Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FITB | |
Entity Registrant Name | FIFTH THIRD BANCORP | |
Entity Central Index Key | 35,527 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 668,092,149 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |||
Assets | |||||
Cash and due from banks | $ 2,052 | $ 2,514 | |||
Other short-term investments | [1] | 1,636 | 2,753 | ||
Available-for-sale debt and other securities | [2] | 31,961 | 31,751 | ||
Held-to-matury securities | [3] | 19 | 24 | ||
Trading debt securities | 280 | 492 | |||
Equity securities | 475 | 439 | |||
Loans and leases held for sale | [4] | 783 | 492 | ||
Portfolio loans and leases | [1],[5] | 91,932 | 91,970 | ||
ALLL | [1] | (1,077) | [6] | (1,196) | [7] |
Portfolio loans and leases, net | 90,855 | 90,774 | |||
Bank premises and equipment | [8] | 1,915 | 2,003 | ||
Operating lease equipment | 606 | 646 | |||
Goodwill | 2,462 | 2,445 | |||
Intangible assets | 30 | 27 | |||
Servicing rights | 959 | 858 | |||
Other assets | [1] | 6,662 | 6,975 | ||
Total Assets | 140,695 | 142,193 | |||
Deposits | |||||
Noninterest-bearing deposits | 32,680 | 35,276 | |||
Interest-bearing deposits | 71,451 | 67,886 | |||
Total deposits | 104,131 | 103,162 | |||
Federal funds purchased | 597 | 174 | |||
Other short-term borrowings | 1,763 | 4,012 | |||
Accrued taxes, interest and expenses | 1,206 | 1,412 | |||
Other liabilities | [1] | 2,425 | 2,144 | ||
Long-term debt | [1] | 14,321 | 14,904 | ||
Total liabilities | 124,443 | 125,808 | |||
Equity | |||||
Common stock | [9] | 2,051 | 2,051 | ||
Preferred stock | [10] | 1,331 | 1,331 | ||
Capital surplus | 2,833 | 2,790 | |||
Retained earnings | 16,143 | 15,122 | |||
Accumulated other comprehensive income | (552) | 73 | |||
Treasury stock | [9] | (5,574) | (5,002) | ||
Total Bancorp Shareholders' Equity | 16,232 | 16,365 | |||
Noncontrolling interests | 20 | 20 | |||
Total Equity | 16,252 | 16,385 | |||
Total Liabilities and Equity | $ 140,695 | $ 142,193 | |||
[1] | Includes $ 47 and $ 62 of other short-term investments , $ 908 and $ 1,297 of portfolio loans and leases, $ (5) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 2 and $ 2 of other liabilities, and $ 830 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respe ctive captions above at June 30, 2018 and December 31, 2017 , respectively. For further information refer to Note 9 . | ||||
[2] | Amortized cost of $ 32,589 and $ 31,577 at June 30, 2018 and December 31, 2017 , respectively. | ||||
[3] | Fair value of $ 19 and $ 24 at June 30, 2018 and December 31, 2017 , respectively. | ||||
[4] | Includes $ 658 and $ 399 of residential mortgage loans held for sale measured at fair value and $ 8 and $ 0 of commercial loans held for sale measured at fair value at June 30, 2018 and December 31, 2017 , respectively. | ||||
[5] | Includes $ 162 and $ 137 of residential mortgage loans measured at fair value at June 30, 2018 and December 31, 2017 , respectively. | ||||
[6] | Includes $ 1 related to leveraged leases at June 30, 2018 . | ||||
[7] | Includes $ 1 related to leveraged leases at December 31, 2017 . | ||||
[8] | Includes $ 37 and $ 27 of bank premises and equipment held for sale at June 30, 2018 and December 31, 2017 , respectively. For further information refer to Note 7 . | ||||
[9] | Common shares: Stated value $2.22 per share; authorized 2,000,000,000 ; outstanding at June 30, 2018 – 678,161,855 (excludes 245,730,726 treasury shares), Decemb er 31, 2017 – 693,804,893 (excludes 230,087,688 treasury shares). | ||||
[10] | 446,000 shares of undesignated no par value preferred stock are authorized and unissued at June 30, 2018 and December 31, 2017 ; fixed-to-floating rate non-cumulative Series H perpetual preferred stock with a $25,000 li quidation preference: 24,000 authorized shares, issued and outstanding at June 30, 2018 and December 31, 2017 ; fixed-to-floating rate non-cumulative Series I perpetual preferred stock with a $25,000 liquidation preference; 18,000 authorized shares, issue d and outstanding at June 30, 2018 and December 31, 2017 ; and fixed-to-floating rate non-cumulative Series J perpetual preferred stock with a $25,000 liquidation preference: 12,000 authorized shares, issued and outstanding at June 30, 2018 and December 31 , 2017 . |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |||
Other short-term investments | [1] | $ 1,636 | $ 2,753 | ||
Portfolio loans and leases | [1],[2] | 91,932 | 91,970 | ||
ALLL | [1] | (1,077) | [3] | (1,196) | [4] |
Other assets | [1] | 6,662 | 6,975 | ||
Other liabilities | [1] | 2,425 | 2,144 | ||
Long-term debt | [1] | 14,321 | 14,904 | ||
Available-for-sale debt securities, amortized cost | 32,589 | 31,577 | |||
Held-to-maturity securities, fair value | 19 | 24 | |||
Bank premises and equipment held for sale | $ 37 | $ 27 | |||
Common stock, stated value | $ 2.22 | $ 2.22 | |||
Common stock, authorized | 2,000,000,000 | 2,000,000,000 | |||
Common stock, outstanding | 678,161,855 | 693,804,893 | |||
Common stock, treasury shares | 245,730,726 | 230,087,688 | |||
Residential Mortgage | |||||
Loans held for sale measured at FV | $ 658 | $ 399 | |||
Loans measured at FV | 162 | 137 | |||
Commercial | |||||
Portfolio loans and leases | 56,503 | 56,395 | |||
ALLL | (654) | [3] | (753) | [4] | |
Loans held for sale measured at FV | 8 | 0 | |||
Variable Interest Entities | |||||
Other short-term investments | 47 | 62 | |||
Portfolio loans and leases | 908 | 1,297 | |||
ALLL | (5) | (6) | |||
Other assets | 5 | 7 | |||
Other liabilities | 2 | 2 | |||
Long-term debt | $ 830 | $ 1,190 | |||
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 $ 47 and $ 62 of other short-term investments , $ 908 and $ 1,297 of portfolio loans and leases, $ (5) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 2 and $ 2 of other liabilities, and $ 830 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respe ctive captions above at June 30, 2018 and December 31, 2017 , respectively. For further information refer to Note 9 . | ||||
[2] | Includes $ 162 and $ 137 of residential mortgage loans measured at fair value at June 30, 2018 and December 31, 2017 , respectively. | ||||
[3] | Includes $ 1 related to leveraged leases at June 30, 2018 . | ||||
[4] | Includes $ 1 related to leveraged leases at December 31, 2017 . |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest Income | ||||
Interest and fees on loans and leases | $ 996 | $ 858 | $ 1,933 | $ 1,696 |
Interest on securities | 267 | 245 | 530 | 490 |
Interest on other short-term investments | 6 | 3 | 11 | 6 |
Total interest income | 1,269 | 1,106 | 2,474 | 2,192 |
Interest Expense | ||||
Interest on deposits | 119 | 65 | 215 | 124 |
Interest on federal funds purchased | 5 | 1 | 7 | 2 |
Interest on other short-term borrowings | 11 | 10 | 19 | 12 |
Interest on long-term debt | 114 | 91 | 217 | 182 |
Total interest expense | 249 | 167 | 458 | 320 |
Net Interest Income | 1,020 | 939 | 2,016 | 1,872 |
Provision for loan and lease losses | 33 | 52 | 56 | 126 |
Net Interest Income After Provision for Loan and Lease Losses | 987 | 887 | 1,960 | 1,746 |
Noninterest Income | ||||
Service charges on deposits | 137 | 139 | 275 | 277 |
Wealth and asset management revenue | 108 | 103 | 221 | 211 |
Corporate banking revenue | 120 | 101 | 208 | 175 |
Card and processing revenue | 84 | 79 | 163 | 153 |
Mortgage banking net revenue | 53 | 55 | 109 | 108 |
Other noninterest income | 250 | 85 | 708 | 160 |
Securities gains (losses), net | (5) | 0 | (15) | 1 |
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | (4) | 2 | (17) | 2 |
Total noninterest income | 743 | 564 | 1,652 | 1,087 |
Noninterest Expense | ||||
Salaries, wages and incentives | 471 | 397 | 918 | 808 |
Employee benefits | 78 | 86 | 188 | 196 |
Net occupancy expense | 74 | 70 | 149 | 148 |
Technology and communications | 67 | 57 | 135 | 116 |
Equipment expense | 30 | 29 | 61 | 57 |
Card and processing expense | 30 | 33 | 60 | 63 |
Other noninterest expense | 287 | 285 | 572 | 555 |
Total noninterest expense | 1,037 | 957 | 2,083 | 1,943 |
Income (Loss) Before Income Taxes | 693 | 494 | 1,529 | 890 |
Applicable income tax expense | 107 | 127 | 239 | 218 |
Net Income (loss) | 586 | 367 | 1,290 | 672 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Bancorp | 586 | 367 | 1,290 | 672 |
Dividends on preferred stock | 23 | 23 | 38 | 38 |
Net income (loss) available to common shareholders | $ 563 | $ 344 | $ 1,252 | $ 634 |
Earnings per share - basic | $ 0.81 | $ 0.46 | $ 1.8 | $ 0.84 |
Earnings per share - diluted | $ 0.8 | $ 0.45 | $ 1.77 | $ 0.83 |
Average common shares outstanding- basic | 683,344,844 | 741,400,700 | 686,564,682 | 744,516,799 |
Average common shares oustanding - diluted | 696,209,943 | 752,328,298 | 700,133,642 | 756,545,341 |
Common stock dividends declared per share | $ 0.18 | $ 0.14 | $ 0.34 | $ 0.28 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Unaudited - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income | ||||
Net income (loss) | $ 586 | $ 367 | $ 1,290 | $ 672 |
Other Comprehensive Income (Loss), Net of Tax | ||||
Unrealized holding gains (losses) on available-for-sale securities arising during period | (167) | 93 | (627) | 108 |
Reclassification adjustment for net (gains) losses included in net income | 0 | 0 | 7 | 1 |
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period | 3 | 5 | (4) | 2 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 0 | (4) | (1) | (9) |
Reclassification of amounts to net periodic benefit costs | 1 | 1 | 2 | 2 |
Other comprehensive income (loss), Net of Tax | (163) | 95 | (623) | 104 |
Comprehensive income | 423 | 462 | 667 | 776 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Bancorp | $ 423 | $ 462 | $ 667 | $ 776 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Unaudited - USD ($) $ in Millions | Total | Common Stock | Preferred Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income(Loss) | Treasury Stock | Total Bancorp Shareholders' Equity | Non- Controlling Interest | |
Beginning Balance at Dec. 31, 2016 | $ 16,232 | $ 2,051 | $ 1,331 | $ 2,756 | $ 13,441 | $ 59 | $ (3,433) | $ 16,205 | $ 27 | |
Net income (loss) | 672 | 672 | 672 | |||||||
Other comprehensive income (loss), Net of Tax | 104 | 104 | 104 | |||||||
Cash dividends declared: | ||||||||||
Common stock at $0.34 in 2018 and $0.28 in 2017 per share | (210) | (210) | (210) | |||||||
Preferred stock | [1] | (38) | (38) | (38) | ||||||
Shares acquired for treasury | (342) | (26) | (316) | (342) | ||||||
Impact of stock transactions under stock compensation plans, net | 29 | 21 | 8 | 29 | ||||||
Other | (1) | (3) | 2 | (1) | ||||||
Ending Balance at Jun. 30, 2017 | 16,446 | 2,051 | 1,331 | 2,751 | 13,862 | 163 | (3,739) | 16,419 | 27 | |
Beginning Balance at Dec. 31, 2017 | 16,385 | 2,051 | 1,331 | 2,790 | 15,122 | 73 | (5,002) | 16,365 | 20 | |
Net income (loss) | 1,290 | |||||||||
Other comprehensive income (loss), Net of Tax | (623) | |||||||||
Cash dividends declared: | ||||||||||
Other | 0 | (2) | 2 | 0 | ||||||
Ending Balance at Jun. 30, 2018 | 16,252 | 2,051 | 1,331 | 2,833 | 16,143 | (552) | (5,574) | 16,232 | 20 | |
Impact of cumulative effect of change in accounting principles | [2] | 4 | 6 | (2) | 4 | |||||
Beginning Balance at Jan. 01, 2018 | 16,389 | 2,051 | 1,331 | 2,790 | 15,128 | 71 | (5,002) | 16,369 | 20 | |
Net income (loss) | 1,290 | 1,290 | 1,290 | |||||||
Other comprehensive income (loss), Net of Tax | (623) | (623) | (623) | |||||||
Cash dividends declared: | ||||||||||
Common stock at $0.34 in 2018 and $0.28 in 2017 per share | (235) | (235) | (235) | |||||||
Preferred stock | [1] | (38) | (38) | (38) | ||||||
Shares acquired for treasury | (553) | 41 | (594) | (553) | ||||||
Impact of stock transactions under stock compensation plans, net | 22 | 2 | 20 | 22 | ||||||
Ending Balance at Jun. 30, 2018 | $ 16,252 | $ 2,051 | $ 1,331 | $ 2,833 | $ 16,143 | $ (552) | $ (5,574) | $ 16,232 | $ 20 | |
[1] | For both the six months ended June 30, 2018 and 2017 , dividends were $ 6 37.50 per preferred shares for Perpetual Preferred Stock, Series H, $ 828.12 per preferred share for Perpetual Preferred Stock, Series I and $ 612.50 per preferred share for Perpetual Preferred Stock, Series J. | |||||||||
[2] | Related to the adopt ion as of January 1, 2018 of ASU 2016-01, ASU 2017-12 and ASU 2018-02 . Refer to Note 3 for additional information. |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Unaudited (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Common stock, per share | $ 0.34 | $ 0.28 |
Preferred stock Series H | ||
Preferred stock, per share | 637.5 | 637.5 |
Preferred stock Series I | ||
Preferred stock, per share | 828.12 | 828.12 |
Preferred stock Series J | ||
Preferred stock, per share | $ 612.5 | $ 612.5 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | |||
Operating Activities | ||||
Net income | $ 1,290 | $ 672 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Provision for (benefit from) loan and lease losses | 56 | 126 | ||
Depreciation, amortization and accretion | 226 | 170 | ||
Stock-based compensation expense | 80 | 69 | ||
Provision for (benefit from) deferred income taxes | 5 | (5) | ||
Securities gains (losses), net | 17 | (1) | ||
Securities gains (losses), net - non-qualifying hedges on mortgage servicing rights | 17 | (2) | ||
MSR Fair Value Adjustment | [1] | (16) | 70 | |
Net gains on sales of loans and fair value adjustments on loans held for sale | (36) | (57) | ||
Net losses (gains) on disposition and impairment of bank premises and equipment | (41) | (2) | ||
Net losses on disposition and impairment of operating lease equipment | (2) | (19) | ||
Gain on Vantiv and Worldpay transaction | (414) | 0 | ||
Gain on sale of Worldpay, Inc. shares | (205) | 0 | ||
Proceeds from sales of loans held for sale | 2,557 | 3,141 | ||
Loans originated for sale, net of repayments | (2,821) | (3,078) | ||
Dividends representing return on equity method investments | 6 | 18 | ||
Net change in: | ||||
Trading securities | 151 | (427) | ||
Other assets | 316 | (44) | ||
Accrued taxes, interest and expenses | (30) | (245) | ||
Other liabilities | 51 | 214 | ||
Net Cash Provided by (Used in) Operating Activities | 1,293 | 642 | ||
Proceeds from sales: | ||||
Available-for-sale securities | 10,283 | 4,633 | ||
Loans | 113 | 92 | ||
Bank premises and equipment | 28 | 18 | ||
Proceeds from repayments / maturities: | ||||
Available-for-sale securities | 997 | 1,178 | ||
Held-to-maturity securities | 5 | 0 | ||
Purchases: | ||||
Available-for-sale securities | (12,194) | (5,828) | ||
Bank premises and equipment | (98) | (111) | ||
MSRs | (50) | (109) | ||
Proceeds from sale and dividends representing return of equity method investments | 563 | 85 | ||
Proceeds from settlement of BOLI | 7 | 6 | ||
Net cash paid on acquisitions | (20) | (12) | ||
Net change in: | ||||
Other short-term investments | 1,117 | 591 | ||
Loans and leases | (264) | 350 | ||
Operating lease equipment | (3) | (43) | ||
Net Cash Provided by (Used in) Investing Activities | 484 | 850 | ||
Net change in: | ||||
Deposits | 969 | (1,941) | ||
Federal funds purchased | 423 | (15) | ||
Other short-term borrowings | (2,249) | 1,854 | ||
Dividends paid on common stock | (223) | (235) | ||
Dividends paid on preferred stock | (38) | (38) | ||
Proceeds from issuance of long-term debt | 895 | 697 | ||
Repayment of long-term debt | (1,397) | (1,631) | ||
Repurchase of treasury stock and related forward contract | 553 | 342 | ||
Other | (66) | (30) | ||
Net Cash Provided by (Used in) Financing Activities | (2,239) | (1,681) | ||
Increase (Decrease) in Cash and Due from Banks | (462) | (189) | ||
Cash and Due from Banks at Beginning of Period | 2,514 | 2,392 | [2] | |
Cash and Due from Banks at End of Period | $ 2,052 | $ 2,203 | ||
[1] | (a) Included in mortgage banking net revenue in the Condensed Consolidated Statements of Income. | |||
[2] | Includes $ 47 and $ 62 of other short-term investments , $ 908 and $ 1,297 of portfolio loans and leases, $ (5) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 2 and $ 2 of other liabilities, and $ 830 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respe ctive captions above at June 30, 2018 and December 31, 2017 , respectively. For further information refer to Note 9 . |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Basis of Presentation | |
Basis of Presentation | 1 . Basis of Presentation The Condensed Consolidated Financial Statements include the accounts of the Bancorp and its majority-owned subsidiaries and VIEs in which the Bancorp has been determined to be the primary beneficiary. Other entities, including certain joint ventures, in 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 equity method and not consolidated. Those entities in which the Bancorp does not have the ability to exercise significant influence are generally accounted for utilizing the measurement alternative to fair value which permits carrying the investment at its cost basis, as adjusted for impairments and observable price changes . Intercompany transactions and balances have been eliminated. In the opinion of mana gement, the unaudited Condensed Consolidated Financial Statements include all adjustments, which consist of normal recurring accruals, necessary to present fairly the results for the periods presented. In accordance with U.S. GAAP and the rules and regulat ions of the SEC for interim financial information, these statements do not include certain information and footnote disclosures required for complete annual financial statements and it is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the Bancorp’s Annual Report on Form 10-K. The results of operations and comprehensive income for the three and six months ended June 30, 2018 and 2017 and the cash flows and changes in equity for the six months ende d June 30, 2018 and 2017 are not necessarily indicative of the results to be expected for the full year. Financial information as of December 31, 2017 has been derived from the Bancorp’s Annual Report on Form 10-K. The preparation of financial state ments 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. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow | |
Supplemental Cash Flow Information | 2 . Supplemental Cash Flow Information Cash payments related to interest and income taxes in addition to non-cash investing and financing activities are presented in the following table for the six months ended June 30: ($ in millions) 2018 2017 Cash Payments: Interest $ 451 334 Income taxes 120 399 Transfers: Portfolio loans to loans held for sale 171 140 Loans held for sale to portfolio loans 67 7 Portfolio loans to OREO 20 19 |
Accounting and Reporting Develo
Accounting and Reporting Developments | 6 Months Ended |
Jun. 30, 2018 | |
Accounting and Reporting Developments | |
Accounting and Reporting Developments | 3 . Accounting and Reporting Developments Standards Adopted in 2018 The Bancorp adopted the following new accounting standards effective January 1, 2018: ASU 2014-09 – Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued ASU 2014-09 which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most contract revenue recognition guidance, including industry-specific guidance. The core principle of the amended guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or service s. Subsequent to the issuance of ASU 2014-09, the FASB issued additional guidance to clarify certain implementation issues, including ASUs 2016-08 (Principal versus Agent Considerations), 2016-10 (Identifying Performance Obligations and Licensing), 2016-12 (Narrow-Scope Improvements and Practical Expedients), and 2016-20 (Technical Corrections and Improvements) in March, April, May and December 2016, respectively. These amendments did not change the core principles in ASU 2014-09 and follow the same effecti ve date and transition requirements. The Bancorp adopted the amended guidance on January 1, 2018, using a modified retrospective approach. Because the amended guidance does not apply to revenue associated with financial instruments, including loans and sec urities that are accounted for under other U.S. GAAP, the adoption of this amended guidance did not have a material impact on the Bancorp’s Condensed Consolidated Financial Statements. However, the Bancorp is subject to expanded disclosure requirements and has updated its revenue recognition policies and procedures. While the Bancorp has concluded the following changes are not material to its Condensed Consolidated Financial Statements, upon adoption the Bancorp changed its presentation of certain underwrit ing expenses incurred by its broker-dealer subsidiary from net to gross presentation and also changed its presentation of certain credit card rewards program expenses from gross to net presentation. Neither change impacts income before income taxes or net income. In conjunction with adoption of ASU 2014-09, the Bancorp is providing the following additional disclosures about its significant accounting and reporting policies related to revenue recognition. Revenue Recognition The Bancorp generally measures revenue based on the amount of consideration the Bancorp expects to be entitled for the transfer of goods or services to a customer, then recognizes this revenue when or as the Bancorp satisfies its performance obligations under the contract, except in tr ansactions where U.S. GAAP provides other applicable guidance. When the amount of consideration is variable, the Bancorp will only recognize revenue to the extent that it is probable that the cumulative amount recognized will not be subject to a significan t reversal in the future. Substantially all of the Bancorp’s contracts with customers have expected durations of one year or less and payments are typically due when or as the services are rendered or shortly thereafter. When third parties are involved in providing goods or services to customers, the Bancorp recognizes revenue on a gross basis when it has control over those goods or services prior to transfer to the customer; otherwise, revenue is recognized for the net amount of any fee or commission. The Bancorp excludes sales taxes from the recognition of revenue and recognizes the incremental costs of obtaining contracts as an expense if the period of amortization for those costs would be one year or less. The Bancorp’s interest income is derived from l oans and leases, securities and other short-term investments. The Bancorp recognizes interest income in accordance with the applicable guidance in U.S. GAAP for these assets. Refer to the Portfolio Loans and Leases and Securities sections in Note 1 of the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2017 for further information. The following provides additional information about the components of noninterest income: Service charges on deposits consist primarily of treasury managemen t fees for commercial clients, monthly service charges on consumer deposit accounts, transaction-based fees (such as overdraft fees and wire transfer fees), and other deposit account-related charges. The Bancorp’s performance obligations for treasury manag ement fees and consumer deposit account service charges are typically satisfied over time while performance obligations for transaction-based fees are typically satisfied at a point in time. Revenues are recognized on an accrual basis when or as the servic es are provided to the customer, net of applicable discounts, waivers and reversals. Payments are typically collected from customers directly from the related deposit account at the time the transaction is processed and/or at the end of the customer’s stat ement cycle (typically monthly). Wealth and asset management revenue consists primarily of service fees for investment management, custody, and trust administration services provided to commercial and consumer clients. The Bancorp’s performance obligations for these services are generally satisfied over time and revenues are recognized monthly based on the fee structure outlined in individual contracts. Transaction prices are most commonly based on the market value of assets under management or care and/or a fee per transaction processed. The Bancorp offers certain services, like tax return preparation, for which the performance obligations are satisfied and revenue is recognized at a point in time, when the services are performed. Wealth and asset managemen t revenue also includes trailing commissions received from investments and annuities held in customer accounts, which are recognized in revenue when the Bancorp determines it is probable that the commission will be received. Corporate banking revenue consi sts primarily of service fees and other income related to loans and leases to commercial clients, underwriting revenue recognized by the Bancorp’s broker-dealer subsidiary and fees for other services provided to commercial clients. Revenue related to loans and leases is recognized in accordance with the Bancorp’s policies for portfolio loans and leases. Underwriting revenue is generally recognized on the trade date, which is when the Bancorp’s performance obligations are satisfied. Card and processing reve nue consists primarily of ATM fees and interchange fees earned when the Bancorp’s credit and debit cards are processed through card association networks. The Bancorp’s performance obligations are generally complete when the transactions generating the fees are processed. Revenue is recognized on an accrual basis as such services are performed, net of certain costs not controlled by the Bancorp (primarily interchange fees charged by credit card associations and expenses of certain transaction-based rewards p rograms offered to customers). These costs reduced card and processing revenue by approximately $ 31 million and $ 60 million for the three and six months ended June 30, 2018, respectively. Mortgage banking net revenue consists primarily of origination fees and gains on loan sales, mortgage servicing fees and the impact of MSRs. Refer to the Loans and Leases Held for Sale and Loan Sales and Securitizations sections in Note 1 of the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2017 for further information. Other noninterest income includes income from operating leases, certain fees derived from loans and leases, BOLI income, gains and losses on other assets, and other miscellaneous revenues and gains. ASU 2016-01 – Financial Instrument s—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01 which revises an entity’s accounting related to 1) the classification and measurement of investments in equity securities, 2) the presentation of certain fair value changes for financial liabilities measured at fair value, and 3) certain disclosure requirements associated with the fair value of financial instruments. The amendments require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus c hanges as a result of an observable price change. The amendments also simplify the impairment assessment of equity investments for which fair value is not readily determinable by requiring an entity to perform a qualitative assessment to identify impairmen t. If qualitative indicators are identified, the entity will be required to measure the investment at fair value. For financial liabilities that an entity has elected to measure at fair value, the amendments require an entity to present separately in OCI t he portion of the change in fair value that results from a change in instrument-specific credit risk. For public business entities, the amendments 1) eliminate the requirement to disclose the method(s) and significant assumptions used to estimate fair valu e for financial instruments measured at amortized cost and 2) require, for disclosure purposes, the use of an exit price notion in the determination of the fair value of financial instruments. In February 2018, the FASB also issued ASU 2018-03 which makes technical corrections and improvements to the amendments in ASU 2016-01. The Bancorp adopted the amended guidance on January 1, 2018. As permitted, the Bancorp elected to early adopt ASU 2018-03 on January 1, 2018, concurrent with the adoption of ASU 2016- 01. The adoption did not have a material impact on the Condensed Consolidated Financial Statements. However, equity securities affected by the amended guidance which were previously classified as trading or available-for-sale have been reclassified in the Condensed Consolidated Balance Sheets as equity securities. For certain equity securities without a readily determinable fair value that are not accounted for using the equity method, the Bancorp has elected to use the permitted measurement alternative, wh ich is to adjust the cost basis of the investment upon either the occurrence of an observable price change or the identification of an impairment. For these securities, the amended guidance was applied prospectively to investments that existed on or after January 1, 2018. The other portions of the amended guidance were applied on a modified retrospective basis. ASU 2016-04 – Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products In M arch 2016, the FASB issued ASU 2016-04 which permits proportional derecognition of the liability for unused funds on certain prepaid stored-value products (known as breakage) to the extent that it is probable that a significant reversal of the recognized b reakage amount will not subsequently occur. The amendments do not apply to any prepaid stored-value products that are attached to a segregated customer deposit account or products for which unused funds are subject to unclaimed property remittance laws. Th e Bancorp adopted the amended guidance on January 1, 2018 using a modified retrospective approach. The adoption did not have a material impact on the Condensed Consolidated Financial Statements. ASU 2016-15 – Statement of Cash Flows (Topic 230): Classific ation of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15 to clarify the classification of certain cash receipts and payments within an entity’s statement of cash flows. These items include debt prepayment or extinguishme nt costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of BOLI policies, distributions received from equity m ethod investees, and beneficial interests in securitization transactions. The amended guidance also specifies how to address classification of cash receipts and payments that have aspects of more than one class of cash flows. The Bancorp adopted the amende d guidance retrospectively on January 1, 2018. The adoption did not have a material impact on the Condensed Consolidated Financial Statements. ASU 2016-16 – Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In October 2016, t he FASB issued ASU 2016-16 which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Current U.S. GAAP prohibits the recognition of current and deferred income t axes for an intra-entity asset transfer until the asset has been sold to an outside party. The Bancorp adopted the amended guidance on January 1, 2018 using a modified retrospective approach. The adoption did not have a material impact on the Condensed Con solidated Financial Statements. ASU 2017-01 – Business Combinations (Topic 805): Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01 which clarifies the definition of a business in order to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amended guidance provides a screen which states that when substantially all of the fair value of assets acquired (or disposed) is concentrated in a sin gle asset or group of similar assets, then the set of assets and activities would not be considered a business. The Bancorp adopted the amended guidance prospectively on January 1, 2018 and will apply this amended guidance to future transactions to determi ne if they should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-05 – Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance an d Accounting for Partial Sales of Nonfinancial Assets In February 2017, the FASB issued ASU 2017-05 which clarifies the scope of Subtopic 610-20 and defines the term “in substance nonfinancial asset.” The amendments require that an entity should initially identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counterparty and derecognize each asset when a counterparty obtains control of it. The amendments provide specific guidance on accounting for partial sales of nonfin ancial assets, which require an entity to derecognize a distinct nonfinancial asset or in substance nonfinancial asset in a partial sale transaction when it 1) does not have (or ceases to have) a controlling financial interest in the legal entity that hold s the asset and 2) transfers control of the asset. Once an entity transfers control of a distinct nonfinancial asset or distinct in substance nonfinancial asset, it is required to measure any noncontrolling interest it receives (or retains) at fair value. The Bancorp adopted the amended guidance on January 1, 2018 using a modified retrospective approach. The adoption did not have a material impact on the Condensed Consolidated Financial Statements. ASU 2017-09 Compensation—Stock Compensation (Topic 718): S cope of Modification Accounting In May 2017, the FASB issued ASU 2017-09 which provides guidance about which changes to the terms or conditions of a share-based payment award require the application of modification accounting in Topic 718. The amendments s pecify that an entity should account for the effects of such changes as a modification unless the fair value, vesting conditions and classification (as an equity or liability) of the awards are all unaffected by the change. The Bancorp adopted the amended guidance prospectively on January 1, 2018. The adoption did not have a material impact on the Condensed Consolidated Financial Statements. ASU 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities In Augus t 2017, the FASB issued ASU 2017-12 which makes several amendments to existing guidance for hedge accounting. As permitted, the Bancorp elected to early adopt the amended guidance on January 1, 2018. For certain fair value hedges of interest rate risk, the Bancorp elected to modify the measurement methodology for the hedged item to be the benchmark rate component of the contractual coupon cash flows and also elected to de-designate a portion of the existing hedging relationship, as permitted. Upon adoption, changes in the fair value of cash flow hedges are recorded in AOCI and then subsequently reclassified into earnings when the hedged item affects earnings. Also, for both fair value hedges and cash flow hedges, changes in the fair value of the derivative i nstrument are recorded in the same income statement line item as the effects of the hedged item, eliminating the separate measurement of hedge ineffectiveness. The Bancorp recorded a cumulative-effect adjustment to retained earnings for the impact of these elections as well as the elimination of the separate measurement of ineffectiveness from AOCI for cash flow hedges existing at January 1, 2018, the amount of which was not material. The amended presentation and disclosure guidance was applied prospectivel y. ASU 2018-02 Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02 which allows for reclassification from AOCI to re tained earnings of stranded tax effects resulting from the TCJA. Stranded tax effects result from the reduction in the top federal statutory income tax rate from 35 percent to 21 percent as deferred tax assets and liabilities are adjusted for the impact of a change in tax rate through income tax expense, even in situations when the related items giving rise to the deferred taxes are components of AOCI, which are carried net of tax. As permitted, the Bancorp elected to early adopt this amended guidance and r ecorded a reclassification adjustment from AOCI to retained earnings as of January 1, 2018, the amount of which was not material. Standards Issued but Not Yet Adopted The following accounting standards were issued but not yet adopted by the Bancorp as of June 30, 2018: ASU 2016-02 – Leases (Topic 842) In February 2016, the FASB issued ASU 2016-02 which establishes a new accounting model for leases. The amended guidance requires lessees to record lease liabilities on the lessees’ balance sheets along with corresponding right-of-use assets for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the lessee’s statements of income. From a lessor perspective, the accounting model is largely unchanged, except that the amended guidance includes certain targeted improvements to align, where necessary, lessor accounting with the lessee accounting model and the revenue recognition guidance in ASC Topic 606. The amendments also modify disclosure requirements for an entity’s lease arrangements. The amended guidance is effective for the Bancorp on January 1, 2019, with early adoption permitted. The amendments should be applied to each prior reporting period presented using a modified retrospective approach, although the amended guidance contains certain transition relief provisions that, among other things, permit an entity to elect not to reassess the classification of leases which existed or expired as of the date the amendments are effective. In January 2018, the FASB issued ASU 2018-01 which provides a practical expedient for transition related to land easements. The FASB has also proposed additional amendments to the new guidance which, among othe r things, include an option to recognize a cumulative effect adjustment to retained earnings in the period of adoption instead of applying the guidance to prior comparative periods, but these additional amendments are not yet final. The Bancorp will adopt the amended guidance on the required effective date of January 1, 2019, and expects to elect the transition relief provisions. From a lessee perspective, the Bancorp is currently finalizing its inventory of all leases, accumulating the lease data necessary to apply the amended guidance, and evaluating the business process and technology requirements which will be necessary after adoption. The Bancorp is continuing to evaluate the impact of the amended guidance on its Condensed Consolidated Financial Stateme nts, but the effects of recognizing most operating leases on the Condensed Consolidated Balance Sheets are expected to be material. The Bancorp expects to recognize right-of-use assets and lease liabilities for substantially all of its operating lease comm itments based on the present value of unpaid lease payments as of the date of adoption, but does not expect a material impact to expense recognition. From a lessor perspective, given the limited changes, the Bancorp does not expect adoption of the amended guidance to have a material impact based on its preliminary analysis. However, the Bancorp is continuing to evaluate the impact of the amended guidance, particularly related to the deferral of costs incurred in originating leases. The Bancorp also expects to record a cumulative-effect adjustment to retained earnings upon adoption to recognize any remaining deferred gains on sale-leaseback transactions that occurred prior to the date of initial application. The Bancorp had approximately $ 13 million of such d eferred gains recorded as of June 30, 2018. These expectations may change as the implementation process continues. ASU 2016-13 – Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13 which establishes a new approach to estimate credit losses on certain types of financial instruments. The new approach changes the impairment model for most financial assets, and will require the use of an “expected credit loss” model f or financial instruments measured at amortized cost and certain other instruments. This model applies to trade and other receivables, loans, debt securities, net investments in leases, and off-balance-sheet credit exposures (such as loan commitments, stand by letters of credit, and financial guarantees not accounted for as insurance). This model requires entities to estimate the lifetime expected credit loss on such instruments and record an allowance that represents the portion of the amortized cost basis t hat the entity does not expect to collect. This allowance is deducted from the financial asset’s amortized cost basis to present the net amount expected to be collected. The new expected credit loss model will also apply to purchased financial assets with credit deterioration, superseding current accounting guidance for such assets. The amended guidance also amends the impairment model for available-for-sale debt securities, requiring entities to determine whether all or a portion of the unrealized loss on such securities is a credit loss, and also eliminating the option for management to consider the length of time a security has been in an unrealized loss position as a factor in concluding whether or not a credit loss exists. The amended model states that an entity will recognize an allowance for credit losses on available-for-sale debt securities as a contra account to the amortized cost basis, instead of a direct reduction of the amortized cost basis of the investment, as under current guidance. As a resu lt, entities will recognize improvements to estimated credit losses on available-for-sale debt securities immediately in earnings as opposed to in interest income over time. There are also additional disclosure requirements included in this guidance. The a mended guidance is effective for the Bancorp on January 1, 2020. Early adoption is permitted as soon as January 1, 2019, but the Bancorp currently expects to adopt on the mandatory effective date. The amended guidance is to be applied on a modified retrosp ective basis with the cumulative effect of initially applying the amendments recognized in retained earnings at the date of initial application. However, certain provisions of the guidance are only required to be applied on a prospective basis. While the B ancorp is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements, it currently expects the ALLL to increase upon adoption given that the allowance will be required to cover the full rema ining expected life of the portfolio upon adoption, rather than the incurred loss model under current U.S. GAAP. The extent of this increase is still being evaluated and will depend on economic conditions and the composition of the Bancorp’s loan and lease portfolio at the time of adoption. ASU 2017-04 – Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04 which simplifies the test for goodwill impairment by removing the seco nd step, which measures the amount of impairment loss, if any. Instead, the amended guidance states that an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, except that the lo ss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This would apply to all reporting units, including those with zero or negative carrying amounts of net assets. The amended guidance is effective for the Bancorp on January 1, 2020, with early adoption permitted, and is to be applied prospectively to all goodwill impairment tests performed after the adoption date. ASU 2017-08 Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASU 2017-08 which shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest c all date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amended guidance is effective for the Bancorp on January 1, 2019, with early adoption permitted, and is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Bancorp shall provide a disclosure regarding the change in accounting principle. The Ban corp plans to adopt the amended guidance on its required effective date of January 1, 2019 and is currently in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements. However, the Bancorp does not cu rrently expect the impact of adoption to be material. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2018 | |
Securities | |
Securities | 4 . Investment Securities The following tables provide the amortized cost, unrealized gains and losses and fair value for the major categories of the available-for-sale debt and other securities and held-to-maturity investment securities portfolios as of: Amortized Unrealized Unrealized Fair June 30, 2018 ($ in millions) Cost Gains Losses Value Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 98 - (2) 96 Obligations of states and political subdivisions securities 34 1 - 35 Mortgage-backed securities: Agency residential mortgage-backed securities 16,405 35 (346) 16,094 Agency commercial mortgage-backed securities 10,308 7 (277) 10,038 Non-agency commercial mortgage-backed securities 3,149 5 (68) 3,086 Asset-backed securities and other debt securities 1,981 26 (9) 1,998 Other securities (a) 614 - - 614 Total available-for-sale debt and other securities $ 32,589 74 (702) 31,961 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 17 - - 17 Asset-backed securities and other debt securities 2 - - 2 Total held-to-maturity securities $ 19 - - 19 Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 364 and $ 2 , respectively, at June 30, 2018 , that are carried at cost. Amortized Unrealized Unrealized Fair December 31, 2017 ($ in millions) Cost Gains Losses Value Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 98 - - 98 Obligations of states and political subdivisions securities 43 1 - 44 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 15,281 118 (80) 15,319 Agency commercial mortgage-backed securities 10,113 92 (38) 10,167 Non-agency commercial mortgage-backed securities 3,247 51 (5) 3,293 Asset-backed securities and other debt securities 2,183 46 (11) 2,218 Other securities (b) 612 - - 612 Total available-for-sale debt and other securities $ 31,577 308 (134) 31,751 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 22 - - 22 Asset-backed securities and other debt securities 2 - - 2 Total held-to-maturity securities $ 24 - - 24 Includes interest-only mortgage-backed securities of $ 34 as of December 31, 2017 , recorded at fair value with fair value changes recorded in securities gains, net, in the Consolidated Statements of Income. Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 362 and $ 2 , respectively, at December 31, 2017 , that are carried at cost. The following table provides the fair value of trading debt securities and equity securities as of: June 30, December 31, ($ in millions) 2018 2017 Trading debt securities $ 280 492 Equity securities 475 439 The following table presents net realized gains and losses that were recognized in income from available-for-sale debt and other securities as well as total (losses) gains that were recognized in income from trading debt securities and equity securities: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2018 2017 2018 2017 Available-for-sale debt and other securities: Realized gains $ 22 21 56 30 Realized losses (22) (7) (65) (8) OTTI (a) - (14) - (24) Net realized losses on available-for sale debt and other securities (b) $ - - (9) (2) Total trading debt securities (losses) gains (c) $ (4) 2 (18) 3 Total equity securities (losses) gains (d)(e) $ (5) 2 (8) 3 Total (losses) and gains recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities $ (9) 4 (35) 4 Included in securities (losses) gains, net in the Condensed Consolidated Statements of Income. Excludes net gains on interest-only mortgage-backed securities of $ 0 and $ 1 for the three and six months ended June 30, 2018 , respectively, and net losses of $ 2 and $ 1 for the three and six months ended June 30, 2017 , respectively. Includes an immaterial net loss and a net loss of $ 2 for the three and six months ended June 30, 2018 , respectively, and immaterial net gains for both the three and six months ended June 30, 2017 , respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. Includes immaterial net gains for both the three and six months en ded June 30, 2018 and 2017 recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. Includes net unrealized losses of $ 5 and $ 6 for the three and six months ended June 30, 2018 , respectively, and net unrealized gains of $ 2 and $ 3 for the three and six months ended June 30, 2017 , respectively. A t June 30, 2018 and December 31, 2017 , investment securities with a fair value of $ 6.8 billion and $ 7.8 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 debt and other securities and held-to-maturity investment securities as of June 30, 2018 are shown in the following table: Available-for-Sale Debt and Other Held-to-Maturity ($ in millions) Amortized Cost Fair Value Amortized Cost Fair Value Debt securities: (a) Less than 1 year $ 214 207 1 1 1-5 years 8,923 8,800 16 16 5-10 years 18,047 17,669 - - Over 10 years 4,791 4,671 2 2 Other securities 614 614 - - Total $ 32,589 31,961 19 19 (a) Actual maturities may differ from contractual maturities when a right to call or prepay obligations exists with or without call or prepayment penalties . The following table provides the fair value and gross unrealized losses on available-for-sale debt and other securities in an unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized ($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses June 30, 2018 U.S. Treasury and federal agencies $ 96 (2) - - 96 (2) Agency residential mortgage-backed securities 12,456 (313) 478 (33) 12,934 (346) Agency commercial mortgage-backed securities 8,719 (247) 547 (30) 9,266 (277) Non-agency commercial mortgage-backed securities 2,540 (59) 140 (9) 2,680 (68) Asset-backed securities and other debt securities 284 (2) 395 (7) 679 (9) Total $ 24,095 (623) 1,560 (79) 25,655 (702) December 31, 2017 U.S. Treasury and federal agencies $ 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) Total $ 11,101 (85) 1,536 (49) 12,637 (134) At both June 30, 2018 and December 31, 2017 , an immaterial amount of unrealized losses in the available-for-sale debt and other securities portfolio were represented by non-rated secur ities. |
Loans and Leases
Loans and Leases | 6 Months Ended |
Jun. 30, 2018 | |
Loans and Leases Receivable | |
Loans and Leases | 5 . Loans and Leases The Bancorp diversifies its loan and lease portfolio by offering a variety of loan and lease products with various payment terms and rate structures. Lending activities are generally concentrated within those states in which the Bancorp has banking centers and are primarily located in the Midwestern and Southeastern regions of the U.S. The Bancorp’s commerc ial loan and lease 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 inh erent in the portfolio. For further information on credit quality and the ALLL, refer to Note 6 . The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans classified based upon product or collateral as of: June 30, December 31, ($ in millions) 2018 2017 Loans and leases held for sale: Commercial and industrial loans $ 44 - Commercial mortgage loans 72 6 Commercial leases 9 - Residential mortgage loans 658 486 Total loans and leases held for sale $ 783 492 Portfolio loans and leases: Commercial and industrial loans $ 41,403 41,170 Commercial mortgage loans 6,625 6,604 Commercial construction loans 4,687 4,553 Commercial leases 3,788 4,068 Total commercial loans and leases $ 56,503 56,395 Residential mortgage loans $ 15,640 15,591 Home equity 6,599 7,014 Automobile loans 8,938 9,112 Credit card 2,270 2,299 Other consumer loans 1,982 1,559 Total consumer loans $ 35,429 35,575 Total portfolio loans and leases $ 91,932 91,970 Total portfolio loans and leases are recorded net of unearned income, which totaled $ 496 million as of June 30, 2018 and $ 523 million as of December 31, 2017 . Additionally, portfolio loans and leases are recorded net of unamortized premiums and discounts, deferred direct loan origination fees and costs and fair value adjustments (associated with acquired loans or loans designated as fair value upon origination) which totaled a net pre mium of $ 286 million and $ 282 million as of June 30, 2018 and De cember 31, 2017 , respectively. The Bancorp’s FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $ 13 .3 billion and $ 13.0 billion at June 30, 2018 and December 31, 2017 , respectively, pledged at the FHLB, and loans of $ 40 .4 billion and $ 39.8 billion at June 30, 2018 and December 31, 2017 , respectively, pledged at the FRB. The following table presents a summary of the total loans and leases owned by the Bancorp as of: 90 Days Past Due Carrying Value and Still Accruing June 30, December 31, June 30, December 31, ($ in millions) 2018 2017 2018 2017 Commercial and industrial loans $ 41,447 41,170 4 3 Commercial mortgage loans 6,697 6,610 - - Commercial construction loans 4,687 4,553 - - Commercial leases 3,797 4,068 - - Residential mortgage loans 16,298 16,077 44 57 Home equity 6,599 7,014 - - Automobile loans 8,938 9,112 10 10 Credit card 2,270 2,299 31 27 Other consumer loans 1,982 1,559 - - Total loans and leases $ 92,715 92,462 89 97 Less: Loans and leases held for sale 783 492 Total portfolio loans and leases $ 91,932 91,970 The following table presents a summary of net charge-offs: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2018 2017 2018 2017 Commercial and industrial loans $ 47 18 74 52 Commercial mortgage loans 2 5 2 11 Commercial construction loans - - - - Commercial leases - 1 - 2 Residential mortgage loans 2 2 4 7 Home equity 2 5 7 11 Automobile loans 8 6 19 18 Credit card 26 22 52 43 Other consumer loans 7 5 17 9 Total net charge-offs $ 94 64 175 153 |
Credit Quality and the Allowanc
Credit Quality and the Allowance for Loan and Lease Losses | 6 Months Ended |
Jun. 30, 2018 | |
Credit Quality and the Allowance for Loan and Leases Losses | |
Credit Quality and the Allowance for Loan and Lease Losses | 6 . Credit Quality and the Allowance for Loan and Lease Losses The Bancorp disaggregates ALLL balances and transactions in the ALLL by portfolio segment. Credit quality related disclosures for loans and leases are further disaggregated by class . Allowance for Loan and Lease Losses The following tables summarize transactions in the ALLL by portfolio segment: Residential For the three months ended June 30, 2018 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 713 89 222 114 1,138 Losses charged-off (a) (54) (4) (60) - (118) Recoveries of losses previously charged-off (a) 5 2 17 - 24 Provision for (benefit from) loan and lease losses (10) (1) 50 (6) 33 Balance, end of period $ 654 86 229 108 1,077 (a) For the three months ended June 30, 2018 , the Bancorp recorded $6 in both losses charged-off and recoveries of losses charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. Residential For the three months ended June 30, 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 826 96 204 112 1,238 Losses charged-off (41) (4) (50) - (95) Recoveries of losses previously charged-off 17 2 12 - 31 Provision for (benefit from) loan and lease losses 15 (1) 40 (2) 52 Balance, end of period $ 817 93 206 110 1,226 Residential For the six months ended June 30, 2018 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 753 89 234 120 1,196 Losses charged-off (a) (87) (7) (128) - (222) Recoveries of losses previously charged-off (a) 11 3 33 - 47 Provision for (benefit from) loan and lease losses (23) 1 90 (12) 56 Balance, end of period $ 654 86 229 108 1,077 (a) For the six months ended June 30, 2018 , the Bancorp recorded $10 in both losses charged-off and recoveries of losses charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. Residential For the six months ended June 30, 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 831 96 214 112 1,253 Losses charged-off (86) (10) (106) - (202) Recoveries of losses previously charged-off 21 3 25 - 49 Provision for (benefit from) loan and lease losses 51 4 73 (2) 126 Balance, end of period $ 817 93 206 110 1,226 The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: Residential As of June 30, 2018 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 75 65 38 - 178 Collectively evaluated for impairment 579 21 191 - 791 Unallocated - - - 108 108 Total ALLL $ 654 86 229 108 1,077 Portfolio loans and leases: (b) Individually evaluated for impairment $ 400 788 297 - 1,485 Collectively evaluated for impairment 56,103 14,690 19,492 - 90,285 Total portfolio loans and leases $ 56,503 15,478 19,789 - 91,770 Includes $ 1 related to leveraged leases at June 30, 2018 . Excludes $ 162 of residential mortgage loans measured at fair value and includes $ 65 0 of leveraged leases, net of unearned income at June 30, 2018 . Residential As of December 31, 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 94 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 $ 560 665 320 - 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 mortga ge loans measured at fair value and includes $ 674 of leveraged leases, net of unearned income at December 31, 2017 . CREDIT RISK PROFILE Commercial Portfolio Segment For purposes of analyzing historical loss rates used in the determination of the ALLL and monitoring the credit quality and risk characteristics of its commercial portfolio segment, the Bancorp disaggregates the segment into the following classes: commercial and industrial, commercial mortgage owner-occupied, commercial mortgage non owner- occupi ed, commercial 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 portfo lio 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 cr edit to borrowers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers that do not ha ve identified potential or well- defined weaknesses and for which there is a high likelihood of orderly repayment, are updated at leas t annually based 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 th at have potential 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. Substan dard 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 Ba ncorp assigns a doubtful 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 curre ntly existing facts, conditions and val ues, highly questionable and improbable. The possibility of loss is extremely high, b ut 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 class ification as an estimated 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 plan s. Loans and leases classified 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 fully charged-off , they are not included in the following tables. The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class: Special As of June 30, 2018 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 39,601 899 885 18 41,403 Commercial mortgage owner-occupied loans 3,217 40 134 - 3,391 Commercial mortgage nonowner-occupied loans 3,200 21 13 - 3,234 Commercial construction loans 4,652 35 - - 4,687 Commercial leases 3,649 54 85 - 3,788 Total commercial loans and leases $ 54,319 1,049 1,117 18 56,503 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 Residential Mortgage and Consumer Portfolio Segment s For purposes of monitoring the credit quality and risk characteristics of its consumer portfolio segment, the Bancorp disaggregates the segment into the following classes: home equity, automobile loans, credi t card and other consumer loans. The Bancorp’s residential mortgage portfolio segment is also a separate class. The Bancorp considers repayment performance as the best indicator of credit quality for residential mortgage and consumer loans, which includes both the delinquency status and per forming versus nonperforming status of the loans. The delinquency status of all residential mortgage and consumer loans is presented by class i n the age analysis section while the performing versus nonperforming status is presented in the following table . Refer to the nonaccrual loans and leases section of Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2017 for additional delinquency and nonperforming informati on. The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of: June 30, 2018 December 31, 2017 ($ in millions) Performing Nonperforming Performing Nonperforming Residential mortgage loans (a) $ 15,450 28 15,424 30 Home equity 6,528 71 6,940 74 Automobile loans 8,933 5 9,111 1 Credit card 2,243 27 2,273 26 Other consumer loans 1,981 1 1,559 - Total residential mortgage and consumer loans $ 35,135 132 35,307 131 (a) Excludes $ 162 and $ 137 of residential mortgage loans measured at fair value at June 30, 2018 and December 31, 2017 , resp ectively. Age Analysis of Past Due Loans and Leases The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases, by age and class: Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of June 30, 2018 ($ in millions) Leases (b)(c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 41,281 19 103 122 41,403 4 Commercial mortgage owner-occupied loans 3,384 1 6 7 3,391 - Commercial mortgage nonowner-occupied loans 3,228 3 3 6 3,234 - Commercial construction loans 4,687 - - - 4,687 - Commercial leases 3,784 - 4 4 3,788 - Residential mortgage loans (a) 15,382 24 72 96 15,478 44 Consumer loans: Home equity 6,482 66 51 117 6,599 - Automobile loans 8,840 84 14 98 8,938 10 Credit card 2,198 36 36 72 2,270 31 Other consumer loans 1,972 8 2 10 1,982 - Total portfolio loans and leases $ 91,238 241 291 532 91,770 89 Excludes $ 162 of residential mortgage loans measured at fair value at June 30, 2018 . 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 June 30, 2018 , $ 71 of these loans were 30-89 days past due and $ 237 were 90 days or more past due. The Bancorp recognized $ 1 and $ 3 of losses during the three and six months ended June 30, 2018 due to claim denials and curtailments associated with these insured or guaranteed loans. Includes accrual and nonaccrual loans and leases. Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 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 $ 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. As of December 31, 2017 , $ 95 of these loa ns were 30-89 days past due and $ 290 were 90 days or more p ast due. The Bancorp recognized $ 1 and $ 3 of losses during the three and six months ended June 30, 2017, respectively, due to c laim denials and cu rtailments associated with these insured or guaranteed loans. Includes accrual and nonaccrual loans and leases. Impaired Portfolio Loans and Leases Larger commercial loans and leases included within aggregate borrower relationship balances exceeding $ 1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp also performs an individual review on loans and leases that are restructured in a TDR . The Bancorp considers the current value of coll ateral, credit quality of any guarantees, the loan structure and other factors when evaluating whether an individual loan or lease is impaired. Other factors may include the geography and industry of the borrower, size and financial condition of the borrow er, cash fl ow and leverage of the borrower and the Bancorp’s evaluation of the borrower’s management. Smaller-balance homogenous loans or leases that are collectively evaluated for 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: Unpaid Principal Recorded As of June 30, 2018 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 248 204 63 Commercial mortgage owner-occupied loans 4 3 1 Commercial mortgage nonowner-occupied loans 2 1 - Commercial leases 29 29 11 Restructured residential mortgage loans 497 494 65 Restructured consumer loans: Home equity 158 157 22 Automobile loans 6 6 1 Credit card 48 45 15 Total impaired portfolio loans and leases with a related ALLL $ 992 939 178 With no related ALLL: Commercial loans: Commercial and industrial loans $ 147 124 - Commercial mortgage owner-occupied loans 15 12 - Commercial mortgage nonowner-occupied loans 28 27 - Restructured residential mortgage loans 314 294 - Restructured consumer loans: Home equity 90 87 - Automobile loans 3 2 - Total impaired portfolio loans with no related ALLL $ 597 546 - Total impaired portfolio loans and leases $ 1,589 1,485 (a) 178 Includes $ 104 , $ 773 and $ 251 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 173 , $ 15 an d $ 46 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at June 30, 2018 . Unpaid Principal Recorded As of December 31, 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 (a) 200 Includes $ 249 , $ 652 and $ 275 , respectively, of commercial, residential mortgage and consumer portfolio TDR s on accrual status and $ 150 , $ 13 and $ 45 , respectively , of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2017 . The following tables summarize the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class: For the three months ended For the six months ended June 30, 2018 June 30, 2018 Average Interest Average Interest Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 417 5 439 10 Commercial mortgage owner-occupied loans 16 - 20 - Commercial mortgage nonowner-occupied loans 29 - 32 - Commercial leases 18 - 14 - Restructured residential mortgage loans 799 8 732 14 Restructured consumer loans: Home equity 248 3 253 6 Automobile loans 8 - 9 - Credit card 46 1 47 2 Total average impaired portfolio loans and leases $ 1,581 17 1,546 32 Excludes five restructured loans 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 average recorded investment of $ 26 for both the three and six months ended June 30, 2017. An immaterial amount of interest income was recognized during the six months ended June 30, 2017. Refer to Note 9 for further discussion on the deconsolidation of the VIE associated with these loans in 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: June 30, December 31, ($ in millions) 2018 2017 Commercial loans and leases: Commercial and industrial loans $ 263 276 Commercial mortgage owner-occupied loans 10 19 Commercial mortgage nonowner-occupied loans 3 7 Commercial leases 29 4 Total nonaccrual portfolio commercial loans and leases 305 306 Residential mortgage loans 28 30 Consumer loans: Home equity 71 74 Automobile loans 5 1 Credit card 27 26 Other consumer loans 1 - Total nonaccrual portfolio consumer loans 104 101 Total nonaccrual portfolio loans and leases (a)(b) $ 437 437 OREO and other repossessed property 43 52 Total nonperforming portfolio assets (a)(b) $ 480 489 Excludes $ 23 a nd $ 6 of nonaccrual loans held for sale at June 30, 2018 and December 31, 2017 , respectively. Includes $ 4 and $ 3 of nonaccrual government insured commercial loans whose repayments are insured by the SBA a t June 30, 2018 and Dec ember 31, 2017 , respectively, of which $ 2 and $ 3 are restructured nonaccrual government insured commercial loans a t June 30, 2018 and December 31, 2017 , respectively . For the three months ended For the six months ended June 30, 2017 June 30, 2017 Average Interest Average Interest Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 635 1 668 2 Commercial mortgage owner-occupied loans (a) 38 - 42 - Commercial mortgage nonowner-occupied loans 66 - 73 1 Commercial leases 2 - 3 - Restructured residential mortgage loans 654 6 653 12 Restructured consumer loans: Home equity 287 3 293 6 Automobile loans 12 - 13 - Credit card 49 1 51 2 Total average impaired loans and leases $ 1,743 11 1,796 23 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 $ 189 million and $ 235 million as of June 30, 2018 and December 31, 2017 , respectively. Troubled Debt Restructurings If a borrower is experiencing financial difficulty, the Bancorp may consider, in certain circumstances, modifying the terms of their loan to maximize collect ion of amounts due. Within each of the Bancorp’s loan classes, TDRs typically involve either a reduction of the stated interest rate of the loan, an extension of the loan’s maturity date with a stated rate lower than the current market rate for a new loan with similar risk or , in limited circumstances, a reduction of the principal balance of the loan or the loan’s accrued interest. Modifying the terms of a loan may result in an increase or decrease to the ALLL depending upon the terms modified, the method u sed to measure the ALLL for a loan prior to modification and whether any charge-offs were recorded on the loan before or at the time of modification. Refer to the ALLL section of Note 1 of the Notes to Consolidated Financial Statements included in the Banc orp’s Annual Report on Form 10-K for the year ended December 31, 2017 for information on the Bancorp’s ALLL methodology. Upon modification of a loan, the Bancorp measures the related impairment as the difference between the estimated future cash flows e xpected to be collected on the modified loan , discounted at the original effective yield of the loan, and the carrying value of the loan . The resulting measurement may result in the need for minimal or no allowance because it is probable that all cash flow s 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 investm ent of the loan. Conversely, upon a modification that reduces the stated interest rate on a loan, the Bancorp recognizes an impairment loss as an increase to the ALLL. I f a TDR involves a reduction of the principal balance of the loan or the loan’s accrue d interest, that amount is charged off to the ALLL . The Bancorp had commitments to lend additional funds to borrowers whose terms have been modified in a TDR, consisting of line of credit and let ter of credit commitments of $ 29 million and $ 69 million , respectively, as of June 30, 2018 compared with $ 53 million and $ 78 million, respectively, as of December 31, 2017 . The following tables provide a summary of loans and leases, by class, modified in a TDR by the Bancorp during the three months ended: Recorded Investment (Decrease) Number of Loans in Loans Modified Increase Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon June 30, 2018 ($ in millions) (a) During the Period (b) During the Period Modification Modification Commercial loans: Commercial and industrial loans 13 $ 64 (4) - Residential mortgage loans 537 91 2 - Consumer loans: Home equity 29 2 - - Automobile loans 19 - - - Credit card 1,675 9 2 1 Total portfolio loans 2,273 $ 166 - 1 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded Investment Number of Loans in Loans Modified Increase Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon June 30, 2017 ($ in millions) (a) During the Period (b) During the Period Modification Modification Commercial loans: Commercial and industrial loans 17 $ 56 1 4 Commercial mortgage owner-occupied loans 2 6 5 - Commercial mortgage nonowner-occupied loans 1 - - - Residential mortgage loans 199 28 1 - Consumer loans: Home equity 44 3 - - Automobile loans 15 - - - Credit card 2,152 10 2 1 Total portfolio loans 2,430 $ 103 9 5 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . The Bancorp considers TDRs that become 90 days or more past due under the modified te rms as subsequently defaulted. For commercial loans not subject to individual review for impairment, loss rates that are applied for purposes of determining the ALLL include historical losses associated with subsequent defaults on loan s previously modified in a TDR . For consumer loans, the Bancorp performs a qualitative assessment of the adequacy of the consumer ALLL by comparing the consumer ALLL to forecasted 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 an ALLL for the entire balance of the credit card loans modified in a TDR that subsequently default . The following tables provide a summary of TDRs that subsequently defaulted during the three months ended June 30, 2018 and 2017 and were within twelve months of the restructuring date: Number of Recorded June 30, 2018 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 2 $ 28 Residential mortgage loans 62 13 Consumer loans: Credit card 137 1 Total portfolio loans 201 $ 42 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. Number of Recorded June 30, 2017 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 2 $ 15 Commercial mortgage nonowner-occupied loans 3 1 Residential mortgage loans 26 3 Consumer loans: Home equity 6 1 Credit card 387 2 Total portfolio loans 424 $ 22 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. The following tables provide a summary of loans and leases, by class, modified in a TDR by the Bancorp during the six months ended: Recorded Investment Increase Number of Loans in Loans Modified (Decrease) Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon June 30, 2018 ($ in millions) (a) During the Period (b) During the Period Modification Modification Commercial loans: Commercial and industrial loans 25 $ 135 9 - Commercial mortgage owner-occupied loans 2 - - - Residential mortgage loans 784 124 3 - Consumer loans: Home equity 54 4 - - Automobile loans 39 - - - Credit card 3,640 19 4 1 Total portfolio loans 4,544 $ 282 16 1 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded Investment Number of Loans in Loans and Leases Increase Charge-offs Modified in a TDR Modified in a TDR to ALLL Upon Recognized Upon June 30, 2017 ($ in millions) (a) During the Period (b) During the Period Modification Modification Commercial loans and leases: Commercial and industrial loans 50 $ 153 2 6 Commercial mortgage owner-occupied loans 7 8 5 - Commercial mortgage nonowner-occupied loans 2 - - - Residential mortgage loans 402 57 3 - Consumer loans: Home equity 75 5 - - Automobile loans 45 - - - Credit card 3,908 17 3 1 Total portfolio loans and leases 4,489 $ 240 13 7 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . The following tables provide a summary of TDRs that subsequently defaulted during the six months ended June 30, 2018 and 2017 and were within twelve months of the restructuring date: Number of Recorded June 30, 2018 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 3 $ 29 Commercial mortgage owner-occupied loans 2 - Residential mortgage loans 110 20 Consumer loans: Home equity 2 - Credit card 379 2 Total portfolio loans 496 $ 51 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. Number of Recorded June 30, 2017 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 4 $ 16 Commercial mortgage nonowner-occupied loans 3 1 Residential mortgage loans 83 12 Consumer loans: Home equity 11 2 Credit card 837 4 Total portfolio loans 938 $ 35 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. |
Bank Premises and Equipment
Bank Premises and Equipment | 6 Months Ended |
Jun. 30, 2018 | |
Bank Premises and Equipment | |
Bank Premises and Equipment | 7 . Bank Premises and Equipment The following table provides a summary of bank premises and equipment as of: ($ in millions) June 30, 2018 December 31, 2017 Land and improvements (a) $ 599 644 Buildings (a) 1,616 1,679 Equipment 1,936 1,876 Leasehold improvements 396 399 Construction in progress (a) 85 93 Bank premises and equipment held for sale: Land and improvements 24 17 Buildings 10 9 Equipment 3 1 Accumulated depreciation and amortization (2,754) (2,715) Total bank premises and equipment $ 1,915 2,003 (a ) At June 30, 2018 and December 31, 2017 , land and improvements , buildings and construction in progress included $ 55 and $ 9 1 , respectively, associated w ith parcels of undeveloped land intended for future branch expansion. The Bancorp monitors changing customer preferences associated with the channels it uses for banking transactions to evaluate the efficiency, competitiveness and quality of the customer service experience in its consumer distribution network. As part of this ongoing assessment, the Bancorp may determine that it is no longer fully committed to maintaining full-service branches at certain of its existing banking center locations. Similarly, the Bancorp may also determine that it is no longer ful ly committed to building banking centers on certain parcels of land which had previously been held for future branch expansion. During the second quarter of 2018, the Bancorp adopted a plan to close approximately 100 to 125 branches over the next three y ears (the “20 18 Branch Optimization Plan”). As of June 30, 2018, the Bancorp had identified 29 specific branches for closure under the 2018 Branch Optimization Plan with these closures expected to be completed prior to December 31, 2018. The Bancorp expect s to identify the remaining branches to be closed under the 2018 Branch Optimization Plan over the next 12 to 18 months. As part of the adoption of the 2018 Branch Optimization Plan, the Bancorp has also elected to sell 21 parcels of land which had previou sly been held for future branch expansion. As a result of the adoption of the 2018 Branch Optimization Plan during the second quarter of 2018, the Bancorp performed assessments of the recoverability of the following long-lived assets for which the Bancorp believes that it is more likely than not that the assets will be disposed of significantly before the end of their previously estimated useful lives: 29 branches specifically identified for closure prior to December 31, 2018 128 branches from which the re maining closures under the 2018 Branch Optimization Plan are expected to be selected 21 parcels of land that the Bancorp has elected to sell Impairment losses associated with such assessments and lower of cost or market adjustments were $ 33 million and $ 41 million for the three and six months ended June 30, 2018 , respectively, and $ 2 million and $ 5 million for the three and six months ended June 30, 2017 , respectively. The recognized impairment losses were recorded in other noninterest income in the Condensed Consolidated Statements of Income. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Intangible Assets | |
Intangible Assets | 8 . Intangible Assets Intangible assets consist of core deposit intangibles, customer relationships, non-compete agreements , trade names and rent intangibles . Intangible assets are amortized on either a straight-line or an accelerated basis over their estimated useful lives. The increase in gross carrying amount of intangible assets from the year ended December 31, 2017 primarily reflects acquisition activity during the first quarter of 2018 . The details of the Bancorp’s intangible assets are shown in the following table: Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount As of June 30, 2018 Core deposit intangibles $ 34 (29) 5 Customer relationships 20 (1) 19 Non-compete agreements 14 (11) 3 Other 6 (3) 3 Total intangible assets $ 74 (44) 30 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 June 30, 2018 , all of the Bancorp’s intangible assets were being amortized. Amortization expense recognized on inta ngible assets was $ 1 million and immaterial for the three months ended June 30, 2018 and 2017 , respectively, and $ 2 million and $ 1 million for the six months ended June 30, 2018 and 2017 , respectively . The Bancorp's projection of amort ization expense shown in the following table is based on existing balances as of June 30, 2018 . Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2018 through 2022 is as follows: ($ in millions) Total Remainder of 2018 $ 3 2019 5 2020 3 2021 3 2022 2 |
VIE
VIE | 6 Months Ended |
Jun. 30, 2018 | |
Variable Interest Entities | |
Variable Interest Entities | 9 . Variable Interest Entities The Bancorp, in the normal course of business, engages in a variety of activities that involve VIEs, which are legal entities that lack sufficient equity at risk to finance their activities without additional subordinated financial support or the equity investors of the entities as a group lack any of the characteristics of a controlling interest. The Bancorp evaluates its inte rest in certain entities to determine if these entities meet the definition of a VIE and whether the Bancorp is the primary beneficiary and should consolidate the entity based on the variable interests it held both at inception and when there is a change i n circumstances that requires a reconsideration. If the Bancorp is determined to be the primary beneficiary of a VIE, it must account for the VIE as a consolidated subsidiary. If the Bancorp is determined not to be the primary beneficiary of a VIE but hold s a variable interest in the entity, such variable interests are accounted for under the equity method of accounting or other accounting standards as appropriate. Consolidated VIEs The following tables provide a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Condensed Consolidated Balance Sheets as of: Automobile Loan CDC June 30, 2018 ($ in millions) Securitizations Investments Total Assets: Other short-term investments $ 47 - 47 Commercial mortgage loans - 20 20 Automobile loans 888 - 888 ALLL (5) - (5) Other assets 5 - 5 Total assets $ 935 20 955 Liabilities: Other liabilities $ 2 - 2 Long-term debt 830 - 830 Total liabilities $ 832 - 832 Noncontrolling interests $ - 20 20 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 securitizations In a securitization transaction that occurred in the third quarter 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. Additionally, in prior years the Bancorp completed securitization transactions in which the Bancorp tra nsferred 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 subordination and payment priority, as well as re sidual interests, and to provide the Bancorp with access to liquidity for its originated loans. The Bancorp retained residual interests in the VIEs and, therefore, has an obligation to absorb losses and a right to receive benefits from the VIEs that could potentially be significant to the VIEs. In addition, the Bancorp retained servicing rights for the underlying loans and, therefore, holds the power to direct the activities of the VIEs that most significantly impact the economic performance of the VIEs. As a result, the Bancorp concluded that it is the primary beneficiary of the VIEs and has consolidated these VIEs. The assets of the VIEs are restricted to the settlement of the asset-backed securities and other obligations of the VIEs. Third-party holders o f the notes do not have recourse to the general assets of the Bancorp. The economic performance of the VIEs is most significantly impacted by the performance of the underlying loans. The principal risks to which the VIEs are exposed include credit risk and 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 classes of asset-backed securities to other classes. CDC i nvestments CDC, a wholly-owned indirect subsidiary of the Bancorp, was created to invest in projects to create affordable housing, revitalize business and residential areas and preserve historic landmarks. CDC generally co-invests with other unrelated companies and/or individuals and typically makes investments in a separate legal entity that owns the property under development. The entities are usually formed as limited partnerships and LLCs and CDC typically invests as a limited partne r/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 have the right to make decisions that most significantly impact t he economic performance of the LLCs. Additionally, the investor members do not hold substantive kick-out rights or substantive participating rights over the managing member . The Bancorp has provided an indemnification guarantee to the investor member of th ese LLCs 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 consolidated these VIEs. As a result, the investor members’ intere sts in these VIEs are presented as noncontrolling interests in the Condensed Consolidated Financial Statements. This presentation includes reporting separately the equity attributable to the noncontrolling interests in the Condensed Consolidated Balance Sh eets and Condensed Consolidated Statements of Changes in Equity and reporting separately the comprehensive income attributable to the noncontrolling interests in the Condensed Consolidated Statements of Comprehensive Income and the net income attributable to the noncontrolling interests in the Condensed Consolidated Statements of Income. 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 expi red 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 resulting 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. T he Bancorp’s m aximum exposure related to the remaini ng indemnifications at June 30, 2018 and December 31, 2017 was $ 1 9 million and $ 17 million , respectively, which is based on an amount required to meet the investor member’s defined target rate of return . Non-consolidated VIEs The following tables provide a summary of assets and liabilities carried on the Condensed Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of: Total Total Maximum June 30, 2018 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,213 363 1,213 Private equity investments 70 - 112 Loans provided to VIEs 1,885 - 3,124 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 CDC i nvestments As noted previously, CDC typically invests in VIEs as a limited partner or investor member in the form of equity contributions and has no substantive kick-out or substantive participating rights over the managing member . The Bancorp has determined that it is not the primary beneficiary of these VIEs because it lacks the power to direct the activities that most significantly impact the economic performance of the underlying project or the VIEs’ ability to operate in compliance with the rul es and regulations necessary for the qualification of tax credits generated by equity investments. This power is held by the managing members who exercise full and exclusive control of the operations of the VIEs. Accordingly, the Bancorp accounts for these investments under the equity method of accounting. The Bancorp’s funding requirements are limited to its invested capital and any additional unfunded commitments for future equity contributions. The Bancorp’s maximum exposure to loss as a result of its involvement with the VIEs is limited to the carrying amounts of the investments, including the unfunded commitments. The carrying amounts of these investments, which are included in other assets in the Condensed Consolidated Balance Sheets, and the liabili ties related to the unfunded commitments, which are included in other liabilities in the Condensed Consolidated Balance Sheets, are included in the previous tables for all periods presented. The Bancorp has no other liquidity arrangements or obligations to purchase assets of the VIEs that would expose the Bancorp to a loss. In certain arran gements, the general partner/managing member of the VIE has guaranteed a level of projected tax credits to be received by the limited partners/investor members, thereby m inimizing a portion of the Bancorp’s risk. At June 30, 2018 and December 31, 2017 , the Bancorp ’s CDC investments included $ 1 .2 billion and $ 1.3 billion, respectively, of investment s in affordable housing tax cred its recognized in other assets i n the Condensed Con solidated Balance Sheets. The unfunded commitments related to these investments were $ 362 million and $ 355 million at June 30, 2018 and December 31, 2017 , respectively. The unfunded commitments as of June 30, 2018 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 Condensed Consolidated Statements of Income relating to investments in qualified affordable housing investments: Condensed Consolidated For the three months ended June 30, For the six months ended June 30, ($ in millions) Statements of Income Caption 2018 2017 2018 2017 Pre-tax investment and impairment losses (a) Other noninterest expense $ 46 35 91 72 Tax credits and other benefits Applicable income tax expense (51) (56) (103) (112) (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credi ts or other circumstances during both the three and six months ended June 30, 2018 and 2017 . Private equity i nvestments The Bancorp , through Fifth Third Capital Holdings, a wholly-owned indirect subsidiary of the Bancorp, invests as a limite d partner in private equity investment s which provide the Bancorp an opportunity to obtain higher rates of return on invested capital, while also creating cross-selling opportunities for the Bancorp’s commercial products. Each of the limited partnerships has an unrelated third-party general partner responsible for appointing the fund manager. The Bancorp has no t been appointed fund manager for any of these private equity investment s. The funds finance primarily all of their activities from the partners’ capital contributions and investment returns. T he Bancorp has determined that it is not the primary beneficiar y of the funds because it does not have the obligation to absorb the funds’ expected losses or the right to receive the funds’ expected residual returns that could potentially be significant to the funds and lacks the power to direct the activities that mo st significantly impact the economic performance of the funds . The Bancorp, as a limited partner, does not have substantive participating or substantive kick-out rights over the general partner. Therefore, the Bancorp accounts for its investments in these limited partnerships under the equity method of accounting. The Bancorp is exposed to losses arising from the negative performance of the underlying investm ents in the private equity investments . As a limited partner, the Bancorp’s maximum exposure to los s is limited to the carrying amounts of the investments plus unfunded commitments. The carrying amounts of these investments, which are included in other assets in the Condensed Consolidated Balance Sheets, are included in the previous tables. Also, at June 30, 2018 and December 31, 2017 , the unfunded commitment amounts to the funds were $ 42 million and $ 48 million, respectively. As part of previous commitments, the Bancorp made capital contributions to private equity investments of $ 2 million and an immaterial amount during the three months ended June 30, 2018 and 2017, respectively and $ 5 million and $ 7 million during the six months ended June 30, 2018 and 2017, respectively. The Bancorp recognized $2 million and zero of OTTI primarily associated with cert ain nonconforming investments affected by the Volcker Rule during the three months ended June 30, 2018 and 2017, respectively, and $6 million and zero during the six months ended June 30, 2018 and 2017. Refer to Note 21 for further information. Loans p r ovided to VIEs The Bancorp has provided funding to certain unconsolidated VIEs sponsored by third parties. These VIEs are generally established to finance certain consumer and small business loans originated by third parties. The entities are primarily fun ded 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 underlying assets in the VIEs. Because the sponsor/administrator, not the Bancorp, holds the servicing responsibilities, which include the establishment and employment of default mitigation policies and procedures, the Bancorp does not hold the power to direct the activities that most significant ly impact the economic performan ce of the entity and, therefore, is not the primary beneficiary. The principal risk to which these entities are exposed is credit risk related to the underlying assets. The Bancorp’s maximum exposure to loss is equal to the carrying amounts of the loans a nd unfunded commitments to the VIEs. The Bancorp’s outstanding loans to these V IEs are included in commercial loans in Note 5 . As of June 30, 2018 and December 31, 2017 , the Bancorp’s unfunded commitments to these entities were $ 1 .2 billion and $ 1.1 billion, respectively . The loans and unfunded commitments to these VIEs are included in the Bancorp’s overall analysis of the ALLL and reserve for unfunded commitments, respectively. The Bancorp does not provide any implicit or explicit liquidity guarantees or prin cipal value guarantees to these VIEs . |
Sales of Receivables and Servic
Sales of Receivables and Servicing Rights | 6 Months Ended |
Jun. 30, 2018 | |
Sales of Receivables and Servicing Rights | |
Sales of Receivables and Servicing Rights | 10 . Sales of Receivables and Servicing Rights Residential Mortgage Loan Sales The Bancorp sold fixed and adjustable - rate residential mortgage loans during both the three and six months ended June 30, 2018 and 2017 . 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 when due. The Bancorp receive s 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 Condensed Consolidated Statements of Income, is as follows: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2018 2017 2018 2017 Residential mortgage loan sales (a) $ 1,474 1,518 2,474 3,147 Origination fees and gains on loan sales 28 37 52 66 Gross mortgage servicing fees 54 49 106 97 Represents the unpaid principal balance at the time of the sale. Servicing Rights The Bancorp measures all of its servicing rights at fair value with changes in fair value reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income. The following table presents changes in the servicing rights related to residential mortgage loans for the six months ended June 30: ($ in millions) 2018 2017 Balance, beginning of period $ 858 744 Servicing rights originated - residential mortgage loans 35 66 Servicing rights acquired - residential mortgage loans 50 109 Changes in fair value: Due to changes in inputs or assumptions (a) 78 (13) Other changes in fair value (b) (62) (57) Balance, end of period $ 959 849 Primarily reflects changes in prepayment speed and OAS spread assumptions which are updated based on market interest rates . Pr imarily reflects changes due to collection of contractual cash flows and the passage of time . The Bancorp maintains a non-qualifying hedging strategy to manage a portion of the risk associated wi th changes in the value of the MSR portfolio. This strategy may include the purchase of free-standing derivatives and various available-for-sale and trading securities. The interest income, mark-to-market adjustments and gain or loss from sale activities a ssociated with these portfolios are expected to economically hedge a portion of the change in value of the MSR portfolio caused by fluctuating OAS spreads, earnings rates and prepayment speeds. The fair value of the servicing asset is based on the present value of expected future cash flows . The following table presents activity related to valuations of the MSR portfolio and the impact of the non-qualifying hedging strategy: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2018 2017 2018 2017 Securities (losses) gains, net - non-qualifying hedges on MSRs $ (4) 2 (17) 2 Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) (16) 16 (65) 15 MSR fair value adjustment due to changes in inputs or assumptions (a) 21 (17) 78 (13) (a) Included in mortgage banking net revenue in the Condensed Consolidated Statements of Income. The key economic assumptions used in measuring the interests in residential mortgage loans that continued to be held by the Bancorp at the date of sale, securitization or purchase resulting from transactions completed during the three months ended June 30, 2018 and 2017 were as follows: June 30, 2018 June 30, 2017 Rate Weighted-Average Life (in years) Prepayment Speed (annual) OAS Spread (bps) Weighted-Average Life (in years) Prepayment Speed (annual) OAS Spread (bps) Residential mortgage loans: Servicing rights Fixed 6.8 10.0 % 519 7.0 10.3 % 492 Servicing rights Adjustable - - - 3.0 29.8 659 Based on historical credit experience, expected credit losses for residential mortgage loan servicing rights have been deemed immaterial, as the Bancorp sold the majority of the underlying loans without recourse. At June 30, 2018 and December 31, 2017 , the Bancorp serviced $ 62.2 billion and $ 60.0 billion, respectively , of residential mortgage loans for other i nvestors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets. At June 30, 2018, 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 OAS Spread Impact of Weighted- Impact of Adverse Change Adverse Change Fair Average Life on Fair Value on Fair Value ($ in millions) (a) Rate Value (in years) Rate 10% 20% 50% (bps) 10% 20% Residential mortgage loans: Servicing rights Fixed $ 944 6.5 9.5 % $ (37) (71) (164) 543 $ (19) (37) Servicing rights Adjustable 15 3.4 23.6 (1) (2) (4) 817 - (1) (a) The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial . These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on these variations in the assumptions typically cannot be extrapolated because the relationship of the change in assumption to the c hange in fair value may not be linear. The Bancorp believes variations of these levels are reasonably possible; however, there is the potential that adverse changes in key assumptions could be even greater. Also, in the previous table, the effect of a vari ation in a particular assumption on the fair value of the interests that continue to be held by the Bancorp is calculated without changing any other assumption; in reality, changes in one factor may result in changes in another (for example, increases in m arket interest rates may result in lower prepayments), which might magnify or counteract these sensitivities. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 11 . Derivative Financial Instruments The Bancorp maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce c ertain risks related to interest rate, prepayment and foreign currency volatility. Additionally, the Bancorp holds derivative instruments for the benefit of its commercial customers and for other business purposes. The Bancorp does not enter into unhedged speculative derivative positions . The Bancorp’s interest rate risk management strategy involves modifying the repricing characteristics of certain financial instruments so that changes in interest rates do not adversely affect the Bancorp’s net interest margin and cash flows. Derivative instruments that the Bancorp may use as part of its interest rate risk management strategy include interest rate swaps, interest rate floors, interest rate caps, forward contracts, forward starting interest rate swaps, options, s waptions and TBA securitie s . Interest rate swap contracts are exchanges of interest payments, such as fixed-rate payments for floating-rate payments, based on a stated notional amount and maturity date. Interest rate floors protect against declining rates, while interest rate caps protect against rising interest rates. Forward contracts are contracts in which the buyer agrees to purchase, and the seller agrees to make delivery of, a specific financial instrument at a predetermined price or yield. Options provide the purchaser with t he 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, intere st rate floors, mortgage options, TBAs and interest rate swaps) to economically hedge prepayment volatility. Principal-only swaps are total return swaps based on changes in the value of the underlying mortgage principal-only trust. TBA securities are a for ward purchase agreement for a mortgage-backed securities trade whereby the terms of the security are undefined at the time the trade is made. Foreign currency volatility occurs as the Bancorp enters into certain loans denominated in foreign currencies. D erivative instruments that the Bancorp may use to economically hedge these foreign denominated loans include foreign exchange swaps and forward contracts. The Bancorp also enters into derivative contracts (including foreign exchange contracts, commodity c ontracts 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 wi th approved, reputable and independent counterparties with substantially matching terms and currencies. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. The Bancorp’s exposure is limited to the replacem ent value of the contracts rather than the notional, principal or contract amounts. Credit risk is minimized through credit approvals, limits, counterparty collateral and monitoring procedures. The fair value of derivative instruments is presented on a g ross basis, even when the derivative instruments are subject to master netting arrangements. Derivative instruments with a positive fair value are reported in other assets in the Condensed Consolidated Balance Sheets while derivative instruments with a neg ative fair value are reported in other liabilities in the Condensed Consolidated Balance Sheets. Cash collateral payables and receivables associated with the derivative instruments are not added to or netted against the fair value amounts with the exceptio n of certain variation margin payments that are considered legal settlements of the derivative contracts. For derivative contracts cleared through certain central clearing parties who have modified their rules to treat variation margin payments as settleme nts, the variation margin payments are applied to net the fair value of the respective derivative contracts. The Bancorp’s derivative assets include certain 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 June 30, 2018 and December 31, 2017 , the balance of collateral held by the Bancorp for derivative assets was $ 367 million and $ 409 million, respectively. For derivative contracts cleared through certain central clearing parties who have modified their rules to treat variation margin payments as settlement of the derivative contract, the payments for v ariation margin of $ 99 million were applied to reduce the respective derivative contracts and were also not included in the total amount of collateral held as of June 30, 2018 . The credit component negatively impacting the fair value of derivative assets as sociated with customer accommodation contracts as of both June 30, 2018 and December 31, 2017 was $ 3 million . In measuring the fair value of derivative liabilities, the Bancorp considers its own credit risk, taking into consideration collateral maintenan ce requirements of certain derivative counterparties and the duration of instruments with counterparties that do not require collateral maintenance. When necessary, the Bancorp posts collateral primarily in the form of cash and securities to offset changes in fair value of the derivatives, including changes in fair value due to the Bancorp’s credit risk. As of June 30, 2018 and December 31, 2017 , the balance of collateral posted by the Bancorp for derivative liabilities was $ 401 million and $ 365 million, respective ly , and $ 130 million of variation margin payments were applied to the respective derivative contracts to reduce the Bancorp’s derivative liabilities as of June 30, 2018 and were also not included in the total amount of collateral posted . Certain of the Banc orp’s derivative liabilities contain credit risk related contingent features that could result in the requirement to post additional collateral upon the occurrence of specified events. As of June 30, 2018 and December 31, 2017 , the fair value of the addi tional collateral that could be required to be posted as a result of the credit risk related contingent features being triggered was immaterial to the Condensed Consolidated Financial Statements. The posting of collateral has been determined to remove the need for further consideration of credit risk. As a result , the Bancorp determined that the impact of the Bancorp’s credit risk to the valuation of its derivative liabilities was immaterial to the Condensed Consolidated Financial Statements. The Bancorp h olds certain derivative instruments that qualify for hedge accounting treatment and are designated as either fair value hedges or cash flow hedges. Derivative instruments that do not qualify for hedge accounting treatment, or for which hedge accounting is not established, are held as free-standing derivatives. All customer accommodation derivatives are he ld as free-standing derivatives. The following tables reflect the notional amounts and fair values for all derivative instruments included in the Condensed Consolidated Balance Sheets as of: Fair Value Notional Derivative Derivative June 30, 2018 ($ in millions) Amount Assets Liabilities Derivatives Designated as Qualifying Hedging Instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 3,205 229 4 Total fair value hedges 229 4 Cash flow hedges: Interest rate swaps related to C&I loans 6,150 1 15 Total cash flow hedges 1 15 Total derivatives designated as qualifying hedging instruments 230 19 Derivatives Not Designated as Qualifying Hedging Instruments: Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSR portfolio 11,475 52 13 Forward contracts related to residential mortgage loans held for sale 1,450 - 4 Swap associated with the sale of Visa, Inc. Class B Shares 2,207 - 164 Foreign exchange contracts 153 2 - Total free-standing derivatives - risk management and other business purposes 54 181 Free-standing derivatives - customer accommodation: Interest rate contracts 48,949 247 280 Interest rate lock commitments 596 11 - Commodity contracts 5,087 284 270 TBA securities 58 - - Foreign exchange contracts 10,842 119 109 Total free-standing derivatives - customer accommodation 661 659 Total derivatives not designated as qualifying hedging instruments 715 840 Total $ 945 859 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 MSR portfolio 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 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 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 designated fair value hedges of interest rate risk as of June 30, 2018 , the Bancorp p erformed an assessment of hedge effectiveness using regression analysis (quantitative approach) with changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk recor ded in the same income statement line in current period net income . The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Condensed Consolidated Statements of Income: For the three months For the six months Condensed Consolidated ended June 30, ended June 30, ($ in millions) Statements of Income Caption 2018 2017 2018 2017 Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ (18) 14 (81) (6) Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt 19 (15) 83 5 The following amounts were recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of: Condensed Consolidated ($ in millions) Balance Sheets Caption June 30, 2018 Carrying amount of the hedged item Long-term debt $ 3,701 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items Long-term debt (212) 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 for the variability in cash flows attributable to the contractually specified interest rate . The assets or liabilities may be grouped in circumstances where they share the same risk exposure that the Bancorp desires to hedge. The Bancorp may also enter into interest rate caps and floors to limit ca sh flow variability of floating- rat e assets and liabilities. As of June 30, 2018 , all hedges designated as cash flow hedges were assessed for effectiveness using regression analysis. The entire change in the fair value of the interest rate swap included in the assessment of hedge effectivene ss is re corded in AOCI and reclassified from AOCI to current period earnings when the hedged item affects earnings. As of June 30, 2018 , the maximum length of time over which the Bancorp is hedging its exposure to the variability in future ca sh flows is 73 months. Reclassified gains and losses on interest rate contra cts related to commercial and industrial loans are recorded within interest income in the Condensed Consolidated Statements of Income. As of June 30, 2018 and December 31, 2017 , $ 1 6 million and $ 9 milli on, respectively, of net deferred losses , net of tax, on cash flow hedges were recorded in AOCI in the Condensed Consolidated Balance Sheets. As of June 30, 2018 , $ 7 million in net unrealized 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 h edges subsequent to June 30, 2018 . During both the three and six months ended June 30, 2018 and 2017 , 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 pretax net gains (losses) recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2018 2017 (a) 2018 2017 (a) Amount of pretax net (losses) gains recognized in OCI $ 4 8 (5) 3 Amount of pretax net gains reclassified from OCI into net income - 6 1 14 For both the three and six months ended June 30, 2017, the amount of pretax net losses recognized in OCI represented the effective portion of the cumulative gains or losses on cash flow hedges and ineffectiveness was reported within noninterest income. Upon the adoption of ASU 2017-12, the Bancorp recorded a cumulative effect adjustment to retained earnings effective January 1, 2018 related to the elimination of the separate measurement of ineffect iveness. Refer to Note 3 for additional information. 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 securities and interest rate swaps) to economically hedge changes in fair value of its largely fixed-rate MSR portfolio. Principal-only swaps hedge the mortgage-LIBOR spread because these sw aps appreciate in value as a result of tightening spreads. Principal-only swaps also provide prepayment protection by increasing in value when prepayment speeds increase, as opposed to MSRs that lose value in a faster prepayment environment. Receive fixed/ pay floating interest rate swaps and swaptions increase in value when interest rates do not increase as quickly as expected. The Bancorp enters into forward contracts and mortgage options to economically hedge the change in fair value of certain residenti al mortgage loans held for sale due to changes in interest rates. IRLCs issued on residential mortgage loan commitments that will be held for sale are also considered free-standing derivative instruments and the interest rate exposure on these commitments is economically hedged primarily with forward contracts. Revaluation gains and losses from free-standing derivatives related to mortgage banking activity are recorded as a component of mortgage banking net revenue in the Condensed Consolidated Statements o f Income. In conjunction with the sale of Visa, Inc. Class B S hares in 2009, the Bancorp entered into a total return swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Class B Shares into Class A S hares. This total return swap is accounted for as a free-standing derivative. Refer to Note 20 for further discussion of significant inputs and assumptions used in th e valuation of this instrument. The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: For the three months For the six months Condensed Consolidated ended June 30, ended June 30, ($ in millions) Statements of Income Caption 2018 2017 2018 2017 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ (3) 5 (4) (16) Interest rate contracts related to MSR portfolio Mortgage banking net revenue (16) 16 (65) 15 Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income 3 (3) 5 (4) Equity contracts: Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (10) (9) (49) (22) Free-Standing Derivative Instruments – Customer Accommodation The majority of the free-standing derivative instruments the Bancorp enters into are for the benefit of its commercial customers. These derivative contracts are not designated against specif ic assets or liabilities on the Condensed Consolidated Balance Sheet s or to forecasted transactions; and therefore, do not qualify for hedge accounting. These instruments include foreign exchange derivative contracts entered into for the benefit of commerc ial customers involved in international trade to hedge their exposure to foreign currency fluctuations and commodity contracts to hedge such items as natural gas and various other derivative contracts. The Bancorp may economically hedge significant exposur es related to these derivative contracts entered into for the benefit of customers by entering into offsetting contracts with approved, reputable , independent counterparties with substantially matching terms. The Bancorp hedges its interest rate exposure o n commercial customer transactions by executing offsetting swap agreements with primary dealers. Revaluation gains and losses on interest rate, foreign exchange, commodity and other commercial customer deriva tive contracts are recorded as a component of ei ther corporate banking revenue or other noninterest income in the Condensed Consolidated Statements of Income. The Bancorp enters into risk participation agreements, under which the Bancorp assumes credit exposure relating to certain underlying interest rate derivative contracts. The Bancorp only enters into these risk participation agreements in instances in which the Bancorp has participated in the loan that the underlying interest rate derivative contract was designed to hedge. The Bancorp will make pa yments under these agreements if a customer defaults on its obligation to perform under the terms of the underlying interest rate derivative contract. As of June 30, 2018 and December 31, 2017 , the total notional amount of the risk p articipation agreements was $3.7 billion and $2.8 billion, respectively, and the fair value was a liability of $ 8 million and $ 5 million at June 30, 2018 and December 31, 2017 , respectively, which is included in other liabilities in the Condensed Consolidated Balance Sheets . As of June 30, 2018 , the risk participation agreements had a weighted-average remaining life of 3 .6 years. The Bancorp’s maximum exposure in the risk participation agreements is contingent on the fair value of the underlying interest rate derivative contracts in an asset pos ition at the time of default. The Bancorp monitors the credit risk associated with the underlying customers in the risk participation agreements through the same risk grading system currently utilized for establishing loss reserves i n its loan and lease po rtfolio. Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table as of: June 30, December 31, ($ in millions) 2018 2017 Pass $ 3,590 2,748 Special mention 77 66 Substandard 10 24 Total $ 3,677 2,838 The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: For the three months For the six months Condensed Consolidated ended June 30, ended June 30, ($ in millions) Statements of Income Caption 2018 2017 2018 2017 Interest rate contracts: Interest rate contracts for customers (contract revenue) Corporate banking revenue $ 9 5 16 9 Interest rate lock commitments Mortgage banking net revenue 22 26 35 48 Commodity contracts: Commodity contracts for customers (contract revenue) Corporate banking revenue 2 1 4 2 Commodity contracts for customers (credit losses) Other noninterest expense - 1 - 1 Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense (1) - (1) - Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Corporate banking revenue 13 9 27 22 Foreign exchange contracts for customers (contract revenue) Other noninterest income 7 - 5 - 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 de rivative liabilities on the Condensed Consolidated Balance Sheets on a gross basis, even when provisions allowing for setoff are in place. However, for derivative contracts cleared through certain central clearing parties who have modified their rules to t reat variation margin payments as settlements, the fair value of the respective derivative contracts are reported net of the variation margin payments. Collateral amounts included in the tables below consist primarily of cash and highly-rated government-b acked securities and do not include variation margin payments for derivative contracts with legal rights of setoff for both periods shown . The following tables provide a summary of offsetting derivative financial instruments: Gross Amount Gross Amounts Not Offset in the Recognized in the Condensed Consolidated Balance Sheets Condensed Consolidated As of June 30, 2018 ($ in millions) Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 934 (258) (300) 376 Total assets 934 (258) (300) 376 Liabilities: Derivatives 859 (258) (234) 367 Total liabilities $ 859 (258) (234) 367 Amount does not includ e IRLCs because these instruments are not subject to master netting or similar arrangements . Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table. Gross Amount Gross Amounts Not Offset in the Recognized in the Condensed Consolidated Balance Sheets Condensed Consolidated As of December 31, 2017 ($ in millions) 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 Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements . Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table. |
Other Short Term Borrowings
Other Short Term Borrowings | 6 Months Ended |
Jun. 30, 2018 | |
Other Short Term Borrowings | |
Other Short Term Borrowings | 12 . Other Short-Term Borrowings Borrowings with original maturities of one year or less are classified as short-term. The following table presents a summary of the Bancorp's other short-term borrowings as of: June 30, December 31, ($ in millions) 2018 2017 FHLB advances $ 1,200 3,125 Securities sold under repurchase agreements 300 546 Derivative collateral 263 341 Total other short-term borrowings $ 1,763 4,012 The Bancorp’s securities sold under repurchase agreements are accounted for as secured borrowings and are collateralized by securities included in available-for-sale debt and other securities in the Condensed Consolidated Balance Sheets. These securities are subject to changes in market value and, therefore, the Bancorp may increase or decrease the level of securities pledged as collateral based upon these movements in market value . As of both June 30 , 2018 an d December 31, 2017, all securities sold under repurchase agreements were secured by agency residential mortgage-backed securities with an overnight remaining contractual maturity . |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Long-Term Debt | |
Long-Term Debt | 13 . Long-Term Debt On March 14, 2018, the Bancorp issued and sold $ 650 million of 3.95% senior fixed-rate notes, with a maturity of ten years, due on March 14, 2028. These notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest thereon to, but excluding, the redemption date. On June 5, 2018, the Bancorp issued an d sold $ 250 million of senior floating-rate notes, with a maturity of three years, due on June 4, 2021. Interest on the floating-rate notes is 3-month LIBOR plus 47 bps. These notes will be redeemable, in whole or in part, on or after the date that is 30 d ays prior to the maturity date at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest thereon to, but excluding, the redemption date. For further information on a subsequent event related t o long-term debt, refer to Note 24. |
Capital Actions
Capital Actions | 6 Months Ended |
Jun. 30, 2018 | |
Capital Actions | |
Capital Actions | 14 . Capital Actions Accelerated Share Repurchase Transactions During the six months ended June 30, 2018 , the Bancorp entered into or settled a ccelerate d share repurchase transactions. As part of these t ransactions, the Bancorp entered into forward contracts in which the final number of shares delivered at settlement was based generally on a discount to the average daily volume weighted - average price of the Bancorp’s common stock during the term of the se repurchase a greement s . The accel erated share repurchase s were treated as two separate transactions , (i) the acquisition of treasury shares on the repurchase date and (ii) a forward contract i ndexed to the Bancorp's common stock. The following table presents a summary of the Bancorp's accelerated share repurchase transactions that were entered into or settled during the six months ended June 30, 2018: Repurchase Date Amount ($ in millions) Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Settlement Date December 19, 2017 $ 273 7,727,273 824,367 8,551,640 March 19, 2018 February 12, 2018 318 8,691,318 1,015,731 9,707,049 March 26, 2018 May 25, 2018 235 6,402,244 1,172,122 7,574,366 June 15, 2018 For further information on a subsequent event related to capital actions, refer to Note 24. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Guarantees | 6 Months Ended |
Jun. 30, 2018 | |
Commitments, Contingent Liabilities and Guarantees | |
Commitments, Contingent Liabilities and Guarantees | 15 . Commitments, Contingent Liabilities and Guarantees The Bancorp, in the normal course of business, enters into financial instruments and various agreements to meet the financing needs of its customers. The Bancorp also enters into certain transactions and agreements to manage its interest rate and prepayment risks, provide funding, equipment and locations for its operations and invest in its communities. These instruments and agreements involve, to varying degrees, elements of credit risk, counterparty risk and market risk in excess of the amounts recognized in the Condensed Consolidated Balance Sheets. The creditworthiness of counterparties for all instruments and agreements is evaluated on a case-by-case basis in accordance with the Bancor p’s credit policies. The Bancorp’s significant commitments, contingent liabilities and guarantees in excess of the amounts recognized in the Condensed Consolidated Balance Sheets are discussed in the following sections. Commitments The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of: June 30, December 31, ($ in millions) 2018 2017 Commitments to extend credit $ 70,915 68,106 Letters of credit 2,092 2,185 Forward contracts related to residential mortgage loans held for sale 1,450 1,284 Noncancelable operating lease obligations 568 568 Purchase obligations 120 144 Capital commitments for private equity investments 43 48 Capital expenditures 27 37 Capital lease obligations 23 26 Commitments to extend credit Commitments to extend credit are agreements to lend, typically having fixed expiration dates or other termination clauses that may require payment of a fee. Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. The Bancorp is exposed to credit risk in the event of nonperformance by the counterparty for the amount of the contract. Fixed-rate commitments are a lso subject to market risk resulting from fluctuations in interest rates and the Bancorp’s exposure is limited to the replacement value of those commitments. As of June 30, 2018 and December 31, 2017 , the Bancorp had a reserve for unfunded commitments, i ncluding letters of credit, totaling $ 131 million and $ 161 million, respectively, included in other liabilities in the Condensed Consolidated Balance Sheets. The Bancorp monitors the credit risk associated with co mmitments to extend credit using the same standard regulatory risk rating system utilized for its loan and lease portfolio. Risk ratings under this risk rating system are summarized in the following table as of: June 30, December 31, ($ in millions) 2018 2017 Pass $ 70,340 67,254 Special mention 306 330 Substandard 269 522 Total commitments to extend credit $ 70,915 68,106 Letters of c r edit Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of June 30, 2018: ($ in millions) Less than 1 year (a) $ 1,070 1 - 5 years (a) 1,009 Over 5 years 13 Total letters of credit $ 2,092 ( a) Includes $ 7 and $ 2 issued on behalf of c ommercial 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 June 30, 2018 and December 31, 2017 , and are considered guarantees in accordance with U.S. GAAP. Approximately 63 % and 61 % of the total standby letters of credit were collateralized as of June 30, 2018 and December 31, 2017 , respectively. In the event of nonperformance by the customers, the Bancorp has rights to the underlying collateral, which can include commercial real e state, physical plant and property, inventory, receivables, cash and marketable securities. The reserve related to these standby letters of credit, which was included in the total reserve for unfunded commitments, was $ 5 million and $ 6 million at June 30, 2018 and December 31, 2017 , respectively . The Bancorp monitors the credit risk associated with letters of credit using the same standard regulatory risk rating system utilized for its loan and lease portfolio. Risk ratings under this risk rating system are summarized in the following table as of: June 30, December 31, ($ in millions) 2018 2017 Pass $ 1,897 1,830 Special mention 46 67 Substandard 149 218 Doubtful - 70 Total letters of credit $ 2,092 2,185 At June 30, 2018 and December 31, 2017 , the Bancorp had outstanding letters of credit that were supporting certain securities issued as VRDNs. The Bancorp facilitates financing for its commercial customers, which consist of companies and municipalities, by marketing the VRDNs to investors. The VRDNs pay interest to holders at a rate of interest that fluctuates based upon market demand. The VRDNs generally have long-term maturity dates, but can be tendered by the holder for purchase at par value upon prop er advance notice. When the VRDNs are tendered, a remarketing agent generally finds another investor to purchase the VRDNs to keep the securities outstanding in the market. As of June 30, 2018 and December 31, 2017 , total VRDNs in which the Bancorp was t he remarketing agent or were supported by a Bancorp letter of credit were $ 560 million and $ 602 million, respectively, of which FTS acted as the remarketing agent to issuers on $ 540 million and $ 508 million, respectively. As remarketing agent, FTS is respo nsible for actively remarketing VRDNs to other investors when they have been tendered. If another investor is not identified, FTS may choose to purchase the VRDNs into inventory at its discretion while it continues to remarket them. If FTS purchases the VR DNs into inventory, it can subsequently tender back the VRDNs to the issuer’s trustee with proper advance notice. The Bancorp issued letters of credit, as a credit enhancement, to $ 299 million and $ 331 million of the VRDNs remarketed by FTS, in addition t o $ 20 million and $ 94 million in VRDNs remarketed by third parties at June 30, 2018 and December 31, 2017 , respectively. These letters of credit are included in the total letters of credit balance provided in the previous table. The Bancorp held $ 2 milli on and $ 1 million of these VRDNs in its portfolio and classified them as trading securities at June 30, 2018 and December 31, 2017 , respectively. Forward contracts related to residential mortgage loans held for sale The Bancorp enters into forward contr acts to economically hedge the change in fair value of certain residential mortgage loans held for sale due to changes in interest rates. The outstanding notional amounts of these forward contracts are included in the summary of significant commitments tab le for all periods presented. Noncancelable operating lease obligations and other commitments The Bancorp’s subsidiaries have entered into a number of noncancelable lease agreements. The minimum rental commitments under noncancelable lease agreements are shown in the summary of significant commitments table. The Bancorp has also entered into a limited number of agreements for work related to banking center construction and to purchase goods or services. Contingent Liabilities Legal claims There are legal claims pending against the Bancorp and its subsidiaries that have arisen in the normal course of business. Refer to Note 16 for additional information regarding these proceedings. Guarantees The Bancorp has performance obligations upon the occurrence of certain events under financial guarantees provided in certain contractual arrangements as discussed in the following sections. Residential mortgage loans sold with representation and warranty provisions Conforming residential mortgage loans sold to unrelated third parties 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 general, only when a loss results from the breach. The Banc orp may be required to repurchase any previously sold loan , indemnify or make whole the investor or insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading. For more information on how the Bancorp e stablishes the residential mortgage rep urchase reserve, refer to Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2017 . As of June 30, 2018 and December 31, 2017 , the Bancorp maintained reserves related to loans sold with representation and warranty provisions totaling $ 7 million and $ 9 million, respectively, included in other liabilities in the Condensed Consolidated Balance Sheets. The Bancorp uses the best information available when estimating its mortgage representation and warranty reserve; however, the estimation process is inherently uncertain and imprecise and, accordingly, losses in excess of the amounts reserved as of June 30, 2018 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 $ 9 million in excess of amounts reserved. This estimate was deri ved by modifying the key assumptions to reflect management's judgment regarding reasonably possible adverse changes to those assumptions. The actual repurchase losses could vary significantly from the recorded mortgage representation and warranty reserve o r this estimate of reasonably possible losses, depending on the outcome of various factors, including those previously discussed. For both the three months ended June 30, 2018 and 2017 , the Bancorp paid an immaterial amount in the form of make whole pay ments and repurchased $ 5 million and $ 3 million, respectively, in outstanding principal of loans to satisfy investor demands. For both the six months ended June 30, 2018 and 2017 , the Bancorp paid immaterial amounts in the form of make whole payments and repurchased $ 7 million and $ 5 million, respectively, in outstanding principal of loans to satisfy investor demands. Total repurchase demand requests during the three months ended June 30, 2018 and 2017 were $ 6 million and $ 5 million, respectively. Total repurchase demand requests during the six months ended June 30, 2018 and 2017 were $ 11 million and $ 8 million, respectively. Total outstanding repurchase demand inventory was $ 3 million and $ 1 million at June 30, 2018 and December 31, 2017 , respe ctively . The following table summarizes activity in the reserve for representation and warranty provisions: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2018 2017 2018 2017 Balance, beginning of period $ 8 12 9 13 Net reductions to the reserve (1) (1) (2) (2) Balance, end of period $ 7 11 7 11 The following tables provide a rollforward of unresolved claims by claimant type for the six months ended: GSE Private Label June 30, 2018 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 6 $ 1 1 $ - New demands 62 11 - - Resolved demands (54) (9) - - Balance, end of period 14 $ 3 1 $ - GSE Private Label June 30, 2017 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 13 $ 2 - $ - New demands 58 8 - - Loan paydowns/payoffs (1) - - - Resolved demands (54) (8) - - Balance, end of period 16 $ 2 - $ - 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 $ 289 million and $ 312 million at June 30, 2018 and December 31, 2017 , respectively, and the delinquency rates were 2.5 % and 3. 0 % at June 30, 2018 and December 3 1, 2017 , respectively. The Bancorp maintained an estimated credit loss reserve on these loans sold with credit recourse of $ 5 million at both June 30, 2018 and December 31, 2017 recorded in other liabilities in the Condensed Consolidated Balance Sheet s. To determine the credit loss reserve, the Bancorp used an approach that is consistent with its overall approach in estimating credit losses for various categories of residential mortgage loans held in its loan portfolio. Margin accounts FTS, an indirec t wholly-owned subsidiary of the Bancorp, guarantees the collection of all margin account balances held by its brokerage clearing agent for the benefit of its customers. FTS is responsible for payment to its brokerage clearing 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 s held by the brokerage clearing agent were $ 15 million at both June 30, 2018 and De cembe r 31, 2017 . In the event of any customer default, FTS has rights to the underlying collateral provided. Given the existence of the underlying collateral provided and negligible historical credit losses, the Bancorp does not maintain a loss reserve relat ed to the margin accounts. Long- term borrowing obligations The Bancorp had certain fully and unconditionally guaranteed long-term borrowing obligations issued by wholly-owned issuing trust entities of $ 62 million at both June 30, 2018 and December 31, 2017 . Visa litigation The Bancorp, as a member bank of Visa prior to Visa’s reorganization and IPO (the “IPO”) of its Class A common shares (the “Class A Shares”) in 2008, had certain indemnification obligations pursuant to Visa’s certificate of incorporat ion and by-laws and in accordance with their membership agreements. In accordance with Visa’s by-laws prior to the IPO, the Bancorp could have been required to indemnify Visa for the Bancorp’s proportional share of losses based on the pre-IPO membership in terests. As part of its reorganization and IPO, the Bancorp’s indemnification obligation was modified to include only certain known or anticipated litigation (the “Covered Litigation”) as of the date of the restructuring. This modification triggered a requ irement for the Bancorp to recognize a liability equal to the fair value of the indemnification liability. In conjunction with the IPO, the Bancorp received 10.1 million of Visa’s Class B common shares (the “Class B Shares”) based on the Bancorp’s members hip 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 Banc orp’s Class B Shares were classified in other assets and accounted for at their carryover basis of $ 0 . Visa deposited $ 3 billion of the proceeds from the IPO into a litigation escrow account, established for the purpose of funding judgments in, or settleme nts 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 escro w 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 Shar es and entered into a total return swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Class B Shares into Class A Shares. The swap terminates on the later of the third anniversary of Visa’s IPO or the date on which the Covered Litigation is settled. Refer to Note 21 for additional information on the valuation of the swap. The counterparty to the swap as a result of its ownership of the Class B Shares will be impacted by dilutive adjustments to the conversion rate of the Class B Shares into Class A Shares caused by any Covered Litigation losses in excess of the litigation escrow account. If actual judgments in, or settlements of, the Covered Litigation significantly exceed current expectations , then additional funding by Visa of the litigation escrow account and the resulting dilution of the Class B Shares could result in a scenario where the Bancorp’s ultimate exposure associated with the Covered Litigation (the “Visa Litigation Exposure”) exc eeds the value of the Class B Shares owned by the swap counterparty (the “Class B Value”). In the event the Bancorp concludes that it is probable that the Visa Litigation Exposure exceeds the Class B Value, the Bancorp would record a litigation reserve lia bility and a corresponding amount of other noninterest expense for the amount of the excess. Any such litigation reserve liability would be separate and distinct from the fair value derivative liability associated with the total return swap. As of the dat e of the Bancorp’s sale of the Visa Class B Shares and through June 30, 2018 , the Bancorp has concluded that it is not probable that the Visa Litigation Exposure will exceed the Class B value. Based on this determination, upon the sale of Class B Shares, th e Bancorp reversed its net Visa litigation reserve liability and recognized a free-standing derivative liability associated with the total return swap. The fair value of the swap liability was $ 164 million at June 30, 2018 and $ 137 million at December 31, 2017 . Refer to Note 11 and Note 21 for further information. After the Bancorp’s sale of the Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilutive adjustments to the conversion of Class B Shares into Class A Shares, and along with other terms of the total return swap, 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 Q2 2018 600 (a) i (a) The Bancorp made a cash payment of $26 million to the swap counterparty on July 17, 2018 as a result of the Visa escrow funding in the second quarter of 2018. |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 6 Months Ended |
Jun. 30, 2018 | |
Legal And Regulatory Proceedings | |
Legal and Regulatory Proceedings | 16 . Legal and Regulatory Proceedings Litigation Visa/Master C ard Merchant Interchange Litigation In April 2006, the Bancorp was added as a defendant in a consolidated antitrust class action lawsuit originally filed against Visa®, MasterCard® and several other major financial institutions in the United States District Court for the Eastern District of New York (In re: Payment Card Interchange Fee and Merchant Discount Antitrust Litigation) . The plaintiffs, merchants operating commercial businesses throughout the U.S. and trade associations, claimed that the interchange fees charged by card-issuing banks were unreasonable and sought injunctive relief and unspecified damages. In addition to being a named defendant, the Bancorp is also subject to a possible indemnification obligation of Visa as discussed in Note 15 and has also entered into judgment and loss sharing agreements with Visa, MasterCard and certain other named defendants. In October 2012, the parties to the litigation entered into a settlement agreement. On January 14, 2014, the trial court entered a final order approving the class settlement . A number of merchants filed appeals from that approval. The U.S. Court of Appeals for the Second Circuit held a hearing on those appeals and on June 30, 2016, reversed the district court’s approval of the class settlement, remanding the case to the distr ict court for further proceedings. 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. P ursuant to the terms of the overturned settlement agreement, the Bancorp previously paid $ 46 million into a class settlement escrow account. Because the appellate court ruling remands the case to the district court for further proceedings, the ultimate outcome in this matter is uncertain. Approximately 8,000 merchants requeste d 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 rem aining approximately 75% of the settlement funds paid by the Bancorp are m aintained 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 defe ndants alleging similar antitrust violations. These individual federal lawsuits were transferred to the United States District Court for the Eastern District of New York. While t he Bancorp is only named as a defendant in one of the individual federal lawsuits, it may have obligations pursuant to indemnification arrangements and/or the judgment or loss sharing agreements noted above. On June 5, 2018, the defendants in the consolidated class action reached an agreement to settle in principle with the pr oposed plaintiffs’ class seeking monetary damages, with the Bancorp’s portion of the settlement amount (above the existing escrow) within reserves. The settlement in principle is subject to finalization and District Court approval. This settlement does not resolve the claims of the separate proposed plaintiffs’ class seeking injunctive relief or the claims of merchants who are pursuing separate lawsuits. Refer to Note 15 for further information. Klopfenstein v. Fifth Third Bank On August 3, 2012, Willi am 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 A ccess program was misleading. Early Access is a deposit-advance program offered to eligible cus tomers with checking accounts. The plaintiffs sought to represent a nationwide class of customers who used the Early Access program and repaid their cash advance s within 30 days. On October 31, 2012, the case was transferred to the United States District Court for t he Southern District of Ohio. In 2013, four similar putative class actions were filed against Fifth Third Bank in federal courts throughout the country (Lori and Danielle Laskaris v. Fifth Third Bank, Janet Fyock v. Fifth Third Bank, Jesse McQuillen v. Fifth Third Bank, and Brian Harrison v. Fifth Third Bank). Those four lawsuits were transferred to the Southern District of Ohio and consolidated with the original lawsuit as In re: Fifth Third Early A ccess Cash Advance Litigation. On behalf of a putative class, the plaintiffs seek unspecified monetary and statutory damages, injunctive relief, punitive damages, attorney’s fees, and pr e- and post-judgment in terest. On March 30, 2015, the court dismissed all claims alleged in the consolidated l awsuit except a claim under the TILA. On January 10, 2018, plaintiffs filed a motion to hear the immediate appeal of the dismissal of t heir breach of contract claim. On March 28, 2018, the court granted plaintiffs’ motion and stayed the T ILA claim pending that appeal. On April 26, 2018, plaintiffs filed their notice of appeal for the breach of contract claim with the U.S. Court of Appeals for the Sixth Circuit . Helton v. Fifth Third Bank On August 31, 2015, trust beneficiaries filed an action against Fifth Third Bank, as trustee, in the Probate Court for Hamilton County, Ohio (Helen Clarke Helton, et al. v. Fifth Third Bank). The plaintiffs allege breach of the duty to di versify, breach of the duty of impartiality, breach of trust/fiduciary duty, and unjust enrichment, based on Fifth Third’s alleged failure to diversify assets held in two trusts for the plaintiffs’ benefit. The lawsuit seeks over $800 million in alleged da mages, attorney’s fees, removal of Fifth Third as trustee, and injunctive relief. Fifth Third denies all liability. On April 20, 2018, the Court denied plaintiffs’ motion for summary judgment and granted summary judgment to Fifth Third, dismissing the case in its entirety. The plaintiffs filed a notice of appeal on May 5, 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 allegedly was the victim of fraud by a third party. Plaintiff asserts claims for breach of contract and the implied covenant of good faith and fair dealing under Article 4A-202 of the Uniform Commercial Code, with losses allegedly totaling almost $40 million , plus interest . Fifth Third denie s 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. No trial date has been scheduled. Other l itigation The Bancorp and its subsidiaries are not parties to any ot her 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, manageme nt believes that the resulting liability, if any, from these other actions would not have a material effect upon the Bancorp’s consolidated financial position, results of operations or cash flows. Governmental Investigations and Proceedings The Bancorp an d/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 t he FRB, CFPB, SEC, FINRA, U.S. Department of Justice, etc., as well as state and other governmental authorities and self-regulatory bodies regard ing their respective businesses . Additional matters will likely arise from time to time. Any of these matters m ay result in material adverse consequences or reputational harm to the Bancorp, its affiliates and/or their respective directors, officers and other personnel, including adverse judgments, findings, settlements, fines, penalties, orders, injunctions or oth er 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 ti me to time result in civil or criminal referrals to law enforcement. 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 o utcome of claims or litigation and the timing of ultimate resolution 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 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. Any such accrual is adjusted from time to time thereafter as appropriate to reflect changes in circumstances. The Bancorp also determines, when possible (due to the uncertainties described above), estimates of reasonably possible losses or ranges of reasonably possible losses, in excess of amounts accrued. Under U.S. GAAP, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” Thus, references to the upper end 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 th e 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 $ 5 million in excess of amounts accrued, with it also being reasonably possible that no losses will be incurred in these matters. The estimates included in this amount are based on the Bancorp’s analysis of currently available information, and as new information is obtained the Bancorp may change its estimates. For these matters and others where an unfavorable outcome is reasonably possible but not probable, there may be a range of possible losses in excess of the established accrual that cannot be estimated. Based on information currently available, advice of counsel, available insurance coverage and established accruals, the Bancorp believes that the eventual outcome of the act ions against the Bancorp and/or its subsidiaries, including the matters described above, will not, individually or in the aggregate, have a material adverse effect on the Bancorp’s consolidated financial position. However, in the event of unexpected future developments, it is possible that the ultimate resolution of those matters, if unfavorable, may be material to the Bancorp’s results of operations for any particular period, depending, in part, upon the size of the loss or liability imposed and the operat ing results for the applicable period. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions Abstract | |
Related Party Transactions | 17 . Related Party Transactions Vantiv Holding, LLC On January 16, 2018, Vantiv, Inc. completed its previously announced acquisition of Worldpay Group plc. with the resulting combined company named Worldpay, Inc. As a result of this transaction, the Bancorp recognize d a gain of $ 414 million in other noninterest income during the first quarter of 2018 associated with the dilution in its ownership interest in Vantiv Holding, LLC from approximately 8.6% to approximately 4.9%. On June 27, 2018, the Ban corp completed the sale of 5 million shares of Class A common stock of Worldpay, Inc., formerly Vantiv, Inc . The Bancorp had previously received these Class A shares in exchange for Class B Units of Vantiv Holding, LLC. The Bancorp recognized a gain of $ 20 5 million related to the sale. As a result of the sale, the Bancorp beneficially owns approximately 3.3% of Worldpay’s equity through its ownership of approximately 10.3 million Class B Units. The Bancorp’s remaining interest in Vantiv Holding, LLC of $ 426 million continues to be accounted for as an equity method investment given the nature of Vantiv Holding, LLC’s structure as a limited liability company and contractual arrangements between Vantiv Holding, LLC and the Bancorp. GS Holdings In May 2018, Gre enSky, Inc. launched an IPO and issued 38 million shares of Class A common stock for a valuation of $ 23 per share. In connection with this IPO, the Bancorp’s investment in GreenSky, LLC, which was comprised of 252,550 membership units, was converted to 2,5 25,498 units of the newly formed GreenSky Holdings, LLC (“GS Holdings ”), representing a 1.4% interest in GS Holdings. The Bancorp’s units in GS Holdings are exchangeable on a one-to-one basis for Class A common stock or cash after the initial 180-day lock- up period expires. At the time of the IPO, the Bancorp recognized a $ 16 million gain on its investment in GreenSky, LLC, which was included in other noninterest income in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2018. At June 30, 2018, the investment in GS Holdings was $ 53 million, which was included in equity securities in the Condensed Consolidated Balance Sheets. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Taxes | |
Income Taxes | 18 . Income Taxes The applicable income tax expense was $ 107 million and $ 127 million for the three months ended June 30, 2018 and 2017 , respectively, and $ 239 million and $ 218 million for the six months ended June 30, 2018 and 2017 , respectively. The effective tax rates for the three months ended June 30, 2018 and 2017 were 15.5 % and 25.9 %, respectively , an d 15.7 % and 24.5 % for the six m onths ended June 30, 2018 and 2017 , respectively . The decrease in the effective tax rate for both the three and six months ended June 30, 2018 compared to the same period s in the prior year was primarily related to the reduction in the federal stat utory corporate tax rate partially offset by changes to previously deductible items associated with the enactment of the TCJA. While it is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the Bancorp’s uncer tain tax positions could increase or decrease during the next 12 months, the Bancorp believes it is unlikely that its unrecognized tax benefits will change by a material amount during the next 12 months. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | 18 . Accumulated Other Comprehensive Income The tables below present the activity of the components of OCI and AOCI for the three months ended: Total OCI Total AOCI Pretax Tax Net Beginning Net Ending June 30, 2018 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding losses on available-for-sale debt securities arising during period $ (217) 50 (167) Reclassification adjustment for net gains on available-for-sale debt securities included in net income - - - Net unrealized losses on available-for-sale debt securities (217) 50 (167) (318) (167) (485) Unrealized holding gains on cash flow hedge derivatives arising during period 4 (1) 3 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income - - - Net unrealized losses on cash flow hedge derivatives 4 (1) 3 (19) 3 (16) Reclassification of amounts to net periodic benefit costs 1 - 1 Defined benefit pension plans, net 1 - 1 (52) 1 (51) Total $ (212) 49 (163) (389) (163) (552) Total OCI Total AOCI Pretax Tax Net Beginning Net Ending June 30, 2017 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during period $ 148 (55) 93 Reclassification adjustment for net gains on available-for-sale securities included in net income - - - Net unrealized gains on available-for-sale securities 148 (55) 93 117 93 210 Unrealized holding gains on cash flow hedge derivatives arising during period 8 (3) 5 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (6) 2 (4) Net unrealized gains on cash flow hedge derivatives 2 (1) 1 2 1 3 Reclassification of amounts to net periodic benefit costs 2 (1) 1 Defined benefit pension plans, net 2 (1) 1 (51) 1 (50) Total $ 152 (57) 95 68 95 163 The tables below present the activity of the components of OCI and AOCI for the six months ended: Total OCI Total AOCI Pretax Tax Net Beginning Net Ending June 30, 2018 ($ in millions) Activity Effect Activity Balance (a) Activity Balance Unrealized holding losses on available-for-sale debt securities arising during period $ (811) 184 (627) Reclassification adjustment for net losses on available-for-sale debt securities included in net income 9 (2) 7 Net unrealized losses on available-for-sale debt securities (802) 182 (620) 135 (620) (485) Unrealized holding losses on cash flow hedge derivatives arising during period (5) 1 (4) Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (1) - (1) Net unrealized losses on cash flow hedge derivatives (6) 1 (5) (11) (5) (16) Reclassification of amounts to net periodic benefit costs 2 - 2 Defined benefit pension plans, net 2 - 2 (53) 2 (51) Total $ (806) 183 (623) 71 (623) (552) The Bancorp’s AOCI balance was adjusted as of January 1, 2018 to reflect the adoption of new accounting standards. Refer to Note 3 for additional information. Total OCI Total AOCI Pretax Tax Net Beginning Net Ending June 30, 2017 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during period $ 170 (62) 108 Reclassification adjustment for net losses on available-for-sale securities included in net income 2 (1) 1 Net unrealized gains on available-for-sale securities 172 (63) 109 101 109 210 Unrealized holding gains on cash flow hedge derivatives arising during period 3 (1) 2 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (14) 5 (9) Net unrealized gains on cash flow hedge derivatives (11) 4 (7) 10 (7) 3 Reclassification of amounts to net periodic benefit costs 3 (1) 2 Defined benefit pension plans, net 3 (1) 2 (52) 2 (50) Total $ 164 (60) 104 59 104 163 The table below presents reclassifications out of AOCI: For the three months For the six months Condensed Consolidated ended June 30, ended June 30, Components of AOCI: ($ in millions) Statements of Income Caption 2018 2017 2018 2017 Net unrealized losses on available-for-sale debt securities: (b) Net losses included in net income Securities (losses) gains, net $ - - (9) (2) Income before income taxes - - (9) (2) Applicable income tax expense - - 2 1 Net income - - (7) (1) Net unrealized gains on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases - 6 1 14 Income before income taxes - 6 1 14 Applicable income tax expense - (2) - (5) Net income - 4 1 9 Net periodic benefit costs: (b) Amortization of net actuarial loss Employee benefits expense (a) (1) (2) (2) (3) Income before income taxes (1) (2) (2) (3) Applicable income tax expense - 1 - 1 Net income (1) (1) (2) (2) Total reclassifications for the period Net income $ (1) 3 (8) 6 This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2017 for further information. Amounts in parentheses indicate reductions to net income . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share | |
Earnings Per Share | 19 . Earnings Per Share The following tables provide the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share: 2018 2017 For the three months ended June 30, Average Per Share Average Per Share (in millions, except per share data) Income Shares Amount Income Shares Amount Earnings Per Share: Net income available to common shareholders $ 563 344 Less: Income allocated to participating securities 6 4 Net income allocated to common shareholders $ 557 683 0.81 340 741 0.46 Earnings Per Diluted Share: Net income available to common shareholders $ 563 344 Effect of dilutive securities: Stock-based awards - 13 - 11 Net income available to common shareholders plus assumed conversions 563 344 Less: Income allocated to participating securities 6 4 Net income allocated to common shareholders plus assumed conversions $ 557 696 0.80 340 752 0.45 2018 2017 For the six months ended June 30, Average Per Share Average Per Share (in millions, except per share data) Income Shares Amount Income Shares Amount Earnings Per Share: Net income available to common shareholders $ 1,252 634 Less: Income allocated to participating securities 15 7 Net income allocated to common shareholders $ 1,237 687 1.80 627 745 0.84 Earnings Per Diluted Share: Net income available to common shareholders $ 1,252 634 Effect of dilutive securities: Stock-based awards - 13 - 12 Net income available to common shareholders plus assumed conversions 1,252 634 Less: Income allocated to participating securities 14 7 Net income allocated to common shareholders plus assumed conversions $ 1,238 700 1.77 627 757 0.83 Shares are excluded fr om the computation of earnings per diluted share when their inclusion has an anti-dilutive effect on earnings per share. The diluted ear nings per share computation for both the three and six months ended June 30, 2018 excludes 2 million of SARs and an immaterial amount of stock options because their inclusion would have been anti-dilutive. The diluted earnings per share computation for the three and six months ended June 30, 2017 excludes 4 million and 5 million, respecti vely, of SARs and an immaterial amount of stock options because their inclusion would have been anti-dilutive. The diluted earnings per share computation for the three and six months ended June 30, 2017 excludes the impact of the forwa rd contract related to the May 1, 2017 accelerated share repurchase transaction. Based upon the average daily volume weighted-average price of the Bancorp’ s common stock during the second quarter of 2017 , the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward contract as of June 30, 2017 , and thus the impact of the forward contract related to the accelerated share repurchase transaction would have been anti-dilutive to earnings per share. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements | |
Fair Value Measurements | 21 . Fair Value Measurements The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gi ves the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument’s categorization within the fair value hierarchy is based upon the lo west level of input that is significant to the instrument’s fair value measurement. For more information regarding the fair value hierarchy, refer to Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Fo rm 10-K for the year ended December 31, 2017 . Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables summarize assets and liabilities measured at fair value on a recurring basis as of: Fair Value Measurements Using June 30, 2018 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Assets: Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 96 - - 96 Obligations of states and political subdivisions securities - 35 - 35 Mortgage-backed securities: Agency residential mortgage-backed securities - 16,094 - 16,094 Agency commercial mortgage-backed securities - 10,038 - 10,038 Non-agency commercial mortgage-backed securities - 3,086 - 3,086 Asset-backed securities and other debt securities - 1,998 - 1,998 Available-for-sale debt and other securities (a) 96 31,251 - 31,347 Trading debt securities: U.S. Treasury and federal agencies securities 10 9 - 19 Obligations of states and political subdivisions securities - 58 - 58 Agency residential mortgage-backed securities - 75 - 75 Asset-backed securities and other debt securities - 128 - 128 Trading debt securities 10 270 - 280 Equity securities 474 1 - 475 Residential mortgage loans held for sale - 658 - 658 Residential mortgage loans (b) - - 162 162 Commercial loans held for sale - 8 - 8 MSRs - - 959 959 Derivative assets: Interest rate contracts - 529 11 540 Foreign exchange contracts - 121 - 121 Commodity contracts 34 250 - 284 Derivative assets (d) 34 900 11 945 Total assets $ 614 33,088 1,132 34,834 Liabilities: Derivative liabilities: Interest rate contracts $ 4 305 7 316 Foreign exchange contracts - 109 - 109 Equity contracts - - 164 164 Commodity contracts 95 175 - 270 Derivative liabilities (e) 99 589 171 859 Short positions (e) 88 51 - 139 Total liabilities $ 187 640 171 998 Excludes FHLB, FRB and DTCC restricted stock holdings totaling $ 248 , $ 364 and $ 2 , respectively, at June 30, 2018 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. During both the three and six months ended June 30, 2018 , no assets or liabilities were transferred between Level 1 and Level 2. Included in other assets in the Condensed Consolidated Balance Sheets. Included in other liabilities in the Condensed Consolidat ed Balance Sheets. Fair Value Measurements Using December 31, 2017 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Assets: Available-for-sale debt 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 Available-for-sale debt and other securities (a) 98 31,041 - 31,139 Trading debt securities: U.S. Treasury and federal agencies securities 1 11 - 12 Obligations of states and political subdivisions securities - 22 - 22 Residential mortgage-backed securities - 395 - 395 Asset-backed securities and other debt securities - 63 - 63 Trading debt securities 1 491 - 492 Equity securities 438 1 439 Residential mortgage loans held for sale - 399 - 399 Residential mortgage loans (b) - - 137 137 MSRs - - 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 Condensed Consolidated Balance Sheets. Included in other liabilities in the Condensed Consolidat ed Balance Sheets. 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 debt and other securities, trading debt securities and equity securities Where quoted prices are available in an active market, securities are classified within Leve l 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities and eq uity securities . If quoted 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 may include federal agencies securities, obligations of states and politic al subdivisions securities, agency and non-agency residential mortgage-backed securities, agency and non-agency commercial mortgage-backed securities , asset - backed securities and other debt securities and equity securities . These securities are generally v alued using a market approach based on observable prices of securities with similar characteristics. Residential mortgage loans held for sale For residential mortgage loans held for sale for which the fair value election has been made, fair value is estimated based upon 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 marke t conditions. The anticipated portfolio composition includes the effect of interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. Residential mortgage loa ns held for sale that are valued based on mortgage-backed securities prices are classified within Level 2 of the valuation hierarchy as the valuation is based on external pricing for similar instruments. ARM loans classified as held for sale are also class ified 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. Commercial lo ans held for sale For commercial loans held for sale for which the fair value election has been made, fair value is estimated based upon quoted prices of identical or similar assets in an active market, which are reviewed and approved by the Market Risk de partment, which reports to the Bancorp’s Chief Risk Officer . These loans are generally valued using a market approach based on observable prices and are classified within Level 2 of the valuation hierarchy. Residential mortgage loans Residential mortgage loans held for sale that are reclassified to held for investment are transferred from Level 2 to Level 3 of the fair value hierarchy. It is the Bancorp’s policy to value any transfers between levels of the fair value hierarchy based on end of period fair values. For 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 department, which reports to the Bancorp’s Head of the Consumer Bank, in conjunction with the Consumer Credit Risk department, which reports to the B ancorp’s Chief Risk Officer, are responsible for determining the valuation methodology for residenti al mortgage loans held for investment. The Secondary Marketing department reviews loss severity assumptions quarterly to determine if adjustments are necessary based on decreases in observable housing market data. This group also reviews trades in comparab le 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 lo ss severities based on underlying collateral values. MSRs MSRs do not trade in an active, open market with readily observable prices. While sales of MSRs do occur, the precise terms and conditions typically are not readily available. Accordingly, the Bancorp estimates the fair value of MSRs using internal OAS models with certain unobservable inputs, primarily prepayment speed assumptions, OAS and weighted-average lives, resulting in a classification within Level 3 of the valuation hierarchy. Refer to Note 10 for further information on the assumptions used in the valuation of the Bancorp’s MSRs. The Secondary Marketing department and Treasury department are responsible for determining the valuation methodology for MSRs. Representatives from Sec ondary 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 ord er to assess the reasonableness of the internal OAS model. Additionally, the Bancorp participates in peer surveys that provide additional confirmation of the reasonableness of key assumptions utilized in the MSR valuation process and the resulting MSR pric es. 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 basi c and structured interest rate, foreign exchange and commodity swaps and options. Derivatives that are valued based upon models with significant unobservable market parameters are classified within Level 3 of the valuation hierarchy. At June 30, 2018 and De cember 31, 2017 , derivatives classified as Level 3, which are valued using models containing unobservable inputs, consisted primarily of a total return swap associated with the Bancorp’s sa le of Visa, Inc. Class B Shares. Level 3 derivatives also includ e IRLCs, which utilize internally generated loan closing rate assumptions as a significant unobservable input in the valuation process. Under the terms of the total return swap, the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Visa, Inc. Class B Shares into Class A Shares. Additionally, the Bancorp will make a quarterly payment based on Visa’s stock price and the conversion rate of the Visa, Inc. Class B Shares into Class A Shares until the date on which t he Covered Litigation is settled. The fair value of the total return swap was calculated using a DCF model based on unobservable inputs consisting of management’s estimate of the probability of certain litigation scenarios, the timing of the resolution of the Covered Litigation and Visa litigation loss estimates in excess, or shortfall, of the Bancorp’s proportional share of escrow funds. An increase in the loss estimate or a delay in the resolution of the Covered Litigation would result in an increase i n the fair value of the derivative liability; conversely, a decrease in the loss estimate or an acceleration of the resolution of the Covered Litigation would result in a decrease in the fair value of the derivative liability. The Accounting and Treasury d epartments, both of which report to the Bancorp’s Chief Financial Officer, determined the valuation methodology for the total return swap. Accounting and Treasury review the changes in fair value on a quarterly basis for reasonableness based on Visa stock price changes, litigation contingencies and escrow funding. The net asset fair value of the IRLCs at June 30, 2018 was $ 11 million. Immediate decreases in current interest rates of 25 bps and 50 bps would result in increases in the fair value of the IRLCs of approximately $ 6 million and $ 11 million, respectively. Immediate increases of current interest rates of 25 bps and 50 bps would result in decreases in the fair value of the IRLCs of approximately $ 6 million and $ 1 2 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, respectively, and the increase in fair value due to immediate 10% and 20% favorable changes in the assum ed loan closing rates would be approximately $ 1 million and $ 2 million, respectively. These sensitivities are hypothetical and should be used with caution, as changes in fair value based on a variation in assumptions typically cannot be extrapolated becaus e the relationship of the change in assumptions to the change in fair value may not be linear. The Consumer Line of Business Finance department, which reports to the Bancorp’s Chief Financial Officer, and the aforementioned Secondary Marketing departmen t are responsible for determining the valuation methodology for IRLCs. Secondary Marketing, in conjunction with a third party valuation provider, periodically review loan closing rate assumptions and recent loan sales to determine if adjustments are needed for current market conditions not reflected in historical data. Short positions Where quoted prices are available in an active market, s hort positions are classified within Leve l 1 of the valuation hierarchy . If quoted market prices are not available, then fair values are estimated using pricing models, quoted prices of securities with similar characteristics or DCFs and therefore are classified within Level 2 of the valuation hierarchy. The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Mortgage Derivatives, Equity Total For the three months ended June 30, 2018 ($ in millions) Loans MSRs Net (a) Derivatives Fair Value Balance, beginning of period $ 136 926 4 (165) 901 Total (losses) gains (realized/unrealized): Included in earnings (1) (13) 22 (10) (2) Purchases/originations - 46 (1) - 45 Settlements (5) - (21) 11 (15) Transfers into Level 3 (b) 32 - - - 32 Balance, end of period $ 162 959 4 (164) 961 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 June 30, 2018 (c) $ (1) (13) 12 (10) (12) Net interest rate derivatives include derivative assets and liabilities of $ 11 and $ 7 , respectively , as of June 30, 2018 . Includes certain residential mortgage loans originated as held for sale that were transferred to held for invest ment. Includes interest income and expense . Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Mortgage Derivatives, Derivatives, Total For the three months ended June 30, 2017 ($ in millions) Loans MSRs Net (a) Net Fair Value Balance, beginning of period $ 141 776 11 (97) 831 Total (losses) gains (realized/unrealized): Included in earnings 1 (47) 26 (9) (29) Purchases/originations - 120 - - 120 Settlements (4) - (28) 8 (24) Transfers into Level 3 (b) 4 - - - 4 Balance, end of period $ 142 849 9 (98) 902 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at June 30, 2017 (c) $ 1 (47) 14 (9) (41) Net interest rate derivatives include derivative assets and liabilities of $14 and $5 , respectively, as of June 30, 2017 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Mortgage Derivatives, Equity Total For the six months ended June 30, 2018 ($ in millions) Loans MSRs (d) Net (a) Derivatives Fair Value Balance, beginning of period $ 137 858 3 (137) 861 Total (losses) gains (realized/unrealized): Included in earnings (4) 16 36 (49) (1) Purchases/originations - 85 (4) - 81 Settlements (8) - (31) 22 (17) Transfers into Level 3 (b) 37 - - - 37 Balance, end of period $ 162 959 4 (164) 961 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2018 (c) $ (4) 16 12 (49) (25) Net interest rate derivatives include derivative assets and liabilities of $ 11 and $ 7 , respectively, as of June 30, 2018 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Incl udes interest income and expense . Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Mortgage Derivatives, Equity Total For the six months ended June 30, 2017 ($ in millions) Loans MSRs Net (a) Derivatives (a) Fair Value Balance, beginning of period $ 143 744 8 (91) 804 Total (losses) gains (realized/unrealized): Included in earnings 1 (70) 49 (22) (42) Purchases/originations - 175 (1) - 174 Settlements (9) - (47) 15 (41) Transfers into Level 3 (b) 7 - - - 7 Balance, end of period $ 142 849 9 (98) 902 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2017 (c) $ 1 (70) 15 (22) (76) Net interest rate derivatives include derivative assets and liabilities of $ 14 and $ 5 , respectively, as of June 30, 2017 . Includes certain residential mortgage loans originated as held for sale that were transferred to held for invest ment. Includes interest income and expense. The total losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2018 2017 2018 2017 Mortgage banking net revenue $ 8 (21) 47 (21) Corporate banking revenue - 1 1 1 Other noninterest income (10) (9) (49) (22) Total losses $ (2) (29) (1) (42) The total losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at June 30, 2018 and 2017 were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2018 2017 2018 2017 Mortgage banking net revenue $ (2) (33) 23 (55) Corporate banking revenue - 1 1 1 Other noninterest income (10) (9) (49) (22) Total losses $ (12) (41) (25) (76) The following tables present information as of June 30, 2018 and 2017 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured at fair value on a recurring basis: As of June 30, 2018 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Residential mortgage loans $ 162 Loss rate model Interest rate risk factor (13.3) - 11.9% -0.1% Credit risk factor 0 - 40.3% 0.7% MSRs 959 Discounted cash flow Prepayment speed 0.5-97.0% (Fixed) 9.5% (Adjustable) 23.6% OAS spread (bps) 461-1,513 (Fixed) 543 (Adjustable) 817 IRLCs, net 11 Discounted cash flow Loan closing rates 12.2 - 96.6% 80.9% Swap associated with the sale of Visa, Inc. (164) Discounted cash flow Timing of the resolution 1/31/2021 - 9/6/2021 Class B Shares of the Covered Litigation 11/30/2023 As of June 30, 2017 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Residential mortgage loans $ 142 Loss rate model Interest rate risk factor (9.6) - 15.0% 2.9% Credit risk factor 0 - 46.2% 1.0% MSRs 849 Discounted cash flow Prepayment speed 1.2-100% (Fixed) 11.5% (Adjustable) 24.8% OAS spread (bps) 430-1,515 (Fixed) 530 (Adjustable) 773 IRLCs, net 14 Discounted cash flow Loan closing rates 9.6- 96.8% 73.0% Swap associated with the sale of Visa, Inc. (98) Discounted cash flow Timing of the resolution 6/30/2019 - 9/30/2020 Class B Shares of the Covered Litigation 12/31/2022 Assets and Liabilities Measured at F air Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of June 30, 2018 and 2017 and for which a nonrecurring fair value adjustment was recorded during the three and six months ended June 30, 2018 and 2017, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period: Fair Value Measurements Using Total (Losses) Gains Total (Losses) Gains For the three months ended June 30, 2018 For the six months ended June 30, 2018 As of June 30, 2018 ($ in millions) Level 1 Level 2 Level 3 Total Commercial loans held for sale $ - - 4 4 - (1) Commercial and industrial loans - - 161 161 14 (30) Commercial mortgage loans - - 3 3 1 6 Commercial leases - - 14 14 (9) (10) OREO - - 17 17 (1) (4) Bank premises and equipment - - 37 37 (33) (41) Operating lease equipment - - 10 10 (1) (3) Private equity investments - 50 31 81 11 30 Total $ - 50 277 327 (18) (53) Fair Value Measurements Using Total Losses Total Losses For the three months For the six months As of June 30, 2017 ($ in millions) Level 1 Level 2 Level 3 Total ended June 30, 2017 ended June 30, 2017 Commercial loans held for sale $ - - 45 45 (13) (32) Commercial and industrial loans - - 405 405 (32) (58) Commercial mortgage loans - - 26 26 (9) (11) Commercial leases - - 3 3 (1) (2) OREO - - 11 11 (1) (5) Bank premises and equipment - - 16 16 (2) (5) Operating lease equipment - - 56 56 - (20) Total $ - - 562 562 (58) (133) The following tables present information as of June 30, 2018 and 2017 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis: As of June 30, 2018 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 4 Appraised value Appraised value NM NM Costs to sell NM 10.0% Commercial and industrial loans 161 Appraised value Collateral value NM NM Commercial mortgage loans 3 Appraised value Collateral value NM NM Commercial leases 14 Appraised value Collateral value NM NM OREO 17 Appraised value Appraised value NM NM Bank premises and equipment 37 Appraised value Appraised value NM NM Operating lease equipment 10 Appraised value Appraised value NM NM Private equity investments 28 Liquidity discount applied Liquidity discount 0-43.0% 12.9% to fund's net asset value 3 Comparable company analysis Market comparable transactions NM NM As of June 30, 2017 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 45 Appraised value Appraised value NM NM Costs to sell NM 10.0% Commercial and industrial loans 405 Appraised value Collateral value NM NM Commercial mortgage loans 26 Appraised value Collateral value NM NM Commercial leases 3 Appraised value Collateral value NM NM OREO 11 Appraised value Appraised value NM NM Bank premises and equipment 16 Appraised value Appraised value NM NM Operating lease equipment 56 Appraised value Appraised value NM NM Commercial loans held for sale During the three and six months e nded June 30, 2018 , the Bancorp transferred an immaterial amount and $ 1 million , respectively, of commercial loans from the portfolio to loans held for sale that upon transfer were measured at lower of cost or fair value. During the three and six months e nded June 30, 2017 , the Bancorp transferred $ 57 million and $ 75 million , respectively, o f commercial loans from the portfolio to loans held for sale that upon transfer were measured at lower of cost or fair value . These loans had an immaterial amount of fair value adjustments during the three and six months ended June 30, 2018 and $ 13 m illion and $ 30 million of fair value adjustments during the three and six months ended June 30, 2017 , respectively . The fair value adjustments were generally based on appraisals of the underlying collateral and were, therefore, classified within Lev el 3 of the valuation hierarchy. Additionally, fair value adjustments on existing loans held for sale were immaterial for both the three months ended June 30, 2018 and 2017 and $ 1 million and immaterial for the six months ended June 30, 2018 and 2017 , respectively . The fair value adjustments were also based on appraisals of the underlying collateral . T he Bancorp recognized an immaterial amount of gains and losses on the sale of commercial loans held for sale during both the three and six m onths end ed June 30, 2018 . The Bancorp recognized an immaterial amount of losses and $ 2 million in losses on the sale of commerc ial loans held for sale for the three and six months end ed June 30, 2017 , respectively . The Accounting department determ ines 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. Quarter ly, appraisals approaching a year old are updated and the Real Estate Valuation group, which reports to the Bancorp’s Chief Risk Officer, in conjunction with the Commercial Line of Business , review s the third party appraisals for reasonableness. Additionally, the Commercial Line of Business Finance department, which reports to the Bancorp’s Chief Financial Officer, in conjunction with the Accounting department reviews all loan appraisal values, carry values and vintages. Commercial loans held for investment During the three and six months ended June 30, 2018 and 2017 , the Bancorp recorded nonrecurring impairment adjustments to certain commercial and industrial l oans, commercial mortgage lo ans and commercial leases held for investment. Larger commercial loans included within aggregate borrower relationship balances exceeding $ 1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Ba ncorp considers the current value of collateral, credit quality of any guarantees, the guarantor’s liquidity and willingness to cooperate, the loan structure and other factors when evaluating whether an individual loan is impaired. When the loan is collate ral 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 t he fair value, an impairment loss is recognized. The fair values and recognized impairment losses are reflected in the previous tables. Commercial Credit Risk, which reports to the Bancorp’s Chief Risk Officer, is responsible for preparing and reviewing th e fair value estimates for commercial loans held for investment. OREO During the three and six months ended June 30, 2018 and 2017 , the Bancorp recorded nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO and measured at the lower of carrying amount or fair value. These nonrecurring losses were primarily due to declines in real estate values of the properties recorded in OREO. These losses included $ 1 million and $ 2 million in losses, rec orded as charge-offs on new OREO properties transferred from loans during the three and six months ended June 30, 2018 , respectively, and $ 1 million and $ 3 million for the three and six months ended June 30, 2017 , respectively. These losses al so included an immaterial amount of losses and $ 2 million in losses for the three and six months ended June 30, 2018 , respectively, and an immaterial amount of losses and $ 2 million in losses for the three and six months ended June 30, 2017 , r espectively, recorded as negative fair value adjustments on OREO in other noninterest expense in the Condensed Consolidated Statements of Income subsequent to their transfer from loans. As discussed in the following paragraphs, the fair value amounts are g enerally 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. The previous tabl es reflect the fair value measurements of the properties before deducting the estimated costs to sell. The Real Estate Valuation department is solely responsible for managing the appraisal process and evaluating the appraisal for commercial properties tra nsferred 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 esta te 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 initial interior inspectio ns 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 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. These properties were written down to their lower of cost or market values. At least annuall y 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 Acc |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting | |
Business Segments | 22 . Business Segments The Bancorp reports on four business segments: Commercial Banking, Branch Banking, Consumer Lending and Wealth and Asset Management. Results of the Bancorp’s business segments are presented based on its management structure and management accounting practices. The structure and accounting practices are specific to the Bancorp; therefore, the financial results of the Bancorp’s business segments are not necessarily comparable with similar information f or other financial institutions. The Bancorp refines its methodologies from time to time as management’s accounting practices and businesses change . The Bancorp manages interest rate risk centrally at the corporate level. By employing an FTP methodology, the business segments are insulated from most benchmark interest rate volatility, enabling them to focus on serving customers through the origination of loans and acceptance of deposits. The FTP methodology assigns charge rates and credit rates to classes of assets and liabilities, respectively, based on the estimated amount and timing of the 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 se gment so its resulting net interest income is insulated from future changes in benchmark interest rates. The Bancorp’s FTP methodology also allocates the contribution to net interest income of the asset-generating and deposit-providing businesses on a dura tion-adjusted basis to better attribute the driver of the performance. As the asset and liability durations are not perfectly matched, the residual impact of the FTP methodology is captured in General Corporate and Other. The charge and credit rates are de termined using the FTP rate curve, which is based on an estimate of Fifth Third’s marginal borrowing cost in the wholesale funding markets. The FTP curve is constructed using the U.S. swap curve, brokered CD pricing and unsecured debt pricing. The Bancorp adjusts the FTP charge and credit rates as dictated by changes in interest rates for various interest-earning assets and interest-bearing liabilities and by the review of behavioral assumptions, such as prepayment rates on interest-earning assets and the estimated durations for indeterminate-lived deposits. Key assumptions, including the credit rates provided for deposit accounts, are reviewed annually. Credit rates for deposit products and charge rates for loan products may be reset more frequently in res ponse to changes in market conditions. The credit rates for several deposit products were reset January 1, 2018 to reflect the current market rates and updated market assumptions . These rates were generally higher than those in place during 2017 , thu s net interest income for deposit-providing business segments was positively impacted during 2018 . 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 charge increased for asset-generating business segments during 2018 . T he Bancorp ’s methodology for allocating provision for loan and lease losses expense to the business se gments include s charges or benefits associated with changes in criticized commercial loan levels in addition to actual net charge-offs experienced by the loans and leases owned by e ach business segment. Provision for loan and lease losses expense attributable to loan and lease growth and changes in ALLL factors is captured in General Corporate and Other. The financial results of the business segments include allocations for shared services and headquarters expenses. Additionally, the business segments form synergies by ta king advantage of cr oss-sell opportunities and funding operations by accessing the capital markets as a collective unit. The results of operations and financial position for the three and six months ended June 30, 2017 were adjusted to reflect changes in internal expense allocation methodologies. The following is a d escription of each of the Bancorp’s business segments and the products and services they provide to their respective client bases . Commercial Banking o ffers credit intermediation, cash manag ement and financial services to large and middle-market businesses and government and professional customers. In addition to the traditional lending and depository offerings, Commercial Banking products and services include global cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing and syndicated finance. Branch Banking p rovides a full range of deposit and loan and lease products to individuals and small businesses through 1,158 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. Cons umer Lending includes the Bancorp’s residential mortgage, home equity, automobile and other indirect lending activities. Direct lending activities include the origination, retention and servicing of residential mortgage and home equity loans or lines of cr edit, sales and securitizations of those loans, po ols of loans or lines of credit and all associated hedging activities. Indirect lending activities include extending loans to consumers through correspondent lenders and automobile dealers. Wealth and Asset Management provides a full range of investment alternatives for individuals, companies and not-for-profit organizations. Wealth and Asset Management is made up of f ive main businesses: FTS, an indirect wholly-owned subsidiary of the Bancorp; ClearAr c Capital, Inc. , an indirect wholly-owned subsidiary of the Bancorp ; Fifth Third 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 br okerage services to individual clients and broker-dealer services to the institutional marketplace . ClearArc Capital, Inc. provides asset m anagement services. Fifth Third Insurance Agency, Inc. assists clients with their financial and risk management needs. Fifth Third Private Bank offers holistic strategies to aff luent clients in wealth planning, investing, insurance and wealth protection. Fifth Third Institutional Services provides advisory services for institutional clients inclu ding states and municipalities. The following tables present the results of operations and assets by business segment for the three months ended: Wealth General Commercial Branch Consumer and Asset Corporate June 30, 2018 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 427 499 59 45 (10) - 1,020 Provision for (benefit from) loan and lease losses (10) 47 8 (11) (1) - 33 Net interest income after provision for loan and lease losses 437 452 51 56 (9) - 987 Noninterest income: Service charges on deposits 70 67 - - - - 137 Wealth and asset management revenue 1 37 - 104 - (34) (a) 108 Corporate banking revenue 119 1 - - - - 120 Card and processing revenue 14 69 - 1 - - 84 Mortgage banking net revenue - 1 52 - - - 53 Other noninterest income (b) 25 (8) 4 4 225 - 250 Securities losses, net - - - - (5) - (5) Securities losses, net - non-qualifying hedges on MSRs - - (4) - - - (4) Total noninterest income 229 167 52 109 220 (34) 743 Noninterest expense: Salaries, wages and incentives 71 111 42 43 204 - 471 Employee benefits 9 26 10 7 26 - 78 Net occupancy expense 6 44 3 3 18 - 74 Technology and communications 2 1 1 - 63 - 67 Equipment expense 6 12 - - 12 - 30 Card and processing expense 1 30 - - (1) - 30 Other noninterest expense 263 208 51 70 (271) (34) 287 Total noninterest expense 358 432 107 123 51 (34) 1,037 Income (loss) before income taxes 308 187 (4) 42 160 - 693 Applicable income tax expense (benefit) 19 40 (1) 9 40 - 107 Net income (loss) 289 147 (3) 33 120 - 586 Total goodwill $ 630 1,655 - 177 - - 2,462 Total assets $ 58,763 60,281 22,128 9,270 (9,747) (c) - 140,695 Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income. Includes impairment charges of $ 33 for branches and land. For more information refer to Note 7 and Note 21 . Includes bank premises and equipment of $ 37 classified as held for sale. For more information refer to Note 7 . Includes bank premises and equipment of $ 37 classified as held for sale. For more information refer to Note 7 . Wealth General Commercial Branch Consumer and Asset Corporate June 30, 2017 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 415 437 59 37 (9) - 939 Provision for (benefit from) loan and lease losses 22 39 7 (1) (15) - 52 Net interest income after provision for loan and lease losses 393 398 52 38 6 - 887 Noninterest income: Service charges on deposits 73 66 - - - - 139 Wealth and asset management revenue 1 35 - 100 - (33) (a) 103 Corporate banking revenue 100 1 - - - - 101 Card and processing revenue 14 64 - 1 - - 79 Mortgage banking net revenue - 1 54 - - - 55 Other noninterest income (b) 40 22 6 - 17 - 85 Securities gains, net - non-qualifying hedges on MSRs - - 2 - - - 2 Total noninterest income 228 189 62 101 17 (33) 564 Noninterest expense: Salaries, wages and incentives 60 104 40 37 156 - 397 Employee benefits 9 26 10 7 34 - 86 Net occupancy expense 7 43 3 2 15 - 70 Technology and communications 2 1 1 - 53 - 57 Equipment expense 4 13 - - 12 - 29 Card and processing expense 1 33 - - (1) - 33 Other noninterest expense 247 196 55 67 (247) (33) 285 Total noninterest expense 330 416 109 113 22 (33) 957 Income before income taxes 291 171 5 26 1 - 494 Applicable income tax expense 54 60 2 9 2 - 127 Net income (loss) 237 111 3 17 (1) - 367 Total goodwill $ 613 1,655 - 155 - - 2,423 Total assets $ 57,766 57,396 22,442 8,238 (4,775) (c) - 141,067 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Condensed Consolidated Statements of Income. Includes impairment charges of $ 2 for branches and land. For more information refer to Note 7 and Note 21 . Includes bank premises and equipment of $ 41 classified as held for sale. For more information refer to Note 7 . The following tables present the results of operations and assets by business segment for the six months ended: Wealth General Commercial Branch Consumer and Asset Corporate June 30, 2018 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 846 965 118 88 (1) - 2,016 Provision for (benefit from) loan and lease losses (29) 90 20 5 (30) - 56 Net interest income after provision for loan and lease losses 875 875 98 83 29 - 1,960 Noninterest income: Service charges on deposits 139 134 - 1 1 - 275 Wealth and asset management revenue 2 74 - 214 - (69) (a) 221 Corporate banking revenue 205 (c) 2 - 1 - - 208 Card and processing revenue 28 133 - 2 - - 163 Mortgage banking net revenue - 3 106 - - - 109 Other noninterest income (b) 73 7 7 9 612 - 708 Securities losses, net - - - - (15) - (15) Securities losses, net - non-qualifying hedges on MSRs - - (17) - - - (17) Total noninterest income 447 353 96 227 598 (69) 1,652 Noninterest expense: Salaries, wages and incentives 141 220 82 87 388 - 918 Employee benefits 27 53 20 17 71 - 188 Net occupancy expense 13 88 5 6 37 - 149 Technology and communications 4 3 2 - 126 - 135 Equipment expense 11 25 - - 25 - 61 Card and processing expense 2 59 - - (1) - 60 Other noninterest expense 545 423 102 144 (573) (69) 572 Total noninterest expense 743 871 211 254 73 (69) 2,083 Income (loss) before income taxes 579 357 (17) 56 554 - 1,529 Applicable income tax expense (benefit) 32 75 (3) 12 123 - 239 Net income (loss) 547 282 (14) 44 431 - 1,290 Total goodwill $ 630 1,655 - 177 - - 2,462 Total assets $ 58,763 60,281 22,128 9,270 (9,747) (d) - 140,695 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Condensed Consolidated Statements of Income. Includes impairment charges of $ 41 for branches and land. For more information refer to Note 7 and Note 21 . Includes impairment charges of $ 2 for operating lease equipment. For more information refer to Note 21 . Includes bank premises and equipment of $ 37 classified as held for sale. For more information refer to Note 7 . Wealth General Commercial Branch Consumer and Asset Corporate June 30, 2017 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 839 867 120 75 (29) - 1,872 Provision for (benefit from) loan and lease losses 29 80 22 3 (8) - 126 Net interest income after provision for loan and lease losses 810 787 98 72 (21) - 1,746 Total noninterest income Service charges on deposits 146 130 - 1 - - 277 Wealth and asset management revenue 2 71 - 205 - (67) (a) 211 Corporate banking revenue 173 (c) 3 - - (1) - 175 Card and processing revenue 28 122 - 3 - - 153 Mortgage banking net revenue - 3 105 - - - 108 Other noninterest income (b) 80 45 9 - 26 - 160 Securities gains, net - - - - 1 - 1 Securities gains, net - non-qualifying hedges on MSRs - - 2 - - - 2 Total noninterest income 429 374 116 209 26 (67) 1,087 Noninterest expense Salaries, wages and incentives 127 208 77 76 320 - 808 Employee benefits 27 53 20 16 80 - 196 Net occupancy expense 13 90 5 5 35 - 148 Technology and communications 5 2 1 - 108 - 116 Equipment expense 8 26 - - 23 - 57 Card and processing expense 2 62 - - (1) - 63 Other noninterest expense 507 388 110 134 (517) (67) 555 Total noninterest expense 689 829 213 231 48 (67) 1,943 Income (loss) before income taxes 550 332 1 50 (43) - 890 Applicable income tax expense (benefit) 97 117 - 17 (13) - 218 Net income (loss) 453 215 1 33 (30) - 672 Total goodwill $ 613 1,655 - 155 - - 2,423 Total assets $ 57,766 57,396 22,442 8,238 (4,775) (d) - 141,067 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Condensed Consolidated Statements of Income. Includes impairment charge s of $ 5 for branches and land. For more information refer to Note 7 and Note 21 . Includes impairment charges of $ 31 for operating lease equipment. For more information refer to Note 21 . Includes bank premises and equipment of $ 41 classified as held for sale. For more information refer to Note 7 . |
Pending Acquisition
Pending Acquisition | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations | |
Pending Acquisition | 23 . Pending Acquisition On May 21, 2018, Fifth Third Bancorp and MB Fi nancial, Inc. jointly announced the signing of a definitive merger agreement under which , on the terms and conditions set forth therein, MB Financial, Inc. (“MB Financial”) will merge with a subsidiary of Fifth Third Bancorp in a transaction valued at approximately $ 4.7 billion b ased on the closin g price of Fifth Third’s common shares on May 18, 2018. MB Financial is headquartered in Chicago, Illinois with reported assets of appr oximately $ 20 billion as of March 31, 2018 and is the holding company of MB Financial Bank, N.A. In conjunction with the closing of the transaction, two members of MB Financial’s Board of Directors are expected to join the Fifth Third Bancorp Board. Under the terms of the agreement, common shareholders of MB Financial will receive 1.45 shares of Fifth Third common stock and $ 5.54 in cash for each share of MB Financial common stock, which had an implied value of $ 54.20 per share of MB Financial common stock , based on the closing price of Fifth Third’s common shares on May 18, 2018. The exchange ratio of Fifth Third common shares for MB Financial common shares is fixed and will not adjust based on changes in Fifth Third’s share trading price. The transacti on is subject to the satisfaction of all customary closing conditions , including regulatory approval as well as the approval of MB Financial shareholders. The transaction is expected to close in the first quarter of 2019. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Event | |
Subsequent Event | 24 . Subsequent Event s On July 26 , 2018 the Bank issued and sold $ 1.55 billion in aggregate principal amount of unsecured senior bank notes . The bank notes consisted of $ 500 million of 3.35% senior fixed-rate notes , with a maturity of three years, due on July 26, 2021; $ 300 million of senior floating-rate notes at three-month LIBOR plus 44 bps , with a maturity of three years, due on July 26, 2021; and $ 750 million of 3.95 % senior fixed-rate notes , with a maturity of seven years, due July 28, 2025. The Bank entered into interest rate swap s to convert the fixed-rate notes due in 2021 and 2025 to a floating-rate, which resulted in an effective interest rate o f one-month LIBOR plus 53 bps and 104 bps, respectively . These bank notes will be redeemable by t he 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. Between July 20 , 2018 and August 2 , 2018, the Bancorp entered into repurchase transactions of 16,945,020 shares, or approximately $ 500 million, of its outstanding common stock through the open marke t , which settled between July 24, 2018 and August 6, 2018. |
Accounting and Reporting Deve33
Accounting and Reporting Developments (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Policy Text Block [Abstract] | |
Revenue Recognition | In conjunction with adoption of ASU 2014-09, the Bancorp is providing the following additional disclosures about its significant accounting and reporting policies related to revenue recognition. Revenue Recognition The Bancorp generally measures revenue based on the amount of consideration the Bancorp expects to be entitled for the transfer of goods or services to a customer, then recognizes this revenue when or as the Bancorp satisfies its performance obligations under the contract, except in tr ansactions where U.S. GAAP provides other applicable guidance. When the amount of consideration is variable, the Bancorp will only recognize revenue to the extent that it is probable that the cumulative amount recognized will not be subject to a significan t reversal in the future. Substantially all of the Bancorp’s contracts with customers have expected durations of one year or less and payments are typically due when or as the services are rendered or shortly thereafter. When third parties are involved in providing goods or services to customers, the Bancorp recognizes revenue on a gross basis when it has control over those goods or services prior to transfer to the customer; otherwise, revenue is recognized for the net amount of any fee or commission. The Bancorp excludes sales taxes from the recognition of revenue and recognizes the incremental costs of obtaining contracts as an expense if the period of amortization for those costs would be one year or less. The Bancorp’s interest income is derived from l oans and leases, securities and other short-term investments. The Bancorp recognizes interest income in accordance with the applicable guidance in U.S. GAAP for these assets. Refer to the Portfolio Loans and Leases and Securities sections in Note 1 of the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2017 for further information. The following provides additional information about the components of noninterest income: Service charges on deposits consist primarily of treasury managemen t fees for commercial clients, monthly service charges on consumer deposit accounts, transaction-based fees (such as overdraft fees and wire transfer fees), and other deposit account-related charges. The Bancorp’s performance obligations for treasury manag ement fees and consumer deposit account service charges are typically satisfied over time while performance obligations for transaction-based fees are typically satisfied at a point in time. Revenues are recognized on an accrual basis when or as the servic es are provided to the customer, net of applicable discounts, waivers and reversals. Payments are typically collected from customers directly from the related deposit account at the time the transaction is processed and/or at the end of the customer’s stat ement cycle (typically monthly). Wealth and asset management revenue consists primarily of service fees for investment management, custody, and trust administration services provided to commercial and consumer clients. The Bancorp’s performance obligations for these services are generally satisfied over time and revenues are recognized monthly based on the fee structure outlined in individual contracts. Transaction prices are most commonly based on the market value of assets under management or care and/or a fee per transaction processed. The Bancorp offers certain services, like tax return preparation, for which the performance obligations are satisfied and revenue is recognized at a point in time, when the services are performed. Wealth and asset managemen t revenue also includes trailing commissions received from investments and annuities held in customer accounts, which are recognized in revenue when the Bancorp determines it is probable that the commission will be received. Corporate banking revenue consi sts primarily of service fees and other income related to loans and leases to commercial clients, underwriting revenue recognized by the Bancorp’s broker-dealer subsidiary and fees for other services provided to commercial clients. Revenue related to loans and leases is recognized in accordance with the Bancorp’s policies for portfolio loans and leases. Underwriting revenue is generally recognized on the trade date, which is when the Bancorp’s performance obligations are satisfied. Card and processing reve nue consists primarily of ATM fees and interchange fees earned when the Bancorp’s credit and debit cards are processed through card association networks. The Bancorp’s performance obligations are generally complete when the transactions generating the fees are processed. Revenue is recognized on an accrual basis as such services are performed, net of certain costs not controlled by the Bancorp (primarily interchange fees charged by credit card associations and expenses of certain transaction-based rewards p rograms offered to customers). These costs reduced card and processing revenue by approximately $ 31 million and $ 60 million for the three and six months ended June 30, 2018, respectively. Mortgage banking net revenue consists primarily of origination fees and gains on loan sales, mortgage servicing fees and the impact of MSRs. Refer to the Loans and Leases Held for Sale and Loan Sales and Securitizations sections in Note 1 of the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2017 for further information. Other noninterest income includes income from operating leases, certain fees derived from loans and leases, BOLI income, gains and losses on other assets, and other miscellaneous revenues and gains. |
Supplemental Cash Flow Inform34
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow | |
Noncash Investing and Financing Activities | Cash payments related to interest and income taxes in addition to non-cash investing and financing activities are presented in the following table for the six months ended June 30: ($ in millions) 2018 2017 Cash Payments: Interest $ 451 334 Income taxes 120 399 Transfers: Portfolio loans to loans held for sale 171 140 Loans held for sale to portfolio loans 67 7 Portfolio loans to OREO 20 19 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | The following tables provide the amortized cost, unrealized gains and losses and fair value for the major categories of the available-for-sale debt and other securities and held-to-maturity investment securities portfolios as of: Amortized Unrealized Unrealized Fair June 30, 2018 ($ in millions) Cost Gains Losses Value Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 98 - (2) 96 Obligations of states and political subdivisions securities 34 1 - 35 Mortgage-backed securities: Agency residential mortgage-backed securities 16,405 35 (346) 16,094 Agency commercial mortgage-backed securities 10,308 7 (277) 10,038 Non-agency commercial mortgage-backed securities 3,149 5 (68) 3,086 Asset-backed securities and other debt securities 1,981 26 (9) 1,998 Other securities (a) 614 - - 614 Total available-for-sale debt and other securities $ 32,589 74 (702) 31,961 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 17 - - 17 Asset-backed securities and other debt securities 2 - - 2 Total held-to-maturity securities $ 19 - - 19 Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 364 and $ 2 , respectively, at June 30, 2018 , that are carried at cost. Amortized Unrealized Unrealized Fair December 31, 2017 ($ in millions) Cost Gains Losses Value Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 98 - - 98 Obligations of states and political subdivisions securities 43 1 - 44 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 15,281 118 (80) 15,319 Agency commercial mortgage-backed securities 10,113 92 (38) 10,167 Non-agency commercial mortgage-backed securities 3,247 51 (5) 3,293 Asset-backed securities and other debt securities 2,183 46 (11) 2,218 Other securities (b) 612 - - 612 Total available-for-sale debt and other securities $ 31,577 308 (134) 31,751 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 22 - - 22 Asset-backed securities and other debt securities 2 - - 2 Total held-to-maturity securities $ 24 - - 24 Includes interest-only mortgage-backed securities of $ 34 as of December 31, 2017 , recorded at fair value with fair value changes recorded in securities gains, net, in the Consolidated Statements of Income. Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 248 , $ 362 and $ 2 , respectively, at December 31, 2017 , that are carried at cost. The following table provides the fair value of trading debt securities and equity securities as of: June 30, December 31, ($ in millions) 2018 2017 Trading debt securities $ 280 492 Equity securities 475 439 |
Realized Gains and Losses Recognized in Income from Investment Securities | The following table presents net realized gains and losses that were recognized in income from available-for-sale debt and other securities as well as total (losses) gains that were recognized in income from trading debt securities and equity securities: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2018 2017 2018 2017 Available-for-sale debt and other securities: Realized gains $ 22 21 56 30 Realized losses (22) (7) (65) (8) OTTI (a) - (14) - (24) Net realized losses on available-for sale debt and other securities (b) $ - - (9) (2) Total trading debt securities (losses) gains (c) $ (4) 2 (18) 3 Total equity securities (losses) gains (d)(e) $ (5) 2 (8) 3 Total (losses) and gains recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities $ (9) 4 (35) 4 Included in securities (losses) gains, net in the Condensed Consolidated Statements of Income. Excludes net gains on interest-only mortgage-backed securities of $ 0 and $ 1 for the three and six months ended June 30, 2018 , respectively, and net losses of $ 2 and $ 1 for the three and six months ended June 30, 2017 , respectively. Includes an immaterial net loss and a net loss of $ 2 for the three and six months ended June 30, 2018 , respectively, and immaterial net gains for both the three and six months ended June 30, 2017 , respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. Includes immaterial net gains for both the three and six months en ded June 30, 2018 and 2017 recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. Includes net unrealized losses of $ 5 and $ 6 for the three and six months ended June 30, 2018 , respectively, and net unrealized gains of $ 2 and $ 3 for the three and six months ended June 30, 2017 , respectively. |
Amortized Cost and Fair Value of Available-for-Sale Debt 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 debt and other securities and held-to-maturity investment securities as of June 30, 2018 are shown in the following table: Available-for-Sale Debt and Other Held-to-Maturity ($ in millions) Amortized Cost Fair Value Amortized Cost Fair Value Debt securities: (a) Less than 1 year $ 214 207 1 1 1-5 years 8,923 8,800 16 16 5-10 years 18,047 17,669 - - Over 10 years 4,791 4,671 2 2 Other securities 614 614 - - Total $ 32,589 31,961 19 19 (a) Actual maturities may differ from contractual maturities when a right to call or prepay obligations exists with or without call or prepayment penalties . |
Fair Value and Gross Unrealized Loss of Securities Available for Sale | The following table provides the fair value and gross unrealized losses on available-for-sale debt and other securities in an unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized ($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses June 30, 2018 U.S. Treasury and federal agencies $ 96 (2) - - 96 (2) Agency residential mortgage-backed securities 12,456 (313) 478 (33) 12,934 (346) Agency commercial mortgage-backed securities 8,719 (247) 547 (30) 9,266 (277) Non-agency commercial mortgage-backed securities 2,540 (59) 140 (9) 2,680 (68) Asset-backed securities and other debt securities 284 (2) 395 (7) 679 (9) Total $ 24,095 (623) 1,560 (79) 25,655 (702) December 31, 2017 U.S. Treasury and federal agencies $ 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) Total $ 11,101 (85) 1,536 (49) 12,637 (134) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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: June 30, December 31, ($ in millions) 2018 2017 Loans and leases held for sale: Commercial and industrial loans $ 44 - Commercial mortgage loans 72 6 Commercial leases 9 - Residential mortgage loans 658 486 Total loans and leases held for sale $ 783 492 Portfolio loans and leases: Commercial and industrial loans $ 41,403 41,170 Commercial mortgage loans 6,625 6,604 Commercial construction loans 4,687 4,553 Commercial leases 3,788 4,068 Total commercial loans and leases $ 56,503 56,395 Residential mortgage loans $ 15,640 15,591 Home equity 6,599 7,014 Automobile loans 8,938 9,112 Credit card 2,270 2,299 Other consumer loans 1,982 1,559 Total consumer loans $ 35,429 35,575 Total portfolio loans and leases $ 91,932 91,970 |
Total Loans And Leases Owned By The Bancorp | The following table presents a summary of the total loans and leases owned by the Bancorp as of: 90 Days Past Due Carrying Value and Still Accruing June 30, December 31, June 30, December 31, ($ in millions) 2018 2017 2018 2017 Commercial and industrial loans $ 41,447 41,170 4 3 Commercial mortgage loans 6,697 6,610 - - Commercial construction loans 4,687 4,553 - - Commercial leases 3,797 4,068 - - Residential mortgage loans 16,298 16,077 44 57 Home equity 6,599 7,014 - - Automobile loans 8,938 9,112 10 10 Credit card 2,270 2,299 31 27 Other consumer loans 1,982 1,559 - - Total loans and leases $ 92,715 92,462 89 97 Less: Loans and leases held for sale 783 492 Total portfolio loans and leases $ 91,932 91,970 The following table presents a summary of net charge-offs: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2018 2017 2018 2017 Commercial and industrial loans $ 47 18 74 52 Commercial mortgage loans 2 5 2 11 Commercial construction loans - - - - Commercial leases - 1 - 2 Residential mortgage loans 2 2 4 7 Home equity 2 5 7 11 Automobile loans 8 6 19 18 Credit card 26 22 52 43 Other consumer loans 7 5 17 9 Total net charge-offs $ 94 64 175 153 |
Credit Quality and the Allowa37
Credit Quality and the Allowance for Loan and Lease Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Credit Quality and the Allowance for Loan and Leases Losses | |
Summary of Transactions in the ALLL | Allowance for Loan and Lease Losses The following tables summarize transactions in the ALLL by portfolio segment: Residential For the three months ended June 30, 2018 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 713 89 222 114 1,138 Losses charged-off (a) (54) (4) (60) - (118) Recoveries of losses previously charged-off (a) 5 2 17 - 24 Provision for (benefit from) loan and lease losses (10) (1) 50 (6) 33 Balance, end of period $ 654 86 229 108 1,077 (a) For the three months ended June 30, 2018 , the Bancorp recorded $6 in both losses charged-off and recoveries of losses charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. Residential For the three months ended June 30, 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 826 96 204 112 1,238 Losses charged-off (41) (4) (50) - (95) Recoveries of losses previously charged-off 17 2 12 - 31 Provision for (benefit from) loan and lease losses 15 (1) 40 (2) 52 Balance, end of period $ 817 93 206 110 1,226 Residential For the six months ended June 30, 2018 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 753 89 234 120 1,196 Losses charged-off (a) (87) (7) (128) - (222) Recoveries of losses previously charged-off (a) 11 3 33 - 47 Provision for (benefit from) loan and lease losses (23) 1 90 (12) 56 Balance, end of period $ 654 86 229 108 1,077 (a) For the six months ended June 30, 2018 , the Bancorp recorded $10 in both losses charged-off and recoveries of losses charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. Residential For the six months ended June 30, 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 831 96 214 112 1,253 Losses charged-off (86) (10) (106) - (202) Recoveries of losses previously charged-off 21 3 25 - 49 Provision for (benefit from) loan and lease losses 51 4 73 (2) 126 Balance, end of period $ 817 93 206 110 1,226 |
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment | The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: Residential As of June 30, 2018 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 75 65 38 - 178 Collectively evaluated for impairment 579 21 191 - 791 Unallocated - - - 108 108 Total ALLL $ 654 86 229 108 1,077 Portfolio loans and leases: (b) Individually evaluated for impairment $ 400 788 297 - 1,485 Collectively evaluated for impairment 56,103 14,690 19,492 - 90,285 Total portfolio loans and leases $ 56,503 15,478 19,789 - 91,770 Includes $ 1 related to leveraged leases at June 30, 2018 . Excludes $ 162 of residential mortgage loans measured at fair value and includes $ 65 0 of leveraged leases, net of unearned income at June 30, 2018 . Residential As of December 31, 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 94 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 $ 560 665 320 - 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 mortga ge loans measured at fair value and includes $ 674 of leveraged leases, net of unearned income at December 31, 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 June 30, 2018 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 39,601 899 885 18 41,403 Commercial mortgage owner-occupied loans 3,217 40 134 - 3,391 Commercial mortgage nonowner-occupied loans 3,200 21 13 - 3,234 Commercial construction loans 4,652 35 - - 4,687 Commercial leases 3,649 54 85 - 3,788 Total commercial loans and leases $ 54,319 1,049 1,117 18 56,503 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 The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of: June 30, 2018 December 31, 2017 ($ in millions) Performing Nonperforming Performing Nonperforming Residential mortgage loans (a) $ 15,450 28 15,424 30 Home equity 6,528 71 6,940 74 Automobile loans 8,933 5 9,111 1 Credit card 2,243 27 2,273 26 Other consumer loans 1,981 1 1,559 - Total residential mortgage and consumer loans $ 35,135 132 35,307 131 (a) Excludes $ 162 and $ 137 of residential mortgage loans measured at fair value at June 30, 2018 and December 31, 2017 , resp ectively. |
Summary by Age and Class of the Recorded Investment in Delinquencies Included in the Bancorp's Portfolio of Loans and Leases | Age Analysis of Past Due Loans and Leases The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases, by age and class: Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of June 30, 2018 ($ in millions) Leases (b)(c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 41,281 19 103 122 41,403 4 Commercial mortgage owner-occupied loans 3,384 1 6 7 3,391 - Commercial mortgage nonowner-occupied loans 3,228 3 3 6 3,234 - Commercial construction loans 4,687 - - - 4,687 - Commercial leases 3,784 - 4 4 3,788 - Residential mortgage loans (a) 15,382 24 72 96 15,478 44 Consumer loans: Home equity 6,482 66 51 117 6,599 - Automobile loans 8,840 84 14 98 8,938 10 Credit card 2,198 36 36 72 2,270 31 Other consumer loans 1,972 8 2 10 1,982 - Total portfolio loans and leases $ 91,238 241 291 532 91,770 89 Excludes $ 162 of residential mortgage loans measured at fair value at June 30, 2018 . 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 June 30, 2018 , $ 71 of these loans were 30-89 days past due and $ 237 were 90 days or more past due. The Bancorp recognized $ 1 and $ 3 of losses during the three and six months ended June 30, 2018 due to claim denials and curtailments associated with these insured or guaranteed loans. Includes accrual and nonaccrual loans and leases. Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 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 $ 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. As of December 31, 2017 , $ 95 of these loa ns were 30-89 days past due and $ 290 were 90 days or more p ast due. The Bancorp recognized $ 1 and $ 3 of losses during the three and six months ended June 30, 2017, respectively, due to c laim denials and cu rtailments associated with these insured or guaranteed loans. Includes accrual and nonaccrual loans and leases. |
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class | The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR: Unpaid Principal Recorded As of June 30, 2018 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 248 204 63 Commercial mortgage owner-occupied loans 4 3 1 Commercial mortgage nonowner-occupied loans 2 1 - Commercial leases 29 29 11 Restructured residential mortgage loans 497 494 65 Restructured consumer loans: Home equity 158 157 22 Automobile loans 6 6 1 Credit card 48 45 15 Total impaired portfolio loans and leases with a related ALLL $ 992 939 178 With no related ALLL: Commercial loans: Commercial and industrial loans $ 147 124 - Commercial mortgage owner-occupied loans 15 12 - Commercial mortgage nonowner-occupied loans 28 27 - Restructured residential mortgage loans 314 294 - Restructured consumer loans: Home equity 90 87 - Automobile loans 3 2 - Total impaired portfolio loans with no related ALLL $ 597 546 - Total impaired portfolio loans and leases $ 1,589 1,485 (a) 178 Includes $ 104 , $ 773 and $ 251 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 173 , $ 15 an d $ 46 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at June 30, 2018 . Unpaid Principal Recorded As of December 31, 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 (a) 200 Includes $ 249 , $ 652 and $ 275 , respectively, of commercial, residential mortgage and consumer portfolio TDR s on accrual status and $ 150 , $ 13 and $ 45 , respectively , of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2017 . The following tables summarize the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class: For the three months ended For the six months ended June 30, 2018 June 30, 2018 Average Interest Average Interest Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 417 5 439 10 Commercial mortgage owner-occupied loans 16 - 20 - Commercial mortgage nonowner-occupied loans 29 - 32 - Commercial leases 18 - 14 - Restructured residential mortgage loans 799 8 732 14 Restructured consumer loans: Home equity 248 3 253 6 Automobile loans 8 - 9 - Credit card 46 1 47 2 Total average impaired portfolio loans and leases $ 1,581 17 1,546 32 For the three months ended For the six months ended June 30, 2017 June 30, 2017 Average Interest Average Interest Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 635 1 668 2 Commercial mortgage owner-occupied loans (a) 38 - 42 - Commercial mortgage nonowner-occupied loans 66 - 73 1 Commercial leases 2 - 3 - Restructured residential mortgage loans 654 6 653 12 Restructured consumer loans: Home equity 287 3 293 6 Automobile loans 12 - 13 - Credit card 49 1 51 2 Total average impaired loans and leases $ 1,743 11 1,796 23 Excludes five restructured loans 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 average recorded investment of $ 26 for both the three and six months ended June 30, 2017. An immaterial amount of interest income was recognized during the six months ended June 30, 2017. Refer to Note 9 for further discussion on the deconsolidation of the VIE associated with these loans in the third quarter of 2017. |
Summary of the Bancorp's Nonperforming Loans and Leases by Class | Nonperforming Assets Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured commercial and credit card loans which have not yet met the requirements to be classified as a performing asset; restructured consumer loans which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property. The following table presents the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of: June 30, December 31, ($ in millions) 2018 2017 Commercial loans and leases: Commercial and industrial loans $ 263 276 Commercial mortgage owner-occupied loans 10 19 Commercial mortgage nonowner-occupied loans 3 7 Commercial leases 29 4 Total nonaccrual portfolio commercial loans and leases 305 306 Residential mortgage loans 28 30 Consumer loans: Home equity 71 74 Automobile loans 5 1 Credit card 27 26 Other consumer loans 1 - Total nonaccrual portfolio consumer loans 104 101 Total nonaccrual portfolio loans and leases (a)(b) $ 437 437 OREO and other repossessed property 43 52 Total nonperforming portfolio assets (a)(b) $ 480 489 Excludes $ 23 a nd $ 6 of nonaccrual loans held for sale at June 30, 2018 and December 31, 2017 , respectively. Includes $ 4 and $ 3 of nonaccrual government insured commercial loans whose repayments are insured by the SBA a t June 30, 2018 and Dec ember 31, 2017 , respectively, of which $ 2 and $ 3 are restructured nonaccrual government insured commercial loans a t June 30, 2018 and December 31, 2017 , respectively . |
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 three months ended: Recorded Investment (Decrease) Number of Loans in Loans Modified Increase Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon June 30, 2018 ($ in millions) (a) During the Period (b) During the Period Modification Modification Commercial loans: Commercial and industrial loans 13 $ 64 (4) - Residential mortgage loans 537 91 2 - Consumer loans: Home equity 29 2 - - Automobile loans 19 - - - Credit card 1,675 9 2 1 Total portfolio loans 2,273 $ 166 - 1 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded Investment Number of Loans in Loans Modified Increase Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon June 30, 2017 ($ in millions) (a) During the Period (b) During the Period Modification Modification Commercial loans: Commercial and industrial loans 17 $ 56 1 4 Commercial mortgage owner-occupied loans 2 6 5 - Commercial mortgage nonowner-occupied loans 1 - - - Residential mortgage loans 199 28 1 - Consumer loans: Home equity 44 3 - - Automobile loans 15 - - - Credit card 2,152 10 2 1 Total portfolio loans 2,430 $ 103 9 5 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . The following tables provide a summary of loans and leases, by class, modified in a TDR by the Bancorp during the six months ended: Recorded Investment Increase Number of Loans in Loans Modified (Decrease) Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon June 30, 2018 ($ in millions) (a) During the Period (b) During the Period Modification Modification Commercial loans: Commercial and industrial loans 25 $ 135 9 - Commercial mortgage owner-occupied loans 2 - - - Residential mortgage loans 784 124 3 - Consumer loans: Home equity 54 4 - - Automobile loans 39 - - - Credit card 3,640 19 4 1 Total portfolio loans 4,544 $ 282 16 1 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded Investment Number of Loans in Loans and Leases Increase Charge-offs Modified in a TDR Modified in a TDR to ALLL Upon Recognized Upon June 30, 2017 ($ in millions) (a) During the Period (b) During the Period Modification Modification Commercial loans and leases: Commercial and industrial loans 50 $ 153 2 6 Commercial mortgage owner-occupied loans 7 8 5 - Commercial mortgage nonowner-occupied loans 2 - - - Residential mortgage loans 402 57 3 - Consumer loans: Home equity 75 5 - - Automobile loans 45 - - - Credit card 3,908 17 3 1 Total portfolio loans and leases 4,489 $ 240 13 7 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . |
Summary of Subsequent Defaults | The following tables provide a summary of TDRs that subsequently defaulted during the three months ended June 30, 2018 and 2017 and were within twelve months of the restructuring date: Number of Recorded June 30, 2018 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 2 $ 28 Residential mortgage loans 62 13 Consumer loans: Credit card 137 1 Total portfolio loans 201 $ 42 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. Number of Recorded June 30, 2017 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 2 $ 15 Commercial mortgage nonowner-occupied loans 3 1 Residential mortgage loans 26 3 Consumer loans: Home equity 6 1 Credit card 387 2 Total portfolio loans 424 $ 22 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. The following tables provide a summary of TDRs that subsequently defaulted during the six months ended June 30, 2018 and 2017 and were within twelve months of the restructuring date: Number of Recorded June 30, 2018 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 3 $ 29 Commercial mortgage owner-occupied loans 2 - Residential mortgage loans 110 20 Consumer loans: Home equity 2 - Credit card 379 2 Total portfolio loans 496 $ 51 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. Number of Recorded June 30, 2017 ($ in millions) (a) Contracts Investment Commercial loans: Commercial and industrial loans 4 $ 16 Commercial mortgage nonowner-occupied loans 3 1 Residential mortgage loans 83 12 Consumer loans: Home equity 11 2 Credit card 837 4 Total portfolio loans 938 $ 35 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Bank Premises and Equipment | |
Bank Premises and Equipment | The following table provides a summary of bank premises and equipment as of: ($ in millions) June 30, 2018 December 31, 2017 Land and improvements (a) $ 599 644 Buildings (a) 1,616 1,679 Equipment 1,936 1,876 Leasehold improvements 396 399 Construction in progress (a) 85 93 Bank premises and equipment held for sale: Land and improvements 24 17 Buildings 10 9 Equipment 3 1 Accumulated depreciation and amortization (2,754) (2,715) Total bank premises and equipment $ 1,915 2,003 (a ) At June 30, 2018 and December 31, 2017 , land and improvements , buildings and construction in progress included $ 55 and $ 9 1 , respectively, associated w ith parcels of undeveloped land intended for future branch expansion. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Intangible Assets | |
Intangible Assets | The details of the Bancorp’s intangible assets are shown in the following table: Gross Carrying Accumulated Net Carrying ($ in millions) Amount Amortization Amount As of June 30, 2018 Core deposit intangibles $ 34 (29) 5 Customer relationships 20 (1) 19 Non-compete agreements 14 (11) 3 Other 6 (3) 3 Total intangible assets $ 74 (44) 30 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 |
Estimated Amortization Expense | Estimated amortization expense for the remainder of 2018 through 2022 is as follows: ($ in millions) Total Remainder of 2018 $ 3 2019 5 2020 3 2021 3 2022 2 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Variable Interest Entities | |
Consolidation of Variable Interest Entities Disclosure | The following tables provide a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Condensed Consolidated Balance Sheets as of: Automobile Loan CDC June 30, 2018 ($ in millions) Securitizations Investments Total Assets: Other short-term investments $ 47 - 47 Commercial mortgage loans - 20 20 Automobile loans 888 - 888 ALLL (5) - (5) Other assets 5 - 5 Total assets $ 935 20 955 Liabilities: Other liabilities $ 2 - 2 Long-term debt 830 - 830 Total liabilities $ 832 - 832 Noncontrolling interests $ - 20 20 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 |
Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses | Non-consolidated VIEs The following tables provide a summary of assets and liabilities carried on the Condensed Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of: Total Total Maximum June 30, 2018 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,213 363 1,213 Private equity investments 70 - 112 Loans provided to VIEs 1,885 - 3,124 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 |
Investments in Qualified Affordable Housing Tax Credits | The Bancorp has accounted for all of its investments in qualified affordable housing tax credits using the equity method of accounting. The following table summarizes the impact to the Condensed Consolidated Statements of Income relating to investments in qualified affordable housing investments: Condensed Consolidated For the three months ended June 30, For the six months ended June 30, ($ in millions) Statements of Income Caption 2018 2017 2018 2017 Pre-tax investment and impairment losses (a) Other noninterest expense $ 46 35 91 72 Tax credits and other benefits Applicable income tax expense (51) (56) (103) (112) (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credi ts or other circumstances during both the three and six months ended June 30, 2018 and 2017 . |
Sales of Receivables and Serv41
Sales of Receivables and Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Sales of Receivables and Servicing Rights | |
Activity Related to Mortgage Banking Net Revenue | Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income, is as follows: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2018 2017 2018 2017 Residential mortgage loan sales (a) $ 1,474 1,518 2,474 3,147 Origination fees and gains on loan sales 28 37 52 66 Gross mortgage servicing fees 54 49 106 97 Represents the unpaid principal balance at the time of the sale. |
Changes in the Servicing Assets | The following table presents changes in the servicing rights related to residential mortgage loans for the six months ended June 30: ($ in millions) 2018 2017 Balance, beginning of period $ 858 744 Servicing rights originated - residential mortgage loans 35 66 Servicing rights acquired - residential mortgage loans 50 109 Changes in fair value: Due to changes in inputs or assumptions (a) 78 (13) Other changes in fair value (b) (62) (57) Balance, end of period $ 959 849 Primarily reflects changes in prepayment speed and OAS spread assumptions which are updated based on market interest rates . Pr imarily reflects changes due to collection of contractual cash flows and the passage of time . |
Activity Related to the MSR Portfolio | The following table presents activity related to valuations of the MSR portfolio and the impact of the non-qualifying hedging strategy: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2018 2017 2018 2017 Securities (losses) gains, net - non-qualifying hedges on MSRs $ (4) 2 (17) 2 Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) (16) 16 (65) 15 MSR fair value adjustment due to changes in inputs or assumptions (a) 21 (17) 78 (13) (a) Included in mortgage banking net revenue in the Condensed Consolidated Statements of Income. |
Servicing Assets and Residual Interests Economic Assumptions | The key economic assumptions used in measuring the interests in residential mortgage loans that continued to be held by the Bancorp at the date of sale, securitization or purchase resulting from transactions completed during the three months ended June 30, 2018 and 2017 were as follows: June 30, 2018 June 30, 2017 Rate Weighted-Average Life (in years) Prepayment Speed (annual) OAS Spread (bps) Weighted-Average Life (in years) Prepayment Speed (annual) OAS Spread (bps) Residential mortgage loans: Servicing rights Fixed 6.8 10.0 % 519 7.0 10.3 % 492 Servicing rights Adjustable - - - 3.0 29.8 659 |
Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions | At June 30, 2018, 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 OAS Spread Impact of Weighted- Impact of Adverse Change Adverse Change Fair Average Life on Fair Value on Fair Value ($ in millions) (a) Rate Value (in years) Rate 10% 20% 50% (bps) 10% 20% Residential mortgage loans: Servicing rights Fixed $ 944 6.5 9.5 % $ (37) (71) (164) 543 $ (19) (37) Servicing rights Adjustable 15 3.4 23.6 (1) (2) (4) 817 - (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 Instrume42
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Financial Instruments | |
Notional Amounts and Fair Values for All Derivative Instruments Included in the Consolidated Balance Sheets | The following tables reflect the notional amounts and fair values for all derivative instruments included in the Condensed Consolidated Balance Sheets as of: Fair Value Notional Derivative Derivative June 30, 2018 ($ in millions) Amount Assets Liabilities Derivatives Designated as Qualifying Hedging Instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 3,205 229 4 Total fair value hedges 229 4 Cash flow hedges: Interest rate swaps related to C&I loans 6,150 1 15 Total cash flow hedges 1 15 Total derivatives designated as qualifying hedging instruments 230 19 Derivatives Not Designated as Qualifying Hedging Instruments: Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSR portfolio 11,475 52 13 Forward contracts related to residential mortgage loans held for sale 1,450 - 4 Swap associated with the sale of Visa, Inc. Class B Shares 2,207 - 164 Foreign exchange contracts 153 2 - Total free-standing derivatives - risk management and other business purposes 54 181 Free-standing derivatives - customer accommodation: Interest rate contracts 48,949 247 280 Interest rate lock commitments 596 11 - Commodity contracts 5,087 284 270 TBA securities 58 - - Foreign exchange contracts 10,842 119 109 Total free-standing derivatives - customer accommodation 661 659 Total derivatives not designated as qualifying hedging instruments 715 840 Total $ 945 859 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 MSR portfolio 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 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 |
Net Gains (Losses) Recognized in the Income Statement Related to Derivatives in Fair Value Hedging Relationships | The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Condensed Consolidated Statements of Income: For the three months For the six months Condensed Consolidated ended June 30, ended June 30, ($ in millions) Statements of Income Caption 2018 2017 2018 2017 Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ (18) 14 (81) (6) Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt 19 (15) 83 5 The following amounts were recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of: Condensed Consolidated ($ in millions) Balance Sheets Caption June 30, 2018 Carrying amount of the hedged item Long-term debt $ 3,701 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items Long-term debt (212) |
Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges | The following table presents the pretax net gains (losses) recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2018 2017 (a) 2018 2017 (a) Amount of pretax net (losses) gains recognized in OCI $ 4 8 (5) 3 Amount of pretax net gains reclassified from OCI into net income - 6 1 14 For both the three and six months ended June 30, 2017, the amount of pretax net losses recognized in OCI represented the effective portion of the cumulative gains or losses on cash flow hedges and ineffectiveness was reported within noninterest income. Upon the adoption of ASU 2017-12, the Bancorp recorded a cumulative effect adjustment to retained earnings effective January 1, 2018 related to the elimination of the separate measurement of ineffect iveness. Refer to Note 3 for additional information. |
Schedule of Price Risk Derivatives | The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: For the three months For the six months Condensed Consolidated ended June 30, ended June 30, ($ in millions) Statements of Income Caption 2018 2017 2018 2017 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ (3) 5 (4) (16) Interest rate contracts related to MSR portfolio Mortgage banking net revenue (16) 16 (65) 15 Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income 3 (3) 5 (4) Equity contracts: Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (10) (9) (49) (22) |
Risk Ratings of the Notional Amount of Risk Participation Agreements | Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table as of: June 30, December 31, ($ in millions) 2018 2017 Pass $ 3,590 2,748 Special mention 77 66 Substandard 10 24 Total $ 3,677 2,838 |
Net Gains (Losses) Recognized in the Income Statement Related to Free-Standing Derivative Instruments Used For Customer Accomodation | The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: For the three months For the six months Condensed Consolidated ended June 30, ended June 30, ($ in millions) Statements of Income Caption 2018 2017 2018 2017 Interest rate contracts: Interest rate contracts for customers (contract revenue) Corporate banking revenue $ 9 5 16 9 Interest rate lock commitments Mortgage banking net revenue 22 26 35 48 Commodity contracts: Commodity contracts for customers (contract revenue) Corporate banking revenue 2 1 4 2 Commodity contracts for customers (credit losses) Other noninterest expense - 1 - 1 Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense (1) - (1) - Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Corporate banking revenue 13 9 27 22 Foreign exchange contracts for customers (contract revenue) Other noninterest income 7 - 5 - 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 Condensed Consolidated Balance Sheets Condensed Consolidated As of June 30, 2018 ($ in millions) Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 934 (258) (300) 376 Total assets 934 (258) (300) 376 Liabilities: Derivatives 859 (258) (234) 367 Total liabilities $ 859 (258) (234) 367 Amount does not includ e IRLCs because these instruments are not subject to master netting or similar arrangements . Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table. Gross Amount Gross Amounts Not Offset in the Recognized in the Condensed Consolidated Balance Sheets Condensed Consolidated As of December 31, 2017 ($ in millions) 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 Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements . Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table. |
Other Short Term Borrowings (Ta
Other Short Term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Short-term Debt | |
Schedule Of Short Term Debt | Borrowings with original maturities of one year or less are classified as short-term. The following table presents a summary of the Bancorp's other short-term borrowings as of: June 30, December 31, ($ in millions) 2018 2017 FHLB advances $ 1,200 3,125 Securities sold under repurchase agreements 300 546 Derivative collateral 263 341 Total other short-term borrowings $ 1,763 4,012 |
Capital Actions (Tables)
Capital Actions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Capital Actions | |
Summary of the Bancorp's Accelerated Share Repurchase Transactions | The following table presents a summary of the Bancorp's accelerated share repurchase transactions that were entered into or settled during the six months ended June 30, 2018: Repurchase Date Amount ($ in millions) Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Settlement Date December 19, 2017 $ 273 7,727,273 824,367 8,551,640 March 19, 2018 February 12, 2018 318 8,691,318 1,015,731 9,707,049 March 26, 2018 May 25, 2018 235 6,402,244 1,172,122 7,574,366 June 15, 2018 |
Commitments, Contingent Liabi45
Commitments, Contingent Liabilities and Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments, Contingent Liabilities and Guarantees | |
Summary of Significant Commitments | Commitments The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of: June 30, December 31, ($ in millions) 2018 2017 Commitments to extend credit $ 70,915 68,106 Letters of credit 2,092 2,185 Forward contracts related to residential mortgage loans held for sale 1,450 1,284 Noncancelable operating lease obligations 568 568 Purchase obligations 120 144 Capital commitments for private equity investments 43 48 Capital expenditures 27 37 Capital lease obligations 23 26 |
Credit Risk Associated With Commitments | Risk ratings under this risk rating system are summarized in the following table as of: June 30, December 31, ($ in millions) 2018 2017 Pass $ 70,340 67,254 Special mention 306 330 Substandard 269 522 Total commitments to extend credit $ 70,915 68,106 |
Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party | Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of June 30, 2018: ($ in millions) Less than 1 year (a) $ 1,070 1 - 5 years (a) 1,009 Over 5 years 13 Total letters of credit $ 2,092 ( a) Includes $ 7 and $ 2 issued on behalf of c ommercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively. |
Credit Risk associated with Letters of Credit | Risk ratings under this risk rating system are summarized in the following table as of: June 30, December 31, ($ in millions) 2018 2017 Pass $ 1,897 1,830 Special mention 46 67 Substandard 149 218 Doubtful - 70 Total letters of credit $ 2,092 2,185 |
Activity in Reserve for Representation and Warranty Provisions | The following table summarizes activity in the reserve for representation and warranty provisions: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2018 2017 2018 2017 Balance, beginning of period $ 8 12 9 13 Net reductions to the reserve (1) (1) (2) (2) Balance, end of period $ 7 11 7 11 |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The following tables provide a rollforward of unresolved claims by claimant type for the six months ended: GSE Private Label June 30, 2018 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 6 $ 1 1 $ - New demands 62 11 - - Resolved demands (54) (9) - - Balance, end of period 14 $ 3 1 $ - GSE Private Label June 30, 2017 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 13 $ 2 - $ - New demands 58 8 - - Loan paydowns/payoffs (1) - - - Resolved demands (54) (8) - - Balance, end of period 16 $ 2 - $ - |
Visa Funding and Bancorp Cash Payments | After the Bancorp’s sale of the Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilutive adjustments to the conversion of Class B Shares into Class A Shares, and along with other terms of the total return swap, 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 Q2 2018 600 (a) i (a) The Bancorp made a cash payment of $26 million to the swap counterparty on July 17, 2018 as a result of the Visa escrow funding in the second quarter of 2018. |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income | |
Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income | The tables below present the activity of the components of OCI and AOCI for the three months ended: Total OCI Total AOCI Pretax Tax Net Beginning Net Ending June 30, 2018 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding losses on available-for-sale debt securities arising during period $ (217) 50 (167) Reclassification adjustment for net gains on available-for-sale debt securities included in net income - - - Net unrealized losses on available-for-sale debt securities (217) 50 (167) (318) (167) (485) Unrealized holding gains on cash flow hedge derivatives arising during period 4 (1) 3 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income - - - Net unrealized losses on cash flow hedge derivatives 4 (1) 3 (19) 3 (16) Reclassification of amounts to net periodic benefit costs 1 - 1 Defined benefit pension plans, net 1 - 1 (52) 1 (51) Total $ (212) 49 (163) (389) (163) (552) Total OCI Total AOCI Pretax Tax Net Beginning Net Ending June 30, 2017 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during period $ 148 (55) 93 Reclassification adjustment for net gains on available-for-sale securities included in net income - - - Net unrealized gains on available-for-sale securities 148 (55) 93 117 93 210 Unrealized holding gains on cash flow hedge derivatives arising during period 8 (3) 5 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (6) 2 (4) Net unrealized gains on cash flow hedge derivatives 2 (1) 1 2 1 3 Reclassification of amounts to net periodic benefit costs 2 (1) 1 Defined benefit pension plans, net 2 (1) 1 (51) 1 (50) Total $ 152 (57) 95 68 95 163 The tables below present the activity of the components of OCI and AOCI for the six months ended: Total OCI Total AOCI Pretax Tax Net Beginning Net Ending June 30, 2018 ($ in millions) Activity Effect Activity Balance (a) Activity Balance Unrealized holding losses on available-for-sale debt securities arising during period $ (811) 184 (627) Reclassification adjustment for net losses on available-for-sale debt securities included in net income 9 (2) 7 Net unrealized losses on available-for-sale debt securities (802) 182 (620) 135 (620) (485) Unrealized holding losses on cash flow hedge derivatives arising during period (5) 1 (4) Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (1) - (1) Net unrealized losses on cash flow hedge derivatives (6) 1 (5) (11) (5) (16) Reclassification of amounts to net periodic benefit costs 2 - 2 Defined benefit pension plans, net 2 - 2 (53) 2 (51) Total $ (806) 183 (623) 71 (623) (552) The Bancorp’s AOCI balance was adjusted as of January 1, 2018 to reflect the adoption of new accounting standards. Refer to Note 3 for additional information. Total OCI Total AOCI Pretax Tax Net Beginning Net Ending June 30, 2017 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during period $ 170 (62) 108 Reclassification adjustment for net losses on available-for-sale securities included in net income 2 (1) 1 Net unrealized gains on available-for-sale securities 172 (63) 109 101 109 210 Unrealized holding gains on cash flow hedge derivatives arising during period 3 (1) 2 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (14) 5 (9) Net unrealized gains on cash flow hedge derivatives (11) 4 (7) 10 (7) 3 Reclassification of amounts to net periodic benefit costs 3 (1) 2 Defined benefit pension plans, net 3 (1) 2 (52) 2 (50) Total $ 164 (60) 104 59 104 163 |
Reclassification Out of Accumulated Other Comprehensive Income to Net Income | The table below presents reclassifications out of AOCI: For the three months For the six months Condensed Consolidated ended June 30, ended June 30, Components of AOCI: ($ in millions) Statements of Income Caption 2018 2017 2018 2017 Net unrealized losses on available-for-sale debt securities: (b) Net losses included in net income Securities (losses) gains, net $ - - (9) (2) Income before income taxes - - (9) (2) Applicable income tax expense - - 2 1 Net income - - (7) (1) Net unrealized gains on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases - 6 1 14 Income before income taxes - 6 1 14 Applicable income tax expense - (2) - (5) Net income - 4 1 9 Net periodic benefit costs: (b) Amortization of net actuarial loss Employee benefits expense (a) (1) (2) (2) (3) Income before income taxes (1) (2) (2) (3) Applicable income tax expense - 1 - 1 Net income (1) (1) (2) (2) Total reclassifications for the period Net income $ (1) 3 (8) 6 This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2017 for further information. Amounts in parentheses indicate reductions to net income . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share | |
Calculation of Earnings Per Share and the Reconciliation of Earnings Per Share to Earnings Per Diluted Share | The following tables provide the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share: 2018 2017 For the three months ended June 30, Average Per Share Average Per Share (in millions, except per share data) Income Shares Amount Income Shares Amount Earnings Per Share: Net income available to common shareholders $ 563 344 Less: Income allocated to participating securities 6 4 Net income allocated to common shareholders $ 557 683 0.81 340 741 0.46 Earnings Per Diluted Share: Net income available to common shareholders $ 563 344 Effect of dilutive securities: Stock-based awards - 13 - 11 Net income available to common shareholders plus assumed conversions 563 344 Less: Income allocated to participating securities 6 4 Net income allocated to common shareholders plus assumed conversions $ 557 696 0.80 340 752 0.45 2018 2017 For the six months ended June 30, Average Per Share Average Per Share (in millions, except per share data) Income Shares Amount Income Shares Amount Earnings Per Share: Net income available to common shareholders $ 1,252 634 Less: Income allocated to participating securities 15 7 Net income allocated to common shareholders $ 1,237 687 1.80 627 745 0.84 Earnings Per Diluted Share: Net income available to common shareholders $ 1,252 634 Effect of dilutive securities: Stock-based awards - 13 - 12 Net income available to common shareholders plus assumed conversions 1,252 634 Less: Income allocated to participating securities 14 7 Net income allocated to common shareholders plus assumed conversions $ 1,238 700 1.77 627 757 0.83 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables summarize assets and liabilities measured at fair value on a recurring basis as of: Fair Value Measurements Using June 30, 2018 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Assets: Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 96 - - 96 Obligations of states and political subdivisions securities - 35 - 35 Mortgage-backed securities: Agency residential mortgage-backed securities - 16,094 - 16,094 Agency commercial mortgage-backed securities - 10,038 - 10,038 Non-agency commercial mortgage-backed securities - 3,086 - 3,086 Asset-backed securities and other debt securities - 1,998 - 1,998 Available-for-sale debt and other securities (a) 96 31,251 - 31,347 Trading debt securities: U.S. Treasury and federal agencies securities 10 9 - 19 Obligations of states and political subdivisions securities - 58 - 58 Agency residential mortgage-backed securities - 75 - 75 Asset-backed securities and other debt securities - 128 - 128 Trading debt securities 10 270 - 280 Equity securities 474 1 - 475 Residential mortgage loans held for sale - 658 - 658 Residential mortgage loans (b) - - 162 162 Commercial loans held for sale - 8 - 8 MSRs - - 959 959 Derivative assets: Interest rate contracts - 529 11 540 Foreign exchange contracts - 121 - 121 Commodity contracts 34 250 - 284 Derivative assets (d) 34 900 11 945 Total assets $ 614 33,088 1,132 34,834 Liabilities: Derivative liabilities: Interest rate contracts $ 4 305 7 316 Foreign exchange contracts - 109 - 109 Equity contracts - - 164 164 Commodity contracts 95 175 - 270 Derivative liabilities (e) 99 589 171 859 Short positions (e) 88 51 - 139 Total liabilities $ 187 640 171 998 Excludes FHLB, FRB and DTCC restricted stock holdings totaling $ 248 , $ 364 and $ 2 , respectively, at June 30, 2018 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. During both the three and six months ended June 30, 2018 , no assets or liabilities were transferred between Level 1 and Level 2. Included in other assets in the Condensed Consolidated Balance Sheets. Included in other liabilities in the Condensed Consolidat ed Balance Sheets. Fair Value Measurements Using December 31, 2017 ($ in millions) Level 1 (c) Level 2 (c) Level 3 Total Fair Value Assets: Available-for-sale debt 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 Available-for-sale debt and other securities (a) 98 31,041 - 31,139 Trading debt securities: U.S. Treasury and federal agencies securities 1 11 - 12 Obligations of states and political subdivisions securities - 22 - 22 Residential mortgage-backed securities - 395 - 395 Asset-backed securities and other debt securities - 63 - 63 Trading debt securities 1 491 - 492 Equity securities 438 1 439 Residential mortgage loans held for sale - 399 - 399 Residential mortgage loans (b) - - 137 137 MSRs - - 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 Condensed Consolidated Balance Sheets. Included in other liabilities in the Condensed Consolidat ed Balance Sheets. |
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Mortgage Derivatives, Equity Total For the three months ended June 30, 2018 ($ in millions) Loans MSRs Net (a) Derivatives Fair Value Balance, beginning of period $ 136 926 4 (165) 901 Total (losses) gains (realized/unrealized): Included in earnings (1) (13) 22 (10) (2) Purchases/originations - 46 (1) - 45 Settlements (5) - (21) 11 (15) Transfers into Level 3 (b) 32 - - - 32 Balance, end of period $ 162 959 4 (164) 961 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 June 30, 2018 (c) $ (1) (13) 12 (10) (12) Net interest rate derivatives include derivative assets and liabilities of $ 11 and $ 7 , respectively , as of June 30, 2018 . Includes certain residential mortgage loans originated as held for sale that were transferred to held for invest ment. Includes interest income and expense . Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Mortgage Derivatives, Derivatives, Total For the three months ended June 30, 2017 ($ in millions) Loans MSRs Net (a) Net Fair Value Balance, beginning of period $ 141 776 11 (97) 831 Total (losses) gains (realized/unrealized): Included in earnings 1 (47) 26 (9) (29) Purchases/originations - 120 - - 120 Settlements (4) - (28) 8 (24) Transfers into Level 3 (b) 4 - - - 4 Balance, end of period $ 142 849 9 (98) 902 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at June 30, 2017 (c) $ 1 (47) 14 (9) (41) Net interest rate derivatives include derivative assets and liabilities of $14 and $5 , respectively, as of June 30, 2017 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Mortgage Derivatives, Equity Total For the six months ended June 30, 2018 ($ in millions) Loans MSRs (d) Net (a) Derivatives Fair Value Balance, beginning of period $ 137 858 3 (137) 861 Total (losses) gains (realized/unrealized): Included in earnings (4) 16 36 (49) (1) Purchases/originations - 85 (4) - 81 Settlements (8) - (31) 22 (17) Transfers into Level 3 (b) 37 - - - 37 Balance, end of period $ 162 959 4 (164) 961 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2018 (c) $ (4) 16 12 (49) (25) Net interest rate derivatives include derivative assets and liabilities of $ 11 and $ 7 , respectively, as of June 30, 2018 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Incl udes interest income and expense . Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Mortgage Derivatives, Equity Total For the six months ended June 30, 2017 ($ in millions) Loans MSRs Net (a) Derivatives (a) Fair Value Balance, beginning of period $ 143 744 8 (91) 804 Total (losses) gains (realized/unrealized): Included in earnings 1 (70) 49 (22) (42) Purchases/originations - 175 (1) - 174 Settlements (9) - (47) 15 (41) Transfers into Level 3 (b) 7 - - - 7 Balance, end of period $ 142 849 9 (98) 902 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2017 (c) $ 1 (70) 15 (22) (76) Net interest rate derivatives include derivative assets and liabilities of $ 14 and $ 5 , respectively, as of June 30, 2017 . Includes certain residential mortgage loans originated as held for sale that were transferred to held for invest ment. Includes interest income and expense. |
Total Gains and Losses Included in Earnings for Assets and Liabilites Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The total losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2018 2017 2018 2017 Mortgage banking net revenue $ 8 (21) 47 (21) Corporate banking revenue - 1 1 1 Other noninterest income (10) (9) (49) (22) Total losses $ (2) (29) (1) (42) The total losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at June 30, 2018 and 2017 were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended For the six months ended June 30, June 30, ($ in millions) 2018 2017 2018 2017 Mortgage banking net revenue $ (2) (33) 23 (55) Corporate banking revenue - 1 1 1 Other noninterest income (10) (9) (49) (22) Total losses $ (12) (41) (25) (76) |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of June 30, 2018 and 2017 and for which a nonrecurring fair value adjustment was recorded during the three and six months ended June 30, 2018 and 2017, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period: Fair Value Measurements Using Total (Losses) Gains Total (Losses) Gains For the three months ended June 30, 2018 For the six months ended June 30, 2018 As of June 30, 2018 ($ in millions) Level 1 Level 2 Level 3 Total Commercial loans held for sale $ - - 4 4 - (1) Commercial and industrial loans - - 161 161 14 (30) Commercial mortgage loans - - 3 3 1 6 Commercial leases - - 14 14 (9) (10) OREO - - 17 17 (1) (4) Bank premises and equipment - - 37 37 (33) (41) Operating lease equipment - - 10 10 (1) (3) Private equity investments - 50 31 81 11 30 Total $ - 50 277 327 (18) (53) Fair Value Measurements Using Total Losses Total Losses For the three months For the six months As of June 30, 2017 ($ in millions) Level 1 Level 2 Level 3 Total ended June 30, 2017 ended June 30, 2017 Commercial loans held for sale $ - - 45 45 (13) (32) Commercial and industrial loans - - 405 405 (32) (58) Commercial mortgage loans - - 26 26 (9) (11) Commercial leases - - 3 3 (1) (2) OREO - - 11 11 (1) (5) Bank premises and equipment - - 16 16 (2) (5) Operating lease equipment - - 56 56 - (20) Total $ - - 562 562 (58) (133) |
Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Inputs | The following tables present information as of June 30, 2018 and 2017 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured at fair value on a recurring basis: As of June 30, 2018 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Residential mortgage loans $ 162 Loss rate model Interest rate risk factor (13.3) - 11.9% -0.1% Credit risk factor 0 - 40.3% 0.7% MSRs 959 Discounted cash flow Prepayment speed 0.5-97.0% (Fixed) 9.5% (Adjustable) 23.6% OAS spread (bps) 461-1,513 (Fixed) 543 (Adjustable) 817 IRLCs, net 11 Discounted cash flow Loan closing rates 12.2 - 96.6% 80.9% Swap associated with the sale of Visa, Inc. (164) Discounted cash flow Timing of the resolution 1/31/2021 - 9/6/2021 Class B Shares of the Covered Litigation 11/30/2023 As of June 30, 2017 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Residential mortgage loans $ 142 Loss rate model Interest rate risk factor (9.6) - 15.0% 2.9% Credit risk factor 0 - 46.2% 1.0% MSRs 849 Discounted cash flow Prepayment speed 1.2-100% (Fixed) 11.5% (Adjustable) 24.8% OAS spread (bps) 430-1,515 (Fixed) 530 (Adjustable) 773 IRLCs, net 14 Discounted cash flow Loan closing rates 9.6- 96.8% 73.0% Swap associated with the sale of Visa, Inc. (98) Discounted cash flow Timing of the resolution 6/30/2019 - 9/30/2020 Class B Shares of the Covered Litigation 12/31/2022 The following tables present information as of June 30, 2018 and 2017 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis: As of June 30, 2018 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 4 Appraised value Appraised value NM NM Costs to sell NM 10.0% Commercial and industrial loans 161 Appraised value Collateral value NM NM Commercial mortgage loans 3 Appraised value Collateral value NM NM Commercial leases 14 Appraised value Collateral value NM NM OREO 17 Appraised value Appraised value NM NM Bank premises and equipment 37 Appraised value Appraised value NM NM Operating lease equipment 10 Appraised value Appraised value NM NM Private equity investments 28 Liquidity discount applied Liquidity discount 0-43.0% 12.9% to fund's net asset value 3 Comparable company analysis Market comparable transactions NM NM As of June 30, 2017 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 45 Appraised value Appraised value NM NM Costs to sell NM 10.0% Commercial and industrial loans 405 Appraised value Collateral value NM NM Commercial mortgage loans 26 Appraised value Collateral value NM NM Commercial leases 3 Appraised value Collateral value NM NM OREO 11 Appraised value Appraised value NM NM Bank premises and equipment 16 Appraised value Appraised value NM NM Operating lease equipment 56 Appraised value Appraised value NM NM |
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 and commercial loans measured at fair value as of: Aggregate Aggregate Unpaid June 30, 2018 ($ in millions) Fair Value Principal Balance Difference Residential mortgage loans measured at fair value $ 820 802 18 Past due loans of 90 days or more 2 2 - Nonaccrual loans 1 1 - Commercial loans measured at fair value 8 8 - 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 - |
Carrying Amounts and Estimated Fair Values for Certain Financial Instruments | Fair Value of Certain Financial Instruments The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis: Net Carrying Fair Value Measurements Using Total As of June 30, 2018 ($ in millions) Amount Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and due from banks $ 2,052 2,052 - - 2,052 Other short-term investments 1,636 1,636 - - 1,636 Other securities 614 - 614 - 614 Held-to-maturity securities 19 - - 19 19 Loans and leases held for sale 117 - - 117 117 Portfolio loans and leases: Commercial and industrial loans 40,858 - - 41,825 41,825 Commercial mortgage loans 6,560 - - 6,493 6,493 Commercial construction loans 4,666 - - 4,710 4,710 Commercial leases 3,765 - - 3,355 3,355 Residential mortgage loans 15,392 - - 15,697 15,697 Home equity 6,560 - - 6,936 6,936 Automobile loans 8,899 - - 8,632 8,632 Credit card 2,146 - - 2,518 2,518 Other consumer loans 1,955 - - 2,047 2,047 Unallocated ALLL (108) - - - - Total portfolio loans and leases, net $ 90,693 - - 92,213 92,213 Financial liabilities: Deposits $ 104,131 - 104,064 - 104,064 Federal funds purchased 597 597 - - 597 Other short-term borrowings 1,763 - 1,763 - 1,763 Long-term debt 14,321 14,223 429 - 14,652 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 short-term investments 2,753 2,753 - - 2,753 Other securities 612 - 612 - 612 Held-to-maturity securities 24 - - 24 24 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 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting | |
Results of Operations and Average Assets by Segment | The following tables present the results of operations and assets by business segment for the three months ended: Wealth General Commercial Branch Consumer and Asset Corporate June 30, 2018 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 427 499 59 45 (10) - 1,020 Provision for (benefit from) loan and lease losses (10) 47 8 (11) (1) - 33 Net interest income after provision for loan and lease losses 437 452 51 56 (9) - 987 Noninterest income: Service charges on deposits 70 67 - - - - 137 Wealth and asset management revenue 1 37 - 104 - (34) (a) 108 Corporate banking revenue 119 1 - - - - 120 Card and processing revenue 14 69 - 1 - - 84 Mortgage banking net revenue - 1 52 - - - 53 Other noninterest income (b) 25 (8) 4 4 225 - 250 Securities losses, net - - - - (5) - (5) Securities losses, net - non-qualifying hedges on MSRs - - (4) - - - (4) Total noninterest income 229 167 52 109 220 (34) 743 Noninterest expense: Salaries, wages and incentives 71 111 42 43 204 - 471 Employee benefits 9 26 10 7 26 - 78 Net occupancy expense 6 44 3 3 18 - 74 Technology and communications 2 1 1 - 63 - 67 Equipment expense 6 12 - - 12 - 30 Card and processing expense 1 30 - - (1) - 30 Other noninterest expense 263 208 51 70 (271) (34) 287 Total noninterest expense 358 432 107 123 51 (34) 1,037 Income (loss) before income taxes 308 187 (4) 42 160 - 693 Applicable income tax expense (benefit) 19 40 (1) 9 40 - 107 Net income (loss) 289 147 (3) 33 120 - 586 Total goodwill $ 630 1,655 - 177 - - 2,462 Total assets $ 58,763 60,281 22,128 9,270 (9,747) (c) - 140,695 Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income. Includes impairment charges of $ 33 for branches and land. For more information refer to Note 7 and Note 21 . Includes bank premises and equipment of $ 37 classified as held for sale. For more information refer to Note 7 . Includes bank premises and equipment of $ 37 classified as held for sale. For more information refer to Note 7 . Wealth General Commercial Branch Consumer and Asset Corporate June 30, 2017 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 415 437 59 37 (9) - 939 Provision for (benefit from) loan and lease losses 22 39 7 (1) (15) - 52 Net interest income after provision for loan and lease losses 393 398 52 38 6 - 887 Noninterest income: Service charges on deposits 73 66 - - - - 139 Wealth and asset management revenue 1 35 - 100 - (33) (a) 103 Corporate banking revenue 100 1 - - - - 101 Card and processing revenue 14 64 - 1 - - 79 Mortgage banking net revenue - 1 54 - - - 55 Other noninterest income (b) 40 22 6 - 17 - 85 Securities gains, net - non-qualifying hedges on MSRs - - 2 - - - 2 Total noninterest income 228 189 62 101 17 (33) 564 Noninterest expense: Salaries, wages and incentives 60 104 40 37 156 - 397 Employee benefits 9 26 10 7 34 - 86 Net occupancy expense 7 43 3 2 15 - 70 Technology and communications 2 1 1 - 53 - 57 Equipment expense 4 13 - - 12 - 29 Card and processing expense 1 33 - - (1) - 33 Other noninterest expense 247 196 55 67 (247) (33) 285 Total noninterest expense 330 416 109 113 22 (33) 957 Income before income taxes 291 171 5 26 1 - 494 Applicable income tax expense 54 60 2 9 2 - 127 Net income (loss) 237 111 3 17 (1) - 367 Total goodwill $ 613 1,655 - 155 - - 2,423 Total assets $ 57,766 57,396 22,442 8,238 (4,775) (c) - 141,067 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Condensed Consolidated Statements of Income. Includes impairment charges of $ 2 for branches and land. For more information refer to Note 7 and Note 21 . Includes bank premises and equipment of $ 41 classified as held for sale. For more information refer to Note 7 . The following tables present the results of operations and assets by business segment for the six months ended: Wealth General Commercial Branch Consumer and Asset Corporate June 30, 2018 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 846 965 118 88 (1) - 2,016 Provision for (benefit from) loan and lease losses (29) 90 20 5 (30) - 56 Net interest income after provision for loan and lease losses 875 875 98 83 29 - 1,960 Noninterest income: Service charges on deposits 139 134 - 1 1 - 275 Wealth and asset management revenue 2 74 - 214 - (69) (a) 221 Corporate banking revenue 205 (c) 2 - 1 - - 208 Card and processing revenue 28 133 - 2 - - 163 Mortgage banking net revenue - 3 106 - - - 109 Other noninterest income (b) 73 7 7 9 612 - 708 Securities losses, net - - - - (15) - (15) Securities losses, net - non-qualifying hedges on MSRs - - (17) - - - (17) Total noninterest income 447 353 96 227 598 (69) 1,652 Noninterest expense: Salaries, wages and incentives 141 220 82 87 388 - 918 Employee benefits 27 53 20 17 71 - 188 Net occupancy expense 13 88 5 6 37 - 149 Technology and communications 4 3 2 - 126 - 135 Equipment expense 11 25 - - 25 - 61 Card and processing expense 2 59 - - (1) - 60 Other noninterest expense 545 423 102 144 (573) (69) 572 Total noninterest expense 743 871 211 254 73 (69) 2,083 Income (loss) before income taxes 579 357 (17) 56 554 - 1,529 Applicable income tax expense (benefit) 32 75 (3) 12 123 - 239 Net income (loss) 547 282 (14) 44 431 - 1,290 Total goodwill $ 630 1,655 - 177 - - 2,462 Total assets $ 58,763 60,281 22,128 9,270 (9,747) (d) - 140,695 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Condensed Consolidated Statements of Income. Includes impairment charges of $ 41 for branches and land. For more information refer to Note 7 and Note 21 . Includes impairment charges of $ 2 for operating lease equipment. For more information refer to Note 21 . Includes bank premises and equipment of $ 37 classified as held for sale. For more information refer to Note 7 . Wealth General Commercial Branch Consumer and Asset Corporate June 30, 2017 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 839 867 120 75 (29) - 1,872 Provision for (benefit from) loan and lease losses 29 80 22 3 (8) - 126 Net interest income after provision for loan and lease losses 810 787 98 72 (21) - 1,746 Total noninterest income Service charges on deposits 146 130 - 1 - - 277 Wealth and asset management revenue 2 71 - 205 - (67) (a) 211 Corporate banking revenue 173 (c) 3 - - (1) - 175 Card and processing revenue 28 122 - 3 - - 153 Mortgage banking net revenue - 3 105 - - - 108 Other noninterest income (b) 80 45 9 - 26 - 160 Securities gains, net - - - - 1 - 1 Securities gains, net - non-qualifying hedges on MSRs - - 2 - - - 2 Total noninterest income 429 374 116 209 26 (67) 1,087 Noninterest expense Salaries, wages and incentives 127 208 77 76 320 - 808 Employee benefits 27 53 20 16 80 - 196 Net occupancy expense 13 90 5 5 35 - 148 Technology and communications 5 2 1 - 108 - 116 Equipment expense 8 26 - - 23 - 57 Card and processing expense 2 62 - - (1) - 63 Other noninterest expense 507 388 110 134 (517) (67) 555 Total noninterest expense 689 829 213 231 48 (67) 1,943 Income (loss) before income taxes 550 332 1 50 (43) - 890 Applicable income tax expense (benefit) 97 117 - 17 (13) - 218 Net income (loss) 453 215 1 33 (30) - 672 Total goodwill $ 613 1,655 - 155 - - 2,423 Total assets $ 57,766 57,396 22,442 8,238 (4,775) (d) - 141,067 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Condensed Consolidated Statements of Income. Includes impairment charge s of $ 5 for branches and land. For more information refer to Note 7 and Note 21 . Includes impairment charges of $ 31 for operating lease equipment. For more information refer to Note 21 . Includes bank premises and equipment of $ 41 classified as held for sale. For more information refer to Note 7 . |
Supplemental Cash Flow (Noncash
Supplemental Cash Flow (Noncash Investing and Financing Activities) (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Interest paid | ||
Interest | $ 451 | $ 334 |
Income taxes paid, net | ||
Income taxes | 120 | 399 |
Transfers: | ||
Portfolio loans to loans held for sale | 171 | 140 |
Loans held for sale to portfolio loans | 67 | 7 |
Portfolio loans to OREO | $ 20 | $ 19 |
Accounting and Reporting Deve51
Accounting and Reporting Developments (Additional Information) (Detail) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Accounting Policies [Abstract] | ||
Deferred gains on sale-leaseback transactions | $ 13 | $ 13 |
Reduction to card and processing revenue | $ 31 | $ 60 |
Securities (Investment Securiti
Securities (Investment Securities) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |||
Investment Holdings | |||||
Available-for-sale debt securities, fair value | [1] | $ 31,961 | $ 31,751 | ||
Available-for-sale debt securities, unrealized losses | (702) | (134) | |||
Available-for-sale debt securities, unrealized gains | 74 | 308 | |||
Available-for-sale debt securities, amortized cost | 32,589 | 31,577 | |||
Held-to-maturity securities, fair value | 19 | 24 | |||
Held-to-maturity, unrealized losses | 0 | 0 | |||
Held-to-maturity, unrealized gains | 0 | 0 | |||
Held-to-maturity securities, amortized cost | [2] | 19 | 24 | ||
Trading debt securities, fair value | 280 | 492 | |||
Equity securities, fair value | 475 | 439 | |||
U.S. Treasury and federal agencies | |||||
Investment Holdings | |||||
Available-for-sale debt securities, fair value | 96 | 98 | |||
Available-for-sale debt securities, unrealized losses | (2) | 0 | |||
Available-for-sale debt securities, unrealized gains | 0 | 0 | |||
Available-for-sale debt securities, amortized cost | 98 | 98 | |||
Obligations of states and political subdivisions | |||||
Investment Holdings | |||||
Available-for-sale debt securities, fair value | 35 | 44 | |||
Available-for-sale debt securities, unrealized losses | 0 | 0 | |||
Available-for-sale debt securities, unrealized gains | 1 | 1 | |||
Available-for-sale debt securities, amortized cost | 34 | 43 | |||
Held-to-maturity securities, fair value | 17 | 22 | |||
Held-to-maturity, unrealized losses | 0 | 0 | |||
Held-to-maturity, unrealized gains | 0 | 0 | |||
Held-to-maturity securities, amortized cost | 17 | 22 | |||
Agency mortgage-backed securities | Residential mortgage backed securities | |||||
Investment Holdings | |||||
Available-for-sale debt securities, fair value | 16,094 | 15,319 | [3] | ||
Available-for-sale debt securities, unrealized losses | (346) | (80) | [3] | ||
Available-for-sale debt securities, unrealized gains | 35 | 118 | |||
Available-for-sale debt securities, amortized cost | 16,405 | 15,281 | |||
Agency mortgage-backed securities | Commercial mortgage backed securities | |||||
Investment Holdings | |||||
Available-for-sale debt securities, fair value | 10,038 | 10,167 | |||
Available-for-sale debt securities, unrealized losses | (277) | (38) | |||
Available-for-sale debt securities, unrealized gains | 7 | 92 | |||
Available-for-sale debt securities, amortized cost | 10,308 | 10,113 | |||
Non-agency mortgage-backed securities | Commercial mortgage backed securities | |||||
Investment Holdings | |||||
Available-for-sale debt securities, fair value | 3,086 | 3,293 | |||
Available-for-sale debt securities, unrealized losses | (68) | (5) | |||
Available-for-sale debt securities, unrealized gains | 5 | 51 | |||
Available-for-sale debt securities, amortized cost | 3,149 | 3,247 | |||
Asset-backed securities and other debt securities | |||||
Investment Holdings | |||||
Available-for-sale debt securities, fair value | 1,998 | 2,218 | |||
Available-for-sale debt securities, unrealized losses | (9) | (11) | |||
Available-for-sale debt securities, unrealized gains | 26 | 46 | |||
Available-for-sale debt securities, amortized cost | 1,981 | 2,183 | |||
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 | |||
Other securities | |||||
Investment Holdings | |||||
Available-for-sale debt securities, fair value | 614 | [4] | 612 | [5] | |
Available-for-sale debt securities, unrealized losses | 0 | [4] | 0 | [5] | |
Available-for-sale debt securities, unrealized gains | 0 | [4] | 0 | [5] | |
Available-for-sale debt securities, amortized cost | $ 614 | [4] | $ 612 | [5] | |
[1] | Amortized cost of $ 32,589 and $ 31,577 at June 30, 2018 and December 31, 2017 , respectively. | ||||
[2] | Fair value of $ 19 and $ 24 at June 30, 2018 and December 31, 2017 , respectively. | ||||
[3] | Includes interest-only mortgage-backed securities of $ 34 as of December 31, 2017 , recorded at fair value with fair value changes recorded in securities gains, net, in the Consolidated Statements of Income. | ||||
[4] | Excludes FHLB, FRB and DTCC restricted stock holdings totaling $ 248 , $ 364 and $ 2 , respectively, at June 30, 2018 . | ||||
[5] | Excludes FHLB, FRB , and DTCC restricted stock holdings totaling $ 248 , $ 362 and $ 2 , respectively, at December 31, 2017 . |
Securities (Investment Securi53
Securities (Investment Securities) (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Investment Holdings | |||
FHLB, restricted stock holdings | $ 248 | $ 248 | |
FRB, restricted stock holdings | 364 | 362 | |
Available-for-sale debt and other securities | [1] | 31,961 | 31,751 |
DTCC, restricted stock holdings | $ 2 | 2 | |
Interest-Only Mortgage-Backed Securities | |||
Investment Holdings | |||
Available-for-sale debt and other securities | $ 34 | ||
[1] | Amortized cost of $ 32,589 and $ 31,577 at June 30, 2018 and December 31, 2017 , respectively. |
Securities (Gains and Losses Re
Securities (Gains and Losses Recognized in Income from Available-for-Sale and Trading Securities) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Securities | |||||
Available-for-sale debt and other securities, realized gains | $ 22 | $ 21 | $ 56 | $ 30 | |
Available-for-sale debt and other securities, realized losses | (22) | (7) | (65) | (8) | |
OTTI | [1] | 0 | (14) | 0 | (24) |
Net realized gains (losses) on available-for-sale debt and other securities | [2] | 0 | 0 | (9) | (2) |
Total trading debt securities gains (losses) | [3] | (4) | 2 | (18) | 3 |
Total equity securities gains (losses) | [4],[5] | (5) | 2 | (8) | 3 |
Total available for sale debt and other, trading debt and equity securities gains (losses) recognized in income | $ (9) | $ 4 | $ (35) | $ 4 | |
[1] | Included in securities (losses) gains, net in the Condensed Consolidated Statements of Income. | ||||
[2] | Excludes net gains on interest-only mortgage-backed securities of $ 0 and $ 1 for the three and six months ended June 30, 2018 , respectively, and net losses of $ 2 and $ 1 for the three and six months ended June 30, 2017 , respectively. | ||||
[3] | Includes an immaterial net loss and a net loss of $ 2 for the three and six months ended June 30, 2018 , respectively, and immaterial net gains for both the three and six months ended June 30, 2017 , respectively, recorded in corporate banking | ||||
[4] | Includes net unrealized losses of $ 5 and $ 6 for the three and six months ended June 30, 2018 , respectively, and net unrealized gains of $ 2 and $ 3 for the three and six months ended June 30, 2017 , respectively. | ||||
[5] | Includes immaterial net gains for both the three and six months en ded June 30, 2018 and 2017 recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. |
Securities (Gains and Losses 55
Securities (Gains and Losses Recognized in Income from Available-for-Sale and Trading Securities) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Investment Holdings | |||||
Total trading debt securities gains (losses) | [1] | $ (4) | $ 2 | $ (18) | $ 3 |
Total equity securities gains (losses) | [2],[3] | (5) | 2 | (8) | 3 |
Equity securities unrealized gains (losses) | (5) | 2 | (6) | 3 | |
Corporate Banking Revenue and Wealth and Asset Management Revenue | |||||
Investment Holdings | |||||
Total trading debt securities gains (losses) | (2) | ||||
Interest-Only Mortgage-Backed Securities | |||||
Investment Holdings | |||||
Net gains/losses on interest-only mortgage-backed securities | $ 0 | $ (2) | $ 1 | $ (1) | |
[1] | Includes an immaterial net loss and a net loss of $ 2 for the three and six months ended June 30, 2018 , respectively, and immaterial net gains for both the three and six months ended June 30, 2017 , respectively, recorded in corporate banking | ||||
[2] | Includes net unrealized losses of $ 5 and $ 6 for the three and six months ended June 30, 2018 , respectively, and net unrealized gains of $ 2 and $ 3 for the three and six months ended June 30, 2017 , respectively. | ||||
[3] | Includes immaterial net gains for both the three and six months en ded June 30, 2018 and 2017 recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. |
Securities (Securities - Additi
Securities (Securities - Additional Information) (Detail) - USD ($) $ in Billions | Jun. 30, 2018 | Dec. 31, 2017 |
Investment Holdings | ||
Securities with a fair value, pledged as collateral | $ 6.8 | $ 7.8 |
Securities (Amortized Cost and
Securities (Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Securities) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Debt securities: | |||
Less than 1 year | [1] | $ 214 | |
1-5 years | [1] | 8,923 | |
5-10 years | [1] | 18,047 | |
Over 10 years | [1] | 4,791 | |
Other securities | 614 | ||
Available-for-sale debt securities, amortized cost | 32,589 | $ 31,577 | |
Debt securities: | |||
Less than 1 year | [1] | 207 | |
1-5 years | [1] | 8,800 | |
5-10 years | [1] | 17,669 | |
Over 10 years | [1] | 4,671 | |
Other securities | 614 | ||
Available-for-sale debt and other securities, fair value | [2] | 31,961 | 31,751 |
Debt securities: | |||
Less than 1 year | [1] | 1 | |
1-5 years | [1] | 16 | |
5-10 years | [1] | 0 | |
Over 10 years | [1] | 2 | |
Other securities | 0 | ||
Held-to-maturity securities, amortized cost | [3] | 19 | 24 |
Debt securities: | |||
Under 1 year | [1] | 1 | |
1-5 years | [1] | 16 | |
5-10 years | [1] | 0 | |
Over 10 years | [1] | 2 | |
Other securities | 0 | ||
Held-to-maturity securities, fair value | $ 19 | $ 24 | |
[1] | (a) Actual maturities may differ from contractual maturities when a right to call or prepay obligations exists with or without call or prepayment penalties . | ||
[2] | Amortized cost of $ 32,589 and $ 31,577 at June 30, 2018 and December 31, 2017 , respectively. | ||
[3] | Fair value of $ 19 and $ 24 at June 30, 2018 and December 31, 2017 , respectively. |
Securities (Fair Value and Gros
Securities (Fair Value and Gross Unrealized Losses on Available-for-Sale Securities) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | $ 24,095 | $ 11,101 | |
Less than 12 months Unrealized Losses | (623) | (85) | |
12 months or more Fair Value | 1,560 | 1,536 | |
12 months or more Unrealized Losses | (79) | (49) | |
Total Fair Value | 25,655 | 12,637 | |
Total Unrealized Losses | (702) | (134) | |
U.S. Treasury and federal agencies | |||
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | 96 | 98 | |
Less than 12 months Unrealized Losses | (2) | 0 | |
12 months or more Fair Value | 0 | 0 | |
12 months or more Unrealized Losses | 0 | 0 | |
Total Fair Value | 96 | 98 | |
Total Unrealized Losses | (2) | 0 | |
Agency mortgage-backed securities | Residential mortgage backed securities | |||
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | 12,456 | 7,337 | |
Less than 12 months Unrealized Losses | (313) | (59) | |
12 months or more Fair Value | 478 | 479 | |
12 months or more Unrealized Losses | (33) | (21) | |
Total Fair Value | 12,934 | 7,816 | |
Total Unrealized Losses | (346) | (80) | [1] |
Agency mortgage-backed securities | Commercial mortgage backed securities | |||
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | 8,719 | 2,900 | |
Less than 12 months Unrealized Losses | (247) | (22) | |
12 months or more Fair Value | 547 | 526 | |
12 months or more Unrealized Losses | (30) | (16) | |
Total Fair Value | 9,266 | 3,426 | |
Total Unrealized Losses | (277) | (38) | |
Non-agency mortgage-backed securities | Commercial mortgage backed securities | |||
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | 2,540 | 449 | |
Less than 12 months Unrealized Losses | (59) | (2) | |
12 months or more Fair Value | 140 | 145 | |
12 months or more Unrealized Losses | (9) | (3) | |
Total Fair Value | 2,680 | 594 | |
Total Unrealized Losses | (68) | (5) | |
Asset-backed securities and other debt securities | |||
Investments, Unrealized Loss Position | |||
Less than 12 months Fair Value | 284 | 317 | |
Less than 12 months Unrealized Losses | (2) | (2) | |
12 months or more Fair Value | 395 | 386 | |
12 months or more Unrealized Losses | (7) | (9) | |
Total Fair Value | 679 | 703 | |
Total Unrealized Losses | $ (9) | $ (11) | |
[1] | Includes interest-only mortgage-backed securities of $ 34 as of December 31, 2017 , recorded at fair value with fair value changes recorded in securities gains, net, in the Consolidated Statements of Income. |
Loans & Leases (Loans and Lease
Loans & Leases (Loans and Leases Classified by Primary Purpose) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Loans held for sale: | |||
Loans and leases held for sale | [1] | $ 783 | $ 492 |
Portfolio loans and leases: | |||
Commercial and industrial loans | 41,403 | 41,170 | |
Commercial mortgage loans | 6,625 | 6,604 | |
Commercial construction loans | 4,687 | 4,553 | |
Commercial leases | 3,788 | 4,068 | |
Residential mortgage loans | 15,640 | 15,591 | |
Home equity | 6,599 | 7,014 | |
Automobile loans | 8,938 | 9,112 | |
Credit card | 2,270 | 2,299 | |
Other consumer loans and leases | 1,982 | 1,559 | |
Portfolio loans and leases | [2],[3] | 91,932 | 91,970 |
Commercial Portfolio Segment | |||
Portfolio loans and leases: | |||
Portfolio loans and leases | 56,503 | 56,395 | |
Commercial Portfolio Segment | Commercial and industrial loans | |||
Loans held for sale: | |||
Loans and leases held for sale | 44 | 0 | |
Commercial Portfolio Segment | Commercial mortgage loans | |||
Loans held for sale: | |||
Loans and leases held for sale | 72 | 6 | |
Commercial Portfolio Segment | Commercial leases | |||
Loans held for sale: | |||
Loans and leases held for sale | 9 | 0 | |
Residential Mortgage Loans | Residential mortgage loans | |||
Loans held for sale: | |||
Loans and leases held for sale | 658 | 486 | |
Consumer Portfolio Segment | |||
Portfolio loans and leases: | |||
Portfolio loans and leases | $ 35,429 | $ 35,575 | |
[1] | Includes $ 658 and $ 399 of residential mortgage loans held for sale measured at fair value and $ 8 and $ 0 of commercial loans held for sale measured at fair value at June 30, 2018 and December 31, 2017 , respectively. | ||
[2] | Includes $ 162 and $ 137 of residential mortgage loans measured at fair value at June 30, 2018 and December 31, 2017 , respectively. | ||
[3] | Includes $ 47 and $ 62 of other short-term investments , $ 908 and $ 1,297 of portfolio loans and leases, $ (5) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 2 and $ 2 of other liabilities, and $ 830 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respe ctive captions above at June 30, 2018 and December 31, 2017 , respectively. For further information refer to Note 9 . |
Loans & Leases (Loans and Lea60
Loans & Leases (Loans and Leases - Additional Information) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable | ||
Unamortized premiums and discounts, deferred direct loan origination fees and costs, and fair value adjustments | $ 286 | $ 282 |
Unearned Income | 496 | 523 |
Loans pledged at the FHLB | 13,300 | 13,000 |
Loans pledged at the FRB | $ 40,400 | $ 39,800 |
Loans & Leases (Total Loans And
Loans & Leases (Total Loans And Leases Managed By The Bancorp) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||||
Balance | $ 92,715 | $ 92,715 | $ 92,462 | ||
Balance of Loans 90 days or More Past Due | 89 | 89 | 97 | ||
Net Charge-Offs | 94 | $ 64 | 175 | $ 153 | |
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 | 41,447 | 41,447 | 41,170 | ||
Balance of Loans 90 days or More Past Due | 4 | 4 | 3 | ||
Net Charge-Offs | 47 | 18 | 74 | 52 | |
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 | 6,697 | 6,697 | 6,610 | ||
Balance of Loans 90 days or More Past Due | 0 | 0 | 0 | ||
Net Charge-Offs | 2 | 5 | 2 | 11 | |
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 | 4,687 | 4,687 | 4,553 | ||
Balance of Loans 90 days or More Past Due | 0 | 0 | 0 | ||
Net Charge-Offs | 0 | 0 | 0 | 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 | 3,797 | 3,797 | 4,068 | ||
Balance of Loans 90 days or More Past Due | 0 | 0 | 0 | ||
Net Charge-Offs | 0 | 1 | 0 | 2 | |
Residential Mortgage | Residential Mortgage | |||||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||||
Balance | 16,298 | 16,298 | 16,077 | ||
Balance of Loans 90 days or More Past Due | 44 | 44 | 57 | ||
Net Charge-Offs | 2 | 2 | 4 | 7 | |
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 | 6,599 | 6,599 | 7,014 | ||
Balance of Loans 90 days or More Past Due | 0 | 0 | 0 | ||
Net Charge-Offs | 2 | 5 | 7 | 11 | |
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 | 8,938 | 8,938 | 9,112 | ||
Balance of Loans 90 days or More Past Due | 10 | 10 | 10 | ||
Net Charge-Offs | 8 | 6 | 19 | 18 | |
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 | 2,270 | 2,270 | 2,299 | ||
Balance of Loans 90 days or More Past Due | 31 | 31 | 27 | ||
Net Charge-Offs | 26 | 22 | 52 | 43 | |
Other Consumer 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 | 1,982 | 1,982 | 1,559 | ||
Balance of Loans 90 days or More Past Due | 0 | 0 | 0 | ||
Net Charge-Offs | 7 | $ 5 | 17 | $ 9 | |
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 | 783 | 783 | 492 | ||
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 | $ 91,932 | $ 91,932 | $ 91,970 |
Credit Quality (Summary of Tran
Credit Quality (Summary of Transactions in the ALLL by Portfolio segment) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
FinancingReceivableAllowanceForCreditLossesLineItems | |||||||
Balance, beginning of period | $ 1,138 | [1],[2] | $ 1,238 | $ 1,196 | [2],[3] | $ 1,253 | [2],[3] |
Losses charged-off | (118) | [4] | (95) | (222) | [5] | (202) | |
Recoveries of losses previously charged- off | 24 | [4] | 31 | 47 | [5] | 49 | |
Provision for (benefit from) loan and lease losses | 33 | 52 | 56 | 126 | |||
Balance, end of period | 1,077 | [1],[2] | 1,226 | 1,077 | [1],[2] | 1,226 | |
Commercial Portfolio Segment | |||||||
FinancingReceivableAllowanceForCreditLossesLineItems | |||||||
Balance, beginning of period | 713 | [1] | 826 | 753 | [3] | 831 | [3] |
Losses charged-off | (54) | (41) | (87) | (86) | |||
Recoveries of losses previously charged- off | 5 | 17 | 11 | 21 | |||
Provision for (benefit from) loan and lease losses | (10) | 15 | (23) | 51 | |||
Balance, end of period | 654 | [1] | 817 | 654 | [1] | 817 | |
Residential Mortgage Loans | |||||||
FinancingReceivableAllowanceForCreditLossesLineItems | |||||||
Balance, beginning of period | 89 | [1] | 96 | 89 | [3] | 96 | [3] |
Losses charged-off | (4) | (4) | (7) | (10) | |||
Recoveries of losses previously charged- off | 2 | 2 | 3 | 3 | |||
Provision for (benefit from) loan and lease losses | (1) | (1) | 1 | 4 | |||
Balance, end of period | 86 | [1] | 93 | 86 | [1] | 93 | |
Consumer Portfolio Segment | |||||||
FinancingReceivableAllowanceForCreditLossesLineItems | |||||||
Balance, beginning of period | 222 | [1] | 204 | 234 | [3] | 214 | [3] |
Losses charged-off | (60) | [4] | (50) | (128) | [5] | (106) | |
Recoveries of losses previously charged- off | 17 | [4] | 12 | 33 | [5] | 25 | |
Provision for (benefit from) loan and lease losses | 50 | 40 | 90 | 73 | |||
Balance, end of period | 229 | [1] | 206 | 229 | [1] | 206 | |
Unallocated | |||||||
FinancingReceivableAllowanceForCreditLossesLineItems | |||||||
Balance, beginning of period | 114 | [1] | 112 | 120 | [3] | 112 | [3] |
Losses charged-off | 0 | 0 | 0 | 0 | |||
Recoveries of losses previously charged- off | 0 | 0 | 0 | 0 | |||
Provision for (benefit from) loan and lease losses | (6) | (2) | (12) | (2) | |||
Balance, end of period | $ 108 | [1] | $ 110 | $ 108 | [1] | $ 110 | |
[1] | Includes $ 1 related to leveraged leases at June 30, 2018 . | ||||||
[2] | Includes $ 47 and $ 62 of other short-term investments , $ 908 and $ 1,297 of portfolio loans and leases, $ (5) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 2 and $ 2 of other liabilities, and $ 830 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respe ctive captions above at June 30, 2018 and December 31, 2017 , respectively. For further information refer to Note 9 . | ||||||
[3] | Includes $ 1 related to leveraged leases at December 31, 2017 . | ||||||
[4] | (a) For the three months ended June 30, 2018, the Bancorp recorded $6 in both losses charged-off and recoveries of losses charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. | ||||||
[5] | (a) For the six months ended June 30, 2018, the Bancorp recorded $10 in both losses charged-off and recoveries of losses charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. |
Credit Quality (Summary of Tr63
Credit Quality (Summary of Transactions in the ALLL by Portfolio segment) (Parenthetical) (Detail) - Other Consumer Loans, Point of Sale - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Losses charged-off | $ 6 | $ 10 |
Allowance for Loan and Lease Losses, Recoveries of Bad Debts | $ 6 | $ 10 |
Credit Quality (Summary of the
Credit Quality (Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Mar. 31, 2018 | [1] | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | [2] | |||
FinancingReceivableAllowanceForCreditLossesLineItems | |||||||||||
Individually evaluated for impairment | $ 178 | [1] | $ 200 | [2] | |||||||
Collectively evaluated for impairment | 791 | [1] | 876 | [2] | |||||||
Unallocated | 108 | [1] | 120 | [2] | |||||||
Total allowance for loan and lease losses | 1,077 | [1],[3] | $ 1,138 | [3] | 1,196 | [2],[3] | $ 1,226 | $ 1,238 | $ 1,253 | [3] | |
Individually evaluated for impairment | 1,485 | [4] | 1,545 | [5] | |||||||
Collectively evaluated for impairment | 90,285 | [4] | 90,286 | [5] | |||||||
Loans acquired with deteriorated credit quality | [5] | 2 | |||||||||
Total portfolio loans and leases | 91,770 | [4],[6] | 91,833 | [5],[7] | |||||||
Commercial Portfolio Segment | |||||||||||
FinancingReceivableAllowanceForCreditLossesLineItems | |||||||||||
Individually evaluated for impairment | 75 | [1] | 94 | [2] | |||||||
Collectively evaluated for impairment | 579 | [1] | 659 | [2] | |||||||
Unallocated | 0 | [1] | 0 | [2] | |||||||
Total allowance for loan and lease losses | 654 | [1] | 713 | 753 | [2] | 817 | 826 | 831 | |||
Individually evaluated for impairment | 400 | [4] | 560 | [5] | |||||||
Collectively evaluated for impairment | 56,103 | [4] | 55,835 | [5] | |||||||
Loans acquired with deteriorated credit quality | [5] | 0 | |||||||||
Total portfolio loans and leases | 56,503 | [4] | 56,395 | [5] | |||||||
Residential Mortgage Loans | |||||||||||
FinancingReceivableAllowanceForCreditLossesLineItems | |||||||||||
Individually evaluated for impairment | 65 | [1] | 64 | [2] | |||||||
Collectively evaluated for impairment | 21 | [1] | 25 | [2] | |||||||
Unallocated | 0 | [1] | 0 | [2] | |||||||
Total allowance for loan and lease losses | 86 | [1] | 89 | 89 | [2] | 93 | 96 | 96 | |||
Individually evaluated for impairment | 788 | [4] | 665 | [5] | |||||||
Collectively evaluated for impairment | 14,690 | [4] | 14,787 | [5] | |||||||
Loans acquired with deteriorated credit quality | [5] | 2 | |||||||||
Total portfolio loans and leases | 15,478 | [4] | 15,454 | [5] | |||||||
Consumer Portfolio Segment | |||||||||||
FinancingReceivableAllowanceForCreditLossesLineItems | |||||||||||
Individually evaluated for impairment | 38 | [1] | 42 | [2] | |||||||
Collectively evaluated for impairment | 191 | [1] | 192 | [2] | |||||||
Unallocated | 0 | [1] | 0 | [2] | |||||||
Total allowance for loan and lease losses | 229 | [1] | 222 | 234 | [2] | 206 | 204 | 214 | |||
Individually evaluated for impairment | 297 | [4] | 320 | [5] | |||||||
Collectively evaluated for impairment | 19,492 | [4] | 19,664 | [5] | |||||||
Loans acquired with deteriorated credit quality | [5] | 0 | |||||||||
Total portfolio loans and leases | 19,789 | [4] | 19,984 | [5] | |||||||
Unallocated | |||||||||||
FinancingReceivableAllowanceForCreditLossesLineItems | |||||||||||
Individually evaluated for impairment | 0 | [1] | 0 | [2] | |||||||
Collectively evaluated for impairment | 0 | [1] | 0 | [2] | |||||||
Unallocated | 108 | [1] | 120 | [2] | |||||||
Total allowance for loan and lease losses | 108 | [1] | $ 114 | 120 | [2] | $ 110 | $ 112 | $ 112 | |||
Individually evaluated for impairment | 0 | [4] | 0 | [5] | |||||||
Collectively evaluated for impairment | 0 | [4] | 0 | [5] | |||||||
Loans acquired with deteriorated credit quality | [5] | 0 | |||||||||
Total portfolio loans and leases | $ 0 | [4] | $ 0 | [5] | |||||||
[1] | Includes $ 1 related to leveraged leases at June 30, 2018 . | ||||||||||
[2] | Includes $ 1 related to leveraged leases at December 31, 2017 . | ||||||||||
[3] | Includes $ 47 and $ 62 of other short-term investments , $ 908 and $ 1,297 of portfolio loans and leases, $ (5) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 2 and $ 2 of other liabilities, and $ 830 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respe ctive captions above at June 30, 2018 and December 31, 2017 , respectively. For further information refer to Note 9 . | ||||||||||
[4] | Excludes $ 162 of residential mortgage loans measured at fair value and includes $ 65 0 of leveraged leases, net of unearned income at June 30, 2018 . | ||||||||||
[5] | Excludes $ 137 of residential mortga ge loans measured at fair value and includes $ 674 of leveraged leases, net of unearned income at December 31, 2017 . | ||||||||||
[6] | Excludes $ 162 of residential mortgage loans measured at fair value at June 30, 2018 . | ||||||||||
[7] | Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . |
Credit Quality (Summary of th65
Credit Quality (Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment) (Parenthetical) (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018USD ($) | [1],[2] | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | [2],[3] | ||||||
FinancingReceivableAllowanceForCreditLossesLineItems | |||||||||||||||
Allowance for loan and lease losses | $ 1,077 | [1],[2] | $ 1,226 | $ 1,077 | [1],[2] | $ 1,226 | $ 1,196 | [2],[3] | $ 1,138 | $ 1,238 | $ 1,253 | ||||
Portfolio loans and leases | $ 91,770 | [4],[5] | $ 91,770 | [4],[5] | 91,833 | [6],[7] | |||||||||
Number of contracts | 2,273 | [8],[9],[10],[11] | 2,430 | [12],[13],[14],[15] | 4,544 | [8],[9],[10],[11] | 4,489 | [12],[13],[14],[15] | |||||||
Recorded investment | $ 1,485 | [16] | $ 1,485 | [16] | 1,545 | [17] | |||||||||
Variable Interest Entity, Primary Beneficiary | |||||||||||||||
FinancingReceivableAllowanceForCreditLossesLineItems | |||||||||||||||
Allowance for loan and lease losses | 5 | 5 | $ 6 | ||||||||||||
Commercial | Variable Interest Entity, Primary Beneficiary | |||||||||||||||
FinancingReceivableAllowanceForCreditLossesLineItems | |||||||||||||||
Number of contracts | 5 | ||||||||||||||
Leveraged Leases | |||||||||||||||
FinancingReceivableAllowanceForCreditLossesLineItems | |||||||||||||||
Allowance for loan and lease losses | 1 | 1 | $ 1 | ||||||||||||
Portfolio loans and leases | 650 | 650 | 674 | ||||||||||||
Residential Mortgage Loans | |||||||||||||||
FinancingReceivableAllowanceForCreditLossesLineItems | |||||||||||||||
Portfolio loans and leases at fair value | $ 162 | $ 162 | $ 137 | ||||||||||||
[1] | Includes $ 1 related to leveraged leases at June 30, 2018 . | ||||||||||||||
[2] | Includes $ 47 and $ 62 of other short-term investments , $ 908 and $ 1,297 of portfolio loans and leases, $ (5) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 2 and $ 2 of other liabilities, and $ 830 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respe ctive captions above at June 30, 2018 and December 31, 2017 , respectively. For further information refer to Note 9 . | ||||||||||||||
[3] | Includes $ 1 related to leveraged leases at December 31, 2017 . | ||||||||||||||
[4] | Excludes $ 162 of residential mortgage loans measured at fair value and includes $ 65 0 of leveraged leases, net of unearned income at June 30, 2018 . | ||||||||||||||
[5] | Excludes $ 162 of residential mortgage loans measured at fair value at June 30, 2018 . | ||||||||||||||
[6] | Excludes $ 137 of residential mortga ge loans measured at fair value and includes $ 674 of leveraged leases, net of unearned income at December 31, 2017 . | ||||||||||||||
[7] | Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . | ||||||||||||||
[8] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | ||||||||||||||
[9] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | ||||||||||||||
[10] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | ||||||||||||||
[11] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | ||||||||||||||
[12] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | ||||||||||||||
[13] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | ||||||||||||||
[14] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | ||||||||||||||
[15] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | ||||||||||||||
[16] | Includes $ 104 , $ 773 and $ 251 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 173 , $ 15 an d $ 46 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at June 30, 2018 . | ||||||||||||||
[17] | Includes $ 249 , $ 652 and $ 275 , respectively, of commercial, residential mortgage and consumer portfolio TDR s on accrual status and $ 150 , $ 13 and $ 45 , respectively , of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2017 . |
Credit Quality (Summary of th66
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Commercial Portfolio Segment by Class) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | ||
Financing Receivable, Modifications | ||||
Total loans and leases | $ 91,770 | [1],[2] | $ 91,833 | [3],[4] |
Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 56,503 | 56,395 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 41,403 | 41,170 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,391 | 3,362 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,234 | 3,242 | ||
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 4,687 | 4,553 | ||
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,788 | 4,068 | ||
Pass | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 54,319 | 53,612 | ||
Pass | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 39,601 | 38,813 | ||
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,217 | 3,207 | ||
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,200 | 3,117 | ||
Pass | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 4,652 | 4,553 | ||
Pass | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,649 | 3,922 | ||
Special Mention | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 1,049 | 1,290 | ||
Special Mention | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 899 | 1,115 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 40 | 75 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 21 | 28 | ||
Special Mention | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 35 | 0 | ||
Special Mention | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 54 | 72 | ||
Substandard | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 1,117 | 1,486 | ||
Substandard | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 885 | 1,235 | ||
Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 134 | 80 | ||
Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 13 | 97 | ||
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 | 85 | 74 | ||
Doubtful | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 18 | 7 | ||
Doubtful | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 18 | 7 | ||
Doubtful | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 0 | 0 | ||
Doubtful | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 0 | 0 | ||
Doubtful | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 0 | 0 | ||
Doubtful | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | $ 0 | $ 0 | ||
[1] | Excludes $ 162 of residential mortgage loans measured at fair value and includes $ 65 0 of leveraged leases, net of unearned income at June 30, 2018 . | |||
[2] | Excludes $ 162 of residential mortgage loans measured at fair value at June 30, 2018 . | |||
[3] | Excludes $ 137 of residential mortga ge loans measured at fair value and includes $ 674 of leveraged leases, net of unearned income at December 31, 2017 . | |||
[4] | Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . |
Credit Quality (Summary of th67
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |||
Total loans and leases | $ 91,770 | [1],[2] | $ 91,833 | [3],[4] | |
Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 6,599 | 7,014 | |||
Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 8,938 | 9,112 | |||
Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 2,270 | 2,299 | |||
Other consumer loans | Consumer Portfolio Segment | |||||
Total loans and leases | 1,982 | 1,559 | |||
Performing Financing Receivable | |||||
Total loans and leases | [5] | 35,135 | 35,307 | ||
Performing Financing Receivable | Residential Mortgage | Residential Mortgage Loans | |||||
Total loans and leases | [5] | 15,450 | 15,424 | ||
Performing Financing Receivable | Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 6,528 | 6,940 | |||
Performing Financing Receivable | Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 8,933 | 9,111 | |||
Performing Financing Receivable | Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 2,243 | 2,273 | |||
Performing Financing Receivable | Other consumer loans | Consumer Portfolio Segment | |||||
Total loans and leases | 1,981 | 1,559 | |||
Nonperforming Financing Receivable | |||||
Total loans and leases | [5] | 132 | 131 | ||
Nonperforming Financing Receivable | Residential Mortgage | Residential Mortgage Loans | |||||
Total loans and leases | [5] | 28 | 30 | ||
Nonperforming Financing Receivable | Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 71 | 74 | |||
Nonperforming Financing Receivable | Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 5 | 1 | |||
Nonperforming Financing Receivable | Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 27 | 26 | |||
Nonperforming Financing Receivable | Other consumer loans | Consumer Portfolio Segment | |||||
Total loans and leases | $ 1 | $ 0 | |||
[1] | Excludes $ 162 of residential mortgage loans measured at fair value and includes $ 65 0 of leveraged leases, net of unearned income at June 30, 2018 . | ||||
[2] | Excludes $ 162 of residential mortgage loans measured at fair value at June 30, 2018 . | ||||
[3] | Excludes $ 137 of residential mortga ge loans measured at fair value and includes $ 674 of leveraged leases, net of unearned income at December 31, 2017 . | ||||
[4] | Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . | ||||
[5] | (a) Excludes $ 162 and $ 137 of residential mortgage loans measured at fair value at June 30, 2018 and December 31, 2017 , resp ectively. |
Credit Quality (Summary of th68
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class) (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Residential Mortgage Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Portfolio loans and leases at fair value | $ 162 | $ 137 |
Credit Quality (Summarizes the
Credit Quality (Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | ||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | $ 91,238 | [1],[2] | $ 91,195 | [3],[4] |
Total Past Due | 532 | [2] | 638 | [4] |
Total portfolio loans and leases | 91,770 | [2],[5] | 91,833 | [4],[6] |
90-Days past Due and Still Accruing | 89 | [2] | 97 | [4] |
30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 241 | [1],[2] | 333 | [3],[4] |
90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 291 | [1],[2] | 305 | [3],[4] |
Commercial Portfolio Segment | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total portfolio loans and leases | 56,503 | 56,395 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 41,281 | [1] | 41,027 | [3] |
Total Past Due | 122 | 143 | ||
Total portfolio loans and leases | 41,403 | 41,170 | ||
90-Days past Due and Still Accruing | 4 | 3 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 19 | [1] | 42 | [3] |
Commercial Portfolio Segment | Commercial and Industrial Loans | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 103 | [1] | 101 | [3] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 3,384 | [1] | 3,351 | [3] |
Total Past Due | 7 | 11 | ||
Total portfolio loans and leases | 3,391 | 3,362 | ||
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 | 1 | [1] | 3 | [3] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 6 | [1] | 8 | [3] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 3,228 | [1] | 3,235 | [3] |
Total Past Due | 6 | 7 | ||
Total portfolio loans and leases | 3,234 | 3,242 | ||
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 | 3 | [1] | 0 | [3] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 3 | [1] | 7 | [3] |
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 4,687 | [1] | 4,552 | [3] |
Total Past Due | 0 | 1 | ||
Total portfolio loans and leases | 4,687 | 4,553 | ||
90-Days past Due and Still Accruing | 0 | 0 | ||
Commercial Portfolio Segment | Commercial Construction Loans | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 0 | [1] | 1 | [3] |
Commercial Portfolio Segment | Commercial Construction Loans | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 0 | [1] | 0 | [3] |
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 3,784 | [1] | 4,065 | [3] |
Total Past Due | 4 | 3 | ||
Total portfolio loans and leases | 3,788 | 4,068 | ||
90-Days past Due and Still Accruing | 0 | 0 | ||
Commercial Portfolio Segment | Commercial Leases | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 0 | [1] | 3 | [3] |
Commercial Portfolio Segment | Commercial Leases | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 4 | [1] | 0 | [3] |
Residential Mortgage | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 15,382 | [1],[2],[7] | 15,301 | [3],[4],[8] |
Total Past Due | 96 | [2],[7] | 153 | [4],[8] |
Total portfolio loans and leases | 15,478 | [2],[7] | 15,454 | [4],[8] |
90-Days past Due and Still Accruing | 44 | [2],[7] | 57 | [4],[8] |
Residential Mortgage | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 24 | [1],[2],[7] | 66 | [3],[4],[8] |
Residential Mortgage | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 72 | [1],[2],[7] | 87 | [3],[4],[8] |
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 6,482 | [1] | 6,888 | [3] |
Total Past Due | 117 | 126 | ||
Total portfolio loans and leases | 6,599 | 7,014 | ||
90-Days past Due and Still Accruing | 0 | 0 | ||
Consumer Portfolio Segment | Home Equity | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 66 | [1] | 70 | [3] |
Consumer Portfolio Segment | Home Equity | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 51 | [1] | 56 | [3] |
Consumer Portfolio Segment | Automobile Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 8,840 | [1] | 8,992 | [3] |
Total Past Due | 98 | 120 | ||
Total portfolio loans and leases | 8,938 | 9,112 | ||
90-Days past Due and Still Accruing | 10 | 10 | ||
Consumer Portfolio Segment | Automobile Loans | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 84 | [1] | 107 | [3] |
Consumer Portfolio Segment | Automobile Loans | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 14 | [1] | 13 | [3] |
Consumer Portfolio Segment | Credit Card | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 2,198 | [1] | 2,230 | [3] |
Total Past Due | 72 | 69 | ||
Total portfolio loans and leases | 2,270 | 2,299 | ||
90-Days past Due and Still Accruing | 31 | 27 | ||
Consumer Portfolio Segment | Credit Card | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 36 | [1] | 36 | [3] |
Consumer Portfolio Segment | Credit Card | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 36 | [1] | 33 | [3] |
Consumer Portfolio Segment | Other Consumer Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 1,972 | [1] | 1,554 | [3] |
Total Past Due | 10 | 5 | ||
Total portfolio loans and leases | 1,982 | 1,559 | ||
90-Days past Due and Still Accruing | 0 | 0 | ||
Consumer Portfolio Segment | Other Consumer Loans | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 8 | [1] | 5 | [3] |
Consumer Portfolio Segment | Other Consumer Loans | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | $ 2 | [1] | $ 0 | [3] |
[1] | Includes accrual and nonaccrual loans and leases. | |||
[2] | Excludes $ 162 of residential mortgage loans measured at fair value at June 30, 2018 . | |||
[3] | Includes accrual and nonaccrual loans and leases. | |||
[4] | Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . | |||
[5] | Excludes $ 162 of residential mortgage loans measured at fair value and includes $ 65 0 of leveraged leases, net of unearned income at June 30, 2018 . | |||
[6] | Excludes $ 137 of residential mortga ge loans measured at fair value and includes $ 674 of leveraged leases, net of unearned income at December 31, 2017 . | |||
[7] | Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. A s of June 30, 2018 , $ 71 of these loans were 30-89 days past due and $ 237 were 90 days or more past due. The Bancorp recognized $ 1 and $ 3 of losses during the three and six months ended June 30, 2018 due to claim denials and curtailments associated with these insured or guaranteed loans. | |||
[8] | Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2017 , $ 95 of these loa ns were 30-89 days past due and $ 290 were 90 days or more p ast due. The Bancorp recognized $ 1 and $ 3 of losses during the three and six months ended June 30, 2017, respectively, due to c laim denials and cu rtailments associated with these insured or guaranteed loans. |
Credit Quality (Summarizes th70
Credit Quality (Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | ||||
Financing Receivable, Recorded Investment, Past Due | ||||||||
Total Past Due | $ 532 | [1] | $ 532 | [1] | $ 638 | [2] | ||
30-89 Days Past Due | ||||||||
Financing Receivable, Recorded Investment, Past Due | ||||||||
Total Past Due | 241 | [1],[3] | 241 | [1],[3] | 333 | [2],[4] | ||
90 Days and Greater Past Due | ||||||||
Financing Receivable, Recorded Investment, Past Due | ||||||||
Total Past Due | 291 | [1],[3] | 291 | [1],[3] | 305 | [2],[4] | ||
Residential Mortgage Loans | ||||||||
Financing Receivable, Recorded Investment, Past Due | ||||||||
Portfolio loans and leases at fair value | 162 | 162 | 137 | |||||
Residential Mortgage Loans | Federal Housing Administration Loan | ||||||||
Financing Receivable, Recorded Investment, Past Due | ||||||||
Losses Due To Claim Denials And Curtailments | 1 | $ 1 | 3 | $ 3 | ||||
Residential Mortgage Loans | Federal Housing Administration Loan | 30-89 Days Past Due | ||||||||
Financing Receivable, Recorded Investment, Past Due | ||||||||
Total Past Due | 71 | 71 | 95 | |||||
Residential Mortgage Loans | Federal Housing Administration Loan | 90 Days and Greater Past Due | ||||||||
Financing Receivable, Recorded Investment, Past Due | ||||||||
Total Past Due | $ 237 | $ 237 | $ 290 | |||||
[1] | Excludes $ 162 of residential mortgage loans measured at fair value at June 30, 2018 . | |||||||
[2] | Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . | |||||||
[3] | Includes accrual and nonaccrual loans and leases. | |||||||
[4] | Includes accrual and nonaccrual loans and leases. |
Credit Quality (Summarizes th71
Credit Quality (Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | ||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | $ 992 | $ 1,158 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 597 | 521 | ||
Unpaid Principal Balance | 1,589 | 1,679 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 939 | 1,068 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 546 | 477 | ||
Recorded investment | 1,485 | [1] | 1,545 | [2] |
Allowance | 178 | 200 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 248 | 433 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 147 | 151 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 204 | 358 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 124 | 131 | ||
Allowance | 63 | 87 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 4 | 16 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 15 | 18 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 3 | 14 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 12 | 15 | ||
Allowance | 1 | 7 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 2 | 4 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 28 | 35 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 1 | 3 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 27 | 35 | ||
Allowance | 0 | 0 | ||
Commercial Portfolio Segment | Commercial Leases | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 29 | 4 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 29 | 4 | ||
Allowance | 11 | 0 | ||
Residential Mortgage Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 497 | 469 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 314 | 218 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 494 | 465 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 294 | 200 | ||
Allowance | 65 | 64 | ||
Consumer Portfolio Segment | Home Equity | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 158 | 172 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 90 | 97 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 157 | 172 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 87 | 94 | ||
Allowance | 22 | 27 | ||
Consumer Portfolio Segment | Automobile Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 6 | 8 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 3 | 2 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 6 | 7 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 2 | 2 | ||
Allowance | 1 | 1 | ||
Consumer Portfolio Segment | Credit Card | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 48 | 52 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 45 | 45 | ||
Allowance | $ 15 | $ 14 | ||
[1] | Includes $ 104 , $ 773 and $ 251 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 173 , $ 15 an d $ 46 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at June 30, 2018 . | |||
[2] | Includes $ 249 , $ 652 and $ 275 , respectively, of commercial, residential mortgage and consumer portfolio TDR s on accrual status and $ 150 , $ 13 and $ 45 , respectively , of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2017 . |
Credit Quality (Summarizes th72
Credit Quality (Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class) (Parenthetical) (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2018USD ($) | Jun. 30, 2017 | Jun. 30, 2018USD ($) | Jun. 30, 2017 | [7],[8],[9],[10] | Dec. 31, 2017USD ($) | |||||
Financing Receivable, Impaired | ||||||||||
Unpaid principal balance | $ 1,589 | $ 1,589 | $ 1,679 | |||||||
Recorded investment | 1,485 | [1] | 1,485 | [1] | 1,545 | [2] | ||||
Allowance | $ 178 | $ 178 | 200 | |||||||
Number of contracts | 2,273 | [3],[4],[5],[6] | 2,430 | [7],[8],[9],[10] | 4,544 | [3],[4],[5],[6] | 4,489 | |||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||||||||
Financing Receivable, Impaired | ||||||||||
Allowance | $ 1 | $ 1 | $ 7 | |||||||
Number of contracts | 2 | [7],[8],[9],[10] | 2 | [3],[4],[5],[6] | 7 | |||||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | Variable Interest Entity, Primary Beneficiary | ||||||||||
Financing Receivable, Impaired | ||||||||||
Number of contracts | 5 | 5 | ||||||||
Commercial Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ||||||||||
Financing Receivable, Impaired | ||||||||||
Recorded investment | 104 | $ 104 | $ 249 | |||||||
Commercial Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | ||||||||||
Financing Receivable, Impaired | ||||||||||
Recorded investment | 173 | 173 | 150 | |||||||
Residential Mortgage Loans | ||||||||||
Financing Receivable, Impaired | ||||||||||
Allowance | $ 65 | $ 65 | 64 | |||||||
Number of contracts | 537 | [3],[4],[5],[6] | 199 | [7],[8],[9],[10] | 784 | [3],[4],[5],[6] | 402 | |||
Residential Mortgage Loans | Troubled Debt Restructuring On Accrual Status | ||||||||||
Financing Receivable, Impaired | ||||||||||
Recorded investment | $ 773 | $ 773 | 652 | |||||||
Residential Mortgage Loans | Troubled Debt Restructuring On Nonaccrual Status | ||||||||||
Financing Receivable, Impaired | ||||||||||
Recorded investment | 15 | 15 | 13 | |||||||
Consumer Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ||||||||||
Financing Receivable, Impaired | ||||||||||
Recorded investment | 251 | 251 | 275 | |||||||
Consumer Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | ||||||||||
Financing Receivable, Impaired | ||||||||||
Recorded investment | $ 46 | $ 46 | $ 45 | |||||||
[1] | Includes $ 104 , $ 773 and $ 251 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 173 , $ 15 an d $ 46 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at June 30, 2018 . | |||||||||
[2] | Includes $ 249 , $ 652 and $ 275 , respectively, of commercial, residential mortgage and consumer portfolio TDR s on accrual status and $ 150 , $ 13 and $ 45 , respectively , of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2017 . | |||||||||
[3] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||||||||
[4] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||||||||
[5] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | |||||||||
[6] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | |||||||||
[7] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||||||||
[8] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||||||||
[9] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | |||||||||
[10] | 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 Aver
Credit Quality (Summary of Average Impaired Loans and Leases and Interest Income by Class) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Financing Receivable, Impaired | ||||||
Average Recorded Investment | $ 1,581 | $ 1,743 | $ 1,546 | $ 1,796 | ||
Interest Income Recognized | 17 | 11 | 32 | 23 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||||
Financing Receivable, Impaired | ||||||
Average Recorded Investment | 417 | 635 | 439 | 668 | ||
Interest Income Recognized | 5 | 1 | 10 | 2 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||||
Financing Receivable, Impaired | ||||||
Average Recorded Investment | 16 | 38 | [1] | 20 | 42 | [1] |
Interest Income Recognized | 0 | 0 | 0 | 0 | [1] | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||||
Financing Receivable, Impaired | ||||||
Average Recorded Investment | 29 | 66 | 32 | 73 | ||
Interest Income Recognized | 0 | 0 | 0 | 1 | ||
Commercial Portfolio Segment | Commercial Construction Loans | ||||||
Financing Receivable, Impaired | ||||||
Average Recorded Investment | 0 | 0 | ||||
Interest Income Recognized | 0 | 0 | ||||
Commercial Portfolio Segment | Commercial Leases | ||||||
Financing Receivable, Impaired | ||||||
Average Recorded Investment | 18 | 2 | 14 | 3 | ||
Interest Income Recognized | 0 | 0 | 0 | 0 | ||
Residential Mortgage Loans | ||||||
Financing Receivable, Impaired | ||||||
Average Recorded Investment | 799 | 654 | 732 | 653 | ||
Interest Income Recognized | 8 | 6 | 14 | 12 | ||
Consumer Portfolio Segment | Home Equity | ||||||
Financing Receivable, Impaired | ||||||
Average Recorded Investment | 248 | 287 | 253 | 293 | ||
Interest Income Recognized | 3 | 3 | 6 | 6 | ||
Consumer Portfolio Segment | Automobile Loans | ||||||
Financing Receivable, Impaired | ||||||
Average Recorded Investment | 8 | 12 | 9 | 13 | ||
Interest Income Recognized | 0 | 0 | 0 | 0 | ||
Consumer Portfolio Segment | Credit Card | ||||||
Financing Receivable, Impaired | ||||||
Average Recorded Investment | 46 | 49 | 47 | 51 | ||
Interest Income Recognized | $ 1 | $ 1 | $ 2 | $ 2 | ||
[1] | Excludes five restructured loans 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 average recorded investment of $ 26 for both the three and six months ended June 30, 2017. An immaterial amount of interest income was recognized during the six months ended June 30, 2017. Refer to Note 9 for further discussion on the deconsolidation of the VIE associated with these loans in the third quarter of 2017. |
Credit Quality (Summary of Av74
Credit Quality (Summary of Average Impaired Loans and Leases and Interest Income by Class) (Parenthetical) (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017 | |||||
Financing Receivable, Impaired | |||||||||
Average Recorded Investment | $ 1,581 | $ 1,743 | $ 1,546 | $ 1,796 | |||||
Number of contracts | 2,273 | [1],[2],[3],[4] | 2,430 | [5],[6],[7],[8] | 4,544 | [1],[2],[3],[4] | 4,489 | [5],[6],[7],[8] | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | |||||||||
Financing Receivable, Impaired | |||||||||
Average Recorded Investment | $ 16 | $ 38 | [9] | $ 20 | $ 42 | [9] | |||
Number of contracts | 2 | [5],[6],[7],[8] | 2 | [1],[2],[3],[4] | 7 | [5],[6],[7],[8] | |||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | Variable Interest Entity, Primary Beneficiary | |||||||||
Financing Receivable, Impaired | |||||||||
Average Recorded Investment | $ 26 | ||||||||
Number of contracts | 5 | 5 | |||||||
[1] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | ||||||||
[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] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | ||||||||
[5] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | ||||||||
[6] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | ||||||||
[7] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | ||||||||
[8] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | ||||||||
[9] | Excludes five restructured loans 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 average recorded investment of $ 26 for both the three and six months ended June 30, 2017. An immaterial amount of interest income was recognized during the six months ended June 30, 2017. Refer to Note 9 for further discussion on the deconsolidation of the VIE associated with these loans in the third quarter of 2017. |
Credit Quality (Summary of th75
Credit Quality (Summary of the Bancorp's Nonperforming Loans and Leases by Class) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | [1],[2] | $ 437 | $ 437 |
OREO and other repossessed property | 43 | 52 | |
Nonperforming portfolio assets | [1],[2] | 480 | 489 |
Commercial Portfolio Segment | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 305 | 306 | |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 263 | 276 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 10 | 19 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 3 | 7 | |
Commercial Portfolio Segment | Commercial Leases | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 29 | 4 | |
Residential Mortgage Loans | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 28 | 30 | |
Consumer Portfolio Segment | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 104 | 101 | |
Consumer Portfolio Segment | Home Equity | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 71 | 74 | |
Consumer Portfolio Segment | Automobile Loans | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 5 | 1 | |
Consumer Portfolio Segment | Credit Card | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 27 | 26 | |
Consumer Portfolio Segment | Other Consumer Loans | |||
Financing Receivable, Modifications | |||
Nonperforming portfolio assets | $ 1 | $ 0 | |
[1] | Excludes $ 23 a nd $ 6 of nonaccrual loans held for sale at June 30, 2018 and December 31, 2017 , respectively. | ||
[2] | Includes $ 4 and $ 3 of nonaccrual government insured commercial loans whose repayments are insured by the SBA a t June 30, 2018 and Dec ember 31, 2017 , respectively, of which $ 2 and $ 3 are restructured nonaccrual government insured commercial loans a t June 30, 2018 and December 31, 2017 , respectively . |
Credit Quality (Summary of th76
Credit Quality (Summary of the Bancorp's Nonperforming Loans and Leases by Class) (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |||
Financing Receivable, Modifications | |||||
Loans and leases held for sale | [1] | $ 783 | $ 492 | ||
OREO and other repossessed property | 43 | 52 | |||
Portfolio loans and leases | 91,770 | [2],[3] | 91,833 | [4],[5] | |
Commercial Portfolio Segment | |||||
Financing Receivable, Modifications | |||||
Portfolio loans and leases | 56,503 | 56,395 | |||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | |||||
Financing Receivable, Modifications | |||||
Portfolio loans and leases | 3,391 | 3,362 | |||
Nonperforming Financing Receivable | |||||
Financing Receivable, Modifications | |||||
Loans and leases held for sale | 23 | 6 | |||
Portfolio loans and leases | [6] | 132 | 131 | ||
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment | Small Business Administration | |||||
Financing Receivable, Modifications | |||||
Portfolio loans and leases | 4 | 3 | |||
Restructured nonaccrual loans and leases | $ 2 | $ 3 | |||
[1] | Includes $ 658 and $ 399 of residential mortgage loans held for sale measured at fair value and $ 8 and $ 0 of commercial loans held for sale measured at fair value at June 30, 2018 and December 31, 2017 , respectively. | ||||
[2] | Excludes $ 162 of residential mortgage loans measured at fair value and includes $ 65 0 of leveraged leases, net of unearned income at June 30, 2018 . | ||||
[3] | Excludes $ 162 of residential mortgage loans measured at fair value at June 30, 2018 . | ||||
[4] | Excludes $ 137 of residential mortga ge loans measured at fair value and includes $ 674 of leveraged leases, net of unearned income at December 31, 2017 . | ||||
[5] | Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . | ||||
[6] | (a) Excludes $ 162 and $ 137 of residential mortgage loans measured at fair value at June 30, 2018 and December 31, 2017 , resp ectively. |
Credit Quality (Credit Quality
Credit Quality (Credit Quality Additional Information) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Troubled Debt Restructuring | ||
Line of credit commitments for modified troubled debt restructurings | $ 29 | $ 53 |
Letter of credit commitments for modified troubled debt restructurings | 69 | 78 |
Mortgage loans in process of foreclosure amount | 189 | $ 235 |
Commercial aggregate borrower relationship subject to individual review for impairment | $ 1 |
Credit Quality (Summary of Loan
Credit Quality (Summary of Loans Modified in a TDR) (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018USD ($) | [3],[4] | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | [3],[4] | Jun. 30, 2017USD ($) | [7] | ||
Financing Receivable, Modifications | ||||||||
Number of Loans Modified in a TDR During the Period | 2,273 | [1],[2] | 2,430 | [5],[6],[7],[8] | 4,544 | [1],[2] | 4,489 | [5],[6],[8] |
Recorded Investment in Loans Modified in a TDR During the Period | $ 166 | $ 103 | [7],[8] | $ 282 | $ 240 | [8] | ||
Increase (Decrease) to ALLL Upon Modification | 0 | 9 | [7],[8] | 16 | 13 | [8] | ||
Charge-offs Recognized Upon Modification | $ 1 | $ 5 | [7],[8] | $ 1 | $ 7 | [8] | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||||||
Financing Receivable, Modifications | ||||||||
Number of Loans Modified in a TDR During the Period | 13 | [1],[2] | 17 | [5],[6],[7],[8] | 25 | [1],[2] | 50 | [5],[6],[8] |
Recorded Investment in Loans Modified in a TDR During the Period | $ 64 | $ 56 | [7],[8] | $ 135 | $ 153 | [8] | ||
Increase (Decrease) to ALLL Upon Modification | (4) | 1 | [7],[8] | 9 | 2 | [8] | ||
Charge-offs Recognized Upon Modification | 0 | $ 4 | [7],[8] | $ 0 | $ 6 | [8] | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | ||||||||
Financing Receivable, Modifications | ||||||||
Number of Loans Modified in a TDR During the Period | 2 | [5],[6],[7],[8] | 2 | [1],[2] | 7 | [5],[6],[8] | ||
Recorded Investment in Loans Modified in a TDR During the Period | $ 6 | [7],[8] | $ 0 | $ 8 | [8] | |||
Increase (Decrease) to ALLL Upon Modification | 5 | [7],[8] | 0 | 5 | [8] | |||
Charge-offs Recognized Upon Modification | $ 0 | [7],[8] | $ 0 | $ 0 | [8] | |||
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||||||
Financing Receivable, Modifications | ||||||||
Number of Loans Modified in a TDR During the Period | 1 | 0 | [1],[2] | 2 | [6] | |||
Recorded Investment in Loans Modified in a TDR During the Period | $ 0 | [7] | $ 0 | $ 0 | ||||
Increase (Decrease) to ALLL Upon Modification | 0 | [7] | 0 | 0 | ||||
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | [7] | $ 0 | $ 0 | |||
Residential Mortgage Loans | ||||||||
Financing Receivable, Modifications | ||||||||
Number of Loans Modified in a TDR During the Period | 537 | [1],[2] | 199 | [5],[6],[7],[8] | 784 | [1],[2] | 402 | [5],[6],[8] |
Recorded Investment in Loans Modified in a TDR During the Period | $ 91 | $ 28 | [7],[8] | $ 124 | $ 57 | [8] | ||
Increase (Decrease) to ALLL Upon Modification | 2 | 1 | [7],[8] | 3 | 3 | [8] | ||
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | [7],[8] | $ 0 | $ 0 | [8] | ||
Consumer Portfolio Segment | Home Equity | ||||||||
Financing Receivable, Modifications | ||||||||
Number of Loans Modified in a TDR During the Period | 29 | [1],[2] | 44 | [5],[6],[7],[8] | 54 | [1],[2] | 75 | [5],[6],[8] |
Recorded Investment in Loans Modified in a TDR During the Period | $ 2 | $ 3 | [7],[8] | $ 4 | $ 5 | [8] | ||
Increase (Decrease) to ALLL Upon Modification | 0 | 0 | [7],[8] | 0 | 0 | [8] | ||
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | [7],[8] | $ 0 | $ 0 | [8] | ||
Consumer Portfolio Segment | Automobile Loans | ||||||||
Financing Receivable, Modifications | ||||||||
Number of Loans Modified in a TDR During the Period | 19 | [1],[2] | 15 | [5],[6],[7],[8] | 39 | [1],[2] | 45 | [5],[6],[8] |
Recorded Investment in Loans Modified in a TDR During the Period | $ 0 | $ 0 | [7],[8] | $ 0 | $ 0 | [8] | ||
Increase (Decrease) to ALLL Upon Modification | 0 | 0 | [7],[8] | 0 | 0 | [8] | ||
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | [7],[8] | $ 0 | $ 0 | [8] | ||
Consumer Portfolio Segment | Credit Card | ||||||||
Financing Receivable, Modifications | ||||||||
Number of Loans Modified in a TDR During the Period | 1,675 | [1],[2] | 2,152 | [5],[6],[7],[8] | 3,640 | [1],[2] | 3,908 | [5],[6],[8] |
Recorded Investment in Loans Modified in a TDR During the Period | $ 9 | $ 10 | [7],[8] | $ 19 | $ 17 | [8] | ||
Increase (Decrease) to ALLL Upon Modification | 2 | 2 | [7],[8] | 4 | 3 | [8] | ||
Charge-offs Recognized Upon Modification | $ 1 | $ 1 | [7],[8] | $ 1 | $ 1 | [8] | ||
[1] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||||||
[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] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | |||||||
[5] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||||||
[6] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||||||
[7] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | |||||||
[8] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . |
Credit Quality (Summary of Subs
Credit Quality (Summary of Subsequent Defaults) (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | ||
Financing Receivable, Modifications | |||||
Number of contracts | [1] | 201 | 424 | 496 | 938 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 42 | $ 22 | $ 51 | $ 35 |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||||
Financing Receivable, Modifications | |||||
Number of contracts | [1] | 2 | 2 | 3 | 4 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 28 | $ 15 | $ 29 | $ 16 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-occupied | |||||
Financing Receivable, Modifications | |||||
Number of contracts | [1] | 2 | |||
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 0 | |||
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | |||||
Financing Receivable, Modifications | |||||
Number of contracts | [1] | 3 | 3 | ||
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 1 | $ 1 | ||
Residential Mortgage Loans | |||||
Financing Receivable, Modifications | |||||
Number of contracts | [1] | 62 | 26 | 110 | 83 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 13 | $ 3 | $ 20 | $ 12 |
Consumer Portfolio Segment | Home Equity | |||||
Financing Receivable, Modifications | |||||
Number of contracts | [1] | 6 | 2 | 11 | |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 1 | $ 0 | $ 2 | |
Consumer Portfolio Segment | Credit Card | |||||
Financing Receivable, Modifications | |||||
Number of contracts | [1] | 137 | 387 | 379 | 837 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 1 | $ 2 | $ 2 | $ 4 |
[1] | (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. |
Bank Premises & Equipment (Bank
Bank Premises & Equipment (Bank Premises and Equipment) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Bank Premises and Equipment | |||
Land and improvements | [1] | $ 599 | $ 644 |
Buildings | [1] | 1,616 | 1,679 |
Equipment | 1,936 | 1,876 | |
Leasehold improvements | 396 | 399 | |
Construction in progress | [1] | 85 | 93 |
Land and improvements held for sale | 24 | 17 | |
Branches held for sale | 10 | 9 | |
Equipment held for sale | 3 | 1 | |
Accumulated depreciation and amortization | (2,754) | (2,715) | |
Total bank premises and equipment | [2] | $ 1,915 | $ 2,003 |
[1] | (a ) At June 30, 2018 and December 31, 2017 , land and improvements , buildings and construction in progress included $ 55 and $ 9 1 , respectively, associated w ith parcels of undeveloped land intended for future branch expansion. | ||
[2] | Includes $ 37 and $ 27 of bank premises and equipment held for sale at June 30, 2018 and December 31, 2017 , respectively. For further information refer to Note 7 . |
Bank Premises & Equipment (Ba81
Bank Premises & Equipment (Bank Premises and Equipment) (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Bank Premises and Equipment | |||
Land and improvements | [1] | $ 599 | $ 644 |
Branches and undeveloped parcels of land | |||
Bank Premises and Equipment | |||
Land and improvements | $ 55 | $ 91 | |
[1] | (a ) At June 30, 2018 and December 31, 2017 , land and improvements , buildings and construction in progress included $ 55 and $ 9 1 , respectively, associated w ith parcels of undeveloped land intended for future branch expansion. |
Bank Premises & Equipment (Ba82
Bank Premises & Equipment (Bank Premises and Equipment - Additional Information) (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Bank Premises and Equipment | ||||
Bank premises impairment | $ 33 | $ 2 | $ 41 | $ 5 |
Disposal group classified as held for sale | Branch Banking | Bank Premises And Equipment | 2018 Branch Optimization | ||||
Bank Premises and Equipment | ||||
Parcels Of Undeveloped Land Held for Sale | 21 | 21 | ||
Branches and undeveloped parcels of land | Disposal group classified as held for sale | Branch Banking | Bank Premises And Equipment | 2018 Branch Optimization | ||||
Bank Premises and Equipment | ||||
Parcels Of Undeveloped Land Held for Sale | 29 | 29 | ||
Branches and undeveloped parcels of land | Potential branch closures to be selected | Branch Banking | Bank Premises And Equipment | 2018 Branch Optimization | ||||
Bank Premises and Equipment | ||||
Operating Branch Locations held for sale | 128 | 128 |
Operating Lease Equipment (Addi
Operating Lease Equipment (Additional Information) (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Lease Equipment | ||
Other Asset Impairment Charges | $ (2) | $ (19) |
Intangible Assets (Intangible A
Intangible Assets (Intangible Assets - Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Intangible Assets by Major Class [Abstract] | |||
Amortization of Intangible Assets | $ 1 | $ 2 | $ 1 |
Intangible Assets (Intangible85
Intangible Assets (Intangible Assets) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 74 | $ 69 |
Accumulated Amortization | (44) | (42) |
Net Carrying Amount | 30 | 27 |
Core Deposits | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 34 | 34 |
Accumulated Amortization | (29) | (29) |
Net Carrying Amount | 5 | 5 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 6 | 6 |
Accumulated Amortization | (3) | (3) |
Net Carrying Amount | 3 | 3 |
Noncompete Agreements | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 14 | 13 |
Accumulated Amortization | (11) | (10) |
Net Carrying Amount | 3 | 3 |
Customer Relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 20 | 16 |
Accumulated Amortization | (1) | 0 |
Net Carrying Amount | $ 19 | $ 16 |
Intangible Assets (Estimated Am
Intangible Assets (Estimated Amortization Expense Other Intangible Assets) (Detail) - Other Intangible Assets $ in Millions | Jun. 30, 2018USD ($) |
Finite-Lived Intangible Assets | |
Remainder of 2018 | $ 3 |
2,019 | 5 |
2,020 | 3 |
2,021 | 3 |
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 | Jun. 30, 2018 | Mar. 31, 2018 | [1],[2] | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | [1] | |||
Assets | |||||||||||
Cash and due from banks | $ 2,052 | $ 2,514 | $ 2,203 | $ 2,392 | |||||||
Other short-term investments | [1] | 1,636 | 2,753 | ||||||||
Commercial mortgage loans | 6,625 | 6,604 | |||||||||
Automobile loans | 8,938 | 9,112 | |||||||||
ALLL | (1,077) | [1],[2] | $ (1,138) | (1,196) | [1],[3] | $ (1,226) | $ (1,238) | $ (1,253) | [3] | ||
Other assets | [1] | 6,662 | 6,975 | ||||||||
Liabilities | |||||||||||
Other liabilities | [1] | 2,425 | 2,144 | ||||||||
Long-term debt | [1] | 14,321 | 14,904 | ||||||||
Noncontrolling interests | 20 | 20 | |||||||||
Variable Interest Entity, Primary Beneficiary | |||||||||||
Assets | |||||||||||
Other short-term investments | 47 | 62 | |||||||||
Commercial mortgage loans | 20 | 20 | |||||||||
Automobile loans | 888 | 1,277 | |||||||||
ALLL | (5) | (6) | |||||||||
Other assets | 5 | 7 | |||||||||
Total Assets | 955 | 1,360 | |||||||||
Liabilities | |||||||||||
Other liabilities | 2 | 2 | |||||||||
Long-term debt | 830 | 1,190 | |||||||||
Total liabilities | 832 | 1,192 | |||||||||
Noncontrolling interests | 20 | 20 | |||||||||
Variable Interest Entity, Primary Beneficiary | Automobile Loans | |||||||||||
Assets | |||||||||||
Other short-term investments | 47 | 62 | |||||||||
Commercial mortgage loans | 0 | 0 | |||||||||
Automobile loans | 888 | 1,277 | |||||||||
ALLL | (5) | (6) | |||||||||
Other assets | 5 | 7 | |||||||||
Total Assets | 935 | 1,340 | |||||||||
Liabilities | |||||||||||
Other liabilities | 2 | 2 | |||||||||
Long-term debt | 830 | 1,190 | |||||||||
Total liabilities | 832 | 1,192 | |||||||||
Noncontrolling interests | 0 | 0 | |||||||||
Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments | |||||||||||
Assets | |||||||||||
Other short-term investments | 0 | 0 | |||||||||
Commercial mortgage loans | 20 | 20 | |||||||||
Automobile loans | 0 | 0 | |||||||||
ALLL | 0 | 0 | |||||||||
Other assets | 0 | 0 | |||||||||
Total Assets | 20 | 20 | |||||||||
Liabilities | |||||||||||
Other liabilities | 0 | 0 | |||||||||
Long-term debt | 0 | 0 | |||||||||
Total liabilities | 0 | 0 | |||||||||
Noncontrolling interests | $ 20 | $ 20 | |||||||||
[1] | Includes $ 47 and $ 62 of other short-term investments , $ 908 and $ 1,297 of portfolio loans and leases, $ (5) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 2 and $ 2 of other liabilities, and $ 830 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respe ctive captions above at June 30, 2018 and December 31, 2017 , respectively. For further information refer to Note 9 . | ||||||||||
[2] | Includes $ 1 related to leveraged leases at June 30, 2018 . | ||||||||||
[3] | Includes $ 1 related to leveraged leases at December 31, 2017 . |
VIE (Variable Interest Entities
VIE (Variable Interest Entities - Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | [2],[3] | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | [3],[4] | |||||
Variable Interest Entity | ||||||||||||||
OTTI | [1] | $ 0 | $ (14) | $ 0 | $ (24) | |||||||||
Allowance for loan and lease losses | 1,077 | [2],[3] | 1,226 | 1,077 | [2],[3] | 1,226 | $ 1,138 | $ 1,196 | [3],[4] | $ 1,238 | $ 1,253 | |||
Commercial mortgage loans | 6,625 | 6,625 | 6,604 | |||||||||||
Variable Interest Entity, Primary Beneficiary | ||||||||||||||
Variable Interest Entity | ||||||||||||||
Allowance for loan and lease losses | 5 | 5 | 6 | |||||||||||
Commercial mortgage loans | 20 | 20 | 20 | |||||||||||
Variable Interest Entity, Primary Beneficiary | Automobile Loans | ||||||||||||||
Variable Interest Entity | ||||||||||||||
Carry value of automobile loans securitized | 1,100 | 1,100 | ||||||||||||
Face amount of notes issued or redeemed | 1,000 | 1,000 | ||||||||||||
Long-term debt retained | 261 | 261 | ||||||||||||
Allowance for loan and lease losses | 5 | 5 | 6 | |||||||||||
Commercial mortgage loans | 0 | 0 | 0 | |||||||||||
Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments | ||||||||||||||
Variable Interest Entity | ||||||||||||||
Maximum Exposure | 1 | 1 | 17 | |||||||||||
Allowance for loan and lease losses | 0 | 0 | 0 | |||||||||||
Commercial mortgage loans | 20 | 20 | 20 | |||||||||||
Variable Interest Entity, Not Primary Beneficiary | Loans Provided to VIEs | ||||||||||||||
Variable Interest Entity | ||||||||||||||
Unfunded commitment amounts | 1,200 | 1,200 | 1,100 | |||||||||||
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments | ||||||||||||||
Variable Interest Entity | ||||||||||||||
Maximum Exposure | 1,213 | 1,213 | 1,376 | |||||||||||
Bancorp's Investment in Affordable Housing Tax Credits | 1,213 | 1,213 | 1,376 | |||||||||||
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 | 1,200 | 1,200 | 1,300 | |||||||||||
Unfunded commitments | $ 362 | 362 | 355 | |||||||||||
Unfunded commitments expected funding date | 2,034 | |||||||||||||
Variable Interest Entity, Not Primary Beneficiary | Private Equity Investments | ||||||||||||||
Variable Interest Entity | ||||||||||||||
Maximum Exposure | $ 112 | 112 | 150 | |||||||||||
Bancorp's Investment in Affordable Housing Tax Credits | 70 | 70 | 102 | |||||||||||
Unfunded commitment amounts | 42 | 42 | $ 48 | |||||||||||
Capital Contribution To Private Equity Investments | 2 | 5 | 7 | |||||||||||
OTTI | 2 | $ 0 | 6 | $ 0 | ||||||||||
Deconsolidated Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments | ||||||||||||||
Variable Interest Entity | ||||||||||||||
Maximum Exposure | 18 | 18 | ||||||||||||
Allowance for loan and lease losses | 20 | 20 | ||||||||||||
Commercial mortgage loans | $ 27 | $ 27 | ||||||||||||
[1] | Included in securities (losses) gains, net in the Condensed Consolidated Statements of Income. | |||||||||||||
[2] | Includes $ 1 related to leveraged leases at June 30, 2018 . | |||||||||||||
[3] | Includes $ 47 and $ 62 of other short-term investments , $ 908 and $ 1,297 of portfolio loans and leases, $ (5) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 2 and $ 2 of other liabilities, and $ 830 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respe ctive captions above at June 30, 2018 and December 31, 2017 , respectively. For further information refer to Note 9 . | |||||||||||||
[4] | Includes $ 1 related to leveraged leases at December 31, 2017 . |
VIE (Assets and Liabilities Rel
VIE (Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses) (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fifth Third Community Development Corporation Investments | ||
Variable Interest Entity | ||
Total Assets | $ 1,213 | $ 1,376 |
Total Liabilities | 363 | 355 |
Maximum Exposure | 1,213 | 1,376 |
Private Equity Investments | ||
Variable Interest Entity | ||
Total Assets | 70 | 102 |
Total Liabilities | 0 | 0 |
Maximum Exposure | 112 | 150 |
Loans Provided to VIEs | ||
Variable Interest Entity | ||
Total Assets | 1,885 | 1,845 |
Total Liabilities | 0 | 0 |
Maximum Exposure | $ 3,124 | $ 2,910 |
VIE (Investments in Qualified A
VIE (Investments in Qualified Affordable Housing Tax Credits) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Other noninterest expense | |||||
Schedule of Equity Method Investments | |||||
Pre-tax investment and impairment losses | [1] | $ 46 | $ 35 | $ 91 | $ 72 |
Applicable income tax expense | |||||
Schedule of Equity Method Investments | |||||
Tax credits and other benefits | $ (51) | $ (56) | $ (103) | $ (112) | |
[1] | (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credi ts or other circumstances during both the three and six months ended June 30, 2018 and 2017 . |
MSR (Activity Related to Mortga
MSR (Activity Related to Mortgage Banking Net Revenue) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale | |||||
Residential mortgage loan sales | [1] | $ 1,474 | $ 1,518 | $ 2,474 | $ 3,147 |
Origination fees and gains on loan sales | 28 | 37 | 52 | 66 | |
Gross Mortgage Servicing Fees | $ 54 | $ 49 | $ 106 | $ 97 | |
[1] | Represents the unpaid principal balance at the time of the sale. |
MSR (Changes in the Servicing A
MSR (Changes in the Servicing Assets) (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
Servicing Assets at Fair Value | |||
Fair value at beginning of period | $ 858 | $ 744 | |
Servicing rights originated | 35 | 66 | |
Servicing rights acquired | 50 | 109 | |
Changes in fair value due to changes in inputs or assumptions | 78 | (13) | [1] |
Changes in fair value due to other changes in fair value | (62) | (57) | [2] |
Fair value at end of period | $ 959 | $ 849 | |
[1] | Primarily reflects changes in prepayment speed and OAS spread assumptions which are updated based on market interest rates | ||
[2] | Pr imarily reflects changes due to collection of contractual cash flows and the passage of time |
MSR (Activity Related to the MS
MSR (Activity Related to the MSR Portfolio) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Servicing Assets at Fair Value | |||||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | $ (4) | $ 2 | $ (17) | $ 2 | |
MSR fair value adjustments due to change in inputs or assumptions | [1] | 21 | (17) | 78 | (13) |
Interest Rate Contract | Servicing Rights | Mortgage Banking Revenue | |||||
Servicing Assets at Fair Value | |||||
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (Mortgage banking net revenue) | [1] | $ (16) | $ 16 | $ (65) | $ 15 |
[1] | (a) Included in mortgage banking net revenue in the Condensed Consolidated Statements of Income. |
MSR (Servicing Assets and Resid
MSR (Servicing Assets and Residual Interests Economic Assumptions) (Detail) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Fixed Rate Residential Mortgage Loans | ||
Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 6 years 9 months 18 days | 7 years |
Prepayment Speed (annual) | 10.00% | 10.30% |
OAS spread (bps) | 5.19% | 4.92% |
Adjustable Rate Residential Mortgage Loans | ||
Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 0 years | 3 years |
Prepayment Speed (annual) | 0.00% | 29.80% |
OAS spread (bps) | 0.00% | 6.59% |
MSR (Sales of Receivables and S
MSR (Sales of Receivables and Servicing Rights - Additional Information) (Detail) - USD ($) $ in Billions | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosure - Activity Related to Mortgage Banking Net Revenue [Abstract] | ||
Sevicing of residential mortgage loans for other investors | $ 62.2 | $ 60 |
MSR (Sensitivity of the Current
MSR (Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions) (Detail) $ in Millions | 3 Months Ended | |
Jun. 30, 2018USD ($) | [1] | |
Fixed Rate Residential Mortgage Loans | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption | ||
Fair Value | $ 944 | |
Weighted- Average Life (in years) | 6 years 6 months | |
Prepayment Speed (annual) | 9.50% | |
Impact of Adverse Change on Fair Value 10% | $ (37) | |
Impact of Adverse Change on Fair Value 20% | (71) | |
Impact of Adverse Change on Fair Value 50% | $ (164) | |
OAS spread (bps) | 5.43% | |
Impact of Adverse Change on Fair Value 10% | $ (19) | |
Impact of Adverse Change on Fair Value 20% | (37) | |
Adjustable Rate Residential Mortgage Loans | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption | ||
Fair Value | $ 15 | |
Weighted- Average Life (in years) | 3 years 4 months 24 days | |
Prepayment Speed (annual) | 23.60% | |
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% | $ (4) | |
OAS spread (bps) | 8.17% | |
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 | 3 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Derivative | ||
Valuation adjustments related to the credit risk associated with counterparties of customer accomodation derivative contracts | $ 3 | $ 3 |
Notional amount of the risk participation agreements | $ 3,677 | 2,838 |
Interest Rate Contract | Credit Risk | ||
Derivative | ||
Credit Risk Derivatives Average Remaining Life | 3 years 7 months 6 days | |
Fair value of risk participation agreements | $ 8 | 5 |
Interest Rate Contract | Cash Flow Hedging | ||
Derivative | ||
Maximum length of time hedged in cash flow hedge | 6 years 1 month | |
Deferred gains or losses, net of tax, on cash flow hedges were recorded in accumulated other comprehensive income | $ 16 | 9 |
Net deferred gains or losses, net of tax, recorded in accumulated other comprehensive income are expected to be reclassified into earnings during the next twelve months | 7 | |
Total collateral | ||
Derivative | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 367 | 409 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 401 | $ 365 |
Amount of variation margin payment applied to derivative asset contracts | 99 | |
Amount of variation margin payment applied to derivative liability contracts | $ 130 |
Derivatives (Notional Amounts a
Derivatives (Notional Amounts and Fair Values for All Derivative Instruments Included in the Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value | ||
Fair value - Derivative Assets | $ 945 | $ 823 |
Fair value - Derivative Liabilities | 859 | 602 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 230 | 297 |
Fair value - Derivative Liabilities | 19 | 17 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 229 | 297 |
Fair value - Derivative Liabilities | 4 | 5 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | Interest Rate Swap | Long-Term Debt | ||
Derivatives, Fair Value | ||
Notional amount | 3,205 | 3,705 |
Fair value - Derivative Assets | 229 | 297 |
Fair value - Derivative Liabilities | 4 | 5 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 1 | 0 |
Fair value - Derivative Liabilities | 15 | 12 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | Interest Rate Swap | Commercial and Industrial Loans | ||
Derivatives, Fair Value | ||
Notional amount | 6,150 | 4,475 |
Fair value - Derivative Assets | 1 | 0 |
Fair value - Derivative Liabilities | 15 | 12 |
Nondesignated | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 715 | 526 |
Fair value - Derivative Liabilities | 840 | 585 |
Nondesignated | Risk Management and Other Business Purposes | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 54 | 75 |
Fair value - Derivative Liabilities | 181 | 154 |
Nondesignated | Risk Management and Other Business Purposes | Interest Rate Contract | Servicing Rights | ||
Derivatives, Fair Value | ||
Notional amount | 11,475 | 11,035 |
Fair value - Derivative Assets | 52 | 54 |
Fair value - Derivative Liabilities | 13 | 15 |
Nondesignated | Risk Management and Other Business Purposes | Forward Contracts | Assets Held For Sale | ||
Derivatives, Fair Value | ||
Notional amount | 1,450 | 1,284 |
Fair value - Derivative Assets | 0 | 1 |
Fair value - Derivative Liabilities | 4 | 1 |
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 | 2,207 | 1,900 |
Fair value - Derivative Assets | 0 | 0 |
Fair value - Derivative Liabilities | 164 | 137 |
Nondesignated | Risk Management and Other Business Purposes | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Notional amount | 153 | 112 |
Fair value - Derivative Assets | 2 | 0 |
Fair value - Derivative Liabilities | 0 | 1 |
Nondesignated | Customer Accommodation | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 661 | 451 |
Fair value - Derivative Liabilities | 659 | 431 |
Nondesignated | Customer Accommodation | Interest Rate Contract | ||
Derivatives, Fair Value | ||
Notional amount | 48,949 | 42,216 |
Fair value - Derivative Assets | 247 | 154 |
Fair value - Derivative Liabilities | 280 | 145 |
Nondesignated | Customer Accommodation | Interest Rate Lock Commitments | ||
Derivatives, Fair Value | ||
Notional amount | 596 | 446 |
Fair value - Derivative Assets | 11 | 8 |
Fair value - Derivative Liabilities | 0 | 0 |
Nondesignated | Customer Accommodation | Commodity Contract | ||
Derivatives, Fair Value | ||
Notional amount | 5,087 | 4,125 |
Fair value - Derivative Assets | 284 | 165 |
Fair value - Derivative Liabilities | 270 | 167 |
Nondesignated | Customer Accommodation | TBAs | ||
Derivatives, Fair Value | ||
Notional amount | 58 | 26 |
Fair value - Derivative Assets | 0 | 0 |
Fair value - Derivative Liabilities | 0 | 0 |
Nondesignated | Customer Accommodation | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Notional amount | 10,842 | 12,654 |
Fair value - Derivative Assets | 119 | 124 |
Fair value - Derivative Liabilities | $ 109 | $ 119 |
Derivatives (Change in the Fair
Derivatives (Change in the Fair Value for Interest Rate Contracts and the Related Hedged Items) (Detail) - Fair Value Hedging - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Long-Term Debt | ||||
Derivatives, Fair Value | ||||
Carrying amount of hedged item | $ 3,701 | $ 3,701 | ||
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items | (212) | (212) | ||
Interest Rate Contract | Interest Expense, Long-Term Debt | ||||
Derivatives, Fair Value | ||||
Change in fair value of interest rate swaps hedging long-term debt | (18) | $ 14 | (81) | $ (6) |
Change in fair value of hedged long-term debt | $ 19 | $ (15) | $ 83 | $ 5 |
Derivatives (Net Gains (Losses)
Derivatives (Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges) (Detail) - Cash Flow Hedging - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | [1] | Jun. 30, 2018 | Jun. 30, 2017 | [1] | |
Derivative Instruments, Gain (Loss) | ||||||
Amount of pretax net (losses) gains recognized in OCI | $ 4 | $ 8 | $ (5) | $ 3 | ||
Interest Income (Expense) Net | ||||||
Derivative Instruments, Gain (Loss) | ||||||
Amount of pretax net gains reclassified from OCI into net income | $ 0 | $ 6 | $ 1 | $ 14 | ||
[1] | For both the three and six months ended June 30, 2017, the amount of pretax net losses recognized in OCI represented the effective portion of the cumulative gains or losses on cash flow hedges and ineffectiveness was reported within noninterest income. Upon the adoption of ASU 2017-12, the Bancorp recorded a cumulative effect adjustment to retained earnings effective January 1, 2018 related to the elimination of the separate measurement of ineffect iveness. Refer to Note 3 for additional information. |
Derivatives (Net Gains (Loss101
Derivatives (Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used For Risk Management) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest Rate Contract | Forward Contracts | Loans Held For Sale | Mortgage Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ (3) | $ 5 | $ (4) | $ (16) |
Interest Rate Contract | Servicing Rights | Mortgage Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | (16) | 16 | (65) | 15 |
Foreign Exchange Contract | Forward Contracts | Other Noninterest Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 3 | (3) | 5 | (4) |
Equity Contract | Swap | Other Noninterest Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ (10) | $ (9) | $ (49) | $ (22) |
Derivatives (Risk Ratings of th
Derivatives (Risk Ratings of the Notional Amount of Risk Participation Agreements) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value | ||
Notional amount of the risk participation agreements | $ 3,677 | $ 2,838 |
Pass | ||
Derivatives, Fair Value | ||
Notional amount of the risk participation agreements | 3,590 | 2,748 |
Risk Level, Special Mention | ||
Derivatives, Fair Value | ||
Notional amount of the risk participation agreements | 77 | 66 |
Risk Level, Substandard | ||
Derivatives, Fair Value | ||
Notional amount of the risk participation agreements | $ 10 | $ 24 |
Derivatives (Net Gains (Loss103
Derivatives (Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used For Customer Accommodation) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest Rate Contract | Customer Contracts | Corporate Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ 9 | $ 5 | $ 16 | $ 9 |
Interest Rate Contract | Interest Rate Lock Commitments | Mortgage Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 22 | 26 | 35 | 48 |
Commodity Contract | Customer Contracts | Corporate Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 2 | 1 | 4 | 2 |
Commodity Contract | Customer Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 0 | 1 | 0 | 1 |
Commodity Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | (1) | 0 | (1) | 0 |
Foreign Exchange Contract | Customer Contracts | Corporate Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 13 | 9 | 27 | 22 |
Foreign Exchange Contract | Customer Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 0 | 2 | 0 | 2 |
Foreign Exchange Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ 0 | $ 0 | $ 1 | $ 1 |
Derivatives (Offsetting Derivat
Derivatives (Offsetting Derivative Financial Instruments) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | ||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | $ 945 | $ 823 | ||
Derivative, Collateral, Obligation to Return Cash | (263) | (341) | ||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | 859 | 602 | ||
Assets | ||||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | 934 | [1] | 815 | [2] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (258) | (213) | ||
Derivative, Collateral, Obligation to Return Cash | (300) | [3] | (362) | [4] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 376 | 240 | ||
Liability | ||||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | 859 | [1] | 602 | [2] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (258) | (213) | ||
Derivative, Collateral, Right to Reclaim Cash | (234) | [3] | (155) | [4] |
Derivative Fair Value Amount Offset Against Collateral Net | 367 | 234 | ||
Derivative | Assets | ||||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | 934 | [1] | 815 | [2] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (258) | (213) | ||
Derivative, Collateral, Obligation to Return Cash | (300) | [3] | (362) | [4] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 376 | 240 | ||
Derivative | Liability | ||||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross amount recognized in the balance sheet | 859 | [1] | 602 | [2] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (258) | (213) | ||
Derivative, Collateral, Right to Reclaim Cash | (234) | [3] | (155) | [4] |
Derivative Fair Value Amount Offset Against Collateral Net | $ 367 | $ 234 | ||
[1] | Amount does not includ e IRLCs because these instruments are not subject to master netting or similar arrangements . | |||
[2] | Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements . | |||
[3] | Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table. | |||
[4] | Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table. |
Other Short-Term Borrowings (Co
Other Short-Term Borrowings (Components of Other Short-Term Borrowings) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Short Term Debt | ||
FHLB advances | $ 1,200 | $ 3,125 |
Securities sold under repurchase agreements | 300 | 546 |
Derivative collateral | 263 | 341 |
Total other short-term borrowings | $ 1,763 | $ 4,012 |
Other Short-Term Borrowings (Ot
Other Short-Term Borrowings (Other Short-Term Borrowings - Additioanl Information) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Short Term Debt | ||
Securities sold under repurchase agreements | $ 300 | $ 546 |
Capital Actions (Capital Action
Capital Actions (Capital Actions ASRs) (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Capital Actions | |||
Shares acquired for treasury | $ 553 | $ 342 | |
December 15, 2017 ASR | March 2017 Repurchase Program | |||
Capital Actions | |||
Redemption Date | Dec. 19, 2017 | ||
Shares acquired for treasury | $ 273 | ||
Shares repurchased | 7,727,273 | ||
Shares received from forward contract settlement | 824,367 | ||
Total shares repurchased | 8,551,640 | ||
Settlement date | Mar. 19, 2018 | ||
February 8, 2018 ASR | March 2017 Repurchase Program | |||
Capital Actions | |||
Redemption Date | Feb. 12, 2018 | ||
Shares acquired for treasury | $ 318 | ||
Shares repurchased | 8,691,318 | ||
Shares received from forward contract settlement | 1,015,731 | ||
Total shares repurchased | 9,707,049 | ||
Settlement date | Mar. 26, 2018 | ||
May 23, 2018 ASR | March 2018 Repurchase Program | |||
Capital Actions | |||
Redemption Date | May 25, 2018 | ||
Shares acquired for treasury | $ 235 | ||
Shares repurchased | 6,402,244 | ||
Shares received from forward contract settlement | 1,172,122 | ||
Total shares repurchased | 7,574,366 | ||
Settlement date | Jun. 15, 2018 |
Long-Term Debt (Long-Term Debt
Long-Term Debt (Long-Term Debt - Additional Information) (Detail) - Senior Debt Obligations $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Fixed Rate 3.95 Percent Senior Notes Due 2028 | |
Debt Instrument | |
Face amount of notes issued or redeemed | $ 650 |
Maturity date(s) Start | Mar. 14, 2018 |
Maturity date(s) End | Mar. 14, 2028 |
Floating-Rate 3 Month LIBOR Plus 47 bps Notes Due 2021 | |
Debt Instrument | |
Face amount of notes issued or redeemed | $ 250 |
Maturity date(s) Start | Jun. 5, 2018 |
Maturity date(s) End | Jun. 4, 2021 |
Commitments (Summary of Signifi
Commitments (Summary of Significant Commitments) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Commitments to extend credit | ||
Long-term Purchase Commitment | ||
Commitments | $ 70,915 | $ 68,106 |
Letters of credit | ||
Long-term Purchase Commitment | ||
Commitments | 2,092 | 2,185 |
Forward contracts related to residential mortgage loans held for sale | ||
Long-term Purchase Commitment | ||
Commitments | 1,450 | 1,284 |
Noncancelable operating lease obligations | ||
Long-term Purchase Commitment | ||
Commitments | 568 | 568 |
Purchase obligations | ||
Long-term Purchase Commitment | ||
Commitments | 120 | 144 |
Capital commitments for private equity investments | ||
Long-term Purchase Commitment | ||
Commitments | 43 | 48 |
Capital expenditures | ||
Long-term Purchase Commitment | ||
Commitments | 27 | 37 |
Capital lease obligations | ||
Long-term Purchase Commitment | ||
Commitments | $ 23 | $ 26 |
Commitments (Risk Rating Under
Commitments (Risk Rating Under the Risk Rating System) (Detail) - Commitments to Extend Credit - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Line of Credit Facility | ||
Commitments | $ 70,915 | $ 68,106 |
Pass | ||
Line of Credit Facility | ||
Commitments | 70,340 | 67,254 |
Special Mention | ||
Line of Credit Facility | ||
Commitments | 306 | 330 |
Substandard | ||
Line of Credit Facility | ||
Commitments | $ 269 | $ 522 |
Commitments (Commitments, Conti
Commitments (Commitments, Contingent Liabilities and Guarantees - Additional Information) (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2016 | 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 | $ 2,092 | $ 2,092 | $ 2,185 | |||||||||||||||||
Margin account balance held by the brokerage clearing agent | 15 | 15 | 15 | |||||||||||||||||
Amount in excess of amounts reserved | 5 | 5 | ||||||||||||||||||
Credit loss reserve | 1,077 | [1],[2] | $ 1,226 | 1,077 | [1],[2] | $ 1,226 | 1,196 | [2],[3] | $ 1,138 | [1],[2] | $ 1,238 | $ 1,253 | [2],[3] | |||||||
Residential Mortgage | ||||||||||||||||||||
Loss Contingencies | ||||||||||||||||||||
Amount in excess of amounts reserved | 9 | 9 | ||||||||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | 7 | 11 | 7 | 11 | 9 | $ 8 | $ 12 | $ 13 | ||||||||||||
Outstanding balances on residential mortgage loans sold with credit recourse | $ 289 | $ 289 | $ 312 | |||||||||||||||||
Delinquency Rates | 2.50% | 2.50% | 3.00% | |||||||||||||||||
Credit loss reserve | $ 5 | $ 5 | $ 5 | |||||||||||||||||
Repurchased Outstanding Principal | 5 | 3 | 7 | 5 | ||||||||||||||||
Repurchase Demand Request | 6 | $ 5 | 11 | $ 8 | ||||||||||||||||
Outstanding Repurchase Demand Inventory | 3 | 1 | ||||||||||||||||||
Secured Debt | ||||||||||||||||||||
Loss Contingencies | ||||||||||||||||||||
Fully and unconditionally guaranteed certain long-term borrowing obligations issued by wholly-owned issuing trust entities | 62 | 62 | 62 | |||||||||||||||||
Standby Letters of Credit | ||||||||||||||||||||
Loss Contingencies | ||||||||||||||||||||
Reserve for unfunded commitments | $ 5 | $ 5 | $ 6 | |||||||||||||||||
Standby letters of credit as a percentage of total letters of credit | 99.00% | 99.00% | 99.00% | |||||||||||||||||
Standby Letters of Credit | Secured Debt | ||||||||||||||||||||
Loss Contingencies | ||||||||||||||||||||
Standby letters of credit as a percentage of total letters of credit | 63.00% | 63.00% | 61.00% | |||||||||||||||||
Variable Rate Demand Note | ||||||||||||||||||||
Loss Contingencies | ||||||||||||||||||||
Fifth Third Securities, Inc. (FTS) acted as the remarketing agent to issuers of VRDNs | $ 540 | $ 540 | $ 508 | |||||||||||||||||
Letters of credit | 20 | 20 | 94 | |||||||||||||||||
Total Variable Rate Demand Notes | 560 | 560 | 602 | |||||||||||||||||
Letters of credit issued by the Bancorp related to variable rate demand notes | 299 | 299 | 331 | |||||||||||||||||
Variable Rate Demand Note | Trading Securities | ||||||||||||||||||||
Loss Contingencies | ||||||||||||||||||||
Total Variable Rate Demand Notes | 2 | 2 | 1 | |||||||||||||||||
Other Liabilities | ||||||||||||||||||||
Loss Contingencies | ||||||||||||||||||||
Reserve for unfunded commitments | 131 | 131 | 161 | |||||||||||||||||
Other Liabilities | Residential Mortgage | ||||||||||||||||||||
Loss Contingencies | ||||||||||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | 7 | 7 | 9 | |||||||||||||||||
Visa | ||||||||||||||||||||
Loss Contingencies | ||||||||||||||||||||
Recorded share of litigation formally settled by Visa and for probable future litigation settlements | 164 | 164 | $ 137 | |||||||||||||||||
Visa IPO, shares of Visa's Class B common stock received | 10.1 | |||||||||||||||||||
Visa Class B shares carryover basis | $ 0 | |||||||||||||||||||
Escrow Deposit | $ 600 | $ 600 | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 | $ 3,000 | |||||||||||
[1] | Includes $ 1 related to leveraged leases at June 30, 2018 . | |||||||||||||||||||
[2] | Includes $ 47 and $ 62 of other short-term investments , $ 908 and $ 1,297 of portfolio loans and leases, $ (5) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 2 and $ 2 of other liabilities, and $ 830 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respe ctive captions above at June 30, 2018 and December 31, 2017 , respectively. For further information refer to Note 9 . | |||||||||||||||||||
[3] | Includes $ 1 related to leveraged leases at December 31, 2017 . |
Commitments (Standby and Commer
Commitments (Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party) (Detail) - Financial Standby Letter of Credit $ in Millions | Jun. 30, 2018USD ($) | |
Line of Credit Facility | ||
Commitments | $ 2,092 | |
Less Than One Year From The Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 1,070 | [1] |
More than One and within Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 1,009 | [1] |
More than Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | $ 13 | |
[1] | ( a) Includes $ 7 and $ 2 issued on behalf of c ommercial 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 Com113
Commitments (Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party) (Parenthetical) (Detail) - Financial Standby Letter of Credit $ in Millions | Jun. 30, 2018USD ($) | |
Line of Credit Facility | ||
Commitments | $ 2,092 | |
Less Than One Year From The Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 1,070 | [1] |
Less Than One Year From The Balance Sheet Date | Commercial | ||
Line of Credit Facility | ||
Commitments | 7 | |
More than One and within Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 1,009 | [1] |
More than One and within Five Years from Balance Sheet Date | Commercial | ||
Line of Credit Facility | ||
Commitments | 2 | |
More than Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | $ 13 | |
[1] | ( a) Includes $ 7 and $ 2 issued on behalf of c ommercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively. |
Commitments (Letters of Credit)
Commitments (Letters of Credit) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | $ 2,092 | $ 2,185 |
Pass | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | 1,897 | 1,830 |
Special Mention | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | 46 | 67 |
Substandard | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | 149 | 218 |
Doubtful | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | $ 0 | $ 70 |
Commitments (Activity in Reserv
Commitments (Activity in Reserve for Representation and Warranty Provisions) (Detail) - Residential Mortgage - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Valuation And Qualifying Accounts Disclosure | ||||
Balance, beginning of period | $ 8 | $ 12 | $ 9 | $ 13 |
Net (reductions) additions to the reserve | (1) | (1) | (2) | (2) |
Balance, end of period | $ 7 | $ 11 | $ 7 | $ 11 |
Commitments (Unresolved Claims
Commitments (Unresolved Claims by Claimant) (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
GSE | ||
Loss Contingencies Dollars | ||
Balance, beginning of period | $ 1 | $ 2 |
New demands | 11 | 8 |
Loan paydowns/payoffs | 0 | |
Resolved demands | (9) | (8) |
Balance, end of period | $ 3 | $ 2 |
Loss Contingencies Units | ||
Balance, beginning of period | 6 | 13 |
New demands | 62 | 58 |
Loan paydowns/payoffs | (1) | |
Resolved demands | (54) | (54) |
Balance, end of period | 14 | 16 |
Private Label | ||
Loss Contingencies Dollars | ||
Balance, beginning of period | $ 0 | $ 0 |
New demands | 0 | 0 |
Loan paydowns/payoffs | 0 | |
Resolved demands | 0 | 0 |
Balance, end of period | $ 0 | $ 0 |
Loss Contingencies Units | ||
Balance, beginning of period | 1 | 0 |
New demands | 0 | 0 |
Loan paydowns/payoffs | 0 | |
Resolved demands | 0 | 0 |
Balance, end of period | 1 | 0 |
Commitments (Visa Funding and B
Commitments (Visa Funding and Bancorp Cash Payments) (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||||||
Jul. 31, 2018 | Sep. 30, 2014 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | Jun. 30, 2018 | Dec. 31, 2009 | |
Visa Funding | |||||||||
Loss Contingencies | |||||||||
Escrow Deposit | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 | $ 600 | $ 3,000 | |
Bancorp Cash Payment | |||||||||
Loss Contingencies | |||||||||
Reduction of liability in cash to the swap counterparty | $ 26 | $ 18 | $ 6 | $ 75 | $ 19 | $ 35 | $ 20 |
Commitments (Visa Funding an118
Commitments (Visa Funding and Bancorp Cash Payments) (Parenthetical) (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||||
Jul. 31, 2018 | Sep. 30, 2014 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | |
Bancorp Cash Payment | |||||||
Loss Contingencies [Line Items] | |||||||
Reduction of liability in cash to the swap counterparty | $ 26 | $ 18 | $ 6 | $ 75 | $ 19 | $ 35 | $ 20 |
Legal & Regulatory Proceedings
Legal & Regulatory Proceedings (Legal and Regulatory Proceedings - Additional Information) (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2013USD ($) | Dec. 31, 2013 | Jun. 30, 2018USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2012 | Mar. 31, 2012USD ($) | |
Loss Contingencies | ||||||
Amount in excess of amounts reserved | $ 5 | |||||
APR Percentage Allegedly Misleading | 120.00% | |||||
Number Of Putative Class Actions Filed | 4 | |||||
Damages Claimed By Plaintiff | $ 800 | $ 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 |
Related Party Transactions (Rel
Related Party Transactions (Related Party Transactions - Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | |
Related Party Transactions | |||||
Gain on sale of Worldpay, Inc. shares | $ (205) | $ 0 | |||
Vantiv Holding, LLC | |||||
Related Party Transactions | |||||
Class B common shares held in Worldpay, Inc, | $ 10.3 | $ 10.3 | |||
Equity Method Investment, Ownership Percentage | 3.30% | 3.30% | 4.90% | 8.60% | |
Gain in noninterest income as a result of Worldpay Transaction | $ 414 | ||||
Equity method investments, carrying value | $ 426 | 426 | |||
Gain on sale of Worldpay, Inc. shares | $ (205) | ||||
Class A common shares sold | 5,000,000 | ||||
GS Holdings | |||||
Related Party Transactions | |||||
Gain in noninterest income subsequemt to GreenSky, Inc IPO | $ 16 | ||||
Investment in Equity Securities | $ 53 | $ 53 | |||
Class A common stock shares issued at IPO | 38,000,000 | 38,000,000 | |||
Class A common stock valuation | $ 23 | $ 23 | |||
Economic interest percentage | 1.40% | 1.40% | |||
Membership units that were converted to GS Holdings units | 252,550 | 252,550 | |||
Class B common shares held in GreenSky, Inc. | 2,525,498 | 2,525,498 |
Income Taxes (Income Taxes - Ad
Income Taxes (Income Taxes - Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Taxes | ||||
Applicable income tax expense | $ 107 | $ 127 | $ 239 | $ 218 |
Effective tax rate | 15.50% | 25.90% | 15.70% | 24.50% |
AOCI (Activity of the Component
AOCI (Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net activity for accumulated net unrealized gain (loss) on available-for-sale securities | |||||
Unrealized holding gains (losses) on available-for-sale securities arising during period | $ (167) | $ 93 | $ (627) | $ 108 | |
Reclassification adjustment for net (gains) losses included in net income | 0 | 0 | 7 | 1 | |
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | |||||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period | 3 | 5 | (4) | 2 | |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 0 | (4) | (1) | (9) | |
Net activity for defined benefit plans, net | |||||
Reclassification of amounts to net periodic benefit costs | (1) | (1) | (2) | (2) | |
Total Other Comprehensive Activity | |||||
Pre-tax activity total | (212) | 152 | (806) | 164 | |
Total, Tax | 49 | (57) | 183 | (60) | |
Other comprehensive income (loss) | (163) | 95 | $ (623) | (623) | 104 |
Total Accumulated Other Comprehensive Income | |||||
Total Accumulated Other Comprehensive Income - Beginning Balance | (389) | 68 | 73 | 59 | |
Other comprehensive income (loss), Net of Tax | (163) | 95 | (623) | (623) | 104 |
Total Accumulated Other Comprehensive Income - Ending Balance | (552) | 163 | (552) | (552) | 163 |
Accumulated Net Unrealized Investment Gain (Loss) | |||||
Pre-tax activity for accumulated net unrealized gain (loss) on available-for-sale securities | |||||
Unrealized holding gains (losses) on available-for-sale securities arising during period | (217) | 148 | (811) | 170 | |
Reclassification adjustment for net losses (gains) included in net income | 0 | 0 | 9 | 2 | |
Net unrealized gains on available-for-sale securities | (217) | 148 | (802) | 172 | |
Tax effect for accumulated net unrealized gain (loss) on available-for-sale securities | |||||
Unrealized holding gains (losses) on available-for-sale securities arising during period | 50 | (55) | 184 | (62) | |
Reclassification adjustment for net losses (gains) included in net income | 0 | 0 | (2) | (1) | |
Net unrealized gains on available-for-sale securities | 50 | (55) | 182 | (63) | |
Net activity for accumulated net unrealized gain (loss) on available-for-sale securities | |||||
Unrealized holding gains (losses) on available-for-sale securities arising during period | (167) | 93 | (627) | 108 | |
Reclassification adjustment for net (gains) losses included in net income | 0 | 0 | 7 | 1 | |
Net unrealized gains on available-for-sale securities | (167) | 93 | (620) | 109 | |
Total Other Comprehensive Activity | |||||
Other comprehensive income (loss) | (167) | 93 | (620) | 109 | |
Total Accumulated Other Comprehensive Income | |||||
Total Accumulated Other Comprehensive Income - Beginning Balance | (318) | 117 | 135 | 101 | |
Other comprehensive income (loss), Net of Tax | (167) | 93 | (620) | 109 | |
Total Accumulated Other Comprehensive Income - Ending Balance | (485) | 210 | (485) | (485) | 210 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | |||||
Pre-tax activity for net unrealized gain (loss) on cash flow hedge derivatives | |||||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period | 4 | 8 | (5) | 3 | |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 0 | (6) | (1) | (14) | |
Net unrealized gains on cash flow hedge derivatives | 4 | 2 | (6) | (11) | |
Tax effect for net unrealized gain (loss) on cash flow hedge derivatives | |||||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period | (1) | (3) | 1 | (1) | |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 0 | 2 | 0 | 5 | |
Net unrealized gains on cash flow hedge derivatives | (1) | (1) | 1 | 4 | |
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | |||||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period | 3 | 5 | (4) | 2 | |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 0 | (4) | (1) | (9) | |
Net unrealized gains on cash flow hedge derivatives | 3 | 1 | (5) | (7) | |
Total Other Comprehensive Activity | |||||
Other comprehensive income (loss) | 3 | 1 | (5) | (7) | |
Total Accumulated Other Comprehensive Income | |||||
Total Accumulated Other Comprehensive Income - Beginning Balance | (19) | 2 | (11) | 10 | |
Other comprehensive income (loss), Net of Tax | 3 | 1 | (5) | (7) | |
Total Accumulated Other Comprehensive Income - Ending Balance | (16) | 3 | (16) | (16) | 3 |
Accumulated Defined Benefit Plans Adjustment | |||||
Pre-tax activity for defined benefit plans, net | |||||
Reclassification of amounts to net periodic benefit costs | 1 | 2 | 2 | 3 | |
Defined benefit plans, net | 1 | 2 | 2 | 3 | |
Tax effect for defined benefit plans, net | |||||
Reclassification of amounts to net periodic benefit costs | 0 | (1) | 0 | (1) | |
Defined benefit plans, net | 0 | (1) | 0 | (1) | |
Net activity for defined benefit plans, net | |||||
Reclassification of amounts to net periodic benefit costs | 1 | 1 | 2 | 2 | |
Defined benefit plans, net | 1 | 1 | 2 | 2 | |
Total Other Comprehensive Activity | |||||
Other comprehensive income (loss) | (1) | (1) | (2) | (2) | |
Total Accumulated Other Comprehensive Income | |||||
Total Accumulated Other Comprehensive Income - Beginning Balance | (52) | (51) | (53) | (52) | |
Other comprehensive income (loss), Net of Tax | (1) | (1) | (2) | (2) | |
Total Accumulated Other Comprehensive Income - Ending Balance | $ (51) | $ (50) | $ (51) | $ (51) | $ (50) |
AOCI (Reclassifications Out of
AOCI (Reclassifications Out of Accumulated Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Reclassifications Out Of Accumulated Other Comprehensive Income | |||||
Income Before Income Taxes | $ 693 | $ 494 | $ 1,529 | $ 890 | |
Applicable income tax expense | 107 | 127 | 239 | 218 | |
Net income | 586 | 367 | 1,290 | 672 | |
Total Reclassifications For The Period | |||||
Reclassifications Out Of Accumulated Other Comprehensive Income | |||||
Net income | (1) | 3 | (8) | 6 | |
Net Unrealized Gains On Available For Sale Securities | |||||
Reclassifications Out Of Accumulated Other Comprehensive Income | |||||
Reclassification adjustment for net losses (gains) included in net income | 0 | 0 | (9) | (2) | |
Income Before Income Taxes | [1] | 0 | 0 | (9) | (2) |
Applicable income tax expense | [1] | 0 | 0 | 2 | 1 |
Net income | [1] | 0 | 0 | (7) | (1) |
Net Unrealized Gains On Available For Sale Securities | Net (Losses) Gains Included In Net Income | |||||
Reclassifications Out Of Accumulated Other Comprehensive Income | |||||
Reclassification adjustment for net losses (gains) included in net income | [1] | 0 | 0 | (9) | (2) |
Net Unrealized Gains On Cash Flow Hedge Activities | |||||
Reclassifications Out Of Accumulated Other Comprehensive Income | |||||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 0 | 6 | 1 | 14 | |
Income Before Income Taxes | [1] | 0 | 6 | 1 | 14 |
Applicable income tax expense | [1] | 0 | (2) | 0 | (5) |
Net income | [1] | 0 | 4 | 1 | 9 |
Net Unrealized Gains On Cash Flow Hedge Activities | Interest Rate Contracts Related To C&I Loans | |||||
Reclassifications Out Of Accumulated Other Comprehensive Income | |||||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | [1] | 0 | 6 | 1 | 14 |
Amortization Of Defined Benefit Pension Items | |||||
Reclassifications Out Of Accumulated Other Comprehensive Income | |||||
Income Before Income Taxes | [1] | (1) | (2) | (2) | (3) |
Applicable income tax expense | [1] | 0 | 1 | 0 | 1 |
Net income | [1] | (1) | (1) | (2) | (2) |
Amortization Of Defined Benefit Pension Items | Net Actuarial Loss | |||||
Reclassifications Out Of Accumulated Other Comprehensive Income | |||||
Net periodic pension cost | [1],[2] | $ (1) | $ (2) | $ (2) | $ (3) |
[1] | Amounts in parentheses indicate reductions to net income | ||||
[2] | This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 21 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2017 for further information. |
EPS (Calculation of Earnings Pe
EPS (Calculation of Earnings Per Share and the Reconciliation of Earnings Per Share to Earnings Per Diluted Share) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings per share: | ||||
Net income (loss) available to common shareholders | $ 563 | $ 344 | $ 1,252 | $ 634 |
Less: Income allocated to participating securities | 6 | 4 | 15 | 7 |
Earnings per share - basic | 557 | 340 | 1,237 | 627 |
Earnings per diluted share: | ||||
Net income available to common shareholders | 563 | 344 | 1,252 | 634 |
Stock-based awards | 0 | 0 | ||
Net income available to common shareholders plus assumed conversions | 563 | 344 | 1,252 | 634 |
Less: Income allocated to participating securities | 6 | 4 | 14 | 7 |
Net income allocated to common shareholders | $ 557 | $ 340 | $ 1,238 | $ 627 |
Earnings per share: | ||||
Net income allocated to common shareholders | 683,344,844 | 741,400,700 | 686,564,682 | 744,516,799 |
Effect of dilutive securities: | ||||
Stock-based awards | 13,000,000 | 11,000,000 | 13,000,000 | 12,000,000 |
Net income allocated to common shareholders | 696,209,943 | 752,328,298 | 700,133,642 | 756,545,341 |
Earnings per share: | ||||
Earnings per share - basic | $ 0.81 | $ 0.46 | $ 1.8 | $ 0.84 |
Earnings per diluted share: | ||||
Earnings per share - diluted | $ 0.8 | $ 0.45 | $ 1.77 | $ 0.83 |
EPS (Earnings Per Share - Addit
EPS (Earnings Per Share - Additional Information) (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stock Appreciation Rights | ||||
Earnings Per Share Disclosure | ||||
Anti-dilutive securities | 2 | 4 | 2 | 5 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |||
Assets: | |||||
Available-for-sale debt securities, fair value | [1] | $ 31,961 | $ 31,751 | ||
Trading debt securities | 280 | 492 | |||
Equity securities | 475 | 439 | |||
Commercial | |||||
Assets: | |||||
Loans held for sale measured at FV | 8 | 0 | |||
Residential mortgage loans | |||||
Assets: | |||||
Loans measured at FV | 162 | 137 | |||
Fair value, recurring | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 31,347 | [2] | 31,139 | [3] | |
Trading debt securities | 280 | 492 | |||
Equity securities | 475 | 439 | |||
Residential mortgage loans held for sale | 658 | 399 | |||
Loans measured at FV | [4] | 162 | 137 | ||
Loans held for sale measured at FV | 8 | ||||
Mortgage servicing rights | 959 | [2],[5] | 858 | ||
Derivative assets | [6] | 945 | 823 | ||
Total assets | 34,834 | 34,287 | |||
Liabilities: | |||||
Derivative liabilities | [7] | 859 | 602 | ||
Short positions | [7] | 139 | 31 | ||
Total liabilities | 998 | 633 | |||
Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 540 | 514 | |||
Liabilities: | |||||
Derivative liabilities | 316 | 178 | |||
Foreign Exchange Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 121 | 124 | |||
Liabilities: | |||||
Derivative liabilities | 109 | 120 | |||
Equity Contract | Fair value, recurring | |||||
Assets: | |||||
Equity securities | 20 | ||||
Liabilities: | |||||
Derivative liabilities | 164 | 137 | |||
Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 284 | 165 | |||
Liabilities: | |||||
Derivative liabilities | 270 | 167 | |||
U.S. Treasury and federal agencies | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 96 | 98 | |||
U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 96 | 98 | |||
Trading debt securities | 19 | 12 | |||
Obligations of states and political subdivisions | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 35 | 44 | |||
Obligations of states and political subdivisions | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 35 | 44 | |||
Trading debt securities | 58 | 22 | |||
Agency mortgage-backed securities | Residential mortgage backed securities | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 16,094 | 15,319 | [8] | ||
Agency mortgage-backed securities | Residential mortgage backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 16,094 | 15,319 | |||
Trading debt securities | 75 | 395 | |||
Agency mortgage-backed securities | Commercial mortgage backed securities | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 10,038 | 10,167 | |||
Agency mortgage-backed securities | Commercial mortgage backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 10,038 | 10,167 | |||
Non-agency mortgage-backed securities | Commercial mortgage backed securities | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 3,086 | 3,293 | |||
Non-agency mortgage-backed securities | Commercial mortgage backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 3,086 | 3,293 | |||
Asset-backed securities and other debt securities | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 1,998 | 2,218 | |||
Asset-backed securities and other debt securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 1,998 | 2,218 | |||
Trading debt securities | 128 | 63 | |||
Fair Value, Inputs, Level 1 | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 96 | [2],[9] | 98 | [3],[10] | |
Trading debt securities | 10 | [9] | 1 | [10] | |
Equity securities | 474 | 438 | |||
Derivative assets | [6] | 34 | [9] | 40 | [10] |
Total assets | 614 | [9] | 577 | [10] | |
Liabilities: | |||||
Derivative liabilities | [7] | 99 | [9] | 39 | [10] |
Short positions | [7] | 88 | [9] | 25 | [10] |
Total liabilities | 187 | [9] | 64 | [10] | |
Fair Value, Inputs, Level 1 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 0 | [9] | 1 | [10] | |
Liabilities: | |||||
Derivative liabilities | 4 | [9] | 1 | [10] | |
Fair Value, Inputs, Level 1 | Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 34 | [9] | 39 | [10] | |
Liabilities: | |||||
Derivative liabilities | 95 | [9] | 38 | [10] | |
Fair Value, Inputs, Level 1 | U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 96 | [9] | 98 | [10] | |
Trading debt securities | 10 | [9] | 1 | ||
Fair Value, Inputs, Level 2 | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 31,251 | [2],[9] | 31,041 | [3],[10] | |
Trading debt securities | 270 | [9] | 491 | [10] | |
Equity securities | 1 | 1 | |||
Residential mortgage loans held for sale | 658 | [9] | 399 | [10] | |
Loans held for sale measured at FV | [9] | 8 | |||
Derivative assets | [6] | 900 | [9] | 775 | [10] |
Total assets | 33,088 | [9] | 32,707 | [10] | |
Liabilities: | |||||
Derivative liabilities | [7] | 589 | [9] | 421 | [10] |
Short positions | [7] | 51 | [9] | 6 | [10] |
Total liabilities | 640 | [9] | 427 | [10] | |
Fair Value, Inputs, Level 2 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 529 | [9] | 505 | [10] | |
Liabilities: | |||||
Derivative liabilities | 305 | [9] | 172 | [10] | |
Fair Value, Inputs, Level 2 | Foreign Exchange Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 121 | [9] | 124 | [10] | |
Liabilities: | |||||
Derivative liabilities | 109 | [9] | 120 | [10] | |
Fair Value, Inputs, Level 2 | Equity Contract | Fair value, recurring | |||||
Assets: | |||||
Equity securities | 20 | ||||
Fair Value, Inputs, Level 2 | Commodity Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 250 | [9] | 126 | [10] | |
Liabilities: | |||||
Derivative liabilities | 175 | [9] | 129 | [10] | |
Fair Value, Inputs, Level 2 | U.S. Treasury and federal agencies | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 0 | [9] | 0 | [10] | |
Trading debt securities | 9 | [9] | 11 | [10] | |
Fair Value, Inputs, Level 2 | Obligations of states and political subdivisions | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 35 | [9] | 44 | [10] | |
Trading debt securities | 58 | [9] | 22 | [10] | |
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Residential mortgage backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 16,094 | [9] | 15,319 | [10] | |
Trading debt securities | 75 | [9] | 395 | [10] | |
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Commercial mortgage backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 10,038 | [9] | 10,167 | [10] | |
Fair Value, Inputs, Level 2 | Non-agency mortgage-backed securities | Commercial mortgage backed securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 3,086 | [9] | 3,293 | [10] | |
Fair Value, Inputs, Level 2 | Asset-backed securities and other debt securities | Fair value, recurring | |||||
Assets: | |||||
Available-for-sale debt securities, fair value | 1,998 | [9] | 2,218 | [10] | |
Trading debt securities | 128 | [9] | 63 | [10] | |
Fair Value, Inputs, Level 3 | Fair value, recurring | |||||
Assets: | |||||
Loans measured at FV | [4] | 162 | 137 | ||
Mortgage servicing rights | 959 | 858 | |||
Derivative assets | [6] | 11 | 8 | ||
Total assets | 1,132 | 1,003 | |||
Liabilities: | |||||
Derivative liabilities | [7] | 171 | 142 | ||
Total liabilities | 171 | 142 | |||
Fair Value, Inputs, Level 3 | Interest Rate Contract | Fair value, recurring | |||||
Assets: | |||||
Derivative assets | 11 | 8 | |||
Liabilities: | |||||
Derivative liabilities | 7 | 5 | |||
Fair Value, Inputs, Level 3 | Equity Contract | Fair value, recurring | |||||
Liabilities: | |||||
Derivative liabilities | $ 164 | $ 137 | |||
[1] | Amortized cost of $ 32,589 and $ 31,577 at June 30, 2018 and December 31, 2017 , respectively. | ||||
[2] | Excludes FHLB, FRB and DTCC restricted stock holdings totaling $ 248 , $ 364 and $ 2 , respectively, at June 30, 2018 . | ||||
[3] | Excludes FHLB, FRB , and DTCC restricted stock holdings totaling $ 248 , $ 362 and $ 2 , respectively, at December 31, 2017 . | ||||
[4] | Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. | ||||
[5] | For both the six months ended June 30, 2018 and 2017 , dividends were $ 6 37.50 per preferred shares for Perpetual Preferred Stock, Series H, $ 828.12 per preferred share for Perpetual Preferred Stock, Series I and $ 612.50 per preferred share for Perpetual Preferred Stock, Series J. | ||||
[6] | Included in other assets in the Condensed Consolidated Balance Sheets. | ||||
[7] | Included in other liabilities in the Condensed Consolidat ed Balance Sheets. | ||||
[8] | Includes interest-only mortgage-backed securities of $ 34 as of December 31, 2017 , recorded at fair value with fair value changes recorded in securities gains, net, in the Consolidated Statements of Income. | ||||
[9] | During both the three and six months ended June 30, 2018 , no assets or liabilities were transferred between Level 1 and Level 2. | ||||
[10] | During the year ended December 31, 2017 , no assets or liabilities were transferred between Level 1 and Level 2. |
Fair Value Measurements (Ass127
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Federal Home Loan Bank Stock | $ 248 | $ 248 |
Federal Reserve Bank Stock | 364 | 362 |
DTCC Stock | $ 2 | $ 2 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements - Additional Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Net fair value of the interest rate lock commitments | $ 11 | $ 11 | ||||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 25 bp | 6 | 6 | ||||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 50 bp | 11 | 11 | ||||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 25 bp | 6 | 6 | ||||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 50 bp | 12 | 12 | ||||
Change in fair value of interest rate lock commitments, due to 10% adverse changes in the assumed loan closing rates | 1 | 1 | ||||
Change in fair value of interest rate lock commitments, due to 20% adverse changes in the assumed loan closing rates | 2 | 2 | ||||
Change in fair value of interest rate lock commitments, due to 10% favorable changes in the assumed loan closing rates | 1 | 1 | ||||
Change in fair value of interest rate lock commitments, due to 20% favorable changes in the assumed loan closing rates | 2 | 2 | ||||
Portfolio loans to loans held for sale | 171 | $ 140 | ||||
Fair value changes included in earnings for instruments for which the fair value option was elected | 18 | 26 | ||||
Net Losses On Operating Lease Equipment | 1 | 3 | 20 | |||
Larger commercial loans, subject to impairment review | 1 | 1 | ||||
OTTI | [1] | 0 | $ (14) | 0 | (24) | |
Commercial Loans Held For Sale | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Portfolio loans to loans held for sale | 57 | 1 | 75 | |||
Net impact related to fair value adjustments | (13) | (30) | ||||
Gain Loss On Sales Of Loans Net | (2) | |||||
Fair value adjustment on existing loans | 1 | |||||
Other Real Estate Owned | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Net impact related to fair value adjustments | 2 | 2 | ||||
Nonrecurring Losses Included As Charge-Offs | 1 | $ 1 | 2 | $ 3 | ||
Residential Mortgage Loans | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Fair value of loans | 1 | $ 2 | ||||
Fair value measurements nonrecurring | Private Equity Investments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
OTTI | 4 | 10 | ||||
Positive fair value adjustment, observable price changes | Private Equity Investments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Fair value adjustment | 16 | 51 | ||||
Cumulative Fair Value Adjustment Related to Assets Held at End of Period | 35 | |||||
Fair value adjustment, impairment | Private Equity Investments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||
Fair value adjustment | $ 1 | 11 | ||||
Cumulative Fair Value Adjustment Related to Assets Held at End of Period | $ 11 | |||||
[1] | Included in securities (losses) gains, net in the Condensed 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 | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||||||
Beginning Balance | $ 901 | $ 831 | $ 861 | $ 804 | |||||
Included in earnings | (2) | (29) | (1) | (42) | |||||
Purchases/originations | 45 | 120 | 81 | 174 | |||||
Settlements | (15) | (24) | (17) | (41) | |||||
Transfers Into Level 3 | [1] | 32 | 4 | 37 | 7 | ||||
Ending Balance | 961 | 902 | 961 | 902 | |||||
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | [2] | (12) | (41) | (25) | (76) | ||||
Residential Mortgage | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||||||
Beginning Balance | 136 | 141 | 137 | 143 | |||||
Included in earnings | (1) | 1 | (4) | 1 | |||||
Purchases/originations | 0 | 0 | 0 | 0 | |||||
Settlements | (5) | (4) | (8) | (9) | |||||
Transfers Into Level 3 | [1] | 32 | 4 | 37 | 7 | ||||
Ending Balance | 162 | 142 | 162 | 142 | |||||
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | [2] | (1) | 1 | (4) | 1 | ||||
Mortgage servicing rights | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||||||
Beginning Balance | 926 | 776 | 858 | 744 | |||||
Included in earnings | (13) | (47) | 16 | (70) | |||||
Purchases/originations | 46 | 120 | (85) | 175 | |||||
Settlements | 0 | 0 | 0 | 0 | |||||
Transfers Into Level 3 | 0 | [1] | 0 | 0 | [1] | 0 | |||
Ending Balance | 959 | 849 | 959 | 849 | |||||
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | (13) | [2] | (47) | (16) | [2] | (70) | |||
Interest Rate Contract | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||||||
Beginning Balance | [3],[4],[5] | 4 | 11 | 3 | 8 | ||||
Included in earnings | 22 | [5] | 26 | [3],[4] | 36 | [5] | 49 | [3],[4] | |
Purchases/originations | (1) | [5] | 0 | [3],[4] | (4) | [5] | (1) | [3],[4] | |
Settlements | (21) | [5] | (28) | [3],[4] | (31) | [5] | (47) | [3],[4] | |
Transfers Into Level 3 | [1] | 0 | [5] | 0 | [3],[4] | 0 | [5] | 0 | [3],[4] |
Ending Balance | 4 | [5] | 9 | [3],[4] | 4 | [5] | 9 | [3],[4] | |
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | [2] | 12 | [5] | 14 | [3],[4] | 12 | [5] | 15 | [3],[4] |
Equity Contract | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||||||
Beginning Balance | [3],[4] | (165) | (97) | (137) | (91) | ||||
Included in earnings | (10) | (9) | [3],[4] | (49) | (22) | [3],[4] | |||
Purchases/originations | 0 | 0 | [3],[4] | 0 | 0 | [3],[4] | |||
Settlements | 11 | 8 | [3],[4] | 22 | 15 | [3],[4] | |||
Transfers Into Level 3 | [1] | 0 | 0 | [3],[4] | 0 | 0 | [3],[4] | ||
Ending Balance | (164) | (98) | [3],[4] | (164) | (98) | [3],[4] | |||
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | [2] | $ (10) | $ (9) | [3],[4] | $ (49) | $ (22) | [3],[4] | ||
[1] | Includes certain residential mortgage loans originated as held for sale that were transferred to held for invest ment. | ||||||||
[2] | Includes interest income and expense . | ||||||||
[3] | Net interest rate derivatives include derivative assets and liabilities of $14 and $5 , respectively, as of June 30, 2017 . | ||||||||
[4] | Net interest rate derivatives include derivative assets and liabilities of $ 14 and $ 5 , respectively, as of June 30, 2017 . | ||||||||
[5] | Net interest rate derivatives include derivative assets and liabilities of $ 11 and $ 7 , respectively , as of June 30, 2018 . |
Fair Value Measurements (Rec130
Fair Value Measurements (Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs) (Level 3) (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||
Derivative assets | $ 961 | $ 901 | $ 861 | $ 902 | $ 831 | $ 804 |
Interest Rates | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ||||||
Derivative assets | 11 | 14 | ||||
Derivative liabilities | $ 7 | $ 5 |
Fair Value Measurements (Total
Fair Value Measurements (Total Gains and Losses Included in Earnings for Assets and Liabilites Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs) (Level 3) (Detail) - Fair Value, Inputs, Level 3 - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gains and losses included in earnings | $ (2) | $ (29) | $ (1) | $ (42) |
Mortgage Banking Revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gains and losses included in earnings | 8 | (21) | 47 | (21) |
Corporate Banking Revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gains and losses included in earnings | 0 | 1 | 1 | 1 |
Other Noninterest Income | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gains and losses included in earnings | $ (10) | $ (9) | $ (49) | $ (22) |
Fair Value Measurements (Tot132
Fair Value Measurements (Total Gains and Losses Included in Earning Attributable to Changes in Unrealized Gains and Losses Related to Level 3 Assets and Liabilites Still Held at Year End) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gain and losses included in earnings | $ (12) | $ (41) | $ (25) | $ (76) |
Mortgage Banking Revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gain and losses included in earnings | (2) | (33) | 23 | (55) |
Corporate Banking Revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gain and losses included in earnings | 0 | 1 | 1 | 1 |
Other Noninterest Income | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gain and losses included in earnings | $ (10) | $ (9) | $ (49) | $ (22) |
Fair Value Measurements (Fai133
Fair Value Measurements (Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Recurring Basis)) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Quantitative Information About Level 3 Fair Value Measurements | |||
Derivative instruments | $ 945 | $ 823 | |
Residential mortgage loans | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Loans measured at FV | 162 | $ 142 | |
Mortgage servicing rights | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Mortgage servicing rights | 959 | 849 | |
IRLCs, net | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Derivative instruments | 11 | 14 | |
Swap associated with the sale of Visa, Inc. Class B shares | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Derivative instruments | $ (164) | $ (98) | |
Minimum | Residential mortgage loans | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Interest rate risk factor | (13.30%) | (9.60%) | |
Credit risk factor | 0.00% | 0.00% | |
Minimum | Mortgage servicing rights | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Prepayment speed | 0.50% | 1.20% | |
OAS spread (bps) | 4.61% | 4.30% | |
Minimum | IRLCs, net | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Loan closing rates | 12.20% | 9.60% | |
Minimum | Swap associated with the sale of Visa, Inc. Class B shares | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Timing of the resolution of the covered litigation | Jan. 31, 2021 | Jun. 30, 2019 | |
Maximum | Residential mortgage loans | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Interest rate risk factor | 11.90% | 15.00% | |
Credit risk factor | 40.30% | 46.20% | |
Maximum | Mortgage servicing rights | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Prepayment speed | 97.00% | 100.00% | |
OAS spread (bps) | 15.13% | 15.15% | |
Maximum | IRLCs, net | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Loan closing rates | 96.60% | 96.80% | |
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 | Nov. 30, 2023 | Dec. 31, 2022 | |
Weighted average | Residential mortgage loans | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Interest rate risk factor | (0.10%) | 2.90% | |
Credit risk factor | 0.70% | 1.00% | |
Weighted average | Mortgage servicing rights | Fixed | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Prepayment speed | 9.50% | 11.50% | |
OAS spread (bps) | 5.43% | 5.30% | |
Weighted average | Mortgage servicing rights | Adjustable | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Prepayment speed | 23.60% | 24.80% | |
OAS spread (bps) | 8.17% | 7.73% | |
Weighted average | IRLCs, net | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Loan closing rates | 80.90% | 73.00% | |
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 | Sep. 6, 2021 | Sep. 30, 2020 |
Fair Value Measurements (Ass134
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | $ 327 | $ 562 | $ 327 | $ 562 |
Fair Value Measured On Nonrecurring Basis Gains Losses | (18) | (58) | (53) | (133) |
Commercial Loans Held-for-Sale | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 4 | 45 | 4 | 45 |
Fair Value Measured On Nonrecurring Basis Gains Losses | 0 | (13) | (1) | (32) |
Commercial and Industrial Loans | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 161 | 405 | 161 | 405 |
Fair Value Measured On Nonrecurring Basis Gains Losses | 14 | (32) | (30) | (58) |
Commercial Mortgage Loans | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 3 | 26 | 3 | 26 |
Fair Value Measured On Nonrecurring Basis Gains Losses | 1 | (9) | 6 | (11) |
Commercial Leases | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 14 | 3 | 14 | 3 |
Fair Value Measured On Nonrecurring Basis Gains Losses | (9) | (1) | (10) | (2) |
Other Real Estate Owned | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 17 | 11 | 17 | 11 |
Fair Value Measured On Nonrecurring Basis Gains Losses | (1) | (1) | (4) | (5) |
Bank premises and equipment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 37 | 16 | 37 | 16 |
Fair Value Measured On Nonrecurring Basis Gains Losses | (33) | (2) | (41) | (5) |
Operating lease equipment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 10 | 56 | 10 | 56 |
Fair Value Measured On Nonrecurring Basis Gains Losses | (1) | 0 | (3) | (20) |
Private Equity Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 81 | 81 | ||
Fair Value Measured On Nonrecurring Basis Gains Losses | 11 | 30 | ||
Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 277 | 562 | 277 | 562 |
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 | 4 | 45 | 4 | 45 |
Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 161 | 405 | 161 | 405 |
Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 3 | 26 | 3 | 26 |
Fair Value, Inputs, Level 3 | Commercial Leases | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 14 | 3 | 14 | 3 |
Fair Value, Inputs, Level 3 | Other Real Estate Owned | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 17 | 11 | 17 | 11 |
Fair Value, Inputs, Level 3 | Bank premises and equipment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 37 | 16 | 37 | 16 |
Fair Value, Inputs, Level 3 | Operating lease equipment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 10 | $ 56 | 10 | $ 56 |
Fair Value, Inputs, Level 3 | Private Equity Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 31 | 31 | ||
Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 50 | 50 | ||
Fair Value, Inputs, Level 2 | Private Equity Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | $ 50 | $ 50 |
Fair Value Measurements (Fai135
Fair Value Measurements (Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Nonrecurring Basis)) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Commercial Loans Held For Sale | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | $ 4 | $ 45 |
Commercial and Industrial Loans | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 161 | 405 |
Commercial Mortgage Loans | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 3 | 26 |
Commercial Leases | Commercial | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 14 | 3 |
OREO Property | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 17 | 11 |
Bank premises and equipment | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 37 | 16 |
Operating lease equipment | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Fair value measurements nonrecurring assets | 10 | $ 56 |
Private Equity Investments | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Comparable company analysis, fair value | 3 | |
Liquidity discount, fair value | $ 28 | |
Minimum | Private Equity Investments | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Liquidity discount | 0.00% | |
Maximum | Private Equity Investments | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Liquidity discount | 43.00% | |
Weighted average | Commercial Loans Held For Sale | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Cost to sell | 10.00% | 10.00% |
Weighted average | Private Equity Investments | ||
Quantitative Information About Level 3 Fair Value Measurements | ||
Liquidity discount | 13.70% |
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) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Residential mortgage loans | ||
Aggregate fair value | ||
Loans measured at fair value | $ 820 | $ 536 |
Past due loans of 90 days or more | 2 | 5 |
Nonaccrual loans | 1 | 1 |
Aggregate unpaid principal balance | ||
Loans measured at fair value | 802 | 522 |
Past due loans of 90 days or more | 2 | 5 |
Nonaccrual loans | 1 | 1 |
Difference | ||
Loans measured at fair value | 18 | 14 |
Past due loans of 90 days or more | 0 | 0 |
Nonaccrual loans | 0 | $ 0 |
Commercial loans | ||
Aggregate fair value | ||
Loans measured at fair value | 8 | |
Aggregate unpaid principal balance | ||
Loans measured at fair value | 8 | |
Difference | ||
Loans measured at fair value | $ 0 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amounts and Estimated Fair Values for Certain Financial Instruments) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | [1] | |
Financial assets: | ||||||
Cash and due from banks | $ 2,052 | $ 2,514 | $ 2,203 | $ 2,392 | ||
Held-to-maturity securities, amortized cost | [2] | 19 | 24 | |||
Other short-term investments | [1] | 1,636 | 2,753 | |||
Loans and leases held for sale | [3] | 783 | 492 | |||
Portfolio loans and leases, net | 90,855 | 90,774 | ||||
Other securities, fair value | [4] | 31,961 | 31,751 | |||
Held-to-maturity securities, fair value | 19 | 24 | ||||
Financial liabilities: | ||||||
Deposits | 104,131 | 103,162 | ||||
Federal funds purchased | 597 | 174 | ||||
Other short-term borrowings | 1,763 | 4,012 | ||||
Long-term debt | [1] | 14,321 | 14,904 | |||
Commercial | ||||||
Financial assets: | ||||||
Loans held for sale | 8 | 0 | ||||
Residential Mortgage | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 162 | $ 142 | ||||
Carrying (Reported) Amount, Fair Value Disclosure | ||||||
Financial assets: | ||||||
Cash and due from banks | 2,052 | 2,514 | ||||
Held-to-maturity securities, amortized cost | 19 | 24 | ||||
Other short-term investments | 1,636 | 2,753 | ||||
Loans and leases held for sale | 117 | 93 | ||||
Portfolio loans and leases, net | 90,693 | 90,637 | ||||
Unallocated Allowance For Loan And Lease Losses | (108) | (120) | ||||
Financial liabilities: | ||||||
Deposits | 104,131 | 103,162 | ||||
Federal funds purchased | 597 | 174 | ||||
Other short-term borrowings | 1,763 | 4,012 | ||||
Long-term debt | 14,321 | 14,904 | ||||
Carrying (Reported) Amount, Fair Value Disclosure | FHLB, FRB and DTCC restricted stock holdings | ||||||
Financial assets: | ||||||
Other securities | 614 | 612 | ||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial and Industrial Loans | Commercial | ||||||
Financial assets: | ||||||
Portfolio loans and leases, net | 40,858 | 40,519 | ||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Mortgage Loans | Commercial | ||||||
Financial assets: | ||||||
Portfolio loans and leases, net | 6,560 | 6,539 | ||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Construction Loans | Commercial | ||||||
Financial assets: | ||||||
Portfolio loans and leases, net | 4,666 | 4,530 | ||||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Leases | Commercial | ||||||
Financial assets: | ||||||
Portfolio loans and leases, net | 3,765 | 4,054 | ||||
Carrying (Reported) Amount, Fair Value Disclosure | Residential Mortgage | ||||||
Financial assets: | ||||||
Portfolio loans and leases, net | 15,392 | 15,365 | ||||
Carrying (Reported) Amount, Fair Value Disclosure | Home Equity | ||||||
Financial assets: | ||||||
Portfolio loans and leases, net | 6,560 | 6,968 | ||||
Carrying (Reported) Amount, Fair Value Disclosure | Automobile Loans | ||||||
Financial assets: | ||||||
Portfolio loans and leases, net | 8,899 | 9,074 | ||||
Carrying (Reported) Amount, Fair Value Disclosure | Credit Card | ||||||
Financial assets: | ||||||
Portfolio loans and leases, net | 2,146 | 2,182 | ||||
Carrying (Reported) Amount, Fair Value Disclosure | Other Consumer Loans | ||||||
Financial assets: | ||||||
Portfolio loans and leases, net | 1,955 | 1,526 | ||||
Total Fair Value | ||||||
Financial assets: | ||||||
Cash and due from banks, fair value | 2,052 | 2,514 | ||||
Held-to-maturity securities, fair value | 19 | 24 | ||||
Other short term investments, fair value | 1,636 | 2,753 | ||||
Portfolio loans and leases at fair value | 92,213 | 92,948 | ||||
Financial liabilities: | ||||||
Deposits, fair value | 104,064 | 103,123 | ||||
Federal funds purchased, fair value | 597 | 174 | ||||
Other short-term borrowings, fair value | 1,763 | 4,012 | ||||
Long term debt, fair value | 14,652 | 15,574 | ||||
Total Fair Value | Non Fair Value Option HFS Loans | ||||||
Financial assets: | ||||||
Loans held for sale | 117 | 93 | ||||
Total Fair Value | FHLB, FRB and DTCC restricted stock holdings | ||||||
Financial assets: | ||||||
Other securities, fair value | 614 | 612 | ||||
Total Fair Value | Commercial and Industrial Loans | Commercial | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 41,825 | 41,718 | ||||
Total Fair Value | Commercial Mortgage Loans | Commercial | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 6,493 | 6,490 | ||||
Total Fair Value | Commercial Construction Loans | Commercial | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 4,710 | 4,560 | ||||
Total Fair Value | Commercial Leases | Commercial | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 3,355 | 3,705 | ||||
Total Fair Value | Residential Mortgage | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 15,697 | 15,996 | ||||
Total Fair Value | Home Equity | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 6,936 | 7,410 | ||||
Total Fair Value | Automobile Loans | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 8,632 | 8,832 | ||||
Total Fair Value | Credit Card | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 2,518 | 2,616 | ||||
Total Fair Value | Other Consumer Loans | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 2,047 | 1,621 | ||||
Total Fair Value | Fair Value, Inputs, Level 1 | ||||||
Financial assets: | ||||||
Cash and due from banks, fair value | 2,052 | 2,514 | ||||
Other short term investments, fair value | 1,636 | 2,753 | ||||
Financial liabilities: | ||||||
Federal funds purchased, fair value | 597 | 174 | ||||
Long term debt, fair value | 14,223 | 15,045 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | ||||||
Financial liabilities: | ||||||
Deposits, fair value | 104,064 | 103,123 | ||||
Other short-term borrowings, fair value | 1,763 | 4,012 | ||||
Long term debt, fair value | 429 | 529 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | FHLB, FRB and DTCC restricted stock holdings | ||||||
Financial assets: | ||||||
Other securities, fair value | 614 | 612 | ||||
Total Fair Value | Fair Value, Inputs, Level 3 | ||||||
Financial assets: | ||||||
Held-to-maturity securities, fair value | 19 | 24 | ||||
Portfolio loans and leases at fair value | 92,213 | 92,948 | ||||
Total Fair Value | Fair Value, Inputs, Level 3 | Non Fair Value Option HFS Loans | ||||||
Financial assets: | ||||||
Loans held for sale | 117 | 93 | ||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | Commercial | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 41,825 | 41,718 | ||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | Commercial | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 6,493 | 6,490 | ||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Construction Loans | Commercial | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 4,710 | 4,560 | ||||
Total Fair Value | Fair Value, Inputs, Level 3 | Commercial Leases | Commercial | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 3,355 | 3,705 | ||||
Total Fair Value | Fair Value, Inputs, Level 3 | Residential Mortgage | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 15,697 | 15,996 | ||||
Total Fair Value | Fair Value, Inputs, Level 3 | Home Equity | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 6,936 | 7,410 | ||||
Total Fair Value | Fair Value, Inputs, Level 3 | Automobile Loans | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 8,632 | 8,832 | ||||
Total Fair Value | Fair Value, Inputs, Level 3 | Credit Card | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | 2,518 | 2,616 | ||||
Total Fair Value | Fair Value, Inputs, Level 3 | Other Consumer Loans | ||||||
Financial assets: | ||||||
Portfolio loans and leases at fair value | $ 2,047 | $ 1,621 | ||||
[1] | Includes $ 47 and $ 62 of other short-term investments , $ 908 and $ 1,297 of portfolio loans and leases, $ (5) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 2 and $ 2 of other liabilities, and $ 830 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respe ctive captions above at June 30, 2018 and December 31, 2017 , respectively. For further information refer to Note 9 . | |||||
[2] | Fair value of $ 19 and $ 24 at June 30, 2018 and December 31, 2017 , respectively. | |||||
[3] | Includes $ 658 and $ 399 of residential mortgage loans held for sale measured at fair value and $ 8 and $ 0 of commercial loans held for sale measured at fair value at June 30, 2018 and December 31, 2017 , respectively. | |||||
[4] | Amortized cost of $ 32,589 and $ 31,577 at June 30, 2018 and December 31, 2017 , respectively. |
Segments (Results of Operations
Segments (Results of Operations and Average Assets by Segment - Additional Information) (Detail) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements | ||
Full-service Banking Centers | 1,158 | |
Number of business segments | 4 | 4 |
Segments (Results of Operati139
Segments (Results of Operations and Average Assets by Segment) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | ||||
Segment Reporting Information | |||||||||
Total Assets | $ 140,695 | $ 141,067 | $ 140,695 | $ 140,695 | $ 141,067 | $ 142,193 | |||
Net interest income | 1,020 | 939 | 2,016 | 1,872 | |||||
Provision for (benefit from) loan and lease losses | 33 | 52 | 56 | 126 | |||||
Net interest income after provision for loan and lease losses | 987 | 887 | 1,960 | 1,746 | |||||
Service charges on deposits | 137 | 139 | 275 | 277 | |||||
Wealth and asset management revenue | 108 | 103 | 221 | 211 | |||||
Corporate banking revenue | 120 | 101 | 208 | 175 | |||||
Card and processing revenue | 84 | 79 | 163 | 153 | |||||
Mortgage banking net revenue | 53 | 55 | 109 | 108 | |||||
Other noninterest income | 250 | 85 | 708 | 160 | |||||
Securities gains (losses), net | (5) | 0 | (15) | 1 | |||||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | (4) | 2 | (17) | 2 | |||||
Total noninterest income | 743 | 564 | 1,652 | 1,087 | |||||
Salaries, wages and incentives | 471 | 397 | 918 | 808 | |||||
Net occupancy expense | 74 | 70 | 149 | 148 | |||||
Card and processing expense | 30 | 33 | 60 | 63 | |||||
Other noninterest expense | 287 | 285 | 572 | 555 | |||||
Employee benefits | 78 | 86 | 188 | 196 | |||||
Equipment expense | 30 | 29 | 61 | 57 | |||||
Technology and communications | 67 | 57 | 135 | 116 | |||||
Total noninterest expense | 1,037 | 957 | 2,083 | 1,943 | |||||
Income (Loss) Before Income Taxes | 693 | 494 | 1,529 | 890 | |||||
Net income (loss) | 586 | 367 | 1,290 | 1,290 | 672 | ||||
Applicable income tax expense (benefit) | 107 | 127 | 239 | 218 | |||||
Total goodwill | 2,462 | 2,423 | 2,462 | 2,462 | 2,423 | $ 2,445 | |||
Intersegment Elimination | |||||||||
Segment Reporting Information | |||||||||
Wealth and asset management revenue | (34) | [1] | (33) | [1] | (69) | (67) | |||
Total noninterest income | (34) | [1] | (33) | [1] | (69) | [1] | (67) | ||
Other noninterest expense | (34) | (33) | [1] | (69) | (67) | ||||
Total noninterest expense | (34) | (33) | (69) | (67) | |||||
Commercial Banking | |||||||||
Segment Reporting Information | |||||||||
Total Assets | 58,763 | 57,766 | 58,763 | 58,763 | 57,766 | ||||
Net interest income | 427 | 415 | 846 | 839 | |||||
Provision for (benefit from) loan and lease losses | (10) | 22 | (29) | 29 | |||||
Net interest income after provision for loan and lease losses | 437 | 393 | 875 | 810 | |||||
Service charges on deposits | 70 | 73 | 139 | 146 | |||||
Wealth and asset management revenue | 1 | 1 | 2 | 2 | |||||
Corporate banking revenue | 119 | 100 | 205 | 173 | |||||
Card and processing revenue | 14 | 14 | 28 | 28 | |||||
Mortgage banking net revenue | 0 | 0 | 0 | 0 | |||||
Other noninterest income | 25 | 40 | 73 | 80 | |||||
Securities gains (losses), net | 0 | 0 | 0 | ||||||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | 0 | 0 | 0 | 0 | |||||
Total noninterest income | 229 | [2] | 228 | [2] | 447 | [2] | 429 | ||
Salaries, wages and incentives | 71 | 60 | 141 | 127 | |||||
Net occupancy expense | 6 | 7 | 13 | 13 | |||||
Card and processing expense | 1 | 1 | 2 | 2 | |||||
Other noninterest expense | 263 | 247 | 545 | 507 | |||||
Employee benefits | 9 | 9 | 27 | 27 | |||||
Equipment expense | 6 | 4 | 11 | 8 | |||||
Technology and communications | 2 | 2 | 4 | 5 | |||||
Total noninterest expense | 358 | 330 | 743 | 689 | |||||
Income (Loss) Before Income Taxes | 308 | 291 | 579 | 550 | |||||
Net income (loss) | 289 | 237 | 547 | 453 | |||||
Applicable income tax expense (benefit) | 19 | 54 | 32 | 97 | |||||
Total goodwill | 630 | 613 | 630 | 630 | 613 | ||||
Branch Banking | |||||||||
Segment Reporting Information | |||||||||
Total Assets | 60,281 | 57,396 | 60,281 | 60,281 | 57,396 | ||||
Net interest income | 499 | 437 | 965 | 867 | |||||
Provision for (benefit from) loan and lease losses | 47 | 39 | 90 | 80 | |||||
Net interest income after provision for loan and lease losses | 452 | 398 | 875 | 787 | |||||
Service charges on deposits | 67 | 66 | 134 | 130 | |||||
Wealth and asset management revenue | 37 | 35 | 74 | 71 | |||||
Corporate banking revenue | 1 | 1 | 2 | 3 | |||||
Card and processing revenue | 69 | 64 | 133 | 122 | |||||
Mortgage banking net revenue | 1 | 1 | 3 | 3 | |||||
Other noninterest income | (8) | 22 | 7 | 45 | |||||
Securities gains (losses), net | 0 | 0 | 0 | ||||||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | 0 | 0 | 0 | 0 | |||||
Total noninterest income | 167 | [3],[4] | 189 | [5],[6] | 353 | [3],[4] | 374 | ||
Salaries, wages and incentives | 111 | 104 | 220 | 208 | |||||
Net occupancy expense | 44 | 43 | 88 | 90 | |||||
Card and processing expense | 30 | 33 | 59 | 62 | |||||
Other noninterest expense | 208 | 196 | 423 | 388 | |||||
Employee benefits | 26 | 26 | 53 | 53 | |||||
Equipment expense | 12 | 13 | 25 | 26 | |||||
Technology and communications | 1 | 1 | 3 | 2 | |||||
Total noninterest expense | 432 | 416 | 871 | 829 | |||||
Income (Loss) Before Income Taxes | 187 | 171 | 357 | 332 | |||||
Net income (loss) | 147 | 111 | 282 | 215 | |||||
Applicable income tax expense (benefit) | 40 | 60 | 75 | 117 | |||||
Total goodwill | 1,655 | 1,655 | 1,655 | 1,655 | 1,655 | ||||
Consumer Lending | |||||||||
Segment Reporting Information | |||||||||
Total Assets | 22,128 | 22,442 | 22,128 | 22,128 | 22,442 | ||||
Net interest income | 59 | 59 | 118 | 120 | |||||
Provision for (benefit from) loan and lease losses | 8 | 7 | 20 | 22 | |||||
Net interest income after provision for loan and lease losses | 51 | 52 | 98 | 98 | |||||
Service charges on deposits | 0 | 0 | 0 | 0 | |||||
Wealth and asset management revenue | 0 | 0 | 0 | 0 | |||||
Corporate banking revenue | 0 | 0 | 0 | 0 | |||||
Card and processing revenue | 0 | 0 | 0 | 0 | |||||
Mortgage banking net revenue | 52 | 54 | 106 | 105 | |||||
Other noninterest income | 4 | 6 | 7 | 9 | |||||
Securities gains (losses), net | 0 | 0 | 0 | ||||||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | (4) | 2 | (17) | 2 | |||||
Total noninterest income | 52 | 62 | 96 | 116 | |||||
Salaries, wages and incentives | 42 | 40 | 82 | 77 | |||||
Net occupancy expense | 3 | 3 | 5 | 5 | |||||
Card and processing expense | 0 | 0 | 0 | 0 | |||||
Other noninterest expense | 51 | 55 | 102 | 110 | |||||
Employee benefits | 10 | 10 | 20 | 20 | |||||
Equipment expense | 0 | 0 | 0 | 0 | |||||
Technology and communications | 1 | 1 | 2 | 1 | |||||
Total noninterest expense | 107 | 109 | 211 | 213 | |||||
Income (Loss) Before Income Taxes | (4) | 5 | (17) | 1 | |||||
Net income (loss) | (3) | 3 | (14) | 1 | |||||
Applicable income tax expense (benefit) | (1) | 2 | (3) | 0 | |||||
Total goodwill | 0 | 0 | 0 | 0 | 0 | ||||
Wealth and Asset Management | |||||||||
Segment Reporting Information | |||||||||
Total Assets | 9,270 | 8,238 | 9,270 | 9,270 | 8,238 | ||||
Net interest income | 45 | 37 | 88 | 75 | |||||
Provision for (benefit from) loan and lease losses | (11) | (1) | 5 | 3 | |||||
Net interest income after provision for loan and lease losses | 56 | 38 | 83 | 72 | |||||
Service charges on deposits | 0 | 0 | 1 | 1 | |||||
Wealth and asset management revenue | 104 | 100 | 214 | 205 | |||||
Corporate banking revenue | 0 | 0 | 1 | 0 | |||||
Card and processing revenue | 1 | 1 | 2 | 3 | |||||
Mortgage banking net revenue | 0 | 0 | 0 | 0 | |||||
Other noninterest income | 4 | 0 | 9 | 0 | |||||
Securities gains (losses), net | 0 | 0 | 0 | ||||||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | 0 | 0 | 0 | 0 | |||||
Total noninterest income | 109 | 101 | 227 | 209 | |||||
Salaries, wages and incentives | 43 | 37 | 87 | 76 | |||||
Net occupancy expense | 3 | 2 | 6 | 5 | |||||
Card and processing expense | 0 | 0 | 0 | 0 | |||||
Other noninterest expense | 70 | 67 | 144 | 134 | |||||
Employee benefits | 7 | 7 | 17 | 16 | |||||
Equipment expense | 0 | 0 | 0 | 0 | |||||
Technology and communications | 0 | 0 | 0 | 0 | |||||
Total noninterest expense | 123 | 113 | 254 | 231 | |||||
Income (Loss) Before Income Taxes | 42 | 26 | 56 | 50 | |||||
Net income (loss) | 33 | 17 | 44 | 33 | |||||
Applicable income tax expense (benefit) | 9 | 9 | 12 | 17 | |||||
Total goodwill | 177 | 155 | 177 | 177 | 155 | ||||
General Corporate and Other | |||||||||
Segment Reporting Information | |||||||||
Total Assets | (9,747) | (4,775) | (9,747) | (9,747) | (4,775) | ||||
Net interest income | (10) | (9) | (1) | (29) | |||||
Provision for (benefit from) loan and lease losses | (1) | (15) | (30) | (8) | |||||
Net interest income after provision for loan and lease losses | (9) | 6 | 29 | (21) | |||||
Service charges on deposits | 0 | 0 | 1 | 0 | |||||
Wealth and asset management revenue | 0 | 0 | 0 | 0 | |||||
Corporate banking revenue | 0 | 0 | 0 | (1) | |||||
Card and processing revenue | 0 | 0 | 0 | 0 | |||||
Mortgage banking net revenue | 0 | 0 | 0 | 0 | |||||
Other noninterest income | 225 | 17 | 612 | 26 | |||||
Securities gains (losses), net | (5) | (15) | 1 | ||||||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | 0 | 0 | 0 | 0 | |||||
Total noninterest income | 220 | 17 | 598 | 26 | |||||
Salaries, wages and incentives | 204 | 156 | 388 | 320 | |||||
Net occupancy expense | 18 | 15 | 37 | 35 | |||||
Card and processing expense | (1) | (1) | (1) | (1) | |||||
Other noninterest expense | (271) | (247) | (573) | (517) | |||||
Employee benefits | 26 | 34 | 71 | 80 | |||||
Equipment expense | 12 | 12 | 25 | 23 | |||||
Technology and communications | 63 | 53 | 126 | 108 | |||||
Total noninterest expense | 51 | 22 | 73 | 48 | |||||
Income (Loss) Before Income Taxes | 160 | 1 | 554 | (43) | |||||
Net income (loss) | 120 | (1) | 431 | (30) | |||||
Applicable income tax expense (benefit) | 40 | 2 | 123 | (13) | |||||
Total goodwill | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
[1] | Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income. | ||||||||
[2] | Includes impairment charges of $ 31 for operating lease equipment. For more information refer to Note 21 . | ||||||||
[3] | Includes impairment charges of $ 41 for branches and land. For more information refer to Note 7 and Note 21 . | ||||||||
[4] | Includes impairment charges of $ 33 for branches and land. For more information refer to Note 7 and Note 21 . | ||||||||
[5] | Includes impairment charge s of $ 5 for branches and land. For more information refer to Note 7 and Note 21 . | ||||||||
[6] | Includes impairment charges of $ 2 for branches and land. For more information refer to Note 7 and Note 21 . |
Segments (Results of Operati140
Segments (Results of Operations and Average Assets by Segment) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information | |||||
Impairment of Branches and Land | $ 33 | $ 2 | $ 41 | $ 5 | |
Other Asset Impairment Charges | (2) | (19) | |||
Bank premises and equipment held for sale | 37 | 37 | $ 27 | ||
Commercial Banking | Operating lease equipment | |||||
Segment Reporting Information | |||||
Other Asset Impairment Charges | 2 | 31 | |||
General Corporate and Other | |||||
Segment Reporting Information | |||||
Bank premises and equipment held for sale | $ 37 | $ 41 | $ 37 | $ 41 |
Pending Acquisition (Additional
Pending Acquisition (Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Billions | 6 Months Ended | |
Jun. 30, 2018 | Mar. 31, 2018 | |
Business Acquisition | ||
MB Financial Total Assets at 3/31/2018 | $ 20 | |
May 18, 2018 | ||
Business Acquisition | ||
Total implied consideration transferred | $ 54.2 | |
Share consideration transferred | 1.45 | |
Implied value of merger transaction | $ 4.7 | |
Cash consideration transferred per share | $ 5.54 |
Subsequent Event (Subsequent Ev
Subsequent Event (Subsequent Event - Additional Information) (Detail) $ in Millions | 3 Months Ended |
Jun. 30, 2018USD ($)shares | |
Subsequent Event | |
Subsequent Event [Line Items] | |
Subsequent Event Date | Jul. 26, 2018 |
Face amount of notes issued or redeemed | $ 1,550 |
Fixed Rate 3.35 Percent Senior Notes Due 2021 | |
Subsequent Event [Line Items] | |
Face amount of notes issued or redeemed | $ 500 |
Maturity date(s) Start | Jul. 26, 2018 |
Maturity date(s) End | Jul. 26, 2021 |
Floating Rate 3ML Plus 44 bps Senior Notes Due 2021 | |
Subsequent Event [Line Items] | |
Face amount of notes issued or redeemed | $ 300 |
Maturity date(s) Start | Jul. 26, 2018 |
Maturity date(s) End | Jul. 26, 2021 |
Fixed Rate 3.95 Percent Senior Notes Due 2025 | |
Subsequent Event [Line Items] | |
Face amount of notes issued or redeemed | $ 750 |
Maturity date(s) Start | Jul. 26, 2018 |
Maturity date(s) End | Jul. 28, 2025 |
Open Market Share Repurchase | |
Subsequent Event [Line Items] | |
Subsequent Event Start Date | Jul. 20, 2018 |
Subsequent Event End Date | Aug. 2, 2018 |
Shares repurchased | shares | 16,945,020 |
Repurchased common stock through open market repurchase transactions | $ 500 |
Settlement Start Date | Jul. 24, 2018 |
Settlement End Date | Aug. 6, 2018 |