuance of long-term debt - 1,099 499 Repayment of long-term debt (1,250) - - Dividends paid on common stock (402) (422) (423) Dividends paid on preferred stock (52) (75) (67) Issuance of preferred stock - - 297 Repurchase of treasury stock and related forward contract (661) (850) (654) Other, net 3 2 (30) Net Cash Used in Financing Activities (2,422) (268) (263) Increase in Cash 2 128 - Cash at Beginning of Period 128 - - Cash at End of Period $ 130 128 - |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Segments | |
Results of Operations and Average Assets by Segment | The following tables present the results of operations and assets by business segment for the years ended December 31: Wealth General Commercial Branch Consumer and Asset Corporate 2016 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,814 1,669 248 168 (284) - 3,615 Provision for loan and lease losses 76 138 44 1 84 - 343 Net interest income after provision for loan and lease losses 1,738 1,531 204 167 (368) - 3,272 Total noninterest income 907 (c) 755 (b) 303 399 463 (131) (a) 2,696 Total noninterest expense 1,426 1,621 475 422 90 (131) 3,903 Income before income taxes 1,219 665 32 144 5 - 2,065 Applicable income tax expense 224 234 12 51 (16) - 505 Net income 995 431 20 93 21 - 1,560 Less: Net income attributable to noncontrolling interests - - - - (4) - (4) Net income attributable to Bancorp 995 431 20 93 25 - 1,564 Dividends on preferred stock - - - - 75 - 75 Net income available to common shareholders $ 995 431 20 93 (50) - 1,489 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 58,092 55,940 22,041 9,487 (3,383) (d) - 142,177 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Consolidated Statements of Income . Includes impairment charge s of $ 32 for branches and land. For more information refer to Note 7 and Note 27. Includes impairment charge s of $ 20 for operating lease equipment. For more information refer to Note 8 and Note 27. Includes bank premises and equipment of $ 39 classified as held for sale. For more information, refer to Note 7. Wealth General Commercial Branch Consumer and Asset Corporate 2015 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,625 1,555 249 128 (24) - 3,533 Provision for loan and lease losses 298 151 44 3 (100) - 396 Net interest income after provision for loan and lease losses 1,327 1,404 205 125 76 - 3,137 Total noninterest income 853 (c) 652 (b) 407 418 822 (149) (a) 3,003 Total noninterest expense 1,369 1,598 440 455 62 (149) 3,775 Income before income taxes 811 458 172 88 836 - 2,365 Applicable income tax expense 93 161 61 30 314 - 659 Net income 718 297 111 58 522 - 1,706 Less: Net income attributable to noncontrolling interests - - - - (6) - (6) Net income attributable to Bancorp 718 297 111 58 528 - 1,712 Dividends on preferred stock - - - - 75 - 75 Net income available to common shareholders $ 718 297 111 58 453 - 1,637 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets (e) $ 58,105 53,609 22,656 9,939 (3,261) (d) - 141,048 Reve nue sharing agreements between wealth and asset management and b ranch b anking are eliminated in the Consolidated Statements of Income. Includes impairment charges of $ 109 for branches and land. For more information refer to Note 7 and Note 27. Includes impairment charges of $ 36 for operating lease equipment. For more information, refer to Note 8 and Not e 27. Includes bank premises and equipment of $ 81 classified as held for sale. For more information, refer to Note 7. Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $ 34 of debt issuance costs from other assets to long-term debt. For further information, refer to Note 1. Wealth General Commercial Branch Consumer and Asset Corporate 2014 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,627 1,573 258 121 - - 3,579 Provision for loan and lease losses 141 171 156 1 (154) - 315 Net interest income after provision for loan and lease losses 1,486 1,402 102 120 154 - 3,264 Total noninterest income 880 726 (b) 350 410 253 (146) (a) 2,473 Total noninterest expense 1,281 1,587 558 443 (14) (146) 3,709 Income (loss) before income taxes 1,085 541 (106) 87 421 - 2,028 Applicable income tax expense (benefit) 201 191 (37) 29 161 - 545 Net income (loss) 884 350 (69) 58 260 - 1,483 Less: Net income attributable to noncontrolling interests - - - - 2 - 2 Net income (loss) attributable to Bancorp 884 350 (69) 58 258 - 1,481 Dividends on preferred stock - - - - 67 - 67 Net income (loss) available to common shareholders $ 884 350 (69) 58 191 - 1,414 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets (d) $ 56,400 51,488 22,567 10,445 (2,230) (c) - 138,670 Revenue sharing agreements between wealth and asset management and b ranch b anking are eliminated in the Consolidated Statements of Income. Includes impairment charges of $ 20 for branches and land. For more information refer to Note 7 and Note 27. Includes bank premises and equipment of $ 26 classified as held for sale. For more information, refer to Note 7 . Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2014 Consolidated Balance Sheet was adjusted t o reflect the reclassification of $ 3 6 of debt issuance costs from other assets to long-term debt. For further information, refer to Note 1. |
Summary of Significant Policies
Summary of Significant Policies (Summary of Significant Accounting and Reporting Policies - Additional Information) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Significant Accounting Policies | ||||||
Established threshold impaired loans on accrual status | $ 1 | |||||
Larger commercial loans, subject to impairment review | 1 | |||||
Established threshold commercial loans not subject to specific allowance calculations | 1 | |||||
Unamortized debt issuance expense | $ 33 | $ 34 | $ 36 | |||
Net tax deficiencies reclassified to applicable income tax expense | $ 0 | $ 5 | $ 1 |
Supplemental Cash Flow (Noncash
Supplemental Cash Flow (Noncash Investing and Financing Activities) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest paid | |||
Interest | $ 578 | $ 475 | $ 429 |
Cash Payments: | |||
Income taxes | 800 | 400 | 550 |
Noncash Investing and Financing Activities: | |||
Portfolio loans to loans held for sale | 238 | 487 | 855 |
Loans held for sale to portfolio loans | 28 | 288 | 31 |
Portfolio loans to OREO | 49 | 105 | 145 |
Loans held for sale to OREO | 0 | 0 | 2 |
Capital lease | $ 0 | $ 4 | $ 15 |
Restrictions (Restrictions on C
Restrictions (Restrictions on Cash, Dividends and Other Capital Actions- Additional Information) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2011 | |
Restricted Cash and Cash Equivalents Items | |||||
Banking Subsidiary Reserve Requirement | $ 1,600,000,000 | $ 1,600,000,000 | $ 1,900,000,000 | ||
Dividend Received From Nonbank Companies And Related Subsidiaries | 1,900,000,000 | 1,000,000,000 | |||
BHC stress test threshold | $ 50,000,000,000 | ||||
Shares acquired for treasury | 661,000,000 | 850,000,000 | $ 654,000,000 | ||
Increase to quarterly common stock dividend | 0.14 | ||||
Yearly Average | |||||
Restricted Cash and Cash Equivalents Items | |||||
Banking Subsidiary Reserve Requirement | 1,600,000,000 | 1,600,000,000 | $ 1,800,000,000 | ||
March 2, 2016 ASR | |||||
Restricted Cash and Cash Equivalents Items | |||||
Shares acquired for treasury | 240,000,000 | ||||
June 15, 2016 Open Market Share Repurchase | |||||
Restricted Cash and Cash Equivalents Items | |||||
Shares acquired for treasury | 26,000,000 | ||||
August 3, 2016 ASR | |||||
Restricted Cash and Cash Equivalents Items | |||||
Shares acquired for treasury | 240,000,000 | ||||
December 16, 2016 ASR | |||||
Restricted Cash and Cash Equivalents Items | |||||
Shares acquired for treasury | $ 155,000,000 | ||||
CCAR authorization | |||||
Restricted Cash and Cash Equivalents Items | |||||
Common stock dividends restrictions | The potential increase in the quarterly common stock dividend to $0.14 in the fourth quarter of 2016 | ||||
Stock Repurchase Authorization Amount | 660,000,000 | $ 660,000,000 | |||
CCAR authorization | Repurchases related to share issuances under employee benefit plans | |||||
Restricted Cash and Cash Equivalents Items | |||||
Stock Repurchase Authorization Amount | $ 84,000,000 | $ 84,000,000 |
Securities (Available-for-Sale
Securities (Available-for-Sale and Held-to-Maturity Securities) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment Holdings | |||
Available-for-sale securities, fair value | [1] | $ 31,183 | $ 29,044 |
Available-for-sale securities, unrealized losses | (191) | (101) | |
Available-for-sale securities, unrealized gains | 350 | 467 | |
Available-for-sale and other securities, Amortized Cost | 31,024 | 28,678 | |
Held-to-maturity securities, fair value | 26 | 70 | |
Held-to-maturity, unrealized losses | 0 | 0 | |
Held-to-maturity, unrealized gains | 0 | 0 | |
Held-to-maturity securities, amortized cost | [2] | 26 | 70 |
U.S. Treasury and federal agencies | |||
Investment Holdings | |||
Available-for-sale securities, fair value | 549 | 1,187 | |
Available-for-sale securities, unrealized losses | 0 | 0 | |
Available-for-sale securities, unrealized gains | 2 | 32 | |
Available-for-sale and other securities, Amortized Cost | 547 | 1,155 | |
Obligations of states and political subdivisions | |||
Investment Holdings | |||
Available-for-sale securities, fair value | 45 | 52 | |
Available-for-sale securities, unrealized losses | 0 | 0 | |
Available-for-sale securities, unrealized gains | 1 | 2 | |
Available-for-sale and other securities, Amortized Cost | 44 | 50 | |
Held-to-maturity securities, fair value | 24 | 68 | |
Held-to-maturity, unrealized losses | 0 | 0 | |
Held-to-maturity, unrealized gains | 0 | 0 | |
Held-to-maturity securities, amortized cost | 24 | 68 | |
Agency mortgage-backed securities | Residential mortgage backed securities | |||
Investment Holdings | |||
Available-for-sale securities, fair value | [3] | 15,608 | 15,081 |
Available-for-sale securities, unrealized losses | [3] | (95) | (13) |
Available-for-sale securities, unrealized gains | [3] | 178 | 283 |
Available-for-sale and other securities, Amortized Cost | [3] | 15,525 | 14,811 |
Agency mortgage-backed securities | Commercial mortgage-backed securities | |||
Investment Holdings | |||
Available-for-sale securities, fair value | 9,055 | 7,862 | |
Available-for-sale securities, unrealized losses | (61) | (33) | |
Available-for-sale securities, unrealized gains | 87 | 100 | |
Available-for-sale and other securities, Amortized Cost | 9,029 | 7,795 | |
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | |||
Investment Holdings | |||
Available-for-sale securities, fair value | 3,112 | 2,804 | |
Available-for-sale securities, unrealized losses | (15) | (32) | |
Available-for-sale securities, unrealized gains | 51 | 35 | |
Available-for-sale and other securities, Amortized Cost | 3,076 | 2,801 | |
Asset-backed securities and other debt securities | |||
Investment Holdings | |||
Available-for-sale securities, fair value | 2,116 | 1,355 | |
Available-for-sale securities, unrealized losses | (18) | (21) | |
Available-for-sale securities, unrealized gains | 28 | 13 | |
Available-for-sale and other securities, Amortized Cost | 2,106 | 1,363 | |
Held-to-maturity securities, fair value | 2 | 2 | |
Held-to-maturity, unrealized losses | 0 | 0 | |
Held-to-maturity, unrealized gains | 0 | 0 | |
Held-to-maturity securities, amortized cost | 2 | 2 | |
Equity securities | |||
Investment Holdings | |||
Available-for-sale securities, fair value | [4] | 698 | 703 |
Available-for-sale securities, unrealized losses | [4] | (2) | (2) |
Available-for-sale securities, unrealized gains | [4] | 3 | 2 |
Available-for-sale and other securities, Amortized Cost | [4] | $ 697 | $ 703 |
[1] | Amortized cost of $ 31,024 and $ 28,678 at December 31, 2016 and 2015 , respectively. | ||
[2] | Fair value of $ 26 and $ 70 at December 31, 2016 and 2015 , respectively. | ||
[3] | Includes interest-only mortgage-backed securities of $ 60 and $ 50 as of December 31, 2016 and 2015 , respectively, recorded at fair value with fair value changes recorded in securities gains, net , i n the Consolidated Statements of Income . | ||
[4] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 358 , and $ 1 , respectively, at December 31, 2016 and $ 248 , $ 355 and $ 1 , respectively, at December 31, 2015 , that are carried at cost, and certain mutual fund and equity security holdings. |
Securities (Available-for-Sal70
Securities (Available-for-Sale and Held-to-Maturity Securities) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment Holdings | |||
FHLB, restricted stock holdings | $ 248 | $ 248 | |
FRB, restricted stock holdings | 358 | 355 | |
Available-for-sale and other securities | [1] | 31,183 | 29,044 |
DTCC, restricted stock holdings | 1 | 1 | |
Interest-Only Mortgage Backed Securities | |||
Investment Holdings | |||
Available-for-sale and other securities | $ 60 | $ 50 | |
[1] | Amortized cost of $ 31,024 and $ 28,678 at December 31, 2016 and 2015 , respectively. |
Securities (Realized Gains and
Securities (Realized Gains and Losses Recognized in Income from Available-for-Sale Securities) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Investments, Unrealized Loss Position | ||||
OTTI | [1] | $ (16) | $ (5) | $ (24) |
Available-for-sale Securities | ||||
Investments, Unrealized Loss Position | ||||
Realized gains | 72 | 97 | 70 | |
Realized losses | (45) | (76) | (9) | |
OTTI | (16) | (5) | (24) | |
Net realized gains (losses) | [2] | $ 11 | $ 16 | $ 37 |
[1] | (a) Included in securiti es gains, net, in the Consolidated Statements of Income . | |||
[2] | (a) Excludes net losses on interest-only mortgage-backed securities of $ 4 , $ 4 and $ 17 for the years ended December 31, 2016 , 2015 and 2014 , respectively |
Securities (Realized Gains an72
Securities (Realized Gains and Losses Recognized in Income from Available-for-Sale Securities) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest-Only Mortgage Backed Securities | |||
Investment Holdings | |||
Net (losses) gains on interest-only mortgage-backed securities | $ (4) | $ (4) | $ (17) |
Securities (Gains and Losses Re
Securities (Gains and Losses Recognized in Income from Trading Securities) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Securities | ||||
Realized gains | [1] | $ 9 | $ 6 | $ 8 |
Realized losses | [2] | (13) | (10) | (7) |
Net unrealized gains (losses) | [3] | 4 | (3) | (3) |
Total trading securities gain (losses) | $ 0 | $ (7) | $ (2) | |
[1] | Includes realized gains of $ 7 , $ 6 and $ 4 for the years ended December 31, 2016 , 2015 and 2014 , respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income. | |||
[2] | Includes realized losses of $ 10 , $ 10 and $ 7 for the years ended December 31, 2016 , 2015 and 2014 , respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income. | |||
[3] | Includes an immaterial amount of net unrealized gains for the years ended December 31, 2016 and 2015 , respectively, and an immaterial amount of net unrealized losses for the year ended 2014 recorded in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income. |
Securities (Gains and Losses 74
Securities (Gains and Losses Recognized in Income from Trading Securities) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule Of Trading Securities And Other Trading Assets | ||||
Realized gains | [1] | $ 9 | $ 6 | $ 8 |
Realized losses | [2] | 13 | 10 | 7 |
Net unrealized gains (losses) | [3] | 4 | (3) | (3) |
Corporate Banking Revenue and Wealth and Asset Management Revenue | ||||
Schedule Of Trading Securities And Other Trading Assets | ||||
Realized gains | 7 | 6 | 4 | |
Realized losses | $ (10) | $ (10) | $ (7) | |
[1] | Includes realized gains of $ 7 , $ 6 and $ 4 for the years ended December 31, 2016 , 2015 and 2014 , respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income. | |||
[2] | Includes realized losses of $ 10 , $ 10 and $ 7 for the years ended December 31, 2016 , 2015 and 2014 , respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income. | |||
[3] | Includes an immaterial amount of net unrealized gains for the years ended December 31, 2016 and 2015 , respectively, and an immaterial amount of net unrealized losses for the year ended 2014 recorded in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income. |
Securities (Securities - Additi
Securities (Securities - Additional Information) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Investment Holdings | ||
Trading securities | $ 410 | $ 386 |
Securities with a fair value, pledged as collateral | $ 10,100 | $ 11,000 |
Percent of unrealized losses represented by non-rated securities | 0.00% | 1.00% |
Securities (Amortized Cost and
Securities (Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Securities) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt securities: | |||
Less than 1 year | [1] | $ 328 | |
1-5 years | [1] | 7,290 | |
5-10 years | [1] | 20,043 | |
Over 10 years | [1] | 2,666 | |
Equity securities | 697 | ||
Available-for-sale and other securities, Amortized Cost | 31,024 | $ 28,678 | |
Debt securities: | |||
Less than 1 year | [1] | 332 | |
1-5 years | [1] | 7,347 | |
5-10 years | [1] | 20,146 | |
Over 10 years | [1] | 2,660 | |
Equity securities | 698 | ||
Available-for-sale and other securities, fair value | [2] | 31,183 | 29,044 |
Debt securities: | |||
Less than 1 year | [1] | 2 | |
1-5 years | [1] | 11 | |
5-10 years | [1] | 12 | |
Over 10 years | [1] | 1 | |
Equity securities | 0 | ||
Held-to-maturity securities, amortized cost | [3] | 26 | 70 |
Debt securities: | |||
Less than 1 year | [1] | 2 | |
1-5 years | [1] | 11 | |
5-10 years | [1] | 12 | |
Over 10 years | [1] | 1 | |
Equity securities | 0 | ||
Held-to-maturity securities, fair value | $ 26 | $ 70 | |
[1] | (a) Actual maturities may differ from contractu al maturities when a right to call or prepay obligations exists with or without call or prepayment penalties. | ||
[2] | Amortized cost of $ 31,024 and $ 28,678 at December 31, 2016 and 2015 , respectively. | ||
[3] | Fair value of $ 26 and $ 70 at December 31, 2016 and 2015 , respectively. |
Securities (Fair Value and Gros
Securities (Fair Value and Gross Unrealized Losses on Available-for-Sale Securities) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | $ 11,079 | $ 8,248 | |
Less than 12 months Unrealized Losses | (172) | (90) | |
12 months or more Fair Value | 545 | 263 | |
12 months or more Unrealized Losses | (19) | (11) | |
Total Fair Value | 11,624 | 8,511 | |
Total Unrealized Losses | (191) | (101) | |
U.S. Treasury and federal agencies | |||
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | 199 | ||
Less than 12 months Unrealized Losses | 0 | ||
12 months or more Fair Value | 0 | ||
12 months or more Unrealized Losses | 0 | ||
Total Fair Value | 199 | ||
Total Unrealized Losses | 0 | 0 | |
Agency mortgage-backed securities | Residential mortgage backed securities | |||
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | 6,223 | 2,903 | |
Less than 12 months Unrealized Losses | (88) | (13) | |
12 months or more Fair Value | 172 | 0 | |
12 months or more Unrealized Losses | (7) | 0 | |
Total Fair Value | 6,395 | 2,903 | |
Total Unrealized Losses | [1] | (95) | (13) |
Agency mortgage-backed securities | Commercial mortgage-backed securities | |||
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | 3,183 | 3,111 | |
Less than 12 months Unrealized Losses | (61) | (33) | |
12 months or more Fair Value | 0 | 0 | |
12 months or more Unrealized Losses | 0 | 0 | |
Total Fair Value | 3,183 | 3,111 | |
Total Unrealized Losses | (61) | (33) | |
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | |||
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | 1,052 | 1,610 | |
Less than 12 months Unrealized Losses | (15) | (32) | |
12 months or more Fair Value | 0 | 0 | |
12 months or more Unrealized Losses | 0 | 0 | |
Total Fair Value | 1,052 | 1,610 | |
Total Unrealized Losses | (15) | (32) | |
Asset-backed securities and other debt securities | |||
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | 422 | 623 | |
Less than 12 months Unrealized Losses | (8) | (11) | |
12 months or more Fair Value | 336 | 226 | |
12 months or more Unrealized Losses | (10) | (10) | |
Total Fair Value | 758 | 849 | |
Total Unrealized Losses | (18) | (21) | |
Equity securities | |||
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | 0 | 1 | |
Less than 12 months Unrealized Losses | 0 | (1) | |
12 months or more Fair Value | 37 | 37 | |
12 months or more Unrealized Losses | (2) | (1) | |
Total Fair Value | 37 | 38 | |
Total Unrealized Losses | [2] | $ (2) | $ (2) |
[1] | Includes interest-only mortgage-backed securities of $ 60 and $ 50 as of December 31, 2016 and 2015 , respectively, recorded at fair value with fair value changes recorded in securities gains, net , i n the Consolidated Statements of Income . | ||
[2] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 358 , and $ 1 , respectively, at December 31, 2016 and $ 248 , $ 355 and $ 1 , respectively, at December 31, 2015 , that are carried at cost, and certain mutual fund and equity security holdings. |
Loans & Leases (Loans and Lease
Loans & Leases (Loans and Leases Classified by Primary Purpose) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans and leases held for sale: | |||
Loans held for sale | [1] | $ 751 | $ 903 |
Portfolio loans and leases: | |||
Commercial and industrial loans | 41,676 | 42,131 | |
Commercial mortgage loans | 6,899 | 6,957 | |
Commercial construction loans | 3,903 | 3,214 | |
Commercial leases | 3,974 | 3,854 | |
Residential mortgage loans | 15,051 | 13,716 | |
Home equity | 7,695 | 8,301 | |
Automobile loans | 9,983 | 11,493 | |
Credit card | 2,237 | 2,259 | |
Other consumer loans and leases | 680 | 657 | |
Portfolio loans and leases | [2],[3] | 92,098 | 92,582 |
Commercial Portfolio Segment | |||
Portfolio loans and leases: | |||
Portfolio loans and leases | 56,452 | 56,156 | |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Loans and leases held for sale: | |||
Loans held for sale | 60 | 20 | |
Commercial Portfolio Segment | Commercial mortgage loans | |||
Loans and leases held for sale: | |||
Loans held for sale | 5 | 34 | |
Residential Portfolio Segment | Residential mortgage loans | |||
Loans and leases held for sale: | |||
Loans held for sale | 686 | 708 | |
Consumer Portfolio Segment | |||
Portfolio loans and leases: | |||
Portfolio loans and leases | 35,646 | 36,426 | |
Consumer Portfolio Segment | Home equity | |||
Loans and leases held for sale: | |||
Loans held for sale | 0 | 35 | |
Consumer Portfolio Segment | Automobile Loans | |||
Loans and leases held for sale: | |||
Loans held for sale | 0 | 4 | |
Consumer Portfolio Segment | Credit Card | |||
Loans and leases held for sale: | |||
Loans held for sale | 0 | 101 | |
Consumer Portfolio Segment | Other consumer loans and leases | |||
Loans and leases held for sale: | |||
Loans held for sale | $ 0 | $ 1 | |
[1] | Includes $ 686 and $ 519 of residential mortgage loans held for sale measured at fair value at December 31, 2016 and 2015 , respectively. | ||
[2] | Includes $ 143 and $ 167 of residential mortgage loans measured at fair value at December 31, 2016 and 2015 , respectively. | ||
[3] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. |
Loans & Leases (Loans and Lea79
Loans & Leases (Loans and Leases - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Accounts Notes Loans And Financing Receivable [Table][Abstract] | ||
Unamortized premiums and discounts, deferred loan fees and costs, and fair value adjustments | $ 240 | $ 220 |
Unearned Income | 503 | 624 |
Loans pledged at the FHLB | 13,100 | 11,900 |
Loans pledged at the FRB | 40,000 | 33,700 |
Direct Financing Leases | 3,300 | 3,100 |
Leveraged leases | 701 | 801 |
Leveraged leases, pre-tax income (loss) | 38 | 27 |
Gain On Early Termination Of Leverage Leases | 16 | 7 |
Leveraged leases, tax expense (benefit) | 10 | 1 |
Minimum future lease payments receivable - 2016 | 813 | |
Minimum future lease payments receivable - 2017 | 716 | |
Minimum future lease payments receivable - 2018 | 611 | |
Minimum future lease payments receivable - 2019 | 482 | |
Minimum future lease payments receivable - 2020 | 361 | |
Residual value write-downs related to commercial leases | $ 1 | $ 8 |
Loans & Leases (Total Loans And
Loans & Leases (Total Loans And Leases Managed By The Bancorp) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | $ 92,849 | $ 93,485 |
Balance of Loans 90 days or More Past Due | 84 | 75 |
Net Charge-Offs | 362 | 446 |
Commercial and Industrial Loans | Commercial Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 41,736 | 42,151 |
Balance of Loans 90 days or More Past Due | 4 | 7 |
Net Charge-Offs | 172 | 229 |
Commercial Mortgage Loans | Commercial Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 6,904 | 6,991 |
Balance of Loans 90 days or More Past Due | 0 | 0 |
Net Charge-Offs | 15 | 27 |
Commercial Construction Loans | Commercial Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 3,903 | 3,214 |
Balance of Loans 90 days or More Past Due | 0 | 0 |
Net Charge-Offs | 3 | |
Net Recoveries | (1) | |
Commercial Leases | Commercial Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 3,974 | 3,854 |
Balance of Loans 90 days or More Past Due | 0 | 0 |
Net Charge-Offs | 4 | 2 |
Residential Mortgage | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 15,737 | 14,424 |
Balance of Loans 90 days or More Past Due | 49 | 40 |
Net Charge-Offs | 10 | 17 |
Home Equity | Consumer Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 7,695 | 8,336 |
Balance of Loans 90 days or More Past Due | 0 | 0 |
Net Charge-Offs | 27 | 39 |
Automobile Loans | Consumer Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 9,983 | 11,497 |
Balance of Loans 90 days or More Past Due | 9 | 10 |
Net Charge-Offs | 35 | 28 |
Credit Card | Consumer Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 2,237 | 2,360 |
Balance of Loans 90 days or More Past Due | 22 | 18 |
Net Charge-Offs | 80 | 82 |
Other Consumer Loans and Leases | Consumer Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 680 | 658 |
Balance of Loans 90 days or More Past Due | 0 | 0 |
Net Charge-Offs | 20 | 19 |
Loans Held-for-Sale | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 751 | 903 |
Loans and Leases Managed and Securitized | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | $ 92,098 | $ 92,582 |
Loans & Leases (Investment in L
Loans & Leases (Investment in Lease Financing) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable | |||
Rental receivable, net of principal and interest on nonrecourse debt | $ 3,551 | $ 3,550 | |
Estimated residual value of leased assets | 903 | 906 | |
Initial direct cost, net of amortization | 23 | 22 | |
Gross investment in lease financing | 4,477 | 4,478 | |
Unearned income | (503) | (624) | |
Net investment in lease financing | [1] | $ 3,974 | $ 3,854 |
[1] | The accumulated allowance for uncollectible m inimum lease payments was $ 15 and $ 47 at December 31, 2016 and 2015 , respectively. |
Loans & Leases (Investment in82
Loans & Leases (Investment in Lease Financing) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Accounts, Notes, Loans and Financing Receivable | ||||||
Accumulated allowance for uncollectible minimum lease payments | $ 1,253 | [1] | $ 1,272 | [1] | $ 1,322 | $ 1,582 |
Leases | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Accumulated allowance for uncollectible minimum lease payments | $ 15 | $ 47 | ||||
[1] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. |
Credit Quality (Summary of Tran
Credit Quality (Summary of Transactions in the ALLL by Portfolio Segment) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Financing Receivable, Allowance for Credit Losses | |||||
Balance, Beginning of period | $ 1,272 | [1] | $ 1,322 | $ 1,582 | |
Losses charged-off | (456) | (542) | (679) | ||
Recoveries of losses previously charged-off | 94 | 96 | 104 | ||
Provision for (benefit from) loan and lease losses | 343 | 396 | 315 | ||
Balance, end of period | 1,253 | [1] | 1,272 | [1] | 1,322 |
Commercial Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Losses | |||||
Balance, Beginning of period | 840 | [2] | 875 | 1,058 | |
Losses charged-off | (232) | (298) | (299) | ||
Recoveries of losses previously charged-off | 42 | 37 | 38 | ||
Provision for (benefit from) loan and lease losses | 181 | 226 | 78 | ||
Balance, end of period | 831 | [3] | 840 | [2] | 875 |
Residential Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Losses | |||||
Balance, Beginning of period | 100 | [2] | 104 | 189 | |
Losses charged-off | (19) | (28) | (139) | ||
Recoveries of losses previously charged-off | 9 | 11 | 13 | ||
Provision for (benefit from) loan and lease losses | 6 | 13 | 41 | ||
Balance, end of period | 96 | [3] | 100 | [2] | 104 |
Consumer Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Losses | |||||
Balance, Beginning of period | 217 | [2] | 237 | 225 | |
Losses charged-off | (205) | (216) | (241) | ||
Recoveries of losses previously charged-off | 43 | 48 | 53 | ||
Provision for (benefit from) loan and lease losses | 159 | 148 | 200 | ||
Balance, end of period | 214 | [3] | 217 | [2] | 237 |
Unallocated | |||||
Financing Receivable, Allowance for Credit Losses | |||||
Balance, Beginning of period | 115 | [2] | 106 | 110 | |
Losses charged-off | 0 | 0 | 0 | ||
Recoveries of losses previously charged-off | 0 | 0 | 0 | ||
Provision for (benefit from) loan and lease losses | (3) | 9 | (4) | ||
Balance, end of period | $ 112 | [3] | $ 115 | [2] | $ 106 |
[1] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. | ||||
[2] | Includes $ 5 related to leveraged leases at December 31, 2015 . | ||||
[3] | Includes $ 2 related to leveraged leases at December 31, 2016 . |
Credit Quality (Summary of the
Credit Quality (Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Financing Receivable, Allowance for Credit Losses | ||||||
Individually evaluated for impairment | $ 230 | [1] | $ 235 | [2] | ||
Collectively evaluated for impairment | 911 | [1] | 922 | [2] | ||
Unallocated | 112 | [1] | 115 | [2] | ||
Total allowance for loan and lease losses | 1,253 | [3] | 1,272 | [3] | $ 1,322 | $ 1,582 |
Individually evaluated for impairment | 1,927 | [4] | 1,869 | [5] | ||
Collectively evaluated for impairment | 90,025 | [4] | 90,544 | [5] | ||
Loans acquired with deteriorated credit quality | 3 | [4] | 2 | [5] | ||
Total portfolio loans and leases | 91,955 | [6] | 92,415 | [7] | ||
Commercial Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Individually evaluated for impairment | 118 | [1],[8] | 119 | [2],[9] | ||
Collectively evaluated for impairment | 713 | [1] | 721 | [2] | ||
Unallocated | 0 | [1] | 0 | [2] | ||
Total allowance for loan and lease losses | 831 | [1] | 840 | [2] | 875 | 1,058 |
Individually evaluated for impairment | 904 | [4],[8] | 815 | [5],[9] | ||
Collectively evaluated for impairment | 55,548 | [4] | 55,341 | [5] | ||
Loans acquired with deteriorated credit quality | 0 | [4] | 0 | [5] | ||
Total portfolio loans and leases | 56,452 | [4] | 56,156 | [5] | ||
Residential Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Individually evaluated for impairment | 68 | [1] | 67 | [2] | ||
Collectively evaluated for impairment | 28 | [1] | 33 | [2] | ||
Unallocated | 0 | [1] | 0 | [2] | ||
Total allowance for loan and lease losses | 96 | [1] | 100 | [2] | 104 | 189 |
Individually evaluated for impairment | 652 | [4] | 630 | [5] | ||
Collectively evaluated for impairment | 14,253 | [4] | 12,917 | [5] | ||
Loans acquired with deteriorated credit quality | 3 | [4] | 2 | [5] | ||
Total portfolio loans and leases | 14,908 | [4] | 13,549 | [5] | ||
Consumer Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Individually evaluated for impairment | 44 | [1] | 49 | [2] | ||
Collectively evaluated for impairment | 170 | [1] | 168 | [2] | ||
Unallocated | 0 | [1] | 0 | [2] | ||
Total allowance for loan and lease losses | 214 | [1] | 217 | [2] | 237 | 225 |
Individually evaluated for impairment | 371 | [4] | 424 | [5] | ||
Collectively evaluated for impairment | 20,224 | [4] | 22,286 | [5] | ||
Loans acquired with deteriorated credit quality | 0 | [4] | 0 | [5] | ||
Total portfolio loans and leases | 20,595 | [4] | 22,710 | [5] | ||
Unallocated | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Individually evaluated for impairment | 0 | [1] | 0 | [2] | ||
Collectively evaluated for impairment | 0 | [1] | 0 | [2] | ||
Unallocated | 112 | [1] | 115 | [2] | ||
Total allowance for loan and lease losses | 112 | [1] | 115 | [2] | $ 106 | $ 110 |
Individually evaluated for impairment | 0 | [4] | 0 | [5] | ||
Collectively evaluated for impairment | 0 | [4] | 0 | [5] | ||
Loans acquired with deteriorated credit quality | 0 | [4] | 0 | [5] | ||
Total portfolio loans and leases | $ 0 | [4] | $ 0 | [5] | ||
[1] | Includes $ 2 related to leveraged leases at December 31, 2016 . | |||||
[2] | Includes $ 5 related to leveraged leases at December 31, 2015 . | |||||
[3] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. | |||||
[4] | Excludes $ 143 of residential mortgage loans measured at fair value , and includes $ 701 of leveraged leases, net of unearned income, at December 31, 2016 . | |||||
[5] | Excludes $ 167 of residential mortgage loans measured at fair value , and includes $ 8 01 of leveraged leases, net of unearned income at December 31, 2015 . | |||||
[6] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . | |||||
[7] | Excludes $ 167 of residential mortgage loans measured at fair value at December 31, 2015 . | |||||
[8] | Includes five restructured loans at December 31, 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $ 26 and an ALLL of $ 18 . | |||||
[9] | Includes five restructured loans at December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $ 27 and an ALLL of $ 15 . |
Credit Quality (Summary of th85
Credit Quality (Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment) (Parenthetical) (Detail) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2016USD ($)number | Dec. 31, 2015USD ($)number | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||||
Financing Receivable, Allowance for Credit Losses | |||||||
Allowance for loan and lease losses | $ 1,253 | [1] | $ 1,272 | [1] | $ 1,322 | $ 1,582 | |
Portfolio loans and leases at fair value | 143 | 167 | |||||
Total loans and leases | $ 91,955 | [2] | $ 92,415 | [3] | |||
Number of Contracts | [4],[5] | 10,978 | 14,472 | 11,102 | |||
Recorded Investment | $ 1,901 | [6] | $ 1,842 | [7] | |||
Variable Interest Entity, Primary Beneficiary | |||||||
Financing Receivable, Allowance for Credit Losses | |||||||
Allowance for loan and lease losses | 26 | 28 | |||||
Commercial | Variable Interest Entity, Primary Beneficiary | |||||||
Financing Receivable, Allowance for Credit Losses | |||||||
Allowance for loan and lease losses | $ 18 | $ 15 | |||||
Number of Contracts | number | 5 | 5 | |||||
Recorded Investment | $ 26 | $ 27 | |||||
Leveraged Leases | |||||||
Financing Receivable, Allowance for Credit Losses | |||||||
Allowance for loan and lease losses | 2 | 5 | |||||
Total loans and leases | 701 | 801 | |||||
Residential Portfolio Segment | |||||||
Financing Receivable, Allowance for Credit Losses | |||||||
Portfolio loans and leases at fair value | $ 143 | $ 167 | |||||
[1] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. | ||||||
[2] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . | ||||||
[3] | Excludes $ 167 of residential mortgage loans measured at fair value at December 31, 2015 . | ||||||
[4] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | ||||||
[5] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | ||||||
[6] | Includes $ 322 , $ 635 and $ 323 , respectively, of commercial , residential mortgage and consumer portfolio TDRs on accrual status and $ 192 , $ 17 and $ 48 , respectively , of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2016 . | ||||||
[7] | Includes $ 491 , $ 607 and $ 372 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 203 , $ 23 and $ 52 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015 . |
Credit Quality (Summary of th86
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Commercial Portfolio Segment by Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Modifications | ||||
Total loans and leases | $ 91,955 | [1] | $ 92,415 | [2] |
Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 56,452 | 56,156 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 41,676 | 42,131 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,360 | 3,659 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,539 | 3,298 | ||
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,903 | 3,214 | ||
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,974 | 3,854 | ||
Pass | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 53,274 | 52,130 | ||
Pass | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 38,844 | 38,756 | ||
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,168 | 3,344 | ||
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,466 | 3,105 | ||
Pass | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,902 | 3,201 | ||
Pass | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,894 | 3,724 | ||
Special Mention | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 1,335 | 1,917 | ||
Special Mention | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 1,204 | 1,633 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 72 | 124 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 4 | 63 | ||
Special Mention | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 1 | 4 | ||
Special Mention | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 54 | 93 | ||
Substandard | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 1,816 | 2,109 | ||
Substandard | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 1,604 | 1,742 | ||
Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 117 | 191 | ||
Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 69 | 130 | ||
Substandard | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 0 | 9 | ||
Substandard | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 26 | 37 | ||
Doubtful | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 27 | 0 | ||
Doubtful | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 24 | 0 | ||
Doubtful | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3 | 0 | ||
Doubtful | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 0 | 0 | ||
Doubtful | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 0 | 0 | ||
Doubtful | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | $ 0 | $ 0 | ||
[1] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . | |||
[2] | Excludes $ 167 of residential mortgage loans measured at fair value at December 31, 2015 . |
Credit Quality (Summary of th87
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |||
Total loans and leases | $ 91,955 | [1] | $ 92,415 | [2] | |
Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 7,695 | 8,301 | |||
Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 9,983 | 11,493 | |||
Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 2,237 | 2,259 | |||
Other Consumer Loans and Leases | Consumer Portfolio Segment | |||||
Total loans and leases | 680 | 657 | |||
Performing Financing Receivable | |||||
Total loans and leases | [3] | 35,366 | 36,094 | ||
Performing Financing Receivable | Residential Mortgage | Residential Portfolio Segment | |||||
Total loans and leases | [3] | 14,874 | 13,498 | ||
Performing Financing Receivable | Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 7,622 | 8,222 | |||
Performing Financing Receivable | Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 9,981 | 11,491 | |||
Performing Financing Receivable | Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 2,209 | 2,226 | |||
Performing Financing Receivable | Other Consumer Loans and Leases | Consumer Portfolio Segment | |||||
Total loans and leases | 680 | 657 | |||
Nonperforming Financing Receivable | |||||
Total loans and leases | [3] | 137 | 165 | ||
Nonperforming Financing Receivable | Residential Mortgage | Residential Portfolio Segment | |||||
Total loans and leases | [3] | 34 | 51 | ||
Nonperforming Financing Receivable | Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 73 | 79 | |||
Nonperforming Financing Receivable | Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 2 | 2 | |||
Nonperforming Financing Receivable | Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 28 | 33 | |||
Nonperforming Financing Receivable | Other Consumer Loans and Leases | Consumer Portfolio Segment | |||||
Total loans and leases | $ 0 | $ 0 | |||
[1] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . | ||||
[2] | Excludes $ 167 of residential mortgage loans measured at fair value at December 31, 2015 . | ||||
[3] | (a) Excludes $ 143 and $ 167 of loans measured at fair value at December 31, 2016 and 2015 , respectively |
Credit Quality (Summary of th88
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Portfolio loans and leases at fair value | $ 143 | $ 167 |
Residential mortgage loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Portfolio loans and leases at fair value | $ 143 | $ 167 |
Credit Quality (Summarizes the
Credit Quality (Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | $ 91,339 | [1],[2] | $ 91,780 | [3],[4] |
Total Past Due | 616 | [2] | 635 | [4] |
Total portfolio loans and leases | 91,955 | [2] | 92,415 | [4] |
90-Days past Due and Still Accruing | 84 | [2] | 75 | [4] |
30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 315 | [1],[2] | 306 | [3],[4] |
90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 301 | [1],[2] | 329 | [3],[4] |
Commercial Portfolio Segment | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total portfolio loans and leases | 56,452 | 56,156 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 41,495 | [1] | 41,996 | [3] |
Total Past Due | 181 | 135 | ||
Total portfolio loans and leases | 41,676 | 42,131 | ||
90-Days past Due and Still Accruing | 4 | 7 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 87 | [1] | 55 | [3] |
Commercial Portfolio Segment | Commercial and Industrial Loans | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 94 | [1] | 80 | [3] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 3,332 | [1] | 3,610 | [3] |
Total Past Due | 28 | 49 | ||
Total portfolio loans and leases | 3,360 | 3,659 | ||
90-Days past Due and Still Accruing | 0 | 0 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 6 | [1] | 15 | [3] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 22 | [1] | 34 | [3] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 3,530 | [1] | 3,262 | [3] |
Total Past Due | 9 | 36 | ||
Total portfolio loans and leases | 3,539 | 3,298 | ||
90-Days past Due and Still Accruing | 0 | 0 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 2 | [1] | 9 | [3] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 7 | [1] | 27 | [3] |
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 3,902 | [1] | 3,214 | [3] |
Total Past Due | 1 | 0 | ||
Total portfolio loans and leases | 3,903 | 3,214 | ||
90-Days past Due and Still Accruing | 0 | 0 | ||
Commercial Portfolio Segment | Commercial Construction Loans | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 1 | [1] | 0 | [3] |
Commercial Portfolio Segment | Commercial Construction Loans | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 0 | [1] | 0 | [3] |
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 3,972 | [1] | 3,850 | [3] |
Total Past Due | 2 | 4 | ||
Total portfolio loans and leases | 3,974 | 3,854 | ||
90-Days past Due and Still Accruing | 0 | 0 | ||
Commercial Portfolio Segment | Commercial Leases | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 0 | [1] | 3 | [3] |
Commercial Portfolio Segment | Commercial Leases | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 2 | [1] | 1 | [3] |
Residential Mortgage | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 14,790 | [1],[2],[5] | 13,420 | [3],[4],[6] |
Total Past Due | 118 | [2],[5] | 129 | [4],[6] |
Total portfolio loans and leases | 14,908 | [2],[5] | 13,549 | [4],[6] |
90-Days past Due and Still Accruing | 49 | [2],[5] | 40 | [4],[6] |
Residential Mortgage | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 37 | [1],[2],[5] | 37 | [3],[4],[6] |
Residential Mortgage | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 81 | [1],[2],[5] | 92 | [3],[4],[6] |
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 7,570 | [1] | 8,158 | [3] |
Total Past Due | 125 | 143 | ||
Total portfolio loans and leases | 7,695 | 8,301 | ||
90-Days past Due and Still Accruing | 0 | 0 | ||
Consumer Portfolio Segment | Home Equity | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 68 | [1] | 82 | [3] |
Consumer Portfolio Segment | Home Equity | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 57 | [1] | 61 | [3] |
Consumer Portfolio Segment | Automobile Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 9,886 | [1] | 11,407 | [3] |
Total Past Due | 97 | 86 | ||
Total portfolio loans and leases | 9,983 | 11,493 | ||
90-Days past Due and Still Accruing | 9 | 10 | ||
Consumer Portfolio Segment | Automobile Loans | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 85 | [1] | 75 | [3] |
Consumer Portfolio Segment | Automobile Loans | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 12 | [1] | 11 | [3] |
Consumer Portfolio Segment | Credit Card | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 2,183 | [1] | 2,207 | [3] |
Total Past Due | 54 | 52 | ||
Total portfolio loans and leases | 2,237 | 2,259 | ||
90-Days past Due and Still Accruing | 22 | 18 | ||
Consumer Portfolio Segment | Credit Card | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 28 | [1] | 29 | [3] |
Consumer Portfolio Segment | Credit Card | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 26 | [1] | 23 | [3] |
Consumer Portfolio Segment | Other Consumer Loans and Leases | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 679 | [1] | 656 | [3] |
Total Past Due | 1 | 1 | ||
Total portfolio loans and leases | 680 | 657 | ||
90-Days past Due and Still Accruing | 0 | 0 | ||
Consumer Portfolio Segment | Other Consumer Loans and Leases | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 1 | [1] | 1 | [3] |
Consumer Portfolio Segment | Other Consumer Loans and Leases | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | $ 0 | [1] | $ 0 | [3] |
[1] | Includes accrual and nonaccrual loans and leases. | |||
[2] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . | |||
[3] | Includes accrual and nonaccrual loans and leases . | |||
[4] | Excludes $ 167 of residential mortgage loans measured at fair value at December 31, 2015 . | |||
[5] | Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2016 , $ 1 1 0 of these loans were 30-89 days past due and $ 3 12 were 90 days or more past due. The Bancorp recognized $ 6 of losses during the year ended December 31, 2016 due to claim denials and curtailments a ssociated with these insured or guaranteed loans. | |||
[6] | Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA . As of December 31, 2015 , $ 102 of these loans were 30-89 days past due and $ 335 were 90 days or more past due. The Bancorp recognized $ 8 of losses during the year ended December 31, 2015 due to claim denials and curtailments associated with these insured or guaranteed loans . |
Credit Quality (Summarizes th90
Credit Quality (Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | |||
Financing Receivable, Recorded Investment, Past Due | ||||
Portfolio loans and leases at fair value | $ 143 | $ 167 | ||
Total Past Due | 616 | [1] | 635 | [2] |
30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 315 | [1],[3] | 306 | [2],[4] |
90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 301 | [1],[3] | 329 | [2],[4] |
Residential Mortgage | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Portfolio loans and leases at fair value | 143 | 167 | ||
Residential Mortgage Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Portfolio loans and leases at fair value | 143 | 167 | ||
Residential Mortgage Loans | Federal Housing Administration Loan | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Losses Due To Claim Denials And Curtailments | 6 | 8 | ||
Residential Mortgage Loans | Federal Housing Administration Loan | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 110 | 102 | ||
Residential Mortgage Loans | Federal Housing Administration Loan | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | $ 312 | $ 335 | ||
[1] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . | |||
[2] | Excludes $ 167 of residential mortgage loans measured at fair value at December 31, 2015 . | |||
[3] | Includes accrual and nonaccrual loans and leases. | |||
[4] | Includes accrual and nonaccrual loans and leases . |
Credit Quality (Summarizes th91
Credit Quality (Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | $ 1,210 | $ 1,276 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 842 | 753 | ||
Unpaid Principal Balance | 2,052 | 2,029 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 1,168 | 1,184 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 733 | 658 | ||
Recorded Investment | 1,901 | [1] | 1,842 | [2] |
Allowance | 212 | 220 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 440 | 412 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 394 | 228 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 414 | 346 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 320 | 182 | ||
Allowance | 94 | 84 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 24 | [3] | 28 | [4] |
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 36 | 54 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 16 | [3] | 21 | [4] |
Impaired Financing Receivable With No Related Allowance Recorded Investment | 35 | 51 | ||
Allowance | 5 | [3] | 5 | [4] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 7 | 75 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 93 | 126 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 6 | 64 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 83 | 111 | ||
Allowance | 1 | 12 | ||
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 4 | |||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 9 | |||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 4 | |||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 5 | |||
Allowance | 2 | |||
Commercial Portfolio Segment | Commercial Leases | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 2 | 3 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 2 | 1 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 2 | 3 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 2 | 1 | ||
Allowance | 0 | 1 | ||
Residential Portfolio Segment | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 471 | 450 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 207 | 210 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 465 | 444 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 187 | 186 | ||
Allowance | 68 | 67 | ||
Consumer Portfolio Segment | Home Equity | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 202 | 226 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 107 | 122 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 201 | 225 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 104 | 119 | ||
Allowance | 30 | 32 | ||
Consumer Portfolio Segment | Automobile Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 12 | 17 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 3 | 3 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 12 | 16 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 2 | 3 | ||
Allowance | 2 | 2 | ||
Consumer Portfolio Segment | Credit Card | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 52 | 61 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 52 | 61 | ||
Allowance | $ 12 | $ 15 | ||
[1] | Includes $ 322 , $ 635 and $ 323 , respectively, of commercial , residential mortgage and consumer portfolio TDRs on accrual status and $ 192 , $ 17 and $ 48 , respectively , of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2016 . | |||
[2] | Includes $ 491 , $ 607 and $ 372 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 203 , $ 23 and $ 52 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015 . | |||
[3] | Excludes five restructured l oans at December 31 , 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $ 26 , a recorded investment of $ 26 and an ALLL of $ 18 . | |||
[4] | Excludes five restructured loans at December 31, 2015 associated with a consolidated VI E in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $ 27 , a recorded investment of $ 27 and an ALLL of $ 15 . |
Credit Quality (Summarizes th92
Credit Quality (Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class) (Parenthetical) (Detail) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014 | ||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | $ 2,052 | $ 2,029 | ||||
Recorded Investment | 1,901 | [1] | 1,842 | [2] | ||
Allowance | $ 212 | $ 220 | ||||
Number of Contracts | [3],[4] | 10,978 | 14,472 | 11,102 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||||
Financing Receivable, Impaired | ||||||
Allowance | $ 94 | $ 84 | ||||
Number of Contracts | [3],[4] | 74 | 77 | 128 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||||
Financing Receivable, Impaired | ||||||
Allowance | $ 5 | [5] | $ 5 | [6] | ||
Number of Contracts | [3],[4] | 12 | 18 | 32 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | Variable Interest Entity, Primary Beneficiary | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | $ 26 | $ 27 | ||||
Recorded Investment | 26 | 27 | ||||
Allowance | 18 | 15 | ||||
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||||
Financing Receivable, Impaired | ||||||
Allowance | $ 1 | $ 12 | ||||
Number of Contracts | [3],[4] | 4 | 12 | 28 | ||
Commercial Portfolio Segment | Troubled Debt Restructuring On Accrual Status [Member] | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | $ 322 | $ 491 | ||||
Commercial Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status [Member] | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | 192 | 203 | ||||
Residential Portfolio Segment | ||||||
Financing Receivable, Impaired | ||||||
Allowance | $ 68 | $ 67 | ||||
Number of Contracts | [3],[4] | 924 | 1,089 | 1,093 | ||
Residential Portfolio Segment | Troubled Debt Restructuring On Accrual Status [Member] | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | $ 635 | $ 607 | ||||
Residential Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status [Member] | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | 17 | 23 | ||||
Consumer Portfolio Segment | Troubled Debt Restructuring On Accrual Status [Member] | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | 323 | 372 | ||||
Consumer Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status [Member] | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | $ 48 | $ 52 | ||||
[1] | Includes $ 322 , $ 635 and $ 323 , respectively, of commercial , residential mortgage and consumer portfolio TDRs on accrual status and $ 192 , $ 17 and $ 48 , respectively , of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2016 . | |||||
[2] | Includes $ 491 , $ 607 and $ 372 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 203 , $ 23 and $ 52 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015 . | |||||
[3] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||||
[4] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | |||||
[5] | Excludes five restructured l oans at December 31 , 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $ 26 , a recorded investment of $ 26 and an ALLL of $ 18 . | |||||
[6] | Excludes five restructured loans at December 31, 2015 associated with a consolidated VI E in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $ 27 , a recorded investment of $ 27 and an ALLL of $ 15 . |
Credit Quality (Summary of Aver
Credit Quality (Summary of Average Impaired Loans and Leases and Interest Income by Class) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Financing Receivable, Impaired | ||||
Average Recorded Investment | $ 1,946 | $ 2,062 | $ 3,061 | |
Interest Income Recognized | 58 | 74 | 119 | |
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 691 | 663 | 786 | |
Interest Income Recognized | 10 | 21 | 25 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | [1] | 63 | 92 | 149 |
Interest Income Recognized | [1] | 1 | 2 | 4 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 139 | 224 | 268 | |
Interest Income Recognized | 5 | 7 | 8 | |
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 3 | 41 | 92 | |
Interest Income Recognized | 0 | 1 | 2 | |
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 5 | 5 | 13 | |
Interest Income Recognized | 0 | 0 | 0 | |
Residential Portfolio Segment | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 647 | 586 | 1,273 | |
Interest Income Recognized | 25 | 23 | 54 | |
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 325 | 361 | 394 | |
Interest Income Recognized | 12 | 13 | 20 | |
Consumer Portfolio Segment | Automobile Loans | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 17 | 22 | 24 | |
Interest Income Recognized | 0 | 1 | 1 | |
Consumer Portfolio Segment | Credit Card | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 56 | 68 | 62 | |
Interest Income Recognized | $ 5 | $ 6 | $ 5 | |
[1] | (a) Excludes five restructured loans associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 26 , $ 27 and $28 for the years ended December 31, 2016 , 2015 and 2014 , respectively . A n immaterial amount of interest income was recognized during the years ended December 31, 2016 , 2015 and 2014 . |
Credit Quality (Summary of th94
Credit Quality (Summary of the Average Impaired Loans and Leases and Interest Income by Class) (Parenthetical) (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Financing Receivable, Impaired | ||||
Average Recorded Investment | $ 1,946 | $ 2,062 | $ 3,061 | |
Number of Contracts | [1],[2] | 10,978 | 14,472 | 11,102 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | [3] | $ 63 | $ 92 | $ 149 |
Number of Contracts | [1],[2] | 12 | 18 | 32 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | Variable Interest Entity, Primary Beneficiary | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | $ 26 | $ 27 | $ 27 | |
[1] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||
[2] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | |||
[3] | (a) Excludes five restructured loans associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 26 , $ 27 and $28 for the years ended December 31, 2016 , 2015 and 2014 , respectively . A n immaterial amount of interest income was recognized during the years ended December 31, 2016 , 2015 and 2014 . |
Credit Quality (Summary of th95
Credit Quality (Summary of the Bancorp's Nonaccrual Loans and Leases by Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | [1],[2] | $ 660 | $ 506 |
OREO and other repossessed personal property | 84 | 155 | |
Nonperforming portfolio assets | [1],[2] | 738 | 647 |
Excludes OREO Related to Government Insured Loans | |||
Financing Receivable, Modifications | |||
OREO and other repossessed personal property | 78 | 141 | |
Commercial Portfolio Segment | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 523 | 341 | |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 478 | 259 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | [3] | 32 | 46 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 9 | 35 | |
Commercial Portfolio Segment | Commercial Leases | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 4 | 1 | |
Residential Mortgage Loans | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 34 | 51 | |
Consumer Portfolio Segment | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 103 | 114 | |
Consumer Portfolio Segment | Home Equity | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 73 | 79 | |
Consumer Portfolio Segment | Automobile Loans | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 2 | 2 | |
Consumer Portfolio Segment | Credit Card | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | $ 28 | $ 33 | |
[1] | Includes $ 4 and $ 6 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at December 31, 2016 and 2015 , respectively , and $ 1 and $ 2 of restructured nonaccrual government insured commercial loans at December 31, 2016 and 2015 , respectively . | ||
[2] | Excludes $ 1 3 and $ 12 of nonaccrual loans held for sale at December 31, 2016 and 2015 , respectively. | ||
[3] | Excludes $ 19 and $ 20 of restructured nonaccrual loans at December 31, 2016 and 2015 , respectively, associated with a consolidated VIE in which the Bancorp has no continuing credit risk due the risk being assumed by a third party. |
Credit Quality (Summary of th96
Credit Quality (Summary of the Bancorp's Nonperforming Loans and Leases by Class) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Modifications | |||
Loans held for sale | [1] | $ 751 | $ 903 |
OREO and other repossessed personal property | 84 | 155 | |
Portfolio loans and leases | [2],[3] | 92,098 | 92,582 |
Variable Interest Entity, Primary Beneficiary | |||
Financing Receivable, Modifications | |||
Portfolio loans and leases | 1,216 | 2,537 | |
Commercial Portfolio Segment | |||
Financing Receivable, Modifications | |||
Portfolio loans and leases | 56,452 | 56,156 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | Variable Interest Entity, Primary Beneficiary | |||
Financing Receivable, Modifications | |||
Restructured nonaccrual loans and leases | 19 | 20 | |
Nonperforming Financing Receivable | |||
Financing Receivable, Modifications | |||
Loans held for sale | 13 | 12 | |
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment | |||
Financing Receivable, Modifications | |||
Restructured nonaccrual loans and leases | 1 | 2 | |
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment | Small Business Administration [Member] | |||
Financing Receivable, Modifications | |||
Portfolio loans and leases | $ 4 | $ 6 | |
[1] | Includes $ 686 and $ 519 of residential mortgage loans held for sale measured at fair value at December 31, 2016 and 2015 , respectively. | ||
[2] | Includes $ 143 and $ 167 of residential mortgage loans measured at fair value at December 31, 2016 and 2015 , respectively. | ||
[3] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. |
Credit Quality (Credit Quality
Credit Quality (Credit Quality Additional Information) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Troubled Debt Restructuring | ||
Line of credit commitments for modified troubled debt restructurings | $ 82 | $ 39 |
Letter of credit commitments for modified troubled debt restructurings | 57 | 23 |
Mortgage loans in process of foreclosure amount | 260 | $ 303 |
Commercial aggregate borrower relationship subject to individual review for impairment | $ 1 |
Credit Quality (Summary of Loan
Credit Quality (Summary of Loans Modified in a TDR) (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 10,978 | 14,472 | 11,102 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 413 | $ 409 | $ 548 |
Increase (Decrease) to ALLL Upon Modification | [2] | 32 | 23 | 27 |
Charge-offs Recognized Upon Modification | [2] | $ 4 | $ 10 | $ 8 |
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 74 | 77 | 128 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 183 | $ 146 | $ 230 |
Increase (Decrease) to ALLL Upon Modification | [2] | 14 | 7 | 12 |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 3 | $ 6 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 12 | 18 | 32 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 11 | $ 16 | $ 54 |
Increase (Decrease) to ALLL Upon Modification | [2] | 0 | (2) | (1) |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | $ 0 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 4 | 12 | 28 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 5 | $ 7 | $ 30 |
Increase (Decrease) to ALLL Upon Modification | [2] | 2 | (1) | (3) |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | $ 2 |
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 5 | ||
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 16 | ||
Increase (Decrease) to ALLL Upon Modification | [2] | 0 | ||
Charge-offs Recognized Upon Modification | [2] | $ 0 | ||
Residential Mortgage Loans | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 924 | 1,089 | 1,093 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 137 | $ 155 | $ 160 |
Increase (Decrease) to ALLL Upon Modification | [2] | 8 | 8 | 8 |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | $ 0 |
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 219 | 267 | 284 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 15 | $ 16 | $ 12 |
Increase (Decrease) to ALLL Upon Modification | [2] | 0 | (1) | 0 |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | $ 0 |
Consumer Portfolio Segment | Automobile Loans | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 221 | 440 | 608 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 3 | $ 7 | $ 10 |
Increase (Decrease) to ALLL Upon Modification | [2] | 0 | 1 | 1 |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | $ 0 |
Consumer Portfolio Segment | Credit Card | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 9,519 | 12,569 | 8,929 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 43 | $ 62 | $ 52 |
Increase (Decrease) to ALLL Upon Modification | [2] | 8 | 11 | 10 |
Charge-offs Recognized Upon Modification | [2] | $ 4 | $ 7 | $ 0 |
[1] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||
[2] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . |
Credit Quality (Summary of Subs
Credit Quality (Summary of Subsequent Defaults) (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 1,918 | 2,124 | 2,346 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 39 | $ 42 | $ 87 |
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 8 | 7 | 11 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 5 | $ 11 | $ 36 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 3 | 3 | |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 1 | $ 4 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 2 | 2 | |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 0 | $ 1 | |
Commercial Portfolio Segment | Commercial leases | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 2 | ||
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 1 | ||
Residential Mortgage Loans | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 172 | 156 | 235 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 25 | $ 21 | $ 32 |
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 17 | 15 | 30 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 1 | $ 1 | $ 2 |
Consumer Portfolio Segment | Automobile Loans | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 2 | 8 | 6 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 0 | $ 0 | $ 0 |
Consumer Portfolio Segment | Credit Card | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 1,715 | 1,935 | 2,059 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 7 | $ 8 | $ 12 |
[1] | (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality . |
Bank Premises and Equipment (Ba
Bank Premises and Equipment (Bank Premises and Equipment (Detail)) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Property, Plant and Equipment | |||
Land and improvements | [1] | $ 663 | $ 685 |
Buildings | [1] | 1,672 | 1,755 |
Equipment | 1,761 | 1,696 | |
Leasehold improvements | 398 | 403 | |
Construction in progress | [1] | 99 | 85 |
Land and improvements held for sale | 29 | 55 | |
Buildings held for sale | 9 | 20 | |
Equipment held for sale | 1 | 3 | |
Leasehold improvements held for sale | 0 | 3 | |
Accumulated depreciation and amortization | (2,567) | (2,466) | |
Total bank premises and equipment | [2] | $ 2,065 | $ 2,239 |
Building | Upper Limit | |||
Property, Plant and Equipment | |||
Useful life | 30 years | ||
Building | Lower limit | |||
Property, Plant and Equipment | |||
Useful life | 2 years | ||
Equipment | Upper Limit | |||
Property, Plant and Equipment | |||
Useful life | 30 years | ||
Equipment | Lower limit | |||
Property, Plant and Equipment | |||
Useful life | 2 years | ||
Leasehold Improvements | Upper Limit | |||
Property, Plant and Equipment | |||
Useful life | 30 years | ||
Leasehold Improvements | Lower limit | |||
Property, Plant and Equipment | |||
Useful life | 1 year | ||
[1] | (a) At December 31, 2016 and 2015 , land and improvements, buildings and construction in progress included $ 92 and $ 102 , respectively, associated with parcels of undeveloped land intended for future branch expansion. | ||
[2] | Includes $ 39 and $ 81 of bank premises and equipment held for sale at December 31, 2016 and 2015 , respectively. For further information refer to N ote 7 . |
Bank Premises and Equipment 101
Bank Premises and Equipment (Bank Premises and Equipment (Parenthetical) (Detail)) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment | |||
Land and improvements | [1] | $ 663 | $ 685 |
Branches and undeveloped parcels of land | |||
Property, Plant and Equipment | |||
Land and improvements | $ 92 | $ 102 | |
[1] | (a) At December 31, 2016 and 2015 , land and improvements, buildings and construction in progress included $ 92 and $ 102 , respectively, associated with parcels of undeveloped land intended for future branch expansion. |
Bank Premises and Equipment 102
Bank Premises and Equipment (Bank Premises and Equipment - Additional Information (Detail)) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Property, Plant and Equipment | |||||||
Depreciation and amortization expense | $ 242 | $ 256 | $ 254 | ||||
Rental income from leased premises | 16 | 18 | 17 | ||||
Gain on Branch Consolidation and Sales Plan | 19 | 0 | 0 | ||||
Land and improvements held for sale | 29 | 55 | |||||
Buildings held for sale | 9 | 20 | |||||
Equipment Held For Sale | 1 | 3 | |||||
Lease Term | 15 | ||||||
Land and improvements | [1] | 663 | 685 | ||||
Buildings | [1] | 1,672 | 1,755 | ||||
Equipment | $ 1,761 | 1,696 | |||||
Proceeds on sale of office complex | $ 31 | ||||||
Sale Leaseback Transaction Other Information | "25% of the office complex" | ||||||
Sale Leaseback Transaction Net Book Value | $ 10 | ||||||
Deferred Gain on Transaction | 10 | ||||||
Gain on Sale Leaseback Transaction | $ 11 | ||||||
Disposal group classified as held for sale | |||||||
Property, Plant and Equipment | |||||||
Operating Branch Locations | 64 | ||||||
Parcels Of Undeveloped Land | 35 | ||||||
Disposal group classified as held for sale | September 13 2016 Announcement | |||||||
Property, Plant and Equipment | |||||||
Parcels Of Undeveloped Land | 5 | ||||||
Branch Banking | |||||||
Property, Plant and Equipment | |||||||
Bank Premises Impairment | $ 32 | 109 | 20 | ||||
Branches and undeveloped parcels of land | |||||||
Property, Plant and Equipment | |||||||
Land and improvements | 92 | 102 | |||||
Branches and undeveloped parcels of land | September 13 2016 Announcement | |||||||
Property, Plant and Equipment | |||||||
Operating Branch Locations | 44 | ||||||
St. Louis MSA to Great Southern Bank | |||||||
Property, Plant and Equipment | |||||||
Gain on Branch Consolidation and Sales Plan | $ 8 | ||||||
Branch Consolidation And Sales Plan | Disposal group classified as held for sale | Bank Premises And Equipment | September 13 2016 Announcement | |||||||
Property, Plant and Equipment | |||||||
Land and improvements held for sale | 29 | ||||||
Buildings held for sale | 9 | ||||||
Equipment Held For Sale | 1 | ||||||
Land and improvements | 39 | ||||||
Buildings | 16 | ||||||
Equipment | 1 | ||||||
Pittsburgh MSA To First National Bank of Pennsylvania | |||||||
Property, Plant and Equipment | |||||||
Gain on Branch Consolidation and Sales Plan | $ 11 | ||||||
Cancelable And Noncancelable Lease Obligations | |||||||
Property, Plant and Equipment | |||||||
Occupancy Costs | $ 100 | $ 110 | $ 100 | ||||
[1] | (a) At December 31, 2016 and 2015 , land and improvements, buildings and construction in progress included $ 92 and $ 102 , respectively, associated with parcels of undeveloped land intended for future branch expansion. |
Bank Premises and Equipment (An
Bank Premises and Equipment (Annual Future Minimum Payments under Capital Leases and Noncancelable Operating Leases (Detail)) $ in Millions | Dec. 31, 2016USD ($) |
Noncancelable Operating Leases | |
Property, Plant and Equipment | |
2,017 | $ 88 |
2,018 | 84 |
2,019 | 77 |
2,020 | 65 |
2,021 | 52 |
Thereafter | 210 |
Total minimum lease payments | 576 |
Amounts representing interest | 0 |
Present value of net minimum lease payments | 0 |
Capital Leases | |
Property, Plant and Equipment | |
2,017 | 6 |
2,018 | 6 |
2,019 | 5 |
2,020 | 1 |
2,021 | 0 |
Thereafter | 1 |
Total minimum lease payments | 19 |
Amounts representing interest | 2 |
Present value of net minimum lease payments | $ 17 |
Operating Lease Equipment - Add
Operating Lease Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Operating lease equipment | Commercial Banking | ||
Property, Plant and Equipment | ||
Other Asset Impairment Charges | $ 20 | $ 36 |
Goodwill (Changes in the Net Ca
Goodwill (Changes in the Net Carrying Amount of Goodwill by Reporting Segment) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | |
Goodwill | |||
Goodwill | $ 3,381 | ||
Accumulated impairment losses | $ (965) | ||
Goodwill Roll Forward | |||
Net carrying amount, beginning of period: | 2,416 | $ 2,416 | |
Acquisition activity | 0 | 0 | |
Net carrying amount, end of period: | 2,416 | 2,416 | |
Commercial Banking | |||
Goodwill | |||
Goodwill | 1,363 | ||
Accumulated impairment losses | (750) | ||
Goodwill Roll Forward | |||
Net carrying amount, beginning of period: | 613 | 613 | |
Acquisition activity | 0 | 0 | |
Net carrying amount, end of period: | 613 | 613 | |
Branch Banking | |||
Goodwill | |||
Goodwill | 1,655 | ||
Accumulated impairment losses | 0 | ||
Goodwill Roll Forward | |||
Net carrying amount, beginning of period: | 1,655 | 1,655 | |
Acquisition activity | 0 | 0 | |
Net carrying amount, end of period: | 1,655 | 1,655 | |
Consumer Lending | |||
Goodwill | |||
Goodwill | 215 | ||
Accumulated impairment losses | (215) | ||
Goodwill Roll Forward | |||
Net carrying amount, beginning of period: | 0 | 0 | |
Acquisition activity | 0 | 0 | |
Net carrying amount, end of period: | 0 | 0 | |
Wealth and Asset Management | |||
Goodwill | |||
Goodwill | $ 148 | ||
Accumulated impairment losses | 0 | ||
Goodwill Roll Forward | |||
Net carrying amount, beginning of period: | 148 | 148 | |
Acquisition activity | 0 | 0 | |
Net carrying amount, end of period: | $ 148 | $ 148 |
Intangible Assets (Intangible A
Intangible Assets (Intangible Assets - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets by Major Class | |||
Estimated weighted-average life (in years) | 4 years 1 month 6 days | ||
Amortization of Intangible Assets | $ 2 | $ 2 | $ 4 |
Intangible Assets (Intangibl107
Intangible Assets (Intangible Assets) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 49 | $ 67 |
Accumulated Amortization | (40) | (55) |
Net Carrying Amount | 9 | 12 |
Core Deposits | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 34 | 34 |
Accumulated Amortization | (27) | (26) |
Net Carrying Amount | 7 | 8 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 15 | 33 |
Accumulated Amortization | (13) | (29) |
Net Carrying Amount | $ 2 | $ 4 |
Intangible Assets (Estimated Am
Intangible Assets (Estimated Amortization Expense Other Intangible Assets) (Detail) - Other Intangible Assets $ in Millions | Dec. 31, 2016USD ($) |
Finite-Lived Intangible Assets | |
2,017 | $ 2 |
2,018 | 1 |
2,019 | 1 |
2,020 | 1 |
2,021 | $ 1 |
VIE (Classifications of Consoli
VIE (Classifications of Consolidated VIE Assets, Liabilities and Noncontrolling Interest Included in the Bancorp's Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Assets | |||||||
Cash and due from banks | $ 2,392 | [1] | $ 2,540 | [1] | $ 3,091 | $ 3,178 | |
Commercial mortgage loans | 6,899 | 6,957 | |||||
Automobile loans | 9,983 | 11,493 | |||||
ALLL | (1,253) | [1] | (1,272) | [1] | $ (1,322) | $ (1,582) | |
Other assets | [1] | 7,844 | 7,965 | [2] | |||
Liabilities | |||||||
Other liabilities | [1] | 2,269 | 2,341 | ||||
Long-term debt | [1] | 14,388 | 15,810 | [2] | |||
Noncontrolling interests | 27 | 31 | |||||
Variable Interest Entity, Primary Beneficiary | |||||||
Assets | |||||||
Cash and due from banks | 85 | 152 | |||||
Commercial mortgage loans | 46 | 47 | |||||
Automobile loans | 1,170 | 2,490 | |||||
ALLL | (26) | (28) | |||||
Other assets | 9 | 14 | [3] | ||||
Total Assets | 1,284 | 2,675 | [3] | ||||
Liabilities | |||||||
Other liabilities | 3 | 3 | |||||
Long-term debt | 1,094 | 2,487 | [3] | ||||
Total liabilities | 1,097 | 2,490 | [3] | ||||
Noncontrolling interests | 27 | 31 | |||||
Variable Interest Entity, Primary Beneficiary | Automobile Loans | |||||||
Assets | |||||||
Cash and due from banks | 84 | 151 | |||||
Commercial mortgage loans | 0 | 0 | |||||
Automobile loans | 1,170 | 2,490 | |||||
ALLL | (6) | (11) | |||||
Other assets | 9 | 14 | [3] | ||||
Total Assets | 1,257 | 2,644 | [3] | ||||
Liabilities | |||||||
Other liabilities | 3 | 3 | |||||
Long-term debt | 1,094 | 2,487 | [3] | ||||
Total liabilities | 1,097 | 2,490 | [3] | ||||
Noncontrolling interests | 0 | 0 | |||||
Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments | |||||||
Assets | |||||||
Cash and due from banks | 1 | 1 | |||||
Commercial mortgage loans | 46 | 47 | |||||
Automobile loans | 0 | 0 | |||||
ALLL | (20) | (17) | |||||
Other assets | 0 | 0 | [3] | ||||
Total Assets | 27 | 31 | [3] | ||||
Liabilities | |||||||
Other liabilities | 0 | 0 | |||||
Long-term debt | 0 | 0 | [3] | ||||
Total liabilities | 0 | 0 | [3] | ||||
Noncontrolling interests | $ 27 | $ 31 | |||||
[1] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. | ||||||
[2] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $34 of debt issuance costs from other assets to long-term debt. For further inform ation refer to Note 1 . | ||||||
[3] | (a) Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $ 6 of debt issuance costs from other assets to long-term debt. For further information refer to Note 1. |
VIE (Classifications of Cons110
VIE (Classifications of Consolidated VIE Assets, Liabilities and Noncontrolling Interest Included in the Bancorp's Consolidated Balance Sheets) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | |||
Unamortized debt issuance costs | $ 33 | $ 34 | $ 36 |
Variable Interest Entity, Primary Beneficiary | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | |||
Unamortized debt issuance costs | $ 6 |
VIE (Variable Interest Entities
VIE (Variable Interest Entities - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Variable Interest Entity | ||||
OTTI | [1] | $ 16 | $ 5 | $ 24 |
Private equity investments | ||||
Variable Interest Entity | ||||
Private Equity Fund Impairment | 9 | 1 | 0 | |
Variable Interest Entity, Primary Beneficiary | Automobile Loans | ||||
Variable Interest Entity | ||||
Carry Value Of Loans Leases Or Lines Of Credit Securitized | 750 | 3,800 | ||
Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments | ||||
Variable Interest Entity | ||||
Maximum Exposure | 31 | 27 | ||
Variable Interest Entity, Not Primary Beneficiary | Loans Provided to VIEs | ||||
Variable Interest Entity | ||||
Unfunded commitment amounts | 937 | 969 | ||
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments | ||||
Variable Interest Entity | ||||
Maximum Exposure | 1,421 | 1,455 | ||
Bancorp's Investment in Affordable Housing Tax Credits | 1,421 | 1,455 | ||
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments | Qualified Affordable Housing Tax Credits | ||||
Variable Interest Entity | ||||
Bancorp's Investment in Affordable Housing Tax Credits | 1,300 | 1,300 | ||
Unfunded commitments | $ 349 | 356 | ||
Unfunded commitments expected funding date | 2,033 | |||
Variable Interest Entity, Not Primary Beneficiary | Private equity investments | ||||
Variable Interest Entity | ||||
Maximum Exposure | $ 232 | 271 | ||
Bancorp's Investment in Affordable Housing Tax Credits | 176 | 211 | ||
Unfunded commitment amounts | 56 | 60 | ||
Capital Contribution To Private Equity Investments | 14 | 30 | ||
OTTI | $ 9 | $ 1 | $ 0 | |
[1] | (a) Included in securiti es gains, net, in the Consolidated Statements of Income . |
VIE (Assets and Liabilities Rel
VIE (Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses) (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fifth Third Community Development Corporation Investments | ||
Variable Interest Entity | ||
Total Assets | $ 1,421 | $ 1,455 |
Total Liabilities | 357 | 367 |
Maximum Exposure | 1,421 | 1,455 |
Private equity investments | ||
Variable Interest Entity | ||
Total Assets | 176 | 211 |
Total Liabilities | 0 | 0 |
Maximum Exposure | 232 | 271 |
Loans Provided to VIEs | ||
Variable Interest Entity | ||
Total Assets | 1,735 | 1,630 |
Total Liabilities | 0 | 0 |
Maximum Exposure | $ 2,672 | $ 2,599 |
VIE (Investments in Qualified A
VIE (Investments in Qualified Affordable Housing Tax Credits) (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Other noninterest expense | ||||
Schedule of Equity Method Investments | ||||
Pre-tax investment and impairment losses | [1] | $ 144 | $ 126 | $ 118 |
Applicable income tax expense | ||||
Schedule of Equity Method Investments | ||||
Tax credits and other benefits | $ (220) | $ (205) | $ (185) | |
[1] | (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during the years ended December 31, 2016 , 2015 and 2014 . |
MSR (Activity Related to Mortga
MSR (Activity Related to Mortgage Banking Net Revenue) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale | |||||
Residential mortgage loan sales | [1] | $ 6,927 | $ 5,078 | [2] | $ 5,467 |
Origination fees and gains on loan sales | 186 | 171 | 153 | ||
Gross mortgage servicing fees | $ 199 | $ 222 | $ 246 | ||
[1] | Represents the unpaid principal balance at the time of the sale . | ||||
[2] | Excludes $ 568 of HFS residential mort gage loans previously modified in a TDR that were sold d uring the first quarter of 2015 . |
MSR (Activity Related to Mor115
MSR (Activity Related to Mortgage Banking Net Revenue) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | [2] | Dec. 31, 2014 | ||
Mortgage Loans on Real Estate | ||||||
Residential mortgage loan sales | [1] | $ 6,927 | $ 5,078 | $ 5,467 | ||
Residential Mortgage Loans | Troubled Debt Restructuring | ||||||
Mortgage Loans on Real Estate | ||||||
Residential mortgage loan sales | $ 568 | |||||
[1] | Represents the unpaid principal balance at the time of the sale . | |||||
[2] | Excludes $ 568 of HFS residential mort gage loans previously modified in a TDR that were sold d uring the first quarter of 2015 . |
MSR (Changes in the Servicing R
MSR (Changes in the Servicing Rights) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Assets at Fair Value | |||
Carrying amount before valuation allowance as of the beginning of the period | $ 1,204 | $ 1,392 | |
Servicing rights that result from the transfer of residential mortgage loans | 83 | 63 | |
Amortization | (131) | (140) | $ (121) |
Other-than-temporary impairment | 0 | (111) | |
Carrying amount before valuation allowance | 1,156 | 1,204 | 1,392 |
Valuation allowance for servicing rights: | |||
Beginning balance | (419) | (534) | |
(Provision for) recovery of MSR impairment | 7 | 4 | |
Other-than-temporary impairment | 0 | 111 | |
Ending balance | (412) | (419) | $ (534) |
Carrying amount as of the end of the period | $ 744 | $ 785 |
MSR (Estimated Amortization Exp
MSR (Estimated Amortization Expense Mortgage Servicing Rights) (Detail) - Mortgage Servicing Rights $ in Millions | Dec. 31, 2016USD ($) |
Finite-Lived Intangible Assets | |
2,017 | $ 142 |
2,018 | 124 |
2,019 | 109 |
2,020 | 96 |
2,021 | $ 84 |
MSR (Fair Value of the Servicin
MSR (Fair Value of the Servicing Rights) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fixed Rate Residential Mortgage Loans | ||
Servicing Assets at Fair Value | ||
Fair value at beginning of period | $ 757 | $ 823 |
Fair value at end of period | 722 | 757 |
Adjustable Rate Residential Mortgage Loans | ||
Servicing Assets at Fair Value | ||
Fair value at beginning of period | 27 | 33 |
Fair value at end of period | 22 | 27 |
Fixed Rate Automobile Loans | ||
Servicing Assets at Fair Value | ||
Fair value at beginning of period | 1 | 2 |
Fair value at end of period | $ 0 | $ 1 |
MSR (Activity Related to the MS
MSR (Activity Related to the MSR Portfolio) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Assets at Fair Value | |||
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (Mortgage banking net revenue) | $ 24 | $ 90 | $ 95 |
Recovery of (provision for) MSR impairment (Mortgage banking net revenue) | $ 7 | $ 4 | $ (65) |
MSR (Servicing Rights and Resid
MSR (Servicing Rights and Residual Interests Economic Assumptions) (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fixed Rate Residential Mortgage | ||
Schedule of Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 7 years 2 months 12 days | 6 years 10 months 24 days |
Prepayment Speed (annual) | 10.30% | 11.00% |
OAS spread (bps) | 5.84% | 5.34% |
Adjustable Rate Residential Mortgage | ||
Schedule of Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 2 years 9 months 18 days | 3 years 4 months 24 days |
Prepayment Speed (annual) | 30.20% | 25.20% |
OAS spread (bps) | 6.79% | 30.30% |
MSR (Sales of Receivables and S
MSR (Sales of Receivables and Servicing Rights - Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Servicing Assets at Fair Value | ||||||
Residential mortgage loan sales | [1] | $ 6,927 | $ 5,078 | [2] | $ 5,467 | |
Sevicing of residential mortgage loans for other investors | 53,600 | 59,000 | ||||
Amortization | $ (131) | $ (140) | $ (121) | |||
Residential Mortgage Loans | Troubled Debt Restructuring | ||||||
Servicing Assets at Fair Value | ||||||
Gain on sale of HFS loans | $ 37 | |||||
Residential mortgage loan sales | $ 568 | |||||
[1] | Represents the unpaid principal balance at the time of the sale . | |||||
[2] | Excludes $ 568 of HFS residential mort gage loans previously modified in a TDR that were sold d uring the first quarter of 2015 . |
MSR (Sensitivity of the Current
MSR (Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions) (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($) | [1] | |
Fixed Rate Residential Mortgage | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption | ||
Fair Value | $ 722 | |
Weighted- Average Life (in years) | 6 years 6 months | |
Prepayment Speed (annual) | 10.20% | |
Impact of Adverse Change on Fair Value 10% | $ 28 | |
Impact of Adverse Change on Fair Value 20% | 55 | |
Impact of Adverse Change on Fair Value 50% | $ 124 | |
OAS spread (bps) | 65.40% | |
Impact of Adverse Change on Fair Value 10% | $ 18 | |
Impact of Adverse Change on Fair Value 20% | 35 | |
Adjustable Rate Residential Mortgage | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption | ||
Fair Value | $ 22 | |
Weighted- Average Life (in years) | 3 years 2 months 12 days | |
Prepayment Speed (annual) | 25.30% | |
Impact of Adverse Change on Fair Value 10% | $ 1 | |
Impact of Adverse Change on Fair Value 20% | 3 | |
Impact of Adverse Change on Fair Value 50% | $ 6 | |
OAS spread (bps) | 73.80% | |
Impact of Adverse Change on Fair Value 10% | $ 0 | |
Impact of Adverse Change on Fair Value 20% | $ 1 | |
[1] | (a) The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial . |
Derivatives (Derivative Financi
Derivatives (Derivative Financial Instruments - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2009 | |
Derivative | |||
Valuation adjustments related to the credit risk associated with counterparties of customer accommodation derivative contracts | $ 6 | $ 9 | |
Maximum Length Of Time Hedged In Interest Rate Cash Flow Hedge | 3 years | ||
Notional amount of the risk participations agreements | $ 2,467 | 1,664 | |
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||
Credit Risk | |||
Derivative | |||
Credit Risk Derivatives Average Life | 3 years 1 month 6 days | ||
Cash Flow Hedging | |||
Derivative | |||
Gains or Losses Reclassified from AOCI into Earnings | $ 0 | 0 | |
Interest Rate Contract | |||
Derivative | |||
Fair value of risk participation agreements | 4 | 3 | |
Interest Rate Contract | Cash Flow Hedging | |||
Derivative | |||
Deferred gains, net of tax, on cash flow hedges were recorded in accumulated other comprehensive income | 10 | 22 | |
Net deferred gains, net of tax, recorded in accumulated other comprehensive income are expected to be reclassified into earnings | 15 | ||
Total collateral | |||
Derivative | |||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 444 | 821 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 399 | $ 504 |
Derivatives (Notional Amounts a
Derivatives (Notional Amounts and Fair Values for All Derivative Instruments Included in the Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value | ||
Fair value - Derivative Assets | $ 1,057 | $ 1,852 |
Fair value - Derivative Liabilities | 666 | 938 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 345 | 411 |
Fair value - Derivative Liabilities | 12 | 2 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 323 | 372 |
Fair value - Derivative Liabilities | 12 | 2 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | Interest Rate Swap | Long-Term Debt | ||
Derivatives, Fair Value | ||
Notional amount | 3,455 | 2,705 |
Fair value - Derivative Assets | 323 | 372 |
Fair value - Derivative Liabilities | 12 | 2 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 22 | 39 |
Fair value - Derivative Liabilities | 0 | 0 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | Interest Rate Swap | Commercial and Industrial Loans | ||
Derivatives, Fair Value | ||
Notional amount | 4,475 | 5,475 |
Fair value - Derivative Assets | 22 | 39 |
Fair value - Derivative Liabilities | 0 | 0 |
Nondesignated | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 712 | 1,441 |
Fair value - Derivative Liabilities | 654 | 936 |
Nondesignated | Risk Management and Other Business Purposes | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 185 | 504 |
Fair value - Derivative Liabilities | 133 | 71 |
Nondesignated | Risk Management and Other Business Purposes | Interest Rate Contract | Servicing Rights | ||
Derivatives, Fair Value | ||
Notional amount | 10,522 | 11,657 |
Fair value - Derivative Assets | 165 | 239 |
Fair value - Derivative Liabilities | 39 | 9 |
Nondesignated | Risk Management and Other Business Purposes | Forward Contracts | Assets Held For Sale | Residential Mortgage | ||
Derivatives, Fair Value | ||
Notional amount | 1,823 | 1,330 |
Fair value - Derivative Assets | 20 | 3 |
Fair value - Derivative Liabilities | 3 | 1 |
Nondesignated | Risk Management and Other Business Purposes | Warrant | ||
Derivatives, Fair Value | ||
Notional amount | 369 | |
Fair value - Derivative Assets | 262 | |
Fair value - Derivative Liabilities | 0 | |
Nondesignated | Risk Management and Other Business Purposes | Swap | ||
Derivatives, Fair Value | ||
Notional amount | 1,300 | 1,292 |
Fair value - Derivative Assets | 0 | 0 |
Fair value - Derivative Liabilities | 91 | 61 |
Nondesignated | Risk Management and Other Business Purposes | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Notional amount | 111 | |
Fair value - Derivative Assets | 0 | |
Fair value - Derivative Liabilities | 0 | |
Nondesignated | Customer Accommodation | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 527 | 937 |
Fair value - Derivative Liabilities | 521 | 865 |
Nondesignated | Customer Accommodation | Interest Rate Contract | ||
Derivatives, Fair Value | ||
Notional amount | 33,431 | 29,889 |
Fair value - Derivative Assets | 205 | 242 |
Fair value - Derivative Liabilities | 210 | 249 |
Nondesignated | Customer Accommodation | Interest Rate Lock Commitments | ||
Derivatives, Fair Value | ||
Notional amount | 701 | 721 |
Fair value - Derivative Assets | 13 | 15 |
Fair value - Derivative Liabilities | 1 | 0 |
Nondesignated | Customer Accommodation | Commodity Contract | ||
Derivatives, Fair Value | ||
Notional amount | 2,095 | 2,464 |
Fair value - Derivative Assets | 107 | 294 |
Fair value - Derivative Liabilities | 106 | 276 |
Nondesignated | Customer Accommodation | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Notional amount | 11,013 | 16,243 |
Fair value - Derivative Assets | 202 | 386 |
Fair value - Derivative Liabilities | $ 204 | $ 340 |
Derivatives (Change in the Fair
Derivatives (Change in the Fair Value for Interest Rate Contracts and the Related Hedged Items) (Detail) - Fair Value Hedging - Interest Rate Contract - Interest Expense, Long-Term Debt - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivatives, Fair Value | |||
Change in fair value of interest rate swaps hedging long-term debt | $ (59) | $ (29) | $ 120 |
Change in fair value of hedged long-term debt | $ 54 | $ 25 | $ (126) |
Derivatives (Net Gains (Losses)
Derivatives (Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges) (Detail) - Cash Flow Hedging - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) | |||
Amount of pretax net (losses) gains recognized in OCI | $ 30 | $ 74 | $ 60 |
Interest Income (Expense) Net | |||
Derivative Instruments, Gain (Loss) | |||
Amount of pretax net gains reclassified from OCI into net income | $ 48 | $ 75 | $ 44 |
Derivatives (Net Gains (Loss127
Derivatives (Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used for Risk Management and Other Business Purposes) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Derivative Instruments, Gain (Loss) | |||||
Net gains (losses) recorded in earnings | $ 24 | $ 90 | $ 95 | ||
Interest Rate Contract | Forward Contracts | Loans Held-for-Sale | Mortgage Banking Revenue | |||||
Derivative Instruments, Gain (Loss) | |||||
Net gains (losses) recorded in earnings | 14 | 8 | (18) | ||
Interest Rate Contract | Servicing Rights | Mortgage Banking Revenue | Residential Mortgage | |||||
Derivative Instruments, Gain (Loss) | |||||
Net gains (losses) recorded in earnings | 24 | 90 | 95 | ||
Foreign Exchange Contract | Forward Contracts | Other Noninterest Income | |||||
Derivative Instruments, Gain (Loss) | |||||
Net gains (losses) recorded in earnings | 2 | 23 | 14 | ||
Equity Contract | Warrant | Other Noninterest Income | |||||
Derivative Instruments, Gain (Loss) | |||||
Net gains (losses) recorded in earnings | 73 | [1] | 325 | [1] | 31 |
Equity Contract | Swap | Other Noninterest Income | |||||
Derivative Instruments, Gain (Loss) | |||||
Net gains (losses) recorded in earnings | $ (56) | $ (37) | $ (38) | ||
[1] | a) The Bancorp recognized a net gain of $ 9 on the exercise of the remaining warrant during the fourth quarter of 2016 and a net gain of $89 on both the sale and partial exercise of the warrant during the fourth quarter of 2015 |
Derivatives (Net Gains (Loss128
Derivatives (Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used for Risk Management and Other Business Purposes) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Common Class A Member | Vantiv Holding, LLC | ||
Derivative Instruments, Gain (Loss) | ||
Proceeds From Warrant Exercises | $ 9 | $ 89 |
Derivatives (Risk Ratings of th
Derivatives (Risk Ratings of the Notional Amount of Risk Participation Agreements) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | $ 2,467 | $ 1,664 |
Pass | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | 2,447 | 1,650 |
Risk Level, Special Mention | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | 14 | 7 |
Risk Level, Substandard | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | $ 6 | $ 7 |
Derivatives (Net Gains (Loss130
Derivatives (Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used For Customer Accommodation) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | $ 24 | $ 90 | $ 95 |
Interest Rate Contract | Customer Contracts | Corporate Banking Revenue | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 22 | 23 | 19 |
Interest Rate Contract | Customer Contracts | Other noninterest expense | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 0 | (1) | (3) |
Interest Rate Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 1 | 1 | 3 |
Interest Rate Contract | Interest Rate Lock Commitments | Mortgage Banking Revenue | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 114 | 111 | 124 |
Commodity Contract | Customer Contracts | Corporate Banking Revenue | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 6 | 5 | 6 |
Commodity Contract | Customer Contracts | Other noninterest expense | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | (1) | (2) | 0 |
Commodity Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 1 | 6 | (7) |
Foreign Exchange Contract | Customer Contracts | Corporate Banking Revenue | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | 62 | 70 | 72 |
Foreign Exchange Contract | Customer Contracts | Other noninterest expense | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | (2) | 0 | 0 |
Foreign Exchange Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | |||
Derivative Instruments, Gain (Loss) | |||
Net gains (losses) recorded in earnings | $ 1 | $ 0 | $ 0 |
Derivatives (Offsetting Derivat
Derivatives (Offsetting Derivative Financial Instruments) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | $ 1,057 | $ 1,852 | ||
Derivative, Collateral, Obligation to Return Cash | (374) | (582) | ||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | 666 | 938 | ||
Assets | ||||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | 1,044 | [1] | 1,575 | [2] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (374) | (512) | ||
Derivative, Collateral, Obligation to Return Cash | (377) | [3] | (627) | [4] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 293 | 436 | ||
Liabilities | ||||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | 665 | [1] | 938 | [2] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (374) | (512) | ||
Derivative Liabilities, Collateral, Right to Reclaim Cash | (125) | [3] | (173) | [4] |
Derivative Fair Value Amount Offset Against Collateral Net | 166 | 253 | ||
Derivative | Assets | ||||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | 1,044 | [1] | 1,575 | [2] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (374) | (512) | ||
Derivative, Collateral, Obligation to Return Cash | (377) | [3] | (627) | [4] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 293 | 436 | ||
Derivative | Liabilities | ||||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | 665 | [1] | 938 | [2] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (374) | (512) | ||
Derivative Liabilities, Collateral, Right to Reclaim Cash | (125) | [3] | (173) | [4] |
Derivative Fair Value Amount Offset Against Collateral Net | $ 166 | $ 253 | ||
[1] | (a) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements. | |||
[2] | Amount does not include the stock warrant associated with Vantiv Holding, LLC and IRLCs because these instruments are not subject to master netting or similar arrangement s . | |||
[3] | (b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related d erivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. | |||
[4] | Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. |
Other Assets (Components of Oth
Other Assets (Components of Other Assets Included in the Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Prepaid Expense and Other Assets | ||||
Accounts receivable and drafts-in-process | $ 2,158 | $ 1,653 | ||
Partnership investments | 1,689 | 1,756 | ||
Bank owned life insurance | 1,681 | 1,651 | ||
Derivative instruments | 1,057 | 1,852 | ||
Investment in Vantiv Holding, LLC | 414 | 360 | ||
Accrued interest and fees receivable | 350 | 329 | ||
Vantiv, Inc. TRA put/call receivable | 165 | 0 | ||
OREO and other repossessed personal property | 84 | 155 | ||
Prepaid expenses | 83 | 101 | ||
Other | 163 | 108 | [1] | |
Total other assets | [2] | $ 7,844 | $ 7,965 | [1] |
[1] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $34 of debt issuance costs from other assets to long-term debt. For further inform ation refer to Note 1 . | |||
[2] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. |
Other Assets (Components of 133
Other Assets (Components of Other Assets Included in the Consolidated Balance Sheets) (Parenthetical) (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Assets [Abstract] | |
Unamortized debt issuance cost | $ 34 |
Other Assets (Other Assets - Ad
Other Assets (Other Assets - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||||||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | [2] | Sep. 30, 2013 | [2] | Jun. 30, 2013 | [2] | Dec. 31, 2012 | [2] | Mar. 31, 2012 | Jun. 30, 2009 | |||
Other assets | |||||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||||||||||||||
OTTI | [1] | $ 16 | $ 5 | $ 24 | |||||||||||
Private equity investments | |||||||||||||||
Other assets | |||||||||||||||
Private Equity Fund Impairment | $ 9 | $ 1 | $ 0 | ||||||||||||
Vantiv Holding, LLC | |||||||||||||||
Other assets | |||||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||||||||||||||
Percentage of ownership under the equity method of accounting | 17.90% | 18.00% | [2] | 23.00% | 25.00% | 28.00% | 33.00% | 39.00% | 49.00% | ||||||
Payment From Vantiv Inc to Bancorp To Terminate And Settle Certain Remaining TRA Cash Flows | $ 171 | ||||||||||||||
Potential Termination And Settlement Of Tra Cash Flows | $ 394 | ||||||||||||||
[1] | (a) Included in securiti es gains, net, in the Consolidated Statements of Income . | ||||||||||||||
[2] | (a) The Bancorp’s remaining investment in Vantiv Holding, LLC of $ 414 as of December 31, 201 6 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. |
Short-Term Borrowings (Summary
Short-Term Borrowings (Summary of Short-Term Borrowings and Weighted-Average Rates) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Short Term Debt | ||
Federal funds purchased | $ 132 | $ 151 |
Other short-term borrowings | 3,535 | 1,507 |
Federal Funds Purchased | ||
Short Term Debt | ||
Federal funds purchased | 132 | 151 |
Short-term borrowings, average | 506 | 920 |
Short-term borrowings, maximum month-end balance | $ 739 | $ 200 |
Short-term borrowngs, rate | 0.61% | 0.30% |
Short-term borrowings, average rate | 0.39% | 0.13% |
Other Short Term Borrowings | ||
Short Term Debt | ||
Other short-term borrowings | $ 3,535 | $ 1,507 |
Short-term borrowings, average | 2,845 | 1,721 |
Short-term borrowings, maximum month-end balance | $ 6,374 | $ 4,904 |
Short-term borrowngs, rate | 0.54% | 0.11% |
Short-term borrowings, average rate | 0.36% | 0.12% |
Short-Term Borrowings (Componen
Short-Term Borrowings (Components of Other Short-Term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Short Term Debt | ||
FHLB advances | $ 2,500 | $ 0 |
Securities sold under repurchase agreements | 661 | 925 |
Derivative collateral | 374 | 582 |
Total other short-term borrowings | $ 3,535 | $ 1,507 |
Short-Term Borrowings (Securiti
Short-Term Borrowings (Securities Sold Under Repurchase Agreements By Collateral Type) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Short Term Debt | ||
Securities sold under repurchase agreements | $ 661 | $ 925 |
Overnight maturity | U.S. Treasury and federal agencies | ||
Short Term Debt | ||
Securities sold under repurchase agreements | 0 | 279 |
Overnight maturity | Agency mortgage-backed securities | Residential mortgage backed securities | ||
Short Term Debt | ||
Securities sold under repurchase agreements | $ 661 | $ 646 |
Long-Term Debt (Summary of the
Long-Term Debt (Summary of the Bancorp's Long-Term Borrowings) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | |||
Debt Instrument | ||||
Long-term debt | [1] | $ 14,388 | $ 15,810 | [2] |
Variable Interest Entity, Primary Beneficiary | ||||
Debt Instrument | ||||
Long-term debt | 1,094 | 2,487 | [3] | |
Parent Company | ||||
Debt Instrument | ||||
Long-term debt | $ 5,170 | |||
Parent Company | Senior Debt Obligations | Fixed Rate 3.625 Percent Notes Due 2016 | ||||
Debt Instrument | ||||
Interest rate | 3.625% | |||
Long-term debt | $ 0 | 1,000 | [4] | |
Parent Company | Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Feb. 28, 2014 | |||
Maturity date(s) End | Mar. 1, 2019 | |||
Interest rate | 2.30% | |||
Long-term debt | $ 499 | 498 | [4] | |
Parent Company | Senior Debt Obligations | Fixed Rate 2.875 Percent Due 2020 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Jul. 27, 2015 | |||
Maturity date(s) End | Jul. 27, 2020 | |||
Interest rate | 2.875% | |||
Long-term debt | $ 1,096 | 1,094 | [4] | |
Parent Company | Senior Debt Obligations | Fixed Rate 3.50 Percent Due 2022 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Mar. 7, 2012 | |||
Maturity date(s) End | Mar. 15, 2022 | |||
Interest rate | 3.50% | |||
Long-term debt | $ 497 | 496 | [4] | |
Parent Company | Subordinated Debt | Floating Rate 0.99 Percent Notes Due 2016 | ||||
Debt Instrument | ||||
Maturity date(s) Start | [5],[6] | Dec. 13, 2006 | ||
Maturity date(s) End | [5],[6] | Dec. 20, 2016 | ||
Variable interest rate | [5],[6] | 0.99% | ||
Long-term debt | [5],[6] | $ 0 | 250 | [4] |
Parent Company | Subordinated Debt | Fixed Rate 5.45 Percent Notes Due 2017 | ||||
Debt Instrument | ||||
Maturity date(s) Start | [5] | Dec. 20, 2006 | ||
Maturity date(s) End | [5] | Jan. 15, 2017 | ||
Interest rate | [5] | 5.45% | ||
Long-term debt | [5] | $ 501 | 520 | [4] |
Parent Company | Subordinated Debt | Fixed Rate 4.50 Percent Notes Due 2018 | ||||
Debt Instrument | ||||
Maturity date(s) Start | [5] | May 23, 2003 | ||
Maturity date(s) End | [5] | Jun. 1, 2018 | ||
Interest rate | [5] | 4.50% | ||
Long-term debt | [5] | $ 519 | 532 | [4] |
Parent Company | Subordinated Debt | Fixed Rate 4.30 Notes Due 2024 | ||||
Debt Instrument | ||||
Maturity date(s) Start | [5] | Nov. 20, 2013 | ||
Maturity date(s) End | [5] | Jan. 16, 2024 | ||
Interest rate | [5] | 4.30% | ||
Long-term debt | [5] | $ 746 | 746 | [4] |
Parent Company | Subordinated Debt | Fixed Rate 8.25 Percent Notes Due 2038 | ||||
Debt Instrument | ||||
Interest rate | [5] | 8.25% | ||
Long-term debt | [5] | $ 1,312 | 1,320 | [4] |
Subsidiaries | ||||
Debt Instrument | ||||
Long-term debt | $ 9,218 | |||
Subsidiaries | Debt Other Variable Percent Due 2017 Through 2039 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Jan. 1, 2017 | |||
Maturity date(s) End | Dec. 31, 2039 | |||
Long-term debt | $ 124 | 143 | [4] | |
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Fixed Rate | Automobile Loans | ||||
Debt Instrument | ||||
Maturity date(s) Start | Jan. 1, 2018 | |||
Maturity date(s) End | Dec. 31, 2022 | |||
Long-term debt | $ 1,061 | 2,301 | [4] | |
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Fixed Rate | Automobile Loans | Lower limit | ||||
Debt Instrument | ||||
Interest rate | 0.68% | |||
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Fixed Rate | Automobile Loans | Upper Limit | ||||
Debt Instrument | ||||
Interest rate | 1.79% | |||
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Floating Rate | Automobile Loans | ||||
Debt Instrument | ||||
Maturity date(s) End | [6] | Dec. 31, 2018 | ||
Variable interest rate | [6] | 1.25% | ||
Long-term debt | [6] | $ 33 | 186 | [4] |
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Mar. 15, 2016 | |||
Maturity date(s) End | Mar. 15, 2019 | |||
Interest rate | 2.30% | |||
Long-term debt | $ 748 | 0 | [4] | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.15 Percent Notes Due 2016 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Nov. 20, 2013 | |||
Maturity date(s) End | Nov. 18, 2016 | |||
Interest rate | 1.15% | |||
Long-term debt | $ 0 | 999 | [4] | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 0.90 Percent Notes Due 2016 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Feb. 28, 2013 | |||
Maturity date(s) End | Feb. 26, 2016 | |||
Interest rate | 0.90% | |||
Long-term debt | $ 0 | 400 | [4] | |
Subsidiaries | Senior Debt Obligations | Floating Rate 0.87 Percent Notes Due 2016 | ||||
Debt Instrument | ||||
Maturity date(s) Start | [6] | Nov. 20, 2013 | ||
Maturity date(s) End | [6] | Nov. 18, 2016 | ||
Variable interest rate | [6] | 0.87% | ||
Long-term debt | [6] | $ 0 | 749 | [4] |
Subsidiaries | Senior Debt Obligations | Fixed rate 1.35 percent notes due 2017 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Apr. 25, 2014 | |||
Maturity date(s) End | Jun. 1, 2017 | |||
Interest rate | 1.35% | |||
Long-term debt | $ 650 | 652 | [4] | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.15 Percent Notes Due 2018 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Aug. 20, 2015 | |||
Maturity date(s) End | Aug. 20, 2018 | |||
Interest rate | 2.15% | |||
Long-term debt | $ 997 | 996 | [4] | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.45 Percent Notes Due 2018 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Feb. 28, 2013 | |||
Maturity date(s) End | Feb. 28, 2018 | |||
Interest rate | 1.45% | |||
Long-term debt | $ 598 | 597 | [4] | |
Subsidiaries | Senior Debt Obligations | Floating Rate 1.82 Percent Notes Due 2018 | ||||
Debt Instrument | ||||
Maturity date(s) Start | [6] | Aug. 20, 2015 | ||
Maturity date(s) End | [6] | Aug. 20, 2018 | ||
Variable interest rate | [6] | 1.82% | ||
Long-term debt | [6] | $ 250 | 250 | [4] |
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.375 Percent Notes Due 2019 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Apr. 25, 2014 | |||
Maturity date(s) End | Apr. 25, 2019 | |||
Interest rate | 2.375% | |||
Long-term debt | $ 849 | 848 | [4] | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.625 Percent Notes Due 2019 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Sep. 27, 2016 | |||
Maturity date(s) End | Sep. 27, 2019 | |||
Interest rate | 1.625% | |||
Long-term debt | $ 737 | 0 | [4] | |
Subsidiaries | Senior Debt Obligations | Floating Rate 1.59 Percent Notes Due 2019 | ||||
Debt Instrument | ||||
Maturity date(s) Start | [6] | Sep. 27, 2016 | ||
Maturity date(s) End | [6] | Sep. 27, 2019 | ||
Variable interest rate | [6] | 1.59% | ||
Long-term debt | [6] | $ 249 | 0 | [4] |
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.25 Percent Notes Due 2021 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Jun. 14, 2016 | |||
Maturity date(s) End | Jun. 14, 2021 | |||
Interest rate | 2.25% | |||
Long-term debt | $ 1,246 | 0 | [4] | |
Subsidiaries | Senior Debt Obligations | Fixed rate 2.875 percent notes due 2021 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Sep. 5, 2014 | |||
Maturity date(s) End | Oct. 1, 2021 | |||
Interest rate | 2.875% | |||
Long-term debt | $ 845 | 844 | [4] | |
Subsidiaries | Senior Debt Obligations | Floating Rate 0.82 Percent Notes Due 2016 | ||||
Debt Instrument | ||||
Maturity date(s) Start | [6] | Feb. 28, 2013 | ||
Maturity date(s) End | [6] | Feb. 26, 2016 | ||
Variable interest rate | [6] | 0.82% | ||
Long-term debt | [6] | $ 0 | 300 | [4] |
Subsidiaries | Subordinated Debt | Fixed Rate 3.85 Percent Notes Due 2026 | ||||
Debt Instrument | ||||
Maturity date(s) Start | [5] | Mar. 15, 2016 | ||
Maturity date(s) End | [5] | Mar. 15, 2026 | ||
Interest rate | [5] | 3.85% | ||
Long-term debt | [5] | $ 746 | 0 | [4] |
Subsidiaries | Junior Subordinated Debt | Floating Rate 2.38% - 2.65% Debentures Due 2035 | First Charter Capital Trusts | ||||
Debt Instrument | ||||
Maturity date(s) Start | [6],[7] | Jun. 28, 2005 | ||
Maturity date(s) End | [6],[7] | Dec. 15, 2035 | ||
Long-term debt | [6],[7] | $ 52 | 52 | [4] |
Subsidiaries | Junior Subordinated Debt | Floating Rate 2.38% - 2.65% Debentures Due 2035 | Lower limit | First Charter Capital Trusts | ||||
Debt Instrument | ||||
Variable interest rate | [6],[7] | 2.38% | ||
Subsidiaries | Junior Subordinated Debt | Floating Rate 2.38% - 2.65% Debentures Due 2035 | Upper Limit | First Charter Capital Trusts | ||||
Debt Instrument | ||||
Variable interest rate | [6],[7] | 2.65% | ||
Subsidiaries | Federal Home Loan Bank Advances 0.05 To 6.87 Percent Due 2017 Through 2041 | FHLB Rate 0.05 To 6.87 Percent Debentures Due 2017 And 2041 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Jan. 1, 2017 | |||
Maturity date(s) End | Dec. 31, 2041 | |||
Long-term debt | $ 33 | $ 37 | [4] | |
Subsidiaries | Federal Home Loan Bank Advances 0.05 To 6.87 Percent Due 2017 Through 2041 | FHLB Rate 0.05 To 6.87 Percent Debentures Due 2017 And 2041 | Lower limit | ||||
Debt Instrument | ||||
Interest rate | 0.05% | |||
Subsidiaries | Federal Home Loan Bank Advances 0.05 To 6.87 Percent Due 2017 Through 2041 | FHLB Rate 0.05 To 6.87 Percent Debentures Due 2017 And 2041 | Upper Limit | ||||
Debt Instrument | ||||
Interest rate | 6.87% | |||
[1] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. | |||
[2] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $34 of debt issuance costs from other assets to long-term debt. For further inform ation refer to Note 1 . | |||
[3] | (a) Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $ 6 of debt issuance costs from other assets to long-term debt. For further information refer to Note 1. | |||
[4] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $ 34 of debt issuance costs from other assets to long-term debt. For furthe r information refer to Note 1. | |||
[5] | In aggregate, $ 2.7 billion and $ 2.4 billion qualifies as Tier II capital for regulatory capital purposes as of December, 31 2016 and 2015 , respectively. | |||
[6] | These rates reflect the floating rates as of December 31, 2016 . | |||
[7] | Under the Basel III Final Rule transition provisions, $ 0 and $ 13 qualified as Tier I capital as of December 31, 2016 and 2015 , respectively, while the remaining amounts as of December 31, 2016 and 2015 qualify as Tier II capital. Refer to Note 28 for further information |
Long-Term Debt (Summary of t139
Long-Term Debt (Summary of the Bancorp's Long-Term Borrowings) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Debt Instrument | |||||
Long-term debt | [1] | $ 14,388 | $ 15,810 | [2] | |
Unamortized debt issuance expense | 33 | 34 | $ 36 | ||
Amount Qualifying As Tier Two Capital For Regulatory Capital Purposes | |||||
Debt Instrument | |||||
Long-term debt | 2,700 | 2,400 | |||
Amount Qualifying As Tier One Capital Under Basel III Final Rule | |||||
Debt Instrument | |||||
Long-term debt | $ 0 | $ 13 | |||
[1] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. | ||||
[2] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $34 of debt issuance costs from other assets to long-term debt. For further inform ation refer to Note 1 . |
Long-Term Debt (Schedule of Agg
Long-Term Debt (Schedule of Aggregate Maturities of Long-Term Debt Obligations) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | [2] | |
Debt Instrument | ||||
Contractually obligated payments for long-term debt due in 2017 | $ 1,156 | |||
Contractually obligated payments for long-term debt due in 2018 | 2,643 | |||
Contractually obligated payments for long-term debt due in 2019 | 3,281 | |||
Contractually obligated payments for long-term debt due in 2020 | 1,643 | |||
Contractually obligated payments for long-term debt due in 2021 | 2,196 | |||
Thereafter | 3,469 | |||
Total | [1] | 14,388 | $ 15,810 | |
Parent Company | ||||
Debt Instrument | ||||
Contractually obligated payments for long-term debt due in 2017 | 501 | |||
Contractually obligated payments for long-term debt due in 2018 | 519 | |||
Contractually obligated payments for long-term debt due in 2019 | 499 | |||
Contractually obligated payments for long-term debt due in 2020 | 1,096 | |||
Contractually obligated payments for long-term debt due in 2021 | 0 | |||
Thereafter | 2,555 | |||
Total | 5,170 | |||
Subsidiaries | ||||
Debt Instrument | ||||
Contractually obligated payments for long-term debt due in 2017 | 655 | |||
Contractually obligated payments for long-term debt due in 2018 | 2,124 | |||
Contractually obligated payments for long-term debt due in 2019 | 2,782 | |||
Contractually obligated payments for long-term debt due in 2020 | 547 | |||
Contractually obligated payments for long-term debt due in 2021 | 2,196 | |||
Thereafter | 914 | |||
Total | $ 9,218 | |||
[1] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. | |||
[2] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $34 of debt issuance costs from other assets to long-term debt. For further inform ation refer to Note 1 . |
Long-Term Debt (Long-Term Debt
Long-Term Debt (Long-Term Debt - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Debt Instrument | |||||||
Long-term debt | [1] | $ 14,388 | $ 15,810 | [2] | |||
Debt, outstanding principal balance | 14,100 | 15,500 | |||||
Debt, discounts and premiums | 24 | 24 | |||||
Unamortized debt issuance costs | 33 | 34 | $ 36 | ||||
Additions for mark-to-market adjustments on hedged debt | 328 | 382 | |||||
Parent Company | |||||||
Debt Instrument | |||||||
Long-term debt | 5,170 | ||||||
Parent Company | Senior Debt Obligations | Fixed Rate 3.625 Percent Notes Due 2016 | |||||||
Debt Instrument | |||||||
Long-term debt | 0 | 1,000 | [3] | ||||
Parent Company | Senior Debt Obligations | Fixed Rate 3.50 Percent Due 2022 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 497 | 496 | [3] | ||||
Issue of senior notes to third party investors | $ 500 | ||||||
Maturity date(s) Start | Mar. 7, 2012 | ||||||
Maturity date(s) End | Mar. 15, 2022 | ||||||
Parent Company | Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 499 | 498 | [3] | ||||
Issue of senior notes to third party investors | 500 | ||||||
Maturity date(s) Start | Feb. 28, 2014 | ||||||
Maturity date(s) End | Mar. 1, 2019 | ||||||
Parent Company | Senior Debt Obligations | Fixed Rate 2.875 Percent Due 2020 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 1,096 | 1,094 | [3] | ||||
Issue of senior notes to third party investors | 1,100 | ||||||
Maturity date(s) Start | Jul. 27, 2015 | ||||||
Maturity date(s) End | Jul. 27, 2020 | ||||||
Parent Company | Subordinated Debt | Floating Rate 0.99 Percent Notes Due 2016 | |||||||
Debt Instrument | |||||||
Long-term debt | [4],[5] | $ 0 | 250 | [3] | |||
Maturity date(s) Start | [4],[5] | Dec. 13, 2006 | |||||
Maturity date(s) End | [4],[5] | Dec. 20, 2016 | |||||
Parent Company | Subordinated Debt | Fixed Rate 8.25 Percent Notes Due 2038 | |||||||
Debt Instrument | |||||||
Long-term debt | [4] | $ 1,312 | 1,320 | [3] | |||
Issue of senior notes to third party investors | 1,000 | ||||||
Amount of debt converted to floating rate | $ 705 | ||||||
Interest rate paid | 3.98% | ||||||
Parent Company | Subordinated Debt | Fixed Rate 4.30 Notes Due 2024 | |||||||
Debt Instrument | |||||||
Long-term debt | [4] | $ 746 | 746 | [3] | |||
Issue of senior notes to third party investors | $ 750 | ||||||
Maturity date(s) Start | [4] | Nov. 20, 2013 | |||||
Maturity date(s) End | [4] | Jan. 16, 2024 | |||||
Parent Company | Subordinated Debt | Fixed Rate 5.45 Percent Notes Due 2017 | |||||||
Debt Instrument | |||||||
Long-term debt | [4] | $ 501 | 520 | [3] | |||
Maturity date(s) Start | [4] | Dec. 20, 2006 | |||||
Maturity date(s) End | [4] | Jan. 15, 2017 | |||||
Interest rate paid | 1.34% | ||||||
Parent Company | Subordinated Debt | Fixed Rate 5.45 Percent Notes Due 2017 | Three Month LIBOR | |||||||
Debt Instrument | |||||||
Basis points | 42 | ||||||
Parent Company | Subordinated Debt | Fixed Rate 4.50 Percent Notes Due 2018 | |||||||
Debt Instrument | |||||||
Long-term debt | [4] | $ 519 | 532 | [3] | |||
Maturity date(s) Start | [4] | May 23, 2003 | |||||
Maturity date(s) End | [4] | Jun. 1, 2018 | |||||
Interest rate paid | 1.18% | ||||||
Parent Company | Subordinated Debt | Fixed Rate 4.50 Percent Notes Due 2018 | Three Month LIBOR | |||||||
Debt Instrument | |||||||
Basis points | 25 | ||||||
Subsidiaries | |||||||
Debt Instrument | |||||||
Long-term debt | $ 9,218 | ||||||
Debt, available for future issuance | 17,100 | ||||||
Global Bank Note Program | 25,000 | ||||||
Subsidiaries | FHLB Rate 0.05 To 6.87 Percent Debentures Due 2017 And 2041 | Federal Home Loan Bank Advances 0.05 To 6.87 Percent Due 2017 Through 2041 | |||||||
Debt Instrument | |||||||
Residential mortgage loans and securities serving as FHLB collateral | 17,300 | ||||||
FHLB advance | 33 | ||||||
FHLB advances maturing 2017 | 1 | ||||||
FHLB advances maturing 2018 | 4 | ||||||
FHLB advances maturing 2019 | 9 | ||||||
FHLB advances maturing 2020 | 3 | ||||||
FHLB advances maturing 2021 | 3 | ||||||
FHLB advances maturing thereafter | 13 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | |||||||
Debt Instrument | |||||||
Long-term debt | 748 | 0 | [3] | ||||
Issue of senior notes to third party investors | $ 750 | ||||||
Maturity date(s) Start | Mar. 15, 2016 | ||||||
Maturity date(s) End | Mar. 15, 2019 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.45 Percent Notes Due 2018 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 598 | 597 | [3] | ||||
Issue of senior notes to third party investors | $ 600 | ||||||
Maturity date(s) Start | Feb. 28, 2013 | ||||||
Maturity date(s) End | Feb. 28, 2018 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 0.90 Percent Notes Due 2016 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 0 | 400 | [3] | ||||
Maturity date(s) Start | Feb. 28, 2013 | ||||||
Maturity date(s) End | Feb. 26, 2016 | ||||||
Subsidiaries | Senior Debt Obligations | Floating Rate 0.82 Percent Notes Due 2016 | |||||||
Debt Instrument | |||||||
Long-term debt | [5] | $ 0 | 300 | [3] | |||
Maturity date(s) Start | [5] | Feb. 28, 2013 | |||||
Maturity date(s) End | [5] | Feb. 26, 2016 | |||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.15 Percent Notes Due 2016 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 0 | 999 | [3] | ||||
Maturity date(s) Start | Nov. 20, 2013 | ||||||
Maturity date(s) End | Nov. 18, 2016 | ||||||
Subsidiaries | Senior Debt Obligations | Floating Rate 0.87 Percent Notes Due 2016 | |||||||
Debt Instrument | |||||||
Long-term debt | [5] | $ 0 | 749 | [3] | |||
Maturity date(s) Start | [5] | Nov. 20, 2013 | |||||
Maturity date(s) End | [5] | Nov. 18, 2016 | |||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.375 Percent Notes Due 2019 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 849 | 848 | [3] | ||||
Issue of senior notes to third party investors | 850 | ||||||
Maturity date(s) Start | Apr. 25, 2014 | ||||||
Maturity date(s) End | Apr. 25, 2019 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed rate 2.875 percent notes due 2021 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 845 | 844 | [3] | ||||
Issue of senior notes to third party investors | 850 | ||||||
Maturity date(s) Start | Sep. 5, 2014 | ||||||
Maturity date(s) End | Oct. 1, 2021 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed rate 1.35 percent notes due 2017 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 650 | 652 | [3] | ||||
Issue of senior notes to third party investors | $ 650 | ||||||
Maturity date(s) Start | Apr. 25, 2014 | ||||||
Maturity date(s) End | Jun. 1, 2017 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.15 Percent Notes Due 2018 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 997 | 996 | [3] | ||||
Issue of senior notes to third party investors | 1,000 | ||||||
Maturity date(s) Start | Aug. 20, 2015 | ||||||
Maturity date(s) End | Aug. 20, 2018 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.15 Percent Notes Due 2018 | Three Month LIBOR | |||||||
Debt Instrument | |||||||
Basis points | 90 | ||||||
Subsidiaries | Senior Debt Obligations | Floating Rate 1.82 Percent Notes Due 2018 | |||||||
Debt Instrument | |||||||
Long-term debt | [5] | $ 250 | 250 | [3] | |||
Issue of senior notes to third party investors | 250 | ||||||
Maturity date(s) Start | [5] | Aug. 20, 2015 | |||||
Maturity date(s) End | [5] | Aug. 20, 2018 | |||||
Subsidiaries | Senior Debt Obligations | Floating Rate 1.82 Percent Notes Due 2018 | Three Month LIBOR | |||||||
Debt Instrument | |||||||
Basis points | 91 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.25 Percent Notes Due 2021 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 1,246 | 0 | [3] | ||||
Issue of senior notes to third party investors | $ 1,300 | ||||||
Maturity date(s) Start | Jun. 14, 2016 | ||||||
Maturity date(s) End | Jun. 14, 2021 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.625 Percent Notes Due 2019 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 737 | 0 | [3] | ||||
Issue of senior notes to third party investors | $ 750 | ||||||
Maturity date(s) Start | Sep. 27, 2016 | ||||||
Maturity date(s) End | Sep. 27, 2019 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.625 Percent Notes Due 2019 | Three Month LIBOR | |||||||
Debt Instrument | |||||||
Basis points | 53 | ||||||
Subsidiaries | Senior Debt Obligations | Floating Rate 1.59 Percent Notes Due 2019 | |||||||
Debt Instrument | |||||||
Long-term debt | [5] | $ 249 | 0 | [3] | |||
Issue of senior notes to third party investors | $ 250 | ||||||
Maturity date(s) Start | [5] | Sep. 27, 2016 | |||||
Maturity date(s) End | [5] | Sep. 27, 2019 | |||||
Subsidiaries | Senior Debt Obligations | Floating Rate 1.59 Percent Notes Due 2019 | Three Month LIBOR | |||||||
Debt Instrument | |||||||
Basis points | 59 | ||||||
Subsidiaries | Subordinated Debt | Fixed Rate 3.85 Percent Notes Due 2026 | |||||||
Debt Instrument | |||||||
Long-term debt | [4] | $ 746 | $ 0 | [3] | |||
Issue of senior notes to third party investors | $ 750 | ||||||
Maturity date(s) Start | [4] | Mar. 15, 2016 | |||||
Maturity date(s) End | [4] | Mar. 15, 2026 | |||||
Subsidiaries | Junior Subordinated Debt | Floating Rate 2.38% - 2.65% Debentures Due 2035 | Three Month LIBOR | First Charter Capital Trust I | |||||||
Debt Instrument | |||||||
Basis points | 169 | ||||||
Subsidiaries | Junior Subordinated Debt | Floating Rate 2.38% - 2.65% Debentures Due 2035 | Three Month LIBOR | First Charter Capital Trust II | |||||||
Debt Instrument | |||||||
Basis points | 142 | ||||||
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Automobile Loans | |||||||
Debt Instrument | |||||||
Debt, outstanding principal balance | $ 1,100 | ||||||
[1] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. | ||||||
[2] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $34 of debt issuance costs from other assets to long-term debt. For further inform ation refer to Note 1 . | ||||||
[3] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $ 34 of debt issuance costs from other assets to long-term debt. For furthe r information refer to Note 1. | ||||||
[4] | In aggregate, $ 2.7 billion and $ 2.4 billion qualifies as Tier II capital for regulatory capital purposes as of December, 31 2016 and 2015 , respectively. | ||||||
[5] | These rates reflect the floating rates as of December 31, 2016 . |
Commitments (Summary of Signifi
Commitments (Summary of Significant Commitments) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Commitments to Extend Credit | ||
Long-term Purchase Commitment | ||
Commitments | $ 67,909 | $ 66,884 |
Letters of Credit | ||
Long-term Purchase Commitment | ||
Commitments | 2,583 | 3,055 |
Forward Contracts Related to Residential Mortgage LoansHeld for Sale | ||
Long-term Purchase Commitment | ||
Commitments | 1,823 | 1,330 |
Noncancelable Operating Lease Obligations | ||
Long-term Purchase Commitment | ||
Commitments | 576 | 635 |
Capital Commitments for Private Equity Investments | ||
Long-term Purchase Commitment | ||
Commitments | 59 | 60 |
Purchase Obligations | ||
Long-term Purchase Commitment | ||
Commitments | 57 | 60 |
Capital Expenditures | ||
Long-term Purchase Commitment | ||
Commitments | 29 | 30 |
Capital Lease Obligations | ||
Long-term Purchase Commitment | ||
Commitments | $ 19 | $ 27 |
Commitments (Risk Rating Under
Commitments (Risk Rating Under the Risk Rating System) (Detail) - Commitments to Extend Credit - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Line of Credit Facility | ||
Commitments | $ 67,909 | $ 66,884 |
Pass | ||
Line of Credit Facility | ||
Commitments | 66,802 | 65,645 |
Special Mention | ||
Line of Credit Facility | ||
Commitments | 338 | 647 |
Substandard | ||
Line of Credit Facility | ||
Commitments | 753 | 592 |
Doubtful | ||
Line of Credit Facility | ||
Commitments | $ 16 | $ 0 |
Commitments (Commitments, Conti
Commitments (Commitments, Contingent Liabilities and Guarantees - Additional Information) (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | Dec. 31, 2009 | |||
Loss Contingencies | ||||||||||||||
Letters of Credit | $ 2,583 | $ 3,055 | ||||||||||||
Margin account balance held by the brokerage clearing agent | 15 | 10 | ||||||||||||
Repurchase Claim Settlement | $ 25 | |||||||||||||
Amount in excess of amounts reserved | 43 | |||||||||||||
Credit loss reserve | 1,253 | [1] | 1,272 | [1] | $ 1,582 | $ 1,322 | ||||||||
Visa Class B shares carryover basis | $ 0 | |||||||||||||
Residential Mortgage | ||||||||||||||
Loss Contingencies | ||||||||||||||
Amount in excess of amounts reserved | 21 | |||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | 13 | 25 | $ 35 | |||||||||||
Outstanding balances on residential mortgage loans sold with credit recourse | $ 374 | $ 465 | ||||||||||||
Delinquency Rates | 3.20% | 3.00% | ||||||||||||
Credit loss reserve | $ 7 | $ 9 | ||||||||||||
Make Whole Payments | 1 | 2 | ||||||||||||
Repurchased Outstanding Principal | 17 | 74 | ||||||||||||
Repurchase Demand Request | 22 | 75 | ||||||||||||
Outstanding Repurchase Demand Inventory | 2 | 4 | ||||||||||||
Secured Debt | ||||||||||||||
Loss Contingencies | ||||||||||||||
Fully and unconditionally guaranteed certain long-term borrowing obligations issued by wholly-owned issuing trust entities | 62 | $ 62 | ||||||||||||
Standby Letters of Credit | ||||||||||||||
Loss Contingencies | ||||||||||||||
Reserve for unfunded commitments | $ 3 | |||||||||||||
Standby letters of credit as a percentage of total letters of credit | 99.00% | 99.00% | ||||||||||||
Standby Letters of Credit | Secured Debt | ||||||||||||||
Loss Contingencies | ||||||||||||||
Standby letters of credit as a percentage of total letters of credit | 62.00% | 65.00% | ||||||||||||
Variable Rate Demand Note | ||||||||||||||
Loss Contingencies | ||||||||||||||
Fifth Third Securities, Inc. (FTS) acted as the remarketing agent to issuers of VRDNs | $ 784 | $ 1,100 | ||||||||||||
Letters of Credit | 145 | 187 | ||||||||||||
Total Variable Rate Demand Notes | 929 | 1,300 | ||||||||||||
Letters Credit Issued Related Variable Rate Demand Notes | 609 | 921 | ||||||||||||
Variable Rate Demand Note | Trading Securities | ||||||||||||||
Loss Contingencies | ||||||||||||||
Total Variable Rate Demand Notes | 6 | |||||||||||||
Other Liabilities | ||||||||||||||
Loss Contingencies | ||||||||||||||
Reserve for unfunded commitments | 161 | 138 | ||||||||||||
Other Liabilities | Residential Mortgage | ||||||||||||||
Loss Contingencies | ||||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | $ 13 | 25 | ||||||||||||
Private Mortgage Reinsurance | ||||||||||||||
Loss Contingencies | ||||||||||||||
Total outstanding reinsurance coverage | 27 | |||||||||||||
Approximate reserve related to exposures within the reinsurance portfolio | 2 | |||||||||||||
Carrying Value Of Collateral Released To Insurer Due To Terminated Reinsurance Agreement | $ 6 | |||||||||||||
Payment Received Related To The Difference Between The Release Of Assets And The Reserve Liability Assumed | $ 4 | |||||||||||||
Private Mortgage Reinsurance | Lower limit | ||||||||||||||
Loss Contingencies | ||||||||||||||
Reinsurance coverage ranges of the total PMI coverage | 5.00% | |||||||||||||
Private Mortgage Reinsurance | Upper Limit | ||||||||||||||
Loss Contingencies | ||||||||||||||
Reinsurance coverage ranges of the total PMI coverage | 10.00% | |||||||||||||
Visa Litigation | ||||||||||||||
Loss Contingencies | ||||||||||||||
Recorded share of litigation formally settled by Visa and for probable future litigation settlements | $ 91 | $ 61 | ||||||||||||
Escrow Deposit | $ 3,000 | |||||||||||||
Visa | ||||||||||||||
Loss Contingencies | ||||||||||||||
Visa IPO, shares of Visa's Class B common stock received | 10.1 | |||||||||||||
Escrow Deposit | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 | ||||||||
[1] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. |
Commitments (Standby and Commer
Commitments (Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party) (Detail) - Letters of Credit $ in Millions | Dec. 31, 2016USD ($) | |
Line of Credit Facility | ||
Commitments | $ 2,583 | |
Less Than One Year From The Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 1,387 | [1] |
More than One and within Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 1,164 | [1] |
More than Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | $ 32 | |
[1] | (a) Includes $ 18 and $ 3 issue d on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively. |
Commitments (Standby and Com146
Commitments (Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party) (Parenthetical) (Detail) - Letters of Credit $ in Millions | Dec. 31, 2016USD ($) | |
Line of Credit Facility | ||
Commitments | $ 2,583 | |
One Year From Balance Sheet Date | Commercial | Commercial customers to facilitate trade payments in U.S. dollars and foreign currencies | ||
Line of Credit Facility | ||
Commitments | 18 | |
More than One and within Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 1,164 | [1] |
More than One and within Five Years from Balance Sheet Date | Commercial | Commercial customers to facilitate trade payments in U.S. dollars and foreign currencies | ||
Line of Credit Facility | ||
Commitments | 3 | |
More than Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | $ 32 | |
[1] | (a) Includes $ 18 and $ 3 issue d on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively. |
Commitments (Letters of Credit)
Commitments (Letters of Credit) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | $ 2,583 | $ 3,055 |
Pass | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | 2,134 | 2,606 |
Special Mention | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | 98 | 130 |
Substandard | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | 290 | 258 |
Doubtful | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | $ 61 | $ 61 |
Commitments (Activity in Reserv
Commitments (Activity in Reserve for Representation and Warranty Provisions) (Detail) - Residential Mortgage - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation And Qualifying Accounts Disclosure | ||
Balance, beginning of period | $ 25 | $ 35 |
Net (reductions) additions to the reserve | (10) | (3) |
Losses charged against the reserve | (2) | (7) |
Balance, end of period | $ 13 | $ 25 |
Commitments (Unresolved Claims
Commitments (Unresolved Claims by Claimant) (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
GSE | ||
Loss Contingencies Dollars | ||
Balance, beginning of period | $ 4 | $ 6 |
New demands | 22 | 33 |
Loan paydowns/payoffs | (1) | (2) |
Resolved claims | (23) | (33) |
Balance, end of period | $ 2 | $ 4 |
Loss Contingencies Units | ||
Balance, beginning of period | 16 | 37 |
New demands | 309 | 436 |
Loan paydowns/payoffs | (8) | (29) |
Resolved claims | (304) | (428) |
Balance, end of period | 13 | 16 |
Private Label | ||
Loss Contingencies Dollars | ||
Balance, beginning of period | $ 0 | $ 1 |
New demands | 0 | 42 |
Loan paydowns/payoffs | 0 | 0 |
Resolved claims | 0 | (43) |
Balance, end of period | $ 0 | $ 0 |
Loss Contingencies Units | ||
Balance, beginning of period | 2 | 1 |
New demands | 4 | 261 |
Loan paydowns/payoffs | 0 | 0 |
Resolved claims | (6) | (260) |
Balance, end of period | 0 | 2 |
Commitments (Visa Funding and B
Commitments (Visa Funding and Bancorp Cash Payments) (Detail) - USD ($) $ in Millions | 3 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | |
Visa Funding | ||||||
Loss Contingencies | ||||||
Escrow Deposit | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 |
Bancorp Cash Payment | ||||||
Loss Contingencies | ||||||
Reduction of liability in cash to the swap counterparty | $ 18 | $ 6 | $ 75 | $ 19 | $ 35 | $ 20 |
Legal and Regulatory Proceed151
Legal and Regulatory Proceedings (Legal and Regulatory Proceedings - Additional Information) (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2013 | Sep. 30, 2013USD ($) | Mar. 31, 2013USD ($) | Sep. 30, 2012USD ($) | Mar. 31, 2012USD ($) | |
Loss Contingencies | |||||||
Amount in excess of amounts reserved | $ 43 | ||||||
LitigationSettlementAmount | $ 6 | ||||||
APR Percentage Allegedly Misleading | 120.00% | ||||||
Number Of Putative Class Actions Filed | 4 | ||||||
Damages Claimed By Defendant | $ 1.5 | ||||||
Damages Claimed By Plaintiff | $ 50 | $ 70 | $ 40 | ||||
Federal Lawsuits | |||||||
Loss Contingencies | |||||||
Number of merchants requesting exclusion | 460 | ||||||
Class Action Settlement | |||||||
Loss Contingencies | |||||||
Number of merchants requesting exclusion | 8,000 | ||||||
Percentage of escrow funds returned to defendants | 25.00% | ||||||
Escrow Deposit | $ 46 |
Related Party (Summary of the B
Related Party (Summary of the Bancorp's Activities with its Principal Shareholders, Directors and Executives) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transactions | ||
Outstanding balance on loans, net of participations and undrawn commitments | $ 54 | $ 97 |
Commitments to Extend Credit | ||
Related Party Transactions | ||
Commitments to Extend Credit | 67,909 | 66,884 |
Commitments to Extend Credit | Due to related party | ||
Related Party Transactions | ||
Commitments to Extend Credit | 622 | 836 |
Commitments to Extend Credit | Director | Due to related party | ||
Related Party Transactions | ||
Commitments to Extend Credit | 618 | 831 |
Commitments to Extend Credit | Executive Officer | Due to related party | ||
Related Party Transactions | ||
Commitments to Extend Credit | $ 4 | $ 5 |
Related Party (Summary of Vanti
Related Party (Summary of Vantiv Holding, LLC Sales Transactions) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2015 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2009 | |||||||
Related Party Transactions | ||||||||||||||||
Gain on sale of Vantiv, Inc. shares | $ 0 | $ 331 | $ 125 | |||||||||||||
Vantiv Holding, LLC | ||||||||||||||||
Related Party Transactions | ||||||||||||||||
Percentage Of Vantiv Holding, LLC Sold | 5.00% | 3.00% | 3.00% | 5.00% | 6.00% | 5.00% | ||||||||||
Gain on sale of Vantiv, Inc. shares | $ 331 | $ 125 | $ 85 | $ 242 | $ 157 | $ 115 | ||||||||||
Equity Method Investment, Ownership Percentage | 18.00% | [1] | 23.00% | [1] | 25.00% | [1] | 28.00% | [1] | 33.00% | [1] | 39.00% | 17.90% | 18.00% | [1] | 49.00% | |
[1] | (a) The Bancorp’s remaining investment in Vantiv Holding, LLC of $ 414 as of December 31, 201 6 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. |
Related Party (Summary of Va154
Related Party (Summary of Vantiv Holding, LLC Sales Transactions) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Equity Method Investment Summarized Financia lInformation | ||
Vantiv Holding, LLC Carrying Value | $ 414 | $ 360 |
Related Party (Cash Flows to be
Related Party (Cash Flows to be Received from the TRA) (Detail) $ in Millions | Dec. 31, 2016USD ($) | |
Cash Flow To Be Received From Put Call Option Exercises | ||
Vantiv TRA Cash Flows | ||
2,017 | $ 63 | [1] |
2,018 | 108 | [1] |
2,019 | 0 | [1] |
2,020 | 0 | [1] |
2,021 | 0 | [1] |
2,022 | 0 | [1] |
2,023 | 0 | [1] |
2,024 | 0 | [1] |
2,025 | 0 | [1] |
2,026 | 0 | [1] |
Thereafter | 0 | [1] |
Total Cash Flows to be Received from TRA | 171 | [1] |
Estimated Cash Flow To Be Received Not Subject To Put Call Option | ||
Vantiv TRA Cash Flows | ||
2,017 | 33 | [2] |
2,018 | 42 | [2] |
2,019 | 8 | [2] |
2,020 | 8 | [2] |
2,021 | 8 | [2] |
2,022 | 8 | [2] |
2,023 | 9 | [2] |
2,024 | 9 | [2] |
2,025 | 9 | [2] |
2,026 | 10 | [2] |
Thereafter | 102 | [2] |
Total Cash Flows to be Received from TRA | $ 246 | [2] |
[1] | (b) As part of the agreement the Banco rp entered into with Vantiv, Inc. on July 27, 2016, Vantiv, Inc. may be obligated to pay a total of approximately $171 to the Bancorp to terminate certain remaining TRA cash flows, totaling an estimated $394, upon the exercise of certain call options by Va ntiv, Inc. or cert ain put options by the Bancorp | |
[2] | (a) The 2017 cash flow of $33 has been agreed upon with Vantiv, Inc. for settlement in January 2017 and was recognized as a gain in noninterest income during the fourth quarter of 2016. The remaining estimated cash flows in this column (which include TRA benefits associated with the net exercise of the warrant and the subsequent exchange of Vantiv Holding units in the fourth quarter of 2016) will be recognized in future periods when the related uncertainties are resolved. |
Related Party (Cash Flows to156
Related Party (Cash Flows to be Received from the TRA) (Parenthetical) (Detail) $ in Millions | Dec. 31, 2016USD ($) | |
Vantiv, Inc. | ||
Vantiv TRA Cash Flows | ||
Potential Termination And Settlement Of Tra Cash Flows | $ 394 | |
Cash Flow To Be Received From Put Call Option Exercises | ||
Vantiv TRA Cash Flows | ||
Cash Flow agreed upon for settlement with Vantiv, Inc. | 63 | [1] |
Cash Flow To Be Received From Tra | 171 | [1] |
Estimated Cash Flow To Be Received Not Subject To Put Call Option | ||
Vantiv TRA Cash Flows | ||
Cash Flow agreed upon for settlement with Vantiv, Inc. | 33 | [2] |
Cash Flow To Be Received From Tra | $ 246 | [2] |
[1] | (b) As part of the agreement the Banco rp entered into with Vantiv, Inc. on July 27, 2016, Vantiv, Inc. may be obligated to pay a total of approximately $171 to the Bancorp to terminate certain remaining TRA cash flows, totaling an estimated $394, upon the exercise of certain call options by Va ntiv, Inc. or cert ain put options by the Bancorp | |
[2] | (a) The 2017 cash flow of $33 has been agreed upon with Vantiv, Inc. for settlement in January 2017 and was recognized as a gain in noninterest income during the fourth quarter of 2016. The remaining estimated cash flows in this column (which include TRA benefits associated with the net exercise of the warrant and the subsequent exchange of Vantiv Holding units in the fourth quarter of 2016) will be recognized in future periods when the related uncertainties are resolved. |
Related Party (Related Party Tr
Related Party (Related Party Transactions - Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2010 | Jun. 30, 2009 | |||||||
Related Party Transactions | ||||||||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | |||||||||||||||||
Gain on sale of Vantiv, Inc. shares | $ 0 | $ 331 | $ 125 | |||||||||||||||
Loans to related parties | $ 54 | $ 97 | 54 | 97 | ||||||||||||||
Letters of Credit | 2,583 | 3,055 | 2,583 | 3,055 | ||||||||||||||
Taxable Receivable Agreement Payment | 197 | 31 | 23 | |||||||||||||||
Equity investments, carrying value | $ 414 | $ 360 | $ 414 | $ 360 | ||||||||||||||
Vantiv Holding, LLC | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | |||||||||||||||||
Equity Method Investment, Ownership Percentage | 17.90% | 18.00% | [1] | 23.00% | [1] | 25.00% | [1] | 28.00% | [1] | 33.00% | [1] | 39.00% | 17.90% | 18.00% | [1] | 49.00% | ||
Gain on sale of Vantiv, Inc. shares | $ 331 | $ 125 | $ 85 | $ 242 | $ 157 | $ 115 | ||||||||||||
Dividend on Equity method investment in Vantiv Holding, LLC | $ 9 | $ 11 | 23 | |||||||||||||||
Service fee paid to Vantiv Holding, LLC | 76 | 89 | 83 | |||||||||||||||
Outstanding balance of loans owed to the Bancorp from Vantiv Holding, LLC | $ 1,250 | |||||||||||||||||
Loans to related parties | $ 210 | 191 | 210 | 191 | ||||||||||||||
Interest income relating to the Vantiv Holding, LLC loans | 4 | 4 | 5 | |||||||||||||||
Letters of Credit | $ 59 | $ 46 | 59 | $ 46 | ||||||||||||||
Cancellation Of Rights To Purchase Class C Units Under Warrant | 4,800,000 | 4,800,000 | ||||||||||||||||
Cash Payment For Cancellation Of Warrant | $ 200 | |||||||||||||||||
Exchange Of Class C Shares For Class A Shares | 8,000,000 | 8,000,000 | ||||||||||||||||
Investment Warrants Exercise Price | $ 15.98 | $ 15.98 | ||||||||||||||||
Payment From Vantiv Inc to Bancorp To Terminate And Settle Certain Remaining TRA Cash Flows | $ 171 | 171 | ||||||||||||||||
Potential Termination And Settlement Of Tra Cash Flows | $ 394 | 394 | ||||||||||||||||
Vantiv Holding, LLC | Other Noninterest Income | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 66 | $ 63 | 48 | |||||||||||||||
Vantiv Holding, LLC | During Deconversion Period | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Revenue From Related Parties | 1 | 1 | 1 | |||||||||||||||
Vantiv Holding, LLC | Beyond Deconversion Period | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Revenue From Related Parties | $ 58 | $ 47 | 44 | |||||||||||||||
Vantiv Holding, LLC | Class B Units | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Balance held at close of period in number of shares | 35,000,000 | 35,000,000 | ||||||||||||||||
Vantiv Holding, LLC | Class C Units | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Shares Exercised Underlying Warrant | 7,800,000 | 7,800,000 | ||||||||||||||||
Warrant Exercised Total Shares Settled | 5,700,000 | 5,400,000 | 5,700,000 | 5,400,000 | ||||||||||||||
Aggregate amount of each class of warrants or rights outstanding | 7,800,000 | 7,800,000 | ||||||||||||||||
Vantiv Holding, LLC | Class A Units | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Proceeds From Warrant Exercises | $ 9 | $ 89 | ||||||||||||||||
Balance held at close of period in number of shares | 35,000,000 | 35,000,000 | ||||||||||||||||
Vantiv, Inc. | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Gain on sale of Vantiv, Inc. shares | $ 116 | 49 | ||||||||||||||||
Voting Power In Vantiv | 18.50% | 18.50% | ||||||||||||||||
Amount Of Cash Flow Sales From 2017 to 2030 | $ 331 | $ 140 | $ 331 | |||||||||||||||
Percentage Of Warrant Exercised | 62.00% | 62.00% | ||||||||||||||||
Payment From Vantiv Inc to Bancorp To Terminate And Settle Certain Remaining TRA Cash Flows | 171 | $ 171 | ||||||||||||||||
Tra Obligations Settled If Options Exercised 2017 | 10.00% | |||||||||||||||||
Potential Termination And Settlement Of Tra Cash Flows | 394 | $ 394 | ||||||||||||||||
Tra Obligations Settled If Options Exercised 2018 | 15.00% | |||||||||||||||||
Pretax Gain Recognized | $ 164 | $ 164 | ||||||||||||||||
Vantiv, Inc. | Minimum | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Amount Of Cash Flow Sales From Years 2019 To 2035 | 2,019 | |||||||||||||||||
Vantiv, Inc. | Upper Limit | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Amount Of Cash Flow Sales From Years 2019 To 2035 | 2,035 | |||||||||||||||||
Vantiv, Inc. | Other Noninterest Income | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Taxable Receivable Agreement Payment | $ 33 | $ 31 | 23 | |||||||||||||||
Vantiv, Inc. | Class B Units | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Shares held in Vantiv, Inc. | 43,000,000 | 43,000,000 | ||||||||||||||||
Vantiv, Inc. | Class A Units | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Exchange Of Class C Shares For Class A Shares | 5,700,000 | 5,400,000 | 5,700,000 | 5,400,000 | ||||||||||||||
Vantiv, Inc. | Class A Units | Shares Sold In Secondary Offering | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Warrant Exercised Total Shares Settled | 4,800,000 | 4,800,000 | ||||||||||||||||
Vantiv, Inc. | Class A Units | Shares repurchased by Vantiv Inc. | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Warrant Exercised Total Shares Settled | 900,000 | 900,000 | ||||||||||||||||
SLK Global | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | ||||||||||||||||
Service fee paid to Vantiv Holding, LLC | $ 20 | $ 17 | 13 | |||||||||||||||
Equity investments, carrying value | $ 6 | $ 6 | 6 | 6 | ||||||||||||||
SLK Global | Other Noninterest Income | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 3 | 3 | $ 3 | |||||||||||||||
CDC | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Loans to related parties | 76 | 5 | 76 | 5 | ||||||||||||||
Related Party Deposit Liabilities | 28 | 23 | 28 | 23 | ||||||||||||||
CDC | Unfunded Commitment | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Due To Other Related Parties Current And Noncurrent | $ 18 | $ 88 | $ 18 | $ 88 | ||||||||||||||
[1] | (a) The Bancorp’s remaining investment in Vantiv Holding, LLC of $ 414 as of December 31, 201 6 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. |
Income Taxes (Applicable Income
Income Taxes (Applicable Income Taxes Included in the Consolidated Statements of Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation Of Provision Of Income Taxes | |||
U.S. Federal income taxes | $ 598 | $ 662 | $ 424 |
State and local income taxes | 55 | 55 | 34 |
Foreign income taxes | 0 | 13 | 8 |
Total current tax expense (benefit) | 653 | 730 | 466 |
U.S. Federal income taxes | (133) | (78) | 71 |
State and local income taxes | (14) | 6 | 9 |
Foreign income taxes | (1) | 1 | (1) |
Total deferred tax expense (benefit) | (148) | (71) | 79 |
Applicable income tax expense | $ 505 | $ 659 | $ 545 |
Income Taxes (Reconciliation Be
Income Taxes (Reconciliation Between the Statutory U.S. Income Tax Rate and the Bancorp's Effective Tax Rate) (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation Of Statutory Federal Tax Rate | |||
Statutory tax rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 1.30% | 1.70% | 1.40% |
Tax-exempt income | (2.70%) | (1.70%) | (1.40%) |
Low-income housing tax credits | (7.90%) | (6.60%) | (7.00%) |
Other tax credits | (0.90%) | (0.90%) | (1.10%) |
Other, net | (0.40%) | 0.30% | 0.00% |
Effective tax rate | 24.40% | 27.80% | 26.90% |
Income Taxes (Income Taxes - Ad
Income Taxes (Income Taxes - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes | ||
Deferred tax assets related to state net operating loss carryforwards | $ 9 | $ 10 |
State net operating loss carryforwards specific valuation allowances | $ 25 | 22 |
State net operating loss carryforwards expiration date | Dec. 31, 2035 | |
Deferred tax assets related to foreign tax credit carryforward | $ 3 | 5 |
Foreign tax credit carryforward expiration date | Dec. 31, 2025 | |
Accrued interest liabilities, net of the related tax benefits | $ 1 | 1 |
Allocation of earnings for bad debt deductions of former thrift subsidiaries included in retained earnings | 157 | $ 157 |
Interest expense recognized in connection with income taxes | $ 1 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Beginning and Ending Amounts of the Bancorp's Unrecognized Tax Benefits) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | ||||||
Unrecognized tax benefits at January 1 | $ 13 | [1] | $ 11 | [1] | $ 7 | |
Gross increases for tax positions taken during prior period | 9 | 1 | 2 | |||
Gross decreases for tax positions taken during prior period | 0 | 0 | 0 | |||
Gross increases for tax positions taken during current period | 2 | 2 | 2 | |||
Settlements with taxing authorities | 0 | 0 | 0 | |||
Lapse of applicable statute of limitations | 0 | (1) | 0 | |||
Unrecognized tax benefits at December 31 | [1] | $ 24 | $ 13 | $ 11 | ||
[1] | (a ) Amounts represent unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Taxes Included in Other Assets in the Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Deferred Income Tax Assets And Liabilities | ||
Allowance for loan and lease losses | $ 439 | $ 445 |
Deferred compensation | 122 | 118 |
Reserves | 57 | 61 |
Reserve for unfunded commitments | 56 | 48 |
State net operating loss carryforwards | 9 | 10 |
Other | 223 | 194 |
Total deferred tax assets | 906 | 876 |
Lease financing | 940 | 935 |
Investments in joint ventures and partnership interests | 219 | 248 |
MSRs and related economic hedges | 202 | 245 |
State deferred taxes | 64 | 79 |
Bank premises and equipment | 61 | 53 |
Other comprehensive income | 34 | 106 |
Other | 173 | 218 |
Total deferred tax liabilities | 1,693 | 1,884 |
Total net deferred tax liabilities | $ (787) | $ (1,008) |
Retirement and Benefit Plans (R
Retirement and Benefit Plans (Retirement and Benefit Plans - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Defined Benefit Plan Disclosure | ||||
The estimated net actuarial loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost | $ (7) | |||
The increase in pension expense by lowering both the expected rate of return on the plan and the discount rate by 0.25% | 1 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2017 | 18 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2018 | 17 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2019 | 16 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2020 | 16 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2021 | 16 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2022 through 2026 | 77 | |||
Estimated future defined benefit plan contributions | 3 | |||
Plan assets managed | [1] | 172 | $ 166 | |
Net underfunded status | (34) | (54) | ||
Fifth Third Bank | ||||
Defined Benefit Plan Disclosure | ||||
Plan assets managed through collective funds | 172 | 166 | ||
Non-qualified defined contribution plan | ||||
Defined Benefit Plan Disclosure | ||||
Expenses recognized for the Bancorp's defined contribution plan | 3 | 3 | $ 2 | |
Qualified defined contribution plan | ||||
Defined Benefit Plan Disclosure | ||||
Expenses recognized for the Bancorp's defined contribution plan | 75 | 71 | 44 | |
Deferred profit sharing | ||||
Defined Benefit Plan Disclosure | ||||
Expenses recognized for the Bancorp's defined contribution plan | 0 | 0 | $ 19 | |
Common stock | ||||
Defined Benefit Plan Disclosure | ||||
Plan assets managed | $ 5 | $ 4 | ||
[1] | For further information on fair value hierarchy levels, refer to Note 1. |
Retirement and Benefit Plans (D
Retirement and Benefit Plans (Defined Benefit Retirement Plans with Overfunded and Underfunded Status) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Defined Benefit Plan Change In Fair Value Roll Forward | ||||
Fair value of plan assets at January 1 | [1] | $ 166 | ||
Fair value of plan assets at December 31 | [1] | 172 | $ 166 | |
Defined Benefit Plan, Change in Benefit Obligation | ||||
Interest cost | 9 | 9 | $ 10 | |
Underfunded defined benefit pension plans | ||||
Defined Benefit Plan Change In Fair Value Roll Forward | ||||
Fair value of plan assets at January 1 | 166 | 195 | ||
Actual return on assets | 11 | (6) | ||
Contributions | 20 | 4 | ||
Settlement | (15) | (17) | ||
Benefits paid | (10) | (10) | ||
Fair value of plan assets at December 31 | 172 | 166 | 195 | |
Defined Benefit Plan, Change in Benefit Obligation | ||||
Projected benefit obligation at January 1 | 220 | 247 | ||
Interest cost | 9 | 9 | ||
Settlement | (15) | (17) | ||
Actuarial (gain) loss | 2 | (9) | ||
Benefits paid | (10) | (10) | ||
Projected benefit obligation at December 31 | 206 | 220 | $ 247 | |
Underfunded projected benefit obligation at December 31 | (34) | (54) | ||
Accumulated benefit obligation at December 31 | [2] | $ 206 | $ 220 | |
[1] | For further information on fair value hierarchy levels, refer to Note 1. | |||
[2] | (a) Since the Plan’s benefits are frozen , the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2016 and 2015 . |
Retirement and Benefit Plans (N
Retirement and Benefit Plans (Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Pension And Other Postretirment Benefits Recgonized In Accumulated Other Comprehensive Income (Loss) | |||
Interest cost | $ 9 | $ 9 | $ 10 |
Expected return on assets | (11) | (13) | (14) |
Amortization of net actuarial loss | 11 | 10 | 7 |
Settlement | 7 | 7 | 5 |
Net periodic benefit cost | 16 | 13 | 8 |
Net actuarial loss (gain) | 2 | 9 | 37 |
Amortization of net actuarial loss | (11) | (10) | (7) |
Settlement | (7) | (7) | (5) |
Total recognized in other comprehensive income | (16) | (8) | 25 |
Total recognized in net periodic benefit cost and other comprehensive income | $ 0 | $ 5 | $ 33 |
Retirement and Benefit Plans (P
Retirement and Benefit Plans (Plan Assets Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure | |||
Securities | [1] | $ 172 | $ 166 |
Equity securities | |||
Defined Benefit Plan Disclosure | |||
Securities | [1],[2] | 56 | 52 |
Mutual and exchange-traded funds | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 97 | 101 |
Mutual and exchange-traded funds | Money market funds | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 6 | 15 |
Mutual and exchange-traded funds | International funds | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 31 | 35 |
Mutual and exchange-traded funds | Domestic funds | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 39 | 31 |
Mutual and exchange-traded funds | Debt funds | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 5 | 3 |
Mutual and exchange-traded funds | Alternative strategies | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 10 | 11 |
Mutual and exchange-traded funds | Commodity funds | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 6 | 6 |
Debt securities | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 19 | 13 |
Debt securities | U.S. Treasury and federal agencies securities | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 8 | 4 |
Debt securities | Agency mortgage-backed securities | Residential mortgage-backed securities | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 1 | 3 |
Debt securities | Agency mortgage-backed securities | Commercial mortgage-backed securities | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 2 | 2 |
Debt securities | Non-agency mortgage-backed securities | Commercial mortgage-backed securities | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 1 | |
Debt securities | Asset-backed securities and other debt securities | |||
Defined Benefit Plan Disclosure | |||
Securities | [1],[3] | 8 | 3 |
Fair value level 1 | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 76 | 75 |
Fair value level 1 | Equity securities | |||
Defined Benefit Plan Disclosure | |||
Securities | [1],[2] | 56 | 52 |
Fair value level 1 | Mutual and exchange-traded funds | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 13 | 21 |
Fair value level 1 | Mutual and exchange-traded funds | Money market funds | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 6 | 15 |
Fair value level 1 | Mutual and exchange-traded funds | Alternative strategies | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 1 | 0 |
Fair value level 1 | Mutual and exchange-traded funds | Commodity funds | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 6 | 6 |
Fair value level 1 | Debt securities | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 7 | 2 |
Fair value level 1 | Debt securities | U.S. Treasury and federal agencies securities | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 7 | 2 |
Fair value level 2 | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 96 | 91 |
Fair value level 2 | Mutual and exchange-traded funds | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 84 | 80 |
Fair value level 2 | Mutual and exchange-traded funds | International funds | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 31 | 35 |
Fair value level 2 | Mutual and exchange-traded funds | Domestic funds | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 39 | 31 |
Fair value level 2 | Mutual and exchange-traded funds | Debt funds | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 5 | 3 |
Fair value level 2 | Mutual and exchange-traded funds | Alternative strategies | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 9 | 11 |
Fair value level 2 | Debt securities | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 12 | 11 |
Fair value level 2 | Debt securities | U.S. Treasury and federal agencies securities | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 1 | 2 |
Fair value level 2 | Debt securities | Agency mortgage-backed securities | Residential mortgage-backed securities | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 1 | 3 |
Fair value level 2 | Debt securities | Agency mortgage-backed securities | Commercial mortgage-backed securities | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 2 | 2 |
Fair value level 2 | Debt securities | Non-agency mortgage-backed securities | Commercial mortgage-backed securities | |||
Defined Benefit Plan Disclosure | |||
Securities | [1] | 1 | |
Fair value level 2 | Debt securities | Asset-backed securities and other debt securities | |||
Defined Benefit Plan Disclosure | |||
Securities | [1],[3] | $ 8 | $ 3 |
[1] | For further information on fair value hierarchy levels, refer to Note 1. | ||
[2] | Includes holdings in Bancorp common stock. | ||
[3] | Includes corporate bonds. |
Retirement and Benefit Plans167
Retirement and Benefit Plans (Plan Assumptions) (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
For measuring benefit obligations at year end | |||
Discount rate | 3.97% | 4.16% | 3.82% |
Expected return on plan assets | 7.00% | 7.00% | 7.25% |
For measuring net periodic benefit cost | |||
Discount rate | 4.16% | 3.82% | 4.72% |
Expected return on plan assets | 7.00% | 7.00% | 7.25% |
Retirement and Benefit Plans168
Retirement and Benefit Plans (Targeted and Actual Weighted Average Asset Allocations by Plan Asset Category) (Detail) | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity securities | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 73.00% | 69.00% | |
Bancorp common stock | 2.00% | 2.00% | |
Total | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% | |
Targeted Range 60 to 90 Percent | Equity securities | |||
Defined Benefit Plan Disclosure | |||
Total equity securities | [1],[2] | 75.00% | 71.00% |
Targeted Range 5 to 25 Percent | Fixed-income securities | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Actual Plan Asset Allocations | [2] | 14.00% | 16.00% |
Targeted Range 3 to 11 Percent | Alternative strategies | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Actual Plan Asset Allocations | [2] | 6.00% | 7.00% |
Targeted Range 0 to 13 Percent | Cash | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Actual Plan Asset Allocations | [2] | 5.00% | 6.00% |
[1] | Includes mutual and exchange- traded funds . | ||
[2] | These reflect the targeted ranges for both the years ended December 31, 2016 and 2015 . |
AOCI (Activity of the Component
AOCI (Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Net activity for accumulated net unrealized gain (loss) on available-for-sale securities | ||||
Unrealized holding gains (losses) on available-for-sale securities arising during the year | $ (130) | $ (227) | $ 378 | |
Reclassification adjustment for net (gains) losses included in net income | (7) | (10) | (24) | |
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | ||||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during the year | 19 | 48 | 39 | |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (31) | (49) | (29) | |
Net activity for defined benefit plans, net | ||||
Net actuarial gain (loss) arising during the period | 1 | 5 | 25 | |
Reclassification of amounts to net periodic benefit costs | (12) | (11) | (8) | |
Total Other Comprehensive Activity | ||||
Pre-tax activity total | (209) | (358) | 534 | |
Total, Tax | 71 | 126 | (187) | |
Other comprehensive income (loss) | (138) | (232) | 347 | |
Total Accumulated Other Comprehensive Income | ||||
Total Accumulated Other Comprehensive Income - Beginning Balance | 197 | 429 | 82 | |
Other comprehensive income (loss), Net of Tax | (138) | (232) | 347 | |
Total Accumulated Other Comprehensive Income - Ending Balance | 59 | 197 | 429 | |
Accumulated Net Unrealized Investment Gain (Loss) | ||||
Pre-tax activity for accumulated net unrealized gain (loss) on available-for-sale securities | ||||
Unrealized holding gains on available-for-sale securities arising during period | (196) | (349) | 580 | |
Reclassification adjustment for net losses (gains) included in net income | [1] | (11) | (16) | (37) |
Net unrealized gains on available-for-sale securities | (207) | (365) | 543 | |
Tax effect for accumulated net unrealized gain (loss) on available-for-sale securities | ||||
Unrealized holding gains on available-for-sale securities arising during period | 66 | 122 | (202) | |
Reclassification adjustment for net losses (gains) included in net income | 4 | 6 | 13 | |
Net unrealized gains on available-for-sale securities | 70 | 128 | (189) | |
Net activity for accumulated net unrealized gain (loss) on available-for-sale securities | ||||
Unrealized holding gains (losses) on available-for-sale securities arising during the year | (130) | (227) | 378 | |
Reclassification adjustment for net (gains) losses included in net income | (7) | (10) | (24) | |
Net unrealized gains on available-for-sale securities | (137) | (237) | 354 | |
Total Other Comprehensive Activity | ||||
Other comprehensive income (loss) | (137) | (237) | 354 | |
Total Accumulated Other Comprehensive Income | ||||
Total Accumulated Other Comprehensive Income - Beginning Balance | 238 | 475 | 121 | |
Other comprehensive income (loss), Net of Tax | (137) | (237) | 354 | |
Total Accumulated Other Comprehensive Income - Ending Balance | 101 | 238 | 475 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||
Pre-tax activity for net unrealized gain (loss) on cash flow hedge derivatives | ||||
Unrealized holding gains on cash flow hedge derivatives arising during period | 30 | 74 | 60 | |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (48) | (75) | (44) | |
Net unrealized gains on cash flow hedge derivatives | (18) | (1) | 16 | |
Tax effect for net unrealized gain (loss) on cash flow hedge derivatives | ||||
Unrealized holding gains on cash flow hedge derivatives arising during period | (11) | (26) | (21) | |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 17 | 26 | 15 | |
Net unrealized gains on cash flow hedge derivatives | 6 | 0 | (6) | |
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | ||||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during the year | 19 | 48 | 39 | |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (31) | (49) | (29) | |
Net unrealized gains on cash flow hedge derivatives | (12) | (1) | 10 | |
Total Other Comprehensive Activity | ||||
Other comprehensive income (loss) | (12) | (1) | 10 | |
Total Accumulated Other Comprehensive Income | ||||
Total Accumulated Other Comprehensive Income - Beginning Balance | 22 | 23 | 13 | |
Other comprehensive income (loss), Net of Tax | (12) | (1) | 10 | |
Total Accumulated Other Comprehensive Income - Ending Balance | 10 | 22 | 23 | |
Accumulated Defined Benefit Plans Adjustment | ||||
Pre-tax activity for defined benefit plans, net | ||||
Net actuarial gain (loss) arising during the period | (2) | (9) | (37) | |
Reclassification of amounts to net periodic benefit costs | 18 | 17 | 12 | |
Defined benefit plans, net | 16 | 8 | (25) | |
Tax effect for defined benefit plans, net | ||||
Net actuarial loss | 1 | 4 | 12 | |
Reclassification of amounts to net periodic benefit costs | (6) | (6) | (4) | |
Defined benefit plans, net | (5) | (2) | 8 | |
Net activity for defined benefit plans, net | ||||
Net actuarial gain (loss) arising during the period | (1) | (5) | (25) | |
Reclassification of amounts to net periodic benefit costs | 12 | 11 | 8 | |
Defined benefit plans, net | 11 | 6 | (17) | |
Total Other Comprehensive Activity | ||||
Other comprehensive income (loss) | (11) | (6) | 17 | |
Total Accumulated Other Comprehensive Income | ||||
Total Accumulated Other Comprehensive Income - Beginning Balance | (63) | (69) | (52) | |
Other comprehensive income (loss), Net of Tax | (11) | (6) | 17 | |
Total Accumulated Other Comprehensive Income - Ending Balance | $ (52) | $ (63) | $ (69) | |
[1] | Amounts in parentheses indicate reductions to net income. |
AOCI (Reclassification Out of A
AOCI (Reclassification Out of Accumulated Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net periodic pension cost | $ 16 | $ 13 | $ 8 | |
Income Before Income Taxes | 2,065 | 2,365 | 2,028 | |
Applicable income tax expense | 505 | 659 | 545 | |
Net income | 1,564 | 1,712 | 1,481 | |
Total reclassifications for the period | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net income | 26 | 48 | 45 | |
Net unrealized gains on available-for-sale securities | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment for net losses (gains) included in net income | [1] | 11 | 16 | 37 |
Income Before Income Taxes | [1] | 11 | 16 | 37 |
Applicable income tax expense | [1] | (4) | (6) | (13) |
Net income | [1] | 7 | 10 | 24 |
Net unrealized gains on cash flow hedge derivatives | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 48 | 75 | 44 | |
Income Before Income Taxes | [1] | 48 | 75 | 44 |
Applicable income tax expense | [1] | (17) | (26) | (15) |
Net income | [1] | 31 | 49 | 29 |
Net unrealized gains on cash flow hedge derivatives | Interest rate contracts related to C&I loans | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | [1] | 48 | 75 | 44 |
Amortization of defined periodic benefit costs | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Income Before Income Taxes | [1] | (18) | (17) | (12) |
Applicable income tax expense | [1] | 6 | 6 | 4 |
Net income | [1] | (12) | (11) | (8) |
Amortization of defined periodic benefit costs | Net Actuarial Loss | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net periodic pension cost | [1],[2] | (11) | (10) | (7) |
Amortization of defined periodic benefit costs | Pension Settlement | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net periodic pension cost | [1],[2] | $ (7) | $ (7) | $ (5) |
[1] | Amounts in parentheses indicate reductions to net income. | |||
[2] | This AOCI component is included in the computation of net periodi c benefit cost. Refer to Note 20 f or information on the computation of net periodic benefit cost. |
Common, Preferred and Treasu171
Common, Preferred and Treasury Stock (Share Acitivity within Common, Preferred and Treasury Stock) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Values | ||||
Beginning Balance | $ 15,870 | $ 15,665 | $ 14,626 | |
Shares acquired for treasury | (661) | (850) | (654) | |
Issuance of preferred stock | 297 | |||
Issuance of preferred stock | 0 | 0 | 297 | |
Impact of stock transactions under stock compensation plans, net | 80 | 75 | 60 | |
Other | 1 | (2) | 0 | |
Ending Balance | 16,232 | 15,870 | 15,665 | $ 14,626 |
4.90% fixed-to-floating non-cumulative Series J perpetual preferred stock | ||||
Values | ||||
Issuance of preferred stock | 297 | |||
Series I Preferred Stock | ||||
Values | ||||
Issuance of preferred stock | 441 | |||
Preferred stock Series H | ||||
Values | ||||
Issuance of preferred stock | 593 | |||
Common stock | ||||
Values | ||||
Beginning Balance | 2,051 | 2,051 | 2,051 | |
Ending Balance | $ 2,051 | $ 2,051 | $ 2,051 | $ 2,051 |
Shares | ||||
Beginning balance | 923,892,581 | 923,892,581 | 923,892,581 | |
Ending balance | 923,892,581 | 923,892,581 | 923,892,581 | 923,892,581 |
Preferred Stock | ||||
Values | ||||
Beginning Balance | $ 1,331 | $ 1,331 | $ 1,034 | |
Issuance of preferred stock | 297 | |||
Ending Balance | $ 1,331 | $ 1,331 | $ 1,331 | $ 1,034 |
Shares | ||||
Beginning balance | 54,000 | 54,000 | 42,000 | |
Ending balance | 54,000 | 54,000 | 54,000 | 42,000 |
Preferred Stock | 4.90% fixed-to-floating non-cumulative Series J perpetual preferred stock | ||||
Shares | ||||
Issuance of preferred stock | 12,000 | |||
Treasury Stock | ||||
Values | ||||
Beginning Balance | $ (2,764) | $ (1,972) | $ (1,295) | |
Shares acquired for treasury | (668) | (847) | (726) | |
Impact of stock transactions under stock compensation plans, net | (4) | 52 | 47 | |
Other | 3 | 3 | 2 | |
Ending Balance | $ (3,433) | $ (2,764) | $ (1,972) | $ (1,295) |
Shares | ||||
Beginning balance | 138,812,267 | 99,845,629 | 68,586,836 | |
Shares acquired for treasury | 34,633,221 | 42,607,855 | 34,799,873 | |
Impact of stock transactions under stock compensation plans, net | 42,357 | (3,593,406) | (3,493,671) | |
Other | (74,563) | (47,811) | (47,409) | |
Ending balance | 173,413,282 | 138,812,267 | 99,845,629 | 68,586,836 |
Common, Preferred and Treasu172
Common, Preferred and Treasury Stock (Common, Preferred, and Treasury Stock - Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Issuance of preferred stock | $ 0 | $ 0 | $ 297 | |
4.90% fixed-to-floating non-cumulative Series J perpetual preferred stock | ||||
Depositary shares | 300,000 | |||
Preferred stock, issued | 12,000 | 12,000 | 12,000 | |
Issuance of preferred stock | $ 297 | |||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | $ 25,000 | |
Preferred Stock, Dividend Payment Terms | The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 4.90% through but excluding September 30, 2019, at which time it converts to a quarterly floating-rate dividend of three-month LIBOR plus 3.129%. | |||
Preferred Stock, Redemption Terms | Subject to any required regulatory approval, the Bancorp may redeem the Series J preferred shares at its option, in whole or in part, at any time on or after September 30, 2019, or any time prior following a regulatory capital event | |||
Preferred stock, shares authorized | 12,000 | 12,000 | ||
Series I Preferred Stock | ||||
Depositary shares | 18,000,000 | |||
Preferred stock, issued | 18,000 | 18,000 | 18,000 | |
Issuance of preferred stock | $ 441 | |||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | $ 25,000 | |
Preferred Stock, Dividend Payment Terms | The preferred stock accrues dividends, on a non-cumulative quarterly basis, at an annual rate of 6.625% through but excluding December 31, 2023, at which time it converts to a quarterly floating-rate dividend of three-month LIBOR plus 3.71% | |||
Preferred Stock, Redemption Terms | Subject to any required regulatory approval, the Bancorp may redeem the Series I preferred shares at its option in whole or in part, at any time on or after December 31, 2023 and may redeem in whole but not in part, following a regulatory capital event at any time prior to December 31, 2023 | |||
Preferred stock, shares authorized | 18,000 | 18,000 | ||
Preferred stock Series H | ||||
Depositary shares | 600,000 | |||
Preferred stock, issued | 24,000 | 24,000 | 24,000 | |
Issuance of preferred stock | $ 593 | |||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | $ 25,000 | |
Preferred Stock, Dividend Payment Terms | The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 5.10% through but excluding June 30, 2023, at which time it converts to a quarterly floating-rate dividend of three-month LIBOR plus 3.033% | |||
Preferred Stock, Redemption Terms | Subject to any required regulatory approval, the Bancorp may redeem the Series H preferred shares at its option in whole or in part, at any time on or after June 30, 2023 and may redeem in whole but not in part, following a regulatory capital event at any time prior to June 30, 2023 | |||
Preferred stock, shares authorized | 24,000 | 24,000 | ||
March 2014 Repurchase Program | ||||
Stock Repurchase Authorization Amount | $ 765 | $ 669 | ||
March 2016 Repurchase Program | ||||
Stock Repurchase Authorization Amount | $ 660 | |||
Repurchase Shares Authorized | 100 | |||
Preferred Stock | 4.90% fixed-to-floating non-cumulative Series J perpetual preferred stock | ||||
Issuance of stock | 12,000 |
Common, Preferred and Treasu173
Common, Preferred and Treasury Stock (Accelerated Share Repurchase Transactions) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 661 | $ 850 | $ 654 | |
October 20, 2014 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Oct. 23, 2014 | |||
Settlement date | Jan. 8, 2015 | |||
October 20, 2014 ASR | March 2014 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 180 | |||
Shares repurchased on repurchase date | 8,337,875 | |||
Shares received from forward contract settlement | 794,245 | |||
Total shares repurchased | 9,132,120 | |||
January 22, 2015 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Jan. 27, 2015 | |||
Settlement date | Apr. 28, 2015 | |||
January 22, 2015 ASR | March 2014 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 180 | |||
Shares repurchased on repurchase date | 8,542,713 | |||
Shares received from forward contract settlement | 1,103,744 | |||
Total shares repurchased | 9,646,457 | |||
April 27, 2015 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Apr. 30, 2015 | |||
Settlement date | Jul. 31, 2015 | |||
April 27, 2015 ASR | March 2014 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 155 | |||
Shares repurchased on repurchase date | 6,704,835 | |||
Shares received from forward contract settlement | 842,655 | |||
Total shares repurchased | 7,547,490 | |||
July 30, 2015 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Aug. 3, 2015 | |||
Settlement date | Sep. 3, 2015 | |||
July 30, 2015 ASR | March 2014 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 150 | |||
Shares repurchased on repurchase date | 6,039,792 | |||
Shares received from forward contract settlement | 1,346,314 | |||
Total shares repurchased | 7,386,106 | |||
September 4, 2015 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Sep. 9, 2015 | |||
Settlement date | Oct. 23, 2015 | |||
September 4, 2015 ASR | March 2014 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 150 | |||
Shares repurchased on repurchase date | 6,538,462 | |||
Shares received from forward contract settlement | 1,446,613 | |||
Total shares repurchased | 7,985,075 | |||
December 9, 2015 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Dec. 14, 2015 | |||
Settlement date | Jan. 14, 2016 | |||
December 9, 2015 ASR | March 2014 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 215 | |||
Shares repurchased on repurchase date | 9,248,482 | |||
Shares received from forward contract settlement | 1,782,477 | |||
Total shares repurchased | 11,030,959 | |||
March 2, 2016 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Mar. 4, 2016 | |||
Shares acquired for treasury | $ 240 | |||
Settlement date | Apr. 11, 2016 | |||
March 2, 2016 ASR | March 2014 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 240 | |||
Shares repurchased on repurchase date | 12,623,762 | |||
Shares received from forward contract settlement | 1,868,379 | |||
Total shares repurchased | 14,492,141 | |||
August 3, 2016 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Aug. 5, 2016 | |||
Shares acquired for treasury | $ 240 | |||
Settlement date | Nov. 7, 2016 | |||
August 3, 2016 ASR | March 2016 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 240 | |||
Shares repurchased on repurchase date | 10,979,548 | |||
Shares received from forward contract settlement | 1,099,205 | |||
Total shares repurchased | 12,078,753 | |||
December 16, 2016 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Dec. 20, 2016 | |||
Shares acquired for treasury | $ 155 | |||
Settlement date | Feb. 6, 2017 | |||
December 16, 2016 ASR | March 2016 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 155 | |||
Shares repurchased on repurchase date | 4,843,750 | |||
Shares received from forward contract settlement | 1,044,362 | |||
Total shares repurchased | 5,888,112 | |||
June 15 2016 Open Market Repurchase | March 2016 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 26 | |||
Shares repurchased on repurchase date | 1,436,100 | |||
Total shares repurchased | 1,436,100 | |||
Settlement date | Jun. 20, 2016 |
Stock-Based Compensation (Numbe
Stock-Based Compensation (Number of Shares to be issued upon Exercise of Outstanding Stock-Based Awards and Remaining Shares Available for Future Issuance under all Equity Compensation Plans) (Detail) shares in Thousands | Dec. 31, 2016$ / sharesshares | |
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Number of Shares to be Issued Upon Exercise | 9,731 | |
Shares Available for Future Issuance | 24,607 | |
Equity compensation plans | ||
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Shares Available for Future Issuance | 18,478 | [1],[2] |
Restricted Stock Awards | ||
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Number of Shares to be Issued Upon Exercise | 4,638 | |
Restricted Stock Units | ||
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Number of Shares to be Issued Upon Exercise | 5,086 | |
Stock options | ||
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Number of Shares to be Issued Upon Exercise | 7 | [3] |
Weighted-Average Exercise Price Per Share | $ / shares | $ 32.26 | [3] |
Employee stock purchase plan | ||
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Shares Available for Future Issuance | 6,129 | [4] |
[1] | Inclu des 4 million shares for Full Value Awards . | |
[2] | Under the 2014 Incentive Compensation Plan, 36 million shares were authorized for issuance as SARs, RSAs, RSUs, stock options, performance share or unit awards, dividend or dividend equivalent rights and stock awards. | |
[3] | Excludes 0. 02 million outstanding options awarded under plans assum ed by the Bancorp in connection with certain mergers and acquisitions. The Bancorp has not made any awards under these plans and will make no additional awards under these plans. The weighted-average exercise price of the se outstanding options is $ 14.05 pe r share . | |
[4] | Represents remaining shares of Fifth Third common stock under the Bancorp’s 1993 Stock Purchase Plan, as amended and restated, including an additional 1.5 million shares approved by shareholders on March 28, 2007 and an additional 12 million shares approved by shareholders on April 21, 2009 . |
Stock-Based Compensation (Nu175
Stock-Based Compensation (Number of Shares to be issued upon Exercise of Outstanding Stock-Based Awards and Remaining Shares Available for Future Issuance under all Equity Compensation Plans) (Parenthetical) (Detail) - $ / shares shares in Thousands | 12 Months Ended | |||||
Dec. 31, 2009 | Dec. 31, 2007 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Stock Ownership Plan (ESOP) Disclosures | ||||||
Outstanding options awarded in connection with mergers and acquisitions | 25 | 119 | 265 | 546 | ||
Weighted-average exercise price of the outstanding options | $ 19.17 | $ 14.97 | $ 14.25 | $ 20.72 | ||
Number of shares to be issued based on predefined performance targets | 9,731 | |||||
Additional shares approved by shareholders included under Bancorp's 1993 Stock Purchase Plan | 12,000 | 1,500 | ||||
Shares Available for Future Issuance | 24,607 | |||||
Performance Share Awards | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures | ||||||
Number of shares to be issued based on predefined performance targets | 2,000 | |||||
Series of Individually Immaterial Business Acquisitions | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures | ||||||
Outstanding options awarded in connection with mergers and acquisitions | 20 | |||||
Weighted-average exercise price of the outstanding options | $ 14.05 | |||||
2014 Incentive Compensation Plan | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures | ||||||
Stock authorized for issuance | 36,000 | |||||
2014 Incentive Compensation Plan | Shares For Full Value Awards | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures | ||||||
Stock authorized for issuance | 16,000 | |||||
Shares Available for Future Issuance | 4,000 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Share-based Payment, Award, Stock Appreciation Rights, Valuation Assumptions) (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life (in years) | 6 years | 6 years | 6 years |
Expected volatility | 37.00% | 35.00% | 35.00% |
Expected dividend yield | 3.10% | 2.70% | 2.40% |
Risk-free interest rate | 1.50% | 1.60% | 2.00% |
Stock-Based Compensation (Sc177
Stock-Based Compensation (Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity) (Detail) - Stock Appreciation Rights - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares/Units | |||
Outstanding at January 1 | 44,129 | 45,590 | 48,599 |
Granted | 6,379 | 5,219 | 4,526 |
Exercised | (6,291) | (3,242) | (4,408) |
Forfeited or expired | (4,176) | (3,438) | (3,127) |
Outstanding at December 31 | 40,041 | 44,129 | 45,590 |
Exercisable at December 31 | 26,898 | 29,721 | 27,950 |
Weighted-Average Grant Price | |||
Outstanding at January 1 | $ 19.14 | $ 19.79 | $ 19.98 |
Granted | 17.68 | 18.99 | 21.63 |
Exercised | 14.47 | 13.59 | 13.63 |
Forfeited or expired | 32.02 | 32.96 | 34.19 |
Outstanding at December 31 | 18.3 | 19.14 | 19.79 |
Exercisable at December 31 | $ 18.28 | $ 19.71 | $ 21.71 |
Stock-Based Compensation (Outst
Stock-Based Compensation (Outstanding and Exercisable SARs by Grant Price) (Detail) - Stock Appreciation Rights - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 40,041 | 44,129 | 45,590 | 48,599 |
Outstanding SARs Weighted-Average Grant Price Per Share | $ 18.3 | $ 19.14 | $ 19.79 | $ 19.98 |
Outstanding Weighted-Average Remaining Contractual Life (in years) | 5 years 4 months 24 days | |||
Number of SARs Exercisable at Year End | 26,898 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 18.28 | $ 19.71 | $ 21.71 | |
Exercisable Weighted-Average Remaining Contractual Life (in years) | 4 years | |||
$10.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 2,195 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 3.98 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 2 years 3 months 18 days | |||
Number of SARs Exercisable at Year End | 2,195 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 3.98 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 2 years 3 months 18 days | |||
$10.01-$20.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 30,446 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 16.36 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 6 years 1 month 6 days | |||
Number of SARs Exercisable at Year End | 19,125 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 15.51 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 4 years 8 months 12 days | |||
$20.01-$30.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 3,513 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 21.64 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 7 years 3 months 18 days | |||
Number of SARs Exercisable at Year End | 1,691 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 21.65 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 7 years 2 months 12 days | |||
$30.01-$40.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 3,305 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 38.27 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 3 months 18 days | |||
Number of SARs Exercisable at Year End | 3,305 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 38.27 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 3 months 18 days | |||
$40.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 582 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 40.11 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 3 months 18 days | |||
Number of SARs Exercisable at Year End | 582 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 40.11 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 3 months 18 days |
Stock-Based Compensation (Sc179
Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock Award Activity) (Detail) - Restricted Stock Awards - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares/Units | |||
Outstanding at January 1 | 8,281 | 7,253 | 6,710 |
Granted | 3 | 4,250 | 3,264 |
Released | (3,090) | (2,580) | (2,183) |
Forfeited | (556) | (642) | (538) |
Outstanding at December 31 | 4,638 | 8,281 | 7,253 |
Weighted-Average Grant Price | |||
Outstanding at January 1 | $ 18.88 | $ 17.98 | $ 15.11 |
Granted | 20.65 | 19.11 | 21.61 |
Released | 17.92 | 16.86 | 14.84 |
Forfeited | 19.2 | 18.64 | 16.73 |
Outstanding at December 31 | $ 19.44 | $ 18.88 | $ 17.98 |
Stock-Based Compensation (Unves
Stock-Based Compensation (Unvested RSAs by Grant-Date Fair Value) (Detail) - Restricted Stock Awards - shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 4,638 | 8,281 | 7,253 | 6,710 |
Weighted-Average Remaining Contractual Life (in years) | 1 year 1 month 6 days | |||
$15.01-$20.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 3,187 | |||
Weighted-Average Remaining Contractual Life (in years) | 1 year 2 months 12 days | |||
$20.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 1,451 | |||
Weighted-Average Remaining Contractual Life (in years) | 1 year |
Stock-Based Compensation (Sc181
Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock Units Activity) (Detail) - Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Shares/Units | ||
Outstanding at January 1 | 371 | 0 |
Granted | 5,029 | 377 |
Released | (79) | (5) |
Forfeited | (235) | (1) |
Outstanding at December 31 | 5,086 | 371 |
Weighted-Average Grant Price | ||
Outstanding at January 1 | $ 19.56 | |
Granted | 17.75 | $ 19.58 |
Released | 19.76 | 21.63 |
Forfeited | 17.89 | 19.46 |
Outstanding at December 31 | $ 17.84 | $ 19.56 |
Stock-Based Compensation (Un182
Stock-Based Compensation (Unvested RSUs by Grant-Date Fair Value) (Detail) - Restricted Stock Units - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of Shares/Units Outstanding at Year End | 5,086 | 371 | 0 |
Weighted-Average Remaining Contractual Life (in years) | 1 year 8 months 12 days | ||
$10.01-$15.00 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of Shares/Units Outstanding at Year End | 638 | ||
Weighted-Average Remaining Contractual Life (in years) | 1 year 1 month 6 days | ||
$15.01-$20.00 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of Shares/Units Outstanding at Year End | 4,265 | ||
Weighted-Average Remaining Contractual Life (in years) | 1 year 9 months 18 days | ||
$20.01-$25.00 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of Shares/Units Outstanding at Year End | 159 | ||
Weighted-Average Remaining Contractual Life (in years) | 2 years | ||
$25.01-$30.00 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of Shares/Units Outstanding at Year End | 24 | ||
Weighted-Average Remaining Contractual Life (in years) | 2 years 1 month 6 days |
Stock-Based Compensation (Sc183
Stock-Based Compensation (Schedule of Share-based Compensation, Stock Options, Activity) (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Options | |||
Outstanding at January 1 | 119 | 265 | 546 |
Exercised | (94) | (126) | (115) |
Forfeited or expired | 0 | (20) | (166) |
Outstanding at December 31 | 25 | 119 | 265 |
Exercisable at December 31 | 25 | 119 | 265 |
Weighted-Average Exercise Price | |||
Outstanding at January 1 | $ 14.97 | $ 14.25 | $ 20.72 |
Exercised | 13.86 | 13.67 | 12.84 |
Forfeited or expired | 0 | 13.59 | 36.42 |
Outstanding at December 31 | 19.17 | 14.97 | 14.25 |
Exercisable at December 31 | $ 19.17 | $ 14.97 | $ 14.25 |
Stock-Based Compensation (Ou184
Stock-Based Compensation (Outstanding and Exercisable Stock Options by Exercise Price) (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of Options at Year End | shares | 25 |
Weighted-Average Exercise Price Per Share | $ / shares | $ 19.17 |
Weighted-Average Remaining Contractual Life (in years) | 2 months 12 days |
$10.00 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of Options at Year End | shares | 1 |
Weighted-Average Exercise Price Per Share | $ / shares | $ 8.59 |
Weighted-Average Remaining Contractual Life (in years) | 2 years |
$10.01-$20.00 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of Options at Year End | shares | 18 |
Weighted-Average Exercise Price Per Share | $ / shares | $ 14.05 |
Weighted-Average Remaining Contractual Life (in years) | 1 month 6 days |
$20.01-$30.00 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of Options at Year End | shares | 1 |
Weighted-Average Exercise Price Per Share | $ / shares | $ 24.41 |
Weighted-Average Remaining Contractual Life (in years) | 1 year |
$30.01-$40.00 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of Options at Year End | shares | 0 |
Weighted-Average Exercise Price Per Share | $ / shares | $ 0 |
Weighted-Average Remaining Contractual Life (in years) | 0 years |
$40.00 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of Options at Year End | shares | 5 |
Weighted-Average Exercise Price Per Share | $ / shares | $ 40.98 |
Weighted-Average Remaining Contractual Life (in years) | 0 years |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-Based Compensation - Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Stock Ownership Plan (ESOP) Disclosures | |||
The Bancorp's total overhang (potential dilution from share-based compensation) | 9.00% | ||
SARs, RSAs, RSUs, stock options and PSAs outstanding as a percentage of issued shares | 7.00% | ||
Annual return on tangible common equity performance hurdle | 2.00% | ||
Stock-based compensation expense | $ 111 | $ 100 | $ 83 |
Income tax benefit related to stock-based compensation expense | $ 39 | $ 36 | $ 30 |
2014 Incentive Compensation Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Stock authorized for issuance | 36,000,000 | ||
2014 Incentive Compensation Plan | Shares For Full Value Awards | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Stock authorized for issuance | 16,000,000 | ||
Stock Appreciation Rights Granted | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Vesting period of share based compensation | ratably over a four year period of continued employment | ||
Weighted-average grant-date fair value per share | $ 5.16 | $ 5.52 | $ 6.53 |
Shares granted | 6,379,000 | 5,219,000 | 4,526,000 |
Stock Appreciation Rights Vested | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Total grant-date fair value | $ 32 | $ 35 | $ 34 |
Stock Appreciation Rights Outstanding | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Stock-based compensation expense | $ 40 | ||
Weighted-average period over which expense is expected to be recognized | 2 years 4 months 24 days | ||
Restricted Stock Awards | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Vesting period of share based compensation | after three or four years or ratably over three or four years of continued employment. | ||
Stock-based compensation expense | $ 52 | ||
Total grant-date fair value | $ 55 | $ 43 | $ 32 |
Weighted-average period over which expense is expected to be recognized | 2 years | ||
Shares granted | 3,000 | 4,250,000 | 3,264,000 |
Restricted Stock Units | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Vesting period of share based compensation | after three or four years or ratably over three or four years of continued employment. | ||
Stock-based compensation expense | $ 57 | ||
Total grant-date fair value | $ 2 | $ 2 | |
Weighted-average period over which expense is expected to be recognized | 2 years 10 months 24 days | ||
Shares granted | 5,029,000 | 377,000 | |
Stock options | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Intrinsic value of stock options exercised | $ 1 | $ 1 | |
Cash received from stock options exercised | $ 1 | $ 2 | $ 1 |
Stock options vested | 0 | 0 | 0 |
Performance Share Awards | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Vesting period of share based compensation | three year cliff vesting terms | ||
Weighted-average grant-date fair value per share | $ 14.87 | $ 19.48 | $ 15.61 |
Shares granted | 583,608 | 458,355 | 322,567 |
Employee stock purchase plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Stock-based compensation expense | $ 1 | $ 1 | $ 1 |
Match on qualifying employees purchase of shares of the Bancorp's common stock | 15.00% | ||
Stock purchased by plan participants | 684,885 | 617,829 | 599,101 |
Other Noninterest Income and186
Other Noninterest Income and Other Noninterest Expense (Other Nonint Income and Expense) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Noninterest Income | |||
Income from the tax receivable agreement associated with Vantiv, Inc. | $ 313 | $ 80 | $ 23 |
Operating lease income | 102 | 89 | 84 |
Equity method income from interest in Vantiv Holding, LLC | 66 | 63 | 48 |
Valuation adjustments on the warrant associated with Vantiv Holding, LLC | 64 | 236 | 31 |
BOLI income (loss) | 53 | 48 | 44 |
Cardholder fees | 46 | 43 | 45 |
Consumer loan and lease fees | 23 | 23 | 25 |
Banking center income | 20 | 21 | 30 |
Gain on sale of certain retail branch operations | 19 | 0 | 0 |
Private equity investment income | 11 | 28 | 27 |
Insurance income | 11 | 14 | 13 |
Net gain on loan sales | 10 | 38 | 0 |
Gain on sale and exercise of the warrant associated with Vantiv Holding, LLC | 9 | 89 | 0 |
Gain on sale of Vantiv, Inc. shares | 0 | 331 | 125 |
Loss on swap associated with the sale of Visa, Inc. class B shares | (56) | (37) | (38) |
Net losses on disposition and impairment of bank premises and equipment | (13) | (101) | (19) |
Other, net | 10 | 14 | 12 |
Total other noninterest income | 688 | 979 | 450 |
Other Noninterest Expense | |||
Impairment on affordable housing investments | 168 | 145 | 135 |
FDIC insurance and other taxes | 126 | 99 | 89 |
Loan and lease | 110 | 118 | 119 |
Marketing | 104 | 110 | 98 |
Operating Lease | 86 | 74 | 67 |
Losses and adjustments | 73 | 55 | 188 |
Professional services fees | 61 | 70 | 72 |
Data processing | 51 | 45 | 41 |
Postal and courier | 46 | 45 | 47 |
Travel | 45 | 54 | 52 |
Recruitment and education | 37 | 33 | 28 |
Provision for (benefit from) for the reserve for unfunded commitments | 23 | 4 | (27) |
Donations | 23 | 29 | 18 |
Insurance | 15 | 17 | 16 |
Supplies | 14 | 16 | 15 |
Other, net | 187 | 191 | 181 |
Total other noninterest expense | $ 1,169 | $ 1,105 | $ 1,139 |
EPS (Calculation of Earnings Pe
EPS (Calculation of Earnings Per Share and the Reconciliation of Earnings Per Share to Earnings Per Diluted Share) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings per share: | |||
Net income (loss) attributable to Bancorp | $ 1,564 | $ 1,712 | $ 1,481 |
Dividends on preferred stock | 75 | 75 | 67 |
Net income (loss) available to common shareholders | 1,489 | 1,637 | 1,414 |
Less: Income allocated to participating securities | 15 | 15 | 12 |
Net income allocated to common shareholders | 1,474 | 1,622 | 1,402 |
Earnings per diluted share: | |||
Net income available to common shareholders | 1,489 | 1,637 | 1,414 |
Stock-based awards | 0 | 0 | 0 |
Net income available to common shareholders plus assumed conversions | 1,489 | 1,637 | 1,414 |
Less: Income allocated to participating securities | 15 | 15 | 12 |
Net income allocated to common shareholders plus assumed conversions | $ 1,474 | $ 1,622 | $ 1,402 |
Earnings per share: | |||
Net income allocated to common shareholders | 757,432,291 | 798,628,173 | 833,116,349 |
Effect of dilutive securities: | |||
Stock-based awards | 7,000,000 | 9,000,000 | 10,000,000 |
Net income allocated to common shareholders | 764,495,353 | 807,658,669 | 842,967,356 |
Earnings per share: | |||
Net income allocated to common shareholders | $ 1.95 | $ 2.03 | $ 1.68 |
Earnings per diluted share: | |||
Net income allocated to common shareholders plus assumed conversions | $ 1.93 | $ 2.01 | $ 1.66 |
EPS (Earnings Per Share - Addit
EPS (Earnings Per Share - Additional Information) (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Appreciation Rights | |||
Earnings Per Share Disclosure | |||
Anti-dilutive securities | 19 | 16 | 13 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |||
Assets: | |||||
Available-for-sale securities, fair value | [1] | $ 31,183 | $ 29,044 | ||
Trading securities | 410 | 386 | |||
Residential mortgage loans measured at fair value | 143 | 167 | |||
Derivative assets | 1,057 | 1,852 | |||
Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 30,576 | [2] | 28,440 | [3] | |
Trading securities | 410 | 386 | |||
Residential mortgage loans held for sale | 686 | 519 | |||
Residential mortgage loans measured at fair value | 143 | [4] | 167 | [5] | |
Derivative assets | 1,057 | [6] | 1,852 | [7] | |
Total assets | 32,872 | 31,364 | |||
Liabilities: | |||||
Derivative liabilities | 666 | [8] | 938 | [9] | |
Short positions | 21 | [8] | 29 | [9] | |
Total liabilities | 687 | 967 | |||
Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 748 | 910 | |||
Liabilities: | |||||
Derivative liabilities | 265 | 261 | |||
Foreign Exchange Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 202 | 386 | |||
Liabilities: | |||||
Derivative liabilities | 204 | 340 | |||
Equity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 0 | 262 | |||
Liabilities: | |||||
Derivative liabilities | 91 | 61 | |||
Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 107 | 294 | |||
Liabilities: | |||||
Derivative liabilities | 106 | 276 | |||
U.S. Treasury and federal agencies | |||||
Assets: | |||||
Available-for-sale securities, fair value | 549 | 1,187 | |||
U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 549 | 1,187 | |||
Trading securities | 23 | 19 | |||
Obligations of states and political subdivisions | |||||
Assets: | |||||
Available-for-sale securities, fair value | 45 | 52 | |||
Obligations of states and political subdivisions | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 45 | 52 | |||
Trading securities | 39 | 9 | |||
Agency mortgage-backed securities | Residential mortgage-backed securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | [10] | 15,608 | 15,081 | ||
Agency mortgage-backed securities | Residential mortgage-backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 15,608 | 15,081 | |||
Trading securities | 8 | 6 | |||
Agency mortgage-backed securities | Commercial mortgage-backed securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | 9,055 | 7,862 | |||
Agency mortgage-backed securities | Commercial mortgage-backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 9,055 | 7,862 | |||
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | 3,112 | 2,804 | |||
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 3,112 | 2,804 | |||
Asset-backed securities and other debt securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | 2,116 | 1,355 | |||
Asset-backed securities and other debt securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 2,116 | 1,355 | |||
Trading securities | 15 | 19 | |||
Equity securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | [11] | 698 | 703 | ||
Equity securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 91 | [2] | 99 | [3] | |
Trading securities | 325 | 333 | |||
Fair Value, Inputs, Level 1 | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 561 | [2],[12] | 198 | [3],[13] | |
Trading securities | 325 | [12] | 333 | [13] | |
Derivative assets | 42 | [6],[12] | 57 | [7],[13] | |
Total assets | 928 | [12] | 588 | [13] | |
Liabilities: | |||||
Derivative liabilities | 30 | [8],[12] | 38 | [9],[13] | |
Short positions | 17 | [8],[12] | 22 | [9],[13] | |
Total liabilities | 47 | [12] | 60 | [13] | |
Fair Value, Inputs, Level 1 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 20 | [12] | 3 | [13] | |
Liabilities: | |||||
Derivative liabilities | 3 | [12] | 1 | [13] | |
Fair Value, Inputs, Level 1 | Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 22 | [12] | 54 | [13] | |
Liabilities: | |||||
Derivative liabilities | 27 | [12] | 37 | [13] | |
Fair Value, Inputs, Level 1 | U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 471 | [12] | 100 | [13] | |
Fair Value, Inputs, Level 1 | Equity securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 90 | [2],[12] | 98 | [3],[13] | |
Trading securities | 325 | [12] | 333 | [13] | |
Fair Value, Inputs, Level 2 | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 30,015 | [2],[12] | 28,242 | [3],[13] | |
Trading securities | 85 | [12] | 53 | [13] | |
Residential mortgage loans measured at fair value | 686 | [12] | 519 | [13] | |
Derivative assets | 1,002 | [6],[12] | 1,518 | [7],[13] | |
Total assets | 31,788 | [12] | 30,332 | [13] | |
Liabilities: | |||||
Derivative liabilities | 540 | [8],[12] | 836 | [9],[13] | |
Short positions | 4 | [8],[12] | 7 | [9],[13] | |
Total liabilities | 544 | [12] | 843 | [13] | |
Fair Value, Inputs, Level 2 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 715 | [12] | 892 | [13] | |
Liabilities: | |||||
Derivative liabilities | 257 | [12] | 257 | [13] | |
Fair Value, Inputs, Level 2 | Foreign Exchange Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 202 | [12] | 386 | [13] | |
Liabilities: | |||||
Derivative liabilities | 204 | [12] | 340 | [13] | |
Fair Value, Inputs, Level 2 | Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 85 | [12] | 240 | [13] | |
Liabilities: | |||||
Derivative liabilities | 79 | [12] | 239 | [13] | |
Fair Value, Inputs, Level 2 | U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 78 | [12] | 1,087 | [13] | |
Trading securities | 23 | [12] | 19 | [13] | |
Fair Value, Inputs, Level 2 | Obligations of states and political subdivisions | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 45 | [12] | 52 | [13] | |
Trading securities | 39 | [12] | 9 | [13] | |
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Residential mortgage-backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 15,608 | [12] | 15,081 | [13] | |
Trading securities | 8 | [12] | 6 | [13] | |
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Commercial mortgage-backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 9,055 | [12] | 7,862 | [13] | |
Fair Value, Inputs, Level 2 | Non-agency mortgage-backed securities | Commercial mortgage-backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 3,112 | [12] | 2,804 | [13] | |
Fair Value, Inputs, Level 2 | Asset-backed securities and other debt securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 2,116 | [12] | 1,355 | [13] | |
Trading securities | 15 | [12] | 19 | [13] | |
Fair Value, Inputs, Level 2 | Equity securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 1 | [2],[12] | 1 | [3],[13] | |
Fair Value, Inputs, Level 3 | Fair value, recurring | |||||
Assets: | |||||
Residential mortgage loans measured at fair value | 143 | [4] | 167 | [5] | |
Derivative assets | 13 | [6] | 277 | [7] | |
Total assets | 156 | 444 | |||
Liabilities: | |||||
Derivative liabilities | 96 | [8] | 64 | [9] | |
Total liabilities | 96 | 64 | |||
Fair Value, Inputs, Level 3 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 13 | 15 | |||
Liabilities: | |||||
Derivative liabilities | 5 | 3 | |||
Fair Value, Inputs, Level 3 | Equity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 0 | 262 | |||
Liabilities: | |||||
Derivative liabilities | $ 91 | $ 61 | |||
[1] | Amortized cost of $ 31,024 and $ 28,678 at December 31, 2016 and 2015 , respectively. | ||||
[2] | Excludes FHLB, FRB and DTCC restricted stock totaling $ 248 , $ 358 and $1 , respectively, at December 31, 2016 | ||||
[3] | Excludes FHLB, FRB and DTCC restricted stock totaling $ 248 , $ 355 and $1 , respectively, at December 31, 2015 . | ||||
[4] | Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . | ||||
[5] | Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . | ||||
[6] | Included in other assets in the Consolidated Balance Sheets. | ||||
[7] | Included in other assets in the Consolidated Balance Sheets. | ||||
[8] | Included in other liabilities in the Consolidated Balance Sheets. | ||||
[9] | Included in other liabilities in the Consolidated Balance Sheet s. | ||||
[10] | Includes interest-only mortgage-backed securities of $ 60 and $ 50 as of December 31, 2016 and 2015 , respectively, recorded at fair value with fair value changes recorded in securities gains, net , i n the Consolidated Statements of Income . | ||||
[11] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 358 , and $ 1 , respectively, at December 31, 2016 and $ 248 , $ 355 and $ 1 , respectively, at December 31, 2015 , that are carried at cost, and certain mutual fund and equity security holdings. | ||||
[12] | During the year ended December 31, 2016 , no assets or liabilities were transferred between Level 1 and Level 2 | ||||
[13] | During the year ended December 31, 2015 , no assets or liabilities were transferred between Level 1 and Level 2. |
Fair Value Measurements (Ass190
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Federal Home Loan Bank Stock | $ 248 | $ 248 |
Federal Reserve Bank Stock | 358 | 355 |
DTCC Stock | $ 1 | $ 1 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements - Additional Information) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2009 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Net fair value of the interest rate lock commitments | $ 12 | ||||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 25 bp | 6 | ||||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 50 bp | 11 | ||||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 25 bp | 6 | ||||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 50 bp | 13 | ||||
Change in fair value of interest rate lock commitments, due to 10% adverse changes in the assumed loan closing rates | 1 | ||||
Change in fair value of interest rate lock commitments, due to 20% adverse changes in the assumed loan closing rates | 2 | ||||
Change in fair value of interest rate lock commitments, due to 10% favorable changes in the assumed loan closing rates | 1 | ||||
Change in fair value of interest rate lock commitments, due to 20% favorable changes in the assumed loan closing rates | 2 | ||||
Portfolio loans to loans held for sale | 238 | $ 487 | $ 855 | ||
Existing loans held for sale, further adjusted | 686 | 519 | |||
Residential loans transferred to the Bancorp's portfolio | 28 | 288 | 31 | ||
Fair value changes included in earnings for instruments for which the fair value option was elected | 6 | 17 | |||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||||
Net Losses On Operating Lease Equipment | 9 | 33 | |||
OTTI | [1] | 16 | 5 | $ 24 | |
Larger commercial loans, subject to impairment review | 1 | ||||
Commercial Loans Held For Sale | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Portfolio loans to loans held for sale | 140 | 37 | |||
Existing loans held for sale, further adjusted | 2 | 1 | |||
Net impact related to fair value adjustments | 30 | 1 | |||
Gain Loss On Sales Of Loans Net | 5 | ||||
Residential Mortgagel Loans Held For Sale | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Portfolio loans to loans held for sale | 0 | 233 | |||
Net impact related to fair value adjustments | 2 | ||||
Other Real Estate Owned | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Net impact related to fair value adjustments | 9 | 10 | |||
Nonrecurring Losses Included As Charge-Offs | 8 | 14 | |||
Private equity investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
OTTI | $ 9 | $ 1 | |||
Vantiv Holding, LLC | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||||
Vantiv Holding, LLC Strike Price | $ 15.98 | ||||
Exchange Of Class C Shares For Class A Shares | 8 | ||||
Vantiv Holding, LLC | Class C Units | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Warrant Exercised Total Shares Settled | 5.7 | 5.4 | |||
Shares Exercised Underlying Warrant | 7.8 | ||||
Vantiv, Inc. | Class A Units | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Exchange Of Class C Shares For Class A Shares | 5.7 | 5.4 | |||
Vantiv, Inc. | Class A Units | Shares Sold In Secondary Offering | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Warrant Exercised Total Shares Settled | 4.8 | ||||
Vantiv, Inc. | Class A Units | Shares repurchased by Vantiv Inc. | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Warrant Exercised Total Shares Settled | 0.9 | ||||
Residential Mortgage Loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Residential loans transferred to the Bancorp's portfolio | $ 55 | ||||
Fair value adjustment | 1 | ||||
Fair value of loans | $ 2 | $ 2 | |||
[1] | (a) Included in securiti es gains, net, in the Consolidated Statements of Income . |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||
Beginning balance | $ 380 | $ 484 | $ 437 | |||
Included in earnings | 130 | 399 | 122 | |||
Purchases | (3) | (2) | (1) | |||
Sale and exercise of warrant | (334) | (477) | ||||
Sales | (1) | |||||
Settlements | (131) | (111) | (102) | |||
Transfers into Level 3 | 18 | [1] | 87 | [2] | 29 | [3] |
Ending balance | 60 | 380 | 484 | |||
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | (45) | [4] | 83 | [5] | 10 | [6] |
Trading Securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||
Beginning balance | 0 | 1 | ||||
Sales | (1) | |||||
Ending balance | 0 | |||||
Residential Mortgage | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||
Beginning balance | 167 | 108 | 92 | |||
Included in earnings | (2) | 0 | 4 | |||
Settlements | (40) | (28) | (17) | |||
Transfers into Level 3 | 18 | [1] | 87 | [2] | 29 | [3] |
Ending balance | 143 | 167 | 108 | |||
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | (2) | [4] | 0 | [5] | 4 | [6] |
Interest Rate Contract | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||
Beginning balance | 12 | [7] | 10 | [8] | 8 | [9] |
Included in earnings | 115 | [7] | 111 | [8] | 125 | [9] |
Purchases | (3) | [7] | (2) | [8] | (1) | [9] |
Settlements | (116) | [7] | (107) | [8] | (122) | [9] |
Ending balance | 8 | [7] | 12 | [7] | 10 | [8] |
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | 13 | [4],[7] | 17 | [5],[8] | 13 | [6],[9] |
Equity Contract | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||
Beginning balance | 201 | [8] | 366 | [9] | 336 | [9] |
Included in earnings | 17 | [7] | 288 | [8] | (7) | [9] |
Sale and exercise of warrant | (334) | [7] | (477) | [8] | ||
Settlements | 25 | [7] | 24 | [8] | 37 | [9] |
Ending balance | (91) | [7] | 201 | [8] | 366 | [9] |
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | $ (56) | [4],[7] | $ 66 | [5],[8] | $ (7) | [6],[9] |
[1] | Includes certain residential mortgage loans held for sale that were transferred to held for investment. | |||||
[2] | Includes certain residential mortgage loans held for sale that were transferred to held for investment. | |||||
[3] | Includes certain residential mortgage loans held for sale that were transferred to held for investment. | |||||
[4] | Includes interest income and expense. | |||||
[5] | Includes interest income and expense. | |||||
[6] | Includes interest income and expense. | |||||
[7] | Net interest rate derivatives include derivative assets and liabilities of $ 13 and $ 5 , respectively, as of December 31, 2016 . Net equity derivatives include derivative assets and liabilities of $ 0 and $ 91 , respectively, as of December 31, 2016 . | |||||
[8] | Net interest rate derivatives include derivative assets and liabilities of $ 15 and $ 3 , respect ively, as of December 31, 2015 . Net equity derivatives include derivative assets and liabilities of $ 262 and $ 61 , respectively, as of December 31, 2015 . | |||||
[9] | Net interest rate derivatives include derivative assets and liabilities of $ 12 and $ 2 , respectively, as of December 31, 2014 . Net equity derivatives include derivative assets and liabilities of $ 415 and $ 49 , respectively, as of December 31, 2014 . |
Fair Value Measurements (Rec193
Fair Value Measurements (Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Derivative assets | $ 60 | $ 380 | $ 484 | $ 437 |
Interest Rates | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Derivative assets | 13 | 15 | 12 | |
Derivative liabilities | 5 | 3 | 2 | |
Equity Contract | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Derivative assets | 0 | 262 | 415 | |
Derivative liabilities | $ 91 | $ 61 | $ 49 |
Fair Value Measurements (Total
Fair Value Measurements (Total Gains and Losses Included in Earnings for Assets and Liabilites Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Detail) - Fair Value, Inputs, Level 3 - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gains and losses included in earnings | $ 130 | $ 399 | $ 122 |
Mortgage Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gains and losses included in earnings | 112 | 110 | 127 |
Corporate Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gains and losses included in earnings | 1 | 1 | 2 |
Other Noninterest Income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gains and losses included in earnings | $ 17 | $ 288 | $ (7) |
Fair Value Measurements (Tot195
Fair Value Measurements (Total Gains and Losses Included in Earning Attributable to Changes in Unrealized Gains and Losses Related to Level 3 Assets and Liabilites Still Held at Year End) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | $ (45) | $ 83 | $ 10 |
Mortgage Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | 10 | 16 | 16 |
Corporate Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | 1 | 1 | 1 |
Other Noninterest Income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | $ (56) | $ 66 | $ (7) |
Fair Value Measurements (Fai196
Fair Value Measurements (Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Recurring Basis)) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Quantitative Information About Level 3 Fair Value Measurements | |||
Residential mortgage loans measured at fair value | $ 143 | $ 167 | |
Derivative instruments | 1,057 | 1,852 | |
Residential mortgage loans | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Residential mortgage loans measured at fair value | 143 | 167 | |
IRLCs, net | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Derivative instruments | 12 | 15 | |
Stock warrants associated with Vantiv Holding, LLC | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Derivative instruments | 0 | 262 | |
Swap associated with the sale of Visa, Inc. Class B shares | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Derivative instruments | $ (91) | $ (61) | |
Minimum | Residential mortgage loans | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Interest rate risk factor | (11.50%) | (9.20%) | |
Credit risk factor | 0.00% | 0.00% | |
Minimum | IRLCs, net | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Loan closing rates | 23.80% | 5.80% | |
Minimum | Stock warrants associated with Vantiv Holding, LLC | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Expected term (years) | 2 years | ||
Expected volatility | [1] | 22.60% | |
Minimum | Swap associated with the sale of Visa, Inc. Class B shares | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Timing of the resolution of the covered litigation | Dec. 31, 2018 | Dec. 31, 2016 | |
Maximum | Residential mortgage loans | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Interest rate risk factor | 13.80% | 16.50% | |
Credit risk factor | 75.60% | 80.50% | |
Maximum | IRLCs, net | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Loan closing rates | 99.50% | 94.00% | |
Maximum | Stock warrants associated with Vantiv Holding, LLC | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Expected term (years) | 13 years 6 months | ||
Expected volatility | [1] | 31.20% | |
Maximum | Swap associated with the sale of Visa, Inc. Class B shares | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Timing of the resolution of the covered litigation | Dec. 31, 2022 | Mar. 31, 2021 | |
Weighted-average | Residential mortgage loans | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Interest rate risk factor | 2.30% | 3.10% | |
Credit risk factor | 1.40% | 1.30% | |
Weighted-average | IRLCs, net | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Loan closing rates | 76.80% | 76.30% | |
Weighted-average | Stock warrants associated with Vantiv Holding, LLC | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Expected term (years) | 5 years 10 months 24 days | ||
Expected volatility | [1] | 25.90% | |
[1] | (a) Based o n historical and implied volatilities of Vantiv, Inc. and comparable companies assuming similar expected terms . |
Fair Value Measurements (Ass197
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | $ 1,346 | $ 1,575 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (262) | (340) |
Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 5 | 13 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (32) | 3 |
Residential Mortgagel Loans Held For Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 68 | |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (2) | |
Automobile Loans Held For Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 2 | |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | 0 | |
Credit Card Held For Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 4 | |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (2) | |
Commercial and Industrial Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 412 | 344 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (166) | (137) |
Commercial Mortgage Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 15 | 103 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (4) | (41) |
Commercial Construction Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 6 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | 2 | (5) |
Commercial Leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 3 | |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (3) | |
Residential mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 55 | |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (1) | |
Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 744 | 784 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | 7 | 4 |
Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 42 | 58 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (17) | (24) |
Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 28 | 83 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (31) | (101) |
Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 37 | 42 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (9) | (33) |
Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 60 | 13 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (9) | (1) |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 1,346 | 1,575 |
Fair Value, Inputs, Level 3 | Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 5 | 13 |
Fair Value, Inputs, Level 3 | Residential Mortgagel Loans Held For Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 68 | |
Fair Value, Inputs, Level 3 | Automobile Loans Held For Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 2 | |
Fair Value, Inputs, Level 3 | Credit Card Held For Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 4 | |
Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 412 | 344 |
Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 15 | 103 |
Fair Value, Inputs, Level 3 | Commercial Construction Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 6 |
Fair Value, Inputs, Level 3 | Commercial Leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 3 | |
Fair Value, Inputs, Level 3 | Residential mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 55 | |
Fair Value, Inputs, Level 3 | Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 744 | 784 |
Fair Value, Inputs, Level 3 | Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 42 | 58 |
Fair Value, Inputs, Level 3 | Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 28 | 83 |
Fair Value, Inputs, Level 3 | Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 37 | 42 |
Fair Value, Inputs, Level 3 | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | $ 60 | $ 13 |
Fair Value Measurements (Fai198
Fair Value Measurements (Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Nonrecurring Basis)) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Commercial Loans Held For Sale | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | $ 5 | $ 13 |
Residential Mortgagel Loans Held For Sale | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 68 | |
Automobile Loans Held For Sale | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 2 | |
Credit Card Held For Sale | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 4 | |
Commercial and Industrial Loans | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 412 | 344 |
Commercial Mortgage Loans | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 15 | 103 |
Commercial Construction Loans | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 0 | 6 |
Commercial Leases | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 3 | |
Residential mortgage loans | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 55 | |
Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 744 | 784 |
OREO Property | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 42 | 58 |
Bank premises and equipment | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 28 | 83 |
Operating lease equipment | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 37 | 42 |
Private equity investments | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | $ 60 | $ 13 |
Minimum | Residential Mortgagel Loans Held For Sale | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Interest rate risk factor | (7.50%) | |
Minimum | Residential mortgage loans | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Interest rate risk factor | (11.50%) | (9.20%) |
Credit risk factor | 0.00% | 0.00% |
Minimum | Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Prepayment speed | 0.70% | 1.00% |
OAS spread (bps) | 1.00% | 3.64% |
Minimum | Private equity investments | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Liquidity discount | 5.00% | |
Maximum | Residential Mortgagel Loans Held For Sale | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Interest rate risk factor | 0.10% | |
Maximum | Residential mortgage loans | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Interest rate risk factor | 13.80% | 16.50% |
Credit risk factor | 75.60% | 80.50% |
Maximum | Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Prepayment speed | 100.00% | 100.00% |
OAS spread (bps) | 15.15% | 15.15% |
Maximum | Private equity investments | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Liquidity discount | 37.50% | |
Weighted-average | Commercial Loans Held For Sale | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Discount spread | 4.40% | |
Weighted-average | Residential Mortgagel Loans Held For Sale | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Interest rate risk factor | (1.60%) | |
Credit risk factor | 0.10% | |
Weighted-average | Automobile Loans Held For Sale | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Discount spread | 3.10% | |
Weighted-average | Residential mortgage loans | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Interest rate risk factor | 2.30% | 3.10% |
Credit risk factor | 1.40% | 1.30% |
Weighted-average | Private equity investments | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Liquidity discount | 12.80% | 18.00% |
Weighted-average | Fixed | Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Prepayment speed | 10.20% | 11.80% |
OAS spread (bps) | 6.54% | 6.18% |
Weighted-average | Adjustable | Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Prepayment speed | 25.30% | 27.00% |
OAS spread (bps) | 7.38% | 7.03% |
Fair Value Measurements (Differ
Fair Value Measurements (Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance for Residential Mortgage Loans Measured at Fair Value) (Detail) - Residential mortgage loans - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Aggregate fair value | ||
Residential mortgage loans measured at fair value | $ 829 | $ 686 |
Past due loans of 90 days or more | 2 | 2 |
Nonaccrual loans | 1 | 2 |
Aggregate unpaid principal balance | ||
Residential mortgage loans measured at fair value | 823 | 669 |
Past due loans of 90 days or more | 2 | 2 |
Nonaccrual loans | 1 | 2 |
Difference | ||
Residential mortgage loans measured at fair value | 6 | 17 |
Past due loans of 90 days or more | 0 | 0 |
Nonaccrual loans | $ 0 | $ 0 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amounts and Estimated Fair Values for Certain Financial Instruments) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Financial assets: | |||||||
Cash and due from banks | $ 2,392 | [1] | $ 2,540 | [1] | $ 3,091 | $ 3,178 | |
Held-to-maturity securities, amortized cost | [2] | 26 | 70 | ||||
Other short-term investments | 2,754 | 2,671 | |||||
Loans held for sale | [3] | 751 | 903 | ||||
Portfolio loans and leases, net | 90,845 | 91,310 | |||||
Other securities, fair value | [4] | 31,183 | 29,044 | ||||
Held-to-maturity securities, fair value | 26 | 70 | |||||
Loans held for sale | 686 | 519 | |||||
Portfolio loans and leases at fair value | 143 | 167 | |||||
Financial liabilities: | |||||||
Deposits | [5] | 103,821 | 103,205 | ||||
Federal funds purchased | 132 | 151 | |||||
Other short-term borrowings | 3,535 | 1,507 | |||||
Long-term debt | [1] | 14,388 | 15,810 | [6] | |||
Residential Mortgage | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 143 | 167 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | |||||||
Financial assets: | |||||||
Cash and due from banks | 2,392 | 2,540 | |||||
Held-to-maturity securities, amortized cost | 26 | 70 | |||||
Other short-term investments | 2,754 | 2,671 | |||||
Loans held for sale | 65 | 384 | |||||
Portfolio loans and leases, net | 90,702 | 91,143 | |||||
Unallocated Allowance for Loan and Lease Losses | (112) | (115) | |||||
Financial liabilities: | |||||||
Deposits | 103,821 | 103,205 | |||||
Federal funds purchased | 132 | 151 | |||||
Other short-term borrowings | 3,535 | 1,507 | |||||
Long-term debt | 14,388 | 15,810 | [7] | ||||
Carrying (Reported) Amount, Fair Value Disclosure | FHLB and FRB restricted stock holdings | |||||||
Financial assets: | |||||||
Other securities | 607 | 604 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial and Industrial Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 40,958 | 41,479 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Mortgage Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 6,817 | 6,840 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Construction Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 3,887 | 3,190 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Leases | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 3,959 | 3,807 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Residential Mortgage | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 14,812 | 13,449 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Home Equity | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 7,637 | 8,234 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Automobile Loans | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 9,941 | 11,453 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Credit Card | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 2,135 | 2,160 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Other Consumer Loans and Leases | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 668 | 646 | |||||
Total Fair Value | |||||||
Financial assets: | |||||||
Cash and due from banks, fair value | 2,392 | 2,540 | |||||
Held-to-maturity securities, fair value | 26 | 70 | |||||
Other short term investments, fair value | 2,754 | 2,671 | |||||
Portfolio loans and leases at fair value | 92,872 | 92,282 | |||||
Financial liabilities: | |||||||
Deposits, fair value | 103,811 | 103,219 | |||||
Federal funds purchased, fair value | 132 | 151 | |||||
Other short-term borrowings, fair value | 3,535 | 1,507 | |||||
Long term debt, fair value | 14,833 | 16,228 | [7] | ||||
Total Fair Value | Non Fair Value Option HFS Loans | |||||||
Financial assets: | |||||||
Loans held for sale | 65 | 384 | |||||
Total Fair Value | FHLB and FRB restricted stock holdings | |||||||
Financial assets: | |||||||
Other securities, fair value | 607 | 604 | |||||
Total Fair Value | Commercial and Industrial Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 41,976 | 41,802 | |||||
Total Fair Value | Commercial Mortgage Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 6,735 | 6,656 | |||||
Total Fair Value | Commercial Construction Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 3,853 | 2,918 | |||||
Total Fair Value | Commercial Leases | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 3,651 | 3,533 | |||||
Total Fair Value | Residential Mortgage | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 15,415 | 14,061 | |||||
Total Fair Value | Home Equity | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 8,421 | 8,948 | |||||
Total Fair Value | Automobile Loans | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 9,640 | 11,170 | |||||
Total Fair Value | Credit Card | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 2,503 | 2,551 | |||||
Total Fair Value | Other Consumer Loans and Leases | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 678 | 643 | |||||
Total Fair Value | Fair Value, Inputs, Level 1 | |||||||
Financial assets: | |||||||
Cash and due from banks, fair value | 2,392 | 2,540 | |||||
Other short term investments, fair value | 2,754 | 2,671 | |||||
Financial liabilities: | |||||||
Federal funds purchased, fair value | 132 | 151 | |||||
Long term debt, fair value | 14,288 | 15,603 | [7] | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | |||||||
Financial liabilities: | |||||||
Deposits, fair value | 103,811 | 103,219 | |||||
Other short-term borrowings, fair value | 3,535 | 1,507 | |||||
Long term debt, fair value | 545 | 625 | [7] | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | FHLB and FRB restricted stock holdings | |||||||
Financial assets: | |||||||
Other securities, fair value | 607 | 604 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | |||||||
Financial assets: | |||||||
Held-to-maturity securities, fair value | 26 | 70 | |||||
Portfolio loans and leases at fair value | 92,872 | 92,282 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Non Fair Value Option HFS Loans | |||||||
Financial assets: | |||||||
Loans held for sale | 65 | 384 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 41,976 | 41,802 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 6,735 | 6,656 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Construction Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 3,853 | 2,918 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Leases | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 3,651 | 3,533 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Residential Mortgage | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 15,415 | 14,061 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Home Equity | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 8,421 | 8,948 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Automobile Loans | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 9,640 | 11,170 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Credit Card | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 2,503 | 2,551 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Other Consumer Loans and Leases | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | $ 678 | $ 643 | |||||
[1] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. | ||||||
[2] | Fair value of $ 26 and $ 70 at December 31, 2016 and 2015 , respectively. | ||||||
[3] | Includes $ 686 and $ 519 of residential mortgage loans held for sale measured at fair value at December 31, 2016 and 2015 , respectively. | ||||||
[4] | Amortized cost of $ 31,024 and $ 28,678 at December 31, 2016 and 2015 , respectively. | ||||||
[5] | Includes $ 0 and $ 628 of deposits held for sale at December 31, 2016 and 2015 , respectively. | ||||||
[6] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $34 of debt issuance costs from other assets to long-term debt. For further inform ation refer to Note 1 . | ||||||
[7] | (a) Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the re classification of $34 of debt issuance costs from other assets to long-term debt. For further information, refer to Note 1 . |
Fair Value Measurements (Car201
Fair Value Measurements (Carrying Amounts and Estimated Fair Values for Certain Financial Instruments) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables Fair Value Disclosure [Abstract] | |||
Unamortized debt issuance costs | $ 33 | $ 34 | $ 36 |
Regulatory Capital Requireme202
Regulatory Capital Requirements (Regulatory Capital Requirements and Capital Ratios - Additional Information) (Detail) - Trust Preferred Securities - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Compliance with Regulatory Capital Requirements under Banking Regulations | ||
Tier I capital (to risk-weighted assets) | $ 0 | $ 13 |
TruPS as a basis point percentage of risk-weighted assets | 0 | 1 |
Regulatory Capital Requireme203
Regulatory Capital Requirements (Capital and Risk-Based Capital and Leverage Ratios for the Bancorp and its Significant Subsidiary Banks) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Fifth Third Bancorp | |||
Risk Based Ratios | |||
CET1 capital (to risk-weighted assets) | 10.39% | 9.82% | [1] |
Tier I risk-based capital (to risk-weighted assets) | 11.50% | 10.93% | [1] |
Total risk-based capital (to risk-weighted assets) | 15.02% | 14.13% | [1] |
Tier I leverage (to quarterly average assets) | 9.90% | 9.54% | [1] |
Risk Based Capital | |||
CET1 capital (to risk-weighted assets) | $ 12,426 | $ 11,917 | |
Tier I risk-based capital (to risk-weighted assets) | 13,756 | 13,260 | |
Total risk-based capital (to risk weighted assets) | 17,972 | 17,134 | |
Tier I leverage (to quarterly average assets) | $ 13,756 | $ 13,260 | |
Fifth Third Bank | |||
Risk Based Ratios | |||
CET1 capital (to risk-weighted assets) | 11.92% | 11.92% | [1] |
Tier I risk-based capital (to risk-weighted assets) | 11.92% | 11.92% | [1] |
Total risk-based capital (to risk-weighted assets) | 13.76% | 13.12% | [1] |
Tier I leverage (to quarterly average assets) | 10.30% | 10.43% | [1] |
Risk Based Capital | |||
CET1 capital (to risk-weighted assets) | $ 14,015 | $ 14,216 | |
Tier I risk-based capital (to risk-weighted assets) | 14,015 | 14,216 | |
Total risk-based capital (to risk weighted assets) | 16,175 | 15,642 | |
Tier I leverage (to quarterly average assets) | $ 14,015 | $ 14,216 | |
[1] | (a) Ratios not restated for the adoption of the amended guidance of ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” For further information, r efer to Note 1 . |
Parent Company Financial Sta204
Parent Company Financial Statements (Condensed Statements of Income - Parent Company Only) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Dividends from subsidiaries: | ||||
Consolidated nonbank subsidiaries | $ 1,900 | $ 1,000 | ||
Total income | 4,193 | 4,028 | $ 4,030 | |
Expenses | ||||
Interest | 578 | 495 | 451 | |
Other | 187 | 191 | 181 | |
Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries | 2,065 | 2,365 | 2,028 | |
Applicable income tax benefit | (505) | (659) | (545) | |
Net income (loss) attributable to Bancorp | 1,564 | 1,712 | 1,481 | |
Other Comprehensive Income (loss) | (138) | (232) | 347 | |
Comprehensive income attributable to Bancorp | 1,426 | 1,480 | 1,828 | |
Parent Company Only | ||||
Dividends from subsidiaries: | ||||
Consolidated nonbank subsidiaries | [1] | 1,886 | 1,040 | 1,094 |
Interest on loans to subsidiaries | 18 | 15 | 14 | |
Total income | 1,904 | 1,055 | 1,108 | |
Expenses | ||||
Interest | 171 | 178 | 163 | |
Other | 18 | 22 | 17 | |
Total expenses | 189 | 200 | 180 | |
Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries | 1,715 | 855 | 928 | |
Applicable income tax benefit | 63 | 69 | 62 | |
Income (Loss) Before Change in Undistributed Earnings of Subsidiaries | 1,778 | 924 | 990 | |
Change in undistributed earnings (loss) | (214) | 788 | 491 | |
Net income (loss) attributable to Bancorp | 1,564 | 1,712 | 1,481 | |
Other Comprehensive Income (loss) | 0 | 0 | 0 | |
Comprehensive income attributable to Bancorp | $ 1,564 | $ 1,712 | $ 1,481 | |
[1] | (a) The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $1.9 billion , $1.0 billion and $1.1 billion for the years ended December 31, 2016 , 2015 and 2014 , respectively . |
Parent Company Financial Sta205
Parent Company Financial Statements (Condensed Statements of Income - Parent Company Only) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Dividend Received From Nonbank Companies And Related Subsidiaries | $ 1,900 | $ 1,000 | ||
Parent Company Only | ||||
Dividend Received From Nonbank Companies And Related Subsidiaries | [1] | $ 1,886 | $ 1,040 | $ 1,094 |
[1] | (a) The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $1.9 billion , $1.0 billion and $1.1 billion for the years ended December 31, 2016 , 2015 and 2014 , respectively . |
Parent Company Financial Sta206
Parent Company Financial Statements (Condensed Balance Sheet - Parent Company Only) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Investments in subsidiaries: | |||||||
Goodwill | $ 2,416 | $ 2,416 | $ 2,416 | ||||
Other assets | [1] | 7,844 | 7,965 | [2] | |||
Total Assets | 142,177 | 141,048 | [2],[3] | 138,670 | [4] | ||
Liabilities | |||||||
Other short-term borrowings | 3,535 | 1,507 | |||||
Accrued expenses and other liabilities | [1] | 2,269 | 2,341 | ||||
Long-term debt (external) | [1] | 14,388 | 15,810 | [2] | |||
Total liabilities | 125,945 | 125,178 | [2] | ||||
Shareholders' Equity | |||||||
Common stock | [5] | 2,051 | 2,051 | ||||
Preferred stock | [6] | 1,331 | 1,331 | ||||
Capital surplus | 2,756 | 2,666 | |||||
Retained earnings | 13,441 | 12,358 | |||||
Accumulated other comprehensive income | 59 | 197 | 429 | $ 82 | |||
Treasury stock | [5] | (3,433) | (2,764) | ||||
Noncontrolling interests | 27 | 31 | |||||
Total Equity | 16,205 | 15,839 | |||||
Total Equity | 16,232 | 15,870 | $ 15,665 | $ 14,626 | |||
Total Liabilities and Equity | 142,177 | 141,048 | |||||
Parent Company Only | |||||||
Assets | |||||||
Cash | 130 | 128 | |||||
Short-term Investments | 3,074 | 3,728 | |||||
Loans to subsidiaries: | |||||||
Nonbank subsidiaries | 969 | 982 | |||||
Total loans to subsidiaries | 969 | 982 | |||||
Investments in subsidiaries: | |||||||
Nonbank subsidiaries | 17,588 | 17,831 | |||||
Total investment in subsidiaries | 17,588 | 17,831 | |||||
Goodwill | 80 | 80 | |||||
Other assets | 366 | 414 | [7] | ||||
Total Assets | 22,207 | 23,163 | [7] | ||||
Liabilities | |||||||
Other short-term borrowings | 344 | 404 | |||||
Accrued expenses and other liabilities | 461 | 433 | |||||
Long-term debt (external) | 5,170 | 6,456 | [7] | ||||
Total liabilities | 5,975 | 7,293 | [7] | ||||
Shareholders' Equity | |||||||
Common stock | 2,051 | 2,051 | |||||
Preferred stock | 1,331 | 1,331 | |||||
Capital surplus | 2,756 | 2,666 | |||||
Retained earnings | 13,441 | 12,358 | |||||
Accumulated other comprehensive income | 59 | 197 | |||||
Treasury stock | (3,433) | (2,764) | |||||
Noncontrolling interests | 27 | 31 | |||||
Total Equity | 16,232 | 15,870 | |||||
Total Liabilities and Equity | $ 22,207 | $ 23,163 | [7] | ||||
[1] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. | ||||||
[2] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $34 of debt issuance costs from other assets to long-term debt. For further inform ation refer to Note 1 . | ||||||
[3] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $ 34 of debt issuance costs from other assets to long-term debt. For further information, refer to Note 1. | ||||||
[4] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2014 Consolidated Balance Sheet was adjusted t o reflect the reclassification of $ 3 6 of debt issuance costs from other assets to long-term debt. For further information, refer to Note 1. | ||||||
[5] | Common shares: Stated value $ 2.22 per share; authori zed 2 billion ; outstanding at December 31, 2016 – 750,479,299 (excludes 173,413,282 treasury shares) , 2015 – 785,080,314 (excludes 138,812,267 treasury shares). | ||||||
[6] | 446,000 shares of undesignated no pa r value preferred stock are authorized and unissued at December 31, 2016 and 2015 ; fixed-to-floating rate non-cumulative Series H perpetual preferred stock with a $ 25,000 liquidation preference: 24,000 authorized shares, issued and outstanding at December 31, 2016 and 2015 ; fixed-to-floating rate non-cumulative Series I perpetual preferred stock with a $ 25,000 liquidation preference: 18,000 authorized shares, issued and outstanding at December 31, 2016 and 2015 ; and fixed-to-floating rate non-cumulative Series J perpetual preferred stock with a $ 25,000 liquidation preference: 12,000 authorized shares, issue d and outstanding at December 31, 2016 and 2015 . | ||||||
[7] | (a) Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Condensed Balance Sheet was adjusted to reflect the reclassification of $ 17 of debt issuance costs from other assets to long-term debt. For further information refer to Note 1 . |
Parent Company Financial Sta207
Parent Company Financial Statements (Condensed Balance Sheet - Parent Company Only) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Unamortized debt issuance costs | $ 33 | $ 34 | $ 36 |
Parent Company Only | |||
Unamortized debt issuance costs | $ 17 |
Parent Company Financial Sta208
Parent Company Financial Statements (Condensed Statement of Cash Flow - Parent Company Only) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Operating Activities | |||||
Net income (loss) | $ 1,564 | $ 1,712 | $ 1,481 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
(Benefit from) provision for deferred income taxes | (148) | (71) | 79 | ||
Net change in undistributed earnings | 66 | 63 | 48 | ||
Net change in: | |||||
Other assets | 351 | 94 | (221) | ||
Accrued expenses and other liabilities | (157) | 327 | 1 | ||
Net Cash Provided by (Used in) Operating Activities | 2,114 | 2,418 | 2,076 | ||
Net change in: | |||||
Other short-term investments | (83) | 5,243 | (2,798) | ||
Net Cash Provided by (Used in) Investing Activities | (2,887) | (3,931) | (8,938) | ||
Financing Activities | |||||
Net change in other short-term borrowings | 2,028 | (49) | 176 | ||
Proceeds from issuance of long-term debt | 3,735 | 3,091 | 6,570 | ||
Repayment of long-term debt | 5,119 | 2,205 | 1,399 | ||
Dividends paid on common shares | 402 | 422 | 423 | ||
Dividends paid on preferred shares | 52 | 75 | 67 | ||
Issuance of preferred stock | 0 | 0 | 297 | ||
Repurchase of treasury stock and related forward contract | 661 | 850 | 654 | ||
Other, net | (31) | (28) | (22) | ||
Net Cash Provided (Used in) Provided by Financing Activities | 625 | 962 | 6,775 | ||
Net (Decrease) Increase in Cash | (148) | (551) | (87) | ||
Cash and Due from Banks at Beginning of Period | 2,540 | [1] | 3,091 | 3,178 | |
Cash and Due from Banks at End of Period | 2,392 | [1] | 2,540 | [1] | 3,091 |
Parent Company Only | |||||
Operating Activities | |||||
Net income (loss) | 1,564 | 1,712 | 1,481 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
(Benefit from) provision for deferred income taxes | 0 | (4) | (1) | ||
Net change in undistributed earnings | 214 | (788) | (491) | ||
Net change in: | |||||
Other assets | 14 | (18) | 9 | ||
Accrued expenses and other liabilities | (35) | 31 | (41) | ||
Net Cash Provided by (Used in) Operating Activities | 1,757 | 933 | 957 | ||
Net change in: | |||||
Other short-term investments | 654 | (539) | (684) | ||
Loans to subsidiaries | 13 | 2 | (10) | ||
Net Cash Provided by (Used in) Investing Activities | 667 | (537) | (694) | ||
Financing Activities | |||||
Net change in other short-term borrowings | (60) | (22) | 115 | ||
Proceeds from issuance of long-term debt | 0 | 1,099 | 499 | ||
Repayment of long-term debt | (1,250) | 0 | 0 | ||
Dividends paid on common shares | (402) | (422) | (423) | ||
Dividends paid on preferred shares | (52) | (75) | (67) | ||
Issuance of preferred stock | 0 | 0 | 297 | ||
Repurchase of treasury stock and related forward contract | (661) | (850) | (654) | ||
Other, net | 3 | 2 | (30) | ||
Net Cash Provided (Used in) Provided by Financing Activities | (2,422) | (268) | (263) | ||
Net (Decrease) Increase in Cash | 2 | 128 | 0 | ||
Cash and Due from Banks at Beginning of Period | 128 | 0 | 0 | ||
Cash and Due from Banks at End of Period | $ 130 | $ 128 | $ 0 | ||
[1] | Includes $ 85 and $ 152 of cash and due from banks, $ 1,216 and $ 2,537 of portfolio loans and leases, $ (26) and $ (28) of ALLL, $ 9 and $ 14 of other assets, $ 3 and $ 3 of other liabilities and $ 1,094 and $ 2,487 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2016 and 2015 , respectively. For further information, refer to Note 11. |
Segments (Results of Operations
Segments (Results of Operations and Average Assets by Segment - Additional Information) (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements | |
Full-service Banking Centers | 1,191 |
Number of business segments | 4 |
Securities (Other Than Temporar
Securities (Other Than Temporary Impairment Recognized) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Investments, Unrealized Loss Position | ||||
OTTI | [1] | $ (16) | $ (5) | $ (24) |
Available-for-sale securities | Equity securities | ||||
Investments, Unrealized Loss Position | ||||
OTTI | (1) | 0 | 0 | |
Available-for-sale securities | Debt securities | ||||
Investments, Unrealized Loss Position | ||||
OTTI | $ (15) | $ (5) | $ (24) | |
[1] | (a) Included in securiti es gains, net, in the Consolidated Statements of Income . |
Segments (Results of Operati211
Segments (Results of Operations and Average Assets by Segment) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Segment Reporting Information | ||||||
Net interest income | $ 3,615 | $ 3,533 | $ 3,579 | |||
Provision for (benefit from) loan and lease losses | 343 | 396 | 315 | |||
Net interest income after provision for loan and lease losses | 3,272 | 3,137 | 3,264 | |||
Total noninterest income | 2,696 | 3,003 | 2,473 | |||
Total noninterest expense | 3,903 | 3,775 | 3,709 | |||
Income (Loss) Before Income Taxes | 2,065 | 2,365 | 2,028 | |||
Applicable income tax expense (benefit) | 505 | 659 | 545 | |||
Net income (loss) | 1,560 | 1,706 | 1,483 | |||
Less: Net income attributable to noncontrolling interests | (4) | (6) | 2 | |||
Net income (loss) attributable to Bancorp | 1,564 | 1,712 | 1,481 | |||
Dividends on preferred stock | 75 | 75 | 67 | |||
Net income (loss) available to common shareholders | 1,489 | 1,637 | 1,414 | |||
Total goodwill | 2,416 | 2,416 | 2,416 | |||
Total Assets | 142,177 | 141,048 | [1],[2] | 138,670 | [3] | |
Intersegment Elimination | ||||||
Segment Reporting Information | ||||||
Total noninterest income | (131) | [4] | (149) | [5] | (146) | [6] |
Total noninterest expense | (131) | (149) | (146) | |||
Commercial Banking | ||||||
Segment Reporting Information | ||||||
Net interest income | 1,814 | 1,625 | 1,627 | |||
Provision for (benefit from) loan and lease losses | 76 | 298 | 141 | |||
Net interest income after provision for loan and lease losses | 1,738 | 1,327 | 1,486 | |||
Total noninterest income | 907 | [7] | 853 | [8] | 880 | |
Total noninterest expense | 1,426 | 1,369 | 1,281 | |||
Income (Loss) Before Income Taxes | 1,219 | 811 | 1,085 | |||
Applicable income tax expense (benefit) | 224 | 93 | 201 | |||
Net income (loss) | 995 | 718 | 884 | |||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||
Net income (loss) attributable to Bancorp | 995 | 718 | 884 | |||
Dividends on preferred stock | 0 | 0 | 0 | |||
Net income (loss) available to common shareholders | 995 | 718 | 884 | |||
Total goodwill | 613 | 613 | 613 | |||
Total Assets | 58,092 | 58,105 | [2] | 56,400 | [3] | |
Branch Banking | ||||||
Segment Reporting Information | ||||||
Net interest income | 1,669 | 1,555 | 1,573 | |||
Provision for (benefit from) loan and lease losses | 138 | 151 | 171 | |||
Net interest income after provision for loan and lease losses | 1,531 | 1,404 | 1,402 | |||
Total noninterest income | 755 | [9] | 652 | [10] | 726 | [11] |
Total noninterest expense | 1,621 | 1,598 | 1,587 | |||
Income (Loss) Before Income Taxes | 665 | 458 | 541 | |||
Applicable income tax expense (benefit) | 234 | 161 | 191 | |||
Net income (loss) | 431 | 297 | 350 | |||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||
Net income (loss) attributable to Bancorp | 431 | 297 | 350 | |||
Dividends on preferred stock | 0 | 0 | 0 | |||
Net income (loss) available to common shareholders | 431 | 297 | 350 | |||
Total goodwill | 1,655 | 1,655 | 1,655 | |||
Total Assets | 55,940 | 53,609 | [2] | 51,488 | [3] | |
Consumer Lending | ||||||
Segment Reporting Information | ||||||
Net interest income | 248 | 249 | 258 | |||
Provision for (benefit from) loan and lease losses | 44 | 44 | 156 | |||
Net interest income after provision for loan and lease losses | 204 | 205 | 102 | |||
Total noninterest income | 303 | 407 | 350 | |||
Total noninterest expense | 475 | 440 | 558 | |||
Income (Loss) Before Income Taxes | 32 | 172 | (106) | |||
Applicable income tax expense (benefit) | 12 | 61 | (37) | |||
Net income (loss) | 20 | 111 | (69) | |||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||
Net income (loss) attributable to Bancorp | 20 | 111 | (69) | |||
Dividends on preferred stock | 0 | 0 | 0 | |||
Net income (loss) available to common shareholders | 20 | 111 | (69) | |||
Total goodwill | 0 | 0 | 0 | |||
Total Assets | 22,041 | 22,656 | [2] | 22,567 | [3] | |
Wealth and Asset Management | ||||||
Segment Reporting Information | ||||||
Net interest income | 168 | 128 | 121 | |||
Provision for (benefit from) loan and lease losses | 1 | 3 | 1 | |||
Net interest income after provision for loan and lease losses | 167 | 125 | 120 | |||
Total noninterest income | 399 | 418 | 410 | |||
Total noninterest expense | 422 | 455 | 443 | |||
Income (Loss) Before Income Taxes | 144 | 88 | 87 | |||
Applicable income tax expense (benefit) | 51 | 30 | 29 | |||
Net income (loss) | 93 | 58 | 58 | |||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||
Net income (loss) attributable to Bancorp | 93 | 58 | 58 | |||
Dividends on preferred stock | 0 | 0 | 0 | |||
Net income (loss) available to common shareholders | 93 | 58 | 58 | |||
Total goodwill | 148 | 148 | 148 | |||
Total Assets | 9,487 | 9,939 | [2] | 10,445 | [3] | |
General Corporate and Other | ||||||
Segment Reporting Information | ||||||
Net interest income | (284) | (24) | 0 | |||
Provision for (benefit from) loan and lease losses | 84 | (100) | (154) | |||
Net interest income after provision for loan and lease losses | (368) | 76 | 154 | |||
Total noninterest income | 463 | 822 | 253 | |||
Total noninterest expense | 90 | 62 | (14) | |||
Income (Loss) Before Income Taxes | 5 | 836 | 421 | |||
Applicable income tax expense (benefit) | (16) | 314 | 161 | |||
Net income (loss) | 21 | 522 | 260 | |||
Less: Net income attributable to noncontrolling interests | (4) | (6) | 2 | |||
Net income (loss) attributable to Bancorp | 25 | 528 | 258 | |||
Dividends on preferred stock | 75 | 75 | 67 | |||
Net income (loss) available to common shareholders | (50) | 453 | 191 | |||
Total goodwill | 0 | 0 | 0 | |||
Total Assets | $ (3,383) | [12] | $ (3,261) | [2],[13] | $ (2,230) | [3],[14] |
[1] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $34 of debt issuance costs from other assets to long-term debt. For further inform ation refer to Note 1 . | |||||
[2] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2015 Consolidated Balance Sheet was adjusted to reflect the reclassification of $ 34 of debt issuance costs from other assets to long-term debt. For further information, refer to Note 1. | |||||
[3] | Upon adoption of ASU 2015-03 on January 1, 2016, the December 31, 2014 Consolidated Balance Sheet was adjusted t o reflect the reclassification of $ 3 6 of debt issuance costs from other assets to long-term debt. For further information, refer to Note 1. | |||||
[4] | Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Consolidated Statements of Income . | |||||
[5] | Reve nue sharing agreements between wealth and asset management and b ranch b anking are eliminated in the Consolidated Statements of Income. | |||||
[6] | Revenue sharing agreements between wealth and asset management and b ranch b anking are eliminated in the Consolidated Statements of Income. | |||||
[7] | Includes impairment charge s of $ 20 for operating lease equipment. For more information refer to Note 8 and Note 27. | |||||
[8] | Includes impairment charges of $ 36 for operating lease equipment. For more information, refer to Note 8 and Not e 27. | |||||
[9] | Includes impairment charge s of $ 32 for branches and land. For more information refer to Note 7 and Note 27. | |||||
[10] | Includes impairment charges of $ 109 for branches and land. For more information refer to Note 7 and Note 27. | |||||
[11] | Includes impairment charges of $ 20 for branches and land. For more information refer to Note 7 and Note 27. | |||||
[12] | Includes bank premises and equipment of $ 39 classified as held for sale. For more information, refer to Note 7. | |||||
[13] | Includes bank premises and equipment of $ 81 classified as held for sale. For more information, refer to Note 7. | |||||
[14] | Includes bank premises and equipment of $ 26 classified as held for sale. For more information, refer to Note 7 . |
Segments (Results of Operati212
Segments (Results of Operations and Average Assets by Segment) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information | |||
Unamortized debt issuance costs | $ 33 | $ 34 | $ 36 |
Bank premises and equipment held for sale | 39 | 81 | |
Branch Banking | |||
Segment Reporting Information | |||
Impairment of Branches and Land | 32 | 109 | 20 |
Commercial Banking | Operating lease equipment | |||
Segment Reporting Information | |||
Other Asset Impairment Charges | 20 | 36 | |
General Corporate and Other | |||
Segment Reporting Information | |||
Bank premises and equipment held for sale | $ 39 | $ 81 | $ 26 |