Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | 736,725,835 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |||
Assets | |||||
Cash and due from banks | [1] | $ 2,203 | $ 2,392 | ||
Available-for-sale and other securities | [2] | 31,823 | 31,183 | ||
Held-to-matury securities | [3] | 26 | 26 | ||
Trading securities | 842 | 410 | |||
Other short-term investments | 2,163 | 2,754 | |||
Loans held for sale | [4] | 766 | 751 | ||
Portfolio loans and leases | [1],[5] | 91,446 | 92,098 | ||
ALLL | [1] | (1,226) | [6] | (1,253) | [7] |
Portfolio loans and leases, net | 90,220 | 90,845 | |||
Bank premises and equipment | [8] | 2,041 | 2,065 | ||
Operating lease equipment | 719 | 738 | |||
Goodwill | 2,423 | [9] | 2,416 | ||
Intangible assets | 18 | 9 | |||
Servicing rights | [10] | 849 | 744 | ||
Other assets | [1] | 6,974 | 7,844 | ||
Total Assets | 141,067 | [9] | 142,177 | ||
Deposits | |||||
Noninterest-bearing deposits | 34,965 | 35,782 | |||
Interest-bearing deposits | 66,915 | 68,039 | |||
Total deposits | 101,880 | 103,821 | |||
Federal funds purchased | 117 | 132 | |||
Other short-term borrowings | 5,389 | 3,535 | |||
Accrued taxes, interest and expenses | 1,617 | 1,800 | |||
Other liabilities | [1] | 2,162 | 2,269 | ||
Long-term debt | [1] | 13,456 | 14,388 | ||
Total liabilities | 124,621 | 125,945 | |||
Equity | |||||
Common stock | [11] | 2,051 | 2,051 | ||
Preferred stock | [12] | 1,331 | 1,331 | ||
Capital surplus | 2,751 | 2,756 | |||
Retained earnings | 13,862 | 13,441 | |||
Accumulated other comprehensive income | 163 | 59 | |||
Treasury stock | [11] | (3,739) | (3,433) | ||
Total Bancorp Shareholders' Equity | 16,419 | 16,205 | |||
Noncontrolling interests | 27 | 27 | |||
Total Equity | 16,446 | 16,232 | |||
Total Liabilities and Equity | $ 141,067 | $ 142,177 | |||
[1] | Includes $ 57 and $ 85 of cash and due from banks, $ 737 and $ 1,216 of portfolio loans and leases , $ (24) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 1 and $ 3 of other liabilities , and $ 618 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2017 and December 31, 2016 , respectively. For further information refer to Note 10 . | ||||
[2] | Amortized cost of $ 31,492 and $ 31,024 at June 30, 2017 and December 31, 2016 , respectively. | ||||
[3] | Fair value of $ 26 and $ 26 at June 30, 2017 and December 31, 2016 , respectively. | ||||
[4] | Includes $ 674 and $ 686 of residential mortgage loans held for sale measured at fair value at June 30, 2017 and December 31, 2016 , respectively. | ||||
[5] | Includes $ 142 and $ 143 of residential mortgage loans measured at fair value at June 30, 2017 and December 31, 2016 , respectively. | ||||
[6] | Includes $ 2 related to leveraged leases at June 30, 2017 . | ||||
[7] | Includes $ 2 related to leveraged leases at December 31, 2016 . | ||||
[8] | Includes $ 41 and $ 39 of bank premises and equipment held for sale at June 30, 2017 and December 31, 2016 , respectively. For further information refer to Note 7 . | ||||
[9] | A net tax deficiency of $ 5 was reclassified from capital surplus to applicable income tax expense for the three months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effe ctive date of January 1, 2016. | ||||
[10] | Effective January 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its r esidential mortgage servicing rights. The servicing rights were measured at fair value at June 30, 2017 and were measured under the amortization method at December 31, 2016. For further information refer to Note 11 . | ||||
[11] | Common shares: Stated value $2.22 per share; authorized 2,000,000,000 ; outstanding at June 30, 2017 – 738,872,549 (excludes 185,020,032 treasury shares), December 31, 2016 – 750,479,299 (excludes 173,413,282 trea sury shares). | ||||
[12] | 446,000 shares of undesignated no par value preferred stock are authorized and unissued at June 30, 2017 and December 31, 2016 ; 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 June 30, 2017 and December 31, 2016 ; 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 June 30, 2017 and December 31, 2016 ; and fixed-to-floating rate non-cumulative Series J perpetual preferred stock with a $25,000 liquidation preference: 12,000 authorized shares, issued and outstanding at June 30, 2017 and December 31, 2016 . |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |||
Cash and due from banks | [1] | $ 2,203 | $ 2,392 | ||
Portfolio loans and leases | [1],[2] | 91,446 | 92,098 | ||
ALLL | [1] | (1,226) | [3] | (1,253) | [4] |
Other assets | [1] | 6,974 | 7,844 | ||
Other liabilities | [1] | 2,162 | 2,269 | ||
Long-term debt | [1] | 13,456 | 14,388 | ||
Available-for-sale and other securities, amortized cost | 31,492 | 31,024 | |||
Held-to-maturity securities, fair value | 26 | 26 | |||
Residential mortgage loans held for sale measured at FV | 674 | 686 | |||
Bank premises and equipment held for sale | $ 41 | $ 39 | |||
Common stock, stated value | $ 2.22 | $ 2.22 | |||
Common stock, authorized | 2,000,000,000 | 2,000,000,000 | |||
Common stock, outstanding | 738,872,549 | 750,479,299 | |||
Common stock, treasury shares | 185,020,032 | 173,413,282 | |||
Residential Mortgage | |||||
Residential mortgage loans measured at FV | $ 142 | $ 143 | |||
Variable Interest Entities | |||||
Cash and due from banks | 57 | 85 | |||
Portfolio loans and leases | 737 | 1,216 | |||
ALLL | (24) | (26) | |||
Other assets | 7 | 9 | |||
Other liabilities | 1 | 3 | |||
Long-term debt | $ 618 | $ 1,094 | |||
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 $ 57 and $ 85 of cash and due from banks, $ 737 and $ 1,216 of portfolio loans and leases , $ (24) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 1 and $ 3 of other liabilities , and $ 618 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2017 and December 31, 2016 , respectively. For further information refer to Note 10 . | ||||
[2] | Includes $ 142 and $ 143 of residential mortgage loans measured at fair value at June 30, 2017 and December 31, 2016 , respectively. | ||||
[3] | Includes $ 2 related to leveraged leases at June 30, 2017 . | ||||
[4] | Includes $ 2 related to leveraged leases at December 31, 2016 . |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Interest Income | ||||||
Interest and fees on loans and leases | $ 858 | $ 808 | [1] | $ 1,696 | $ 1,613 | |
Interest on securities | 245 | 236 | [1] | 490 | 468 | |
Interest on other short-term investments | 3 | 2 | [1] | 6 | 4 | |
Total interest income | 1,106 | 1,046 | [1] | 2,192 | 2,085 | |
Interest Expense | ||||||
Interest on deposits | 65 | 50 | [1] | 124 | 99 | |
Interest on federal funds purchased | 1 | 1 | [1] | 2 | 1 | |
Interest on other short-term borrowings | 10 | 3 | [1] | 12 | 7 | |
Interest on long-term debt | 91 | 90 | [1] | 182 | 173 | |
Total interest expense | 167 | 144 | [1] | 320 | 280 | |
Net Interest Income | 939 | 902 | [1],[2] | 1,872 | 1,805 | [3] |
Provision for loan and lease losses | 52 | 91 | [1],[2] | 126 | 210 | [3],[4] |
Net Interest Income After Provision for Loan and Lease Losses | 887 | 811 | [1],[2] | 1,746 | 1,595 | [3] |
Noninterest Income | ||||||
Service charges on deposits | 139 | 138 | [1] | 277 | 274 | |
Wealth and asset management revenue | 103 | 101 | [1] | 211 | 203 | |
Corporate banking revenue | 101 | 117 | [1] | 175 | 219 | |
Card and processing revenue | 79 | 82 | [1] | 153 | 161 | |
Mortgage banking net revenue | 55 | 75 | [1] | 108 | 154 | |
Other noninterest income | 85 | 80 | [1] | 160 | 215 | |
Securities gains, net | 0 | 6 | [1] | 1 | 9 | |
Securities gains, net - non-qualifying hedges on mortgage servcing rights | 2 | 0 | 2 | 0 | ||
Total noninterest income | 564 | 599 | [1],[2] | 1,087 | 1,235 | [3] |
Noninterest Expense | ||||||
Salaries, wages and incentives | 397 | 407 | [1] | 808 | 810 | |
Employee benefits | 86 | 85 | [1] | 196 | 185 | |
Net occupancy expense | 70 | 75 | [1] | 148 | 152 | |
Technology and communications | 57 | 60 | [1] | 116 | 116 | |
Card and processing expense | 33 | 37 | [1] | 63 | 72 | |
Equipment expense | 29 | 30 | [1] | 57 | 60 | |
Other noninterest expense | 285 | 289 | [1] | 555 | 573 | |
Total noninterest expense | 957 | 983 | [1],[2] | 1,943 | 1,968 | [3] |
Income (Loss) Before Income Taxes | 494 | 427 | [1],[2] | 890 | 862 | [3] |
Applicable income tax expense | 127 | 103 | [1],[2] | 218 | 212 | [3] |
Net Income (loss) | 367 | 324 | [1],[2],[5] | 672 | 650 | [3],[4],[5] |
Less: Net income attributable to noncontrolling interests | 0 | (4) | [1],[2] | 0 | (4) | [3] |
Net income attributable to Bancorp | 367 | 328 | [1],[2],[6] | 672 | 654 | [3] |
Dividends on preferred stock | 23 | 23 | [1],[2],[6] | 38 | 38 | [3] |
Net income (loss) available to common shareholders | $ 344 | $ 305 | [2],[7] | $ 634 | $ 616 | [3],[6] |
Earnings per share - basic | $ 0.46 | $ 0.4 | [7] | $ 0.84 | $ 0.8 | [6] |
Earnings per share - diluted | $ 0.45 | $ 0.39 | [7] | $ 0.83 | $ 0.79 | [6] |
Average common shares outstanding- basic | 741,400,700 | 759,105,385 | [7] | 744,516,799 | 766,334,781 | [6] |
Average common shares oustanding - diluted | 752,328,298 | 764,811,003 | [7] | 756,545,341 | 771,284,468 | [6] |
Common stock dividends declared per share | $ 0.14 | $ 0.13 | [1] | $ 0.28 | $ 0.26 | |
[1] | Net tax deficiencies of $ 5 and $6 were reclassified from capital surplus to applicable income tax expense and average common shares out standing – diluted were adjusted for t he three and six months ended June 30, 2016, respectively, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016. | |||||
[2] | A net tax deficiency of $ 5 was reclassified from capital surplus to applicable income tax expense for the three months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effe ctive date of January 1, 2016. | |||||
[3] | Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective d ate of January 1, 2016 | |||||
[4] | Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016. | |||||
[5] | Net tax deficiencies of $5 and $6 were reclassified from capital surplus to applicable income tax expense for the three and six months ended June 30, 2016, respectively, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an ef fective date of January 1, 2016. | |||||
[6] | Net tax deficiencies of $6 were reclassified from capital surplus to applicable income tax expense and average common shares outstanding - diluted were adjusted for the six months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016 . | |||||
[7] | A net tax deficiency of $5 was reclassified from capital surplus to applicable income tax expense and average common shares outstanding - diluted were adjusted for the three months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Income Statement | ||
Net tax deficiency reclassified from capital surplus to applicable income tax expense | $ 5 | $ 6 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Unaudited - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | [3] | Jun. 30, 2017 | Jun. 30, 2016 | [3] | |
Statement Of Income And Comprehensive Income | ||||||
Net income (loss) | $ 367 | $ 324 | [1],[2] | $ 672 | $ 650 | [4],[5] |
Other Comprehensive Income (Loss), Net of Tax | ||||||
Unrealized holding gains (losses) on available-for-sale securities arising during period | 93 | 200 | 108 | 652 | ||
Reclassification adjustment for net (gains) losses included in net income | 0 | (6) | 1 | (11) | ||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period | 5 | 17 | 2 | 65 | ||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (4) | (8) | (9) | (17) | ||
Reclassification of amounts to net periodic benefit costs | 1 | 2 | 2 | 3 | ||
Other comprehensive income (loss), Net of Tax | 95 | 205 | 104 | 692 | ||
Comprehensive income | 462 | 529 | 776 | 1,342 | ||
Comprehensive income attributable to noncontrolling interests | 0 | (4) | 0 | (4) | ||
Comprehensive income attributable to Bancorp | $ 462 | $ 533 | $ 776 | $ 1,346 | ||
[1] | A net tax deficiency of $ 5 was reclassified from capital surplus to applicable income tax expense for the three months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effe ctive date of January 1, 2016. | |||||
[2] | Net tax deficiencies of $ 5 and $6 were reclassified from capital surplus to applicable income tax expense and average common shares out standing – diluted were adjusted for t he three and six months ended June 30, 2016, respectively, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016. | |||||
[3] | Net tax deficiencies of $5 and $6 were reclassified from capital surplus to applicable income tax expense for the three and six months ended June 30, 2016, respectively, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an ef fective date of January 1, 2016. | |||||
[4] | Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016. | |||||
[5] | Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective d ate of January 1, 2016 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Unaudited (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Statement Of Income And Comprehensive Income | ||
Net tax deficiency reclassified from capital surplus to applicable income tax expense | $ 5 | $ 6 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Unaudited - 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 Interest | ||||
Beginning Balance at Dec. 31, 2015 | $ 15,870 | $ 2,051 | $ 1,331 | $ 2,666 | [1] | $ 12,358 | [1] | $ 197 | $ (2,764) | $ 15,839 | $ 31 | ||
Net income (loss) | 650 | [2],[3],[4] | 654 | [1] | 654 | (4) | |||||||
Other comprehensive income (loss), Net of Tax | 692 | [3] | 692 | 692 | |||||||||
Cash dividends declared: | |||||||||||||
Common stock at $0.28 in 2017 and $0.26 in 2016 per share | (201) | (201) | [1] | (201) | |||||||||
Preferred stock | [5] | (38) | (38) | [1] | (38) | ||||||||
Shares acquired for treasury | (265) | 31 | [1] | (296) | (265) | ||||||||
Impact of stock transactions under stock compensation plans, net | 45 | 63 | [1] | (18) | 45 | ||||||||
Other | 1 | (1) | [1] | 1 | 0 | 1 | |||||||
Ending Balance at Jun. 30, 2016 | 16,754 | 2,051 | 1,331 | 2,760 | [1] | 12,772 | [1] | 889 | (3,077) | 16,726 | 28 | ||
Beginning Balance at Dec. 31, 2016 | 16,232 | 2,051 | 1,331 | 2,756 | 13,441 | 59 | (3,433) | 16,205 | 27 | ||||
Net income (loss) | 672 | 672 | 672 | ||||||||||
Other comprehensive income (loss), Net of Tax | 104 | 104 | 104 | ||||||||||
Cash dividends declared: | |||||||||||||
Common stock at $0.28 in 2017 and $0.26 in 2016 per share | (210) | (210) | (210) | ||||||||||
Preferred stock | [5] | (38) | (38) | (38) | |||||||||
Shares acquired for treasury | (342) | (26) | (316) | (342) | |||||||||
Impact of stock transactions under stock compensation plans, net | 29 | 21 | 8 | 29 | |||||||||
Other | (1) | (3) | 2 | (1) | |||||||||
Ending Balance at Jun. 30, 2017 | $ 16,446 | $ 2,051 | $ 1,331 | $ 2,751 | $ 13,862 | $ 163 | $ (3,739) | $ 16,419 | $ 27 | ||||
[1] | Net tax deficiencies of $6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 20 16, with an effective date of January 1, 2016. | ||||||||||||
[2] | Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016. | ||||||||||||
[3] | Net tax deficiencies of $5 and $6 were reclassified from capital surplus to applicable income tax expense for the three and six months ended June 30, 2016, respectively, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an ef fective date of January 1, 2016. | ||||||||||||
[4] | Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective d ate of January 1, 2016 | ||||||||||||
[5] | For both the six months ended June 30, 2017 and 2016 , dividends were $ 637 .50 per preferred share for Per petual Preferred Stock, Series H; $ 828.12 per preferred share for Perpetual Preferred Stock, Series I; and $ 612.50 per preferred share for Perpetual Preferred Stock, Series J. |
CONDENSED CONSOLIDATED STATEME9
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Unaudited (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Common stock, per share | $ 0.28 | $ 0.26 |
Net tax deficiency reclassified from capital surplus to applicable income tax expense | $ 6 | |
Preferred stock Series H | ||
Preferred stock, per share | 637.5 | $ 637.5 |
Preferred stock Series I | ||
Preferred stock, per share | 828.12 | 828.12 |
Preferred stock Series J | ||
Preferred stock, per share | $ 612.5 | $ 612.5 |
CONDENSED CONSOLIDATED STATEM10
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | ||||
Operating Activities | |||||
Net income | $ 672 | $ 650 | [1],[2],[3] | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Provision for (benefit from) loan and lease losses | 126 | 210 | [1],[3] | ||
Depreciation, amortization and accretion | 170 | 228 | [1] | ||
Stock-based compensation expense | 69 | 63 | [1] | ||
Provision for (benefit from) deferred income taxes | (5) | 4 | [1] | ||
Securities gains, net | (1) | (8) | [1] | ||
Securities gains, net - non-qualifying hedges on mortgage servicing rights | (2) | 0 | [1] | ||
MSR Fair Value Adjustment | [4] | 70 | 0 | [1] | |
Provision for MSR impairment | [4] | 0 | 131 | [1] | |
Net gains on sales of loans and fair value adjustments on loans held for sale | (57) | (54) | [1] | ||
Net losses (gains) on disposition and impairment of bank premises and equipment | (2) | 2 | [1] | ||
Gain on sales of certain retail branch operations | 0 | (19) | [1] | ||
Net losses on disposition and impairment of operating lease equipment | (19) | (5) | [1] | ||
Proceeds from sales of loans held for sale | 3,141 | 2,774 | [1] | ||
Loans originated for sale, net of repayments | (3,078) | (3,053) | [1] | ||
Dividends representing return on equity method investments | 18 | 11 | [1] | ||
Net change in: | |||||
Trading securities | (427) | (14) | [1] | ||
Other assets | (38) | 195 | [1] | ||
Accrued taxes, interest and expenses | (245) | (349) | [1] | ||
Other liabilities | 214 | (70) | [1] | ||
Net Cash Provided by (Used in) Operating Activities | 648 | 702 | [1] | ||
Proceeds from sales: | |||||
Available-for-sale securities | 4,633 | 8,886 | [1] | ||
Loans | 92 | 145 | [1] | ||
Bank premises and equipment | 18 | 28 | [1] | ||
Proceeds from repayments / maturities: | |||||
Available-for-sale securities | 1,178 | 1,342 | [1] | ||
Held-to-maturity securities | 0 | 8 | [1] | ||
Purchases: | |||||
Available-for-sale securities | (5,828) | (11,620) | [1] | ||
Bank premises and equipment | (111) | (87) | [1] | ||
MSRs | (109) | 0 | [1] | ||
Proceeds from sale and dividends representing return of equity method investments | 85 | 29 | [1] | ||
Net cash paid on sales of certain retail branch operations | 0 | (219) | [1] | ||
Net cash paid on acquisitions | (12) | 0 | [1] | ||
Net change in: | |||||
Other short-term investments | 591 | 853 | [1] | ||
Loans and leases | 350 | (1,534) | [1] | ||
Operating lease equipment | (43) | (95) | [1] | ||
Net Cash Provided by (Used in) Investing Activities | 844 | (2,264) | [1] | ||
Net change in: | |||||
Deposits | (1,941) | (804) | [1] | ||
Federal funds purchased | (15) | (43) | [1] | ||
Other short-term borrowings | 1,854 | 2,472 | [1] | ||
Dividends paid on common stock | (235) | (202) | [1] | ||
Dividends paid on preferred stock | (38) | (38) | [1] | ||
Proceeds from issuance of long-term debt | 697 | 2,739 | [1] | ||
Repayment of long-term debt | (1,631) | (2,452) | [1] | ||
Repurchase of treasury stock and related forward contract | 342 | 265 | [1] | ||
Other | (30) | (26) | [1] | ||
Net Cash Provided by (Used in) Financing Activities | (1,681) | 1,381 | [1] | ||
Increase (Decrease) in Cash and Due from Banks | (189) | (181) | [1] | ||
Cash and Due from Banks at Beginning of Period | [5] | 2,392 | 2,540 | ||
Cash and Due from Banks at End of Period | $ 2,203 | [5] | $ 2,359 | ||
[1] | Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016. | ||||
[2] | Net tax deficiencies of $5 and $6 were reclassified from capital surplus to applicable income tax expense for the three and six months ended June 30, 2016, respectively, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an ef fective date of January 1, 2016. | ||||
[3] | Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective d ate of January 1, 2016 | ||||
[4] | (a) Included in mortgage banking net revenue in the Condensed Consolidated Statements of Income. | ||||
[5] | Includes $ 57 and $ 85 of cash and due from banks, $ 737 and $ 1,216 of portfolio loans and leases , $ (24) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 1 and $ 3 of other liabilities , and $ 618 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2017 and December 31, 2016 , respectively. For further information refer to Note 10 . |
CONDENSED CONSOLIDATED STATEM11
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Statement of Cash Flows | ||
Net tax deficiency reclassified from capital surplus to applicable income tax expense | $ 5 | $ 6 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation | |
Basis of Presentation | 1 . Basis of Presentation The Condensed 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 wh ich 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 equity method and not consolidated. Those entities in whi ch 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 balances have been eliminated. In the opinion of management, the unaudited Condensed Consoli dated Financial Statements include all adjustments, which consist of normal recurring accruals, necessary to present fairly the results for the periods presented. In accordance with U.S. GAAP and the rules and regulations of the SEC for interim financial i nformation, these statements do not include certain information and footnote disclosures required for complete annual financial statements and it is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the Bancorp’s Annual Report on Form 10-K . The results of operations and comprehensive income for the three and six months ended June 30, 2017 and 2016 and the cash flows and changes in equity for the six months ended June 30, 2017 and 2016 are not nece ssarily indicative of the results to be expected for the full year. Financial inf ormation as of December 31, 2016 has been derived from the Bancorp’s Annual Report on Form 10-K . 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 co uld differ from those estimates . |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2017 | |
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 six months ended June 30: ($ in millions) 2017 2016 Cash Payments: Interest $ 334 280 Income taxes 399 493 Transfers: Portfolio loans to loans held for sale 140 27 Loans held for sale to portfolio loans 7 16 Portfolio loans to OREO 19 17 |
Accounting and Reporting Develo
Accounting and Reporting Developments | 6 Months Ended |
Jun. 30, 2017 | |
Accounting and Reporting Developments | |
Accounting and Reporting Developments | 3 . Accounting and Reporting Developments Standards Adopted in 2017 The Bancorp adopted the following new accounting standards effective January 1, 2017: ASU 2016-05 – Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships In March 2016, the FASB issued ASU 2016-05 which clarifies that a change in counterparty in a derivative contract does not, in and of itself, represent a change in critical terms that would require discontinuation of hedge accounting provided that other hedge accounting criteria continue to be met. The Bancorp adopted the amended guidance prospectively on January 1, 2017. The adoption did not have a material impact on the Condensed Consolidated Finan cial Statements. ASU 2016-06 – Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments In March 2016, the FASB issued ASU 2016-06 which clarifies the requirements for determining when contingent put and call options embedd ed in debt instruments should be bifurcated from the debt instrument and accounted for separately as derivatives. A four-step decision sequence should be followed in determining whether such options are clearly and closely related to the economic character istics and risks of the debt instrument, which determines whether bifurcation is necessary. The Bancorp adopted the amended guidance on January 1, 2017 on a modified retrospective basis. The adoption did not have a material impact on the Condensed Consolid ated Financial Statements. ASU 2016-07 – Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting In March 2016, the FASB issued ASU 2016-07 to eliminate the requirement that when an investmen t qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations and retained earnings retroactively on a step-by-step basis as if t he equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor ’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting, eliminating the requirement to retrospectively apply the equity method of accounting back to the date of the initial investment. The Bancorp adopted the amended guidance prospectively on January 1, 2017. The adoption did not have a material impact on the Condensed Consolidated Financial Statements. ASU 2016-17 – Consolidation (Topic 810): Interests Held Through Related Parties That Are Under Common Control In October 2016, the FASB issued ASU 2016-17 which changes the accounting for the consolidation of VIEs in certain situations involving entities under common control. Specifically, the amendments change how th e indirect interests held through related parties that are under common control should be included in a reporting entity’s evaluation of whether it is a primary beneficiary of a VIE. Under the amended guidance, the reporting entity is only required to incl ude the indirect interests held through related parties that are under common control in a VIE on a proportionate basis. The Bancorp adopted the amended guidance retrospectively on January 1, 2017. The adoption did not have a material impact on the Condens ed Consolidated Financial Statements. Standards Issued but Not Yet Adopted The following accounting standards were issued but not y et adopted by the Bancorp as of June 30, 2017 : ASU 2014-09 – Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued ASU 2014-09 which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most contract revenue recognition guidance, including industry-specific guidance. The core principle of the amended guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exc hange for those goods or services. Subsequent to the issuance of ASU 2014-09, the FASB has issued additional guidance to clarify certain implementation issues, including ASUs 2016-08 (Principal versus Agent Considerations), 2016-10 (Identifying Performance Obligations and Licensing), 2016-12 (Narrow-Scope Improvements and Practical Expedients), and 2016-20 (Technical Corrections and Improvements) in March, April, May and December 2016, respectively. These amendments do not change the core principles in ASU 2014-09 and the effective date and transition requirements are consistent with those in the original ASU. The Bancorp plans to adopt the amended guidance on its required effective date of January 1, 2018, using a modified retrospective approach, with the c umulative effect of initially applying the amendments recognized at the date of initial application. Because the amended guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under o ther U.S. GAAP, the Bancorp’s preliminary analysis suggests that the adoption of this amended guidance is not expected to have a material impact on its Condensed Consolidated Financial Statements, although the Bancorp will also be subject to expanded discl osure requirements upon adoption and will be required to update its revenue recognition policies and procedures. T here are certain areas of the amended guidance for which the Bancorp has not made final conclusions regarding the applicability and the relate d impact, if any. Such areas include credit card interchange fees and related rewards programs and the presentation of certain underwriting expenses incurred by broker-dealers. Accordingly, the results of the Bancorp’s materiality analysis, as well as its final adoption method, may change as these conclusions are reached. ASU 2016-01 – Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01 which revises an entity’s accounting related to 1) the classification and measurement of investments in equity securities, 2) the presentation of certain fair value changes for financial liabilities measured at fair value, and 3) certain disclosure requirements associated with the fair value of financial instruments. The amendments require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus c hanges as a result of an observable price change. The amendments also simplify the impairment assessment of equity investments for which fair value is not readily determinable by requiring an entity to perform a qualitative assessment to identify impairmen t. If qualitative indicators are identified, the entity will be required to measure the investment at fair value. For financial liabilities that an entity has elected to measure at fair value, the amendments require an entity to present separately in other comprehensive income the portion of the change in fair value that results from a change in instrument-specific credit risk. For public business entities, the amendments 1) eliminate the requirement to disclose the method(s) and significant assumptions use d to estimate fair value for financial instruments measured at amortized cost and 2) require, for disclosure purposes, the use of an exit price notion in the determination of the fair value of financial instruments. The Bancorp plans to adopt the amended g uidance on its required effective date of January 1, 2018. Upon adoption, the Bancorp will be required to make a cumulative-effect adjustment to the Condensed Consolidated Balance Sheets as of the beginning of the fiscal year of adoption. However, for equi ty securities without a readily determinable fair value, the guidance will be applied prospectively to all equity investments that exist as of the date of adoption. Early adoption of the amendments is not permitted with the exception of the presentation of certain fair value changes for financial liabilities measured at fair value for which early application is permitted. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Co nsolidated Financial Statemen ts, but does not currently expect the impact of adoption to be material based on the results of its preliminary analysis. ASU 2016-02 – Leases (Topic 842) In February 2016, the FASB issued ASU 2016-02 which establishes a new accounting model for leases. T he amended guidance requires lessees to record lease liabilities on the lessees’ balance sheets along with corresponding right-of-use assets for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the lessee’s statements of income. From a lessor perspective, the accounting model is largely unchanged, except that the amended guidance includes certain targeted improvements to align, where necessary, lessor accounting with the lessee accounting model and the revenue recognition guidance in ASC Topic 606. The amendments also modify disclosure requirements for an entity’s lease arrangements. The amended guidance is effective for the Bancorp o n January 1, 2019, with early adoption permitted. The amendments should be applied to each prior reporting period presented using a modified retrospective approach, although the amended guidance contains certain transition relief provisions that, among oth er things, permit an entity to elect not to reassess the classification of leases which existed or expired as of the date the amendments are effective. The Bancorp is currently in the process of developing an inventory of all leases and accumulating the le ase data necessary to apply the amended guidance. The Bancorp is continuing to evaluate the impact of the amended guidance on its Condensed Consolidated Financial Statements, but the effects of recognizing most operating leases on the Condensed Consolidate d Balance Sheets are expected to be material. The Bancorp expects to recognize right-of-use assets and lease liabilities for substantially all of its operating lease commitments based on the present value of unpaid lease payments as of the date of adoption . ASU 2016-04 – Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products In March 2016, the FASB issued ASU 2016-04 which permits proportional derecognition of the liability for unused funds on certain prepaid stored-value products (known as breakage) to the extent that it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. The amendments do not apply to any prepaid stored-value product s that are attached to a segregated customer deposit account, or products for which unused funds are subject to unclaimed property remittance laws. The amended guidance may be applied retrospectively to all comparable periods presented in the year of adopt ion or applied on a modified retrospective basis by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Bancorp plans to adopt the amended guidance on its required effective date of January 1 , 2018 and is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements. However, the Bancorp’s preliminary analysis suggests that most of its prepaid stored-value products will not be a ffe cted by the amended guidance. ASU 2016-13 – Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13 which establishes a new approach to estimate credit losses on cert ain types of financial instruments. The new approach changes the impairment model for most financial assets, and will require the use of an “expected credit loss” model for financial instruments measured at amortized cost and certain other instruments, inc luding trade and other receivables, loans, debt securities, net investments in leases, and off-balance-sheet credit exposures (such as loan commitments, standby letters of credit, and financial guarantees not accounted for as insurance). This model require s entities to estimate the lifetime expected credit loss on such instruments and record an allowance that represents the portion of the amortized cost basis that the entity does not expect to collect. This allowance is deducted from the financial asset’s a mortized cost basis to present the net amount expected to be collected. The new expected credit loss model will also apply to purchased financial assets with credit deterioration, superseding current accounting guidance for such assets. The amended guidanc e also amends the impairment model for available-for-sale debt securities, requiring entities to determine whether all or a portion of the unrealized loss on such securities is a credit loss, and also eliminating the option for management to consider the l ength of time a security has been in an unrealized loss position as a factor in concluding whether or not a credit loss exists. The amended model states that an entity will recognize an allowance for credit losses on available-for-sale debt securities as a contra account to the amortized cost basis, instead of a direct reduction of the amortized cost basis of the investment, as under current guidance. As a result, entities will recognize improvements to estimated credit losses on available-for-sale debt sec urities immediately in earnings as opposed to in interest income over time. There are also additional disclosure requirements included in this guidance. The amended guidance is effective for the Bancorp on January 1, 2020, with early adoption permitted as early as January 1, 2019. The amended guidance is to be applied on a modified retrospective basis with the cumulative effect of initially applying the amendments recognized in retained earnings at the date of initial application. However, certain provision s of the guidance are only required to be applied on a prospective basis. While the Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements, it currently expects the ALLL to in crease upon adoption given that the allowance will be required to cover the full remaining expected life of the portfolio upon adoption, rather than the incurred loss model under current U.S. GAAP. The extent of this increase is still being evaluated and w ill depend on economic conditions and the composition of the Bancorp’s loan and lease portfolio at the time of adoption. ASU 2016-15 – Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15 to clarify the classification of certain cash receipts and payments within an entity’s statement of cash flows. These items include debt prepayment or extinguishment costs, settlement of zero-coupon debt instruments, contingent considera tion payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of BOLI policies, distributions received from equity method investees, and beneficial interests in securitization transactions. The amended guidance also specifies how to address classification of cash receipts and payments that have aspects of more than one class of cash flows. The amended guidance is effective for the Bancorp on January 1, 2018, with early adoption permitted, and is to be applied on a retrospective basis unless it is impractical to do so. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Co nsolidated Financial Statements, but does not currently expect the imp act of adoption to be material based on the results of its preliminary analysis. ASU 2016-16 – Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued ASU 2016-16 which requires an entity to recogni ze the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Current U.S. GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has be en sold to an outside party. The amended guidance is effective for the Bancorp on January 1, 2018, with early adoption permitted, and is applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of th e beginning of the fiscal year in which the guidance is effective. The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Co nsolidated Financial Statements, but does not currently expect the impact of adop tion to be material based on the results of its preliminary analysis. ASU 2017-01 – Business Combinations (Topic 805): Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01 which clarifies the definition of a business in order to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amended guidance provides a screen which states that when substantially all of the fair value of assets acquired (or disposed) is concentrated in a single asset or group of similar assets, then the set of assets and activities would not be considered a business. The amended guidance is effective for the Bancorp on January 1, 2018, and i s to be applied prospectively. Upon adoption, the Bancorp will evaluate future transactions to determine if they should be accounted for as acquisitions (or disposals) of assets or businesses based on the amended guidance. ASU 2017-04 – Intangibles—Good will and Other (Topic 350): Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04 which simplifies the test for goodwill impairment by removing the second step, which measures the amount of impairment loss, if any. Inste ad, the amended guidance states that an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, except that the loss recognized should not exceed the total amount of goodwill allocat ed to that reporting unit. This would apply to all reporting units, including those with zero or negative carrying amounts of net assets. The amended guidance is effective for the Bancorp on January 1, 2020, with early adoption permitted, and is to be appl ied prospectively to all goodwill impairment tests performed after the adoption date. ASU 2017-05 – Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Acc ounting for Partial Sales of Nonfinancial Assets In February 2017, the FASB issued ASU 2017-05 which clarifies the scope of Subtopic 610-20 and defines the term “in substance nonfinancial asset.” The amendments require that an entity should initially identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counterparty and derecognize each asset when a counterparty obtains control of it. The amendments provide specific guidance on accounting for partial sales of nonfin ancial assets, which require an entity to derecognize a distinct nonfinancial asset or in substance nonfinancial asset in a partial sale transaction when it 1) does not have (or ceases to have) a controlling financial interest in the legal entity that hold s the asset and 2) transfers control of the asset. Once an entity transfers control of a distinct nonfinancial asset or distinct in substance nonfinancial asset, it is required to measure any noncontrolling interest it receives (or retains) at fair value. The amended guidance is effective for the Bancorp on January 1, 2018, concurrent with the adoption of ASU 2014-09. It is to be applied using either a retrospective or modified retrospective approach, consistent with the transition method for ASU 2014-09. T he Bancorp is currently in the process of evaluating the impact of the a mended guidance on its Condensed Con solidated Financial Statements, but does not currently expect the impact of adoption to be material based on the results of its preliminary analysis . ASU 2017-08 Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASU 2017-08 which shortens the amortization period for certain callable debt securiti es held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amended guidance is effective for the Bancorp on January 1, 2019 , with early adoption permitted, and is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period o f adoption. The Bancorp shall provide a disclosure regarding the change in accounting principle . The Bancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements . ASU 2017-09 Compe nsation—Stock Compensation (Topic 718): Scope of Modification Accounting In May 2017, the FASB issued ASU 2017-09 which provides guidance about which changes to the terms or conditions of a share-based payment award require the application of modification accounting in Topic 718. The amendments specify that an entity should account for the effects of such changes as a modification unless the fair value, vesting conditions and classification (as an equity or liability) of the awards are all unaffected by the change. The amended guidance is effective for the Bancorp on January 1, 2018, and is to be applied prospectively to awards modified on or after the adoption date, with early adoption permitted. Upon adoption, the Bancorp will evaluate future changes in aw ard terms to determine if they should be accounted for as modifications based on the amended guidance. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2017 | |
Securities | |
Securities | 4 . Investment Securities The following tables provide the amortized cost, unrealized gains and losses and fair value for the major categories of the available-for-sale and other and held-to-maturity investment securities portfolios as of: Amortized Unrealized Unrealized Fair June 30, 2017 ($ in millions) Cost Gains Losses Value Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 69 - - 69 Obligations of states and political subdivisions securities 43 2 - 45 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 16,009 223 (55) 16,177 Agency commercial mortgage-backed securities 9,165 135 (38) 9,262 Non-agency commercial mortgage-backed securities 3,315 55 (6) 3,364 Asset-backed securities and other debt securities 2,192 35 (21) 2,206 Equity securities (b) 699 2 (1) 700 Total available-for-sale and other securities $ 31,492 452 (121) 31,823 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 24 - - 24 Asset-backed securities and other debt securities 2 - - 2 Total held-to-maturity securities $ 26 - - 26 Includes interest-only mortgage-backed securities of $ 39 as of June 30, 2017 , recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income. Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 360 and $ 2 , respectively, at June 30, 2017 , that are carried at cost, and certain mutual fund and equity security holdings. Amortized Unrealized Unrealized Fair December 31, 2016 ($ in millions) Cost Gains Losses Value Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 547 2 - 549 Obligations of states and political subdivisions securities 44 1 - 45 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 15,525 178 (95) 15,608 Agency commercial mortgage-backed securities 9,029 87 (61) 9,055 Non-agency commercial mortgage-backed securities 3,076 51 (15) 3,112 Asset-backed securities and other debt securities 2,106 28 (18) 2,116 Equity securities (b) 697 3 (2) 698 Total available-for-sale and other securities $ 31,024 350 (191) 31,183 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 24 - - 24 Asset-backed securities and other debt securities 2 - - 2 Total held-to-maturity securities $ 26 - - 26 Includes interest-only mortgage-backed securities of $ 60 as of December 31, 2016 , recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed 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 , 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 three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Realized gains $ 21 15 30 29 Realized losses (7) (4) (8) (8) OTTI (14) (3) (24) (5) Net realized (losses) gains (a) $ - 8 (2) 16 (a) Excludes n et losses on interest-only mortgage- backed securities of $ 2 and $ 1 for the three and six months ended June 30, 2017 , respectively, and $ 3 and $ 8 for the three and six months ended June 30, 2016 , respectively. The following table provides a summary of OTTI by security type: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Available-for-sale and other debt securities $ (14) (3) (24) (4) Available-for-sale equity securities - - - (1) Total OTTI (a) $ (14) (3) (24) (5) (a) Included in securities gains, net in the Condensed Consolidated Statements of Income. Trading securities were $842 million as of June 30, 2017 compared to $410 million at December 31, 2016. The following table presents total gains and losses that were recognized in income from trading securities: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Realized gains (a) $ 2 4 5 5 Realized losses (b) (2) (2) (4) (6) Net unrealized gains (c) 4 1 5 1 Total trading securities gains $ 4 3 6 - Includes realized gains of $ 2 and $ 4 for the three and six months ended June 30, 2017 , respectively, and $ 4 and $ 5 for the three and six months ended June 30, 2016 , respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. Includes realized losses of $ 2 and $ 4 for the three and six months ended June 30, 2017 , respectively, and $ 2 and $ 6 for the three and six months ended June 30, 2016 , respec tively, recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. Include s an immaterial amount of net unrealized losses during the three months ended June 30, 2017 and an immaterial am ount of net unrealized gains during the six months ended June 30, 2017 and both the three and six months ended June 30, 2016 , recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. At June 30, 2017 and December 31, 2016 , securities with a fair value of $ 7.8 billion and $ 10.1 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 June 30, 2017 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 $ 144 146 6 6 1-5 years 7,205 7,276 9 9 5-10 years 20,787 21,023 9 9 Over 10 years 2,657 2,678 2 2 Equity securities 699 700 - - Total $ 31,492 31,823 26 26 (a) Actual maturities may differ from contractual 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: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized ($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses June 30, 2017 Agency residential mortgage-backed securities $ 5,047 (48) 152 (7) 5,199 (55) Agency commercial mortgage-backed securities 2,263 (38) - - 2,263 (38) Non-agency commercial mortgage-backed securities 710 (6) - - 710 (6) Asset-backed securities and other debt securities 327 (5) 373 (16) 700 (21) Equity securities - - 37 (1) 37 (1) Total $ 8,347 (97) 562 (24) 8,909 (121) December 31, 2016 U.S. Treasury and federal agencies $ 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) At both June 30, 2017 and December 31, 2016 , an immaterial amount of unrealized losses in the available-for-sale and other securities portfolio were represented by non-rated securities. |
Loans and Leases
Loans and Leases | 6 Months Ended |
Jun. 30, 2017 | |
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 commerc ial 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 in herent in the portfolio. 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: June 30, December 31, ($ in millions) 2017 2016 Loans held for sale: Commercial and industrial loans $ 9 60 Commercial mortgage loans 8 5 Residential mortgage loans 749 686 Total loans held for sale $ 766 751 Portfolio loans and leases: Commercial and industrial loans $ 40,914 41,676 Commercial mortgage loans 6,868 6,899 Commercial construction loans 4,366 3,903 Commercial leases 4,157 3,974 Total commercial loans and leases $ 56,305 56,452 Residential mortgage loans $ 15,460 15,051 Home equity 7,301 7,695 Automobile loans 9,318 9,983 Credit card 2,117 2,237 Other consumer loans and leases 945 680 Total consumer loans and leases $ 35,141 35,646 Total portfolio loans and leases $ 91,446 92,098 Total portfolio loans and leases are recorded net of unearned income, which totaled $ 497 million as of June 30, 2017 and $ 503 million as of December 31, 2016 . Additionally, portfolio loans and leases are recorded net of unamortized premiums and discounts , deferred direct loan origination fees and costs and fair value adjustments (associated with acquired loans or loans designated a s fair value upon origination) which totaled a net premium of $ 267 million and $ 240 million as of June 30, 2017 and De cember 31, 2016 , respectively . The Bancorp’s FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $ 1 3.5 billion and $ 13.1 billion at June 30, 2017 and December 31, 2016 , respectively, pledged at the FHLB, and loans of $ 39.9 billion and $ 40.0 billion at June 30, 2017 and December 31, 2016 , respectively, pledged at the FRB. The following table presents a summary of the total loans and leases owned by the Bancorp as of: 90 Days Past Due Carrying Value and Still Accruing June 30, December 31, June 30, December 31, ($ in millions) 2017 2016 2017 2016 Commercial and industrial loans $ 40,923 41,736 3 4 Commercial mortgage loans 6,876 6,904 - - Commercial construction loans 4,366 3,903 - - Commercial leases 4,157 3,974 - - Residential mortgage loans 16,209 15,737 45 49 Home equity 7,301 7,695 - - Automobile loans 9,318 9,983 7 9 Credit card 2,117 2,237 20 22 Other consumer loans and leases 945 680 - - Total loans and leases $ 92,212 92,849 75 84 Less: Loans held for sale 766 751 Total portfolio loans and leases $ 91,446 92,098 The following table presents a summary of net charge-offs (recoveries): For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Commercial and industrial loans $ 18 39 52 86 Commercial mortgage loans 5 6 11 13 Commercial construction loans - - - (1) Commercial leases 1 1 2 3 Residential mortgage loans 2 2 7 5 Home equity 5 6 11 13 Automobile loans 6 8 18 16 Credit card 22 21 43 41 Other consumer loans and leases 5 4 9 7 Total net charge-offs $ 64 87 153 183 |
Credit Quality and the Allowanc
Credit Quality and the Allowance for Loan and Lease Losses | 6 Months Ended |
Jun. 30, 2017 | |
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 Allowance 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: Residential For the three months ended June 30, 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 826 96 204 112 1,238 Losses charged-off (41) (4) (50) - (95) Recoveries of losses previously charged-off 17 2 12 - 31 Provision for (benefit from) loan and lease losses 15 (1) 40 (2) 52 Balance, end of period $ 817 93 206 110 1,226 Residential For the three months ended June 30, 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 867 98 214 116 1,295 Losses charged-off (51) (5) (49) - (105) Recoveries of losses previously charged-off 5 3 10 - 18 Provision for loan and lease losses 52 2 36 1 91 Balance, end of period $ 873 98 211 117 1,299 Residential For the six months ended June 30, 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 831 96 214 112 1,253 Losses charged-off (86) (10) (106) - (202) Recoveries of losses previously charged-off 21 3 25 - 49 Provision for (benefit from) loan and lease losses 51 4 73 (2) 126 Balance, end of period $ 817 93 206 110 1,226 Residential For the six months ended June 30, 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 840 100 217 115 1,272 Losses charged-off (112) (10) (100) - (222) Recoveries of losses previously charged-off 11 5 23 - 39 Provision for loan and lease losses 134 3 71 2 210 Balance, end of period $ 873 98 211 117 1,299 The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: Residential As of June 30, 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 118 (c) 66 40 - 224 Collectively evaluated for impairment 699 27 166 - 892 Unallocated - - - 110 110 Total ALLL $ 817 93 206 110 1,226 Portfolio loans and leases: (b) Individually evaluated for impairment $ 760 (c) 652 339 - 1,751 Collectively evaluated for impairment 55,545 14,664 19,342 - 89,551 Loans acquired with deteriorated credit quality - 2 - - 2 Total portfolio loans and leases $ 56,305 15,318 19,681 - 91,304 Includes $ 2 related to leveraged leases at June 30, 2017 . Excludes $ 142 of residential mortgage loans measured at fair value and includes $ 7 06 of leveraged leases, net of unearned income at June 30, 2017 . Includes five restructured loans at June 30, 2017 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, 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 118 (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 (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 mortga ge 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 . CREDIT RISK PROFILE Commercial Portfolio Segment For purposes of analyzing historical 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, commercial construction and commercial leas es . To facilitate the monitoring of credit quality within the commerc ial 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, doubt ful and loss. The five categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers that do n ot have identified potential or well defined weaknesses and for which there is a high likelihood of orderly repayment, are updated at least annually based on the size and credit characteristics of the borrower. All other categories are updated on a quarter ly basis during the month preceding the end of the calendar quarter. The Bancorp assigns a special mention rating to loans and leases that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesse s 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 b y the distinct possibility that the Bancorp will sustain some loss if the deficiencies noted are not addressed and corrected. The Bancorp assigns a doubtful rating to loans and leases that have all the attributes of a substandard rating with the added cha racteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and re asonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a pro posed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. Loans and leases classified as loss are considere d uncollectible and are charged- off in the period in which they are de termined to be uncollectible. Because loans and leases in this category are fully 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 June 30, 2017 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 38,281 1,151 1,460 22 40,914 Commercial mortgage owner-occupied loans 3,207 76 102 - 3,385 Commercial mortgage nonowner-occupied loans 3,358 31 94 - 3,483 Commercial construction loans 4,320 46 - - 4,366 Commercial leases 4,041 85 31 - 4,157 Total commercial loans and leases $ 53,207 1,389 1,687 22 56,305 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 Residential Mortgage and Consumer Portfolio Segment s 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 per forming versus nonperforming status of the loans. The delinquency status of all residential mortgage and consumer loans is presented by class i n the age analysis section while the performing versus nonperforming status is presented in the following table . Refer to the nonaccrual loans and leases section of Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2016 for additional delinquency and nonperforming infor mation. 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: June 30, 2017 December 31, 2016 ($ in millions) Performing Nonperforming Performing Nonperforming Residential mortgage loans (a) $ 15,286 32 14,874 34 Home equity 7,231 70 7,622 73 Automobile loans 9,317 1 9,981 2 Credit card 2,091 26 2,209 28 Other consumer loans and leases 945 - 680 - Total residential mortgage and consumer loans and leases (a) $ 34,870 129 35,366 137 (a) Excludes $ 142 and $ 143 of loans measured at fair value at June 30, 2017 and December 31, 2016 , 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 June 30, 2017 ($ in millions) Leases (c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 40,761 48 105 153 40,914 3 Commercial mortgage owner-occupied loans 3,366 4 15 19 3,385 - Commercial mortgage nonowner-occupied loans 3,468 9 6 15 3,483 - Commercial construction loans 4,366 - - - 4,366 - Commercial leases 4,154 - 3 3 4,157 - Residential mortgage loans (a)(b) 15,213 27 78 105 15,318 45 Consumer loans and leases: Home equity 7,183 66 52 118 7,301 - Automobile loans 9,245 64 9 73 9,318 7 Credit card 2,065 28 24 52 2,117 20 Other consumer loans and leases 943 2 - 2 945 - Total portfolio loans and leases (a) $ 90,764 248 292 540 91,304 75 Excludes $ 142 of residential mortgage loans measured at fair value at June 30, 2017 . Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. These advances were $ 280 a s of June 30, 2017 , of which $ 7 9 of these loans were 30-89 days past due and $ 179 were 90 days or more past due. The Bancorp recognized $ 1 and $ 3 of losses during the three and six months ended June 30, 2017 , respectively, due to claim denials and curtailments associated 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, 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 . These advances were $ 312 as of December 31, 2016 , of which $ 110 of these loa ns were 30-89 days past due and $ 202 were 90 days or more past due. The Bancorp recognized $ 1 and $ 3 of losses during the three and six months ended June 30, 2016, respectively, due to claim denials and cu rtailments 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 individual loan or lease is impaired. Other factors may include the geography an d 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-balance homogenous loans or leases that are collectively evaluated for impa irment 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: Unpaid Principal Recorded As of June 30, 2017 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 450 394 90 Commercial mortgage owner-occupied loans (b) 21 15 9 Commercial mortgage nonowner-occupied loans 4 3 1 Restructured residential mortgage loans 462 459 66 Restructured consumer loans and leases: Home equity 188 187 27 Automobile loans 9 9 1 Credit card 47 47 12 Total impaired portfolio loans and leases with a related ALLL $ 1,181 1,114 206 With no related ALLL: Commercial loans and leases: Commercial and industrial loans $ 276 255 - Commercial mortgage owner-occupied loans 30 25 - Commercial mortgage nonowner-occupied loans 39 39 - Commercial leases 3 3 - Restructured residential mortgage loans 213 193 - Restructured consumer loans and leases: Home equity 97 94 - Automobile loans 2 2 - Total impaired portfolio loans and leases with no related ALLL $ 660 611 - Total impaired portfolio loans and leases $ 1,841 1,725 a (a) 206 Includes $ 224 , $ 639 and $ 294 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 244 , $ 13 an d $ 45 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at June 30, 2017 . Excludes five restructured loans at June 30, 2017 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 , respectively . Unpaid Principal Recorded As of December 31, 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 TDR s 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 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 an unpaid principal balance of $ 26 , a recorded investment of $ 26 and an ALLL of $ 18 . The following tables summarize the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class: For the three months ended For the six months ended June 30, 2017 June 30, 2017 Average Interest Average Interest Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 635 1 668 2 Commercial mortgage owner-occupied loans (a) 38 - 42 - Commercial mortgage nonowner-occupied loans 66 - 73 1 Commercial leases 2 - 3 - Restructured residential mortgage loans 654 6 653 12 Restructured consumer loans and leases: Home equity 287 3 293 6 Automobile loans 12 - 13 - Credit card 49 1 51 2 Total average impaired portfolio loans and leases $ 1,743 11 1,796 23 (a) Excludes five restructured loans associated with a consolidated VIE in which the Bancorp has no continu ing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 2 6 and an immaterial amount of interest income recognized for both the three and six months ended June 30, 2017 For the three months ended For the six months ended June 30, 2016 June 30, 2016 Average Interest Average Interest Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 762 2 684 4 Commercial mortgage owner-occupied loans (a) 68 - 69 1 Commercial mortgage nonowner-occupied loans 152 1 160 3 Commercial construction loans 2 - 4 - Commercial leases 6 - 5 - Restructured residential mortgage loans 651 6 644 12 Restructured consumer loans and leases: Home equity 329 3 336 6 Automobile loans 18 - 18 - Credit card 57 1 58 3 Total average impaired loans and leases $ 2,045 13 1,978 29 (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 $ 27 and an immaterial amount of interest income recognized for both the three and six months ended June 30, 2016 . 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: June 30, December 31, ($ in millions) 2017 2016 Commercial loans and leases: Commercial and industrial loans $ 447 478 Commercial mortgage owner-occupied loans (a) 27 32 Commercial mortgage nonowner-occupied loans 8 9 Commercial leases 3 4 Total nonaccrual portfolio commercial loans and leases 485 523 Residential mortgage loans 32 34 Consumer loans and leases: Home equity 70 73 Automobile loans 1 2 Credit card 26 28 Total nonaccrual portfolio consumer loans and leases 97 103 Total nonaccrual portfolio loans and leases (b)(c) $ 614 660 OREO and other repossessed property 48 78 a Total nonperforming portfolio assets (b)(c) $ 662 738 Excludes $ 19 of restructured nonaccrual loans at both June 30, 2017 and 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. Excludes $ 8 and $ 1 3 of nonaccrual loans held for sale at June 30, 2017 and December 31, 2016 , respectively. Includes $ 4 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at both June 30, 2017 and Dec ember 31, 2016 and $ 1 of restructured nonaccrual government insured commercial loans at both June 30, 2017 and December 31, 2016 . 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 $ 2 55 million and $ 260 million as of June 30, 2017 and December 31, 2016 , 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 collect ion 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 of 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 u sed to measure the ALLL for a loan prior to modification, and whether any charge-offs were recorded on the loan before or at the time of modification. Refer to the ALLL section of Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2016 for information on the Bancorp’s ALLL methodology. Upon modification of a loan, the Bancorp measures the related impairment 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 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 in vestment of the loan. Conversely, upon a modification that reduces the stated interest rate on a loan, the Bancorp recognizes an impairment loss as an increase to the ALLL. I f a TDR involves a reduction of the principal balance of the loan or the loan’s a ccrued interest, that amount is charged off to the ALLL . As of June 30, 2017 , the Bancorp had $ 60 million and $ 64 million in line of credit and letter of credit commitments, respectively, compared to $ 82 million and $ 57 million in line of credit and letter of credit commitments as of December 31, 2016 , respectively, to lend additional funds to borrowers whose terms 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 three months ended: Recorded investment Number of loans in loans modified Increase Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon June 30, 2017 ($ in millions) (a) during the period (b) during the period modification modification Commercial loans: Commercial and industrial loans 17 $ 56 1 4 Commercial mortgage owner-occupied loans 2 6 5 - Commercial mortgage nonowner-occupied loans 1 - - - Residential mortgage loans 199 28 1 - Consumer loans: Home equity 44 3 - - Automobile loans 15 - - - Credit card 2,152 10 2 1 Total portfolio loans 2,430 $ 103 9 5 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 Number of loans in loans modified Increase Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon June 30, 2016 ($ in millions) (a) during the period (b) during the period modification modification Commercial loans: Commercial and industrial loans 20 $ 61 11 - Commercial mortgage owner-occupied loans 3 2 - - Commercial mortgage nonowner-occupied loans 2 5 1 - Residential mortgage loans 262 37 2 - Consumer loans: Home equity 62 2 - - Automobile loans 58 1 - - Credit card 2,262 11 2 1 Total portfolio loans 2,669 $ 119 16 1 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 following tables provide a summary of loans and leases, by class, modified in a TDR by the Bancorp during the six months ended: Recorded investment Number of loans in loans modified Increase Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon June 30, 2017 ($ in millions) (a) during the period (b) during the period modification modification Commercial loans and leases: Commercial and industrial loans 50 $ 153 2 6 Commercial mortgage owner-occupied loans 7 8 5 - Commercial mortgage nonowner-occupied loans 2 - - - Residential mortgage loans 402 57 3 - Consumer loans: Home equity 75 5 - - Automobile loans 45 - - - Credit card 3,908 17 3 1 Total portfolio loans and leases 4,489 $ 240 13 7 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 June 30, 2016 ($ in millions) (a) during the period (b) during the period modification modification Commercial loans: Commercial and industrial loans 44 $ 117 9 - Commercial mortgage owner-occupied loans 10 8 (2) - Commercial mortgage nonowner-occupied loans 4 5 1 - Residential mortgage loans 505 73 4 - Consumer loans: Home equity 126 7 - - Automobile loans 136 2 - - Credit card 4,854 23 4 2 Total portfolio loans 5,679 $ 235 16 2 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 te rms 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 loan s 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 consumer 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 as 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 three months ended June 30, 2017 and 2016 and were within twelve months of the restructuring date: Number of Recorded June 30, 2017 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 2 $ 15 Commercial mortgage owner-occupied loans 3 1 Residential mortgage loans 26 3 Consumer loans: Home equity 6 1 Credit card 387 2 Total portfolio loans 424 $ 22 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. Number of Recorded June 30, 2016 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 2 $ 3 Commercial mortgage nonowner-occupied loans 1 - Residential mortgage loans 33 5 Consumer loans: Home equity 2 - Credit card 351 1 Total portfolio loans 389 $ 9 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. The following tables provide a summary of TDRs that subsequently defaulted during the six months ended June 30, 2017 and 2016 and were within twelve months of the restructuring date: Number of Recorded June 30, 2017 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 4 $ 16 Commercial mortgage owner-occupied loans 3 1 Residential mortgage loans 83 12 Consumer loans: Home equity 11 2 Credit card 837 4 Total portfolio loans and leases 938 $ 35 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. Number of Recorded June 30, 2016 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 3 $ 3 Commercial mortgage nonowner-occupied loans 2 - Residential mortgage loans 86 12 Consumer loans: Home equity 8 1 Credit card 774 3 Total portfolio loans 873 $ 19 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. |
Bank Premises and Equipment
Bank Premises and Equipment | 6 Months Ended |
Jun. 30, 2017 | |
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: ($ in millions) June 30, 2017 December 31, 2016 Land and improvements (a) $ 647 663 Buildings (a) 1,574 1,672 Equipment 1,762 1,761 Leasehold improvements 394 398 Construction in progress (a) 120 99 Bank premises and equipment held for sale: Land and improvements 28 29 Buildings 12 9 Equipment 1 1 Accumulated depreciation and amortization (2,497) (2,567) Total bank premises and equipment $ 2,041 2,065 (a ) At June 30, 2017 and December 31, 2016 , land and improvements , buildings and construction in progress included $ 91 and $ 92 , respectively, associated w ith parcels of undeveloped land intended for future branch expansion. The Bancorp monitors changing customer preferences associated with the channels it uses for banking transactions 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 that 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 ful ly committed to building banking centers on certain parcels of land which had previously been held for future branch expansion. 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 $ 2 million and $5 million for the three and six months ended June 30, 2017 , respectively, and $1 million and $3 million for the three and six months ended June 30, 2016 , respectively . The recognized impairment losses were recorded in other noninterest income in the Condensed Consolidated Statements of Income. |
Operating Lease Equipment
Operating Lease Equipment | 6 Months Ended |
Jun. 30, 2017 | |
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. As a result of these recoverability assessments, the Bancorp recognized impairment losses associated with certain operating lease assets of an immaterial amount and $ 31 million for the three and six months ended June 30, 2017 , respectively, and $ 5 million for both the three and six mon ths ended June 30, 2016 . The recognized impairment losses were recorded in corporate banking revenue in the Condensed Consolidated Statements of Income. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Intangible Assets | |
Intangible Assets | 9. Intangible Assets Intangible assets consist of core deposit intangibles, customer lists, non- compete agreements , trade names, and rent intangibles . Intangible assets are amortized on either a straight-line or an accelerated basis over their estimated useful liv es . 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 June 30, 2017 Core deposit intangibles $ 34 (28) 6 Other 25 (13) 12 Total intangible assets $ 59 (41) 18 As of December 31, 2016 Core deposit intangibles $ 34 (27) 7 Other 15 (13) 2 Total intangible assets $ 49 (40) 9 As of June 30, 2017 , all of the Bancorp’s intangible assets were being amortized. Amortization expense recognized on inta ngible assets was immaterial for both the three months ended June 30, 2017 and 2016 and $ 1 million for both the six months ended June 30, 2017 and 2016 . The Bancorp's projection of amort ization expense shown on the following table is based on existing balances as of June 30, 2017 . Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2017 through 2021 is as follows: ($ in millions) Total Remainder of 2017 $ 1 2018 2 2019 2 2020 2 2021 2 |
VIE
VIE | 6 Months Ended |
Jun. 30, 2017 | |
Variable Interest Entities | |
Variable Interest Entities | 10. 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 equity 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 characteristics of a controlling interest. The Bancorp evaluates its inte rest 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 i n circumstances that requires a reconsideration. If the Bancorp is determined to be the primary beneficiary of a VIE, 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 hold s a variable interest in the entity, such variable interests are accounted for under the equity method of accounting or other accounting 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 Condensed Consolidated Balance Sheets as of: Automobile Loan CDC June 30, 2017 ($ in millions) Securitizations Investments Total Assets: Cash and due from banks $ 56 1 57 Commercial mortgage loans - 46 46 Automobile loans 691 - 691 ALLL (4) (20) (24) Other assets 7 - 7 Total assets $ 750 27 777 Liabilities: Other liabilities $ 1 - 1 Long-term debt 618 - 618 Total liabilities $ 619 - 619 Noncontrolling interests $ - 27 27 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 securitizations The Bancorp has previously completed securitization transactions in which the Bancorp transferred certain 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, a nd 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 sign ificant to the VIEs. In addition, 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 Banc orp concluded that it is the primary 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 n otes do not have recourse to the general assets of the Bancorp. The economic performance of the VIEs is most significantly impacted by the performance of the underlying loans. The principal risks to which the VIEs are exposed include credit risk and pr epayment risk. The credit and prepayment 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 nvestments 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 as limited partnerships and LLCs and CDC typically invests as a limited partner/investor member in the form of equity contributions. 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 generated by equity investments. The Bancorp’s subsidi aries 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. Additionally, the investor members do not own substant ive kick-out rights or substantive participating rights over the managing member . The Bancorp has provided an indemnification guarantee to the investor member of these LLCs related to the qualification of tax credits generated by the investor members’ inve stment. Accordingly, the Bancorp concluded that it is the primary beneficiary and, therefore, has consolidated these VIEs. As a result, the investor members’ interests in these VIEs are presented as noncontrolling interests in the Condensed Consolidated Fi nancial Statements. This presentation includes reporting separately the equity attributable to the noncontrolling interests in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Changes in Equity and reporting separately the comprehensive income attributable to the noncontrolling interests in the Condensed Consolidated Statements of Comprehensive Income and the net income attributable to the noncontrolling interests in the Condensed Consolidated Statements of Income. The Banc orp’s maximum exposure related to these indemnifications at June 30, 2017 and December 31, 2016 was $ 3 4 million and $ 31 million , respectively, which is based on an amount required 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 Condensed 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 June 30, 2017 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,495 413 1,495 Private equity investments 116 - 170 Loans provided to VIEs 2,060 - 3,000 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 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 involvement 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 Condensed Consolidated Balance Sheets, and the liabili ties related to the unfunded commitments, which are included in other liabilities in the Condensed 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 the 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 m inimizing a portion of the Bancorp’s risk. At June 30, 2017 and December 31, 2016 , the Bancorp ’s CDC investments included $ 1. 4 billion and $ 1.3 billion, respectively, of investment s in affordable housing tax cred its recognized in other assets i n the Condensed Con solidated Balance Sheets. The unfunded commitments related to these investments were $ 412 million and $ 349 million at June 30, 2017 and December 31, 2016 , respectively. The unfunded commitments as of June 30, 2017 are expected to be funded from 2017 to 2034 . 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 Condensed Consolidated Statements of Income relating to investments in qualified affordable housing investments: Condensed Consolidated For the three months ended June 30, For the six months ended June 30, ($ in millions) Statements of Income Caption 2017 2016 2017 2016 Pre-tax investment and impairment losses (a) Other noninterest expense $ 35 37 72 73 Tax credits and other benefits Applicable income tax expense (56) (56) (112) (111) (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credi ts or other circumstances during both the three and six months ended June 30, 2017 and 2016 . Private equity i nvestments The Bancorp , through Fifth Third Capital Holdings, a wholly-owned indirect subsidiary of the Bancorp, invests as a limite d partner in private equity investment s 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 partner responsible for appointing the fund manager. The Bancorp has no t been appointed fund manager for any of these private equity investment s. The funds finance primarily all of their activities from the partners’ capital contributions and investment returns. T he Bancorp has determined that it is not the primary beneficiar y 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 significant to the funds and lacks the power to direct the activities that mo st 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 partner. 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 investm ents in the private equity investments . As a limited partner, the Bancorp’s maximum exposure to los s 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 Condensed Consolidated Balance Sheets, are included in the previous tables. Also, at June 30, 2017 and December 31, 2016 , the unfunded commitment amounts to the funds were $ 54 million and $ 56 million, respectively. As part of previous commitments, the Bancorp made capital contributions to private equity investments of an immaterial amount and $ 6 mill ion during the three months ended June 30, 2017 and 2016, respectively, and $ 7 million and $ 8 million, during the six months ended June 30, 2017 and 2016, respectively. The Bancorp did not recognize OTTI on its investments in private equity funds during both the three and six months ended June 30, 2017 and 2016. Loans p rovided to VIEs The Bancorp has provided funding to certain unconsolidated VIEs sponsored by third parties. These VIEs are generally 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 a syndication through which the Bancorp is involved. The sponsor/administrator of the entit ies 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 credit 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 outstanding loans to these V IEs are included in commercial loans in Note 5. As of June 30, 2017 and December 31, 2016 , the Bancorp’s unfunded commitments to these entities were $ 9 40 million and $ 937 million, 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 guarante es or principal value guarantees to these VIEs . |
Sales of Receivables and Servic
Sales of Receivables and Servicing Rights | 6 Months Ended |
Jun. 30, 2017 | |
Sales of Receivables and Servicing Rights | |
Sales of Receivables and Servicing Rights | 11. Sales of Receivables and Servicing Rights Residential Mortgage Loan Sales The Bancorp sold fixed and adjustable - rate residential mortgage loans during the three and six months ended June 30, 2017 and 2016 . In those sales, the Bancorp obtained se rvicing 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 when due. The Bancorp receives annual servicing fees based on a percen tage 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 Condensed Consolidated Statements of Income, is as follows: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Residential mortgage loan sales (a) $ 1,518 1,631 3,147 2,745 Origination fees and gains on loan sales 37 54 66 95 Gross mortgage servicing fees 49 50 97 102 Represents the unpaid principal balance at the time of the sale. Servicing Rights Effective January 1, 2017, the Bancorp elected to prospectively adopt the fair value method for all classes of its residential mortgage servicing rights portfolio. Upon this election, all servicing rights are measured at fair value at each reporting date and changes in the fair value of servicing rights are reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income in the period in which the changes occur. T he election of th e fair value method did not re quire a cumulative effect adjustment to retained earnings as there was no difference between the carrying value of the servicing rights, net of valuation allowance, and the fair value. Prior to the election of the fair value method, servicing rights were initially recorded at fair value and subsequently amortized in proportion to, and over the period of, estimated net servicing revenue. Servicing rights were assessed for impairment monthly, based on fair value, with temporary impairment recognized through a valuation allowance. The following tables present changes in the servicing rights related to residential mortgage and automobile loans for the six months ended June 30: ($ in millions) 2017 Balance, beginning of period $ 744 Servicing rights originated - residential mortgage loans 66 Servicing rights acquired - residential mortgage loans 109 Changes in fair value: Due to changes in inputs or assumptions (a) (13) Other changes in fair value (b) (57) Balance, end of period $ 849 Primarily reflects changes in prepayment speed and OAS spread assumptions which are updated based on market interest rates . Pr imarily reflects changes due to collection of contractual cash flows and the passage of time . ($ in millions) 2016 Carrying amount before valuation allowance: Balance, beginning of period $ 1,204 Servicing rights that result from the transfer of residential mortgage loans 28 Amortization (61) Balance, end of period $ 1,171 Valuation allowance for servicing rights: Balance, beginning of period $ (419) Provision for MSR impairment (131) Balance, end of period (550) Carrying amount after valuation allowance $ 621 For the three and six months ended June 30, 2016 , temporary impairment, effected through a change in the MSR valuation allowance, was captured as a component of mortgage banking net revenue in the Condensed Consolidated Statements of Income. Amortization expense recognized on servicing rights for the three and six months ended June 30, 2016 was $ 35 million and $ 61 million , respectively . The Bancorp maintains a non-qualifying hedging strategy to manage a portion of the risk associated wi th changes in the value of the MSR portfolio. This strategy may include the purchase of free-standing derivatives and various available-for-sale and trading securities. The interest income, mark-to-market adjustments and gain or loss from sale activities a ssociated 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 the present value of expected future cash flows . The following table displays the beginning and ending fair value of the servicing rights for the six months ended June 30: ($ in millions) 2017 2016 Fixed-rate residential mortgage loans: Balance, beginning of period $ 722 757 Balance, end of period 830 598 Adjustable-rate residential mortgage loans: Balance, beginning of period 22 27 Balance, end of period 19 23 Fixed-rate automobile loans: Balance, beginning of period - 1 Balance, end of period - - The following table presents activity related to valuations of the MSR portfolio and the impact of the non-qualifying hedging strategy: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Securities gains, net - non-qualifying hedges on MSRs $ 2 - 2 - Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) 16 51 15 149 MSR fair value adjustment (a) (47) - (70) - Provision for MSR impairment (a) - (45) - (131) (a) Included in mortgage banking net revenue in the Condensed Consolidated Statements of Income. 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 three months ended June 30, 2017 and 2016 were as follows: June 30, 2017 June 30, 2016 Rate Weighted-Average Life (in years) Prepayment Speed (annual) OAS Spread (bps) Weighted-Average Life (in years) Prepayment Speed (annual) OAS Spread (bps) Residential mortgage loans: Servicing rights Fixed 7.0 10.3 % 492 6.7 11.9 % 548 Servicing rights Adjustable 3.0 29.8 659 2.9 29.8 683 Based on historical credit experience, expected credit losses for residential mortgage loan servicing rights have been deemed immaterial, as the Bancorp sold the majority of the underlying loans without recourse. At June 30, 2017 and December 31, 2016 , the Bancorp serviced $ 61.8 billion and $ 53.6 billion, respectively , of residential mortgage loans for other i nvestors. 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 June 30, 2017, 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 OAS spread are as follows: Prepayment OAS Speed Assumption Spread Assumption 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 $ 830 5.9 11.5 % $ (37) (71) (161) 530 $ (17) (33) Servicing rights Adjustable 19 3.3 24.8 (1) (2) (5) 773 - (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 variations in the assumptions typically cannot be extrapolated because the relationship of the change in assumption to the c hange 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 vari ation 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 m arket interest rates may result in lower prepayments), which might magnify or counteract these sensitivities. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 12. Derivative Financial Instruments The Bancorp maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce c ertain 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 speculative derivative positions . The Bancorp’s interest rate risk management strategy involves modifying the repricing characteristics 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 include 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-rate 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, and 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 no t the obligation, to purchase or sell a contracted item during a specified period at an agreed upon price. Swaptions are financial instruments granting the owner the right, but not the obligation, to enter into or cancel a swap. Prepayment volatility aris es 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. Principal-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 fo r 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 economically 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 from 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 approvals, limits, counterparty collateral and monitoring procedures. The Bancorp’s derivative assets include certain contractual features in which the Banc orp requires the counterparties to provide collateral in the form of cash and securities to offset changes in the fair value of the derivatives, including changes in the fair value due to credit risk of the counterparty. As of June 30, 2017 and December 31, 2016 , the balance of collateral held by the Bancorp for derivative assets was $ 432 million and $ 444 million, respectively. For derivative contracts cleared through certain central clearing parties who have modified their rules to treat variation margin payments as settlement of the derivative contract, the payments for variation margin of $ 35 million were applied to reduce the respective derivative contracts and were also not included in the total amount of collateral held as of June 30, 2017 . The credit component negatively impacting the fair value of derivative assets associated with customer accommodation contracts as of June 30, 2017 and December 31, 2016 was $ 5 million and $ 6 million, respectively. In measuring the fair value of derivative liabilities, the Bancorp c onsiders 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 pos ts 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 June 30, 2017 and December 31, 2016 , the balance of collateral posted by the Banc orp for derivative liabilities was $ 403 million and $ 399 million, respectively , and $ 87 million of variation margin payments were applied to the respective derivative contracts to reduce the Bancorp’s derivative liabilities as of June 30, 2017 and were also not included in the total amount of collateral posted . Certain of the Bancorp’s derivative liabilities contain credit-risk related contingent features that could result in the requirement to post additional collateral upon the occurrence of specified even ts. As of June 30, 2017 and December 31, 2016 , 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 Condensed Consolidated Financi al 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 im material to the Condensed 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 no t 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-standing derivatives. The fair value of derivative instruments is pr esented 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 the Condensed Consolidated Balance Sheets while derivative instrume nts with a negative fair value are reported in other liabilities in the Condensed Consolidated Balance Sheets. Cash collateral payables and receivables associated with the derivative instruments are not added to or netted against the fair value amounts wit h the exception of certain variation margin payments that are considered legal settlements of the derivative contracts. For derivative contracts cleared through certain central clearing parties who have modified their rules to treat variation margin paymen ts as settlements, the variation margin payments are applied to net the fair value of the respective derivative contracts. The following tables reflect the notional amounts and fair values for all derivative instruments included in the Condensed Consolidated Balance Sheets as of: Fair Value Notional Derivative Derivative June 30, 2017 ($ in millions) Amount Assets Liabilities Derivatives Designated as Qualifying Hedging Instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 2,955 317 5 Total fair value hedges 317 5 Cash flow hedges: Interest rate swaps related to C&I loans 4,475 - 13 Total cash flow hedges - 13 Total derivatives designated as qualifying hedging instruments 317 18 Derivatives Not Designated as Qualifying Hedging Instruments: Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSR portfolio 11,602 59 18 Forward contracts related to residential mortgage loans held for sale 1,749 3 3 Swap associated with the sale of Visa, Inc. Class B Shares 1,563 - 98 Foreign exchange contracts 194 - 5 Total free-standing derivatives - risk management and other business purposes 62 124 Free-standing derivatives - customer accommodation: Interest rate contracts for customers 39,933 179 130 Interest rate lock commitments 769 14 - Commodity contracts 2,382 90 91 TBAs 56 - - Foreign exchange contracts 10,653 118 128 Total free-standing derivatives - customer accommodation 401 349 Total derivatives not designated as qualifying hedging instruments 463 473 Total $ 780 491 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 MSR portfolio 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 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 June 30, 2017 , 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 ineffectiveness on int erest rate swaps hedging fixed-rate funding is reported within interest expense in the Condensed 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 Condensed Consolidated Statements of Income: For the three months For the six months Condensed Consolidated ended June 30, ended June 30, ($ in millions) Statements of Income Caption 2017 2016 2017 2016 Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ 14 39 (6) 122 Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt (15) (41) 5 (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 share 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 June 30, 2017 , all hedges designated as cash flow he dges were assessed 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 Condensed Consolidated Statements of Income. The effective portion of the cumulative gains or losses on cash flow hedges ar e reported within AOCI and are reclassified from AOCI to current period earnings when the forecasted transaction affects earnings. As of June 30, 2017 , the maximum length of time over which the Bancorp is hedging its exposure to the variability in future ca sh flows is 30 months. Reclassified gains and losses on interest rate contra cts related to commercial and industrial loans are recorded within interest income in the Condensed Consolidated Statements of Income. As of June 30, 2017 and December 31, 2016 , $ 3 millio n and $ 10 million, respectively, of net deferred gains, net of tax, on cash flow hedges were recorded in AOCI in the Condensed Consolidated Balance Sheets. As of June 30, 2017 , $ 4 mi llion 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 June 30, 2017 . During both the three and six months ended June 30, 2017 and 2016 , 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 occu r 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 pretax net gains recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Amount of pretax net gains recognized in OCI $ 8 26 3 100 Amount of pretax net gains reclassified from OCI into net income 6 12 14 26 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 because these sw aps 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 certain residenti al mortgage loans held for sale due to changes in interest rates. IRLCs 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 these commitments is economically hedged primarily 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 Condensed Consolidated Statements o f Income. In conjunction with the initial sale of the Bancorp’s 51 % interest in Vantiv Holding, LLC, the Bancorp received a warrant which was accounted for as a free-standing derivative. Refer to Note 21 for further discussion of significant inputs and assumptions previously 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 re maining portion of the warrant. In co njunction 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 rate 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 21 for further discussion of significant inputs and assumptions used in th e valuation of this instrument. The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: For the three months For the six months Condensed Consolidated ended June 30, ended June 30, ($ in millions) Statements of Income Caption 2017 2016 2017 2016 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ 5 (9) (16) (19) Interest rate contracts related to MSR portfolio Mortgage banking net revenue 16 51 15 149 Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income (3) (1) (4) (4) Equity contracts: Stock warrant associated with Vantiv Holding, LLC Other noninterest income - 19 - 66 Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (9) (50) (22) (50) 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 Condensed Consolidated Balance Sheet s 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 commerc ial 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 exposur es 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 o n 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 co rporate banking revenue in the Condensed 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 Banc orp only enters into these 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 June 30, 2017 and December 31, 2016 , the total notional amount of the risk p articipation agreements was $2.6 billion and $2.5 billion, respect ively, and the fair value was a liability of $ 5 million and $ 4 million at June 30, 2017 and December 31, 2016 , respectively, which is included in other liabilities in the Condensed Consolidated Balance Sheets . As of June 30, 2017 , the risk participation agreements had a weighted-average remaining life of 2.9 years. 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 B ancorp monitors the credit risk associated with the 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 as of: June 30, December 31, ($ in millions) 2017 2016 Pass $ 2,582 2,447 Special mention 30 14 Substandard 9 6 Total $ 2,621 2,467 The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: For the three months For the six months Condensed Consolidated ended June 30, ended June 30, ($ in millions) Statements of Income Caption 2017 2016 2017 2016 Interest rate contracts: Interest rate contracts for customers (contract revenue) Corporate banking revenue $ 5 5 9 12 Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense - (1) - (2) Interest rate lock commitments Mortgage banking net revenue 26 42 48 84 Commodity contracts: Commodity contracts for customers (contract revenue) Corporate banking revenue 1 2 2 3 Commodity contracts for customers (credit losses) Other noninterest expense 1 (1) 1 (1) Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense - 2 - 1 Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Corporate banking revenue 9 16 22 32 Foreign exchange contracts for customers (credit losses) Other noninterest expense 2 (2) 2 (2) Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense - 2 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 de rivative liabilities on the Condensed Consolidated Balance Sheets on a gross basis, even when provisions allowing for setoff are in place. However, for derivative contracts cleared through certain central clearing parties who have modified their rules to t reat variation margin payments as settlements, the fair value of the respective derivative contracts are reported net of the variation margin payments. Collateral amounts included in the tables below consist primarily of cash and highly-rated government-b acked securities and as of June 30, 2017 do not i nclude variation margin payments for derivative contracts with legal rights of setoff. The following tables provide a summary of offsetting derivative financial instruments: Gross Amount Gross Amounts Not Offset in the Recognized in the Condensed Consolidated Balance Sheets Condensed Consolidated As of June 30, 2017 ($ in millions) Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 766 (194) (365) 207 Total assets 766 (194) (365) 207 Liabilities: Derivatives 491 (194) (144) 153 Total liabilities $ 491 (194) (144) 153 Amount does not includ e IRLCs because these instruments are not subject to master netting or similar arrangements . 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 Condensed Consolidated Balance Sheets were excluded from this table. Gross Amount Gross Amounts Not Offset in the Recognized in the Condensed Consolidated Balance Sheets Condensed Consolidated As of December 31, 2016 ($ in millions) 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 Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements . 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 Condensed Consolidated Balance Sheets were excluded from this table. |
Other Short Term Borrowings
Other Short Term Borrowings | 6 Months Ended |
Jun. 30, 2017 | |
Other Short Term Borrowings | |
Other Short Term Borrowings | 13 . Other Short-Term Borrowings Borrowings with original maturities of one year or less are classified as short-term. The following table presents a summary of the Bancorp's other short-term borrowings as of: June 30, December 31, ($ in millions) 2017 2016 FHLB advances $ 4,350 2,500 Securities sold under repurchase agreements 656 661 Derivative collateral 381 374 Other 2 - Total other short-term borrowings $ 5,389 3,535 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 Condensed 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: ($ in millions) June 30, 2017 December 31, 2016 Amount Remaining Contractual Maturity Amount Remaining Contractual Maturity Type of collateral: Agency residential mortgage-backed securities $ 656 Overnight 661 Overnight U.S. Treasury and federal agencies securities - Overnight - Overnight Total securities sold under repurchase agreements $ 656 661 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2017 | |
Long-Term Debt | |
Long-Term Debt | 14. Long-Term Debt On June 15, 2017, the Bancorp issued and sold $ 700 million of 2.60% senior fixed-rate notes, with a maturity of five years, due on June 15, 2022. These notes 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 thereon to, but excluding, the redemption date . |
Capital Actions
Capital Actions | 6 Months Ended |
Jun. 30, 2017 | |
Capital Actions | |
Capital Actions | 15. Capital Actions Accelerated Share Repurchase Transactions During the six months ended June 30, 2017 , the Bancorp entered into or settled a ccelerate d share repurchase transactions. As part of these t ransactions, the Bancorp entered into forward contracts in which the final number of shares delivered at settlement was based generally on a discount to the average daily volume weighted - average price of the Bancorp’s common stock during the term of the se repurchase a greement s . The accel erated share repurchase s were treated as two separate transactions , (i) the acquisition of treasury shares on the repurchase date and (ii) a forward contract i ndexed 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 six months ended June 30, 2017: Repurchase Date Amount ($ in millions) Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Settlement Date December 20, 2016 $ 155 4,843,750 1,044,362 5,888,112 February 6, 2017 May 1, 2017 342 11,641,971 2,248,250 13,890,221 July 31, 2017 |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Guarantees | 6 Months Ended |
Jun. 30, 2017 | |
Commitments, Contingent Liabilities and Guarantees | |
Commitments, Contingent Liabilities and Guarantees | 16. 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 prepayment 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 Condensed Consolidated Balance Sheets. The creditworthiness of counterparties for all instruments and agreements is evaluated on a case-by-case basis in accordance with the Bancor p’s credit policies. The Bancorp’s significant commitments, contingent liabilities and guarantees in excess of the amounts recognized in the Condensed Consolidated Balance Sheets are discussed in the following sections. Commitments The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of: June 30, December 31, ($ in millions) 2017 2016 Commitments to extend credit $ 67,242 67,909 Letters of credit 2,358 2,583 Forward contracts related to residential mortgage loans held for sale 1,749 1,823 Noncancelable operating lease obligations 556 576 Purchase obligations 110 57 Capital commitments for private equity investments 58 59 Capital expenditures 42 29 Capital lease obligations 17 19 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 June 30, 2017 and December 31, 2016 , the Bancorp had a reserve for unfunded commitments, i ncluding letters of credit, totaling $ 162 million and $ 161 million, respectively, included in other liabilities in the Condensed Consolidated Balance Sheets. The Bancorp monitors the credit risk associated with co mmitments to extend 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: June 30, December 31, ($ in millions) 2017 2016 Pass $ 66,256 66,802 Special mention 399 338 Substandard 587 753 Doubtful - 16 Total commitments to extend credit $ 67,242 67,909 Letters of c r edit 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 June 30, 2017: ($ in millions) Less than 1 year (a) $ 1,208 1 - 5 years (a) 1,120 Over 5 years 30 Total letters of credit $ 2,358 ( a) Includes $ 11 and $ 3 issued 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 June 30, 2017 and December 31, 2016 , and are considered guarantees in accordance with U.S. GAAP. Approximately 62 % of the total standby letters of credit were collateralized as of both June 30, 2017 and December 31, 2016 . 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, receivables, cash and marketable securities. The reserve related to these standby letters of credit, which was included in the total reserve for unfunded commitments, was $ 3 million at both June 30, 2017 and December 31, 2016 . The Bancorp monitors the credit risk associated w ith 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: June 30, December 31, ($ in millions) 2017 2016 Pass $ 2,030 2,134 Special mention 80 98 Substandard 184 290 Doubtful 64 61 Total letters of credit $ 2,358 2,583 At June 30, 2017 and December 31, 2016 , 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 prop er advance 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 June 30, 2017 and December 31, 2016 , total VRDNs in which the Bancorp was t he remarketing agent or were supported by a Bancorp letter of credit were $ 779 million and $ 929 million, respectively , of which FTS acted as the remarketing agent to issuers on $ 657 million and $ 784 million, respectively. As remarketing agent, FTS is respo nsible for finding pur chasers for VRDNs that are put by investors. The Bancorp issued letters of credit, as a credit enhancement, to $ 483 million and $ 609 million of the VRDNs remarketed by FTS, in addition to $ 122 million and $ 145 million in VRDNs remarke ted by third parties at June 30, 2017 and December 31, 2016 , respectively. These letters of credit are included in the total letters of credit balance provided in the previous table. The Bancorp did not hold any of these VRDNs in its portfolio at June 30, 2017 and held $ 6 million of these VRDNs in its portfolio and classified them as trading securities at December 31, 2016 . Forward contracts related to residential mortgage loans held for sale The Bancorp enters into forward contracts to economically he dge 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 significant commitments table for all periods pres ented. Noncancelable operating lease obligations 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 Bancorp has also entered into a limited number of agreements for work related to banking center construction and to purchase goods or services. Contingent Liabilities Legal claims There are legal claims pending against the Bancorp and its subsidiaries that have arisen in the normal course of business. Refer to Note 17 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 discussed in the following sections. Residential mortgage loans sold with representation and warranty provisions Conforming residential mortgage loans sold to unrelated third parties ar e generally sold with representation and warranty provisions. 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 rep urchase any previously sold loan , indemnify or make whole the investor or 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 rep urchase reserve, refer to Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2016 . As of June 30, 2017 and December 31, 2016 , the Bancorp ma intained reserves related to loans sold with representation and warranty provisions totaling $ 11 million and $ 13 million, respectively, included in other liabilities in the Condensed 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 June 30, 2017 are reasonably possible. The Ban corp 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 $ 15 million in excess of amounts reserved. This estimate was derived by modifying the key assumptions 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 reasonably possible losses, depending on the outcome of various factors, including those previously discussed. For both the three months ended June 30, 2017 and 2016 , the Bancorp paid an immaterial amount in the form of make whole payments and repurchased $ 3 million and $ 2 million, respectively, in outstanding principal of loans to satisfy investor demands. For both the six months ended June 30, 2017 and 2016 , the Bancorp paid an immaterial amount in the form of make whole payments and repurchased $ 5 million and $ 6 million, respectively, in outstanding principal of loans to satisfy investor demands. Total repurchase demand requests during the three months ended June 30, 2017 and 2016 were $ 5 million and $ 4 million, respectively. Total repurchase demand requests during the six months ended June 30, 2017 and 2016 were $ 8 million and $ 10 million, respectively. Total outstanding repu rchase demand inventory was $ 2 million at both June 30, 2017 and December 31, 2016 . The following table summarizes activity in the reserve for representation and warranty provisions: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Balance, beginning of period $ 12 23 13 25 Net reductions to the reserve (1) (2) (2) (3) Losses charged against the reserve - - - (1) Balance, end of period $ 11 21 11 21 The following tables provide a rollforward of unresolved claims by claimant type for the six months ended: GSE Private Label June 30, 2017 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 13 $ 2 - $ - New demands 58 8 - - Loan paydowns/payoffs (1) - - - Resolved demands (54) (8) - - Balance, end of period 16 $ 2 - $ - GSE Private Label June 30, 2016 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 16 $ 4 2 $ - New demands 142 10 3 - Loan paydowns/payoffs (6) (1) - - Resolved demands (134) (9) (4) - Balance, end of period 18 $ 4 1 $ - 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 $ 344 million and $ 374 million at June 30, 2017 and December 31, 2016 , respectively, and the delinquency rates were 2.7 % and 3.2 % at June 30, 2017 and December 3 1, 2016 , respectively. The Bancorp maintained an estimated credit loss reserve on these loans sold with credit recourse of $ 6 million and $ 7 million at June 30, 2017 and December 31, 2016 , respectively, recorded in other liabilities in the Condensed C onsolidated Balance Sheets. To determine the 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, an indirect wholly-owned subsidiary 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 agen t 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 s held by the brokerage clearing agent were $ 14 million and $ 15 million at June 30, 2017 and December 31, 2016 , respectively. 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 June 30, 2017 and December 31, 2016 . 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 oblig ations 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 th e 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 (t he “Class B Shares”) based on the Bancorp’s membership percentage 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 Covere d 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 f or 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 s ale 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 Ba ncorp completed the sale of Visa, Inc. Class B Shares and entered 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 21 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 conversion 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 L itigation significantly exceed current expectations, then additional 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 Cove red Litigation (the “Visa Litigation Exposure”) exceeds the value 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 as sociated with the total return swap. As of the date of the Bancorp’s sale of the Visa Class B Shares and through June 30, 2017 , the Bancorp has concluded that it is not probable that the Visa Litigation Exposure will exceed the Class B value. Based on this determination, upon the sale of Class B Shares, the Bancorp 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 $ 98 million at June 30, 2017 and $ 91 million at December 31, 2016 . Refer to Note 12 and Note 21 for further information. After 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, require d 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 i |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 6 Months Ended |
Jun. 30, 2017 | |
Legal And Regulatory Proceedings | |
Legal and Regulatory Proceedings | 17. 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 (In re: Payment Card Interchange Fee and Merchant Discount Antitrust Litigation) . 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 addition to being a named defendant, the Bancorp is also subject to a possible indemnification obligation 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 for 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 distr ict court for further proceedings. In rejecting the settlement, the appellate court found that counsel for plaintiffs was conflicted and thus could not adequately represent the plaintiff-class members of the separate monetary and injunctive relief settleme nt 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. On March 27, 2017, the Supreme Court of the Uni ted States denied a petition for writ of certiorari seeking to review the Second Circuit’s decision. P ursuant to the terms of the overturned settlement agreement, the Bancorp previously paid $ 46 million into a class settlement escrow account. Because the a ppellate 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, pursuant to the terms of the overturned settlement agreement, 25% of the funds paid into the class settlement escrow account were already returned to the control of the defendants. The remaining 75% of the settlement funds paid by the Bancorp are m aintained in the escrow account. Mor e than 500 of the merchants who requested exclusion from the class filed separate federal lawsuits against Visa, MasterCard and certain other defendants alleging similar antitrust violations. These individual federal lawsuits were transferred to the United States District Court for the Eastern District of New York. While t he Bancorp is only named as a defendant in one of the individual lawsuits, it may have obligations pursuant to indemnificatio n arrangements and/or the judgment or loss sharing agreements noted above. Refer to Note 16 for further information. Klopfenstein v. Fifth Third Bank On August 3, 2012, William Klopfenstein and Adam McKinney filed a lawsuit against Fifth 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-advance program offer ed to eligible cus tomers 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 transferred to the United States District Court for t he 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 Fyock 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 A ccess Cash Advance Litigation. On behalf of a putative class, the plaintiffs seek unspecified monetary and statutory damages, injunctive relief, punitive damages, attorney’s fees, and pr e- and post-judgment interest. On March 30, 2015, the court dismissed all claims alleged in the cons olidated l awsuit except a claim under the TILA. 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 Ban k, 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 fi nance 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 f unds. Nina alleges that it would have made different investment decisions if Fifth Third had disclosed fraud committed by the borrower with the alleged knowl edge 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 other defendants (Fifth Third Bank v. Concord Capital Management, LLC, et al.) al leging fraud and breach of contract. In 2015, the court dismissed Fifth Third’s contract and fraud claims against certain def endants. On March 17, 2017, after hearing motions for summary judgment, the court dismissed, in part, Nina’s fraud claims against F ifth Third, Fifth Third’s claims against the other defendants and Fifth Third’s claim for fraudulent conveyance against Nina. On June 9, 2017, the parties entered into a confidential settlement agreement fully and finally resolving their respective claims in this action within existing accruals for this matter and before accounting for any recovery on related insurance policies. The Court entered an order dismissing the matter with prejudice on June 20, 2017. Helton v. Fifth Third Bank On August 31, 2015, trust beneficiaries filed an action against Fifth Third Bank, as trustee, in the Probate Court for Hamilton County, Ohio (Helen Clarke Helton, et al. v. Fifth Third Bank). The plaintiffs allege breach of the duty to diversify, breach of the duty of impartiality, breach of trust/fiduciary duty, and unjust enrichment, based on Fifth Third’s alleged failure to diversify assets held in two trusts for the plaintiffs’ benefit. The lawsuit seeks unspecified monetary damages, attorney’s fees, re moval of Fifth Third as trustee, and injunctive relief. On January 5, 2016, the Court denied Fifth Third’s motion to dismiss. Trial is currently scheduled for January 16, 2018. On May 11, 2017, another trust beneficiary filed a separate lawsuit against Fif th Third Bank, as trustee, in the Probate Court for Hamilton County, Ohio (F. David Clarke, III v. Fifth Third Bank). Fifth Third moved to consolidate the two cases. Upsher-Smith Laboratories, Inc. v. Fifth Third Bank On February 2, 2012, Upsher-Smith L aboratories, 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 Third improperly implemented foreign exchange 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 under Article 4A-202 of the Uniform Commercial C ode, with losses allegedly tota ling 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 scheduled. The Champions Home Owners Association, In c. v. Jeffrey D. Quammen, et al. On July 12, 2017, Fifth Third Bank and Royce Pulliam, P&P Real Estate, LLC and Global Fitness Holdings, LLC (“Plaintiffs”) entered into a settlement agreement pursuant to which the Plaintiffs paid Fifth Third Bank $2.2 million following a 2017 bench trial and ruling and award in favor of Fifth Third Bank in the Circuit Court of Jessamine County, Kentucky. The Plaintiffs had filed their cross-complaint against Fifth Third Bank on September 12, 2013, alleging that Fifth Third Bank breached a contract to provide commercial funding for Plaintiffs’ national fitness franchise. The Plaintiffs claim ed to have sustained over $50 million in damages from the alleged contract breach. Fifth Third Bank denied that any breach of contr a ct occurred, and further asserted that Plaintiffs executed multiple releases waiving the claims at issue in the litigation. Other Litigation The Bancorp and its subsidiaries are not parties to any other material litigation. However, there are other liti gation 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-gather ing 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 self-regulatory bodies regarding th eir 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 ad verse 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 disc losure 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 its subsidiaries are parties to nume rous 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 resolution are inherently difficult to pred ict. 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 not have started or may not be compl ete 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 potential litigation loss is establ ished 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 appropriate to reflect changes in circumstan ces. 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 of 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 matters where the Bancorp is able to est imate 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 approximately $ 26 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 unfavorab le, 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 for the applicable period. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Taxes | |
Income Taxes | 18. Income Taxes The applicable income tax expense was $ 127 million and $ 103 million for the three months ended June 30, 2017 and 2016 , respectively, and was $ 218 million and $ 212 million for the six months ended June 30, 2017 and 2016 , respectively. The effective tax rates for the three months ended June 30, 2017 and 2016 were 25.9 % and 23.9 %, respectively , and were 24.5 % for both the six m onths ended June 30, 2017 and 2016 . Net tax deficiencies of $5 million and $6 million were reclassified from capital surplus to applicable income tax expense for the three and six months ended June 30, 2016, respectively, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016. The increase in the effective tax rate for the three months ended June 30, 2017 compared to the same period in the prior year was primarily the result of a tax benefi t that was recorded in the second quarter of 2016 related to a change in the estimated de ductibility of a prior expense. While it is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the Bancorp’s uncertain t ax positions could increase or decrease during the next 12 months, the Bancorp believes it is unlikely that its unrecognized tax benefits will change by a material amount during the next 12 months. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | 18. Accumulated Other Comprehensive Income The tables below present the activity of the components of OCI and AOCI for the three months ended: Total OCI Total AOCI Pretax Tax Net Beginning Net Ending June 30, 2017 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during period $ 148 (55) 93 Reclassification adjustment for net gains on available-for-sale securities included in net income - - - Net unrealized gains on available-for-sale securities 148 (55) 93 117 93 210 Unrealized holding gains on cash flow hedge derivatives arising during period 8 (3) 5 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (6) 2 (4) Net unrealized gains on cash flow hedge derivatives 2 (1) 1 2 1 3 Reclassification of amounts to net periodic benefit costs 2 (1) 1 Defined benefit pension plans, net 2 (1) 1 (51) 1 (50) Total $ 152 (57) 95 68 95 163 Total OCI Total AOCI Pretax Tax Net Beginning Net Ending June 30, 2016 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during period $ 309 (109) 200 Reclassification adjustment for net gains on available-for-sale securities included in net income (8) 2 (6) Net unrealized gains on available-for-sale securities 301 (107) 194 685 194 879 Unrealized holding gains on cash flow hedge derivatives arising during period 26 (9) 17 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (12) 4 (8) Net unrealized gains on cash flow hedge derivatives 14 (5) 9 61 9 70 Reclassification of amounts to net periodic benefit costs 3 (1) 2 Defined benefit pension plans, net 3 (1) 2 (62) 2 (60) Total $ 318 (113) 205 684 205 889 The tables below present the activity of the components of OCI and AOCI for the six months ended: Total OCI Total AOCI Pretax Tax Net Beginning Net Ending June 30, 2017 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during period $ 170 (62) 108 Reclassification adjustment for net losses on available-for-sale securities included in net income 2 (1) 1 Net unrealized gains on available-for-sale securities 172 (63) 109 101 109 210 Unrealized holding gains on cash flow hedge derivatives arising during period 3 (1) 2 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (14) 5 (9) Net unrealized gains on cash flow hedge derivatives (11) 4 (7) 10 (7) 3 Reclassification of amounts to net periodic benefit costs 3 (1) 2 Defined benefit pension plans, net 3 (1) 2 (52) 2 (50) Total $ 164 (60) 104 59 104 163 Total OCI Total AOCI Pretax Tax Net Beginning Net Ending June 30, 2016 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during period $ 1,004 (352) 652 Reclassification adjustment for net gains on available-for-sale securities included in net income (16) 5 (11) Net unrealized gains on available-for-sale securities 988 (347) 641 238 641 879 Unrealized holding gains on cash flow hedge derivatives arising during period 100 (35) 65 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (26) 9 (17) Net unrealized gains on cash flow hedge derivatives 74 (26) 48 22 48 70 Reclassification of amounts to net periodic benefit costs 5 (2) 3 Defined benefit pension plans, net 5 (2) 3 (63) 3 (60) Total $ 1,067 (375) 692 197 692 889 The table below presents reclassifications out of AOCI: For the three months For the six months Condensed Consolidated ended June 30, ended June 30, Components of AOCI: ($ in millions) Statements of Income Caption 2017 2016 2017 2016 Net unrealized gains on available-for-sale securities: (b) Net (losses) gains included in net income Securities gains, net $ - 8 (2) 16 Income before income taxes - 8 (2) 16 Applicable income tax expense - (2) 1 (5) Net income - 6 (1) 11 Net unrealized gains on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases 6 12 14 26 Income before income taxes 6 12 14 26 Applicable income tax expense (2) (4) (5) (9) Net income 4 8 9 17 Net periodic benefit costs: (b) Amortization of net actuarial loss Employee benefits expense (a) (2) (3) (3) (5) Income before income taxes (2) (3) (3) (5) Applicable income tax expense 1 1 1 2 Net income (1) (2) (2) (3) Total reclassifications for the period Net income $ 3 12 6 25 This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2016 for further information. Amounts in parentheses indicate reductions to net income . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share | |
Earnings Per Share | 20. Earnings Per Share The following tables provide the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share: 2017 2016 (a) For the three months ended June 30, Average Per Share Average Per Share (in millions, except per share data) Income Shares Amount Income Shares Amount Earnings Per Share: Net income available to common shareholders $ 344 305 Less: Income allocated to participating securities 4 3 Net income allocated to common shareholders $ 340 741 0.46 302 759 0.40 Earnings Per Diluted Share: Net income available to common shareholders $ 344 305 Effect of dilutive securities: Stock-based awards - 11 - 6 Net income available to common shareholders plus assumed conversions 344 305 Less: Income allocated to participating securities 4 3 Net income allocated to common shareholders plus assumed conversions $ 340 752 0.45 302 765 0.39 A net tax deficiency of $5 was reclassified from capital surplus to applicable income tax expense and average common shares outstanding - diluted were adjusted for the three months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016 2017 2016 (a) For the six months ended June 30, Average Per Share Average Per Share (in millions, except per share data) Income Shares Amount Income Shares Amount Earnings Per Share: Net income available to common shareholders $ 634 616 Less: Income allocated to participating securities 7 6 Net income allocated to common shareholders $ 627 745 0.84 610 766 0.80 Earnings Per Diluted Share: Net income available to common shareholders $ 634 616 Effect of dilutive securities: Stock-based awards - 12 - 5 Net income available to common shareholders plus assumed conversions 634 616 Less: Income allocated to participating securities 7 6 Net income allocated to common shareholders plus assumed conversions $ 627 757 0.83 610 771 0.79 Net tax deficiencies of $6 were reclassified from capital surplus to applicable income tax expense and average common shares outstanding - diluted were adjusted for the six months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016 Shares are excluded fr om the computation of earnings per diluted share when their inclusion has an anti-dilutive effect on earnings per share. The diluted ear nings per share computation for the three and six months ended June 30, 2017 excludes 4 million and 5 million, respectively, of SARs and an immaterial amount of stock options because their inclusion would have been anti-dilutive. The diluted earnings per share computation for the three and six months ended June 30, 2016 excludes 22 mi llion and 24 million, respectively, of SARs and an immaterial amount of stock options because their inclusion would have been anti-dilutive. The diluted earnings per share computation for the three and six months ended June 30, 2017 excludes the im pact of the forward contract related to the May 1, 2017 accelerated share repurchase transaction. Based upon the average daily volume weighted-average price of the Bancorp’s common stock during the second quarter of 2017, the counterparty to the transactio n would have been required to deliver additional shares for the settlement of the forward contract as of June 30, 2017 , and thus the impact of the forward contract related to the accelerated share repurchase transaction would have been anti-dilutive to earn ings per share. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Measurements | |
Fair Value Measurements | 21. 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. The fair value hierarchy gi ves 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 based upon the lo west level of input that is significant to the instrument’s fair value measurement. For more information regarding the fair value hierarchy, refer to Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Fo rm 10-K for the year ended December 31, 2016 . 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 as of: Fair Value Measurements Using June 30, 2017 ($ 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 $ 69 - - 69 Obligations of states and political subdivisions securities - 45 - 45 Mortgage-backed securities: Agency residential mortgage-backed securities - 16,177 - 16,177 Agency commercial mortgage-backed securities - 9,262 - 9,262 Non-agency commercial mortgage-backed securities - 3,364 - 3,364 Asset-backed securities and other debt securities - 2,206 - 2,206 Equity securities (a) 89 1 - 90 Available-for-sale and other securities (a) 158 31,055 - 31,213 Trading securities: U.S. Treasury and federal agencies securities - 20 - 20 Obligations of states and political subdivisions securities - 27 - 27 Mortgage-backed securities: Agency residential mortgage-backed securities - 413 - 413 Asset-backed securities and other debt securities - 30 - 30 Equity securities 352 - - 352 Trading securities 352 490 - 842 Residential mortgage loans held for sale - 674 - 674 Residential mortgage loans (b) - - 142 142 MSRs (f) - - 849 849 Derivative assets: Interest rate contracts 3 555 14 572 Foreign exchange contracts - 118 - 118 Commodity contracts 39 51 - 90 Derivative assets (d) 42 724 14 780 Total assets $ 552 32,943 1,005 34,500 Liabilities: Derivative liabilities: Interest rate contracts $ 3 161 5 169 Foreign exchange contracts - 133 - 133 Equity contracts - - 98 98 Commodity contracts 7 84 - 91 Derivative liabilities (e) 10 378 103 491 Short positions (e) 17 5 - 22 Total liabilities $ 27 383 103 513 Excludes FHLB, FRB and DTCC restricted stock holdings totaling $ 248 , $ 360 and $ 2 , respectively, at June 30, 2017 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. During both the three and six months ended June 30, 2017 , no assets or liabilities were transferred between Level 1 and Level 2. Included in other assets in the Condensed Consolidated Balance Sheets. Included in other liabilities in the Condensed Consolidat ed Balance Sheets. Effective January 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. The servicing rights were measured at fair value at June 30, 2017 and were measur ed under the amortization method at December 31, 2016. 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 holdings 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 Condensed Consolidated Balance Sheets. Included in other liabilities in the Condensed Consolidated Balance Sh eet 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 Leve l 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities and exchange-traded equities. If quoted market prices ar e 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 subdivisions securities, age ncy 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 approach based on observa ble 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 mortgage-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 anticipated portfolio composit ion 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 that are valued based on mortga ge-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 mortgage 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 re sidential 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 dev eloped 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 Secondary Marketing depart ment, which reports to the Bancorp’s Head of the Consumer Bank, in conjunction with the Consumer Credit Risk department, which reports to the B ancorp’s Chief Risk Officer, are 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 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 rates and loss severitie s based on underlying collateral values. MSRs Effective January 1, 2017, the Bancorp elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. 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 prepaymen t speed assumptions, OAS and weighted-average lives, resulting in a classification within Level 3 of the valuation hierarchy. Refer to Note 11 for further information on the assumptions used in the valuation of the Bancorp’s MSRs. The Secondary Market ing 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 from 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 addition al confirmation of the reasonableness of key assumptions utilized in the MSR valuation process and the resulting MSR prices. 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. Most of the Bancorp’s derivative contracts are valued using DCF or other mode ls 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 Level 3 of the valuation hierarchy. At June 30 , 2017 and December 31, 2016 , derivatives classified as Level 3, which are valued using models containing unobservable inputs, consisted primarily of a total return swap associated with the Bancorp’s sa le of Visa, Inc. Class B Shares. Level 3 derivatives also include IRLCs, whic h utilize internally generated loan closing rate assumptions as a significant unobservable input in the valuation process. Under the terms of the total return swap, the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Visa, Inc. Class B Shares into Class A Shares. 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 which 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 estimates 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 valu e; conversely, a decrease in the loss estimate or an acceleration of the resolution of the Covered Litigation would result in a decrease in fair value. The Accounting and Treasury departments determined the valuation methodology for the total return 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 June 30, 2017 was $ 14 million. Immed iate decreases in current interest rates of 25 bps and 50 bps would result in increases in the fair value of the IRLCs of approximately $ 6 million and $ 1 2 million, respectively. Immediate increases of current interest rates of 25 bps and 50 bps would resul t in decreases in the fair value of the IRLCs of approximately $ 7 million and $ 1 5 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 approximately $ 1 million and $ 3 million, respectively, 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 $ 3 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 assumptions to the change in fair value may not be linear. The Consumer Line of Business 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 Marketing, in conjunction with a third party v aluation 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 Bancorp previously held a warrant, which was fully exerci sed in 2016, associated with the initial sale of the Bancorp’s 51% interest in Vantiv Holding, LLC to Advent International. T he fair value of the warrant was calculated in conjunction with a third party valuation provider by applying Black-Scholes option-p ricing models using probability weighted scenarios which contained the following inputs: Vantiv, Inc. stock price, strike price per the Warrant Agreement and unobservable inputs, such as expected term and expected 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. The 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 based on changes in historical and implied volatilit ies, expected terms, probability weightings of the related scenarios and other assumptions . 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 Mortgage Derivatives, Equity Total For the three months ended June 30, 2017 ($ in millions) Loans MSRs (d) Net (a) Derivatives Fair Value Balance, beginning of period $ 141 776 11 (97) 831 Total gains (losses) (realized/unrealized): Included in earnings 1 (47) 26 (9) (29) Purchases/originations - 120 - - 120 Settlements (4) - (28) 8 (24) Transfers into Level 3 (b) 4 - - - 4 Balance, end of period $ 142 849 9 (98) 902 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2017 (c) $ 1 (47) 14 (9) (41) Net interest rate derivatives include derivative assets and liabilities of $ 14 and $ 5 , respectively , as of June 30, 2017 . Includes certain residential mortgage loans originated as held for sale that were transferred to held for invest ment. Includes interest income and expense . Effective January 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. The servicing r ights were measured at fair value at June 30 , 2017 and were measured under the amortization method at December 31, 2016 . Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Mortgage Derivatives, Derivatives, Total For the three months ended June 30, 2016 ($ in millions) Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 160 25 253 438 Total gains (losses) (realized/unrealized): Included in earnings 1 43 (31) 13 Settlements (11) (38) 6 (43) Transfers into Level 3 (b) 4 - - 4 Balance, end of period $ 154 30 228 412 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2016 (c) $ 1 33 (31) 3 Net interest rate derivatives include derivative assets and liabilities of $34 and $4 , respectively, as of June 30, 2016 . Net equity derivatives include derivativ e assets and liabilities of $327 and $99 , respectively, as of June 30, 2016 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes i nterest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Mortgage Derivatives, Equity Total For the six months ended June 30, 2017 ($ in millions) Loans MSRs (d) Net (a) Derivatives Fair Value Balance, beginning of period $ 143 744 8 (91) 804 Total gains (losses) (realized/unrealized): Included in earnings 1 (70) 49 (22) (42) Purchases/originations - 175 (1) - 174 Settlements (9) - (47) 15 (41) Transfers into Level 3 (b) 7 - - - 7 Balance, end of period $ 142 849 9 (98) 902 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2017 (c) $ 1 (70) 15 (22) (76) Net interest rate derivatives include derivative assets and liabilities of $ 14 and $ 5 , respectively, as of June 30, 2017 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Incl udes interest income and expense. Effective January 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. The servicing rights were measured at fair value at June 30, 2017 and were measured under the amortizat ion method at December 31, 2016 . Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Mortgage Derivatives, Derivatives, Total For the six months ended June 30, 2016 ($ in millions) Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 167 12 201 380 Total gains (realized/unrealized): Included in earnings 3 84 16 103 Purchases - (1) - (1) Settlements (22) (65) 11 (76) Transfers into Level 3 (b) 6 - - 6 Balance, end of period $ 154 30 228 412 The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2016 (c) $ 3 34 16 53 Net interest rate derivatives include derivative assets and liabilities of $ 34 and $ 4 , respectively, as of June 30, 2016 . Net equity derivatives include derivative assets and liabilities of $ 327 and $ 99 , respectively, as of June 30, 2016 . Includes certain residential mortgage loans originated as held for sale that were transferred to held for invest ment. 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 Condensed Consolidated Statements of Income as follows: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Mortgage banking net revenue $ (21) 44 (21) 86 Corporate banking revenue 1 - 1 1 Other noninterest income (9) (31) (22) 16 Total (losses) gains $ (29) 13 (42) 103 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 June 30, 2017 and 2016 were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Mortgage banking net revenue $ (33) 34 (55) 36 Corporate banking revenue 1 - 1 1 Other noninterest income (9) (31) (22) 16 Total (losses) gains $ (41) 3 (76) 53 The following tables present information as of June 30, 2017 and 2016 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 June 30, 2017 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Residential mortgage loans $ 142 Loss rate model Interest rate risk factor (9.6) - 15.0% 2.9% Credit risk factor 0 - 46.2% 1.0% MSRs 849 Discounted cash flow Prepayment speed 1.2-100% (Fixed) 11.5% (Adjustable) 24.8% OAS spread (bps) 430-1,515 (Fixed) 530 (Adjustable) 773 IRLCs, net 14 Discounted cash flow Loan closing rates 9.6 - 96.8% 73.0% Swap associated with the sale of Visa, Inc. (98) Discounted cash flow Timing of the resolution 6/30/2019 - NM Class B Shares of the Covered Litigation 12/31/2022 As of June 30, 2016 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Residential mortgage loans $ 154 Loss rate model Interest rate risk factor (5.2) - 16.3% 5.0% Credit risk factor 0 - 80.5% 1.1% IRLCs, net 34 Discounted cash flow Loan closing rates 5.3 - 94.0% 75.5% Stock warrant associated with Vantiv 327 Black-Scholes option- Expected term (years) 2.0 - 13.0 5.8 Holding, LLC pricing model Expected volatility (a) 21.6 - 27.4% 24.3% Swap associated with the sale of Visa, Inc. (99) Discounted cash flow Timing of the resolution 12/31/2018 - NM Class B Shares of the Covered Litigation 12/31/2022 (a) Based on historical and implied volatilities of Vantiv, Inc. and comparable companies assuming similar expected terms. Assets and Liabilities Measured at F air 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 June 30, 2017 and 2016 and for which a nonrecurring fair value adjustment was recorded during the three and six months ended June 30, 2017 and 2016, 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 Total Losses For the three months ended June 30, 2017 For the six months ended June 30, 2017 As of June 30, 2017 ($ in millions) Level 1 Level 2 Level 3 Total Commercial loans held for sale $ - - 45 45 (13) (32) Commercial and industrial loans - - 405 405 (32) (58) Commercial mortgage loans - - 26 26 (9) (11) Commercial leases - - 3 3 (1) (2) OREO - - 11 11 (1) (5) Bank premises and equipment - - 16 16 (2) (5) Operating lease equipment - - 56 56 - (20) Total $ - - 562 562 (58) (133) Fair Value Measurements Using Total (Losses) Gains Total (Losses) Gains For the three months For the six months As of June 30, 2016 ($ in millions) Level 1 Level 2 Level 3 Total ended June 30, 2016 ended June 30, 2016 Commercial loans held for sale $ - - 20 20 (5) (7) Commercial and industrial loans - - 426 426 (19) (66) Commercial mortgage loans - - 67 67 (7) (1) Commercial construction loans - - - - - 2 Commercial leases - - 3 3 (1) (1) MSRs (a) - - 621 621 (45) (131) OREO - - 38 38 (6) (9) Bank premises and equipment - - 20 20 2 2 Operating lease equipment - - 38 38 (5) (5) Total $ - - 1,233 1,233 (86) (216) Effective January 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. The servicing rights were measured at fair value at June 30, 2017 and were measured under the amortization method at June 30, 2016 . The following tables present information as of June 30, 2017 and 2016 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis: As of June 30, 2017 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 45 Appraised value Appraised value NM NM Commercial and industrial loans 405 Appraised value Collateral value NM NM Commercial mortgage loans 26 Appraised value Collateral value NM NM Commercial leases 3 Appraised value Collateral value NM NM OREO 11 Appraised value Appraised value NM NM Bank premises and equipment 16 Appraised value Appraised value NM NM Operating lease equipment 56 Appraised value Appraised value NM NM As of June 30, 2016 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 20 Appraised value Appraised Value NM NM Costs to sell NM 10.0% Commercial and industrial loans 426 Appraised value Collateral value NM NM Commercial mortgage loans 67 Appraised value Collateral value NM NM Commercial construction loans - Appraised value Collateral value NM NM Commercial leases 3 Appraised value Collateral value NM NM MSRs 621 Discounted cash flow Prepayment speed 0-100% (Fixed) 15.0% (Adjustable) 26.9% OAS spread (bps) 404-1,515 (Fixed) 648 (Adjustable) 762 OREO 38 Appraised value Appraised value NM NM Bank premises and equipment 20 Appraised value Appraised value NM NM Operating lease equipment 38 Appraised value Appraised value NM NM Commercial loans held for sale During the three and six months e nded June 30, 2017 , the Bancorp transferred $ 57 million and $ 75 million , respectively, of commercial loans from the portfolio to loans held for sale that upon transfer were measured at lower of cost or fair value. During the three and six months e nded June 30, 2016 , the Bancorp transferred $ 20 million and $ 25 million , respectively, o f commercial loans from the portfolio to loans held for sale that upon transfer were measured at lower of cost or fair value . There were $ 13 million and $ 30 million of fair value adjustments for the three and six months ended June 30, 2017 , respectiv ely. There were $ 5 million of fair value adjustments for both the three and six months ended June 30, 2016 . The fair value adjustments were generally based on 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, fair val ue adjustments on existing loans held for sale were immaterial for both the three and six months ended June 30, 2017 and 2016, respectively . The fair value adjustments were also based on appraisals of the underlying collateral . T he Bancorp recognized an immaterial amount of losses on the sale of commercial loans held for sale during both the three months end ed June 30, 2017 and 2016 . The Bancorp recognized $ 2 million in losses on the sale of commercial loans held for sale for both the six mon ths end ed June 30, 2017 and 2016 . The Accounting department determines the procedures for the valuation of commercial loans held for sale using appraised value which may include a comparison to recently executed transactions of similar type loans. A mo nthly review of the portfolio is performed for reasonableness. Quarterly, appraisals approaching a year old are updated and the Real Estate Valuation group, which reports to the Bancorp’s Chief Risk Officer, in conjunction with the Commercial Line of Busin ess , review 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 reviews all loan appraisal va lues, carry values and vintages. The Treasury department, which reports to the Bancorp’s Chief Financial Officer, is responsible for the estimate of fair value adjustments when a discounted future cash flow valuation technique is employed. Commercial lo ans held for investment During the three and six months ended June 30, 2017 and 2016 , the Bancorp recorded nonrecurring impairment adjustments to certain commercial and industrial loans, commercial mortgage loans, commercial construction loans and commercial leases held for investment. Larger commercial loans included within aggregate borrower relationship balances exceeding $ 1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancor p considers the current value 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. 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 therefore these loans were classified within Level 3 of the valuation hierarchy. In cases where the carrying value exceeds the f air value, an impairment loss is recognized. The fair values and recognized impairment losses are reflected in the previous tables. Commercial Credit Risk, which reports to the Bancorp’s Chief Risk Officer, is responsible for preparing and reviewing the fa ir value estimates for commercial loans held for investment. MSRs Effective January 1, 2017, the Bancorp elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. The servicing rights were measured at fair value at June 30, 2017 and under the amortization method at December 31, 2016. Mortgage interest rates decreased during the six months ended June 30, 2016 and the Bancorp recogn ized temporary impairment in certain classes of the MSR portfolio a nd the carrying value was adjusted to the fair value . Refer to the MSRs section of the Assets and Liabilities Measured at Fair Value on a Recurring Basis discussion for additional information. OREO During the three and six months ended June 30, 2017 and 2016 , 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 recorde |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting | |
Business Segments | 22. Business Segments The Bancorp reports on four business segments: Commercial Banking, Branch Banking, Consumer Lending and Wealth and Asset Management. 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 f or other financial institutions. 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. By employing an 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, respectively, 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 segmen t 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 determ ined using the FTP rate curve, which is based on an estimate of Fifth Third’s marginal borrowing cost in the wholesale funding markets. The FTP curve is constructed using the U.S. swap curve, brokered CD pricing and unsecured debt pricing. The Bancorp adj usts the FTP charge and credit rates as dictated by changes in interest rates for various interest-earning assets and interest-bearing liabilities and by the review of behavioral assumptions, such as prepayment rates on interest-earning assets and the esti mated durations for indeterminate-lived deposits. Key assumptions, including the credit rates provided for deposit accounts, are reviewed annually. Credit rates for deposit products and charge rates for loan products may be reset more frequently in respons e to changes in market conditions. The credit rates for several deposit products were reset January 1, 2017 to reflect the current market rates and updated market assumptions. These rates were generally higher than those in place during 2016 , thus ne t interest income for deposit-providing business segments was positively impacted during 2017 . 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 over all market rates increased, the FTP charge increased for asset-generating business segments during 2017 . T he Bancorp ’s methodology for allocating provision for loan and lease losses expense to the business se gments include s charges or benefits associated with changes in criticized commercial loan levels in addition to actual net charge-offs experienced by the loans and leases owned by e ach business segment. Provision for loan and lease losses expense attributable to loan and lease growth and changes in ALLL factors is captured in General Corporate and Other. The financial results of the business segments include allocations for shared services and headquarters expenses. Additionally, the business segments form synergies by t aking advantage of cross-sell opportunities and when funding operations by accessing the capital markets as a collective unit. The following is a d escription of each of the Bancorp’s business segments and the products and services they provide to their re spective client bases . Commercial Banking o ffers credit intermediation, cash management and financial services to large and middle-market businesses and government and professional customers. In addition 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 finance, public finance, commercial leasing and syndicat ed finance. Branch Banking p rovides a full range of deposit and loan and lease products to individuals and small businesses through 1,157 full-service b anking c enters. Branch Banking offers depository and loan products, such as checking an d 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 businesses, 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, retention and servicing of residential mortgage and home equity loans or lines o f credit, sales and securitizations of those loans, po ols 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. Wealth and Asset Management is made up of f our main businesses: FTS, an indirect wholly-owned subsidiary of the Bancorp; ClearAr c Capital, Inc. , an indirect wholly-owned subsidiary of the Bancorp ; Fifth Third Private Bank; and Fifth Third Institutional Services. FTS offers full service retail brokerage services to individual clients and broker dealer services to the institutional m arketplace. 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 advis ory services for institutional clients inclu ding states and municipalities. The following tables present the results of operations and assets by business segment for the three months ended: Wealth General Commercial Branch Consumer and Asset Corporate June 30, 2017 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 415 437 59 37 (9) - 939 Provision for (benefit from) loan and lease losses 22 39 7 (1) (15) - 52 Net interest income after provision for loan and lease losses 393 398 52 38 6 - 887 Total noninterest income 228 189 (b) 62 101 17 (33) (a) 564 Total noninterest expense 345 399 123 110 13 (33) 957 Income (loss) before income taxes 276 188 (9) 29 10 - 494 Applicable income tax expense (benefit) 49 66 (3) 10 5 - 127 Net income (loss) 227 122 (6) 19 5 - 367 Less: Net income attributable to noncontrolling interests - - - - - - - Net income (loss) attributable to Bancorp 227 122 (6) 19 5 - 367 Dividends on preferred stock - - - - 23 - 23 Net income (loss) available to common shareholders $ 227 122 (6) 19 (18) - 344 Total goodwill $ 613 1,655 - 155 - - 2,423 Total assets $ 57,766 57,378 22,442 8,241 (4,760) (c) - 141,067 Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income. Includes impairment charges of $ 2 for branches and land. For more information refer to Note 7 and Note 21. Includes bank premises and equipment of $ 4 1 classified as hel d for sale. For more information refer to Note 7 . Wealth General Commercial Branch Consumer and Asset Corporate June 30, 2016 ($ in millions) Banking Banking Lending Management and Other (e) Eliminations Total (e) Net interest income $ 460 433 62 44 (97) - 902 Provision for loan and lease losses 72 35 9 1 (26) - 91 Net interest income after provision for loan and lease losses 388 398 53 43 (71) - 811 Total noninterest income 236 (c) 214 (b) 80 100 3 (34) (a) 599 Total noninterest expense 355 409 122 108 23 (34) 983 Income (loss) before income taxes 269 203 11 35 (91) - 427 Applicable income tax expense 43 71 4 12 (27) - 103 Net income (loss) 226 132 7 23 (64) - 324 Less: Net income attributable to noncontrolling interests - - - - (4) - (4) Net income (loss) attributable to Bancorp 226 132 7 23 (60) - 328 Dividends on preferred stock - - - - 23 - 23 Net income (loss) available to common shareholders $ 226 132 7 23 (83) - 305 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 60,042 54,220 22,598 8,399 (1,634) (d) - 143,625 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Condensed Consolidated Statements of Income. Includes impairment charges of $ 1 for branches and land. For more information refer to Note 7 and Note 21. Includes impairment charges of $ 5 for operating lease equipment. For more information refer to Note 8 and Note 21 . Includes bank premises and equipment of $52 classified as held for sale. For more informati on refer to Note 7. A net tax deficiency of $ 5 was reclassified from capital surplus to applicable income tax expense for the three months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effe ctive date of January 1, 2016. The following tables present the results of operations and assets by business segment for the six months ended: Wealth General Commercial Branch Consumer and Asset Corporate June 30, 2017 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 839 867 120 75 (29) - 1,872 Provision for loan and lease losses 29 80 22 3 (8) - 126 Net interest income after provision for loan and lease losses 810 787 98 72 (21) - 1,746 Total noninterest income 429 (c) 374 (b) 116 209 26 (67) (a) 1,087 Total noninterest expense 714 801 241 224 30 (67) 1,943 Income (loss) before income taxes 525 360 (27) 57 (25) - 890 Applicable income tax expense (benefit) 88 127 (10) 20 (7) - 218 Net income (loss) 437 233 (17) 37 (18) - 672 Less: Net income attributable to noncontrolling interests - - - - - - - Net income (loss) attributable to Bancorp 437 233 (17) 37 (18) - 672 Dividends on preferred stock - - - - 38 - 38 Net income (loss) available to common shareholders $ 437 233 (17) 37 (56) - 634 Total goodwill $ 613 1,655 - 155 - - 2,423 Total assets $ 57,766 57,378 22,442 8,241 (4,760) (d) - 141,067 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Condensed Consolidated Statements of Income. Includes impairment charges of $ 5 for branches and land. For more information refer to Note 7 and Note 21. Includes impairment charges of $ 31 for operating lease equipment. For more information refer to Note 8 and Note 21. Includes bank premises and equipment of $ 4 1 classified as held for sale. For more information refer to Note 7. Wealth General Commercial Branch Consumer and Asset Corporate June 30, 2016 ($ in millions) Banking Banking Lending Management and Other (e) Eliminations Total (e) Net interest income $ 911 859 122 87 (174) - 1,805 Provision for loan and lease losses 137 69 21 1 (18) - 210 Net interest income after provision for loan and lease losses 774 790 101 86 (156) - 1,595 Total noninterest income 457 (c) 401 (b) 164 202 78 (67) (a) 1,235 Total noninterest expense 716 820 240 215 44 (67) 1,968 Income before income taxes 515 371 25 73 (122) - 862 Applicable income tax expense 77 131 9 25 (30) - 212 Net income 438 240 16 48 (92) - 650 Less: Net income attributable to noncontrolling interests - - - - (4) - (4) Net income attributable to Bancorp 438 240 16 48 (88) - 654 Dividends on preferred stock - - - - 38 - 38 Net income available to common shareholders $ 438 240 16 48 (126) - 616 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 60,042 54,220 22,598 8,399 (1,634) (d) - 143,625 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Condensed Consolidated Statements of Income. Includes impairment charge s of $ 3 for branches and land. For more information refer to Note 7 and Note 21. Includes impairment charges of $ 5 for operating lease equipment. For more information refer to Note 8 and Note 21. Includes bank premises and equipment of $ 52 classified as held for sale. For more information refer to Note 7 . Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective d ate of January 1, 2016 . |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Event | |
Subsequent Event | 23. Subsequent Event On August 7, 2017, Fifth Third Bancorp and Fifth Third Bank entered into a transaction agreement with Vantiv, Inc. and Vantiv Holding, LLC under which Fifth Third Bank has agreed to exercise its right to exchange 19,790,000 of its Class B Units in Vantiv Holding, LLC for 19,790,000 shares of Vantiv, Inc.’s Class A Common Stock and Vantiv, Inc. has agreed to repurchase the newly issued shares of Class A Common Stock upon issue directly from Fifth Third Bank at a price of $64.04 per share, the closing share price of the Class A Common Stock on the New York Stock Exchange on August 4, 2017. The share repurchase is conditioned on Vantiv, Inc. publishing a firm offer to acquire Worldpay Group plc. and is subject to termination, if am ong other things, the firm offer is not made by August 31, 2017. During the third quarter of 2017, the Bancorp expects to recognize a pre-tax gain of approximately $ 1.0 billion related to these transactions. Following the share repurchase, the Bancorp is expected to beneficially own approximately 8.6% of Vantiv Holding, LLC’s equity through its ownership of approximately 1 5.3 million Class B Units of Vantiv Holding , LLC. |
Supplemental Cash Flow Inform35
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 six months ended June 30: ($ in millions) 2017 2016 Cash Payments: Interest $ 334 280 Income taxes 399 493 Transfers: Portfolio loans to loans held for sale 140 27 Loans held for sale to portfolio loans 7 16 Portfolio loans to OREO 19 17 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Securities | |
Available-for-Sale and Other and Held-to-Maturity Securities | The following tables provide the amortized cost, unrealized gains and losses and fair value for the major categories of the available-for-sale and other and held-to-maturity investment securities portfolios as of: Amortized Unrealized Unrealized Fair June 30, 2017 ($ in millions) Cost Gains Losses Value Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 69 - - 69 Obligations of states and political subdivisions securities 43 2 - 45 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 16,009 223 (55) 16,177 Agency commercial mortgage-backed securities 9,165 135 (38) 9,262 Non-agency commercial mortgage-backed securities 3,315 55 (6) 3,364 Asset-backed securities and other debt securities 2,192 35 (21) 2,206 Equity securities (b) 699 2 (1) 700 Total available-for-sale and other securities $ 31,492 452 (121) 31,823 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 24 - - 24 Asset-backed securities and other debt securities 2 - - 2 Total held-to-maturity securities $ 26 - - 26 Includes interest-only mortgage-backed securities of $ 39 as of June 30, 2017 , recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income. Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 360 and $ 2 , respectively, at June 30, 2017 , that are carried at cost, and certain mutual fund and equity security holdings. Amortized Unrealized Unrealized Fair December 31, 2016 ($ in millions) Cost Gains Losses Value Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 547 2 - 549 Obligations of states and political subdivisions securities 44 1 - 45 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 15,525 178 (95) 15,608 Agency commercial mortgage-backed securities 9,029 87 (61) 9,055 Non-agency commercial mortgage-backed securities 3,076 51 (15) 3,112 Asset-backed securities and other debt securities 2,106 28 (18) 2,116 Equity securities (b) 697 3 (2) 698 Total available-for-sale and other securities $ 31,024 350 (191) 31,183 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 24 - - 24 Asset-backed securities and other debt securities 2 - - 2 Total held-to-maturity securities $ 26 - - 26 Includes interest-only mortgage-backed securities of $ 60 as of December 31, 2016 , recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed 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 , 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 three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Realized gains $ 21 15 30 29 Realized losses (7) (4) (8) (8) OTTI (14) (3) (24) (5) Net realized (losses) gains (a) $ - 8 (2) 16 (a) Excludes n et losses on interest-only mortgage- backed securities of $ 2 and $ 1 for the three and six months ended June 30, 2017 , respectively, and $ 3 and $ 8 for the three and six months ended June 30, 2016 , respectively. Trading securities were $842 million as of June 30, 2017 compared to $410 million at December 31, 2016. The following table presents total gains and losses that were recognized in income from trading securities: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Realized gains (a) $ 2 4 5 5 Realized losses (b) (2) (2) (4) (6) Net unrealized gains (c) 4 1 5 1 Total trading securities gains $ 4 3 6 - Includes realized gains of $ 2 and $ 4 for the three and six months ended June 30, 2017 , respectively, and $ 4 and $ 5 for the three and six months ended June 30, 2016 , respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. Includes realized losses of $ 2 and $ 4 for the three and six months ended June 30, 2017 , respectively, and $ 2 and $ 6 for the three and six months ended June 30, 2016 , respec tively, recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. Include s an immaterial amount of net unrealized losses during the three months ended June 30, 2017 and an immaterial am ount of net unrealized gains during the six months ended June 30, 2017 and both the three and six months ended June 30, 2016 , recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. |
Other Than Temporary Impairment Credit Losses Recognized In Earnings | The following table provides a summary of OTTI by security type: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Available-for-sale and other debt securities $ (14) (3) (24) (4) Available-for-sale equity securities - - - (1) Total OTTI (a) $ (14) (3) (24) (5) (a) Included in securities gains, net in the Condensed 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 June 30, 2017 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 $ 144 146 6 6 1-5 years 7,205 7,276 9 9 5-10 years 20,787 21,023 9 9 Over 10 years 2,657 2,678 2 2 Equity securities 699 700 - - Total $ 31,492 31,823 26 26 (a) Actual maturities may differ from contractual 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: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized ($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses June 30, 2017 Agency residential mortgage-backed securities $ 5,047 (48) 152 (7) 5,199 (55) Agency commercial mortgage-backed securities 2,263 (38) - - 2,263 (38) Non-agency commercial mortgage-backed securities 710 (6) - - 710 (6) Asset-backed securities and other debt securities 327 (5) 373 (16) 700 (21) Equity securities - - 37 (1) 37 (1) Total $ 8,347 (97) 562 (24) 8,909 (121) December 31, 2016 U.S. Treasury and federal agencies $ 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) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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: June 30, December 31, ($ in millions) 2017 2016 Loans held for sale: Commercial and industrial loans $ 9 60 Commercial mortgage loans 8 5 Residential mortgage loans 749 686 Total loans held for sale $ 766 751 Portfolio loans and leases: Commercial and industrial loans $ 40,914 41,676 Commercial mortgage loans 6,868 6,899 Commercial construction loans 4,366 3,903 Commercial leases 4,157 3,974 Total commercial loans and leases $ 56,305 56,452 Residential mortgage loans $ 15,460 15,051 Home equity 7,301 7,695 Automobile loans 9,318 9,983 Credit card 2,117 2,237 Other consumer loans and leases 945 680 Total consumer loans and leases $ 35,141 35,646 Total portfolio loans and leases $ 91,446 92,098 |
Total Loans And Leases Owned By The Bancorp | The following table presents a summary of the total loans and leases owned by the Bancorp as of: 90 Days Past Due Carrying Value and Still Accruing June 30, December 31, June 30, December 31, ($ in millions) 2017 2016 2017 2016 Commercial and industrial loans $ 40,923 41,736 3 4 Commercial mortgage loans 6,876 6,904 - - Commercial construction loans 4,366 3,903 - - Commercial leases 4,157 3,974 - - Residential mortgage loans 16,209 15,737 45 49 Home equity 7,301 7,695 - - Automobile loans 9,318 9,983 7 9 Credit card 2,117 2,237 20 22 Other consumer loans and leases 945 680 - - Total loans and leases $ 92,212 92,849 75 84 Less: Loans held for sale 766 751 Total portfolio loans and leases $ 91,446 92,098 The following table presents a summary of net charge-offs (recoveries): For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Commercial and industrial loans $ 18 39 52 86 Commercial mortgage loans 5 6 11 13 Commercial construction loans - - - (1) Commercial leases 1 1 2 3 Residential mortgage loans 2 2 7 5 Home equity 5 6 11 13 Automobile loans 6 8 18 16 Credit card 22 21 43 41 Other consumer loans and leases 5 4 9 7 Total net charge-offs $ 64 87 153 183 |
Credit Quality and the Allowa38
Credit Quality and the Allowance for Loan and Lease Losses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Credit Quality and the Allowance for Loan and Leases Losses | |
Summary of Transactions in the ALLL | Allowance for Loan and Lease Losses The following tables summarize transactions in the ALLL by portfolio segment: Residential For the three months ended June 30, 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 826 96 204 112 1,238 Losses charged-off (41) (4) (50) - (95) Recoveries of losses previously charged-off 17 2 12 - 31 Provision for (benefit from) loan and lease losses 15 (1) 40 (2) 52 Balance, end of period $ 817 93 206 110 1,226 Residential For the three months ended June 30, 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 867 98 214 116 1,295 Losses charged-off (51) (5) (49) - (105) Recoveries of losses previously charged-off 5 3 10 - 18 Provision for loan and lease losses 52 2 36 1 91 Balance, end of period $ 873 98 211 117 1,299 Residential For the six months ended June 30, 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 831 96 214 112 1,253 Losses charged-off (86) (10) (106) - (202) Recoveries of losses previously charged-off 21 3 25 - 49 Provision for (benefit from) loan and lease losses 51 4 73 (2) 126 Balance, end of period $ 817 93 206 110 1,226 Residential For the six months ended June 30, 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 840 100 217 115 1,272 Losses charged-off (112) (10) (100) - (222) Recoveries of losses previously charged-off 11 5 23 - 39 Provision for loan and lease losses 134 3 71 2 210 Balance, end of period $ 873 98 211 117 1,299 |
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 June 30, 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 118 (c) 66 40 - 224 Collectively evaluated for impairment 699 27 166 - 892 Unallocated - - - 110 110 Total ALLL $ 817 93 206 110 1,226 Portfolio loans and leases: (b) Individually evaluated for impairment $ 760 (c) 652 339 - 1,751 Collectively evaluated for impairment 55,545 14,664 19,342 - 89,551 Loans acquired with deteriorated credit quality - 2 - - 2 Total portfolio loans and leases $ 56,305 15,318 19,681 - 91,304 Includes $ 2 related to leveraged leases at June 30, 2017 . Excludes $ 142 of residential mortgage loans measured at fair value and includes $ 7 06 of leveraged leases, net of unearned income at June 30, 2017 . Includes five restructured loans at June 30, 2017 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, 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 118 (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 (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 mortga ge 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 . |
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 June 30, 2017 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 38,281 1,151 1,460 22 40,914 Commercial mortgage owner-occupied loans 3,207 76 102 - 3,385 Commercial mortgage nonowner-occupied loans 3,358 31 94 - 3,483 Commercial construction loans 4,320 46 - - 4,366 Commercial leases 4,041 85 31 - 4,157 Total commercial loans and leases $ 53,207 1,389 1,687 22 56,305 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 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: June 30, 2017 December 31, 2016 ($ in millions) Performing Nonperforming Performing Nonperforming Residential mortgage loans (a) $ 15,286 32 14,874 34 Home equity 7,231 70 7,622 73 Automobile loans 9,317 1 9,981 2 Credit card 2,091 26 2,209 28 Other consumer loans and leases 945 - 680 - Total residential mortgage and consumer loans and leases (a) $ 34,870 129 35,366 137 (a) Excludes $ 142 and $ 143 of loans measured at fair value at June 30, 2017 and December 31, 2016 , respectively. |
Summary by Age and Class of the Recorded Investment in Delinquencies Included in the Bancorp's Portfolio of Loans and Leases | 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 June 30, 2017 ($ in millions) Leases (c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 40,761 48 105 153 40,914 3 Commercial mortgage owner-occupied loans 3,366 4 15 19 3,385 - Commercial mortgage nonowner-occupied loans 3,468 9 6 15 3,483 - Commercial construction loans 4,366 - - - 4,366 - Commercial leases 4,154 - 3 3 4,157 - Residential mortgage loans (a)(b) 15,213 27 78 105 15,318 45 Consumer loans and leases: Home equity 7,183 66 52 118 7,301 - Automobile loans 9,245 64 9 73 9,318 7 Credit card 2,065 28 24 52 2,117 20 Other consumer loans and leases 943 2 - 2 945 - Total portfolio loans and leases (a) $ 90,764 248 292 540 91,304 75 Excludes $ 142 of residential mortgage loans measured at fair value at June 30, 2017 . Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. These advances were $ 280 a s of June 30, 2017 , of which $ 7 9 of these loans were 30-89 days past due and $ 179 were 90 days or more past due. The Bancorp recognized $ 1 and $ 3 of losses during the three and six months ended June 30, 2017 , respectively, due to claim denials and curtailments associated 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, 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 . These advances were $ 312 as of December 31, 2016 , of which $ 110 of these loa ns were 30-89 days past due and $ 202 were 90 days or more past due. The Bancorp recognized $ 1 and $ 3 of losses during the three and six months ended June 30, 2016, respectively, due to claim denials and cu rtailments 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: Unpaid Principal Recorded As of June 30, 2017 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 450 394 90 Commercial mortgage owner-occupied loans (b) 21 15 9 Commercial mortgage nonowner-occupied loans 4 3 1 Restructured residential mortgage loans 462 459 66 Restructured consumer loans and leases: Home equity 188 187 27 Automobile loans 9 9 1 Credit card 47 47 12 Total impaired portfolio loans and leases with a related ALLL $ 1,181 1,114 206 With no related ALLL: Commercial loans and leases: Commercial and industrial loans $ 276 255 - Commercial mortgage owner-occupied loans 30 25 - Commercial mortgage nonowner-occupied loans 39 39 - Commercial leases 3 3 - Restructured residential mortgage loans 213 193 - Restructured consumer loans and leases: Home equity 97 94 - Automobile loans 2 2 - Total impaired portfolio loans and leases with no related ALLL $ 660 611 - Total impaired portfolio loans and leases $ 1,841 1,725 a (a) 206 Includes $ 224 , $ 639 and $ 294 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 244 , $ 13 an d $ 45 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at June 30, 2017 . Excludes five restructured loans at June 30, 2017 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 , respectively . Unpaid Principal Recorded As of December 31, 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 TDR s 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 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 an unpaid principal balance of $ 26 , a recorded investment of $ 26 and an ALLL of $ 18 . The following tables summarize the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class: For the three months ended For the six months ended June 30, 2017 June 30, 2017 Average Interest Average Interest Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 635 1 668 2 Commercial mortgage owner-occupied loans (a) 38 - 42 - Commercial mortgage nonowner-occupied loans 66 - 73 1 Commercial leases 2 - 3 - Restructured residential mortgage loans 654 6 653 12 Restructured consumer loans and leases: Home equity 287 3 293 6 Automobile loans 12 - 13 - Credit card 49 1 51 2 Total average impaired portfolio loans and leases $ 1,743 11 1,796 23 (a) Excludes five restructured loans associated with a consolidated VIE in which the Bancorp has no continu ing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 2 6 and an immaterial amount of interest income recognized for both the three and six months ended June 30, 2017 For the three months ended For the six months ended June 30, 2016 June 30, 2016 Average Interest Average Interest Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 762 2 684 4 Commercial mortgage owner-occupied loans (a) 68 - 69 1 Commercial mortgage nonowner-occupied loans 152 1 160 3 Commercial construction loans 2 - 4 - Commercial leases 6 - 5 - Restructured residential mortgage loans 651 6 644 12 Restructured consumer loans and leases: Home equity 329 3 336 6 Automobile loans 18 - 18 - Credit card 57 1 58 3 Total average impaired loans and leases $ 2,045 13 1,978 29 (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 $ 27 and an immaterial amount of interest income recognized for both the three and six months ended June 30, 2016 . |
Summary of the Bancorp's Nonperforming Loans and Leases by Class | 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: June 30, December 31, ($ in millions) 2017 2016 Commercial loans and leases: Commercial and industrial loans $ 447 478 Commercial mortgage owner-occupied loans (a) 27 32 Commercial mortgage nonowner-occupied loans 8 9 Commercial leases 3 4 Total nonaccrual portfolio commercial loans and leases 485 523 Residential mortgage loans 32 34 Consumer loans and leases: Home equity 70 73 Automobile loans 1 2 Credit card 26 28 Total nonaccrual portfolio consumer loans and leases 97 103 Total nonaccrual portfolio loans and leases (b)(c) $ 614 660 OREO and other repossessed property 48 78 a Total nonperforming portfolio assets (b)(c) $ 662 738 Excludes $ 19 of restructured nonaccrual loans at both June 30, 2017 and 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. Excludes $ 8 and $ 1 3 of nonaccrual loans held for sale at June 30, 2017 and December 31, 2016 , respectively. Includes $ 4 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at both June 30, 2017 and Dec ember 31, 2016 and $ 1 of restructured nonaccrual government insured commercial loans at both June 30, 2017 and December 31, 2016 . |
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 three months ended: Recorded investment Number of loans in loans modified Increase Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon June 30, 2017 ($ in millions) (a) during the period (b) during the period modification modification Commercial loans: Commercial and industrial loans 17 $ 56 1 4 Commercial mortgage owner-occupied loans 2 6 5 - Commercial mortgage nonowner-occupied loans 1 - - - Residential mortgage loans 199 28 1 - Consumer loans: Home equity 44 3 - - Automobile loans 15 - - - Credit card 2,152 10 2 1 Total portfolio loans 2,430 $ 103 9 5 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 Number of loans in loans modified Increase Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon June 30, 2016 ($ in millions) (a) during the period (b) during the period modification modification Commercial loans: Commercial and industrial loans 20 $ 61 11 - Commercial mortgage owner-occupied loans 3 2 - - Commercial mortgage nonowner-occupied loans 2 5 1 - Residential mortgage loans 262 37 2 - Consumer loans: Home equity 62 2 - - Automobile loans 58 1 - - Credit card 2,262 11 2 1 Total portfolio loans 2,669 $ 119 16 1 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 following tables provide a summary of loans and leases, by class, modified in a TDR by the Bancorp during the six months ended: Recorded investment Number of loans in loans modified Increase Charge-offs modified in a TDR in a TDR to ALLL upon recognized upon June 30, 2017 ($ in millions) (a) during the period (b) during the period modification modification Commercial loans and leases: Commercial and industrial loans 50 $ 153 2 6 Commercial mortgage owner-occupied loans 7 8 5 - Commercial mortgage nonowner-occupied loans 2 - - - Residential mortgage loans 402 57 3 - Consumer loans: Home equity 75 5 - - Automobile loans 45 - - - Credit card 3,908 17 3 1 Total portfolio loans and leases 4,489 $ 240 13 7 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 June 30, 2016 ($ in millions) (a) during the period (b) during the period modification modification Commercial loans: Commercial and industrial loans 44 $ 117 9 - Commercial mortgage owner-occupied loans 10 8 (2) - Commercial mortgage nonowner-occupied loans 4 5 1 - Residential mortgage loans 505 73 4 - Consumer loans: Home equity 126 7 - - Automobile loans 136 2 - - Credit card 4,854 23 4 2 Total portfolio loans 5,679 $ 235 16 2 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 three months ended June 30, 2017 and 2016 and were within twelve months of the restructuring date: Number of Recorded June 30, 2017 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 2 $ 15 Commercial mortgage owner-occupied loans 3 1 Residential mortgage loans 26 3 Consumer loans: Home equity 6 1 Credit card 387 2 Total portfolio loans 424 $ 22 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. Number of Recorded June 30, 2016 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 2 $ 3 Commercial mortgage nonowner-occupied loans 1 - Residential mortgage loans 33 5 Consumer loans: Home equity 2 - Credit card 351 1 Total portfolio loans 389 $ 9 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. The following tables provide a summary of TDRs that subsequently defaulted during the six months ended June 30, 2017 and 2016 and were within twelve months of the restructuring date: Number of Recorded June 30, 2017 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 4 $ 16 Commercial mortgage owner-occupied loans 3 1 Residential mortgage loans 83 12 Consumer loans: Home equity 11 2 Credit card 837 4 Total portfolio loans and leases 938 $ 35 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. Number of Recorded June 30, 2016 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 3 $ 3 Commercial mortgage nonowner-occupied loans 2 - Residential mortgage loans 86 12 Consumer loans: Home equity 8 1 Credit card 774 3 Total portfolio loans 873 $ 19 (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) | 6 Months Ended |
Jun. 30, 2017 | |
Bank Premises and Equipment | |
Bank Premises and Equipment | The following table provides a summary of bank premises and equipment as of: ($ in millions) June 30, 2017 December 31, 2016 Land and improvements (a) $ 647 663 Buildings (a) 1,574 1,672 Equipment 1,762 1,761 Leasehold improvements 394 398 Construction in progress (a) 120 99 Bank premises and equipment held for sale: Land and improvements 28 29 Buildings 12 9 Equipment 1 1 Accumulated depreciation and amortization (2,497) (2,567) Total bank premises and equipment $ 2,041 2,065 (a ) At June 30, 2017 and December 31, 2016 , land and improvements , buildings and construction in progress included $ 91 and $ 92 , respectively, associated w ith parcels of undeveloped land intended for future branch expansion. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 Core deposit intangibles $ 34 (28) 6 Other 25 (13) 12 Total intangible assets $ 59 (41) 18 As of December 31, 2016 Core deposit intangibles $ 34 (27) 7 Other 15 (13) 2 Total intangible assets $ 49 (40) 9 |
Estimated Amortization Expense | Estimated amortization expense for the remainder of 2017 through 2021 is as follows: ($ in millions) Total Remainder of 2017 $ 1 2018 2 2019 2 2020 2 2021 2 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Variable Interest Entities | |
Consolidation of Variable Interest Entities Disclosure | The following tables provide a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Condensed Consolidated Balance Sheets as of: Automobile Loan CDC June 30, 2017 ($ in millions) Securitizations Investments Total Assets: Cash and due from banks $ 56 1 57 Commercial mortgage loans - 46 46 Automobile loans 691 - 691 ALLL (4) (20) (24) Other assets 7 - 7 Total assets $ 750 27 777 Liabilities: Other liabilities $ 1 - 1 Long-term debt 618 - 618 Total liabilities $ 619 - 619 Noncontrolling interests $ - 27 27 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 |
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 Condensed 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 June 30, 2017 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,495 413 1,495 Private equity investments 116 - 170 Loans provided to VIEs 2,060 - 3,000 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 |
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 Condensed Consolidated Statements of Income relating to investments in qualified affordable housing investments: Condensed Consolidated For the three months ended June 30, For the six months ended June 30, ($ in millions) Statements of Income Caption 2017 2016 2017 2016 Pre-tax investment and impairment losses (a) Other noninterest expense $ 35 37 72 73 Tax credits and other benefits Applicable income tax expense (56) (56) (112) (111) (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credi ts or other circumstances during both the three and six months ended June 30, 2017 and 2016 . |
Sales of Receivables and Serv42
Sales of Receivables and Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 Condensed Consolidated Statements of Income, is as follows: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Residential mortgage loan sales (a) $ 1,518 1,631 3,147 2,745 Origination fees and gains on loan sales 37 54 66 95 Gross mortgage servicing fees 49 50 97 102 Represents the unpaid principal balance at the time of the sale. |
Changes in the Servicing Assets | The following tables present changes in the servicing rights related to residential mortgage and automobile loans for the six months ended June 30: ($ in millions) 2017 Balance, beginning of period $ 744 Servicing rights originated - residential mortgage loans 66 Servicing rights acquired - residential mortgage loans 109 Changes in fair value: Due to changes in inputs or assumptions (a) (13) Other changes in fair value (b) (57) Balance, end of period $ 849 Primarily reflects changes in prepayment speed and OAS spread assumptions which are updated based on market interest rates . Pr imarily reflects changes due to collection of contractual cash flows and the passage of time . ($ in millions) 2016 Carrying amount before valuation allowance: Balance, beginning of period $ 1,204 Servicing rights that result from the transfer of residential mortgage loans 28 Amortization (61) Balance, end of period $ 1,171 Valuation allowance for servicing rights: Balance, beginning of period $ (419) Provision for MSR impairment (131) Balance, end of period (550) Carrying amount after valuation allowance $ 621 |
Fair Value of the Servicing Assets | The following table displays the beginning and ending fair value of the servicing rights for the six months ended June 30: ($ in millions) 2017 2016 Fixed-rate residential mortgage loans: Balance, beginning of period $ 722 757 Balance, end of period 830 598 Adjustable-rate residential mortgage loans: Balance, beginning of period 22 27 Balance, end of period 19 23 Fixed-rate automobile loans: Balance, beginning of period - 1 Balance, end of period - - |
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: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Securities gains, net - non-qualifying hedges on MSRs $ 2 - 2 - Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) 16 51 15 149 MSR fair value adjustment (a) (47) - (70) - Provision for MSR impairment (a) - (45) - (131) (a) Included in mortgage banking net revenue in the Condensed Consolidated Statements of Income. |
Servicing Assets and Residual Interests Economic Assumptions | 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 three months ended June 30, 2017 and 2016 were as follows: June 30, 2017 June 30, 2016 Rate Weighted-Average Life (in years) Prepayment Speed (annual) OAS Spread (bps) Weighted-Average Life (in years) Prepayment Speed (annual) OAS Spread (bps) Residential mortgage loans: Servicing rights Fixed 7.0 10.3 % 492 6.7 11.9 % 548 Servicing rights Adjustable 3.0 29.8 659 2.9 29.8 683 |
Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions | At June 30, 2017, 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 OAS spread are as follows: Prepayment OAS Speed Assumption Spread Assumption 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 $ 830 5.9 11.5 % $ (37) (71) (161) 530 $ (17) (33) Servicing rights Adjustable 19 3.3 24.8 (1) (2) (5) 773 - (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 Instrume43
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 Condensed Consolidated Balance Sheets as of: Fair Value Notional Derivative Derivative June 30, 2017 ($ in millions) Amount Assets Liabilities Derivatives Designated as Qualifying Hedging Instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 2,955 317 5 Total fair value hedges 317 5 Cash flow hedges: Interest rate swaps related to C&I loans 4,475 - 13 Total cash flow hedges - 13 Total derivatives designated as qualifying hedging instruments 317 18 Derivatives Not Designated as Qualifying Hedging Instruments: Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSR portfolio 11,602 59 18 Forward contracts related to residential mortgage loans held for sale 1,749 3 3 Swap associated with the sale of Visa, Inc. Class B Shares 1,563 - 98 Foreign exchange contracts 194 - 5 Total free-standing derivatives - risk management and other business purposes 62 124 Free-standing derivatives - customer accommodation: Interest rate contracts for customers 39,933 179 130 Interest rate lock commitments 769 14 - Commodity contracts 2,382 90 91 TBAs 56 - - Foreign exchange contracts 10,653 118 128 Total free-standing derivatives - customer accommodation 401 349 Total derivatives not designated as qualifying hedging instruments 463 473 Total $ 780 491 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 MSR portfolio 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 |
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 Condensed Consolidated Statements of Income: For the three months For the six months Condensed Consolidated ended June 30, ended June 30, ($ in millions) Statements of Income Caption 2017 2016 2017 2016 Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ 14 39 (6) 122 Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt (15) (41) 5 (126) |
Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges | The following table presents the pretax net gains recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Amount of pretax net gains recognized in OCI $ 8 26 3 100 Amount of pretax net gains reclassified from OCI into net income 6 12 14 26 |
Schedule of Price Risk Derivatives | The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: For the three months For the six months Condensed Consolidated ended June 30, ended June 30, ($ in millions) Statements of Income Caption 2017 2016 2017 2016 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ 5 (9) (16) (19) Interest rate contracts related to MSR portfolio Mortgage banking net revenue 16 51 15 149 Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income (3) (1) (4) (4) Equity contracts: Stock warrant associated with Vantiv Holding, LLC Other noninterest income - 19 - 66 Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (9) (50) (22) (50) |
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 as of: June 30, December 31, ($ in millions) 2017 2016 Pass $ 2,582 2,447 Special mention 30 14 Substandard 9 6 Total $ 2,621 2,467 |
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 Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: For the three months For the six months Condensed Consolidated ended June 30, ended June 30, ($ in millions) Statements of Income Caption 2017 2016 2017 2016 Interest rate contracts: Interest rate contracts for customers (contract revenue) Corporate banking revenue $ 5 5 9 12 Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense - (1) - (2) Interest rate lock commitments Mortgage banking net revenue 26 42 48 84 Commodity contracts: Commodity contracts for customers (contract revenue) Corporate banking revenue 1 2 2 3 Commodity contracts for customers (credit losses) Other noninterest expense 1 (1) 1 (1) Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense - 2 - 1 Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Corporate banking revenue 9 16 22 32 Foreign exchange contracts for customers (credit losses) Other noninterest expense 2 (2) 2 (2) Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense - 2 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 Condensed Consolidated Balance Sheets Condensed Consolidated As of June 30, 2017 ($ in millions) Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 766 (194) (365) 207 Total assets 766 (194) (365) 207 Liabilities: Derivatives 491 (194) (144) 153 Total liabilities $ 491 (194) (144) 153 Amount does not includ e IRLCs because these instruments are not subject to master netting or similar arrangements . 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 Condensed Consolidated Balance Sheets were excluded from this table. Gross Amount Gross Amounts Not Offset in the Recognized in the Condensed Consolidated Balance Sheets Condensed Consolidated As of December 31, 2016 ($ in millions) 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 Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements . 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 Condensed Consolidated Balance Sheets were excluded from this table. |
Other Short Term Borrowings (Ta
Other Short Term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Short-term Debt | |
Schedule Of Short Term Debt | Borrowings with original maturities of one year or less are classified as short-term. The following table presents a summary of the Bancorp's other short-term borrowings as of: June 30, December 31, ($ in millions) 2017 2016 FHLB advances $ 4,350 2,500 Securities sold under repurchase agreements 656 661 Derivative collateral 381 374 Other 2 - Total other short-term borrowings $ 5,389 3,535 |
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets | 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: ($ in millions) June 30, 2017 December 31, 2016 Amount Remaining Contractual Maturity Amount Remaining Contractual Maturity Type of collateral: Agency residential mortgage-backed securities $ 656 Overnight 661 Overnight U.S. Treasury and federal agencies securities - Overnight - Overnight Total securities sold under repurchase agreements $ 656 661 |
Capital Actions (Tables)
Capital Actions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Capital Actions | |
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 six months ended June 30, 2017: Repurchase Date Amount ($ in millions) Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Settlement Date December 20, 2016 $ 155 4,843,750 1,044,362 5,888,112 February 6, 2017 May 1, 2017 342 11,641,971 2,248,250 13,890,221 July 31, 2017 |
Commitments, Contingent Liabi46
Commitments, Contingent Liabilities and Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments, Contingent Liabilities and Guarantees | |
Summary of Significant Commitments | Commitments The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of: June 30, December 31, ($ in millions) 2017 2016 Commitments to extend credit $ 67,242 67,909 Letters of credit 2,358 2,583 Forward contracts related to residential mortgage loans held for sale 1,749 1,823 Noncancelable operating lease obligations 556 576 Purchase obligations 110 57 Capital commitments for private equity investments 58 59 Capital expenditures 42 29 Capital lease obligations 17 19 |
Credit Risk Associated With Commitments | Risk ratings under this risk rating system are summarized in the following table as of: June 30, December 31, ($ in millions) 2017 2016 Pass $ 66,256 66,802 Special mention 399 338 Substandard 587 753 Doubtful - 16 Total commitments to extend credit $ 67,242 67,909 |
Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party | 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 June 30, 2017: ($ in millions) Less than 1 year (a) $ 1,208 1 - 5 years (a) 1,120 Over 5 years 30 Total letters of credit $ 2,358 ( a) Includes $ 11 and $ 3 issued 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: June 30, December 31, ($ in millions) 2017 2016 Pass $ 2,030 2,134 Special mention 80 98 Substandard 184 290 Doubtful 64 61 Total letters of credit $ 2,358 2,583 |
Activity in Reserve for Representation and Warranty Provisions | The following table summarizes activity in the reserve for representation and warranty provisions: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Balance, beginning of period $ 12 23 13 25 Net reductions to the reserve (1) (2) (2) (3) Losses charged against the reserve - - - (1) Balance, end of period $ 11 21 11 21 |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The following tables provide a rollforward of unresolved claims by claimant type for the six months ended: GSE Private Label June 30, 2017 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 13 $ 2 - $ - New demands 58 8 - - Loan paydowns/payoffs (1) - - - Resolved demands (54) (8) - - Balance, end of period 16 $ 2 - $ - GSE Private Label June 30, 2016 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 16 $ 4 2 $ - New demands 142 10 3 - Loan paydowns/payoffs (6) (1) - - Resolved demands (134) (9) (4) - Balance, end of period 18 $ 4 1 $ - |
Visa Funding and Bancorp Cash Payments | After 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, require d 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 i |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Income | |
Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income | The tables below present the activity of the components of OCI and AOCI for the three months ended: Total OCI Total AOCI Pretax Tax Net Beginning Net Ending June 30, 2017 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during period $ 148 (55) 93 Reclassification adjustment for net gains on available-for-sale securities included in net income - - - Net unrealized gains on available-for-sale securities 148 (55) 93 117 93 210 Unrealized holding gains on cash flow hedge derivatives arising during period 8 (3) 5 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (6) 2 (4) Net unrealized gains on cash flow hedge derivatives 2 (1) 1 2 1 3 Reclassification of amounts to net periodic benefit costs 2 (1) 1 Defined benefit pension plans, net 2 (1) 1 (51) 1 (50) Total $ 152 (57) 95 68 95 163 Total OCI Total AOCI Pretax Tax Net Beginning Net Ending June 30, 2016 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during period $ 309 (109) 200 Reclassification adjustment for net gains on available-for-sale securities included in net income (8) 2 (6) Net unrealized gains on available-for-sale securities 301 (107) 194 685 194 879 Unrealized holding gains on cash flow hedge derivatives arising during period 26 (9) 17 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (12) 4 (8) Net unrealized gains on cash flow hedge derivatives 14 (5) 9 61 9 70 Reclassification of amounts to net periodic benefit costs 3 (1) 2 Defined benefit pension plans, net 3 (1) 2 (62) 2 (60) Total $ 318 (113) 205 684 205 889 The tables below present the activity of the components of OCI and AOCI for the six months ended: Total OCI Total AOCI Pretax Tax Net Beginning Net Ending June 30, 2017 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during period $ 170 (62) 108 Reclassification adjustment for net losses on available-for-sale securities included in net income 2 (1) 1 Net unrealized gains on available-for-sale securities 172 (63) 109 101 109 210 Unrealized holding gains on cash flow hedge derivatives arising during period 3 (1) 2 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (14) 5 (9) Net unrealized gains on cash flow hedge derivatives (11) 4 (7) 10 (7) 3 Reclassification of amounts to net periodic benefit costs 3 (1) 2 Defined benefit pension plans, net 3 (1) 2 (52) 2 (50) Total $ 164 (60) 104 59 104 163 Total OCI Total AOCI Pretax Tax Net Beginning Net Ending June 30, 2016 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during period $ 1,004 (352) 652 Reclassification adjustment for net gains on available-for-sale securities included in net income (16) 5 (11) Net unrealized gains on available-for-sale securities 988 (347) 641 238 641 879 Unrealized holding gains on cash flow hedge derivatives arising during period 100 (35) 65 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (26) 9 (17) Net unrealized gains on cash flow hedge derivatives 74 (26) 48 22 48 70 Reclassification of amounts to net periodic benefit costs 5 (2) 3 Defined benefit pension plans, net 5 (2) 3 (63) 3 (60) Total $ 1,067 (375) 692 197 692 889 |
Reclassification Out of Accumulated Other Comprehensive Income to Net Income | The table below presents reclassifications out of AOCI: For the three months For the six months Condensed Consolidated ended June 30, ended June 30, Components of AOCI: ($ in millions) Statements of Income Caption 2017 2016 2017 2016 Net unrealized gains on available-for-sale securities: (b) Net (losses) gains included in net income Securities gains, net $ - 8 (2) 16 Income before income taxes - 8 (2) 16 Applicable income tax expense - (2) 1 (5) Net income - 6 (1) 11 Net unrealized gains on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases 6 12 14 26 Income before income taxes 6 12 14 26 Applicable income tax expense (2) (4) (5) (9) Net income 4 8 9 17 Net periodic benefit costs: (b) Amortization of net actuarial loss Employee benefits expense (a) (2) (3) (3) (5) Income before income taxes (2) (3) (3) (5) Applicable income tax expense 1 1 1 2 Net income (1) (2) (2) (3) Total reclassifications for the period Net income $ 3 12 6 25 This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2016 for further information. Amounts in parentheses indicate reductions to net income . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share | |
Calculation of Earnings Per Share and the Reconciliation of Earnings Per Share to Earnings Per Diluted Share | The following tables provide the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share: 2017 2016 (a) For the three months ended June 30, Average Per Share Average Per Share (in millions, except per share data) Income Shares Amount Income Shares Amount Earnings Per Share: Net income available to common shareholders $ 344 305 Less: Income allocated to participating securities 4 3 Net income allocated to common shareholders $ 340 741 0.46 302 759 0.40 Earnings Per Diluted Share: Net income available to common shareholders $ 344 305 Effect of dilutive securities: Stock-based awards - 11 - 6 Net income available to common shareholders plus assumed conversions 344 305 Less: Income allocated to participating securities 4 3 Net income allocated to common shareholders plus assumed conversions $ 340 752 0.45 302 765 0.39 A net tax deficiency of $5 was reclassified from capital surplus to applicable income tax expense and average common shares outstanding - diluted were adjusted for the three months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016 2017 2016 (a) For the six months ended June 30, Average Per Share Average Per Share (in millions, except per share data) Income Shares Amount Income Shares Amount Earnings Per Share: Net income available to common shareholders $ 634 616 Less: Income allocated to participating securities 7 6 Net income allocated to common shareholders $ 627 745 0.84 610 766 0.80 Earnings Per Diluted Share: Net income available to common shareholders $ 634 616 Effect of dilutive securities: Stock-based awards - 12 - 5 Net income available to common shareholders plus assumed conversions 634 616 Less: Income allocated to participating securities 7 6 Net income allocated to common shareholders plus assumed conversions $ 627 757 0.83 610 771 0.79 Net tax deficiencies of $6 were reclassified from capital surplus to applicable income tax expense and average common shares outstanding - diluted were adjusted for the six months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016 . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Measurements | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables summarize assets and liabilities measured at fair value on a recurring basis as of: Fair Value Measurements Using June 30, 2017 ($ 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 $ 69 - - 69 Obligations of states and political subdivisions securities - 45 - 45 Mortgage-backed securities: Agency residential mortgage-backed securities - 16,177 - 16,177 Agency commercial mortgage-backed securities - 9,262 - 9,262 Non-agency commercial mortgage-backed securities - 3,364 - 3,364 Asset-backed securities and other debt securities - 2,206 - 2,206 Equity securities (a) 89 1 - 90 Available-for-sale and other securities (a) 158 31,055 - 31,213 Trading securities: U.S. Treasury and federal agencies securities - 20 - 20 Obligations of states and political subdivisions securities - 27 - 27 Mortgage-backed securities: Agency residential mortgage-backed securities - 413 - 413 Asset-backed securities and other debt securities - 30 - 30 Equity securities 352 - - 352 Trading securities 352 490 - 842 Residential mortgage loans held for sale - 674 - 674 Residential mortgage loans (b) - - 142 142 MSRs (f) - - 849 849 Derivative assets: Interest rate contracts 3 555 14 572 Foreign exchange contracts - 118 - 118 Commodity contracts 39 51 - 90 Derivative assets (d) 42 724 14 780 Total assets $ 552 32,943 1,005 34,500 Liabilities: Derivative liabilities: Interest rate contracts $ 3 161 5 169 Foreign exchange contracts - 133 - 133 Equity contracts - - 98 98 Commodity contracts 7 84 - 91 Derivative liabilities (e) 10 378 103 491 Short positions (e) 17 5 - 22 Total liabilities $ 27 383 103 513 Excludes FHLB, FRB and DTCC restricted stock holdings totaling $ 248 , $ 360 and $ 2 , respectively, at June 30, 2017 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. During both the three and six months ended June 30, 2017 , no assets or liabilities were transferred between Level 1 and Level 2. Included in other assets in the Condensed Consolidated Balance Sheets. Included in other liabilities in the Condensed Consolidat ed Balance Sheets. Effective January 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. The servicing rights were measured at fair value at June 30, 2017 and were measur ed under the amortization method at December 31, 2016. 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 holdings 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 Condensed Consolidated Balance Sheets. Included in other liabilities in the Condensed Consolidated Balance Sh eet |
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 Mortgage Derivatives, Equity Total For the three months ended June 30, 2017 ($ in millions) Loans MSRs (d) Net (a) Derivatives Fair Value Balance, beginning of period $ 141 776 11 (97) 831 Total gains (losses) (realized/unrealized): Included in earnings 1 (47) 26 (9) (29) Purchases/originations - 120 - - 120 Settlements (4) - (28) 8 (24) Transfers into Level 3 (b) 4 - - - 4 Balance, end of period $ 142 849 9 (98) 902 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2017 (c) $ 1 (47) 14 (9) (41) Net interest rate derivatives include derivative assets and liabilities of $ 14 and $ 5 , respectively , as of June 30, 2017 . Includes certain residential mortgage loans originated as held for sale that were transferred to held for invest ment. Includes interest income and expense . Effective January 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. The servicing r ights were measured at fair value at June 30 , 2017 and were measured under the amortization method at December 31, 2016 . Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Mortgage Derivatives, Derivatives, Total For the three months ended June 30, 2016 ($ in millions) Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 160 25 253 438 Total gains (losses) (realized/unrealized): Included in earnings 1 43 (31) 13 Settlements (11) (38) 6 (43) Transfers into Level 3 (b) 4 - - 4 Balance, end of period $ 154 30 228 412 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2016 (c) $ 1 33 (31) 3 Net interest rate derivatives include derivative assets and liabilities of $34 and $4 , respectively, as of June 30, 2016 . Net equity derivatives include derivativ e assets and liabilities of $327 and $99 , respectively, as of June 30, 2016 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes i nterest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Mortgage Derivatives, Equity Total For the six months ended June 30, 2017 ($ in millions) Loans MSRs (d) Net (a) Derivatives Fair Value Balance, beginning of period $ 143 744 8 (91) 804 Total gains (losses) (realized/unrealized): Included in earnings 1 (70) 49 (22) (42) Purchases/originations - 175 (1) - 174 Settlements (9) - (47) 15 (41) Transfers into Level 3 (b) 7 - - - 7 Balance, end of period $ 142 849 9 (98) 902 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2017 (c) $ 1 (70) 15 (22) (76) Net interest rate derivatives include derivative assets and liabilities of $ 14 and $ 5 , respectively, as of June 30, 2017 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Incl udes interest income and expense. Effective January 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. The servicing rights were measured at fair value at June 30, 2017 and were measured under the amortizat ion method at December 31, 2016 . Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Mortgage Derivatives, Derivatives, Total For the six months ended June 30, 2016 ($ in millions) Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 167 12 201 380 Total gains (realized/unrealized): Included in earnings 3 84 16 103 Purchases - (1) - (1) Settlements (22) (65) 11 (76) Transfers into Level 3 (b) 6 - - 6 Balance, end of period $ 154 30 228 412 The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2016 (c) $ 3 34 16 53 Net interest rate derivatives include derivative assets and liabilities of $ 34 and $ 4 , respectively, as of June 30, 2016 . Net equity derivatives include derivative assets and liabilities of $ 327 and $ 99 , respectively, as of June 30, 2016 . Includes certain residential mortgage loans originated as held for sale that were transferred to held for invest ment. 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 Condensed Consolidated Statements of Income as follows: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Mortgage banking net revenue $ (21) 44 (21) 86 Corporate banking revenue 1 - 1 1 Other noninterest income (9) (31) (22) 16 Total (losses) gains $ (29) 13 (42) 103 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 June 30, 2017 and 2016 were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2017 2016 2017 2016 Mortgage banking net revenue $ (33) 34 (55) 36 Corporate banking revenue 1 - 1 1 Other noninterest income (9) (31) (22) 16 Total (losses) gains $ (41) 3 (76) 53 |
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 June 30, 2017 and 2016 and for which a nonrecurring fair value adjustment was recorded during the three and six months ended June 30, 2017 and 2016, 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 Total Losses For the three months ended June 30, 2017 For the six months ended June 30, 2017 As of June 30, 2017 ($ in millions) Level 1 Level 2 Level 3 Total Commercial loans held for sale $ - - 45 45 (13) (32) Commercial and industrial loans - - 405 405 (32) (58) Commercial mortgage loans - - 26 26 (9) (11) Commercial leases - - 3 3 (1) (2) OREO - - 11 11 (1) (5) Bank premises and equipment - - 16 16 (2) (5) Operating lease equipment - - 56 56 - (20) Total $ - - 562 562 (58) (133) Fair Value Measurements Using Total (Losses) Gains Total (Losses) Gains For the three months For the six months As of June 30, 2016 ($ in millions) Level 1 Level 2 Level 3 Total ended June 30, 2016 ended June 30, 2016 Commercial loans held for sale $ - - 20 20 (5) (7) Commercial and industrial loans - - 426 426 (19) (66) Commercial mortgage loans - - 67 67 (7) (1) Commercial construction loans - - - - - 2 Commercial leases - - 3 3 (1) (1) MSRs (a) - - 621 621 (45) (131) OREO - - 38 38 (6) (9) Bank premises and equipment - - 20 20 2 2 Operating lease equipment - - 38 38 (5) (5) Total $ - - 1,233 1,233 (86) (216) Effective January 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. The servicing rights were measured at fair value at June 30, 2017 and were measured under the amortization method at June 30, 2016 . |
Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Inputs | The following tables present information as of June 30, 2017 and 2016 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 June 30, 2017 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Residential mortgage loans $ 142 Loss rate model Interest rate risk factor (9.6) - 15.0% 2.9% Credit risk factor 0 - 46.2% 1.0% MSRs 849 Discounted cash flow Prepayment speed 1.2-100% (Fixed) 11.5% (Adjustable) 24.8% OAS spread (bps) 430-1,515 (Fixed) 530 (Adjustable) 773 IRLCs, net 14 Discounted cash flow Loan closing rates 9.6 - 96.8% 73.0% Swap associated with the sale of Visa, Inc. (98) Discounted cash flow Timing of the resolution 6/30/2019 - NM Class B Shares of the Covered Litigation 12/31/2022 As of June 30, 2016 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Residential mortgage loans $ 154 Loss rate model Interest rate risk factor (5.2) - 16.3% 5.0% Credit risk factor 0 - 80.5% 1.1% IRLCs, net 34 Discounted cash flow Loan closing rates 5.3 - 94.0% 75.5% Stock warrant associated with Vantiv 327 Black-Scholes option- Expected term (years) 2.0 - 13.0 5.8 Holding, LLC pricing model Expected volatility (a) 21.6 - 27.4% 24.3% Swap associated with the sale of Visa, Inc. (99) Discounted cash flow Timing of the resolution 12/31/2018 - NM Class B Shares of the Covered Litigation 12/31/2022 (a) Based on historical and implied volatilities of Vantiv, Inc. and comparable companies assuming similar expected terms. The following tables present information as of June 30, 2017 and 2016 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis: As of June 30, 2017 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 45 Appraised value Appraised value NM NM Commercial and industrial loans 405 Appraised value Collateral value NM NM Commercial mortgage loans 26 Appraised value Collateral value NM NM Commercial leases 3 Appraised value Collateral value NM NM OREO 11 Appraised value Appraised value NM NM Bank premises and equipment 16 Appraised value Appraised value NM NM Operating lease equipment 56 Appraised value Appraised value NM NM As of June 30, 2016 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 20 Appraised value Appraised Value NM NM Costs to sell NM 10.0% Commercial and industrial loans 426 Appraised value Collateral value NM NM Commercial mortgage loans 67 Appraised value Collateral value NM NM Commercial construction loans - Appraised value Collateral value NM NM Commercial leases 3 Appraised value Collateral value NM NM MSRs 621 Discounted cash flow Prepayment speed 0-100% (Fixed) 15.0% (Adjustable) 26.9% OAS spread (bps) 404-1,515 (Fixed) 648 (Adjustable) 762 OREO 38 Appraised value Appraised value NM NM Bank premises and equipment 20 Appraised value Appraised value NM NM Operating lease equipment 38 Appraised value Appraised value NM NM |
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 unpaid principal balance for residential mortgage loans measured at fair value as of: Aggregate Aggregate Unpaid ($ in millions) Fair Value Principal Balance Difference June 30, 2017 Residential mortgage loans measured at fair value $ 816 790 26 Past due loans of 90 days or more 2 2 - Nonaccrual loans 1 1 - 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 - |
Carrying Amounts and Estimated Fair Values for Certain Financial Instruments | Fair Value of 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 June 30, 2017 ($ in millions) Amount Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and due from banks $ 2,203 2,203 - - 2,203 Other securities 610 - 610 - 610 Held-to-maturity securities 26 - - 26 26 Other short-term investments 2,163 2,163 - - 2,163 Loans held for sale 92 - - 94 94 Portfolio loans and leases: Commercial and industrial loans 40,215 - - 41,425 41,425 Commercial mortgage loans 6,781 - - 6,729 6,729 Commercial construction loans 4,349 - - 4,349 4,349 Commercial leases 4,143 - - 3,885 3,885 Residential mortgage loans 15,225 - - 15,921 15,921 Home equity 7,250 - - 7,757 7,757 Automobile loans 9,277 - - 9,023 9,023 Credit card 2,018 - - 2,374 2,374 Other consumer loans and leases 930 - - 977 977 Unallocated ALLL (110) - - - - Total portfolio loans and leases, net $ 90,078 - - 92,440 92,440 Financial liabilities: Deposits $ 101,880 - 101,855 - 101,855 Federal funds purchased 117 117 - - 117 Other short-term borrowings 5,389 - 5,389 - 5,389 Long-term debt 13,456 13,565 564 - 14,129 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 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting | |
Results of Operations and Average Assets by Segment | The following tables present the results of operations and assets by business segment for the three months ended: Wealth General Commercial Branch Consumer and Asset Corporate June 30, 2017 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 415 437 59 37 (9) - 939 Provision for (benefit from) loan and lease losses 22 39 7 (1) (15) - 52 Net interest income after provision for loan and lease losses 393 398 52 38 6 - 887 Total noninterest income 228 189 (b) 62 101 17 (33) (a) 564 Total noninterest expense 345 399 123 110 13 (33) 957 Income (loss) before income taxes 276 188 (9) 29 10 - 494 Applicable income tax expense (benefit) 49 66 (3) 10 5 - 127 Net income (loss) 227 122 (6) 19 5 - 367 Less: Net income attributable to noncontrolling interests - - - - - - - Net income (loss) attributable to Bancorp 227 122 (6) 19 5 - 367 Dividends on preferred stock - - - - 23 - 23 Net income (loss) available to common shareholders $ 227 122 (6) 19 (18) - 344 Total goodwill $ 613 1,655 - 155 - - 2,423 Total assets $ 57,766 57,378 22,442 8,241 (4,760) (c) - 141,067 Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income. Includes impairment charges of $ 2 for branches and land. For more information refer to Note 7 and Note 21. Includes bank premises and equipment of $ 4 1 classified as hel d for sale. For more information refer to Note 7 . Wealth General Commercial Branch Consumer and Asset Corporate June 30, 2016 ($ in millions) Banking Banking Lending Management and Other (e) Eliminations Total (e) Net interest income $ 460 433 62 44 (97) - 902 Provision for loan and lease losses 72 35 9 1 (26) - 91 Net interest income after provision for loan and lease losses 388 398 53 43 (71) - 811 Total noninterest income 236 (c) 214 (b) 80 100 3 (34) (a) 599 Total noninterest expense 355 409 122 108 23 (34) 983 Income (loss) before income taxes 269 203 11 35 (91) - 427 Applicable income tax expense 43 71 4 12 (27) - 103 Net income (loss) 226 132 7 23 (64) - 324 Less: Net income attributable to noncontrolling interests - - - - (4) - (4) Net income (loss) attributable to Bancorp 226 132 7 23 (60) - 328 Dividends on preferred stock - - - - 23 - 23 Net income (loss) available to common shareholders $ 226 132 7 23 (83) - 305 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 60,042 54,220 22,598 8,399 (1,634) (d) - 143,625 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Condensed Consolidated Statements of Income. Includes impairment charges of $ 1 for branches and land. For more information refer to Note 7 and Note 21. Includes impairment charges of $ 5 for operating lease equipment. For more information refer to Note 8 and Note 21 . Includes bank premises and equipment of $52 classified as held for sale. For more informati on refer to Note 7. A net tax deficiency of $ 5 was reclassified from capital surplus to applicable income tax expense for the three months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effe ctive date of January 1, 2016. The following tables present the results of operations and assets by business segment for the six months ended: Wealth General Commercial Branch Consumer and Asset Corporate June 30, 2017 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 839 867 120 75 (29) - 1,872 Provision for loan and lease losses 29 80 22 3 (8) - 126 Net interest income after provision for loan and lease losses 810 787 98 72 (21) - 1,746 Total noninterest income 429 (c) 374 (b) 116 209 26 (67) (a) 1,087 Total noninterest expense 714 801 241 224 30 (67) 1,943 Income (loss) before income taxes 525 360 (27) 57 (25) - 890 Applicable income tax expense (benefit) 88 127 (10) 20 (7) - 218 Net income (loss) 437 233 (17) 37 (18) - 672 Less: Net income attributable to noncontrolling interests - - - - - - - Net income (loss) attributable to Bancorp 437 233 (17) 37 (18) - 672 Dividends on preferred stock - - - - 38 - 38 Net income (loss) available to common shareholders $ 437 233 (17) 37 (56) - 634 Total goodwill $ 613 1,655 - 155 - - 2,423 Total assets $ 57,766 57,378 22,442 8,241 (4,760) (d) - 141,067 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Condensed Consolidated Statements of Income. Includes impairment charges of $ 5 for branches and land. For more information refer to Note 7 and Note 21. Includes impairment charges of $ 31 for operating lease equipment. For more information refer to Note 8 and Note 21. Includes bank premises and equipment of $ 4 1 classified as held for sale. For more information refer to Note 7. Wealth General Commercial Branch Consumer and Asset Corporate June 30, 2016 ($ in millions) Banking Banking Lending Management and Other (e) Eliminations Total (e) Net interest income $ 911 859 122 87 (174) - 1,805 Provision for loan and lease losses 137 69 21 1 (18) - 210 Net interest income after provision for loan and lease losses 774 790 101 86 (156) - 1,595 Total noninterest income 457 (c) 401 (b) 164 202 78 (67) (a) 1,235 Total noninterest expense 716 820 240 215 44 (67) 1,968 Income before income taxes 515 371 25 73 (122) - 862 Applicable income tax expense 77 131 9 25 (30) - 212 Net income 438 240 16 48 (92) - 650 Less: Net income attributable to noncontrolling interests - - - - (4) - (4) Net income attributable to Bancorp 438 240 16 48 (88) - 654 Dividends on preferred stock - - - - 38 - 38 Net income available to common shareholders $ 438 240 16 48 (126) - 616 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 60,042 54,220 22,598 8,399 (1,634) (d) - 143,625 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Condensed Consolidated Statements of Income. Includes impairment charge s of $ 3 for branches and land. For more information refer to Note 7 and Note 21. Includes impairment charges of $ 5 for operating lease equipment. For more information refer to Note 8 and Note 21. Includes bank premises and equipment of $ 52 classified as held for sale. For more information refer to Note 7 . Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective d ate of January 1, 2016 . |
Supplemental Cash Flow (Noncash
Supplemental Cash Flow (Noncash Investing and Financing Activities) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Interest paid | ||
Interest | $ 334 | $ 280 |
Income taxes paid, net | ||
Income taxes | 399 | 493 |
Transfers: | ||
Portfolio loans to loans held for sale | 140 | 27 |
Loans held for sale to portfolio loans | 7 | 16 |
Portfolio loans to OREO | $ 19 | $ 17 |
Securities (Available-for-Sale
Securities (Available-for-Sale and Held-to-Maturity Securities) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |||
Investment Holdings | |||||
Available-for-sale securities, fair value | [1] | $ 31,823 | $ 31,183 | ||
Available-for-sale securities, unrealized losses | (121) | (191) | |||
Available-for-sale securities, unrealized gains | 452 | 350 | |||
Available-for-sale and other securities, Amortized Cost | 31,492 | 31,024 | |||
Held-to-maturity securities, fair value | 26 | 26 | |||
Held-to-maturity, unrealized losses | 0 | 0 | |||
Held-to-maturity, unrealized gains | 0 | 0 | |||
Held-to-maturity securities, amortized cost | [2] | 26 | 26 | ||
U.S. Treasury and federal agencies | |||||
Investment Holdings | |||||
Available-for-sale securities, fair value | 69 | 549 | |||
Available-for-sale securities, unrealized losses | 0 | 0 | |||
Available-for-sale securities, unrealized gains | 0 | 2 | |||
Available-for-sale and other securities, Amortized Cost | 69 | 547 | |||
Obligations of states and political subdivisions | |||||
Investment Holdings | |||||
Available-for-sale securities, fair value | 45 | 45 | |||
Available-for-sale securities, unrealized losses | 0 | 0 | |||
Available-for-sale securities, unrealized gains | 2 | 1 | |||
Available-for-sale and other securities, Amortized Cost | 43 | 44 | |||
Held-to-maturity securities, fair value | 24 | 24 | |||
Held-to-maturity, unrealized losses | 0 | 0 | |||
Held-to-maturity, unrealized gains | 0 | 0 | |||
Held-to-maturity securities, amortized cost | 24 | 24 | |||
Agency mortgage-backed securities | Residential mortgage backed securities | |||||
Investment Holdings | |||||
Available-for-sale securities, fair value | 16,177 | [3] | 15,608 | [4] | |
Available-for-sale securities, unrealized losses | (55) | [3] | (95) | [4] | |
Available-for-sale securities, unrealized gains | 223 | [3] | 178 | [4] | |
Available-for-sale and other securities, Amortized Cost | 16,009 | [3] | 15,525 | [4] | |
Agency mortgage-backed securities | Commercial mortgage backed securities | |||||
Investment Holdings | |||||
Available-for-sale securities, fair value | 9,262 | 9,055 | |||
Available-for-sale securities, unrealized losses | (38) | (61) | |||
Available-for-sale securities, unrealized gains | 135 | 87 | |||
Available-for-sale and other securities, Amortized Cost | 9,165 | 9,029 | |||
Non-agency mortgage-backed securities | Commercial mortgage backed securities | |||||
Investment Holdings | |||||
Available-for-sale securities, fair value | 3,364 | 3,112 | |||
Available-for-sale securities, unrealized losses | (6) | (15) | |||
Available-for-sale securities, unrealized gains | 55 | 51 | |||
Available-for-sale and other securities, Amortized Cost | 3,315 | 3,076 | |||
Asset-backed securities and other debt securities | |||||
Investment Holdings | |||||
Available-for-sale securities, fair value | 2,206 | 2,116 | |||
Available-for-sale securities, unrealized losses | (21) | (18) | |||
Available-for-sale securities, unrealized gains | 35 | 28 | |||
Available-for-sale and other securities, Amortized Cost | 2,192 | 2,106 | |||
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 | 700 | [5] | 698 | [6] | |
Available-for-sale securities, unrealized losses | (1) | [5] | (2) | [6] | |
Available-for-sale securities, unrealized gains | 2 | [5] | 3 | [6] | |
Available-for-sale and other securities, Amortized Cost | $ 699 | [5] | $ 697 | [6] | |
[1] | Amortized cost of $ 31,492 and $ 31,024 at June 30, 2017 and December 31, 2016 , respectively. | ||||
[2] | Fair value of $ 26 and $ 26 at June 30, 2017 and December 31, 2016 , respectively. | ||||
[3] | Includes interest-only mortgage-backed securities of $ 39 as of June 30, 2017 , recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income. | ||||
[4] | Includes interest-only mortgage-backed securities of $ 60 as of December 31, 2016 , recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income. | ||||
[5] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 360 and $ 2 , respectively, at June 30, 2017 , that are carried at cost, and certain mutual fund and equity security holdings. | ||||
[6] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 358 and $ 1 , respectively, at December 31, 2016 , that are carried at cost, and certain mutual fund and equity security holdings |
Securities (Available-for-Sal53
Securities (Available-for-Sale and Held-to-Maturity Securities) (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Investment Holdings | |||
FHLB, restricted stock holdings | $ 248 | $ 248 | |
FRB, restricted stock holdings | 360 | 358 | |
Available-for-sale and other securities | [1] | 31,823 | 31,183 |
DTCC, restricted stock holdings | 2 | 1 | |
Interest-Only Mortgage-Backed Securities | |||
Investment Holdings | |||
Available-for-sale and other securities | $ 39 | $ 60 | |
[1] | Amortized cost of $ 31,492 and $ 31,024 at June 30, 2017 and December 31, 2016 , respectively. |
Securities (Realized Gains and
Securities (Realized Gains and Losses Recognized in Income from Available-for-Sale Securities) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Investments, Unrealized Loss Position | |||||
OTTI | [1] | $ (14) | $ (3) | $ (24) | $ (5) |
Available-for-sale Securities | |||||
Investments, Unrealized Loss Position | |||||
Realized gains | 21 | 15 | 30 | 29 | |
Realized losses | (7) | (4) | (8) | (8) | |
OTTI | (14) | (3) | (24) | (5) | |
Net realized gains (losses) | [2] | $ 0 | $ 8 | $ (2) | $ 16 |
[1] | (a) Included in securities gains, net in the Condensed Consolidated Statements of Income. | ||||
[2] | (a) Excludes n et losses on interest-only mortgage- backed securities of $ 2 and $ 1 for the three and six months ended June 30, 2017 , respectively, and $ 3 and $ 8 for the three and six months ended June 30, 2016 , respectively. |
Securities (Realized Gains an55
Securities (Realized Gains and Losses Recognized in Income from Available-for-Sale Securities) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest-Only Mortgage-Backed Securities | ||||
Investment Holdings | ||||
Net gains/losses on interest-only mortgage-backed securities | $ (2) | $ (3) | $ (1) | $ (8) |
Securities (Other Than Temporar
Securities (Other Than Temporary Impairment Recognized) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Investments, Unrealized Loss Position | |||||
OTTI | [1] | $ (14) | $ (3) | $ (24) | $ (5) |
Available-for-sale securities | Equity securities | |||||
Investments, Unrealized Loss Position | |||||
OTTI | 0 | 0 | 0 | (1) | |
Available-for-sale securities | Debt securities | |||||
Investments, Unrealized Loss Position | |||||
OTTI | $ (14) | $ (3) | $ (24) | $ (4) | |
[1] | (a) Included in securities gains, net in the Condensed Consolidated Statements of Income. |
Securities (Gains and Losses Re
Securities (Gains and Losses Recognized in Income from Trading Securities) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Securities | |||||
Realized gains | [1] | $ 2 | $ 4 | $ 5 | $ 5 |
Realized losses | [2] | (2) | (2) | (4) | (6) |
Net unrealized gains (losses) | [3] | 4 | 1 | 5 | 1 |
Total trading securities gains (losses) | $ 4 | $ 3 | $ 6 | $ 0 | |
[1] | Includes realized gains of $ 2 and $ 4 for the three and six months ended June 30, 2017 , respectively, and $ 4 and $ 5 for the three and six months ended June 30, 2016 , respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. | ||||
[2] | Includes realized losses of $ 2 and $ 4 for the three and six months ended June 30, 2017 , respectively, and $ 2 and $ 6 for the three and six months ended June 30, 2016 , respec tively, recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. | ||||
[3] | Include s an immaterial amount of net unrealized losses during the three months ended June 30, 2017 and an immaterial am ount of net unrealized gains during the six months ended June 30, 2017 and both the three and six months ended June 30, 2016 , recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. |
Securities (Gains and Losses 58
Securities (Gains and Losses Recognized in Income from Trading Securities) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Schedule Of Trading Securities And Other Trading Assets | |||||
Realized gains | [1] | $ 2 | $ 4 | $ 5 | $ 5 |
Realized losses | [2] | 2 | 2 | 4 | 6 |
Net unrealized gains (losses) | [3] | 4 | 1 | 5 | 1 |
Corporate Banking Revenue and Wealth and Asset Management Revenue | |||||
Schedule Of Trading Securities And Other Trading Assets | |||||
Realized gains | 2 | 4 | 4 | 5 | |
Realized losses | $ (2) | $ (2) | $ (4) | $ (6) | |
[1] | Includes realized gains of $ 2 and $ 4 for the three and six months ended June 30, 2017 , respectively, and $ 4 and $ 5 for the three and six months ended June 30, 2016 , respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. | ||||
[2] | Includes realized losses of $ 2 and $ 4 for the three and six months ended June 30, 2017 , respectively, and $ 2 and $ 6 for the three and six months ended June 30, 2016 , respec tively, recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. | ||||
[3] | Include s an immaterial amount of net unrealized losses during the three months ended June 30, 2017 and an immaterial am ount of net unrealized gains during the six months ended June 30, 2017 and both the three and six months ended June 30, 2016 , recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. |
Securities (Securities - Additi
Securities (Securities - Additional Information) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Investment Holdings | ||
Trading securities | $ 842 | $ 410 |
Securities with a fair value, pledged as collateral | $ 7,800 | $ 10,100 |
Securities (Amortized Cost and
Securities (Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Securities) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Debt securities: | |||
Less than 1 year | [1] | $ 144 | |
1-5 years | [1] | 7,205 | |
5-10 years | [1] | 20,787 | |
Over 10 years | [1] | 2,657 | |
Equity securities | 699 | ||
Available-for-sale and other securities, Amortized Cost | 31,492 | $ 31,024 | |
Debt securities: | |||
Less than 1 year | [1] | 146 | |
1-5 years | [1] | 7,276 | |
5-10 years | [1] | 21,023 | |
Over 10 years | [1] | 2,678 | |
Equity securities | 700 | ||
Available-for-sale and other securities, fair value | [2] | 31,823 | 31,183 |
Debt securities: | |||
Less than 1 year | [1] | 6 | |
1-5 years | [1] | 9 | |
5-10 years | [1] | 9 | |
Over 10 years | [1] | 2 | |
Equity securities | 0 | ||
Held-to-maturity securities, amortized cost | [3] | 26 | 26 |
Debt securities: | |||
Under 1 year | [1] | 6 | |
1-5 years | [1] | 9 | |
5-10 years | [1] | 9 | |
Over 10 years | [1] | 2 | |
Equity securities | 0 | ||
Held-to-maturity securities, fair value | $ 26 | $ 26 | |
[1] | (a) Actual maturities may differ from contractual maturities when a right to call or prepay obligations exists with or without call or prepayment penalties . | ||
[2] | Amortized cost of $ 31,492 and $ 31,024 at June 30, 2017 and December 31, 2016 , respectively. | ||
[3] | Fair value of $ 26 and $ 26 at June 30, 2017 and December 31, 2016 , respectively. |
Securities (Fair Value and Gros
Securities (Fair Value and Gross Unrealized Losses on Available-for-Sale Securities) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | ||
Investments, Unrealized Loss Position | ||||
Less than 12 months Fair Value | $ 8,347 | $ 11,079 | ||
Less than 12 months Unrealized Losses | (97) | (172) | ||
12 months or more Fair Value | 562 | 545 | ||
12 months or more Unrealized Losses | (24) | (19) | ||
Total Fair Value | 8,909 | 11,624 | ||
Total Unrealized Losses | (121) | (191) | ||
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 | 5,047 | 6,223 | ||
Less than 12 months Unrealized Losses | (48) | (88) | ||
12 months or more Fair Value | 152 | 172 | ||
12 months or more Unrealized Losses | (7) | (7) | ||
Total Fair Value | 5,199 | 6,395 | ||
Total Unrealized Losses | (55) | [1] | (95) | [2] |
Agency mortgage-backed securities | Commercial mortgage backed securities | ||||
Investments, Unrealized Loss Position | ||||
Less than 12 months Fair Value | 2,263 | 3,183 | ||
Less than 12 months Unrealized Losses | (38) | (61) | ||
12 months or more Fair Value | 0 | 0 | ||
12 months or more Unrealized Losses | 0 | 0 | ||
Total Fair Value | 2,263 | 3,183 | ||
Total Unrealized Losses | (38) | (61) | ||
Non-agency mortgage-backed securities | Commercial mortgage backed securities | ||||
Investments, Unrealized Loss Position | ||||
Less than 12 months Fair Value | 710 | 1,052 | ||
Less than 12 months Unrealized Losses | (6) | (15) | ||
12 months or more Fair Value | 0 | 0 | ||
12 months or more Unrealized Losses | 0 | 0 | ||
Total Fair Value | 710 | 1,052 | ||
Total Unrealized Losses | (6) | (15) | ||
Asset-backed securities and other debt securities | ||||
Investments, Unrealized Loss Position | ||||
Less than 12 months Fair Value | 327 | 422 | ||
Less than 12 months Unrealized Losses | (5) | (8) | ||
12 months or more Fair Value | 373 | 336 | ||
12 months or more Unrealized Losses | (16) | (10) | ||
Total Fair Value | 700 | 758 | ||
Total Unrealized Losses | (21) | (18) | ||
Equity securities | ||||
Investments, Unrealized Loss Position | ||||
Less than 12 months Fair Value | 0 | 0 | ||
Less than 12 months Unrealized Losses | 0 | 0 | ||
12 months or more Fair Value | 37 | 37 | ||
12 months or more Unrealized Losses | (1) | (2) | ||
Total Fair Value | 37 | 37 | ||
Total Unrealized Losses | $ (1) | [3] | $ (2) | [4] |
[1] | Includes interest-only mortgage-backed securities of $ 39 as of June 30, 2017 , recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income. | |||
[2] | Includes interest-only mortgage-backed securities of $ 60 as of December 31, 2016 , recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income. | |||
[3] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 360 and $ 2 , respectively, at June 30, 2017 , that are carried at cost, and certain mutual fund and equity security holdings. | |||
[4] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 358 and $ 1 , respectively, at December 31, 2016 , 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 | Jun. 30, 2017 | Dec. 31, 2016 | |
Loans held for sale: | |||
Loans held for sale | [1] | $ 766 | $ 751 |
Portfolio loans and leases: | |||
Commercial and industrial loans | 40,914 | 41,676 | |
Commercial mortgage loans | 6,868 | 6,899 | |
Commercial construction loans | 4,366 | 3,903 | |
Commercial leases | 4,157 | 3,974 | |
Residential mortgage loans | 15,460 | 15,051 | |
Home equity | 7,301 | 7,695 | |
Automobile loans | 9,318 | 9,983 | |
Credit card | 2,117 | 2,237 | |
Other consumer loans and leases | 945 | 680 | |
Portfolio loans and leases | [2],[3] | 91,446 | 92,098 |
Commercial Portfolio Segment | |||
Portfolio loans and leases: | |||
Portfolio loans and leases | 56,305 | 56,452 | |
Commercial Portfolio Segment | Commercial and industrial loans | |||
Loans held for sale: | |||
Loans held for sale | 9 | 60 | |
Commercial Portfolio Segment | Commercial mortgage loans | |||
Loans held for sale: | |||
Loans held for sale | 8 | 5 | |
Residential Mortgage Loans | Residential mortgage loans | |||
Loans held for sale: | |||
Loans held for sale | 749 | 686 | |
Consumer Portfolio Segment | |||
Portfolio loans and leases: | |||
Portfolio loans and leases | $ 35,141 | $ 35,646 | |
[1] | Includes $ 674 and $ 686 of residential mortgage loans held for sale measured at fair value at June 30, 2017 and December 31, 2016 , respectively. | ||
[2] | Includes $ 142 and $ 143 of residential mortgage loans measured at fair value at June 30, 2017 and December 31, 2016 , respectively. | ||
[3] | Includes $ 57 and $ 85 of cash and due from banks, $ 737 and $ 1,216 of portfolio loans and leases , $ (24) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 1 and $ 3 of other liabilities , and $ 618 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2017 and December 31, 2016 , respectively. For further information refer to Note 10 . |
Loans & Leases (Loans and Lea63
Loans & Leases (Loans and Leases - Additional Information) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable | ||
Unamortized premiums and discounts, deferred direct loan origination fees and costs, and fair value adjustments | $ 267 | $ 240 |
Unearned Income | 497 | 503 |
Loans pledged at the FHLB | 13,500 | 13,100 |
Loans pledged at the FRB | $ 39,900 | $ 40,000 |
Loans & Leases (Total Loans And
Loans & Leases (Total Loans And Leases Managed By The Bancorp) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||||
Balance | $ 92,212 | $ 92,212 | $ 92,849 | ||
Balance of Loans 90 days or More Past Due | 75 | 75 | 84 | ||
Net Charge-Offs | 64 | $ 87 | 153 | $ 183 | |
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 | 40,923 | 40,923 | 41,736 | ||
Balance of Loans 90 days or More Past Due | 3 | 3 | 4 | ||
Net Charge-Offs | 18 | 39 | 52 | 86 | |
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 | 6,876 | 6,876 | 6,904 | ||
Balance of Loans 90 days or More Past Due | 0 | 0 | 0 | ||
Net Charge-Offs | 5 | 6 | 11 | 13 | |
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 | 4,366 | 4,366 | 3,903 | ||
Balance of Loans 90 days or More Past Due | 0 | 0 | 0 | ||
Net Charge-Offs | 0 | 0 | 0 | ||
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 | 4,157 | 4,157 | 3,974 | ||
Balance of Loans 90 days or More Past Due | 0 | 0 | 0 | ||
Net Charge-Offs | 1 | 1 | 2 | 3 | |
Residential Mortgage | Residential Mortgage | |||||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||||
Balance | 16,209 | 16,209 | 15,737 | ||
Balance of Loans 90 days or More Past Due | 45 | 45 | 49 | ||
Net Charge-Offs | 2 | 2 | 7 | 5 | |
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 | 7,301 | 7,301 | 7,695 | ||
Balance of Loans 90 days or More Past Due | 0 | 0 | 0 | ||
Net Charge-Offs | 5 | 6 | 11 | 13 | |
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 | 9,318 | 9,318 | 9,983 | ||
Balance of Loans 90 days or More Past Due | 7 | 7 | 9 | ||
Net Charge-Offs | 6 | 8 | 18 | 16 | |
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 | 2,117 | 2,117 | 2,237 | ||
Balance of Loans 90 days or More Past Due | 20 | 20 | 22 | ||
Net Charge-Offs | 22 | 21 | 43 | 41 | |
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 | 945 | 945 | 680 | ||
Balance of Loans 90 days or More Past Due | 0 | 0 | 0 | ||
Net Charge-Offs | 5 | $ 4 | 9 | $ 7 | |
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 | 766 | 766 | 751 | ||
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 | $ 91,446 | $ 91,446 | $ 92,098 |
Credit Quality (Summary of Tran
Credit Quality (Summary of Transactions in the ALLL by Portfolio segment) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Financing Receivable, Allowance for Credit Losses | ||||||
Balance, beginning of period | $ 1,238 | $ 1,295 | $ 1,253 | [1],[2] | $ 1,272 | |
Losses charged-off | (95) | (105) | (202) | (222) | ||
Recoveries of losses previously charged- off | 31 | 18 | 49 | 39 | ||
Provision for (benefit from) loan and lease losses | 52 | 91 | 126 | 210 | ||
Balance, end of period | 1,226 | [2],[3] | 1,299 | 1,226 | [2],[3] | 1,299 |
Commercial Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Balance, beginning of period | 826 | 867 | 831 | [1] | 840 | |
Losses charged-off | (41) | (51) | (86) | (112) | ||
Recoveries of losses previously charged- off | 17 | 5 | 21 | 11 | ||
Provision for (benefit from) loan and lease losses | 15 | 52 | 51 | 134 | ||
Balance, end of period | 817 | [3] | 873 | 817 | [3] | 873 |
Residential Mortgage Loans | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Balance, beginning of period | 96 | 98 | 96 | [1] | 100 | |
Losses charged-off | (4) | (5) | (10) | (10) | ||
Recoveries of losses previously charged- off | 2 | 3 | 3 | 5 | ||
Provision for (benefit from) loan and lease losses | (1) | 2 | 4 | 3 | ||
Balance, end of period | 93 | [3] | 98 | 93 | [3] | 98 |
Consumer Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Balance, beginning of period | 204 | 214 | 214 | [1] | 217 | |
Losses charged-off | (50) | (49) | (106) | (100) | ||
Recoveries of losses previously charged- off | 12 | 10 | 25 | 23 | ||
Provision for (benefit from) loan and lease losses | 40 | 36 | 73 | 71 | ||
Balance, end of period | 206 | [3] | 211 | 206 | [3] | 211 |
Unallocated | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Balance, beginning of period | 112 | 116 | 112 | [1] | 115 | |
Losses charged-off | 0 | 0 | 0 | 0 | ||
Recoveries of losses previously charged- off | 0 | 0 | 0 | 0 | ||
Provision for (benefit from) loan and lease losses | (2) | 1 | (2) | 2 | ||
Balance, end of period | $ 110 | [3] | $ 117 | $ 110 | [3] | $ 117 |
[1] | Includes $ 2 related to leveraged leases at December 31, 2016 . | |||||
[2] | Includes $ 57 and $ 85 of cash and due from banks, $ 737 and $ 1,216 of portfolio loans and leases , $ (24) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 1 and $ 3 of other liabilities , and $ 618 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2017 and December 31, 2016 , respectively. For further information refer to Note 10 . | |||||
[3] | Includes $ 2 related to leveraged leases at June 30, 2017 . |
Credit Quality (Summary of the
Credit Quality (Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Allowance for Credit Losses | ||||||||
Individually evaluated for impairment | $ 224 | [1] | $ 230 | [2] | ||||
Collectively evaluated for impairment | 892 | [1] | 911 | [2] | ||||
Unallocated | 110 | [1] | 112 | [2] | ||||
Total allowance for loan and lease losses | 1,226 | [1],[3] | $ 1,238 | 1,253 | [2],[3] | $ 1,299 | $ 1,295 | $ 1,272 |
Individually evaluated for impairment | 1,751 | [4] | 1,927 | [5] | ||||
Collectively evaluated for impairment | 89,551 | [4] | 90,025 | [5] | ||||
Loans acquired with deteriorated credit quality | 2 | [4] | 3 | [5] | ||||
Total portfolio loans and leases | 91,304 | [4],[6] | 91,955 | [5],[7] | ||||
Commercial Portfolio Segment | ||||||||
Financing Receivable, Allowance for Credit Losses | ||||||||
Individually evaluated for impairment | 118 | [1],[8] | 118 | [2],[9] | ||||
Collectively evaluated for impairment | 699 | [1] | 713 | [2] | ||||
Unallocated | 0 | [1] | 0 | [2] | ||||
Total allowance for loan and lease losses | 817 | [1] | 826 | 831 | [2] | 873 | 867 | 840 |
Individually evaluated for impairment | 760 | [4],[8] | 904 | [5],[9] | ||||
Collectively evaluated for impairment | 55,545 | [4] | 55,548 | [5] | ||||
Loans acquired with deteriorated credit quality | 0 | [4] | 0 | [5] | ||||
Total portfolio loans and leases | 56,305 | [4] | 56,452 | [5] | ||||
Residential Mortgage Loans | ||||||||
Financing Receivable, Allowance for Credit Losses | ||||||||
Individually evaluated for impairment | 66 | [1] | 68 | [2] | ||||
Collectively evaluated for impairment | 27 | [1] | 28 | [2] | ||||
Unallocated | 0 | [1] | 0 | [2] | ||||
Total allowance for loan and lease losses | 93 | [1] | 96 | 96 | [2] | 98 | 98 | 100 |
Individually evaluated for impairment | 652 | [4] | 652 | [5] | ||||
Collectively evaluated for impairment | 14,664 | [4] | 14,253 | [5] | ||||
Loans acquired with deteriorated credit quality | 2 | [4] | 3 | [5] | ||||
Total portfolio loans and leases | 15,318 | [4] | 14,908 | [5] | ||||
Consumer Portfolio Segment | ||||||||
Financing Receivable, Allowance for Credit Losses | ||||||||
Individually evaluated for impairment | 40 | [1] | 44 | [2] | ||||
Collectively evaluated for impairment | 166 | [1] | 170 | [2] | ||||
Unallocated | 0 | [1] | 0 | [2] | ||||
Total allowance for loan and lease losses | 206 | [1] | 204 | 214 | [2] | 211 | 214 | 217 |
Individually evaluated for impairment | 339 | [4] | 371 | [5] | ||||
Collectively evaluated for impairment | 19,342 | [4] | 20,224 | [5] | ||||
Loans acquired with deteriorated credit quality | 0 | [4] | 0 | [5] | ||||
Total portfolio loans and leases | 19,681 | [4] | 20,595 | [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 | 110 | [1] | 112 | [2] | ||||
Total allowance for loan and lease losses | 110 | [1] | $ 112 | 112 | [2] | $ 117 | $ 116 | $ 115 |
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 June 30, 2017 . | |||||||
[2] | Includes $ 2 related to leveraged leases at December 31, 2016 . | |||||||
[3] | Includes $ 57 and $ 85 of cash and due from banks, $ 737 and $ 1,216 of portfolio loans and leases , $ (24) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 1 and $ 3 of other liabilities , and $ 618 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2017 and December 31, 2016 , respectively. For further information refer to Note 10 . | |||||||
[4] | Excludes $ 142 of residential mortgage loans measured at fair value and includes $ 7 06 of leveraged leases, net of unearned income at June 30, 2017 . | |||||||
[5] | Excludes $ 143 of residential mortga ge loans measured at fair value and includes $ 701 of leveraged leases, net of unearned income at December 31, 2016 . | |||||||
[6] | Excludes $ 142 of residential mortgage loans measured at fair value at June 30, 2017 . | |||||||
[7] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . | |||||||
[8] | Includes five restructured loans at June 30, 2017 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, 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 . |
Credit Quality (Summary of th67
Credit Quality (Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment) (Parenthetical) (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||||||
Financing Receivable, Allowance for Credit Losses | |||||||||||||
Allowance for loan and lease losses | $ 1,226 | [1],[2] | $ 1,299 | $ 1,226 | [1],[2] | $ 1,299 | $ 1,253 | [2],[3] | $ 1,238 | $ 1,295 | $ 1,272 | ||
Portfolio loans and leases | $ 91,304 | [4],[5] | $ 91,304 | [4],[5] | 91,955 | [6],[7] | |||||||
Number of contracts | 2,430 | [8],[9] | 2,669 | [10],[11] | 4,489 | [12],[13] | 5,679 | [14],[15] | |||||
Recorded investment | $ 1,725 | [16] | $ 1,725 | [16] | 1,901 | [17] | |||||||
Variable Interest Entity, Primary Beneficiary | |||||||||||||
Financing Receivable, Allowance for Credit Losses | |||||||||||||
Allowance for loan and lease losses | 24 | 24 | 26 | ||||||||||
Commercial | Variable Interest Entity, Primary Beneficiary | |||||||||||||
Financing Receivable, Allowance for Credit Losses | |||||||||||||
Allowance for loan and lease losses | 18 | $ 18 | $ 18 | ||||||||||
Number of contracts | 5 | 5 | |||||||||||
Recorded investment | 26 | $ 26 | $ 26 | ||||||||||
Leveraged Leases | |||||||||||||
Financing Receivable, Allowance for Credit Losses | |||||||||||||
Allowance for loan and lease losses | 2 | 2 | 2 | ||||||||||
Portfolio loans and leases | 706 | 706 | 701 | ||||||||||
Residential Mortgage Loans | |||||||||||||
Financing Receivable, Allowance for Credit Losses | |||||||||||||
Portfolio loans and leases at fair value | $ 142 | $ 142 | $ 143 | ||||||||||
[1] | Includes $ 2 related to leveraged leases at June 30, 2017 . | ||||||||||||
[2] | Includes $ 57 and $ 85 of cash and due from banks, $ 737 and $ 1,216 of portfolio loans and leases , $ (24) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 1 and $ 3 of other liabilities , and $ 618 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2017 and December 31, 2016 , respectively. For further information refer to Note 10 . | ||||||||||||
[3] | Includes $ 2 related to leveraged leases at December 31, 2016 . | ||||||||||||
[4] | Excludes $ 142 of residential mortgage loans measured at fair value and includes $ 7 06 of leveraged leases, net of unearned income at June 30, 2017 . | ||||||||||||
[5] | Excludes $ 142 of residential mortgage loans measured at fair value at June 30, 2017 . | ||||||||||||
[6] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . | ||||||||||||
[7] | Excludes $ 143 of residential mortga ge loans measured at fair value and includes $ 701 of leveraged leases, net of unearned income at December 31, 2016 . | ||||||||||||
[8] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | ||||||||||||
[9] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | ||||||||||||
[10] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | ||||||||||||
[11] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | ||||||||||||
[12] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | ||||||||||||
[13] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | ||||||||||||
[14] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | ||||||||||||
[15] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | ||||||||||||
[16] | Includes $ 224 , $ 639 and $ 294 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 244 , $ 13 an d $ 45 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at June 30, 2017 . | ||||||||||||
[17] | Includes $ 322 , $ 635 and $ 323 , respectively, of commercial, residential mortgage and consumer portfolio TDR s on accrual status and $ 192 , $ 17 and $ 48 , respectively , of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2016 . |
Credit Quality (Summary of th68
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Commercial Portfolio Segment by Class) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | ||
Financing Receivable, Modifications | ||||
Total loans and leases | $ 91,304 | [1],[2] | $ 91,955 | [3],[4] |
Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 56,305 | 56,452 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 40,914 | 41,676 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,385 | 3,360 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,483 | 3,539 | ||
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 4,366 | 3,903 | ||
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 4,157 | 3,974 | ||
Pass | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 53,207 | 53,274 | ||
Pass | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 38,281 | 38,844 | ||
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,207 | 3,168 | ||
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,358 | 3,466 | ||
Pass | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 4,320 | 3,902 | ||
Pass | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 4,041 | 3,894 | ||
Special Mention | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 1,389 | 1,335 | ||
Special Mention | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 1,151 | 1,204 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 76 | 72 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 31 | 4 | ||
Special Mention | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 46 | 1 | ||
Special Mention | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 85 | 54 | ||
Substandard | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 1,687 | 1,816 | ||
Substandard | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 1,460 | 1,604 | ||
Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 102 | 117 | ||
Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 94 | 69 | ||
Substandard | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 0 | 0 | ||
Substandard | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 31 | 26 | ||
Doubtful | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 22 | 27 | ||
Doubtful | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 22 | 24 | ||
Doubtful | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 0 | 3 | ||
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 $ 142 of residential mortgage loans measured at fair value and includes $ 7 06 of leveraged leases, net of unearned income at June 30, 2017 . | |||
[2] | Excludes $ 142 of residential mortgage loans measured at fair value at June 30, 2017 . | |||
[3] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . | |||
[4] | Excludes $ 143 of residential mortga ge loans measured at fair value and includes $ 701 of leveraged leases, net of unearned income at December 31, 2016 . |
Credit Quality (Summary of th69
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |||
Total loans and leases | $ 91,304 | [1],[2] | $ 91,955 | [3],[4] | |
Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 7,301 | 7,695 | |||
Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 9,318 | 9,983 | |||
Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 2,117 | 2,237 | |||
Other consumer loans and leases | Consumer Portfolio Segment | |||||
Total loans and leases | 945 | 680 | |||
Performing Financing Receivable | |||||
Total loans and leases | [5] | 34,870 | 35,366 | ||
Performing Financing Receivable | Residential Mortgage | Residential Mortgage Loans | |||||
Total loans and leases | [5] | 15,286 | 14,874 | ||
Performing Financing Receivable | Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 7,231 | 7,622 | |||
Performing Financing Receivable | Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 9,317 | 9,981 | |||
Performing Financing Receivable | Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 2,091 | 2,209 | |||
Performing Financing Receivable | Other consumer loans and leases | Consumer Portfolio Segment | |||||
Total loans and leases | 945 | 680 | |||
Nonperforming Financing Receivable | |||||
Total loans and leases | [5] | 129 | 137 | ||
Nonperforming Financing Receivable | Residential Mortgage | Residential Mortgage Loans | |||||
Total loans and leases | [5] | 32 | 34 | ||
Nonperforming Financing Receivable | Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 70 | 73 | |||
Nonperforming Financing Receivable | Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 1 | 2 | |||
Nonperforming Financing Receivable | Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 26 | 28 | |||
Nonperforming Financing Receivable | Other consumer loans and leases | Consumer Portfolio Segment | |||||
Total loans and leases | $ 0 | $ 0 | |||
[1] | Excludes $ 142 of residential mortgage loans measured at fair value and includes $ 7 06 of leveraged leases, net of unearned income at June 30, 2017 . | ||||
[2] | Excludes $ 142 of residential mortgage loans measured at fair value at June 30, 2017 . | ||||
[3] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . | ||||
[4] | Excludes $ 143 of residential mortga ge loans measured at fair value and includes $ 701 of leveraged leases, net of unearned income at December 31, 2016 . | ||||
[5] | (a) Excludes $ 142 and $ 143 of loans measured at fair value at June 30, 2017 and December 31, 2016 , respectively. |
Credit Quality (Summary of th70
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Residential Mortgage Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Portfolio loans and leases at fair value | $ 142 | $ 143 |
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 | Jun. 30, 2017 | Dec. 31, 2016 | ||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | $ 90,764 | [1],[2] | $ 91,339 | [3],[4] |
Total Past Due | 540 | [2] | 616 | [4] |
Total portfolio loans and leases | 91,304 | [2],[5] | 91,955 | [4],[6] |
90-Days past Due and Still Accruing | 75 | [2] | 84 | [4] |
30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 248 | [1],[2] | 315 | [3],[4] |
90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 292 | [1],[2] | 301 | [3],[4] |
Commercial Portfolio Segment | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total portfolio loans and leases | 56,305 | 56,452 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 40,761 | [1] | 41,495 | [3] |
Total Past Due | 153 | 181 | ||
Total portfolio loans and leases | 40,914 | 41,676 | ||
90-Days past Due and Still Accruing | 3 | 4 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 48 | [1] | 87 | [3] |
Commercial Portfolio Segment | Commercial and Industrial Loans | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 105 | [1] | 94 | [3] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 3,366 | [1] | 3,332 | [3] |
Total Past Due | 19 | 28 | ||
Total portfolio loans and leases | 3,385 | 3,360 | ||
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 | 4 | [1] | 6 | [3] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 15 | [1] | 22 | [3] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 3,468 | [1] | 3,530 | [3] |
Total Past Due | 15 | 9 | ||
Total portfolio loans and leases | 3,483 | 3,539 | ||
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 | 9 | [1] | 2 | [3] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 6 | [1] | 7 | [3] |
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 4,366 | [1] | 3,902 | [3] |
Total Past Due | 0 | 1 | ||
Total portfolio loans and leases | 4,366 | 3,903 | ||
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 | 0 | [1] | 1 | [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 | 4,154 | [1] | 3,972 | [3] |
Total Past Due | 3 | 2 | ||
Total portfolio loans and leases | 4,157 | 3,974 | ||
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] | 0 | [3] |
Commercial Portfolio Segment | Commercial Leases | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 3 | [1] | 2 | [3] |
Residential Mortgage | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 15,213 | [1],[2],[7] | 14,790 | [3],[4],[8] |
Total Past Due | 105 | [2],[7] | 118 | [4],[8] |
Total portfolio loans and leases | 15,318 | [2],[7] | 14,908 | [4],[8] |
90-Days past Due and Still Accruing | 45 | [2],[7] | 49 | [4],[8] |
Residential Mortgage | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 27 | [1],[2],[7] | 37 | [3],[4],[8] |
Residential Mortgage | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 78 | [1],[2],[7] | 81 | [3],[4],[8] |
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 7,183 | [1] | 7,570 | [3] |
Total Past Due | 118 | 125 | ||
Total portfolio loans and leases | 7,301 | 7,695 | ||
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 | 66 | [1] | 68 | [3] |
Consumer Portfolio Segment | Home Equity | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 52 | [1] | 57 | [3] |
Consumer Portfolio Segment | Automobile Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 9,245 | [1] | 9,886 | [3] |
Total Past Due | 73 | 97 | ||
Total portfolio loans and leases | 9,318 | 9,983 | ||
90-Days past Due and Still Accruing | 7 | 9 | ||
Consumer Portfolio Segment | Automobile Loans | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 64 | [1] | 85 | [3] |
Consumer Portfolio Segment | Automobile Loans | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 9 | [1] | 12 | [3] |
Consumer Portfolio Segment | Credit Card | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 2,065 | [1] | 2,183 | [3] |
Total Past Due | 52 | 54 | ||
Total portfolio loans and leases | 2,117 | 2,237 | ||
90-Days past Due and Still Accruing | 20 | 22 | ||
Consumer Portfolio Segment | Credit Card | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 28 | [1] | 28 | [3] |
Consumer Portfolio Segment | Credit Card | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 24 | [1] | 26 | [3] |
Consumer Portfolio Segment | Other Consumer Loans and Leases | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 943 | [1] | 679 | [3] |
Total Past Due | 2 | 1 | ||
Total portfolio loans and leases | 945 | 680 | ||
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 | 2 | [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 $ 142 of residential mortgage loans measured at fair value at June 30, 2017 . | |||
[3] | Includes accrual and nonaccrual loans and leases. | |||
[4] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . | |||
[5] | Excludes $ 142 of residential mortgage loans measured at fair value and includes $ 7 06 of leveraged leases, net of unearned income at June 30, 2017 . | |||
[6] | Excludes $ 143 of residential mortga ge loans measured at fair value and includes $ 701 of leveraged leases, net of unearned income at December 31, 2016 . | |||
[7] | Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. These advances were $ 280 a s of June 30, 2017 , of which $ 7 9 of these loans were 30-89 days past due and $ 179 were 90 days or more past due. The Bancorp recognized $ 1 and $ 3 of losses during the three and six months ended June 30, 2017 , respectively, due to claim denials and curtailments associated with these insured or guaranteed loans. | |||
[8] | Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA . These advances were $ 312 as of December 31, 2016 , of which $ 110 of these loa ns were 30-89 days past due and $ 202 were 90 days or more past due. The Bancorp recognized $ 1 and $ 3 of losses during the three and six months ended June 30, 2016, respectively, due to claim denials and cu rtailments associated with these insured or guaranteed loans . |
Credit Quality (Summarizes th72
Credit Quality (Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||||
Financing Receivable, Recorded Investment, Past Due | ||||||||
Total Past Due | $ 540 | [1] | $ 540 | [1] | $ 616 | [2] | ||
30-89 Days Past Due | ||||||||
Financing Receivable, Recorded Investment, Past Due | ||||||||
Total Past Due | 248 | [1],[3] | 248 | [1],[3] | 315 | [2],[4] | ||
90 Days and Greater Past Due | ||||||||
Financing Receivable, Recorded Investment, Past Due | ||||||||
Total Past Due | 292 | [1],[3] | 292 | [1],[3] | 301 | [2],[4] | ||
Residential Mortgage Loans | ||||||||
Financing Receivable, Recorded Investment, Past Due | ||||||||
Portfolio loans and leases at fair value | 142 | 142 | 143 | |||||
Residential Mortgage Loans | Federal Housing Administration Loan | ||||||||
Financing Receivable, Recorded Investment, Past Due | ||||||||
Total Past Due | 280 | 280 | 312 | |||||
Losses Due To Claim Denials And Curtailments | 1 | $ 1 | 3 | $ 3 | ||||
Residential Mortgage Loans | Federal Housing Administration Loan | 30-89 Days Past Due | ||||||||
Financing Receivable, Recorded Investment, Past Due | ||||||||
Total Past Due | 79 | 79 | 110 | |||||
Residential Mortgage Loans | Federal Housing Administration Loan | 90 Days and Greater Past Due | ||||||||
Financing Receivable, Recorded Investment, Past Due | ||||||||
Total Past Due | $ 179 | $ 179 | $ 202 | |||||
[1] | Excludes $ 142 of residential mortgage loans measured at fair value at June 30, 2017 . | |||||||
[2] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . | |||||||
[3] | Includes accrual and nonaccrual loans and leases. | |||||||
[4] | Includes accrual and nonaccrual loans and leases. |
Credit Quality (Summarizes th73
Credit Quality (Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | ||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | $ 1,181 | $ 1,210 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 660 | 842 | ||
Unpaid Principal Balance | 1,841 | 2,052 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 1,114 | 1,168 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 611 | 733 | ||
Recorded investment | 1,725 | [1] | 1,901 | [2] |
Allowance | 206 | 212 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 450 | 440 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 276 | 394 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 394 | 414 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 255 | 320 | ||
Allowance | 90 | 94 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 21 | [3] | 24 | [4] |
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 30 | 36 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 15 | [3] | 16 | [4] |
Impaired Financing Receivable With No Related Allowance Recorded Investment | 25 | 35 | ||
Allowance | 9 | [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 | 4 | 7 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 39 | 93 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 3 | 6 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 39 | 83 | ||
Allowance | 1 | 1 | ||
Commercial Portfolio Segment | Commercial Leases | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 2 | |||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 3 | 2 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 2 | |||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 3 | 2 | ||
Allowance | 0 | |||
Residential Mortgage Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 462 | 471 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 213 | 207 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 459 | 465 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 193 | 187 | ||
Allowance | 66 | 68 | ||
Consumer Portfolio Segment | Home Equity | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 188 | 202 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 97 | 107 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 187 | 201 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 94 | 104 | ||
Allowance | 27 | 30 | ||
Consumer Portfolio Segment | Automobile Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 9 | 12 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 2 | 3 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 9 | 12 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 2 | 2 | ||
Allowance | 1 | 2 | ||
Consumer Portfolio Segment | Credit Card | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 47 | 52 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 47 | 52 | ||
Allowance | $ 12 | $ 12 | ||
[1] | Includes $ 224 , $ 639 and $ 294 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 244 , $ 13 an d $ 45 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at June 30, 2017 . | |||
[2] | Includes $ 322 , $ 635 and $ 323 , respectively, of commercial, residential mortgage and consumer portfolio TDR s on accrual status and $ 192 , $ 17 and $ 48 , respectively , of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2016 . | |||
[3] | Excludes five restructured loans at June 30, 2017 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 , respectively . | |||
[4] | Excludes 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 an unpaid principal balance of $ 26 , a recorded investment of $ 26 and an ALLL of $ 18 . |
Credit Quality (Summarizes th74
Credit Quality (Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class) (Parenthetical) (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2017USD ($) | Jun. 30, 2016 | Jun. 30, 2017USD ($) | Jun. 30, 2016 | Dec. 31, 2016USD ($) | ||||||
Financing Receivable, Impaired | ||||||||||
Unpaid principal balance | $ 1,841 | $ 1,841 | $ 2,052 | |||||||
Recorded investment | 1,725 | [1] | 1,725 | [1] | 1,901 | [2] | ||||
Allowance | $ 206 | $ 206 | 212 | |||||||
Number of contracts | 2,430 | [3],[4] | 2,669 | [5],[6] | 4,489 | [7],[8] | 5,679 | [9],[10] | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||||||||
Financing Receivable, Impaired | ||||||||||
Allowance | $ 9 | [11] | $ 9 | [11] | 5 | [12] | ||||
Number of contracts | 2 | [3],[4] | 3 | [5],[6] | 7 | [7],[8] | 10 | [9],[10] | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | Variable Interest Entity, Primary Beneficiary | ||||||||||
Financing Receivable, Impaired | ||||||||||
Unpaid principal balance | $ 26 | $ 26 | 26 | |||||||
Recorded investment | 26 | 26 | 26 | |||||||
Allowance | $ 18 | $ 18 | $ 18 | |||||||
Number of contracts | 5 | 5 | 5 | 5 | 5 | |||||
Commercial Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ||||||||||
Financing Receivable, Impaired | ||||||||||
Recorded investment | $ 224 | $ 224 | $ 322 | |||||||
Commercial Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | ||||||||||
Financing Receivable, Impaired | ||||||||||
Recorded investment | 244 | 244 | 192 | |||||||
Residential Mortgage Loans | ||||||||||
Financing Receivable, Impaired | ||||||||||
Allowance | $ 66 | $ 66 | 68 | |||||||
Number of contracts | 199 | [3],[4] | 262 | [5],[6] | 402 | [7],[8] | 505 | [9],[10] | ||
Residential Mortgage Loans | Troubled Debt Restructuring On Accrual Status | ||||||||||
Financing Receivable, Impaired | ||||||||||
Recorded investment | $ 639 | $ 639 | 635 | |||||||
Residential Mortgage Loans | Troubled Debt Restructuring On Nonaccrual Status | ||||||||||
Financing Receivable, Impaired | ||||||||||
Recorded investment | 13 | 13 | 17 | |||||||
Consumer Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ||||||||||
Financing Receivable, Impaired | ||||||||||
Recorded investment | 294 | 294 | 323 | |||||||
Consumer Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | ||||||||||
Financing Receivable, Impaired | ||||||||||
Recorded investment | $ 45 | $ 45 | $ 48 | |||||||
[1] | Includes $ 224 , $ 639 and $ 294 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 244 , $ 13 an d $ 45 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at June 30, 2017 . | |||||||||
[2] | Includes $ 322 , $ 635 and $ 323 , respectively, of commercial, residential mortgage and consumer portfolio TDR s on accrual status and $ 192 , $ 17 and $ 48 , respectively , of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2016 . | |||||||||
[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] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||||||||
[6] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | |||||||||
[7] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||||||||
[8] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | |||||||||
[9] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||||||||
[10] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | |||||||||
[11] | Excludes five restructured loans at June 30, 2017 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 , respectively . | |||||||||
[12] | Excludes 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 an unpaid principal balance of $ 26 , a recorded investment of $ 26 and an ALLL of $ 18 . |
Credit Quality (Summary of Aver
Credit Quality (Summary of Average Impaired Loans and Leases and Interest Income by Class) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||||
Financing Receivable, Impaired | ||||||||
Average Recorded Investment | $ 1,743 | $ 2,045 | $ 1,796 | $ 1,978 | ||||
Interest Income Recognized | 11 | 13 | 23 | 29 | ||||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||||||
Financing Receivable, Impaired | ||||||||
Average Recorded Investment | 635 | 762 | 668 | 684 | ||||
Interest Income Recognized | 1 | 2 | 2 | 4 | ||||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||||||
Financing Receivable, Impaired | ||||||||
Average Recorded Investment | 38 | [1] | 68 | [2] | 42 | [1] | 69 | [2] |
Interest Income Recognized | 0 | [1] | 0 | [2] | 0 | [1] | 1 | [2] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||||||
Financing Receivable, Impaired | ||||||||
Average Recorded Investment | 66 | 152 | 73 | 160 | ||||
Interest Income Recognized | 0 | 1 | 1 | 3 | ||||
Commercial Portfolio Segment | Commercial Construction Loans | ||||||||
Financing Receivable, Impaired | ||||||||
Average Recorded Investment | 2 | 4 | ||||||
Interest Income Recognized | 0 | 0 | ||||||
Commercial Portfolio Segment | Commercial Leases | ||||||||
Financing Receivable, Impaired | ||||||||
Average Recorded Investment | 2 | 6 | 3 | 5 | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 | ||||
Residential Mortgage Loans | ||||||||
Financing Receivable, Impaired | ||||||||
Average Recorded Investment | 654 | 651 | 653 | 644 | ||||
Interest Income Recognized | 6 | 6 | 12 | 12 | ||||
Consumer Portfolio Segment | Home Equity | ||||||||
Financing Receivable, Impaired | ||||||||
Average Recorded Investment | 287 | 329 | 293 | 336 | ||||
Interest Income Recognized | 3 | 3 | 6 | 6 | ||||
Consumer Portfolio Segment | Automobile Loans | ||||||||
Financing Receivable, Impaired | ||||||||
Average Recorded Investment | 12 | 18 | 13 | 18 | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 | ||||
Consumer Portfolio Segment | Credit Card | ||||||||
Financing Receivable, Impaired | ||||||||
Average Recorded Investment | 49 | 57 | 51 | 58 | ||||
Interest Income Recognized | $ 1 | $ 1 | $ 2 | $ 3 | ||||
[1] | (a) Excludes five restructured loans associated with a consolidated VIE in which the Bancorp has no continu ing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 2 6 and an immaterial amount of interest income recognized for both the three and six months ended June 30, 2017 | |||||||
[2] | (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 $ 27 and an immaterial amount of interest income recognized for both the three and six months ended June 30, 2016 . |
Credit Quality (Summary of Av76
Credit Quality (Summary of Average Impaired Loans and Leases and Interest Income by Class) (Parenthetical) (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016 | |||||
Financing Receivable, Impaired | |||||||||
Average Recorded Investment | $ 1,743 | $ 2,045 | $ 1,796 | $ 1,978 | |||||
Number of contracts | 2,430 | [1],[2] | 2,669 | [3],[4] | 4,489 | [5],[6] | 5,679 | [7],[8] | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | |||||||||
Financing Receivable, Impaired | |||||||||
Average Recorded Investment | $ 38 | [9] | $ 68 | [10] | $ 42 | [9] | $ 69 | [10] | |
Number of contracts | 2 | [1],[2] | 3 | [3],[4] | 7 | [5],[6] | 10 | [7],[8] | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | Variable Interest Entity, Primary Beneficiary | |||||||||
Financing Receivable, Impaired | |||||||||
Average Recorded Investment | $ 26 | $ 27 | $ 26 | $ 27 | |||||
Number of contracts | 5 | 5 | 5 | 5 | 5 | ||||
[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] | 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] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | ||||||||
[6] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | ||||||||
[7] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | ||||||||
[8] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | ||||||||
[9] | (a) Excludes five restructured loans associated with a consolidated VIE in which the Bancorp has no continu ing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 2 6 and an immaterial amount of interest income recognized for both the three and six months ended June 30, 2017 | ||||||||
[10] | (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 $ 27 and an immaterial amount of interest income recognized for both the three and six months ended June 30, 2016 . |
Credit Quality (Summary of th77
Credit Quality (Summary of the Bancorp's Nonperforming Loans and Leases by Class) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | [1],[2] | $ 614 | $ 660 |
OREO and other repossessed property | 48 | 78 | |
Nonperforming portfolio assets | [1],[2] | 662 | 738 |
Commercial Portfolio Segment | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 485 | 523 | |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 447 | 478 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | [3] | 27 | 32 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 8 | 9 | |
Commercial Portfolio Segment | Commercial Leases | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 3 | 4 | |
Residential Mortgage Loans | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 32 | 34 | |
Consumer Portfolio Segment | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 97 | 103 | |
Consumer Portfolio Segment | Home Equity | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 70 | 73 | |
Consumer Portfolio Segment | Automobile Loans | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 1 | 2 | |
Consumer Portfolio Segment | Credit Card | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | $ 26 | $ 28 | |
[1] | Excludes $ 8 and $ 1 3 of nonaccrual loans held for sale at June 30, 2017 and December 31, 2016 , respectively. | ||
[2] | Includes $ 4 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at both June 30, 2017 and Dec ember 31, 2016 and $ 1 of restructured nonaccrual government insured commercial loans at both June 30, 2017 and December 31, 2016 . | ||
[3] | Excludes $ 19 of restructured nonaccrual loans at both June 30, 2017 and 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. |
Credit Quality (Summary of th78
Credit Quality (Summary of the Bancorp's Nonperforming Loans and Leases by Class) (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |||
Financing Receivable, Modifications | |||||
Loans held for sale | [1] | $ 766 | $ 751 | ||
OREO and other repossessed property | 48 | 78 | |||
Portfolio loans and leases | 91,304 | [2],[3] | 91,955 | [4],[5] | |
Commercial Portfolio Segment | |||||
Financing Receivable, Modifications | |||||
Portfolio loans and leases | 56,305 | 56,452 | |||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | |||||
Financing Receivable, Modifications | |||||
Portfolio loans and leases | 3,385 | 3,360 | |||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | Variable Interest Entity, Primary Beneficiary | |||||
Financing Receivable, Modifications | |||||
Restructured nonaccrual loans and leases | 19 | 19 | |||
Nonperforming Financing Receivable | |||||
Financing Receivable, Modifications | |||||
Loans held for sale | 8 | 13 | |||
Portfolio loans and leases | [6] | 129 | 137 | ||
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment | |||||
Financing Receivable, Modifications | |||||
Restructured nonaccrual loans and leases | 1 | 1 | |||
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment | Small Business Administration | |||||
Financing Receivable, Modifications | |||||
Portfolio loans and leases | $ 4 | $ 4 | |||
[1] | Includes $ 674 and $ 686 of residential mortgage loans held for sale measured at fair value at June 30, 2017 and December 31, 2016 , respectively. | ||||
[2] | Excludes $ 142 of residential mortgage loans measured at fair value and includes $ 7 06 of leveraged leases, net of unearned income at June 30, 2017 . | ||||
[3] | Excludes $ 142 of residential mortgage loans measured at fair value at June 30, 2017 . | ||||
[4] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . | ||||
[5] | Excludes $ 143 of residential mortga ge loans measured at fair value and includes $ 701 of leveraged leases, net of unearned income at December 31, 2016 . | ||||
[6] | (a) Excludes $ 142 and $ 143 of loans measured at fair value at June 30, 2017 and December 31, 2016 , respectively. |
Credit Quality (Credit Quality
Credit Quality (Credit Quality Additional Information) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Troubled Debt Restructuring | ||
Line of credit commitments for modified troubled debt restructurings | $ 60 | $ 82 |
Letter of credit commitments for modified troubled debt restructurings | 64 | 57 |
Mortgage loans in process of foreclosure amount | 255 | $ 260 |
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 | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017USD ($) | [2] | Jun. 30, 2016USD ($) | [4] | Jun. 30, 2017USD ($) | [6] | Jun. 30, 2016USD ($) | [8] | |
Financing Receivable, Modifications | ||||||||
Number of Loans Modified in a TDR During the Period | 2,430 | [1] | 2,669 | [3] | 4,489 | [5] | 5,679 | [7] |
Recorded Investment in Loans Modified in a TDR During the Period | $ 103 | $ 119 | $ 240 | $ 235 | ||||
Increase (Decrease) to ALLL Upon Modification | 9 | 16 | 13 | 16 | ||||
Charge-offs Recognized Upon Modification | $ 5 | $ 1 | $ 7 | $ 2 | ||||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||||||
Financing Receivable, Modifications | ||||||||
Number of Loans Modified in a TDR During the Period | 17 | [1] | 20 | [3] | 50 | [5] | 44 | [7] |
Recorded Investment in Loans Modified in a TDR During the Period | $ 56 | $ 61 | $ 153 | $ 117 | ||||
Increase (Decrease) to ALLL Upon Modification | 1 | 11 | 2 | 9 | ||||
Charge-offs Recognized Upon Modification | $ 4 | $ 0 | $ 6 | $ 0 | ||||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||||||
Financing Receivable, Modifications | ||||||||
Number of Loans Modified in a TDR During the Period | 2 | [1] | 3 | [3] | 7 | [5] | 10 | [7] |
Recorded Investment in Loans Modified in a TDR During the Period | $ 6 | $ 2 | $ 8 | $ 8 | ||||
Increase (Decrease) to ALLL Upon Modification | 5 | 0 | 5 | (2) | ||||
Charge-offs Recognized Upon Modification | $ 0 | $ 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 | [1] | 2 | [3] | 2 | [5] | 4 | [7] |
Recorded Investment in Loans Modified in a TDR During the Period | $ 0 | $ 5 | $ 0 | $ 5 | ||||
Increase (Decrease) to ALLL Upon Modification | 0 | 1 | 0 | 1 | ||||
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Residential Mortgage Loans | ||||||||
Financing Receivable, Modifications | ||||||||
Number of Loans Modified in a TDR During the Period | 199 | [1] | 262 | [3] | 402 | [5] | 505 | [7] |
Recorded Investment in Loans Modified in a TDR During the Period | $ 28 | $ 37 | $ 57 | $ 73 | ||||
Increase (Decrease) to ALLL Upon Modification | 1 | 2 | 3 | 4 | ||||
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Consumer Portfolio Segment | Home Equity | ||||||||
Financing Receivable, Modifications | ||||||||
Number of Loans Modified in a TDR During the Period | 44 | [1] | 62 | [3] | 75 | [5] | 126 | [7] |
Recorded Investment in Loans Modified in a TDR During the Period | $ 3 | $ 2 | $ 5 | $ 7 | ||||
Increase (Decrease) to ALLL Upon Modification | 0 | 0 | 0 | 0 | ||||
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Consumer Portfolio Segment | Automobile Loans | ||||||||
Financing Receivable, Modifications | ||||||||
Number of Loans Modified in a TDR During the Period | 15 | [1] | 58 | [3] | 45 | [5] | 136 | [7] |
Recorded Investment in Loans Modified in a TDR During the Period | $ 0 | $ 1 | $ 0 | $ 2 | ||||
Increase (Decrease) to ALLL Upon Modification | 0 | 0 | 0 | 0 | ||||
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Consumer Portfolio Segment | Credit Card | ||||||||
Financing Receivable, Modifications | ||||||||
Number of Loans Modified in a TDR During the Period | 2,152 | [1] | 2,262 | [3] | 3,908 | [5] | 4,854 | [7] |
Recorded Investment in Loans Modified in a TDR During the Period | $ 10 | $ 11 | $ 17 | $ 23 | ||||
Increase (Decrease) to ALLL Upon Modification | 2 | 2 | 3 | 4 | ||||
Charge-offs Recognized Upon Modification | $ 1 | $ 1 | $ 1 | $ 2 | ||||
[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] | 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] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||||||
[6] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | |||||||
[7] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||||||
[8] | 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 | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | ||
Financing Receivable, Modifications | |||||
Number of contracts | [1] | 424 | 389 | 938 | 873 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 22 | $ 9 | $ 35 | $ 19 |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||||
Financing Receivable, Modifications | |||||
Number of contracts | [1] | 2 | 2 | 4 | 3 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 15 | $ 3 | $ 16 | $ 3 |
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 | $ 1 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | |||||
Financing Receivable, Modifications | |||||
Number of contracts | [1] | 1 | 2 | ||
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 0 | $ 0 | ||
Residential Mortgage Loans | |||||
Financing Receivable, Modifications | |||||
Number of contracts | [1] | 26 | 33 | 83 | 86 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 3 | $ 5 | $ 12 | $ 12 |
Consumer Portfolio Segment | Home Equity | |||||
Financing Receivable, Modifications | |||||
Number of contracts | [1] | 6 | 2 | 11 | 8 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 1 | $ 0 | $ 2 | $ 1 |
Consumer Portfolio Segment | Credit Card | |||||
Financing Receivable, Modifications | |||||
Number of contracts | [1] | 387 | 351 | 837 | 774 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 2 | $ 1 | $ 4 | $ 3 |
[1] | (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. |
Bank Premises & Equipment (Bank
Bank Premises & Equipment (Bank Premises and Equipment) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Bank Premises and Equipment | |||
Land and improvements | [1] | $ 647 | $ 663 |
Buildings | [1] | 1,574 | 1,672 |
Equipment | 1,762 | 1,761 | |
Leasehold improvements | 394 | 398 | |
Construction in progress | [1] | 120 | 99 |
Land and improvements held for sale | 28 | 29 | |
Buildings held for sale | 12 | 9 | |
Equipment held for sale | 1 | 1 | |
Accumulated depreciation and amortization | (2,497) | (2,567) | |
Total bank premises and equipment | [2] | $ 2,041 | $ 2,065 |
[1] | (a ) At June 30, 2017 and December 31, 2016 , land and improvements , buildings and construction in progress included $ 91 and $ 92 , respectively, associated w ith parcels of undeveloped land intended for future branch expansion. | ||
[2] | Includes $ 41 and $ 39 of bank premises and equipment held for sale at June 30, 2017 and December 31, 2016 , respectively. For further information refer to Note 7 . |
Bank Premises & Equipment (Ba83
Bank Premises & Equipment (Bank Premises and Equipment) (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Bank Premises and Equipment | |||
Land and improvements | [1] | $ 647 | $ 663 |
Branches and undeveloped parcels of land | |||
Bank Premises and Equipment | |||
Land and improvements | $ 91 | $ 92 | |
[1] | (a ) At June 30, 2017 and December 31, 2016 , land and improvements , buildings and construction in progress included $ 91 and $ 92 , respectively, associated w ith parcels of undeveloped land intended for future branch expansion. |
Bank Premises & Equipment (Ba84
Bank Premises & Equipment (Bank Premises and Equipment - Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Branch Banking | ||||
Bank Premises and Equipment | ||||
Bank premises impairment | $ 2 | $ 1 | $ 5 | $ 3 |
Operating Lease Equipment (Addi
Operating Lease Equipment (Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Operating Lease Equipment | ||||
Other Asset Impairment Charges | $ (19) | $ (5) | [1] | |
Operating lease equipment | Commercial Banking | ||||
Operating Lease Equipment | ||||
Other Asset Impairment Charges | $ 5 | $ 31 | $ 5 | |
[1] | Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016. |
Intangible Assets (Intangible A
Intangible Assets (Intangible Assets - Additional Information) (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Intangible Assets by Major Class [Abstract] | ||
Amortization of Intangible Assets | $ 1 | $ 1 |
Intangible Assets (Intangible87
Intangible Assets (Intangible Assets) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 59 | $ 49 |
Accumulated Amortization | (41) | (40) |
Net Carrying Amount | 18 | 9 |
Core Deposits | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 34 | 34 |
Accumulated Amortization | (28) | (27) |
Net Carrying Amount | 6 | 7 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 25 | 15 |
Accumulated Amortization | (13) | (13) |
Net Carrying Amount | $ 12 | $ 2 |
Intangible Assets (Estimated Am
Intangible Assets (Estimated Amortization Expense Other Intangible Assets) (Detail) - Other Intangible Assets $ in Millions | Jun. 30, 2017USD ($) |
Finite-Lived Intangible Assets | |
Remainder of 2017 | $ 1 |
2,018 | 2 |
2,019 | 2 |
2,020 | 2 |
2,021 | $ 2 |
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 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | ||||
Assets | ||||||||||
Cash and due from banks | $ 2,203 | [1] | $ 2,392 | [1] | $ 2,359 | $ 2,540 | [1] | |||
Commercial mortgage loans | 6,868 | 6,899 | ||||||||
Automobile loans | 9,318 | 9,983 | ||||||||
ALLL | (1,226) | [1],[2] | $ (1,238) | (1,253) | [1],[3] | $ (1,299) | $ (1,295) | $ (1,272) | ||
Other assets | [1] | 6,974 | 7,844 | |||||||
Liabilities | ||||||||||
Other liabilities | [1] | 2,162 | 2,269 | |||||||
Long-term debt | [1] | 13,456 | 14,388 | |||||||
Noncontrolling interests | 27 | 27 | ||||||||
Variable Interest Entity, Primary Beneficiary | ||||||||||
Assets | ||||||||||
Cash and due from banks | 57 | 85 | ||||||||
Commercial mortgage loans | 46 | 46 | ||||||||
Automobile loans | 691 | 1,170 | ||||||||
ALLL | (24) | (26) | ||||||||
Other assets | 7 | 9 | ||||||||
Total Assets | 777 | 1,284 | ||||||||
Liabilities | ||||||||||
Other liabilities | 1 | 3 | ||||||||
Long-term debt | 618 | 1,094 | ||||||||
Total liabilities | 619 | 1,097 | ||||||||
Noncontrolling interests | 27 | 27 | ||||||||
Variable Interest Entity, Primary Beneficiary | Automobile Loans | ||||||||||
Assets | ||||||||||
Cash and due from banks | 56 | 84 | ||||||||
Commercial mortgage loans | 0 | 0 | ||||||||
Automobile loans | 691 | 1,170 | ||||||||
ALLL | (4) | (6) | ||||||||
Other assets | 7 | 9 | ||||||||
Total Assets | 750 | 1,257 | ||||||||
Liabilities | ||||||||||
Other liabilities | 1 | 3 | ||||||||
Long-term debt | 618 | 1,094 | ||||||||
Total liabilities | 619 | 1,097 | ||||||||
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 | 46 | ||||||||
Automobile loans | 0 | 0 | ||||||||
ALLL | (20) | (20) | ||||||||
Other assets | 0 | 0 | ||||||||
Total Assets | 27 | 27 | ||||||||
Liabilities | ||||||||||
Other liabilities | 0 | 0 | ||||||||
Long-term debt | 0 | 0 | ||||||||
Total liabilities | 0 | 0 | ||||||||
Noncontrolling interests | $ 27 | $ 27 | ||||||||
[1] | Includes $ 57 and $ 85 of cash and due from banks, $ 737 and $ 1,216 of portfolio loans and leases , $ (24) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 1 and $ 3 of other liabilities , and $ 618 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2017 and December 31, 2016 , respectively. For further information refer to Note 10 . | |||||||||
[2] | Includes $ 2 related to leveraged leases at June 30, 2017 . | |||||||||
[3] | Includes $ 2 related to leveraged leases at December 31, 2016 . |
VIE (Variable Interest Entities
VIE (Variable Interest Entities - Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||
Variable Interest Entity | ||||||
OTTI | [1] | $ 14 | $ 3 | $ 24 | $ 5 | |
Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments | ||||||
Variable Interest Entity | ||||||
Maximum Exposure | 34 | 34 | $ 31 | |||
Variable Interest Entity, Not Primary Beneficiary | Loans Provided to VIEs | ||||||
Variable Interest Entity | ||||||
Unfunded commitment amounts | 940 | 940 | 937 | |||
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments | ||||||
Variable Interest Entity | ||||||
Maximum Exposure | 1,495 | 1,495 | 1,421 | |||
Bancorp's Investment in Affordable Housing Tax Credits | 1,495 | 1,495 | 1,421 | |||
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 | 1,400 | 1,400 | 1,300 | |||
Unfunded commitments | $ 412 | 412 | 349 | |||
Unfunded commitments expected funding date | 2,034 | |||||
Variable Interest Entity, Not Primary Beneficiary | Private Equity Investments | ||||||
Variable Interest Entity | ||||||
Maximum Exposure | $ 170 | 170 | 232 | |||
Bancorp's Investment in Affordable Housing Tax Credits | 116 | 116 | 176 | |||
Unfunded commitment amounts | 54 | 54 | $ 56 | |||
Capital Contribution To Private Equity Investments | 6 | 7 | 8 | |||
OTTI | $ 0 | $ 0 | $ 0 | $ 0 | ||
[1] | (a) Included in securities gains, net in the Condensed 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 | Jun. 30, 2017 | Dec. 31, 2016 |
Fifth Third Community Development Corporation Investments | ||
Variable Interest Entity | ||
Total Assets | $ 1,495 | $ 1,421 |
Total Liabilities | 413 | 357 |
Maximum Exposure | 1,495 | 1,421 |
Private Equity Investments | ||
Variable Interest Entity | ||
Total Assets | 116 | 176 |
Total Liabilities | 0 | 0 |
Maximum Exposure | 170 | 232 |
Loans Provided to VIEs | ||
Variable Interest Entity | ||
Total Assets | 2,060 | 1,735 |
Total Liabilities | 0 | 0 |
Maximum Exposure | $ 3,000 | $ 2,672 |
VIE (Investments in Qualified A
VIE (Investments in Qualified Affordable Housing Tax Credits) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Other noninterest expense | |||||
Schedule of Equity Method Investments | |||||
Pre-tax investment and impairment losses | [1] | $ 35 | $ 37 | $ 72 | $ 73 |
Applicable income tax expense | |||||
Schedule of Equity Method Investments | |||||
Tax credits and other benefits | $ (56) | $ (56) | $ (112) | $ (111) | |
[1] | (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credi ts or other circumstances during both the three and six months ended June 30, 2017 and 2016 . |
MSR (Activity Related to Mortga
MSR (Activity Related to Mortgage Banking Net Revenue) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale | |||||
Residential mortgage loan sales | [1] | $ 1,518 | $ 1,631 | $ 3,147 | $ 2,745 |
Origination fees and gains on loan sales | 37 | 54 | 66 | 95 | |
Gross Mortgage Servicing Fees | $ 49 | $ 50 | $ 97 | $ 102 | |
[1] | Represents the unpaid principal balance at the time of the sale. |
MSR (Changes in the Servicing A
MSR (Changes in the Servicing Assets) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | [1] | |||
Servicing Assets at Fair Value | |||||||
Carrying amount before valuation allowance as of the beginning of the period | $ 1,204 | ||||||
Servicing rights that result from the transfer of residential mortgage loans | 28 | ||||||
Amortization | $ (35) | (61) | |||||
Carrying amount before valuation allowance | 1,171 | 1,171 | |||||
Valuation allowance for servicing rights: | |||||||
Beginning balance | (419) | ||||||
(Provision for) recovery of MSR impairment | (131) | ||||||
Ending balance | (550) | (550) | |||||
Carrying amount as of the end of the period | $ 621 | $ 849 | [1] | $ 621 | $ 744 | ||
Fair value at beginning of period | 744 | ||||||
Servicing rights originated | 66 | ||||||
Servicing rights acquired | 109 | ||||||
Changes in fair value due to changes in inputs or assumptions | [2] | (13) | |||||
Changes in fair value due to other changes in fair value | [3] | (57) | |||||
Fair value at end of period | $ 849 | ||||||
[1] | Effective January 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its r esidential mortgage servicing rights. The servicing rights were measured at fair value at June 30, 2017 and were measured under the amortization method at December 31, 2016. For further information refer to Note 11 . | ||||||
[2] | Primarily reflects changes in prepayment speed and OAS spread assumptions which are updated based on market interest rates | ||||||
[3] | Pr imarily reflects changes due to collection of contractual cash flows and the passage of time |
MSR (Fair Value of the Servicin
MSR (Fair Value of the Servicing Rights) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Servicing Assets at Fair Value | |||
Fair value at beginning of period | $ 744 | ||
Fair value at end of period | 849 | $ 744 | |
Fixed Rate Residential Mortgage Loans | |||
Servicing Assets at Fair Value | |||
Fair value at beginning of period | 722 | 598 | $ 757 |
Fair value at end of period | 830 | 722 | 598 |
Adjustable Rate Residential Mortgage Loans | |||
Servicing Assets at Fair Value | |||
Fair value at beginning of period | 22 | 23 | 27 |
Fair value at end of period | 19 | 22 | 23 |
Fixed Rate Automobile Loans | |||
Servicing Assets at Fair Value | |||
Fair value at beginning of period | 0 | 0 | 1 |
Fair value at end of period | $ 0 | $ 0 | $ 0 |
MSR (Activity Related to the MS
MSR (Activity Related to the MSR Portfolio) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Servicing Assets at Fair Value | ||||||
Securities gains, net - non-qualifying hedges on mortgage servcing rights | $ 2 | $ 0 | $ 2 | $ 0 | ||
MSR Fair Value Adjustment | [1] | 70 | 0 | [2] | ||
Recovery of (provision for) MSR impairment (Mortgage banking net revenue) | [1] | 0 | (131) | [2] | ||
Mortgage Banking Revenue | ||||||
Servicing Assets at Fair Value | ||||||
MSR Fair Value Adjustment | (47) | 0 | (70) | 0 | ||
Recovery of (provision for) MSR impairment (Mortgage banking net revenue) | 0 | 45 | 0 | 131 | ||
Interest Rate Contract | Servicing Rights | Mortgage Banking Revenue | ||||||
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) | [1] | $ 16 | $ 51 | $ 15 | $ 149 | |
[1] | (a) Included in mortgage banking net revenue in the Condensed Consolidated Statements of Income. | |||||
[2] | Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016. |
MSR (Servicing Assets and Resid
MSR (Servicing Assets and Residual Interests Economic Assumptions) (Detail) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Fixed Rate Residential Mortgage Loans | ||
Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 7 years | 6 years 8 months 12 days |
Prepayment Speed (annual) | 10.30% | 11.90% |
OAS spread (bps) | 4.92% | 5.48% |
Adjustable Rate Residential Mortgage Loans | ||
Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 3 years | 2 years 10 months 24 days |
Prepayment Speed (annual) | 29.80% | 29.80% |
OAS spread (bps) | 6.59% | 6.83% |
MSR (Sales of Receivables and S
MSR (Sales of Receivables and Servicing Rights - Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | |
Disclosure - Activity Related to Mortgage Banking Net Revenue [Abstract] | ||||
Sevicing of residential mortgage loans for other investors | $ 61,800 | $ 53,600 | ||
Amortization | $ (35) | $ (61) |
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 | 3 Months Ended | |
Jun. 30, 2017USD ($) | [1] | |
Fixed Rate Residential Mortgage Loans | ||
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 | $ 830 | |
Weighted- Average Life (in years) | 5 years 10 months 24 days | |
Prepayment Speed (annual) | 11.50% | |
Impact of Adverse Change on Fair Value 10% | $ (37) | |
Impact of Adverse Change on Fair Value 20% | (71) | |
Impact of Adverse Change on Fair Value 50% | $ (161) | |
OAS spread (bps) | 5.30% | |
Impact of Adverse Change on Fair Value 10% | $ (17) | |
Impact of Adverse Change on Fair Value 20% | (33) | |
Adjustable Rate Residential Mortgage Loans | ||
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 | $ 19 | |
Weighted- Average Life (in years) | 3 years 3 months 18 days | |
Prepayment Speed (annual) | 24.80% | |
Impact of Adverse Change on Fair Value 10% | $ (1) | |
Impact of Adverse Change on Fair Value 20% | (2) | |
Impact of Adverse Change on Fair Value 50% | $ (5) | |
OAS spread (bps) | 7.73% | |
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 | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2009 | Jun. 30, 2017 | Dec. 31, 2016 | |
Derivative | |||
Valuation adjustments related to the credit risk associated with counterparties of customer accomodation derivative contracts | $ 5 | $ 6 | |
Notional amount of the risk participation agreements | $ 2,621 | 2,467 | |
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||
Interest Rate Contract | Credit Risk | |||
Derivative | |||
Credit Risk Derivatives Average Remaining Life | 2 years 10 months 24 days | ||
Fair value of risk participation agreements | $ 5 | 4 | |
Interest Rate Contract | Cash Flow Hedging | |||
Derivative | |||
Maximum length of time hedged in cash flow hedge | 2 years 6 months | ||
Deferred gains, net of tax, on cash flow hedges were recorded in accumulated other comprehensive income | $ 3 | 10 | |
Net deferred gains, net of tax, recorded in accumulated other comprehensive income are expected to be reclassified into earnings during the next twelve months | 4 | ||
Total collateral | |||
Derivative | |||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 432 | 444 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 403 | $ 399 | |
Amount of variation margin payment applied to derivative asset contracts | 35 | ||
Amount of variation margin payment applied to derivative liability contracts | $ 87 |
Derivatives (Notional Amounts a
Derivatives (Notional Amounts and Fair Values for All Derivative Instruments Included in the Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value | ||
Fair value - Derivative Assets | $ 780 | $ 1,057 |
Fair value - Derivative Liabilities | 491 | 666 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 317 | 345 |
Fair value - Derivative Liabilities | 18 | 12 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 317 | 323 |
Fair value - Derivative Liabilities | 5 | 12 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | Interest Rate Swap | Long-Term Debt | ||
Derivatives, Fair Value | ||
Notional amount | 2,955 | 3,455 |
Fair value - Derivative Assets | 317 | 323 |
Fair value - Derivative Liabilities | 5 | 12 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 0 | 22 |
Fair value - Derivative Liabilities | 13 | 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 | 4,475 |
Fair value - Derivative Assets | 0 | 22 |
Fair value - Derivative Liabilities | 13 | 0 |
Nondesignated | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 463 | 712 |
Fair value - Derivative Liabilities | 473 | 654 |
Nondesignated | Risk Management and Other Business Purposes | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 62 | 185 |
Fair value - Derivative Liabilities | 124 | 133 |
Nondesignated | Risk Management and Other Business Purposes | Interest Rate Contract | Servicing Rights | ||
Derivatives, Fair Value | ||
Notional amount | 11,602 | 10,522 |
Fair value - Derivative Assets | 59 | 165 |
Fair value - Derivative Liabilities | 18 | 39 |
Nondesignated | Risk Management and Other Business Purposes | Forward Contracts | Assets Held For Sale | ||
Derivatives, Fair Value | ||
Notional amount | 1,749 | 1,823 |
Fair value - Derivative Assets | 3 | 20 |
Fair value - Derivative Liabilities | 3 | 3 |
Nondesignated | Risk Management and Other Business Purposes | Swap | ||
Derivatives, Fair Value | ||
Notional amount | 1,563 | 1,300 |
Fair value - Derivative Assets | 0 | 0 |
Fair value - Derivative Liabilities | 98 | 91 |
Nondesignated | Risk Management and Other Business Purposes | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Notional amount | 194 | 111 |
Fair value - Derivative Assets | 0 | 0 |
Fair value - Derivative Liabilities | 5 | 0 |
Nondesignated | Customer Accommodation | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 401 | 527 |
Fair value - Derivative Liabilities | 349 | 521 |
Nondesignated | Customer Accommodation | Interest Rate Contract | ||
Derivatives, Fair Value | ||
Notional amount | 39,933 | 33,431 |
Fair value - Derivative Assets | 179 | 205 |
Fair value - Derivative Liabilities | 130 | 210 |
Nondesignated | Customer Accommodation | Interest Rate Lock Commitments | ||
Derivatives, Fair Value | ||
Notional amount | 769 | 701 |
Fair value - Derivative Assets | 14 | 13 |
Fair value - Derivative Liabilities | 0 | 1 |
Nondesignated | Customer Accommodation | Commodity Contract | ||
Derivatives, Fair Value | ||
Notional amount | 2,382 | 2,095 |
Fair value - Derivative Assets | 90 | 107 |
Fair value - Derivative Liabilities | 91 | 106 |
Nondesignated | Customer Accommodation | TBAs | ||
Derivatives, Fair Value | ||
Notional amount | 56 | |
Fair value - Derivative Assets | 0 | |
Fair value - Derivative Liabilities | 0 | |
Nondesignated | Customer Accommodation | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Notional amount | 10,653 | 11,013 |
Fair value - Derivative Assets | 118 | 202 |
Fair value - Derivative Liabilities | $ 128 | $ 204 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivatives, Fair Value | ||||
Change in fair value of interest rate swaps hedging long-term debt | $ 14 | $ 39 | $ (6) | $ 122 |
Change in fair value of hedged long-term debt | $ (15) | $ (41) | $ 5 | $ (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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) | ||||
Amount of pretax net (losses) gains recognized in OCI | $ 8 | $ 26 | $ 3 | $ 100 |
Interest Income (Expense) Net | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of pretax net gains reclassified from OCI into net income | $ 6 | $ 12 | $ 14 | $ 26 |
Derivatives (Net Gains (Loss104
Derivatives (Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used For Risk Management) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest Rate Contract | Forward Contracts | Loans Held For Sale | Mortgage Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ 5 | $ (9) | $ (16) | $ (19) |
Interest Rate Contract | Servicing Rights | Mortgage Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 16 | 51 | 15 | 149 |
Foreign Exchange Contract | Forward Contracts | Other Noninterest Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | (3) | (1) | (4) | (4) |
Equity Contract | Warrant | Other Noninterest Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 0 | 19 | 0 | 66 |
Equity Contract | Swap | Other Noninterest Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ (9) | $ (50) | $ (22) | $ (50) |
Derivatives (Risk Ratings of th
Derivatives (Risk Ratings of the Notional Amount of Risk Participation Agreements) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value | ||
Notional amount of the risk participation agreements | $ 2,621 | $ 2,467 |
Pass | ||
Derivatives, Fair Value | ||
Notional amount of the risk participation agreements | 2,582 | 2,447 |
Risk Level, Special Mention | ||
Derivatives, Fair Value | ||
Notional amount of the risk participation agreements | 30 | 14 |
Risk Level, Substandard | ||
Derivatives, Fair Value | ||
Notional amount of the risk participation agreements | $ 9 | $ 6 |
Derivatives (Net Gains (Loss106
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest Rate Contract | Customer Contracts | Corporate Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ 5 | $ 5 | $ 9 | $ 12 |
Interest Rate Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 0 | (1) | 0 | (2) |
Interest Rate Contract | Interest Rate Lock Commitments | Mortgage Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 26 | 42 | 48 | 84 |
Commodity Contract | Customer Contracts | Corporate Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 1 | 2 | 2 | 3 |
Commodity Contract | Customer Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 1 | (1) | 1 | (1) |
Commodity Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 0 | 2 | 0 | 1 |
Foreign Exchange Contract | Customer Contracts | Corporate Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 9 | 16 | 22 | 32 |
Foreign Exchange Contract | Customer Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 2 | (2) | 2 | (2) |
Foreign Exchange Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ 0 | $ 2 | $ 1 | $ 0 |
Derivatives (Offsetting Derivat
Derivatives (Offsetting Derivative Financial Instruments) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | ||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | $ 780 | $ 1,057 | ||
Derivative, Collateral, Obligation to Return Cash | (381) | (374) | ||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | 491 | 666 | ||
Assets | ||||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | 766 | [1] | 1,044 | [2] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (194) | (374) | ||
Derivative, Collateral, Obligation to Return Cash | (365) | [3] | (377) | [4] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 207 | 293 | ||
Liability | ||||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | 491 | [1] | 665 | [2] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (194) | (374) | ||
Derivative, Collateral, Right to Reclaim Cash | (144) | [3] | (125) | [4] |
Derivative Fair Value Amount Offset Against Collateral Net | 153 | 166 | ||
Derivative | Assets | ||||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | 766 | [1] | 1,044 | [2] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (194) | (374) | ||
Derivative, Collateral, Obligation to Return Cash | (365) | [3] | (377) | [4] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 207 | 293 | ||
Derivative | Liability | ||||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | 491 | [1] | 665 | [2] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (194) | (374) | ||
Derivative, Collateral, Right to Reclaim Cash | (144) | [3] | (125) | [4] |
Derivative Fair Value Amount Offset Against Collateral Net | $ 153 | $ 166 | ||
[1] | Amount does not includ e IRLCs because these instruments are not subject to master netting or similar arrangements . | |||
[2] | Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements . | |||
[3] | 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 Condensed 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 Condensed Consolidated Balance Sheets were excluded from this table. |
Other Short-Term Borrowings (Co
Other Short-Term Borrowings (Components of Other Short-Term Borrowings) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Short Term Debt | ||
FHLB advances | $ 4,350 | $ 2,500 |
Securities sold under repurchase agreements | 656 | 661 |
Derivative collateral | 381 | 374 |
Other borrowings | 2 | 0 |
Total other short-term borrowings | $ 5,389 | $ 3,535 |
Other Short-Term Borrowings (Se
Other Short-Term Borrowings (Securities Sold Under Repurchase Agreements By Collateral Type) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Short Term Debt | ||
Securities sold under repurchase agreements | $ 656 | $ 661 |
Overnight maturity | U.S. Treasury and federal agencies | ||
Short Term Debt | ||
Securities sold under repurchase agreements | 0 | 0 |
Overnight maturity | Agency mortgage-backed securities | Residential mortgage backed securities | ||
Short Term Debt | ||
Securities sold under repurchase agreements | $ 656 | $ 661 |
Capital Actions (Capital Action
Capital Actions (Capital Actions - Additional Information)(Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Capital Actions | ||
Shares acquired for treasury | $ 342 | $ 265 |
April 27, 2017 ASR | March 2016 Repurchase Program | ||
Capital Actions | ||
Redemption Date | May 1, 2017 | |
Shares acquired for treasury | $ 342 | |
Shares repurchased on repurchase date | 11,641,971 | |
Shares received from forward contract settlement | 2,248,250 | |
Total shares repurchased | 13,890,221 | |
Settlement date | Jul. 31, 2017 | |
December 16, 2016 ASR | March 2016 Repurchase Program | ||
Capital Actions | ||
Redemption Date | Dec. 20, 2016 | |
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 | |
Settlement date | Feb. 6, 2017 |
Long-Term Debt (Long-Term Debt
Long-Term Debt (Long-Term Debt - Additional Information) (Detail) - Parent company - Senior Debt Obligations - Fixed Rate 2.60 Percent Senior Notes Due 2022 - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2017 | |
Debt Instrument | ||
Face amount of notes issued or redeemed | $ 700 | |
Maturity date(s) Start | Jun. 15, 2017 | |
Maturity date(s) End | Jun. 15, 2022 |
Commitments (Summary of Signifi
Commitments (Summary of Significant Commitments) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Commitments to extend credit | ||
Long-term Purchase Commitment | ||
Commitments | $ 67,242 | $ 67,909 |
Letters of credit | ||
Long-term Purchase Commitment | ||
Commitments | 2,358 | 2,583 |
Forward contracts related to residential mortgage loans held for sale | ||
Long-term Purchase Commitment | ||
Commitments | 1,749 | 1,823 |
Noncancelable operating lease obligations | ||
Long-term Purchase Commitment | ||
Commitments | 556 | 576 |
Purchase obligations | ||
Long-term Purchase Commitment | ||
Commitments | 110 | 57 |
Capital commitments for private equity investments | ||
Long-term Purchase Commitment | ||
Commitments | 58 | 59 |
Capital expenditures | ||
Long-term Purchase Commitment | ||
Commitments | 42 | 29 |
Capital lease obligations | ||
Long-term Purchase Commitment | ||
Commitments | $ 17 | $ 19 |
Commitments (Risk Rating Under
Commitments (Risk Rating Under the Risk Rating System) (Detail) - Commitments to Extend Credit - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Line of Credit Facility | ||
Commitments | $ 67,242 | $ 67,909 |
Pass | ||
Line of Credit Facility | ||
Commitments | 66,256 | 66,802 |
Special Mention | ||
Line of Credit Facility | ||
Commitments | 399 | 338 |
Substandard | ||
Line of Credit Facility | ||
Commitments | 587 | 753 |
Doubtful | ||
Line of Credit Facility | ||
Commitments | $ 0 | $ 16 |
Commitments (Commitments, Conti
Commitments (Commitments, Contingent Liabilities and Guarantees - Additional Information) (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2015 | 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 | $ 2,358 | $ 2,358 | $ 2,583 | |||||||||||||||
Margin account balance held by the brokerage clearing agent | 14 | 14 | 15 | |||||||||||||||
Amount in excess of amounts reserved | 26 | 26 | ||||||||||||||||
Credit loss reserve | 1,226 | [1],[2] | $ 1,299 | 1,226 | [1],[2] | $ 1,299 | 1,253 | [2],[3] | $ 1,238 | $ 1,295 | $ 1,272 | |||||||
Residential Mortgage | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Amount in excess of amounts reserved | 15 | 15 | ||||||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | 11 | 21 | 11 | 21 | 13 | $ 12 | $ 23 | $ 25 | ||||||||||
Outstanding balances on residential mortgage loans sold with credit recourse | $ 344 | $ 344 | $ 374 | |||||||||||||||
Delinquency Rates | 2.70% | 2.70% | 3.20% | |||||||||||||||
Credit loss reserve | $ 6 | $ 6 | $ 7 | |||||||||||||||
Repurchased Outstanding Principal | 3 | 2 | 5 | 6 | ||||||||||||||
Repurchase Demand Request | 5 | $ 4 | 8 | $ 10 | ||||||||||||||
Outstanding Repurchase Demand Inventory | 2 | 2 | ||||||||||||||||
Secured Debt | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Fully and unconditionally guaranteed certain long-term borrowing obligations issued by wholly-owned issuing trust entities | 62 | 62 | 62 | |||||||||||||||
Standby Letters of Credit | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Reserve for unfunded commitments | $ 3 | $ 3 | $ 3 | |||||||||||||||
Standby letters of credit as a percentage of total letters of credit | 99.00% | 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% | 62.00% | 62.00% | |||||||||||||||
Variable Rate Demand Note | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Fifth Third Securities, Inc. (FTS) acted as the remarketing agent to issuers of VRDNs | $ 657 | $ 657 | $ 784 | |||||||||||||||
Letters of credit | 122 | 122 | 145 | |||||||||||||||
Total Variable Rate Demand Notes | 779 | 779 | 929 | |||||||||||||||
Letters of credit issued by the Bancorp related to variable rate demand notes | 483 | 483 | 609 | |||||||||||||||
Variable Rate Demand Note | Trading Securities | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Total Variable Rate Demand Notes | 0 | 0 | 6 | |||||||||||||||
Other Liabilities | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Reserve for unfunded commitments | 162 | 162 | 161 | |||||||||||||||
Other Liabilities | Residential Mortgage | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | 11 | 11 | 13 | |||||||||||||||
Visa | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Recorded share of litigation formally settled by Visa and for probable future litigation settlements | $ 98 | $ 98 | $ 91 | |||||||||||||||
Visa IPO, shares of Visa's Class B common stock received | 10.1 | |||||||||||||||||
Visa Class B shares carryover basis | $ 0 | |||||||||||||||||
Escrow Deposit | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 | $ 3,000 | |||||||||||
[1] | Includes $ 2 related to leveraged leases at June 30, 2017 . | |||||||||||||||||
[2] | Includes $ 57 and $ 85 of cash and due from banks, $ 737 and $ 1,216 of portfolio loans and leases , $ (24) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 1 and $ 3 of other liabilities , and $ 618 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2017 and December 31, 2016 , respectively. For further information refer to Note 10 . | |||||||||||||||||
[3] | Includes $ 2 related to leveraged leases at December 31, 2016 . |
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) - Financial Standby Letter of Credit $ in Millions | Jun. 30, 2017USD ($) | |
Line of Credit Facility | ||
Commitments | $ 2,358 | |
Less Than One Year From The Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 1,208 | [1] |
More than One and within Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 1,120 | [1] |
More than Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | $ 30 | |
[1] | ( a) Includes $ 11 and $ 3 issued 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 Com116
Commitments (Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party) (Parenthetical) (Detail) - Financial Standby Letter of Credit $ in Millions | Jun. 30, 2017USD ($) | |
Line of Credit Facility | ||
Commitments | $ 2,358 | |
Less Than One Year From The Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 1,208 | [1] |
Less Than One Year From The Balance Sheet Date | Commercial | ||
Line of Credit Facility | ||
Commitments | 11 | |
More than One and within Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 1,120 | [1] |
More than One and within Five Years from Balance Sheet Date | Commercial | ||
Line of Credit Facility | ||
Commitments | 3 | |
More than Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | $ 30 | |
[1] | ( a) Includes $ 11 and $ 3 issued 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 | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | $ 2,358 | $ 2,583 |
Pass | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | 2,030 | 2,134 |
Special Mention | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | 80 | 98 |
Substandard | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | 184 | 290 |
Doubtful | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | $ 64 | $ 61 |
Commitments (Activity in Reserv
Commitments (Activity in Reserve for Representation and Warranty Provisions) (Detail) - Residential Mortgage - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Valuation And Qualifying Accounts Disclosure | ||||
Balance, beginning of period | $ 12 | $ 23 | $ 13 | $ 25 |
Net (reductions) additions to the reserve | (1) | (2) | (2) | (3) |
Losses charged against the reserve | 0 | 0 | 0 | (1) |
Balance, end of period | $ 11 | $ 21 | $ 11 | $ 21 |
Commitments (Unresolved Claims
Commitments (Unresolved Claims by Claimant) (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
GSE | ||
Loss Contingencies Dollars | ||
Balance, beginning of period | $ 2 | $ 4 |
New demands | 8 | 10 |
Loan paydowns/payoffs | 0 | (1) |
Resolved demands | (8) | (9) |
Balance, end of period | $ 2 | $ 4 |
Loss Contingencies Units | ||
Balance, beginning of period | 13 | 16 |
New demands | 58 | 142 |
Loan paydowns/payoffs | (1) | (6) |
Resolved demands | (54) | (134) |
Balance, end of period | 16 | 18 |
Private Label | ||
Loss Contingencies Dollars | ||
Balance, beginning of period | $ 0 | $ 0 |
New demands | 0 | 0 |
Loan paydowns/payoffs | 0 | 0 |
Resolved demands | 0 | 0 |
Balance, end of period | $ 0 | $ 0 |
Loss Contingencies Units | ||
Balance, beginning of period | 0 | 2 |
New demands | 0 | 3 |
Loan paydowns/payoffs | 0 | 0 |
Resolved demands | 0 | (4) |
Balance, end of period | 0 | 1 |
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 | Dec. 31, 2009 | |
Visa Funding | |||||||
Loss Contingencies | |||||||
Escrow Deposit | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 | $ 3,000 |
Bancorp Cash Payment | |||||||
Loss Contingencies | |||||||
Reduction of liability in cash to the swap counterparty | $ 18 | $ 6 | $ 75 | $ 19 | $ 35 | $ 20 |
Legal & Regulatory Proceedings
Legal & Regulatory Proceedings (Legal and Regulatory Proceedings - Additional Information) (Detail) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jul. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2013 | Sep. 30, 2013USD ($) | Mar. 31, 2013USD ($) | Sep. 30, 2012USD ($) | Mar. 31, 2012USD ($) | |
Loss Contingencies | |||||||
Amount in excess of amounts reserved | $ 26 | ||||||
APR Percentage Allegedly Misleading | 120.00% | ||||||
Number Of Putative Class Actions Filed | 4 | ||||||
Damages Claimed By Plaintiff | $ 50 | $ 70 | $ 40 | ||||
Federal Lawsuits | |||||||
Loss Contingencies | |||||||
Number of merchants requesting exclusion | 500 | ||||||
Class Action Settlement | |||||||
Loss Contingencies | |||||||
Number of merchants requesting exclusion | 8,000 | ||||||
Percentage of escrow funds returned to defendants | 25.00% | ||||||
Escrow Deposit | $ 46 | ||||||
Litigation Settlement Amount | $ 2.2 |
Income Taxes (Income Taxes - Ad
Income Taxes (Income Taxes - Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Income Taxes | ||||||
Applicable income tax expense | $ 127 | $ 103 | [1],[2] | $ 218 | $ 212 | [3] |
Effective tax rate | 25.90% | 23.90% | 24.50% | 24.50% | ||
Net tax deficiency reclassified from capital surplus to applicable income tax expense | $ 5 | $ 6 | ||||
[1] | A net tax deficiency of $ 5 was reclassified from capital surplus to applicable income tax expense for the three months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effe ctive date of January 1, 2016. | |||||
[2] | Net tax deficiencies of $ 5 and $6 were reclassified from capital surplus to applicable income tax expense and average common shares out standing – diluted were adjusted for t he three and six months ended June 30, 2016, respectively, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016. | |||||
[3] | Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective d ate of January 1, 2016 |
AOCI (Activity of the Component
AOCI (Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Net activity for accumulated net unrealized gain (loss) on available-for-sale securities | ||||||
Unrealized holding gains (losses) on available-for-sale securities arising during period | $ 93 | $ 200 | [1] | $ 108 | $ 652 | [1] |
Reclassification adjustment for net (gains) losses included in net income | 0 | (6) | [1] | 1 | (11) | [1] |
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | ||||||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period | 5 | 17 | [1] | 2 | 65 | [1] |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (4) | (8) | [1] | (9) | (17) | [1] |
Net activity for defined benefit plans, net | ||||||
Reclassification of amounts to net periodic benefit costs | (1) | (2) | [1] | (2) | (3) | [1] |
Total Other Comprehensive Activity | ||||||
Pre-tax activity total | 152 | 318 | 164 | 1,067 | ||
Total, Tax | (57) | (113) | (60) | (375) | ||
Other comprehensive income (loss) | 95 | 205 | [1] | 104 | 692 | [1] |
Total Accumulated Other Comprehensive Income | ||||||
Total Accumulated Other Comprehensive Income - Beginning Balance | 68 | 684 | 59 | 197 | ||
Other comprehensive income (loss), Net of Tax | 95 | 205 | [1] | 104 | 692 | [1] |
Total Accumulated Other Comprehensive Income - Ending Balance | 163 | 889 | 163 | 889 | ||
Accumulated Net Unrealized Investment Gain (Loss) | ||||||
Pre-tax activity for accumulated net unrealized gain (loss) on available-for-sale securities | ||||||
Unrealized holding gains (losses) on available-for-sale securities arising during period | 148 | 309 | 170 | 1,004 | ||
Reclassification adjustment for net losses (gains) included in net income | 0 | (8) | 2 | (16) | ||
Net unrealized gains on available-for-sale securities | 148 | 301 | 172 | 988 | ||
Tax effect for accumulated net unrealized gain (loss) on available-for-sale securities | ||||||
Unrealized holding gains (losses) on available-for-sale securities arising during period | (55) | (109) | (62) | (352) | ||
Reclassification adjustment for net losses (gains) included in net income | 0 | 2 | (1) | 5 | ||
Net unrealized gains on available-for-sale securities | (55) | (107) | (63) | (347) | ||
Net activity for accumulated net unrealized gain (loss) on available-for-sale securities | ||||||
Unrealized holding gains (losses) on available-for-sale securities arising during period | 93 | 200 | 108 | 652 | ||
Reclassification adjustment for net (gains) losses included in net income | 0 | (6) | 1 | (11) | ||
Net unrealized gains on available-for-sale securities | 93 | 194 | 109 | 641 | ||
Total Other Comprehensive Activity | ||||||
Other comprehensive income (loss) | 93 | 194 | 109 | 641 | ||
Total Accumulated Other Comprehensive Income | ||||||
Total Accumulated Other Comprehensive Income - Beginning Balance | 117 | 685 | 101 | 238 | ||
Other comprehensive income (loss), Net of Tax | 93 | 194 | 109 | 641 | ||
Total Accumulated Other Comprehensive Income - Ending Balance | 210 | 879 | 210 | 879 | ||
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 (losses) on cash flow hedge derivatives arising during period | 8 | 26 | 3 | 100 | ||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (6) | (12) | (14) | (26) | ||
Net unrealized gains on cash flow hedge derivatives | 2 | 14 | (11) | 74 | ||
Tax effect for net unrealized gain (loss) on cash flow hedge derivatives | ||||||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period | (3) | (9) | (1) | (35) | ||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 2 | 4 | 5 | 9 | ||
Net unrealized gains on cash flow hedge derivatives | (1) | (5) | 4 | (26) | ||
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | ||||||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period | 5 | 17 | 2 | 65 | ||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (4) | (8) | (9) | (17) | ||
Net unrealized gains on cash flow hedge derivatives | 1 | 9 | (7) | 48 | ||
Total Other Comprehensive Activity | ||||||
Other comprehensive income (loss) | 1 | 9 | (7) | 48 | ||
Total Accumulated Other Comprehensive Income | ||||||
Total Accumulated Other Comprehensive Income - Beginning Balance | 2 | 61 | 10 | 22 | ||
Other comprehensive income (loss), Net of Tax | 1 | 9 | (7) | 48 | ||
Total Accumulated Other Comprehensive Income - Ending Balance | 3 | 70 | 3 | 70 | ||
Accumulated Defined Benefit Plans Adjustment | ||||||
Pre-tax activity for defined benefit plans, net | ||||||
Reclassification of amounts to net periodic benefit costs | 2 | 3 | 3 | 5 | ||
Defined benefit plans, net | 2 | 3 | 3 | 5 | ||
Tax effect for defined benefit plans, net | ||||||
Reclassification of amounts to net periodic benefit costs | (1) | (1) | (1) | (2) | ||
Defined benefit plans, net | (1) | (1) | (1) | (2) | ||
Net activity for defined benefit plans, net | ||||||
Reclassification of amounts to net periodic benefit costs | 1 | 2 | 2 | 3 | ||
Defined benefit plans, net | 1 | 2 | 2 | 3 | ||
Total Other Comprehensive Activity | ||||||
Other comprehensive income (loss) | (1) | (2) | (2) | (3) | ||
Total Accumulated Other Comprehensive Income | ||||||
Total Accumulated Other Comprehensive Income - Beginning Balance | (51) | (62) | (52) | (63) | ||
Other comprehensive income (loss), Net of Tax | (1) | (2) | (2) | (3) | ||
Total Accumulated Other Comprehensive Income - Ending Balance | $ (50) | $ (60) | $ (50) | $ (60) | ||
[1] | Net tax deficiencies of $5 and $6 were reclassified from capital surplus to applicable income tax expense for the three and six months ended June 30, 2016, respectively, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an ef fective date of January 1, 2016. |
AOCI (Reclassifications Out of
AOCI (Reclassifications Out of Accumulated Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||||||
Reclassifications Out Of Accumulated Other Comprehensive Income | |||||||||
Income Before Income Taxes | $ 494 | $ 427 | [1],[2] | $ 890 | $ 862 | [3] | |||
Applicable income tax expense | 127 | 103 | [1],[2] | 218 | 212 | [3] | |||
Net income | 367 | 328 | [1],[2],[4] | 672 | 654 | [3] | |||
Total Reclassifications For The Period | |||||||||
Reclassifications Out Of Accumulated Other Comprehensive Income | |||||||||
Net income | 3 | 12 | 6 | 25 | |||||
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 | 0 | 8 | (2) | 16 | |||||
Income Before Income Taxes | 0 | [5] | 8 | (2) | [5] | 16 | |||
Applicable income tax expense | 0 | [5] | (2) | 1 | [5] | (5) | |||
Net income | 0 | [5] | 6 | (1) | [5] | 11 | |||
Net Unrealized Gains On Available For Sale Securities | Net (Losses) Gains Included In Net Income | |||||||||
Reclassifications Out Of Accumulated Other Comprehensive Income | |||||||||
Reclassification adjustment for net losses (gains) included in net income | [5] | 0 | 8 | (2) | 16 | ||||
Net Unrealized Gains On Cash Flow Hedge Activities | |||||||||
Reclassifications Out Of Accumulated Other Comprehensive Income | |||||||||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 6 | 12 | 14 | 26 | |||||
Income Before Income Taxes | [5] | 6 | 12 | 14 | 26 | ||||
Applicable income tax expense | [5] | (2) | (4) | (5) | (9) | ||||
Net income | [5] | 4 | 8 | 9 | 17 | ||||
Net Unrealized Gains On Cash Flow Hedge Activities | 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 | [5] | 6 | 12 | 14 | 26 | ||||
Amortization Of Defined Benefit Pension Items | |||||||||
Reclassifications Out Of Accumulated Other Comprehensive Income | |||||||||
Income Before Income Taxes | [5] | (2) | (3) | (3) | (5) | ||||
Applicable income tax expense | [5] | 1 | 1 | 1 | 2 | ||||
Net income | [5] | (1) | (2) | (2) | (3) | ||||
Amortization Of Defined Benefit Pension Items | Net Actuarial Loss | |||||||||
Reclassifications Out Of Accumulated Other Comprehensive Income | |||||||||
Net periodic pension cost | [5],[6] | $ (2) | $ (3) | $ (3) | $ (5) | ||||
[1] | A net tax deficiency of $ 5 was reclassified from capital surplus to applicable income tax expense for the three months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effe ctive date of January 1, 2016. | ||||||||
[2] | Net tax deficiencies of $ 5 and $6 were reclassified from capital surplus to applicable income tax expense and average common shares out standing – diluted were adjusted for t he three and six months ended June 30, 2016, respectively, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016. | ||||||||
[3] | Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective d ate of January 1, 2016 | ||||||||
[4] | Net tax deficiencies of $6 were reclassified from capital surplus to applicable income tax expense and average common shares outstanding - diluted were adjusted for the six months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016 . | ||||||||
[5] | Amounts in parentheses indicate reductions to net income | ||||||||
[6] | This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2016 for further information. |
EPS (Calculation of Earnings Pe
EPS (Calculation of Earnings Per Share and the Reconciliation of Earnings Per Share to Earnings Per Diluted Share) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | [2] | Jun. 30, 2017 | Jun. 30, 2016 | [4] | |
Earnings per share: | ||||||
Net income (loss) available to common shareholders | $ 344 | $ 305 | [1] | $ 634 | $ 616 | [3] |
Less: Income allocated to participating securities | 4 | 3 | 7 | 6 | ||
Earnings per share - basic | 340 | 302 | 627 | 610 | ||
Earnings per diluted share: | ||||||
Net income available to common shareholders | 344 | 305 | [1] | 634 | 616 | [3] |
Stock-based awards | 0 | 0 | 0 | 0 | ||
Net income available to common shareholders plus assumed conversions | 344 | 305 | 634 | 616 | ||
Less: Income allocated to participating securities | 4 | 3 | 7 | 6 | ||
Net income allocated to common shareholders | $ 340 | $ 302 | $ 627 | $ 610 | ||
Earnings per share: | ||||||
Net income allocated to common shareholders | 741,400,700 | 759,105,385 | 744,516,799 | 766,334,781 | ||
Effect of dilutive securities: | ||||||
Stock-based awards | 11,000,000 | 6,000,000 | 12,000,000 | 5,000,000 | ||
Net income allocated to common shareholders | 752,328,298 | 764,811,003 | 756,545,341 | 771,284,468 | ||
Earnings per share: | ||||||
Earnings per share - basic | $ 0.46 | $ 0.4 | $ 0.84 | $ 0.8 | ||
Earnings per diluted share: | ||||||
Earnings per share - diluted | $ 0.45 | $ 0.39 | $ 0.83 | $ 0.79 | ||
[1] | A net tax deficiency of $ 5 was reclassified from capital surplus to applicable income tax expense for the three months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effe ctive date of January 1, 2016. | |||||
[2] | A net tax deficiency of $5 was reclassified from capital surplus to applicable income tax expense and average common shares outstanding - diluted were adjusted for the three months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016 | |||||
[3] | Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective d ate of January 1, 2016 | |||||
[4] | Net tax deficiencies of $6 were reclassified from capital surplus to applicable income tax expense and average common shares outstanding - diluted were adjusted for the six months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016 . |
EPS (Calculation of Earnings126
EPS (Calculation of Earnings Per Share and the Reconciliation of Earnings Per Sahre to Earnings Per Diluted Share) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||
Net tax deficiency reclassified from capital surplus to applicable income tax expense | $ 5 | $ 6 |
EPS (Earnings Per Share - Addit
EPS (Earnings Per Share - Additional Information) (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock Appreciation Rights | ||||
Earnings Per Share Disclosure | ||||
Anti-dilutive securities | 4 | 22 | 5 | 24 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |||
Assets: | |||||
Available-for-sale securities, fair value | [1] | $ 31,823 | $ 31,183 | ||
Trading securities | 842 | 410 | |||
Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 31,213 | [2] | 30,576 | [3] | |
Trading securities | 842 | 410 | |||
Residential mortgage loans held for sale | 674 | 686 | |||
Residential mortgage loans measured at FV | [4] | 142 | 143 | ||
Mortgage servicing rights | [5] | 849 | |||
Derivative assets | [6] | 780 | 1,057 | ||
Total assets | 34,500 | 32,872 | |||
Liabilities: | |||||
Derivative liabilities | [7] | 491 | 666 | ||
Short positions | [7] | 22 | 21 | ||
Total liabilities | 513 | 687 | |||
Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 572 | 748 | |||
Liabilities: | |||||
Derivative liabilities | 169 | 265 | |||
Foreign Exchange Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 118 | 202 | |||
Liabilities: | |||||
Derivative liabilities | 133 | 204 | |||
Equity Contract | Fair value, recurring | |||||
Liabilities: | |||||
Derivative liabilities | 98 | 91 | |||
Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 90 | 107 | |||
Liabilities: | |||||
Derivative liabilities | 91 | 106 | |||
U.S. Treasury and federal agencies | |||||
Assets: | |||||
Available-for-sale securities, fair value | 69 | 549 | |||
U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 69 | 549 | |||
Trading securities | 20 | 23 | |||
Obligations of states and political subdivisions | |||||
Assets: | |||||
Available-for-sale securities, fair value | 45 | 45 | |||
Obligations of states and political subdivisions | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 45 | 45 | |||
Trading securities | 27 | 39 | |||
Agency mortgage-backed securities | Residential mortgage backed securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | 16,177 | [8] | 15,608 | [9] | |
Agency mortgage-backed securities | Residential mortgage backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 16,177 | 15,608 | |||
Trading securities | 413 | 8 | |||
Agency mortgage-backed securities | Commercial mortgage backed securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | 9,262 | 9,055 | |||
Agency mortgage-backed securities | Commercial mortgage backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 9,262 | 9,055 | |||
Non-agency mortgage-backed securities | Commercial mortgage backed securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | 3,364 | 3,112 | |||
Non-agency mortgage-backed securities | Commercial mortgage backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 3,364 | 3,112 | |||
Asset-backed securities and other debt securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | 2,206 | 2,116 | |||
Asset-backed securities and other debt securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 2,206 | 2,116 | |||
Trading securities | 30 | 15 | |||
Equity securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | 700 | [10] | 698 | [11] | |
Equity securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 90 | [2] | 91 | [3] | |
Trading securities | 352 | 325 | |||
Fair Value, Inputs, Level 1 | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 158 | [2],[12] | 561 | [3],[13] | |
Trading securities | 352 | [12] | 325 | [13] | |
Derivative assets | [6] | 42 | [12] | 42 | [13] |
Total assets | 552 | [12] | 928 | [13] | |
Liabilities: | |||||
Derivative liabilities | [7] | 10 | [12] | 30 | [13] |
Short positions | [7] | 17 | [12] | 17 | [13] |
Total liabilities | 27 | [12] | 47 | [13] | |
Fair Value, Inputs, Level 1 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 3 | [12] | 20 | [13] | |
Liabilities: | |||||
Derivative liabilities | 3 | [12] | 3 | [13] | |
Fair Value, Inputs, Level 1 | Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 39 | [12] | 22 | [13] | |
Liabilities: | |||||
Derivative liabilities | 7 | [12] | 27 | [13] | |
Fair Value, Inputs, Level 1 | U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 69 | [12] | 471 | [13] | |
Fair Value, Inputs, Level 1 | Equity securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 89 | [2],[12] | 90 | [3],[13] | |
Trading securities | 352 | [12] | 325 | [13] | |
Fair Value, Inputs, Level 2 | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 31,055 | [2],[12] | 30,015 | [3],[13] | |
Trading securities | 490 | [12] | 85 | [13] | |
Residential mortgage loans held for sale | 674 | [12] | 686 | [13] | |
Derivative assets | [6] | 724 | [12] | 1,002 | [13] |
Total assets | 32,943 | [12] | 31,788 | [13] | |
Liabilities: | |||||
Derivative liabilities | [7] | 378 | [12] | 540 | [13] |
Short positions | [7] | 5 | [12] | 4 | [13] |
Total liabilities | 383 | [12] | 544 | [13] | |
Fair Value, Inputs, Level 2 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 555 | [12] | 715 | [13] | |
Liabilities: | |||||
Derivative liabilities | 161 | [12] | 257 | [13] | |
Fair Value, Inputs, Level 2 | Foreign Exchange Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 118 | [12] | 202 | [13] | |
Liabilities: | |||||
Derivative liabilities | 133 | [12] | 204 | [13] | |
Fair Value, Inputs, Level 2 | Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 51 | [12] | 85 | [13] | |
Liabilities: | |||||
Derivative liabilities | 84 | [12] | 79 | [13] | |
Fair Value, Inputs, Level 2 | U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 0 | [12] | 78 | [13] | |
Trading securities | 20 | [12] | 23 | [13] | |
Fair Value, Inputs, Level 2 | Obligations of states and political subdivisions | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 45 | [12] | 45 | [13] | |
Trading securities | 27 | [12] | 39 | [13] | |
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Residential mortgage backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 16,177 | [12] | 15,608 | [13] | |
Trading securities | 413 | [12] | 8 | [13] | |
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Commercial mortgage backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 9,262 | [12] | 9,055 | [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 | 3,364 | [12] | 3,112 | [13] | |
Fair Value, Inputs, Level 2 | Asset-backed securities and other debt securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 2,206 | [12] | 2,116 | [13] | |
Trading securities | 30 | [12] | 15 | [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 FV | [4] | 142 | 143 | ||
Mortgage servicing rights | [5] | 849 | |||
Derivative assets | [6] | 14 | 13 | ||
Total assets | 1,005 | 156 | |||
Liabilities: | |||||
Derivative liabilities | [7] | 103 | 96 | ||
Total liabilities | 103 | 96 | |||
Fair Value, Inputs, Level 3 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 14 | 13 | |||
Liabilities: | |||||
Derivative liabilities | 5 | 5 | |||
Fair Value, Inputs, Level 3 | Equity Contract | Fair value, recurring | |||||
Liabilities: | |||||
Derivative liabilities | $ 98 | $ 91 | |||
[1] | Amortized cost of $ 31,492 and $ 31,024 at June 30, 2017 and December 31, 2016 , respectively. | ||||
[2] | Excludes FHLB, FRB and DTCC restricted stock holdings totaling $ 248 , $ 360 and $ 2 , respectively, at June 30, 2017 . | ||||
[3] | Excludes FHLB, FRB , and DTCC restricted stock holdings totaling $ 248 , $ 358 and $ 1 , respectively, at December 31, 2016 . | ||||
[4] | Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. | ||||
[5] | Effective January 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. The servicing rights were measured at fair value at June 30, 2017 and were measur ed under the amortization method at December 31, 2016. | ||||
[6] | Included in other assets in the Condensed Consolidated Balance Sheets. | ||||
[7] | Included in other liabilities in the Condensed Consolidat ed Balance Sheets. | ||||
[8] | Includes interest-only mortgage-backed securities of $ 39 as of June 30, 2017 , recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income. | ||||
[9] | Includes interest-only mortgage-backed securities of $ 60 as of December 31, 2016 , recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income. | ||||
[10] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 360 and $ 2 , respectively, at June 30, 2017 , that are carried at cost, and certain mutual fund and equity security holdings. | ||||
[11] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 358 and $ 1 , respectively, at December 31, 2016 , that are carried at cost, and certain mutual fund and equity security holdings | ||||
[12] | During both the three and six months ended June 30, 2017 , no assets or liabilities were transferred between Level 1 and Level 2. | ||||
[13] | During the year ended December 31, 2016 , no assets or liabilities were transferred between Level 1 and Level 2. |
Fair Value Measurements (Ass129
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Federal Home Loan Bank Stock | $ 248 | $ 248 |
Federal Reserve Bank Stock | 360 | 358 |
DTCC Stock | $ 2 | $ 1 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements - Additional Information) (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2009 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Net fair value of the interest rate lock commitments | $ 14 | $ 14 | ||||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 25 bp | 6 | 6 | ||||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 50 bp | 12 | 12 | ||||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 25 bp | 7 | 7 | ||||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 50 bp | 15 | 15 | ||||
Change in fair value of interest rate lock commitments, due to 10% adverse changes in the assumed loan closing rates | 1 | 1 | ||||
Change in fair value of interest rate lock commitments, due to 20% adverse changes in the assumed loan closing rates | 3 | 3 | ||||
Change in fair value of interest rate lock commitments, due to 10% favorable changes in the assumed loan closing rates | 1 | 1 | ||||
Change in fair value of interest rate lock commitments, due to 20% favorable changes in the assumed loan closing rates | 3 | 3 | ||||
Portfolio loans to loans held for sale | 140 | $ 27 | ||||
Existing loans held for sale, further adjusted | 674 | 674 | $ 686 | |||
Residential loans transferred to the Bancorp's portfolio | 7 | 16 | ||||
Fair value changes included in earnings for instruments for which the fair value option was elected | 26 | $ 45 | ||||
Larger commercial loans, subject to impairment review | 1 | 1 | ||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | |||||
Commercial Loans Held For Sale | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Portfolio loans to loans held for sale | 57 | 20 | 75 | 25 | ||
Net impact related to fair value adjustments | (13) | (5) | (30) | (5) | ||
Gain Loss On Sales Of Loans Net | (2) | (2) | ||||
Other Real Estate Owned | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Net impact related to fair value adjustments | (3) | (2) | (4) | |||
Nonrecurring Losses Included As Charge-Offs | $ 1 | $ 3 | 3 | $ 5 | ||
Residential Mortgage Loans | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Fair value of loans | $ 1 | $ 2 |
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 | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||||||
Beginning Balance | $ 831 | $ 438 | $ 804 | $ 380 | |||||
Included in earnings | (29) | 13 | (42) | 103 | |||||
Purchases/originations | 120 | 174 | (1) | ||||||
Settlements | (24) | (43) | (41) | (76) | |||||
Transfers Into Level 3 | [1] | 4 | 4 | 7 | 6 | ||||
Ending Balance | 902 | 412 | 902 | 412 | |||||
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] | (41) | 3 | (76) | 53 | ||||
Residential Mortgage | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||||||
Beginning Balance | 141 | 160 | 143 | 167 | |||||
Included in earnings | 1 | 1 | 1 | 3 | |||||
Purchases/originations | 0 | 0 | 0 | ||||||
Settlements | (4) | (11) | (9) | (22) | |||||
Transfers Into Level 3 | [1] | 4 | 4 | 7 | 6 | ||||
Ending Balance | 142 | 154 | 142 | 154 | |||||
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] | 1 | 1 | 1 | 3 | ||||
Mortgage servicing rights | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||||||
Beginning Balance | 776 | 744 | |||||||
Included in earnings | (47) | (70) | |||||||
Purchases/originations | 120 | (175) | |||||||
Settlements | 0 | 0 | |||||||
Transfers Into Level 3 | 0 | [1] | 0 | ||||||
Ending Balance | 849 | 849 | |||||||
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 | (47) | [2] | 70 | ||||||
Interest Rate Contract | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||||||
Beginning Balance | 11 | [3] | 25 | [4],[5] | 8 | [3] | 12 | [4],[5] | |
Included in earnings | 26 | [3] | 43 | [4],[5] | 49 | [3] | 84 | [4] | |
Purchases/originations | 0 | [3] | (1) | [3] | (1) | [4] | |||
Settlements | (28) | [3] | (38) | [4],[5] | (47) | [3] | (65) | [4] | |
Transfers Into Level 3 | [1] | 0 | [3] | 0 | [4],[5] | 0 | [3] | 0 | [4] |
Ending Balance | 9 | [3] | 30 | [4],[5] | 9 | [3] | 30 | [4],[5] | |
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] | 14 | [3] | 33 | [4],[5] | 15 | [3] | 34 | [4] |
Equity Contract | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||||||
Beginning Balance | (97) | [3] | 253 | [4],[5] | (91) | [3] | 201 | [4],[5] | |
Included in earnings | (9) | [3] | (31) | [4],[5] | (22) | [3] | 16 | [4] | |
Purchases/originations | 0 | [3] | 0 | [3] | 0 | [4] | |||
Settlements | 8 | [3] | 6 | [4],[5] | 15 | [3] | 11 | [4] | |
Transfers Into Level 3 | [1] | 0 | [3] | 0 | [4],[5] | 0 | [3] | 0 | [4] |
Ending Balance | (98) | [3] | 228 | [4],[5] | (98) | [3] | 228 | [4],[5] | |
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] | $ (9) | [3] | $ (31) | [4],[5] | $ (22) | [3] | $ 16 | [4] |
[1] | Includes certain residential mortgage loans originated as held for sale that were transferred to held for invest ment. | ||||||||
[2] | Includes interest income and expense . Effective January 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. The servicing r ights were measured at fair value at June 30 , 2017 and were measured under the amortization method at December 31, 2016 . | ||||||||
[3] | Net interest rate derivatives include derivative assets and liabilities of $ 14 and $ 5 , respectively , as of June 30, 2017 . | ||||||||
[4] | Net interest rate derivatives include derivative assets and liabilities of $34 and $4 , respectively, as of June 30, 2016 . Net equity derivatives include derivativ e assets and liabilities of $327 and $99 , respectively, as of June 30, 2016 . | ||||||||
[5] | Net interest rate derivatives include derivative assets and liabilities of $ 34 and $ 4 , respectively, as of June 30, 2016 . Net equity derivatives include derivative assets and liabilities of $ 327 and $ 99 , respectively, as of June 30, 2016 . |
Fair Value Measurements (Rec132
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 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||
Derivative assets | $ 902 | $ 831 | $ 804 | $ 412 | $ 438 | $ 380 |
Interest Rates | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||
Derivative assets | 14 | 34 | ||||
Derivative liabilities | $ 5 | 4 | ||||
Equity Contract | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||
Derivative assets | 327 | |||||
Derivative liabilities | $ 99 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gains and losses included in earnings | $ (29) | $ 13 | $ (42) | $ 103 |
Mortgage Banking Revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gains and losses included in earnings | (21) | 44 | (21) | 86 |
Corporate Banking Revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gains and losses included in earnings | 1 | 0 | 1 | 1 |
Other Noninterest Income | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gains and losses included in earnings | $ (9) | $ (31) | $ (22) | $ 16 |
Fair Value Measurements (Tot134
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
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 | $ (41) | $ 3 | $ (76) | $ 53 |
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 | (33) | 34 | (55) | 36 |
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 | 0 | 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 | $ (9) | $ (31) | $ (22) | $ 16 |
Fair Value Measurements (Fai135
Fair Value Measurements (Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Recurring Basis)) (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Derivative instruments | $ 780 | $ 1,057 | ||
Residential mortgage loans | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Residential mortgage loans measured at FV | 142 | $ 154 | ||
Mortgage servicing rights | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Mortgage servicing rights | 849 | |||
IRLCs, net | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Derivative instruments | 14 | 34 | ||
Stock warrants associated with Vantiv Holding, LLC | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Derivative instruments | 327 | |||
Swap associated with the sale of Visa, Inc. Class B shares | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Derivative instruments | $ (98) | $ (99) | ||
Minimum | Residential mortgage loans | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Interest rate risk factor | (9.60%) | (5.20%) | ||
Credit risk factor | 0.00% | 0.00% | ||
Minimum | Mortgage servicing rights | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Prepayment speed | 1.20% | 0.00% | ||
OAS spread (bps) | 4.30% | 4.04% | ||
Minimum | IRLCs, net | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Loan closing rates | 9.60% | 5.30% | ||
Minimum | Stock warrants associated with Vantiv Holding, LLC | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Expected term (years) | 2 years | |||
Expected volatility | [1] | 21.60% | ||
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 | Jun. 30, 2019 | Dec. 31, 2018 | ||
Maximum | Residential mortgage loans | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Interest rate risk factor | 15.00% | 16.30% | ||
Credit risk factor | 46.20% | 80.50% | ||
Maximum | Mortgage servicing rights | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Prepayment speed | 100.00% | 100.00% | ||
OAS spread (bps) | 15.15% | 15.15% | ||
Maximum | IRLCs, net | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Loan closing rates | 96.80% | 94.00% | ||
Maximum | Stock warrants associated with Vantiv Holding, LLC | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Expected term (years) | 13 years | |||
Expected volatility | [1] | 27.40% | ||
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 | Dec. 31, 2022 | ||
Weighted average | Residential mortgage loans | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Interest rate risk factor | 2.90% | 5.00% | ||
Credit risk factor | 1.00% | 1.10% | ||
Weighted average | Mortgage servicing rights | Fixed | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Prepayment speed | 11.50% | 15.00% | ||
OAS spread (bps) | 5.30% | 6.48% | ||
Weighted average | Mortgage servicing rights | Adjustable | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Prepayment speed | 24.80% | 26.90% | ||
OAS spread (bps) | 7.73% | 7.62% | ||
Weighted average | IRLCs, net | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Loan closing rates | 73.00% | 75.50% | ||
Weighted average | Stock warrants associated with Vantiv Holding, LLC | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Expected term (years) | 5 years 9 months 18 days | |||
Expected volatility | [1] | 24.30% | ||
[1] | (a) Based on historical and implied volatilities of Vantiv, Inc. and comparable companies assuming similar expected terms. |
Fair Value Measurements (Ass136
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | $ 562 | $ 1,233 | $ 562 | $ 1,233 | |
Fair Value Measured On Nonrecurring Basis Gains Losses | (58) | (86) | (133) | (216) | |
Commercial Loans Held-for-Sale | Commercial | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | 45 | 20 | 45 | 20 | |
Fair Value Measured On Nonrecurring Basis Gains Losses | (13) | (5) | (32) | (7) | |
Commercial and Industrial Loans | Commercial | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | 405 | 426 | 405 | 426 | |
Fair Value Measured On Nonrecurring Basis Gains Losses | (32) | (19) | (58) | (66) | |
Commercial Mortgage Loans | Commercial | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | 26 | 67 | 26 | 67 | |
Fair Value Measured On Nonrecurring Basis Gains Losses | (9) | (7) | (11) | (1) | |
Commercial Construction Loans | Commercial | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | 0 | 0 | |||
Fair Value Measured On Nonrecurring Basis Gains Losses | 0 | 2 | |||
Commercial Leases | Commercial | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | 3 | 3 | 3 | 3 | |
Fair Value Measured On Nonrecurring Basis Gains Losses | (1) | (1) | (2) | (1) | |
Servicing Rights | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | [1] | 621 | 621 | ||
Fair Value Measured On Nonrecurring Basis Gains Losses | [1] | (45) | (131) | ||
Other Real Estate Owned | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | 11 | 38 | 11 | 38 | |
Fair Value Measured On Nonrecurring Basis Gains Losses | (1) | (6) | (5) | (9) | |
Bank premises and equipment | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | 16 | 20 | 16 | 20 | |
Fair Value Measured On Nonrecurring Basis Gains Losses | (2) | 2 | (5) | 2 | |
Operating lease equipment | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | 56 | 38 | 56 | 38 | |
Fair Value Measured On Nonrecurring Basis Gains Losses | 0 | (5) | (20) | (5) | |
Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | 562 | 1,233 | 562 | 1,233 | |
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 | 45 | 20 | 45 | 20 | |
Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | Commercial | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | 405 | 426 | 405 | 426 | |
Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | Commercial | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | 26 | 67 | 26 | 67 | |
Fair Value, Inputs, Level 3 | Commercial Construction Loans | Commercial | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | 0 | 0 | |||
Fair Value, Inputs, Level 3 | Commercial Leases | Commercial | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | 3 | 3 | 3 | 3 | |
Fair Value, Inputs, Level 3 | Servicing Rights | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | [1] | 621 | 621 | ||
Fair Value, Inputs, Level 3 | Other Real Estate Owned | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | 11 | 38 | 11 | 38 | |
Fair Value, Inputs, Level 3 | Bank premises and equipment | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | 16 | 20 | 16 | 20 | |
Fair Value, Inputs, Level 3 | Operating lease equipment | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair Value Measurements | $ 56 | $ 38 | $ 56 | $ 38 | |
[1] | Effective January 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. The servicing rights were measured at fair value at June 30, 2017 and were measured under the amortization method at June 30, 2016 . |
Fair Value Measurements (Fai137
Fair Value Measurements (Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Nonrecurring Basis)) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Commercial Loans Held For Sale | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | $ 45 | $ 20 |
Commercial and Industrial Loans | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 405 | 426 |
Commercial Mortgage Loans | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 26 | 67 |
Commercial construction loans | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 0 | |
Commercial Leases | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 3 | 3 |
Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 621 | |
OREO Property | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 11 | 38 |
Bank premises and equipment | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 16 | 20 |
Operating lease equipment | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | $ 56 | $ 38 |
Minimum | Residential mortgage loans | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Interest rate risk factor | (9.60%) | (5.20%) |
Credit risk factor | 0.00% | 0.00% |
Minimum | Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Prepayment speed | 1.20% | 0.00% |
OAS spread (bps) | 4.30% | 4.04% |
Maximum | Residential mortgage loans | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Interest rate risk factor | 15.00% | 16.30% |
Credit risk factor | 46.20% | 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% |
Weighted average | Commercial Loans Held For Sale | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Cost to sell | 10.00% | |
Weighted average | Residential mortgage loans | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Interest rate risk factor | 2.90% | 5.00% |
Credit risk factor | 1.00% | 1.10% |
Weighted average | Fixed | Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Prepayment speed | 11.50% | 15.00% |
OAS spread (bps) | 5.30% | 6.48% |
Weighted average | Adjustable | Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Prepayment speed | 24.80% | 26.90% |
OAS spread (bps) | 7.73% | 7.62% |
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Aggregate fair value | ||
Residential mortgage loans measured at fair value | $ 816 | $ 829 |
Past due loans of 90 days or more | 2 | 2 |
Nonaccrual loans | 1 | 1 |
Aggregate unpaid principal balance | ||
Residential mortgage loans measured at fair value | 790 | 823 |
Past due loans of 90 days or more | 2 | 2 |
Nonaccrual loans | 1 | 1 |
Difference | ||
Residential mortgage loans measured at fair value | 26 | 6 |
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 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | [1] | |||
Financial assets: | ||||||||
Cash and due from banks | $ 2,203 | [1] | $ 2,392 | [1] | $ 2,359 | $ 2,540 | ||
Held-to-maturity securities, amortized cost | [2] | 26 | 26 | |||||
Other short-term investments | 2,163 | 2,754 | ||||||
Loans held for sale | [3] | 766 | 751 | |||||
Portfolio loans and leases, net | 90,220 | 90,845 | ||||||
Other securities, fair value | [4] | 31,823 | 31,183 | |||||
Held-to-maturity securities, fair value | 26 | 26 | ||||||
Loans held for sale | 674 | 686 | ||||||
Financial liabilities: | ||||||||
Deposits | 101,880 | 103,821 | ||||||
Federal funds purchased | 117 | 132 | ||||||
Other short-term borrowings | 5,389 | 3,535 | ||||||
Long-term debt | [1] | 13,456 | 14,388 | |||||
Residential Mortgage | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 142 | $ 154 | ||||||
Carrying (Reported) Amount, Fair Value Disclosure | ||||||||
Financial assets: | ||||||||
Cash and due from banks | 2,203 | 2,392 | ||||||
Held-to-maturity securities, amortized cost | 26 | 26 | ||||||
Other short-term investments | 2,163 | 2,754 | ||||||
Loans held for sale | 92 | 65 | ||||||
Portfolio loans and leases, net | 90,078 | 90,702 | ||||||
Unallocated Allowance For Loan And Lease Losses | (110) | (112) | ||||||
Financial liabilities: | ||||||||
Deposits | 101,880 | 103,821 | ||||||
Federal funds purchased | 117 | 132 | ||||||
Other short-term borrowings | 5,389 | 3,535 | ||||||
Long-term debt | 13,456 | 14,388 | ||||||
Carrying (Reported) Amount, Fair Value Disclosure | FHLB, FRB and DTCC restricted stock holdings | ||||||||
Financial assets: | ||||||||
Other securities | 610 | 607 | ||||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial and Industrial Loans | Commercial | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases, net | 40,215 | 40,958 | ||||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Mortgage Loans | Commercial | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases, net | 6,781 | 6,817 | ||||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Construction Loans | Commercial | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases, net | 4,349 | 3,887 | ||||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Leases | Commercial | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases, net | 4,143 | 3,959 | ||||||
Carrying (Reported) Amount, Fair Value Disclosure | Residential Mortgage | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases, net | 15,225 | 14,812 | ||||||
Carrying (Reported) Amount, Fair Value Disclosure | Home Equity | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases, net | 7,250 | 7,637 | ||||||
Carrying (Reported) Amount, Fair Value Disclosure | Automobile Loans | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases, net | 9,277 | 9,941 | ||||||
Carrying (Reported) Amount, Fair Value Disclosure | Credit Card | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases, net | 2,018 | 2,135 | ||||||
Carrying (Reported) Amount, Fair Value Disclosure | Other Consumer Loans and Leases | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases, net | 930 | 668 | ||||||
Total Fair Value | ||||||||
Financial assets: | ||||||||
Cash and due from banks, fair value | 2,203 | 2,392 | ||||||
Held-to-maturity securities, fair value | 26 | 26 | ||||||
Other short term investments, fair value | 2,163 | 2,754 | ||||||
Portfolio loans and leases at fair value | 92,440 | 92,872 | ||||||
Financial liabilities: | ||||||||
Deposits, fair value | 101,855 | 103,811 | ||||||
Federal funds purchased, fair value | 117 | 132 | ||||||
Other short-term borrowings, fair value | 5,389 | 3,535 | ||||||
Long term debt, fair value | 14,129 | 14,833 | ||||||
Total Fair Value | Non Fair Value Option HFS Loans | ||||||||
Financial assets: | ||||||||
Loans held for sale | 94 | 65 | ||||||
Total Fair Value | FHLB, FRB and DTCC restricted stock holdings | ||||||||
Financial assets: | ||||||||
Other securities, fair value | 610 | 607 | ||||||
Total Fair Value | Commercial and Industrial Loans | Commercial | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 41,425 | 41,976 | ||||||
Total Fair Value | Commercial Mortgage Loans | Commercial | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 6,729 | 6,735 | ||||||
Total Fair Value | Commercial Construction Loans | Commercial | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 4,349 | 3,853 | ||||||
Total Fair Value | Commercial Leases | Commercial | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 3,885 | 3,651 | ||||||
Total Fair Value | Residential Mortgage | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 15,921 | 15,415 | ||||||
Total Fair Value | Home Equity | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 7,757 | 8,421 | ||||||
Total Fair Value | Automobile Loans | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 9,023 | 9,640 | ||||||
Total Fair Value | Credit Card | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 2,374 | 2,503 | ||||||
Total Fair Value | Other Consumer Loans and Leases | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 977 | 678 | ||||||
Total Fair Value | Fair Value, Inputs, Level 1 | ||||||||
Financial assets: | ||||||||
Cash and due from banks, fair value | 2,203 | 2,392 | ||||||
Other short term investments, fair value | 2,163 | 2,754 | ||||||
Financial liabilities: | ||||||||
Federal funds purchased, fair value | 117 | 132 | ||||||
Long term debt, fair value | 13,565 | 14,288 | ||||||
Total Fair Value | Fair Value, Inputs, Level 2 | ||||||||
Financial liabilities: | ||||||||
Deposits, fair value | 101,855 | 103,811 | ||||||
Other short-term borrowings, fair value | 5,389 | 3,535 | ||||||
Long term debt, fair value | 564 | 545 | ||||||
Total Fair Value | Fair Value, Inputs, Level 2 | FHLB, FRB and DTCC restricted stock holdings | ||||||||
Financial assets: | ||||||||
Other securities, fair value | 610 | 607 | ||||||
Total Fair Value | Fair Value, Inputs, Level 3 | ||||||||
Financial assets: | ||||||||
Held-to-maturity securities, fair value | 26 | 26 | ||||||
Portfolio loans and leases at fair value | 92,440 | 92,872 | ||||||
Total Fair Value | Fair Value, Inputs, Level 3 | Non Fair Value Option HFS Loans | ||||||||
Financial assets: | ||||||||
Loans held for sale | 94 | 65 | ||||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | Commercial | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 41,425 | 41,976 | ||||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | Commercial | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 6,729 | 6,735 | ||||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Construction Loans | Commercial | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 4,349 | 3,853 | ||||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Leases | Commercial | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 3,885 | 3,651 | ||||||
Total Fair Value | Fair Value, Inputs, Level 3 | Residential Mortgage | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 15,921 | 15,415 | ||||||
Total Fair Value | Fair Value, Inputs, Level 3 | Home Equity | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 7,757 | 8,421 | ||||||
Total Fair Value | Fair Value, Inputs, Level 3 | Automobile Loans | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 9,023 | 9,640 | ||||||
Total Fair Value | Fair Value, Inputs, Level 3 | Credit Card | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | 2,374 | 2,503 | ||||||
Total Fair Value | Fair Value, Inputs, Level 3 | Other Consumer Loans and Leases | ||||||||
Financial assets: | ||||||||
Portfolio loans and leases at fair value | $ 977 | $ 678 | ||||||
[1] | Includes $ 57 and $ 85 of cash and due from banks, $ 737 and $ 1,216 of portfolio loans and leases , $ (24) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 1 and $ 3 of other liabilities , and $ 618 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2017 and December 31, 2016 , respectively. For further information refer to Note 10 . | |||||||
[2] | Fair value of $ 26 and $ 26 at June 30, 2017 and December 31, 2016 , respectively. | |||||||
[3] | Includes $ 674 and $ 686 of residential mortgage loans held for sale measured at fair value at June 30, 2017 and December 31, 2016 , respectively. | |||||||
[4] | Amortized cost of $ 31,492 and $ 31,024 at June 30, 2017 and December 31, 2016 , respectively. |
Segments (Results of Operations
Segments (Results of Operations and Average Assets by Segment - Additional Information) (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements | ||||
Full-service Banking Centers | 1,157 | 1,157 | ||
Number of business segments | 4 | 4 | 4 | 4 |
Segments (Results of Operati141
Segments (Results of Operations and Average Assets by Segment) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||||||
Segment Reporting Information | ||||||||||
Net interest income | $ 939 | $ 902 | [1],[2] | $ 1,872 | $ 1,805 | [3] | ||||
Provision for (benefit from) loan and lease losses | 52 | 91 | [1],[2] | 126 | 210 | [3],[4] | ||||
Net interest income after provision for loan and lease losses | 887 | 811 | [1],[2] | 1,746 | 1,595 | [3] | ||||
Total noninterest income | 564 | 599 | [1],[2] | 1,087 | 1,235 | [3] | ||||
Total noninterest expense | 957 | 983 | [1],[2] | 1,943 | 1,968 | [3] | ||||
Income (Loss) Before Income Taxes | 494 | 427 | [1],[2] | 890 | 862 | [3] | ||||
Applicable income tax expense (benefit) | 127 | 103 | [1],[2] | 218 | 212 | [3] | ||||
Net income (loss) | 367 | 324 | [1],[2],[5] | 672 | 650 | [3],[4],[5] | ||||
Less: Net income attributable to noncontrolling interests | 0 | (4) | [1],[2] | 0 | (4) | [3] | ||||
Net income (loss) attributable to Bancorp | 367 | 328 | [1],[2],[6] | 672 | 654 | [3] | ||||
Dividends on preferred stock | 23 | 23 | [1],[2],[6] | 38 | 38 | [3] | ||||
Net income (loss) available to common shareholders | 344 | 305 | [1],[7] | 634 | 616 | [3],[6] | ||||
Total goodwill | 2,423 | [1] | 2,416 | [1],[3] | 2,423 | [1] | 2,416 | [1],[3] | $ 2,416 | |
Total Assets | 141,067 | [1] | 143,625 | [1],[3] | 141,067 | [1] | 143,625 | [1],[3] | $ 142,177 | |
Intersegment Elimination | ||||||||||
Segment Reporting Information | ||||||||||
Total noninterest income | [8] | (33) | (34) | (67) | (67) | |||||
Total noninterest expense | (33) | (34) | (67) | (67) | ||||||
Commercial Banking | ||||||||||
Segment Reporting Information | ||||||||||
Net interest income | 415 | 460 | 839 | 911 | ||||||
Provision for (benefit from) loan and lease losses | 22 | 72 | 29 | 137 | ||||||
Net interest income after provision for loan and lease losses | 393 | 388 | 810 | 774 | ||||||
Total noninterest income | 228 | 236 | [9] | 429 | [10] | 457 | [11] | |||
Total noninterest expense | 345 | 355 | 714 | 716 | ||||||
Income (Loss) Before Income Taxes | 276 | 269 | 525 | 515 | ||||||
Applicable income tax expense (benefit) | 49 | 43 | 88 | 77 | ||||||
Net income (loss) | 227 | 226 | 437 | 438 | ||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||||
Net income (loss) attributable to Bancorp | 227 | 226 | 437 | 438 | ||||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||||
Net income (loss) available to common shareholders | 227 | 226 | 437 | 438 | ||||||
Total goodwill | 613 | 613 | 613 | 613 | ||||||
Total Assets | 57,766 | 60,042 | 57,766 | 60,042 | ||||||
Branch Banking | ||||||||||
Segment Reporting Information | ||||||||||
Net interest income | 437 | 433 | 867 | 859 | ||||||
Provision for (benefit from) loan and lease losses | 39 | 35 | 80 | 69 | ||||||
Net interest income after provision for loan and lease losses | 398 | 398 | 787 | 790 | ||||||
Total noninterest income | 189 | [12] | 214 | [13] | 374 | [14] | 401 | [15] | ||
Total noninterest expense | 399 | 409 | 801 | 820 | ||||||
Income (Loss) Before Income Taxes | 188 | 203 | 360 | 371 | ||||||
Applicable income tax expense (benefit) | 66 | 71 | 127 | 131 | ||||||
Net income (loss) | 122 | 132 | 233 | 240 | ||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||||
Net income (loss) attributable to Bancorp | 122 | 132 | 233 | 240 | ||||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||||
Net income (loss) available to common shareholders | 122 | 132 | 233 | 240 | ||||||
Total goodwill | 1,655 | 1,655 | 1,655 | 1,655 | ||||||
Total Assets | 57,378 | 54,220 | 57,378 | 54,220 | ||||||
Consumer Lending | ||||||||||
Segment Reporting Information | ||||||||||
Net interest income | 59 | 62 | 120 | 122 | ||||||
Provision for (benefit from) loan and lease losses | 7 | 9 | 22 | 21 | ||||||
Net interest income after provision for loan and lease losses | 52 | 53 | 98 | 101 | ||||||
Total noninterest income | 62 | 80 | 116 | 164 | ||||||
Total noninterest expense | 123 | 122 | 241 | 240 | ||||||
Income (Loss) Before Income Taxes | (9) | 11 | (27) | 25 | ||||||
Applicable income tax expense (benefit) | (3) | 4 | (10) | 9 | ||||||
Net income (loss) | (6) | 7 | (17) | 16 | ||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||||
Net income (loss) attributable to Bancorp | (6) | 7 | (17) | 16 | ||||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||||
Net income (loss) available to common shareholders | (6) | 7 | (17) | 16 | ||||||
Total goodwill | 0 | 0 | 0 | 0 | ||||||
Total Assets | 22,442 | 22,598 | 22,442 | 22,598 | ||||||
Wealth and Asset Management | ||||||||||
Segment Reporting Information | ||||||||||
Net interest income | 37 | 44 | 75 | 87 | ||||||
Provision for (benefit from) loan and lease losses | (1) | 1 | 3 | 1 | ||||||
Net interest income after provision for loan and lease losses | 38 | 43 | 72 | 86 | ||||||
Total noninterest income | 101 | 100 | 209 | 202 | ||||||
Total noninterest expense | 110 | 108 | 224 | 215 | ||||||
Income (Loss) Before Income Taxes | 29 | 35 | 57 | 73 | ||||||
Applicable income tax expense (benefit) | 10 | 12 | 20 | 25 | ||||||
Net income (loss) | 19 | 23 | 37 | 48 | ||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||||
Net income (loss) attributable to Bancorp | 19 | 23 | 37 | 48 | ||||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||||
Net income (loss) available to common shareholders | 19 | 23 | 37 | 48 | ||||||
Total goodwill | 155 | 148 | 155 | 148 | ||||||
Total Assets | 8,241 | 8,399 | 8,241 | 8,399 | ||||||
General Corporate and Other | ||||||||||
Segment Reporting Information | ||||||||||
Net interest income | (9) | (97) | [1] | (29) | (174) | [3] | ||||
Provision for (benefit from) loan and lease losses | (15) | (26) | [1] | (8) | (18) | [3] | ||||
Net interest income after provision for loan and lease losses | 6 | (71) | [1] | (21) | (156) | [3] | ||||
Total noninterest income | 17 | 3 | [1] | 26 | 78 | [3] | ||||
Total noninterest expense | 13 | 23 | [1] | 30 | 44 | [3] | ||||
Income (Loss) Before Income Taxes | 10 | (91) | [1] | (25) | (122) | [3] | ||||
Applicable income tax expense (benefit) | 5 | (27) | [1] | (7) | (30) | [3] | ||||
Net income (loss) | 5 | (64) | [1] | (18) | (92) | [3] | ||||
Less: Net income attributable to noncontrolling interests | 0 | (4) | [1] | 0 | (4) | [3] | ||||
Net income (loss) attributable to Bancorp | 5 | (60) | [1] | (18) | (88) | [3] | ||||
Dividends on preferred stock | 23 | 23 | [1] | 38 | 38 | [3] | ||||
Net income (loss) available to common shareholders | (18) | (83) | [1] | (56) | (126) | [3] | ||||
Total goodwill | 0 | 0 | [1],[3] | 0 | 0 | [1],[3] | ||||
Total Assets | $ (4,760) | [16] | $ (1,634) | [1],[3],[9] | $ (4,760) | [16] | $ (1,634) | [1],[3],[9] | ||
[1] | A net tax deficiency of $ 5 was reclassified from capital surplus to applicable income tax expense for the three months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effe ctive date of January 1, 2016. | |||||||||
[2] | Net tax deficiencies of $ 5 and $6 were reclassified from capital surplus to applicable income tax expense and average common shares out standing – diluted were adjusted for t he three and six months ended June 30, 2016, respectively, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016. | |||||||||
[3] | Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective d ate of January 1, 2016 | |||||||||
[4] | Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016. | |||||||||
[5] | Net tax deficiencies of $5 and $6 were reclassified from capital surplus to applicable income tax expense for the three and six months ended June 30, 2016, respectively, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an ef fective date of January 1, 2016. | |||||||||
[6] | Net tax deficiencies of $6 were reclassified from capital surplus to applicable income tax expense and average common shares outstanding - diluted were adjusted for the six months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016 . | |||||||||
[7] | A net tax deficiency of $5 was reclassified from capital surplus to applicable income tax expense and average common shares outstanding - diluted were adjusted for the three months ended June 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016 | |||||||||
[8] | Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income. | |||||||||
[9] | Includes impairment charges of $ 5 for operating lease equipment. For more information refer to Note 8 and Note 21 . | |||||||||
[10] | Includes impairment charges of $ 31 for operating lease equipment. For more information refer to Note 8 and Note 21. | |||||||||
[11] | Includes impairment charges of $ 5 for operating lease equipment. For more information refer to Note 8 and Note 21. | |||||||||
[12] | Includes impairment charges of $ 2 for branches and land. For more information refer to Note 7 and Note 21. | |||||||||
[13] | Includes impairment charges of $ 1 for branches and land. For more information refer to Note 7 and Note 21. | |||||||||
[14] | Includes impairment charges of $ 5 for branches and land. For more information refer to Note 7 and Note 21. | |||||||||
[15] | Includes impairment charge s of $ 3 for branches and land. For more information refer to Note 7 and Note 21. | |||||||||
[16] | Includes bank premises and equipment of $ 4 1 classified as hel d for sale. For more information refer to Note 7 |
Segments (Results of Operati142
Segments (Results of Operations and Average Assets by Segment) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||
Segment Reporting Information | ||||||
Other Asset Impairment Charges | $ (19) | $ (5) | [1] | |||
Bank premises and equipment held for sale | $ 41 | 41 | $ 39 | |||
Net tax deficiency reclassified from capital surplus to applicable income tax expense | $ 5 | 6 | ||||
Branch Banking | ||||||
Segment Reporting Information | ||||||
Impairment of Branches and Land | 2 | 1 | 5 | 3 | ||
Commercial Banking | Operating lease equipment | ||||||
Segment Reporting Information | ||||||
Other Asset Impairment Charges | 5 | 31 | 5 | |||
General Corporate and Other | ||||||
Segment Reporting Information | ||||||
Bank premises and equipment held for sale | $ 41 | 52 | $ 41 | 52 | ||
Net tax deficiency reclassified from capital surplus to applicable income tax expense | $ 5 | $ 6 | ||||
[1] | Net tax deficiencies of $ 6 were reclassified from capital surplus to applicable income tax expense for the six months ended June 30, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016. |
Subsequent Event (Subsequent Ev
Subsequent Event (Subsequent Event - Additional Information) (Detail) - Subsequent Event $ / shares in Units, shares in Thousands, $ in Billions | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Vantiv, Inc. | Class A | |
Subsequent Event | |
Exchange of Common Stock in Vantiv, Inc. | 19,790 |
Closing Share Price of Vantiv, Inc. Class A Common Stock on August 4, 2017 | $ / shares | $ 64.04 |
Vantiv Holding, LLC | |
Subsequent Event | |
Pretax Gain Expected To Be Recognized | $ | $ 1 |
Equity Method Investment, Ownership Percentage | 8.60% |
Vantiv Holding, LLC | Class B | |
Subsequent Event | |
Exchange of Units in Vantiv Holding, LLC | 19,790 |
Ownership of Shares | 15,300 |
Vantiv, Inc. and Vantiv Holding, LLC | |
Subsequent Event | |
Subsequent Event Date | Aug. 7, 2017 |