Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FITB | ||
Entity Registrant Name | FIFTH THIRD BANCORP | ||
Entity Central Index Key | 35,527 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 694,212,973 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 19,144,447,530 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets | |||
Cash and due from banks | [1] | $ 2,514 | $ 2,392 |
Available-for-sale and other securities | [2] | 31,820 | 31,183 |
Held-to-maturity securities | [3] | 24 | 26 |
Trading securities | 862 | 410 | |
Other short-term investments | [1] | 2,753 | 2,754 |
Loans held for sale | [4] | 492 | 751 |
Portfolio loans and leases | [1],[5] | 91,970 | 92,098 |
ALLL | [1] | (1,196) | (1,253) |
Portfolio loans and leases, net | 90,774 | 90,845 | |
Bank premises and equipment | [6] | 2,003 | 2,065 |
Operating lease equipment | 646 | 738 | |
Goodwill | 2,445 | 2,416 | |
Intangible assets | 27 | 9 | |
Servicing rights | [7] | 858 | 744 |
Other assets | [1] | 6,975 | 7,844 |
Total Assets | 142,193 | 142,177 | |
Deposits | |||
Noninterest-bearing deposits | 35,276 | 35,782 | |
Interest-bearing deposits | 67,886 | 68,039 | |
Total deposits | 103,162 | 103,821 | |
Federal funds purchased | 174 | 132 | |
Other short-term borrowings | 4,012 | 3,535 | |
Accrued taxes, interest and expenses | 1,412 | 1,800 | |
Other liabilities | [1] | 2,144 | 2,269 |
Long-term debt | [1] | 14,904 | 14,388 |
Total liabilities | 125,808 | 125,945 | |
Equity | |||
Common stock | [8] | 2,051 | 2,051 |
Preferred stock | [9] | 1,331 | 1,331 |
Capital surplus | 2,790 | 2,756 | |
Retained earnings | 15,122 | 13,441 | |
Accumulated other comprehensive income | 73 | 59 | |
Treasury stock | [8] | (5,002) | (3,433) |
Total Bancorp Shareholders' Equity | 16,365 | 16,205 | |
Noncontrolling interests | 20 | 27 | |
Total Equity | 16,385 | 16,232 | |
Total Liabilities and Equity | $ 142,193 | $ 142,177 | |
[1] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . | ||
[2] | Amortized cost of $ 31,644 and $ 31,024 at December 31, 2017 and 2016 , respectively. | ||
[3] | Fair value of $ 24 and $ 26 at December 31, 2017 and 2016 , respectively. | ||
[4] | Includes $ 399 and $ 686 of residential mortgage loans held for sale measured at fair value at December 31, 2017 and 2016 , respectively. | ||
[5] | Includes $ 137 and $ 143 of residential mortgage loans measured at fair value at December 31, 2017 and 2016 , respecti vely. | ||
[6] | Includes $ 27 and $ 39 of bank premises and equipment held for sale at December 31, 2017 and 2016 , respectively. For further information refer to N ote 7 . | ||
[7] | 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 December 31, 2017 and were measured under the amortization method at December 31, 2016. For further information refer to Note 12 . | ||
[8] | Common shares: Stated value $ 2.22 per share; authorized 2,000,000,000 ; outstanding at December 31, 2017 – 693,804,893 (excludes 230,087,688 treasury shares) , 2016 – 750,479,299 (excludes 173,413,282 treasury shares). | ||
[9] | 446,000 shares of undesignated no par value preferred stock are authorized and unissued at December 31, 2017 and 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 December 31, 2017 and 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 December 31, 2017 and 2016 ; and fixed-to-floating rate non-cumulative Series J perpetual preferred stock with a $ 25,000 liquidation preference: 12,000 authorized shares, issue d and outstanding at December 31, 2017 and 2016 . |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash and due from banks | [1] | $ 2,514 | $ 2,392 |
Other Short-term Investments | [1] | 2,753 | 2,754 |
Portfolio loans and leases | [1],[2] | 91,970 | 92,098 |
ALLL | [1] | (1,196) | (1,253) |
Other assets | [1] | 6,975 | 7,844 |
Other liabilities | [1] | 2,144 | 2,269 |
Long-term debt | [1] | 14,904 | 14,388 |
Available-for-sale and other securities, amortized cost | 31,644 | 31,024 | |
Held-to-maturity securities, fair value | 24 | 26 | |
Residential mortgage loans held for sale | 399 | 686 | |
Residential mortgage loans measured at fair value | 137 | 143 | |
Bank premises and equipment held for sale | $ 27 | $ 39 | |
Common stock, stated value | $ 2.22 | $ 2.22 | |
Common stock, authorized | 2,000,000,000 | 2,000,000,000 | |
Common stock, outstanding | 693,804,893 | 750,479,299 | |
Common stock, treasury shares | 230,087,688 | 173,413,282 | |
Residential Mortgage | |||
Residential mortgage loans measured at fair value | $ 137 | $ 143 | |
Variable Interest Entities | |||
Cash and due from banks | 0 | 85 | |
Other Short-term Investments | 62 | 0 | |
Portfolio loans and leases | 1,297 | 1,216 | |
ALLL | (6) | (26) | |
Other assets | 7 | 9 | |
Other liabilities | 2 | 3 | |
Long-term debt | $ 1,190 | $ 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 $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . | ||
[2] | Includes $ 137 and $ 143 of residential mortgage loans measured at fair value at December 31, 2017 and 2016 , respecti vely. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Income | |||
Interest and fees on loans and leases | $ 3,478 | $ 3,233 | $ 3,151 |
Interest on securities | 996 | 952 | 869 |
Interest on other short-term investments | 15 | 8 | 8 |
Total interest income | 4,489 | 4,193 | 4,028 |
Interest Expense | |||
Interest on deposits | 277 | 205 | 186 |
Interest on federal funds purchased | 6 | 2 | 1 |
Interest on other short-term borrowings | 30 | 10 | 2 |
Interest on long-term debt | 378 | 361 | 306 |
Total interest expense | 691 | 578 | 495 |
Net Interest Income | 3,798 | 3,615 | 3,533 |
Provision for loan and lease losses | 261 | 343 | 396 |
Net Interest Income After Provision for Loan and Lease Losses | 3,537 | 3,272 | 3,137 |
Noninterest Income: | |||
Service charges on deposits | 554 | 558 | 563 |
Wealth and asset management revenue | 419 | 404 | 418 |
Corporate banking revenue | 353 | 432 | 384 |
Card and processing revenue | 313 | 319 | 302 |
Mortgage banking net revenue | 224 | 285 | 348 |
Other noninterest income | 1,357 | 688 | 979 |
Securities gains, net | 2 | 10 | 9 |
Securities gains, net - non-qualifying hedges on mortgage servicing rights | 2 | 0 | 0 |
Total noninterest income | 3,224 | 2,696 | 3,003 |
Noninterest Expense | |||
Salaries, wages and incentives | 1,633 | 1,612 | 1,525 |
Employee benefits | 356 | 339 | 323 |
Net occupancy expense | 295 | 299 | 321 |
Technology and communications | 245 | 234 | 224 |
Card and processing expense | 129 | 132 | 153 |
Equipment expense | 117 | 118 | 124 |
Other noninterest expense | 1,215 | 1,169 | 1,105 |
Total noninterest expense | 3,990 | 3,903 | 3,775 |
Income (Loss) Before Income Taxes | 2,771 | 2,065 | 2,365 |
Applicable income tax expense | 577 | 505 | 659 |
Net Income | 2,194 | 1,560 | 1,706 |
Less: Net income attributable to noncontrolling interests | 0 | (4) | (6) |
Net Income attributable to Bancorp | 2,194 | 1,564 | 1,712 |
Dividends on preferred stock | 75 | 75 | 75 |
Net income (loss) available to common shareholders | $ 2,119 | $ 1,489 | $ 1,637 |
Earnings per share - basic | $ 2.88 | $ 1.95 | $ 2.03 |
Earnings per share - diluted | $ 2.83 | $ 1.93 | $ 2.01 |
Average common shares outstanding - basic | 728,289,200 | 757,432,291 | 798,628,173 |
Average common shares outstanding - diluted | 740,691,433 | 764,495,353 | 807,658,669 |
Cash dividends declared per common share | $ 0.6 | $ 0.53 | $ 0.52 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income | |||
Net income (loss) | $ 2,194 | $ 1,560 | $ 1,706 |
Other Comprehensive Income (Loss), Net of Tax | |||
Unrealized holding gains (losses) on available-for-sale securities arising during the year | 21 | (130) | (227) |
Reclassification adjustment for net (gains) losses included in net income | 4 | (7) | (10) |
Unrealized holding gains (losses) on cash flow hedge derivatives arising during the year | (7) | 19 | 48 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (12) | (31) | (49) |
Net actuarial gain (loss) arising during the year | 1 | (1) | (5) |
Reclassification of amounts to net periodic benefit costs | 7 | 12 | 11 |
Other comprehensive income (loss), Net of Tax | 14 | (138) | (232) |
Comprehensive income | 2,208 | 1,422 | 1,474 |
Comprehensive income attributable to noncontrolling interests | 0 | (4) | (6) |
Comprehensive income attributable to Bancorp | $ 2,208 | $ 1,426 | $ 1,480 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common stock | Preferred Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Bancorp Shareholders' Equity | Non- Controlling Interests | |
Beginning Balance at Dec. 31, 2014 | $ 15,665 | $ 2,051 | $ 1,331 | $ 2,646 | $ 11,141 | $ 429 | $ (1,972) | $ 15,626 | $ 39 | |
Net income (loss) | 1,706 | 1,712 | 1,712 | (6) | ||||||
Other comprehensive income (loss), Net of Tax | (232) | (232) | (232) | |||||||
Cash dividends declared: | ||||||||||
Common stock at $0.60 in 2017, $0.53 in 2016 and $0.52 in 2015 per share | (417) | (417) | (417) | |||||||
Preferred stock | [1] | (75) | (75) | (75) | ||||||
Shares acquired for treasury | (850) | (3) | (847) | (850) | ||||||
Impact of stock transactions under stock compensation plans, net | 75 | 23 | 52 | 75 | ||||||
Other | (2) | (3) | 3 | 0 | (2) | |||||
Ending Balance at Dec. 31, 2015 | 15,870 | 2,051 | 1,331 | 2,666 | 12,358 | 197 | (2,764) | 15,839 | 31 | |
Net income (loss) | 1,560 | 1,564 | 1,564 | (4) | ||||||
Other comprehensive income (loss), Net of Tax | (138) | (138) | (138) | |||||||
Cash dividends declared: | ||||||||||
Common stock at $0.60 in 2017, $0.53 in 2016 and $0.52 in 2015 per share | (405) | (405) | (405) | |||||||
Preferred stock | [1] | (75) | (75) | (75) | ||||||
Shares acquired for treasury | (661) | 7 | (668) | (661) | ||||||
Impact of stock transactions under stock compensation plans, net | 80 | 83 | 1 | (4) | 80 | |||||
Other | 1 | (2) | 3 | 1 | ||||||
Ending Balance at Dec. 31, 2016 | 16,232 | 2,051 | 1,331 | 2,756 | 13,441 | 59 | (3,433) | 16,205 | 27 | |
Net income (loss) | 2,194 | 2,194 | 2,194 | |||||||
Other comprehensive income (loss), Net of Tax | 14 | 14 | 14 | |||||||
Cash dividends declared: | ||||||||||
Common stock at $0.60 in 2017, $0.53 in 2016 and $0.52 in 2015 per share | (436) | (436) | (436) | |||||||
Preferred stock | [1] | (75) | (75) | (75) | ||||||
Shares acquired for treasury | (1,605) | (17) | (1,588) | (1,605) | ||||||
Impact of stock transactions under stock compensation plans, net | 67 | 51 | 16 | 67 | ||||||
Other | (6) | (2) | 3 | 1 | (7) | |||||
Ending Balance at Dec. 31, 2017 | $ 16,385 | $ 2,051 | $ 1,331 | $ 2,790 | $ 15,122 | $ 73 | $ (5,002) | $ 16,365 | $ 20 | |
[1] | For the year s ended December 31, 2017 , 2016 and 2015 , dividends were $ 1,275.00 per preferred share for Perpetual Preferred Stock, Series H, $ 1,656.24 per preferred share for Perpetual Preferred Stock, Series I and $ 1,225.00 per preferred share for Perpetual Preferred Stock, Series J. |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Common stock, per share | $ 0.6 | $ 0.53 | $ 0.52 |
Preferred stock Series H | |||
Preferred stock, per share | 1,275 | 1,275 | 1,275 |
Preferred stock Series I | |||
Preferred stock, per share | 1,656.24 | 1,656.24 | 1,656.24 |
Preferred stock Series J | |||
Preferred stock, per share | $ 1,225 | $ 1,225 | $ 1,225 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Operating Activities | ||||||
Net income | $ 2,194 | $ 1,560 | $ 1,706 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Provision for (benefit from) loan and lease losses | 261 | 343 | 396 | |||
Depreciation, amortization and accretion | 341 | 453 | 441 | |||
Stock-based compensation expense | 118 | 111 | 100 | |||
(Benefit from) provision for deferred income taxes | (251) | (148) | (71) | |||
Securities gains, net | (3) | (7) | (5) | |||
Securities gains, net - non-qualifying hedges on mortgage servicing rights | (2) | 0 | 0 | |||
MSR Fair Value Adjustment | [1] | (122) | 0 | 0 | ||
(Recovery of) provision for MSR impairment | [1] | 0 | (7) | (4) | ||
Net gains on sales of loans and fair value adjustments on loans held for sale | (108) | (101) | (98) | |||
Net losses on disposition and impairment of bank premises and equipment | 0 | (13) | (101) | |||
Gain on sale of certain retail branch operations | 0 | (19) | 0 | |||
Net losses on disposition and impairment of operating lease equipment | (39) | (9) | (33) | |||
Gain on sale of Vantiv, Inc. shares | (1,037) | 0 | (331) | |||
Gain on the TRA associated with Vantiv, Inc. | (44) | (197) | (31) | |||
Proceeds from sales of loans held for sale | 6,453 | 6,895 | 5,102 | |||
Loans originated or purchased for sale, net of repayments | (6,054) | (7,014) | (5,142) | |||
Dividends representing return on equity method investments | 46 | 28 | 25 | |||
Net change in: | ||||||
Trading securities | (442) | (23) | (34) | |||
Other assets | (23) | 351 | 94 | |||
Accrued taxes, interest and expenses | (138) | (157) | 327 | |||
Other liabilities | 22 | 24 | (191) | |||
Net Cash Provided by (Used in) Operating Activities | 1,494 | 2,114 | 2,418 | |||
Proceeds from sales: | ||||||
Available-for-sale and other securities | 12,637 | 18,280 | 16,828 | |||
Loans | 164 | 360 | 741 | |||
Bank premises and equipment | 40 | 82 | 37 | |||
Proceeds from repayments / maturities: | ||||||
Available-for-sale and other securities | 2,331 | 3,776 | 2,865 | |||
Held-to-maturity securities | 3 | 44 | 117 | |||
Purchases: | ||||||
Available-for-sale and other securities | (15,295) | (24,636) | (26,733) | |||
Bank premises and equipment | (200) | (186) | (164) | |||
MSRs | (109) | 0 | 0 | |||
Proceeds from sale and dividends representing return of equity method investments | 1,363 | 64 | 458 | |||
Net cash paid on sale of certain retail branch operations | 0 | (219) | 0 | |||
Net cash paid on acquisitions | (44) | 0 | 0 | |||
Net change in: | ||||||
Other short-term investments | 1 | (83) | 5,243 | |||
Loans and leases | (446) | (243) | (3,238) | |||
Operating lease equipment | (31) | (126) | (85) | |||
Net Cash (Used in) Provided by Investing Activities | 414 | (2,887) | (3,931) | |||
Net change in: | ||||||
Deposits | (659) | 1,146 | 1,493 | |||
Federal funds purchased | 42 | (19) | 7 | |||
Other short-term borrowings | 477 | 2,028 | (49) | |||
Dividends paid on common stock | (430) | (402) | (422) | |||
Dividends paid on preferred stock | (75) | (52) | (75) | |||
Proceeds from issuance of long-term debt | 2,490 | 3,735 | 3,091 | |||
Repayment of long-term debt | (1,969) | (5,119) | (2,205) | |||
Repurchase of treasury stock and related forward contract | 1,605 | 661 | 850 | |||
Other | (57) | (31) | (28) | |||
Net Cash Provided (Used in) by Financing Activities | (1,786) | 625 | 962 | |||
Increase (Decrease) in Cash and Due from Banks | 122 | (148) | (551) | |||
Cash and Due from Banks at Beginning of Period | 2,392 | [2] | 2,540 | 3,091 | ||
Cash and Due from Banks at End of Period | $ 2,514 | [2] | $ 2,392 | [2] | $ 2,540 | |
[1] | Included in mortgage banking net revenue in the Consolidated Statements of Income. | |||||
[2] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . |
Summary of Significant Accounti
Summary of Significant Accounting and Reporting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Basis of Presentation | |
Summary of Significant Accounting and Reporting Policies | 1 . SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES Nature of Operations Fifth Third Bancorp, an Ohio corporation, conducts its principal lending, deposit gathering, transaction processing and service advisory activities through its banking and non-banking subsidiaries from banking centers located throughout the Midwestern and Southeastern regions of the United States. Basis of Presentation The Consolidated Financial Statements include the accounts of the Bancorp and its majority-owned subsidiaries and VIEs in which the Bancorp has been determined to be the primary beneficiary. Other entities, including certain joint ventures, in which the Bancorp has the ability to exercise significant influence over operating and financial policies of the investee, but upon which the Bancorp does not possess control, are accounted for by the e quity method of accounting and not consolidated. The investments in those entities in which the Bancorp does not have the ability to exercise significant influence are generally carried at the lower of cost or fair value. Intercompany transactions and bala nces among consolidated entities have been eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Due From Banks Cash and due from banks consist of currency and coin, cash items in the process of collection and due from banks. Currency and coin includes both U.S. and f oreign currency owned and held at Fifth Third offices and that is in-transit to the FRB. Cash items in the process of collection include checks and drafts that are drawn on another depository institution or the FRB that are payable immediately upon present ation in the U.S. Balances due from banks include noninterest-bearing balances that are funds on deposit at other depository institutions or the FRB. Securities Securities are classified as held-to-maturity, available-for-sale or trading on the date of pu rchase. Only those securities which management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. Securities are classified as available-for-sale when, in management’s judgment, they may be sol d in response to, or in anticipation of, changes in market conditions. Securities are classified as trading when bought and held principally for the purpose of selling them in the near term. Available-for-sale securities are reported at fair value with unr ealized gains and losses, net of related deferred income taxes, included in OCI. Trading securities are reported at fair value with unrealized gains and losses included in noninterest income. The fair value of a security is determined based on quoted marke t prices. If quoted market prices are not available, fair value is determined based on quoted prices of similar instruments or DCF models that incorporate market inputs and assumptions including discount rates, prepayment speeds and loss rates. Realized se curities gains or losses are reported within noninterest income in the Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. Available-for-sale and held-to-maturity securities with unrealized losses are reviewed quarterly for possible OTTI. For debt securities, if the Bancorp intends to sell the debt security or will more likely than not be required to sell the debt security before recovery of the entire amortized cost basis, then an OTTI has occurred . However, even if the Bancorp does not intend to sell the debt security and will not likely be required to sell the debt security before recovery of its entire amortized cost basis, the Bancorp must evaluate expected cash flows to be received and determin e if a credit loss has occurred. In the event of a credit loss, the credit component of the impairment is recognized within noninterest income and the non-credit component is recognized through OCI. For equity securities, the Bancorp’s management evaluates the securities in an unrealized loss position in the available-for-sale portfolio for OTTI on the basis of the duration of the decline in value of the security and severity of that decline as well as the Bancorp’s intent and ability to hold these securiti es for a period of time sufficient to allow for any anticipated recovery in the market value. If it is determined that the impairment on an equity security is other-than-temporary, an impairment loss equal to the difference between the amortized cost of th e security and its fair value is recognized within noninterest income. Portfolio Loans and Leases Basis of a ccounting Portfolio loans and leases are generally reported at the principal amount outstanding, net of unearned income, deferred direct loan origination fees and costs and any direct principal charge-offs. Direct loan origination fees and costs are deferred and the net amount is amortized over the estimated life of the related loans as a yield adjustment. Interest income is recognized based on the principal balance outstanding computed using the effective interest method. Loans acquired by the Bancorp through a purchase business combination are recorded at fair value as of the acquisition date. The Bancorp does not carry over the acquired compan y’s ALLL, nor does the Bancorp add to its existing ALLL as part of purchase accounting. Purchased loans are evaluated for evidence of credit deterioration at acquisition and recorded at their initial fair value. For loans acquired with no evidence of credi t deterioration, the fair value discount or premium is amortized over the contractual life of the loan as an adjustment to yield. For loans acquired with evidence of credit deterioration, the Bancorp determines at the acquisition date the excess of the loa n’s contractually required payments over all cash flows expected to be collected as an amount that should not be accreted into interest income (nonaccretable difference). The remaining amount representing the difference in the expected cash flows of acquir ed loans and the initial investment in the acquired loans is accreted into interest income over the remaining life of the loan or pool of loans (accretable yield). Subsequent to the acquisition date, increases in expected cash flows over those expected at the acquisition date are recognized prospectively as interest income over the remaining life of the loan. The present value of any decreases in expected cash flows resulting directly from a change in the contractual interest rate are recognized prospective ly as a reduction of the accretable yield. The present value of any decreases in expected cash flows after the acquisition date as a result of credit deterioration is recognized by recording an ALLL or a direct charge-off. Subsequent to the acquisition dat e, the methods utilized to estimate the required ALLL are similar to originated loans. This method of accounting for loans acquired with deteriorated cr edit quality does not apply to loans carried at fair value, residential mortgage loans held for sale and loans un der revolving credit agreements. The Bancorp’s lease portfolio consists of both direct financing and leveraged leases. Direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, les s unearned income. Interest income on direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Leveraged leases are carried at the aggregate of lease payments (less nonrec ourse debt payments) plus estimated residual value of the leased property, less unearned income. Interest income on leveraged leases is recognized over the term of the lease to achieve a constant rate of return on the outstanding investment in the lease, n et of the related deferred income tax liability, in the years in which the net investment is positive. Nonaccrual loans and l eases When a loan is placed on nonaccrual status, the accrual of interest, amortization of loan premium, accretion of loan discount and amortization/accretion of deferred net direct loan origination fees or costs are discontinued and all previously accrued and u npaid interest is charged against income. Commercial loans are placed on nonaccrual status when there is a clear indication that the borrower’s cash flows may not be sufficient to meet payments as they become due. Such loans are also placed on nonaccrual s tatus when the principal or interest is past due 90 days or more, unless the loan is both well-secured and in the process of collection. The Bancorp classifies residential mortgage loans that have principal and interest payments that have become past due 1 50 days as nonaccrual unless the loan is both well-secured and in the process of collection. Residential mortgage loans may stay on non accrual status for an extended time as the foreclosure process typically lasts longer than 180 days. Home equity loans an d lines of credit are reported on nonaccrual status if principal or interest has been in default for 90 days or more unless the loan is both well-secured and in the process of collection. Home equity loans and lines of credit that have been in default for 60 days or more are also reported on nonaccrual status if the senior lien has been in default 120 days or more, unless the loan is both well secured and in the process of collection. Residential mortgage, home equity, automobile and other consumer loans an d leases that have been modified in a TDR and subsequently become past due 90 days are placed on nonaccrual status unless the loan is both well-secured and in the process of collection. Commercial and credit card loans that have been modified in a TDR are classified as nonaccrual unless such loans have sustained repayment performance of six months or more and are reasonably assured of repayment in accordance with the restructured terms. Well-secured loans are collateralized by perfected security interests i n real and/or personal property for which the Bancorp estimates proceeds from the sale would be sufficient to recover the outstanding principal and accrued interest balance of the loan and pay all costs to sell the collateral. The Bancorp considers a loan in the process of collection if collection efforts or legal action is proceeding and the Bancorp expects to collect funds sufficient to bring the loan current or recover the entire outstanding principal and accrued interest balance. Nonaccrual commercial l oans and nonaccrual credit card loans are generally accounted for on the cost recovery method. The Bancorp believes the cost recovery method is appropriate for nonaccrual commercial loans and nonaccrual credit card loans because the assessment of collectab ility of the remaining recorded investment of these loans involves a high degree of subjectivity and uncertainty due to the nature or absence of underlying collateral. Under the cost recovery method, any payments received are applied to reduce principal. O nce the entire recorded investment is collected, additional payments received are treated as recoveries of amounts previously charged-off until recovered in full, and any subsequent payments are treated as interest income. Nonaccrual residential mortgage l oans and other nonaccrual consumer loans are generally accounted for on the cash basis method. The Bancorp believes the cash basis method is appropriate for nonaccrual residential mortgage and other nonaccrual consumer loans because such loans have general ly been written down to estimated collateral values and the collectability of the remaining investment involves only an assessment of the fair value of the underlying collateral, which can be measured more objectively with a lesser degree of uncertainty th an assessments of typical commercial loan collateral. Under the cash basis method, interest income is recognized when cash is received, to the extent such income would have been accrued on the loan’s remaining balance at the contractual rate. Nonaccrual lo ans may be returned to accrual status when all delinquent interest and principal payments become current in accordance with the loan agreement and are reasonably assured of repayment in accordance with the contractual terms of the loan agreement, or when t he loan is both well-secured and in the process of collection. Commercial loans on nonaccrual status, including those modified in a TDR, as well as criticized commercial loans with aggregate borrower relationships exceeding $1 million, are subject to an in dividual review to identify charge-offs. The Bancorp does not have an established delinquency threshold for partially or fully charging off commercial loans. Residential mortgage loans, home equity loans and lines of credit and credit card loans that have principal and interest payments that have become past due 180 days are assessed for a charge-off to the ALLL, unless such loans are both well-secured and in the process of collection. Home equity loans and lines of credit are also assessed for charge-off t o the ALLL when such loans or lines of credit have become past due 120 days if the senior lien is also 120 days past due, unless such loans are both well-secured and in the process of collection. Automobile and other consumer loans and leases that have pri ncipal and interest payments that have become past due 120 days are assessed for a charge-off to the ALLL, unless such loans are both well-secured and in the process of collection. Restructured loans and l eases A loan is accounted for as a TDR if the Banc orp, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. A TDR typically involves a modification of terms such as a reduction of the stated interest rate or remaining principal amount of the loan, a reduction of accrued interest or an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk. In 2012, the OCC, a national bank regulatory agen cy, issued interpretive guidance that requires non-reaffirmed loans included in Chapter 7 bankruptcy filings to be accounted for as nonperforming TDRs and collateral dependent loans regardless of their payment history and capacity to pay in the future. The Bancorp’s banking subsidiary is a state chartered bank which therefore is not subject to guidance of the OCC. The Bancorp does not consider the bankruptcy court’s discharge of the borrower’s debt a concession when the discharged debt is not reaffirmed and as such, these loans are classified as TDRs only if one or more of the previously mentioned concessions are granted. The Bancorp measures the impairment loss of a TDR based on the difference between the original loan’s carrying amount and the present valu e of expected future cash flows discounted at the original, effective yield of the loan. Residential mortgage loans, home equity loans, automobile loans and other consumer loans modified as part of a TDR are maintained on accrual status, provided there is reasonable assurance of repayment and of performance according to the modified terms based upon a current, well-documented credit evaluation. Commercial loans and credit card loans modified as part of a TDR are maintained on accrual status provided there i s a sustained payment history of six months or more prior to the modification in accordance with the modified terms and collectability is reasonably assured for all remaining contractual pa yments under the modified terms . TDRs of commercial loans and credi t cards that do not have a sustained payment history of six months or more in accordance with their modified terms remain on nonaccrual status until a six month payment history is sustained. In certain cases, commercial TDRs on nonaccrual status may be acc ounted for using the cash basis method for income recognition, provided that full repayment of principal under the modified terms of the loan is reasonably assured. Impaired loans and l eases A loan is considered to be impaired when, based on current infor mation and events, it is probable that the Bancorp will be unable to collect all amounts due (including both principal and interest) according to the contractual terms of the loan agreement. Impaired loans generally consist of nonaccrual loans and leases, loans modified in a TDR and loans over $ 1 million that are currently on accrual status and not yet modified in a TDR, but for which the Bancorp has determined that it is probable that it will grant a payment concession in the near term due to the borrower’ s financial difficulties. For loans modified in a TDR, the contractual terms of the loan agreement refer to the terms specified in the original loan agreement. A loan restructured in a TDR is no longer considered impaired in years after the restructuring i f the restructuring agreement specifies a rate equal to or greater than the rate the Bancorp was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan is not impaired based on the terms specified by the restruc turing agreement. Refer to the ALLL section for discussion regarding the Bancorp’s methodology for identifying impaired loans and determination of the need for a loss accrual. Loans and Leases Held for Sale Loans and leases held for sale primarily represent conforming fixed-rate residential mortgage loans originated or acquired with the intent to sell in the secondary market and jumbo residential mortgage loans, commercial loans, other residential mortgage loans and other consumer loans that managem ent has the intent to sell. Loans and leases held for sale may be carried at the lower of cost or fair value, or carried at fair value where the Bancorp has elected the fair value option of accounting under U.S. GAAP. The Bancorp has elected to measure cer tain groups of loans held for sale under the fair value option, including certain residential mortgage loans originated as held for sale and certain purchased commercial loans designated as held for sale at acquisition . For loans in which the Bancorp has n ot elected the fair value option, the lower of cost or fair value is determined at the individual loan level. The fair value of residential mortgage loans held for sale for which the fair value election has been made is estimated based upon mortgage-backed securities prices and spreads to 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 portfo lio composition includes the effects 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. These fair value marks are recorded as a component of nonin terest income in mortgage banking net revenue. The Bancorp generally has commitments to sell residential mortgage loans held for sale in the secondary market. Gains or losses on sales are recognized in mortgage banking net revenue. Management’s intent to s ell residential mortgage loans classified as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be recla ssified to loans held for investment and, thereafter, reported within the Bancorp’s residential mortgage class of portfolio loans and leases. In such cases, the residential mortgage loans will continue to be measured at fair value, which is based on mortga ge-backed securities prices, interest rate risk and an internally developed credit component. Loans and leases held for sale are placed on nonaccrual status consistent with the Bancorp’s nonaccrual policy for portfolio loans and leases. Other Real Estate Owned OREO, which is included in other assets, represents property acquired through foreclosure or other proceedings and is carried at the lower of cost or fair value, less costs to sell. All OREO property is periodically evaluated for impairment and decre ases in carrying value are recognized as reductions in other noninterest income in the Consolidated Statements of Income. For government-guaranteed mortgage loans, upon foreclosure, a separate other receivable is recognized if certain conditions are met fo r the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. This receivable is also included in other assets, separate from OREO, in the Consolidated Balance Sheets. ALLL The Bancorp disaggregates its portfolio l oans and leases into portfolio segments for purposes of determining the ALLL. The Bancorp’s portfolio segments include commercial, residential mortgage and consumer. The Bancorp further disaggregates its portfolio segments into classes for purposes of moni toring and assessing credit quality based on certain risk characteristics. Classes within the commercial portfolio segment include commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leasing. The residential mortgage portfolio segment is also considered a class. Classes within the consumer portfolio segment include home equity, automobile, credit card and other consumer loans and leases. For an analysis of the Bancorp’s ALLL by portfolio segment and credit quality information by class, refer to Note 6 . The Bancorp maintains the ALLL to absorb probable loan and lease losses inherent in its portfolio segments. The ALLL is maintained at a level the Bancorp considers to be adequate and is based on ongoing quarterly assessments and evaluations of the collectability and historical loss experience of loans and leases. Credit losses are charged and recoveries are credited to the ALLL. Provisions for loan and lease losses are based on the Bancorp’s review of the historical credit loss experience and such factors that, in management’s judgment, deserve consideration under existing economic conditions in estimating probable credit losses. The Bancorp’s strategy for credit risk ma nagement includes a combination of conservative exposure limits significantly below legal lending limits and conservative underwriting, documentation and collections standards. The strategy also emphasizes diversification on a geographic, industry and cust omer level, regular credit examinations and quarterly management reviews of large credit exposures and loans experiencing deterioration of credit quality. The Bancorp’s methodology for determining the ALLL is based on historical loss rates, current credit grades, specific allocation on loans modified in a TDR and impaired commercial credits above specified thresholds and other qualitative adjustments. Allowances on individual commercial loans, TDRs and historical loss rates are reviewed quarterly and adjust ed as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off experience. An unallocated allowance is maintained to recognize the imprecision in estimating and measuring losses when evaluating allowances for p ools of loans. Larger commercial loans included within aggregate borrower relationship balances exceeding $ 1 million that exhibit probable or observed credit weaknesses, as well as loans that have been modified in a TDR, are subject to individual review for impairment. The Bancorp considers the current 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 individua l loan is impaired. Other factors may include the industry and geographic region of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower and the Bancorp’s evaluation of the borrower’s management. When individua l loans are impaired, allowances are determined based on management’s estimate of the borrower’s ability to repay the loan given the availability of collateral and other sources of cash flow, as well as an evaluation of legal options available to the Banco rp. Allowances for impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, fair value of the underlying collateral or readily observable secondary market values. The Bancorp eva luates the collectability of both principal and interest when assessing the need for a loss accrual. Historical credit loss rates are applied to commercial loans that are not impaired or are impaired, but smaller than the established threshold of $ 1 millio n and thus not subject to specific allowance allocations. The loss rates are derived from migration analyses for several portfolio stratifications, which track the historical net charge-off experience sustained on loans according to their internal risk gra de. The risk grading system utilized for allowance analysis purposes encompasses ten categories. Homogenous loans and leases in the residential mortgage and consumer portfolio segments are not individually risk graded. Rather, standard credit scoring syst ems and delinquency monitoring are used to assess credit risks and allowances are established based on the expected net charge-offs. Loss rates are based on the trailing twelve month net charge-off history by loan category. Historical loss rates may be adj usted for certain prescriptive and qualitative factors that, in management’s judgment, are necessary to reflect losses inherent in the portfolio. The prescriptive loss rate factors include adjustments for delinquency trends, LTV trends and refreshed FICO s core trends. The Bancorp also considers qualitative factors in determining the ALLL. These include adjustments for changes in policies or procedures in underwriting, monitoring or collections, economic conditions, portfolio mix, lending and risk management personnel, results of internal audit and quality control reviews, collateral values and geographic concentrations. The Bancorp considers home price index trends when determining the collateral value qualitative factor. The Bancorp’s primary market areas for lending are the Midw estern and Southeastern regions of the U .S. When evaluating the adequacy of allowances, consideration is given to these regional geographic concentrations and the closely associated effect changing economic conditions have on the Ba ncorp’s customers. In the current year, the Bancorp has not substantively changed any material aspect to its overall approach to determining its ALLL for any of its portfolio segments. There have been no material changes in criteria or estimation technique s as compared to prior periods that impacted the determination of the current period ALLL for any of the Bancorp’s portfolio segments. Reserve for Unfunded Commitments The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in other liabilities in the Consolidated Balance Sheets. The determination of the adequacy of the reserve is based upon an evaluation of the unfunded c redit facilities, including an assessment of historical commitment utilization experience, credit risk grading and historical loss rates based on credit grade migration. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the Bancorp’s ALLL, as previously discussed. Net adjustments to the reserve for unfunded commitments are included in other noninterest expense in the Consolidated Statements of Income. Loan Sales and Securitizations The Bancorp periodically sells loans through either securitizations or individual loan sales in accordance with its investment policies. The sold loans are removed from the Consolidated Balance S heet and a net gain or loss is recognized in the Consolidated Financial Statements at the time of sale. The Bancorp typically isolates the loans through the use of a VIE and thus is required to assess whether the entity holding the sold or securitized loans is a VIE and whether the Bancorp is the primary beneficiary and therefore consolidator of that VIE. If the Bancorp holds the power to direct activities most significant to the economic performance of the VIE and has the obligation to absorb losses or right to receive benefits that could potentially be significant to the VIE, then the Bancorp will generally be deemed the primary beneficiary of the VIE. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for under t he equity method of accounting or other accounting standards as appropriate. Refer to Note 11 for further information on consolidated and non-consolidated VIEs. The Bancorp’s loan sales and securitizations are generally structured with servicing r etaine d, which often results in the recording of servicing rights. The Bancorp may also purchase servicing rights. Effective January 1, 2017, the Bancorp elected to prospectively adopt the fair value method for all existing classes of its residential mortgage se rvicing 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 Consolidated Statements of Income in the period in which the changes occur. The election of the fair value method did not require 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. Servicing rights are valued using internal OAS models. Key economic assumptions used in estimating the fair value of the servicing rights include the prepayment speeds of the underlying loans, the weighted-average life, the OAS spread and t he weighted-average coupon rate, as applicable. The primary risk of material changes to the value of the servicing rights resides in the potential volatility in the economic assumptions used, particularly the prepayment speeds. In order to assist in the as sessment of the fair value of servicing rights, the Bancorp obtains external valuations of the servicing rights portfolio from third parties and participates in peer surveys that provide additional confirmation of the reasonableness of the key assumptions utilized in the internal OAS model. 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 right s were tested for impairment monthly, based on fair value, with temporary impairment recognized through a valuation allowance and other-than-temporary impairment recognized through a write-off of the servicing asset and related valuation allowance. Amortiz ation and provisions for impairment of servicing rights were recorded as a component of mortgage banking net revenue in the Consolidated Statements of Income. Fees received for servicing loans owned by investors are based on a percentage of the outstandin g monthly principal balance of such loans and are included in noninterest income in the Consolidated Statements of Income as loan payments are received. Costs of servicing loans are charged to expense as incurred. Reserve for Representation and Warranty P rovisions Conforming residential mortgage loans sold to unrelated third parties are 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 gen eral, only when a loss results from the breach. The Bancorp may be required to repurchase any previously sold loan or indemnify (make whole) the investor or insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading. The Bancorp establishes a residential mortgage repurchase reserve related to various representations and warranties that reflects management’s estimate of losses based on a combination of factors. The Bancorp’s estimation process requires m a |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 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 years ended December 31: ($ in millions) 2017 2016 2015 Cash Payments: Interest $ 699 578 475 Income taxes 1,035 800 400 Transfers: Portfolio loans to loans held for sale 255 238 487 Loans held for sale to portfolio loans 29 28 288 Portfolio loans to OREO 34 49 105 |
Restriction on Cash, Dividends
Restriction on Cash, Dividends and Other Capital Actions | 12 Months Ended |
Dec. 31, 2017 | |
Restriction On Cash | |
Restriction on Cash, Dividends and Other Capital Actions | 3 . RESTRICTIONS ON CASH, DIVIDENDS AND OTHER CAPITAL ACTIONS Reserve Requirement The FRB, under Regulation D, requires that banks hold cash in reserve against deposit liabilities when total reservable deposit liabilities are greater than the regulatory exemption , kn own as the reserve requirement. The reserve requirement is calculated based on a two-week average of daily net transaction account deposits as defined by the FRB and may be satisfied with average vault cash during the following two-week maintenance period . When vault cash is not suffici ent to meet the reserve requirement, the remaining amount must be satisfied with average funds held at the FRB. At December 31, 2017 and 2016 , th e Bancorp’s banking subsidiary reserve requirement was $ 1. 5 billion and $ 1. 6 billion, respectively. Addit ionally, the Bancorp’s banking subsidiary average reserve requirement was $ 1.4 b illion and $ 1. 6 billion in 2017 and 2016 , respectively. Restrictions on Cash Dividends The principal source of income and funds for the Bancorp (parent company) are divi dends from its subsidiaries. The dividends paid by the Bancorp’s banking subsidiary are subject to regulations and limitations prescribed by state and federal supervisory agencies. The Bancorp’s banking subsidiary paid the Bancorp’s nonbank subsidiary hold ing company , which in turn paid the Bancorp $ 2.3 billion and $ 1.9 b illion in dividends during the years ended December 31, 2017 and 2016 , respectively. The Bancorp’s nonbank-subsidiaries are also limited by certain federal and state statutory provisi ons and regulations covering the amount of dividends that may be paid in any given year. Capital Actions In 2011, the FRB adopted the capital plan rule, which requires BHCs with consolidated assets of $ 50 billion or more to submit annual capital plans to the FRB for review. Under the rule, these capital plans must include detailed descriptions of the following: the BHC’s internal processes for assessing capital adequacy; the policies governing capital actions such as common stock issuances, dividends and s hare repurchases; and all planned capital actions over a nine-quarter planning horizon. Further, each BHC must also report to the FRB the results of stress tests conducted by the BHC under a number of scenarios that assess the sources and uses of capital u nder baseline and stressed economic scenarios. The FRB launched the 2017 stress testing program and CCAR on February 3, 2017 , with submissions of stress te st results and capital plans to the FRB due on April 5, 2017 , which the Bancorp submitted as required. The FRB’s review of the capital plan assessed the comprehensiveness of the capital plan, the reasonableness of the assumptions and the analysis underlying the capital plan. Additionally, the FRB reviewed the robustness of the capital adequacy pro cess, the capital policy and the Bancorp’s ability to maintain capital above each minimum regulatory capital ratio on a pro forma basis under expected and stressful conditions throughout the planning horizon. On June 28, 2017, the Bancorp announced the re sults of its capital plan submitted to the FRB as part of the 2017 CCAR. For BHCs that proposed capital distributions in their plans, the FRB either objected to the plan or provided a non-objection whereby the FRB permitted the proposed capital distributio ns. The FRB indicated to the Bancorp that it did not object to the following capital actions for the period beginning July 1, 2017 and ending June 30, 2018: The increase in the quarterly common stock dividend to $0.16 from $0.14 beginning in the third quar ter of 2017 and to $0.18 beginning in the second quarter of 2018 ; The repurchase of common shares in an amount up to $ 1.161 billion, or a 76% increase over the 2016 capital plan. These repurchases include $ 88 million in repurchases related to share issuan ces under employee benefit plans and $ 48 million in repurchases related to previously-recognized TRA transaction after-tax gains; The additional ability to repurchase common shares in the amount of any after-tax capital generated from the sale of Vantiv, Inc. common stock; The additional ability to repurchase common shares in the amount of any after-tax cash income generated from the termination and settlement of gross cash flows from existing TRAs with Vantiv, Inc. or potential future TRAs that may be generated from additional sales of Vantiv, Inc. The Bancorp recognized a gain on sale of Vantiv, Inc. shares of $ 1.0 billion during the year ended December 31, 2017 and also entered into accelerated share repurchase transactions during the years ended December 31, 2017 and 2016 . For more information related to these transactions, refer to Note 19 and Note 23 . In the third quarter of 2017, the Bancorp increased the quarterly common stock dividend to $ 0.16 . |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investment Securities | |
Investment Securities | 4 . INVESTMENT SECURITIES The following table provides the amortized cost, fair value and unrealized gains and losses for the major categories of the available-for-sale and other and held-to-maturity investment securities portfolios as of December 31: 2017 2016 Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair ($ in millions) Cost Gains Losses Value Cost Gains Losses Value Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 98 - - 98 547 2 - 549 Obligations of states and political subdivisions securities 43 1 - 44 44 1 - 45 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 15,281 118 (80) 15,319 15,525 178 (95) 15,608 Agency commercial mortgage-backed securities 10,113 92 (38) 10,167 9,029 87 (61) 9,055 Non-agency commercial mortgage-backed securities 3,247 51 (5) 3,293 3,076 51 (15) 3,112 Asset-backed securities and other debt securities 2,183 46 (11) 2,218 2,106 28 (18) 2,116 Equity securities (b) 679 4 (2) 681 697 3 (2) 698 Total available-for-sale and other securities $ 31,644 312 (136) 31,820 31,024 350 (191) 31,183 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 22 - - 22 24 - - 24 Asset-backed securities and other debt securities 2 - - 2 2 - - 2 Total held-to-maturity securities $ 24 - - 24 26 - - 26 Includes interest-only mortgage-backed securities of $ 34 and $ 60 as of December 31, 2017 and 2016 , respectively, recorded at fair value with fair value changes recorded in securities gains, net , i n the Consolidated Statements of Income . Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 362 , and $ 2 , respectively, at December 31, 2017 and $ 248 , $ 358 and $ 1 , respectively, at December 31, 2016 , that are carried at cost, and certain mutual fund and equity security holdings. Trading securities were $862 million as of December 31, 2017 compared to $410 million at December 31, 2016. The following table presents net realized gains and losses that were recognized in income from available-for-sale and other securities as well as total gains and losses that were recognized in income from trading securities for the years ended December 31: ($ in millions) 2017 2016 2015 Available-for-sale and other securities: Realized gains $ 85 72 97 Realized losses (34) (45) (76) OTTI (54) (16) (5) Net realized (losses) gains on available-for-sale and other securities (a) $ (3) 11 16 Total trading securities gains (losses) (b) $ 10 - (7) Total gains and losses recognized in income from available-for-sale and other securities and trading securities $ 7 11 9 Excludes net losses on interest-only mortgage-backed securities of $ 2 , $ 4 and $ 4 for the years ended December 31, 2017 , 2016 and 2015 , respectively Includes a net gain of $ 1 and net losses of $ 3 and $ 4 for the years ended December 31, 2017 , 2016 and 2015 , respectively , recorded in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income. The following table provides a summary of OTTI by security type: ($ in millions) 2017 2016 2015 Available-for-sale and other debt securities $ (54) (15) (5) Available-for-sale equity securities - (1) - Total OTTI (a) $ (54) (16) (5) (a) Included in securities gains, net, in the Consolidated Statements of Income. At December 31, 2017 and 2016 , securities with a fair value of $ 7.8 billion and $ 1 0.1 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 December 31, 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 $ 140 141 5 5 1-5 years 9,695 9,707 13 13 5-10 years 17,592 17,734 4 4 Over 10 years 3,538 3,557 2 2 Equity securities 679 681 - - Total $ 31,644 31,820 24 24 (a) Actual maturities may differ from contractu al maturities when a right to call or prepay obligations exists with or without call or prepayment penalties. The following table provides the fair value and gross unrealized losses on available-for-sale and other securities in an unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized ($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses 2017 U.S. Treasury and federal agencies securities $ 98 - - - 98 - Agency residential mortgage-backed securities 7,337 (59) 479 (21) 7,816 (80) Agency commercial mortgage-backed securities 2,900 (22) 526 (16) 3,426 (38) Non-agency commercial mortgage-backed securities 449 (2) 145 (3) 594 (5) Asset-backed securities and other debt securities 317 (2) 386 (9) 703 (11) Equity securities - - 37 (2) 37 (2) Total $ 11,101 (85) 1,573 (51) 12,674 (136) 2016 U.S. Treasury and federal agencies securities 199 - - - 199 - Agency residential mortgage-backed securities $ 6,223 (88) 172 (7) 6,395 (95) Agency commercial mortgage-backed securities 3,183 (61) - - 3,183 (61) Non-agency commercial mortgage-backed securities 1,052 (15) - - 1,052 (15) Asset-backed securities and other debt securities 422 (8) 336 (10) 758 (18) Equity securities - - 37 (2) 37 (2) Total $ 11,079 (172) 545 (19) 11,624 (191) At December 31, 2017 and 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 | 12 Months Ended |
Dec. 31, 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 commercial loan portfolio consists of lending to various industry types. Management periodically reviews the performance of its loan and lease products to evaluate whether they are performing within acceptable interest rate and credit risk levels and changes are made to underwriting policies and procedures as needed. The Bancorp maintains an allowance to absorb loan and lease losses inherent in the portfo lio. For further information on credit quality and the ALLL, refer to Note 6 . The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans classified based upon product or collateral as of December 31: ($ in millions) 2017 2016 Loans and leases held for sale: Commercial and industrial loans $ - 60 Commercial mortgage loans 6 5 Residential mortgage loans 486 686 Total loans and leases held for sale $ 492 751 Portfolio loans and leases: Commercial and industrial loans $ 41,170 41,676 Commercial mortgage loans 6,604 6,899 Commercial construction loans 4,553 3,903 Commercial leases 4,068 3,974 Total commercial loans and leases 56,395 56,452 Residential mortgage loans 15,591 15,051 Home equity 7,014 7,695 Automobile loans 9,112 9,983 Credit card 2,299 2,237 Other consumer loans 1,559 680 Total consumer loans 35,575 35,646 Total portfolio loans and leases $ 91,970 92,098 Total portfolio loans and leases are recorded net of unearned income, which totaled $ 5 23 million as of December 31, 2017 and $ 503 m illion as of December 31, 2016 . Additionally, portfolio loans and leases are recorded net of unamortized premiums and discount s, deferred direct loan origination fees and costs and fair value adjustments (associated with acquired loans or loans designated as fair value upon origination) which totaled a net premium of $ 282 million and $ 240 million as of December 31, 2017 and 2016 , r espectively . The Bancorp’s FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $ 13.0 billion and $ 13.1 billion at December 31, 2017 and 2016 , respectively, pledged at the FHLB, and loans of $ 39. 8 billion and $ 40.0 billion a t December 31, 2017 and 2016 , respectively, pledged at the FRB. The following table presents a summary of the total loans and leases owned by the Bancorp and net charge-offs (recoveries) as of and for the years ended December 31: 90 Days Past Due Net Carrying Value and Still Accruing Charge-Offs (Recoveries) ($ in millions) 2017 2016 2017 2016 2017 2016 Commercial and industrial loans $ 41,170 41,736 3 4 111 172 Commercial mortgage loans 6,610 6,904 - - 12 15 Commercial construction loans 4,553 3,903 - - - (1) Commercial leases 4,068 3,974 - - 2 4 Residential mortgage loans 16,077 15,737 57 49 7 10 Home equity 7,014 7,695 - - 19 27 Automobile loans 9,112 9,983 10 9 37 35 Credit card 2,299 2,237 27 22 84 80 Other consumer loans 1,559 680 - - 26 20 Total loans and leases $ 92,462 92,849 97 84 298 362 Less: Loans and leases held for sale $ 492 751 Total portfolio loans and leases $ 91,970 92,098 The Bancorp engages in commercial lease products primarily related to the financing of commercial equipment. The Bancorp had $ 3.4 billion and $ 3. 3 billion of direct financing leases , net of unearned income, at December 31, 2017 and 2016 , respectively, and $ 674 million and $ 7 01 million of leveraged leases , net of unearned income, at December 31, 2017 and 2016 , respectively. Pre-tax loss from leveraged leases was $ 11 million during the year ended December 31, 2017 , which included a remeasurement of $ 27 millio n related to the tax treatment of leveraged leases resulting from the impact of the TCJA during the fourth quarter of 2017. Excluding the impact of the remeasurement, pre-tax income from leveraged leases was $ 16 million during the year ended December 31, 2017 . Pre-tax income from leveraged leases was $ 38 million and included $ 16 million of gains on early terminations during the year ended D ecember 31, 2016 . T he tax effect of this income was an expense of $ 6 million and a benefit of $ 10 million during th e years ended December 31, 2017 and 2016 , respectively . The following table provides the components of the commercial lease financing portfolio as of December 31: ($ in millions) 2017 2016 Rentals receivable, net of principal and interest on nonrecourse debt $ 3,684 3,551 Estimated residual value of leased assets 885 903 Initial direct cost, net of amortization 22 23 Gross investment in lease financing 4,591 4,477 Unearned income (523) (503) Net investment in commercial lease financing (a) $ 4,068 3,974 The accumulated allowance for uncollectible minimum lease payments was $ 14 and $ 15 at December 31, 2017 and 2016 , respectively. The Bancorp periodically reviews residual values associated with its leasing portfolio. Declines in residual values that are deemed to be other-than-temporary are recognized as a loss. The Bancorp recognized $ 4 million and $ 1 million of residual value write-downs related to commercial leases for the year s ended December 31, 2017 and 2016 , respectively. The residual value write-downs related to commercial leases are recorded in corporate banking revenue in the Consolidated Statements of Income. At December 31, 2017 , the minimum future lease payments recei vable for each of the years 2018 through 202 2 was $ 865 million, $ 814 million, $ 625 million, $ 463 million and $ 414 million, respectively. |
Credit Quality and the Allowanc
Credit Quality and the Allowance for Loan and Lease Losses | 12 Months Ended |
Dec. 31, 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 ALLO WANCE FOR LOAN AND LEASE LOSSES The Bancorp disaggregates ALLL balances and transactions in the ALLL by portfolio segment. Credit quality related disclosures for loans and leases are further disaggregated by class . Allowance for Loan and Lease Losses The following tables summarize transactions in the ALLL by portfolio segment for the years ended December 31: Residential 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 831 96 214 112 1,253 Losses charged-off (154) (15) (212) - (381) Recoveries of losses previously charged-off 29 8 46 - 83 Provision for loan and lease losses 66 - 186 9 261 Deconsolidation of a VIE (a) (19) - - (1) (20) Balance, end of period $ 753 89 234 120 1,196 (a) Refer to Note 11 for further discussion on the deconsolidation of a VIE. Residential 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 840 100 217 115 1,272 Losses charged-off (232) (19) (205) - (456) Recoveries of losses previously charged-off 42 9 43 - 94 Provision for loan and lease losses 181 6 159 (3) 343 Balance, end of period $ 831 96 214 112 1,253 Residential 2015 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 875 104 237 106 1,322 Losses charged-off (298) (28) (216) - (542) Recoveries of losses previously charged-off 37 11 48 - 96 Provision for loan and lease losses 226 13 148 9 396 Balance, end of period $ 840 100 217 115 1,272 The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: Residential As of December 31, 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 94 a 64 42 - 200 Collectively evaluated for impairment 659 25 192 - 876 Unallocated - - - 120 120 Total ALLL $ 753 89 234 120 1,196 Portfolio loans and leases: (b) Individually evaluated for impairment $ 560 a 665 320 - 1,545 Collectively evaluated for impairment 55,835 14,787 19,664 - 90,286 Loans acquired with deteriorated credit quality - 2 - - 2 Total portfolio loans and leases $ 56,395 15,454 19,984 - 91,833 Includes $ 1 related to leveraged leases at December 31, 2017 . Excludes $ 137 of residential mortgage loans measured at fair value, and includes $ 674 of leveraged leases, net of unearned income, at December 31, 2017 . Residential As of December 31, 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 118 (c) a 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) a 652 371 - 1,927 Collectively evaluated for impairment 55,548 14,253 20,224 - 90,025 Loans acquired with deteriorated credit quality - 3 - - 3 Total portfolio loans and leases $ 56,452 14,908 20,595 - 91,955 Includes $ 2 related to leveraged leases at December 31, 2016 . Excludes $ 143 of residential mortgage loans measured at fair value , and includes $ 701 of leveraged leases, net of unearned income at December 31, 2016 . Includes five restruc tured loans at December 31, 2016 associated with a consolida ted VIE in which the Bancorp had no continuing credit risk due to the risk being assumed by a third party, w ith a recorded investment of $26 and an ALLL of $18 . Refer to Note 11 for further discussion on the deconsolidation of a VIE associated with these loans in the third quarter of 2017. C REDIT 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, commerc ial construction and commercial leas es . To facilitate the monitoring of credit quality within the commercial portfolio segment, and for purposes of analyzing historical loss rates used in the determination of the ALLL for the commercial portfolio segment, the Bancorp utilizes the following categories of credit grades: pass, special mention, substandard, doubtful and loss. The five categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borr owers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers that do not have identified potential or well defined weaknesses and for which there is a high likelihood of orderly repayment, are updated at least annually ba sed on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter. The Bancorp assigns a special mention rating to loans and leases that have potent ial weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or lease or the Bancorp’s credit position. The Bancorp assigns a substandard rating to loans and leases that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans and leases have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Bancorp will sustain some loss if the deficiencies noted are not addressed and corrected. The Bancorp assigns a doubtf ul rating to loans and leases that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionab le and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estima ted loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. Loans and leases cl assified as loss are considere d uncollectible and are charged- off in the period in which they are determined to be uncollectible. Because loans and leases in this category are ful ly charged-off , they are not included in the following tables. The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class: Special As of December 31, 2017 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 38,813 1,115 1,235 7 41,170 Commercial mortgage owner-occupied loans 3,207 75 80 - 3,362 Commercial mortgage nonowner-occupied loans 3,117 28 97 - 3,242 Commercial construction loans 4,553 - - - 4,553 Commercial leases 3,922 72 74 - 4,068 Total commercial loans and leases $ 53,612 1,290 1,486 7 56,395 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 Segments For purposes of monitoring the credit quality and risk characteristics of its consumer portfolio segment, the Bancorp disaggregates the segment into the following classes: home equity, automobile loans, credit card and other consumer loans and leases. The Bancorp’s residential mortgage portfolio segment is also a separate class. The Bancorp considers repayment performance as the best indicator of credit quality for residential mortgage and consumer loans , which includes both the delinquency status and performing versus nonperforming status of the loans. The delinquency status of all residential mortgage and consumer loans is presented by class in the age analysis section while the performing versus nonper forming status is presented in the following table . Refer to the nonaccrual loans and leases section of Note 1 for additional delinquenc y and nonperforming information . The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of December 31: 2017 2016 ($ in millions) Performing Nonperforming Performing Nonperforming Residential mortgage loans (a) $ 15,424 30 14,874 34 Home equity 6,940 74 7,622 73 Automobile loans 9,111 1 9,981 2 Credit card 2,273 26 2,209 28 Other consumer loans 1,559 - 680 - Total residential mortgage and consumer loans (a) $ 35,307 131 35,366 137 (a) Excludes $ 137 and $ 143 of residential mortgage loans measured at fair value at December 31, 2017 and 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 December 31, 2017 ($ in millions) Leases (b)(c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 41,027 42 101 143 41,170 3 Commercial mortgage owner-occupied loans 3,351 3 8 11 3,362 - Commercial mortgage nonowner-occupied loans 3,235 - 7 7 3,242 - Commercial construction loans 4,552 1 - 1 4,553 - Commercial leases 4,065 3 - 3 4,068 - Residential mortgage loans (a) 15,301 66 87 153 15,454 57 Consumer loans: Home equity 6,888 70 56 126 7,014 - Automobile loans 8,992 107 13 120 9,112 10 Credit card 2,230 36 33 69 2,299 27 Other consumer loans 1,554 5 - 5 1,559 - Total portfolio loans and leases (a) $ 91,195 333 305 638 91,833 97 Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 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. A s of December 31, 2017 , $ 95 of these loans were 30-89 days past due and $ 290 were 90 days or more past due. The Bancorp recognized $ 5 of losses during the year ended December 31, 2017 due to claim denials and curtailments a ssociated with these insured or guaranteed loans. Includes accrual and nonaccrual loans and leases. Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2016 ($ in millions) Leases (b)(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) 14,790 37 81 118 14,908 49 Consumer loans: 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 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 . A s of December 31, 2016 , $ 110 of these loans were 30-89 days past due and $ 312 were 90 days or more past due. The Bancorp recognized $ 6 of losses during the year ended December 31, 2016 due to claim denials and curtailments associated with these insured or guaranteed loans . Includes accrual and nonaccrual loans and leases . Impaired Portfolio Loans and Leases Larger commercial loans and leases included within aggregate borrower relationship balances exceeding $ 1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp also performs an individual review on loans and leases that are restructured in a TDR . The Bancorp considers the current value of collateral, credit quality of any guarantees, the loan structure and other factors when evaluating whether an individu al loan or lease is impaired. Other factors may include the geography and industry of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower and the Bancorp’s evaluation of the borrower’s management. Smaller- bala nce homogenous loans or leases that are collectively evaluated for impairment are not included in the following tables. The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR as of December 31: Unpaid Principal Recorded 2017 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 433 358 87 Commercial mortgage owner-occupied loans 16 14 7 Commercial mortgage nonowner-occupied loans 4 3 - Commercial leases 4 4 - Restructured residential mortgage loans 469 465 64 Restructured consumer loans: Home equity 172 172 27 Automobile loans 8 7 1 Credit card 52 45 14 Total impaired portfolio loans and leases with a related ALLL $ 1,158 1,068 200 With no related ALLL: Commercial loans: Commercial and industrial loans $ 151 131 - Commercial mortgage owner-occupied loans 18 15 - Commercial mortgage nonowner-occupied loans 35 35 - Restructured residential mortgage loans 218 200 - Restructured consumer loans: Home equity 97 94 - Automobile loans 2 2 - Total impaired portfolio loans with no related ALLL $ 521 477 - Total impaired portfolio loans and leases $ 1,679 1,545 (a) 200 Includes $ 249 , $ 652 and $ 275 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 150 , $ 13 and $ 45 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2017 . Unpaid Principal Recorded 2016 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 440 414 94 Commercial mortgage owner-occupied loans (b) 24 16 5 Commercial mortgage nonowner-occupied loans 7 6 1 Commercial leases 2 2 - Restructured residential mortgage loans 471 465 68 Restructured consumer loans: 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: Home equity 107 104 - Automobile loans 3 2 - Total impaired portfolio loans and leases with no related ALLL $ 842 733 - Total impaired portfolio loans and leases $ 2,052 1,901 a (a) 212 Includes $ 322 , $ 635 and $ 323 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 192 , $ 17 and $ 48 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2016 . Ex cludes five restructured loans at December 31, 2016 associated with a consolidated VIE in which the Bancorp had 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 . Refer to Note 11 for further discussion on the deconsolidation o f a VIE associated with these loans in the third quarter of 2017. The following table summarizes the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the years ended December 31: 2017 2016 2015 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 579 10 691 10 663 21 Commercial mortgage owner-occupied loans (a) 35 - 63 1 92 2 Commercial mortgage nonowner-occupied loans 61 1 139 5 224 7 Commercial construction loans - - 3 - 41 1 Commercial leases 3 - 5 - 5 - Restructured residential mortgage loans 657 25 647 25 586 23 Restructured consumer loans: Home equity 281 12 325 12 361 13 Automobile loans 11 - 17 - 22 1 Credit card 50 4 56 5 68 6 Total average impaired portfolio loans and leases $ 1,677 52 1,946 58 2,062 74 Excludes five restructured loans associated with a consolid ated VIE in which the Bancorp had no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 13 , $ 26 and $ 27 for t he years ended December 31, 2017 , 2016, and 2015, respectively. An immaterial amount of interest income was recognized during t he years ended December 31, 2017 , 2016, and 2015. Refer to Note 11 for further discus sion on the deconsolidation of the VIE associated with these loans i n the third quarter of 2017. Excludes five restructured loans associated with a consolid ated VIE in which the Bancorp had no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 13 , $ 26 and $ 27 for t he years ended December 31, 2017 , 2016, and 2015, respectively. An immaterial amount of interest income was recognized during t he years ended December 31, 2017 , 2016, and 2015. Refer to Note 11 for further discus sion on the deconsolidation of the VIE associated with these loans i n the third quarter of 2017. Nonperforming Assets Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured commercial and credit card loans which have not yet met the requirements to be classified as a performing asset; restructured consumer loans which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property. The following table presents the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of December 31: ($ in millions) 2017 2016 Commercial loans and leases: Commercial and industrial loans $ 276 478 Commercial mortgage owner-occupied loans (c) 19 32 Commercial mortgage nonowner-occupied loans 7 9 Commercial leases 4 4 Total nonaccrual portfolio commercial loans and leases 306 523 Residential mortgage loans 30 34 Consumer loans: Home equity 74 73 Automobile loans 1 2 Credit card 26 28 Total nonaccrual portfolio consumer loans 101 103 Total nonaccrual portfolio loans and leases (a)(b) $ 437 660 OREO and other repossessed property 52 78 Total nonperforming portfolio assets (a)(b) $ 489 738 Excludes $ 6 and $ 13 of nonaccrual loans and leases held for sale at December 31, 2017 and 2016 , respectively. Includes $ 3 and $ 4 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at December 31, 2017 and 2016 , respectively, of which $ 3 and $ 1 are restructured nonaccrual government insured commercial loans at December 31, 2017 and 2016 , respectively . Excludes $ 19 of restructured nonaccrua l loans at December 31, 2016 associated with a consolidated VIE in which the Bancorp had no continuing credit risk due the risk being assumed by a third party. Refer to Note 11 for further discussion on the deconsolidation of the VIE associated with these loans in the third quarte 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 $ 235 million and $ 260 million as of December 31, 2017 and 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 collection of amount s due . Within each of the Bancorp’s loan classes, TDRs typically involve either a reduction of the stated interest rate of the loan, an extension o f the loan’s maturity date with a stated rate lower than the current market rate for a new loan with similar risk, or in limited circumstances, a reduction of the principal balance of the loan or the loan’s accrued interest. Modifying the terms of a loan may result in an increase or decrease to the ALLL depending upon the terms modified, the method used to measur e the ALLL for a loan prior to modification, and whether any charge-offs were recorded on the loan before o r at the time of modification. Ref er to the ALLL section of Note 1 for information on the Bancorp’s ALLL methodology. Upon modification of a loa n , the Bancorp measures the related imp airment as the difference between the estimated future cash fl ows expected to be collected on the modified loan, discounted at the original effective yield of the loan , and the carrying value of the loan. The resultin g 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 investment 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 . If a TDR involves a reduction of the principal balance of the loan or the loan’s accrued i nterest, that amount is charged- off to the ALLL. The Bancorp had commitments to lend additional funds to borrowers whose terms have been m odified in a TDR, consisting of line of credit and letter of credit commitments of $ 53 million and $ 78 million, respectively, as of December 31, 2017 compared with $ 82 million and $ 57 million, respectively, as of December 31, 2016 . The following tables provide a summary of loans and leases, by class, modified in a TDR by the Bancorp during the years ended December 31: Recorded Investment Increase Number of Loans in Loans Modified (Decrease) Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon 2017 ($ in millions) (a) During the Year (b) During the Year Modification Modification Commercial loans and leases: Commercial and industrial loans 75 $ 237 (5) 6 Commercial mortgage owner-occupied loans 9 8 5 - Commercial mortgage nonowner-occupied loans 4 - - - Commercial leases 1 4 - - Residential mortgage loans 830 116 5 - Consumer loans: Home equity 150 10 - - Automobile loans 102 - - - Credit card 8,085 38 8 1 Total portfolio loans and leases 9,256 $ 413 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 Number of Loans in Loans Modified Increase Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon 2016 ($ in millions) (a) During the Year (b) During the Year Modification Modification Commercial loans and leases: Commercial and industrial loans 74 $ 183 14 - Commercial mortgage owner-occupied loans 12 11 - - Commercial mortgage nonowner-occupied loans 4 5 2 - Commercial leases 5 16 - - Residential mortgage loans 924 137 8 - Consumer loans: Home equity 219 15 - - Automobile loans 221 3 - - Credit card 9,519 43 8 4 Total portfolio loans and leases 10,978 $ 413 32 4 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded Investment Increase Number of Loans in Loans Modified (Decrease) Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon 2015 ($ in millions) (a) During the Year (b) During the Year Modification Modification Commercial loans: Commercial and industrial loans 77 $ 146 7 3 Commercial mortgage owner-occupied loans 18 16 (2) - Commercial mortgage nonowner-occupied loans 12 7 (1) - Residential mortgage loans 1,089 155 8 - Consumer loans: Home equity 267 16 (1) - Automobile loans 440 7 1 - Credit card 12,569 62 11 7 Total portfolio loans 14,472 $ 409 23 10 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. Represents number of loans post-modification and excludes loans previously modified in a TDR. The Bancorp considers TDRs that become 90 days or more past due under the modified terms as subsequently defaulted. For commercial loans not subject to individual review for impairment, loss rates that are applied for purposes of determining the ALLL include historical losses associated with subsequent defaults on loans previously modified in a TDR. For consumer loans, the Bancorp performs a qualitative assessment of the adequacy of the consumer ALLL by comparing the consumer ALLL to forecasted consum er losses over the projected loss emergence period (the forecasted losses include the impact of subsequent defaults of consumer TDRs). When a residential mortgage, home equity, auto mobile or other consumer loan that has been modified in a TDR subsequently defaults, the present value of expected cash flows used in the measurement of the potential impairment loss is generally limited to the expected net proceeds from the sale of the loan’s underlying collateral and any resulting impairment loss is reflected a s a charge-off or an increase in ALLL. The Bancorp recognizes ALLL for the entire balance of the credit card loans modified in a TDR that subsequently default . The following tables provide a summary of TDRs that subsequently defaulted during the years ended December 31, 2017, 2016 and 2015 and were within twelve months of the restructuring date: Number of Recorded December 31, 2017 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 7 $ 17 Commercial mortgage owner-occupied loans 4 1 Residential mortgage loans 172 24 Consumer loans: Home equity 16 2 Credit card 1,633 8 Total portfolio loans 1,832 $ 52 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. Number of Recorded December 31, 2016 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 8 $ 5 Commercial mortgage owner-occupied loans 2 - Commercial leases 2 1 Residential mortgage loans 172 25 Consumer loans: Home equity 17 1 Automobile loans 2 - Credit card 1,715 7 Total portfolio loans and leases 1,918 $ 39 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. Number of Recorded December 31, 2015 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 7 $ 11 Commercial mortgage owner-occupied loans 3 1 Residential mortgage loans 156 21 Consumer loans: Home equity 15 1 Automobile loans 8 - Credit card 1,935 8 Total portfolio loans 2,124 $ 42 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. |
Bank Premises and Equipment
Bank Premises and Equipment | 12 Months Ended |
Dec. 31, 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 December 31: ($ in millions) Estimated Useful Life 2017 2016 Land and improvements (a) $ 644 663 Buildings (a) 2 - 30 yrs. 1,679 1,672 Equipment 2 - 20 yrs. 1,876 1,761 Leasehold improvements 1 - 30 yrs. 399 398 Construction in progress (a) 93 99 Bank premises and equipment held for sale: Land and improvements 17 29 Buildings 9 9 Equipment 1 1 Accumulated depreciation and amortization (2,715) (2,567) Total bank premises and equipment $ 2,003 2,065 (a) At December 31, 2017 and 2016 , land and improvements, buildings and construction in progress included $ 91 and $ 92 , respectively, associated with parcels of undeveloped land intended for future branch expansion. Depreciation and amortization expense related to bank premises and equipment was $ 234 million, $ 2 42 million and $ 2 56 million for the years ended December 31, 2017 , 2016 and 2015 , respectively . The Bancorp monitors changing customer preferences associated with the channels it uses for banking transacti ons to evaluate the efficiency, competitiveness and quality of the customer service experience in its consumer distribution network. As part of this ongoing assessment, the Bancorp may determine tha t it is no longer fully committed to maintaining full-service branches at certain of its existing banking center locations. Similarly, the Bancorp may also determine that it is no longer fully committed to building banking centers on certain parcels of lan d which had previously been held for future branch expansion. 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 $ 7 million , $ 32 million and $ 109 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The recognized impairment losses were recorded in other no ninterest income in the Consolidated Statements of Income. Gross occupancy expense for cancelable and noncancelable leases, which is included in net occupancy expense in the Consolidated Statements of Income , was $ 1 01 million , $ 100 million and $ 110 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, which was reduced by rental income from leased premises of $ 1 3 million , $ 16 million and $ 18 million during the years ended December 31, 2017 , 2016 and 2015 , respectively. The Bancorp’s subsidiaries have entered into a number of noncancelabl e operating and capital lease agreements with respect to bank premises and equipment. The following table provides the annual future minimum payments under noncancelable operating leases and capital leases for the years ending December 31: ($ in millions) Noncancelable Operating Leases Capital Leases 2018 $ 87 6 2019 83 6 2020 71 5 2021 57 4 2022 51 4 Thereafter 219 1 Total minimum lease payments $ 568 26 Less: Amounts representing interest - 4 Present value of net minimum lease payments - 22 |
Operating Lease Equipment
Operating Lease Equipment | 12 Months Ended |
Dec. 31, 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. Total impairment losses associated with operating lease assets were $ 52 million , $ 20 million and $ 36 million for t he years ended December 31, 2017 , 2016 and 2015 , respectively. The recognized impairment losses were recorded i n corporate banking revenue in the Consolidated Statements of Income. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill | |
Goodwill | 9 . GOODWILL Business combinations entered into by the Bancorp typically include the acquisition of goodwill. Acquisition activity includes acquis itions in the respective period in addition to purchase accounting adjustments related to previous acquisitions , if any . The Bancorp completed its annual goodwill impairment test as of September 30, 2017 by performing a qualitative assessment of goodwill at the reporting unit level to determine whether any indicators of impairment existed. In performing this qualitative asses sment, the Bancorp evaluated events and circumstances since the last impairment analysis, macroeconomic conditions, banking industry and market conditions and key financial metrics of the Bancorp as well as reporting unit and overall Bancorp financial perf ormance. After assessing the totality of the events and circumstances, the Bancorp determined that it was not more likely than not that the fair values of the Commercial Banking, Branch Banking and Wealth and Asset Management reporting units were less than their respective carrying amounts and, therefore, the first and second steps of the quantitative goodwill impairment test were deemed unnecessary . Changes in the net carrying amount of goodwill, by reporting unit, for the years ended December 31, 2017 and 2016 were as follows: Commercial Branch Consumer Wealth and Asset ($ in millions) Banking Banking Lending Management Total Goodwill $ 1,363 1,655 215 148 3,381 Accumulated impairment losses (750) - (215) - (965) Net carrying amount as of December 31, 2015 $ 613 1,655 - 148 2,416 Acquisition activity - - - - - Net carrying amount as of December 31, 2016 $ 613 1,655 - 148 2,416 Acquisition activity - - - 29 29 Net carrying amount as of December 31, 2017 $ 613 1,655 - 177 2,445 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets | |
Intangible Assets | 10 . INTAN GIBLE ASSETS Intangible assets consist of core deposit in tangibles, customer lists, customer relationships, non-compete agreements , trade names and rent intangibles. Intangible assets are amortized on either a straight-line or an accelerated basis o ver their estimated useful lives. The increase in gross carrying amount of intangible assets from the year ended December 31, 2016 reflects acquisition activity during 2017 . The details of the Bancorp’s intangible assets are shown in the following table: Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount As of December 31, 2017 Core deposit intangibles $ 34 (29) 5 Customer relationships 16 - 16 Non-compete agreements 13 (10) 3 Other 6 (3) 3 Total intangible assets $ 69 (42) 27 As of December 31, 2016 Core deposit intangibles $ 34 (27) 7 Non-compete agreements 10 (10) - Other 5 (3) 2 Total intangible assets $ 49 (40) 9 As of December 31, 2017 , all of the Bancorp’s intangible assets were being amortized. Amortization expense recognized on intangible assets was $ 2 million for each of the years end ed December 31, 2017 , 2016 and 2015 . The Bancorp’s projections of amortization expense shown in the following table is based on existing asset balances as of December 31, 2017 . Future amortization expense may vary from these projections . Estimated amortization expense for the years ending December 31, 2018 through 2022 is as follows: ($ in millions) Total 2018 $ 3 2019 3 2020 3 2021 2 2022 2 |
VIE
VIE | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entities | |
Variable Interest Entities | 11 . VARIABLE INTEREST ENTITIES The Bancorp, in the normal course of business, engages in a variety of activities that involve VIEs, which are legal entities that lack sufficient equ ity at risk to finance their activities without additional subordinated financial support or the equity investors of the entities as a group lack any of the characteri stics of a controlling interest . The Bancorp evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Bancorp is the primary beneficiary and should consolidate the entity based on the variable interests it held both at inception and when there is a change in circumstances that require s a reconsideration. If the Bancorp is determined to be the primary beneficiary of a VI E, it must account for the VIE as a consolidated subsidiary. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for under the equity method of accountin g or other accou nting standards as appropriate. Consolidated VIEs The following tables provide a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Consolidated Balance Sheets as of: Automobile Loan CDC December 31, 2017 ($ in millions) Securitizations Investments Total Assets: Other short-term investments $ 62 - 62 Commercial mortgage loans - 20 20 Automobile loans 1,277 - 1,277 ALLL (6) - (6) Other assets 7 - 7 Total assets $ 1,340 20 1,360 Liabilities: Other liabilities $ 2 - 2 Long-term debt 1,190 - 1,190 Total liabilities $ 1,192 - 1,192 Noncontrolling interests $ - 20 20 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 l oan s ecuritization s In a securitization transaction that occurred in September of 2017, the Bancorp transferred an aggregate amount of $ 1.1 billion in consumer automobile loans to a bankruptcy remote trust which was deemed to be a VIE. This trust then subsequently issued approximately $ 1.0 billion of asset-backed notes, of which approximately $ 261 million were retained by the Bancorp. Refer to Note 16 for further information. Additionally, in prior years the Bancorp completed securitizatio n transactions in which the Bancorp transferred certain consumer automobile loans to bankruptcy remote trusts which were also deemed to be VIEs. The primary purposes of the VIEs were to issue asset-backed securities with varying levels of credit subordinat ion and payment priority, as well as residual interests, and to provide the Bancorp with access to liquidity for its originated loans. The Bancorp retained residual interests in the VIEs and, therefore, has an obligation to absorb losses and a right to rec eive benefits from the VIEs that could potentially be significant 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 t he economic performance of the VIEs. As a result, the Bancorp concluded that it is the primary beneficiary of the VIEs and has consolidated these VIEs. Th e assets of the VIEs are restricted to the settlement of the asset-backed securities and other obligat ions of the VIEs. Third-party holders of the notes do not have recourse to the general assets of the Bancorp. T he economic performance of the VIE s is most significantly impacted by the performance of the underlying loans. The principal risks to which th e VIE s are exposed include credit risk and prepayment 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 classe s of asset-backed securities to other classes. CDC i nvestment s CDC, a wholly- owned indirect subsidiary of the Bancorp, was created to invest in projects to create affordable housing, revitalize business and residential areas and preserve historic landmarks. CDC generally co-invests with other unrelated companies and/or individuals and typically makes investments in a separate legal entity that owns the property under development. The entities are usually formed a s limited par tnerships 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 subsidiaries serve as the managing member of certain LLCs invested in business revitalization projects and h ave the right to make decisions that most significantly impact the economic performance of the LLCs. Additionally, the investor members do not own substantive kick-out rights or substantive participating rights over the managing member. The Bancorp has pro vided an indemnification guarante e to the investor member of these LLC s related to the qualification of tax credits generated by the investor members’ investment. Accordingly, the Bancorp concluded that it is the primary beneficiary and, therefore, has con solidated these VIE s . As a result, the investor members’ interests in these VIE s are presented as noncontrolling interest s in the Consolidated Financial Statements. This presentation includes reporting separately the equity attributable to the noncontrolli ng interest s in the Consolidated Balance Sheets and Consolidated Statements of Changes in Equity and reporting separately the comprehensive income attributable to the noncontrolling interests in the Consolidated Statements of Comprehensive Income and the n et income attributable to the noncontrolling interest s in the Con solidated Statements of Income. During the third quarter of 2017, the Bancorp’s indemnification guarantee for one of the CDC investments for which a Bancorp subsidiary served as the managing member expired and the Bancorp transferred its remaining ownership interest in the VIE to the investor member thus removing the Bancorp from future operations of the VIE. As a result, the Bancorp deconsolidated the VIE during the third quarter of 2017 resu lting in a decrease of $ 27 million in commercial mortgage loans, a decrease of $ 20 million in ALLL associated with the commercial mortgage loans and a decrease of $ 18 million in indemnification guarantee exposure. The Bancorp’s maximum exposure related to these indemnifications at December 31, 2017 and 2016 was $ 17 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 Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of: Total Total Maximum December 31, 2017 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,376 355 1,376 Private equity investments 102 - 150 Loans provided to VIEs 1,845 - 2,910 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. During the fourth quarter of 2017, the Bancorp recognized $68 million of impairment on certain affordable housing investments primarily due to the change in the federal statutory corporate tax rate pursuant to the TCJA. This impairment charge was recorded in other noninterest expense in the Consolidated Statements of Income. Refer to Note 27 for further information. The Bancorp’s funding requirements are limited to its invested capital and any additional unfun ded 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 in vestments, which are included in other assets in the Consolidated Balance Sheets, and the liabilities related to the unfunded commitments, which are included in other liabilities in the Consolidated Balance Sheets, are included in the previous tables for a ll 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 p rojected tax credits to be received by the limited partners/investor members, thereby minimizing a portion of the Bancorp’s risk. At both December 31, 2017 and 2016 , the Bancorp’s CDC investments included $ 1.3 billion of investments in affordable hou sing tax credits recognized in other assets in the Consolidated Balance Sheets. The unfunded commitments related to these investments were $ 355 million and $ 349 million at December 31, 2017 and 2016 , respectively. The unfunded commitments as of Decem ber 31, 2017 are expected to be funded from 2018 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 Consolidated Statements of Income relating to investments in qualified affordable housing investments: Consolidated Statements of For the years ended December 31 ($ in millions) Income Caption 2017 2016 2015 Pre-tax investment and impairment losses (a) Other noninterest expense $ 207 144 126 Tax credits and other benefits Applicable income tax expense (246) (220) (205) (a) The Bancorp recognized $68 of impairment losses primarily due to the change in the federal statutory corporate tax rate during the year ended December 31, 2017 and did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or othe r circumstances during the years ended December 31, 2017 , 2016 and 2015 . Private e quity i nvestments The Bancorp , through Fifth Third Capital Holdings, a wholly-owned indirect subsidiary of the Bancorp, invests as a limited partner in private equity investments which provide the Bancorp an opportunity to obtain higher rates of return on invested capital, while also creating cross-selling opportunities for the Bancorp’s commercial products. Each of the limited partnerships has an unrelated third-party general par tner responsible for appointing the fund manager. The Bancorp has not been appointed fund manager for any of these private equity investments . The funds finance primarily all of their activities from the partners’ capital contributions and investment retur ns. T he Bancorp has determined that it is not the primary beneficiary of the funds because it does not have the obligation to absorb the funds’ expected losses or the right to receive the funds’ expected residual returns that could potentially be significa nt to the funds and lacks the power to direct the activities that most significantly impact the economic performance of the funds . The Bancorp, as a limited partner, does not have substantive participating or substantive kick-out rights over the general pa rtner. Therefore, the Bancorp accounts for its investments in these limited partnerships under the equity method of accounting. The Bancorp is exposed to losses arising from the negative performance of the underlying inv estments in the private equity inves tments . As a limited partner, the Bancorp’s maximum exposure to loss is limited to the carrying amounts of the investments plus unfunded commitments. The carrying amounts of these investments, which are included in other assets in the Consolidated Balance Sheets, are included in previous tables. Also, a t December 31, 2017 and 2016 , the Bancorp’s unfunded commitment amounts to the private equity funds were $ 48 million and $ 56 million, respectively. As part of previous commitments, t he Bancorp made capi tal contributions to private equity investments of $ 11 million and $ 14 million during the years ended December 31, 2017 and 2016 , respe ctively. The Bancorp recognized a gain of $ 11 million on the sales of certain private equity funds during the year ended December 31, 2017 . The Bancorp recognized $ 1 million, $ 9 million and $ 1 million of OTTI primarily associated with certain nonconforming investments affected by the Volcker Rule during the year s ended December 31, 2017 , 2016 , 2015 , respec tively. Refer to Note 27 for further information. Loans p rovided to VIEs The Bancorp has provided funding to certain unconsolidated VIEs sponsored by third parties. These VIEs are generally established to finance certain consumer and small business l oans 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 entities is responsible for servicing the underlyin g 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 significantly 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 e xposure to loss is equal to the carrying amounts of the loans and unfunded commitments to the VIEs. The Bancorp’s o utstanding loans to these VIEs are included in commercial loans in Note 5 . As of December 31, 2017 and 2016 , the Bancorp’s unfunded commitments to these entities were $ 1.1 b illion and $ 937 m illion, respectively . The loans and unfunded commitments to these VIEs are included in the Bancorp’s overall analysis of the ALLL and reserve for unfunded commitments, respe ctively. The Bancorp does not provide any implicit or explicit liquidity guarantees or principal value guarantees to these VIEs. |
Sales of Receivables and Servic
Sales of Receivables and Servicing Rights | 12 Months Ended |
Dec. 31, 2017 | |
Sales of Receivables and Servicing Rights | |
Sales of Receivables and Servicing Rights | 12 . SALES OF RECEIVABLES AND SERVICING RIGHTS Residential Mortgage TDR Loan Sale In March of 2015, the Bancorp recognized a $ 37 million gain, included in other noninterest income in the Consolidated Statements of Income, on the sale of certain HFS residential mortgage loans with a carrying value of $ 568 million that were previously modified in a TDR. As part of this sale, the Bancorp provided certain standard representations and warranties which have expired. Additionally, the Bancorp did not obtain servicing responsibilities on the sales of these loan s and the investors have no credit recourse to the Bancorp’s other assets for failure of debtors to pay when due. Residential Mortgage Loan Sales The Ba ncorp sold fixed and adjustable- rate residential mortgag e loans during the years ended December 31, 2017 , 2016 and 2015 . In those sales, the Bancorp obtained servicing responsibilities and provided certain standard representations and warranties, however the investors have no recourse to the Bancorp’s other assets for failure of debtors to pay wh en due. The Bancorp receives annual servicing fees based on a percentage of the outstanding balance. The Bancorp identifies classes of servicing assets based on financial asset type and interest rates. Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Consolidated Statements of Income, for the years ended December 31 is as follows: ($ in millions) 2017 2016 2015 Residential mortgage loan sales (a) $ 6,369 6,927 5,078 (b) Origination fees and gains on loan sales 138 186 171 Gross mortgage servicing fees 206 199 222 Represents the unpaid principal balance at the time of the sale . Excludes $ 568 of HFS residential mortgage loans previously modified in a TDR that were sold d uring the first quarter of 2015. Servicing Righ ts 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 mort gage banking net revenue in the Consolidated Statements of Income in the period in which the changes occur. The election of the fair value method did not require a cu mulative 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 in itially 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 years ended December 31: ($ in millions) 2017 Balance, beginning of period $ 744 Servicing rights originated - residential mortgage loans 127 Servicing rights acquired - residential mortgage loans 109 Changes in fair value: Due to changes in inputs or assumptions (a) (1) Other changes in fair value (b) (121) Balance, end of period $ 858 Primarily reflects changes in prepayment speed and OAS spread assumptions which are updated based on market interest rates. Primarily 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 83 Amortization (131) Balance, end of period $ 1,156 Valuation allowance for servicing rights: Balance, beginning of period $ (419) Recovery of MSR impairment 7 Balance, end of period (412) Carrying amount after valuation allowance $ 744 For the years ended December 31, 2016 and 2015, temporary impairment, effected through a change in the MSR valuation allowance, was captured as a component of mortgage banking net revenue in the Consolidated Statements of Income. Amortization expense recognized on servicing rights for the years ended December 31, 2016 and 2015 was $ 131 million and $ 140 million, respectively . The Bancorp maintains a non-qualifying hedging strategy to manage a portion of the risk associated with changes in the value of th e 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 associated with these portfolios are expected to economically hedge a portion of the change in value of the MSR portfolio caused by fluctuating OA S spreads , earnings rates and prepayment speeds. The fair value of the servicing asset is based on the p resent value of expected future cash flows. The following table displays the beginning and ending fair value of the servicing rights for the years ended December 31: ($ in millions) 2017 2016 Fixed-rate residential mortgage loans: Balance, beginning of period $ 722 757 Balance, end of period 841 722 Adjustable-rate residential mortgage loans: Balance, beginning of period 22 27 Balance, end of period 17 22 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 years ended December 31: ($ in millions) 2017 2016 2015 Securities gains, net - non-qualifying hedges on MSRs $ 2 - - Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) 2 24 90 MSR fair value adjustment (a) (122) - - Recovery of MSR impairment (a) - 7 4 Included in mortgage banking net revenue in the 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, securitization, or purchase resulting from transactions completed during the years ended December 31 were as follows: 2017 2016 Weighted- Prepayment Weighted- Prepayment Average Life Speed OAS Spread Average Life Speed OAS Spread Rate (in years) (annual) (bps) (in years) (annual) (bps) Residential mortgage loans: Servicing rights Fixed 7.5 9.1 % 497 7.2 10.3 % 584 Servicing rights Adjustable 2.7 32.1 660 2.8 30.2 679 Based on historical credit experience, expected credit losses for residential mortgage loan servicing assets have been deemed immaterial, as the Bancorp sold the majority of the underlying loans without recourse. At December 31, 2017 and 2016 , the Bancorp serviced $ 60.0 billion and $ 53.6 billion, respectively, of residential mortgage loans for other investors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets. At December 31, 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 $ 841 6.0 11.4 % $ (36) (69) (158) 549 $ (17) (33) Servicing rights Adjustable 17 3.3 24.6 (1) (2) (5) 785 - (1) (a) The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial . These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on these variation s in the assumptions typically cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. The Bancorp believes variations of these levels are reasonably possible; however , there is the potential that adverse changes in key assumptions could be even greater . Also, in the previous table, the effect of a variation in a particular assumption on the fair value of the interests that continue to be held by the Bancorp is calculated without changing any other assumption; in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which might magnify or counteract these sensitivities. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 13 . DERIVA TIVE FINANCIAL INSTRUMENTS T he Bancorp maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce certain risks related to interest rate, prepayment and foreign currency volatility. Additionally, the Bancorp holds derivative instruments for the benefit of its commercial customers and for other business purposes. The Bancorp does not enter into unhedged s peculative derivative positions. The Bancorp’s interest rate risk management strategy involves modifying the repricing charac teristics 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 inc lude 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-ra te 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, a nd the seller agrees to make delivery of, a specific financial instrument at a predetermined price or yield. Options provide the purchaser with the right, but not the obligation, to purchase or sell a contracted item during a specified period at an agreed upon price. Swaptions are financial instruments granting the owner the right, but not the obligation, to enter into or cancel a swap. Prepayment volatility arises mostly from changes in fair value of the largely fixed-rate MSR portfolio, mortgage loans and mortgage-backed securities. The Bancorp may enter into various free-standing derivatives ( principal-only swaps, interest rate swaptions, interest rat e floors, mortgage options, TBA securities and interest rate swaps) to economically hedge prepayment volat ility. Principal-only swaps are total return swaps that are based on changes in the value of the underlying mortgage principal-only trust. TBA securities are a forward purchase agreement for a mortgage-backed securities trade whereby the terms of the security are u ndefined 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 inc lude 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. C redit 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 minimi zed through credit approvals, limits, counterparty collateral and monitoring procedures. The fair value of derivative instruments is presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Derivative in struments with a positive fair value are reported in other assets in the Consolidated Balance Sheets while derivative instruments with a negative fair value are reported in other liabilities in the Consolidated Balance Sheets. Cash collateral payables and receivables associated with the derivative instruments are not added to or nette d against the fair value amounts with the exception of certain variation margin payments that are considered legal settlements of the derivative contracts. For derivative contr acts cleared through certain central clearing parties who have modified their rules to treat variation margin payments as settlements, the variation margin payments are applied to net the fair value of the respective derivative contracts. The Bancorp’s der ivative assets include c ertain contractual features in which the Bancorp requires the counterparties to provide collateral in the form of cash and securities to offset changes in the fair value of the derivatives, including changes in the fair value due to credit risk of the counterparty. As of December 31, 2017 and 2016 , the balance of collateral held by the Bancorp for derivative assets was $ 409 million and $ 444 m illion, 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 $ 74 million were applied to reduce the respective derivative contracts and were also not included in th e total amount of collateral held as of December 31, 2017 . The credit component negatively impacting the fair value of derivative assets associated with customer accommodation contracts as of December 31, 2017 and 2016 was $ 3 million and $ 6 million, respectively. In measuring the fair value of derivative liabilities, the Bancorp considers its own credit risk, taking into consideration collateral maintenance requirements of certain derivative counterparties and the duration of instruments wit h counterparties that do not require collateral maintenance. When necessary, the Bancorp posts collateral primarily in the form of cash and securities to offset changes in fair value of the derivatives, including changes in fair value due to the Bancorp’s credit risk. As of December 31, 2017 and 2016 , the balance of collateral posted by the Bancorp for derivative liabilities was $ 365 million and $ 399 million, respectively. Additionally, $ 31 million of variation margin payments were applied to the resp ective derivative contracts to reduce the Bancorp’s derivative liabilities as of December 31, 2017 and were also not included in the total amount of collateral posted. Certain of the Bancorp’s derivative liabilities contain credit-risk related contingen t features that could result in the requirement to post additional collateral upon the occurrence of specified events. As of December 31, 2017 and 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 Bancorp’s Consolidated Financial Statements. The posting of collateral has been determined to remove the need for further consideration of credit risk. As a result, the Bancorp determi ned that the impact of the Bancorp’s credit risk to the valuation of its derivative liabilities was immaterial to the Bancorp’s Consolidated Financial Statements. The Bancorp holds certain derivative instruments that qualify for hedge accounting treatment and are designated as either fair value hedges or cash flow hedges. Derivative instruments that do not qualify for hedge accounting treatment, or for which hedge accounting is not established, are held as free-standing derivatives. All customer accommodati on derivatives are he ld as free-standing derivatives. The following tables reflect the notional amounts and fair values for all derivative instruments included in the Consolidated Balance Sheets as of: Fair Value Notional Derivative Derivative December 31, 2017 ($ in millions) Amount Assets Liabilities Derivatives Designated as Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 3,705 297 5 Total fair value hedges 297 5 Cash flow hedges: Interest rate swaps related to C&I loans 4,475 - 12 Total cash flow hedges - 12 Total derivatives designated as qualifying hedging instruments 297 17 Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSRs 11,035 54 15 Forward contracts related to residential mortgage loans held for sale 1,284 1 1 Stock warrant 20 20 - Swap associated with the sale of Visa, Inc. Class B Shares 1,900 - 137 Foreign exchange contracts 112 - 1 Total free-standing derivatives - risk management and other business purposes 75 154 Free-standing derivatives - customer accommodation: Interest rate contracts for customers 42,216 154 145 Interest rate lock commitments 446 8 - Commodity contracts 4,125 165 167 TBA securities 26 - - Foreign exchange contracts 12,654 124 119 Total free-standing derivatives - customer accommodation 451 431 Total derivatives not designated as qualifying hedging instruments 526 585 Total $ 823 602 Fair Value Notional Derivative Derivative December 31, 2016 ($ in millions) Amount Assets Liabilities Derivatives Designated as Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 3,455 323 12 Total fair value hedges 323 12 Cash flow hedges: Interest rate swaps related to C&I loans 4,475 22 - Total cash flow hedges 22 - Total derivatives designated as qualifying hedging instruments 345 12 Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSRs 10,522 165 39 Forward contracts related to residential mortgage loans held for sale 1,823 20 3 Swap associated with the sale of Visa, Inc. Class B Shares 1,300 - 91 Foreign exchange contracts 111 - - Total free-standing derivatives - risk management and other business purposes 185 133 Free-standing derivatives - customer accommodation: Interest rate contracts for customers 33,431 205 210 Interest rate lock commitments 701 13 1 Commodity contracts 2,095 107 106 Foreign exchange contracts 11,013 202 204 Total free-standing derivatives - customer accommodation 527 521 Total derivatives not designated as qualifying hedging instruments 712 654 Total $ 1,057 666 Fair Value 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 designated as fair value hedges as of December 31, 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. Hedge ineffectiveness is the difference between the change s in the fair value of the interest rate swap and changes in fair value of the related hedged item attributable to the risk being hedged. The ineffectivenes s on interest rate swaps hedging fixed-rate funding is reported within interest expense in the Consolidated Statements of Income. The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Consolidated Statements of Income: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2017 2016 2015 Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ (33) (59) (29) Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt 31 54 25 Cash Flow Hedges The Bancorp may enter into interest rate swaps to convert floating-rate assets and liabilities to fixed rates or to hedge certain forecasted transactions. The assets or liabilities may be grouped in circumstances where they s hare the same risk exposure that the Bancorp desires to hedge. The Bancorp may also enter into interest rate caps and floors to limit ca sh flow variability of floating- rate assets and liabilities. As of December 31, 2017 , all hedges designated as cash flow hedges were asses sed for effectiveness using regression analysis. Ineffectiveness is generally measured as the amount by which the cumulative change in the fair value of the hedging instrument exceeds the present value of the cumulative change in the hedged item’s expected cash flows attributable to the risk being hedged. Ineffectiveness is reported within other noninterest income in the Consolidated Statements of Income. The effective portion of the cumulative gains or losses on cash flow hedges are reported within AOCI an d are reclassified from AOCI to current period earnings when the forecasted transaction affects earnings. As of December 31, 2017 , the maximum length of time over which the Bancorp is hedging its exposure to the variability in future cash flows is 24 months. Re classified gains and losses on interest rate contracts related to commercial and industrial loans are recorded within interest income in the Consolidated Statements of Income. As of December 31, 2017 and 2016 , $ 9 million of net deferred losses, net of tax and $ 10 million of net deferred gains, net of tax, respectively, on cash flow hedges were recorded in AOCI in the Consolidated Balance Sheets. As of December 31, 2017 , $ 3 million in net deferred gains, net of tax, recorded in AOCI are expected to be reclassified into earnings during the next twelve months . This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to December 31 , 2017 . D uring the years ended 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 occur by the end of the originally specified time period or within the additional period of time as defined by U.S. GAAP . The following table presents the pre-tax net (losses) gains recorded in the Consolidated Statements of Income and in the Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the years ended December 31 ($ in millions) 2017 2016 2015 Amount of pre-tax net (losses) gains recognized in OCI $ (11) 30 74 Amount of pre-tax net gains reclassified from OCI into net income 19 48 75 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, TBA s ecurities and interest rate swaps) to economically hedge changes in fair value of its largely fixed-rate MSR portfolio. Principal-only swaps hedge the mortgage-LIBO R spread because these swaps appreciate in value as a result of tightening spreads. Principal-only swaps also provide prepayment protection by increasing in value when prepayment speeds increase, as opposed to MSRs that lose value in a faster prepayment en vironment. 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 va lue of certain residential mortgage loans held for sale du e to changes in interest rates. IRLC s issued on residential mortgage loan commitments that will be held for sale are also considered free-standing derivative instruments and the interest rate exposu re on these commitments is economically hedged pr imarily with forward contracts. Revaluation gains and losses from free-standing derivatives related to mortgage banking activity are recorded as a component of mortgage banking net revenue in the Consolidate d Statements of Income. In conjunction with the initial sale of the Bancorp’s 51 % interest in Vantiv Holding, LLC in 2009 , the Ban corp received a warrant which was accounted for as a free-standing derivative . During the year ended December 31, 2015, the Bancorp bo th sold and exercised part of the warrant. During the year ended December 31, 2016, the Bancorp exercised the remaining portion of the warrant. In conjunction with the sale of Visa, Inc. Class B S hares in 2009, the Bancorp entered into a total return swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rat e of the Class B Shares into Class A S hares. This total return swap is accounted for as a free-standing derivative. Refer to Note 27 for further discu ssion of significant inputs and assumptions used in the valuation of this instrument. The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2017 2016 2015 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ (17) 14 8 Interest rate contracts related to MSR portfolio Mortgage banking net revenue 2 24 90 Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income (7) 2 23 Equity contracts: Stock warrant associated with Vantiv Holding, LLC Other noninterest income - 73 (a) 325 (a) Stock warrant Other noninterest income (1) - - Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (80) (56) (37) ( a) The Bancorp recognized a net gain of $ 9 on the exercise of the remaining warrant during the fourth quarter of 2016 and a net gain of $89 on both the sale and partial exercise of the warrant during the fourth quarter of 2015 Free-Standing Derivative Instruments – Customer Accommodation The majority of the free-standing derivative instruments the Bancorp enters into are for the benefit of its commercial customers. These derivative contracts are not designated against specif ic assets or liabilities on the Consolidated Balance Sheets or to forecasted transactions and, therefore, do not qualify for hedge accounting. These instruments include foreign exchange derivative contracts entered into for the benefit of commercial customers involved in international trade to hedge their exposure to foreign currency fluctuations and commodity contracts to hedge such items as natural gas and various other derivative contracts. The Bancorp may economically hedge significant exposures related to these derivative contracts entered into for the benefit of customers by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms. The Bancorp hedges its interest rate exposure on commercial customer transactions by executing offsetting swap agreements with primary dealers. Revaluation gains and losses on interest rate, foreign exchange, commodity and other commercial customer derivative contracts are recorded as a component of corporate banki ng revenue in the Consolidated Statements of Income. The Bancorp enters into risk participation agreements, under which the Bancorp assumes credit exposure relating to certain underlying interest rate derivative contracts. The Bancorp only enters into the se risk participation agreements in instances in which the Bancorp has participated in the loan that the underlying interest rate derivative contract was designed to hedge. The Bancorp will make payments under these agreements if a customer defaults on its obligation to perform under the terms of the underlying interest rate derivative contract. As of December 31, 2017 and 2016 , the total notional amount of the risk participation agreements was $2.8 billion and $2.5 billion, respectively , and the fair value w as a liability of $ 5 million at December 31, 2017 and $ 4 million at December 31, 2016 , which is included in other liabilities in the Consolidated Balance Sheets . As of December 31, 2017 , the risk participation agreements had a weighted- average remaining life of 2.9 year s. The Bancorp’s maximum exposure in the risk participation agreements is cont ingent on the fair value of the underlying interest rate derivative contracts in an asset position at the time of default. The Bancorp monitors the credit risk associated with th e underlying customers in the risk participation agreements through the same risk grading system currently utilized for establishing loss reserves i n its loan and lease portfolio. Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table: At December 31 ($ in millions) 2017 2016 Pass $ 2,748 2,447 Special mention 66 14 Substandard 24 6 Total $ 2,838 2,467 The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: Consolidated Statements of For the years ended December 31 ($ in millions) Income Caption 2017 2016 2015 Interest rate contracts: Interest rate contracts for customers (contract revenue) Corporate banking revenue $ 21 22 23 Interest rate contracts for customers (credit losses) Other noninterest expense (5) - (1) Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense 2 1 1 Interest rate lock commitments Mortgage banking net revenue 93 114 111 Commodity contracts: Commodity contracts for customers (contract revenue) Corporate banking revenue 6 6 5 Commodity contracts for customers (credit losses) Other noninterest expense 1 (1) (2) Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense - 1 6 Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Corporate banking revenue 48 62 70 Foreign exchange contracts for customers (credit losses) Other noninterest expense 2 (2) - Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 1 - Offsetting Derivative Financial Instruments The Bancorp’s derivative transactions are generally governed by ISDA Master Agreements and similar arrangements, which include provisions governing the setoff of assets and liabilities between the parties. When the Bancorp has more than one outstanding derivative transaction with a single counterparty, the setoff provisions contained within these agreements generally allow the non-defaulting party the right to reduce its liability to the defaulting party by amoun ts eligible for setoff, including the collateral received as well as eligible offsetting transactions with that counterparty, irrespective of the currency, place of payment or booking office. The Bancorp’s policy is to present its derivative assets and der ivative liabilities on the Consolidated Balance Sheets on a gross basis, even when provisions allowing for setoff are in place. However, for derivative contracts cleared through certain central clearing parties who have modified their rules to treat variat ion 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 table s below consist primarily of cash and highly-rated government-backed securi ties and do not include variation margin payments for derivative contracts with legal rights of setoff for the year ended December 31, 2017 . The following tables provide a summary of offsetting derivative financial instruments: Gross Amount Gross Amounts Not Offset in the Recognized in the Consolidated Balance Sheets As of December 31, 2017 ($ in millions) Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 815 (213) (362) 240 Total assets 815 (213) (362) 240 Liabilities: Derivatives 602 (213) (155) 234 Total liabilities $ 602 (213) (155) 234 (a) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements. (b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related d erivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. Gross Amount Gross Amounts Not Offset in the Recognized in the Consolidated Balance Sheets As of December 31, 2016 ($ in millions) Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 1,044 (374) (377) 293 Total assets 1,044 (374) (377) 293 Liabilities: Derivatives 665 (374) (125) 166 Total liabilities $ 665 (374) (125) 166 Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangement s . Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets | |
Other Assets | 14 . OTHER ASSETS The following table provides the components of other assets included in the Consolidated Balance Sheets as of December 31: ($ in millions) 2017 2016 Accounts receivable and drafts-in-process $ 1,763 2,158 Bank owned life insurance 1,720 1,681 Partnership investments 1,557 1,689 Derivative instruments 823 1,057 Accrued interest and fees receivable 378 350 Investment in Vantiv Holding, LLC 219 414 Vantiv, Inc. TRA put/call receivable 105 165 Prepaid expenses 87 83 Income tax receivable 66 1 OREO and other repossessed personal property 54 84 Other 203 162 Total other assets $ 6,975 7,844 The Bancorp purchases life insurance policies on the lives of certain directors, officers and employees and is the owner and beneficiary of the policies . Certain BOLI policies have a stable value agreement through either a large, well-rated bank or multi-national insurance carrier that provides limited cash surrender value protection from declines in the value of each policy’s underlying investments. Refer to Note 1 for further information. CDC, a wholly- owned indirect subsidiary of the Bancorp , was created to invest in projects to create affordable housing, revitalize business and residential areas and preserve historic landmarks , which are included above in partnership investments . In addition, Fifth Third Capital Holdings, a wholly-owned indi rect subsidiary of the Bancorp, invests as a direct private equity investor and as a limited partner in private equity funds, which are included above in partnership investments. The Bancorp has determined that these partnership investments are VIEs and th e Bancorp’s investments r epresent variable interests. Additionally, the Bancorp recorded impairment on certain affordable housing investments during the year ended December 31, 2017 and OTTI on investments in certain private equity funds during the year s ended December 31, 2017 and 2016 . Refer to Note 11 for further information. The Bancorp utilizes derivative instruments as part of its overall risk management strategy to reduce certain risks related to interest rate, prepayment and foreign curr ency volatility. The Bancorp also holds derivatives instruments for the benefit of its commercial customers and for other business purposes. For further information on derivative instruments, refer to Note 13 . In 2009, the Bancorp sold an appr oximate 51% interest in its processing business, Vantiv Holding, LLC. As a result of additional share sales completed by the Bancorp, its ownership share in Vantiv Holding, LLC as of December 31, 2017 wa s approximately 8.6 %. The Bancorp’s ownership in Vanti v Holding, LLC is currently accounted for under the equity method of accounting. Refer to Note 19 for further information. In 2016, the Bancorp entered into an agreement with Vantiv, Inc. in which Vantiv, Inc. may be obligated to pay up to a total o f approximately $171 million to the Bancorp to terminate and settle certain remai ning TRA cash flows, totaling to a then estimated $394 million, upon the exercise of certain call options by Vantiv, Inc. or certain put options by the Bancorp. The Bancorp re ceived $63 million in settlemen t for certain call options and put options exercised during 2017. Refer to Note 19 and Note 31 for further information. OREO represents property acquired through foreclosure or other proceedings and is carried at the lower of cost or fair value, less costs to sell . Refer to Note 1 for further information. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Short-Term Borrowings | |
Short-Term Borrowings | 15 . SHORT-TERM BORROWINGS Borrowings with original maturities of one year or less are classified as short- term and include federal funds purchased and other short-term borrowings. Federal funds purchased are excess balances in reserve accounts held at the FRB that the Bancorp purchased from other member banks on an overnight basis. Other short-term borrowings include securities sold under repurchase agreements, derivative collateral, FHLB advances and other borrowings with original maturities of one year or le ss . The following table summarizes short-term borrowings and weighted-average rates: 2017 2016 ($ in millions) Amount Rate Amount Rate As of December 31: Federal funds purchased $ 174 1.37 % $ 132 0.61 % Other short-term borrowings 4,012 1.28 3,535 0.54 Average for the years ended December 31: Federal funds purchased $ 557 1.01 % $ 506 0.39 % Other short-term borrowings 3,158 0.96 2,845 0.36 Maximum month-end balance for the years ended December 31: Federal funds purchased $ 1,495 $ 739 Other short-term borrowings 6,307 6,374 The following table presents a summary of the Bancorp's other short-term borrowings as of December 31: ($ in millions) 2017 2016 FHLB advances $ 3,125 2,500 Securities sold under repurchase agreements 546 661 Derivative collateral 341 374 Total other short-term borrowings $ 4,012 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 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. As of both December 31, 2017 and 2016 , all securities sold under repurchase agreeme nts were secured by agency residential mortgage-backed securities with an overnight remaining contractual maturity. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Long-Term Debt | |
Long-Term Debt | 16 . LON G-TERM DEBT The following table is a summary of the Bancorp’s long-term borrowings at December 31: ($ in millions) Maturity Interest Rate 2017 2016 Parent Company Senior: Fixed-rate notes 2019 2.30% 499 499 Fixed-rate notes 2020 2.875% 1,097 1,096 Fixed-rate notes 2022 2.60% 697 - Fixed-rate notes 2022 3.50% 497 497 Subordinated: (a) Fixed-rate notes 2017 5.45% - 501 Fixed-rate notes 2018 4.50% 505 519 Fixed-rate notes 2024 4.30% 747 746 Fixed-rate notes 2038 8.25% 1,305 1,312 Subsidiaries Senior: Fixed-rate notes 2017 1.35% - 650 Fixed-rate notes 2018 2.15% 996 997 Fixed-rate notes 2018 1.45% 600 598 Floating-rate notes (b) 2018 2.35% 250 250 Fixed-rate notes 2019 2.375% 849 849 Fixed-rate notes 2019 2.30% 749 748 Fixed-rate notes 2019 1.625% 736 737 Floating-rate notes (b) 2019 2.26% 250 249 Fixed-rate notes 2020 2.20% 744 - Floating-rate notes (b) 2020 1.63% 299 - Fixed-rate notes 2021 2.25% 1,247 1,246 Fixed-rate notes 2021 2.875% 846 845 Subordinated: (a) Fixed-rate bank notes 2026 3.85% 747 746 Junior subordinated: Floating-rate debentures (b) 2035 3.01%-3.28% 52 52 FHLB advances 2018 - 2041 0.05% - 6.87% 30 33 Notes associated with consolidated VIEs: Automobile loan securitizations: Fixed-rate notes 2018 - 2024 1.30%-2.03% 982 1,061 Floating-rate notes (b) 2020 1.63% 75 33 Other 2018 - 2039 Varies 105 124 Total $ 14,904 14,388 In aggregate, $ 2.6 billion and $ 2.7 billion qualifies as Tier II capital for regulatory capital purposes as of December, 31 2017 and 2016 , respectively. These rates reflect the floating rates as of December 31, 2017 . The Bancorp pays down long-term debt in accordance with contractual terms over maturity periods summarized in the above table. The aggregate annual maturities of long-term debt obligations (based on final maturit y dates) as of December 31, 2017 a re presented in the following tabl e: ($ in millions) Parent Subsidiaries Total 2018 $ 505 1,907 2,412 2019 499 2,600 3,099 2020 1,097 1,477 2,574 2021 - 2,195 2,195 2022 1,194 463 1,657 Thereafter 2,052 915 2,967 Total $ 5,347 9,557 14,904 At December 31, 2017 , the Bancorp’s long-term borrowings consisted of outsta nding principal balances of $ 14.7 billion, net discounts of $ 21 million, debt issuance costs of $ 31 million and additions for mark-to-market adjustments on its hedged debt of $ 298 million. At December 31, 2016 , the Bancorp’s long-term borrowings consisted of outstanding principal balances of $ 14.1 billion, net discounts of $ 24 million, debt issuance costs of $ 33 million and additions for mark-to-market adjustments on its hedg ed debt of $ 328 million. The Bancorp was in compliance with all debt covenants at December 31, 2017 and 2016 . Parent Company Long-Term Borrowings Senior n otes On March 7, 2012, the Bancorp issued and sold $ 500 million of senior notes to third-party investors and entered into a Supplemental Indenture dated March 7, 2012 with the Trustee, which modified the existing Indenture for Senior Debt Securities dated April 30, 2008. The Supplemental Indenture and the Inde nture define the rights of the senior notes and that they are represented by a Global Security dated as of March 7, 2012. The senior notes bear a fixed-rate of interest of 3.50% per annum. The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes will be due upon maturity on March 15, 2022. These fixed-rate senior 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 p rice equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On February 28, 2014, the Bancorp issued and sold $ 500 million of senior notes to third-party investors. The senior notes bear a fixed-ra te of interest of 2.30% per annum . The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes is due upon maturity on March 1, 2019. These fixed-rate senior notes will be redeemable by the Bancorp, in who le or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On July 27, 2015, the Bancorp issued and sold $ 1.1 billion of senior notes to third-party investors. The senior notes bear a fixed-rate of interest of 2.875% per annum . The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes is due upon matur ity on July 27, 2020. These fixed-rate senior 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 up to, but excluding, the redemption date. On June 15, 2017, the Bancorp issued and sold $ 700 m illion of senior notes to third-party investors. The senior notes bear a fixed-rate of interest of 2.60% per annum. The notes are unsecured, senior obli gations of the Bancorp. Payment of the full principal amounts of the notes is due upon maturity on June 15, 2022. These fixed-rate senior notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturi ty date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. Subordinated d ebt The Bancorp has entered into interest rate swaps to convert its subordinated fixed-rate notes due in 2018 to floating-rate, which pay interest at three-month LIBOR plus 25 bps at December 31, 2017 . T he rate paid on the swaps hedging the subordinated floating-rate notes due in 2018 was 1.73 % at December 31, 2017 . Of the $ 1.0 billion in 8.25% subordinated fixed-rate notes due in 2038, $ 705 million were subsequently hedged to floating-rate and paid a rate of 4.53 % at December 31, 2017 . On November 20, 2013, the Bancorp issued and sold $ 750 million of 4.30% unsecured subordinated fixed-rate notes due on January 16, 2024. These fixed-rate notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. Subsidiary Long-Term Borrowings Senior and subordinated d ebt Medium-term senior notes and subordinated bank notes with maturities ranging from one ye ar to 30 years can be issued by the Bancorp’s banking subsidiary. Under the Bancorp’s banking subsidiary’s global bank note program, the Bank’s capacity to issue its senior and subordinated unsecured bank notes is $ 25 billion. As of December 31, 2017 , $ 16.7 billion was available for future issuance under the global bank note program. On February 28, 2013, the Bank issued and sold, under its bank notes program, $ 600 million of 1.45% unsecured senior fixed-rate bank notes due on February 28, 2018. These b ank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest through the redemption date. On Apri l 25, 2014, the Bank issued and sold, under its bank notes program, $ 850 million of 2.375% senior fixed- rate notes due on April 25, 2019 . These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to th e maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On September 5, 2014, the Bank issued and sold, under its bank notes program, $ 850 million of 2.875% uns ecured senior fixed-rate bank notes due on October 1, 2021. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount pl us accrued and unpaid interest up to, but excluding, the redemption date. On August 20, 2015, the Bank issued and sold, under its bank notes program, $1.3 billion in aggregate principal amount of unsecured senior bank notes. The bank notes consisted of $ 1. 0 billion of 2.15% senior fixed-rate notes due on August 20, 2018 and $ 250 million of senior floating-rate notes due on August 20, 2018. The Bancorp entered into interest rate swaps to convert the fixed-rate notes to floating-rate, which resulted in an eff ective rate of three-month LIBOR plus 90 bps. Interest on the floating-rate notes is three-month LIBOR plus 91 bps. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a r edemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On March 15, 2016, the Bank issued and sold, under its bank notes program, $1.5 billion in aggregate principal amount of unsec ured bank notes. The bank notes consisted of $ 750 million of 2.30% senior fixed-rate notes due on March 15, 2019; and $ 750 million of 3.85% subordinated fixed-rate notes due on March 15, 2026. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On June 14, 2016, the Bank issued and sold, under its bank notes program, $ 1.3 billion of 2.25% unsecured senior fixed-rate notes due on June 14, 2021. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption pri ce equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On September 27, 2016, the Bank issued and sold, under its bank notes program, $1.0 billion in aggregate principal amount of unsecured senior bank notes due on September 27, 2019. The bank notes consisted of $ 750 million of 1.625% senior fixed-rate notes and $ 250 million of senior floating-rate notes at three-month LIBOR plus 59 bps. The Bancorp entered into interest rate swaps to convert the fixed-rate notes to a floating-rate, which resulted in an effective interest rate of three-month LIBOR plus 53 bps. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date a t a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On October 30, 2017 , the Bank issued and sold , under its bank notes program, $1.1 billion in aggregate principal amount o f unsecured senior bank notes due on October 30, 2020. The bank notes consisted of $ 750 million of 2.20% senior fixed-rate notes and $ 300 million of senior floating-rate notes at three-m onth LIBOR plus 25 bps. The Bancorp entered into an interest rate swap to convert the fixed-rate notes to a floating-rate, which resulted in an effective interest rate of three-month LIBOR plus 24 bps. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the matu rity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. Junior subordinated d ebt The junior subordinated floating-rate bank notes due in 2035 were assumed by the Ban corp’s banking subsidiary as part of the acquisition of First Charter in June 2008. The obligation was issued to First Charter Capital Trust I and II, respectively. The notes of First Charter Capital Trust I and II pay a floating rate at three-month LIBOR plus 169 bps and 142 bps, respectively. The Bancorp’s nonbank subsidiary holding company has fully and unconditionally guaranteed all obligations under the acquired TruPS issued by First Charter Capital Trust I and II. FHLB a dvances At December 31, 2017 , FHLB advances have rates ranging from 0.05 % to 6.87%, with interest payable monthly. The Bancorp has pledged $ 15.6 billion of certain residential mortgage loans and securities to secure its borrowing capacity at the Federal Home Loan Bank which is p artially utilized to fund $ 30 million in FHLB advances that are outstanding. The FHLB advances mature as follows: $ 4 million in 2018, $ 8 million in 2019, $ 3 million in 2020, $ 3 million in 2021, $ 1 million in 2022, and $ 11 million thereafter. Notes associa ted with c onsolidated VIEs As previously discussed in Note 11 , the Bancorp was determined to be the primary beneficiary of various VIEs associated with certain automobile loan securitizations. Third-party holders of this debt do not have recourse to the general assets of the Bancorp. In a securitization transaction that occurred in September of 2017, the Bancorp transferred an aggregate amount of $ 1.1 billion in consumer automobile loans to a bankruptcy remote trust which was deemed to be a VIE. This tru st then subsequently issued approximately $ 1.0 billion of asset-backed notes, of which approximately $261 million were retained by the Bancorp, resulting in approximately $ 747 million of outstanding notes included in long-term debt in the Consolidated Bala nce Sheets as of December 31, 2017. Additionally, in prior years the Bancorp completed securitization transactions in which the Bancorp transferred certain consumer automobile loans to bankruptcy remote trusts which were also deemed to be V IEs. As such, ap proximately $310 million of outstanding notes related to these VIEs were included in long-term debt in the Consolidated Balance Sheets as of December 31, 2017 . |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Guarantees | 12 Months Ended |
Dec. 31, 2017 | |
Commitments, Contingent Liabilities and Guarantees | |
Commitments, Contingent Liabilities and Guarantees | 17 . COMMITMENTS, CONTINGENT LIABILITIES AND GUARANTEES The Bancorp, in the normal course of business, enters into financial instruments and various agreements to meet the financing needs of its customers. The Bancorp also enters into certain transactions and agreements to manage its interest rate and prepayment risks, provide funding, equipment and locations for its operations and invest in its communities. These instruments and agreements involve, to varying degrees, elements of credit risk, counterparty risk and market risk in excess of the amounts r ecognized in the Consolidated Balance Sheets. The creditworthiness of counterparties for all instruments and agreements is evaluated on a case-by-case basis in accordance with the Bancorp’s credit policies. The Bancorp’s significant commitments, contingent liabilities and guarantees in excess of the amounts recognized in the Consolidated Balance Sheets are discussed in the following sections. Commitments The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of December 31: ($ in millions) 2017 2016 Commitments to extend credit $ 68,106 67,909 Letters of credit 2,185 2,583 Forward contracts related to residential mortgage loans held for sale 1,284 1,823 Noncancelable operating lease obligations 568 576 Purchase obligations 144 57 Capital commitments for private equity investments 48 59 Capital expenditures 37 29 Capital lease obligations 26 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 both December 31, 2017 and 2016 , the Bancorp had a reserve for unfunded commitments , i ncluding letters of credit, totaling $ 161 million included in other liabilities in the Consolidated Balance Sheets. The Bancorp monitors the credit risk associated with commitments to extend credit using the same risk rating system uti lized withi n its loan and lease portfolio. Risk ratings under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2017 2016 Pass $ 67,254 66,802 Special mention 330 338 Substandard 522 753 Doubtful - 16 Total commitments to extend credit $ 68,106 67,909 Letters of credit Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of December 31, 2017: ($ in millions) Less than 1 year (a) $ 1,170 1 - 5 years (a) 999 Over 5 years 16 Total letters of credit $ 2,185 (a) Includes $ 7 and $ 1 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 approximately 99 % of total letters of credit at both December 31, 2017 and 2016 and are considered guarantees in accordance with U.S. GAAP. Approximately 61 % and 6 2 % of the total standby letters of credit were collateralized as of December 31, 2017 and 2016 , respectively . In the event of nonperformance by the customers, the Bancorp has rights to the underlying collateral, which can include commercial real estate, p hysical plant and property, inventory, receivables, cash and marketable securities. The reserve related to these standby letters of credit, which is included in the total reserve for unfunded commitments, was $ 6 million a t December 31, 2017 and $ 3 milli on at December 31 , 2016 . The Bancorp monitors the credit risk associated with letters of credit using the same risk rating system utilized within its loan and lease portfolio. Risk ratings under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2017 2016 Pass $ 1,830 2,134 Special mention 67 98 Substandard 218 290 Doubtful 70 61 Total letters of credit $ 2,185 2,583 At December 31, 2017 and 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 proper a dvance notice. When the VRDNs are tendered, a remarketing agent generally finds another investor to purchase the VRDNs to keep the securities outstanding in the market. As of December 31, 2017 and 2016 , total VRDNs in which the Bancorp was the remark eting agent or were supported by a Bancorp letter of credit we re $ 602 million and $ 929 million, respectively, of which FTS acted as the remarketing agent to issuers on $ 508 million and $ 784 m illion, resp ectively . As remarketing agent, FTS is responsible fo r finding purchasers for VRDNs that are put by investors. The Bancorp issued letters of credit, as a credit enhancement, to $ 331 million and $ 609 million of the VRDNs remarketed by FTS, in addition to $ 9 4 million and $ 145 million in VRDNs remarketed by thi rd parties at December 31, 2017 and 2016 , respectively. These letters of credit are included in the total letters of credit balance provided in the previous table . The Bancorp held $ 1 million and $ 6 million of these VRDNs in its portfolio and classi fied them as trading securities at December 31, 2017 and 2016 , respectively. Forward contracts related to residential mortgage loans held for sale The Bancorp enters into forward contracts to economically hedge the change in fair value of certain re sidential mortgage loans held for sale due to changes in interest rates. The outstanding notional amounts of these forward contracts are included in the summary of sign ificant commitments table for all periods presented. Noncancelable operating lease obli gations and other commitments The Bancorp’s subsidiaries have entered into a number of noncancelable lease agreements. The minimum rental commitments under noncancelable lease agreements are shown in the summary of significant commitments table. The Bancorp has also entered into a limi ted 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 18 for additional information regarding these proceedings. Guarantees The Bancorp has performance obligations upon the occurrence of certain events under financial guarantees provided in certain contractual arrangements as dis cussed in the following sections. Residential mortgage loans sold with representation and warranty provisions Conforming residential mortgage loans sold to unrelated third parties are generally sold with representation and warranty provisions. A contractu al liability arises only in the event of a breach of these representations and warranties and, in general, only when a loss results from the breach. The Bancorp may be required to repurchase any previously sold loan or indemnify (make whole) the investor o r insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading. For more information on how the Bancorp establishes the residential mortgage repurchase reserve, refer to Note 1 . As of December 31, 2017 and 2016 , the Bancorp maintained reserves related to loans sold with representation and warranty provisions totaling $ 9 million and $ 13 million , respectively , included in other liabilities in the Consolidated Balance Sheets . The Bancorp uses the best information available when estimating its mortgage representation and warranty reserve; however, the estimation process is inherently uncertain and imprecise and, accordingly, losses in excess of the amounts reserved as of Decembe r 31, 2017 , are reasonably possible. The Bancorp currently estimates that it is reasonably possible that it could incur losses related to mortgage representation and warranty provisions in an amount up to approximately $ 11 million in excess of amounts r eserved. This estimate was derived by modifying the key assumptions previously discussed to reflect management's judgment regarding reasonably possible adverse changes to those assumptions. The actual repurchase losses could vary significantly from the rec orded mortgage representation and warranty reserve or this estimate of reasonably possible losses, depending on the outcome of various factors, including those previously discussed . During both the years ended December 31, 2017 and 2016 , the Bancorp paid $ 1 million in the form of make whole payments and repurchased $ 12 million and $ 17 million, respectively, in outstanding principal of loans to satisfy investor demands. Total repurchase demand requests during the years ended December 31, 2017 and 2016 were $ 15 million and $ 22 million, respectively. Total outstanding repurchase demand inventory was $ 1 million at December 31, 2017 compared to $ 2 million at December 31, 2016 . The following table summarizes activity in the reserve for representation and warranty provisions for the years ended December 31: ($ in millions) 2017 2016 Balance, beginning of period $ 13 25 Net reductions to the reserve (3) (10) Losses charged against the reserve (1) (2) Balance, end of period $ 9 13 The following tables provide a rollforward of unresolved claims by claimant type for the years ended December 31: GSE Private Label 2017 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 13 $ 2 - $ - New demands 109 15 1 - Loan paydowns/payoffs (2) - - - Resolved demands (114) (16) - - Balance, end of period 6 $ 1 1 $ - GSE Private Label 2016 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 16 $ 4 2 $ - New demands 309 22 4 - Loan paydowns/payoffs (8) (1) - - Resolved demands (304) (23) (6) - Balance, end of period 13 $ 2 - $ - 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 $ 312 million and $ 374 million at December 31, 2017 and 2016 , respectively, and the delinquency rates were 3.0 % at December 31, 2017 and 3.2 % at December 31, 2016 . The Bancorp maintained an estimated credit loss reserve on these loans sold with credit recourse of $ 5 million and $ 7 million at December 31, 2017 and 2016 , respectively, recorded in other liabilities in the Consolidated Balance Sheets. To determine th e credit loss reserve, the Bancorp used an approach that is consistent with its overall approach in estimating credit losses for various categories of residential mortgage loans held in its loan portfolio. Margin accounts FTS, a n indirect wholly-owned sub sidiary of the Bancorp, guarantees the collection of all margin account balances held by its brokerage clearing agent for the benefit of its customers. FTS is responsible for payment to its brokerage clearing agent for any loss, liability, damage, cost or expense incurred as a result of customers failing to comply with margin or margin maintenance calls on all margin accounts. The margin account balance held by the brokerage clearing agent was $ 15 million at both December 31, 2017 and 2016 . In the event of an y customer default, FTS has rights to the underlying collateral provided. Given the existence of the underlying collateral provided and negligible historical credit losses, the Bancorp does not maintain a loss reserve related to the margin accounts. Long-term borrowing obligations The Bancorp had certain fully and unconditionally guaranteed long-term borrowing obligations issued by wholly-owned issuing trust entities of $ 62 million at both December 31, 2017 and 2016 . Visa litigation The Bancor p, as a member bank of Visa prior to Visa’s reorganization and IPO (the “IPO”) of its Class A common shares (the “Class A Shares”) in 2008, had certain indemnification obligations pursuant to Visa’s certificate of incorporation and by-laws and in accordanc e 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 reorgani zation and IPO, the Bancorp’s indemnification obligation was modified to include only certain known or anticipated litigation (the “Covered Litigation”) as of the date of the restructuring. This modification triggered a requirement for the Bancorp to recog nize a liability equal to the fair value of the indemnification liability. In conjunction with the IPO, the Bancorp received 10.1 million of Visa’s Class B common shares (the “Class B Shares”) based on the Bancorp’s membership 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 Covered Litigation has been resolved; therefore, the Bancorp’s Class B Shares were classi fied in other assets and accounted for at their carryover basis of $ 0 . Visa deposited $ 3 billion of the proceeds from the IPO into a litigation escrow account, established for the purpose of funding judgments in, or settlements of, the Covered Litigation. Since then, when Visa’s litigation committee determined that the escrow account was insufficient; Visa issued additional Class A Shares and deposited the proceeds from the sale of the Class A Shares into the litigation escrow account. When Visa funded the litigation escrow account, the Class B Shares were subjected to dilution through an adjustment in the conversion rate of Class B Shares into Class A Shares. In 2009, the Bancorp completed the sale of Visa, Inc. Class B Shares and entered into a total retur n swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Class B Shares into Class A Shares. The swap terminates on the later of the third anniversary of Visa’s IPO or the date on which the Covered Litigation is settled. Refer to Note 27 for additional information on the valuation of the swap. The counterparty to the swap as a result of its ownership of the Class B Shares will be impacted by dilutive adjustments to the conversion rate of the Cl ass B Shares into Class A Shares caused by any Covered Litigation losses in excess of the litigation escrow account. If actual judgments in, or settlements of, the Covered Litigation significantly exceed current expectations, then additional funding by Vis a of the litigation escrow account and the resulting dilution of the Class B Shares could result in a scenario where the Bancorp’s ultimate exposure associated with the Covered Litigation (the “Visa Litigation Exposure”) exceeds the value of the Class B Sh ares 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 amoun t of other noninterest expense for the amount of the excess. Any such litigation reserve liability would be separate and distinct from the fair value derivative liability associated with the total return swap. As of the date of the Bancorp’s sale of the Vi sa Class B Shares and through December 31, 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 the Class B Shares, the Bancorp reversed its net Vi sa litigation reserve liability and recognized a free-standing derivative liability associated with the total return swap. The fair value of the swap liability was $ 137 million and $ 91 million at December 31, 2017 and 2016 , respectively. Refer to Note 13 and Note 27 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 C lass A Shares, and along with other terms of the total return swap, required the Bancorp to make cash payments in varying amounts to the swap counterparty as follows: Visa Bancorp Cash Period ($ in millions) Funding Amount Payment Amount Q2 2010 $ 500 20 Q4 2010 800 35 Q2 2011 400 19 Q1 2012 1,565 75 Q3 2012 150 6 Q3 2014 450 18 |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 12 Months Ended |
Dec. 31, 2017 | |
Legal And Regulatory Proceedings | |
Legal and Regulatory Proceedings | 18 . LEGAL AND REGULATORY PROCEEDINGS Litigation Visa/Mastercard Merchant Interchange Litigation In April 2006, the Bancorp was added as a defendant in a consolidated antitrust class action lawsuit originally filed against Visa®, MasterCard ® and several other major financial institutions in the United States District Court for the Eastern District of New York (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 po ssible indemnification obligatio n of Visa as discussed in Note 17 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 settlem ent 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 3 0, 2016, reversed the district court’s approval of the class settlement, remanding the case to the district court for further proceedings. On March 27, 2017, the Supreme Court of the United States denied a petition for writ of certiorari seeking to review the Second Circuit’s decision. Pursuant to the terms of the overturned settlement agreement, the Bancorp previously paid $ 46 million into a class settlement escrow account. Because the appellate court ruling remands the case to the district court for furth er 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, approximately 25% of the funds paid into the class settlement escrow account were already returned to the control of the defendants. The remaining approximately 75% of the settlement funds paid by the Bancorp are maintained in the escrow account. More 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 Dis trict of New York. While t he Bancorp is only named as a defendant in one of the individual federal lawsuits, i t may have obligations pursuant to indemnification arrangements and/or the judgment or loss sharing agreements noted above. Refer to Note 17 f or 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 offered to eligible customers with checking accounts. The plaintiffs sought to represent a nationwide class of customers who used the Early Access program and repaid their cash advances within 30 days. On October 31, 2012, the case was transferred to the United States District Court for the Southern District of Ohio. In 2013, four similar putative class ac tions 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 la wsuits were transferred to the Southern District of Ohio and consolidated with the original lawsuit as In re: Fifth Third Early Access Cash Advance Litigation. On behalf of a putative class, the plaintiffs seek unspecified monetary and statutory damages, i njunctive relief, punitive damages, attorney’s fees, and pre- and post-judgment interest. On March 30, 2015, the court dismissed all claims alleged in the consolidated lawsuit except a claim under the federal Truth-In-Lending Act . No trial date has been sc heduled. Nina Investments, LLC v. Fifth Third Bank On July 5, 2012, Nina Investments, LLC (“Nina”) filed a lawsuit against Fifth Third Bank (Nina Investments, LLC. v. Fifth Third Bank, et al.) in the Circuit Court of Cook County, Illinois, alleging fraud and conspiracy to commit fraud related to a credit facility established by Fifth Third Bank in 2007 to finance life insurance premiums. Nina invested funds in an entity related to the borrower under the credit facility and is claiming over $ 70 million in d amages based on its alleged loss of these funds. Nina alleges that it would have made different investment decisions if Fifth Third had disclosed fraud committed by the borrower with the alleged knowledge of Fifth Third employees. Nina filed this lawsuit i n 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.) alleging fraud and breach of contract. In 2015, the court dismissed Fifth T hird’s contract and fraud claims against certain defendants. On March 17, 2017, after hearing motions for summary judgment, the court dismissed, in part, Nina’s fraud claims against Fifth Third, Fifth Third’s claims against the other defendants and Fifth T hird’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 accoun ting for any recovery on related insurance policies. The Court entered an order dismissing the matter with prejudice on June 20, 2017. H elton 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 a l. v. Fifth Third Bank). The plaintiffs allege breach of the duty to diversi f y, breach of the duty of impartiality, breach of trust/fiduciary duty, and unjust enrichment, based on Fi fth Third’s alleged failure to diversify assets held in two trusts f or the plaintiffs’ benefit. The lawsuit seeks over $ 800 million in alleged damages, attorney’s fees, removal of Fifth Third as trustee, and injunctive relief. Fifth Third denies all liabil ity. On January 5, 2016, the Court denied Fi fth Third’s motion to dismiss. On January 4, 2018, Fifth Third moved for summary judgment seeking dismissal of all the plaintiffs’ claims on statute of limitations and other grounds. Plaintiffs also moved for su mmary judgment on their breach of fiduciary duty claim. Trial is currently scheduled for June 18, 2018 . Upsher-Smith Laboratories, Inc. v. Fifth Third Bank On February 12, 2016 , Upsher-Smith Laboratories, Inc. (“Upsher-Smith”) filed suit against Fifth Third Bank in the Fourth Judicial District, Hennepin County, Minnesota (Upsher-Smith Laboratories Inc. v. Fifth Third Bank), alleging that Fifth Third improperly implemented foreign exchange transactions requested by plaintiff’s authorized employee who all egedly 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 Code, with losses allegedly totaling almost $40 million. Fifth Third denies all liability in this matter. 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 Sou thern District of Ohio on April 7, 2016, which was denied on December 29, 2016. No trial date has been scheduled. The Champions Home Owners Association, Inc. v. Jeffrey D. Quammen, et al. On July 12, 2017, Fifth Third Bank and Royce Pulliam, P&P Re al 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 Cir cuit 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 franc hise. The Plaintiffs claimed to have sustained over $50 million in damages from the alleged contract breach. Fifth Third Bank denied that any breach of contract occurred, and further asserted that Plaintiffs executed multiple releases waiving the claims at issue in the litigation. Other l itigation The Bancorp and its subsidiaries are not parties to any other material litigation. However, there are other litigation matters that arise in the normal course of business. While it is impossible to ascertain the ultimate resolution or range of financial liability with respect to these contingent matters, management believes that the resulting liability, if any, from these other actions would not have a material effect upon the Bancorp’s consolidated financial posi tion, results of operations or cash flows. Governmental Investigations and Proceedings The Bancorp and/or its affiliates are or may become involved in information-gathering requests, reviews, investigations and proceedings (both formal and informal) by various governmental regulatory agencies and law enforcement authorities, including but not limited to the FRB, CFPB, SEC, FINRA, U.S. Depart ment of Justice, etc., as well as state and other governmental authorities and self-regulatory bodies regarding their respective businesses. Additional matters will likely arise from time to time. Any of these matters may result in material adverse consequ ences to the Bancorp, its affiliates and/or their respective directors, officers and other personnel, including adverse judgments, findings, settlements, fines, penalties, orders, injunctions or other actions, amendments and/or restatements of the Bancorp’ s SEC filings and/or financial statements, as applicable, and/or determinations of material weaknesses in our disclosure controls and procedures. Investigations by regulatory authorities may from time to time result in civil or criminal referrals to law en forcement. Additionally, in some cases, regulatory authorities may take supervisory actions that are considered to be confidential supervisory information which may not be publicly disclosed. Reasonably Possible Losses in Excess of Accruals The Bancorp and its subsidiaries are parties to numerous claims and lawsuits as well as threatened or potential actions or claims concerning matters arising from the conduct of its business activities. The outcome of claims or litigation and the timing of ultimate res olution are inherently difficult to predict. The following factors, among others, contribute to this lack of predictability: claims often include significant legal uncertainties, damages alleged by plaintiffs are often unspecified or overstated, discovery may not have started or may not be complete and material facts may be disputed or unsubstantiated. As a result of these factors, the Bancorp is not always able to provide an estimate of the range of reasonably possible outcomes for each claim. An accrual f or a potential litigation loss is established when information related to the loss contingency indicates both that a loss is probable and that the amount of loss can be reasonably estimated. Any such accrual is adjusted from time to time thereafter as appr opriate to reflect changes in circumstances. The Bancorp also determines, when possible (due to the uncertainties described above), estimates of reasonably possible losses or ranges of reasonably possible losses, in excess of amounts accrued. Under U.S. GA AP, 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 estimate such possible losses or ranges of possible losses, the Bancorp currently estimates that it is reasonably possible that it could incur losses related to legal and regulatory proceedings in an aggregate amount up to approximately $ 31 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 informatio n, 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 t he matters described above, will not, individually or in the aggregate, have a material adverse effect on the Bancorp’s consolidated financial position. However, in the event of unexpected future developments, it is possible that the ultimate resolution of those matters, if unfavorable, may be material to the Bancorp’s results of operations for any particular period, depending, in part, upon the size of the loss or liability imposed and the operating results for the applicable period . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions | |
Related Party Transactions | 19 . RELATED PARTY TRANSACTIONS The Bancorp maintains written policies and procedures covering related party transactions with principal shareholders, directors and executives of the Bancorp. These procedures cover transactions such as employee-stock purchase loans, personal lines of credit, residential secured loans, overdrafts, letters of credit and increases in indebtedness. Such transactions are subject to the Bancorp’s normal underwriting and approval procedures. Prior to approving a loan to a related party, Compliance Risk Manage ment must review and determine whether the transaction requires approval from or a post notification to the Bancorp’s Board of Directors. At December 31, 2017 and 2016 , certain directors, executive officers, principal holders of Bancorp common stock and thei r related interests were indebted, including undrawn commitments to lend, to the Bancorp’s banking subsidiary. The following table summarizes the Bancorp’s lending activities with its principal shareholders, directors, executives and their related interests at December 31: ($ in millions) 2017 2016 Commitments to lend, net of participations: Directors and their affiliated companies $ 546 618 Executive officers 6 4 Total $ 552 622 Outstanding balance on loans, net of participations and undrawn commitments $ 20 54 The commitments to lend are in the form of loans and guarantees for various business and personal interests. This indebtedness was incurred in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties. This indebtedness does not involve more than the normal risk of repayment or present other features unfavorable to the Bancorp. Vantiv Holding, LLC On June 30, 2009, the Ban corp completed the sale of a majority interest in its p rocessing b usiness, Vantiv Holding, LLC . Advent International acquired an approximate 51% interest in Vantiv Holding, LLC for cash and a warrant . The Bancorp retained the remaining approximate 49 % inte rest in Vantiv Holding, LLC. During the first quarter of 2012, Vantiv, Inc. priced an IPO of its shares and contributed the net proceeds to Vantiv Holding, LLC for additional ownership interests. As a result of this offering, the Bancorp’s ownership of Va ntiv Holding, LLC was reduced to approximately 39%. The impact of the capital contributions to Vantiv Holding, LLC and the resulting dilution in the Bancorp’s interest resulted in a gain of $ 115 million recognized by the Bancorp i n the first quarter of 201 2. The following table provides a summary of the sales transactions that impacted the Bancorp's ownership interest in Vantiv Holding, LLC after the initial IPO: Remaining Ownership ($ in millions) Gain on Sale Percentage (a) Q4 2012 $ 157 33.1 % Q2 2013 242 27.7 Q3 2013 85 25.1 Q2 2014 125 22.8 Q4 2015 331 18.3 Q3 2017 1,037 8.6 (a) The Bancorp’s remaining investment in Vantiv Holding, LLC of $ 219 as of December 31, 201 7 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. The Bancorp agreed during the fourth quarter of 2015 to cancel rights to purchase approximately 4.8 million Class C Units in Vantiv Holding, LLC, the wholly-owned principal operating subsidiary of Vantiv, Inc., underlying the warrant in exchange for a cash payment of $200 million. Subsequent to this cancellation, the Bancorp exercised its right to purchase approximately 7.8 million Class C Units underlying the warrant at the $15.98 strike price. This exercise was settled on a net basis for approximately 5.4 million Class C Units, which were then exchanged for approximately 5.4 million shares of Vantiv, Inc. Class A Common Stock that were sold in the secondary offering. The Bancorp recognized a gain of $89 million in other noninterest income on the 62% of the warrant that was settled or net exercised. Additionally, during the fourth quarter of 2015, the Bancorp exchanged 8 million Class B Units of Vantiv Holding, LLC for 8 million Class A Shares in Vantiv, Inc., which were also sold in the secondary offeri ng and on which the Bancorp recognized a gain of $331 million in other noninterest income. During the fourth quarter of 2016, the Bancorp exercised its right to purchase approximately 7.8 million Class C Units underlying the warrant at the $15.98 strike p rice. This exercise was settled on a net basis for approximately 5.7 million Class C Units, which were then exchanged for approximately 5.7 million shares of Vantiv, Inc. Class A Common Stock of which 4.8 million shares were sold in a secondary offering an d 0.9 million shares were repurchased by Vantiv, Inc. The Bancorp recognized a gain of $9 million in other noninterest income in the Consolidated Statements of Income in 2016 on the exercise of the remaining warrant in Vantiv Holding, LLC. During the third quarter of 2017, the Bancorp and Fifth Third Bank entered into a transaction agreement with Vantiv, Inc. and Vantiv Holding, LLC under which Fifth Third Bank agreed to exercise its right to exchange 19.79 million of its Class B Units in Vantiv Holding, LL C for 19.79 million shares of Vantiv, Inc.’s Class A Common Stock and Vantiv, Inc. 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. As a result of these transactions, the Bancorp recognized a gain of approximately $ 1.0 billion during the third quarter of 201 7. As of December 31, 2017 , the Bancorp continued to h old ap proximately 15 million Class B U nits of Vantiv Holding, LLC whic h may be exchanged for Class A Common S tock of Vantiv, Inc. (now Worldpay, Inc.), on a one-for-one basis or at Worldpay , Inc.’s option for cash which represented approximately 8.6% owner ship of Vantiv Holding, LLC as of December 31, 2017 . In addition, the Bancorp holds ap proximately 15 million Class B Common S har es of Worldpay, Inc. which give the Bancorp voting rights, but no ec onomic interest in Worldpay, Inc. These securities are su bject to certain terms and restrictions. For more information on a subsequent event related to Vantiv Holding, LLC, refer to Note 31 . The Ban corp recognized $47 million, $66 million and $63 million, respectively, in other noninterest income as part of its equity method investment in Vantiv Holding , LLC for the years ended December 31, 2017 , 2016 and 2015 and received cash distributions totaling $ 19 million , $ 9 million and $ 11 milli on during the year s ended December 31, 2017 , 2016 and 2015 , respectively. Given the nature of Vantiv Holding, LLC’s structure as a limited liability company and contractual arrangements with Vantiv Holding, LLC, the Bancorp’s remaining investment in Vantiv Holding, LLC continues to be accounted for under the equity method of accounting as of December 31, 2017. During the fourth quarter of 2015, the Bancorp entered into an agreement with Vantiv, Inc. under which a portion of its TRA with Vantiv, In c. was terminated and settled in full for a cash payment of approximately $49 million from Vantiv, Inc. Under the agreement, the Bancorp sold certain TRA cash flows it expected to receiv e from 2017 to 2030, totaling to a then estimated $140 million. Approx imately half of the sold TRA cash flows related to 2025 and later. This sale did not impact the TRA payment recognized during the fourth quarter of 2015. During the third quarter of 2016, the Bancorp entered into an agreement with Vantiv, Inc. under which a portion of its TRA with Vantiv, Inc. was terminated and settled in full for consideration of a cash payment in the amount of $116 million from Vantiv, Inc. Under the agreement, the Bancorp terminated and settled certain TRA cash flows it expected to rec eive in the years 2019 to 2035, totaling to a then estimated $331 million. The Bancorp recognized a gain of $116 million in other noninterest income from this settlement. Additionally, the agreement provides that Vantiv, Inc. may be obligated to pay up to a total of approximately $171 million to the Bancorp to terminate and settle certain remaining TRA cash flows, totaling to a then estimated $394 million, upon the exercise of certain call options by Vantiv, Inc. or certain put options by the Bancorp. In 20 16, the Bancorp recognized a gain of $164 million in other noninterest income associated with these options. The Bancorp received $ 63 million in settlement for the call options and put options exercised during 2017 . If the remaining associated call options or put options are exercised during 2018, the Bancorp expects to receive $ 108 million in 2018. This agreement did not impact the TRA payments recognized in the fourth quarter of both 2017 and 2016 . In addition to the impact of the TRA termination s discuss ed above, the Bancorp recognized $44 million , $3 3 million and $31 million in other noninterest income in the Consolidated Statements of Income associated with the TRA during the years ended December 31, 2017 , 2016 and 2015 , respectively. The following table provides the estimated cash flows to be received as of December 31, 2017 associated with the TRA for the years ending December 31, 2018 and thereafter: Cash Flows to be Received Estimated Cash Flows to from Put/Call Option be Received not Subject ($ in millions) Exercises (Fixed Amounts) (b) to Put/Call Option (a) 2018 108 44 2019 - 20 2020 - 25 2021 - 26 2022 - 26 2023 - 27 2024 - 27 2025 - 28 2026 - 29 Thereafter - 279 Total $ 108 531 (a) The 2018 cash flow of $44 has been agreed upon with Vantiv, Inc. (now Worldpay, Inc.), for settlement in January 2018 and was recognized as a gain in other noninterest income during the fourth quarter of 2017. The remaining estimated cash flows in this column (which include TRA benefits associated with the net exercise of the warrant in 2016 and the subsequent exchange of Vantiv Holding units in the third quarter of 2017) will be recognized in future periods when the related uncertainties are resolved. ( b) As part of the agreement the Bancorp entered into with Vantiv, Inc. on July 27, 2016, Vantiv, Inc. made payments to the Bancorp of $63 during the year ended December 31, 2017 and may be obligated to pay a total of approximately $108 to the Bancorp to terminate certain remaining TRA cash flows, initially estimated to be $394, upon the exercise of certain call options by Vantiv, Inc. (now Worldpay, Inc.), or certain put options by the Bancorp. The Bancorp and Vantiv Holding, LLC have various agreements in place covering services relating to the operations of Vantiv Holding, LLC. The services provided by the Bancorp to Vantiv Holding, LLC were initially required to support Vantiv Holding, LLC as a standalone entity during the deconversion period. The majority of services previously provided by the Bancorp to support Vantiv Holding, Inc. as a standalone entity are no longer necessary and are now limited to certain general business resources. Vanti v Holding, LLC paid the Bancorp $ 1 million for these services for each of the years ended December 31, 2017 , 2016 and 2015 . Other services provided to Vantiv Holding, LLC by the Bancorp, have continued beyond the deconversion period, include inte rchange clearing, settlement and sponsorship. Vantiv Holding, LLC paid the Bancorp $ 6 8 million , $ 58 million and $ 47 million for these services for the years ended December 31, 2017 , 2016 and 2015 , respectively . In addition to the previously menti oned services, the Bancorp previously entered into an agreement under which Vantiv Holding, LLC will provide processing services to the Bancorp. The total amount of fees relating to the processing services provided to the Bancorp by Vantiv Holding, LLC tot aled $ 72 million , $ 76 million and $ 8 9 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. These fees are reported as a component of card and processing expense in the Consolidated Statements of Income. As part of the initi al sale, Vantiv Holding, LLC assumed loans totaling $ 1.25 billion owed to the Bancorp, which were refinanced in 2010 into a larger syndicated loan structure that included the Bancorp. The outstanding carrying value of loans to Vantiv Holding, LLC was $ 2 03 million and $ 210 million at December 31, 2017 and 2016 , respectively . Additionally, as of December 31, 2017 and 2016 , the Bancorp had derivative assets of $ 2 million and $ 7 million, respectively, related to interest rate contracts entered into with Vantiv Holding, LLC which are included in other assets on the Consolidated Balance Sheets. Interest income relating to the loans was $ 5 million, $ 4 million and $ 4 million for the years ended December 31, 2017 , 2016 and 2015 , respectively , an d is included in interest and fees on loans and leases in the Consolidated Statements of Income. Vantiv Holding, LLC’s unused line of credit was $ 4 million and $ 59 million as of December 31, 2017 and 2016 , respectively . SLK Global As of December 31, 2017 , the Bancorp owns 100% of Fifth Third Mauritius Holdings Limited, which owns 49% of SLK Global, and accounts for this investment under the equity method of accounting. The Bancorp recognized $3 million in other noninterest income in the Consolidated Statements of Income as part of its equity method investment in SLK Global for the year ended December 31, 2017 . The Bancorp did not receive cash distributions during the year ended December 31, 2017 . The Bancorp’s investment in SLK Global was $ 22 million at December 31, 2017 . The Bancorp paid SLK Global $21 million , $20 million and $17 million for their process and software services during t he years ended December 31, 2017 , 2016 and 2015 , respectively , which are included other noninterest expense in the Consolidated Statements of Income . CDC Investments The Bancorp ’s subsidiary, CDC, has equity investments in entities in which the Bancorp had $83 million and $76 mil lion of loans outstanding at December 31, 2017 and 2016 , respectively , and unfunded commitmen t balances of $80 million and $18 million at December 31, 2017 and 2016 , respectively. The Bancorp held $26 million and $28 million of deposits for these entities at December 31, 2017 and 2016 , respectively. For further information on CDC investments, refer to Note 11 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes | |
Income Taxes | 20 . IN COME TAXES The Bancorp and its subsidiaries file a consolidated federal income tax return. The following is a summary of applicable income taxes included in the Consolidated Statements of Income for the years ended December 31: ($ in millions) 2017 2016 2015 Current income tax expense: U.S. Federal income taxes $ 763 598 662 State and local income taxes 68 55 55 Foreign income taxes (3) - 13 Total current income tax expense 828 653 730 Deferred income tax benefit: U.S. Federal income taxes (252) (133) (78) State and local income taxes 1 (14) 6 Foreign income taxes - (1) 1 Total deferred income tax benefit (251) (148) (71) Applicable income tax expense $ 577 505 659 The following is a reconciliation between the federal statutory corporate tax rate and the Bancorp’s effective tax rate for the years ended December 31: 2017 2016 2015 Federal statutory corporate tax rate 35.0 % 35.0 35.0 Increase (decrease) resulting from: State taxes, net of federal benefit 1.6 1.3 1.7 Tax-exempt income (1.2) (2.7) (1.7) Low-income housing tax credits (6.0) (7.9) (6.6) Other tax credits (0.5) (0.9) (0.9) U.S. tax legislation impact on deferred taxes (7.9) - - Other, net (0.2) (0.4) 0.3 Effective tax rate 20.8 % 24.4 27.8 Other tax credits in the rate reconciliation table include New Markets, Rehabilitation Investment and Qualified Zone Academy Bond tax credits. Tax-exempt income in the rate reconciliation table includes interest on municipal bonds, interest on tax-exempt lending, income on life insurance policies held by the Bancorp, and certain gains on sales of leases that are exempt from federal taxation . On December 22, 2017, the U.S. government enacted comprehensive tax legislation known as the TCJA. The TCJA makes br oad and complex changes to the U.S. tax code including, but not limited to, reducing the top federal statutory corporate tax rate from 35 percent to 21 percent effective for tax years beginning after December 31, 2017. U.S. GAAP requires the Bancorp to rec ognize the tax effects of changes in tax laws and rates on its deferred taxes in the period in which the law is enacted. As a result, for the year ended December 31, 2017, the Bancorp remeasured its deferred tax assets and liabilities and recognized an inc ome tax benefit of approximately $ 220 million . The following table provides a reconciliation of the beginning and ending amounts of the Bancorp’s unrecognized tax benefits: ($ in millions) 2017 2016 2015 Unrecognized tax benefits at January 1 $ 24 13 11 Gross increases for tax positions taken during prior period 17 9 1 Gross decreases for tax positions taken during prior period (1) - - Gross increases for tax positions taken during current period 3 2 2 Settlements with taxing authorities (7) - - Lapse of applicable statute of limitations (2) - (1) Unrecognized tax benefits at December 31 (a) $ 34 24 13 (a ) Amounts represent unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. The Bancorp’s unrecognized tax benefits as of December 31, 2017, 2016 and 2015 primarily relate to state income tax exposures from taking tax positions where the Bancorp believes it is likely that, upon examination, a state will take a position contrary to the position taken by the Bancorp. While it is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the Bancorp’s uncertain tax positions could increase or decrease during the next twelve months, the Bancorp be lieves it is unlikely that its unrecognized tax benefits will change by a material amount durin g the next twelve months. Deferred income taxes are comprised of the following items at December 31: ($ in millions) 2017 2016 Deferred tax assets: Allowance for loan and lease losses $ 251 439 Deferred compensation 77 122 Reserve for unfunded commitments 34 56 Reserves 29 57 State net operating loss carryforwards 9 9 Other 102 223 Total deferred tax assets $ 502 906 Deferred tax liabilities: Lease financing $ 616 940 MSRs and related economic hedges 111 202 State deferred taxes 64 64 Bank premises and equipment 42 61 Investments in joint ventures and partnership interests 34 219 Other comprehensive income 21 34 Other 137 173 Total deferred tax liabilities $ 1,025 1,693 Total net deferred tax liability $ (523) (787) At both December 31, 2017 and 2016, the Bancorp recorded deferred tax assets of $ 9 million, related to state net operating loss carryforwards. The deferred tax assets relating to state net operating losses (primarily resulting from leasing operations) are presented net of specific valuation allowances of $ 27 million and $ 25 million at December 31, 2017 and 2016, respectively. If these carryforwards are not utilized, they will expire in varying amounts through 2037. At December 31, 2017 and 2016, the Bancor p recorded a deferred tax asset of $ 2 million and $ 3 million, respectively, related to a foreign tax credit carryforward. If not utilized, the deferred tax asset relating to the foreign tax credit carryforward will begin to expire in 2025. The Bancorp has determined that a valuation allowance is not needed against the remaining deferred tax assets as of December 31, 2017 or 2016. The Bancorp considered all of the positive and negative evidence available to determine whether it is more likely than not that t he deferred tax assets will ultimately be realized and, based upon that evidence, the Bancorp believes it is more likely than not that the deferred tax assets recorded at December 31, 2017 and 2016 will ultimately be realized. The Bancorp reached this conc lusion as the Bancorp has taxable income in the carryback period and it is expected that the Bancorp’s remaining deferred tax assets will be realized through the reversal of its existing taxable temporary differences and its projected future taxable income . The IRS has concluded its examination of the Bancorp’s 2012 and 2013 federal income tax returns and is currently examining the Bancorp’s 2014 federal income tax return. The statute of limitations for the Bancorp’s federal income tax returns remains open for tax years 2012-2017. On occasion, as various state and local taxing jurisdictions examine the returns of the Bancorp and its subsidiaries, the Bancorp may agree to extend the statute of limitations for a reasonable period of time. Otherwise, the statu tes of limitations for state income tax returns remain open only for tax years in accordance with each state’s statutes. Any interest and penalties incurred in connection with income taxes are recorded as a component of income tax expense in the Consolidat ed Financial Statements. During the years ended December 31, 2017 and 2016, the Bancorp recognized $ 2 million and $ 1 million, respectively, of interest expense in connection with income taxes and an immaterial amount of interest benefit for the year ended December 31, 2015. At December 31, 2017 and 2016, the Bancorp had accrued interest liabilities, net of the related tax benefits, of $ 3 million and $ 1 million, respectively. No material liabilities were recorded for penalties related to income taxes. Retain ed earnings at December 31, 2017 and 2016 included $ 157 million in allocations of earnings for bad debt deductions of former thrift subsidiaries for which no income tax has been provided. Under current tax law, if certain of the Bancorp’s subsidiaries use these bad debt reserves for purposes other than to absorb bad debt losses, they will be subject to federal income tax at the current federal statutory corporate tax rate. |
Retirement and Benefit Plans
Retirement and Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement and Benefit Plans | |
Retirement and Benefit Plans | 21 . RETIR EMENT AND BENEFIT PLANS The Bancorp’s qualified defined benefit plan’s benefits were frozen in 1998, except for grandfathered employees. The Bancorp’s other retirement plans consist of non - qualified defined benefit plans which are frozen and funded on an as needed basis. A majority of these plans were obtained in acquisitions from prior years and are included with the qualified defined benefit plan in the following tables (“the Plan”) . The Bancorp recognizes the overfunded and underfu nded status of the Plan as an ass et and l iability, respectively, in the Consolidated Balance Sheets. The Plan had an underfunded projected benefit obligation at both December 31, 2017 and 2016 . The underfunded amounts recognized in other liabilities in the Consolidated Balance Sheets were $ 2 4 million and $ 34 million at December 31, 2017 and 2016 , respectively. The following table summarizes the Plan as of and for the years ended December 31: ($ in millions) 2017 2016 Fair value of plan assets at January 1 $ 172 166 Actual return on assets 28 11 Contributions 6 20 Settlement (11) (15) Benefits paid (10) (10) Fair value of plan assets at December 31 $ 185 172 Projected benefit obligation at January 1 $ 206 220 Interest cost 8 9 Settlement (11) (15) Actuarial loss 16 2 Benefits paid (10) (10) Projected benefit obligation at December 31 $ 209 206 Underfunded projected benefit obligation at December 31 $ (24) (34) Accumulated benefit obligation at December 31 (a) $ 209 206 (a) Since the Plan’s benefits are frozen , the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2017 and 2016 . T he estimated net actuarial loss for the Plan that will be amortized from AOCI into net periodic benefit cost during 2018 is $ 7 million. The estimated net prior service cost for the Plan that will be amortized from AOCI into net periodic benefit cost during 2018 is immaterial to the Consolidated Financial Statements. The following table summarizes net periodic benefit cost and other changes in the Plan's assets and benefit obligations recognized in OCI for the years ended December 31: ($ in millions) 2017 2016 2015 Components of net periodic benefit cost: Interest cost $ 8 9 9 Expected return on assets (10) (11) (13) Amortization of net actuarial loss 7 11 10 Settlement 4 7 7 Net periodic benefit cost $ 9 16 13 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial (gain) loss $ (1) 2 9 Amortization of net actuarial loss (7) (11) (10) Settlement (4) (7) (7) Total recognized in other comprehensive income (12) (16) (8) Total recognized in net periodic benefit cost and other comprehensive income $ (3) - 5 Fair Value Measurements of Plan Assets The following tables summarize plan assets measured at fair value on a recurring basis as of December 31: Fair Value Measurements Using (a) 2017 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Equity securities $ 73 - - 73 Mutual and exchange-traded funds: Money market funds 7 - - 7 International funds - 30 - 30 Domestic funds - 29 - 29 Debt funds - 1 - 1 Alternative strategies 1 9 - 10 Commodity funds 5 - - 5 Total mutual and exchange-traded funds $ 13 69 - 82 Debt securities: U.S. Treasury and federal agencies securities 8 2 - 10 Mortgage-backed securities: Agency residential mortgage-backed securities - 1 - 1 Agency commercial mortgage-backed securities - 2 - 2 Non-agency commercial mortgage-backed securities - 1 - 1 Asset-backed securities and other debt securities (b) - 16 - 16 Total debt securities $ 8 22 - 30 Total plan assets $ 94 91 - 185 For further information on fair value hierarchy levels, refer to Note 1 . Includes corporate bonds. Fair Value Measurements Using (a) 2016 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Equity securities (b) $ 56 - - 56 Mutual and exchange-traded funds: Money market funds 6 - - 6 International funds - 31 - 31 Domestic funds - 39 - 39 Debt funds - 5 - 5 Alternative strategies 1 9 - 10 Commodity funds 6 - - 6 Total mutual and exchange-traded funds $ 13 84 - 97 Debt securities: U.S. Treasury and federal agencies securities 7 1 - 8 Mortgage-backed securities: Agency residential mortgage-backed securities - 1 - 1 Agency commercial mortgage-backed securities - 2 - 2 Asset-backed securities and other debt securities (c) - 8 - 8 Total debt securities $ 7 12 - 19 Total plan assets $ 76 96 - 172 For further information on fair value hierarchy levels, refer to Note 1 . Includes holdings in Bancorp common stock. Includes corporate bonds. The following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Equity securities The P lan measures common stock using quoted prices which are available in an active market and classifies these investments within Level 1 of the valuation hierarchy. Mutual and exchange- traded funds All of the Plan’s mutual and exchange- traded funds are publicly traded. The P lan meas u res the value of these investments using the fund’s quoted prices which are available in an active market and classifies these investments within Level 1 of the valuation hierarchy. Level 1 securities include money market funds, alternative strategies and commodity funds. Where quoted prices are not available, the Plan measures the fair value of these investments based on the redemption price of units held, which is based on the current fair value of the fund’s underlyi ng assets. Unit values are determined by dividing the fund’s net assets at fair value by its units outstanding at the valuation dates to obtain the investment’s net asset value. Therefore, investments such as international funds, domestic funds, debt funds and alternative strategies are classified within Level 2 of the valuation hierarchy. Debt securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include U. S. Treasury securities. If quoted market prices are not available, the n fair values are estimated using pricing models, quoted prices of securities with similar characteristics, or DCFs. Examples of such instruments, which are classified within Level 2 of the valuation hierarchy, include federal agencies securities, agency residential mortgage-backed securities, agency commercial mortgage-backed securities, non-agency commercial mortgage-backed securities and asset-backed securities and other debt securities. Plan Assumptions The P lan ’s assumptions are evaluated annually and are updated as necessary. The discount rate assumption reflects the yield on a portfolio of high quality fixed-income instruments th at have a similar duration to the P lan’s liabilities. The expected long-term rate of return assumption reflects the average return expected on the assets invested to provide for the P lan’s liabilities. In determining the expected long-term rate of return, the Bancorp evaluated actuarial and economic inputs, including long-term inflation rate assumptions and broad equity and bond indices long-term return projections, as well as actual long-t erm historical plan performance. The following table summarizes the weighted-average plan assumptions for the years ended December 31: 2017 2016 2015 For measuring benefit obligations at year end: (a) Discount rate 3.47 % 3.97 4.16 Expected return on plan assets 6.00 7.00 7.00 For measuring net periodic benefit cost: (a) Discount rate 3.97 4.16 3.82 Expected return on plan assets 6.00 7.00 7.00 (a) Since the Plan’s benefits were frozen , except for grandfathered employees, the rate of compensation increase is no longer applicable beginning in 2014 since minimal grandfathered employees are still accruing benefits. Lowering both the expected rate of return on the plan assets and the discount rate by 0.25% would have increased the 2017 pension expense by approximately $ 1 million. Based on the actuarial assumptions, the Bancorp expects to contribute $ 3 million to the Plan in 2018 . Esti mated pension benefit payments are $ 17 million for each of the years 2018 through 2022 . The total estimated payments for the years 202 3 through 202 7 is $ 77 million. Investment Policies and Strategies The Bancorp’s policy fo r the investment of plan assets is to employ investment strategies that achieve a range of weighted-average target asset allocations relating to equity securities (including the Bancorp’s common stock), fixed- income securities (including U.S. Treasury and federal agencies securities , mortgage-backed securities, asset-backed securities and corporate bonds ) , alternative strategies (including traditional mutual funds, precious metals and commodities) and cash. The following table provides the Bancorp’s targeted and actual weighted-average asset allocations by asset category for the years ended December 31: Targeted Range (b) 2017 2016 Equity securities 76 % 73 Bancorp common stock 1 2 Total equity securities (a) 60-90 % 77 75 Fixed-income securities 5-25 16 14 Alternative strategies 3-11 3 6 Cash 0-13 4 5 Total 100 % 100 Includes mutual and exchange- traded funds . These reflect the targeted ranges for both the years ended December 31, 2017 and 2016 . The risk tolerance for the Plan is determined by management to be “moderate to aggressive”, recognizing that higher returns involve some volatility and that periodic declines in the portfolio’s value are tolerated in an effort to achieve real capital growth. There were no significant co ncentrations of risk associated with the investments of th e Plan at December 31, 2017 and 2016 . Permitted asset classes of the Plan include c ash and cash equivalents, fixed- income (domestic and non-U.S. bonds), equities (U.S., non-U.S., emerging mark ets and real estate investment trusts ), equipment leasing , precious metals, commod ity transactions and mortgages. The Plan utilizes derivative instruments including puts, calls, straddles or other option strategies , as approved by management. Per ERISA, th e Bancorp’s common stock cannot exceed 10% of the fair value of plan assets. Fifth Third Bank, as Trustee, is expected to manage plan assets in a manner consistent with the plan agreement and other regulatory, federal and state laws. As of December 31, 2017 and 2016 , $ 1 85 million and $ 172 million, respectively, of plan assets were managed by Fifth Third Bank. The Fifth Third Bank Pension, 401(k) and Medical Plan Committee (the “Committee”) is the plan administrator. The Trustee is required to provide to the Committee monthly and quarterly reports covering a list of plan assets, portfolio performance, transactions and asset allocation. The Trustee is also required to keep the Committee apprised of any material changes in the Trustee’s outlook and recomm ended investment policy. There were no fees paid by the Plan for investment management, accounting or administrative services provided by the Trustee. As of December 31, 2017 , there was no Bancorp common stock in Plan assets. As of December 31, 2016 , Plan assets included $ 5 million of Bancorp common stock, which was below the 10% ERISA threshold previously discussed . Plan assets are not expected to be returned to the Bancorp during 2018 . Other Information on Retirement and Benefit Plans The Bancorp has a qualified defined contribution savings plan that allows participants to make voluntary 401(k) contributions on a pre-tax or Roth basis, subject to statutory limitations. The Bancorp amended and restated the qualified defined contribution savings plan in its entirety, effective as of January 1, 2015. Beginning with the 2015 plan year, the Bancorp provides a higher company 401(k) match contribution. Expenses recognized for matching contributions to the Bancorp’s qualified defined contributio n savings plan were $ 7 9 million , $ 7 5 million and $ 71 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Bancorp did not make profit sharing contributions during the years ended December 31, 2017 , 2016 and 2015 . In a ddition, the Bancorp has a non-qualified defined contribution plan that allows certain employees to make voluntary contributions into a deferred compensation plan. Expenses recognized by the Bancorp for its non-qualified defined contribution plan were $ 4 m illion for the year ended December, 31 2017 and $ 3 million for both of the years ended December 31, 2016 and 2015 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | 22 . ACCUMULATED OTHER COMPREHENSIVE INCOME The tables below presents the activity of the components of OCI and AOCI for the years ended December 31: Total OCI Total AOCI Pre-tax Tax Net Beginning Net Ending 2017 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during the year $ 14 7 21 Reclassification adjustment for net losses on available-for-sale securities included in net income 3 1 4 Net unrealized gains on available-for-sale securities 17 8 25 101 25 126 Unrealized holding losses on cash flow hedge derivatives arising during the year (11) 4 (7) Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (19) 7 (12) Net unrealized losses on cash flow hedge derivatives (30) 11 (19) 10 (19) (9) Net actuarial gain arising during the year 1 - 1 Reclassification of amounts to net periodic benefit costs 11 (4) 7 Defined benefit pension plans, net 12 (4) 8 (52) 8 (44) Total $ (1) 15 14 59 14 73 Total OCI Total AOCI Pre-tax Tax Net Beginning Net Ending 2016 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding losses on available-for-sale securities arising during the year $ (196) 66 (130) Reclassification adjustment for net gains on available-for-sale securities included in net income (11) 4 (7) Net unrealized gains on available-for-sale securities (207) 70 (137) 238 (137) 101 Unrealized holding gains on cash flow hedge derivatives arising during the year 30 (11) 19 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (48) 17 (31) Net unrealized gains on cash flow hedge derivatives (18) 6 (12) 22 (12) 10 Net actuarial loss arising during the year (2) 1 (1) Reclassification of amounts to net periodic benefit costs 18 (6) 12 Defined benefit pension plans, net 16 (5) 11 (63) 11 (52) Total $ (209) 71 (138) 197 (138) 59 Total OCI Total AOCI Pre-tax Tax Net Beginning Net Ending 2015 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding losses on available-for-sale securities arising during the year $ (349) 122 (227) Reclassification adjustment for net gains on available-for-sale securities included in net income (16) 6 (10) Net unrealized gains on available-for-sale securities (365) 128 (237) 475 (237) 238 Unrealized holding gains on cash flow hedge derivatives arising during the year 74 (26) 48 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (75) 26 (49) Net unrealized gains on cash flow hedge derivatives (1) - (1) 23 (1) 22 Net actuarial loss arising during the year (9) 4 (5) Reclassification of amounts to net periodic benefit costs 17 (6) 11 Defined benefit pension plans, net 8 (2) 6 (69) 6 (63) Total $ (358) 126 (232) 429 (232) 197 The table below presents reclassifications out of AOCI for the years ended December 31: Consolidated Statements of Components of AOCI: ($ in millions) Income Caption 2017 2016 2015 Net unrealized gains on available-for-sale securities: (b) Net (losses) gains included in net income Securities gains, net $ (3) 11 16 Income before income taxes (3) 11 16 Applicable income tax expense (1) (4) (6) Net income (4) 7 10 Net unrealized gains on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases 19 48 75 Income before income taxes 19 48 75 Applicable income tax expense (7) (17) (26) Net income 12 31 49 Net periodic benefit costs: (b) Amortization of net actuarial loss Employee benefits expense (a) (7) (11) (10) Settlements Employee benefits expense (a) (4) (7) (7) Income before income taxes (11) (18) (17) Applicable income tax expense 4 6 6 Net income (7) (12) (11) Total reclassifications for the period Net income $ 1 26 48 This AOCI component is included in the computation of net periodi c benefit cost. Refer to Note 21 f or information on the computation of net periodic benefit cost. Amounts in parentheses indicate reductions to net income. |
Common, Preferred and Treasury
Common, Preferred and Treasury Stock | 12 Months Ended |
Dec. 31, 2017 | |
Common, Preferred and Treasury Stock | |
Common, Preferred and Treasury Stock | 23 . COMMON , PREFERRED AND TREASURY STOCK The table presents a summary of the share activity within common, preferred and treasury stock for the years ended: Common Stock Preferred Stock Treasury Stock ($ in millions, except share data) Value Shares Value Shares Value Shares December 31, 2014 $ 2,051 923,892,581 $ 1,331 54,000 $ (1,972) 99,845,629 Shares acquired for treasury - - - - (847) 42,607,855 Impact of stock transactions under stock compensation plans, net - - - - 52 (3,593,406) Other - - - - 3 (47,811) December 31, 2015 $ 2,051 923,892,581 $ 1,331 54,000 $ (2,764) 138,812,267 Shares acquired for treasury - - - - (668) 34,633,221 Impact of stock transactions under stock compensation plans, net - - - - (4) 42,357 Other - - - - 3 (74,563) December 31, 2016 $ 2,051 923,892,581 $ 1,331 54,000 $ (3,433) 173,413,282 Shares acquired for treasury - - - - (1,588) 58,493,506 Impact of stock transactions under stock compensation plans, net - - - - 16 (1,693,503) Other - - - - 3 (125,597) December 31, 2017 $ 2,051 923,892,581 $ 1,331 54,000 $ (5,002) 230,087,688 Preferred Stock—Series J On June 5, 201 4 , the Bancorp issued, in a registered public offering, 300,000 depositary shares, representing 12,000 shares of 4.90% fixed to floating-rate non-cumulative Series J perpetual preferred stock, for net proceeds of $ 297 million. Each preferred share has a $ 25,000 liquidation preference. The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 4.90% through but excluding September 30, 2019 , at which time it converts to a quarte rly floating - rate divi dend of three-month LIBOR plus 3.129 %. Subject to any required regulatory approval, the Bancorp may redeem the Series J preferred shares at its option , in whole or in part, at any time on or after September 30, 2019, or any time prior following a regulatory capital ev ent . The Series J preferred shares are not convertible into Bancorp common shares or any other securities. Preferred Stock—Series I On December 9, 2013, the Bancorp issued, in a registered public offering, 18,000,000 depo sitary shares, representing 18,000 shares of 6.625% fixed to floating-rate non-cumulative Series I perpetual preferred stock, for net proceeds of $ 441 million. Each preferred share has a $ 25,000 liquidation preference. The preferred stock accrues dividends , on a non-cumulative quarterly basis, at an annual rate of 6.625% through but excluding December 31 , 2023, at which time it converts to a quarterly floating - rate divi dend of three-month LIBOR plus 3.71 % . Subject to any required regulatory approval, the Ba ncorp may redeem the Series I preferred shares at its option in whole or in part, at any time on or after December 31 , 2023 and may redeem in whole but not in part, following a regulatory capital ev ent at any time prior to December 31, 2023 . The Series I p referred shares are not convertible into Bancorp common shares or any other securities. Preferred Stock—Series H On May 1 6 , 2013, the Bancorp issued , in a registered public offering , 600,000 depositary shares, representing 24,000 shares of 5.10% fixed to floating - rate non-cumulative Series H perpetual p referred stock, for net proceeds of $ 593 million. Each preferred share has a $ 25,000 liquidation preference. The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 5.10% through but excluding June 30, 2023, at which time it converts to a quarterly floating - rate dividend of three-month LIBOR plus 3.033% . Subject to any required regulatory approval, the Bancorp may redeem the Series H preferred shares at its option in whole or in part, at any time on or after June 30, 2023 and may redeem in whole but not in part, following a regulatory capital event at any time prior to June 30, 2023 . The Series H preferred shares are not convertible into Bancorp common shares or any o ther securities. Treasury Stock On March 1 5 , 201 6 , the Board of Directors authorized the Bancorp to repurchase up to 100 million common shares in the open market or in privately negotiated transactions and to utilize any derivative or s imilar instrument to effect share repurchase transactions. This share repurchase authorization replaced the Board’s previous authorization from March of 201 4. On March 11, 2015, the Bancorp announced the results of its capital plan submitted to the FRB as part of the 2015 CCAR. The FRB indicated to the Bancorp that it did not object to the potential repurchase of $ 765 million of common shares with the additional ability to repurchase common shares in an amount equal to any after-tax gains realized by the Bancorp from the sale of Vantiv, Inc. common stock for the period beginning April 1, 2015 and ending June 30, 2016. On June 29, 2016, the Bancorp announced the r esults of its capital plan submitted to the FRB as part of the 2016 CCAR. The FRB indicated to the Bancorp that it did not object to the potential repurchase of $ 660 million of common shares with the additional ability to repurchase common shares in an amo unt equal to any after-tax gains realized by the Bancorp from the sale of Vantiv, Inc. common stock or from the termination and settlement of any portion of the TRA with Vantiv , Inc., if executed, for the period beginning July 1, 2016 and ending June 30, 20 17. On June 28, 2017, the Bancorp announced the results of its capital plan submitted to the FRB as part of the 2017 CCAR. The FRB indicated to the Bancorp that it did not object to the potential repurchase of $ 1.161 b illion of common shares with the addit ional ability to repurchase common shares in an amount equal to any after-tax gains realized by the Bancorp from the sale of Vantiv, Inc. common stock or from the termination and settlement of any portion of the TRA with Vantiv , Inc., if executed, for the p eriod beginning July 1, 2017 and ending June 30, 2018. The Bancorp entered into a number of accelerated share repurchase transaction s during the years ended December 31, 2016 and 2017. As part of these transaction s , the Bancorp entered into forward cont racts in which the final number of shares delivered at settlement was based generally on a disco unt to the average daily volume weighted- average price of the Bancorp’s common stock during the term of the se repurchase a greements. T he accelerated share repur chases were treated as two separate transactions : (i) the repurchase of treasury shares on the repurchase date and (ii) a forward contract indexed to the Bancorp’s common stock. The following table presents a summary of the Bancorp's accelerated share repurchase transactions that were entered into or settled during the years ended December 31, 2016 and 2017: Shares Repurchased on Shares Received from Total Shares Repurchase Date Amount ($ in millions) Repurchase Date Forward Contract Settlement Repurchased Settlement Date December 14, 2015 215 9,248,482 1,782,477 11,030,959 January 14, 2016 March 4, 2016 240 12,623,762 1,868,379 14,492,141 April 11, 2016 August 5, 2016 240 10,979,548 1,099,205 12,078,753 November 7, 2016 December 20, 2016 155 4,843,750 1,044,362 5,888,112 February 6, 2017 May 1, 2017 342 11,641,971 2,248,250 13,890,221 July 31, 2017 August 17, 2017 990 31,540,480 4,291,170 35,831,650 December 18, 2017 December 19, 2017 273 7,727,273 (a) (a) (a) The settlement of the transaction is expected to occur on or before March 19, 2018. For further information on a subsequent event related to an accelerated share repurchase transaction refer to Note 31 . Open Market Share Repurchase Transactions Between June 17, 2016 and June 20, 2016, the Bancorp repurchased 1,436,100 shares, or approximately $26 million, of its outstanding common stock through open market repurchase transactions . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation | |
Stock-Based Compensation | 24 . STOCK-BASED COMPENSATION The Bancorp has histori cally emphasized employee stock ownership. The following table provides detail of the number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance under all of the Bancorp’s equity compensation plans approved by shareholders as of December 31, 2017 : Plan Category (shares in thousands) Number of Shares to be Issued Upon Exercise Weighted-Average Exercise Price Per Share Shares Available for Future Issuance Equity compensation plans 21,687 (a) SARs (b) - (a) RSAs 2,321 - (a) RSUs 6,986 - (a) Stock options 2 $16.50 (a) PSAs (c) - (a) Employee stock purchase plan 5,653 (d) Total shares 9,309 27,340 Under the 2017 Incentive Compensation Plan, 17.5 million shares were authorized for issuance as SARs, RSAs, RSUs, stock options, performance share or unit awards, dividend or dividend equivalent rights and stock awards . The number of shares to be issued upon exercise will be determined at exercise based on the difference between the gra nt price and the market price on the date of exercise and the calculation of taxes owed on the exercise . The number of shares to be issued is dependent upon the Bancorp achieving certain predefined performance targets and ranges from zero shares to approximately 2 million shares. Represents remaining shares of Fifth Third common stock under the Bancorp’s 1993 Stock Purchase Plan, as amended and restated, including an additional 1.5 million shares approved by shareholders on March 28, 2007 and an additional 12 million shares approved by shareholders on April 21, 2009 . Stock-based awards are eligible for issuance under the Bancorp’s Incentive Compensation Plan to executives, directors and key employees of the Bancorp and its subsidiaries. The 2017 Incentive Compensation Plan was approved by shareholders on April 18, 2017 and authorized the issuance of up to 6 million shares, in addition to the 11.5 million unused shares from the 2014 Incentive Compensation Plan , as equity compensation and provides for SARs, RSAs, RSUs, stock options, performance share or unit awards, dividend or dividend equi valent rights and stock awards. Based on total stock-based awards outstanding (including SARs, RSAs, RSUs, stock options and PSA s) and shares remaining for future grants under the 20 17 Incentive Compensation Plan, the potential dilution to which the Bancorp’s shareholders of common stock are exposed due to the potential that stock-based compensation will be awarded to executives, d irectors or key employees of the Bancorp and its subsidiaries is 9%. SARs, RSAs, RSUs, stock options and PSAs outstanding represent 6% of the Bancorp’s issued shares at December 31, 2017 . All of the Bancorp’s stock-based awards are to be settled with st ock. The Bancorp has historically used treasury stock to settle stock-based awards, when available. SARs, issued at fair value based on the closing price of the Bancorp’s common stock on the date of grant, have up to ten year terms and vest and b ecome exer cisable ratably over a three or four year period of continued employment . The Bancorp does not grant discounted SARs or stock options, re-price previousl y granted SARs or stock options or grant reload stock options. RSAs and RSUs are released after three o r four years or ratably over three or four years of continued employment . RSAs include dividend and voting rights while RSUs receive dividend equivalents only . Stock options were previously issued at fair value based on the closing price of the Bancorp’s c ommon stock on the date of grant, had up to ten year terms and vested and became fully exercisable ratably over a three or four year period of continued employment. PSAs have three year cliff vesting terms with market conditions and/or performance conditio ns as defined by the plan. All of the Bancorp’s executive stock-based awards contain an annual performance hurdle of 2% return on tangible common equity. If this threshold is not met in any one of the three years during the performance period, one-third of PSAs are forfeited. Additionally, i f this threshold is not met , all SARs, RSAs and RSUs that would vest in the next year may also be forfeited at the discretion of the Human Capital and Compensation Committee of the Board of Directors. The Bancorp met thi s threshold as of December 31, 2017 . Stock-based compensation expense was $ 118 million, $ 111 million and $ 100 million for the years ended December 31, 2017 , 2016 and 2015 , r espectively, and is included in salaries, wages and incentives in the Consolidated Statements of Income. The total related income tax benefit recognized was $ 41 million, $ 39 million and $ 36 million for the years ended December 31 , 2017 , 2016 and 2015 , respectively. Stock Appreciation Rights The Bancorp uses assumptions, which are evaluated and revised as necessary, in estimating the grant-date fair value of each SAR grant. The weighted-average assumptions were as follows for the years ended December 31: 2017 2016 2015 Expected life (in years) 6 6 6 Expected volatility 37 % 37 35 Expected dividend yield 2.1 3.1 2.7 Risk-free interest rate 2.1 1.5 1.6 The expected life is generally derived from historical exercise patterns and represents the amount of time that SARs granted are expected to be outstanding. The expected volatility is based on a combination of historical and implied volatilities of the Bancorp’s common stock. The expected dividend yield is based on annual dividends divided by the Bancorp’s stock price. Annual dividends are based on projected dividends, estimated using a n expected long-term dividend payout ratio, over the estimated life of the awards. The risk-free interest rate for periods within th e contractual life of the SARs is based on the U.S. Trea sury yield curve in effect at the time of grant. The grant-date fair value of SARs is measured using the Black-Scholes option-pricing model. The weighted-average grant-date fair value of SARs granted was $ 8.55 , $ 5 . 16 and $ 5.52 per share for the years end ed December 31, 2017 , 2016 and 2015 , respectively. The total grant-date fair value of SARs that vested during the years ended December 31, 2017 , 2016 and 2015 was $ 29 million , $ 32 million and $ 35 million , respectively. At December 31, 2017 , there was $ 36 million of stock -based compensation expense related to outstanding SARs not yet recognized. The expense is expected to be recognized over a n estimated remaining weighted -ave rage period at December 31, 2017 of 2.3 years . 2017 2016 2015 Weighted- Weighted- Weighted- Number of SARs Average Grant Number of SARs Average Grant Number of SARs Average Grant SARs (in thousands, except per share data) Price Per Share Price Per Share Price Per Share Outstanding at January 1 40,041 $ 18.30 44,129 $ 19.14 45,590 $ 19.79 Granted 3,672 26.52 6,379 17.68 5,219 18.99 Exercised (6,953) 16.00 (6,291) 14.47 (3,242) 13.59 Forfeited or expired (4,831) 35.08 (4,176) 32.02 (3,438) 32.96 Outstanding at December 31 31,929 $ 17.22 40,041 $ 18.30 44,129 $ 19.14 Exercisable at December 31 21,403 $ 15.30 26,898 $ 18.28 29,721 $ 19.71 The following table summarizes outstanding and exercisable SARs by grant price per share at December 31, 2017: Outstanding SARs Exercisable SARs Weighted- Weighted- Weighted- Average Remaining Weighted- Average Remaining Number of Average Grant Contractual Life Number of Average Grant Contractual Life SARs (in thousands, except per share data) SARs Price Per Share (in years) SARs Price Per Share (in years) Under $10.00 1,762 $ 3.98 1.3 1,762 $ 3.98 1.3 $10.01-$20.00 23,899 16.33 5.3 17,650 15.71 4.4 $20.01-$30.00 6,268 24.31 7.8 1,991 21.63 6.3 All SARs 31,929 $ 17.22 5.6 21,403 $ 15.30 4.3 Restricted Stock Awards The total grant-date fair value of RSAs that were released during the years ended December 31, 2017 , 2016 and 2015 was $ 39 million , $ 55 million and $ 43 million, respectively. At December 31, 2017 , there was $ 21 million of stock-based c ompensation expense related to outstanding RSAs not yet recognized. The expense is expected to be recognized over an estimated remaining weighted-average period at December 31, 2017 of 1.3 years . 2017 2016 2015 Weighted-Average Weighted-Average Weighted-Average Grant-Date Grant-Date Grant-Date Fair Value Fair Value Fair Value RSAs (in thousands, except per share data) Shares Per Share Shares Per Share Shares Per Share Outstanding at January 1 4,638 $ 19.44 8,281 $ 18.88 7,253 $ 17.98 Granted 7 21.14 3 20.65 4,250 19.11 Released (2,063) 19.10 (3,090) 17.92 (2,580) 16.86 Forfeited (261) 19.75 (556) 19.20 (642) 18.64 Outstanding at December 31 2,321 $ 19.72 4,638 $ 19.44 8,281 $ 18.88 The following table summarizes outstanding RSAs by grant-date fair value at December 31, 2017: Outstanding RSAs Weighted-Average Remaining Contractual Life RSAs (in thousands) Shares (in years) $15.01-$20.00 1,627 0.9 Over $20.00 694 0.5 All RSAs 2,321 0.8 Restricted Stock Units The total grant-date fair value of RSUs that were released during the years ended December 31, 2017 , 2016 and 2015 was $ 21 million , $ 2 million and $ 2 million, respectively. At December 31, 2017 , there was $ 91 million of stock-based compensation expense related to outstanding RSUs not yet recognized. The expense is expected to be recognized over an estimated remaining weighted-average period at December 31, 2017 of 2.6 years. 2017 2016 2015 Weighted-Average Weighted-Average Weighted-Average Grant-Date Grant-Date Grant-Date Fair Value Fair Value Fair Value RSUs (in thousands, except per unit data) Units Per Unit Units Per Unit Units Per Unit Outstanding at January 1 5,086 $ 17.84 371 $ 19.56 - $ - Granted 3,652 26.71 5,029 17.75 377 19.58 Released (1,194) 17.64 (79) 19.76 (5) 21.63 Forfeited (558) 21.02 (235) 17.89 (1) 19.46 Outstanding at December 31 6,986 $ 22.25 5,086 $ 17.84 371 $ 19.56 The following table summarizes outstanding RSUs by grant-date fair value at December 31, 2017: Outstanding RSUs Weighted-Average Remaining Contractual Life RSUs (in thousands) Units (in years) $10.01-$15.00 407 0.6 $15.01-$20.00 2,973 1.2 $20.01-$25.00 228 1.0 $25.01-$30.00 3,360 1.7 $30.01-$35.00 18 2.0 All RSUs 6,986 1.4 Stock O ptions The grant-date fair value of stock option s is measured using the Black-Scholes option-pricing model. There were no stock options granted during the years ended December 31, 2017 , 2016 and 2015 . The total intrinsic value of stock options exercised was immaterial for both the years ended December 31, 2017 and 2016 and $ 1 million for the year ended December 31, 2015 . Cash received from stock options exercised was immaterial for the year ended December 31, 2017 and $ 1 million and $ 2 million for the years ended December 31, 2016 and 2015 , respectively. The ta x benefit realized from exercised stock options was immaterial to the Bancorp’s Consolidated Financial Statements during the years ended December 31, 2017 , 2016 and 2015 . All stock opti ons were vested as of December 31, 2008, therefore, no stock options vested during the years ended December 31, 2017 , 2016 or 2015 . As of December 31, 2017 , the aggregate intrinsic value of both outstanding stock options and exercisable stock options was immaterial . 2017 2016 2015 Weighted-Average Weighted-Average Weighted-Average Number of Exercise Price Number of Exercise Price Number of Exercise Price Stock Options (in thousands, except per share data) Options Per Share Options Per Share Options Per Share Outstanding at January 1 25 $ 19.17 119 $ 14.97 265 $ 14.25 Exercised (18) 14.05 (94) 13.86 (126) 13.67 Forfeited or expired (5) 40.98 - - (20) 13.59 Outstanding at December 31 2 $ 16.50 25 $ 19.17 119 $ 14.97 Exercisable at December 31 2 $ 16.50 25 $ 19.17 119 $ 14.97 The following table summarizes outstanding and exercisable stock options by exercise price per share at December 31, 2017: Number of Options Weighted-Average Weighted-Average Remaining Exercise Price Contractual Life Stock Options (in thousands, except per share data) Per Share (in years) Under $10.00 1 $ 8.59 1.0 $10.01-$20.00 - - - $20.01-$30.00 1 24.41 - All stock options 2 $ 16.50 0.5 Other Stock-Ba sed C ompensation PSAs are payable contingent upon the Bancorp achieving certain predefined performance targets over the three -year measurement period. Awards granted during the years ended December 31, 2017 , 2016 and 2015 will be entirely settled in stock. The performance targets are based on the Bancorp’s performance relative to a defined peer group. PSAs use a performance-based metric based on return on tangible common equity in relation to peers. During the years ended December 31, 2017 , 2016 and 2015 , 407,069 , 583,608 and 458,355 PSAs, respectively, were granted by the Bancorp. These awards were granted at a weighted-average grant-date fair value of $ 26.52 , $ 1 4.87 and $ 1 9.48 per unit during the years ended December 31, 2017 , 2016 and 2015 , respectively. The Bancorp sponsors a n employee stock purchase plan that allows qualifying employees to purchase shares of the Bancorp’s common stock with a 15 % match. During the years ended December 31, 2017 , 2016 and 2015 , there were 475,466 , 684,885 and 617,829 shares, respectively, purchased by participants and the Bancorp recognized stock-based compensation expense of $ 1 million in each of the respective year s . |
Other Noninterest Income and Ot
Other Noninterest Income and Other Noninterest Expense | 12 Months Ended |
Dec. 31, 2017 | |
Other Noninterest Income | |
Other Noninterest Income and Other Noninterest Expense | 25 . OTHER NONINTEREST INCOME AND OTHER NONINTEREST EXPENSE The following table presents the major components of other noninterest income and other noninterest expense for the years ended December 31: ($ in millions) 2017 2016 2015 Other noninterest income: Gain on sale of Vantiv, Inc. shares $ 1,037 - 331 Operating lease income 96 102 89 Cardholder fees 54 46 43 BOLI income 52 53 48 Equity method income from interest in Vantiv Holding, LLC 47 66 63 Income from the TRA associated with Vantiv, Inc. 44 313 80 Private equity investment income 36 11 28 Consumer loan and lease fees 23 23 23 Banking center income 20 20 21 Insurance income 8 11 14 Loss on swap associated with the sale of Visa, Inc. Class B Shares (80) (56) (37) Net (losses) gains on loan sales (2) 10 38 Gain on sale of certain retail branch operations - 19 - Gain on sale and exercise of the warrant associated with Vantiv Holding, LLC - 9 89 Valuation adjustments on the warrant associated with Vantiv Holding, LLC - 64 236 Net losses on disposition and impairment of bank premises and equipment - (13) (101) Other, net 22 10 14 Total other noninterest income $ 1,357 688 979 Other noninterest expense: Impairment on affordable housing investments $ 222 168 145 FDIC insurance and other taxes 127 126 99 Marketing 114 104 110 Loan and lease 102 110 118 Operating lease 87 86 74 Professional service fees 83 61 70 Losses and adjustments 59 73 55 Data processing 58 51 45 Travel 46 45 54 Postal and courier 42 46 45 Recruitment and education 35 37 33 Donations 28 23 29 Supplies 14 14 16 Insurance 12 15 17 Provision for the reserve for unfunded commitments - 23 4 Other, net 186 187 191 Total other noninterest expense $ 1,215 1,169 1,105 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share | |
Earnings Per Share | 26 . EARNINGS PER SHARE The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the years ended December 31: 2017 2016 2015 Average Per Share Average Per Share Average Per Share ($ in millions, except per share data) Income Shares Amount Income Shares Amount Income Shares Amount Earnings Per Share: Net income available to common shareholders 2,119 1,489 1,637 Less: Income allocated to participating securities 23 15 15 Net income allocated to common shareholders $ 2,096 728 2.88 1,474 757 1.95 1,622 799 2.03 Earnings Per Diluted Share: Net income available to common shareholders $ 2,119 1,489 1,637 Effect of dilutive securities: Stock-based awards - 13 - 7 - 9 Net income available to common shareholders 2,119 1,489 1,637 plus assumed conversions Less: Income allocated to participating securities 22 15 15 Net income allocated to common shareholders plus assumed conversions $ 2,097 741 2.83 1,474 764 1.93 1,622 808 2.01 Shares are excluded from the computation of earnings per diluted share when their inclusion has an anti-dilutive effect on earnings per share. The diluted earnings per share computation for the years ended December 31, 2017 , 2016 and 2015 excludes 4 million , 19 million and 16 million, respectively, of SAR s and an immaterial amount of stock options because their inclusion would have been anti-dilutive. The diluted earnings per share computation for the year ended December 31 , 2017 exclud es the impact of the forward contract related to the December 19, 2017 accelerated share repurchase transaction . B ased upon the average daily volume weighted - average price of the Bancorp’s common stock during the fourth quarter of 2017 , the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward contract as of December 31 , 2017 , and thus the impact of the forward contract related to the accelerated share repur chase transaction would have been anti-dilutive to earnings per share. The diluted earnings per share computation for the year ended December 31, 2016 excludes the impact of the forward contract related to the December 20, 2016 accelerated share rep urchase transaction . B ased upon the average daily volume weighted - average price of the Bancorp’s common stock during the fourth quarter of 2016 , the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward contract as of December 31, 2016 , and thus the impact of the forward contract related to the accelerated share repurchase transaction would have been anti-dilutive to earnings per share. The diluted e arnings per share computation for the year ended December 31, 2015 excludes the impact of the forward contract related to the December 14 , 2015 accelerated share repurchase transaction . B ase d upon the average daily volume weighted - average price of the Bancorp’s common stock during the fourth quarter of 2015 , the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward contract as of December 31, 2015 , an d thus the impact of the forward contract related to the accelerated share repurchase transaction would have been anti-dilutive to earnings per share. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements | |
Fair Value Measurements | 27 . FAIR VALUE MEASUREMENTS The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. For more information regarding the fair value hierarchy and how the Bancorp measures fair value, refer to Note 1 . Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables summarize assets and liabilities measured at fair value on a recurring basis as of: Fair Value Measurements Using December 31, 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 $ 98 - - 98 Obligations of states and political subdivisions securities - 44 - 44 Mortgage-backed securities: Agency residential mortgage-backed securities - 15,319 - 15,319 Agency commercial mortgage-backed securities - 10,167 - 10,167 Non-agency commercial mortgage-backed securities - 3,293 - 3,293 Asset-backed securities and other debt securities - 2,218 - 2,218 Equity securities (a) 68 1 - 69 Available-for-sale and other securities (a) 166 31,042 - 31,208 Trading securities: U.S. Treasury and federal agencies securities 1 11 - 12 Obligations of states and political subdivisions securities - 22 - 22 Mortgage-backed securities: Residential mortgage-backed securities - 395 - 395 Asset-backed securities and other debt securities - 63 - 63 Equity securities 370 - - 370 Trading securities 371 491 - 862 Residential mortgage loans held for sale - 399 - 399 Residential mortgage loans (b) - - 137 137 MSRs (f) - - 858 858 Derivative assets: Interest rate contracts 1 505 8 514 Foreign exchange contracts - 124 - 124 Equity contracts - 20 - 20 Commodity contracts 39 126 - 165 Derivative assets (d) 40 775 8 823 Total assets $ 577 32,707 1,003 34,287 Liabilities: Derivative liabilities: Interest rate contracts $ 1 172 5 178 Foreign exchange contracts - 120 - 120 Equity contracts - - 137 137 Commodity contracts 38 129 - 167 Derivative liabilities (e) 39 421 142 602 Short positions (e) 25 6 - 31 Total liabilities $ 64 427 142 633 Excludes FHLB, FRB and DTCC restricted stock holdings totaling $ 248 , $ 362 and $ 2 , respectively, at December 31, 2017 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . During the year ended December 31, 2017 , no assets or liabilities were transferred between Level 1 and Level 2 . Included in other assets in the Consolidated Balance Sheets. Included in other liabilities in the Consolidated Balance Sheets. Effective Ja nuary 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 December 31, 2017 and were measured under the amortization m ethod 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 Consolidated Balance Sheets. Included in other liabilities in the Consolidated Balance Sheet s. The following is a description of the valuation methodologies used for significant instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Available-for-sale and other securities and trading securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities and exchange- traded equities. If quo ted market prices are not available, then fair values are estimated using pricing models, quoted prices of securities with similar characteristics or DCFs . Level 2 securities include federal agencies securities, obligations of states and political subdivis ions securities, 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 bas ed on observable prices of securities with similar characteristics. Residential mortgage loans held for sale For residential mortgage loans held for sale for which the fair value election has been made , fair value is estimated based upon 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 portfol io composition includes the effect of interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. Residential mortgage loans held for sale th at are valued base d on mortgage- backed securities prices are classified within Level 2 of the valuation hierarchy as the valuation is based on external pricing for similar instruments. ARM loans classified as held for sale are also classified within Level 2 of the valuation hierarchy due to the use of observable inputs in the DCF model. These observable inputs include interest rate spreads from agency mortgage-backed securities market rates and observable discount rates. Residential mortgage loans Residential mortgage loan s 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 value s. For residential mortgage loans for which the fair value election has been made, and that are reclassified from held for sale to held for investment, the fair value estimation is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Therefore, these loans are classified within Level 3 of the valuation hierarchy. An adverse change in the loss rate or severity assumption would result in a decrease in fair value of the related loan. The Secondary Ma rketing d epartment, which reports to the Bancorp’s Head of the Consumer Bank , in conjunction with the Consumer Credit Risk d epartment, which reports to the Bancorp’s Chief Risk Officer, are responsible for determining the valuation methodology for resident ial mortgage loans held for inves tment. The Secondary Marketing d epartment reviews loss severity assumptions quarterly to determine if adjustments are necessary based on decreases in observable housing market data. This group also reviews trades in compara ble 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 l oss severities 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, primar ily prepayment speed assumptions, OAS and weighted-average lives, resulting in a classification within Level 3 of the valuation hierarchy. Refer to Note 12 for further information on the assumptions used in the valuation of the Bancorp’s MSRs. The Sec ondary Marketing department and Treasury department are responsible for determining the valuation methodology for MSRs. Representatives from Secondary Marketing, Treasury, Accounting and Risk Management are responsible for reviewing key assumptions used in the internal OAS model. Two external valuations of the MSR portfolio are obtained from third parties quarterly that use valuation models in order to assess the reasonableness of the internal OAS model. Additionally, the Bancorp participates in peer survey s that provide additional 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 models that incorporate current market interest rates, credit spreads assigned to the derivative counterparties and other market parameters and, therefore, are classified within Level 2 of the valuation hierarchy. Such derivatives include basic and structured interest rate , foreign exchange and commodity swaps and options. Derivatives that are valued based upon models with significant unobservable market parameters are classified within Level 3 of the valuation hierarchy . During the years ended December 31, 2017 and 2016 , derivatives classified as Level 3, which are valued using models containing unobservable inputs, consisted primarily of a total return swap associated with the Bancor p’s sale of Visa, Inc. Class B S hares. Level 3 derivatives also include IRLCs, which utilize internally generated loan closing rate assumptions as a significant unob servable 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 S hares. Additionally, the Bancorp will make a quarterly payment based on Visa’s stock price and the conversion rate of the Visa, Inc. Class B Shares into Class A Shares until the date on 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 estimate s in excess, or shortfall, of the Banco rp’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 the fair value of the derivative liability ; conversely , a decrease in the loss estimate or an ac celeration of the resolution of the Covered Litigation would result in a decrease in the fair valu e of the derivative liability. The Accounting and Treasury d epartments , both of which report to the Bancorp’s Chief Financial Officer, determined the valuatio n 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 asset fair value of the IRLCs at December 31, 2017 was $ 8 million. I mmediate decreases in current interest rates of 25 bp s and 50 bp s would result in increases in fair value of the IRLC s of approximately $ 3 million and $ 7 million, respectively. Immediate increases of current intere st rates of 25 bp s and 50 bp s would result in decreases in fair value of the IRLC s of approximately $ 4 million and $ 8 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 $ 2 million, re spectively, and the increase in fair value due to immediate 10% and 20% favorable changes in the assumed loan closing rates would be approximately $ 1 million and $ 2 million, respectively. These sensitivit ies are hypothetical and should be used with caution, as changes in fair value based on a variation in assumptions typically cannot be extrapolated because the relationship of the change in assumpti ons to the change in fair value may not be linear. The Co nsumer 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 Marketi ng, in conjuncti on with a third party valuation provider, periodically review loan closing rate assumptions and recent loan sales to determine if adjustments are needed for current market conditions not reflected in historical data. The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Mortgage Derivatives, Equity Total For the year ended December 31, 2017 ($ in millions) Loans MSRs (d) Net (a) Derivatives Fair Value Balance, beginning of period $ 143 744 8 (91) 804 Total (losses) gains (realized/unrealized): Included in earnings 1 (122) 94 (80) (107) Purchases/originations - 236 (2) - 234 Settlements (23) - (97) 34 (86) Transfers into Level 3 (b) 16 - - - 16 Balance, end of period $ 137 858 3 (137) 861 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2017 (c) $ 1 (122) 10 (80) (191) Net interest rate derivatives include derivative assets and liabilities of $ 8 and $ 5 , respectively, as of December 31, 2017 . Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. 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 servici ng rights were measured at fair value at December 31, 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 year ended December 31, 2016 ($ in millions) Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 167 12 201 380 Total gains (losses) (realized/unrealized): Included in earnings (2) 115 17 130 Purchases - (3) - (3) Sale and exercise of warrant - - (334) (334) Settlements (40) (116) 25 (131) Transfers into Level 3 (b) 18 - - 18 Balance, end of period $ 143 8 (91) 60 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2016 (c) $ (2) 13 (56) (45) Net interest rate derivatives include derivative assets and liabilities of $ 13 and $ 5 , respect ively, as of December 31, 2016 . Net equity derivatives include derivative assets and liabilities of $ 0 and $ 91 , respectively, as of December 31, 2016 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Mortgage Derivatives, Derivatives, Total For the year ended December 31, 2015 ($ in millions) Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 108 10 366 484 Total gains (realized/unrealized): Included in earnings - 111 288 399 Purchases - (2) - (2) Sales and exercise of warrant - - (477) (477) Settlements (28) (107) 24 (111) Transfers into Level 3 (b) 87 - - 87 Balance, end of period $ 167 12 201 380 The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2015 (c) $ - 17 66 83 Net interest rate derivatives include derivative assets and liabilities of $ 15 and $ 3 , respectively, as of December 31, 2015 . Net equity derivatives include derivative assets and liabilities of $ 262 and $ 61 , respectively, as of December 31, 2015 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Consolidated Statements of Income for the years ended December 31, 2017, 2016 and 2015 as follows: ($ in millions) 2017 2016 2015 Mortgage banking net revenue $ (29) 112 110 Corporate banking revenue 2 1 1 Other noninterest income (80) 17 288 Total (losses) gains $ (107) 130 399 The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at December 31, 2017, 2016 and 2015 were recorded in the Consolidated Statements of Income as follows: ($ in millions) 2017 2016 2015 Mortgage banking net revenue $ (113) 10 16 Corporate banking revenue 2 1 1 Other noninterest income (80) (56) 66 Total (losses) gains $ (191) (45) 83 The following tables present information as of December 31, 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 December 31, 2017 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted- Average Residential mortgage loans $ 137 Loss rate model Interest rate risk factor (10.6) - 14.5% 3.1% Credit risk factor 0 - 52.1% 1.4% MSRs 858 Discounted cash flow Prepayment speed 0 - 98.1% (Fixed) 11.4% (Adjustable) 24.6% OAS spread (bps) 450 - 1,515 (Fixed) 549 (Adjustable) 785 IRLCs, net 8 Discounted cash flow Loan closing rates 12.5 - 97.7% 71.8% Swap associated with the sale of Visa, Inc. (137) Discounted cash flow Timing of the resolution 12/31/2020 - 8/15/2021 Class B Shares of the Covered Litigation 12/31/2023 As of December 31, 2016 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted- Average Residential mortgage loans $ 143 Loss rate model Interest rate risk factor (11.5) - 13.8% 2.3% Credit risk factor 0 - 75.6% 1.4% IRLCs, net 12 Discounted cash flow Loan closing rates 23.8 - 99.5% 76.8% Swap associated with the sale of Visa, Inc. (91) Discounted cash flow Timing of the resolution 12/31/2018 - 8/24/2020 Class B Shares of the Covered Litigation 12/31/2022 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of December 31, 2017 and 2016 and for which a nonrecurring fair value adjustment was recorded during the years ended December 31, 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 As of December 31, 2017 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2017 Commercial loans held for sale $ - - 1 1 (33) Commercial and industrial loans - - 327 327 (99) Commercial mortgage loans - - 19 19 (12) Commercial leases - - 4 4 (6) OREO - - 27 27 (10) Bank premises and equipment - - 24 24 (6) Operating lease equipment - - 60 60 (42) Private equity investments - - 8 8 (1) Affordable housing investments - - 1,178 1,178 (68) Total $ - - 1,648 1,648 (277) Fair Value Measurements Using Total (Losses) Gains As of December 31, 2016 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2016 Commercial loans held for sale $ - - 5 5 (32) Commercial and industrial loans - - 412 412 (166) Commercial mortgage loans - - 15 15 (4) Commercial construction loans - - - - 2 Commercial leases - - 3 3 (3) MSRs (a) - - 744 744 7 OREO - - 42 42 (17) Bank premises and equipment - - 28 28 (31) Operating lease equipment - - 37 37 (9) Private equity investments 60 60 (9) Total $ - - 1,346 1,346 (262) The following tables present information as of December 31, 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 December 31, 2017 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 1 Appraised value Appraised value NM NM Costs to sell NM 10.0% Commercial and industrial loans 327 Appraised value Collateral value NM NM Commercial mortgage loans 19 Appraised value Collateral value NM NM Commercial leases 4 Appraised value Collateral value NM NM OREO 27 Appraised value Appraised value NM NM Bank premises and equipment 24 Appraised value Appraised value NM NM Operating lease equipment 60 Appraised value Appraised value NM NM Private equity investments 8 Liquidity discount applied Liquidity discount 2.5 - 15.0% 5.8% to fund's net asset value Affordable housing investments 1,178 Appraised value Appraised value NM NM As of December 31, 2016 ($ in millions) Significant Unobservable Ranges of Financial Instrument Fair Value Valuation Technique Inputs Inputs Weighted-Average Commercial loans held for sale $ 5 Appraised value Appraised value NM NM Commercial and industrial loans 412 Appraised value Collateral value NM NM Commercial mortgage loans 15 Appraised value Collateral value NM NM Commercial construction loans - Appraised value Collateral value NM NM Commercial leases 3 Appraised value Appraised value NM NM MSRs 744 Discounted cash flow Prepayment speed 0.7 - 100% (Fixed) 10.2% (Adjustable) 25.3% OAS spread (bps) 100 - 1,515 (Fixed) 654 (Adjustable) 738 OREO 42 Appraised value Appraised value NM NM Bank premises and equipment 28 Appraised value Appraised value NM NM Operating lease equipment 37 Appraised value Appraised value NM NM Private equity investments 60 Liquidity discount applied Liquidity discount 5.0 - 37.5% 12.8% to fund's net asset value Commercial loans held for sale During the years ended December 31, 2017 and 2016 , the Bancorp transferred $ 85 million and $ 140 million, respectively, of commercial loans from the portfolio to loans held for sale that upon transfer were measured at the lower of cost or fair value. These loans had fair value adjustments during the years ended December 31, 2017 and 2016 totaling $ 3 1 million and $ 30 million, respectively, and were generally based on appraisals of the underlying collateral and were, therefore, classified within Level 3 of the valuation hierarchy. Additionally, during the years ended December 31, 2017 and 2016 there were fair valu e adjustments on existing loans held for sale of an immaterial amount and $ 2 million, respectively. The fair value adjustments were also based on appraisals of the underlying collateral . The Bancorp recognized $ 2 million in losses on the sale of certain co mmercial loans held for sale during the year ended December 31, 2017 and an immaterial amount of net gains on the sale of certain commercial loans held for sale during the year ended December 31, 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 monthly review of the portfolio is performed for reasonableness. Qua rterly, appra isals 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 o f Business, review the third party appraisals for reasonableness. Additionally, the Co mmercial Line of Business Finance department, which reports to the Bancorp’s Chief Financial Officer, in conjunction with the Accounting department review s all loan appraisal values, carry values and vintages. Commercial loans and leases held for investment During the years ended December 31, 2017 and 2016 , the Bancorp recorded nonrecurring impairment adjustments to certain commercial and industrial l oans, commercial mortgage loans, commercial construction loans and commercial lease s 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 Bancorp considers the curr ent 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 fair value, an impair ment loss is recognized. The fair values and recognized impairment losses are reflected in the previous table s . Commercial Credit Risk, which reports to the Bancorp’s Chief Risk Officer, is responsible for preparing and reviewing the fair value estimates f or 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 Decem ber 31, 2017 and under the amortization method at December 31, 2016. Mortgage interest rates increased during the year ended December 31, 2016 and the Bancorp recognized a recovery of temporary impairment in certain classes of the MSR portfolio and the car rying value was adjusted to 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 years ended December 31, 2017 and 2016 , the Bancorp re corded 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 th e properties recorded in OREO. For the years ended December 31, 2017 and 2016 , these losses include $ 4 million and $ 8 million, respectively, recorded as charge-offs, on new OREO properties transferred from loans during the respective periods and $ 6 million and $ 9 million, respectively, recorded as negative fair value adjustments on OREO in other noninterest expense in the Consolidated Statements of Income subsequent to their transfer from loans. As discussed in the following paragraphs, the fair val ue amounts are generally based on appraisals of the property values, resulting in a classification within Level 3 of the valuation hierarchy. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. T he previous tables reflect the fair value measurements of the properties before deducting the estimated costs to sell. The Re al Estate Valuation department is solely responsible for managing the appraisal process and evaluating the appraisal for comme rcial properties transferred to OREO. All appraisals on commercial OREO properties are updated on at least an annual basis. The Real Estate Valuation department reviews the BPO data and internal market information to determine the initial charge-off on residential real estate loans transferred to OREO. Once the foreclosure process is completed, the Bancorp performs an interior inspection to update the initial fair value of the property. These properties are reviewed at least every 30 days after the in itial interior inspections are completed. The Asset Manager receives a monthly status report for each property which includes the number of showings, recently sold properties, current comparable listings and overall market conditions. Bank premises and e quipment 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. These properties were written down to their lower of cost or market val ues. At least annually thereafter, the Bancorp will review these properties for market fluctuations. The fair value amounts were generally based on appraisals of the property values, resulting in a classification within Level 3 of the valuation hierarchy. Corporate Facilities, which reports to the Bancorp’s Chief Administrative Officer, in conjunction with Accounting , are responsible for preparing and reviewing the fair value estimates for bank premises and equipment . For further information on bank premise s and equipment refer to Note 7 . Operating lease equipment During the years ended December 31, 2017 and 2016 , the Bancorp recorded nonrecurring impairment adjustments to certain operating lease equipment. When evaluating whether an individu al asset is impaired, the Bancorp considers the current fair value of the asset, the changes in overall market demand for the asset and the rate of change in advancements associated with technological improvements that impact the demand for the specific as set under review. As part of this ongoing assessment, the Bancorp determined that the carrying values of certain operating lease equipment were not recoverable and as a result, the Bancorp recorded an impairment loss equal to the amount by which the carryi ng value of the assets exceeded the fair value. The fair value amounts were generally based on appraised values of the assets, resulting in a classification within Level 3 of the valuation hierarchy. During the years ended December 31, 2017 and 2016 , the Bancorp recorded net losses of $ 42 million and $ 9 million, respectively, as a reduction to corporate banking revenue in the Consolidated Statements of Income. The Commercial Leasing department, which reports to the Bancorp’s Chief Operating Officer, i s responsible for preparing and r |
Regulatory Capital Requirements
Regulatory Capital Requirements and Capital Ratios | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements and Capital Ratios | |
Regulatory Capital Requirements and Capital Ratios | 28 . REGULATORY CAPITAL REQUIREMENTS AND CAPIT AL RATIOS The Board of Governors of the Federal Reserve System issued capital adequacy guidelines pursuant to which it assesses the adequacy of capital in examining and supervising a BHC and in analyzing applications to it under the BHCA of 1956, as amended. These guidelines include quantitative measures that assign risk weightings to assets and off-balance sheet items, as well as define and set minimum regulatory capital requirements . The regulatory capital requirements were revised by the Basel III Final Rule whic h was effective for the Bancorp on January 1, 2015, subject to phase-in periods for certain of its components and other provisions. It established quantitative measures defining mini mum regulatory capital requirements as well as the measure of “well-capitalized ” status. Additionally, the Board of Governors of the Federal Reserve System issued similar guidelines for minimum regulatory capital requirements and “well-capitalized” measur ements for banking subsidiaries. Quarterly average assets are a component of the Tier I leverage ratio and for this purpose do not include goodwill and any other intangible assets and other investments that the FRB determines should be deducted from Tier I capital. The following table presents capital and risk-based capital and leverage ratios for the Bancorp and its banking subsidiary at December 31: 2017 2016 ($ in millions) Amount Ratio Amount Ratio CET1 capital (to risk-weighted assets): Fifth Third Bancorp $ 12,517 10.61 % $ 12,426 10.39 % Fifth Third Bank 14,008 12.06 14,015 11.92 Tier I risk-based capital (to risk-weighted assets): Fifth Third Bancorp 13,848 11.74 13,756 11.50 Fifth Third Bank 14,008 12.06 14,015 11.92 Total risk-based capital (to risk-weighted assets): Fifth Third Bancorp 17,887 15.16 17,972 15.02 Fifth Third Bank 16,126 13.88 16,175 13.76 Tier I leverage (to quarterly average assets): Fifth Third Bancorp 13,848 10.01 13,756 9.90 Fifth Third Bank 14,008 10.32 14,015 10.30 |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Parent Company Financial Statements | |
Parent Company Financial Statements | 29 . PARENT COMPANY FINANCIAL STATEMENTS Condensed Statements of Income (Parent Company Only) For the years ended December 31 ($ in millions) 2017 2016 2015 Income Dividends from subsidiaries: Consolidated nonbank subsidiaries (a) $ 2,343 1,886 1,040 Interest on loans to subsidiaries 21 18 15 Total income 2,364 1,904 1,055 Expenses Interest 176 171 178 Other 42 18 22 Total expenses 218 189 200 Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries 2,146 1,715 855 Applicable income tax benefit 68 63 69 Income Before Change in Undistributed Earnings of Subsidiaries 2,214 1,778 924 Change in undistributed earnings (20) (214) 788 Net Income $ 2,194 1,564 1,712 Other Comprehensive Income - - - Comprehensive Income Attributable to Bancorp $ 2,194 1,564 1,712 (a) The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $2 .3 billion , $1.9 billion and $1.0 billion for the years ended December 31, 2017 , 2016 and 2015 , respectively . Condensed Balance Sheets (Parent Company Only) As of December 31 ($ in millions) 2017 2016 Assets Cash $ 80 130 Short-term investments 3,493 3,074 Loans to subsidiaries: Nonbank subsidiaries 843 969 Total loans to subsidiaries 843 969 Investment in subsidiaries: Nonbank subsidiaries 17,695 17,588 Total investment in subsidiaries 17,695 17,588 Goodwill 80 80 Other assets 329 366 Total Assets $ 22,520 22,207 Liabilities Other short-term borrowings $ 315 344 Accrued expenses and other liabilities 472 461 Long-term debt (external) 5,348 5,170 Total Liabilities $ 6,135 5,975 Equity Common stock $ 2,051 2,051 Preferred stock 1,331 1,331 Capital surplus 2,790 2,756 Retained earnings 15,122 13,441 Accumulated other comprehensive income 73 59 Treasury stock (5,002) (3,433) Noncontrolling interests 20 27 Total Equity 16,385 16,232 Total Liabilities and Equity $ 22,520 22,207 Condensed Statements of Cash Flows (Parent Company Only) For the years ended December 31 ($ in millions) 2017 2016 2015 Operating Activities Net income $ 2,194 1,564 1,712 Adjustments to reconcile net income to net cash provided by operating activities: Provision for (benefit from) deferred income taxes 2 - (4) Net change in undistributed earnings 20 214 (788) Net change in: Other assets 37 14 (18) Accrued expenses and other liabilities (15) (35) 31 Net Cash Provided by Operating Activities 2,238 1,757 933 Investing Activities Net change in: Short-term investments (419) 654 (539) Loans to subsidiaries 126 13 2 Net Cash (Used in) Provided by Investing Activities (293) 667 (537) Financing Activities Net change in other short-term borrowings (29) (60) (22) Dividends paid on common stock (430) (402) (422) Dividends paid on preferred stock (75) (52) (75) Proceeds from issuance of long-term debt 697 - 1,099 Repayment of long-term debt (500) (1,250) - Repurchase of treasury stock and related forward contract (1,605) (661) (850) Other, net (53) 3 2 Net Cash Used in Financing Activities (1,995) (2,422) (268) (Decrease) Increase in Cash (50) 2 128 Cash at Beginning of Period 130 128 - Cash at End of Period $ 80 130 128 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2017 | |
Business Segments | |
Business Segments | 30 . BUSIN ESS SEGMENTS The Bancorp reports on four business segments: Commercial Banking, Branch Banking, Consumer Lending and Wealth and Asset Management . Results of the Bancorp’s business segments are presented based on its management structure and management accounting practices. The structure and accounting practices are specific to the Bancorp; therefore, the financial results of the Bancorp’s business segments are not necessarily comparable with similar information for other financial 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 . B y employing a n FTP methodology, the business segments are insulated from most benchma rk 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 segment so its resulting net interest income is insulated f rom 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 rates and credit rates are determined using the FTP rate curve, which is based o n an estimate of Fifth Third’s marginal borrowing cost in the wholesal e funding markets. The FTP curve is constructed using the U.S. swap curve, brokered CD pricing and unsecured debt pricing. The Bancorp adjusts the FTP charge rates and credit rates as di ctated 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 estimated durations for indeterminate-lived de posits. Key assumptions, including t he credit rate s provided for deposit accounts, are reviewed annually. Credit rates for deposit products and charge rates for loan products may be reset more frequently in response to changes in market conditions. The cre dit rates for several deposit prod ucts 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 net 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 overall market rates increased, the FTP char ge increased for asset-generating business segments during 2017 . The Bancorp’s methodology for allocating provision for loan and lease losses expense to the business segments includes 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 each business segment. Provision for loan and lease losses expense attributable to loan and lease growth and changes in ALLL factors is captured in General Corp orate and Other. The financial results of the business segments include allocations for shared services and headquarters expenses. Additionally, the business segments form synergies by taking advantage of cross-sell opportunities and when funding operation s by accessing the capital markets as a collective unit. The following is a description of each of the Bancorp’s business s egments and the products and services they provide to their respective client bases. Commercial Banking offers credit intermediation , cash management and financial services to large and middle-market businesses and government and professional customers. In addition to the traditional lending and depository offerings, Commercial Banking products and services include global cash manageme nt, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing and syndicated finance. Branch Banking provides a full range of deposit and loan a nd lease products to individuals an d small businesses through 1,154 full-service b anking c enters. Branch Banking offers depository and loan products, such as checking and savings accounts, home equity loans and lines of credit, credit cards and loans for automobiles and other personal financing needs, as well as products designed to meet the specific needs of small businesses, including cash management services. Consumer Lending includes the Bancorp’s residential mortgage, home equity, autom obile and other indirect lending activities. Direct lending activities include the origination, retent ion and servicing of residential mortgage and home equity loans or lines of credit, sales and securitizations of those loans, pools of loans or lines of c redit, 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 individua ls, companies and not-for-profit organizations. Wealth and Asset Management is made up of five main businesses: FTS, an indirect wholly-owned subsidiary of the Bancorp; ClearArc Capital, Inc., an indirect wholly-o wned subsidiary of the Bancorp; Fifth Third Insurance Agency, 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 individu al clients and broker- dealer services to the institu tional marketplace. ClearArc Capital, Inc. provides asset management services. Fifth Third Insurance Agency, Inc. assists clients with their financial and risk management needs . Fifth Third Private Bank offers holistic strategies to affluent clients in wealth planning, investing, insurance and wealth protection. Fifth Third Institutional Services provid es advisory services for institutional clients including states and municipalities . The following tables present the results of operations and assets by business segment for the years ended December 31: Wealth General Commercial Branch Consumer and Asset Corporate 2017 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,652 1,782 240 154 (30) - 3,798 Provision for loan and lease losses 38 153 40 6 24 - 261 Net interest income after provision for loan and lease losses 1,614 1,629 200 148 (54) - 3,537 Total noninterest income 838 (c) 756 (b) 237 419 1,106 (132) (a) 3,224 Total noninterest expense 1,496 1,621 467 454 84 (132) 3,990 Income (loss) before income taxes 956 764 (30) 113 968 - 2,771 Applicable income tax expense (benefit) 150 270 (11) 39 129 - 577 Net income (loss) 806 494 (19) 74 839 - 2,194 Less: Net income attributable to noncontrolling interests - - - - - - - Net income (loss) attributable to Bancorp 806 494 (19) 74 839 - 2,194 Dividends on preferred stock - - - - 75 - 75 Net income (loss) available to common shareholders $ 806 494 (19) 74 764 - 2,119 Total goodwill $ 613 1,655 - 177 - - 2,445 Total assets $ 58,568 57,892 22,218 9,485 (5,970) (d) - 142,193 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Consolidated Statements of Income . Includes impairment charges of $ 7 for branches and land. For more information refer to Note 7 and Note 27 . Includes impairment charges of $ 52 for operating lease equipment. For more information refer to Note 8 and Note 27 . Includes bank premises and equipment of $ 27 classified as held for sale. For more information, refer to Note 7 . Wealth General Commercial Branch Consumer and Asset Corporate 2016 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,814 1,669 248 168 (284) - 3,615 Provision for loan and lease losses 76 138 44 1 84 - 343 Net interest income after provision for loan and lease losses 1,738 1,531 204 167 (368) - 3,272 Total noninterest income 907 (c) 755 (b) 303 399 463 (131) (a) 2,696 Total noninterest expense 1,426 1,621 475 422 90 (131) 3,903 Income before income taxes 1,219 665 32 144 5 - 2,065 Applicable income tax expense 224 234 12 51 (16) - 505 Net income 995 431 20 93 21 - 1,560 Less: Net income attributable to noncontrolling interests - - - - (4) - (4) Net income attributable to Bancorp 995 431 20 93 25 - 1,564 Dividends on preferred stock - - - - 75 - 75 Net income available to common shareholders $ 995 431 20 93 (50) - 1,489 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 58,092 55,940 22,041 9,487 (3,383) (d) - 142,177 Reve nue sharing agreements between wealth and asset management and b ranch b anking are eliminated in the Consolidated Statements of Income. Includes impairment charges of $ 32 for branches and land. For more information refer to Note 7 and Note 27 . Includes impairment charges of $ 20 for operating lease equipment. For more information, refer to Note 8 and Note 27 . Includes bank premises and equipment of $ 39 classified as held for sale. For more information, refer to Note 7 . Wealth General Commercial Branch Consumer and Asset Corporate 2015 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,625 1,555 249 128 (24) - 3,533 Provision for loan and lease losses 298 151 44 3 (100) - 396 Net interest income after provision for loan and lease losses 1,327 1,404 205 125 76 - 3,137 Total noninterest income 853 (c) 652 (b) 407 418 822 (149) (a) 3,003 Total noninterest expense 1,369 1,598 440 455 62 (149) 3,775 Income before income taxes 811 458 172 88 836 - 2,365 Applicable income tax expense 93 161 61 30 314 - 659 Net income 718 297 111 58 522 - 1,706 Less: Net income attributable to noncontrolling interests - - - - (6) - (6) Net income attributable to Bancorp 718 297 111 58 528 - 1,712 Dividends on preferred stock - - - - 75 - 75 Net income available to common shareholders $ 718 297 111 58 453 - 1,637 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 58,105 53,609 22,656 9,939 (3,261) (d) - 141,048 Revenue sharing agreements between wealth and asset management and b ranch b anking are eliminated in the Consolidated Statements of Income. Includes impairment charges of $ 109 for branches and land. For more information refer to Note 7 . Includes impairment charges of $ 36 for operating lease equipment. For more information, refer to Note 8 . Includes bank premises and equipment of $ 81 classified as held for sale . |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | On January 16, 2018, Vantiv, Inc. completed its previously announced acquisition of Worldpay Group plc. with the resulting c ombined company named Worldpay, Inc. As a result of thi s transaction, the Bancorp expects to recognize a gain of approximately $ 415 million in other noninterest income in the Bancorp’s first quarter of 2018 Quarterly Report on Form 10-Q for the dilution in its ownership interest in Vantiv Holding, LLC from approximately 8.6% to approximately 4.9%. The Bancorp’s remaining interest in Vantiv Holding, LLC continues to be accounted for as an equity method in vestment given the nature of Vantiv Holding, LLC’s structure as a limited liability company and contractual arrangements between Vantiv Holding, LLC and the Bancorp. On February 8 , 2018 the Bancorp entered into an accelerated share repurchase transaction with a counterparty pursuan t to which the Bancorp paid $ 318 million on February 12, 2018 to repurchase shares of its outstanding common stock. The Bancorp is repurc hasing the shares of its common stock as part of its Board approved 100 million share repurchase program previously announced on March 1 5 , 2016. The Ba ncorp expects the settlement of the transaction to occur on or before May 14, 2018. |
Summary of Significant Accoun40
Summary of Significant Accounting and Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting and Reporting Policies | |
Nature of Operations | Nature of Operations Fifth Third Bancorp, an Ohio corporation, conducts its principal lending, deposit gathering, transaction processing and service advisory activities through its banking and non-banking subsidiaries from banking centers located throughout the Midwestern and Southeastern regions of the United States. |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements include the accounts of the Bancorp and its majority-owned subsidiaries and VIEs in which the Bancorp has been determined to be the primary beneficiary. Other entities, including certain joint ventures, in which the Bancorp has the ability to exercise significant influence over operating and financial policies of the investee, but upon which the Bancorp does not possess control, are accounted for by the e quity method of accounting and not consolidated. The investments in those entities in which the Bancorp does not have the ability to exercise significant influence are generally carried at the lower of cost or fair value. Intercompany transactions and bala nces among consolidated entities have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Due from Banks | Cash and Due From Banks Cash and due from banks consist of currency and coin, cash items in the process of collection and due from banks. Currency and coin includes both U.S. and f oreign currency owned and held at Fifth Third offices and that is in-transit to the FRB. Cash items in the process of collection include checks and drafts that are drawn on another depository institution or the FRB that are payable immediately upon present ation in the U.S. Balances due from banks include noninterest-bearing balances that are funds on deposit at other depository institutions or the FRB. |
Securities | Securities Securities are classified as held-to-maturity, available-for-sale or trading on the date of pu rchase. Only those securities which management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. Securities are classified as available-for-sale when, in management’s judgment, they may be sol d in response to, or in anticipation of, changes in market conditions. Securities are classified as trading when bought and held principally for the purpose of selling them in the near term. Available-for-sale securities are reported at fair value with unr ealized gains and losses, net of related deferred income taxes, included in OCI. Trading securities are reported at fair value with unrealized gains and losses included in noninterest income. The fair value of a security is determined based on quoted marke t prices. If quoted market prices are not available, fair value is determined based on quoted prices of similar instruments or DCF models that incorporate market inputs and assumptions including discount rates, prepayment speeds and loss rates. Realized se curities gains or losses are reported within noninterest income in the Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. Available-for-sale and held-to-maturity securities with unrealized losses are reviewed quarterly for possible OTTI. For debt securities, if the Bancorp intends to sell the debt security or will more likely than not be required to sell the debt security before recovery of the entire amortized cost basis, then an OTTI has occurred . However, even if the Bancorp does not intend to sell the debt security and will not likely be required to sell the debt security before recovery of its entire amortized cost basis, the Bancorp must evaluate expected cash flows to be received and determin e if a credit loss has occurred. In the event of a credit loss, the credit component of the impairment is recognized within noninterest income and the non-credit component is recognized through OCI. For equity securities, the Bancorp’s management evaluates the securities in an unrealized loss position in the available-for-sale portfolio for OTTI on the basis of the duration of the decline in value of the security and severity of that decline as well as the Bancorp’s intent and ability to hold these securiti es for a period of time sufficient to allow for any anticipated recovery in the market value. If it is determined that the impairment on an equity security is other-than-temporary, an impairment loss equal to the difference between the amortized cost of th e security and its fair value is recognized within noninterest income. |
Basis of Presentation for Portfolio Loans and Leases | Basis of a ccounting Portfolio loans and leases are generally reported at the principal amount outstanding, net of unearned income, deferred direct loan origination fees and costs and any direct principal charge-offs. Direct loan origination fees and costs are deferred and the net amount is amortized over the estimated life of the related loans as a yield adjustment. Interest income is recognized based on the principal balance outstanding computed using the effective interest method. Loans acquired by the Bancorp through a purchase business combination are recorded at fair value as of the acquisition date. The Bancorp does not carry over the acquired compan y’s ALLL, nor does the Bancorp add to its existing ALLL as part of purchase accounting. Purchased loans are evaluated for evidence of credit deterioration at acquisition and recorded at their initial fair value. For loans acquired with no evidence of credi t deterioration, the fair value discount or premium is amortized over the contractual life of the loan as an adjustment to yield. For loans acquired with evidence of credit deterioration, the Bancorp determines at the acquisition date the excess of the loa n’s contractually required payments over all cash flows expected to be collected as an amount that should not be accreted into interest income (nonaccretable difference). The remaining amount representing the difference in the expected cash flows of acquir ed loans and the initial investment in the acquired loans is accreted into interest income over the remaining life of the loan or pool of loans (accretable yield). Subsequent to the acquisition date, increases in expected cash flows over those expected at the acquisition date are recognized prospectively as interest income over the remaining life of the loan. The present value of any decreases in expected cash flows resulting directly from a change in the contractual interest rate are recognized prospective ly as a reduction of the accretable yield. The present value of any decreases in expected cash flows after the acquisition date as a result of credit deterioration is recognized by recording an ALLL or a direct charge-off. Subsequent to the acquisition dat e, the methods utilized to estimate the required ALLL are similar to originated loans. This method of accounting for loans acquired with deteriorated cr edit quality does not apply to loans carried at fair value, residential mortgage loans held for sale and loans un der revolving credit agreements. The Bancorp’s lease portfolio consists of both direct financing and leveraged leases. Direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, les s unearned income. Interest income on direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Leveraged leases are carried at the aggregate of lease payments (less nonrec ourse debt payments) plus estimated residual value of the leased property, less unearned income. Interest income on leveraged leases is recognized over the term of the lease to achieve a constant rate of return on the outstanding investment in the lease, n et of the related deferred income tax liability, in the years in which the net investment is positive. |
Nonaccrual Loans | Nonaccrual loans and l eases When a loan is placed on nonaccrual status, the accrual of interest, amortization of loan premium, accretion of loan discount and amortization/accretion of deferred net direct loan origination fees or costs are discontinued and all previously accrued and u npaid interest is charged against income. Commercial loans are placed on nonaccrual status when there is a clear indication that the borrower’s cash flows may not be sufficient to meet payments as they become due. Such loans are also placed on nonaccrual s tatus when the principal or interest is past due 90 days or more, unless the loan is both well-secured and in the process of collection. The Bancorp classifies residential mortgage loans that have principal and interest payments that have become past due 1 50 days as nonaccrual unless the loan is both well-secured and in the process of collection. Residential mortgage loans may stay on non accrual status for an extended time as the foreclosure process typically lasts longer than 180 days. Home equity loans an d lines of credit are reported on nonaccrual status if principal or interest has been in default for 90 days or more unless the loan is both well-secured and in the process of collection. Home equity loans and lines of credit that have been in default for 60 days or more are also reported on nonaccrual status if the senior lien has been in default 120 days or more, unless the loan is both well secured and in the process of collection. Residential mortgage, home equity, automobile and other consumer loans an d leases that have been modified in a TDR and subsequently become past due 90 days are placed on nonaccrual status unless the loan is both well-secured and in the process of collection. Commercial and credit card loans that have been modified in a TDR are classified as nonaccrual unless such loans have sustained repayment performance of six months or more and are reasonably assured of repayment in accordance with the restructured terms. Well-secured loans are collateralized by perfected security interests i n real and/or personal property for which the Bancorp estimates proceeds from the sale would be sufficient to recover the outstanding principal and accrued interest balance of the loan and pay all costs to sell the collateral. The Bancorp considers a loan in the process of collection if collection efforts or legal action is proceeding and the Bancorp expects to collect funds sufficient to bring the loan current or recover the entire outstanding principal and accrued interest balance. Nonaccrual commercial l oans and nonaccrual credit card loans are generally accounted for on the cost recovery method. The Bancorp believes the cost recovery method is appropriate for nonaccrual commercial loans and nonaccrual credit card loans because the assessment of collectab ility of the remaining recorded investment of these loans involves a high degree of subjectivity and uncertainty due to the nature or absence of underlying collateral. Under the cost recovery method, any payments received are applied to reduce principal. O nce the entire recorded investment is collected, additional payments received are treated as recoveries of amounts previously charged-off until recovered in full, and any subsequent payments are treated as interest income. Nonaccrual residential mortgage l oans and other nonaccrual consumer loans are generally accounted for on the cash basis method. The Bancorp believes the cash basis method is appropriate for nonaccrual residential mortgage and other nonaccrual consumer loans because such loans have general ly been written down to estimated collateral values and the collectability of the remaining investment involves only an assessment of the fair value of the underlying collateral, which can be measured more objectively with a lesser degree of uncertainty th an assessments of typical commercial loan collateral. Under the cash basis method, interest income is recognized when cash is received, to the extent such income would have been accrued on the loan’s remaining balance at the contractual rate. Nonaccrual lo ans may be returned to accrual status when all delinquent interest and principal payments become current in accordance with the loan agreement and are reasonably assured of repayment in accordance with the contractual terms of the loan agreement, or when t he loan is both well-secured and in the process of collection. Commercial loans on nonaccrual status, including those modified in a TDR, as well as criticized commercial loans with aggregate borrower relationships exceeding $1 million, are subject to an in dividual review to identify charge-offs. The Bancorp does not have an established delinquency threshold for partially or fully charging off commercial loans. Residential mortgage loans, home equity loans and lines of credit and credit card loans that have principal and interest payments that have become past due 180 days are assessed for a charge-off to the ALLL, unless such loans are both well-secured and in the process of collection. Home equity loans and lines of credit are also assessed for charge-off t o the ALLL when such loans or lines of credit have become past due 120 days if the senior lien is also 120 days past due, unless such loans are both well-secured and in the process of collection. Automobile and other consumer loans and leases that have pri ncipal and interest payments that have become past due 120 days are assessed for a charge-off to the ALLL, unless such loans are both well-secured and in the process of collection. |
Restructured Loans | Restructured loans and l eases A loan is accounted for as a TDR if the Banc orp, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. A TDR typically involves a modification of terms such as a reduction of the stated interest rate or remaining principal amount of the loan, a reduction of accrued interest or an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk. In 2012, the OCC, a national bank regulatory agen cy, issued interpretive guidance that requires non-reaffirmed loans included in Chapter 7 bankruptcy filings to be accounted for as nonperforming TDRs and collateral dependent loans regardless of their payment history and capacity to pay in the future. The Bancorp’s banking subsidiary is a state chartered bank which therefore is not subject to guidance of the OCC. The Bancorp does not consider the bankruptcy court’s discharge of the borrower’s debt a concession when the discharged debt is not reaffirmed and as such, these loans are classified as TDRs only if one or more of the previously mentioned concessions are granted. The Bancorp measures the impairment loss of a TDR based on the difference between the original loan’s carrying amount and the present valu e of expected future cash flows discounted at the original, effective yield of the loan. Residential mortgage loans, home equity loans, automobile loans and other consumer loans modified as part of a TDR are maintained on accrual status, provided there is reasonable assurance of repayment and of performance according to the modified terms based upon a current, well-documented credit evaluation. Commercial loans and credit card loans modified as part of a TDR are maintained on accrual status provided there i s a sustained payment history of six months or more prior to the modification in accordance with the modified terms and collectability is reasonably assured for all remaining contractual pa yments under the modified terms . TDRs of commercial loans and credi t cards that do not have a sustained payment history of six months or more in accordance with their modified terms remain on nonaccrual status until a six month payment history is sustained. In certain cases, commercial TDRs on nonaccrual status may be acc ounted for using the cash basis method for income recognition, provided that full repayment of principal under the modified terms of the loan is reasonably assured. |
Impaired Loans | Impaired loans and l eases A loan is considered to be impaired when, based on current infor mation and events, it is probable that the Bancorp will be unable to collect all amounts due (including both principal and interest) according to the contractual terms of the loan agreement. Impaired loans generally consist of nonaccrual loans and leases, loans modified in a TDR and loans over $ 1 million that are currently on accrual status and not yet modified in a TDR, but for which the Bancorp has determined that it is probable that it will grant a payment concession in the near term due to the borrower’ s financial difficulties. For loans modified in a TDR, the contractual terms of the loan agreement refer to the terms specified in the original loan agreement. A loan restructured in a TDR is no longer considered impaired in years after the restructuring i f the restructuring agreement specifies a rate equal to or greater than the rate the Bancorp was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan is not impaired based on the terms specified by the restruc turing agreement. Refer to the ALLL section for discussion regarding the Bancorp’s methodology for identifying impaired loans and determination of the need for a loss accrual. |
Loans Held for Sale | Loans and Leases Held for Sale Loans and leases held for sale primarily represent conforming fixed-rate residential mortgage loans originated or acquired with the intent to sell in the secondary market and jumbo residential mortgage loans, commercial loans, other residential mortgage loans and other consumer loans that managem ent has the intent to sell. Loans and leases held for sale may be carried at the lower of cost or fair value, or carried at fair value where the Bancorp has elected the fair value option of accounting under U.S. GAAP. The Bancorp has elected to measure cer tain groups of loans held for sale under the fair value option, including certain residential mortgage loans originated as held for sale and certain purchased commercial loans designated as held for sale at acquisition . For loans in which the Bancorp has n ot elected the fair value option, the lower of cost or fair value is determined at the individual loan level. The fair value of residential mortgage loans held for sale for which the fair value election has been made is estimated based upon mortgage-backed securities prices and spreads to 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 portfo lio composition includes the effects 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. These fair value marks are recorded as a component of nonin terest income in mortgage banking net revenue. The Bancorp generally has commitments to sell residential mortgage loans held for sale in the secondary market. Gains or losses on sales are recognized in mortgage banking net revenue. Management’s intent to s ell residential mortgage loans classified as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be recla ssified to loans held for investment and, thereafter, reported within the Bancorp’s residential mortgage class of portfolio loans and leases. In such cases, the residential mortgage loans will continue to be measured at fair value, which is based on mortga ge-backed securities prices, interest rate risk and an internally developed credit component. Loans and leases held for sale are placed on nonaccrual status consistent with the Bancorp’s nonaccrual policy for portfolio loans and leases. |
Other Real Estate Owned | Other Real Estate Owned OREO, which is included in other assets, represents property acquired through foreclosure or other proceedings and is carried at the lower of cost or fair value, less costs to sell. All OREO property is periodically evaluated for impairment and decre ases in carrying value are recognized as reductions in other noninterest income in the Consolidated Statements of Income. For government-guaranteed mortgage loans, upon foreclosure, a separate other receivable is recognized if certain conditions are met fo r the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. This receivable is also included in other assets, separate from OREO, in the Consolidated Balance Sheets. |
Allowance for Loans and Leases | ALLL The Bancorp disaggregates its portfolio l oans and leases into portfolio segments for purposes of determining the ALLL. The Bancorp’s portfolio segments include commercial, residential mortgage and consumer. The Bancorp further disaggregates its portfolio segments into classes for purposes of moni toring and assessing credit quality based on certain risk characteristics. Classes within the commercial portfolio segment include commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leasing. The residential mortgage portfolio segment is also considered a class. Classes within the consumer portfolio segment include home equity, automobile, credit card and other consumer loans and leases. For an analysis of the Bancorp’s ALLL by portfolio segment and credit quality information by class, refer to Note 6 . The Bancorp maintains the ALLL to absorb probable loan and lease losses inherent in its portfolio segments. The ALLL is maintained at a level the Bancorp considers to be adequate and is based on ongoing quarterly assessments and evaluations of the collectability and historical loss experience of loans and leases. Credit losses are charged and recoveries are credited to the ALLL. Provisions for loan and lease losses are based on the Bancorp’s review of the historical credit loss experience and such factors that, in management’s judgment, deserve consideration under existing economic conditions in estimating probable credit losses. The Bancorp’s strategy for credit risk ma nagement includes a combination of conservative exposure limits significantly below legal lending limits and conservative underwriting, documentation and collections standards. The strategy also emphasizes diversification on a geographic, industry and cust omer level, regular credit examinations and quarterly management reviews of large credit exposures and loans experiencing deterioration of credit quality. The Bancorp’s methodology for determining the ALLL is based on historical loss rates, current credit grades, specific allocation on loans modified in a TDR and impaired commercial credits above specified thresholds and other qualitative adjustments. Allowances on individual commercial loans, TDRs and historical loss rates are reviewed quarterly and adjust ed as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off experience. An unallocated allowance is maintained to recognize the imprecision in estimating and measuring losses when evaluating allowances for p ools of loans. Larger commercial loans included within aggregate borrower relationship balances exceeding $ 1 million that exhibit probable or observed credit weaknesses, as well as loans that have been modified in a TDR, are subject to individual review for impairment. The Bancorp considers the current 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 individua l loan is impaired. Other factors may include the industry and geographic region of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower and the Bancorp’s evaluation of the borrower’s management. When individua l loans are impaired, allowances are determined based on management’s estimate of the borrower’s ability to repay the loan given the availability of collateral and other sources of cash flow, as well as an evaluation of legal options available to the Banco rp. Allowances for impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, fair value of the underlying collateral or readily observable secondary market values. The Bancorp eva luates the collectability of both principal and interest when assessing the need for a loss accrual. Historical credit loss rates are applied to commercial loans that are not impaired or are impaired, but smaller than the established threshold of $ 1 millio n and thus not subject to specific allowance allocations. The loss rates are derived from migration analyses for several portfolio stratifications, which track the historical net charge-off experience sustained on loans according to their internal risk gra de. The risk grading system utilized for allowance analysis purposes encompasses ten categories. Homogenous loans and leases in the residential mortgage and consumer portfolio segments are not individually risk graded. Rather, standard credit scoring syst ems and delinquency monitoring are used to assess credit risks and allowances are established based on the expected net charge-offs. Loss rates are based on the trailing twelve month net charge-off history by loan category. Historical loss rates may be adj usted for certain prescriptive and qualitative factors that, in management’s judgment, are necessary to reflect losses inherent in the portfolio. The prescriptive loss rate factors include adjustments for delinquency trends, LTV trends and refreshed FICO s core trends. The Bancorp also considers qualitative factors in determining the ALLL. These include adjustments for changes in policies or procedures in underwriting, monitoring or collections, economic conditions, portfolio mix, lending and risk management personnel, results of internal audit and quality control reviews, collateral values and geographic concentrations. The Bancorp considers home price index trends when determining the collateral value qualitative factor. The Bancorp’s primary market areas for lending are the Midw estern and Southeastern regions of the U .S. When evaluating the adequacy of allowances, consideration is given to these regional geographic concentrations and the closely associated effect changing economic conditions have on the Ba ncorp’s customers. In the current year, the Bancorp has not substantively changed any material aspect to its overall approach to determining its ALLL for any of its portfolio segments. There have been no material changes in criteria or estimation technique s as compared to prior periods that impacted the determination of the current period ALLL for any of the Bancorp’s portfolio segments. |
Reserve for Unfunded Commitments | Reserve for Unfunded Commitments The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in other liabilities in the Consolidated Balance Sheets. The determination of the adequacy of the reserve is based upon an evaluation of the unfunded c redit facilities, including an assessment of historical commitment utilization experience, credit risk grading and historical loss rates based on credit grade migration. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the Bancorp’s ALLL, as previously discussed. Net adjustments to the reserve for unfunded commitments are included in other noninterest expense in the Consolidated Statements of Income. |
Loan Sales and Securitizations | Loan Sales and Securitizations The Bancorp periodically sells loans through either securitizations or individual loan sales in accordance with its investment policies. The sold loans are removed from the Consolidated Balance S heet and a net gain or loss is recognized in the Consolidated Financial Statements at the time of sale. The Bancorp typically isolates the loans through the use of a VIE and thus is required to assess whether the entity holding the sold or securitized loans is a VIE and whether the Bancorp is the primary beneficiary and therefore consolidator of that VIE. If the Bancorp holds the power to direct activities most significant to the economic performance of the VIE and has the obligation to absorb losses or right to receive benefits that could potentially be significant to the VIE, then the Bancorp will generally be deemed the primary beneficiary of the VIE. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for under t he equity method of accounting or other accounting standards as appropriate. Refer to Note 11 for further information on consolidated and non-consolidated VIEs. The Bancorp’s loan sales and securitizations are generally structured with servicing r etaine d, which often results in the recording of servicing rights. The Bancorp may also purchase servicing rights. Effective January 1, 2017, the Bancorp elected to prospectively adopt the fair value method for all existing classes of its residential mortgage se rvicing 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 Consolidated Statements of Income in the period in which the changes occur. The election of the fair value method did not require 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. Servicing rights are valued using internal OAS models. Key economic assumptions used in estimating the fair value of the servicing rights include the prepayment speeds of the underlying loans, the weighted-average life, the OAS spread and t he weighted-average coupon rate, as applicable. The primary risk of material changes to the value of the servicing rights resides in the potential volatility in the economic assumptions used, particularly the prepayment speeds. In order to assist in the as sessment of the fair value of servicing rights, the Bancorp obtains external valuations of the servicing rights portfolio from third parties and participates in peer surveys that provide additional confirmation of the reasonableness of the key assumptions utilized in the internal OAS model. 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 right s were tested for impairment monthly, based on fair value, with temporary impairment recognized through a valuation allowance and other-than-temporary impairment recognized through a write-off of the servicing asset and related valuation allowance. Amortiz ation and provisions for impairment of servicing rights were recorded as a component of mortgage banking net revenue in the Consolidated Statements of Income. Fees received for servicing loans owned by investors are based on a percentage of the outstandin g monthly principal balance of such loans and are included in noninterest income in the Consolidated Statements of Income as loan payments are received. Costs of servicing loans are charged to expense as incurred. |
Reserve For Representation And Warranty Provisions | Reserve for Representation and Warranty P rovisions Conforming residential mortgage loans sold to unrelated third parties are 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 gen eral, only when a loss results from the breach. The Bancorp may be required to repurchase any previously sold loan or indemnify (make whole) the investor or insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading. The Bancorp establishes a residential mortgage repurchase reserve related to various representations and warranties that reflects management’s estimate of losses based on a combination of factors. The Bancorp’s estimation process requires m anagement to make subjective and complex judgments about matters that are inherently uncertain, such as future demand expectations, economic factors and the specific characteristics of the loans subject to repurchase. Such factors incorporate historical in vestor audit and repurchase demand rates, appeals success rates, historical loss severity and any additional information obtained from the GSEs regarding future mortgage repurchase and file request criteria. At the time of a loan sale, the Bancorp records a representation and warranty reserve at the estimated fair value of the Bancorp’s guarantee and continually updates the reserve during the life of the loan as losses in excess of the reserve become probable and reasonably estimable. The provision for the estimated fair value of the representation and warranty guarantee arising from the loan sales is recorded as an adjustment to the gain on sale, which is included in other noninterest income at the time of sale. Updates to the reserve ar e recorded in other noninterest expense. |
Legal Contingencies | Legal Contingencies The Bancorp and its subsidiaries are parties to numerous claims and lawsuits as well as 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 predict and significant judgment may be required in the determination of both the probability of loss and whether the amount of the loss is reasonably estimable. The Bancorp’s estimates are subjective and are based on the status of legal and regulatory proceedings, the merit of the Bancorp’s defenses and consultation with internal and e xternal legal counsel. An accrual for a potential litigation loss is established when information related to the loss contingency indicates both that a loss is probable and that the amount of loss can be reasonably estimated. This accrual is included in ot her liabilities in the Consolidated Balance Sheets and is adjusted from time to time as appropriate to reflect changes in circumstances. Legal expenses are recorded in other noninterest expense in the Consolidated Statements of Income. |
Bank Premises and Equipment | Bank Premises and Equipment and Other Long-Lived Assets Bank premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method based on estimated useful liv es of the assets for book purposes, while accelerated depreciation is used for income tax purposes. Amortization of leasehold improvements is computed using the straight-line method over the lives of the related leases or useful lives of the related assets , whichever is shorter. Whenever events or changes in circumstances dictate, the Bancorp tests its long-lived assets for impairment by determining whether the sum of the estimated undiscounted future cash flows attributable to a long-lived asset or asset g roup is less than the carrying amount of the long-lived asset or asset group through a probability-weighted approach. In the event the carrying amount of the long-lived asset or asset group is not recoverable, an impairment loss is measured as the amount b y which the carrying amount of the long-lived asset or asset group exceeds its fair value. Maintenance, repairs and minor improvements are charged to noninterest expense in the Conso lidated Statements of Income as incurred. |
Derivative Financial Instruments | Derivative Financial Instrument s The Bancorp accounts for its derivatives as either assets or liabilities measured at fair value through adjustments to AOCI and/or current earnings, as appropriate. On the date the Bancorp enters into a derivative contract, the Bancorp designates the der ivative instrument as either a fair value hedge, cash flow hedge or as a free-standing derivative instrument. For a fair value hedge, changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attr ibutable to the hedged risk are recorded in current period net income. For a cash flow hedge, changes in the fair value of the derivative instrument, to the extent that it is effective, are recorded in AOCI and subsequently reclassified to net income in th e same period(s) that the hedged transaction impacts net income. For free-standing derivative instruments, changes in fair values are reported in current period net income. Prior to entering into a hedge transaction, the Bancorp formally documents the rela tionship between the hedging instrument and the hedged item, as well as the risk management objective and strategy for undertaking the hedge transaction. This process includes linking the derivative instrument designated as a fair value or cash flow hedge to a specific asset or liability on the balance sheet or to specific forecasted transactions and the risk being hedged, along with a formal assessment at both inception of the hedge and on an ongoing basis as to the effectiveness of the derivative instrume nt in offsetting changes in fair values or cash flows of the hedged item. If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued. |
Tax Receivable Agreement Policy [Policy Text Block] | Tax Receivable Agreements In conjunction with Vantiv, Inc.’s IPO in 2012, the Bancorp entered into two TRAs with Vantiv, Inc. The TRAs provide for payments by Vantiv, Inc. to the Bancorp of 85% of the cash savings actually realized as a result of the increase in tax basis that results from the h istorical or future purchase of equity in Vantiv Holding, LLC from the Bancorp or from the exchange of equity units in Vantiv Holding, LLC for cash or Class A Stock, as well as any tax benefits attributable to payments made under the TRA. Any actual increa se in tax basis, as well as the amount and timing of any payments made under the TRA depend on a number of uncertain factors, the most significant of which is the realization of the tax benefits by Vantiv, Inc., which depends on the amount and timing of Va ntiv, Inc.’s reportable taxable income. The Bancorp accounts for these TRAs as gain contingencies and recognizes income when all uncertainties surrounding the realization of such amounts are resolved. |
Income Taxes | Income Taxes The Bancorp accounts for income taxes usi ng the asset and liability method, which requires the recognition of deferred tax assets and liabilities for expected future tax consequences. Under the asset and liability method, deferred tax assets and liabilities are determined by applying the federal and state tax rates to the differences between financial statement carrying amounts and the corresponding tax bases of assets and liabilities. Deferred tax assets are also recorded for any tax attributes, such as tax credits and net operating loss carryfor wards. The net balances of deferred tax assets and liabilities are reported in other assets and accrued taxes, interest and expenses in the Consolidated Balance Sheets. Any effect of a change in federal or state tax rates on deferred tax assets and liabili ties is recognized in income tax expense in the period that includes the enactment date. The Bancorp reflects the expected amount of income tax to be paid or refunded during the year as current income tax expense or benefit. Accrued taxes represent the net expected amount due to and/or from taxing jurisdictions and are reported in accrued taxes , interest and expenses in the Consolidated Balance S heets. The Bancorp evaluates the realization of deferred tax assets based on all positive and negative evidence a vailable at the balance sheet date. Realization of deferred tax assets is based on the Bancorp’s judgment about relevant factors affecting their realization, including the taxable income within any applicable carryback periods, future projected taxable inc ome, the reversal of taxable temporary differences and tax-planning strategies. The Bancorp records a valuation allowance for deferred tax assets where the Bancorp does not believe that it is more-likely-than-not that the deferred tax assets will be realiz ed. Income tax benefits from uncertain tax positions are recognized in the financial statements only if the Bancorp believes that it is more-likely-than-not that the uncertain tax position will be sustained based solely on the technical merits of the tax position and consideration of the relevant taxing authority’s widely understood administrative practices and precedents. If the Bancorp does not believe that it is more-likely-than-not that an uncertain tax position will be sustained, the Bancorp records a liability for the uncertain tax position. If the Bancorp believes that it is more likely than not that an uncertain tax position will be sustained, the Bancorp only records a tax benefit for the portion of the uncertain tax position where the likelihood o f realization is greater than 50% upon settlement with the relevant taxing authority that has full knowledge of all relevant information. The Bancorp recognizes interest expense, interest income and penalties related to unrecognized tax benefits within cur rent income tax expense. Refer to Note 20 for further discussion regarding income taxes . |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of commo n stock outstanding during the period. Earnings per diluted share is computed by dividing adjusted net income available to common shareholders by the weighted-average number of shares of common stock and common stock equivalents outstanding during the peri od. Dilutive common stock equivalents represent the exercise of dilutive stock-based awards and the dilutive effect of the settlement of outstanding forward contracts. The Bancorp calculates earnings per share pursuant to the two-class method. The two-clas s method is an earnings allocation formula that determines earnings per share separately for common stock and participating securities according to dividends declared and participation rights in undistributed earnings. For purposes of calculating earnings per share under the two-class method, restricted shares that contain nonforfeitable rights to dividends are considered participating securities until vested. While the dividends declared per share on such restricted shares are the same as dividends declare d per common share outstanding, the dividends recognized on such restricted shares may be less because dividends paid on restricted shares that are expected to be forfeited are reclassified to compensation expense during the period when forfeiture is expec ted. |
Goodwill | Goodwill Business combinations entered into by the Bancorp typically include the acquisition of goodwill. Goodwill is required to be tested for impairment at the Bancorp’s reporting unit level on an annual basis, which for the Bancorp is September 30, and more frequently if events or circumstances indicate that there may b e impairment. The Bancorp has determined that its segments qualify as reporting units under U.S. GAAP. Impairment exists when a reporting unit’s carrying amount of goodwill exceeds its implied fair value. In testing goodwill for impairment, U.S. GAAP permi ts the Bancorp to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In this qualitative assessment, the Bancorp evaluates events and circumstances whic h may include, but are not limited to, the general economic environment, banking industry and market conditions, the overall financial performance of the Bancorp, the performance of the Bancorp’s common stock, the key financial performance metrics of the B ancorp’s reporting units and events affecting the reporting units. If, after assessing the totality of events and circumstances, the Bancorp determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test would be unnecessary. However, if the Bancorp concludes otherwise or elects to bypass the qualitative assessment, it would then be required to perform the first step (Step 1) of the goodwill impairment test, an d continue to the second step (Step 2), if necessary. Step 1 of the goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, Step 2 of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The fair value of a reporting unit is the price that would be received to sell the unit as a whole in an orderly transaction between market participants at th e measurement date. As none of the Bancorp’s reporting units are publicly traded, individual reporting unit fair value determinations cannot be directly correlated to the Bancorp’s stock price. To determine the fair value of a reporting unit, the Bancorp e mploys an income-based approach, utilizing the reporting unit’s forecasted cash flows (including a terminal value approach to estimate cash flows beyond the final year of the forecast) and the reporting unit’s estimated cost of equity as the discount rate. Additionally, the Bancorp determines its market capitalization based on the average of the closing price of the Bancorp’s stock during the month including the measurement date, incorporating an additional control premium, and compares this market-based fa ir value measurement to the aggregate fair value of the Bancorp’s reporting units in order to corroborate the results of the income approach. When required to perform Step 2, the Bancorp compares the implied fair value of a reporting unit’s goodwill with t he carrying amount of that goodwill. If the carrying amount exceeds the implied fair value, an impairment loss equal to that excess amount is recognized. A recognized impairment loss cannot exceed the carrying amount of that goodwill and cannot be reversed in future periods even if the fair value of the reporting unit subsequently recovers. During Step 2, the Bancorp determines the implied fair value of goodwill for a reporting unit by assigning the fair value of the reporting unit to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. The excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. This assignment process is only performed for purposes of testing goodwill for impairment. The Bancorp does not adjust the carrying values of recognized assets or liabilities (other than goodwill, if appropriate), nor does i t recognize previously unrecognized intangible assets in the Consolidated Financial Statements as a result of this assignment process. Refer to Note 9 for further information regarding the Bancorp’s goodwill. |
Fair Value of Financial Instruments | Fair Value Measurements The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participant s at the measurement date. The Bancorp employs various valuation approaches to measure fair value including the market, income and cost approach es . The market approach uses prices or relevant information generated by market transactions involving identical or comparable assets or liabilities. The income approach involves discounting future amounts to a single present amount and is based on current market expectations about those future amounts. The cost approach is based on the amount that currently would b e required to replace the service capacity of the asset. U.S. GAAP establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest prior ity 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 lowest level of input t hat is significant to the instrument’s fair value measurement. The three levels within the fair value hierarchy are described as follows: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Bancorp has the ab ility to access at the measurement date. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabiliti es in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 – Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. Unobservable inputs reflect the Bancorp’s own assumptions about w hat market participants would use to price the asset or liability. The inputs are developed based on the best information available in the circumstances, which might include the Bancorp’s own financial data such as internally developed pricing models and D CF methodologies, as well as instruments for which the fair value determination requires significant management judgment. The Bancorp’s fair value measurements involve various valuation techniques and models, which involve inputs that are observable, when available. Valuation techniques and parameters used for measuring assets and liabilities are reviewed and validated by the Bancorp on a quarterly basis. Additionally, the Bancorp monitors the fair values of significant assets and liabilities using a varie ty of methods including the evaluation of pricing runs and exception reports based on certain analytical criteria, comparison to previous trades and overall review and assessments for reasonableness. The Bancorp may, as a practical expedient, measure the f air value of certain investments on the basis of the net asset value per share of the investment, or its equivalent. Any investments which are valued using this practical expedient are not classified in the fair value hierarchy. Refer to Note 27 for f urther information on fair value measurements. |
Stock-Based Compensation | Stock-Based Compensation The Bancorp recognizes compensation expense for the grant-date fair value of stock-based awards that are expected to vest over the requisite service period. All awards, both those with cliff vesting and graded vesting, are expensed on a straight-line basis. Awards to employees that meet eligible retirement status are expensed immediately. As compensation expense is recognized, a deferred tax asset is recorded that represents an esti mate of the future tax deduction from exercise or release of restrictions. At the time awards are exercised, cancelled, expire or restrictions are released, the Bancorp recognizes an adjustment to income tax expense for the difference between the previousl y estimated tax deduction and the actual tax deduction realized. For further information on the Bancorp’s stock-based compensation plans, refer to Note 24 . |
Pension Plans | Pension Plans The Bancorp uses an expected long-term rate of return applied to the fair mark et value of assets as of the beginning of the year and the expected cash flow during the year for calculating the expected investment return on all pension plan assets. Amortization of the net gain or loss resulting from experience different from that assu med and from changes in assumptions (excluding asset gains and losses not yet reflected in market-related value) is included as a component of net periodic benefit cost. If, as of the beginning of the year, that net gain or loss exceeds 10% of the greater of the projected benefit obligation and the market-related value of plan assets, the amortization is that excess divided by the average remaining service period of participating employees expected to receive benefits under the plan. The Bancorp uses a thir d-party actuary to compute the remaining service period of participating employees. This period reflects expected turnover, pre-retirement mortality and other applicable employee demographics. |
Other | Other Securities and other property held by Fifth Third Wealth and Asset Management , a division of the Bancorp’s banking subsidiary, in a fiduciary or agency capacity are not included in the Consolidated Balance Sheets because such items are not assets of the subsidiaries. Wealth and asset management revenue in the C onsolidated Statements of Income is recognized on the accrual basis. Wealth and asset management service revenues are recognized monthly based on a fee charged per transaction processed and/or a fee charged on the market value of average account balances a ssociated with individual contracts. The Bancorp recognizes revenue from its card and processing services on an accrual basis as such services are performed, recording revenues net of certain costs (primarily interchange fees charged by credit card associa tions) not controlled by the Bancorp. The Bancorp purchases life insurance policies on the lives of certain directors, officers and employees and is the owner and beneficiary of the policies. The Bancorp invests in these policies, known as BOLI, to provide an efficient form of funding for long-term retirement and other employee benefits costs. The Bancorp records these BOLI policies within other assets in the Consolidated Balance Sheets at each policy’s respective cash surrender value, with changes recorded in other noninterest income in the Consolidated Statements of Income. I ntangible assets consist of core deposit intangibles, customer lists, customer relationships, non-compete agreements, trade names and rent intangibles. I ntangible assets are amortized on either a straight-line or an accelerated basis over their estimated useful lives. T he Bancorp reviews intangible assets for impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Securities sold und er repurchase agreements are accounted for as secured borrowings and included in other short-term borrowings in the Consolidated Balance Sheets at the amounts at which the securities were sold plus accrued interest. Acquisitions of treasury stock are carri ed at cost. Reissuance of shares in treasury for acquisitions, exercises of stock-based awards or other corporate purposes is recorded based on the specific identification method. Advertising costs are generally expensed as incurred. |
Supplemental Cash Flow Inform41
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31: ($ in millions) 2017 2016 2015 Cash Payments: Interest $ 699 578 475 Income taxes 1,035 800 400 Transfers: Portfolio loans to loans held for sale 255 238 487 Loans held for sale to portfolio loans 29 28 288 Portfolio loans to OREO 34 49 105 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investment Securities | |
Available-for-Sale and Other and Held-to-Maturity Securities | The following table provides the amortized cost, fair value and unrealized gains and losses for the major categories of the available-for-sale and other and held-to-maturity investment securities portfolios as of December 31: 2017 2016 Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair ($ in millions) Cost Gains Losses Value Cost Gains Losses Value Available-for-sale and other securities: U.S. Treasury and federal agencies securities $ 98 - - 98 547 2 - 549 Obligations of states and political subdivisions securities 43 1 - 44 44 1 - 45 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 15,281 118 (80) 15,319 15,525 178 (95) 15,608 Agency commercial mortgage-backed securities 10,113 92 (38) 10,167 9,029 87 (61) 9,055 Non-agency commercial mortgage-backed securities 3,247 51 (5) 3,293 3,076 51 (15) 3,112 Asset-backed securities and other debt securities 2,183 46 (11) 2,218 2,106 28 (18) 2,116 Equity securities (b) 679 4 (2) 681 697 3 (2) 698 Total available-for-sale and other securities $ 31,644 312 (136) 31,820 31,024 350 (191) 31,183 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 22 - - 22 24 - - 24 Asset-backed securities and other debt securities 2 - - 2 2 - - 2 Total held-to-maturity securities $ 24 - - 24 26 - - 26 Includes interest-only mortgage-backed securities of $ 34 and $ 60 as of December 31, 2017 and 2016 , respectively, recorded at fair value with fair value changes recorded in securities gains, net , i n the Consolidated Statements of Income . Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 362 , and $ 2 , respectively, at December 31, 2017 and $ 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 | Trading securities were $862 million as of December 31, 2017 compared to $410 million at December 31, 2016. The following table presents net realized gains and losses that were recognized in income from available-for-sale and other securities as well as total gains and losses that were recognized in income from trading securities for the years ended December 31: ($ in millions) 2017 2016 2015 Available-for-sale and other securities: Realized gains $ 85 72 97 Realized losses (34) (45) (76) OTTI (54) (16) (5) Net realized (losses) gains on available-for-sale and other securities (a) $ (3) 11 16 Total trading securities gains (losses) (b) $ 10 - (7) Total gains and losses recognized in income from available-for-sale and other securities and trading securities $ 7 11 9 Excludes net losses on interest-only mortgage-backed securities of $ 2 , $ 4 and $ 4 for the years ended December 31, 2017 , 2016 and 2015 , respectively Includes a net gain of $ 1 and net losses of $ 3 and $ 4 for the years ended December 31, 2017 , 2016 and 2015 , respectively , recorded in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income. |
Other Than Temporary Impairment Credit Losses Recognized In Earnings | The following table provides a summary of OTTI by security type: ($ in millions) 2017 2016 2015 Available-for-sale and other debt securities $ (54) (15) (5) Available-for-sale equity securities - (1) - Total OTTI (a) $ (54) (16) (5) (a) Included in securities gains, net, in the Consolidated Statements of Income. |
Amortized Cost and Fair Value of Available-for-Sale and Other and Held-to-Maturity Securities | The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale and other and held-to-maturity investment securities as of December 31, 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 $ 140 141 5 5 1-5 years 9,695 9,707 13 13 5-10 years 17,592 17,734 4 4 Over 10 years 3,538 3,557 2 2 Equity securities 679 681 - - Total $ 31,644 31,820 24 24 (a) Actual maturities may differ from contractu al maturities when a right to call or prepay obligations exists with or without call or prepayment penalties. |
Fair Value and Gross Unrealized Loss of Securities Available for Sale | The following table provides the fair value and gross unrealized losses on available-for-sale and other securities in an unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized ($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses 2017 U.S. Treasury and federal agencies securities $ 98 - - - 98 - Agency residential mortgage-backed securities 7,337 (59) 479 (21) 7,816 (80) Agency commercial mortgage-backed securities 2,900 (22) 526 (16) 3,426 (38) Non-agency commercial mortgage-backed securities 449 (2) 145 (3) 594 (5) Asset-backed securities and other debt securities 317 (2) 386 (9) 703 (11) Equity securities - - 37 (2) 37 (2) Total $ 11,101 (85) 1,573 (51) 12,674 (136) 2016 U.S. Treasury and federal agencies securities 199 - - - 199 - Agency residential mortgage-backed securities $ 6,223 (88) 172 (7) 6,395 (95) Agency commercial mortgage-backed securities 3,183 (61) - - 3,183 (61) Non-agency commercial mortgage-backed securities 1,052 (15) - - 1,052 (15) Asset-backed securities and other debt securities 422 (8) 336 (10) 758 (18) Equity securities - - 37 (2) 37 (2) Total $ 11,079 (172) 545 (19) 11,624 (191) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 12 Months Ended |
Dec. 31, 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 classified based upon product or collateral as of December 31: ($ in millions) 2017 2016 Loans and leases held for sale: Commercial and industrial loans $ - 60 Commercial mortgage loans 6 5 Residential mortgage loans 486 686 Total loans and leases held for sale $ 492 751 Portfolio loans and leases: Commercial and industrial loans $ 41,170 41,676 Commercial mortgage loans 6,604 6,899 Commercial construction loans 4,553 3,903 Commercial leases 4,068 3,974 Total commercial loans and leases 56,395 56,452 Residential mortgage loans 15,591 15,051 Home equity 7,014 7,695 Automobile loans 9,112 9,983 Credit card 2,299 2,237 Other consumer loans 1,559 680 Total consumer loans 35,575 35,646 Total portfolio loans and leases $ 91,970 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 and net charge-offs (recoveries) as of and for the years ended December 31: 90 Days Past Due Net Carrying Value and Still Accruing Charge-Offs (Recoveries) ($ in millions) 2017 2016 2017 2016 2017 2016 Commercial and industrial loans $ 41,170 41,736 3 4 111 172 Commercial mortgage loans 6,610 6,904 - - 12 15 Commercial construction loans 4,553 3,903 - - - (1) Commercial leases 4,068 3,974 - - 2 4 Residential mortgage loans 16,077 15,737 57 49 7 10 Home equity 7,014 7,695 - - 19 27 Automobile loans 9,112 9,983 10 9 37 35 Credit card 2,299 2,237 27 22 84 80 Other consumer loans 1,559 680 - - 26 20 Total loans and leases $ 92,462 92,849 97 84 298 362 Less: Loans and leases held for sale $ 492 751 Total portfolio loans and leases $ 91,970 92,098 |
Investment in Lease Financing | The following table provides the components of the commercial lease financing portfolio as of December 31: ($ in millions) 2017 2016 Rentals receivable, net of principal and interest on nonrecourse debt $ 3,684 3,551 Estimated residual value of leased assets 885 903 Initial direct cost, net of amortization 22 23 Gross investment in lease financing 4,591 4,477 Unearned income (523) (503) Net investment in commercial lease financing (a) $ 4,068 3,974 The accumulated allowance for uncollectible minimum lease payments was $ 14 and $ 15 at December 31, 2017 and 2016 , respectively. |
Credit Quality and the Allowa44
Credit Quality and the Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Credit Quality and the Allowance for Loan and Leases Losses | |
Summary of Transactions in the ALLL | The following tables summarize transactions in the ALLL by portfolio segment for the years ended December 31: Residential 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 831 96 214 112 1,253 Losses charged-off (154) (15) (212) - (381) Recoveries of losses previously charged-off 29 8 46 - 83 Provision for loan and lease losses 66 - 186 9 261 Deconsolidation of a VIE (a) (19) - - (1) (20) Balance, end of period $ 753 89 234 120 1,196 (a) Refer to Note 11 for further discussion on the deconsolidation of a VIE. Residential 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 840 100 217 115 1,272 Losses charged-off (232) (19) (205) - (456) Recoveries of losses previously charged-off 42 9 43 - 94 Provision for loan and lease losses 181 6 159 (3) 343 Balance, end of period $ 831 96 214 112 1,253 Residential 2015 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 875 104 237 106 1,322 Losses charged-off (298) (28) (216) - (542) Recoveries of losses previously charged-off 37 11 48 - 96 Provision for loan and lease losses 226 13 148 9 396 Balance, end of period $ 840 100 217 115 1,272 |
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment | The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: Residential As of December 31, 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 94 a 64 42 - 200 Collectively evaluated for impairment 659 25 192 - 876 Unallocated - - - 120 120 Total ALLL $ 753 89 234 120 1,196 Portfolio loans and leases: (b) Individually evaluated for impairment $ 560 a 665 320 - 1,545 Collectively evaluated for impairment 55,835 14,787 19,664 - 90,286 Loans acquired with deteriorated credit quality - 2 - - 2 Total portfolio loans and leases $ 56,395 15,454 19,984 - 91,833 Includes $ 1 related to leveraged leases at December 31, 2017 . Excludes $ 137 of residential mortgage loans measured at fair value, and includes $ 674 of leveraged leases, net of unearned income, at December 31, 2017 . Residential As of December 31, 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 118 (c) a 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) a 652 371 - 1,927 Collectively evaluated for impairment 55,548 14,253 20,224 - 90,025 Loans acquired with deteriorated credit quality - 3 - - 3 Total portfolio loans and leases $ 56,452 14,908 20,595 - 91,955 Includes $ 2 related to leveraged leases at December 31, 2016 . Excludes $ 143 of residential mortgage loans measured at fair value , and includes $ 701 of leveraged leases, net of unearned income at December 31, 2016 . Includes five restruc tured loans at December 31, 2016 associated with a consolida ted VIE in which the Bancorp had no continuing credit risk due to the risk being assumed by a third party, w ith a recorded investment of $26 and an ALLL of $18 . Refer to Note 11 for further discussion on the deconsolidation of a VIE associated with these loans in the third quarter of 2017. |
Loan and leases balances by credit quality indicator | The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class: Special As of December 31, 2017 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 38,813 1,115 1,235 7 41,170 Commercial mortgage owner-occupied loans 3,207 75 80 - 3,362 Commercial mortgage nonowner-occupied loans 3,117 28 97 - 3,242 Commercial construction loans 4,553 - - - 4,553 Commercial leases 3,922 72 74 - 4,068 Total commercial loans and leases $ 53,612 1,290 1,486 7 56,395 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 December 31: 2017 2016 ($ in millions) Performing Nonperforming Performing Nonperforming Residential mortgage loans (a) $ 15,424 30 14,874 34 Home equity 6,940 74 7,622 73 Automobile loans 9,111 1 9,981 2 Credit card 2,273 26 2,209 28 Other consumer loans 1,559 - 680 - Total residential mortgage and consumer loans (a) $ 35,307 131 35,366 137 (a) Excludes $ 137 and $ 143 of residential mortgage loans measured at fair value at December 31, 2017 and 2016 , respectively . |
Summary by Age and Class of the Recorded Investment in Delinquencies Included in the Bancorp's Portfolio of Loans and Leases | The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases, by age and class: Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2017 ($ in millions) Leases (b)(c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 41,027 42 101 143 41,170 3 Commercial mortgage owner-occupied loans 3,351 3 8 11 3,362 - Commercial mortgage nonowner-occupied loans 3,235 - 7 7 3,242 - Commercial construction loans 4,552 1 - 1 4,553 - Commercial leases 4,065 3 - 3 4,068 - Residential mortgage loans (a) 15,301 66 87 153 15,454 57 Consumer loans: Home equity 6,888 70 56 126 7,014 - Automobile loans 8,992 107 13 120 9,112 10 Credit card 2,230 36 33 69 2,299 27 Other consumer loans 1,554 5 - 5 1,559 - Total portfolio loans and leases (a) $ 91,195 333 305 638 91,833 97 Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 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. A s of December 31, 2017 , $ 95 of these loans were 30-89 days past due and $ 290 were 90 days or more past due. The Bancorp recognized $ 5 of losses during the year ended December 31, 2017 due to claim denials and curtailments a ssociated with these insured or guaranteed loans. Includes accrual and nonaccrual loans and leases. Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2016 ($ in millions) Leases (b)(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) 14,790 37 81 118 14,908 49 Consumer loans: 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 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 . A s of December 31, 2016 , $ 110 of these loans were 30-89 days past due and $ 312 were 90 days or more past due. The Bancorp recognized $ 6 of losses during the year ended December 31, 2016 due to claim denials and curtailments associated with these insured or guaranteed loans . Includes accrual and nonaccrual loans and leases . |
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class | The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR as of December 31: Unpaid Principal Recorded 2017 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 433 358 87 Commercial mortgage owner-occupied loans 16 14 7 Commercial mortgage nonowner-occupied loans 4 3 - Commercial leases 4 4 - Restructured residential mortgage loans 469 465 64 Restructured consumer loans: Home equity 172 172 27 Automobile loans 8 7 1 Credit card 52 45 14 Total impaired portfolio loans and leases with a related ALLL $ 1,158 1,068 200 With no related ALLL: Commercial loans: Commercial and industrial loans $ 151 131 - Commercial mortgage owner-occupied loans 18 15 - Commercial mortgage nonowner-occupied loans 35 35 - Restructured residential mortgage loans 218 200 - Restructured consumer loans: Home equity 97 94 - Automobile loans 2 2 - Total impaired portfolio loans with no related ALLL $ 521 477 - Total impaired portfolio loans and leases $ 1,679 1,545 (a) 200 Includes $ 249 , $ 652 and $ 275 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 150 , $ 13 and $ 45 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2017 . Unpaid Principal Recorded 2016 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 440 414 94 Commercial mortgage owner-occupied loans (b) 24 16 5 Commercial mortgage nonowner-occupied loans 7 6 1 Commercial leases 2 2 - Restructured residential mortgage loans 471 465 68 Restructured consumer loans: 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: Home equity 107 104 - Automobile loans 3 2 - Total impaired portfolio loans and leases with no related ALLL $ 842 733 - Total impaired portfolio loans and leases $ 2,052 1,901 a (a) 212 Includes $ 322 , $ 635 and $ 323 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 192 , $ 17 and $ 48 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2016 . Ex cludes five restructured loans at December 31, 2016 associated with a consolidated VIE in which the Bancorp had 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 . Refer to Note 11 for further discussion on the deconsolidation o f a VIE associated with these loans in the third quarter of 2017. The following table summarizes the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the years ended December 31: 2017 2016 2015 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 579 10 691 10 663 21 Commercial mortgage owner-occupied loans (a) 35 - 63 1 92 2 Commercial mortgage nonowner-occupied loans 61 1 139 5 224 7 Commercial construction loans - - 3 - 41 1 Commercial leases 3 - 5 - 5 - Restructured residential mortgage loans 657 25 647 25 586 23 Restructured consumer loans: Home equity 281 12 325 12 361 13 Automobile loans 11 - 17 - 22 1 Credit card 50 4 56 5 68 6 Total average impaired portfolio loans and leases $ 1,677 52 1,946 58 2,062 74 Excludes five restructured loans associated with a consolid ated VIE in which the Bancorp had no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 13 , $ 26 and $ 27 for t he years ended December 31, 2017 , 2016, and 2015, respectively. An immaterial amount of interest income was recognized during t he years ended December 31, 2017 , 2016, and 2015. Refer to Note 11 for further discus sion on the deconsolidation of the VIE associated with these loans i n the third quarter of 2017. |
Summary of the Bancorp's Nonperforming Loans and Leases by Class | Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured commercial and credit card loans which have not yet met the requirements to be classified as a performing asset; restructured consumer loans which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property. The following table presents the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of December 31: ($ in millions) 2017 2016 Commercial loans and leases: Commercial and industrial loans $ 276 478 Commercial mortgage owner-occupied loans (c) 19 32 Commercial mortgage nonowner-occupied loans 7 9 Commercial leases 4 4 Total nonaccrual portfolio commercial loans and leases 306 523 Residential mortgage loans 30 34 Consumer loans: Home equity 74 73 Automobile loans 1 2 Credit card 26 28 Total nonaccrual portfolio consumer loans 101 103 Total nonaccrual portfolio loans and leases (a)(b) $ 437 660 OREO and other repossessed property 52 78 Total nonperforming portfolio assets (a)(b) $ 489 738 Excludes $ 6 and $ 13 of nonaccrual loans and leases held for sale at December 31, 2017 and 2016 , respectively. Includes $ 3 and $ 4 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at December 31, 2017 and 2016 , respectively, of which $ 3 and $ 1 are restructured nonaccrual government insured commercial loans at December 31, 2017 and 2016 , respectively . Excludes $ 19 of restructured nonaccrua l loans at December 31, 2016 associated with a consolidated VIE in which the Bancorp had no continuing credit risk due the risk being assumed by a third party. Refer to Note 11 for further discussion on the deconsolidation of the VIE associated with these loans in the third quarte Excludes $ 19 of restructured nonaccrua l loans at December 31, 2016 associated with a consolidated VIE in which the Bancorp had no continuing credit risk due the risk being assumed by a third party. Refer to Note 11 for further discussion on the deconsolidation of the VIE associated with these loans in the third quarte r of 2017. |
Summary of Loans 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 years ended December 31: Recorded Investment Increase Number of Loans in Loans Modified (Decrease) Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon 2017 ($ in millions) (a) During the Year (b) During the Year Modification Modification Commercial loans and leases: Commercial and industrial loans 75 $ 237 (5) 6 Commercial mortgage owner-occupied loans 9 8 5 - Commercial mortgage nonowner-occupied loans 4 - - - Commercial leases 1 4 - - Residential mortgage loans 830 116 5 - Consumer loans: Home equity 150 10 - - Automobile loans 102 - - - Credit card 8,085 38 8 1 Total portfolio loans and leases 9,256 $ 413 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 Number of Loans in Loans Modified Increase Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon 2016 ($ in millions) (a) During the Year (b) During the Year Modification Modification Commercial loans and leases: Commercial and industrial loans 74 $ 183 14 - Commercial mortgage owner-occupied loans 12 11 - - Commercial mortgage nonowner-occupied loans 4 5 2 - Commercial leases 5 16 - - Residential mortgage loans 924 137 8 - Consumer loans: Home equity 219 15 - - Automobile loans 221 3 - - Credit card 9,519 43 8 4 Total portfolio loans and leases 10,978 $ 413 32 4 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded Investment Increase Number of Loans in Loans Modified (Decrease) Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon 2015 ($ in millions) (a) During the Year (b) During the Year Modification Modification Commercial loans: Commercial and industrial loans 77 $ 146 7 3 Commercial mortgage owner-occupied loans 18 16 (2) - Commercial mortgage nonowner-occupied loans 12 7 (1) - Residential mortgage loans 1,089 155 8 - Consumer loans: Home equity 267 16 (1) - Automobile loans 440 7 1 - Credit card 12,569 62 11 7 Total portfolio loans 14,472 $ 409 23 10 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. Represents number of loans post-modification and excludes loans previously modified in a TDR. |
Summary of Subsequent Defaults | The following tables provide a summary of TDRs that subsequently defaulted during the years ended December 31, 2017, 2016 and 2015 and were within twelve months of the restructuring date: Number of Recorded December 31, 2017 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 7 $ 17 Commercial mortgage owner-occupied loans 4 1 Residential mortgage loans 172 24 Consumer loans: Home equity 16 2 Credit card 1,633 8 Total portfolio loans 1,832 $ 52 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. Number of Recorded December 31, 2016 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 8 $ 5 Commercial mortgage owner-occupied loans 2 - Commercial leases 2 1 Residential mortgage loans 172 25 Consumer loans: Home equity 17 1 Automobile loans 2 - Credit card 1,715 7 Total portfolio loans and leases 1,918 $ 39 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. Number of Recorded December 31, 2015 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 7 $ 11 Commercial mortgage owner-occupied loans 3 1 Residential mortgage loans 156 21 Consumer loans: Home equity 15 1 Automobile loans 8 - Credit card 1,935 8 Total portfolio loans 2,124 $ 42 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Bank Premises and Equipment | |
Bank Premises and Equipment | The following table provides a summary of bank premises and equipment as of December 31: ($ in millions) Estimated Useful Life 2017 2016 Land and improvements (a) $ 644 663 Buildings (a) 2 - 30 yrs. 1,679 1,672 Equipment 2 - 20 yrs. 1,876 1,761 Leasehold improvements 1 - 30 yrs. 399 398 Construction in progress (a) 93 99 Bank premises and equipment held for sale: Land and improvements 17 29 Buildings 9 9 Equipment 1 1 Accumulated depreciation and amortization (2,715) (2,567) Total bank premises and equipment $ 2,003 2,065 (a) At December 31, 2017 and 2016 , land and improvements, buildings and construction in progress included $ 91 and $ 92 , respectively, associated with parcels of undeveloped land intended for future branch expansion. |
Annual Future Minimum Payments under Capital Leases and Noncancelable Operating Leases | The following table provides the annual future minimum payments under noncancelable operating leases and capital leases for the years ending December 31: ($ in millions) Noncancelable Operating Leases Capital Leases 2018 $ 87 6 2019 83 6 2020 71 5 2021 57 4 2022 51 4 Thereafter 219 1 Total minimum lease payments $ 568 26 Less: Amounts representing interest - 4 Present value of net minimum lease payments - 22 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill | |
Changes in the Net Carrying Amount of Goodwill by Reporting Segment | Changes in the net carrying amount of goodwill, by reporting unit, for the years ended December 31, 2017 and 2016 were as follows: Commercial Branch Consumer Wealth and Asset ($ in millions) Banking Banking Lending Management Total Goodwill $ 1,363 1,655 215 148 3,381 Accumulated impairment losses (750) - (215) - (965) Net carrying amount as of December 31, 2015 $ 613 1,655 - 148 2,416 Acquisition activity - - - - - Net carrying amount as of December 31, 2016 $ 613 1,655 - 148 2,416 Acquisition activity - - - 29 29 Net carrying amount as of December 31, 2017 $ 613 1,655 - 177 2,445 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2017 Core deposit intangibles $ 34 (29) 5 Customer relationships 16 - 16 Non-compete agreements 13 (10) 3 Other 6 (3) 3 Total intangible assets $ 69 (42) 27 As of December 31, 2016 Core deposit intangibles $ 34 (27) 7 Non-compete agreements 10 (10) - Other 5 (3) 2 Total intangible assets $ 49 (40) 9 |
Estimated Amortization Expense | Estimated amortization expense for the years ending December 31, 2018 through 2022 is as follows: ($ in millions) Total 2018 $ 3 2019 3 2020 3 2021 2 2022 2 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entities | |
Consolidation of Variable Interest Entities Disclosure | Consolidated VIEs The following tables provide a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Consolidated Balance Sheets as of: Automobile Loan CDC December 31, 2017 ($ in millions) Securitizations Investments Total Assets: Other short-term investments $ 62 - 62 Commercial mortgage loans - 20 20 Automobile loans 1,277 - 1,277 ALLL (6) - (6) Other assets 7 - 7 Total assets $ 1,340 20 1,360 Liabilities: Other liabilities $ 2 - 2 Long-term debt 1,190 - 1,190 Total liabilities $ 1,192 - 1,192 Noncontrolling interests $ - 20 20 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 Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of: Total Total Maximum December 31, 2017 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,376 355 1,376 Private equity investments 102 - 150 Loans provided to VIEs 1,845 - 2,910 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 Consolidated Statements of Income relating to investments in qualified affordable housing investments: Consolidated Statements of For the years ended December 31 ($ in millions) Income Caption 2017 2016 2015 Pre-tax investment and impairment losses (a) Other noninterest expense $ 207 144 126 Tax credits and other benefits Applicable income tax expense (246) (220) (205) (a) The Bancorp recognized $68 of impairment losses primarily due to the change in the federal statutory corporate tax rate during the year ended December 31, 2017 and did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or othe r circumstances during the years ended December 31, 2017 , 2016 and 2015 . |
Sales of Receivables and Serv49
Sales of Receivables and Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Sales of Receivables and Servicing Rights | |
Activity Related to Mortgage Banking Net Revenue | Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Consolidated Statements of Income, for the years ended December 31 is as follows: ($ in millions) 2017 2016 2015 Residential mortgage loan sales (a) $ 6,369 6,927 5,078 (b) Origination fees and gains on loan sales 138 186 171 Gross mortgage servicing fees 206 199 222 Represents the unpaid principal balance at the time of the sale . Excludes $ 568 of HFS residential mortgage loans previously modified in a TDR that were sold d uring the first quarter of 2015. |
Changes in the Servicing Assets | The following tables present changes in the servicing rights related to residential mortgage and automobile loans for the years ended December 31: ($ in millions) 2017 Balance, beginning of period $ 744 Servicing rights originated - residential mortgage loans 127 Servicing rights acquired - residential mortgage loans 109 Changes in fair value: Due to changes in inputs or assumptions (a) (1) Other changes in fair value (b) (121) Balance, end of period $ 858 Primarily reflects changes in prepayment speed and OAS spread assumptions which are updated based on market interest rates. Primarily 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 83 Amortization (131) Balance, end of period $ 1,156 Valuation allowance for servicing rights: Balance, beginning of period $ (419) Recovery of MSR impairment 7 Balance, end of period (412) Carrying amount after valuation allowance $ 744 |
Fair Value of the Servicing Assets | The following table displays the beginning and ending fair value of the servicing rights for the years ended December 31: ($ in millions) 2017 2016 Fixed-rate residential mortgage loans: Balance, beginning of period $ 722 757 Balance, end of period 841 722 Adjustable-rate residential mortgage loans: Balance, beginning of period 22 27 Balance, end of period 17 22 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 years ended December 31: ($ in millions) 2017 2016 2015 Securities gains, net - non-qualifying hedges on MSRs $ 2 - - Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) 2 24 90 MSR fair value adjustment (a) (122) - - Recovery of MSR impairment (a) - 7 4 Included in mortgage banking net revenue in the 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, securitization, or purchase resulting from transactions completed during the years ended December 31 were as follows: 2017 2016 Weighted- Prepayment Weighted- Prepayment Average Life Speed OAS Spread Average Life Speed OAS Spread Rate (in years) (annual) (bps) (in years) (annual) (bps) Residential mortgage loans: Servicing rights Fixed 7.5 9.1 % 497 7.2 10.3 % 584 Servicing rights Adjustable 2.7 32.1 660 2.8 30.2 679 |
Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions | At December 31, 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 $ 841 6.0 11.4 % $ (36) (69) (158) 549 $ (17) (33) Servicing rights Adjustable 17 3.3 24.6 (1) (2) (5) 785 - (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 Instrume50
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 Consolidated Balance Sheets as of: Fair Value Notional Derivative Derivative December 31, 2017 ($ in millions) Amount Assets Liabilities Derivatives Designated as Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 3,705 297 5 Total fair value hedges 297 5 Cash flow hedges: Interest rate swaps related to C&I loans 4,475 - 12 Total cash flow hedges - 12 Total derivatives designated as qualifying hedging instruments 297 17 Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSRs 11,035 54 15 Forward contracts related to residential mortgage loans held for sale 1,284 1 1 Stock warrant 20 20 - Swap associated with the sale of Visa, Inc. Class B Shares 1,900 - 137 Foreign exchange contracts 112 - 1 Total free-standing derivatives - risk management and other business purposes 75 154 Free-standing derivatives - customer accommodation: Interest rate contracts for customers 42,216 154 145 Interest rate lock commitments 446 8 - Commodity contracts 4,125 165 167 TBA securities 26 - - Foreign exchange contracts 12,654 124 119 Total free-standing derivatives - customer accommodation 451 431 Total derivatives not designated as qualifying hedging instruments 526 585 Total $ 823 602 Fair Value Notional Derivative Derivative December 31, 2016 ($ in millions) Amount Assets Liabilities Derivatives Designated as Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 3,455 323 12 Total fair value hedges 323 12 Cash flow hedges: Interest rate swaps related to C&I loans 4,475 22 - Total cash flow hedges 22 - Total derivatives designated as qualifying hedging instruments 345 12 Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSRs 10,522 165 39 Forward contracts related to residential mortgage loans held for sale 1,823 20 3 Swap associated with the sale of Visa, Inc. Class B Shares 1,300 - 91 Foreign exchange contracts 111 - - Total free-standing derivatives - risk management and other business purposes 185 133 Free-standing derivatives - customer accommodation: Interest rate contracts for customers 33,431 205 210 Interest rate lock commitments 701 13 1 Commodity contracts 2,095 107 106 Foreign exchange contracts 11,013 202 204 Total free-standing derivatives - customer accommodation 527 521 Total derivatives not designated as qualifying hedging instruments 712 654 Total $ 1,057 666 |
Net Gains (Losses) Recognized in the Income Statement Related to Derivatives in Fair Value Hedging Relationships | The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Consolidated Statements of Income: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2017 2016 2015 Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ (33) (59) (29) Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt 31 54 25 |
Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges | The following table presents the pre-tax net (losses) gains recorded in the Consolidated Statements of Income and in the Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the years ended December 31 ($ in millions) 2017 2016 2015 Amount of pre-tax net (losses) gains recognized in OCI $ (11) 30 74 Amount of pre-tax net gains reclassified from OCI into net income 19 48 75 |
Net Gains (Losses) Relating to Free-Standing Derivative Instruments Used for Risk Management and Other Business Purposes | The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2017 2016 2015 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ (17) 14 8 Interest rate contracts related to MSR portfolio Mortgage banking net revenue 2 24 90 Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income (7) 2 23 Equity contracts: Stock warrant associated with Vantiv Holding, LLC Other noninterest income - 73 (a) 325 (a) Stock warrant Other noninterest income (1) - - Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (80) (56) (37) ( a) The Bancorp recognized a net gain of $ 9 on the exercise of the remaining warrant during the fourth quarter of 2016 and a net gain of $89 on both the sale and partial exercise of the warrant during the fourth quarter of 2015 |
Risk Ratings of the Notional Amount of Risk Participation Agreements | Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table: At December 31 ($ in millions) 2017 2016 Pass $ 2,748 2,447 Special mention 66 14 Substandard 24 6 Total $ 2,838 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 Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: Consolidated Statements of For the years ended December 31 ($ in millions) Income Caption 2017 2016 2015 Interest rate contracts: Interest rate contracts for customers (contract revenue) Corporate banking revenue $ 21 22 23 Interest rate contracts for customers (credit losses) Other noninterest expense (5) - (1) Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense 2 1 1 Interest rate lock commitments Mortgage banking net revenue 93 114 111 Commodity contracts: Commodity contracts for customers (contract revenue) Corporate banking revenue 6 6 5 Commodity contracts for customers (credit losses) Other noninterest expense 1 (1) (2) Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense - 1 6 Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Corporate banking revenue 48 62 70 Foreign exchange contracts for customers (credit losses) Other noninterest expense 2 (2) - Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 1 - |
Offsetting Derivative Financial Instruments | The following tables provide a summary of offsetting derivative financial instruments: Gross Amount Gross Amounts Not Offset in the Recognized in the Consolidated Balance Sheets As of December 31, 2017 ($ in millions) Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 815 (213) (362) 240 Total assets 815 (213) (362) 240 Liabilities: Derivatives 602 (213) (155) 234 Total liabilities $ 602 (213) (155) 234 (a) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements. (b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related d erivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. Gross Amount Gross Amounts Not Offset in the Recognized in the Consolidated Balance Sheets As of December 31, 2016 ($ in millions) Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 1,044 (374) (377) 293 Total assets 1,044 (374) (377) 293 Liabilities: Derivatives 665 (374) (125) 166 Total liabilities $ 665 (374) (125) 166 Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangement s . Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets | |
Other Assets Disclosure | The following table provides the components of other assets included in the Consolidated Balance Sheets as of December 31: ($ in millions) 2017 2016 Accounts receivable and drafts-in-process $ 1,763 2,158 Bank owned life insurance 1,720 1,681 Partnership investments 1,557 1,689 Derivative instruments 823 1,057 Accrued interest and fees receivable 378 350 Investment in Vantiv Holding, LLC 219 414 Vantiv, Inc. TRA put/call receivable 105 165 Prepaid expenses 87 83 Income tax receivable 66 1 OREO and other repossessed personal property 54 84 Other 203 162 Total other assets $ 6,975 7,844 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Short-Term Borrowings | |
Summary of Short-Term Borrowings and Weighted-Average Rates | The following table summarizes short-term borrowings and weighted-average rates: 2017 2016 ($ in millions) Amount Rate Amount Rate As of December 31: Federal funds purchased $ 174 1.37 % $ 132 0.61 % Other short-term borrowings 4,012 1.28 3,535 0.54 Average for the years ended December 31: Federal funds purchased $ 557 1.01 % $ 506 0.39 % Other short-term borrowings 3,158 0.96 2,845 0.36 Maximum month-end balance for the years ended December 31: Federal funds purchased $ 1,495 $ 739 Other short-term borrowings 6,307 6,374 |
Summary of Other Short-Term Borrowings | The following table presents a summary of the Bancorp's other short-term borrowings as of December 31: ($ in millions) 2017 2016 FHLB advances $ 3,125 2,500 Securities sold under repurchase agreements 546 661 Derivative collateral 341 374 Total other short-term borrowings $ 4,012 3,535 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long-Term Debt | |
Summary of the Bancorp's Long-Term Borrowings | The following table is a summary of the Bancorp’s long-term borrowings at December 31: ($ in millions) Maturity Interest Rate 2017 2016 Parent Company Senior: Fixed-rate notes 2019 2.30% 499 499 Fixed-rate notes 2020 2.875% 1,097 1,096 Fixed-rate notes 2022 2.60% 697 - Fixed-rate notes 2022 3.50% 497 497 Subordinated: (a) Fixed-rate notes 2017 5.45% - 501 Fixed-rate notes 2018 4.50% 505 519 Fixed-rate notes 2024 4.30% 747 746 Fixed-rate notes 2038 8.25% 1,305 1,312 Subsidiaries Senior: Fixed-rate notes 2017 1.35% - 650 Fixed-rate notes 2018 2.15% 996 997 Fixed-rate notes 2018 1.45% 600 598 Floating-rate notes (b) 2018 2.35% 250 250 Fixed-rate notes 2019 2.375% 849 849 Fixed-rate notes 2019 2.30% 749 748 Fixed-rate notes 2019 1.625% 736 737 Floating-rate notes (b) 2019 2.26% 250 249 Fixed-rate notes 2020 2.20% 744 - Floating-rate notes (b) 2020 1.63% 299 - Fixed-rate notes 2021 2.25% 1,247 1,246 Fixed-rate notes 2021 2.875% 846 845 Subordinated: (a) Fixed-rate bank notes 2026 3.85% 747 746 Junior subordinated: Floating-rate debentures (b) 2035 3.01%-3.28% 52 52 FHLB advances 2018 - 2041 0.05% - 6.87% 30 33 Notes associated with consolidated VIEs: Automobile loan securitizations: Fixed-rate notes 2018 - 2024 1.30%-2.03% 982 1,061 Floating-rate notes (b) 2020 1.63% 75 33 Other 2018 - 2039 Varies 105 124 Total $ 14,904 14,388 In aggregate, $ 2.6 billion and $ 2.7 billion qualifies as Tier II capital for regulatory capital purposes as of December, 31 2017 and 2016 , respectively. These rates reflect the floating rates as of December 31, 2017 . |
Schedule Of Long Term Debt Maturities | The Bancorp pays down long-term debt in accordance with contractual terms over maturity periods summarized in the above table. The aggregate annual maturities of long-term debt obligations (based on final maturit y dates) as of December 31, 2017 a re presented in the following tabl e: ($ in millions) Parent Subsidiaries Total 2018 $ 505 1,907 2,412 2019 499 2,600 3,099 2020 1,097 1,477 2,574 2021 - 2,195 2,195 2022 1,194 463 1,657 Thereafter 2,052 915 2,967 Total $ 5,347 9,557 14,904 |
Commitments, Contingent Liabi54
Commitments, Contingent Liabilities and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments, Contingent Liabilities and Guarantees | |
Summary of Significant Commitments | The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of December 31: ($ in millions) 2017 2016 Commitments to extend credit $ 68,106 67,909 Letters of credit 2,185 2,583 Forward contracts related to residential mortgage loans held for sale 1,284 1,823 Noncancelable operating lease obligations 568 576 Purchase obligations 144 57 Capital commitments for private equity investments 48 59 Capital expenditures 37 29 Capital lease obligations 26 19 |
Credit Risk Associated With Commitments | Risk ratings under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2017 2016 Pass $ 67,254 66,802 Special mention 330 338 Substandard 522 753 Doubtful - 16 Total commitments to extend credit $ 68,106 67,909 |
Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party | Letters of credit Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of December 31, 2017: ($ in millions) Less than 1 year (a) $ 1,170 1 - 5 years (a) 999 Over 5 years 16 Total letters of credit $ 2,185 (a) Includes $ 7 and $ 1 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 December 31: ($ in millions) 2017 2016 Pass $ 1,830 2,134 Special mention 67 98 Substandard 218 290 Doubtful 70 61 Total letters of credit $ 2,185 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 years ended December 31: ($ in millions) 2017 2016 Balance, beginning of period $ 13 25 Net reductions to the reserve (3) (10) Losses charged against the reserve (1) (2) Balance, end of period $ 9 13 |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The following tables provide a rollforward of unresolved claims by claimant type for the years ended December 31: GSE Private Label 2017 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 13 $ 2 - $ - New demands 109 15 1 - Loan paydowns/payoffs (2) - - - Resolved demands (114) (16) - - Balance, end of period 6 $ 1 1 $ - GSE Private Label 2016 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 16 $ 4 2 $ - New demands 309 22 4 - Loan paydowns/payoffs (8) (1) - - Resolved demands (304) (23) (6) - Balance, end of period 13 $ 2 - $ - |
Visa Funding and Bancorp Cash Payments | Visa Bancorp Cash Period ($ in millions) Funding Amount Payment Amount Q2 2010 $ 500 20 Q4 2010 800 35 Q2 2011 400 19 Q1 2012 1,565 75 Q3 2012 150 6 Q3 2014 450 18 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions | |
Summary of the Bancorp's Activities with its Principal Shareholders, Directors and Executives | The following table summarizes the Bancorp’s lending activities with its principal shareholders, directors, executives and their related interests at December 31: ($ in millions) 2017 2016 Commitments to lend, net of participations: Directors and their affiliated companies $ 546 618 Executive officers 6 4 Total $ 552 622 Outstanding balance on loans, net of participations and undrawn commitments $ 20 54 |
Summary Vantiv Holding, LLC Sales Transactions | The following table provides a summary of the sales transactions that impacted the Bancorp's ownership interest in Vantiv Holding, LLC after the initial IPO: Remaining Ownership ($ in millions) Gain on Sale Percentage (a) Q4 2012 $ 157 33.1 % Q2 2013 242 27.7 Q3 2013 85 25.1 Q2 2014 125 22.8 Q4 2015 331 18.3 Q3 2017 1,037 8.6 (a) The Bancorp’s remaining investment in Vantiv Holding, LLC of $ 219 as of December 31, 201 7 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. |
Summary of Estimated Cash Flows to be Received from the TRA | The following table provides the estimated cash flows to be received as of December 31, 2017 associated with the TRA for the years ending December 31, 2018 and thereafter: Cash Flows to be Received Estimated Cash Flows to from Put/Call Option be Received not Subject ($ in millions) Exercises (Fixed Amounts) (b) to Put/Call Option (a) 2018 108 44 2019 - 20 2020 - 25 2021 - 26 2022 - 26 2023 - 27 2024 - 27 2025 - 28 2026 - 29 Thereafter - 279 Total $ 108 531 (a) The 2018 cash flow of $44 has been agreed upon with Vantiv, Inc. (now Worldpay, Inc.), for settlement in January 2018 and was recognized as a gain in other noninterest income during the fourth quarter of 2017. The remaining estimated cash flows in this column (which include TRA benefits associated with the net exercise of the warrant in 2016 and the subsequent exchange of Vantiv Holding units in the third quarter of 2017) will be recognized in future periods when the related uncertainties are resolved. ( b) As part of the agreement the Bancorp entered into with Vantiv, Inc. on July 27, 2016, Vantiv, Inc. made payments to the Bancorp of $63 during the year ended December 31, 2017 and may be obligated to pay a total of approximately $108 to the Bancorp to terminate certain remaining TRA cash flows, initially estimated to be $394, upon the exercise of certain call options by Vantiv, Inc. (now Worldpay, Inc.), or certain put options by the Bancorp. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes | |
Applicable Income Taxes Included in the Consolidated Statements Of Income | The Bancorp and its subsidiaries file a consolidated federal income tax return. The following is a summary of applicable income taxes included in the Consolidated Statements of Income for the years ended December 31: ($ in millions) 2017 2016 2015 Current income tax expense: U.S. Federal income taxes $ 763 598 662 State and local income taxes 68 55 55 Foreign income taxes (3) - 13 Total current income tax expense 828 653 730 Deferred income tax benefit: U.S. Federal income taxes (252) (133) (78) State and local income taxes 1 (14) 6 Foreign income taxes - (1) 1 Total deferred income tax benefit (251) (148) (71) Applicable income tax expense $ 577 505 659 |
Reconciliation Between the Statutory U.S. Income Tax Rate and the Bancorp's Effective Tax Rate | The following is a reconciliation between the federal statutory corporate tax rate and the Bancorp’s effective tax rate for the years ended December 31: 2017 2016 2015 Federal statutory corporate tax rate 35.0 % 35.0 35.0 Increase (decrease) resulting from: State taxes, net of federal benefit 1.6 1.3 1.7 Tax-exempt income (1.2) (2.7) (1.7) Low-income housing tax credits (6.0) (7.9) (6.6) Other tax credits (0.5) (0.9) (0.9) U.S. tax legislation impact on deferred taxes (7.9) - - Other, net (0.2) (0.4) 0.3 Effective tax rate 20.8 % 24.4 27.8 |
Reconciliation of the Beginning and Ending Amounts of the Bancorp's Unrecognized Tax Benefits | The following table provides a reconciliation of the beginning and ending amounts of the Bancorp’s unrecognized tax benefits: ($ in millions) 2017 2016 2015 Unrecognized tax benefits at January 1 $ 24 13 11 Gross increases for tax positions taken during prior period 17 9 1 Gross decreases for tax positions taken during prior period (1) - - Gross increases for tax positions taken during current period 3 2 2 Settlements with taxing authorities (7) - - Lapse of applicable statute of limitations (2) - (1) Unrecognized tax benefits at December 31 (a) $ 34 24 13 (a ) Amounts represent unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. |
Deferred Income Taxes Included in Other Assets in the Consolidated Balance Sheets | Deferred income taxes are comprised of the following items at December 31: ($ in millions) 2017 2016 Deferred tax assets: Allowance for loan and lease losses $ 251 439 Deferred compensation 77 122 Reserve for unfunded commitments 34 56 Reserves 29 57 State net operating loss carryforwards 9 9 Other 102 223 Total deferred tax assets $ 502 906 Deferred tax liabilities: Lease financing $ 616 940 MSRs and related economic hedges 111 202 State deferred taxes 64 64 Bank premises and equipment 42 61 Investments in joint ventures and partnership interests 34 219 Other comprehensive income 21 34 Other 137 173 Total deferred tax liabilities $ 1,025 1,693 Total net deferred tax liability $ (523) (787) |
Retirement and Benefit Plans (T
Retirement and Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement and Benefit Plans | |
Defined Benefit Retirement Plans with an Underfunded Status | The following table summarizes the Plan as of and for the years ended December 31: ($ in millions) 2017 2016 Fair value of plan assets at January 1 $ 172 166 Actual return on assets 28 11 Contributions 6 20 Settlement (11) (15) Benefits paid (10) (10) Fair value of plan assets at December 31 $ 185 172 Projected benefit obligation at January 1 $ 206 220 Interest cost 8 9 Settlement (11) (15) Actuarial loss 16 2 Benefits paid (10) (10) Projected benefit obligation at December 31 $ 209 206 Underfunded projected benefit obligation at December 31 $ (24) (34) Accumulated benefit obligation at December 31 (a) $ 209 206 (a) Since the Plan’s benefits are frozen , the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2017 and 2016 . |
Net Periodic Benefit Cost and Other Changes In Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | The following table summarizes net periodic benefit cost and other changes in the Plan's assets and benefit obligations recognized in OCI for the years ended December 31: ($ in millions) 2017 2016 2015 Components of net periodic benefit cost: Interest cost $ 8 9 9 Expected return on assets (10) (11) (13) Amortization of net actuarial loss 7 11 10 Settlement 4 7 7 Net periodic benefit cost $ 9 16 13 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial (gain) loss $ (1) 2 9 Amortization of net actuarial loss (7) (11) (10) Settlement (4) (7) (7) Total recognized in other comprehensive income (12) (16) (8) Total recognized in net periodic benefit cost and other comprehensive income $ (3) - 5 |
Plan Assets Measured at Fair Value on a Recurring Basis | The following tables summarize plan assets measured at fair value on a recurring basis as of December 31: Fair Value Measurements Using (a) 2017 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Equity securities $ 73 - - 73 Mutual and exchange-traded funds: Money market funds 7 - - 7 International funds - 30 - 30 Domestic funds - 29 - 29 Debt funds - 1 - 1 Alternative strategies 1 9 - 10 Commodity funds 5 - - 5 Total mutual and exchange-traded funds $ 13 69 - 82 Debt securities: U.S. Treasury and federal agencies securities 8 2 - 10 Mortgage-backed securities: Agency residential mortgage-backed securities - 1 - 1 Agency commercial mortgage-backed securities - 2 - 2 Non-agency commercial mortgage-backed securities - 1 - 1 Asset-backed securities and other debt securities (b) - 16 - 16 Total debt securities $ 8 22 - 30 Total plan assets $ 94 91 - 185 For further information on fair value hierarchy levels, refer to Note 1 . Includes corporate bonds. Fair Value Measurements Using (a) 2016 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Equity securities (b) $ 56 - - 56 Mutual and exchange-traded funds: Money market funds 6 - - 6 International funds - 31 - 31 Domestic funds - 39 - 39 Debt funds - 5 - 5 Alternative strategies 1 9 - 10 Commodity funds 6 - - 6 Total mutual and exchange-traded funds $ 13 84 - 97 Debt securities: U.S. Treasury and federal agencies securities 7 1 - 8 Mortgage-backed securities: Agency residential mortgage-backed securities - 1 - 1 Agency commercial mortgage-backed securities - 2 - 2 Asset-backed securities and other debt securities (c) - 8 - 8 Total debt securities $ 7 12 - 19 Total plan assets $ 76 96 - 172 For further information on fair value hierarchy levels, refer to Note 1 . Includes holdings in Bancorp common stock. Includes corporate bonds. |
Plan Assumptions | The following table summarizes the weighted-average plan assumptions for the years ended December 31: 2017 2016 2015 For measuring benefit obligations at year end: (a) Discount rate 3.47 % 3.97 4.16 Expected return on plan assets 6.00 7.00 7.00 For measuring net periodic benefit cost: (a) Discount rate 3.97 4.16 3.82 Expected return on plan assets 6.00 7.00 7.00 (a) Since the Plan’s benefits were frozen , except for grandfathered employees, the rate of compensation increase is no longer applicable beginning in 2014 since minimal grandfathered employees are still accruing benefits. |
Weighted Average Allocation of Plan Assets | The following table provides the Bancorp’s targeted and actual weighted-average asset allocations by asset category for the years ended December 31: Targeted Range (b) 2017 2016 Equity securities 76 % 73 Bancorp common stock 1 2 Total equity securities (a) 60-90 % 77 75 Fixed-income securities 5-25 16 14 Alternative strategies 3-11 3 6 Cash 0-13 4 5 Total 100 % 100 Includes mutual and exchange- traded funds . These reflect the targeted ranges for both the years ended December 31, 2017 and 2016 . |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income | |
Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income | The tables below presents the activity of the components of OCI and AOCI for the years ended December 31: Total OCI Total AOCI Pre-tax Tax Net Beginning Net Ending 2017 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during the year $ 14 7 21 Reclassification adjustment for net losses on available-for-sale securities included in net income 3 1 4 Net unrealized gains on available-for-sale securities 17 8 25 101 25 126 Unrealized holding losses on cash flow hedge derivatives arising during the year (11) 4 (7) Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (19) 7 (12) Net unrealized losses on cash flow hedge derivatives (30) 11 (19) 10 (19) (9) Net actuarial gain arising during the year 1 - 1 Reclassification of amounts to net periodic benefit costs 11 (4) 7 Defined benefit pension plans, net 12 (4) 8 (52) 8 (44) Total $ (1) 15 14 59 14 73 Total OCI Total AOCI Pre-tax Tax Net Beginning Net Ending 2016 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding losses on available-for-sale securities arising during the year $ (196) 66 (130) Reclassification adjustment for net gains on available-for-sale securities included in net income (11) 4 (7) Net unrealized gains on available-for-sale securities (207) 70 (137) 238 (137) 101 Unrealized holding gains on cash flow hedge derivatives arising during the year 30 (11) 19 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (48) 17 (31) Net unrealized gains on cash flow hedge derivatives (18) 6 (12) 22 (12) 10 Net actuarial loss arising during the year (2) 1 (1) Reclassification of amounts to net periodic benefit costs 18 (6) 12 Defined benefit pension plans, net 16 (5) 11 (63) 11 (52) Total $ (209) 71 (138) 197 (138) 59 Total OCI Total AOCI Pre-tax Tax Net Beginning Net Ending 2015 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding losses on available-for-sale securities arising during the year $ (349) 122 (227) Reclassification adjustment for net gains on available-for-sale securities included in net income (16) 6 (10) Net unrealized gains on available-for-sale securities (365) 128 (237) 475 (237) 238 Unrealized holding gains on cash flow hedge derivatives arising during the year 74 (26) 48 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (75) 26 (49) Net unrealized gains on cash flow hedge derivatives (1) - (1) 23 (1) 22 Net actuarial loss arising during the year (9) 4 (5) Reclassification of amounts to net periodic benefit costs 17 (6) 11 Defined benefit pension plans, net 8 (2) 6 (69) 6 (63) Total $ (358) 126 (232) 429 (232) 197 |
Reclassification Out of Accumulated Other Comprehensive Income to Net Income | The table below presents reclassifications out of AOCI for the years ended December 31: Consolidated Statements of Components of AOCI: ($ in millions) Income Caption 2017 2016 2015 Net unrealized gains on available-for-sale securities: (b) Net (losses) gains included in net income Securities gains, net $ (3) 11 16 Income before income taxes (3) 11 16 Applicable income tax expense (1) (4) (6) Net income (4) 7 10 Net unrealized gains on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases 19 48 75 Income before income taxes 19 48 75 Applicable income tax expense (7) (17) (26) Net income 12 31 49 Net periodic benefit costs: (b) Amortization of net actuarial loss Employee benefits expense (a) (7) (11) (10) Settlements Employee benefits expense (a) (4) (7) (7) Income before income taxes (11) (18) (17) Applicable income tax expense 4 6 6 Net income (7) (12) (11) Total reclassifications for the period Net income $ 1 26 48 This AOCI component is included in the computation of net periodi c benefit cost. Refer to Note 21 f or information on the computation of net periodic benefit cost. Amounts in parentheses indicate reductions to net income. |
Common, Preferred and Treasur59
Common, Preferred and Treasury Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Common, Preferred and Treasury Stock | |
Share Activity Within Common, Preferred and Treasury Stock | The table presents a summary of the share activity within common, preferred and treasury stock for the years ended: Common Stock Preferred Stock Treasury Stock ($ in millions, except share data) Value Shares Value Shares Value Shares December 31, 2014 $ 2,051 923,892,581 $ 1,331 54,000 $ (1,972) 99,845,629 Shares acquired for treasury - - - - (847) 42,607,855 Impact of stock transactions under stock compensation plans, net - - - - 52 (3,593,406) Other - - - - 3 (47,811) December 31, 2015 $ 2,051 923,892,581 $ 1,331 54,000 $ (2,764) 138,812,267 Shares acquired for treasury - - - - (668) 34,633,221 Impact of stock transactions under stock compensation plans, net - - - - (4) 42,357 Other - - - - 3 (74,563) December 31, 2016 $ 2,051 923,892,581 $ 1,331 54,000 $ (3,433) 173,413,282 Shares acquired for treasury - - - - (1,588) 58,493,506 Impact of stock transactions under stock compensation plans, net - - - - 16 (1,693,503) Other - - - - 3 (125,597) December 31, 2017 $ 2,051 923,892,581 $ 1,331 54,000 $ (5,002) 230,087,688 |
Summary of the Bancorp's Accelerated Share Repurchase Transactions | The following table presents a summary of the Bancorp's accelerated share repurchase transactions that were entered into or settled during the years ended December 31, 2016 and 2017: Shares Repurchased on Shares Received from Total Shares Repurchase Date Amount ($ in millions) Repurchase Date Forward Contract Settlement Repurchased Settlement Date December 14, 2015 215 9,248,482 1,782,477 11,030,959 January 14, 2016 March 4, 2016 240 12,623,762 1,868,379 14,492,141 April 11, 2016 August 5, 2016 240 10,979,548 1,099,205 12,078,753 November 7, 2016 December 20, 2016 155 4,843,750 1,044,362 5,888,112 February 6, 2017 May 1, 2017 342 11,641,971 2,248,250 13,890,221 July 31, 2017 August 17, 2017 990 31,540,480 4,291,170 35,831,650 December 18, 2017 December 19, 2017 273 7,727,273 (a) (a) (a) The settlement of the transaction is expected to occur on or before March 19, 2018. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation | |
Number of Shares to be issued upon Exercise of Outstanding Stock-Based Awards and Remaining Shares Available for Future Issuance under all Equity Compensation Plans | The following table provides detail of the number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance under all of the Bancorp’s equity compensation plans approved by shareholders as of December 31, 2017 : Plan Category (shares in thousands) Number of Shares to be Issued Upon Exercise Weighted-Average Exercise Price Per Share Shares Available for Future Issuance Equity compensation plans 21,687 (a) SARs (b) - (a) RSAs 2,321 - (a) RSUs 6,986 - (a) Stock options 2 $16.50 (a) PSAs (c) - (a) Employee stock purchase plan 5,653 (d) Total shares 9,309 27,340 Under the 2017 Incentive Compensation Plan, 17.5 million shares were authorized for issuance as SARs, RSAs, RSUs, stock options, performance share or unit awards, dividend or dividend equivalent rights and stock awards . The number of shares to be issued upon exercise will be determined at exercise based on the difference between the gra nt price and the market price on the date of exercise and the calculation of taxes owed on the exercise . The number of shares to be issued is dependent upon the Bancorp achieving certain predefined performance targets and ranges from zero shares to approximately 2 million shares. Represents remaining shares of Fifth Third common stock under the Bancorp’s 1993 Stock Purchase Plan, as amended and restated, including an additional 1.5 million shares approved by shareholders on March 28, 2007 and an additional 12 million shares approved by shareholders on April 21, 2009 . |
Schedule of Share-based Payment Award, Stock Appreciation Rights, Valuation Assumptions | The weighted-average assumptions were as follows for the years ended December 31: 2017 2016 2015 Expected life (in years) 6 6 6 Expected volatility 37 % 37 35 Expected dividend yield 2.1 3.1 2.7 Risk-free interest rate 2.1 1.5 1.6 |
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity | 2017 2016 2015 Weighted- Weighted- Weighted- Number of SARs Average Grant Number of SARs Average Grant Number of SARs Average Grant SARs (in thousands, except per share data) Price Per Share Price Per Share Price Per Share Outstanding at January 1 40,041 $ 18.30 44,129 $ 19.14 45,590 $ 19.79 Granted 3,672 26.52 6,379 17.68 5,219 18.99 Exercised (6,953) 16.00 (6,291) 14.47 (3,242) 13.59 Forfeited or expired (4,831) 35.08 (4,176) 32.02 (3,438) 32.96 Outstanding at December 31 31,929 $ 17.22 40,041 $ 18.30 44,129 $ 19.14 Exercisable at December 31 21,403 $ 15.30 26,898 $ 18.28 29,721 $ 19.71 |
Outstanding and Exercisable SARs by Grant Price | The following table summarizes outstanding and exercisable SARs by grant price per share at December 31, 2017: Outstanding SARs Exercisable SARs Weighted- Weighted- Weighted- Average Remaining Weighted- Average Remaining Number of Average Grant Contractual Life Number of Average Grant Contractual Life SARs (in thousands, except per share data) SARs Price Per Share (in years) SARs Price Per Share (in years) Under $10.00 1,762 $ 3.98 1.3 1,762 $ 3.98 1.3 $10.01-$20.00 23,899 16.33 5.3 17,650 15.71 4.4 $20.01-$30.00 6,268 24.31 7.8 1,991 21.63 6.3 All SARs 31,929 $ 17.22 5.6 21,403 $ 15.30 4.3 |
Schedule of Share-Based Compensation, RSAs | 2017 2016 2015 Weighted-Average Weighted-Average Weighted-Average Grant-Date Grant-Date Grant-Date Fair Value Fair Value Fair Value RSAs (in thousands, except per share data) Shares Per Share Shares Per Share Shares Per Share Outstanding at January 1 4,638 $ 19.44 8,281 $ 18.88 7,253 $ 17.98 Granted 7 21.14 3 20.65 4,250 19.11 Released (2,063) 19.10 (3,090) 17.92 (2,580) 16.86 Forfeited (261) 19.75 (556) 19.20 (642) 18.64 Outstanding at December 31 2,321 $ 19.72 4,638 $ 19.44 8,281 $ 18.88 |
Unvested RSAs by Grant-Date Fair Value | The following table summarizes outstanding RSAs by grant-date fair value at December 31, 2017: Outstanding RSAs Weighted-Average Remaining Contractual Life RSAs (in thousands) Shares (in years) $15.01-$20.00 1,627 0.9 Over $20.00 694 0.5 All RSAs 2,321 0.8 |
Schedule of Share-Based Compensation, RSUs | 2017 2016 2015 Weighted-Average Weighted-Average Weighted-Average Grant-Date Grant-Date Grant-Date Fair Value Fair Value Fair Value RSUs (in thousands, except per unit data) Units Per Unit Units Per Unit Units Per Unit Outstanding at January 1 5,086 $ 17.84 371 $ 19.56 - $ - Granted 3,652 26.71 5,029 17.75 377 19.58 Released (1,194) 17.64 (79) 19.76 (5) 21.63 Forfeited (558) 21.02 (235) 17.89 (1) 19.46 Outstanding at December 31 6,986 $ 22.25 5,086 $ 17.84 371 $ 19.56 |
Unvested RSUs by Grant-Date Fair Value | The following table summarizes outstanding RSUs by grant-date fair value at December 31, 2017: Outstanding RSUs Weighted-Average Remaining Contractual Life RSUs (in thousands) Units (in years) $10.01-$15.00 407 0.6 $15.01-$20.00 2,973 1.2 $20.01-$25.00 228 1.0 $25.01-$30.00 3,360 1.7 $30.01-$35.00 18 2.0 All RSUs 6,986 1.4 |
Schedule of Share-based Compensation, Stock Options, Activity | 2017 2016 2015 Weighted-Average Weighted-Average Weighted-Average Number of Exercise Price Number of Exercise Price Number of Exercise Price Stock Options (in thousands, except per share data) Options Per Share Options Per Share Options Per Share Outstanding at January 1 25 $ 19.17 119 $ 14.97 265 $ 14.25 Exercised (18) 14.05 (94) 13.86 (126) 13.67 Forfeited or expired (5) 40.98 - - (20) 13.59 Outstanding at December 31 2 $ 16.50 25 $ 19.17 119 $ 14.97 Exercisable at December 31 2 $ 16.50 25 $ 19.17 119 $ 14.97 |
Outstanding and Exercisable Stock Options by Exercise Price | The following table summarizes outstanding and exercisable stock options by exercise price per share at December 31, 2017: Number of Options Weighted-Average Weighted-Average Remaining Exercise Price Contractual Life Stock Options (in thousands, except per share data) Per Share (in years) Under $10.00 1 $ 8.59 1.0 $10.01-$20.00 - - - $20.01-$30.00 1 24.41 - All stock options 2 $ 16.50 0.5 |
Other Noninterest Income and 61
Other Noninterest Income and Other Noninterest Expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Noninterest Income | |
Other Noninterest Income and Other Noninterest Expense | The following table presents the major components of other noninterest income and other noninterest expense for the years ended December 31: ($ in millions) 2017 2016 2015 Other noninterest income: Gain on sale of Vantiv, Inc. shares $ 1,037 - 331 Operating lease income 96 102 89 Cardholder fees 54 46 43 BOLI income 52 53 48 Equity method income from interest in Vantiv Holding, LLC 47 66 63 Income from the TRA associated with Vantiv, Inc. 44 313 80 Private equity investment income 36 11 28 Consumer loan and lease fees 23 23 23 Banking center income 20 20 21 Insurance income 8 11 14 Loss on swap associated with the sale of Visa, Inc. Class B Shares (80) (56) (37) Net (losses) gains on loan sales (2) 10 38 Gain on sale of certain retail branch operations - 19 - Gain on sale and exercise of the warrant associated with Vantiv Holding, LLC - 9 89 Valuation adjustments on the warrant associated with Vantiv Holding, LLC - 64 236 Net losses on disposition and impairment of bank premises and equipment - (13) (101) Other, net 22 10 14 Total other noninterest income $ 1,357 688 979 Other noninterest expense: Impairment on affordable housing investments $ 222 168 145 FDIC insurance and other taxes 127 126 99 Marketing 114 104 110 Loan and lease 102 110 118 Operating lease 87 86 74 Professional service fees 83 61 70 Losses and adjustments 59 73 55 Data processing 58 51 45 Travel 46 45 54 Postal and courier 42 46 45 Recruitment and education 35 37 33 Donations 28 23 29 Supplies 14 14 16 Insurance 12 15 17 Provision for the reserve for unfunded commitments - 23 4 Other, net 186 187 191 Total other noninterest expense $ 1,215 1,169 1,105 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share | |
Schedule Of Earnings Per Share Basic And Diluted [Table Text Block] | The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the years ended December 31: 2017 2016 2015 Average Per Share Average Per Share Average Per Share ($ in millions, except per share data) Income Shares Amount Income Shares Amount Income Shares Amount Earnings Per Share: Net income available to common shareholders 2,119 1,489 1,637 Less: Income allocated to participating securities 23 15 15 Net income allocated to common shareholders $ 2,096 728 2.88 1,474 757 1.95 1,622 799 2.03 Earnings Per Diluted Share: Net income available to common shareholders $ 2,119 1,489 1,637 Effect of dilutive securities: Stock-based awards - 13 - 7 - 9 Net income available to common shareholders 2,119 1,489 1,637 plus assumed conversions Less: Income allocated to participating securities 22 15 15 Net income allocated to common shareholders plus assumed conversions $ 2,097 741 2.83 1,474 764 1.93 1,622 808 2.01 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 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 $ 98 - - 98 Obligations of states and political subdivisions securities - 44 - 44 Mortgage-backed securities: Agency residential mortgage-backed securities - 15,319 - 15,319 Agency commercial mortgage-backed securities - 10,167 - 10,167 Non-agency commercial mortgage-backed securities - 3,293 - 3,293 Asset-backed securities and other debt securities - 2,218 - 2,218 Equity securities (a) 68 1 - 69 Available-for-sale and other securities (a) 166 31,042 - 31,208 Trading securities: U.S. Treasury and federal agencies securities 1 11 - 12 Obligations of states and political subdivisions securities - 22 - 22 Mortgage-backed securities: Residential mortgage-backed securities - 395 - 395 Asset-backed securities and other debt securities - 63 - 63 Equity securities 370 - - 370 Trading securities 371 491 - 862 Residential mortgage loans held for sale - 399 - 399 Residential mortgage loans (b) - - 137 137 MSRs (f) - - 858 858 Derivative assets: Interest rate contracts 1 505 8 514 Foreign exchange contracts - 124 - 124 Equity contracts - 20 - 20 Commodity contracts 39 126 - 165 Derivative assets (d) 40 775 8 823 Total assets $ 577 32,707 1,003 34,287 Liabilities: Derivative liabilities: Interest rate contracts $ 1 172 5 178 Foreign exchange contracts - 120 - 120 Equity contracts - - 137 137 Commodity contracts 38 129 - 167 Derivative liabilities (e) 39 421 142 602 Short positions (e) 25 6 - 31 Total liabilities $ 64 427 142 633 Excludes FHLB, FRB and DTCC restricted stock holdings totaling $ 248 , $ 362 and $ 2 , respectively, at December 31, 2017 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . During the year ended December 31, 2017 , no assets or liabilities were transferred between Level 1 and Level 2 . Included in other assets in the Consolidated Balance Sheets. Included in other liabilities in the Consolidated Balance Sheets. Fair Value Measurements Using December 31, 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 $1 , respectively, at December 31, 2016 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . During the year ended December 31, 2016 , no assets or liabilities were transferred between Level 1 and Level 2. Included in other assets in the Consolidated Balance Sheets. Included in other liabilities in the Consolidated Balance Sheet s. Effective Ja nuary 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. The servicing rights were measured at fair value at December 31, 2017 and were measured under the amortization m ethod at December 31, 2016. |
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Mortgage Derivatives, Equity Total For the year ended December 31, 2017 ($ in millions) Loans MSRs (d) Net (a) Derivatives Fair Value Balance, beginning of period $ 143 744 8 (91) 804 Total (losses) gains (realized/unrealized): Included in earnings 1 (122) 94 (80) (107) Purchases/originations - 236 (2) - 234 Settlements (23) - (97) 34 (86) Transfers into Level 3 (b) 16 - - - 16 Balance, end of period $ 137 858 3 (137) 861 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2017 (c) $ 1 (122) 10 (80) (191) Net interest rate derivatives include derivative assets and liabilities of $ 8 and $ 5 , respectively, as of December 31, 2017 . Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. 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 servici ng rights were measured at fair value at December 31, 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 year ended December 31, 2016 ($ in millions) Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 167 12 201 380 Total gains (losses) (realized/unrealized): Included in earnings (2) 115 17 130 Purchases - (3) - (3) Sale and exercise of warrant - - (334) (334) Settlements (40) (116) 25 (131) Transfers into Level 3 (b) 18 - - 18 Balance, end of period $ 143 8 (91) 60 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2016 (c) $ (2) 13 (56) (45) Net interest rate derivatives include derivative assets and liabilities of $ 13 and $ 5 , respect ively, as of December 31, 2016 . Net equity derivatives include derivative assets and liabilities of $ 0 and $ 91 , respectively, as of December 31, 2016 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Mortgage Derivatives, Derivatives, Total For the year ended December 31, 2015 ($ in millions) Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 108 10 366 484 Total gains (realized/unrealized): Included in earnings - 111 288 399 Purchases - (2) - (2) Sales and exercise of warrant - - (477) (477) Settlements (28) (107) 24 (111) Transfers into Level 3 (b) 87 - - 87 Balance, end of period $ 167 12 201 380 The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2015 (c) $ - 17 66 83 Net interest rate derivatives include derivative assets and liabilities of $ 15 and $ 3 , respectively, as of December 31, 2015 . Net equity derivatives include derivative assets and liabilities of $ 262 and $ 61 , respectively, as of December 31, 2015 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. |
Total Gains and Losses Included in Earnings for Assets and Liabilites Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Consolidated Statements of Income for the years ended December 31, 2017, 2016 and 2015 as follows: ($ in millions) 2017 2016 2015 Mortgage banking net revenue $ (29) 112 110 Corporate banking revenue 2 1 1 Other noninterest income (80) 17 288 Total (losses) gains $ (107) 130 399 The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at December 31, 2017, 2016 and 2015 were recorded in the Consolidated Statements of Income as follows: ($ in millions) 2017 2016 2015 Mortgage banking net revenue $ (113) 10 16 Corporate banking revenue 2 1 1 Other noninterest income (80) (56) 66 Total (losses) gains $ (191) (45) 83 |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of December 31, 2017 and 2016 and for which a nonrecurring fair value adjustment was recorded during the years ended December 31, 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 As of December 31, 2017 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2017 Commercial loans held for sale $ - - 1 1 (33) Commercial and industrial loans - - 327 327 (99) Commercial mortgage loans - - 19 19 (12) Commercial leases - - 4 4 (6) OREO - - 27 27 (10) Bank premises and equipment - - 24 24 (6) Operating lease equipment - - 60 60 (42) Private equity investments - - 8 8 (1) Affordable housing investments - - 1,178 1,178 (68) Total $ - - 1,648 1,648 (277) Fair Value Measurements Using Total (Losses) Gains As of December 31, 2016 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2016 Commercial loans held for sale $ - - 5 5 (32) Commercial and industrial loans - - 412 412 (166) Commercial mortgage loans - - 15 15 (4) Commercial construction loans - - - - 2 Commercial leases - - 3 3 (3) MSRs (a) - - 744 744 7 OREO - - 42 42 (17) Bank premises and equipment - - 28 28 (31) Operating lease equipment - - 37 37 (9) Private equity investments 60 60 (9) Total $ - - 1,346 1,346 (262) 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 December 31, 2017 and were measured under the amortization method at December 31, 2016. |
Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Inputs | The following tables present information as of December 31, 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 December 31, 2017 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted- Average Residential mortgage loans $ 137 Loss rate model Interest rate risk factor (10.6) - 14.5% 3.1% Credit risk factor 0 - 52.1% 1.4% MSRs 858 Discounted cash flow Prepayment speed 0 - 98.1% (Fixed) 11.4% (Adjustable) 24.6% OAS spread (bps) 450 - 1,515 (Fixed) 549 (Adjustable) 785 IRLCs, net 8 Discounted cash flow Loan closing rates 12.5 - 97.7% 71.8% Swap associated with the sale of Visa, Inc. (137) Discounted cash flow Timing of the resolution 12/31/2020 - 8/15/2021 Class B Shares of the Covered Litigation 12/31/2023 As of December 31, 2016 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted- Average Residential mortgage loans $ 143 Loss rate model Interest rate risk factor (11.5) - 13.8% 2.3% Credit risk factor 0 - 75.6% 1.4% IRLCs, net 12 Discounted cash flow Loan closing rates 23.8 - 99.5% 76.8% Swap associated with the sale of Visa, Inc. (91) Discounted cash flow Timing of the resolution 12/31/2018 - 8/24/2020 Class B Shares of the Covered Litigation 12/31/2022 The following tables present information as of December 31, 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 December 31, 2017 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 1 Appraised value Appraised value NM NM Costs to sell NM 10.0% Commercial and industrial loans 327 Appraised value Collateral value NM NM Commercial mortgage loans 19 Appraised value Collateral value NM NM Commercial leases 4 Appraised value Collateral value NM NM OREO 27 Appraised value Appraised value NM NM Bank premises and equipment 24 Appraised value Appraised value NM NM Operating lease equipment 60 Appraised value Appraised value NM NM Private equity investments 8 Liquidity discount applied Liquidity discount 2.5 - 15.0% 5.8% to fund's net asset value Affordable housing investments 1,178 Appraised value Appraised value NM NM As of December 31, 2016 ($ in millions) Significant Unobservable Ranges of Financial Instrument Fair Value Valuation Technique Inputs Inputs Weighted-Average Commercial loans held for sale $ 5 Appraised value Appraised value NM NM Commercial and industrial loans 412 Appraised value Collateral value NM NM Commercial mortgage loans 15 Appraised value Collateral value NM NM Commercial construction loans - Appraised value Collateral value NM NM Commercial leases 3 Appraised value Appraised value NM NM MSRs 744 Discounted cash flow Prepayment speed 0.7 - 100% (Fixed) 10.2% (Adjustable) 25.3% OAS spread (bps) 100 - 1,515 (Fixed) 654 (Adjustable) 738 OREO 42 Appraised value Appraised value NM NM Bank premises and equipment 28 Appraised value Appraised value NM NM Operating lease equipment 37 Appraised value Appraised value NM NM Private equity investments 60 Liquidity discount applied Liquidity discount 5.0 - 37.5% 12.8% to fund's net asset value |
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 December 31, 2017 Residential mortgage loans measured at fair value $ 536 522 14 Past due loans of 90 days or more 5 5 - 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 | The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis: Net Carrying Fair Value Measurements Using Total As of December 31, 2017 ($ in millions) Amount Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and due from banks $ 2,514 2,514 - - 2,514 Other securities 612 - 612 - 612 Held-to-maturity securities 24 - - 24 24 Other short-term investments 2,753 2,753 - - 2,753 Loans and leases held for sale 93 - - 93 93 Portfolio loans and leases: Commercial and industrial loans 40,519 - - 41,718 41,718 Commercial mortgage loans 6,539 - - 6,490 6,490 Commercial construction loans 4,530 - - 4,560 4,560 Commercial leases 4,054 - - 3,705 3,705 Residential mortgage loans 15,365 - - 15,996 15,996 Home equity 6,968 - - 7,410 7,410 Automobile loans 9,074 - - 8,832 8,832 Credit card 2,182 - - 2,616 2,616 Other consumer loans 1,526 - - 1,621 1,621 Unallocated ALLL (120) - - - - Total portfolio loans and leases, net $ 90,637 - - 92,948 92,948 Financial liabilities: Deposits $ 103,162 - 103,123 - 103,123 Federal funds purchased 174 174 - - 174 Other short-term borrowings 4,012 - 4,012 - 4,012 Long-term debt 14,904 15,045 529 - 15,574 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 and leases 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 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 |
Regulatory Capital Requiremen64
Regulatory Capital Requirements and Capital Ratios (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements and Capital Ratios | |
Capital and Risk-Based Capital and Leverage Ratios for the Bancorp and its Significant Subsidiary Banks | The following table presents capital and risk-based capital and leverage ratios for the Bancorp and its banking subsidiary at December 31: 2017 2016 ($ in millions) Amount Ratio Amount Ratio CET1 capital (to risk-weighted assets): Fifth Third Bancorp $ 12,517 10.61 % $ 12,426 10.39 % Fifth Third Bank 14,008 12.06 14,015 11.92 Tier I risk-based capital (to risk-weighted assets): Fifth Third Bancorp 13,848 11.74 13,756 11.50 Fifth Third Bank 14,008 12.06 14,015 11.92 Total risk-based capital (to risk-weighted assets): Fifth Third Bancorp 17,887 15.16 17,972 15.02 Fifth Third Bank 16,126 13.88 16,175 13.76 Tier I leverage (to quarterly average assets): Fifth Third Bancorp 13,848 10.01 13,756 9.90 Fifth Third Bank 14,008 10.32 14,015 10.30 |
Parent Company Financial Stat65
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Parent Company Financial Statements | |
Condensed Statements of Income (Parent Company Only) | Condensed Statements of Income (Parent Company Only) For the years ended December 31 ($ in millions) 2017 2016 2015 Income Dividends from subsidiaries: Consolidated nonbank subsidiaries (a) $ 2,343 1,886 1,040 Interest on loans to subsidiaries 21 18 15 Total income 2,364 1,904 1,055 Expenses Interest 176 171 178 Other 42 18 22 Total expenses 218 189 200 Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries 2,146 1,715 855 Applicable income tax benefit 68 63 69 Income Before Change in Undistributed Earnings of Subsidiaries 2,214 1,778 924 Change in undistributed earnings (20) (214) 788 Net Income $ 2,194 1,564 1,712 Other Comprehensive Income - - - Comprehensive Income Attributable to Bancorp $ 2,194 1,564 1,712 (a) The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $2 .3 billion , $1.9 billion and $1.0 billion for the years ended December 31, 2017 , 2016 and 2015 , respectively . |
Condensed Balance Sheets (Parent Company Only) | Condensed Balance Sheets (Parent Company Only) As of December 31 ($ in millions) 2017 2016 Assets Cash $ 80 130 Short-term investments 3,493 3,074 Loans to subsidiaries: Nonbank subsidiaries 843 969 Total loans to subsidiaries 843 969 Investment in subsidiaries: Nonbank subsidiaries 17,695 17,588 Total investment in subsidiaries 17,695 17,588 Goodwill 80 80 Other assets 329 366 Total Assets $ 22,520 22,207 Liabilities Other short-term borrowings $ 315 344 Accrued expenses and other liabilities 472 461 Long-term debt (external) 5,348 5,170 Total Liabilities $ 6,135 5,975 Equity Common stock $ 2,051 2,051 Preferred stock 1,331 1,331 Capital surplus 2,790 2,756 Retained earnings 15,122 13,441 Accumulated other comprehensive income 73 59 Treasury stock (5,002) (3,433) Noncontrolling interests 20 27 Total Equity 16,385 16,232 Total Liabilities and Equity $ 22,520 22,207 |
Condensed Statements of Cash Flows (Parent Company Only) | Condensed Statements of Cash Flows (Parent Company Only) For the years ended December 31 ($ in millions) 2017 2016 2015 Operating Activities Net income $ 2,194 1,564 1,712 Adjustments to reconcile net income to net cash provided by operating activities: Provision for (benefit from) deferred income taxes 2 - (4) Net change in undistributed earnings 20 214 (788) Net change in: Other assets 37 14 (18) Accrued expenses and other liabilities (15) (35) 31 Net Cash Provided by Operating Activities 2,238 1,757 933 Investing Activities Net change in: Short-term investments (419) 654 (539) Loans to subsidiaries 126 13 2 Net Cash (Used in) Provided by Investing Activities (293) 667 (537) Financing Activities Net change in other short-term borrowings (29) (60) (22) Dividends paid on common stock (430) (402) (422) Dividends paid on preferred stock (75) (52) (75) Proceeds from issuance of long-term debt 697 - 1,099 Repayment of long-term debt (500) (1,250) - Repurchase of treasury stock and related forward contract (1,605) (661) (850) Other, net (53) 3 2 Net Cash Used in Financing Activities (1,995) (2,422) (268) (Decrease) Increase in Cash (50) 2 128 Cash at Beginning of Period 130 128 - Cash at End of Period $ 80 130 128 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Segments | |
Results of Operations and Average Assets by Segment | The following tables present the results of operations and assets by business segment for the years ended December 31: Wealth General Commercial Branch Consumer and Asset Corporate 2017 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,652 1,782 240 154 (30) - 3,798 Provision for loan and lease losses 38 153 40 6 24 - 261 Net interest income after provision for loan and lease losses 1,614 1,629 200 148 (54) - 3,537 Total noninterest income 838 (c) 756 (b) 237 419 1,106 (132) (a) 3,224 Total noninterest expense 1,496 1,621 467 454 84 (132) 3,990 Income (loss) before income taxes 956 764 (30) 113 968 - 2,771 Applicable income tax expense (benefit) 150 270 (11) 39 129 - 577 Net income (loss) 806 494 (19) 74 839 - 2,194 Less: Net income attributable to noncontrolling interests - - - - - - - Net income (loss) attributable to Bancorp 806 494 (19) 74 839 - 2,194 Dividends on preferred stock - - - - 75 - 75 Net income (loss) available to common shareholders $ 806 494 (19) 74 764 - 2,119 Total goodwill $ 613 1,655 - 177 - - 2,445 Total assets $ 58,568 57,892 22,218 9,485 (5,970) (d) - 142,193 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Consolidated Statements of Income . Includes impairment charges of $ 7 for branches and land. For more information refer to Note 7 and Note 27 . Includes impairment charges of $ 52 for operating lease equipment. For more information refer to Note 8 and Note 27 . Includes bank premises and equipment of $ 27 classified as held for sale. For more information, refer to Note 7 . Wealth General Commercial Branch Consumer and Asset Corporate 2016 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,814 1,669 248 168 (284) - 3,615 Provision for loan and lease losses 76 138 44 1 84 - 343 Net interest income after provision for loan and lease losses 1,738 1,531 204 167 (368) - 3,272 Total noninterest income 907 (c) 755 (b) 303 399 463 (131) (a) 2,696 Total noninterest expense 1,426 1,621 475 422 90 (131) 3,903 Income before income taxes 1,219 665 32 144 5 - 2,065 Applicable income tax expense 224 234 12 51 (16) - 505 Net income 995 431 20 93 21 - 1,560 Less: Net income attributable to noncontrolling interests - - - - (4) - (4) Net income attributable to Bancorp 995 431 20 93 25 - 1,564 Dividends on preferred stock - - - - 75 - 75 Net income available to common shareholders $ 995 431 20 93 (50) - 1,489 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 58,092 55,940 22,041 9,487 (3,383) (d) - 142,177 Reve nue sharing agreements between wealth and asset management and b ranch b anking are eliminated in the Consolidated Statements of Income. Includes impairment charges of $ 32 for branches and land. For more information refer to Note 7 and Note 27 . Includes impairment charges of $ 20 for operating lease equipment. For more information, refer to Note 8 and Note 27 . Includes bank premises and equipment of $ 39 classified as held for sale. For more information, refer to Note 7 . Wealth General Commercial Branch Consumer and Asset Corporate 2015 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,625 1,555 249 128 (24) - 3,533 Provision for loan and lease losses 298 151 44 3 (100) - 396 Net interest income after provision for loan and lease losses 1,327 1,404 205 125 76 - 3,137 Total noninterest income 853 (c) 652 (b) 407 418 822 (149) (a) 3,003 Total noninterest expense 1,369 1,598 440 455 62 (149) 3,775 Income before income taxes 811 458 172 88 836 - 2,365 Applicable income tax expense 93 161 61 30 314 - 659 Net income 718 297 111 58 522 - 1,706 Less: Net income attributable to noncontrolling interests - - - - (6) - (6) Net income attributable to Bancorp 718 297 111 58 528 - 1,712 Dividends on preferred stock - - - - 75 - 75 Net income available to common shareholders $ 718 297 111 58 453 - 1,637 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 58,105 53,609 22,656 9,939 (3,261) (d) - 141,048 Revenue sharing agreements between wealth and asset management and b ranch b anking are eliminated in the Consolidated Statements of Income. Includes impairment charges of $ 109 for branches and land. For more information refer to Note 7 . Includes impairment charges of $ 36 for operating lease equipment. For more information, refer to Note 8 . Includes bank premises and equipment of $ 81 classified as held for sale . |
Summary of Significant Policies
Summary of Significant Policies (Summary of Significant Accounting and Reporting Policies - Additional Information) (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Significant Accounting Policies | |
Established threshold impaired loans on accrual status | $ 1 |
Larger commercial loans, subject to impairment review | 1 |
Established threshold commercial loans not subject to specific allowance calculations | 1 |
Deferred gains on sale-leaseback transactions | $ 11 |
Supplemental Cash Flow (Noncash
Supplemental Cash Flow (Noncash Investing and Financing Activities) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest paid | |||
Interest | $ 699 | $ 578 | $ 475 |
Cash Payments: | |||
Income taxes | 1,035 | 800 | 400 |
Noncash Investing and Financing Activities: | |||
Portfolio loans to loans held for sale | 255 | 238 | 487 |
Loans held for sale to portfolio loans | 29 | 28 | 288 |
Portfolio loans to OREO | $ 34 | $ 49 | $ 105 |
Restrictions (Restrictions on C
Restrictions (Restrictions on Cash, Dividends and Other Capital Actions- Additional Information) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Dec. 31, 2015 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2011 | |
Restricted Cash and Cash Equivalents Items | |||||||||||
Banking Subsidiary Reserve Requirement | $ 1,500,000,000 | $ 1,600,000,000 | |||||||||
Dividend Received From Nonbank Companies And Related Subsidiaries | 2,300,000,000 | 1,900,000,000 | |||||||||
BHC stress test threshold | $ 50,000,000,000 | ||||||||||
Increase to quarterly common stock dividend | $ 0.16 | ||||||||||
Gain on sale of Vantiv, Inc. shares | 1,037,000,000 | 0 | $ 331,000,000 | ||||||||
Vantiv Holding, LLC | |||||||||||
Restricted Cash and Cash Equivalents Items | |||||||||||
Gain on sale of Vantiv, Inc. shares | $ 1,037,000,000 | $ 331,000,000 | $ 125,000,000 | $ 85,000,000 | $ 242,000,000 | $ 157,000,000 | $ 115,000,000 | 1,000,000,000 | |||
Yearly Average | |||||||||||
Restricted Cash and Cash Equivalents Items | |||||||||||
Banking Subsidiary Reserve Requirement | $ 1,400,000,000 | $ 1,600,000,000 | |||||||||
CCAR authorization | |||||||||||
Restricted Cash and Cash Equivalents Items | |||||||||||
Common stock dividends restrictions | The increase in the quarterly common stock dividend to $0.16 from $0.14 beginning in the third quarter of 2017 and to $0.18 beginning in the second quarter of 2018 | ||||||||||
Stock Repurchase Authorization Amount | $ 1,161,000,000 | ||||||||||
CCAR authorization | Repurchases related to share issuances under employee benefit plans | |||||||||||
Restricted Cash and Cash Equivalents Items | |||||||||||
Stock Repurchase Authorization Amount | 88,000,000 | ||||||||||
CCAR authorization | Repurchases related to previously-recognized TRA transaction after-tax gains | |||||||||||
Restricted Cash and Cash Equivalents Items | |||||||||||
Stock Repurchase Authorization Amount | $ 48,000,000 |
Securities (Available-for-Sale
Securities (Available-for-Sale and Held-to-Maturity Securities) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment Holdings | |||
Available-for-sale securities, fair value | [1] | $ 31,820 | $ 31,183 |
Available-for-sale securities, unrealized losses | (136) | (191) | |
Available-for-sale securities, unrealized gains | 312 | 350 | |
Available-for-sale and other securities, Amortized Cost | 31,644 | 31,024 | |
Held-to-maturity securities, fair value | 24 | 26 | |
Held-to-maturity, unrealized losses | 0 | 0 | |
Held-to-maturity, unrealized gains | 0 | 0 | |
Held-to-maturity securities, amortized cost | [2] | 24 | 26 |
U.S. Treasury and federal agencies | |||
Investment Holdings | |||
Available-for-sale securities, fair value | 98 | 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 | 98 | 547 | |
Obligations of states and political subdivisions | |||
Investment Holdings | |||
Available-for-sale securities, fair value | 44 | 45 | |
Available-for-sale securities, unrealized losses | 0 | 0 | |
Available-for-sale securities, unrealized gains | 1 | 1 | |
Available-for-sale and other securities, Amortized Cost | 43 | 44 | |
Held-to-maturity securities, fair value | 22 | 24 | |
Held-to-maturity, unrealized losses | 0 | 0 | |
Held-to-maturity, unrealized gains | 0 | 0 | |
Held-to-maturity securities, amortized cost | 22 | 24 | |
Agency mortgage-backed securities | Residential mortgage backed securities | |||
Investment Holdings | |||
Available-for-sale securities, fair value | [3] | 15,319 | 15,608 |
Available-for-sale securities, unrealized losses | [3] | (80) | (95) |
Available-for-sale securities, unrealized gains | [3] | 118 | 178 |
Available-for-sale and other securities, Amortized Cost | [3] | 15,281 | 15,525 |
Agency mortgage-backed securities | Commercial mortgage-backed securities | |||
Investment Holdings | |||
Available-for-sale securities, fair value | 10,167 | 9,055 | |
Available-for-sale securities, unrealized losses | (38) | (61) | |
Available-for-sale securities, unrealized gains | 92 | 87 | |
Available-for-sale and other securities, Amortized Cost | 10,113 | 9,029 | |
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | |||
Investment Holdings | |||
Available-for-sale securities, fair value | 3,293 | 3,112 | |
Available-for-sale securities, unrealized losses | (5) | (15) | |
Available-for-sale securities, unrealized gains | 51 | 51 | |
Available-for-sale and other securities, Amortized Cost | 3,247 | 3,076 | |
Asset-backed securities and other debt securities | |||
Investment Holdings | |||
Available-for-sale securities, fair value | 2,218 | 2,116 | |
Available-for-sale securities, unrealized losses | (11) | (18) | |
Available-for-sale securities, unrealized gains | 46 | 28 | |
Available-for-sale and other securities, Amortized Cost | 2,183 | 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 | [4] | 681 | 698 |
Available-for-sale securities, unrealized losses | [4] | (2) | (2) |
Available-for-sale securities, unrealized gains | [4] | 4 | 3 |
Available-for-sale and other securities, Amortized Cost | [4] | $ 679 | $ 697 |
[1] | Amortized cost of $ 31,644 and $ 31,024 at December 31, 2017 and 2016 , respectively. | ||
[2] | Fair value of $ 24 and $ 26 at December 31, 2017 and 2016 , respectively. | ||
[3] | Includes interest-only mortgage-backed securities of $ 34 and $ 60 as of December 31, 2017 and 2016 , respectively, recorded at fair value with fair value changes recorded in securities gains, net , i n the Consolidated Statements of Income . | ||
[4] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 362 , and $ 2 , respectively, at December 31, 2017 and $ 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-Sal71
Securities (Available-for-Sale and Held-to-Maturity Securities) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment Holdings | |||
FHLB, restricted stock holdings | $ 248 | $ 248 | |
FRB, restricted stock holdings | 362 | 358 | |
Available-for-sale and other securities | [1] | 31,820 | 31,183 |
DTCC, restricted stock holdings | 2 | 1 | |
Interest-Only Mortgage Backed Securities | |||
Investment Holdings | |||
Available-for-sale and other securities | $ 34 | $ 60 | |
[1] | Amortized cost of $ 31,644 and $ 31,024 at December 31, 2017 and 2016 , respectively. |
Securities (Gains and Losses Re
Securities (Gains and Losses Recognized in Income from Trading Securities) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Securities | ||||
Realized gains | $ 85 | $ 72 | $ 97 | |
Realized losses | 34 | 45 | 76 | |
OTTI | [1] | 54 | 16 | 5 |
Net realized gains (losses) on available-for-sale and other securities | (3) | 11 | 16 | |
Total trading securities gains (losses) | 10 | 0 | (7) | |
Total Available For Sale And Trading Securities Gains Losses | $ 7 | $ 11 | $ 9 | |
[1] | (a) Included in securities gains, net, in the Consolidated Statements of Income. |
Securities (Gains and Losses 73
Securities (Gains and Losses Recognized in Income from Trading Securities) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment Holdings | |||
Total trading securities gains (losses) | $ 10 | $ 0 | $ (7) |
Corporate Banking Revenue and Wealth and Asset Management Revenue [Member] | |||
Investment Holdings | |||
Total trading securities gains (losses) | 1 | (3) | (4) |
Interest-Only Mortgage Backed Securities | |||
Investment Holdings | |||
Net gains/losses on interest-only mortgage-backed securities | $ (2) | $ (4) | $ (4) |
Securities (Securities - Additi
Securities (Securities - Additional Information) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investment Holdings | ||
Trading securities | $ 862 | $ 410 |
Securities with a fair value, pledged as collateral | $ 7,800 | $ 10,100 |
Securities (Other Than Temporar
Securities (Other Than Temporary Impairment Recognized) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Investments, Unrealized Loss Position | ||||
OTTI | [1] | $ (54) | $ (16) | $ (5) |
Available-for-sale securities | Equity securities | ||||
Investments, Unrealized Loss Position | ||||
OTTI | 0 | (1) | 0 | |
Available-for-sale securities | Debt securities | ||||
Investments, Unrealized Loss Position | ||||
OTTI | $ (54) | $ (15) | $ (5) | |
[1] | (a) Included in securities gains, net, in the Consolidated Statements of Income. |
Securities (Amortized Cost and
Securities (Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Securities) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt securities: | |||
Less than 1 year | [1] | $ 140 | |
1-5 years | [1] | 9,695 | |
5-10 years | [1] | 17,592 | |
Over 10 years | [1] | 3,538 | |
Equity securities | 679 | ||
Available-for-sale and other securities, Amortized Cost | 31,644 | $ 31,024 | |
Debt securities: | |||
Less than 1 year | [1] | 141 | |
1-5 years | [1] | 9,707 | |
5-10 years | [1] | 17,734 | |
Over 10 years | [1] | 3,557 | |
Equity securities | 681 | ||
Available-for-sale and other securities, fair value | [2] | 31,820 | 31,183 |
Debt securities: | |||
Less than 1 year | [1] | 5 | |
1-5 years | [1] | 13 | |
5-10 years | [1] | 4 | |
Over 10 years | [1] | 2 | |
Equity securities | 0 | ||
Held-to-maturity securities, amortized cost | [3] | 24 | 26 |
Debt securities: | |||
Less than 1 year | [1] | 5 | |
1-5 years | [1] | 13 | |
5-10 years | [1] | 4 | |
Over 10 years | [1] | 2 | |
Equity securities | 0 | ||
Held-to-maturity securities, fair value | $ 24 | $ 26 | |
[1] | (a) Actual maturities may differ from contractu al maturities when a right to call or prepay obligations exists with or without call or prepayment penalties. | ||
[2] | Amortized cost of $ 31,644 and $ 31,024 at December 31, 2017 and 2016 , respectively. | ||
[3] | Fair value of $ 24 and $ 26 at December 31, 2017 and 2016 , respectively. |
Securities (Fair Value and Gros
Securities (Fair Value and Gross Unrealized Losses on Available-for-Sale Securities) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | $ 11,101 | $ 11,079 | |
Less than 12 months Unrealized Losses | (85) | (172) | |
12 months or more Fair Value | 1,573 | 545 | |
12 months or more Unrealized Losses | (51) | (19) | |
Total Fair Value | 12,674 | 11,624 | |
Total Unrealized Losses | (136) | (191) | |
U.S. Treasury and federal agencies | |||
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | 98 | 199 | |
Less than 12 months Unrealized Losses | 0 | 0 | |
12 months or more Fair Value | 0 | 0 | |
12 months or more Unrealized Losses | 0 | 0 | |
Total Fair Value | 98 | 199 | |
Total Unrealized Losses | 0 | 0 | |
Agency mortgage-backed securities | Residential mortgage backed securities | |||
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | 7,337 | 6,223 | |
Less than 12 months Unrealized Losses | (59) | (88) | |
12 months or more Fair Value | 479 | 172 | |
12 months or more Unrealized Losses | (21) | (7) | |
Total Fair Value | 7,816 | 6,395 | |
Total Unrealized Losses | [1] | (80) | (95) |
Agency mortgage-backed securities | Commercial mortgage-backed securities | |||
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | 2,900 | 3,183 | |
Less than 12 months Unrealized Losses | (22) | (61) | |
12 months or more Fair Value | 526 | 0 | |
12 months or more Unrealized Losses | (16) | 0 | |
Total Fair Value | 3,426 | 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 | 449 | 1,052 | |
Less than 12 months Unrealized Losses | (2) | (15) | |
12 months or more Fair Value | 145 | 0 | |
12 months or more Unrealized Losses | (3) | 0 | |
Total Fair Value | 594 | 1,052 | |
Total Unrealized Losses | (5) | (15) | |
Asset-backed securities and other debt securities | |||
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | 317 | 422 | |
Less than 12 months Unrealized Losses | (2) | (8) | |
12 months or more Fair Value | 386 | 336 | |
12 months or more Unrealized Losses | (9) | (10) | |
Total Fair Value | 703 | 758 | |
Total Unrealized Losses | (11) | (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 | (2) | (2) | |
Total Fair Value | 37 | 37 | |
Total Unrealized Losses | [2] | $ (2) | $ (2) |
[1] | Includes interest-only mortgage-backed securities of $ 34 and $ 60 as of December 31, 2017 and 2016 , respectively, recorded at fair value with fair value changes recorded in securities gains, net , i n the Consolidated Statements of Income . | ||
[2] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 362 , and $ 2 , respectively, at December 31, 2017 and $ 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 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and leases held for sale: | |||
Loans held for sale | [1] | $ 492 | $ 751 |
Portfolio loans and leases: | |||
Commercial and industrial loans | 41,170 | 41,676 | |
Commercial mortgage loans | 6,604 | 6,899 | |
Commercial construction loans | 4,553 | 3,903 | |
Commercial leases | 4,068 | 3,974 | |
Residential mortgage loans | 15,591 | 15,051 | |
Home equity | 7,014 | 7,695 | |
Automobile loans | 9,112 | 9,983 | |
Credit card | 2,299 | 2,237 | |
Other consumer loans and leases | 1,559 | 680 | |
Portfolio loans and leases | [2],[3] | 91,970 | 92,098 |
Commercial Portfolio Segment | |||
Portfolio loans and leases: | |||
Portfolio loans and leases | 56,395 | 56,452 | |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Loans and leases held for sale: | |||
Loans held for sale | 0 | 60 | |
Commercial Portfolio Segment | Commercial mortgage loans | |||
Loans and leases held for sale: | |||
Loans held for sale | 6 | 5 | |
Residential Portfolio Segment | Residential mortgage loans | |||
Loans and leases held for sale: | |||
Loans held for sale | 486 | 686 | |
Consumer Portfolio Segment | |||
Portfolio loans and leases: | |||
Portfolio loans and leases | $ 35,575 | $ 35,646 | |
[1] | Includes $ 399 and $ 686 of residential mortgage loans held for sale measured at fair value at December 31, 2017 and 2016 , respectively. | ||
[2] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . | ||
[3] | Includes $ 137 and $ 143 of residential mortgage loans measured at fair value at December 31, 2017 and 2016 , respecti vely. |
Loans & Leases (Loans and Lea79
Loans & Leases (Loans and Leases - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Accounts Notes Loans And Financing Receivable [Table][Abstract] | ||
Unamortized premiums and discounts, deferred loan fees and costs, and fair value adjustments | $ 282 | $ 240 |
Unearned Income | 523 | 503 |
Loans pledged at the FHLB | 13,000 | 13,100 |
Loans pledged at the FRB | 39,800 | 40,000 |
Direct Financing Leases | 3,400 | 3,300 |
Leveraged leases | 674 | 701 |
Leveraged leases, pre-tax income (loss) | 11 | 38 |
Gain On Early Termination Of Leverage Leases | 16 | |
Leveraged leases, tax expense (benefit) | 6 | 10 |
Minimum future lease payments receivable - 2018 | 865 | |
Minimum future lease payments receivable - 2019 | 814 | |
Minimum future lease payments receivable - 2020 | 625 | |
Minimum future lease payments receivable - 2021 | 463 | |
Minimum future lease payments receivable - 2022 | 414 | |
Residual value write-downs related to commercial leases | 4 | $ 1 |
Remeasurement of leveraged leases | 27 | |
Leveraged leases, pre-tax income (loss), excluding remeasurement | $ 16 |
Loans & Leases (Total Loans And
Loans & Leases (Total Loans And Leases Managed By The Bancorp) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | $ 92,462 | $ 92,849 |
Balance of Loans 90 days or More Past Due | 97 | 84 |
Net Charge-Offs | 298 | 362 |
Commercial and Industrial Loans | Commercial Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 41,170 | 41,736 |
Balance of Loans 90 days or More Past Due | 3 | 4 |
Net Charge-Offs | 111 | 172 |
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 | 6,610 | 6,904 |
Balance of Loans 90 days or More Past Due | 0 | 0 |
Net Charge-Offs | 12 | 15 |
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 | 4,553 | 3,903 |
Balance of Loans 90 days or More Past Due | 0 | 0 |
Net Charge-Offs | (1) | |
Net Recoveries | 0 | |
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 | 4,068 | 3,974 |
Balance of Loans 90 days or More Past Due | 0 | 0 |
Net Charge-Offs | 2 | 4 |
Residential Mortgage | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 16,077 | 15,737 |
Balance of Loans 90 days or More Past Due | 57 | 49 |
Net Charge-Offs | 7 | 10 |
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 | 7,014 | 7,695 |
Balance of Loans 90 days or More Past Due | 0 | 0 |
Net Charge-Offs | 19 | 27 |
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 | 9,112 | 9,983 |
Balance of Loans 90 days or More Past Due | 10 | 9 |
Net Charge-Offs | 37 | 35 |
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 | 2,299 | 2,237 |
Balance of Loans 90 days or More Past Due | 27 | 22 |
Net Charge-Offs | 84 | 80 |
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 | 1,559 | 680 |
Balance of Loans 90 days or More Past Due | 0 | 0 |
Net Charge-Offs | 26 | 20 |
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 | 492 | 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 | $ 91,970 | $ 92,098 |
Loans & Leases (Investment in L
Loans & Leases (Investment in Lease Financing) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable | |||
Rental receivable, net of principal and interest on nonrecourse debt | $ 3,684 | $ 3,551 | |
Estimated residual value of leased assets | 885 | 903 | |
Initial direct cost, net of amortization | 22 | 23 | |
Gross investment in lease financing | 4,591 | 4,477 | |
Unearned income | (523) | (503) | |
Net investment in lease financing | [1] | $ 4,068 | $ 3,974 |
[1] | The accumulated allowance for uncollectible minimum lease payments was $ 14 and $ 15 at December 31, 2017 and 2016 , respectively. |
Loans & Leases (Investment in82
Loans & Leases (Investment in Lease Financing) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Accounts, Notes, Loans and Financing Receivable | ||||||
Accumulated allowance for uncollectible minimum lease payments | $ 1,196 | [1] | $ 1,253 | [1] | $ 1,272 | $ 1,322 |
Leases | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Accumulated allowance for uncollectible minimum lease payments | $ 14 | $ 15 | ||||
[1] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . |
Credit Quality (Summary of Tran
Credit Quality (Summary of Transactions in the ALLL by Portfolio Segment) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Financing Receivable, Allowance for Credit Losses | ||||||
Balance, Beginning of period | $ 1,253 | [1] | $ 1,272 | $ 1,322 | ||
Losses charged-off | (381) | (456) | (542) | |||
Recoveries of losses previously charged-off | 83 | 94 | 96 | |||
Provision for (benefit from) loan and lease losses | 261 | 343 | 396 | |||
Deconsolidation of a VIE | (20) | |||||
Balance, end of period | 1,196 | [1] | 1,253 | [1] | 1,272 | |
Commercial Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Balance, Beginning of period | 831 | [2] | 840 | 875 | ||
Losses charged-off | (154) | (232) | (298) | |||
Recoveries of losses previously charged-off | 29 | 42 | 37 | |||
Provision for (benefit from) loan and lease losses | 66 | 181 | 226 | |||
Deconsolidation of a VIE | [3] | (19) | ||||
Balance, end of period | 753 | [4] | 831 | [2] | 840 | |
Residential Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Balance, Beginning of period | 96 | [2] | 100 | 104 | ||
Losses charged-off | (15) | (19) | (28) | |||
Recoveries of losses previously charged-off | 8 | 9 | 11 | |||
Provision for (benefit from) loan and lease losses | 0 | 6 | 13 | |||
Deconsolidation of a VIE | [3] | 0 | ||||
Balance, end of period | 89 | [4] | 96 | [2] | 100 | |
Consumer Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Balance, Beginning of period | 214 | [2] | 217 | 237 | ||
Losses charged-off | (212) | (205) | (216) | |||
Recoveries of losses previously charged-off | 46 | 43 | 48 | |||
Provision for (benefit from) loan and lease losses | 186 | 159 | 148 | |||
Deconsolidation of a VIE | [3] | 0 | ||||
Balance, end of period | 234 | [4] | 214 | [2] | 217 | |
Unallocated | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Balance, Beginning of period | 112 | [2] | 115 | 106 | ||
Losses charged-off | 0 | 0 | 0 | |||
Recoveries of losses previously charged-off | 0 | 0 | 0 | |||
Provision for (benefit from) loan and lease losses | 9 | (3) | 9 | |||
Deconsolidation of a VIE | [3] | (1) | ||||
Balance, end of period | $ 120 | [4] | $ 112 | [2] | $ 115 | |
[1] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . | |||||
[2] | Includes $ 2 related to leveraged leases at December 31, 2016 . | |||||
[3] | (a) Refer to Note 11 for further discussion on the deconsolidation of a VIE. | |||||
[4] | Includes $ 1 related to leveraged leases at December 31, 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 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Financing Receivable, Allowance for Credit Losses | ||||||
Individually evaluated for impairment | $ 200 | [1] | $ 230 | [2] | ||
Collectively evaluated for impairment | 876 | [1] | 911 | [2] | ||
Unallocated | 120 | [1] | 112 | [2] | ||
Total allowance for loan and lease losses | 1,196 | [3] | 1,253 | [3] | $ 1,272 | $ 1,322 |
Individually evaluated for impairment | 1,545 | [4] | 1,927 | [5] | ||
Collectively evaluated for impairment | 90,286 | [4] | 90,025 | [5] | ||
Loans acquired with deteriorated credit quality | 2 | [4] | 3 | [5] | ||
Total portfolio loans and leases | 91,833 | [6] | 91,955 | [7] | ||
Commercial Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Individually evaluated for impairment | 94 | [1] | 118 | [2],[8] | ||
Collectively evaluated for impairment | 659 | [1] | 713 | [2] | ||
Unallocated | 0 | [1] | 0 | [2] | ||
Total allowance for loan and lease losses | 753 | [1] | 831 | [2] | 840 | 875 |
Individually evaluated for impairment | 560 | [4] | 904 | [5],[8] | ||
Collectively evaluated for impairment | 55,835 | [4] | 55,548 | [5] | ||
Loans acquired with deteriorated credit quality | 0 | [4] | 0 | [5] | ||
Total portfolio loans and leases | 56,395 | [4] | 56,452 | [5] | ||
Residential Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Individually evaluated for impairment | 64 | [1] | 68 | [2] | ||
Collectively evaluated for impairment | 25 | [1] | 28 | [2] | ||
Unallocated | 0 | [1] | 0 | [2] | ||
Total allowance for loan and lease losses | 89 | [1] | 96 | [2] | 100 | 104 |
Individually evaluated for impairment | 665 | [4] | 652 | [5] | ||
Collectively evaluated for impairment | 14,787 | [4] | 14,253 | [5] | ||
Loans acquired with deteriorated credit quality | 2 | [4] | 3 | [5] | ||
Total portfolio loans and leases | 15,454 | [4] | 14,908 | [5] | ||
Consumer Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses | ||||||
Individually evaluated for impairment | 42 | [1] | 44 | [2] | ||
Collectively evaluated for impairment | 192 | [1] | 170 | [2] | ||
Unallocated | 0 | [1] | 0 | [2] | ||
Total allowance for loan and lease losses | 234 | [1] | 214 | [2] | 217 | 237 |
Individually evaluated for impairment | 320 | [4] | 371 | [5] | ||
Collectively evaluated for impairment | 19,664 | [4] | 20,224 | [5] | ||
Loans acquired with deteriorated credit quality | 0 | [4] | 0 | [5] | ||
Total portfolio loans and leases | 19,984 | [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 | 120 | [1] | 112 | [2] | ||
Total allowance for loan and lease losses | 120 | [1] | 112 | [2] | $ 115 | $ 106 |
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 $ 1 related to leveraged leases at December 31, 2017 . | |||||
[2] | Includes $ 2 related to leveraged leases at December 31, 2016 . | |||||
[3] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . | |||||
[4] | Excludes $ 137 of residential mortgage loans measured at fair value, and includes $ 674 of leveraged leases, net of unearned income, at December 31, 2017 . | |||||
[5] | Excludes $ 143 of residential mortgage loans measured at fair value , and includes $ 701 of leveraged leases, net of unearned income at December 31, 2016 . | |||||
[6] | Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . | |||||
[7] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . | |||||
[8] | Includes five restruc tured loans at December 31, 2016 associated with a consolida ted VIE in which the Bancorp had no continuing credit risk due to the risk being assumed by a third party, w ith a recorded investment of $26 and an ALLL of $18 . Refer to Note 11 for further discussion on the deconsolidation of a VIE associated with these loans in the third quarter of 2017. |
Credit Quality (Summary of th85
Credit Quality (Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment) (Parenthetical) (Detail) | 12 Months Ended | ||||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||||
Financing Receivable, Allowance for Credit Losses | |||||||
Allowance for loan and lease losses | $ 1,196,000,000 | [1] | $ 1,253,000,000 | [1] | $ 1,272,000,000 | $ 1,322,000,000 | |
Portfolio loans and leases at fair value | $ 137,000,000 | $ 143,000,000 | |||||
Number of Contracts | [2],[3] | 9,256 | 10,978 | 14,472 | |||
Recorded Investment | $ 1,545,000,000 | [4] | $ 1,901,000,000 | [5] | |||
Variable Interest Entity, Primary Beneficiary | |||||||
Financing Receivable, Allowance for Credit Losses | |||||||
Allowance for loan and lease losses | 6,000,000 | 26,000,000 | |||||
Leveraged Leases | |||||||
Financing Receivable, Allowance for Credit Losses | |||||||
Allowance for loan and lease losses | 1,000,000 | 2,000,000 | |||||
Residential Portfolio Segment | |||||||
Financing Receivable, Allowance for Credit Losses | |||||||
Portfolio loans and leases at fair value | $ 137,000,000 | $ 143,000,000 | |||||
[1] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . | ||||||
[2] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | ||||||
[3] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | ||||||
[4] | Includes $ 249 , $ 652 and $ 275 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 150 , $ 13 and $ 45 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2017 . | ||||||
[5] | Includes $ 322 , $ 635 and $ 323 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 192 , $ 17 and $ 48 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2016 . |
Credit Quality (Summary of th86
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Commercial Portfolio Segment by Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | ||
Financing Receivable, Modifications | ||||
Total loans and leases | $ 91,833 | [1] | $ 91,955 | [2] |
Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 56,395 | 56,452 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 41,170 | 41,676 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,362 | 3,360 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,242 | 3,539 | ||
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 4,553 | 3,903 | ||
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 4,068 | 3,974 | ||
Pass | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 53,612 | 53,274 | ||
Pass | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 38,813 | 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 | 3,117 | 3,466 | ||
Pass | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 4,553 | 3,902 | ||
Pass | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,922 | 3,894 | ||
Special Mention | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 1,290 | 1,335 | ||
Special Mention | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 1,115 | 1,204 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 75 | 72 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 28 | 4 | ||
Special Mention | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 0 | 1 | ||
Special Mention | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 72 | 54 | ||
Substandard | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 1,486 | 1,816 | ||
Substandard | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 1,235 | 1,604 | ||
Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 80 | 117 | ||
Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 97 | 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 | 74 | 26 | ||
Doubtful | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 7 | 27 | ||
Doubtful | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 7 | 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 $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . | |||
[2] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . |
Credit Quality (Summary of th87
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |||
Total loans and leases | $ 91,833 | [1] | $ 91,955 | [2] | |
Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 7,014 | 7,695 | |||
Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 9,112 | 9,983 | |||
Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 2,299 | 2,237 | |||
Other Consumer Loans and Leases | Consumer Portfolio Segment | |||||
Total loans and leases | 1,559 | 680 | |||
Performing Financing Receivable | |||||
Total loans and leases | [3] | 35,307 | 35,366 | ||
Performing Financing Receivable | Residential Mortgage | Residential Portfolio Segment | |||||
Total loans and leases | [3] | 15,424 | 14,874 | ||
Performing Financing Receivable | Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 6,940 | 7,622 | |||
Performing Financing Receivable | Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 9,111 | 9,981 | |||
Performing Financing Receivable | Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 2,273 | 2,209 | |||
Performing Financing Receivable | Other Consumer Loans and Leases | Consumer Portfolio Segment | |||||
Total loans and leases | 1,559 | 680 | |||
Nonperforming Financing Receivable | |||||
Total loans and leases | [3] | 131 | 137 | ||
Nonperforming Financing Receivable | Residential Mortgage | Residential Portfolio Segment | |||||
Total loans and leases | [3] | 30 | 34 | ||
Nonperforming Financing Receivable | Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 74 | 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 $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . | ||||
[2] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . | ||||
[3] | (a) Excludes $ 137 and $ 143 of residential mortgage loans measured at fair value at December 31, 2017 and 2016 , respectively |
Credit Quality (Summary of th88
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Portfolio loans and leases at fair value | $ 137 | $ 143 |
Residential mortgage loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Portfolio loans and leases at fair value | $ 137 | $ 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 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | $ 91,195 | [1],[2],[3] | $ 91,339 | [4],[5],[6] |
Total Past Due | 638 | [2] | 616 | [5] |
Total portfolio loans and leases | 91,833 | [2] | 91,955 | [5] |
90-Days past Due and Still Accruing | 97 | [2] | 84 | [5] |
30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 333 | [1],[2] | 315 | [4],[5] |
90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 305 | [1],[2] | 301 | [4],[5] |
Commercial Portfolio Segment | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total portfolio loans and leases | 56,395 | 56,452 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 41,027 | [1],[3] | 41,495 | [4],[6] |
Total Past Due | 143 | 181 | ||
Total portfolio loans and leases | 41,170 | 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 | 42 | [1] | 87 | [4] |
Commercial Portfolio Segment | Commercial and Industrial Loans | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 101 | [1] | 94 | [4] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 3,351 | [1],[3] | 3,332 | [4],[6] |
Total Past Due | 11 | 28 | ||
Total portfolio loans and leases | 3,362 | 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 | 3 | [1] | 6 | [4] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 8 | [1] | 22 | [4] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 3,235 | [1],[3] | 3,530 | [4],[6] |
Total Past Due | 7 | 9 | ||
Total portfolio loans and leases | 3,242 | 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 | 0 | [1] | 2 | [4] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 7 | [1] | 7 | [4] |
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 4,552 | [1],[3] | 3,902 | [4],[6] |
Total Past Due | 1 | 1 | ||
Total portfolio loans and leases | 4,553 | 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 | 1 | [1] | 1 | [4] |
Commercial Portfolio Segment | Commercial Construction Loans | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 0 | [1] | 0 | [4] |
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 4,065 | [1],[3] | 3,972 | [4],[6] |
Total Past Due | 3 | 2 | ||
Total portfolio loans and leases | 4,068 | 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 | 3 | [1] | 0 | [4] |
Commercial Portfolio Segment | Commercial Leases | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 0 | [1] | 2 | [4] |
Residential Mortgage | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 15,301 | [1],[2],[3] | 14,790 | [4],[5],[6] |
Total Past Due | 153 | [2] | 118 | [5] |
Total portfolio loans and leases | 15,454 | [2] | 14,908 | [5] |
90-Days past Due and Still Accruing | 57 | [2] | 49 | [5] |
Residential Mortgage | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 66 | [1],[2] | 37 | [4],[5] |
Residential Mortgage | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 87 | [1],[2] | 81 | [4],[5] |
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 6,888 | [1],[3] | 7,570 | [4],[6] |
Total Past Due | 126 | 125 | ||
Total portfolio loans and leases | 7,014 | 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 | 70 | [1] | 68 | [4] |
Consumer Portfolio Segment | Home Equity | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 56 | [1] | 57 | [4] |
Consumer Portfolio Segment | Automobile Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 8,992 | [1],[3] | 9,886 | [4],[6] |
Total Past Due | 120 | 97 | ||
Total portfolio loans and leases | 9,112 | 9,983 | ||
90-Days past Due and Still Accruing | 10 | 9 | ||
Consumer Portfolio Segment | Automobile Loans | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 107 | [1] | 85 | [4] |
Consumer Portfolio Segment | Automobile Loans | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 13 | [1] | 12 | [4] |
Consumer Portfolio Segment | Credit Card | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 2,230 | [1],[3] | 2,183 | [4],[6] |
Total Past Due | 69 | 54 | ||
Total portfolio loans and leases | 2,299 | 2,237 | ||
90-Days past Due and Still Accruing | 27 | 22 | ||
Consumer Portfolio Segment | Credit Card | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 36 | [1] | 28 | [4] |
Consumer Portfolio Segment | Credit Card | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 33 | [1] | 26 | [4] |
Consumer Portfolio Segment | Other Consumer Loans and Leases | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 1,554 | [1],[3] | 679 | [4],[6] |
Total Past Due | 5 | 1 | ||
Total portfolio loans and leases | 1,559 | 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 | 5 | [1] | 1 | [4] |
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 | [4] |
[1] | Includes accrual and nonaccrual loans and leases. | |||
[2] | Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . | |||
[3] | Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. A s of December 31, 2017 , $ 95 of these loans were 30-89 days past due and $ 290 were 90 days or more past due. The Bancorp recognized $ 5 of losses during the year ended December 31, 2017 due to claim denials and curtailments a ssociated with these insured or guaranteed loans. | |||
[4] | Includes accrual and nonaccrual loans and leases . | |||
[5] | Excludes $ 143 of residential mortgage loans measured at fair value at December 31, 2016 . | |||
[6] | Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA . A s of December 31, 2016 , $ 110 of these loans were 30-89 days past due and $ 312 were 90 days or more past due. The Bancorp recognized $ 6 of losses during the year ended December 31, 2016 due to claim denials and curtailments associated with these insured or guaranteed loans . |
Credit Quality (Summarizes th90
Credit Quality (Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | |||
Financing Receivable, Recorded Investment, Past Due | ||||
Portfolio loans and leases at fair value | $ 137 | $ 143 | ||
Total Past Due | 638 | [1] | 616 | [2] |
30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 333 | [1],[3] | 315 | [2],[4] |
90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 305 | [1],[3] | 301 | [2],[4] |
Residential Mortgage | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Portfolio loans and leases at fair value | 137 | 143 | ||
Residential Mortgage Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Portfolio loans and leases at fair value | 137 | 143 | ||
Residential Mortgage Loans | Federal Housing Administration Loan | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Losses Due To Claim Denials And Curtailments | 5 | 6 | ||
Residential Mortgage Loans | Federal Housing Administration Loan | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 95 | 110 | ||
Residential Mortgage Loans | Federal Housing Administration Loan | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | $ 290 | $ 312 | ||
[1] | Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 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 th91
Credit Quality (Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | ||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | $ 1,158 | $ 1,210 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 521 | 842 | ||
Unpaid Principal Balance | 1,679 | 2,052 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 1,068 | 1,168 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 477 | 733 | ||
Recorded Investment | 1,545 | [1] | 1,901 | [2] |
Allowance | 200 | 212 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 433 | 440 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 151 | 394 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 358 | 414 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 131 | 320 | ||
Allowance | 87 | 94 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 16 | 24 | [3] | |
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 18 | 36 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 14 | 16 | [4] | |
Impaired Financing Receivable With No Related Allowance Recorded Investment | 15 | 35 | ||
Allowance | 7 | 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 | 35 | 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 | 35 | 83 | ||
Allowance | 0 | 1 | ||
Commercial Portfolio Segment | Commercial Leases | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 4 | 2 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 2 | |||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 4 | 2 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 2 | |||
Allowance | 0 | 0 | ||
Residential Portfolio Segment | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 469 | 471 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 218 | 207 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 465 | 465 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 200 | 187 | ||
Allowance | 64 | 68 | ||
Consumer Portfolio Segment | Home Equity | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 172 | 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 | 172 | 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 | 8 | 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 | 7 | 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 | 52 | 52 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 45 | 52 | ||
Allowance | $ 14 | $ 12 | ||
[1] | Includes $ 249 , $ 652 and $ 275 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 150 , $ 13 and $ 45 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2017 . | |||
[2] | Includes $ 322 , $ 635 and $ 323 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 192 , $ 17 and $ 48 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2016 . | |||
[3] | Ex cludes five restructured loans at December 31, 2016 associated with a consolidated VIE in which the Bancorp had 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 . Refer to Note 11 for further discussion on the deconsolidation o f a VIE associated with these loans in the third quarter of 2017. | |||
[4] | Ex cludes five restructured loans at December 31, 2016 associated with a consolidated VIE in which the Bancorp had 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 . Refer to Note 11 for further discussion on the deconsolidation o f a VIE associated with these loans in the third quarter of 2017. |
Credit Quality (Summarizes th92
Credit Quality (Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class) (Parenthetical) (Detail) | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015 | ||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | $ 1,679,000,000 | $ 2,052,000,000 | ||||
Recorded Investment | 1,545,000,000 | [1] | 1,901,000,000 | [2] | ||
Allowance | $ 200,000,000 | $ 212,000,000 | ||||
Number of Contracts | [3],[4] | 9,256 | 10,978 | 14,472 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||||
Financing Receivable, Impaired | ||||||
Allowance | $ 87,000,000 | $ 94,000,000 | ||||
Number of Contracts | [3],[4] | 75 | 74 | 77 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||||
Financing Receivable, Impaired | ||||||
Allowance | $ 7,000,000 | $ 5,000,000 | [5] | |||
Number of Contracts | [3],[4] | 9 | 12 | 18 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | Variable Interest Entity, Primary Beneficiary | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | $ 26,000,000 | |||||
Recorded Investment | 26,000,000 | |||||
Allowance | [5],[6] | 18,000,000 | ||||
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||||
Financing Receivable, Impaired | ||||||
Allowance | $ 0 | $ 1,000,000 | ||||
Number of Contracts | [3],[4] | 4 | 4 | 12 | ||
Commercial Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | $ 249,000,000 | $ 322,000,000 | ||||
Commercial Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | 150,000,000 | 192,000,000 | ||||
Residential Portfolio Segment | ||||||
Financing Receivable, Impaired | ||||||
Allowance | $ 64,000,000 | $ 68,000,000 | ||||
Number of Contracts | [3],[4] | 830 | 924 | 1,089 | ||
Residential Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | $ 652,000,000 | $ 635,000,000 | ||||
Residential Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | 13,000,000 | 17,000,000 | ||||
Consumer Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | 275,000,000 | 323,000,000 | ||||
Consumer Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | $ 45,000,000 | $ 48,000,000 | ||||
[1] | Includes $ 249 , $ 652 and $ 275 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 150 , $ 13 and $ 45 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2017 . | |||||
[2] | Includes $ 322 , $ 635 and $ 323 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 192 , $ 17 and $ 48 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2016 . | |||||
[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] | Ex cludes five restructured loans at December 31, 2016 associated with a consolidated VIE in which the Bancorp had 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 . Refer to Note 11 for further discussion on the deconsolidation o f a VIE associated with these loans in the third quarter of 2017. | |||||
[6] | Excludes five restructured loans associated with a consolid ated VIE in which the Bancorp had no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 13 , $ 26 and $ 27 for t he years ended December 31, 2017 , 2016, and 2015, respectively. An immaterial amount of interest income was recognized during t he years ended December 31, 2017 , 2016, and 2015. Refer to Note 11 for further discus sion on the deconsolidation of the VIE associated with these loans i n the third quarter of 2017. |
Credit Quality (Summary of Aver
Credit Quality (Summary of Average Impaired Loans and Leases and Interest Income by Class) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Impaired | ||||
Average Recorded Investment | $ 1,677 | $ 1,946 | $ 2,062 | |
Interest Income Recognized | 52 | 58 | 74 | |
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 579 | 691 | 663 | |
Interest Income Recognized | 10 | 10 | 21 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | [1] | 35 | 63 | 92 |
Interest Income Recognized | [1] | 0 | 1 | 2 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 61 | 139 | 224 | |
Interest Income Recognized | 1 | 5 | 7 | |
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 0 | 3 | 41 | |
Interest Income Recognized | 0 | 0 | 1 | |
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 3 | 5 | 5 | |
Interest Income Recognized | 0 | 0 | 0 | |
Residential Portfolio Segment | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 657 | 647 | 586 | |
Interest Income Recognized | 25 | 25 | 23 | |
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 281 | 325 | 361 | |
Interest Income Recognized | 12 | 12 | 13 | |
Consumer Portfolio Segment | Automobile Loans | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 11 | 17 | 22 | |
Interest Income Recognized | 0 | 0 | 1 | |
Consumer Portfolio Segment | Credit Card | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 50 | 56 | 68 | |
Interest Income Recognized | $ 4 | $ 5 | $ 6 | |
[1] | Excludes five restructured loans associated with a consolid ated VIE in which the Bancorp had no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 13 , $ 26 and $ 27 for t he years ended December 31, 2017 , 2016, and 2015, respectively. An immaterial amount of interest income was recognized during t he years ended December 31, 2017 , 2016, and 2015. Refer to Note 11 for further discus sion on the deconsolidation of the VIE associated with these loans i n the third quarter of 2017. |
Credit Quality (Summary of th94
Credit Quality (Summary of the Average Impaired Loans and Leases and Interest Income by Class) (Parenthetical) (Detail) | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Financing Receivable, Impaired | ||||
Average Recorded Investment | $ 1,677,000,000 | $ 1,946,000,000 | $ 2,062,000,000 | |
Number of Contracts | [1],[2] | 9,256 | 10,978 | 14,472 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | [3] | $ 35,000,000 | $ 63,000,000 | $ 92,000,000 |
Number of Contracts | [1],[2] | 9 | 12 | 18 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | Variable Interest Entity, Primary Beneficiary | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | $ 13,000,000 | $ 26,000,000 | $ 27,000,000 | |
[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] | Excludes five restructured loans associated with a consolid ated VIE in which the Bancorp had no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 13 , $ 26 and $ 27 for t he years ended December 31, 2017 , 2016, and 2015, respectively. An immaterial amount of interest income was recognized during t he years ended December 31, 2017 , 2016, and 2015. Refer to Note 11 for further discus sion on the deconsolidation of the VIE associated with these loans i n the third quarter of 2017. |
Credit Quality (Summary of th95
Credit Quality (Summary of the Bancorp's Nonaccrual Loans and Leases by Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | ||
Financing Receivable, Modifications | ||||
Nonaccrual portfolio loans and leases | [1],[2] | $ 437 | $ 660 | |
OREO and other repossessed personal property | 54 | 84 | ||
Nonperforming portfolio assets | [1],[2] | 489 | 738 | |
Excludes OREO Related to Government Insured Loans | ||||
Financing Receivable, Modifications | ||||
OREO and other repossessed personal property | 52 | 78 | ||
Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Nonaccrual portfolio loans and leases | 306 | 523 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Nonaccrual portfolio loans and leases | 276 | 478 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Nonaccrual portfolio loans and leases | 19 | 32 | [3] | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Nonaccrual portfolio loans and leases | 7 | 9 | ||
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Nonaccrual portfolio loans and leases | 4 | 4 | ||
Residential Mortgage Loans | ||||
Financing Receivable, Modifications | ||||
Nonaccrual portfolio loans and leases | 30 | 34 | ||
Consumer Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Nonaccrual portfolio loans and leases | 101 | 103 | ||
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Modifications | ||||
Nonaccrual portfolio loans and leases | 74 | 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] | Includes $ 3 and $ 4 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at December 31, 2017 and 2016 , respectively, of which $ 3 and $ 1 are restructured nonaccrual government insured commercial loans at December 31, 2017 and 2016 , respectively . | |||
[2] | Excludes $ 6 and $ 13 of nonaccrual loans and leases held for sale at December 31, 2017 and 2016 , respectively. | |||
[3] | Excludes $ 19 of restructured nonaccrua l loans at December 31, 2016 associated with a consolidated VIE in which the Bancorp had no continuing credit risk due the risk being assumed by a third party. Refer to Note 11 for further discussion on the deconsolidation of the VIE associated with these loans in the third quarte r of 2017. |
Credit Quality (Summary of th96
Credit Quality (Summary of the Bancorp's Nonperforming Loans and Leases by Class) (Parenthetical) (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Modifications | |||
Loans held for sale | [1] | $ 492,000,000 | $ 751,000,000 |
Portfolio loans and leases | [2],[3] | 91,970,000,000 | 92,098,000,000 |
Variable Interest Entity, Primary Beneficiary | |||
Financing Receivable, Modifications | |||
Portfolio loans and leases | 1,297,000,000 | 1,216,000,000 | |
Commercial Portfolio Segment | |||
Financing Receivable, Modifications | |||
Portfolio loans and leases | 56,395,000,000 | 56,452,000,000 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | Variable Interest Entity, Primary Beneficiary | |||
Financing Receivable, Modifications | |||
Restructured nonaccrual loans and leases | 19,000,000 | ||
Nonperforming Financing Receivable | |||
Financing Receivable, Modifications | |||
Loans held for sale | 6,000,000 | 13,000,000 | |
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment | |||
Financing Receivable, Modifications | |||
Restructured nonaccrual loans and leases | 3,000,000 | 1,000,000 | |
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment | Small Business Administration | |||
Financing Receivable, Modifications | |||
Portfolio loans and leases | $ 3,000,000 | $ 4,000,000 | |
[1] | Includes $ 399 and $ 686 of residential mortgage loans held for sale measured at fair value at December 31, 2017 and 2016 , respectively. | ||
[2] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . | ||
[3] | Includes $ 137 and $ 143 of residential mortgage loans measured at fair value at December 31, 2017 and 2016 , respecti vely. |
Credit Quality (Credit Quality
Credit Quality (Credit Quality Additional Information) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Troubled Debt Restructuring | ||
Line of credit commitments for modified troubled debt restructurings | $ 53 | $ 78 |
Letter of credit commitments for modified troubled debt restructurings | 82 | 57 |
Mortgage loans in process of foreclosure amount | 235 | 260 |
Commercial aggregate borrower relationship subject to individual review for impairment | $ 1 | $ 1 |
Credit Quality (Summary of Loan
Credit Quality (Summary of Loans Modified in a TDR) (Detail) | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 9,256 | 10,978 | 14,472 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 413,000,000 | $ 413,000,000 | $ 409,000,000 |
Increase (Decrease) to ALLL Upon Modification | [2] | 13,000,000 | 32,000,000 | 23,000,000 |
Charge-offs Recognized Upon Modification | [2] | $ 7,000,000 | $ 4,000,000 | $ 10,000,000 |
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 75 | 74 | 77 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 237,000,000 | $ 183,000,000 | $ 146,000,000 |
Increase (Decrease) to ALLL Upon Modification | [2] | (5,000,000) | 14,000,000 | 7,000,000 |
Charge-offs Recognized Upon Modification | [2] | $ 6,000,000 | $ 0 | $ 3,000,000 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 9 | 12 | 18 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 8,000,000 | $ 11,000,000 | $ 16,000,000 |
Increase (Decrease) to ALLL Upon Modification | [2] | 5,000,000 | 0 | (2,000,000) |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | $ 0 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 4 | 4 | 12 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 0 | $ 5,000,000 | $ 7,000,000 |
Increase (Decrease) to ALLL Upon Modification | [2] | 0 | 2,000,000 | (1,000,000) |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | $ 0 |
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 1 | 5 | |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 4,000,000 | $ 16,000,000 | |
Increase (Decrease) to ALLL Upon Modification | [2] | 0 | 0 | |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | |
Residential Mortgage Loans | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 830 | 924 | 1,089 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 116,000,000 | $ 137,000,000 | $ 155,000,000 |
Increase (Decrease) to ALLL Upon Modification | [2] | 5,000,000 | 8,000,000 | 8,000,000 |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | $ 0 |
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 150 | 219 | 267 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 10,000,000 | $ 15,000,000 | $ 16,000,000 |
Increase (Decrease) to ALLL Upon Modification | [2] | 0 | 0 | (1,000,000) |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | $ 0 |
Consumer Portfolio Segment | Automobile Loans | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 102 | 221 | 440 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 0 | $ 3,000,000 | $ 7,000,000 |
Increase (Decrease) to ALLL Upon Modification | [2] | 0 | 0 | 1,000,000 |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | $ 0 |
Consumer Portfolio Segment | Credit Card | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 8,085 | 9,519 | 12,569 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 38,000,000 | $ 43,000,000 | $ 62,000,000 |
Increase (Decrease) to ALLL Upon Modification | [2] | 8,000,000 | 8,000,000 | 11,000,000 |
Charge-offs Recognized Upon Modification | [2] | $ 1,000,000 | $ 4,000,000 | $ 7,000,000 |
[1] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||
[2] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . |
Credit Quality (Summary of Subs
Credit Quality (Summary of Subsequent Defaults) (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 1,832 | 1,918 | 2,124 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 52 | $ 39 | $ 42 |
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 7 | 8 | 7 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 17 | $ 5 | $ 11 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 4 | 2 | 3 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 1 | $ 0 | $ 1 |
Commercial Portfolio Segment | Commercial leases | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 2 | ||
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 1 | ||
Residential Mortgage Loans | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 172 | 172 | 156 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 24 | $ 25 | $ 21 |
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 16 | 17 | 15 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 2 | $ 1 | $ 1 |
Consumer Portfolio Segment | Automobile Loans | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 2 | 8 | |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 0 | $ 0 | |
Consumer Portfolio Segment | Credit Card | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 1,633 | 1,715 | 1,935 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 8 | $ 7 | $ 8 |
[1] | (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. |
Bank Premises and Equipment (Ba
Bank Premises and Equipment (Bank Premises and Equipment (Detail)) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Property, Plant and Equipment | |||
Land and improvements | [1] | $ 644 | $ 663 |
Buildings | [1] | 1,679 | 1,672 |
Equipment | 1,876 | 1,761 | |
Leasehold improvements | 399 | 398 | |
Construction in progress | [1] | 93 | 99 |
Land and improvements held for sale | 17 | 29 | |
Buildings held for sale | 9 | 9 | |
Equipment held for sale | 1 | 1 | |
Accumulated depreciation and amortization | (2,715) | (2,567) | |
Total bank premises and equipment | [2] | $ 2,003 | $ 2,065 |
Building | Upper Limit | |||
Property, Plant and Equipment | |||
Useful life | 30 years | ||
Building | Lower limit | |||
Property, Plant and Equipment | |||
Useful life | 2 years | ||
Equipment | Upper Limit | |||
Property, Plant and Equipment | |||
Useful life | 20 years | ||
Equipment | Lower limit | |||
Property, Plant and Equipment | |||
Useful life | 2 years | ||
Leasehold Improvements | Upper Limit | |||
Property, Plant and Equipment | |||
Useful life | 30 years | ||
Leasehold Improvements | Lower limit | |||
Property, Plant and Equipment | |||
Useful life | 1 year | ||
[1] | (a) At December 31, 2017 and 2016 , land and improvements, buildings and construction in progress included $ 91 and $ 92 , respectively, associated with parcels of undeveloped land intended for future branch expansion. | ||
[2] | Includes $ 27 and $ 39 of bank premises and equipment held for sale at December 31, 2017 and 2016 , respectively. For further information refer to N ote 7 . |
Bank Premises and Equipment 101
Bank Premises and Equipment (Bank Premises and Equipment (Parenthetical) (Detail)) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment | |||
Land and improvements | [1] | $ 644 | $ 663 |
Branches and undeveloped parcels of land | |||
Property, Plant and Equipment | |||
Land and improvements | $ 91 | $ 92 | |
[1] | (a) At December 31, 2017 and 2016 , land and improvements, buildings and construction in progress included $ 91 and $ 92 , respectively, associated with parcels of undeveloped land intended for future branch expansion. |
Bank Premises and Equipment 102
Bank Premises and Equipment (Bank Premises and Equipment - Additional Information (Detail)) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment | |||
Depreciation and amortization expense | $ 234 | $ 242 | $ 256 |
Deferred Gain on Transaction | 11 | ||
Branch Banking | |||
Property, Plant and Equipment | |||
Bank Premises Impairment | 7 | 32 | 109 |
Cancelable And Noncancelable Lease Obligations | |||
Property, Plant and Equipment | |||
Occupancy Costs | 101 | 100 | 110 |
Rental income from leased premises | $ 13 | $ 16 | $ 18 |
Bank Premises and Equipment (An
Bank Premises and Equipment (Annual Future Minimum Payments under Capital Leases and Noncancelable Operating Leases (Detail)) $ in Millions | Dec. 31, 2017USD ($) |
Noncancelable Operating Leases | |
Property, Plant and Equipment | |
2,018 | $ 87 |
2,019 | 83 |
2,020 | 71 |
2,021 | 57 |
2,022 | 51 |
Thereafter | 219 |
Total minimum lease payments | 568 |
Amounts representing interest | 0 |
Present value of net minimum lease payments | 0 |
Capital Leases | |
Property, Plant and Equipment | |
2,018 | 6 |
2,019 | 6 |
2,020 | 5 |
2,021 | 4 |
2,022 | 4 |
Thereafter | 1 |
Total minimum lease payments | 26 |
Amounts representing interest | 4 |
Present value of net minimum lease payments | $ 22 |
Operating Lease Equipment - Add
Operating Lease Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating lease equipment | Commercial Banking | |||
Property, Plant and Equipment | |||
Other Asset Impairment Charges | $ 52 | $ 20 | $ 36 |
Goodwill (Changes in the Net Ca
Goodwill (Changes in the Net Carrying Amount of Goodwill by Reporting Segment) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill | ||||
Goodwill | $ 3,381 | |||
Accumulated impairment losses | $ (965) | |||
Goodwill Roll Forward | ||||
Net carrying amount, beginning of period: | $ 2,416 | $ 2,416 | ||
Acquisition activity | 29 | 0 | ||
Net carrying amount, end of period: | 2,445 | 2,416 | ||
Commercial Banking | ||||
Goodwill | ||||
Goodwill | 1,363 | |||
Accumulated impairment losses | (750) | |||
Goodwill Roll Forward | ||||
Net carrying amount, beginning of period: | 613 | 613 | ||
Acquisition activity | 0 | 0 | ||
Net carrying amount, end of period: | 613 | 613 | ||
Branch Banking | ||||
Goodwill | ||||
Goodwill | 1,655 | |||
Accumulated impairment losses | 0 | |||
Goodwill Roll Forward | ||||
Net carrying amount, beginning of period: | 1,655 | 1,655 | ||
Acquisition activity | 0 | 0 | ||
Net carrying amount, end of period: | 1,655 | 1,655 | ||
Consumer Lending | ||||
Goodwill | ||||
Goodwill | 215 | |||
Accumulated impairment losses | (215) | |||
Goodwill Roll Forward | ||||
Net carrying amount, beginning of period: | 0 | 0 | ||
Acquisition activity | 0 | 0 | ||
Net carrying amount, end of period: | 0 | 0 | ||
Wealth and Asset Management | ||||
Goodwill | ||||
Goodwill | $ 148 | |||
Accumulated impairment losses | $ 0 | |||
Goodwill Roll Forward | ||||
Net carrying amount, beginning of period: | 148 | 148 | ||
Acquisition activity | 29 | 0 | ||
Net carrying amount, end of period: | $ 177 | $ 148 |
Intangible Assets (Intangible A
Intangible Assets (Intangible Assets - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Assets by Major Class | |||
Amortization of Intangible Assets | $ 2 | $ 2 | $ 2 |
Intangible Assets (Intangibl107
Intangible Assets (Intangible Assets) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 69 | $ 49 |
Accumulated Amortization | (42) | (40) |
Net Carrying Amount | 27 | 9 |
Core Deposits | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 34 | 34 |
Accumulated Amortization | (29) | (27) |
Net Carrying Amount | 5 | 7 |
Customer Relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 16 | |
Accumulated Amortization | 0 | |
Net Carrying Amount | 16 | |
Noncompete Agreements | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 13 | 10 |
Accumulated Amortization | (10) | (10) |
Net Carrying Amount | 3 | 0 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 6 | 5 |
Accumulated Amortization | (3) | (3) |
Net Carrying Amount | $ 3 | $ 2 |
Intangible Assets (Estimated Am
Intangible Assets (Estimated Amortization Expense Other Intangible Assets) (Detail) - Other Intangible Assets $ in Millions | Dec. 31, 2017USD ($) |
Finite-Lived Intangible Assets | |
2,018 | $ 3 |
2,019 | 3 |
2,020 | 3 |
2,021 | 2 |
2,022 | $ 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 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Assets | |||||||
Other short-term investments | [1] | $ 2,753 | $ 2,754 | ||||
Cash and due from banks | 2,514 | [1] | 2,392 | [1] | $ 2,540 | $ 3,091 | |
Commercial mortgage loans | 6,604 | 6,899 | |||||
Automobile loans | 9,112 | 9,983 | |||||
ALLL | (1,196) | [1] | (1,253) | [1] | $ (1,272) | $ (1,322) | |
Other assets | [1] | 6,975 | 7,844 | ||||
Liabilities | |||||||
Other liabilities | [1] | 2,144 | 2,269 | ||||
Long-term debt | [1] | 14,904 | 14,388 | ||||
Noncontrolling interests | 20 | 27 | |||||
Variable Interest Entity, Primary Beneficiary | |||||||
Assets | |||||||
Other short-term investments | 62 | ||||||
Cash and due from banks | 85 | ||||||
Commercial mortgage loans | 20 | 46 | |||||
Automobile loans | 1,277 | 1,170 | |||||
ALLL | (6) | (26) | |||||
Other assets | 7 | 9 | |||||
Total Assets | 1,360 | 1,284 | |||||
Liabilities | |||||||
Other liabilities | 2 | 3 | |||||
Long-term debt | 1,190 | 1,094 | |||||
Total liabilities | 1,192 | 1,097 | |||||
Noncontrolling interests | 20 | 27 | |||||
Variable Interest Entity, Primary Beneficiary | Automobile Loans | |||||||
Assets | |||||||
Other short-term investments | 62 | ||||||
Cash and due from banks | 84 | ||||||
Commercial mortgage loans | 0 | 0 | |||||
Automobile loans | 1,277 | 1,170 | |||||
ALLL | (6) | (6) | |||||
Other assets | 7 | 9 | |||||
Total Assets | 1,340 | 1,257 | |||||
Liabilities | |||||||
Other liabilities | 2 | 3 | |||||
Long-term debt | 1,190 | 1,094 | |||||
Total liabilities | 1,192 | 1,097 | |||||
Noncontrolling interests | 0 | 0 | |||||
Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments | |||||||
Assets | |||||||
Cash and due from banks | 0 | 1 | |||||
Commercial mortgage loans | 20 | 46 | |||||
Automobile loans | 0 | 0 | |||||
ALLL | 0 | (20) | |||||
Other assets | 0 | 0 | |||||
Total Assets | 20 | 27 | |||||
Liabilities | |||||||
Other liabilities | 0 | 0 | |||||
Long-term debt | 0 | 0 | |||||
Total liabilities | 0 | 0 | |||||
Noncontrolling interests | $ 20 | $ 27 | |||||
[1] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . |
VIE (Variable Interest Entities
VIE (Variable Interest Entities - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Variable Interest Entity | ||||||
Allowance for loan and lease losses | $ 1,196 | [1] | $ 1,253 | [1] | $ 1,272 | $ 1,322 |
Asset Impairment Charges | 277 | 262 | ||||
Commercial mortgage loans | 6,604 | 6,899 | ||||
Private equity investments | ||||||
Variable Interest Entity | ||||||
Private Equity Fund Impairment | 9 | 1 | 0 | |||
Variable Interest Entity, Primary Beneficiary | ||||||
Variable Interest Entity | ||||||
Allowance for loan and lease losses | 6 | 26 | ||||
Commercial mortgage loans | 20 | 46 | ||||
Variable Interest Entity, Primary Beneficiary | Automobile Loans | ||||||
Variable Interest Entity | ||||||
Carry Value Of Loans Leases Or Lines Of Credit Securitized | 1,100 | |||||
Face amount of notes issued or redeemed | 1,000 | |||||
Long-term debt reatined | 261 | |||||
Allowance for loan and lease losses | 6 | 6 | ||||
Commercial mortgage loans | 0 | 0 | ||||
Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments | ||||||
Variable Interest Entity | ||||||
Maximum Exposure | 17 | 31 | ||||
Allowance for loan and lease losses | 0 | 20 | ||||
Commercial mortgage loans | 20 | 46 | ||||
Variable Interest Entity, Not Primary Beneficiary | Loans Provided to VIEs | ||||||
Variable Interest Entity | ||||||
Unfunded commitment amounts | 1,100 | 937 | ||||
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments | ||||||
Variable Interest Entity | ||||||
Maximum Exposure | 1,376 | 1,421 | ||||
Bancorp's Investment in Affordable Housing Tax Credits | 1,376 | 1,421 | ||||
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments | Affordable Housing Investments | ||||||
Variable Interest Entity | ||||||
Asset Impairment Charges | (68) | |||||
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments | Qualified Affordable Housing Tax Credits | ||||||
Variable Interest Entity | ||||||
Bancorp's Investment in Affordable Housing Tax Credits | 1,300 | 1,300 | ||||
Unfunded commitments | $ 355 | 349 | ||||
Unfunded commitments expected funding date | 2,034 | |||||
Variable Interest Entity, Not Primary Beneficiary | Private equity investments | ||||||
Variable Interest Entity | ||||||
Maximum Exposure | $ 150 | 232 | ||||
Bancorp's Investment in Affordable Housing Tax Credits | 102 | 176 | ||||
Unfunded commitment amounts | 48 | 56 | ||||
Capital Contribution To Private Equity Investments | 11 | 14 | ||||
Variable Interest Entity, Not Primary Beneficiary | Private equity investments | Nonconforming investments affected by Volcker Rule | ||||||
Variable Interest Entity | ||||||
Private Equity Fund Impairment | 1 | $ 9 | $ 1 | |||
Gain on sale of private equity investments | 11 | |||||
Deconsolidated Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments | ||||||
Variable Interest Entity | ||||||
Maximum Exposure | 18 | |||||
Allowance for loan and lease losses | 20 | |||||
Commercial mortgage loans | $ 27 | |||||
[1] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . |
VIE (Assets and Liabilities Rel
VIE (Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses) (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fifth Third Community Development Corporation Investments | ||
Variable Interest Entity | ||
Total Assets | $ 1,376 | $ 1,421 |
Total Liabilities | 355 | 357 |
Maximum Exposure | 1,376 | 1,421 |
Private equity investments | ||
Variable Interest Entity | ||
Total Assets | 102 | 176 |
Total Liabilities | 0 | 0 |
Maximum Exposure | 150 | 232 |
Loans Provided to VIEs | ||
Variable Interest Entity | ||
Total Assets | 1,845 | 1,735 |
Total Liabilities | 0 | 0 |
Maximum Exposure | $ 2,910 | $ 2,672 |
VIE (Investments in Qualified A
VIE (Investments in Qualified Affordable Housing Tax Credits) (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Other noninterest expense | ||||
Schedule of Equity Method Investments | ||||
Pre-tax investment and impairment losses | [1] | $ 207 | $ 144 | $ 126 |
Applicable income tax expense | ||||
Schedule of Equity Method Investments | ||||
Tax credits and other benefits | $ (246) | $ (220) | $ (205) | |
[1] | (a) The Bancorp recognized $68 of impairment losses primarily due to the change in the federal statutory corporate tax rate during the year ended December 31, 2017 and did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or othe r circumstances during the years ended December 31, 2017 , 2016 and 2015 . |
VIE (Investments in Qualifie113
VIE (Investments in Qualified Affordable Housing Tax Credits) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | ||
Asset Impairment Charges | $ 277 | $ 262 |
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments | Affordable Housing Investments | ||
Variable Interest Entity [Line Items] | ||
Asset Impairment Charges | $ (68) |
MSR (Activity Related to Mortga
MSR (Activity Related to Mortgage Banking Net Revenue) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale | |||||
Residential mortgage loan sales | [1] | $ 6,369 | $ 6,927 | [2] | $ 5,078 |
Origination fees and gains on loan sales | 138 | 186 | 171 | ||
Gross mortgage servicing fees | $ 206 | $ 199 | $ 222 | ||
[1] | Represents the unpaid principal balance at the time of the sale . | ||||
[2] | Excludes $ 568 of HFS residential mortgage loans previously modified in a TDR that were sold d uring the first quarter of 2015. |
MSR (Activity Related to Mor115
MSR (Activity Related to Mortgage Banking Net Revenue) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | [2] | Dec. 31, 2015 | ||
Mortgage Loans on Real Estate | ||||||
Residential mortgage loan sales | [1] | $ 6,369 | $ 6,927 | $ 5,078 | ||
Residential Mortgage Loans | Troubled Debt Restructuring On Nonaccrual Status | ||||||
Mortgage Loans on Real Estate | ||||||
Residential mortgage loan sales | $ 568 | |||||
[1] | Represents the unpaid principal balance at the time of the sale . | |||||
[2] | Excludes $ 568 of HFS residential mortgage loans previously modified in a TDR that were sold d uring the first quarter of 2015. |
MSR (Changes in the Servicing A
MSR (Changes in the Servicing Assets) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Servicing Assets at Fair Value | ||||
Carrying amount before valuation allowance as of the beginning of the period | $ 1,156 | $ 1,204 | ||
Servicing rights that result from the transfer of residential mortgage loans | 83 | |||
Amortization | (131) | $ (140) | ||
Other-than-temporary impairment | 0 | |||
Carrying amount before valuation allowance | 1,156 | 1,204 | ||
Valuation allowance for servicing rights: | ||||
Beginning balance | (412) | (419) | ||
(Provision for) recovery of MSR impairment | 7 | |||
Other-than-temporary impairment | 0 | |||
Ending balance | (412) | $ (419) | ||
Carrying amount as of the end of the period | [1] | 858 | 744 | |
Fair value at beginning of period | 744 | |||
Servicing rights originated | 127 | |||
Servicing rights acquired | 109 | |||
Changes in fair value due to changes in inputs or assumptions | [2] | (1) | ||
Changes in fair value due to other changes in fair value | [3] | (121) | ||
Fair value at end of period | $ 858 | $ 744 | ||
[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 December 31, 2017 and were measured under the amortization method at December 31, 2016. For further information refer to Note 12 . | |||
[2] | Primarily reflects changes in prepayment speed and OAS spread assumptions which are updated based on market interest rates. | |||
[3] | Primarily 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 | Dec. 31, 2017 | Dec. 31, 2016 |
Servicing Assets at Fair Value | ||
Fair value at beginning of period | $ 744 | |
Fair value at end of period | 858 | $ 744 |
Fixed Rate Residential Mortgage Loans | ||
Servicing Assets at Fair Value | ||
Fair value at beginning of period | 722 | 757 |
Fair value at end of period | 841 | 722 |
Adjustable Rate Residential Mortgage Loans | ||
Servicing Assets at Fair Value | ||
Fair value at beginning of period | 22 | 27 |
Fair value at end of period | 17 | 22 |
Fixed Rate Automobile Loans | ||
Servicing Assets at Fair Value | ||
Fair value at beginning of period | 0 | 1 |
Fair value at end of period | $ 0 | $ 0 |
MSR (Activity Related to the MS
MSR (Activity Related to the MSR Portfolio) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Servicing Assets at Fair Value | ||||
Securities gains, net - non-qualifying hedges on MSRs | $ 2 | $ 0 | $ 0 | |
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (Mortgage banking net revenue) | [1] | 2 | 24 | 90 |
Recovery of (provision for) MSR impairment (Mortgage banking net revenue) | [1] | 0 | 7 | 4 |
MSR Fair Value Adjustment | [1] | $ (122) | $ 0 | $ 0 |
[1] | Included in mortgage banking net revenue in the Consolidated Statements of Income. |
MSR (Servicing Rights and Resid
MSR (Servicing Rights and Residual Interests Economic Assumptions) (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fixed Rate Residential Mortgage | ||
Schedule of Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 7 years 6 months | 7 years 2 months 12 days |
Prepayment Speed (annual) | 9.10% | 10.30% |
OAS spread (bps) | 4.97% | 5.84% |
Adjustable Rate Residential Mortgage | ||
Schedule of Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 2 years 8 months 12 days | 2 years 9 months 18 days |
Prepayment Speed (annual) | 32.10% | 30.20% |
OAS spread (bps) | 6.60% | 6.79% |
MSR (Sales of Receivables and S
MSR (Sales of Receivables and Servicing Rights - Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Servicing Assets at Fair Value | ||||||
Fair value of automobile loan securitization servicing asset | $ 858 | $ 744 | ||||
Residential mortgage loan sales | [1] | 6,369 | 6,927 | [2] | $ 5,078 | |
Sevicing of residential mortgage loans for other investors | $ 60,000 | 53,600 | ||||
Amortization | $ (131) | $ (140) | ||||
Residential Mortgage Loans | Troubled Debt Restructuring On Nonaccrual Status | ||||||
Servicing Assets at Fair Value | ||||||
Gain on sale of HFS loans | $ 37 | |||||
Residential mortgage loan sales | $ 568 | |||||
[1] | Represents the unpaid principal balance at the time of the sale . | |||||
[2] | Excludes $ 568 of HFS residential mortgage loans previously modified in a TDR that were sold d uring the first quarter of 2015. |
MSR (Sensitivity of the Current
MSR (Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions) (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($) | [1] | |
Fixed Rate Residential Mortgage | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption | ||
Fair Value | $ 841 | |
Weighted- Average Life (in years) | 6 years | |
Prepayment Speed (annual) | 11.40% | |
Impact of Adverse Change on Fair Value 10% | $ 36 | |
Impact of Adverse Change on Fair Value 20% | 69 | |
Impact of Adverse Change on Fair Value 50% | $ 158 | |
OAS spread (bps) | 54.90% | |
Impact of Adverse Change on Fair Value 10% | $ 17 | |
Impact of Adverse Change on Fair Value 20% | 33 | |
Adjustable Rate Residential Mortgage | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption | ||
Fair Value | $ 17 | |
Weighted- Average Life (in years) | 3 years 3 months 18 days | |
Prepayment Speed (annual) | 24.60% | |
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) | 78.50% | |
Impact of Adverse Change on Fair Value 10% | $ 0 | |
Impact of Adverse Change on Fair Value 20% | $ 1 | |
[1] | (a) The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial . |
Derivatives (Derivative Financi
Derivatives (Derivative Financial Instruments - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2009 | |
Derivative | |||
Valuation adjustments related to the credit risk associated with counterparties of customer accommodation derivative contracts | $ 3 | $ 6 | |
Maximum Length Of Time Hedged In Interest Rate Cash Flow Hedge | 2 years | ||
Notional amount of the risk participations agreements | $ 2,838 | 2,467 | |
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||
Credit Risk | |||
Derivative | |||
Credit Risk Derivatives Average Life | 2 years 10 months 24 days | ||
Interest Rate Contract | |||
Derivative | |||
Fair value of risk participation agreements | $ 5 | 4 | |
Interest Rate Contract | Cash Flow Hedging | |||
Derivative | |||
Deferred gains, net of tax, on cash flow hedges were recorded in accumulated other comprehensive income | 9 | 10 | |
Net deferred gains, net of tax, recorded in accumulated other comprehensive income are expected to be reclassified into earnings | 3 | ||
Total collateral | |||
Derivative | |||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 409 | 444 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 365 | $ 399 | |
Amount of variation margin payment applied to derivative asset contracts | 31 | ||
Amount of variation margin payment applied to derivative liability contracts | $ 74 |
Derivatives (Notional Amounts a
Derivatives (Notional Amounts and Fair Values for All Derivative Instruments Included in the Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value | ||
Fair value - Derivative Assets | $ 823 | $ 1,057 |
Fair value - Derivative Liabilities | 602 | 666 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 297 | 345 |
Fair value - Derivative Liabilities | 17 | 12 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 297 | 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 | 3,705 | 3,455 |
Fair value - Derivative Assets | 297 | 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 | 12 | 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 | 12 | 0 |
Nondesignated | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 526 | 712 |
Fair value - Derivative Liabilities | 585 | 654 |
Nondesignated | Risk Management and Other Business Purposes | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 75 | 185 |
Fair value - Derivative Liabilities | 154 | 133 |
Nondesignated | Risk Management and Other Business Purposes | Interest Rate Contract | Mortgage Servicing Rights | ||
Derivatives, Fair Value | ||
Notional amount | 11,035 | 10,522 |
Fair value - Derivative Assets | 54 | 165 |
Fair value - Derivative Liabilities | 15 | 39 |
Nondesignated | Risk Management and Other Business Purposes | Forward Contracts | Assets Held For Sale | Residential Mortgage | ||
Derivatives, Fair Value | ||
Notional amount | 1,284 | 1,823 |
Fair value - Derivative Assets | 1 | 20 |
Fair value - Derivative Liabilities | 1 | 3 |
Nondesignated | Risk Management and Other Business Purposes | Warrant | ||
Derivatives, Fair Value | ||
Notional amount | 20 | |
Fair value - Derivative Assets | 20 | |
Fair value - Derivative Liabilities | 0 | |
Nondesignated | Risk Management and Other Business Purposes | Swap | ||
Derivatives, Fair Value | ||
Notional amount | 1,900 | 1,300 |
Fair value - Derivative Assets | 0 | 0 |
Fair value - Derivative Liabilities | 137 | 91 |
Nondesignated | Risk Management and Other Business Purposes | TBA Securities | ||
Derivatives, Fair Value | ||
Notional amount | 26 | |
Fair value - Derivative Assets | 0 | |
Fair value - Derivative Liabilities | 0 | |
Nondesignated | Risk Management and Other Business Purposes | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Notional amount | 112 | 111 |
Fair value - Derivative Assets | 0 | 0 |
Fair value - Derivative Liabilities | 1 | 0 |
Nondesignated | Customer Accommodation | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 451 | 527 |
Fair value - Derivative Liabilities | 431 | 521 |
Nondesignated | Customer Accommodation | Interest Rate Contract | ||
Derivatives, Fair Value | ||
Notional amount | 42,216 | 33,431 |
Fair value - Derivative Assets | 154 | 205 |
Fair value - Derivative Liabilities | 145 | 210 |
Nondesignated | Customer Accommodation | Interest Rate Lock Commitments | ||
Derivatives, Fair Value | ||
Notional amount | 446 | 701 |
Fair value - Derivative Assets | 8 | 13 |
Fair value - Derivative Liabilities | 0 | 1 |
Nondesignated | Customer Accommodation | Commodity Contract | ||
Derivatives, Fair Value | ||
Notional amount | 4,125 | 2,095 |
Fair value - Derivative Assets | 165 | 107 |
Fair value - Derivative Liabilities | 167 | 106 |
Nondesignated | Customer Accommodation | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Notional amount | 12,654 | 11,013 |
Fair value - Derivative Assets | 124 | 202 |
Fair value - Derivative Liabilities | $ 119 | $ 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 | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value | |||
Change in fair value of interest rate swaps hedging long-term debt | $ (33) | $ (59) | $ (29) |
Change in fair value of hedged long-term debt | $ 31 | $ 54 | $ 25 |
Derivatives (Net Gains (Losses)
Derivatives (Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges) (Detail) - Cash Flow Hedging - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) | |||
Amount of pretax net (losses) gains recognized in OCI | $ (11) | $ 30 | $ 74 |
Interest Income (Expense) Net | |||
Derivative Instruments, Gain (Loss) | |||
Amount of pretax net gains reclassified from OCI into net income | $ 19 | $ 48 | $ 75 |
Derivatives (Net Gains (Loss126
Derivatives (Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used for Risk Management and Other Business Purposes) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Derivative Instruments, Gain (Loss) | ||||||
Net gains (losses) recorded in earnings | [1] | $ 2 | $ 24 | $ 90 | ||
Interest Rate Contract | Forward Contracts | Loans Held-for-Sale | Mortgage Banking Revenue | ||||||
Derivative Instruments, Gain (Loss) | ||||||
Net gains (losses) recorded in earnings | (17) | 14 | 8 | |||
Interest Rate Contract | Mortgage Servicing Rights | Mortgage Banking Revenue | Residential Mortgage | ||||||
Derivative Instruments, Gain (Loss) | ||||||
Net gains (losses) recorded in earnings | 2 | 24 | 90 | |||
Foreign Exchange Contract | Forward Contracts | Other Noninterest Income | ||||||
Derivative Instruments, Gain (Loss) | ||||||
Net gains (losses) recorded in earnings | (7) | 2 | 23 | |||
Equity Contract | Warrant | Other Noninterest Income | ||||||
Derivative Instruments, Gain (Loss) | ||||||
Net gains (losses) recorded in earnings | 0 | 73 | [2] | 325 | [2] | |
Equity Contract | Swap | Other Noninterest Income | ||||||
Derivative Instruments, Gain (Loss) | ||||||
Net gains (losses) recorded in earnings | $ (80) | $ (56) | $ (37) | |||
[1] | Included in mortgage banking net revenue in the Consolidated Statements of Income. | |||||
[2] | a) The Bancorp recognized a net gain of $ 9 on the exercise of the remaining warrant during the fourth quarter of 2016 and a net gain of $89 on both the sale and partial exercise of the warrant during the fourth quarter of 2015 |
Derivatives (Net Gains (Loss127
Derivatives (Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used for Risk Management and Other Business Purposes) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Common Class A Member | Vantiv Holding, LLC | ||
Derivative Instruments, Gain (Loss) | ||
Proceeds From Warrant Exercises | $ 9 | $ 89 |
Derivatives (Risk Ratings of th
Derivatives (Risk Ratings of the Notional Amount of Risk Participation Agreements) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | $ 2,838 | $ 2,467 |
Pass | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | 2,748 | 2,447 |
Risk Level, Special Mention | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | 66 | 14 |
Risk Level, Substandard | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | $ 24 | $ 6 |
Derivatives (Net Gains (Loss129
Derivatives (Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used For Customer Accommodation) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | [1] | $ 2 | $ 24 | $ 90 |
Interest Rate Contract | Customer Contracts | Corporate Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 21 | 22 | 23 | |
Interest Rate Contract | Customer Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | (5) | 0 | (1) | |
Interest Rate Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 2 | 1 | 1 | |
Interest Rate Contract | Interest Rate Lock Commitments | Mortgage Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 93 | 114 | 111 | |
Commodity Contract | Customer Contracts | Corporate Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 6 | 6 | 5 | |
Commodity Contract | Customer Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 1 | (1) | (2) | |
Commodity Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 0 | 1 | 6 | |
Foreign Exchange Contract | Customer Contracts | Corporate Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 48 | 62 | 70 | |
Foreign Exchange Contract | Customer Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 2 | (2) | 0 | |
Foreign Exchange Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ 1 | $ 1 | $ 0 | |
[1] | Included in mortgage banking net revenue in the Consolidated Statements of Income. |
Derivatives (Offsetting Derivat
Derivatives (Offsetting Derivative Financial Instruments) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | ||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | $ 823 | $ 1,057 | ||
Derivative, Collateral, Obligation to Return Cash | (341) | (374) | ||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | 602 | 666 | ||
Assets | ||||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | 815 | [1] | 1,044 | [2] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (213) | (374) | ||
Derivative, Collateral, Obligation to Return Cash | (362) | [3] | (377) | [4] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 240 | 293 | ||
Liabilities | ||||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | 602 | [1] | 665 | [2] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (213) | (374) | ||
Derivative Liabilities, Collateral, Right to Reclaim Cash | (155) | [3] | (125) | [4] |
Derivative Fair Value Amount Offset Against Collateral Net | 234 | 166 | ||
Derivative | Assets | ||||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | 815 | [1] | 1,044 | [2] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (213) | (374) | ||
Derivative, Collateral, Obligation to Return Cash | (362) | [3] | (377) | [4] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 240 | 293 | ||
Derivative | Liabilities | ||||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | 602 | [1] | 665 | [2] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (213) | (374) | ||
Derivative Liabilities, Collateral, Right to Reclaim Cash | (155) | [3] | (125) | [4] |
Derivative Fair Value Amount Offset Against Collateral Net | $ 234 | $ 166 | ||
[1] | (a) Amount does not include 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 arrangement s . | |||
[3] | (b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related d erivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. | |||
[4] | Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. |
Other Assets (Components of Oth
Other Assets (Components of Other Assets Included in the Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Prepaid Expense and Other Assets | |||
Accounts receivable and drafts-in-process | $ 1,763 | $ 2,158 | |
Bank owned life insurance | 1,720 | 1,681 | |
Partnership investments | 1,557 | 1,689 | |
Derivative instruments | 823 | 1,057 | |
Accrued interest and fees receivable | 378 | 350 | |
Investment in Vantiv Holding, LLC | 219 | 414 | |
Vantiv, Inc. TRA put/call receivable | 105 | 165 | |
Prepaid expenses | 87 | 83 | |
Income tax receivable | 66 | 1 | |
OREO and other repossessed personal property | 54 | 84 | |
Other | 203 | 162 | |
Total other assets | [1] | $ 6,975 | $ 7,844 |
[1] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . |
Other Assets (Other Assets - Ad
Other Assets (Other Assets - Additional Information) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2014 | [1] | Sep. 30, 2013 | [1] | Jun. 30, 2013 | [1] | Dec. 31, 2012 | [1] | Mar. 31, 2012 | Jun. 30, 2009 | |
Other assets | |||||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||||||||||||||
Vantiv Holding, LLC | |||||||||||||||
Other assets | |||||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||||||||||||||
Percentage of ownership under the equity method of accounting | 8.60% | 8.60% | 18.30% | [1] | 18.30% | 22.80% | 25.10% | 27.70% | 33.10% | 39.00% | 49.00% | ||||
Payment From Vantiv Inc to Bancorp To Terminate And Settle Certain Remaining TRA Cash Flows | $ 171 | ||||||||||||||
Potential Termination And Settlement Of Tra Cash Flows | $ 394 | ||||||||||||||
[1] | (a) The Bancorp’s remaining investment in Vantiv Holding, LLC of $ 219 as of December 31, 201 7 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. |
Short-Term Borrowings (Summary
Short-Term Borrowings (Summary of Short-Term Borrowings and Weighted-Average Rates) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Short Term Debt | ||
Federal funds purchased | $ 174 | $ 132 |
Other short-term borrowings | 4,012 | 3,535 |
Federal Funds Purchased | ||
Short Term Debt | ||
Federal funds purchased | 174 | 132 |
Short-term borrowings, average | 557 | 506 |
Short-term borrowings, maximum month-end balance | $ 1,495 | $ 739 |
Short-term borrowngs, rate | 1.37% | 0.61% |
Short-term borrowings, average rate | 1.01% | 0.39% |
Other Short Term Borrowings | ||
Short Term Debt | ||
Other short-term borrowings | $ 4,012 | $ 3,535 |
Short-term borrowings, average | 3,158 | 2,845 |
Short-term borrowings, maximum month-end balance | $ 6,307 | $ 6,374 |
Short-term borrowngs, rate | 1.28% | 0.54% |
Short-term borrowings, average rate | 0.96% | 0.36% |
Short-Term Borrowings (Componen
Short-Term Borrowings (Components of Other Short-Term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Short Term Debt | ||
FHLB advances | $ 3,125 | $ 2,500 |
Securities sold under repurchase agreements | 546 | 661 |
Derivative collateral | 341 | 374 |
Total other short-term borrowings | $ 4,012 | $ 3,535 |
Long-Term Debt (Summary of the
Long-Term Debt (Summary of the Bancorp's Long-Term Borrowings) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | |||
Debt Instrument | ||||
Long-term debt | [1] | $ 14,904 | $ 14,388 | |
Variable Interest Entity, Primary Beneficiary | ||||
Debt Instrument | ||||
Long-term debt | 1,190 | 1,094 | ||
Parent Company | ||||
Debt Instrument | ||||
Long-term debt | $ 5,347 | |||
Parent Company | Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Feb. 28, 2014 | |||
Maturity date(s) End | Mar. 1, 2019 | |||
Interest rate | 2.30% | |||
Long-term debt | $ 499 | 499 | ||
Parent Company | Senior Debt Obligations | Fixed Rate 2.875 Percent Due 2020 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Jul. 27, 2015 | |||
Maturity date(s) End | Jul. 27, 2020 | |||
Interest rate | 2.875% | |||
Long-term debt | $ 1,097 | 1,096 | ||
Parent Company | Senior Debt Obligations | Fixed Rate 2.60 Percent Notes Due 2022 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Jun. 15, 2017 | |||
Maturity date(s) End | Jun. 15, 2022 | |||
Interest rate | 2.60% | |||
Long-term debt | $ 697 | 0 | ||
Parent Company | Senior Debt Obligations | Fixed Rate 3.50 Percent Due 2022 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Mar. 7, 2012 | |||
Maturity date(s) End | Mar. 15, 2022 | |||
Interest rate | 3.50% | |||
Long-term debt | $ 497 | 497 | ||
Parent Company | Subordinated Debt | Fixed Rate 5.45 Percent Notes Due 2017 | ||||
Debt Instrument | ||||
Maturity date(s) Start | [2] | Dec. 20, 2006 | ||
Maturity date(s) End | [2] | Jan. 15, 2017 | ||
Interest rate | [2] | 5.45% | ||
Long-term debt | [2] | $ 0 | 501 | |
Parent Company | Subordinated Debt | Fixed Rate 4.50 Percent Notes Due 2018 | ||||
Debt Instrument | ||||
Maturity date(s) Start | [2] | May 23, 2003 | ||
Maturity date(s) End | [2] | Jun. 1, 2018 | ||
Interest rate | [2] | 4.50% | ||
Long-term debt | [2] | $ 505 | 519 | |
Parent Company | Subordinated Debt | Fixed Rate 4.30 Notes Due 2024 | ||||
Debt Instrument | ||||
Maturity date(s) Start | [2] | Nov. 20, 2013 | ||
Maturity date(s) End | [2] | Jan. 16, 2024 | ||
Interest rate | [2] | 4.30% | ||
Long-term debt | [2] | $ 747 | 746 | |
Parent Company | Subordinated Debt | Fixed Rate 8.25 Percent Notes Due 2038 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Mar. 4, 2008 | |||
Maturity date(s) End | Mar. 1, 2038 | |||
Interest rate | [2] | 8.25% | ||
Long-term debt | [2] | $ 1,305 | 1,312 | |
Subsidiaries | ||||
Debt Instrument | ||||
Long-term debt | $ 9,557 | |||
Subsidiaries | Debt Other Variable Percent Due 2018 Through 2039 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Jan. 1, 2018 | |||
Maturity date(s) End | Dec. 31, 2039 | |||
Long-term debt | $ 105 | 124 | ||
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Fixed Rate | Automobile Loans | ||||
Debt Instrument | ||||
Maturity date(s) Start | Jan. 1, 2018 | |||
Maturity date(s) End | Dec. 31, 2024 | |||
Long-term debt | $ 982 | 1,061 | ||
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Fixed Rate | Automobile Loans | Lower limit | ||||
Debt Instrument | ||||
Interest rate | 1.30% | |||
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Fixed Rate | Automobile Loans | Upper Limit | ||||
Debt Instrument | ||||
Interest rate | 2.03% | |||
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Floating Rate | Automobile Loans | ||||
Debt Instrument | ||||
Maturity date(s) End | [3] | Dec. 31, 2020 | ||
Variable interest rate | [3] | 1.63% | ||
Long-term debt | [3] | $ 75 | 33 | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Mar. 15, 2016 | |||
Maturity date(s) End | Mar. 15, 2019 | |||
Interest rate | 2.30% | |||
Long-term debt | $ 749 | 748 | ||
Subsidiaries | Senior Debt Obligations | Fixed rate 1.35 percent notes due 2017 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Apr. 25, 2014 | |||
Maturity date(s) End | Jun. 1, 2017 | |||
Interest rate | 1.35% | |||
Long-term debt | $ 0 | 650 | ||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.15 Percent Notes Due 2018 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Aug. 20, 2015 | |||
Maturity date(s) End | Aug. 20, 2018 | |||
Interest rate | 2.15% | |||
Long-term debt | $ 996 | 997 | ||
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.45 Percent Notes Due 2018 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Feb. 28, 2013 | |||
Maturity date(s) End | Feb. 28, 2018 | |||
Interest rate | 1.45% | |||
Long-term debt | $ 600 | 598 | ||
Subsidiaries | Senior Debt Obligations | Floating Rate 2.35 Percent Notes Due 2018 | ||||
Debt Instrument | ||||
Maturity date(s) Start | [3] | Aug. 20, 2015 | ||
Maturity date(s) End | [3] | Aug. 20, 2018 | ||
Variable interest rate | [3] | 2.35% | ||
Long-term debt | [3] | $ 250 | 250 | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.375 Percent Notes Due 2019 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Apr. 25, 2014 | |||
Maturity date(s) End | Apr. 25, 2019 | |||
Interest rate | 2.375% | |||
Long-term debt | $ 849 | 849 | ||
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.625 Percent Notes Due 2019 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Sep. 27, 2016 | |||
Maturity date(s) End | Sep. 27, 2019 | |||
Interest rate | 1.625% | |||
Long-term debt | $ 736 | 737 | ||
Subsidiaries | Senior Debt Obligations | Floating Rate 2.26 Percent Notes Due 2019 | ||||
Debt Instrument | ||||
Maturity date(s) Start | [3] | Sep. 27, 2016 | ||
Maturity date(s) End | [3] | Sep. 27, 2019 | ||
Variable interest rate | [3] | 2.26% | ||
Long-term debt | [3] | $ 250 | 249 | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.20 Percent Notes Due 2020 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Oct. 30, 2017 | |||
Maturity date(s) End | Oct. 30, 2020 | |||
Interest rate | 2.20% | |||
Long-term debt | $ 744 | 0 | ||
Subsidiaries | Senior Debt Obligations | Floating Rate 1.63 Percent Notes Due 2020 | ||||
Debt Instrument | ||||
Maturity date(s) Start | [3] | Oct. 30, 2017 | ||
Maturity date(s) End | [3] | Oct. 30, 2020 | ||
Variable interest rate | [3] | 1.63% | ||
Long-term debt | $ 299 | [3] | 0 | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.25 Percent Notes Due 2021 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Jun. 14, 2016 | |||
Maturity date(s) End | Jun. 14, 2021 | |||
Interest rate | 2.25% | |||
Long-term debt | $ 1,247 | 1,246 | ||
Subsidiaries | Senior Debt Obligations | Fixed rate 2.875 percent Notes due 2021 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Sep. 5, 2014 | |||
Maturity date(s) End | Oct. 1, 2021 | |||
Interest rate | 2.875% | |||
Long-term debt | $ 846 | 845 | ||
Subsidiaries | Subordinated Debt | Fixed Rate 3.85 Percent Notes Due 2026 | ||||
Debt Instrument | ||||
Maturity date(s) Start | [2] | Mar. 15, 2016 | ||
Maturity date(s) End | [2] | Mar. 15, 2026 | ||
Interest rate | [2] | 3.85% | ||
Long-term debt | [2] | $ 747 | 746 | |
Subsidiaries | Junior Subordinated Debt | Floating Rate .05% - 6.87% Debentures Due 2035 | First Charter Capital Trusts | ||||
Debt Instrument | ||||
Maturity date(s) Start | [3] | Jun. 28, 2005 | ||
Maturity date(s) End | [3] | Dec. 15, 2035 | ||
Long-term debt | [3] | $ 52 | 52 | |
Subsidiaries | Junior Subordinated Debt | Floating Rate .05% - 6.87% Debentures Due 2035 | Lower limit | First Charter Capital Trusts | ||||
Debt Instrument | ||||
Variable interest rate | [3] | 1.30% | ||
Subsidiaries | Junior Subordinated Debt | Floating Rate .05% - 6.87% Debentures Due 2035 | Upper Limit | First Charter Capital Trusts | ||||
Debt Instrument | ||||
Variable interest rate | [3] | 2.03% | ||
Subsidiaries | Federal Home Loan Bank Advances .05 To 6.87 Percent Due 2018 Through 2041 | ||||
Debt Instrument | ||||
Maturity date(s) Start | Jan. 1, 2018 | |||
Maturity date(s) End | Dec. 31, 2041 | |||
Long-term debt | $ 30 | |||
Subsidiaries | Federal Home Loan Bank Advances .05 To 6.87 Percent Due 2018 Through 2041 | Lower limit | ||||
Debt Instrument | ||||
Interest rate | 0.05% | |||
Subsidiaries | Federal Home Loan Bank Advances .05 To 6.87 Percent Due 2018 Through 2041 | Upper Limit | ||||
Debt Instrument | ||||
Interest rate | 6.87% | |||
Subsidiaries | Federal Home Loan Bank Advances .05 To 6.87 Percent Due 2018 Through 2041 | FHLB Rate 0.05 To 6.87 Percent Debentures Due 2018 And 2041 | ||||
Debt Instrument | ||||
Long-term debt | $ 33 | |||
[1] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . | |||
[2] | In aggregate, $ 2.6 billion and $ 2.7 billion qualifies as Tier II capital for regulatory capital purposes as of December, 31 2017 and 2016 , respectively. | |||
[3] | These rates reflect the floating rates as of December 31, 2017 . |
Long-Term Debt (Summary of t136
Long-Term Debt (Summary of the Bancorp's Long-Term Borrowings) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument | |||
Long-term debt | [1] | $ 14,904 | $ 14,388 |
Amount Qualifying As Tier Two Capital For Regulatory Capital Purposes | |||
Debt Instrument | |||
Long-term debt | $ 2,600 | $ 2,700 | |
[1] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . |
Long-Term Debt (Schedule of Agg
Long-Term Debt (Schedule of Aggregate Maturities of Long-Term Debt Obligations) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument | |||
Contractually obligated payments for long-term debt due in 2018 | $ 2,412 | ||
Contractually obligated payments for long-term debt due in 2019 | 3,099 | ||
Contractually obligated payments for long-term debt due in 2020 | 2,574 | ||
Contractually obligated payments for long-term debt due in 2021 | 2,195 | ||
Contractually obligated payments for long-term debt due in 2022 | 1,657 | ||
Thereafter | 2,967 | ||
Total | [1] | 14,904 | $ 14,388 |
Parent Company | |||
Debt Instrument | |||
Contractually obligated payments for long-term debt due in 2018 | 505 | ||
Contractually obligated payments for long-term debt due in 2019 | 499 | ||
Contractually obligated payments for long-term debt due in 2020 | 1,097 | ||
Contractually obligated payments for long-term debt due in 2021 | 0 | ||
Contractually obligated payments for long-term debt due in 2022 | 1,194 | ||
Thereafter | 2,052 | ||
Total | 5,347 | ||
Subsidiaries | |||
Debt Instrument | |||
Contractually obligated payments for long-term debt due in 2018 | 1,907 | ||
Contractually obligated payments for long-term debt due in 2019 | 2,600 | ||
Contractually obligated payments for long-term debt due in 2020 | 1,477 | ||
Contractually obligated payments for long-term debt due in 2021 | 2,195 | ||
Contractually obligated payments for long-term debt due in 2022 | 463 | ||
Thereafter | 915 | ||
Total | $ 9,557 | ||
[1] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . |
Long-Term Debt (Long-Term Debt
Long-Term Debt (Long-Term Debt - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | |||
Debt Instrument | |||||||
Long-term debt | [1] | $ 14,904 | $ 14,388 | ||||
Debt, outstanding principal balance | 14,700 | 14,100 | |||||
Debt, discounts and premiums | 21 | 24 | |||||
Additions for mark-to-market adjustments on hedged debt | 298 | 328 | |||||
Variable Interest Entity, Primary Beneficiary | Automobile Loans | |||||||
Debt Instrument | |||||||
Long-term debt | 747 | ||||||
Carry value of automobile loans securitized | 1,100 | ||||||
Face amount of notes issued or redeemed | 1,000 | ||||||
Parent Company | |||||||
Debt Instrument | |||||||
Long-term debt | 5,347 | ||||||
Parent Company | Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 499 | 499 | |||||
Issue of senior notes to third party investors | $ 500 | ||||||
Maturity date(s) Start | Feb. 28, 2014 | ||||||
Maturity date(s) End | Mar. 1, 2019 | ||||||
Parent Company | Senior Debt Obligations | Fixed Rate 2.875 Percent Due 2020 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 1,097 | 1,096 | |||||
Issue of senior notes to third party investors | $ 1,100 | ||||||
Maturity date(s) Start | Jul. 27, 2015 | ||||||
Maturity date(s) End | Jul. 27, 2020 | ||||||
Parent Company | Senior Debt Obligations | Fixed Rate 2.60 Percent Notes Due 2022 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 697 | 0 | |||||
Issue of senior notes to third party investors | $ 700 | ||||||
Maturity date(s) Start | Jun. 15, 2017 | ||||||
Maturity date(s) End | Jun. 15, 2022 | ||||||
Parent Company | Senior Debt Obligations | Fixed Rate 3.50 Percent Due 2022 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 497 | 497 | |||||
Issue of senior notes to third party investors | $ 500 | ||||||
Maturity date(s) Start | Mar. 7, 2012 | ||||||
Maturity date(s) End | Mar. 15, 2022 | ||||||
Parent Company | Subordinated Debt | Fixed Rate 4.50 Percent Notes Due 2018 | |||||||
Debt Instrument | |||||||
Long-term debt | [2] | $ 505 | 519 | ||||
Maturity date(s) Start | [2] | May 23, 2003 | |||||
Maturity date(s) End | [2] | Jun. 1, 2018 | |||||
Interest rate paid | 1.73% | ||||||
Parent Company | Subordinated Debt | Fixed Rate 4.50 Percent Notes Due 2018 | Three Month LIBOR | |||||||
Debt Instrument | |||||||
Basis points | 25 | ||||||
Parent Company | Subordinated Debt | Fixed Rate 4.30 Notes Due 2024 | |||||||
Debt Instrument | |||||||
Long-term debt | [2] | $ 747 | 746 | ||||
Issue of senior notes to third party investors | 750 | ||||||
Maturity date(s) Start | [2] | Nov. 20, 2013 | |||||
Maturity date(s) End | [2] | Jan. 16, 2024 | |||||
Parent Company | Subordinated Debt | Fixed Rate 8.25 Percent Notes Due 2038 | |||||||
Debt Instrument | |||||||
Long-term debt | [2] | $ 1,305 | 1,312 | ||||
Issue of senior notes to third party investors | $ 1,000 | ||||||
Maturity date(s) Start | Mar. 4, 2008 | ||||||
Maturity date(s) End | Mar. 1, 2038 | ||||||
Amount of debt converted to floating rate | $ 705 | ||||||
Interest rate paid | 4.53% | ||||||
Subsidiaries | |||||||
Debt Instrument | |||||||
Long-term debt | $ 9,557 | ||||||
Debt, available for future issuance | 16,700 | ||||||
Global Bank Note Program | 25,000 | ||||||
Subsidiaries | FHLB Rate 0.05 To 6.87 Percent Debentures Due 2018 And 2041 | Federal Home Loan Bank Advances .05 To 6.87 Percent Due 2018 Through 2041 | |||||||
Debt Instrument | |||||||
Residential mortgage loans and securities serving as FHLB collateral | 15,600 | ||||||
FHLB advance | 30 | ||||||
FHLB advances maturing 2018 | 4 | ||||||
FHLB advances maturing 2019 | 8 | ||||||
FHLB advances maturing 2020 | 3 | ||||||
FHLB advances maturing 2021 | 3 | ||||||
FHLB advances maturing thereafter | 11 | ||||||
FHLB advances maturing 2022 | 1 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 749 | 748 | |||||
Issue of senior notes to third party investors | 750 | ||||||
Maturity date(s) Start | Mar. 15, 2016 | ||||||
Maturity date(s) End | Mar. 15, 2019 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.15 Percent Notes Due 2018 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 996 | 997 | |||||
Issue of senior notes to third party investors | 1,000 | ||||||
Maturity date(s) Start | Aug. 20, 2015 | ||||||
Maturity date(s) End | Aug. 20, 2018 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.15 Percent Notes Due 2018 | Three Month LIBOR | |||||||
Debt Instrument | |||||||
Basis points | 90 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.45 Percent Notes Due 2018 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 600 | 598 | |||||
Issue of senior notes to third party investors | $ 600 | ||||||
Maturity date(s) Start | Feb. 28, 2013 | ||||||
Maturity date(s) End | Feb. 28, 2018 | ||||||
Subsidiaries | Senior Debt Obligations | Floating Rate 2.35 Percent Notes Due 2018 | |||||||
Debt Instrument | |||||||
Long-term debt | [3] | $ 250 | 250 | ||||
Issue of senior notes to third party investors | $ 250 | ||||||
Maturity date(s) Start | [3] | Aug. 20, 2015 | |||||
Maturity date(s) End | [3] | Aug. 20, 2018 | |||||
Subsidiaries | Senior Debt Obligations | Floating Rate 2.35 Percent Notes Due 2018 | Three Month LIBOR | |||||||
Debt Instrument | |||||||
Basis points | 91 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.375 Percent Notes Due 2019 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 849 | 849 | |||||
Issue of senior notes to third party investors | 850 | ||||||
Maturity date(s) Start | Apr. 25, 2014 | ||||||
Maturity date(s) End | Apr. 25, 2019 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.625 Percent Notes Due 2019 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 736 | 737 | |||||
Issue of senior notes to third party investors | 750 | ||||||
Maturity date(s) Start | Sep. 27, 2016 | ||||||
Maturity date(s) End | Sep. 27, 2019 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.625 Percent Notes Due 2019 | Three Month LIBOR | |||||||
Debt Instrument | |||||||
Basis points | 53 | ||||||
Subsidiaries | Senior Debt Obligations | Floating Rate 2.26 Percent Notes Due 2019 | |||||||
Debt Instrument | |||||||
Long-term debt | [3] | $ 250 | 249 | ||||
Issue of senior notes to third party investors | 250 | ||||||
Maturity date(s) Start | [3] | Sep. 27, 2016 | |||||
Maturity date(s) End | [3] | Sep. 27, 2019 | |||||
Subsidiaries | Senior Debt Obligations | Floating Rate 2.26 Percent Notes Due 2019 | Three Month LIBOR | |||||||
Debt Instrument | |||||||
Basis points | 59 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.20 Percent Notes Due 2020 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 744 | 0 | |||||
Issue of senior notes to third party investors | $ 750 | ||||||
Maturity date(s) Start | Oct. 30, 2017 | ||||||
Maturity date(s) End | Oct. 30, 2020 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.20 Percent Notes Due 2020 | Three Month LIBOR | |||||||
Debt Instrument | |||||||
Basis points | 24 | ||||||
Subsidiaries | Senior Debt Obligations | Floating Rate 1.63 Percent Notes Due 2020 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 299 | [3] | 0 | ||||
Issue of senior notes to third party investors | $ 300 | ||||||
Maturity date(s) Start | [3] | Oct. 30, 2017 | |||||
Maturity date(s) End | [3] | Oct. 30, 2020 | |||||
Subsidiaries | Senior Debt Obligations | Floating Rate 1.63 Percent Notes Due 2020 | Three Month LIBOR | |||||||
Debt Instrument | |||||||
Basis points | 25 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.25 Percent Notes Due 2021 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 1,247 | 1,246 | |||||
Issue of senior notes to third party investors | 1,300 | ||||||
Maturity date(s) Start | Jun. 14, 2016 | ||||||
Maturity date(s) End | Jun. 14, 2021 | ||||||
Subsidiaries | Senior Debt Obligations | Fixed rate 2.875 percent Notes due 2021 | |||||||
Debt Instrument | |||||||
Long-term debt | $ 846 | 845 | |||||
Issue of senior notes to third party investors | $ 850 | ||||||
Maturity date(s) Start | Sep. 5, 2014 | ||||||
Maturity date(s) End | Oct. 1, 2021 | ||||||
Subsidiaries | Subordinated Debt | Fixed Rate 3.85 Percent Notes Due 2026 | |||||||
Debt Instrument | |||||||
Long-term debt | [2] | $ 747 | 746 | ||||
Issue of senior notes to third party investors | $ 750 | ||||||
Maturity date(s) Start | [2] | Mar. 15, 2016 | |||||
Maturity date(s) End | [2] | Mar. 15, 2026 | |||||
Subsidiaries | Junior Subordinated Debt | Floating Rate .05% - 6.87% Debentures Due 2035 | Three Month LIBOR | First Charter Capital Trust I | |||||||
Debt Instrument | |||||||
Basis points | 169 | ||||||
Subsidiaries | Junior Subordinated Debt | Floating Rate .05% - 6.87% Debentures Due 2035 | Three Month LIBOR | First Charter Capital Trust II | |||||||
Debt Instrument | |||||||
Basis points | 142 | ||||||
[1] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . | ||||||
[2] | In aggregate, $ 2.6 billion and $ 2.7 billion qualifies as Tier II capital for regulatory capital purposes as of December, 31 2017 and 2016 , respectively. | ||||||
[3] | These rates reflect the floating rates as of December 31, 2017 . |
Commitments (Summary of Signifi
Commitments (Summary of Significant Commitments) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments to Extend Credit | ||
Long-term Purchase Commitment | ||
Commitments | $ 68,106 | $ 67,909 |
Letters of Credit | ||
Long-term Purchase Commitment | ||
Commitments | 2,185 | 2,583 |
Forward Contracts Related to Residential Mortgage LoansHeld for Sale | ||
Long-term Purchase Commitment | ||
Commitments | 1,284 | 1,823 |
Noncancelable Operating Lease Obligations | ||
Long-term Purchase Commitment | ||
Commitments | 568 | 576 |
Capital Commitments for Private Equity Investments | ||
Long-term Purchase Commitment | ||
Commitments | 48 | 59 |
Purchase Obligations | ||
Long-term Purchase Commitment | ||
Commitments | 144 | 57 |
Capital Expenditures | ||
Long-term Purchase Commitment | ||
Commitments | 37 | 29 |
Capital Lease Obligations | ||
Long-term Purchase Commitment | ||
Commitments | $ 26 | $ 19 |
Commitments (Risk Rating Under
Commitments (Risk Rating Under the Risk Rating System) (Detail) - Commitments to Extend Credit - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Line of Credit Facility | ||
Commitments | $ 68,106 | $ 67,909 |
Pass | ||
Line of Credit Facility | ||
Commitments | 67,254 | 66,802 |
Special Mention | ||
Line of Credit Facility | ||
Commitments | 330 | 338 |
Substandard | ||
Line of Credit Facility | ||
Commitments | 522 | 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 | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | Dec. 31, 2009 | |||
Loss Contingencies | |||||||||||||
Letters of Credit | $ 2,185 | $ 2,583 | |||||||||||
Margin account balance held by the brokerage clearing agent | 15 | 15 | |||||||||||
Amount in excess of amounts reserved | 31 | ||||||||||||
Credit loss reserve | 1,196 | [1] | 1,253 | [1] | $ 1,272 | $ 1,322 | |||||||
Visa Class B shares carryover basis | $ 0 | ||||||||||||
Residential Mortgage | |||||||||||||
Loss Contingencies | |||||||||||||
Amount in excess of amounts reserved | 11 | ||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | 9 | 13 | $ 25 | ||||||||||
Outstanding balances on residential mortgage loans sold with credit recourse | $ 312 | $ 374 | |||||||||||
Delinquency Rates | 3.00% | 3.20% | |||||||||||
Credit loss reserve | $ 5 | $ 7 | |||||||||||
Make Whole Payments | 1 | 1 | |||||||||||
Repurchased Outstanding Principal | 12 | 17 | |||||||||||
Repurchase Demand Request | 15 | 22 | |||||||||||
Outstanding Repurchase Demand Inventory | 1 | 2 | |||||||||||
Secured Debt | |||||||||||||
Loss Contingencies | |||||||||||||
Fully and unconditionally guaranteed certain long-term borrowing obligations issued by wholly-owned issuing trust entities | 62 | 62 | |||||||||||
Standby Letters of Credit | |||||||||||||
Loss Contingencies | |||||||||||||
Reserve for unfunded commitments | $ 6 | $ 3 | |||||||||||
Standby letters of credit as a percentage of total letters of credit | 99.00% | 99.00% | |||||||||||
Standby Letters of Credit | Secured Debt | |||||||||||||
Loss Contingencies | |||||||||||||
Standby letters of credit as a percentage of total letters of credit | 61.00% | 62.00% | |||||||||||
Variable Rate Demand Note | |||||||||||||
Loss Contingencies | |||||||||||||
Fifth Third Securities, Inc. (FTS) acted as the remarketing agent to issuers of VRDNs | $ 508 | $ 784 | |||||||||||
Letters of Credit | 94 | 145 | |||||||||||
Total Variable Rate Demand Notes | 602 | 929 | |||||||||||
Letters Credit Issued Related Variable Rate Demand Notes | 331 | 609 | |||||||||||
Variable Rate Demand Note | Trading Securities | |||||||||||||
Loss Contingencies | |||||||||||||
Total Variable Rate Demand Notes | 1 | 6 | |||||||||||
Other Liabilities | |||||||||||||
Loss Contingencies | |||||||||||||
Reserve for unfunded commitments | 161 | ||||||||||||
Other Liabilities | Residential Mortgage | |||||||||||||
Loss Contingencies | |||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | 9 | 13 | |||||||||||
Visa Litigation | |||||||||||||
Loss Contingencies | |||||||||||||
Recorded share of litigation formally settled by Visa and for probable future litigation settlements | $ 137 | $ 91 | |||||||||||
Escrow Deposit | $ 3,000 | ||||||||||||
Visa | |||||||||||||
Loss Contingencies | |||||||||||||
Visa IPO, shares of Visa's Class B common stock received | 10.1 | ||||||||||||
Escrow Deposit | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 | |||||||
[1] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . |
Commitments (Standby and Commer
Commitments (Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party) (Detail) - Letters of Credit $ in Millions | Dec. 31, 2017USD ($) | |
Line of Credit Facility | ||
Commitments | $ 2,185 | |
Less Than One Year From The Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 1,170 | [1] |
More than One and within Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 999 | [1] |
More than Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | $ 16 | |
[1] | (a) Includes $ 7 and $ 1 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 Com143
Commitments (Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party) (Parenthetical) (Detail) - Letters of Credit $ in Millions | Dec. 31, 2017USD ($) | |
Line of Credit Facility | ||
Commitments | $ 2,185 | |
Less Than One Year From The Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 1,170 | [1] |
Less Than One Year From The Balance Sheet Date | Commercial | Commercial customers to facilitate trade payments in U.S. dollars and foreign currencies | ||
Line of Credit Facility | ||
Commitments | 7 | |
More than One and within Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 999 | [1] |
More than One and within Five Years from Balance Sheet Date | Commercial | Commercial customers to facilitate trade payments in U.S. dollars and foreign currencies | ||
Line of Credit Facility | ||
Commitments | 1 | |
More than Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | $ 16 | |
[1] | (a) Includes $ 7 and $ 1 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 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | $ 2,185 | $ 2,583 |
Pass | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | 1,830 | 2,134 |
Special Mention | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | 67 | 98 |
Substandard | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | 218 | 290 |
Doubtful | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | $ 70 | $ 61 |
Commitments (Activity in Reserv
Commitments (Activity in Reserve for Representation and Warranty Provisions) (Detail) - Residential Mortgage - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Valuation And Qualifying Accounts Disclosure | ||
Balance, beginning of period | $ 13 | $ 25 |
Net (reductions) additions to the reserve | (3) | (10) |
Losses charged against the reserve | (1) | (2) |
Balance, end of period | $ 9 | $ 13 |
Commitments (Unresolved Claims
Commitments (Unresolved Claims by Claimant) (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
GSE | ||
Loss Contingencies Dollars | ||
Balance, beginning of period | $ 2 | $ 4 |
New demands | 15 | 22 |
Loan paydowns/payoffs | 0 | (1) |
Resolved claims | (16) | (23) |
Balance, end of period | $ 1 | $ 2 |
Loss Contingencies Units | ||
Balance, beginning of period | 13 | 16 |
New demands | 109 | 309 |
Loan paydowns/payoffs | (2) | (8) |
Resolved claims | (114) | (304) |
Balance, end of period | 6 | 13 |
Private Label | ||
Loss Contingencies Dollars | ||
Balance, beginning of period | $ 0 | $ 0 |
New demands | 0 | 0 |
Loan paydowns/payoffs | 0 | 0 |
Resolved claims | 0 | 0 |
Balance, end of period | $ 0 | $ 0 |
Loss Contingencies Units | ||
Balance, beginning of period | 0 | 2 |
New demands | 1 | 4 |
Loan paydowns/payoffs | 0 | 0 |
Resolved claims | 0 | (6) |
Balance, end of period | 1 | 0 |
Commitments (Visa Funding and B
Commitments (Visa Funding and Bancorp Cash Payments) (Detail) - USD ($) $ in Millions | 3 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | |
Visa Funding | ||||||
Loss Contingencies | ||||||
Escrow Deposit | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 |
Bancorp Cash Payment | ||||||
Loss Contingencies | ||||||
Reduction of liability in cash to the swap counterparty | $ 18 | $ 6 | $ 75 | $ 19 | $ 35 | $ 20 |
Legal and Regulatory Proceed148
Legal and Regulatory Proceedings (Legal and Regulatory Proceedings - Additional Information) (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2013 | Sep. 30, 2015USD ($) | Sep. 30, 2013USD ($) | Mar. 31, 2013USD ($) | Sep. 30, 2012USD ($) | Mar. 31, 2012USD ($) | |
Loss Contingencies | ||||||||
Amount in excess of amounts reserved | $ 31 | |||||||
APR Percentage Allegedly Misleading | 120.00% | |||||||
Number Of Putative Class Actions Filed | 4 | |||||||
Damages Claimed By Plaintiff | $ 800 | $ 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 | |||||||
LitigationSettlementAmount | $ 2.2 |
Related Party (Summary of the B
Related Party (Summary of the Bancorp's Activities with its Principal Shareholders, Directors and Executives) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transactions | ||
Outstanding balance on loans, net of participations and undrawn commitments | $ 20 | $ 54 |
Commitments to Extend Credit | ||
Related Party Transactions | ||
Commitments to Extend Credit | 68,106 | 67,909 |
Commitments to Extend Credit | Due to related party | ||
Related Party Transactions | ||
Commitments to Extend Credit | 552 | 622 |
Commitments to Extend Credit | Director | Due to related party | ||
Related Party Transactions | ||
Commitments to Extend Credit | 546 | 618 |
Commitments to Extend Credit | Executive Officer | Due to related party | ||
Related Party Transactions | ||
Commitments to Extend Credit | $ 6 | $ 4 |
Related Party (Summary of Vanti
Related Party (Summary of Vantiv Holding, LLC Sales Transactions) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2017 | Dec. 31, 2015 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2009 | ||||||
Related Party Transactions | ||||||||||||||||
Gain on sale of Vantiv, Inc. shares | $ 1,037 | $ 0 | $ 331 | |||||||||||||
Vantiv Holding, LLC | ||||||||||||||||
Related Party Transactions | ||||||||||||||||
Gain on sale of Vantiv, Inc. shares | $ 1,037 | $ 331 | $ 125 | $ 85 | $ 242 | $ 157 | $ 115 | $ 1,000 | ||||||||
Equity Method Investment, Ownership Percentage | 8.60% | 18.30% | 22.80% | [1] | 25.10% | [1] | 27.70% | [1] | 33.10% | [1] | 39.00% | 8.60% | 18.30% | [1] | 18.30% | 49.00% |
[1] | (a) The Bancorp’s remaining investment in Vantiv Holding, LLC of $ 219 as of December 31, 201 7 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. |
Related Party (Summary of Va151
Related Party (Summary of Vantiv Holding, LLC Sales Transactions) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Equity Method Investment Summarized Financia lInformation | ||
Vantiv Holding, LLC Carrying Value | $ 219 | $ 414 |
Related Party (Cash Flows to be
Related Party (Cash Flows to be Received from the TRA) (Detail) $ in Millions | Dec. 31, 2017USD ($) | |
Cash Flow To Be Received From Put Call Option Exercises | ||
Vantiv TRA Cash Flows | ||
2,018 | $ 108 | [1] |
2,019 | 0 | [1] |
2,020 | 0 | [1] |
2,021 | 0 | [1] |
2,022 | 0 | [1] |
2,023 | 0 | [1] |
2,024 | 0 | [1] |
2,025 | 0 | [1] |
2,026 | 0 | [1] |
Thereafter | 0 | [1] |
Total Cash Flows to be Received from TRA | 108 | [1] |
Estimated Cash Flow To Be Received Not Subject To Put Call Option | ||
Vantiv TRA Cash Flows | ||
2,018 | 44 | [2] |
2,019 | 20 | [2] |
2,020 | 25 | [2] |
2,021 | 26 | [2] |
2,022 | 26 | [2] |
2,023 | 27 | [2] |
2,024 | 27 | [2] |
2,025 | 28 | [2] |
2,026 | 29 | [2] |
Thereafter | 279 | [2] |
Total Cash Flows to be Received from TRA | $ 531 | [2] |
[1] | ( b) As part of the agreement the Bancorp entered into with Vantiv, Inc. on July 27, 2016, Vantiv, Inc. made payments to the Bancorp of $63 during the year ended December 31, 2017 and may be obligated to pay a total of approximately $108 to the Bancorp to terminate certain remaining TRA cash flows, initially estimated to be $394, upon the exercise of certain call options by Vantiv, Inc. (now Worldpay, Inc.), or certain put options by the Bancorp. | |
[2] | (a) The 2018 cash flow of $44 has been agreed upon with Vantiv, Inc. (now Worldpay, Inc.), for settlement in January 2018 and was recognized as a gain in other noninterest income during the fourth quarter of 2017. The remaining estimated cash flows in this column (which include TRA benefits associated with the net exercise of the warrant in 2016 and the subsequent exchange of Vantiv Holding units in the third quarter of 2017) will be recognized in future periods when the related uncertainties are resolved. |
Related Party (Cash Flows to153
Related Party (Cash Flows to be Received from the TRA) (Parenthetical) (Detail) $ in Millions | Dec. 31, 2017USD ($) | |
Vantiv, Inc. | ||
Vantiv TRA Cash Flows | ||
Potential Termination And Settlement Of Tra Cash Flows | $ 394 | |
Cash Flow To Be Received From Put Call Option Exercises | ||
Vantiv TRA Cash Flows | ||
Cash Flow To Be Received From Tra | 108 | [1] |
Estimated Cash Flow To Be Received Not Subject To Put Call Option | ||
Vantiv TRA Cash Flows | ||
Cash Flow To Be Received From Tra | $ 531 | [2] |
[1] | ( b) As part of the agreement the Bancorp entered into with Vantiv, Inc. on July 27, 2016, Vantiv, Inc. made payments to the Bancorp of $63 during the year ended December 31, 2017 and may be obligated to pay a total of approximately $108 to the Bancorp to terminate certain remaining TRA cash flows, initially estimated to be $394, upon the exercise of certain call options by Vantiv, Inc. (now Worldpay, Inc.), or certain put options by the Bancorp. | |
[2] | (a) The 2018 cash flow of $44 has been agreed upon with Vantiv, Inc. (now Worldpay, Inc.), for settlement in January 2018 and was recognized as a gain in other noninterest income during the fourth quarter of 2017. The remaining estimated cash flows in this column (which include TRA benefits associated with the net exercise of the warrant in 2016 and the subsequent exchange of Vantiv Holding units in the third quarter of 2017) will be recognized in future periods when the related uncertainties are resolved. |
Related Party (Related Party Tr
Related Party (Related Party Transactions - Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2009 | Jun. 30, 2009 | |||||||
Related Party Transactions | ||||||||||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | |||||||||||||||||||
Gain on sale of Vantiv, Inc. shares | $ 1,037 | $ 0 | $ 331 | |||||||||||||||||
Loans to related parties | $ 20 | $ 54 | 20 | 54 | ||||||||||||||||
Letters of Credit | 2,185 | 2,583 | 2,185 | 2,583 | ||||||||||||||||
Taxable Receivable Agreement Payment | 44 | 197 | $ 31 | |||||||||||||||||
Equity investments, carrying value | 219 | 414 | 219 | 414 | ||||||||||||||||
Fair value - Derivative Assets | $ 823 | $ 1,057 | $ 823 | $ 1,057 | ||||||||||||||||
Vantiv Holding, LLC | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | |||||||||||||||||||
Equity Method Investment, Ownership Percentage | 8.60% | 8.60% | 18.30% | [1] | 18.30% | 22.80% | [1] | 25.10% | [1] | 27.70% | [1] | 33.10% | [1] | 39.00% | 8.60% | 18.30% | [1] | 18.30% | 49.00% | |
Gain on sale of Vantiv, Inc. shares | $ 1,037 | $ 331 | $ 125 | $ 85 | $ 242 | $ 157 | $ 115 | $ 1,000 | ||||||||||||
Dividend on Equity method investment in Vantiv Holding, LLC | 19 | $ 9 | $ 11 | |||||||||||||||||
Service fee paid to Vantiv Holding, LLC | 72 | 76 | 89 | |||||||||||||||||
Outstanding balance of loans owed to the Bancorp from Vantiv Holding, LLC | $ 1,250 | |||||||||||||||||||
Loans to related parties | $ 203 | $ 210 | 203 | 210 | ||||||||||||||||
Interest income relating to the Vantiv Holding, LLC loans | 5 | 4 | $ 4 | |||||||||||||||||
Letters of Credit | 4 | $ 59 | 4 | 59 | ||||||||||||||||
Cancellation Of Rights To Purchase Class C Units Under Warrant | 4,800,000 | 4,800,000 | ||||||||||||||||||
Cash Payment For Cancellation Of Warrant | $ 200 | |||||||||||||||||||
Exchange Of Class C Shares For Class A Shares | 8,000,000 | 8,000,000 | ||||||||||||||||||
Investment Warrants Exercise Price | $ 15.98 | $ 15.98 | ||||||||||||||||||
Payment From Vantiv Inc to Bancorp To Terminate And Settle Certain Remaining TRA Cash Flows | $ 171 | 171 | ||||||||||||||||||
Potential Termination And Settlement Of Tra Cash Flows | 394 | 394 | ||||||||||||||||||
Vantiv Holding, LLC | Interest Rate Contract | Customer Contracts | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Fair value - Derivative Assets | $ 2 | $ 7 | 2 | 7 | ||||||||||||||||
Vantiv Holding, LLC | Other Noninterest Income | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 47 | 66 | $ 63 | |||||||||||||||||
Vantiv Holding, LLC | During Deconversion Period | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Revenue From Related Parties | 1 | 1 | 1 | |||||||||||||||||
Vantiv Holding, LLC | Beyond Deconversion Period | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Revenue From Related Parties | $ 68 | $ 58 | $ 47 | |||||||||||||||||
Vantiv Holding, LLC | Class B Units | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Balance held at close of period in number of shares | 35,000,000 | 35,000,000 | ||||||||||||||||||
Vantiv Holding, LLC | Class C Units | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Shares Exercised Underlying Warrant | 7,800,000 | 7,800,000 | ||||||||||||||||||
Warrant Exercised Total Shares Settled | 5,700,000 | 5,400,000 | 5,700,000 | 5,400,000 | ||||||||||||||||
Aggregate amount of each class of warrants or rights outstanding | 7,800,000 | 7,800,000 | ||||||||||||||||||
Vantiv Holding, LLC | Class A Units | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Proceeds From Warrant Exercises | $ 9 | $ 89 | ||||||||||||||||||
Balance held at close of period in number of shares | 35,000,000 | 35,000,000 | ||||||||||||||||||
Vantiv, Inc. | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Gain on sale of Vantiv, Inc. shares | $ 49 | 116 | ||||||||||||||||||
Voting Power In Vantiv | 18.50% | 18.50% | ||||||||||||||||||
Amount Of Cash Flow Sales From 2017 to 2030 | $ 140 | $ 331 | $ 331 | |||||||||||||||||
Percentage Of Warrant Exercised | 62.00% | 62.00% | ||||||||||||||||||
Payment From Vantiv Inc to Bancorp To Terminate And Settle Certain Remaining TRA Cash Flows | 171 | $ 171 | ||||||||||||||||||
Potential Termination And Settlement Of Tra Cash Flows | 394 | 394 | ||||||||||||||||||
Pretax Gain Recognized | $ 164 | $ 164 | ||||||||||||||||||
Vantiv, Inc. | Minimum | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Amount Of Cash Flow Sales From Years 2019 To 2035 | 2,019 | |||||||||||||||||||
Vantiv, Inc. | Upper Limit | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Amount Of Cash Flow Sales From Years 2019 To 2035 | 2,035 | |||||||||||||||||||
Vantiv, Inc. | Other Noninterest Income | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Taxable Receivable Agreement Payment | $ 44 | $ 33 | $ 31 | |||||||||||||||||
Vantiv, Inc. | Class B Units | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Shares held in Vantiv, Inc. | 43,000,000 | 43,000,000 | ||||||||||||||||||
Vantiv, Inc. | Class A Units | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Exchange Of Class C Shares For Class A Shares | 5,700,000 | 5,400,000 | 5,700,000 | 5,400,000 | ||||||||||||||||
Vantiv, Inc. | Class A Units | Shares Sold In Secondary Offering | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Warrant Exercised Total Shares Settled | 4,800,000 | 4,800,000 | ||||||||||||||||||
Vantiv, Inc. | Class A Units | Shares repurchased by Vantiv Inc. | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Warrant Exercised Total Shares Settled | 900,000 | 900,000 | ||||||||||||||||||
SLK Global | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 86.00% | 86.00% | ||||||||||||||||||
Service fee paid to Vantiv Holding, LLC | $ 21 | $ 20 | $ 17 | |||||||||||||||||
Equity investments, carrying value | $ 22 | 22 | ||||||||||||||||||
SLK Global | Other Noninterest Income | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 3 | |||||||||||||||||||
CDC | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Loans to related parties | 83 | $ 76 | 83 | 76 | ||||||||||||||||
Related Party Deposit Liabilities | 26 | 28 | 26 | 28 | ||||||||||||||||
CDC | Unfunded Commitment | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Due To Other Related Parties Current And Noncurrent | $ 80 | $ 18 | $ 80 | $ 18 | ||||||||||||||||
[1] | (a) The Bancorp’s remaining investment in Vantiv Holding, LLC of $ 219 as of December 31, 201 7 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. |
Income Taxes (Applicable Income
Income Taxes (Applicable Income Taxes Included in the Consolidated Statements of Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation Of Provision Of Income Taxes | |||
U.S. Federal income taxes | $ 763 | $ 598 | $ 662 |
State and local income taxes | 68 | 55 | 55 |
Foreign income taxes | (3) | 0 | 13 |
Total current tax expense (benefit) | 828 | 653 | 730 |
U.S. Federal income taxes | (252) | (133) | (78) |
State and local income taxes | 1 | (14) | 6 |
Foreign income taxes | 0 | (1) | 1 |
Total deferred tax expense (benefit) | (251) | (148) | (71) |
Applicable income tax expense | $ 577 | $ 505 | $ 659 |
Income Taxes (Reconciliation Be
Income Taxes (Reconciliation Between the Federal Statutory Corporate Tax Rate and the Bancorp's Effective Tax Rate) (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation Of Statutory Federal Tax Rate | |||
Statutory tax rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 1.60% | 1.30% | 1.70% |
Tax-exempt income | (1.20%) | (2.70%) | (1.70%) |
Low-income housing tax credits | (6.00%) | (7.90%) | (6.60%) |
Other tax credits | (0.50%) | (0.90%) | (0.90%) |
US Tax Legislation Impact On Deferred Taxes | (7.90%) | 0.00% | 0.00% |
Other, net | (0.20%) | (0.40%) | 0.30% |
Effective tax rate | 20.80% | 24.40% | 27.80% |
Income Taxes (Income Taxes - Ad
Income Taxes (Income Taxes - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes | ||
Deferred tax assets related to state net operating loss carryforwards | $ 9 | $ 9 |
State net operating loss carryforwards specific valuation allowances | $ 27 | 25 |
State net operating loss carryforwards expiration date | Dec. 31, 2037 | |
Deferred tax assets related to foreign tax credit carryforward | $ 2 | 3 |
Foreign tax credit carryforward expiration date | Dec. 31, 2025 | |
Accrued interest liabilities, net of the related tax benefits | $ 3 | 1 |
Allocation of earnings for bad debt deductions of former thrift subsidiaries included in retained earnings | 157 | 157 |
Interest expense recognized in connection with income taxes | 2 | $ 1 |
Remeasurement of leveraged leases | 27 | |
Remeasurment of deferred tax assets and liabilities | $ 220 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Beginning and Ending Amounts of the Bancorp's Unrecognized Tax Benefits) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | ||||||
Unrecognized tax benefits at January 1 | $ 24 | [1] | $ 13 | [1] | $ 11 | |
Gross increases for tax positions taken during prior period | 17 | 9 | 1 | |||
Gross decreases for tax positions taken during prior period | (1) | 0 | 0 | |||
Gross increases for tax positions taken during current period | 3 | 2 | 2 | |||
Settlements with taxing authorities | (7) | 0 | 0 | |||
Lapse of applicable statute of limitations | (2) | 0 | (1) | |||
Unrecognized tax benefits at December 31 | [1] | $ 34 | $ 24 | $ 13 | ||
[1] | (a ) Amounts represent unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Taxes Included in Other Assets in the Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Deferred Income Tax Assets And Liabilities | ||
Allowance for loan and lease losses | $ 251 | $ 439 |
Deferred compensation | 77 | 122 |
Reserves | 34 | 56 |
Reserve for unfunded commitments | 29 | 57 |
State net operating loss carryforwards | 9 | 9 |
Other | 102 | 223 |
Total deferred tax assets | 502 | 906 |
Lease financing | 616 | 940 |
Investments in joint ventures and partnership interests | 34 | 219 |
MSRs and related economic hedges | 111 | 202 |
State deferred taxes | 64 | 64 |
Bank premises and equipment | 42 | 61 |
Other comprehensive income | 21 | 34 |
Other | 137 | 173 |
Total deferred tax liabilities | 1,025 | 1,693 |
Total net deferred tax liabilities | $ (523) | $ (787) |
Retirement and Benefit Plans (R
Retirement and Benefit Plans (Retirement and Benefit Plans - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Defined Benefit Plan Disclosure | ||||
The estimated net actuarial loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost | $ (7) | |||
The increase in pension expense by lowering both the expected rate of return on the plan and the discount rate by 0.25% | 1 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2018 | 17 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2019 | 17 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2020 | 17 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2021 | 17 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2022 | 17 | |||
Defined Benefit Plan Expected Future Benefit Payments in 2023 through 2027 | 77 | |||
Estimated future defined benefit plan contributions | 3 | |||
Plan assets managed | [1] | 185 | $ 172 | |
Net underfunded status | (24) | (34) | ||
Fifth Third Bank | ||||
Defined Benefit Plan Disclosure | ||||
Plan assets managed through collective funds | 185 | 172 | ||
Non-qualified defined contribution plan | ||||
Defined Benefit Plan Disclosure | ||||
Expenses recognized for the Bancorp's defined contribution plan | 4 | 3 | $ 3 | |
Qualified defined contribution plan | ||||
Defined Benefit Plan Disclosure | ||||
Expenses recognized for the Bancorp's defined contribution plan | 79 | 75 | 71 | |
Deferred profit sharing | ||||
Defined Benefit Plan Disclosure | ||||
Expenses recognized for the Bancorp's defined contribution plan | 0 | 0 | $ 0 | |
Common stock | Fifth Third Bank | ||||
Defined Benefit Plan Disclosure | ||||
Plan assets managed | $ 0 | $ 5 | ||
[1] | For further information on fair value hierarchy levels, refer to Note 1 . |
Retirement and Benefit Plans (D
Retirement and Benefit Plans (Defined Benefit Retirement Plans with Overfunded and Underfunded Status) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Defined Benefit Plan Change In Fair Value Roll Forward | ||||
Fair value of plan assets at January 1 | [1] | $ 172 | ||
Fair value of plan assets at December 31 | [1] | 185 | $ 172 | |
Defined Benefit Plan, Change in Benefit Obligation | ||||
Interest cost | 8 | 9 | $ 9 | |
Underfunded defined benefit pension plans | ||||
Defined Benefit Plan Change In Fair Value Roll Forward | ||||
Fair value of plan assets at January 1 | 172 | 166 | ||
Actual return on assets | 28 | 11 | ||
Contributions | 6 | 20 | ||
Settlement | (11) | (15) | ||
Benefits paid | (10) | (10) | ||
Fair value of plan assets at December 31 | 185 | 172 | 166 | |
Defined Benefit Plan, Change in Benefit Obligation | ||||
Projected benefit obligation at January 1 | 206 | 220 | ||
Interest cost | 8 | 9 | ||
Settlement | (11) | (15) | ||
Actuarial (gain) loss | 16 | 2 | ||
Benefits paid | (10) | (10) | ||
Projected benefit obligation at December 31 | 209 | 206 | $ 220 | |
Underfunded projected benefit obligation at December 31 | (24) | (34) | ||
Accumulated benefit obligation at December 31 | [2] | $ 209 | $ 206 | |
[1] | For further information on fair value hierarchy levels, refer to Note 1 . | |||
[2] | (a) Since the Plan’s benefits are frozen , the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2017 and 2016 . |
Retirement and Benefit Plans (N
Retirement and Benefit Plans (Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Pension And Other Postretirment Benefits Recgonized In Accumulated Other Comprehensive Income (Loss) | |||
Interest cost | $ 8 | $ 9 | $ 9 |
Expected return on assets | (10) | (11) | (13) |
Amortization of net actuarial loss | 7 | 11 | 10 |
Settlement | 4 | 7 | 7 |
Net periodic benefit cost | 9 | 16 | 13 |
Net actuarial loss (gain) | (1) | 2 | 9 |
Amortization of net actuarial loss | (7) | (11) | (10) |
Settlement | (4) | (7) | (7) |
Total recognized in other comprehensive income | (12) | (16) | (8) |
Total recognized in net periodic benefit cost and other comprehensive income | $ (3) | $ 0 | $ 5 |
Retirement and Benefit Plans (P
Retirement and Benefit Plans (Plan Assets Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | ||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | $ 185 | $ 172 | |
Equity securities | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 73 | 56 | [2] |
Mutual and exchange-traded funds | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 82 | 97 | |
Mutual and exchange-traded funds | Money market funds | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 7 | 6 | |
Mutual and exchange-traded funds | International funds | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 30 | 31 | |
Mutual and exchange-traded funds | Domestic funds | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 29 | 39 | |
Mutual and exchange-traded funds | Debt funds | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 1 | 5 | |
Mutual and exchange-traded funds | Alternative strategies | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 10 | 10 | |
Mutual and exchange-traded funds | Commodity funds | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 5 | 6 | |
Debt securities | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 30 | 19 | |
Debt securities | U.S. Treasury and federal agencies securities | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 10 | 8 | |
Debt securities | Agency mortgage-backed securities | Residential mortgage-backed securities | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 1 | 1 | |
Debt securities | Agency mortgage-backed securities | Commercial mortgage-backed securities | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 2 | 2 | |
Debt securities | Non-agency mortgage-backed securities | Commercial mortgage-backed securities | ||||
Defined Benefit Plan Disclosure | ||||
Securities | 1 | |||
Debt securities | Asset-backed securities and other debt securities | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1],[3] | 16 | 8 | |
Fair value level 1 | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 94 | 76 | |
Fair value level 1 | Equity securities | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 73 | 56 | [2] |
Fair value level 1 | Mutual and exchange-traded funds | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 13 | 13 | |
Fair value level 1 | Mutual and exchange-traded funds | Money market funds | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 7 | 6 | |
Fair value level 1 | Mutual and exchange-traded funds | Alternative strategies | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 1 | 1 | |
Fair value level 1 | Mutual and exchange-traded funds | Commodity funds | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 5 | 6 | |
Fair value level 1 | Debt securities | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 8 | 7 | |
Fair value level 1 | Debt securities | U.S. Treasury and federal agencies securities | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 8 | 7 | |
Fair value level 2 | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 91 | 96 | |
Fair value level 2 | Mutual and exchange-traded funds | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 69 | 84 | |
Fair value level 2 | Mutual and exchange-traded funds | International funds | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 30 | 31 | |
Fair value level 2 | Mutual and exchange-traded funds | Domestic funds | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 29 | 39 | |
Fair value level 2 | Mutual and exchange-traded funds | Debt funds | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 1 | 5 | |
Fair value level 2 | Mutual and exchange-traded funds | Alternative strategies | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 9 | 9 | |
Fair value level 2 | Debt securities | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 22 | 12 | |
Fair value level 2 | Debt securities | U.S. Treasury and federal agencies securities | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 2 | 1 | |
Fair value level 2 | Debt securities | Agency mortgage-backed securities | Residential mortgage-backed securities | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 1 | 1 | |
Fair value level 2 | Debt securities | Agency mortgage-backed securities | Commercial mortgage-backed securities | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1] | 2 | 2 | |
Fair value level 2 | Debt securities | Non-agency mortgage-backed securities | Commercial mortgage-backed securities | ||||
Defined Benefit Plan Disclosure | ||||
Securities | 1 | |||
Fair value level 2 | Debt securities | Asset-backed securities and other debt securities | ||||
Defined Benefit Plan Disclosure | ||||
Securities | [1],[3] | $ 16 | $ 8 | |
[1] | For further information on fair value hierarchy levels, refer to Note 1 . | |||
[2] | Includes holdings in Bancorp common stock. | |||
[3] | Includes corporate bonds. |
Retirement and Benefit Plans164
Retirement and Benefit Plans (Plan Assumptions) (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
For measuring benefit obligations at year end | |||
Discount rate | 3.47% | 3.97% | 4.16% |
Expected return on plan assets | 6.00% | 7.00% | 7.00% |
For measuring net periodic benefit cost | |||
Discount rate | 3.97% | 4.16% | 3.82% |
Expected return on plan assets | 6.00% | 7.00% | 7.00% |
Retirement and Benefit Plans165
Retirement and Benefit Plans (Targeted and Actual Weighted Average Asset Allocations by Plan Asset Category) (Detail) | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity securities | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 76.00% | 73.00% | |
Bancorp common stock | 1.00% | 2.00% | |
Total | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% | |
Targeted Range 60 to 90 Percent | Equity securities | |||
Defined Benefit Plan Disclosure | |||
Total equity securities | [1],[2] | 77.00% | 75.00% |
Targeted Range 5 to 25 Percent | Fixed-income securities | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Actual Plan Asset Allocations | [2] | 16.00% | 14.00% |
Targeted Range 3 to 11 Percent | Alternative strategies | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Actual Plan Asset Allocations | [2] | 3.00% | 6.00% |
Targeted Range 0 to 13 Percent | Cash | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Actual Plan Asset Allocations | [2] | 4.00% | 5.00% |
[1] | Includes mutual and exchange- traded funds . | ||
[2] | These reflect the targeted ranges for both the years ended December 31, 2017 and 2016 . |
AOCI (Activity of the Component
AOCI (Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net activity for accumulated net unrealized gain (loss) on available-for-sale securities | |||
Unrealized holding gains (losses) on available-for-sale securities arising during the year | $ 21 | $ (130) | $ (227) |
Reclassification adjustment for net (gains) losses included in net income | 4 | (7) | (10) |
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | |||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during the year | (7) | 19 | 48 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (12) | (31) | (49) |
Net activity for defined benefit plans, net | |||
Net actuarial gain (loss) arising during the period | (1) | 1 | 5 |
Reclassification of amounts to net periodic benefit costs | (7) | (12) | (11) |
Total Other Comprehensive Activity | |||
Pre-tax activity total | (1) | (209) | (358) |
Total, Tax | 15 | 71 | 126 |
Other comprehensive income (loss) | 14 | (138) | (232) |
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | 59 | 197 | 429 |
Other comprehensive income (loss), Net of Tax | 14 | (138) | (232) |
Total Accumulated Other Comprehensive Income - Ending Balance | 73 | 59 | 197 |
Accumulated Net Unrealized Investment Gain (Loss) | |||
Pre-tax activity for accumulated net unrealized gain (loss) on available-for-sale securities | |||
Unrealized holding gains on available-for-sale securities arising during period | 14 | (196) | (349) |
Net unrealized gains on available-for-sale securities | 17 | (207) | (365) |
Tax effect for accumulated net unrealized gain (loss) on available-for-sale securities | |||
Unrealized holding gains on available-for-sale securities arising during period | 7 | 66 | 122 |
Reclassification adjustment for net losses (gains) included in net income | 1 | 4 | 6 |
Net unrealized gains on available-for-sale securities | 8 | 70 | 128 |
Net activity for accumulated net unrealized gain (loss) on available-for-sale securities | |||
Unrealized holding gains (losses) on available-for-sale securities arising during the year | 21 | (130) | (227) |
Reclassification adjustment for net (gains) losses included in net income | 4 | (7) | (10) |
Net unrealized gains on available-for-sale securities | 25 | (137) | (237) |
Total Other Comprehensive Activity | |||
Other comprehensive income (loss) | 25 | (137) | (237) |
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | 101 | 238 | 475 |
Other comprehensive income (loss), Net of Tax | 25 | (137) | (237) |
Total Accumulated Other Comprehensive Income - Ending Balance | 126 | 101 | 238 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | |||
Pre-tax activity for net unrealized gain (loss) on cash flow hedge derivatives | |||
Unrealized holding gains on cash flow hedge derivatives arising during period | (11) | 30 | 74 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (19) | (48) | (75) |
Net unrealized gains on cash flow hedge derivatives | (30) | (18) | (1) |
Tax effect for net unrealized gain (loss) on cash flow hedge derivatives | |||
Unrealized holding gains on cash flow hedge derivatives arising during period | 4 | (11) | (26) |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 7 | 17 | 26 |
Net unrealized gains on cash flow hedge derivatives | 11 | 6 | 0 |
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | |||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during the year | (7) | 19 | 48 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (12) | (31) | (49) |
Net unrealized gains on cash flow hedge derivatives | (19) | (12) | (1) |
Total Other Comprehensive Activity | |||
Other comprehensive income (loss) | (19) | (12) | (1) |
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | 10 | 22 | 23 |
Other comprehensive income (loss), Net of Tax | (19) | (12) | (1) |
Total Accumulated Other Comprehensive Income - Ending Balance | (9) | 10 | 22 |
Accumulated Defined Benefit Plans Adjustment | |||
Pre-tax activity for defined benefit plans, net | |||
Net actuarial gain (loss) arising during the period | 1 | (2) | (9) |
Reclassification of amounts to net periodic benefit costs | 11 | 18 | 17 |
Defined benefit plans, net | 12 | 16 | 8 |
Tax effect for defined benefit plans, net | |||
Net actuarial loss | 0 | 1 | 4 |
Reclassification of amounts to net periodic benefit costs | (4) | (6) | (6) |
Defined benefit plans, net | (4) | (5) | (2) |
Net activity for defined benefit plans, net | |||
Net actuarial gain (loss) arising during the period | 1 | (1) | (5) |
Reclassification of amounts to net periodic benefit costs | 7 | 12 | 11 |
Defined benefit plans, net | 8 | 11 | 6 |
Total Other Comprehensive Activity | |||
Other comprehensive income (loss) | (8) | (11) | (6) |
Total Accumulated Other Comprehensive Income | |||
Total Accumulated Other Comprehensive Income - Beginning Balance | (52) | (63) | (69) |
Other comprehensive income (loss), Net of Tax | (8) | (11) | (6) |
Total Accumulated Other Comprehensive Income - Ending Balance | $ (44) | $ (52) | $ (63) |
AOCI (Reclassification Out of A
AOCI (Reclassification Out of Accumulated Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net periodic pension cost | $ 9 | $ 16 | $ 13 | |
Income Before Income Taxes | 2,771 | 2,065 | 2,365 | |
Applicable income tax expense | 577 | 505 | 659 | |
Net income | 2,194 | 1,564 | 1,712 | |
Total reclassifications for the period | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net income | 1 | 26 | 48 | |
Net unrealized gains on available-for-sale securities | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Income Before Income Taxes | [1] | (3) | 11 | 16 |
Applicable income tax expense | [1] | (1) | (4) | (6) |
Net income | [1] | (4) | 7 | 10 |
Net unrealized gains on available-for-sale securities | Net losses included in net income | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment for net losses (gains) included in net income | [1] | (3) | 11 | 16 |
Net unrealized gains on cash flow hedge derivatives | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 19 | 48 | 75 | |
Income Before Income Taxes | [1] | 19 | 48 | 75 |
Applicable income tax expense | [1] | (7) | (17) | (26) |
Net income | [1] | 12 | 31 | 49 |
Net unrealized gains on cash flow hedge derivatives | Interest rate contracts related to C&I loans | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | [1] | 19 | 48 | 75 |
Amortization of defined periodic benefit costs | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Income Before Income Taxes | [1] | (11) | (18) | (17) |
Applicable income tax expense | [1] | 4 | 6 | 6 |
Net income | [1] | (7) | (12) | (11) |
Amortization of defined periodic benefit costs | Net Actuarial Loss | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net periodic pension cost | [1],[2] | (7) | (11) | (10) |
Amortization of defined periodic benefit costs | Pension Settlement | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net periodic pension cost | [1],[2] | $ (4) | $ (7) | $ (7) |
[1] | Amounts in parentheses indicate reductions to net income. | |||
[2] | This AOCI component is included in the computation of net periodi c benefit cost. Refer to Note 21 f or information on the computation of net periodic benefit cost. |
Common, Preferred and Treasu168
Common, Preferred and Treasury Stock (Share Acitivity within Common, Preferred and Treasury Stock) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Values | |||||
Beginning Balance | $ 16,232 | $ 15,870 | $ 15,665 | ||
Shares acquired for treasury | (1,605) | (661) | (850) | ||
Impact of stock transactions under stock compensation plans, net | 67 | 80 | 75 | ||
Other | (6) | 1 | (2) | ||
Ending Balance | 16,385 | 16,232 | 15,870 | $ 15,665 | |
4.90% fixed-to-floating non-cumulative Series J perpetual preferred stock | |||||
Values | |||||
Issuance of preferred stock | 297 | ||||
Series I Preferred Stock | |||||
Values | |||||
Issuance of preferred stock | $ 441 | ||||
Preferred stock Series H | |||||
Values | |||||
Issuance of preferred stock | $ 593 | ||||
Common stock | |||||
Values | |||||
Beginning Balance | 2,051 | 2,051 | 2,051 | ||
Ending Balance | $ 2,051 | $ 2,051 | $ 2,051 | $ 2,051 | |
Shares | |||||
Beginning balance | 923,892,581 | 923,892,581 | 923,892,581 | ||
Ending balance | 923,892,581 | 923,892,581 | 923,892,581 | 923,892,581 | |
Preferred Stock | |||||
Values | |||||
Beginning Balance | $ 1,331 | $ 1,331 | $ 1,331 | ||
Ending Balance | $ 1,331 | $ 1,331 | $ 1,331 | $ 1,331 | |
Shares | |||||
Beginning balance | 54,000 | 54,000 | 54,000 | ||
Ending balance | 54,000 | 54,000 | 54,000 | 54,000 | |
Treasury Stock | |||||
Values | |||||
Beginning Balance | $ (3,433) | $ (2,764) | $ (1,972) | ||
Shares acquired for treasury | (1,588) | (668) | (847) | ||
Impact of stock transactions under stock compensation plans, net | 16 | (4) | 52 | ||
Other | 3 | 3 | 3 | ||
Ending Balance | $ (5,002) | $ (3,433) | $ (2,764) | $ (1,972) | |
Shares | |||||
Beginning balance | 173,413,282 | 138,812,267 | 99,845,629 | ||
Shares acquired for treasury | 58,493,506 | 34,633,221 | 42,607,855 | ||
Impact of stock transactions under stock compensation plans, net | (1,693,503) | 42,357 | (3,593,406) | ||
Other | (125,597) | (74,563) | (47,811) | ||
Ending balance | 230,087,688 | 173,413,282 | 138,812,267 | 99,845,629 |
Common, Preferred and Treasu169
Common, Preferred and Treasury Stock (Common, Preferred, and Treasury Stock - Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2016 | |
4.90% fixed-to-floating non-cumulative Series J perpetual preferred stock | ||||
Depositary shares | 300,000 | |||
Preferred stock, issued | 12,000 | 12,000 | 12,000 | |
Issuance of preferred stock | $ 297 | |||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | $ 25,000 | |
Preferred Stock, Dividend Payment Terms | The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 4.90% through but excluding September 30, 2019, at which time it converts to a quarterly floating-rate dividend of three-month LIBOR plus 3.129%. | |||
Preferred Stock, Redemption Terms | Subject to any required regulatory approval, the Bancorp may redeem the Series J preferred shares at its option, in whole or in part, at any time on or after September 30, 2019, or any time prior following a regulatory capital event | |||
Preferred stock, shares authorized | 12,000 | 12,000 | ||
Series I Preferred Stock | ||||
Depositary shares | 18,000,000 | |||
Preferred stock, issued | 18,000 | 18,000 | 18,000 | |
Issuance of preferred stock | $ 441 | |||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | $ 25,000 | |
Preferred Stock, Dividend Payment Terms | The preferred stock accrues dividends, on a non-cumulative quarterly basis, at an annual rate of 6.625% through but excluding December 31, 2023, at which time it converts to a quarterly floating-rate dividend of three-month LIBOR plus 3.71% | |||
Preferred Stock, Redemption Terms | Subject to any required regulatory approval, the Bancorp may redeem the Series I preferred shares at its option in whole or in part, at any time on or after December 31, 2023 and may redeem in whole but not in part, following a regulatory capital event at any time prior to December 31, 2023 | |||
Preferred stock, shares authorized | 18,000 | 18,000 | ||
Preferred stock Series H | ||||
Depositary shares | 600,000 | |||
Preferred stock, issued | 24,000 | 24,000 | 24,000 | |
Issuance of preferred stock | $ 593 | |||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | $ 25,000 | |
Preferred Stock, Dividend Payment Terms | The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 5.10% through but excluding June 30, 2023, at which time it converts to a quarterly floating-rate dividend of three-month LIBOR plus 3.033% | |||
Preferred Stock, Redemption Terms | Subject to any required regulatory approval, the Bancorp may redeem the Series H preferred shares at its option in whole or in part, at any time on or after June 30, 2023 and may redeem in whole but not in part, following a regulatory capital event at any time prior to June 30, 2023 | |||
Preferred stock, shares authorized | 24,000 | 24,000 | ||
March 2014 Repurchase Program | ||||
Stock Repurchase Authorization Amount | $ 765 | |||
March 2016 Repurchase Program | ||||
Stock Repurchase Authorization Amount | $ 660 | |||
Repurchase Shares Authorized | 100 |
Common, Preferred and Treasu170
Common, Preferred and Treasury Stock (Accelerated Share Repurchase Transactions) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 1,605,000,000 | $ 661,000,000 | $ 850,000,000 | |
December 14, 2015 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Dec. 14, 2015 | |||
Settlement date | Jan. 14, 2016 | |||
December 14, 2015 ASR | March 2014 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 215,000,000 | |||
Shares repurchased on repurchase date | 9,248,482 | |||
Shares received from forward contract settlement | 1,782,477 | |||
Total shares repurchased | 11,030,959 | |||
March 4, 2016 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Mar. 4, 2016 | |||
Settlement date | Apr. 11, 2016 | |||
March 4, 2016 ASR | March 2014 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 240,000,000 | |||
Shares repurchased on repurchase date | 12,623,762 | |||
Shares received from forward contract settlement | 1,868,379 | |||
Total shares repurchased | 14,492,141 | |||
August 5, 2016 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Aug. 5, 2016 | |||
Settlement date | Nov. 7, 2016 | |||
August 5, 2016 ASR | March 2016 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 240,000,000 | |||
Shares repurchased on repurchase date | 10,979,548 | |||
Shares received from forward contract settlement | 1,099,205 | |||
Total shares repurchased | 12,078,753 | |||
December 20, 2016 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Dec. 20, 2016 | |||
Settlement date | Feb. 6, 2017 | |||
December 20, 2016 ASR | March 2016 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 155,000,000 | |||
Shares repurchased on repurchase date | 4,843,750 | |||
Shares received from forward contract settlement | 1,044,362 | |||
Total shares repurchased | 5,888,112 | |||
June 15, 2016 Open Market Repurchase | March 2016 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 26,000,000 | |||
Shares repurchased on repurchase date | 1,436,100 | |||
Total shares repurchased | 1,436,100 | |||
Settlement date | Jun. 20, 2016 | |||
May 1, 2017 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | May 1, 2017 | |||
Settlement date | Jul. 31, 2017 | |||
May 1, 2017 ASR | March 2016 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 342,000,000 | |||
Shares repurchased on repurchase date | 11,641,971 | |||
Shares received from forward contract settlement | 2,248,250 | |||
Total shares repurchased | 13,890,221 | |||
August 17, 2017 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Aug. 17, 2017 | |||
Settlement date | Dec. 18, 2017 | |||
August 17, 2017 ASR | March 2016 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 990,000,000 | |||
Shares repurchased on repurchase date | 31,540,480 | |||
Shares received from forward contract settlement | 4,291,170 | |||
Total shares repurchased | 35,831,650 | |||
December 19. 2017 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Dec. 19, 2017 | |||
December 19. 2017 ASR | March 2016 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 273,000,000 | |||
Shares repurchased on repurchase date | 7,727,273 |
Stock-Based Compensation (Numbe
Stock-Based Compensation (Number of Shares to be issued upon Exercise of Outstanding Stock-Based Awards and Remaining Shares Available for Future Issuance under all Equity Compensation Plans) (Detail) shares in Thousands | Dec. 31, 2017$ / sharesshares | |
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Number of Shares to be Issued Upon Exercise | 9,309 | |
Shares Available for Future Issuance | 27,340 | |
Equity compensation plans | ||
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Shares Available for Future Issuance | 21,687 | [1] |
Restricted Stock Awards | ||
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Number of Shares to be Issued Upon Exercise | 2,321 | |
Restricted Stock Units | ||
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Number of Shares to be Issued Upon Exercise | 6,986 | |
Stock options | ||
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Number of Shares to be Issued Upon Exercise | 2 | |
Weighted-Average Exercise Price Per Share | $ / shares | $ 16.5 | |
Employee stock purchase plan | ||
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Shares Available for Future Issuance | 5,653 | [2] |
[1] | Under the 2017 Incentive Compensation Plan, 17.5 million shares were authorized for issuance as SARs, RSAs, RSUs, stock options, performance share or unit awards, dividend or dividend equivalent rights and stock awards . | |
[2] | Represents remaining shares of Fifth Third common stock under the Bancorp’s 1993 Stock Purchase Plan, as amended and restated, including an additional 1.5 million shares approved by shareholders on March 28, 2007 and an additional 12 million shares approved by shareholders on April 21, 2009 . |
Stock-Based Compensation (Nu172
Stock-Based Compensation (Number of Shares to be issued upon Exercise of Outstanding Stock-Based Awards and Remaining Shares Available for Future Issuance under all Equity Compensation Plans) (Parenthetical) (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2009 | Dec. 31, 2007 | Dec. 31, 2017 | |
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Number of shares to be issued based on predefined performance targets | 9,309 | ||
Additional shares approved by shareholders included under Bancorp's 1993 Stock Purchase Plan | 12,000 | 1,500 | |
Performance Share Awards | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Number of shares to be issued based on predefined performance targets | 2,000 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Share-based Payment, Award, Stock Appreciation Rights, Valuation Assumptions) (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life (in years) | 6 years | 6 years | 6 years |
Expected volatility | 37.00% | 37.00% | 35.00% |
Expected dividend yield | 2.10% | 3.10% | 2.70% |
Risk-free interest rate | 2.10% | 1.50% | 1.60% |
Stock-Based Compensation (Sc174
Stock-Based Compensation (Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity) (Detail) - Stock Appreciation Rights - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares/Units | |||
Outstanding at January 1 | 40,041 | 44,129 | 45,590 |
Granted | 3,672 | 6,379 | 5,219 |
Exercised | (6,953) | (6,291) | (3,242) |
Forfeited or expired | (4,831) | (4,176) | (3,438) |
Outstanding at December 31 | 31,929 | 40,041 | 44,129 |
Exercisable at December 31 | 21,403 | 26,898 | 29,721 |
Weighted-Average Grant Price | |||
Outstanding at January 1 | $ 18.3 | $ 19.14 | $ 19.79 |
Granted | 26.52 | 17.68 | 18.99 |
Exercised | 16 | 14.47 | 13.59 |
Forfeited or expired | 35.08 | 32.02 | 32.96 |
Outstanding at December 31 | 17.22 | 18.3 | 19.14 |
Exercisable at December 31 | $ 15.3 | $ 18.28 | $ 19.71 |
Stock-Based Compensation (Outst
Stock-Based Compensation (Outstanding and Exercisable SARs by Grant Price) (Detail) - Stock Appreciation Rights - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 31,929 | 40,041 | 44,129 | 45,590 |
Outstanding SARs Weighted-Average Grant Price Per Share | $ 17.22 | $ 18.3 | $ 19.14 | $ 19.79 |
Outstanding Weighted-Average Remaining Contractual Life (in years) | 5 years 7 months 6 days | |||
Number of SARs Exercisable at Year End | 21,403 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 15.3 | $ 18.28 | $ 19.71 | |
Exercisable Weighted-Average Remaining Contractual Life (in years) | 4 years 3 months 18 days | |||
$10.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 1,762 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 3.98 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 1 year 3 months 18 days | |||
Number of SARs Exercisable at Year End | 1,762 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 3.98 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 1 year 3 months 18 days | |||
$10.01-$20.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 23,899 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 16.33 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 5 years 3 months 18 days | |||
Number of SARs Exercisable at Year End | 17,650 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 15.71 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 4 years 4 months 24 days | |||
$20.01-$30.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 6,268 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 24.31 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 7 years 9 months 18 days | |||
Number of SARs Exercisable at Year End | 1,991 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 21.63 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 6 years 3 months 18 days |
Stock-Based Compensation (Sc176
Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock Award Activity) (Detail) - Restricted Stock Awards - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares/Units | |||
Outstanding at January 1 | 4,638 | 8,281 | 7,253 |
Granted | 7 | 3 | 4,250 |
Released | (2,063) | (3,090) | (2,580) |
Forfeited | (261) | (556) | (642) |
Outstanding at December 31 | 2,321 | 4,638 | 8,281 |
Weighted-Average Grant Price | |||
Outstanding at January 1 | $ 19.44 | $ 18.88 | $ 17.98 |
Granted | 21.14 | 20.65 | 19.11 |
Released | 19.1 | 17.92 | 16.86 |
Forfeited | 19.75 | 19.2 | 18.64 |
Outstanding at December 31 | $ 19.72 | $ 19.44 | $ 18.88 |
Stock-Based Compensation (Unves
Stock-Based Compensation (Unvested RSAs by Grant-Date Fair Value) (Detail) - Restricted Stock Awards - shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 2,321 | 4,638 | 8,281 | 7,253 |
Weighted-Average Remaining Contractual Life (in years) | 9 months 18 days | |||
$15.01-$20.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 1,627 | |||
Weighted-Average Remaining Contractual Life (in years) | 10 months 24 days | |||
$20.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 694 | |||
Weighted-Average Remaining Contractual Life (in years) | 6 months |
Stock-Based Compensation (Sc178
Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock Units Activity) (Detail) - Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares/Units | |||
Outstanding at January 1 | 5,086,000 | 371,000 | 0 |
Granted | 3,652 | 5,029,000 | 377,000 |
Released | (1,194) | (79,000) | (5,000) |
Forfeited | (558) | (235,000) | (1,000) |
Outstanding at December 31 | 6,986 | 5,086,000 | 371,000 |
Weighted-Average Grant Price | |||
Outstanding at January 1 | $ 17.84 | $ 19.56 | |
Granted | 17.75 | $ 19.58 | |
Released | 19.76 | 21.63 | |
Forfeited | 17.89 | 19.46 | |
Outstanding at December 31 | $ 17.84 | $ 19.56 |
Stock-Based Compensation (Un179
Stock-Based Compensation (Unvested RSUs by Grant-Date Fair Value) (Detail) - Restricted Stock Units - shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 6,986 | 5,086,000 | 371,000 | 0 |
Weighted-Average Remaining Contractual Life (in years) | 1 year 4 months 24 days | |||
$10.01-$15.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 407,000 | |||
Weighted-Average Remaining Contractual Life (in years) | 7 months 6 days | |||
$15.01-$20.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 2,973,000 | |||
Weighted-Average Remaining Contractual Life (in years) | 1 year 2 months 12 days | |||
$20.01-$25.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 228,000 | |||
Weighted-Average Remaining Contractual Life (in years) | 1 year | |||
$25.01-$30.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 3,360,000 | |||
Weighted-Average Remaining Contractual Life (in years) | 1 year 8 months 12 days |
Stock-Based Compensation (Sc180
Stock-Based Compensation (Schedule of Share-based Compensation, Stock Options, Activity) (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options | |||
Outstanding at January 1 | 25 | 119 | 265 |
Exercised | (18) | (94) | (126) |
Forfeited or expired | (5) | 0 | (20) |
Outstanding at December 31 | 2 | 25 | 119 |
Exercisable at December 31 | 2 | 25 | 119 |
Weighted-Average Exercise Price | |||
Outstanding at January 1 | $ 19.17 | $ 14.97 | $ 14.25 |
Exercised | 14.05 | 13.86 | 13.67 |
Forfeited or expired | 40.98 | 0 | 13.59 |
Outstanding at December 31 | 16.5 | 19.17 | 14.97 |
Exercisable at December 31 | $ 16.5 | $ 19.17 | $ 14.97 |
Stock-Based Compensation (Ou181
Stock-Based Compensation (Outstanding and Exercisable Stock Options by Exercise Price) (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of Options at Year End | shares | 2 |
Weighted-Average Exercise Price Per Share | $ / shares | $ 16.5 |
Weighted-Average Remaining Contractual Life (in years) | 2 months 12 days |
$10.00 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of Options at Year End | shares | 1 |
Weighted-Average Exercise Price Per Share | $ / shares | $ 8.59 |
Weighted-Average Remaining Contractual Life (in years) | 2 years |
$10.01-$20.00 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of Options at Year End | shares | 0 |
Weighted-Average Exercise Price Per Share | $ / shares | $ 0 |
Weighted-Average Remaining Contractual Life (in years) | 1 month 6 days |
$20.01-$30.00 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of Options at Year End | shares | 1 |
Weighted-Average Exercise Price Per Share | $ / shares | $ 24.41 |
Weighted-Average Remaining Contractual Life (in years) | 1 year |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-Based Compensation - Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Stock Ownership Plan (ESOP) Disclosures | |||
The Bancorp's total overhang (potential dilution from share-based compensation) | 9.00% | ||
SARs, RSAs, RSUs, stock options and PSAs outstanding as a percentage of issued shares | 6.00% | ||
Annual return on tangible common equity performance hurdle | 2.00% | ||
Stock-based compensation expense | $ 118 | $ 111 | $ 100 |
Income tax benefit related to stock-based compensation expense | $ 41 | $ 39 | $ 36 |
2014 Incentive Compensation Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Stock authorized for issuance | 6,000,000 | ||
Stock Appreciation Rights Granted | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Vesting period of share based compensation | ratably over a three or four year period of continued employment | ||
Weighted-average grant-date fair value per share | $ 8.55 | $ 5.16 | $ 5.52 |
Shares granted | 3,672,000 | 6,379,000 | 5,219,000 |
Restricted Stock Awards | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Vesting period of share based compensation | after three or four years or ratably over three or four years of continued employment. | ||
Stock-based compensation expense | $ 21 | ||
Total grant-date fair value | $ 39 | $ 55 | $ 43 |
Weighted-average period over which expense is expected to be recognized | 1 year 3 months 18 days | ||
Shares granted | 7,000 | 3,000 | 4,250,000 |
Restricted Stock Units | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Vesting period of share based compensation | after three or four years or ratably over three or four years of continued employment. | ||
Stock-based compensation expense | $ 91 | ||
Total grant-date fair value | $ 21 | $ 2 | $ 2 |
Weighted-average period over which expense is expected to be recognized | 2 years 7 months 6 days | ||
Shares granted | 3,652 | 5,029,000 | 377,000 |
Stock options | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Intrinsic value of stock options exercised | $ 1 | ||
Cash received from stock options exercised | $ 1 | $ 2 | |
Stock options vested | 0 | 0 | 0 |
Performance Share Awards | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Vesting period of share based compensation | three year cliff vesting terms | ||
Weighted-average grant-date fair value per share | $ 26.52 | $ 14.87 | $ 19.48 |
Shares granted | 407,069 | 583,608 | 458,355 |
Employee stock purchase plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Stock-based compensation expense | $ 1 | $ 1 | $ 1 |
Match on qualifying employees purchase of shares of the Bancorp's common stock | 15.00% | ||
Stock purchased by plan participants | 475,466 | 684,885 | 617,829 |
Other Noninterest Income and183
Other Noninterest Income and Other Noninterest Expense (Other Nonint Income and Expense) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Noninterest Income | |||
Income from the tax receivable agreement associated with Vantiv, Inc. | $ 44 | $ 313 | $ 80 |
Operating lease income | 96 | 102 | 89 |
Equity method income from interest in Vantiv Holding, LLC | 47 | 66 | 63 |
Valuation adjustments on the warrant associated with Vantiv Holding, LLC | 0 | 64 | 236 |
BOLI income (loss) | 52 | 53 | 48 |
Cardholder fees | 54 | 46 | 43 |
Consumer loan and lease fees | 23 | 23 | 23 |
Banking center income | 20 | 20 | 21 |
Gain on sale of certain retail branch operations | 0 | 19 | 0 |
Private equity investment income | 36 | 11 | 28 |
Insurance income | 8 | 11 | 14 |
Net gain on loan sales | (2) | 10 | 38 |
Gain on sale and exercise of the warrant associated with Vantiv Holding, LLC | 0 | 9 | 89 |
Gain on sale of Vantiv, Inc. shares | 1,037 | 0 | 331 |
Loss on swap associated with the sale of Visa, Inc. class B shares | (80) | (56) | (37) |
Net losses on disposition and impairment of bank premises and equipment | 0 | (13) | (101) |
Other, net | 22 | 10 | 14 |
Total other noninterest income | 1,357 | 688 | 979 |
Other Noninterest Expense | |||
Impairment on affordable housing investments | 222 | 168 | 145 |
FDIC insurance and other taxes | 127 | 126 | 99 |
Loan and lease | 102 | 110 | 118 |
Marketing | 114 | 104 | 110 |
Operating Lease | 87 | 86 | 74 |
Losses and adjustments | 59 | 73 | 55 |
Professional services fees | 83 | 61 | 70 |
Data processing | 58 | 51 | 45 |
Postal and courier | 42 | 46 | 45 |
Travel | 46 | 45 | 54 |
Recruitment and education | 35 | 37 | 33 |
Provision for (benefit from) for the reserve for unfunded commitments | 0 | 23 | 4 |
Donations | 28 | 23 | 29 |
Insurance | 12 | 15 | 17 |
Supplies | 14 | 14 | 16 |
Other, net | 186 | 187 | 191 |
Total other noninterest expense | $ 1,215 | $ 1,169 | $ 1,105 |
EPS (Calculation of Earnings Pe
EPS (Calculation of Earnings Per Share and the Reconciliation of Earnings Per Share to Earnings Per Diluted Share) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings per share: | |||
Net income (loss) attributable to Bancorp | $ 2,194 | $ 1,564 | $ 1,712 |
Dividends on preferred stock | 75 | 75 | 75 |
Net income (loss) available to common shareholders | 2,119 | 1,489 | 1,637 |
Less: Income allocated to participating securities | 23 | 15 | 15 |
Net income allocated to common shareholders | 2,096 | 1,474 | 1,622 |
Earnings per diluted share: | |||
Net income available to common shareholders | 2,119 | 1,489 | 1,637 |
Stock-based awards | 0 | 0 | 0 |
Net income available to common shareholders plus assumed conversions | 2,119 | 1,489 | 1,637 |
Less: Income allocated to participating securities | 22 | 15 | 15 |
Net income allocated to common shareholders plus assumed conversions | $ 2,097 | $ 1,474 | $ 1,622 |
Earnings per share: | |||
Net income allocated to common shareholders | 728,289,200 | 757,432,291 | 798,628,173 |
Effect of dilutive securities: | |||
Stock-based awards | 13,000,000 | 7,000,000 | 9,000,000 |
Net income allocated to common shareholders | 740,691,433 | 764,495,353 | 807,658,669 |
Earnings per share: | |||
Net income allocated to common shareholders | $ 2.88 | $ 1.95 | $ 2.03 |
Earnings per diluted share: | |||
Net income allocated to common shareholders plus assumed conversions | $ 2.83 | $ 1.93 | $ 2.01 |
EPS (Earnings Per Share - Addit
EPS (Earnings Per Share - Additional Information) (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Appreciation Rights | |||
Earnings Per Share Disclosure | |||
Anti-dilutive securities | 4 | 19 | 16 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |||
Assets: | |||||
Available-for-sale securities, fair value | [1] | $ 31,820 | $ 31,183 | ||
Trading securities | 862 | 410 | |||
Residential mortgage loans measured at fair value | 137 | 143 | |||
Derivative assets | 823 | 1,057 | |||
Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 31,208 | [2] | 30,576 | [3] | |
Trading securities | 862 | 410 | |||
Residential mortgage loans held for sale | 399 | 686 | |||
Residential mortgage loans measured at fair value | 137 | [4] | 143 | [5] | |
Derivative assets | 823 | [6] | 1,057 | [7] | |
Total assets | 34,287 | 32,872 | |||
Liabilities: | |||||
Derivative liabilities | 602 | [8] | 666 | [9] | |
Short positions | 31 | [8] | 21 | [9] | |
Total liabilities | 633 | 687 | |||
Fair value, recurring | Mortgage Servicing Rights | |||||
Assets: | |||||
Mortgage Servicing Rights | 858 | ||||
Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 514 | 748 | |||
Liabilities: | |||||
Derivative liabilities | 178 | 265 | |||
Foreign Exchange Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 124 | 202 | |||
Liabilities: | |||||
Derivative liabilities | 120 | 204 | |||
Equity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 20 | [6] | 0 | ||
Liabilities: | |||||
Derivative liabilities | 137 | 91 | |||
Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 165 | 107 | |||
Liabilities: | |||||
Derivative liabilities | 167 | 106 | |||
U.S. Treasury and federal agencies | |||||
Assets: | |||||
Available-for-sale securities, fair value | 98 | 549 | |||
U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 98 | 549 | |||
Trading securities | 12 | 23 | |||
Obligations of states and political subdivisions | |||||
Assets: | |||||
Available-for-sale securities, fair value | 44 | 45 | |||
Obligations of states and political subdivisions | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 44 | 45 | |||
Trading securities | 22 | 39 | |||
Agency mortgage-backed securities | Residential mortgage-backed securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | [10] | 15,319 | 15,608 | ||
Agency mortgage-backed securities | Residential mortgage-backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 15,319 | 15,608 | |||
Trading securities | 395 | 8 | |||
Agency mortgage-backed securities | Commercial mortgage-backed securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | 10,167 | 9,055 | |||
Agency mortgage-backed securities | Commercial mortgage-backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 10,167 | 9,055 | |||
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | 3,293 | 3,112 | |||
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 3,293 | 3,112 | |||
Asset-backed securities and other debt securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | 2,218 | 2,116 | |||
Asset-backed securities and other debt securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 2,218 | 2,116 | |||
Trading securities | 63 | 15 | |||
Equity securities | |||||
Assets: | |||||
Available-for-sale securities, fair value | [11] | 681 | 698 | ||
Equity securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 69 | [2] | 91 | [3] | |
Trading securities | 370 | 325 | |||
Fair Value, Inputs, Level 1 | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 166 | [2],[12] | 561 | [3],[13] | |
Trading securities | 371 | [12] | 325 | [13] | |
Derivative assets | 40 | [6],[12] | 42 | [7],[13] | |
Total assets | 577 | [12] | 928 | [13] | |
Liabilities: | |||||
Derivative liabilities | 39 | [8],[12] | 30 | [9],[13] | |
Short positions | 25 | [8],[12] | 17 | [9],[13] | |
Total liabilities | 64 | [12] | 47 | [13] | |
Fair Value, Inputs, Level 1 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 1 | [12] | 20 | [13] | |
Liabilities: | |||||
Derivative liabilities | 1 | [12] | 3 | [13] | |
Fair Value, Inputs, Level 1 | Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 39 | [12] | 22 | [13] | |
Liabilities: | |||||
Derivative liabilities | 38 | [12] | 27 | [13] | |
Fair Value, Inputs, Level 1 | U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 98 | [12] | 471 | [13] | |
Trading securities | [12] | 1 | |||
Fair Value, Inputs, Level 1 | Equity securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 68 | [2],[12] | 90 | [3],[13] | |
Trading securities | 370 | [12] | 325 | [13] | |
Fair Value, Inputs, Level 2 | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 31,042 | [2],[12] | 30,015 | [3],[13] | |
Trading securities | 491 | [12] | 85 | [13] | |
Residential mortgage loans held for sale | 399 | [12] | 686 | ||
Derivative assets | 775 | [6],[12] | 1,002 | [7],[13] | |
Total assets | 32,707 | [12] | 31,788 | [13] | |
Liabilities: | |||||
Derivative liabilities | 421 | [8],[12] | 540 | [9],[13] | |
Short positions | 6 | [8],[12] | 4 | [9],[13] | |
Total liabilities | 427 | [12] | 544 | [13] | |
Fair Value, Inputs, Level 2 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 505 | [12] | 715 | [13] | |
Liabilities: | |||||
Derivative liabilities | 172 | [12] | 257 | [13] | |
Fair Value, Inputs, Level 2 | Foreign Exchange Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 124 | [12] | 202 | [13] | |
Liabilities: | |||||
Derivative liabilities | 120 | [12] | 204 | [13] | |
Fair Value, Inputs, Level 2 | Equity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | [6] | 20 | |||
Liabilities: | |||||
Derivative liabilities | 0 | ||||
Fair Value, Inputs, Level 2 | Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 126 | [12] | 85 | [13] | |
Liabilities: | |||||
Derivative liabilities | 129 | [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 | 11 | [12] | 23 | [13] | |
Fair Value, Inputs, Level 2 | Obligations of states and political subdivisions | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale securities, fair value | 44 | [12] | 45 | [13] | |
Trading securities | 22 | [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 | 15,319 | [12] | 15,608 | [13] | |
Trading securities | 395 | [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 | 10,167 | [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 | 3,293 | [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 | 2,218 | [12] | 2,116 | [13] | |
Trading securities | 63 | [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 fair value | 137 | [4] | 143 | [5] | |
Derivative assets | 8 | [6] | 13 | [7] | |
Total assets | 1,003 | 156 | |||
Liabilities: | |||||
Derivative liabilities | 142 | [8] | 96 | [9] | |
Total liabilities | 142 | 96 | |||
Fair Value, Inputs, Level 3 | Fair value, recurring | Mortgage Servicing Rights | |||||
Assets: | |||||
Mortgage Servicing Rights | 858 | ||||
Fair Value, Inputs, Level 3 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 8 | 13 | |||
Liabilities: | |||||
Derivative liabilities | 5 | 5 | |||
Fair Value, Inputs, Level 3 | Equity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 0 | 0 | |||
Liabilities: | |||||
Derivative liabilities | $ 137 | $ 91 | |||
[1] | Amortized cost of $ 31,644 and $ 31,024 at December 31, 2017 and 2016 , respectively. | ||||
[2] | Excludes FHLB, FRB and DTCC restricted stock holdings totaling $ 248 , $ 362 and $ 2 , respectively, at December 31, 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] | Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . | ||||
[6] | Included in other assets in the Consolidated Balance Sheets. | ||||
[7] | Included in other assets in the Consolidated Balance Sheets. | ||||
[8] | Included in other liabilities in the Consolidated Balance Sheets. | ||||
[9] | Included in other liabilities in the Consolidated Balance Sheet s. | ||||
[10] | Includes interest-only mortgage-backed securities of $ 34 and $ 60 as of December 31, 2017 and 2016 , respectively, recorded at fair value with fair value changes recorded in securities gains, net , i n the Consolidated Statements of Income . | ||||
[11] | Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 362 , and $ 2 , respectively, at December 31, 2017 and $ 248 , $ 358 and $ 1 , respectively, at December 31, 2016 , that are carried at cost, and certain mutual fund and equity security holdings. | ||||
[12] | During the year ended December 31, 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 (Ass187
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 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 | 362 | 358 |
DTCC Stock | $ 2 | $ 1 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Net fair value of the interest rate lock commitments | $ 8 | |||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 25 bp | 3 | |||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 50 bp | 7 | |||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 25 bp | 4 | |||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 50 bp | 8 | |||
Change in fair value of interest rate lock commitments, due to 10% adverse changes in the assumed loan closing rates | 1 | |||
Change in fair value of interest rate lock commitments, due to 20% adverse changes in the assumed loan closing rates | 2 | |||
Change in fair value of interest rate lock commitments, due to 10% favorable changes in the assumed loan closing rates | 1 | |||
Change in fair value of interest rate lock commitments, due to 20% favorable changes in the assumed loan closing rates | 2 | |||
Existing loans held for sale, further adjusted | 399 | $ 686 | ||
Net Losses On Operating Lease Equipment | 42 | 9 | ||
OTTI | [1] | 54 | 16 | $ 5 |
Larger commercial loans, subject to impairment review | 1 | |||
Asset Impairment Charges | 277 | 262 | ||
Commercial Loans Held For Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Existing loans held for sale, further adjusted | 2 | |||
Net impact related to fair value adjustments | 31 | 30 | ||
Gain Loss On Sales Of Loans Net | 2 | |||
Other Real Estate Owned | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Net impact related to fair value adjustments | 6 | 9 | ||
Nonrecurring Losses Included As Charge-Offs | 4 | 8 | ||
Private equity investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
OTTI | $ 1 | $ 9 | ||
[1] | (a) Included in securities gains, net, in the Consolidated Statements of Income. |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||
Beginning balance | $ 804 | $ 380 | $ 484 | |||
Included in earnings | (107) | 130 | 399 | |||
Purchases | 234 | (3) | (2) | |||
Sale and exercise of warrant | (334) | |||||
Sales | (477) | |||||
Settlements | (86) | (131) | (111) | |||
Transfers into Level 3 | 16 | [1] | 18 | [2] | 87 | [3] |
Ending balance | 861 | 804 | 380 | |||
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 | (191) | [4] | (45) | [5] | 83 | [6] |
Residential Mortgage | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||
Beginning balance | 143 | 167 | 108 | |||
Included in earnings | 1 | (2) | 0 | |||
Purchases | 0 | 0 | 0 | |||
Settlements | (23) | (40) | (28) | |||
Transfers into Level 3 | 16 | [1] | 18 | [2] | 87 | [3] |
Ending balance | 137 | 143 | 167 | |||
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 | 1 | [4] | (2) | [5] | 0 | [6] |
Mortgage Servicing Rights | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||
Beginning balance | 744 | |||||
Included in earnings | (122) | |||||
Purchases | (236) | |||||
Settlements | 0 | |||||
Transfers into Level 3 | 0 | |||||
Ending balance | 858 | 744 | ||||
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 | (122) | |||||
Interest Rate Contract | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||
Beginning balance | 8 | [7] | 12 | [8] | 10 | [9] |
Included in earnings | 94 | [7] | 115 | [8] | 111 | [9] |
Purchases | 2 | [7] | (3) | [8] | (2) | [9] |
Settlements | (97) | [7] | (116) | [8] | (107) | [9] |
Transfers into Level 3 | 0 | [1] | 0 | 0 | ||
Ending balance | 3 | [7] | 8 | [7] | 12 | [8] |
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | 10 | [4],[7] | 13 | [5],[8] | 17 | [6],[9] |
Equity Contract | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||
Beginning balance | (91) | [8] | 201 | [9] | 366 | [9] |
Included in earnings | (80) | [7] | 17 | [8] | 288 | [9] |
Purchases | 0 | 0 | ||||
Sale and exercise of warrant | 0 | [7] | (334) | [8] | 477 | [9] |
Settlements | 34 | [7] | 25 | [8] | 24 | [9] |
Transfers into Level 3 | 0 | 0 | 0 | |||
Ending balance | (137) | [7] | (91) | [8] | 201 | [9] |
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | $ (80) | [4],[7] | $ (56) | [5],[8] | $ 66 | [6],[9] |
[1] | Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. | |||||
[2] | Includes certain residential mortgage loans held for sale that were transferred to held for investment. | |||||
[3] | Includes certain residential mortgage loans held for sale that were transferred to held for investment. | |||||
[4] | Includes interest income and expense. | |||||
[5] | Includes interest income and expense. | |||||
[6] | Includes interest income and expense. | |||||
[7] | Net interest rate derivatives include derivative assets and liabilities of $ 8 and $ 5 , respectively, as of December 31, 2017 . | |||||
[8] | Net interest rate derivatives include derivative assets and liabilities of $ 13 and $ 5 , respect ively, as of December 31, 2016 . Net equity derivatives include derivative assets and liabilities of $ 0 and $ 91 , respectively, as of December 31, 2016 . | |||||
[9] | Net interest rate derivatives include derivative assets and liabilities of $ 15 and $ 3 , respectively, as of December 31, 2015 . Net equity derivatives include derivative assets and liabilities of $ 262 and $ 61 , respectively, as of December 31, 2015 . |
Fair Value Measurements (Rec190
Fair Value Measurements (Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Derivative assets | $ 861 | $ 804 | $ 380 | $ 484 |
Interest Rates | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Derivative assets | 8 | 13 | 15 | |
Derivative liabilities | $ 5 | 5 | 3 | |
Equity Contract | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Derivative assets | 0 | 262 | ||
Derivative liabilities | $ 91 | $ 61 |
Fair Value Measurements (Total
Fair Value Measurements (Total Gains and Losses Included in Earnings for Assets and Liabilites Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Detail) - Fair Value, Inputs, Level 3 - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gains and losses included in earnings | $ (107) | $ 130 | $ 399 |
Mortgage Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gains and losses included in earnings | (29) | 112 | 110 |
Corporate Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gains and losses included in earnings | 2 | 1 | 1 |
Other Noninterest Income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gains and losses included in earnings | $ (80) | $ 17 | $ 288 |
Fair Value Measurements (Tot192
Fair Value Measurements (Total Gains and Losses Included in Earning Attributable to Changes in Unrealized Gains and Losses Related to Level 3 Assets and Liabilites Still Held at Year End) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ (191) | $ (45) | $ 83 |
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 | (113) | 10 | 16 |
Corporate Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | 2 | 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 | $ (80) | $ (56) | $ 66 |
Fair Value Measurements (Fai193
Fair Value Measurements (Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Recurring Basis)) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Quantitative Information About Level 3 Fair Value Measurements | ||
Residential mortgage loans measured at fair value | $ 137 | $ 143 |
Derivative instruments | 823 | 1,057 |
Residential mortgage loans | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Residential mortgage loans measured at fair value | 137 | 143 |
Mortgage Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Mortgage Servicing Rights | 858 | |
IRLCs, net | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Derivative instruments | 8 | 12 |
Swap associated with the sale of Visa, Inc. Class B shares | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Derivative instruments | $ (137) | $ (91) |
Minimum | Residential mortgage loans | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Interest rate risk factor | (10.60%) | (11.50%) |
Credit risk factor | 0.00% | 0.00% |
Minimum | Mortgage Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Prepayment speed | 0.00% | 0.70% |
OAS spread (bps) | 45000.00% | 10000.00% |
Minimum | IRLCs, net | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Loan closing rates | 12.50% | 23.80% |
Minimum | Swap associated with the sale of Visa, Inc. Class B shares | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Timing of the resolution of the covered litigation | Dec. 31, 2020 | Dec. 31, 2018 |
Maximum | Residential mortgage loans | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Interest rate risk factor | 14.50% | 13.80% |
Credit risk factor | 52.10% | 75.60% |
Maximum | Mortgage Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Prepayment speed | 98.10% | 100.00% |
OAS spread (bps) | 151500.00% | 151500.00% |
Maximum | IRLCs, net | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Loan closing rates | 97.70% | 99.50% |
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, 2023 | Dec. 31, 2022 |
Weighted-average | Residential mortgage loans | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Interest rate risk factor | 3.10% | 2.30% |
Credit risk factor | 1.40% | 1.40% |
Weighted-average | Mortgage Servicing Rights | Fixed | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Prepayment speed | 11.40% | 10.20% |
OAS spread (bps) | 54900.00% | 65400.00% |
Weighted-average | Mortgage Servicing Rights | Adjustable | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Prepayment speed | 24.60% | 25.30% |
OAS spread (bps) | 78500.00% | 73800.00% |
Weighted-average | IRLCs, net | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Loan closing rates | 71.80% | 76.80% |
Weighted-average | 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 | Aug. 15, 2021 | Aug. 24, 2020 |
Fair Value Measurements (Ass194
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | $ 1,648 | $ 1,346 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (277) | (262) |
Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 1 | 5 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (33) | (32) |
Commercial and Industrial Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 327 | 412 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (99) | (166) |
Commercial Mortgage Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 19 | 15 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (12) | (4) |
Commercial Construction Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | 2 | |
Commercial Leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 4 | 3 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (6) | 3 |
Mortgage Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 744 | |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | 7 | |
Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 27 | 42 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (10) | (17) |
Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 24 | 28 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (6) | (31) |
Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 60 | 37 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (42) | (9) |
Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 8 | 60 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (1) | (9) |
Affordable Housing Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 1,178 | |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 1,648 | 1,346 |
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 | 1 | 5 |
Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 327 | 412 |
Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 19 | 15 |
Fair Value, Inputs, Level 3 | Commercial Construction Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | |
Fair Value, Inputs, Level 3 | Commercial Leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 4 | 3 |
Fair Value, Inputs, Level 3 | Mortgage Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 744 | |
Fair Value, Inputs, Level 3 | Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 27 | 42 |
Fair Value, Inputs, Level 3 | Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 24 | 28 |
Fair Value, Inputs, Level 3 | Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 60 | 37 |
Fair Value, Inputs, Level 3 | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 8 | $ 60 |
Fair Value, Inputs, Level 3 | Affordable Housing Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | $ 1,178 |
Fair Value Measurements (Fai195
Fair Value Measurements (Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Nonrecurring Basis)) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commercial Loans Held For Sale | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | $ 1 | $ 5 |
Commercial and Industrial Loans | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 327 | 412 |
Commercial Mortgage Loans | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 19 | 15 |
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 | 4 | |
Residential mortgage loans | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 3 | |
Mortgage Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 744 | |
OREO Property | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 27 | 42 |
Bank premises and equipment | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 24 | 28 |
Operating lease equipment | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 60 | 37 |
Private equity investments | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 8 | $ 60 |
Affordable Housing Investments | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | $ 1,178 | |
Minimum | Residential mortgage loans | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Interest rate risk factor | (10.60%) | (11.50%) |
Credit risk factor | 0.00% | 0.00% |
Minimum | Mortgage Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Prepayment speed | 0.00% | 0.70% |
OAS spread (bps) | 45000.00% | 10000.00% |
Minimum | Private equity investments | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Liquidity discount | 2.50% | 5.00% |
Maximum | Residential mortgage loans | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Interest rate risk factor | 14.50% | 13.80% |
Credit risk factor | 52.10% | 75.60% |
Maximum | Mortgage Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Prepayment speed | 98.10% | 100.00% |
OAS spread (bps) | 151500.00% | 151500.00% |
Maximum | Private equity investments | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Liquidity discount | 15.00% | 37.50% |
Weighted-average | Commercial Loans Held For Sale | Commercial | ||
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 | 3.10% | 2.30% |
Credit risk factor | 1.40% | 1.40% |
Weighted-average | Private equity investments | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Liquidity discount | 5.80% | 12.80% |
Weighted-average | Fixed | Mortgage Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Prepayment speed | 11.40% | 10.20% |
OAS spread (bps) | 54900.00% | 65400.00% |
Weighted-average | Adjustable | Mortgage Servicing Rights | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Prepayment speed | 24.60% | 25.30% |
OAS spread (bps) | 78500.00% | 73800.00% |
Fair Value Measurements (Differ
Fair Value Measurements (Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance for Residential Mortgage Loans Measured at Fair Value) (Detail) - Residential mortgage loans - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Aggregate fair value | ||
Residential mortgage loans measured at fair value | $ 536 | $ 829 |
Past due loans of 90 days or more | 5 | 2 |
Nonaccrual loans | 1 | 1 |
Aggregate unpaid principal balance | ||
Residential mortgage loans measured at fair value | 522 | 823 |
Past due loans of 90 days or more | 5 | 2 |
Nonaccrual loans | 1 | 1 |
Difference | ||
Residential mortgage loans measured at fair value | 14 | 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 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Financial assets: | |||||||
Cash and due from banks | $ 2,514 | [1] | $ 2,392 | [1] | $ 2,540 | $ 3,091 | |
Held-to-maturity securities, amortized cost | [2] | 24 | 26 | ||||
Other short-term investments | [1] | 2,753 | 2,754 | ||||
Loans held for sale | [3] | 492 | 751 | ||||
Portfolio loans and leases, net | 90,774 | 90,845 | |||||
Other securities, fair value | [4] | 31,820 | 31,183 | ||||
Held-to-maturity securities, fair value | 24 | 26 | |||||
Loans held for sale | 399 | 686 | |||||
Portfolio loans and leases at fair value | 137 | 143 | |||||
Financial liabilities: | |||||||
Deposits | 103,162 | 103,821 | |||||
Federal funds purchased | 174 | 132 | |||||
Other short-term borrowings | 4,012 | 3,535 | |||||
Long-term debt | [1] | 14,904 | 14,388 | ||||
Residential Mortgage | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 137 | 143 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | |||||||
Financial assets: | |||||||
Cash and due from banks | 2,514 | 2,392 | |||||
Held-to-maturity securities, amortized cost | 24 | 26 | |||||
Other short-term investments | 2,753 | 2,754 | |||||
Loans held for sale | 93 | 65 | |||||
Portfolio loans and leases, net | 90,637 | 90,702 | |||||
Unallocated Allowance for Loan and Lease Losses | (120) | (112) | |||||
Financial liabilities: | |||||||
Deposits | 103,162 | 103,821 | |||||
Federal funds purchased | 174 | 132 | |||||
Other short-term borrowings | 4,012 | 3,535 | |||||
Long-term debt | 14,904 | 14,388 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | FHLB and FRB restricted stock holdings | |||||||
Financial assets: | |||||||
Other securities | 612 | 607 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial and Industrial Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 40,519 | 40,958 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Mortgage Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 6,539 | 6,817 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Construction Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 4,530 | 3,887 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Leases | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 4,054 | 3,959 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Residential Mortgage | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 15,365 | 14,812 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Home Equity | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 6,968 | 7,637 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Automobile Loans | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 9,074 | 9,941 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Credit Card | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 2,182 | 2,135 | |||||
Carrying (Reported) Amount, Fair Value Disclosure | Other Consumer Loans and Leases | |||||||
Financial assets: | |||||||
Portfolio loans and leases, net | 1,526 | 668 | |||||
Total Fair Value | |||||||
Financial assets: | |||||||
Cash and due from banks, fair value | 2,514 | 2,392 | |||||
Held-to-maturity securities, fair value | 24 | 26 | |||||
Other short term investments, fair value | 2,753 | 2,754 | |||||
Portfolio loans and leases at fair value | 92,948 | 92,872 | |||||
Financial liabilities: | |||||||
Deposits, fair value | 103,123 | 103,811 | |||||
Federal funds purchased, fair value | 174 | 132 | |||||
Other short-term borrowings, fair value | 4,012 | 3,535 | |||||
Long term debt, fair value | 15,574 | 14,833 | |||||
Total Fair Value | Non Fair Value Option HFS Loans | |||||||
Financial assets: | |||||||
Loans held for sale | 93 | 65 | |||||
Total Fair Value | FHLB and FRB restricted stock holdings | |||||||
Financial assets: | |||||||
Other securities, fair value | 612 | 607 | |||||
Total Fair Value | Commercial and Industrial Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 41,718 | 41,976 | |||||
Total Fair Value | Commercial Mortgage Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 6,490 | 6,735 | |||||
Total Fair Value | Commercial Construction Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 4,560 | 3,853 | |||||
Total Fair Value | Commercial Leases | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 3,705 | 3,651 | |||||
Total Fair Value | Residential Mortgage | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 15,996 | 15,415 | |||||
Total Fair Value | Home Equity | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 7,410 | 8,421 | |||||
Total Fair Value | Automobile Loans | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 8,832 | 9,640 | |||||
Total Fair Value | Credit Card | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 2,616 | 2,503 | |||||
Total Fair Value | Other Consumer Loans and Leases | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 1,621 | 678 | |||||
Total Fair Value | Fair Value, Inputs, Level 1 | |||||||
Financial assets: | |||||||
Cash and due from banks, fair value | 2,514 | 2,392 | |||||
Other short term investments, fair value | 2,753 | 2,754 | |||||
Financial liabilities: | |||||||
Federal funds purchased, fair value | 174 | 132 | |||||
Long term debt, fair value | 15,045 | 14,288 | |||||
Total Fair Value | Fair Value, Inputs, Level 2 | |||||||
Financial liabilities: | |||||||
Deposits, fair value | 103,123 | 103,811 | |||||
Other short-term borrowings, fair value | 4,012 | 3,535 | |||||
Long term debt, fair value | 529 | 545 | |||||
Total Fair Value | Fair Value, Inputs, Level 2 | FHLB and FRB restricted stock holdings | |||||||
Financial assets: | |||||||
Other securities, fair value | 612 | 607 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | |||||||
Financial assets: | |||||||
Held-to-maturity securities, fair value | 24 | 26 | |||||
Portfolio loans and leases at fair value | 92,948 | 92,872 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Non Fair Value Option HFS Loans | |||||||
Financial assets: | |||||||
Loans held for sale | 93 | 65 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 41,718 | 41,976 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 6,490 | 6,735 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Construction Loans | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 4,560 | 3,853 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Leases | Commercial | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 3,705 | 3,651 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Residential Mortgage | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 15,996 | 15,415 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Home Equity | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 7,410 | 8,421 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Automobile Loans | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 8,832 | 9,640 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Credit Card | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | 2,616 | 2,503 | |||||
Total Fair Value | Fair Value, Inputs, Level 3 | Other Consumer Loans and Leases | |||||||
Financial assets: | |||||||
Portfolio loans and leases at fair value | $ 1,621 | $ 678 | |||||
[1] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . | ||||||
[2] | Fair value of $ 24 and $ 26 at December 31, 2017 and 2016 , respectively. | ||||||
[3] | Includes $ 399 and $ 686 of residential mortgage loans held for sale measured at fair value at December 31, 2017 and 2016 , respectively. | ||||||
[4] | Amortized cost of $ 31,644 and $ 31,024 at December 31, 2017 and 2016 , respectively. |
Regulatory Capital Requireme198
Regulatory Capital Requirements (Capital and Risk-Based Capital and Leverage Ratios for the Bancorp and its Significant Subsidiary Banks) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fifth Third Bancorp | ||
Risk Based Ratios | ||
CET1 capital (to risk-weighted assets) | 10.61% | 10.39% |
Tier I risk-based capital (to risk-weighted assets) | 11.74% | 11.50% |
Total risk-based capital (to risk-weighted assets) | 15.16% | 15.02% |
Tier I leverage (to quarterly average assets) | 10.01% | 9.90% |
Risk Based Capital | ||
CET1 capital (to risk-weighted assets) | $ 12,517 | $ 12,426 |
Tier I risk-based capital (to risk-weighted assets) | 13,848 | 13,756 |
Total risk-based capital (to risk weighted assets) | 17,887 | 17,972 |
Tier I leverage (to quarterly average assets) | $ 13,848 | $ 13,756 |
Fifth Third Bank | ||
Risk Based Ratios | ||
CET1 capital (to risk-weighted assets) | 12.06% | 11.92% |
Tier I risk-based capital (to risk-weighted assets) | 12.06% | 11.92% |
Total risk-based capital (to risk-weighted assets) | 13.88% | 13.76% |
Tier I leverage (to quarterly average assets) | 10.32% | 10.30% |
Risk Based Capital | ||
CET1 capital (to risk-weighted assets) | $ 14,008 | $ 14,015 |
Tier I risk-based capital (to risk-weighted assets) | 14,008 | 14,015 |
Total risk-based capital (to risk weighted assets) | 16,126 | 16,175 |
Tier I leverage (to quarterly average assets) | $ 14,008 | $ 14,015 |
Minimum | ||
Risk Based Ratios | ||
CET1 capital (to risk-weighted assets) | 4.50% | |
Tier I risk-based capital (to risk-weighted assets) | 6.00% | |
Total risk-based capital (to risk-weighted assets) | 8.00% | |
Tier I leverage (to quarterly average assets) | 4.00% | |
Well-capitalized | ||
Risk Based Ratios | ||
CET1 capital (to risk-weighted assets) | 6.50% | |
Tier I risk-based capital (to risk-weighted assets) | 8.00% | |
Total risk-based capital (to risk-weighted assets) | 10.00% | |
Tier I leverage (to quarterly average assets) | 5.00% |
Parent Company Financial Sta199
Parent Company Financial Statements (Condensed Statements of Income - Parent Company Only) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Dividends from subsidiaries: | ||||
Consolidated nonbank subsidiaries | $ 2,300 | $ 1,900 | ||
Total income | 4,489 | 4,193 | $ 4,028 | |
Expenses | ||||
Interest | 691 | 578 | 495 | |
Other | 186 | 187 | 191 | |
Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries | 2,771 | 2,065 | 2,365 | |
Applicable income tax benefit | (577) | (505) | (659) | |
Net income (loss) attributable to Bancorp | 2,194 | 1,564 | 1,712 | |
Other Comprehensive Income (loss) | 14 | (138) | (232) | |
Comprehensive income attributable to Bancorp | 2,208 | 1,426 | 1,480 | |
Parent Company Only | ||||
Dividends from subsidiaries: | ||||
Consolidated nonbank subsidiaries | [1] | 2,343 | 1,886 | 1,040 |
Interest on loans to subsidiaries | 21 | 18 | 15 | |
Total income | 2,364 | 1,904 | 1,055 | |
Expenses | ||||
Interest | 176 | 171 | 178 | |
Other | 42 | 18 | 22 | |
Total expenses | 218 | 189 | 200 | |
Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries | 2,146 | 1,715 | 855 | |
Applicable income tax benefit | 68 | 63 | 69 | |
Income (Loss) Before Change in Undistributed Earnings of Subsidiaries | 2,214 | 1,778 | 924 | |
Change in undistributed earnings (loss) | (20) | (214) | 788 | |
Net income (loss) attributable to Bancorp | 2,194 | 1,564 | 1,712 | |
Other Comprehensive Income (loss) | 0 | 0 | 0 | |
Comprehensive income attributable to Bancorp | $ 2,194 | $ 1,564 | $ 1,712 | |
[1] | (a) The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $2 .3 billion , $1.9 billion and $1.0 billion for the years ended December 31, 2017 , 2016 and 2015 , respectively . |
Parent Company Financial Sta200
Parent Company Financial Statements (Condensed Statements of Income - Parent Company Only) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Dividend Received From Nonbank Companies And Related Subsidiaries | $ 2,300 | $ 1,900 | ||
Parent Company Only | ||||
Dividend Received From Nonbank Companies And Related Subsidiaries | [1] | $ 2,343 | $ 1,886 | $ 1,040 |
[1] | (a) The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $2 .3 billion , $1.9 billion and $1.0 billion for the years ended December 31, 2017 , 2016 and 2015 , respectively . |
Parent Company Financial Sta201
Parent Company Financial Statements (Condensed Balance Sheet - Parent Company Only) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments in subsidiaries: | |||||
Goodwill | $ 2,445 | $ 2,416 | $ 2,416 | ||
Other assets | [1] | 6,975 | 7,844 | ||
Total Assets | 142,193 | 142,177 | 141,048 | ||
Liabilities | |||||
Other short-term borrowings | 4,012 | 3,535 | |||
Accrued expenses and other liabilities | [1] | 2,144 | 2,269 | ||
Long-term debt (external) | [1] | 14,904 | 14,388 | ||
Total liabilities | 125,808 | 125,945 | |||
Shareholders' Equity | |||||
Common stock | [2] | 2,051 | 2,051 | ||
Preferred stock | [3] | 1,331 | 1,331 | ||
Capital surplus | 2,790 | 2,756 | |||
Retained earnings | 15,122 | 13,441 | |||
Accumulated other comprehensive income | 73 | 59 | 197 | $ 429 | |
Treasury stock | [2] | (5,002) | (3,433) | ||
Noncontrolling interests | 20 | 27 | |||
Total Equity | 16,365 | 16,205 | |||
Total Equity | 16,385 | 16,232 | $ 15,870 | $ 15,665 | |
Total Liabilities and Equity | 142,193 | 142,177 | |||
Parent Company Only | |||||
Assets | |||||
Cash | 80 | 130 | |||
Short-term Investments | 3,493 | 3,074 | |||
Loans to subsidiaries: | |||||
Nonbank subsidiaries | 843 | 969 | |||
Total loans to subsidiaries | 843 | 969 | |||
Investments in subsidiaries: | |||||
Nonbank subsidiaries | 17,695 | 17,588 | |||
Total investment in subsidiaries | 17,695 | 17,588 | |||
Goodwill | 80 | 80 | |||
Other assets | 329 | 366 | |||
Total Assets | 22,520 | 22,207 | |||
Liabilities | |||||
Other short-term borrowings | 315 | 344 | |||
Accrued expenses and other liabilities | 472 | 461 | |||
Long-term debt (external) | 5,348 | 5,170 | |||
Total liabilities | 6,135 | 5,975 | |||
Shareholders' Equity | |||||
Common stock | 2,051 | 2,051 | |||
Preferred stock | 1,331 | 1,331 | |||
Capital surplus | 2,790 | 2,756 | |||
Retained earnings | 15,122 | 13,441 | |||
Accumulated other comprehensive income | 73 | 59 | |||
Treasury stock | (5,002) | (3,433) | |||
Noncontrolling interests | 20 | 27 | |||
Total Equity | 16,385 | 16,232 | |||
Total Liabilities and Equity | $ 22,520 | $ 22,207 | |||
[1] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . | ||||
[2] | Common shares: Stated value $ 2.22 per share; authorized 2,000,000,000 ; outstanding at December 31, 2017 – 693,804,893 (excludes 230,087,688 treasury shares) , 2016 – 750,479,299 (excludes 173,413,282 treasury shares). | ||||
[3] | 446,000 shares of undesignated no par value preferred stock are authorized and unissued at December 31, 2017 and 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 December 31, 2017 and 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 December 31, 2017 and 2016 ; and fixed-to-floating rate non-cumulative Series J perpetual preferred stock with a $ 25,000 liquidation preference: 12,000 authorized shares, issue d and outstanding at December 31, 2017 and 2016 . |
Segments (Results of Operations
Segments (Results of Operations and Average Assets by Segment - Additional Information) (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements | |
Full-service Banking Centers | 1,154 |
Number of business segments | 4 |
Parent Company Financial Sta203
Parent Company Financial Statements (Condensed Statement of Cash Flow - Parent Company Only) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Operating Activities | |||||
Net income (loss) | $ 2,194 | $ 1,564 | $ 1,712 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
(Benefit from) provision for deferred income taxes | (251) | (148) | (71) | ||
Net change in undistributed earnings | 47 | 66 | 63 | ||
Net change in: | |||||
Other assets | (23) | 351 | 94 | ||
Accrued expenses and other liabilities | (138) | (157) | 327 | ||
Net Cash Provided by (Used in) Operating Activities | 1,494 | 2,114 | 2,418 | ||
Net change in: | |||||
Other short-term investments | 1 | (83) | 5,243 | ||
Net Cash Provided by (Used in) Investing Activities | 414 | (2,887) | (3,931) | ||
Financing Activities | |||||
Net change in other short-term borrowings | 477 | 2,028 | (49) | ||
Dividends paid on common shares | 430 | 402 | 422 | ||
Dividends paid on preferred shares | 75 | 52 | 75 | ||
Proceeds from issuance of long-term debt | 2,490 | 3,735 | 3,091 | ||
Repayment of long-term debt | 1,969 | 5,119 | 2,205 | ||
Repurchase of treasury stock and related forward contract | 1,605 | 661 | 850 | ||
Other, net | (57) | (31) | (28) | ||
Net Cash Provided (Used in) Provided by Financing Activities | (1,786) | 625 | 962 | ||
Net (Decrease) Increase in Cash | 122 | (148) | (551) | ||
Cash and Due from Banks at Beginning of Period | 2,392 | [1] | 2,540 | 3,091 | |
Cash and Due from Banks at End of Period | 2,514 | [1] | 2,392 | [1] | 2,540 |
Parent Company Only | |||||
Operating Activities | |||||
Net income (loss) | 2,194 | 1,564 | 1,712 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
(Benefit from) provision for deferred income taxes | 2 | 0 | (4) | ||
Net change in undistributed earnings | 20 | 214 | (788) | ||
Net change in: | |||||
Other assets | 37 | 14 | (18) | ||
Accrued expenses and other liabilities | (15) | (35) | 31 | ||
Net Cash Provided by (Used in) Operating Activities | 2,238 | 1,757 | 933 | ||
Net change in: | |||||
Other short-term investments | (419) | 654 | (539) | ||
Loans to subsidiaries | 126 | 13 | 2 | ||
Net Cash Provided by (Used in) Investing Activities | (293) | 667 | (537) | ||
Financing Activities | |||||
Net change in other short-term borrowings | (29) | (60) | (22) | ||
Dividends paid on common shares | (430) | (402) | (422) | ||
Dividends paid on preferred shares | (75) | (52) | (75) | ||
Proceeds from issuance of long-term debt | 697 | 0 | 1,099 | ||
Repayment of long-term debt | (500) | (1,250) | 0 | ||
Repurchase of treasury stock and related forward contract | (1,605) | (661) | (850) | ||
Other, net | (53) | 3 | 2 | ||
Net Cash Provided (Used in) Provided by Financing Activities | (1,995) | (2,422) | (268) | ||
Net (Decrease) Increase in Cash | (50) | 2 | 128 | ||
Cash and Due from Banks at Beginning of Period | 130 | 128 | 0 | ||
Cash and Due from Banks at End of Period | $ 80 | $ 130 | $ 128 | ||
[1] | Includes $ 0 and $ 85 of cash and due from banks, $ 62 and $ 0 of other short-term investments, $ 1,297 and $ 1,216 of portfolio loans and leases, $ (6) and $ (26) of ALLL, $ 7 and $ 9 of other assets, $ 2 and $ 3 of other liabilities and $ 1,190 and $ 1,094 of long-term debt from consolidated VIEs that are included in their respective captions above at December 31, 2017 and 2016 , respectively. For further information, refer to Note 11 . |
Segments (Results of Operati204
Segments (Results of Operations and Average Assets by Segment) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Segment Reporting Information | ||||||
Net interest income | $ 3,798 | $ 3,615 | $ 3,533 | |||
Provision for (benefit from) loan and lease losses | 261 | 343 | 396 | |||
Net interest income after provision for loan and lease losses | 3,537 | 3,272 | 3,137 | |||
Total noninterest income | 3,224 | 2,696 | 3,003 | |||
Total noninterest expense | 3,990 | 3,903 | 3,775 | |||
Income (Loss) Before Income Taxes | 2,771 | 2,065 | 2,365 | |||
Applicable income tax expense (benefit) | 577 | 505 | 659 | |||
Net income (loss) | 2,194 | 1,560 | 1,706 | |||
Less: Net income attributable to noncontrolling interests | 0 | (4) | (6) | |||
Net income (loss) attributable to Bancorp | 2,194 | 1,564 | 1,712 | |||
Dividends on preferred stock | 75 | 75 | 75 | |||
Net income (loss) available to common shareholders | 2,119 | 1,489 | 1,637 | |||
Total goodwill | 2,445 | 2,416 | 2,416 | |||
Total Assets | 142,193 | 142,177 | 141,048 | |||
Intersegment Elimination | ||||||
Segment Reporting Information | ||||||
Total noninterest income | (132) | [1] | (131) | [2] | (149) | [3] |
Total noninterest expense | (132) | (131) | (149) | |||
Commercial Banking | ||||||
Segment Reporting Information | ||||||
Net interest income | 1,652 | 1,814 | 1,625 | |||
Provision for (benefit from) loan and lease losses | 38 | 76 | 298 | |||
Net interest income after provision for loan and lease losses | 1,614 | 1,738 | 1,327 | |||
Total noninterest income | 838 | [4] | 907 | [5] | 853 | |
Total noninterest expense | 1,496 | 1,426 | 1,369 | |||
Income (Loss) Before Income Taxes | 956 | 1,219 | 811 | |||
Applicable income tax expense (benefit) | 150 | 224 | 93 | |||
Net income (loss) | 806 | 995 | 718 | |||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||
Net income (loss) attributable to Bancorp | 806 | 995 | 718 | |||
Dividends on preferred stock | 0 | 0 | 0 | |||
Net income (loss) available to common shareholders | 806 | 995 | 718 | |||
Total goodwill | 613 | 613 | 613 | |||
Total Assets | 58,568 | 58,092 | 58,105 | |||
Branch Banking | ||||||
Segment Reporting Information | ||||||
Net interest income | 1,782 | 1,669 | 1,555 | |||
Provision for (benefit from) loan and lease losses | 153 | 138 | 151 | |||
Net interest income after provision for loan and lease losses | 1,629 | 1,531 | 1,404 | |||
Total noninterest income | 756 | [6] | 755 | [7] | 652 | [8] |
Total noninterest expense | 1,621 | 1,621 | 1,598 | |||
Income (Loss) Before Income Taxes | 764 | 665 | 458 | |||
Applicable income tax expense (benefit) | 270 | 234 | 161 | |||
Net income (loss) | 494 | 431 | 297 | |||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||
Net income (loss) attributable to Bancorp | 494 | 431 | 297 | |||
Dividends on preferred stock | 0 | 0 | 0 | |||
Net income (loss) available to common shareholders | 494 | 431 | 297 | |||
Total goodwill | 1,655 | 1,655 | 1,655 | |||
Total Assets | 57,892 | 55,940 | 53,609 | |||
Consumer Lending | ||||||
Segment Reporting Information | ||||||
Net interest income | 240 | 248 | 249 | |||
Provision for (benefit from) loan and lease losses | 40 | 44 | 44 | |||
Net interest income after provision for loan and lease losses | 200 | 204 | 205 | |||
Total noninterest income | 237 | 303 | 407 | |||
Total noninterest expense | 467 | 475 | 440 | |||
Income (Loss) Before Income Taxes | (30) | 32 | 172 | |||
Applicable income tax expense (benefit) | (11) | 12 | 61 | |||
Net income (loss) | (19) | 20 | 111 | |||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||
Net income (loss) attributable to Bancorp | (19) | 20 | 111 | |||
Dividends on preferred stock | 0 | 0 | 0 | |||
Net income (loss) available to common shareholders | (19) | 20 | 111 | |||
Total goodwill | 0 | 0 | 0 | |||
Total Assets | 22,218 | 22,041 | 22,656 | |||
Wealth and Asset Management | ||||||
Segment Reporting Information | ||||||
Net interest income | 154 | 168 | 128 | |||
Provision for (benefit from) loan and lease losses | 6 | 1 | 3 | |||
Net interest income after provision for loan and lease losses | 148 | 167 | 125 | |||
Total noninterest income | 419 | 399 | 418 | |||
Total noninterest expense | 454 | 422 | 455 | |||
Income (Loss) Before Income Taxes | 113 | 144 | 88 | |||
Applicable income tax expense (benefit) | 39 | 51 | 30 | |||
Net income (loss) | 74 | 93 | 58 | |||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||
Net income (loss) attributable to Bancorp | 74 | 93 | 58 | |||
Dividends on preferred stock | 0 | 0 | 0 | |||
Net income (loss) available to common shareholders | 74 | 93 | 58 | |||
Total goodwill | 177 | 148 | 148 | |||
Total Assets | 9,485 | 9,487 | 9,939 | |||
General Corporate and Other | ||||||
Segment Reporting Information | ||||||
Net interest income | (30) | (284) | (24) | |||
Provision for (benefit from) loan and lease losses | 24 | 84 | (100) | |||
Net interest income after provision for loan and lease losses | (54) | (368) | 76 | |||
Total noninterest income | 1,106 | 463 | 822 | |||
Total noninterest expense | 84 | 90 | 62 | |||
Income (Loss) Before Income Taxes | 968 | 5 | 836 | |||
Applicable income tax expense (benefit) | 129 | (16) | 314 | |||
Net income (loss) | 839 | 21 | 522 | |||
Less: Net income attributable to noncontrolling interests | 0 | (4) | (6) | |||
Net income (loss) attributable to Bancorp | 839 | 25 | 528 | |||
Dividends on preferred stock | 75 | 75 | 75 | |||
Net income (loss) available to common shareholders | 764 | (50) | 453 | |||
Total goodwill | 0 | 0 | 0 | |||
Total Assets | $ (5,970) | [9] | $ (3,383) | [10] | $ (3,261) | [11] |
[1] | Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Consolidated Statements of Income . | |||||
[2] | Reve nue sharing agreements between wealth and asset management and b ranch b anking are eliminated in the Consolidated Statements of Income. | |||||
[3] | Revenue sharing agreements between wealth and asset management and b ranch b anking are eliminated in the Consolidated Statements of Income. | |||||
[4] | Includes impairment charges of $ 52 for operating lease equipment. For more information refer to Note 8 and Note 27 . | |||||
[5] | Includes impairment charges of $ 20 for operating lease equipment. For more information, refer to Note 8 and Note 27 . | |||||
[6] | Includes impairment charges of $ 7 for branches and land. For more information refer to Note 7 and Note 27 . | |||||
[7] | Includes impairment charges of $ 32 for branches and land. For more information refer to Note 7 and Note 27 . | |||||
[8] | Includes impairment charges of $ 109 for branches and land. For more information refer to Note 7 . | |||||
[9] | Includes bank premises and equipment of $ 27 classified as held for sale. For more information, refer to Note 7 . | |||||
[10] | Includes bank premises and equipment of $ 39 classified as held for sale. For more information, refer to Note 7 . | |||||
[11] | Includes bank premises and equipment of $ 81 classified as held for sale . |
Segments (Results of Operati205
Segments (Results of Operations and Average Assets by Segment) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting Information | ||||
Bank premises and equipment held for sale | $ 27 | $ 39 | $ 81 | |
Branch Banking | ||||
Segment Reporting Information | ||||
Impairment of Branches and Land | 7 | 32 | 109 | |
Commercial Banking | Operating lease equipment | ||||
Segment Reporting Information | ||||
Other Asset Impairment Charges | 52 | 20 | $ 36 | [1],[2] |
General Corporate and Other | ||||
Segment Reporting Information | ||||
Bank premises and equipment held for sale | $ 27 | $ 39 | ||
[1] | These rates reflect the floating rates as of December 31, 2017 . | |||
[2] | Includes impairment charges of $ 36 for operating lease equipment. For more information, refer to Note 8 . |
Subsequent Event (Subsequent Ev
Subsequent Event (Subsequent Event - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||||||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Jun. 30, 2014 | [1] | Sep. 30, 2013 | [1] | Jun. 30, 2013 | [1] | Dec. 31, 2012 | [1] | Mar. 31, 2012 | Jun. 30, 2009 | ||
Subsequent Event | |||||||||||||||
Shares acquired for treasury | $ 1,605 | $ 661 | $ 850 | ||||||||||||
Vantiv Holding, LLC | |||||||||||||||
Subsequent Event | |||||||||||||||
Equity Method Investment, Ownership Percentage | 8.60% | 18.30% | [1] | 18.30% | 8.60% | 22.80% | 25.10% | 27.70% | 33.10% | 39.00% | 49.00% | ||||
Subsequent Event | Vantiv Holding, LLC | |||||||||||||||
Subsequent Event | |||||||||||||||
Equity Method Investment, Ownership Percentage | 8.60% | ||||||||||||||
February 8, 2018 ASR | |||||||||||||||
Subsequent Event | |||||||||||||||
Subsequent Event Date | Feb. 8, 2018 | ||||||||||||||
Redemption date | Feb. 12, 2018 | ||||||||||||||
Settlement date | May 4, 2018 | ||||||||||||||
February 8, 2018 ASR | March 2016 Repurchase Program | |||||||||||||||
Subsequent Event | |||||||||||||||
Shares acquired for treasury | $ 318 | ||||||||||||||
Vantiv, Inc. acquires Worldpay Group plc. | |||||||||||||||
Subsequent Event | |||||||||||||||
Subsequent Event Date | Jan. 16, 2018 | ||||||||||||||
Estimated gain in noninterest income in Q1 2018 from Worldpay Transaction | $ 415 | ||||||||||||||
January 16, 2018 Subsequent Event | Vantiv Holding, LLC | |||||||||||||||
Subsequent Event | |||||||||||||||
Equity Method Investment, Ownership Percentage | 4.90% | ||||||||||||||
[1] | (a) The Bancorp’s remaining investment in Vantiv Holding, LLC of $ 219 as of December 31, 201 7 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. |