Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
Document Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FITB | ||
Entity Registrant Name | FIFTH THIRD BANCORP | ||
Entity Central Index Key | 35,527 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 647,259,351 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 19,429,251,571 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |||
Assets | |||||
Cash and due from banks | $ 2,681 | $ 2,514 | [1] | ||
Other short-term investments | [2] | 1,825 | 2,753 | ||
Available-for-sale debt and other securities | [3] | 32,830 | 31,751 | ||
Held-to-maturity securities | [4] | 18 | 24 | ||
Trading debt securities | 287 | 492 | |||
Equity securities | 452 | 439 | |||
Loans and leases held for sale | [5] | 607 | 492 | ||
Portfolio loans and leases | [2],[6] | 95,265 | 91,970 | ||
ALLL | [2] | (1,103) | (1,196) | ||
Portfolio loans and leases, net | 94,162 | 90,774 | |||
Bank premises and equipment | [7] | 1,861 | 2,003 | ||
Operating lease equipment | 518 | 646 | |||
Goodwill | 2,478 | 2,445 | |||
Intangible assets | 40 | 27 | |||
Servicing rights | 938 | 858 | |||
Other assets | [2] | 7,372 | [1] | 6,863 | |
Total Assets | 146,069 | 142,081 | |||
Deposits | |||||
Noninterest-bearing deposits | 32,116 | 35,276 | |||
Interest-bearing deposits | 76,719 | 67,886 | |||
Total deposits | 108,835 | 103,162 | |||
Federal funds purchased | 1,925 | 174 | |||
Other short-term borrowings | 573 | 4,012 | |||
Accrued taxes, interest and expenses | 1,562 | [1] | 1,465 | ||
Other liabilities | [2] | 2,498 | 2,144 | ||
Long-term debt | [2] | 14,426 | 14,904 | ||
Total liabilities | 129,819 | 125,861 | |||
Equity | |||||
Common stock | [8] | 2,051 | 2,051 | ||
Preferred stock | [9] | 1,331 | 1,331 | ||
Capital surplus | 2,873 | 2,790 | |||
Retained earnings | [1] | 16,578 | 14,957 | ||
Accumulated other comprehensive (loss) income | (112) | 73 | |||
Treasury stock | [8] | (6,471) | (5,002) | ||
Total Bancorp Shareholders' Equity | 16,250 | 16,200 | |||
Noncontrolling interests | 0 | 20 | |||
Total Equity | 16,250 | 16,220 | |||
Total Liabilities and Equity | $ 146,069 | $ 142,081 | |||
[1] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. | ||||
[2] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . | ||||
[3] | Amortized cost of $ 33,128 and $ 31,577 at December 31, 2018 and 2017 , respectively. | ||||
[4] | Fair value of $ 18 and $ 24 at December 31, 2018 and 2017 , respectively . | ||||
[5] | Includes $ 537 and $ 399 of residential mortgage loans held for sale measured at fair value and $7 and $0 of commercial loans held for sale measured at fair value at December 31, 2018 and 2017 , respectively. | ||||
[6] | Includes $ 179 and $ 137 of residential mortgage loans measured at fair value at December 31, 2018 and 2017 , respectively. | ||||
[7] | Includes $ 42 and $ 27 of bank premises and equipment held for sale at December 31, 2018 and 2017 , respectively. For further information refer to N ote 7 . | ||||
[8] | Common shares: Stated value $ 2.22 per share; authorized 2,000,000,000 ; outstanding at December 31, 2018 – 646,630,857 (excludes 277,261,724 treasury shares) , 2017 – 693,804,893 (excludes 230,087,688 treasury shares). | ||||
[9] | 446,000 shares of undesignated no par value preferred stock are authorized and unissued at December 31, 2018 and 2017 ; fixed-to-floating rate non-cumulative Series H perpetual preferred stock with a $ 25,000 liquidation preference: 24,000 authorized shares, issued and outstanding at December 31, 2018 and 2017 ; fixed-to-floating rate non-cumulative Series I perpetual preferred stock with a $ 25,000 liquidation preference: 18,000 authorized shares, issued and outstandi ng at December 31, 2018 and 2017 ; and fixed-to-floating rate non-cumulative Series J perpetual preferred stock with a $ 25,000 liquidation preference: 12,000 authorized shares, issue d and outstanding at December 31, 2018 and 2017 . |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | ||
Other Short-term Investments | [1] | $ 1,825 | $ 2,753 | |
Portfolio loans and leases | [1],[2] | 95,265 | 91,970 | |
ALLL | [1] | (1,103) | (1,196) | |
Other assets | [1] | 7,372 | [3] | 6,863 |
Other liabilities | [1] | 2,498 | 2,144 | |
Long-term debt | [1] | 14,426 | 14,904 | |
Available-for-sale and other securities, amortized cost | 33,128 | 31,577 | ||
Held-to-maturity securities, fair value | 18 | 24 | ||
Loans held for sale measured at FV | 537 | 399 | ||
Loans measured at FV | 179 | 137 | ||
Bank premises and equipment held for sale | $ 42 | $ 27 | ||
Common stock, stated value | $ 2.22 | $ 2.22 | ||
Common stock, authorized | 2,000,000,000 | 2,000,000,000 | ||
Common stock, outstanding | 646,630,857 | 693,804,893 | ||
Common stock, treasury shares | 277,261,724 | 230,087,688 | ||
Residential Mortgage | ||||
Loans measured at FV | $ 179 | $ 137 | ||
Commercial | ||||
ALLL | (645) | (753) | ||
Loans held for sale measured at FV | 7 | 0 | ||
Variable Interest Entities | ||||
Other Short-term Investments | 40 | 62 | ||
Portfolio loans and leases | 668 | 1,297 | ||
ALLL | (4) | (6) | ||
Other assets | 5 | 7 | ||
Other liabilities | 1 | 2 | ||
Long-term debt | $ 606 | $ 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 $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . | |||
[2] | Includes $ 179 and $ 137 of residential mortgage loans measured at fair value at December 31, 2018 and 2017 , respectively. | |||
[3] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Interest Income | |||||||
Interest and fees on loans and leases | $ 4,078 | $ 3,478 | $ 3,233 | ||||
Interest on securities | 1,080 | 996 | 952 | ||||
Interest on other short-term investments | 25 | 15 | 8 | ||||
Total interest income | 5,183 | 4,489 | 4,193 | ||||
Interest Expense | |||||||
Interest on deposits | 538 | 277 | 205 | ||||
Interest on federal funds purchased | 30 | 6 | 2 | ||||
Interest on other short-term borrowings | 29 | 30 | 10 | ||||
Interest on long-term debt | 446 | 378 | 361 | ||||
Total interest expense | 1,043 | 691 | 578 | ||||
Net Interest Income | 4,140 | 3,798 | 3,615 | ||||
Provision for loan and lease losses | 237 | 261 | [1] | 343 | [1] | ||
Net Interest Income After Provision for Loan and Lease Losses | 3,903 | 3,537 | 3,272 | ||||
Noninterest Income: | |||||||
Service charges on deposits | 549 | 554 | 558 | ||||
Wealth and asset management revenue | 444 | 419 | 404 | ||||
Corporate banking revenue | 438 | 353 | 432 | ||||
Card and processing revenue | 329 | 313 | 319 | ||||
Mortgage banking net revenue | 212 | 224 | 285 | ||||
Other noninterest income | 887 | [2] | 1,357 | [3] | 688 | [4] | |
Securities gains (losses), net | (54) | 2 | 10 | ||||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | (15) | 2 | 0 | ||||
Total noninterest income | 2,790 | 3,224 | 2,696 | ||||
Noninterest Expense | |||||||
Salaries, wages and incentives | 1,783 | 1,633 | 1,612 | ||||
Employee benefits | 332 | 356 | 339 | ||||
Net occupancy expense | 292 | 295 | 299 | ||||
Technology and communications | 285 | 245 | 234 | ||||
Card and processing expense | 123 | 129 | 132 | ||||
Equipment expense | 123 | 117 | 118 | ||||
Other noninterest expense | [1] | 990 | 1,007 | 1,026 | |||
Total noninterest expense | 3,928 | 3,782 | 3,760 | ||||
Income (Loss) Before Income Taxes | 2,765 | 2,979 | 2,208 | ||||
Applicable income tax expense | 572 | 799 | 665 | ||||
Net Income | 2,193 | 2,180 | [1] | 1,543 | [1] | ||
Less: Net income attributable to noncontrolling interests | 0 | 0 | (4) | ||||
Net Income attributable to Bancorp | 2,193 | 2,180 | 1,547 | ||||
Dividends on preferred stock | 75 | 75 | 75 | ||||
Net income (loss) available to common shareholders | $ 2,118 | $ 2,105 | $ 1,472 | ||||
Earnings per share - basic | [1] | $ 3.11 | $ 2.86 | $ 1.92 | |||
Earnings per share - diluted | [1] | $ 3.06 | $ 2.81 | $ 1.91 | |||
Average common shares outstanding - basic | 673,346,168 | 728,289,200 | 757,432,291 | ||||
Average common shares outstanding - diluted | 685,488,498 | 740,691,433 | 764,495,353 | ||||
[1] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. | ||||||
[2] | Includes impairment charges of $ 45 for branches and land. For more information refer to Note 7 and Note 26 . | ||||||
[3] | Includes impairment charges of $ 7 for branches and land. For more information refer to Note 7 and Note 26 . | ||||||
[4] | Includes impairment charges of $ 32 for branches and land. For more information refer to Note 7 . |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Statement Of Income And Comprehensive Income | |||||
Net income (loss) | $ 2,193 | $ 2,180 | [1] | $ 1,543 | [1] |
Other Comprehensive Income (Loss), Net of Tax | |||||
Unrealized holding gains (losses) on available-for-sale securities arising during the year | (371) | 21 | (130) | ||
Reclassification adjustment for net (gains) losses included in net income | 9 | 4 | (7) | ||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during the year | 169 | (7) | 19 | ||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 2 | (12) | (31) | ||
Net actuarial gain (loss) arising during the year | 1 | 1 | (1) | ||
Reclassification of amounts to net periodic benefit costs | 7 | 7 | 12 | ||
Other comprehensive income (loss), Net of Tax | (183) | 14 | (138) | ||
Comprehensive income | 2,010 | 2,194 | 1,405 | ||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | (4) | ||
Comprehensive income attributable to Bancorp | $ 2,010 | $ 2,194 | $ 1,409 | ||
[1] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common stock | Preferred Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Bancorp Shareholders' Equity | Non- Controlling Interests | ||
Beginning Balance at Dec. 31, 2015 | $ 15,870 | $ 2,051 | $ 1,331 | $ 2,666 | $ 12,358 | $ 197 | $ (2,764) | $ 15,839 | $ 31 | ||
Net income (loss) | [1] | 1,543 | |||||||||
Other Comprehensive Income (loss) | (138) | ||||||||||
Ending Balance at Dec. 31, 2016 | 16,081 | 2,051 | 1,331 | 2,756 | 13,290 | 59 | (3,433) | 16,054 | 27 | ||
Impact of cumulative effect of change in accounting principles | (134) | [1] | (134) | (134) | |||||||
Beginning Balance at Jan. 01, 2016 | 15,736 | 2,051 | 1,331 | 2,666 | 12,224 | 197 | (2,764) | 15,705 | 31 | ||
Net income (loss) | 1,543 | 1,547 | 1,547 | (4) | |||||||
Other Comprehensive Income (loss) | (138) | (138) | (138) | ||||||||
Cash dividends declared: | |||||||||||
Common stock | (405) | [2] | (405) | (405) | |||||||
Preferred stock | (75) | [3] | (75) | (75) | |||||||
Shares acquired for treasury | (661) | 7 | (668) | (661) | |||||||
Impact of stock transactions under stock compensation plans, net | 80 | 83 | 1 | (4) | 80 | ||||||
Other | 1 | (2) | 3 | 1 | |||||||
Ending Balance at Dec. 31, 2016 | 16,081 | 2,051 | 1,331 | 2,756 | 13,290 | 59 | (3,433) | 16,054 | 27 | ||
Net income (loss) | 2,180 | [1] | 2,180 | 2,180 | |||||||
Other Comprehensive Income (loss) | 14 | 14 | 14 | ||||||||
Cash dividends declared: | |||||||||||
Common stock | (436) | [2] | (436) | (436) | |||||||
Preferred stock | (75) | [3] | (75) | (75) | |||||||
Shares acquired for treasury | (1,605) | (17) | (1,588) | (1,605) | |||||||
Impact of stock transactions under stock compensation plans, net | 67 | 51 | 16 | 67 | |||||||
Other | (6) | (2) | 3 | 1 | (7) | ||||||
Ending Balance at Dec. 31, 2017 | 16,220 | 2,051 | 1,331 | 2,790 | 14,957 | 73 | (5,002) | 16,200 | 20 | ||
Net income (loss) | 2,193 | ||||||||||
Other Comprehensive Income (loss) | (183) | ||||||||||
Ending Balance at Dec. 31, 2018 | 16,250 | 2,051 | 1,331 | 2,873 | 16,578 | (112) | (6,471) | 16,250 | 0 | ||
Impact of cumulative effect of change in accounting principles | 4 | [4] | 6 | (2) | 4 | ||||||
Beginning Balance at Jan. 01, 2018 | 16,224 | 2,051 | 1,331 | 2,790 | 14,963 | 71 | (5,002) | 16,204 | 20 | ||
Net income (loss) | 2,193 | 2,193 | 2,193 | ||||||||
Other Comprehensive Income (loss) | (183) | (183) | (183) | ||||||||
Cash dividends declared: | |||||||||||
Common stock | (499) | [2] | (499) | (499) | |||||||
Preferred stock | (75) | [3] | (75) | (75) | |||||||
Shares acquired for treasury | (1,453) | 41 | (1,494) | (1,453) | |||||||
Impact of stock transactions under stock compensation plans, net | 65 | 42 | 23 | 65 | |||||||
Other | (22) | (4) | 2 | (2) | (20) | ||||||
Ending Balance at Dec. 31, 2018 | $ 16,250 | $ 2,051 | $ 1,331 | $ 2,873 | $ 16,578 | $ (112) | $ (6,471) | $ 16,250 | $ 0 | ||
[1] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. | ||||||||||
[2] | For the years ended December 31, 2018 , 2017 and 2016 , dividends declared per common share were $ 0.74 , $ 0.60 and $ 0.53 , respectively. | ||||||||||
[3] | For the years ended December 31, 2018 , 2017 and 2016 , dividends were $ 1,275.00 per preferred share for Perpetual Preferred Stock, Series H, $ 1,656.24 per share for Perpetual Preferred Stock, Series I and $ 1,225.00 per preferred share for Perpetual Preferred Stock, Series J | ||||||||||
[4] | Related to the adoption as of January 1, 2018 of ASU 2016-0 1, ASU 2017-12 and ASU 2018-02. Refer to Note 1 for additional information. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Common stock, per share | $ 0.74 | $ 0.6 | $ 0.53 |
Preferred stock, Series H | |||
Preferred stock, per share | 1,275 | 1,275 | 1,275 |
Preferred stock Series I | |||
Preferred stock, per share | 1,656.24 | 1,656.24 | 1,656.24 |
Preferred stock, Series J | |||
Preferred stock, per share | $ 1,225 | $ 1,225 | $ 1,225 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Operating Activities | ||||||
Net income | $ 2,193 | $ 2,180 | [1] | $ 1,543 | [1] | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Provision for (benefit from) loan and lease losses | 237 | 261 | [1] | 343 | [1] | |
Depreciation, amortization and accretion | 360 | 341 | [1] | 453 | [1] | |
Stock-based compensation expense | 127 | 118 | [1] | 111 | [1] | |
(Benefit from) provision for deferred income taxes | 30 | (252) | [1] | (141) | [1] | |
Securities losses (gains), net | 54 | (3) | [1] | (7) | [1] | |
Securities losses (gains), net - non-qualifying hedges on mortgage servicing rights | 15 | (2) | [1] | 0 | [1] | |
MSR fair value adjustment | 83 | 122 | [1] | 0 | [1] | |
(Recovery of) provision for MSR impairment | 0 | 0 | [1] | (7) | [1] | |
Net gains on sales of loans and fair value adjustments on loans held for sale | (71) | (108) | [1] | (101) | [1] | |
Net losses on disposition and impairment of bank premises and equipment | (43) | 0 | [1] | (13) | [1] | |
Gain on sale of certain retail branch operations | 0 | 0 | [1] | (19) | [1] | |
Net (gains) losses on disposition and impairment of operating lease equipment | 6 | (39) | [1] | (9) | [1] | |
Gain related to Vantiv Inc.'s acquisition of Worldpay Group plc. | (414) | 0 | 0 | |||
Gain on sale of Worldpay, Inc. shares | (205) | (1,037) | 0 | |||
Gain on the TRA associated with Worldpay, Inc. | (20) | (44) | [1] | (197) | [1] | |
Proceeds from sales of loans held for sale | 5,199 | 6,453 | [1] | 6,895 | [1] | |
Loans originated or purchased for sale, net of repayments | (5,378) | (6,054) | [1] | (7,014) | [1] | |
Dividends representing return on equity method investments | 12 | 46 | [1] | 28 | [1] | |
Net change in: | ||||||
Trading and equity securities | 132 | (442) | [1] | (23) | [1] | |
Other assets | 303 | (22) | [1] | 338 | [1] | |
Accrued taxes, interest and expenses | 147 | (138) | [1] | (157) | [1] | |
Other liabilities | 15 | 22 | [1] | 24 | [1] | |
Net Cash Provided by (Used in) Operating Activities | 2,856 | 1,480 | [1] | 2,091 | [1] | |
Proceeds from sales: | ||||||
Available-for-sale debt and other securities | 12,430 | 12,637 | [1] | 18,280 | [1] | |
Loans and leases | 305 | 164 | [1] | 360 | [1] | |
Bank premises and equipment | 57 | 40 | [1] | 82 | [1] | |
Proceeds from repayments / maturities: | ||||||
Available-for-sale debt and other securities | 1,845 | 2,331 | [1] | 3,776 | [1] | |
Held-to-maturity securities | 6 | 3 | [1] | 44 | [1] | |
Purchases: | ||||||
Available-for-sale debt and other securities | (16,207) | (15,295) | [1] | (24,636) | [1] | |
Bank premises and equipment | (192) | (200) | [1] | (186) | [1] | |
MSRs | (82) | (109) | [1] | 0 | [1] | |
Proceeds from sale and dividends representing return of equity method investments | 604 | 1,363 | [1] | 64 | [1] | |
Proceeds from settlement of BOLI | 16 | 14 | [1] | 23 | [1] | |
Net cash paid on sale of certain retail branch operations | 0 | 0 | [1] | (219) | [1] | |
Net cash paid on acquisitions | (43) | (44) | [1] | 0 | [1] | |
Net change in: | ||||||
Other short-term investments | 928 | 1 | [1] | (83) | [1] | |
Loans and leases | (3,866) | (446) | [1] | (243) | [1] | |
Operating lease equipment | 58 | (31) | [1] | (126) | [1] | |
Net Cash (Used in) Provided by Investing Activities | (4,141) | 428 | [1] | (2,864) | [1] | |
Net change in: | ||||||
Deposits | 5,673 | (659) | [1] | 1,146 | [1] | |
Federal funds purchased | 1,751 | 42 | [1] | (19) | [1] | |
Other short-term borrowings | (3,439) | 477 | [1] | 2,028 | [1] | |
Dividends paid on common stock | (467) | (430) | [1] | (402) | [1] | |
Dividends paid on preferred stock | (98) | (75) | [1] | (52) | [1] | |
Proceeds from issuance of long-term debt | 2,438 | 2,490 | [1] | 3,735 | [1] | |
Repayment of long-term debt | (2,884) | (1,969) | [1] | (5,119) | [1] | |
Repurchase of treasury stock and related forward contract | 1,453 | 1,605 | [1] | 661 | [1] | |
Other | (69) | (57) | [1] | (31) | [1] | |
Net Cash Provided (Used in) by Financing Activities | 1,452 | (1,786) | [1] | 625 | [1] | |
Increase (Decrease) in Cash and Due from Banks | 167 | 122 | [1] | (148) | [1] | |
Cash and Due from Banks at Beginning of Period | [1] | 2,514 | 2,392 | 2,540 | ||
Cash and Due from Banks at End of Period | $ 2,681 | $ 2,514 | [1] | $ 2,392 | [1] | |
[1] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting and Reporting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Basis of Presentation | |
Summary of Significant Accounting and Reporting Policies | 1 . SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES Nature of Operations Fifth Third Bancorp, an Ohio corporation, conducts its principal lending, deposit gathering, transaction processing and service advisory activities through its banking and non-banking subsidiaries from banking centers located throughout the Midwestern and Southeastern regions of the United States. Basis of Presentation The Consolidated Financial Statements include the accounts of the Bancorp and its majority-owned subsidiaries and VIEs in which the Bancorp has been determined to be the primary beneficiary. Other entities, including certain joint ventures, in which the Bancorp has the ability to exercise significant influence over operating and financial policies of the investee, but upon which the Bancorp does not possess control, are accounted for by the e quity method of accounting and not consolidated. The investments in those entities in which the Bancorp does not have the ability to exercise significant influence are generally carried at fair value unless the investment does not have a readily determinab le fair value. The Bancorp accounts for equity investments without a readily determinable fair value using the measurement alternative to fair value, representing the cost of the investment minus any impairment recorded, if any, and plus or minus changes r esulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Intercompany transactions and balances among consolidated entities have been eliminated. Certain prior period data has been reclass ified to conform to current period presentation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and a ccompanying notes. Actual results could differ from those estimates. Cash and Due From Banks Cash and due from banks consist of currency and coin, cash items in the process of collection and due from banks. Currency and coin includes both U.S. and foreign currency owned and held at Fifth Third offices and that is in-transit to the FRB. Cash items in the process of collection include checks and drafts that are drawn on another depository institution or the FRB that are payable immediately upon presentation in the U.S. Balances due from banks include noninterest-bearing balances that are funds on dep osit at other depository institutions or the FRB. Investment Securities Debt s ecurities are classified as held-to-maturity, available-for-sale or trading on the date of purchase. Only those securities which management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. Debt s ecurities are classified as available-for-sale when, in management’s judgment, they may be sold in response to, or in anticipation of, changes in market conditions. Debt s ec urities are classified as trading when bought and held principally for the purpose of selling them in the near term. Available-for-sale debt securities are reported at fair value with unrealized gains and losses, net of related deferred income taxes, inclu ded in OCI. Trading debt securities are reported at fair value with unrealized gains and losses included in noninterest income. Available-for-sale and held-to-maturity debt securities with unrealized losses are reviewed quarterly for possi ble OTTI. I f the Bancorp intends to sell the debt security or will more likely than not be required to sell the debt security before recovery of the entire amortized cost basis, then an OTTI has occurred. However, even if the Bancorp does not intend to sell the debt secur ity and will not likely be required to sell the debt security before recovery of its entire amortized cost basis, the Bancorp must evaluate expected cash flows to be received and determine if a credit loss has occurred. In the event of a credit loss, the c redit component of the impairment is recognized within noninterest income and the non-credit component is recognized through OCI. Effective January 1, 2018, equity securities with readily determinable fair values not accounted for under the equity method are reported at fair value with unrealized gains and losses included in noninterest income in the Consolidated Statements of Income. Prior to January 1, 2018, equity securities were classified as available-for-sale or trading on the date of purchase, and t he accounting for unrealized gains and losses was the same as for debt securities classified as available-for-sale and trading. Equity securities were classified as trading when bought and held principally for the purpose of selling them in the near term. For equity securities classified as available-for-sale , th e Bancorp’s management evaluated the securities in an unrealized loss position for OTTI on the basis of the duration of the decline in value of the security and severity of that decline as well as t he Bancorp’s intent and ability to hold these securities for a period of time sufficient to allow for any anticipated recove ry in the market value. If it was determined that the imp airment on an equity security was other-than-temporary, an impairment loss equal to the difference between the amortized cost of th e security and its fair value was recognized within noninterest income in the Consolidated Statements of Income. The fair value of a security is determined based on quoted market prices. If quoted ma rket prices are not available, fair value is determined based on quoted prices of similar instruments or DCF models that incorporate market inputs and assumptions including discount rates, prepayment speeds and loss rates. Realized securities gains or loss es are reported within noninterest income in the Consolidated Statements of Income. The cost of securities sold is based on the specific identification method . Portfolio Loans and Leases Basis of a ccounting Portfolio loans and leases are generally reported at the principal amount outstanding, net of unearned income, deferred direct loan origination fees and costs and any direct principal charge-offs. Direct loan origination fees and costs are deferred and the net amount is amortized over the estimated life of the related loans as a yield adjustment. Interest income is recognized based on the principal balance outstanding computed using the effective interest method. Loans acquired by the Bancorp through a purc hase business combination are recorded at fair value as of the acquisition date. The Bancorp does not carry over the acquired company’s ALLL, nor does the Bancorp add to its existing ALLL as part of purchase accounting. Purchased loans are evaluated for ev idence of credit deterioration at acquisition and recorded at their initial fair value. For loans acquired with no evidence of credit deterioration, the fair value discount or premium is amortized over the contractual life of the loan as an adjustment to y ield. For loans acquired with evidence of credit deterioration, the Bancorp determines at the acquisition date the excess of the loan’s contractually required payments over all cash flows expected to be collected as an amount that should not be accreted in to interest income (nonaccretable difference). The remaining amount representing the difference in the expected cash flows of acquired loans and the initial investment in the acquired loans is accreted into interest income over the remaining life of the lo an or pool of loans (accretable yield). Subsequent to the acquisition date, increases in expected cash flows over those expected at the acquisition date are recognized prospectively as interest income over the remaining life of the loan. The present value of any decreases in expected cash flows resulting directly from a change in the contractual interest rate are recognized prospectively as a reduction of the accretable yield. The present value of any decreases in expected cash flows after the acquisition d ate as a result of credit deterioration is recognized by recording an ALLL or a direct charge-off. Subsequent to the acquisition date, the methods utilized to estimate the required ALLL are similar to originated loans. This method of accounting for loans a cquired with deteriorated cr edit quality does not apply to loans carried at fair value, residential mortgage loans held for sale and loans un der revolving credit agreements. The Bancorp’s lease portfolio consists of both direct financing and leveraged leas es. Direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, less unearned income. Interest income on direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Leveraged leases are carried at the aggregate of lease payments (less nonrecourse debt payments) plus estimated residual value of the leased property, less unearned income. Interest income on leverage d leases is recognized over the term of the lease to achieve a constant rate of return on the outstanding investment in the lease, net of the related deferred income tax liability, in the years in which the net investment is positive. Nonaccrual loans and l eases When a loan is placed on nonaccrual status, the accrual of interest, amortization of loan premium, accretion of loan discount and amortization/accretion of deferred net direct loan origination fees or costs are discontinued and all previously accru ed and unpaid interest is charged against income. Commercial loans are placed on nonaccrual status when there is a clear indication that the borrower’s cash flows may not be sufficient to meet payments as they become due. Such loans are also placed on nona ccrual status when the principal or interest is past due 90 days or more, unless the loan is both well-secured and in the process of collection. The Bancorp classifies residential mortgage loans that have principal and interest payments that have become pa st due 150 days as nonaccrual unless the loan is both well-secured and in the process of collection. Residential mortgage loans may stay on non accrual status for an extended time as the foreclosure process typically lasts longer than 180 days. Home equity loans and lines of credit are reported on nonaccrual status if principal or interest has been in default for 90 days or more unless the loan is both well-secured and in the process of collection. Home equity loans and lines of credit that have been in defa ult for 60 days or more are also reported on nonaccrual status if the senior lien has been in default 120 days or more, unless the loan is both well secured and in the process of collection. Residential mortgage, home equity, automobile and other consumer loans and leases that have been modified in a TDR and subsequently become past due 90 days are placed on nonaccrual status unless the loan is both well-secured and in the process of collection. Commercial and credit card loans that have been modified in a TDR are classified as nonaccrual unless such loans have sustained repayment performance of six months or more and are reasonably assured of repayment in accordance with the restructured terms. Well-secured loans are collateralized by perfected security int erests in real and/or personal property for which the Bancorp estimates proceeds from the sale would be sufficient to recover the outstanding principal and accrued interest balance of the loan and pay all costs to sell the collateral. The Bancorp considers a loan in the process of collection if collection efforts or legal action is proceeding and the Bancorp expects to collect funds sufficient to bring the loan current or recover the entire outstanding principal and accrued interest balance. Nonaccrual comm ercial loans and nonaccrual credit card loans are generally accounted for on the cost recovery method. The Bancorp believes the cost recovery method is appropriate for nonaccrual commercial loans and nonaccrual credit card loans because the assessment of c ollectability of the remaining recorded investment of these loans involves a high degree of subjectivity and uncertainty due to the nature or absence of underlying collateral. Under the cost recovery method, any payments received are applied to reduce prin cipal. Once the entire recorded investment is collected, additional payments received are treated as recoveries of amounts previously charged-off until recovered in full, and any subsequent payments are treated as interest income. Nonaccrual residential mo rtgage loans and other nonaccrual consumer loans are generally accounted for on the cash basis method. The Bancorp believes the cash basis method is appropriate for nonaccrual residential mortgage and other nonaccrual consumer loans because such loans have generally been written down to estimated collateral values and the collectability of the remaining investment involves only an assessment of the fair value of the underlying collateral, which can be measured more objectively with a lesser degree of uncert ainty than assessments of typical commercial loan collateral. Under the cash basis method, interest income is recognized when cash is received, to the extent such income would have been accrued on the loan’s remaining balance at the contractual rate. Nonac crual loans may be returned to accrual status when all delinquent interest and principal payments become current in accordance with the loan agreement and are reasonably assured of repayment in accordance with the contractual terms of the loan agreement, o r when the loan is both well-secured and in the process of collection. Commercial loans on nonaccrual status, including those modified in a TDR, as well as criticized commercial loans with aggregate borrower relationships exceeding $ 1 million, are subject to an individual review to identify charge-offs. The Bancorp does not have an established delinquency threshold for partially or fully charging off commercial loans. Residential mortgage loans, home equity loans and lines of credit an d credit card loans that have principal and interest payments that have become past due 180 days are assessed for a charge-off to the ALLL, unless such loans are both well-secured and in the process of collection. Home equity loans and lines of credit are also assessed for charge-off to the ALLL when such loans or lines of credit have become past due 120 days if the senior lien is also 120 days past due, unless such loans are both well-secured and in the process of collection. Automobile and other consumer loans and leases that have principal and interest payments that have become past due 120 days are assessed for a charge-off to the ALLL, unless such loans are both well-secured and in the process of collection. Restructured loans and l eases A loan is acco unted for as a TDR if the Bancorp, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. A TDR typically involves a modification of terms such as a reductio n of the stated interest rate or remaining principal amount of the loan, a reduction of accrued interest or an extension of the maturity date at a stated interest rate lower than the current market rate for a new lo an with similar risk. T he OCC, a national bank regulatory agency, has issued interpretive guidance that requires non-reaffirmed loans included in Chapter 7 bankruptcy filings to be accounted for as nonperforming TDRs and collateral dependent loans regardless of their payment history and capacity to pay in the future. The Bancorp’s banking subsidiary is a state chartered bank which therefore is not subject to guidance of the OCC. The Bancorp does not consider the bankruptcy court’s discharge of the borrower’s debt a concession when the discharged d ebt is not reaffirmed and as such, these loans are classified as TDRs only if one or more of the previously mentioned concessions are granted. The Bancorp measures the impairment loss of a TDR based on the difference between the original loan’s carrying am ount and the present value of expected future cash flows discounted at the original, effective yield of the loan. Residential mortgage loans, home equity loans, automobile loans and other consumer loans modified as part of a TDR are maintained on accrual s tatus, provided there is reasonable assurance of repayment and of performance according to the modified terms based upon a current, well-documented credit evaluation. Commercial loans and credit card loans modified as part of a TDR are maintained on accrua l status provided there is a sustained payment history of six months or more prior to the modification in accordance with the modified terms and collectability is reasonably assured for all remaining contractual pa yments under the modified terms . TDRs of c ommercial loans and credit cards that do not have a sustained payment history of six months or more in accordance with their modified terms remain on nonaccrual status until a six month payment history is sustained. In certain cases, commercial TDRs on non accrual status may be accounted for using the cash basis method for income recognition, provided that full repayment of principal under the modified terms of the loan is reasonably assured. Impaired loans and l eases A loan is considered to be impaired when, based on current information and events, it is probable that the Bancorp will be unable to collect all amounts due (including both principal and interest) according to the contractual terms of the loan agreement. Impaired loans generally consist of n onaccrual loans and leases, loans modified in a TDR and loans over $ 1 million that are currently on accrual status and not yet modified in a TDR, but for which the Bancorp has determined that it is probable that it will grant a payment concession in the ne ar term due to the borrower’s financial difficulties. For loans modified in a TDR, the contractual terms of the loan agreement refer to the terms specified in the original loan agreement. A loan restructured in a TDR is no longer considered impaired in yea rs after the restructuring if the restructuring agreement specifies a rate equal to or greater than the rate the Bancorp was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan is not impaired based on the te rms specified by the restructuring agreement. Refer to the ALLL section for discussion regarding the Bancorp’s methodology for identifying impaired loans and determination of the need for a loss accrual. Loans and Leases Held for Sale Loans and leases held for sale primarily represent conforming fixed-rate residential mortgage loans originated or acquired with the intent to sell in the secondary market and jumbo residential mortgage loans, commercial loans, other residential mortgage loans and other con sumer loans that management has the intent to sell. Loans and leases held for sale may be carried at the lower of cost or fair value, or carried at fair value where the Bancorp has elected the fair value option of accounting under U.S. GAAP. The Bancorp ha s elected to measure certain groups of loans held for sale under the fair value option, including certain residential mortgage loans originated as held for sale and certain purchased commercial loans designated as held for sale at acquisition . For loans in which the Bancorp has not elected the fair value option, the lower of cost or fair value is determined at the individual loan level. The fair value of residential mortgage loans held for sale for which the fair value election has been made is estimated ba sed upon mortgage-backed securities prices and spreads to those prices or, for certain ARM loans, DCF models that may incorporate the anticipated portfolio composition, credit spreads of asset-backed securities with similar collateral and market conditions . The anticipated portfolio composition includes the effects of interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. These fair value marks are recorded as a component of noninterest income in mortgage banking net revenue. The Bancorp generally has commitments to sell residential mortgage loans held for sale in the secondary market. Gains or losses on sales are recognized in mortgage banking net revenue. Management’s intent to sell residential mortgage loans classified as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be reclassified to loans held for investment and, thereafter, reported within the Bancorp’s residential mortgage class of portfolio loans and leases. In such cases, the residential mortgage loans will continue to be measured at fair value, which is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Loans and leases held for sale are placed on nonaccrual status consistent with the Bancorp’s nonaccrual policy for portfolio loans and lea ses. Other Real Estate Owned OREO, which is included in other assets in the Consolidated Balance Sheets , represents property acquired through foreclosure or other proceedings and is carried at the lower of cost or fair value, less costs to sell. All OREO property is periodically evaluated for impairment and decreases in carrying value are recognized as reductions in other noninterest income in the Consolidated Statements of Income. For government-guaranteed mortgage loans, upon foreclosure, a separate othe r receivable is recognized if certain conditions are met for the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. This receivable is also included in other assets, separate from OREO, in the Consolidated Bala nce Sheets. ALLL The Bancorp disaggregates its portfolio loans and leases into portfolio segments for purposes of determining the ALLL. The Bancorp’s portfolio segments include commercial, residential mortgage and consumer. The Bancorp further disaggregat es its portfolio segments into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Classes within the commercial portfolio segment include commercial and industrial, commercial mortgage owner-occupied, com mercial mortgage nonowner-occupied, commercial construction and commercial leasing. The residential mortgage portfolio segment is also considered a class. Classes within the consumer portfolio segment include home equity, automobile, credit card and other consumer loans. For an analysis of the Bancorp’s ALLL by portfolio segment and credit quality information by class, refer to Note 6 . The Bancorp maintains the ALLL to absorb probable loan and lease losses inherent in its portfolio segments. The ALLL is maintained at a level the Bancorp considers to be adequate and is based on ongoing quarterly assessments and evaluations of the collectability and historical loss experience of loans and leases. Credit losses are charged and recoveries are credited to the ALLL. Provisions for loan and lease losses are based on the Bancorp’s review of the historical credit loss experience and such factors that, in management’s judgment, deserve consideration under existing economic conditions in estimating probable credit l osses. The Bancorp’s strategy for credit risk management includes a combination of conservative exposure limits significantly below legal lending limits and conservative underwriting, documentation and collections standards. The strategy also emphasizes di versification on a geographic, industry and customer level, regular credit examinations and quarterly management reviews of large credit exposures and loans experiencing deterioration of credit quality. The Bancorp’s methodology for determining the ALLL is based on historical loss rates, current credit grades, specific allocation on loans modified in a TDR and impaired commercial credits above specified thresholds and other qualitative adjustments. Allowances on individual commercial loans, TDRs and histori cal loss rates are reviewed quarterly and adjusted as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off experience. An unallocated allowance is maintained to recognize the imprecision in estimating and m easuring losses when evaluating allowances for pools of loans. Larger commercial loans included within aggregate borrower relationship balances exceeding $ 1 million that exhibit probable or observed credit weaknesses, as well as loans that have been modified in a TDR, are subject to individual review for impairment. The Bancorp considers the current value of collateral, credit quality of any guarantees, the guarantor’s liquidity and willingness to cooperate, the loan structure and other factors when evaluating whether an individual loan is impaired. Other factors may include the industry and geographic region of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower and the Bancorp’s evaluation of the borrower’s management. When individual loans are impaired, allowances are determined based on management’s estimate of the borrower’s ability to repay the loan given the availability of collateral and other sources of c ash flow, as well as an evaluation of legal options available to the Bancorp. Allowances for impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, fair value of the underlying collateral or readily observable secondary market values. The Bancorp evaluates the collectability of both principal and interest when assessing the need for a loss accrual. Historical credit loss rates are applied to commercial loans that are not impaire d or are impaired, but smaller than the established threshold of $ 1 million and thus not subject to specific allowance allocations. The loss rates are derived from migration analyses for several portfolio stratifications, which track the historical net cha rge-off experience sustained on loans according to their internal risk grade. The risk grading system utilized for allowance analysis purposes encompasses ten categories. Homogenous loans and leases in the residential mortgage and consumer portfolio segme nts are not individually risk graded. Rather, standard credit scoring systems and delinquency monitoring are used to assess credit risks and allowances are established based on the expected net charge-offs. Loss rates are based on the trailing twelve month net charge-off history by loan category. Historical loss rates may be adjusted for certain prescriptive and qualitative factors that, in management’s judgment, are necessary to reflect losses inherent in the portfolio. The prescriptive loss rate factors i nclude adjustments for delinquency trends, LTV trends, refreshed FICO score trends and product mix . The Bancorp also considers qualitative factors in determining the ALLL. These include adjustments for changes in policies or procedures in underwriting, monitoring or collections, economic conditions, portfolio mix, lending and risk management personnel, results of internal audit and quality control reviews, collateral values and geographic concentrations. The Bancorp considers home price index trends in i ts footprint and the volatility of collateral valuation trends when determining the collateral value qualitative factor . When evaluating the adequacy of allowances, consideration is given to regional geographic concentrations and the closely associated ef fect changing economic conditions have on the Bancorp’s customers. In the current year, the Bancorp has not substantively changed any material aspect to its overall approach to determining its ALLL for any of its portfolio segments. There have been no mate rial changes in criteria or estimation techniques as compared to prior periods that impacted the determination of the current period ALLL for any of the Bancorp’s portfolio segments. Reserve for Unfunded Commitments The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in other liabilities in the Consolidated Balance Sheets. The determination of the adequacy of the reser ve is based upon an evaluation of the unfunded credit facilities, including an assessment of historical commitment utilization experience, credit risk grading and historical loss rates based on credit grade migration. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the Bancorp’s ALLL, as previously discussed. Net adjustments to the reserve for unfunded commitments are included in other noninterest expense in the Consolidated Statements o f Income. Loan Sales and Securitizations The Bancorp periodically sells loans through either securitizations or individual loan sales in accordance with its investment policies. The sold loans are removed from the Consolidated Balance S heet and a net gain or loss is recognized in the Consolidated Financial Statements at the time of sale. The Bancorp typically isolates the loans through the use of a VIE and thus is required to assess whether the entity holding the sold or securitized loans is a VIE and whet her the Bancorp is the primary beneficiary and therefore consolidator of that VIE. If the Bancorp holds the power to direct activities most significant to the economic performance of the VIE and has the obligation to absorb losses or right to receive benef its that could potentially be significant to the VIE, then the Bancorp will generally be deemed the primary beneficiary of the VIE. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such va riable interests are accounted for under the equity method of accounting or other accounting standards as appropriate. Refer to Note 10 for further information on consolidated and non-consolidated VIEs. The Bancorp’s loan sales and securitizations are g enerally structured with servicing r etained, which often results in the recording of servicing rights. The Bancorp may also purchase servicing rights. Effective January 1, 2017, the Bancorp elected to prospectively adopt the fair value method for all exist ing classes of its residential mortgage servicing rights portfolio. Upon this election, all servicing rights are measured at fair value at each reporting date and changes in the fair value of servicing rights are reported in mortgage banking net revenue in the Consolidated Statements of Income in the period in which the changes occur. The election of the fair value method did not require a cumulative effect adjustment to retained earnings as there was no difference between the carrying value of the servicin g rights, net of valuation allowance, and the fair value. Servicing rights are valued using internal OAS models. Key economic assumptions used in estimating the fair value of the servicing rights include the prepayment speeds of the underlying loans, the w eighted-average life, the OAS spread and the weighted-average coupon rate, as applicable. The primary risk of material changes to the value of the servicing rights resides in the potential volatility in the economic assumptions used, particularly the prepa yment speeds. In order to assist in the assessment of the fair value of servicing rights, the Bancorp obtains external valuations of the servicing rights portfolio from third parties and participates in peer surveys that provide additional confirmation of the reasonableness of the key assumptions utilized in the internal OAS model. Prior to the election of the fair value method, servicing rights were initially recorded at fair value and subsequently amortized in proportion to, and over the period of, estima ted net servicing revenue. Servicing rights were tested for impairment monthly, based on fair value, with temporary impairment recognized through a valuation allowance and other-than-temporary impairment recognized through a write-off of the servicing asse t and related valuation allowance. Amortization and provisions for impairment of servicing rights were recorded as a co |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 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 years ended December 31: ($ in millions) 2018 2017 2016 Cash Payments: Interest $ 1,016 699 578 Income taxes 359 1,035 800 Transfers: Portfolio loans to loans held for sale 275 255 238 Loans held for sale to portfolio loans 95 29 28 Portfolio loans to OREO 39 34 49 |
Restriction on Cash, Dividends
Restriction on Cash, Dividends and Other Capital Actions | 12 Months Ended |
Dec. 31, 2018 | |
Restriction On Cash | |
Restriction on Cash, Dividends and Other Capital Actions | 3 . RESTRICTIONS ON CASH, DIVIDENDS AND OTHER CAPITAL ACTIONS Reserve Requirement The FRB, under Regulation D, requires that banks hold cash in reserve against deposit liabilities when total reservable deposit liabilities are greater than the regulatory exemption , kn own as the reserve requirement. The reserve requirement is calculated based on a two-week average of daily net transaction account deposits as defined by the FRB and may be satisfied with average vault cash during the following two-week maintenance period . When vault cash is not suffici ent to meet the reserve requirement, the remaining amount must be satisfied with average funds held at the FRB. At both December 31, 2018 and 2017 , th e Bancorp’s banking subsidiary reserve requirement was $ 1.5 billion. Additionally, the Bancorp’s ban king subsidiary average reserve requirement was $ 1.5 b illion and $ 1. 4 billion in 2018 and 2017 , respectively. Restrictions on Cash Dividends The principal source of income and funds for the Bancorp (parent company) are dividends from its subsidiarie s. The dividends paid by the Bancorp’s banking subsidiary are subject to regulations and limitations prescribed by state and federal supervisory agencies. The Bancorp’s banking subsidiary paid the Bancorp’s nonbank subsidiary holding company , which in turn paid the Bancorp $ 1.9 billion and $ 2.3 b illion in dividends during the years ended December 31, 2018 and 2017 , respectively. The Bancorp’s nonbank-subsidiaries are also limited by certain federal and state statutory provisions and regulations coveri ng the amount of dividends that may be paid in any given year. Capital Actions In 2011 the FRB adopted the capital plan rule, which requires BHCs with consolidated assets of $ 50 billion or more to submit annual capital plans to the FRB for review. Under the rule, these capital plans must include detailed descriptions of the following: the BHC’s internal processes for assessing capital adequacy; the policies governing capital actions such as common stock issuances, dividends and share repurchases; and all planned capital actions over a nine-quarter planning horizon. Further, each BHC must also report to the FRB the results of stress tests conducted by the BHC under a number of scenarios that assess the sources and uses of capital under baseline and stressed economic scenarios. The FRB launched the 2018 stress testing program and CCAR on February 1, 2018, with submissions of stress test results and capital plans to the FRB due on April 5, 2018, which the Bancorp submitted as required. The FRB’s review of the capital plan assessed the comprehensiveness of the capital plan, the reasonableness of the assumptions and the analysis underlying the capital plan. Additionally, the FRB reviewed the robustness of the capital adequacy process, the capital policy and the B ancorp’s ability to maintain capital above each minimum regulatory capital ratio on a pro forma basis under expected and stressful conditions throughout the planning horizon. On June 28, 2018, the Bancorp announced the results of its capital plan submitte d to the FRB as part of the 2018 CCAR. For BHCs that proposed capital distributions in their plans, the FRB either objected to the plan or provided a non-objection whereby the FRB permitted the proposed capital distributions. The FRB indicated to the Banco rp that it did not object to the following capital actions for the period beginning July 1, 2018 and ending June 30, 2019: The increase in the quarterly common stock dividend to $0.22 from $0.18 beginning in the fourth quarter of 2018 and to $0.24 beginnin g in the second quarter of 2019 , a 33% increase over the then current dividend rate; The repurchase of common shares in an amount up to $ 1.651 billion, or a 42% increase over the 2017 capital plan. These repurchases include $ 81 million in repurchases related to share issuances under employee benefit plans and $ 53 million in repurchases related to previously-recognized TRA transaction after-tax gains; The additional ability to repurchase common shares in the amount of any after-t ax capital generated from the sale of Worldpay, Inc. common stock; The additional ability to repurchase common shares in the amount of any after-tax cash income generated from the termination and settlement of gross cash flows from existing TRAs with World pay, Inc. or potential future TRAs that may be generated from additional sales of Worldpay, Inc. On May 21, 2018, the Bancorp announced the planned acquisition of MB Financial , Inc . As a result of this transaction, the FRB required the Bancorp to resubmit its CCAR plan recognizing the pro forma imp act of the combined Fifth Third/ MB Financial , Inc. post-merger entity. On October 5, 2018, Fifth Third resubmitted its capital plan to the FRB. On December 27, 2018, the FRB indicated to the Bancorp that it did n ot object to the resubmitted capital plan. The resubmitted capital plan called for no change to the originally submitted total capital actions over the 2018 CCAR approval horizon (the third quarter of 2018 through the second quarter of 2019). However, the share repurchase authority increased from $1.651 billion to $ 1.81 billion as a result of after-tax gains related to the sale of Worldpay, Inc. common stock. The Bancorp recognized a gain of $ 414 million in the first quarter of 2018 when Vantiv, Inc. comple ted its previously announced acquisition of Worldpay Group plc. with the resulting combined company named Worldpay, Inc. , a ssociated with the dilution in its ownership interest in Worldpay Holding, LLC. Additionally, the Bancorp recognized a gain on the sa le of Worldpay, Inc. shares of $ 205 million during the second quarter of 2018. The Bancorp also entered into accelerated share repurchase and open market share repurchase transactions during the years ended December 31, 2018 and 2017 . For more inform ation related to these transactions, refer to Note 18 and Note 22 . In the fourth quarter of 2018, the Bancorp increased the quarterly common stock dividend to $ 0.22 . |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investment Securities | |
Investment Securities | 4 . INVESTMENT SECURITIES The following table provides the amortized cost, fair value and unrealized gains and losses for the major categories of the available-for-sale debt and other securities and held-to-maturity securities portfolios as of December 31: 2018 2017 Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair ($ in millions) Cost Gains Losses Value Cost Gains Losses Value Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 98 - (1) 97 98 - - 98 Obligations of states and political subdivisions securities 2 - - 2 43 1 - 44 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 16,403 86 (242) 16,247 15,281 118 (80) 15,319 Agency commercial mortgage-backed securities 10,770 44 (164) 10,650 10,113 92 (38) 10,167 Non-agency commercial mortgage-backed securities 3,305 9 (47) 3,267 3,247 51 (5) 3,293 Asset-backed securities and other debt securities 1,998 27 (10) 2,015 2,183 46 (11) 2,218 Other securities (b) 552 - - 552 612 - - 612 Total available-for-sale debt and other securities $ 33,128 166 (464) 32,830 31,577 308 (134) 31,751 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 16 - - 16 22 - - 22 Asset-backed securities and other debt securities 2 - - 2 2 - - 2 Total held-to-maturity securities $ 18 - - 18 24 - - 24 Includes interest-only mortgage-backed securities of $ 0 and $ 34 as of December 31, 2018 and 2017 , respectively, recorded at fair value with fair value changes recorded in securities (losses) gains, net , i n the Consolidated Statements of Income . Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 184 , $ 366 and $ 2 , respectively, at December 31, 2018 and $ 248 , $ 362 and $ 2 , respectively, at Dece mber 31, 2017 , that are carried at cost The following table provides the fair value of trading debt securities and equity securities as of December 31: ($ in millions) 2018 2017 Trading debt securities $ 287 492 Equity securities 452 439 The Bancorp uses investment securities as a means of managing interest rate risk, providing collateral for pledging purposes and for liquidity to sat isfy regulatory requirements . As part of managing interest rate risk, t he Bancorp acquires securities as a component of its MSR non-qualifying hedging strategy , with net gains or losses recorded in securities (losses) gains, net – non-qualifying hedges on MSRs in the Consolidated Statements of Income. The following table presents securities (losses) gains recognized in the Consolidated Statements of Income as of December 31: ($ in millions) 2018 2017 2016 Available-for-sale debt and other securities: Realized gains $ 72 85 72 Realized losses (82) (36) (49) OTTI - (54) (15) Net realized (losses) gains on available-for-sale debt and other securities $ (10) (5) 8 Total trading debt securities (losses) gains $ (15) 2 - Total equity securities (losses) gains (a) $ (44) 7 2 Total (losses) gains recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities (b) $ (69) 4 10 Includes $ 45 of net unrealized losses for the year ended December 31, 2018 and net unrealized gains of $ 5 and $ 3 for the years ended December 31, 2017 and 2016 , respectively. Excludes an insignificant amount of securities gains (losses) included in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income related to securities held by FTS to facilitate the timely execution of customer transactions. At December 31, 2018 and 2017 , investment securities with a fair value of $ 7.0 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 December 31, 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 $ 3 3 - - 1-5 years 10,052 10,015 16 16 5-10 years 18,394 18,197 - - Over 10 years 4,127 4,063 2 2 Other securities 552 552 - - Total $ 33,128 32,830 18 18 (a) Actual maturities may differ from contractu al maturities when a right to call or prepay obligations exists with or without call or prepayment penalties. The following table provides the fair value and gross unrealized losses on available-for-sale 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 December 31: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized ($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses 2018 U.S. Treasury and federal agencies securities $ - - 97 (1) 97 (1) Agency residential mortgage-backed securities 3,235 (21) 7,892 (221) 11,127 (242) Agency commercial mortgage-backed securities 2,022 (37) 5,260 (127) 7,282 (164) Non-agency commercial mortgage-backed securities 884 (6) 1,621 (41) 2,505 (47) Asset-backed securities and other debt securities 314 (6) 241 (4) 555 (10) Total $ 6,455 (70) 15,111 (394) 21,566 (464) 2017 U.S. Treasury and federal agencies securities $ 98 - - - 98 - Agency residential mortgage-backed securities 7,337 (59) 479 (21) 7,816 (80) Agency commercial mortgage-backed securities 2,900 (22) 526 (16) 3,426 (38) Non-agency commercial mortgage-backed securities 449 (2) 145 (3) 594 (5) Asset-backed securities and other debt securities 317 (2) 386 (9) 703 (11) Total $ 11,101 (85) 1,536 (49) 12,637 (134) At both December 31, 2018 and 2017 , an immaterial amount of unrealized losses in the available-for-sale debt and other securities portfolio were represented by non -rated securities |
Loans and Leases
Loans and Leases | 12 Months Ended |
Dec. 31, 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 pay ment terms and rate structures. The Bancorp’s commercial loan portfolio consists of lending to various industry types. Management periodically reviews the performance of its loan and lease products t o evaluate whether they are performing within acceptable interest rate and credit risk levels and changes are made to underwriting policies and procedures as needed. The Bancorp maintains an allowance to absorb loan and lease losses inherent in the portfol io. For further information on credit quality and the ALLL, refer to Note 6 . The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans classified based upon product or collateral as of December 31: ($ in millions) 2018 2017 Loans and leases held for sale: Commercial and industrial loans $ 67 - Commercial mortgage loans 3 6 Residential mortgage loans 537 486 Total loans and leases held for sale $ 607 492 Portfolio loans and leases: Commercial and industrial loans $ 44,340 41,170 Commercial mortgage loans 6,974 6,604 Commercial construction loans 4,657 4,553 Commercial leases 3,600 4,068 Total commercial loans and leases 59,571 56,395 Residential mortgage loans 15,504 15,591 Home equity 6,402 7,014 Automobile loans 8,976 9,112 Credit card 2,470 2,299 Other consumer loans 2,342 1,559 Total consumer loans 35,694 35,575 Total portfolio loans and leases $ 95,265 91,970 Total portfolio loans and leases are recorded net of unearned income, which totaled $ 479 million as of December 31, 2018 and $ 523 m illion as of December 31, 2017 . Additionally, portfolio loans and leases are recorded net of unamortized premiums and discount s, deferred direct loan origination fees and costs and fair value adjustments (associated with acquired loans or loans designated as fair value upon origination) which totaled a net premium of $ 296 million and $ 282 million as of December 31, 2018 and 2017 , r espectively . The Bancorp’s FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $ 13.1 billion and $ 13. 0 billion at December 31, 2018 and 2017 , respectively, pledged at the FHLB, and loans of $ 42.6 billion and $ 39.8 billion a t December 31, 2018 and 2017 , respectively, pledged at the FRB. The following table presents a summary of the total loans and leases owned by the Bancorp and net charge-offs (recoveries) as of and for the years ended December 31: 90 Days Past Due Net Carrying Value and Still Accruing Charge-Offs (Recoveries) ($ in millions) 2018 2017 2018 2017 2018 2017 Commercial and industrial loans $ 44,407 41,170 4 3 132 111 Commercial mortgage loans 6,977 6,610 2 - (1) 12 Commercial construction loans 4,657 4,553 - - - - Commercial leases 3,600 4,068 - - 1 2 Residential mortgage loans 16,041 16,077 38 57 7 7 Home equity 6,402 7,014 - - 12 19 Automobile loans 8,976 9,112 12 10 40 37 Credit card 2,470 2,299 37 27 101 84 Other consumer loans 2,342 1,559 - - 38 26 Total loans and leases $ 95,872 92,462 93 97 330 298 Less: Loans and leases held for sale $ 607 492 Total portfolio loans and leases $ 95,265 91,970 The Bancorp engages in commercial lease products primarily related to the financing of commercial equipment. The Bancorp had $ 3.0 billion and $ 3. 4 billion of direct financing leases , net of unearned income, at December 31, 2018 and 2017 , respectively, and $ 624 million and $ 674 million of leveraged leases , net of unearned income, at December 31, 2018 and 2017 , respectively. Pre-tax income from leveraged leases was $ 34 million and included $ 15 million of gains on early terminations during the year ended December 31, 2018 . Pre-tax loss from leveraged leases was $ 11 million during the year ended December 31, 2017 , which included a remeasurement of $ 27 million related to the tax treatment of leveraged leases resulting from the impact of the TCJA during the yea r ended December 31, 2017 . Excluding the impact of the remeasurement, pre-tax income from leveraged leases was $ 16 million during the year ended December 31, 2017 . The tax effect of this income was an expense of $ 8 million and $ 6 million during the y ears ended December 31, 2018 and 2017 , respectively. The following table provides the components of the commercial lease financing portfolio as of December 31: ($ in millions) 2018 2017 Rentals receivable, net of principal and interest on nonrecourse debt $ 3,256 3,684 Estimated residual value of leased assets 804 885 Initial direct cost, net of amortization 19 22 Gross investment in commercial lease financing 4,079 4,591 Unearned income (479) (523) Net investment in commercial lease financing (a) $ 3,600 4,068 The accumulated allowance for uncollectible minimum lease payments wa s $ 18 and $ 14 at December 31, 2018 and 2017 , respectively. The Bancorp periodically reviews residual values associated with its leasing portfolio. Declines in residual values that are deemed to be other-than-temporary are recognized as a loss. The Bancorp recognized $ 4 million of residual value write-downs related to commercial leases for both the year s ended December 31, 2018 and 2017 . The residual value write-downs related to commercial leases are recorded in corporate banking revenue in the Consolidated Statements of Income. At December 31, 2018 , the future minimum lease payments recei vable for each of the years 2019 through 2023 was $ 815 million, $ 666 million, $ 528 million, $ 430 million and $ 350 million, respectively. |
Credit Quality and the Allowanc
Credit Quality and the Allowance for Loan and Lease Losses | 12 Months Ended |
Dec. 31, 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 ALLO WANCE FOR LOAN AND LEASE LOSSES The Bancorp disaggregates ALLL balances and transactions in the ALLL by portfolio segment. Credit quality related disclosures for loans and leases are further disaggregated by class . Allowance for Loan and Lease Losses The following tables summarize transactions in the ALLL by portfolio segment for the years ended December 31: Residential 2018 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 753 89 234 120 1,196 Losses charged-off (a) (157) (13) (280) - (450) Recoveries of losses previously charged-off (a) 25 6 89 - 120 Provision for (benefit from) loan and lease losses 24 (1) 224 (10) 237 Balance, end of period $ 645 81 267 110 1,103 (a) For the year ended December 31, 2018 , the Bancorp recorded $29 in both losses charged-off and recoveries of losses charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. Residential 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 831 96 214 112 1,253 Losses charged-off (154) (15) (212) - (381) Recoveries of losses previously charged-off 29 8 46 - 83 Provision for loan and lease losses 66 - 186 9 261 Deconsolidation of a VIE (a) (19) - - (1) (20) Balance, end of period $ 753 89 234 120 1,196 (a) Refer to Note 10 for further discussion on the deconsolidation of a VIE. Residential 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 840 100 217 115 1,272 Losses charged-off (232) (19) (205) - (456) Recoveries of losses previously charged-off 42 9 43 - 94 Provision for (benefit from) loan and lease losses 181 6 159 (3) 343 Balance, end of period $ 831 96 214 112 1,253 The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: Residential As of December 31, 2018 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 42 a 61 38 - 141 Collectively evaluated for impairment 603 20 229 - 852 Unallocated - - - 110 110 Total ALLL $ 645 81 267 110 1,103 Portfolio loans and leases: (b) Individually evaluated for impairment $ 277 a 736 278 - 1,291 Collectively evaluated for impairment 59,294 14,589 19,912 - 93,795 Total portfolio loans and leases $ 59,571 15,325 20,190 - 95,086 Includes $ 1 related to leveraged leases at December 31, 2018 . Excludes $ 179 of residential mortgage loans measured at fair value and includes $ 624 of leveraged leases, net of unearned income, at December 31, 2018 . Residential As of December 31, 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 94 a 64 42 - 200 Collectively evaluated for impairment 659 25 192 - 876 Unallocated - - - 120 120 Total ALLL $ 753 89 234 120 1,196 Portfolio loans and leases: (b) Individually evaluated for impairment $ 560 a 665 320 - 1,545 Collectively evaluated for impairment 55,835 14,787 19,664 - 90,286 Loans acquired with deteriorated credit quality - 2 - - 2 Total portfolio loans and leases $ 56,395 15,454 19,984 - 91,833 Includes $ 1 related to leveraged leases at December 31, 2017 . Excludes $ 137 of residential mortgage loans measured at fair value and includes $ 674 of leveraged leases, net of unearned income at December 31, 2017 . C REDIT RISK PROFILE Commercial Portfolio Segment For purposes of analyzing historical loss rates used in the determination of the ALLL and monitoring the credit quality and risk characteristics of its commercial portfolio segment, the Bancorp disaggregates the segment into the following classes: commercial and industrial, commercial mortgage owner- occupied, commercial mortgage non owner- occupied, commerc ial construction and commercial leas es . To facilitate the monitoring of credit quality within the commercial portfolio segment, and for purposes of analyzing historical loss rates used in the determination of the ALLL for the commercial portfolio segment, the Bancorp utilizes the following categories of credit grades: pass, special mention, substandard, doubtful and loss. The five categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borr owers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers that do not ha ve identified potential or well- defined weaknesses and for which there is a high likelihood of orderly repayment, are updated at least annually ba sed on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter. The Bancorp assigns a special mention rating to loans and leases that have potent ial weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or lease or the Bancorp’s credit position. The Bancorp assigns a substandard rating to loans and leases that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. 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 Bancorp assigns a doubtf ul rating to loans and leases that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionab le and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estima ted loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. Loans and leases cl assified as loss are considere d uncollectible and are charged- off in the period in which they are determined to be uncollectible. Because loans and leases in this category are ful ly charged-off , they are not included in the following tables. The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class: Special As of December 31, 2018 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 42,695 779 853 13 44,340 Commercial mortgage owner-occupied loans 3,122 23 139 - 3,284 Commercial mortgage nonowner-occupied loans 3,632 27 31 - 3,690 Commercial construction loans 4,657 - - - 4,657 Commercial leases 3,475 72 53 - 3,600 Total commercial loans and leases $ 57,581 901 1,076 13 59,571 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 Segments For purposes of monitoring the credit quality and risk characteristics of its consumer portfolio segment, the Bancorp disaggregates the segment into the following classes: home equity, automobile loans, credit card and other consumer loans . 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 inc ludes both the delinquency status and performing versus nonperforming status of the loans. The delinquency status of all residential mortgage and consumer loans is presented by class in the age analysis section while the performing versus nonperforming sta tus is presented in the following table . Refer to the nonaccrual loans and leases section of Note 1 for additional delinquenc y and nonperforming information . The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of December 31: 2018 2017 ($ in millions) Performing Nonperforming Performing Nonperforming Residential mortgage loans (a) $ 15,303 22 15,424 30 Home equity 6,332 70 6,940 74 Automobile loans 8,975 1 9,111 1 Credit card 2,444 26 2,273 26 Other consumer loans 2,341 1 1,559 - Total residential mortgage and consumer loans (a) $ 35,395 120 35,307 131 (a) Excludes $ 179 and $ 137 of residential mortgage loans measured at fair value at December 31, 2018 and 2017 , respectively . Age Analysis of Past Due Loans and Leases The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases, by age and class: Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2018 ($ in millions) Leases (b)(c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 44,213 32 95 127 44,340 4 Commercial mortgage owner-occupied loans 3,277 1 6 7 3,284 2 Commercial mortgage nonowner-occupied loans 3,688 1 1 2 3,690 - Commercial construction loans 4,657 - - - 4,657 - Commercial leases 3,597 1 2 3 3,600 - Residential mortgage loans (a) 15,227 37 61 98 15,325 38 Consumer loans: Home equity 6,280 71 51 122 6,402 - Automobile loans 8,844 119 13 132 8,976 12 Credit card 2,381 47 42 89 2,470 37 Other consumer loans 2,323 17 2 19 2,342 - Total portfolio loans and leases (a) $ 94,487 326 273 599 95,086 93 Excludes $ 179 of residential mortgage loans measured at fair value at December 31, 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. As of December 31, 2018 , $ 90 of these loans were 30-89 days past due and $ 195 w ere 90 days or more past due. The Bancorp recognized $ 5 o f losses during the year ended December 31, 2018 due to claim denials and curtailments as sociated 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 (a) $ 91,195 333 305 638 91,833 97 Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA . As of December 31, 2017 , $ 95 of these loans were 30-89 days past due and $ 290 were 90 days or more past due. The Bancorp recognized $ 5 of losses during the year ended December 31, 2017 due to claim denials and curtailments a ssociated with these insured or guaranteed loans . Includes accrual and nonaccrual loans and leases . Impaired Portfolio Loans and Leases Larger commercial loans and leases included within aggregate borrower relationship balances exceeding $ 1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp also performs an individual review on loans and leases that are restructured in a TDR . The Bancorp considers the current value of collateral, credit quality of any guarantees, the loan structure and other factors when evaluating whether an individu al loan or lease is impaired. Other factors may include the geography and industry of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower and the Bancorp’s evaluation of the borrower’s management. Smaller- bala nce homogenous loans or leases that are collectively evaluated for impairment are not included in the following tables. The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR as of December 31: Unpaid Principal Recorded 2018 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 156 107 34 Commercial mortgage owner-occupied loans 2 2 1 Commercial mortgage nonowner-occupied loans 2 1 - Commercial leases 23 22 7 Restructured residential mortgage loans 465 462 61 Restructured consumer loans: Home equity 146 145 22 Automobile loans 5 4 1 Credit card 47 44 15 Total impaired portfolio loans and leases with a related ALLL $ 846 787 141 With no related ALLL: Commercial loans: Commercial and industrial loans $ 137 125 - Commercial mortgage owner-occupied loans 9 9 - Commercial mortgage nonowner-occupied loans 11 11 - Restructured residential mortgage loans 292 274 - Restructured consumer loans: Home equity 85 83 - Automobile loans 2 2 - Total impaired portfolio loans with no related ALLL $ 536 504 - Total impaired portfolio loans and leases $ 1,382 1,291 (a) 141 Includes $ 60 , $ 724 and $ 237 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 147 , $ 12 and $ 41 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2018 . Unpaid Principal Recorded 2017 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 433 358 87 Commercial mortgage owner-occupied loans 16 14 7 Commercial mortgage nonowner-occupied loans 4 3 - Commercial leases 4 4 - Restructured residential mortgage loans 469 465 64 Restructured consumer loans: Home equity 172 172 27 Automobile loans 8 7 1 Credit card 52 45 14 Total impaired portfolio loans and leases with a related ALLL $ 1,158 1,068 200 With no related ALLL: Commercial loans and leases: 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 and leases 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 TDRs on accrual status and $ 150 , $ 13 and $ 45 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2017 The following table summarizes the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the years ended December 31: 2018 2017 2016 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 373 15 579 10 691 10 Commercial mortgage owner-occupied loans (a) 15 - 35 - 63 1 Commercial mortgage nonowner-occupied loans 24 - 61 1 139 5 Commercial construction loans - - - - 3 - Commercial leases 18 - 3 - 5 - Restructured residential mortgage loans 743 28 657 25 647 25 Restructured consumer loans: Home equity 244 12 281 12 325 12 Automobile loans 8 - 11 - 17 - Credit card 44 5 50 4 56 5 Total average impaired portfolio loans and leases $ 1,469 60 1,677 52 1,946 58 Excludes five restructured loans associated with a consolid ated VIE in which the Bancorp had no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 13 and $ 26 for t he years ended December 31, 2017 and 2016, respectively. An immaterial amount of interest income was recognized during both t he years ended December 31, 2017 and 2016. Refer to Note 10 for further discus sion on the deconsolidation of the VIE associated with these loans in the third qu arter of 2017. Nonperforming Asset s 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 r epossessed property. The following table presents the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of December 31: ($ in millions) 2018 2017 Commercial loans and leases: Commercial and industrial loans $ 193 276 Commercial mortgage owner-occupied loans 11 19 Commercial mortgage nonowner-occupied loans 2 7 Commercial leases 22 4 Total nonaccrual portfolio commercial loans and leases 228 306 Residential mortgage loans 22 30 Consumer loans: Home equity 69 74 Automobile loans 1 1 Credit card 27 26 Other consumer loans 1 - Total nonaccrual portfolio consumer loans 98 101 Total nonaccrual portfolio loans and leases (a)(b) $ 348 437 OREO and other repossessed property 47 52 Total nonperforming portfolio assets (a)(b) $ 395 489 Excludes $ 16 and $ 6 of nonaccrual loans and leases held for sale at December 31, 2018 and 2017 , respectively. Includes $ 6 and $ 3 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at December 31, 2018 and 2017 , respectively, of which $ 2 and $ 3 are restructured nonaccrual government insured commercial loans at December 31, 2018 and 2017 , respectively . The Bancorp’s recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction was $ 15 3 million and $ 235 million as of December 31, 2018 and 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 collection of amount s due . Within each of the Bancorp’s loan classes, TDRs typically involve either a reduction of the stated interest rate of the loan, an extension o f the loan’s maturity date with a stated rate lower than the current market rate for a new loan with similar risk, or in limited circumstances, a reduction of the principal balance of the loan or the loan’s accrued interest. Modifying the terms of a loan may result in an increase or decrease to the ALLL depending upon the terms modified, the method used to measur e the ALLL for a loan prior to modification, and whether any charge-offs were recorded on the loan before o r at the time of modification. Ref er to the ALLL section of Note 1 for information on the Bancorp’s ALLL methodology. Upon modification of a loa n , the Bancorp measures the related imp airment as the difference between the estimated future cash fl ows expected to be collected on the modified loan, discounted at the original effective yield of the loan , and the carrying value of the loan. The resulting measurement may result in the need for minimal or no allowance because it is probable that all cash flows will be collected under the modified terms of the loan. In addition, if the stated interest rate wa s increased in a TDR, the cash flows on the modified loan, using the pre- modification interest rate as the discount rate, often exceed the recorded investment of the loan. Conversely, upon a modification that reduces the stated interest rate on a loan, the Bancorp recognizes an impairment loss as an increase to the ALLL . If a TDR involves a reduction of the principal balance of the loan or the loan’s accrued i nterest, that amount is charged- off to the ALLL. The Bancorp had commitments to lend additional fun ds to borrowers whose terms have been modified in a TDR, consisting of line of credit and letter of credit commitments of $ 24 million and $ 67 million, respectively, as of December 31, 2018 compared with $ 53 million and $ 78 million, respectively, as of D ecember 31, 2017 . The following tables provide a summary of loans and leases, by class, modified in a TDR by the Bancorp during the years ended December 31: Recorded Investment Increase Number of Loans in Loans Modified (Decrease) Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon 2018 ($ in millions) (a) During the Year (b) During the Year Modification Modification Commercial loans and leases: Commercial and industrial loans 54 $ 200 1 7 Commercial mortgage owner-occupied loans 6 3 (1) - Commercial mortgage nonowner-occupied loans 3 - - - Residential mortgage loans 1,128 168 4 - Consumer loans: Home equity 111 7 - - Automobile loans 84 - - - Credit card 7,483 37 9 2 Total portfolio loans and leases 8,869 $ 415 13 9 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded Investment Increase (Decrease) Number of Loans in Loans Modified Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon 2017 ($ in millions) (a) During the Year (b) During the Year Modification Modification Commercial loans and leases: Commercial and industrial loans 75 $ 237 (5) 6 Commercial mortgage owner-occupied loans 9 8 5 - Commercial mortgage nonowner-occupied loans 4 - - - Commercial leases 1 4 - - Residential mortgage loans 830 116 5 - Consumer loans: Home equity 150 10 - - Automobile loans 102 - - - Credit card 8,085 38 8 1 Total portfolio loans and leases 9,256 $ 413 13 7 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded Investment Number of Loans in Loans Modified Increase Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon 2016 ($ in millions) (a) During the Year (b) During the Year Modification Modification Commercial loans and leases: Commercial and industrial loans 74 $ 183 14 - Commercial mortgage owner-occupied loans 12 11 - - Commercial mortgage nonowner-occupied loans 4 5 2 - Commercial leases 5 16 - - Residential mortgage loans 924 137 8 - Consumer loans: Home equity 219 15 - - Automobile loans 221 3 - - Credit card 9,519 43 8 4 Total portfolio loans and leases 10,978 $ 413 32 4 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. Represents number of loans post-modification and excludes loans previously modified in a TDR. The Bancorp considers TDRs that become 90 days or more past due under the modified terms as subsequently defaulted. For commercial loans not subject to individual review for impairment, loss rates that are applied for purposes of determining the ALLL include historical losses associated with subsequent defaults on loans previously modified in a TDR. For consumer loans, the Bancorp performs a qualitative assessment of the adequacy of the consumer ALLL by comparing the consumer ALLL to forecasted consum er losses over the projected loss emergence period (the forecasted losses include the impact of subsequent defaults of consumer TDRs). When a residential mortgage, home equity, auto mobile or other consumer loan that has been modified in a TDR subsequently defaults, the present value of expected cash flows used in the measurement of the potential impairment loss is generally limited to the expected net proceeds from the sale of the loan’s underlying collateral and any resulting impairment loss is reflected a s a charge-off or an increase in ALLL. The Bancorp recognizes ALLL for the entire balance of the credit card loans modified in a TDR that subsequently default . The following tables provide a summary of TDRs that subsequently defaulted during the years ended December 31, 2018, 2017 and 2016 and were within twelve months of the restructuring date: Number of Recorded December 31, 2018 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 8 $ 61 Commercial mortgage owner-occupied loans 2 - Residential mortgage loans 225 35 Consumer loans: Home equity 10 - Credit card 655 4 Total portfolio loans and leases 900 $ 100 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. Number of Recorded December 31, 2017 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 7 $ 17 Commercial mortgage owner-occupied loans 4 1 Residential mortgage loans 172 24 Consumer loans: Home equity 16 2 Credit card 1,633 8 Total portfolio loans and leases 1,832 $ 52 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. Number of Recorded December 31, 2016 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 8 $ 5 Commercial mortgage owner-occupied loans 2 - Commercial leases 2 1 Residential mortgage loans 172 25 Consumer loans: Home equity 17 1 Automobile loans 2 - Credit card 1,715 7 Total portfolio loans and leases 1,918 $ 39 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. |
Bank Premises and Equipment
Bank Premises and Equipment | 12 Months Ended |
Dec. 31, 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 December 31: ($ in millions) Estimated Useful Life 2018 2017 Land and improvements (a) $ 586 644 Buildings (a) 2 - 30 yrs. 1,547 1,679 Equipment 2 - 20 yrs. 1,987 1,876 Leasehold improvements 1 - 30 yrs. 403 399 Construction in progress (a) 81 93 Bank premises and equipment held for sale: Land and improvements 25 17 Buildings 14 9 Equipment 3 1 Accumulated depreciation and amortization (2,785) (2,715) Total bank premises and equipment $ 1,861 2,003 (a) At December 31, 2018 and 2017 , land and improvements, buildings and construction in progress included $55 and $91, respectively, associated with parcels of undeveloped land intended for future branch expansion. Depreciation and amortization expense related to bank premises and equipment was $ 23 8 million, $ 2 34 million and $ 2 42 million for the years ended December 31, 2018 , 2017 and 2016 , respectively . The Bancorp monitors changing customer preferences associated with the channels it uses for banking transacti ons to evaluate the efficiency, competitiveness and quality of the customer service experience in its consumer distribution network. As part of this ongoing assessment, the Bancorp may determine tha t it is no longer fully committed to maintaining full-service branches at certain of its existing banking center locations. Similarly, the Bancorp may also determine that it is no longer fully committed to building banking centers on certain parcels of lan d which had previously been held for future branch expansion. During the second quarter of 2018, the Bancorp adopted a plan to close approximately 100 to 125 branches over the next three years (the “2018 Branch Optimization Plan”). As of December 31 , 2018, the Bancorp closed 31 branches under the 2018 Branch Optimization Plan . The Bancorp expects to identify the remaining branches to be closed under the 2018 Branch Optimization Plan prior to December 31, 2019. As part of the adoption of the 2018 Branch Opti mization Plan, the Bancorp has also elected to sell 21 parcels of land which had previously been held for future branch expansion. The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicat e that their carrying values may not be recoverable . Impairment losses associated with such assessments and lower of cost or market adjustments were $ 45 million , $ 7 million and $ 32 million for the years ended December 31, 2018 , 2017 and 2016 , res pectively. The recognized impairment losses were recorded in other noninterest income in the Consolidated Statements of Income. Gross occupancy expense for cancelable and noncancelable leases, which is included in net occupancy expense in the Consolidated Statements of Income , was $ 1 01 million , $ 101 million and $ 100 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, and was reduced by rental income from leased premises of $ 1 2 million , $ 13 million and $ 16 million during the years ended December 31, 2018 , 2017 and 2016 , respectively. The Bancorp’s subsidiaries have entered into a number of noncancelabl e operating lease and capital lease agreements with respect to bank premises and equipment. The following table provides the annual future minimum payments under noncancelable operating leases and capital leases for the years ending December 31: ($ in millions) Noncancelable Operating Leases Capital Leases 2019 $ 86 6 2020 80 5 2021 67 4 2022 60 4 2023 54 - Thereafter 256 1 Total minimum lease payments $ 603 20 Less: Amounts representing interest - 2 Present value of net minimum lease payments $ - 18 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill | |
Goodwill | 8 . GOODWILL Business combinations entered into by the Bancorp typically result in the recognition of goodwill. Acquisition activity includes acquis itions in the respective period in addition to purchase accounting adjustments related to previous acquisitions . The Bancorp completed its most recent annual goodwill impairment test as of September 30, 2018 by performing a qualitative assessment of goodwill at the reporting unit level to determine whether any indicators of impairment existed. In performing this qualitative asses sment, the Bancorp evaluated events and circumstances since the last impairment analysis, macroeconomic conditions, banking industry and market conditions and key financial metrics of the Bancorp as well as reporting unit and overall Bancorp financial perf ormance. After assessing the totality of the events and circumstances, the Bancorp determined that it was not more likely than not that the fair values of the Commercial Banking, Branch Banking and Wealth and Asset Management reporting units were less than their respective carrying amounts and, therefore, the first and second steps of the quantitative goodwill impairment test were deemed unnecessary . Changes in the net carrying amount of goodwill, by reporting unit, for the years ended December 31, 2018 and 2017 were as follows: Commercial Branch Consumer Wealth and Asset ($ in millions) Banking Banking Lending Management Total Goodwill $ 1,363 1,655 215 148 3,381 Accumulated impairment losses (750) - (215) - (965) Net carrying amount as of December 31, 2016 $ 613 1,655 - 148 2,416 Acquisition activity - - - 29 29 Net carrying amount as of December 31, 2017 $ 613 1,655 - 177 2,445 Acquisition activity 17 - - 16 33 Net carrying amount as of December 31, 2018 $ 630 1,655 - 193 2,478 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets | |
Intangible Assets | 9 . INTANGIBLE ASSETS Intangible assets consist of core deposit in tangibles, customer relationships, non- compete agreements , trade names and rent intangibles. Intangible assets are amortized on either a straight-line or an accelerated basis o ver their estimated useful lives. The increase in gross carr ying amount of intangible assets from the year ended December 31, 2017 reflects acquisition activity during 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 December 31, 2018 Core deposit intangibles $ 34 (30) 4 Customer relationships 32 (3) 29 Non-compete agreements 14 (11) 3 Other 7 (3) 4 Total intangible assets $ 87 (47) 40 As of December 31, 2017 Core deposit intangibles $ 34 (29) 5 Customer relationships 16 - 16 Non-compete agreements 13 (10) 3 Other 6 (3) 3 Total intangible assets $ 69 (42) 27 As of December 31, 2018 , all of the Bancorp’s intangible assets were being amortized. Amortization expense recognized on intangible assets was $ 5 million for the year ended December 31, 2018 and $ 2 million for both the years ended December 31, 2017 and 2016 . The Bancorp’s projections of amortization expense shown in the following table are based on existing asset balances as of December 31, 2018 . Future amortization expense may vary from these projections . Estimated amortization expense for the years ending December 31, 2019 through 2023 is as follows: ($ in millions) Total 2019 $ 6 2020 4 2021 4 2022 3 2023 3 |
VIE
VIE | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities | |
Variable Interest Entities | 10 . VARIABLE INTEREST ENTITIES The Bancorp, in the normal course of business, engages in a variety of activities that involve VIEs, which are legal entities that lack sufficient equ ity at risk to finance their activities without additional subordinated financial support or the equity investors of the entities as a group lack any of the characteri stics of a controlling interest . The Bancorp evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Bancorp is the primary beneficiary and should consolidate the entity based on the variable interests it held both at inception and when there is a change in circumstances that require s a reconsideration. If the Bancorp is determined to be the primary beneficiary of a VI E, it must account for the VIE as a consolidated subsidiary. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for under the equity method of accountin g or other accou nting standards as appropriate. Consolidated VIEs The following tables provide a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Consolidated Balance Sheets as of: Automobile Loan CDC December 31, 2018 ($ in millions) Securitizations Investments Total Assets: Other short-term investments $ 40 - 40 Commercial mortgage loans - - - Automobile loans 668 - 668 ALLL (4) - (4) Other assets 5 - 5 Total assets $ 709 - 709 Liabilities: Other liabilities $ 1 - 1 Long-term debt 606 - 606 Total liabilities $ 607 - 607 Noncontrolling interests $ - - - 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 l oan s ecuritization s In a securitization transaction that occurred in September of 2017, the Bancorp transferred an aggregate amount of $ 1.1 billion in consumer automobile loans to a bankruptcy remote trust which was deemed to be a VIE. This trust then subsequently issued approximately $ 1.0 billion of asset-backed notes, of which approximately $ 261 million were retained by the Bancorp. Refer to Note 15 for further information. Additionally, in prior years the Bancorp completed securitizatio n transactions in which the Bancorp transferred certain consumer automobile loans to bankruptcy remote trusts which were also deemed to be VIEs. The primary purposes of the VIEs were to issue asset-backed securities with varying levels of credit subordinat ion and payment priority, as well as residual interests, and to provide the Bancorp with access to liquidity for its originated loans. The Bancorp retained residual interests in the VIEs and, therefore, has an obligation to absorb losses and a right to rec eive benefits from the VIEs that could potentially be significant to the VIEs. In addition, the Bancorp retained servicing rights for the underlying loans and, therefore, holds the power to direct the activities of the VIEs that most significantly impact t he economic performance of the VIEs. As a result, the Bancorp concluded that it is the primary beneficiary of the VIEs and has consolidated these VIEs. The assets of the VIEs are restricted to the settlement of the asset-backed securities and other obligat ions of the VIEs. Third-party holders of the notes do not have recourse to the general assets of the Bancorp. T he economic performance of the VIE s is most significantly impacted by the performance of the underlying loans. The principal risks to which th e VIE s are exposed include credit risk and prepayment risk. The credit and prepayment risks are managed through credit enhancements in the form of reserve accounts, overcollateralization, excess interest on the loans and the subordination of certain classe s of asset-backed securities to other classes. CDC i nvestment s CDC, a wholly- owned indirect subsidiary of the Bancorp, was created to invest in projects to create affordable housing, revitalize business and residential areas and preserve historic landmarks. CDC generally co-invests with other unrelated companies and/or individuals and typically makes investments in a separate legal entity that owns the property under development. The entities are usually formed a s limited par tnerships and LLCs and CDC typically invests as a limited partner/investor member in the form of equity contributions. The economic performance of the VIEs is driven by the performance of their underlying investment projects as well as the VIEs’ ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. The Bancorp’s subsidiaries serve as the managing member of certain LLCs invested in business revitalization projects and h ave the right to make decisions that most significantly impact the economic performance of the LLCs. Additionally, the investor members do not have substantive kick-out rights or substantive participating rights over the managing member. The Bancorp has pr ovided an indemnification guarante e to the investor member of these LLC s related to the qualification of tax credits generated by the investor members’ investment. Accordingly, the Bancorp concluded that it is the primary beneficiary and, therefore, has co nsolidated these VIE s . As a result, the investor members’ interests in these VIE s are presented as noncontrolling interest s in the Consolidated Financial Statements. This presentation includes reporting separately the equity attributable to the noncontroll ing interest s in the Consolidated Balance Sheets and Consolidated Statements of Changes in Equity and reporting separately the comprehensive income attributable to the noncontrolling interests in the Consolidated Statements of Comprehensive Income and the net income attributable to the noncontrolling interest s in the Con solidated Statements of Income. During the fourth quarter of 2018, the Bancorp’s indemnification guarantee for one of the CDC investments for which a Bancorp subsidiary served as the managin g member expired and the Bancorp transferred its remaining ownership interest in the VIE to the investor member thus removing the Bancorp from future operations of the VIE. As a result, the Bancorp deconsolidated the VIE during the fourth quarter of 2018 r esulting in a decrease of $ 20 million in commercial mortgage loans and a decrease of $ 19 million in indemnification guarantee exposure. During the third quarter of 2017, the Bancorp’s indemnification guarantee for one of the CDC investments for which a Ba ncorp subsidiary served as the managing member expired and the Bancorp transferred its remaining ownership interest in the VIE to the investor member thus removing the Bancorp from future operat ions of the VIE. As a result, the Bancorp deconsolidated the V IE during the third quarter of 2017. Non-consolidated VIEs The following tables provide a summary of assets and liabilities carried on the Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of: Total Total Maximum December 31, 2018 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,198 376 1,198 Private equity investments 41 - 73 Loans provided to VIEs 2,331 - 3,617 Total Total Maximum December 31, 2017 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,264 355 1,264 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. For information regarding the Bancorp’s acc ounting for these investments, r efer t o Note 1 . During the fourth quarter of 2017, the Bancorp recognized $ 57 million, as adjusted, of impairment on certain affordable housing investments primarily due to the change in the federal statutory corporate tax r ate pursuant to the TCJA. This impairment charge was recorded in applicable income tax expense in the Consolidated Statements of Income and reflects the impact of the change in accounting policy for qualifying LIHTC investments . Refer to Note 1 for further inf ormation and refer to Note 26 for further information on the impairment charge . 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 t o 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 Consolidated Balance Sheets, and the liabilities related to the unfunded commitments, which are included in other liabilities in the Consolidated Balance Sheets, are included in the previous tables for all periods presented. The Bancorp has no other liquidity arrangements or obligati ons to purchase assets of the VIEs that would expose the Bancorp to a loss. In certain arrangements, the general partner/managing member of the VIE has guaranteed a level of projected tax credits to be received by the limited partners/investor members, the reby minimizing a portion of the Bancorp’s risk. At both December 31, 2018 and 2017 , the Bancorp’s CDC investments included $ 1. 1 billion of investments in affordable housing tax credits recognized in other assets in the Consolidated Balance Sheets. The unfunded commitments related to these investments were $ 3 74 million and $ 355 million at December 31, 2018 and 2017 , respectively. The unfunded commitments as of December 31, 2018 are expected to be funded from 2019 to 2034. The Bancorp has accounted for all of its qualifying LIHTC investments using the proportional amortization method of accounting. The following table summarizes the impact to the Consolidated Statements of Income relating to investments in qualified affordable housing investments: Consolidated Statements of For the years ended December 31 ($ in millions) Income Caption (a) 2018 2017 2016 Proportional amortization Applicable income tax expense $ 154 223 153 Tax credits and other benefits Applicable income tax expense (192) (220) (210) (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or othe r circumstances during the years ended December 31, 2018 , 2017 and 2016. The Bancorp recognized $57, as adjusted, of impairment losses primarily due to the change in the federal statutory corporate tax rate during the year ended December 31, 2017. Private e quity i nvestments The Bancorp , through Fifth Third Capital Holdings, a wholly-owned indirect subsidiary of the Bancorp, invests as a limited partner in private equity investments which provide the Bancorp an opportunity to obtain higher rates of return on invested capital, while also creating cross-selling opportunities for the Bancorp’s commercial products. Each of the limited partnerships has an unrelated third-party general par tner responsible for appointing the fund manager. The Bancorp has not been appointed fund manager for any of these private equity investments . The funds finance primarily all of their activities from the partners’ capital contributions and investment retur ns. T he Bancorp has determined that it is not the primary beneficiary of the funds because it does not have the obligation to absorb the funds’ expected losses or the right to receive the funds’ expected residual returns that could potentially be significa nt to the funds and lacks the power to direct the activities that most significantly impact the economic performance of the funds . The Bancorp, as a limited partner, does not have substantive participating or substantive kick-out rights over the general pa rtner. Therefore, the Bancorp accounts for its investments in these limited partnerships under the equity method of accounting. The Bancorp is exposed to losses arising from the negative performance of the underlying inv estments in the private equity inves tments . As a limited partner, the Bancorp’s maximum exposure to loss is limited to the carrying amounts of the investments plus unfunded commitments. The carrying amounts of these investments, which are included in other assets in the Consolidated Balance Sheets, are presented in previous tables. Also, a t December 31, 2018 and 2017 , the Bancorp’s unfunded commitment amounts to the private equity funds were $ 32 million and $ 48 million, respectively. As part of previous commitments, t he Bancorp made capital contributions to private equity investments of $ 7 million and $ 11 million during the years ended December 31, 2018 and 2017 , respe ctively. The Bancorp recognized $ 8 million, $ 1 million and $ 9 million of OTTI primarily associated with certain nonconforming investments affected by the Volcker Rule during the year s ended December 31, 2018 , 2017 and 2016 , respectively. Additionally, the Bancorp recognized a gain of $ 11 million on the sales of certain private equity funds during the year ended December 31, 2017 . Refer to Note 26 for further information. Loans p rovided to VIEs The Bancorp has provided funding to certain unconsolidated VIEs sponsored by third parties. These VIEs are generally established to finance certain consumer and small business loans originated by third parties. The entities are primarily funded through the issuance of a loan from the Bancorp or a syndication through which the Bancorp is involved. The sponsor/administrator of the entities is responsible for ser vicing 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 significantly impact the economic performance of the entity and, therefore, is not the primary beneficiary. The principal risk to which these entities are exposed is credit risk related to the underlying assets. The Bancorp’s maximum exposure to loss is equal to the carrying amounts of the loans and unfunded commitments to the VIEs. The Bancorp’s o utstanding loans to these VIEs are included in commercial loans in Note 5 . As of December 31, 2018 and 2017 , the Bancorp’s unfunded commitments to these entities were $ 1.3 b illion and $ 1.1 b illion, respectively . The loans and unfunded commitments to these VIEs are included in the Bancorp’s overall analysis of the ALLL and reserve for unfunded commitments, respe ctively. The Bancorp does not provide any implicit or explicit liquidity guarantees or principal value guarantees to these VIEs. |
Sales of Receivables and Servic
Sales of Receivables and Servicing Rights | 12 Months Ended |
Dec. 31, 2018 | |
Sales of Receivables and Servicing Rights | |
Sales of Receivables and Servicing Rights | 11 . SALES OF RECEIVABLES AND SERVICING RIGHTS R esidential Mortgage Loan Sales The Ba ncorp sold fixed and adjustable- rate residential mortgag e loans during the years ended December 31, 2018 , 2017 and 2016 . 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 receives servicing fees based on a percentage of the outstanding b alance. The Bancorp identifies classes of servicing assets based on financial asset type and interest rates. Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Consolidated Statements of Income, for the years ended December 31 is as follows: ($ in millions) 2018 2017 2016 Residential mortgage loan sales (a) $ 5,078 6,369 6,927 Origination fees and gains on loan sales 100 138 186 Gross mortgage servicing fees 216 206 199 Represents the unpaid principal balance at the time of the sale . Servicing Righ ts The Bancorp measures all of its servicing rights at fair value with changes in fair value reported in mortgage banking net revenue in the Consolidated Statements of Income. The following table presents changes in the servicing rights related to residential mortgage loans for the years ended December 31: ($ in millions) 2018 2017 Balance, beginning of period $ 858 744 Servicing rights originated - residential mortgage loans 81 127 Servicing rights acquired - residential mortgage loans 82 109 Changes in fair value: Due to changes in inputs or assumptions (a) 42 (1) Other changes in fair value (b) (125) (121) Balance, end of period $ 938 858 Primarily reflects changes in prepayment speed and OAS spread assumptions which are updated based on market interest rates. Primarily reflects changes due to collection of contractual cash flows and the passage of time. The Bancorp maintains a non-qualifying hedging strategy to manage a portion of the risk associated with changes in the value of th e MSR portfolio. This strategy may include the purchase of free-standing derivatives and various available-for-sale and trading secu rities. The interest income, mark-to-market adjustments and gain or loss from sale activities associated with these portfolios are expected to economically hedge a portion of the change in value of the MSR portfolio caused by fluctuating OA S spreads , earnings rates and prepayment speeds. The fair value of the servicing asset is based on the p resent value of expected future cash flows. The following table presents activity related to valuations of the MSR portfolio and the impact of the non-qualifying hedging strategy for the years ended December 31: ($ in millions) 2018 2017 2016 Securities (losses) gains, net - non-qualifying hedges on MSRs $ (15) 2 - Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) (21) 2 24 MSR fair value adjustment due to changes in inputs or assumptions (a) 42 (1) - Recovery of MSR impairment (a) - - 7 Included in mortgage banking net reven ue in the Consolidated Statements of Income. The key economic assumptions used in measuring the interests in residential mortgage loans that continued to be held by the Bancorp at the date of sale, securitization, or purchase resulting from transactions completed during the years ended December 31 were as follows: 2018 2017 Weighted- Prepayment Weighted- Prepayment Average Life Speed OAS Spread Average Life Speed OAS Spread Rate (in years) (annual) (bps) (in years) (annual) (bps) Residential mortgage loans: Servicing rights Fixed 6.6 10.5 % 522 7.5 9.1 % 497 Servicing rights Adjustable 2.6 30.3 647 2.7 32.1 660 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 December 31, 2018 and 2017 , the Bancorp serviced $ 63.2 billion and $ 60.0 billion, respectively, of residential mortgage loans for other investors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets. At December 31, 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 Fair Weighted-Average Life Impact of Adverse Change on Fair Value OAS Spread Impact of Adverse Change on Fair Value ($ in millions) (a) Rate Value (in years) Rate 10% 20% 50% (bps) 10% 20% Residential mortgage loans: Servicing rights Fixed $ 925 6.2 10.2 % $ (36) (69) (158) 534 $ (18) (35) Servicing rights Adjustable 13 3.5 23.0 (1) (2) (3) 863 - (1) (a) The impact of the weighted-aver age default rate on the current fair value of residual cash flows for all scenarios is immaterial . These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on these variation s in the assumptions typically cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. The Bancorp believes variations of these levels are reasonably possible; however , there is the potential that adverse changes in key assumptions could be even greater . Also, in the previous table, the effect of a variation in a particular assumption on the fair value of the interests that continue to be held by the Bancorp is calculated without changing any other assumption; in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which might magnify or counteract these sensitivities. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 12 . DERIVATIVE FINANCIAL INSTRUMENTS T he Bancorp maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce certain risks related to interest rate, prepayment and foreign currency volatility. Additionally, the Bancorp holds derivative instruments for the benefit of its commercial customers and for other business purposes. The Bancorp does not enter into unhedged s peculative derivative positions. The Bancorp’s interest rate risk management strategy involves modifying the repricing charac teristics of certain financial instruments so that changes in interest rates do not adversely affect the Bancorp’s net interest margin and cash flows. Derivative instruments that the Bancorp may use as part of its interest rate risk management strategy inc lude interest rate swaps, interest rate floors, interest rate caps, forward contracts, forward starting interest rate swaps, options, swaptions and TBA securities . 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 agree s to purchase, and the seller agrees to make delivery of, a specific financial instrument at a predetermined price or yield. Options provide the purchaser with the right, but not the obligation, to purchase or sell a contracted item during a specified peri od 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, mo rtgage loans and mortgage-backed securities. The Bancorp may enter into various free-standing derivatives ( principal-only swaps, interest rate swaptions, interest rat e floors, mortgage options, TBA securities and interest rate swaps) to economically hedge prepayment 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 forward purchase agreement for a mortgage-backed securities trade whereby the terms of th e security are undefined at the time the trade is made. Foreign currency volatility occurs as the Bancorp enters into certain loans denominated in foreign currencies. Derivative instruments that the Bancorp may use to economically hedge these foreign denom inated loans include foreign exchange swaps and forward contracts. The Bancorp also enters into derivative contracts (including foreign exchange contracts, commodity contracts and interest rate contracts) for the benefit of commercial customers and other b usiness purposes. The Bancorp economically hedge s significant exposures related to these free-standing derivatives by entering into offsetting third-party contracts with approved, reputable and independent counterparties with substantially matching terms a nd currencies. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. The Bancorp’s exposure is limited to the replacement value of the contracts rather than the notional, principal or contract amounts. Credi t risk is minimized through credit approvals, limits, counterparty collateral and monitoring procedures. The fair value of derivative instruments is presented on a gross basis, even when the derivative instruments are subject to master netting arrangement s. Derivative instruments with a positive fair value are reported in other assets in the Consolidated Balance Sheets while derivative instruments with a negative fair value are reported in other liabilities in the Consolidated Balance Sheets. Cash collater al payables and receivables associated with the derivative instruments are not added to or nette d against the fair value amounts with the exception of certain variation margin payments that are considered legal settlements of the derivative contracts. For derivative contracts cleared through certain central clearing parties who have modified their rules to treat variation margin payments as settlements, the variation margin payments are applied to net the fair value of the respective derivative contracts. T he Bancorp’s derivative assets include c ertain contractual features in which the Bancorp requires the counterparties to provide collateral in the form of cash and securities to offset changes in the fair value of the derivatives, including changes in the f air value due to credit risk of the counterparty. As of December 31, 2018 and 2017 , the balance of collateral held by the Bancorp for derivative assets was $ 481 million and $ 409 m illion, respectively. For derivative contracts cleared through certain central clearing parties who have modified their rules to treat variation margin payments as settlement of the derivative contract, the payments for variation margin of $ 249 million were applied to reduce the respective derivative contracts and were also not included in the total amount of collateral held as of December 31, 2018 . The credit component negatively impacting the fair value of derivative assets associated with customer accommodation contracts was $ 3 million as of both December 31, 2018 and 2017 . In measuring the fair value of derivative liabilities, the Bancorp considers its own credit risk, taking into consideration collateral maintenance requirements of certain derivative counterparties and the duration of instruments 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 deriv atives, including changes in fair value due to the Bancorp’s credit risk. As of December 31, 2018 and 2017 , the balance of collateral posted by the Bancorp for derivative liabilities was $ 551 million and $ 365 million, respectively. Additionally, $ 23 million of variation margin payments were applied to the respective derivative contracts to reduce the Bancorp’s derivative liabilities as of December 31, 2018 and were also not included in the total amount of collateral posted. Certain of the Bancorp’s derivative liabilities contain credit-risk related contingent features that could result in the requirement to post additional collateral upon the occurrence of specified events. As of December 31, 2018 and 2017 , the fair value of the additional collateral that could be required to be posted as a result of the credit-risk related contingent features being triggered was immaterial to the Bancorp’s Consolidated Financial Statements. The posting of collateral has been determined to remove the need for further c onsideration of credit risk. As a result, the Bancorp determined that the impact of the Bancorp’s credit risk to the valuation of its derivative liabilities was immaterial to the Bancorp’s Consolidated Financial Statements. The Bancorp holds certain derivative instruments that qualify for hedge accounting treatment and are designated as either fair value hedges or cash flow hedges. Derivative instruments that do not qualify for hedge accounting treatment, or for which hedge accounting is not establish ed, 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 Consolidated Balance Sheets as of: Fair Value Notional Derivative Derivative December 31, 2018 ($ in millions) Amount Assets Liabilities Derivatives Designated as Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 3,455 262 2 Total fair value hedges 262 2 Cash flow hedges: Interest rate floors related to C&I loans 3,000 69 - Interest rate swaps related to C&I loans 8,000 15 27 Total cash flow hedges 84 27 Total derivatives designated as qualifying hedging instruments 346 29 Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSR portfolio 10,045 40 14 Forward contracts related to residential mortgage loans held for sale 926 - 8 Swap associated with the sale of Visa, Inc. Class B Shares 2,174 - 125 Foreign exchange contracts 133 4 - Total free-standing derivatives - risk management and other business purposes 44 147 Free-standing derivatives - customer accommodation: Interest rate contracts 55,012 262 278 Interest rate lock commitments 407 7 - Commodity contracts 6,511 307 278 TBA securities 18 - - Foreign exchange contracts 13,205 148 142 Total free-standing derivatives - customer accommodation 724 698 Total derivatives not designated as qualifying hedging instruments 768 845 Total $ 1,114 874 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. As of December 31, 2018, certain interest rate swaps met the criteria required to qualify for the shortcut method of accounting that permits the assumption of perfect offset. For all designated fair value hedges of interest rate risk as of December 31, 2018 that were not accounted for under the shortcut method of accounting, the Bancorp perfor med an assessment of hedge effectiveness using regression analysis 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 recorded in the same income statem ent 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 Consolidated Statements of Income: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2018 2017 2016 Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ (36) (33) (59) Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt 41 31 54 The following amounts were recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of: ($ in millions) Consolidated Balance Sheets Caption December 31, 2018 Carrying amount of the hedged items Long-term debt $ 3,991 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items Long-term debt (254) 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 s hare the same risk exposure that the Bancorp desires to hedge. The Bancorp may also enter into interest rate caps and floors to limit ca sh flow variability of floating- rat e assets and liabilities. As of December 31, 2018 , hedges designated as cash flow hedges were assessed for effectiveness using either regression analysis (quantitative approach) or a qualitative approach. The entire change in the fair value of the interest rate swap included in the assessment of hedge effectiveness is recorded in AOCI and reclassified from AOCI to current period earnings when the hedged item affects earnings. As of December 31, 2018 , the maximum length of time over which the Bancorp is hedging its ex posure to the variability in future cash flows is 72 months. Reclassified gains and losses on interest rate contracts related to commercial and industrial loans are recorded within interest income in the Consolidated Statements of Income. As of December 31 , 2018 and 2017 , $ 160 million of net deferred gains, net of tax and $ 9 million of net deferred losses, net of tax, respectively, on cash flow hedges were recorded in AOCI in the Consolidated Balance Sheets. As of December 31, 2018 , $ 10 million in net unrealized losses , net of tax, recorded in AOCI are expected to be reclassified into earnings during the next twelve months . This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to December 31 , 2018 . During the years ended 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 orig inal forecasted transaction would no longer occur by the end of the originally specified time period or within the additional period of time as defined by U.S. GAAP. The following table presents the pre-tax net gains (losses) recorded in the Consolidated Statements of Income and in the Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the years ended December 31 ($ in millions) 2018 2017 (a) 2016 (a) Amount of pre-tax net gains (losses) recognized in OCI $ 214 (11) 30 Amount of pre-tax net (losses) gains reclassified from OCI into net income (2) 19 48 For both the years ended December 31, 2017 and 2016 , the amount of pre - tax 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 ineffectiveness. Refer to Note 1 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 s ecurities and interest rate swaps) to economically hedge changes in fair value of its largely fixed-rate MSR portfolio. Principal-only swaps hedge the mortgage-LIBO R spread because these swaps appreciate in value as a result of tightening spreads. Principal-only swaps also provide prepayment protection by increasing in value when prepayment speeds increase, as opposed to MSRs that lose value in a faster prepayment en vironment. Receive fixed/pay floating interest rate swaps and swaptions increase in value when interest rates do not increase as quickly as expected. The Bancorp enters into forward contracts and mortgage options to economically hedge the change in fair va lue of certain residential mortgage loans held for sale du e to changes in interest rates. IRLC s issued on residential mortgage loan commitments that will be held for sale are also considered free-standing derivative instruments and the interest rate exposu re on these commitments is economically hedged pr imarily with forward contracts. Revaluation gains and losses from free-standing derivatives related to mortgage banking activity are recorded as a component of mortgage banking net revenue in the Consolidate d Statements of Income. In conjunction with the initial sale of the Bancorp’s 51 % interest in Vantiv Holding, LLC (now Worldpay Holding, LLC) in 2009, the Bancorp received a warrant which was accounted for as a free-standing derivative. During the year en ded December 31, 2016, the Bancorp exercis ed the remaining portion of the warrant. In conjunction with the sale of Visa, Inc. Class B S hares in 2009, the Bancorp entered into a total return swap in which the Bancorp will make or receive payments based on s ubsequent changes in the conversion rat e of the Class B Shares into Class A S hares. This total return swap is accounted for as a free-standing derivative. Refer to Note 26 for further discussion of significant inputs and assumptions used in the valuation of this instrument. The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2018 2017 2016 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ (8) (17) 14 Interest rate contracts related to MSR portfolio Mortgage banking net revenue (21) 2 24 Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income 10 (7) 2 Equity contracts: Stock warrant associated with Worldpay Holding, LLC Other noninterest income - - 73 (a) Stock warrant Other noninterest income - (1) - Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (59) (80) (56) ( a) The Bancorp recognized a net gain of $9 on the exercise of the remaining warrant during the fourth quarter of 2016 Free-Standing Derivative Instruments – Customer Accommodation The majority of the free-standing derivative instruments the Bancorp enters into are for the benefit of its commercial customers. These derivative contracts are not designated against specif ic assets or liabilities on the Consolidated Balance Sheets or to forecasted transactions and, therefore, do not qualify for hedge accounting. These instruments include foreign exchange derivative contracts entered into for the benefit of commercial customers involved in international trade to hedge their exposure to foreign currency fluctuations and commodity contracts to hedge such items as natural gas and various other derivative contracts. The Bancorp may economically hedge significant exposures related to these derivative contracts entered into for the benefit of customers by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms. The Bancorp hedges its interest rate exposure on commercial customer transactions by executing offsetting swap agreements with primary dealers. Revaluation gains and losses on interest rate, foreign exchange, commodity and other commercial customer derivative contracts are recorded as a component of corporate banki ng revenue or other noninterest income in the Consolidated Statements of Income. The Bancorp enters into risk participation agreements, under which the Bancorp assumes credit exposure relating to certain underlying interest rate derivative contracts. The Bancorp only enters into these risk participation agreements in instances in which the Bancorp has participated in the loan that the underlying interest rate derivative contract was designed to hedge. The Bancorp will make payments under these agreements i f a customer defaults on its obligation to perform under the terms of the underlying interest rate derivative contract. As of December 31, 2018 and 2017 , the total notional amount of the risk participation agreements was $4.0 billion and $2.8 billion, respec tively , and the fair value was a liability of $ 8 million at December 31, 2018 and $ 5 million at December 31, 2017 , which is included in other liabilities in the Consolidated Balance Sheets . As of December 31, 2018 , the risk participation agreements had a weighted- averag e remaining life of 3.5 years. The Bancorp’s maximum exposure in the risk participation agreements is contingent on the fair value of the underlying interest rate derivative contracts in an asset position at the time of default. The Bancorp monitors the cr edit risk associated with the underlying customers in the risk participation agreements through the same risk grading system currently utilized for establishing loss reserves i n its loan and lease portfolio. Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table: At December 31 ($ in millions) 2018 2017 Pass $ 3,919 2,748 Special mention 79 66 Substandard 4 24 Total $ 4,002 2,838 The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: Consolidated Statements of For the years ended December 31 ($ in millions) Income Caption 2018 2017 2016 Interest rate contracts: Interest rate contracts for customers (contract revenue) Corporate banking revenue $ 32 21 22 Interest rate contracts for customers (credit losses) Other noninterest expense - (5) - Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense - 2 1 Interest rate lock commitments Mortgage banking net revenue 70 93 114 Commodity contracts: Commodity contracts for customers (contract revenue) Corporate banking revenue 9 6 6 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 55 48 62 Foreign exchange contracts for customers (contract revenue) Other noninterest income 14 - - 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 1 Offsetting Derivative Financial Instruments The Bancorp’s derivative transactions are generally governed by ISDA Master Agreements and similar arrangements, which include provisions governing the setoff of assets and liabilities between the parties. When the Bancorp has more than one outstanding derivative transaction with a single counterparty, the setoff provisions contained within these agreements generally allow the non-defaulting party the right to reduce its liability to the defaulting party by amoun ts eligible for setoff, including the collateral received as well as eligible offsetting transactions with that counterparty, irrespective of the currency, place of payment or booking office. The Bancorp’s policy is to present its derivative assets and der ivative liabilities on the Consolidated Balance Sheets on a gross basis, even when provisions allowing for setoff are in place. However, for derivative contracts cleared through certain central clearing parties who have modified their rules to treat variat ion margin payments as settlements, the fair value of the respective derivative contracts are reported net of the variation margin payments. Collateral amounts included in the table s below consist primarily of cash and highly-rated government-backed securi ties and do not include variation margin payments for derivative contracts with legal rights of setoff for 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 Consolidated Balance Sheets As of December 31, 2018 ($ in millions) Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 1,107 (410) (348) 349 Total assets 1,107 (410) (348) 349 Liabilities: Derivatives 874 (410) (123) 341 Total liabilities $ 874 (410) (123) 341 (a) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements. (b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related d erivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. Gross Amount Gross Amounts Not Offset in the Recognized in the Consolidated Balance Sheets As of December 31, 2017 ($ in millions) Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 815 (213) (362) 240 Total assets 815 (213) (362) 240 Liabilities: Derivatives 602 (213) (155) 234 Total liabilities $ 602 (213) (155) 234 Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangement s . Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets | |
Other Assets | 13 . OTHER ASSETS The following table provides the components of other assets included in the Consolidated Balance Sheets as of December 31: ($ in millions) 2018 2017 Accounts receivable and drafts-in-process $ 1,963 1,763 Bank owned life insurance 1,760 1,720 Partnership investments 1,390 1,445 Derivative instruments 1,114 823 Accrued interest and fees receivable 438 378 Investment in Worldpay Holding, LLC 420 219 Prepaid expenses 93 87 Income tax receivable 56 66 OREO and other repossessed personal property 48 54 Worldpay, Inc. TRA put/call receivable - 105 Other 90 203 Total other assets $ 7,372 6,863 The Bancorp purchases life insurance policies on the lives of certain directors, officers and employees and is the owner and beneficiary of the policies . Certain BOLI policies have a stable value agreement through either a large, well-rated bank or multi-national insurance carrier that provides limited cash surrender value protection from declines in the value of each policy’s underlying investments. Refer to Note 1 for further information. CDC, a wholly-owned indirect subsidiary of the Bancorp , was created to invest in projects to create affordable housing, revitalize business and residential areas and preserve historic landmarks, which are included above in partnership investments. In addition, Fifth Third Capital Holdings, a wholly-owned indi rect subsidiary of the Bancorp, invests as a direct private equity investor and as a limited partner in private equity funds, which are included above in partnership investments. The Bancorp has determined that these partnership investments are VIEs and th e Bancorp’s investments represent variable interests. F or further information on partnership investments , refer to Note 10 . The Bancorp utilizes derivative instruments as part of its overall risk management strategy to reduce certain risks related to in terest rate, prepayment and foreign currency volatility. The Bancorp also holds derivatives instruments for the benefit of its commercial customers and for other business purposes. For further information on derivative instruments, refer to Note 12 . In 2009, the Bancorp sold an approximate 51% interest in its processing business, Vantiv Holding, LLC (now Worldpay Holding, LLC). As a result of additional share sales completed by the Bancorp, its ownership share in Worldpay Holding, LLC was approxi mately 8.6% as of December 31, 2017. 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 acquisition as well as additional shar e sales completed by the Bancorp in 2018 , its ownership share in Worldpay Holding, LLC as of December 31, 2018 was approximately 3.3 %. The Bancorp’s ownership in Worldpay Holding, LLC is currently accounted for under the equity method of accounting. Refer to Note 18 for further information. OREO represents property acquired through foreclosure or other proceedings and is carried at the lower of cost or fair value, less costs to sell . Refer to Note 1 for further information. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Short-Term Borrowings | |
Short-Term Borrowings | 14 . SHORT-TERM BORROWINGS Borrowings with original maturities of one year or less are classified as short- term and include federal funds purchased and other short-term borrowings. Federal funds purchased are excess balances in reserve accounts held at the FRB that the Bancorp purchased from other member banks on an overnight basis. Other short-term borrowings include securities sold under repurchase agreements, derivative collateral, FHLB advances and other borrowings with original maturities of one year or le ss . The following table summarizes short-term borrowings and weighted-average rates: 2018 2017 ($ in millions) Amount Rate Amount Rate As of December 31: Federal funds purchased $ 1,925 2.40 % $ 174 1.37 % Other short-term borrowings 573 1.95 4,012 1.28 Average for the years ended December 31: Federal funds purchased $ 1,509 1.97 % $ 557 1.01 % Other short-term borrowings 1,611 1.82 3,158 0.96 Maximum month-end balance for the years ended December 31: Federal funds purchased $ 2,684 $ 1,495 Other short-term borrowings 6,313 6,307 The following table presents a summary of the Bancorp's other short-term borrowings as of December 31: ($ in millions) 2018 2017 Securities sold under repurchase agreements $ 302 546 Derivative collateral 271 341 FHLB advances - 3,125 Total other short-term borrowings $ 573 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 and other securities in the Consolidated Balance Sheets. These securities are subject to changes in market value and, therefore, the Bancorp may increase or decrease the level of securities pledged as collateral based upon these movements in market value. As of both December 31, 2018 and 2017 , all securities sold under repurchase agreeme nts were secured by agency residential mortgage-backed securities and the repurchase agreements have an overnight remaining contractual maturity . |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Long-Term Debt | |
Long-Term Debt | 15 . LONG-TERM DEBT The following table is a summary of the Bancorp’s long-term borrowings at December 31: ($ in millions) Maturity Interest Rate 2018 2017 Parent Company Senior: Fixed-rate notes 2019 2.30% $ 500 499 Fixed-rate notes 2020 2.875% 1,098 1,097 Floating-rate notes (b) 2021 3.206% 250 - Fixed-rate notes 2022 2.60% 698 697 Fixed-rate notes 2022 3.50% 498 497 Fixed-rate notes 2028 3.95% 646 - Subordinated: (a) Fixed-rate notes 2018 4.50% - 505 Fixed-rate notes 2024 4.30% 747 747 Fixed-rate notes 2038 8.25% 1,238 1,305 Subsidiaries Senior: Fixed-rate notes 2018 2.15% - 996 Fixed-rate notes 2018 1.45% - 600 Floating-rate notes 2018 2.35% - 250 Fixed-rate notes 2019 2.375% 850 849 Fixed-rate notes 2019 2.30% 750 749 Fixed-rate notes 2019 1.625% 743 736 Floating-rate notes (b) 2019 3.412% 250 250 Fixed-rate notes 2020 2.20% 742 744 Floating-rate notes (b) 2020 2.770% 300 299 Fixed-rate notes 2021 2.25% 1,248 1,247 Fixed-rate notes 2021 2.875% 847 846 Fixed-rate notes 2021 3.35% 502 - Floating-rate notes (b) 2021 2.948% 299 - Fixed-rate notes 2025 3.95% 764 - Subordinated: (a) Fixed-rate bank notes 2026 3.85% 747 747 Junior subordinated: Floating-rate debentures (b) 2035 4.21%-4.48% 52 52 FHLB advances 2019 - 2041 0.05% - 6.87% 22 30 Notes associated with consolidated VIEs: Automobile loan securitizations: Fixed-rate notes 2020 - 2024 1.42%-2.03% 568 982 Floating-rate notes (b) 2020 2.605% 11 75 Other 2019 - 2039 Varies 56 105 Total $ 14,426 14,904 In aggregate, $ 2.6 billion qualifies as Tier II capital for regulatory capital purposes for both years ended December, 31 2018 and 2017 . These rates reflect the floating rates as of December 31, 2018 . The Bancorp pays down long-term debt in accordance with contractual terms over maturity periods summarized in the above table. The aggregate annual maturities of long-term debt obligations (based on final maturit y dates) as of December 31, 2018 a re presented in the following tabl e: ($ in millions) Parent Subsidiaries Total 2019 $ 500 2,610 3,110 2020 1,098 1,105 2,203 2021 250 2,898 3,148 2022 1,196 461 1,657 2023 - 1 1 Thereafter 2,631 1,676 4,307 Total $ 5,675 8,751 14,426 At December 31, 2018 , the Bancorp’s long-term borrowings consisted of outsta nding principal balances of $ 14.2 billion, net discounts of $ 20 million, debt issuance costs of $ 3 0 million and additions for mark-to-market adjustments on its hedged debt of $ 254 million. At December 31, 2017 , the Bancorp’s long-term borrowings consisted of outstanding principal balances of $ 14. 7 billion, net discounts of $ 2 1 million, debt issuance costs of $ 3 1 million and additions for mark-to-market adjustments on its hedg ed debt of $ 29 8 million. The Bancorp was in compliance with all debt covenants at December 31, 2018 and 2017 . For further information on subsequent events related to long-term debt, refer to Note 31 . Parent Company Long-Term Borrowings Senior n otes On March 7, 2012, the Bancorp issued and sold $ 500 million of senior notes to third-party investors and entered into a Supplemental Indenture dated March 7, 2012 with the Trustee, which modified the existing Indenture for Senior Debt Securities date d April 30, 2008. The Supplemental Indenture and the Indenture define the rights of the senior notes and that they are represented by a Global Security dated as of March 7, 2012. The senior notes bear a fixed-rate of interest of 3.50% per annum. The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes will be due upon maturity on March 15, 2022. These fixed-rate senior notes will be redeemable by the Bancorp, in whole or in part, on or after the date tha t is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On February 28, 2014, the Bancorp issued and sold $ 500 million of senior notes t o third-party investors. The senior notes bear a fixed-rate of interest of 2.30% per annum . The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes is due upon maturity on March 1, 2019. These fixed-ra te senior notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the r edemption date. On July 27, 2015, the Bancorp issued and sold $ 1.1 billion of senior notes to third-party investors. The senior notes bear a fixed-rate of interest of 2.875% per annum . The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes is due upon maturity on July 27, 2020. These fixed-rate senior notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On June 15, 2017, the Bancorp issued and sold $ 700 m illion of senior notes to third-party investors. The senior notes bear a fixed-rate of interest of 2.60% per annum. The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes is due upon maturity on June 15, 2022. These fixed-rate senior notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On March 1 4 , 201 8 , the Bancorp issued and sold $ 650 m illion of senior notes to third-party investors. The senior notes bear a fixed-rate of interest of 3.95% per annum. The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes is due upon maturity on March 14, 2028. These fixed-rate senior notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On June 5, 2018, the Bancorp issued and sold $ 250 million of senior notes to third-party investors. The senior notes bear a floating-rate of three -month LIBOR plus 47 bps. The notes are unsecured, senior obligations of the Bancorp. Payment of the full principal amounts of the notes is due upon maturity on June 4, 2021. These floating-rate senior notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturity da te at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. Subordinated d ebt The Bancorp has entered into interest rate swaps to convert part of its subordin ated fixed-rate notes due in 2038 to floating-rate . Of the $ 1.0 billion in 8.25% subordinated fixed-rate notes due in 2038, $ 705 million were subsequently hedged to floating-rate and paid a rate of 5 . 79 % at December 31, 2018 . On November 20, 2013, the Bancorp issued and sold $ 750 million of 4.30% unsecured subordinated fixed-rate notes due on January 16, 2024. These fixed-rate notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption p rice equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. Subsidiary Long-Term Borrowings Senior and subordinated d ebt Medium-term senior notes and subordinated bank notes with maturities rangin g from one year to 30 years can be issued by the Bancorp’s banking subsidiary. Under the Bancorp’s banking subsidiary’s global bank note program, the Bank’s capacity to issue its senior and subordinated unsecured bank notes is $ 2 5.0 billion. As of December 31, 2018 , $ 1 7 . 0 billion was available for future issuance under the global bank note program. On April 25, 2014, the Bank issued and sold, under its bank notes program, $ 850 million of 2.375% senior fixed- rate notes due on April 25, 2019 . These bank n otes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date . On September 5, 2014, the Bank issued and sold, under its bank notes program, $ 850 million of 2.875% unsecured senior fixed-rate bank notes due on October 1, 2021. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On March 15, 2016, the Bank issued and sold, under its bank notes program, $1.5 billion in aggregate principal amount of unsecured bank notes. The bank notes consisted of $ 750 million of 2.30% senior fixed-rate notes due on March 15, 2019; and $ 750 million of 3.85% subordinated fixed-rate notes due on March 15, 2026. These bank n otes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date . On June 14, 2016, the Bank issued and sold, under its bank notes program, $ 1.3 billion of 2.25% unsecured senior fixed-rate notes due on June 14, 2021. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On September 27, 2016, the Bank issued and sold, under its bank notes program, $1.0 billion in aggregate principal amount of unsecured senior bank notes due on September 27, 2019. The bank notes consisted of $ 750 million of 1.625% senior fixed-rate notes and $ 250 million of senior floating-rate notes at three-month LIBOR plus 59 bps. The Bancorp entered into interest rate swaps to convert the fixed-rate notes to a floating-rate, which resulted in an effective interest rate of three-month LIBOR plus 53 bps. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On October 30, 2017 , the Bank issu ed and sold , under its bank notes program, $1.1 billion in aggregate principal amount of unsecured senior bank notes due on October 30, 2020. The bank notes consisted of $ 750 million of 2.20% senior fixed-rate notes and $ 300 million of senior floating-rate notes at three-m onth LIBOR plus 25 bps. The Bancorp entered into an interest rate swap to convert the fixed-rate notes to a floating-rate, which resulted in an effective interest rate of three-month LIBOR plus 24 bps. These bank notes will be redeemable b y the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. On July 26, 2018 the Ba nk issued and sold , under its bank notes program, $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 thr ee 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 in terest rate swaps to convert the fixed-rate notes due in 2021 and 2025 to a floating-rate, which resulted in an effective interest rate of one-month LIBOR plus 53 bps and 104 bps, respectively. These bank notes will be redeemable by the Bank, in whole or i n part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. Junior subordinated d ebt The junior subordinated floating-rate debentures due in 2035 were assumed by the Bancorp’s direct nonbank subsidiary holding company as part of the acquisition of First Charter in June 2008. The obligation was issued to First Charter Capital Trust I and II. The notes of First Charter Capital Trust I and II pay a floating rate at three-month LIBOR plus 169 bps and 142 bps, respectively. The Bancorp’s nonbank subsidiary holding company has fully and unconditionally guaranteed all obligations under the acquired TruPS iss ued by First Charter Capital Trust I and II. FHLB a dvances At December 31, 2018 , FHLB advances have rates ranging from 0.05 % to 6.87%, with interest payable monthly. The Bancorp has pledged $ 1 4 . 4 billion of certain residential mortgage loans and secur ities to secure its borrowing capacity at the Federal Home Loan Bank which is partially utilized to fund $ 22 million in FHLB advances that are outstanding. The FHL B advances mature as follows: $ 7 million in 201 9 , $ 2 million in 20 20 , $ 2 million in 202 1 , $ 2 million in 202 2 , $ 1 million in 202 3 , and $ 8 million thereafter. Notes associated with c onsolidated VIEs As previously discussed in Note 10 , the Bancorp was determined to be the primary beneficiary of various VIEs associated with certain automobile loa n securitizations. Third-party holders of this debt do not have recourse to the general assets of the Bancorp. In a securitization transaction that occurred in 2017, the Bancorp transferred an aggregate amount of $ 1.1 billion in consumer automobile loans t o 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 milli on were retained by the Bancorp. Approximately $ 501 million of outstanding note s from the 2017 securitization transaction are included in long-term debt in the Consolidated Balance Sheets as of December 31, 201 8 . Additionally, in prior years the Bancorp completed securitization transactions in which the Bancorp transferred certain co nsumer automobile loans to bankruptcy remote trusts which were also deemed to be V IEs. As such, approximately $ 78 million of outstanding notes related to these VIEs were included in long-term debt in the Consolidated Balance Sheets as of December 31, 2018 . |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Guarantees | 12 Months Ended |
Dec. 31, 2018 | |
Commitments, Contingent Liabilities and Guarantees | |
Commitments, Contingent Liabilities and Guarantees | 16 . COMMITMENTS, CONTINGENT LIABILITIES AND GUARANTEES The Bancorp, in the normal course of business, enters into financial instruments and various agreements to meet the financing needs of its customers. The Bancorp also enters into certain transactions and agreements to manage its interest rate and prepayment risks, provide funding, equipment and locations for its operations and invest in its communities. These instruments and agreements involve, to varying degrees, elements of credit risk, counterparty risk and market risk in excess of the amounts r ecognized in the Consolidated Balance Sheets. The creditworthiness of counterparties for all instruments and agreements is evaluated on a case-by-case basis in accordance with the Bancorp’s credit policies. The Bancorp’s significant commitments, contingent liabilities and guarantees in excess of the amounts recognized in the Consolidated Balance Sheets are discussed in the following sections. Commitments The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of December 31: ($ in millions) 2018 2017 Commitments to extend credit $ 70,415 68,106 Letters of credit 2,041 2,185 Forward contracts related to residential mortgage loans held for sale 926 1,284 Noncancelable operating lease obligations 603 568 Purchase obligations 126 144 Capital expenditures 45 37 Capital commitments for private equity investments 32 48 Capital lease obligations 20 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 contrac t. 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 va lue of those commitments. As of December 31, 2018 and 2017 , the Bancorp had a reserve for unfunded commitments , includ ing letters of credit, totaling $ 131 million and $ 161 million, respectively, included in other liabilities in the Consolidated Balance Sheets. The Bancorp monitors the credit risk associated with commitments to extend credit using the same standard regulatory risk rating system utilized for its loan and lease portfolio. Risk ratings of outstanding commitments to extend credit under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2018 2017 Pass $ 69,928 67,254 Special mention 271 330 Substandard 216 522 Total commitments to extend credit $ 70,415 68,106 Letters of credit Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of December 31, 2018: ($ in millions) Less than 1 year (a) $ 1,044 1 - 5 years (a) 989 Over 5 years 8 Total letters of credit $ 2,041 (a) Includes $ 1 and $ 18 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively. Standby letters of credit accounted for approximately 99 % of total letters of credit at both December 31, 2018 and 2017 and are considered guarantees in accordance with U.S. GAAP. Approximately 60 % and 61 % of the total standby letters of credit were collateralized as of December 31, 2018 and 2017 , respectively . In the event of nonperformance by the customers, the Bancorp has rights to the underlying collateral, which can include commercial real estate, p hysical plant and property, inventory, receivables, cash and marketable securities. The reserve related to these standby letters of credit, which is included in the total reserve for unfunded commitments, was $ 17 million a t December 31, 2018 and $ 6 million at December 31 , 2017 . 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 December 31: ($ in millions) 2018 2017 Pass $ 1,905 1,830 Special mention 10 67 Substandard 126 218 Doubtful - 70 Total letters of credit $ 2,041 2,185 At December 31, 2018 and 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 proper a dvance notice. When the VRDNs are tendered, a remarketing agent generally finds another investor to purchase the VRDNs to keep the securities outstanding in the market. As of December 31, 2018 and 2017 , total VRDNs in which the Bancorp was the remark eting agent or were supported by a Bancorp letter of credit were $ 487 million and $ 602 million, respectively, of which FTS acted as the remarketing agent to issuers on $ 481 million and $ 508 million, resp ectively . As remarketing agent, FTS is responsible fo r 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 VRDNs 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 $ 256 million and $ 331 million of the VRDNs remarketed by FTS, in addition to $ 6 milli on and $ 94 million in VRDNs remarketed by third parties at December 31, 2018 and 2017 , respectively. These letters of credit are included in the total letters of credit balance provided in the previous table . The Bancorp held $ 9 million and $ 1 milli on of these VRDNs in its portfolio and classified them as trading securities at December 31, 2018 and 2017 , respectively. Forward contracts related to residential mortgage loans held for sale The Bancorp enters into forward contracts to economically hedge the change in fair value of certain residential mortgage loans held for sale due to changes in interest rates. The outstanding notional amounts of these forward contracts are included in the summary of sign ificant commitments table for all periods p resented. Noncancelable operating lease obligations and other commitments The Bancorp’s subsidiaries have entered into a number of noncancelable lease agreements. The minimum rental commitments under noncancelable lease agreements are shown in the summary of significant commitments table. The Bancorp has also entered into a limited number of agreements for work related to banking center construction and to purchase goods or services. Contingent Liabilities Legal claims There are legal claims pending against the Bancorp and its subsidiaries that have arisen in the normal course of business. Refer to Note 17 for additional information regarding these proceedings. Guarantees The Bancorp has performance obligations upon the occurrence of certain events under financial guarantees provided in certain contractual arrangements as discussed in the following sections. Residential mortgage loans sold with representation and warranty provisions Conforming residential mortgage loans sold to unrelated thir d 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 Bancorp may be req uired to repu rchase any previously sold loan, indemnify or make whole the investor or insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading. For more information on how the Bancorp establishes th e residential mortgage repurchase reserve, refer to Note 1 . As of December 31, 2018 and 2017 , the Bancorp maintained reserves related to loans sold with representation and warranty provisions totaling $ 6 million and $ 9 million , respectively , included in other liabilities in the Consolidated Balance Sheets . The Bancorp uses the best information available when estimating its mortgage representation and warranty reserve; however, the estimation process is inherently uncertain and imprecise and, accordingly, losses in excess of the amounts reserved as of December 31, 2018 , are reasonably possible. The Bancorp currently estimates that it is reasonably possible that it co uld 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 derived b y modifying the key assumptions to reflect management's judgment regarding rea sonably possible adverse changes to those assumptions. The actual repurchase losses could vary significantly from the recorded mortgage representation and warranty reserve or this estimate of reasonably possible losses, depending on the outcome of various factors, including those previously discussed . During the years ended December 31, 2018 and 2017 , the Bancorp paid an immaterial amount and $ 1 million in the form of make whole payments and repurchased $ 18 million and $ 12 million , respectively, in outstanding principal of loans to satisfy investor demands. Total repurchase demand requests during the years ended December 31, 2018 and 2017 were $ 19 million and $ 15 million , respectively. Total outstanding repurchase demand inventory was $ 1 millio n at both December 31, 2018 and December 31, 2017 . The following table summarizes activity in the reserve for representation and warranty provisions for the years ended December 31: ($ in millions) 2018 2017 Balance, beginning of period $ 9 13 Net reductions to the reserve (3) (3) Losses charged against the reserve - (1) Balance, end of period $ 6 9 The following tables provide a rollforward of unresolved claims by claimant type for the years ended December 31: GSE Private Label 2018 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 6 $ 1 1 $ - New demands 121 19 - - Resolved demands (118) (19) - - Balance, end of period 9 $ 1 1 $ - GSE Private Label 2017 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 13 $ 2 - $ - New demands 109 15 1 - Loan paydowns/payoffs (2) - - - Resolved demands (114) (16) - - Balance, end of period 6 $ 1 1 $ - 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 $ 272 million and $ 312 million at December 31, 2018 and 2017 , respectively, and the delinquency rates were 2.2 % at December 31, 2018 and 3 .0 % at December 31, 2017 . The Bancorp maintained an estimated credit loss reserve on these loans sold with credit recourse of $ 5 million a t both December 31, 2018 and 2017 recorded in other liabilities in the Consolidated Balance Sheets. To determine the credit loss reserve, th e Bancorp used an approach that is consistent with its overall approach in estimating credit losses for various categories of residential mortgage loans held in its loan portfolio. Margin accounts FTS, a n indirect wholly-owned sub sidiary of the Bancorp, guarantees the collection of all margin account balances held by its brokerage clearing agent for the benefit of its customers. FTS is responsible for payment to its brokerage clearing agent for any loss, liability, damage, cost or expense incurred as a result of customers failing to comply with margin or margin maintenance calls on all margin accounts. The margin account balance held by the brokerage clearing agent was $ 13 million and $ 15 million at December 31, 2018 and 2017 , respect ively . In the event of any customer default, FTS has rights to the underlying collateral provided. Given the existence of the underlying collateral provided and negligible historical credit losses, the Bancorp does not maintain a loss reserve related to th e margin accounts. Long-term borrowing obligations The Bancorp had certain fully and unconditionally guaranteed long-term borrowing obligations issued by wholly-owned issuing trust entities of $ 62 million at both December 31, 2018 and 2017 . Visa l itigation The Bancorp, as a member bank of Visa prior to Visa’s reorganization and IPO (the “IPO”) of its Class A common shares (the “Class A Shares”) in 2008, had certain indemnification obligations pursuant to Visa’s certificate of incorporation and by-laws and in accordance with their membership agreements. In accordance with Visa’s by-laws prior to the IPO, the Bancorp could have been required to indemnify Visa for the Bancorp’s proportional share of losses based on the pre-IPO membership interests. As part of its reorganization and IPO, the Bancorp’s indemnification obligation was modified to include only certain known or anticipated litigation (the “Covered Litigation”) as of the date of the restructuring. This modification triggered a requirement for the Bancorp to recognize a liability equal to the fair value of the indemnification liability. In conjunction with the IPO, the Bancorp received 10.1 million of Visa’s Class B common shares (the “Class B Shares”) based on the Bancorp’s membership perc entage in Visa prior to the IPO. The Class B Shares are not transferable (other than to another member bank) until the later of the third anniversary of the IPO closing or the date which the Covered Litigation has been resolved; therefore, the Bancorp’s Cl ass B Shares were classified in other assets and accounted for at their carryover basis of $ 0 . Visa deposited $ 3 billion of the proceeds from the IPO into a litigation escrow account, established for the purpose of funding judgments in, or settlements of, the Covered Litigation. Since then, when Visa’s litigation committee determined that the escrow account was insufficient; Visa issued additional Class A Shares and deposited the proceeds from the sale of the Class A Shares into the litigation escrow accoun t. When Visa funded the litigation escrow account, the Class B Shares were subjected to dilution through an adjustment in the conversion rate of Class B Shares into Class A Shares. In 2009, the Bancorp completed the sale of Visa, Inc. Class B Shares and en tered 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 d ate on which the Covered Litigation is settled. Refer to Note 26 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 c onversion 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 a dditional funding by Visa of the litigation escrow account and the resulting dilution of the Class B Shares could result in a scenario where the Bancorp’s ultimate exposure associated with the Covered Litigation (the “Visa Litigation Exposure”) exceeds the value of the Class B Shares owned by the swap counterparty (the “Class B Value”). In the event the Bancorp concludes that it is probable that the Visa Litigation Exposure exceeds the Class B Value, the Bancorp would record a litigation reserve liability a nd a corresponding amount of other noninterest expense for the amount of the excess. Any such litigation reserve liability would be separate and distinct from the fair value derivative liability associated with the total return swap. As of the date of the Bancorp’s sale of the Visa Class B Shares and through December 31, 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 the Class B Shares, the Ban corp 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 $ 125 million and $ 137 million at December 31, 2018 and 2017 , respectiv ely. Refer to Note 12 and Note 26 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 26 |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 12 Months Ended |
Dec. 31, 2018 | |
Legal And Regulatory Proceedings | |
Legal and Regulatory Proceedings | 17 . LEGAL AND REGULATORY PROCEEDINGS Litigation Visa/MasterC 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, Case No. 05-MD-1720). 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 ob ligation of Visa as discussed in Note 16 and has also entered into judgment and loss sharing agreements with Visa, MasterCard and certain other named defendants. In October 2012, the parties to the litigation entered into a settlement agreement. On Jan uary 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 district court for further proceedings. On March 27, 2017, the Supreme Court of the United States denied a petition for writ of certiorari seeking to review the Second Circuit’s decision. Pursuant to the terms of the overturned settlement agreement, the Bancorp previously paid $ 46 million into a class settlement escrow account. Approximately 8,000 merchants requested exclusion from the class settlement, and therefore, pursuant to the terms of the overturned settlement agreement, approximately 25% of the funds paid into the class settlement escrow account were already returned to the control of the defendants. The remaining approximately 75% of the settlement funds paid by the Banco rp are maintained in the escrow account. More than 500 of the merchants who requested exclusion from the class filed separate federal lawsuits against Visa, MasterCard and certain other defendants alleging similar antitrust violations. These individual fed eral lawsuits were transferred to the United States District Court for the Eastern District of New York. While the Bancorp is only named as a defendant in one of the individual federal lawsuits, it may have obligations pursuant to indemnification arrangeme nts 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 proposed plaintiffs’ class seeking monetary damages (the “Plaintiff Damage s Class”). On September 17, 2018, those parties signed a settlement agreement (the “Amended Set tlement Agreement”) superseding the original settlement agreement entered into in October 2012. The Amended Settlement Agreement includes, among other terms, a r elease from participating class members for liability for claims that accrue no later than five years after the Amended Settlement Agreement becomes final. The Amended Settlement Agreement provides for a total payment by all defendants of $6.24 billion, co mposed of approximately $5.3 billion held in escrow and an additional $900 million. The Bancorp’s allocated share of the putative settlement is within existing reserves. If more than 15% of class members (by payment volume) opt out of the class, up to $ 700 million of the settlement payment may be returned to the defendants. On September 18, 2018, the Plaintiff Damages Class filed a Motion for Preliminary Approval of the Amended Settlement Agreement. At a hearing on the Motion on December 6, 2018, the Court announced that it will preliminarily approve the Amended Settlement Agreement. 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. The ultimate outcome in this matter, including the timing of resolution, therefore remains uncertain. Refer to Note 16 for further information. Klopfenstein v. Fifth Third Bank On August 3, 2012, William Klopfenstein and Adam McKinney filed a lawsuit against Fifth Third Bank in the United States District Court for the Northern District of Ohio (Klopfenstein et al. v. Fifth Third Bank), alleging that the 120% APR that Fifth Third disclosed on its Early Access program was misleading. Early Access is a de posit-advance program offered to eligible customers with checking accounts. The plaintiffs sought to represent a nationwide class of customers who used the Early Access program and repaid their cash advances within 30 days. On October 31, 2012, the case wa s transferred to the United States District Court for the Southern District of Ohio. In 2013, four similar putative class actions were filed against Fifth Third Bank in federal courts throughout the country (Lori and Danielle Laskaris v. Fifth Third Bank, Janet 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 Acce ss Cash Advance Litigation (Case No. 1:12-CV-00851). On behalf of a putative class, the plaintiffs seek unspecified monetary and statutory damages, injunctive relief, punitive damages, attorney’s fees, and pre- and post-judgment interest. On March 30, 2015 , the court dismissed all claims alleged in the consolidated lawsuit except a claim under the TILA. On January 10, 2018, plaintiffs filed a motion to hear the immediate appeal of the dismissal of their breach of contract claim. On March 28, 2018, the court granted plaintiffs’ motion and stayed the TILA 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. Oral argument on plaintiffs’ appea l was held on January 29, 2019. H elton v. Fifth Third Bank On August 31, 2015, trust beneficiaries filed an action against Fifth Third Bank, as trustee, in the Probate Court for Hamilton County, Ohio (Helen Clarke Helton, et a l. v. Fifth Third Bank, Case No. 2015003814). The plaintiffs allege breach of the duty to diversi f y, breach of the duty of impartiality, breach of trust/fiduciary duty, and unjust enrichment, based on Fifth Third’s alleged failure to diversify assets held in two trusts f or the pl aintiffs’ benefit. The lawsuit seeks over $ 800 million in alleged damages, attorney’s fees, removal of Fifth Third as trustee, and injunctive relief. Fifth Third denies all liability. On April 20, 2018, the Court denied plaintiffs’ motion for summary judgm ent and granted summary judgment to Fifth Third, dismissing the case in its entirety. The plaintiffs filed a notice of appeal on May 5, 2018. The appeal is pending. Upsher-Smith Laboratories, Inc. v. Fifth Third Bank On February 12, 2016 , Upsher-Smith La boratories, Inc. (“Upsher-Smith”) filed suit against Fifth Third Bank in the Fourth Judicial District, Hennepin County, Minnesota , alleging that Fifth Third improperly implemented foreign exchange transactions requested by plaintiff’s authorized employee w ho 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 mi llion, plus interest. Fifth Third denies all liability in this matter. On March 3, 2016, Fifth Third removed the case to the United States District Court for the District of Minnesota (Upsher-Smith Laboratories Inc. v. Fifth Th ird Bank, Case No. 16-cv-0055 6). No trial date has been scheduled. Other l itigation The Bancorp and its subsidiaries are not parties to any other material litigation. However, there are other litigation matters that arise in the normal course of business. While it is impossible to ascertain the ultimate resolution or range of financial liability with respect to these contingent matters, management believes that the resulting liability, if any, from these other actions would not have a material effect upon the Bancorp’s consolida ted financial position, results of operations or cash flows. Governmental Investigations and Proceedings The Bancorp and/or its affiliates are or may become involved in information-gathering requests, reviews, investigations and proceedings (both formal a nd informal) by various governmental regulatory agencies and law enforcement authorities, including but not limited to the FRB, CFPB, SEC, FINRA, U.S. Department of Justice, etc., as well as state and other governmental authorities and self-regulatory bodi es regarding their respective businesses. Additional matters will likely arise from time to time. Any of these matters may result in material adverse consequences or reputational harm to the Bancorp, its affiliates and/or their respective directors, office rs and other personnel, including adverse judgments, findings, settlements, fines, penalties, orders, injunctions or other actions, amendments and/or restatements of the Bancorp’s SEC filings and/or financial statements, as applicable, and/or determination s of material weaknesses in our disclosure controls and procedures. Investigations by regulatory authorities may from time to time result in civil or criminal referrals to law enforcement. Additionally, in some cases, regulatory authorities may take superv isory 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 thre atened or potential actions or claims concerning matters arising from the conduct of its business activities. The outcome of claims or litigation and the timing of ultimate resolution are inherently difficult to predict. 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 o r 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 lo ss 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 p ossible (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 even ts occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” Thus, references to the upper end of the range of reasonably possible loss for cases in which the Bancorp is able to estimate a range of reasonably possible loss mean the upper end of the range of loss for cases for which the Bancorp believes the risk of loss is more than slight. For matters where the Bancorp is able to estimate such possible losses or ranges of possible losses, the Bancorp currently estimates that it is reasonably possible that it could incur losses related to legal and regulatory proceedings in an aggregate amount up to approximately $ 14 million in excess of amounts accrued, with it also being r easonably 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 counse l, available insurance coverage and established accruals, the Bancorp believes that the eventual outcome of the actions against the Bancorp and/or its subsidiaries, including the matters described above, will not, individually or in the aggregate, have a m aterial 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 oper ations for any particular period, depending, in part, upon the size of the loss or liability imposed and the operating results for the applicable period . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions | |
Related Party Transactions | 18 . RELATED PARTY TRANSACTIONS The Bancorp maintains written policies and procedures covering related party transactions with principal shareholders, directors and executives of the Bancorp. These procedures cover transactions such as employee-stock purchase loans, personal lines of credit, residential secured loans, overdrafts, letters of credit and increases in indebtedness. Such transactions are subject to the Bancorp’s normal underwriting and approval procedures. Prior to approving a loan to a related party, Compliance Risk Manage ment must review and determine whether the transaction requires approval from or a post notification to the Bancorp’s Board of Directors. At December 31, 2018 and 2017 , certain directors, executive officers, principal holders of Bancorp common stock and thei r related interests were indebted, including undrawn commitments to lend, to the Bancorp’s banking subsidiary. The following table summarizes the Bancorp’s lending activities with its principal shareholders, directors, executives and their related interests at December 31: ($ in millions) 2018 2017 Commitments to lend, net of participations: Directors and their affiliated companies $ 700 546 Executive officers 6 6 Total $ 706 552 Outstanding balance on loans, net of participations and undrawn commitments $ 10 20 The commitments to lend are in the form of loans and guarantees for various business and personal interests. This indebtedness was incurred in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties. This indebtedness does not involve more than the normal risk of repayment or present other features unfavorable to the Bancorp. Worldpay, Inc. and Worldpay Holding, LLC On J une 30, 2009, the Bancorp completed the sale of a majority interest in its processing business, Vantiv Holding, LLC (now Worldpay Holding, LLC) . Advent International acquired an approximate 51% interest in Worldpay Holding, LLC for cash and a warrant. The Bancorp retained the remaining approximate 49% interest in Worldpay Holding, LLC. During the first quarter of 2012, Vantiv, Inc. (now Worldpay, Inc.) priced an IPO of its shares and contributed the net proceeds to Worldpay Holding, LLC for additional owne rship interests. As a result of this offering, the Bancorp’s ownership of Worldpay Holding, LLC was reduced to approximately 39%. The impact of the capital contributions to Worldpay Holding, LLC and the resulting dilution in the Bancorp’s interest resulted in a gain of $ 115 million recognized by the Bancorp in the first quarter of 2012. The Bancorp agreed during the fourth quarter of 2015 to cancel rights to purchase approximately 4.8 million Class C Units in Worldpay Holding, LLC, the wholly-owned principa l operating subsidiary of Worldpay, Inc., underlying the warrant in exchange for a cash payment of $200 million. Subsequent to this cancellation, the Bancorp exercised its right to purchase approximately 7.8 million Class C Units underlying the warrant at the $15.98 strike price. This exercise was settled on a net basis for approximately 5.4 million Class C Units, which were then exchanged for approximately 5.4 million shares of Worldpay, Inc. Class A Common Stock that were sold in the secondary offering. T he Bancorp recognized a gain of $89 million in other noninterest income on the 62% of the warrant that was settled or net exercised. Additionally, during the fourth quarter of 2015, the Bancorp exchanged 8 million Class B Units of Worldpay Holding, LLC for 8 million Class A Shares in Worldpay, Inc., which were also sold in the secondary offering and on which the Bancorp recognized a gain of $331 million in other noninterest income. During the fourth quarter of 2016, the Bancorp exercised its right to purcha se approximately 7.8 million Class C Units underlying the warrant at the $15.98 strike price. This exercise was settled on a net basis for approximately 5.7 million Class C Units, which were then exchanged for approximately 5.7 million shares of Worldpay, Inc. Class A Common Stock of which 4.8 million shares were sold in a secondary offering and 0.9 million shares were repurchased by Worldpay, Inc. The Bancorp recognized a gain of $ 9 million in other noninterest income in the Consolidated Statements of Inco me in 2016 on the exercise of the remaining warrant in Worldpay Holding, LLC. During the third quarter of 2017, the Bancorp and Fifth Third Bank entered into a transaction agreement with Worldpay, Inc. and Worldpay Holding, LLC under which Fifth Third Bank agreed to exercise its right to exchange 19.79 million of its Class B Units in Worldpay Holding, LLC for 19.79 million shares of Worldpay, Inc.’s Class A Common Stock and Worldpay, Inc. agreed to repurchase the newly issued shares of Class A Common Stock upon issue directly from Fifth Third Bank at a price of $ 64.04 per share, the closing share price of the Class A Common Stock on the New York Stock Exchange on August 4, 2017. As a result of these transactions, the Bancorp recognized a gain of approximatel y $1.0 billion in other noninterest income in the Consolidated Statements of Income during the third quarter of 2017. On January 16, 2018, Worldpay , Inc. completed its previously announced acquisition of Worldpay Group plc. with the resulting combined com pany named Worldpay, Inc. As a result of this transaction, the Bancorp recognized a gain of $414 million in other noninterest income in the Consolidated Statements of Income d uring the first quarter of 2018 associated with the dilution in its ownership int erest in Worldpay Holding, LLC from approximately 8.6% to approximately 4.9%. On June 27, 2018, the Bancorp completed the sale of 5 million shares of Class A common stock of Worldpay, Inc. The Bancorp had previously received these Class A shares in exchange for Class B Units of Worldpay Holding, LLC. The Bancorp recognized a gain of $205 million in other noninterest income in the Cons olidated Statements of Income related to the sale. The following table provides a summary of the transactions that impacted the Bancorp's ownership interest in Worldpay Holding, LLC after the initial IPO: Remaining Ownership ($ in millions) Gain on Transactions Percentage (a) Q4 2012 $ 157 33.1 % Q2 2013 242 27.7 Q3 2013 85 25.1 Q2 2014 125 22.8 Q4 2015 331 18.3 Q3 2017 1,037 8.6 Q1 2018 414 4.9 Q2 2018 205 3.3 (a) The Bancorp’s remaining investment in Worldpay Holding, LLC of $ 420 as of December 31, 2018 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. As of December 31, 2018 , the Bancorp continued to hold approximately 10.3 million Class B Units of Worldpay Holding, LLC which may be exchanged for Class A Common Stock of Worldpay, Inc., on a one-for-one basis or at Worldpay, Inc.’s option for cash which represented approximately 3.3% ownership of Worldpay Holding, LLC as of December 31, 2018 . In addition, th e Bancorp holds approximately 10.3 mil lion Class B Common Shares of Worldpay, Inc. which give the Bancorp voting rights, but no economic interest in Worldpay, Inc. These securities are subject to certain terms and restrictions. The Ban corp recognized $ 1 million, $47 million and $66 million, re spectively, in other noninterest income as part of its equity method investment in Worldpay Holding , LLC for the years ended December 31, 2018 , 2017 and 2016 and received cash distributions totaling $ 3 million , $ 19 million and $ 9 million during t he year s ended December 31, 2018 , 2017 and 2016 , respectively. Given the nature of Worldpay Holding, LLC’s structure as a limited liability company and contractual arrangements with Worldpay Holding, LLC, the Bancorp’s remaining investment in Worldpay Holding, LLC continues to be accounted for under the equity method of ac counting as of December 31, 2018 . During the fourth quarter of 2015, the Bancorp entered into an agreement with Worldpay , Inc. under which a portion of its TRA with Worldpay , Inc. was terminated and settled in full for a cash payment of approximately $49 million from Worldpay, Inc. Under the agreement, the Bancorp sold certain TRA cash flows it expected to receive from 2017 to 2030, totaling to a then estimated $140 million. Ap proximately half of the sold TRA cash flows related to 2025 and later. This sale did not impact the TRA payment recognized during the fourth quarter of 2015. During the third quarter of 2016, the Bancorp entered into a n agreement with Worldpay, Inc. under which a portion of its TRA with Worldpay, Inc. was terminated and settled in full for consideration of a cash payment in the amount of $116 million from Worldpay, Inc. Under the agreement, the Bancorp terminated and settled certain TRA cash flows it expect ed to receive in the years 2019 to 2035, totaling to a then estimated $331 million. The Bancorp recognized a gain of $116 million in other noninterest income in the Consolidated Statements of Income from this settlement. Additionally, the agreement provide s that Worldpay, Inc. may be obligated to pay up to a total of approximately $171 million to the Bancorp to terminate and settle certain remaining TRA cash flows, totaling to a then estimated $394 million, upon the exercise of certain call options by World pay, Inc. or certain put options by the Banc orp. In 2016, the Bancorp recognized a gain of $164 million in other noninterest income in the Consolidated Statements of Income associated with these options. The Bancorp received $ 63 million and $ 108 million in settlement for the call options and put options exercised during 2017 and 2018 , respectively. As of December 31, 2018 , there are no remaining call options or put options. This agreement did not impact the TRA payment recognized in the fourth quarter of 2017. In addition to the impact of the TRA termination s discussed above, the Bancorp recognized $20 million, $44 million and $ 33 million in other noninterest income in the Consolidated Statements of Income associated with the TRA during the years ended December 31, 2018 , 2017 and 2016 , respectively. The following table provides the estimated cash flows to be received as of December 31, 2018 associated with the TRA for the years ending December 31, 2019 and thereafter: Estimated Cash Flows to be Received not Subject ($ in millions) to Put/Call Option (a)(b) 2019 20 2020 29 2021 32 2022 33 2023 33 2024 34 2025 35 2026 36 Thereafter 357 Total $ 609 (a) The 2019 cash flow of $20 has been agreed upon with Worldpay, Inc., for settlement in January 2019 and was recognized as a gain in other noninterest income during the fourth quarter of 2018. The remaining estimated cash flows in this column (which include TRA benefits associated with the net exercise of the warrant in 2016, the subseque nt exchange of Worldpay Holding, LLC units in the third quarter of 201 7 and the subsequent exchange of World pay H olding, LLC units in the second quarter of 2018 ) will be recognized in future periods when the related uncertainties are resolved. (b) The estimated cash flows assume that Worldpay, Inc. has sufficient taxable income to utilize the tax deductions a ssociated with the TRA. The Bancorp and Worldpay Holding, LLC have various agreements in place covering services relating to the operations of Worldpay Holding, LLC. The services provided by the Bancorp to Worldpay Holding, LLC were initially required to support Worldpay Holding, LLC as a standalone entity during the deconversion period. The majority of services previously provided by the Bancorp to support Worldpay Holding, Inc. as a standalone entity are no longer necessary and are now limited to certain general business resources. Worldpay Holding, LLC paid the Bancorp $ 1 million for these services for each of the years ended December 31, 2018 , 2017 and 2016 . Other services provided to Worldpay Holding, LLC by the Bancorp, have continued beyond the deconversion period, include interchange clear ing, settlement and sponsorship. Worldpay Holding, LLC paid the Bancorp $ 7 5 million, $ 68 million and $ 58 million for these services for the years ended December 31, 2018 , 2017 and 2016 , respectively . In addition to the previously mentioned services, the Bancorp previously entered into an agreement under which Worldpay Holding, LLC will provide processing services to the Bancorp. The total amount of fees relating to the processing services provided to the Bancorp b y Worldpay Holding, LLC totaled $ 74 million, $ 7 2 million and $ 76 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. These fees are primarily reported as a component of card and processing expense in the Consolidated State ments of Income. As part of the initial sale, Worldpay Holding, LLC assumed loans totaling $ 1.25 billion owed to the Bancorp, which were refinanced in 2010 into a larger syndicated loan structure that included the Bancorp. The outstanding carrying value of loans to Worldpay Holding, LLC was $ 187 million and $ 2 03 million at December 31, 2018 and 2017 , respectively . Additionally, as of December 31, 2018 and 2017 , the Bancorp had derivative assets of an immaterial amount and $ 2 million, respectivel y, related to interest rate contracts entered into with Worldpay Holding, LLC which are included in other assets on the Consolidated Balance Sheets. Interest income relating to the loans was $ 7 million, $ 5 million and $ 4 million for the years ended Decembe r 31, 2018 , 2017 and 2016 , respectively, and is included in interest and fees on loans and leases in the Consolidated Statements of Income. Worldpay Holding, LLC’s unused line of credit was $ 74 million and $ 4 million as of December 31, 2018 an d 2017 , respectively . SLK Global Solutions Private Limited As of December 31, 2018 , the Bancorp owns 100% of Fifth Third Mauritius Holdings Limited, which owns 49 % of SLK Global Solutions Private Limited , and accounts for this investment under the equity method of accounting. The Bancorp recognized $ 2 million and $ 3 million in other noninterest income in the Consolidated Statements of Income as part of its equity method investment in SLK Global Solutions Private Limited for the year s ended December 31, 2018 and 2017 , respectively . The Bancorp did not receive cash distributions during both the year s ended December 31, 2018 and 2017 . The Bancorp’s investment in SLK Global Solutions Private Limited was $ 23 million and $ 22 million at December 31, 2018 and 2017 , respectively . The Bancorp paid SLK Global Solutions Private Limited $ 21 million, $ 21 million and $ 20 million for their process and software services during the years ended December 31, 2018 , 2017 and 2016 , respectively, which are included other noninterest expense in the Consolidated Statements of Income. CDC Investments The Bancorp’s subsidiary, CDC, has equity investments in entities in which the Bancorp had $ 83 million of loans outstanding at both De cember 31, 2018 and 2017 , and unfunded commitment balances of $ 80 million at both December 31, 2018 and 2017 . The Bancorp held $ 77 million and $ 26 million of deposits for these entities at December 31, 2018 and 2017 , respectively. For further information on CDC investments, refer to Note 10 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Income Taxes | 19 . INCOME TAXES The Bancorp and its subsidiaries file a consolidated federal income tax return. The following is a summary of applicable income taxes included in the Consolidated Statements of Income for the years ended December 31: ($ in millions) 2018 2017 2016 Current income tax expense (benefit): U.S. Federal income taxes $ 463 986 751 State and local income taxes 71 68 55 Foreign income taxes 8 (3) - Total current income tax expense 542 1,051 806 Deferred income tax expense (benefit): U.S. Federal income taxes 24 (254) (126) State and local income taxes 4 2 (14) Foreign income taxes 2 - (1) Total deferred income tax expense (benefit) 30 (252) (141) Applicable income tax expense $ 572 799 665 Current U.S. Federal income taxes above include proportional amortization for qualifying LIHTC investments of $ 154 million, $ 223 million and $ 153 million for the years ended December 31, 2018, 2017 and 2016, respectively. The following is a reconciliation between the statutory U.S. Federal income tax rate and the Bancorp’s effective tax rate for the years ended December 31: 2018 2017 2016 Statutory tax rate 21.0 % 35.0 35.0 Increase (decrease) resulting from: State taxes, net of federal benefit 2.1 1.5 1.2 Tax-exempt income (0.8) (1.1) (2.5) LIHTC investment and other tax benefits (6.8) (6.9) (9.4) LIHTC investment proportional amortization 5.6 7.4 6.9 Other tax credits (0.1) (0.4) (0.8) U.S. tax legislation impact on deferred taxes - (8.5) - Other, net (0.3) (0.2) (0.3) Effective tax rate 20.7 % 26.8 30.1 Other tax credits in the rate reconciliation table include New Markets, Rehabilitation Investment and Qualified Zone Academy Bond tax credits. Tax-exempt income in the rate reconciliation table includes interest on municipal bonds, interest on tax-exempt lending, income on life insurance policies held by the Bancorp, and certain gains on sales of leases that are exempt from federal taxation . On December 22, 2017, the U.S. government enacted comprehensive tax legislation known as the TCJA. The TCJA made bro ad and complex changes to the U.S. tax code including, but not limited to, reducing the federal statutory corporate tax rate from 35 percent to 21 percent beginning after December 31, 2017. U.S. GAAP requires the Bancorp to recognize the tax effects of changes in tax laws and rates on its deferred taxes in the period in which the law was enacted. As a result, for the year ended December 31, 2017, the Bancorp remeasured its deferred tax assets and liabilities and recognized an income tax benefit of approximately $ 253 million , as adjusted. The following table provides a reconciliation of the beginning and ending amounts of the Bancorp’s unrecognized tax benefits: ($ in millions) 2018 2017 2016 Unrecognized tax benefits at January 1 $ 34 24 13 Gross increases for tax positions taken during prior period 20 17 9 Gross decreases for tax positions taken during prior period (1) (1) - Gross increases for tax positions taken during current period 8 3 2 Settlements with taxing authorities (5) (7) - Lapse of applicable statute of limitations (1) (2) - Unrecognized tax benefits at December 31 (a) $ 55 34 24 (a ) With the exception of $5 in 2018 , all a mounts represent unrecognized tax benefits that, if recognized, would affect the annual effective tax rat e. The Bancorp’s unrecognized tax benefits as of December 31, 2018, 2017 and 2016 primarily relate to state income tax exposures from taking tax positions where the Bancorp believes it is likely that, upon examination, a state will take a position contrary to the position taken by the Bancorp. While it is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the Bancorp’s uncertain tax positions could increase or decrease during the next twelve months, the Bancorp be lieves it is unlikely that its unrecognized tax benefits will change by a material amount during the next twelve months. Deferred income taxes are comprised of the following items at December 31: ($ in millions) 2018 2017 Deferred tax assets: Allowance for loan and lease losses $ 232 251 Deferred compensation 79 77 Other comprehensive income 42 - Reserve for unfunded commitments 28 34 Reserves 28 29 State net operating loss carryforwards 7 9 Other 112 103 Total deferred tax assets $ 528 503 Deferred tax liabilities: Lease financing $ 599 616 Investments in joint ventures and partnership interests 131 85 MSRs and related economic hedges 107 111 State deferred taxes 73 68 Bank premises and equipment 60 42 Other comprehensive income - 21 Other 102 137 Total deferred tax liabilities $ 1,072 1,080 Total net deferred tax liability $ (544) (577) At December 31, 2018 and 2017, the Bancorp recorded deferred tax assets of $ 7 million and $ 9 million, respectively, related to state net operating loss carryforwards. The deferred tax assets relating to state net operating losses (primarily resulting from leasing operations) are presented net of specific valuation allowances of $ 25 million and $ 27 million at December 31, 2018 and 2017, respectively. If these carryforwards are not utilized, they will expire in varying amounts through 2037. The Bancorp has determined that a valuation allowance is not needed against the remaining deferred tax assets as of December 31, 2018 or 2017. The Bancorp considered all of the positive and negative evidence available to determine whether it is more likely than not that t he deferred tax assets will ultimately be realized and, based upon that evidence, the Bancorp believes it is more likely than not that the deferred tax assets recorded at December 31, 2018 and 2017 will ultimately be realized. The Bancorp reached this conc lusion as it is expected that the Bancorp’s remaining deferred tax assets will be realized through the reversal of its existing taxable temporary differences and its projected future taxable income. The IRS has concluded its examination of the Bancorp’s 2 014 federal income tax return and is currently examining the Bancorp’s 2015 and 2016 federal income tax returns. The statute of limitations for the Bancorp’s federal income tax returns remains open for tax years 2015-2018. On occasion, as various state and local taxing jurisdictions examine the returns of the Bancorp and its subsidiaries, the Bancorp may agree to extend the statute of limitations for a reasonable period of time. Otherwise, the statutes of limitations for state income tax returns remain open only for tax years in accordance with each state’s statutes. Any interest and penalties incurred in connection with income taxes are recorded as a component of income tax expense in the Consolidated Financial Statements. During the years ended December 31 , 2018, 2017 and 2016, the Bancorp recognized $ 1 million, $ 2 million and $ 1 million, respectively, of interest expense in connection with income taxes. At both December 31, 2018 and 2017, the Bancorp had accrued interest liabilities, net of the related tax benefits, of $ 3 million. No material liabilities were recorded for penalties related to income taxes. Retained earnings at December 31, 2018 and 2017 included $ 157 million in allocations of earnings for bad debt deductions of former thrift subsidiaries fo r which no income tax has been provided. Under current tax law, if certain of the Bancorp’s subsidiaries use these bad debt reserves for purposes other than to absorb bad debt losses, they will be subject to federal income tax at the current corporate tax rate. |
Retirement and Benefit Plans
Retirement and Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement and Benefit Plans | |
Retirement and Benefit Plans | 20 . RETIREMENT AND BENEFIT PLANS The Bancorp’s qualified defined benefit plan’s benefits were frozen in 1998, except for grandfathered employees. The Bancorp’s other retirement plans consist of non - qualified defined benefit plans which are frozen and funded on an as- needed basis. A majority of these plans were obtained in acquisitions from prior years and are included with the qualified defined benefit plan in the following tables (“the Plan”) . The Bancorp recognizes the overfunded and underfu nded status of the Plan as an ass et and l iability, respectively, in the Consolidated Balance Sheets. The overfunded and underfunded amounts recognized in other assets and accrued taxes, interest and expense, respectively, on the Consolidated Balance Sheets were as follows as of December 31: ($ in millions) 2018 2017 Prepaid benefit cost $ 1 - Accrued benefit liability (18) (24) Net underfunded status $ (17) (24) The following tables summarize the defined benefit retirement plans as of and for the years ended December 31: Plans with an overfunded status (a) ($ in millions) 2018 2017 Fair value of plan assets at January 1 $ 185 - Actual return on assets (6) - Settlement (9) - Benefits paid (6) - Fair value of plan assets at December 31 $ 164 - Projected benefit obligation at January 1 $ 188 - Interest cost 6 - Settlement (9) - Actuarial gain (16) - Benefits paid (6) - Projected benefit obligation at December 31 $ 163 - Overfunded projected benefit obligation at December 31 $ 1 - Accumulated benefit obligation at December 31 (b) $ 163 - The Bancorp’s qualified defined benefit plan had an overfunded status at December 31, 2018 . The Plan was underfunded at December 31, 2017 and is reflected in the underfunded status table. Since the Plan’s benefits are frozen, the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at December 31, 2018 . Plans with an underfunded status ($ in millions) 2018 2017 Fair value of plan assets at January 1 $ - 172 Actual return on assets - 28 Contributions 3 6 Settlement - (11) Benefits paid (3) (10) Fair value of plan assets at December 31 $ - 185 Projected benefit obligation at January 1 $ 21 206 Interest cost 1 8 Settlement - (11) Actuarial (gain) loss (1) 16 Benefits paid (3) (10) Projected benefit obligation at December 31 $ 18 209 Underfunded projected benefit obligation at December 31 $ (18) (24) Accumulated benefit obligation at December 31 (a) $ 18 209 Since the Plan’s benefits are frozen , the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2018 and 2017 . T he estimated net actuarial loss for the Plan that will be amortized from AOCI into net periodic benefit cost during 2019 is $ 6 million. The estimated net prior service cost for the Plan that will be amortized from AOCI into net periodic benefit cost during 2019 is immaterial to the Consolidated Financial Statements. The following table summarizes net periodic benefit cost and other changes in the Plan’s assets and benefit obligations recognized in OCI for the years ended December 31: ($ in millions) 2018 2017 2016 Components of net periodic benefit cost: Interest cost $ 7 8 9 Expected return on assets (11) (10) (11) Amortization of net actuarial loss 6 7 11 Settlement 3 4 7 Net periodic benefit cost $ 5 9 16 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial (gain) loss $ (1) (1) 2 Amortization of net actuarial loss (6) (7) (11) Settlement (3) (4) (7) Total recognized in other comprehensive income (10) (12) (16) Total recognized in net periodic benefit cost and other comprehensive income $ (5) (3) - Fair Value Measurements of Plan Assets The following tables summarize Plan assets measured at fair value on a recurring basis as of December 31: Fair Value Measurements Using (a) 2018 ($ in millions) Level 1 (d) Level 2 (d) Level 3 Total Fair Value Cash equivalents $ 25 - - 25 Mutual and exchange-traded funds 46 - - 46 Debt securities: U.S. Treasury and federal agencies securities 43 3 - 46 Mortgage-backed securities: Non-agency commercial mortgage-backed securities - 1 - 1 Asset-backed securities and other debt securities (b) - 18 - 18 Total debt securities $ 43 22 - 65 Total Plan assets, excluding collective funds $ 114 22 - 136 Collective funds (NAV) 28 (c) Total Plan assets $ 164 For further information on fair value hierarchy levels, refer to Note 1 . Includes corporate bond s. Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the fair value of Plan assets presented elsewhere within this footnote. During the year ended December 31, 2018 , no assets or liabilities were transferred between Level 1 and Level 2 . Fair Value Measurements Using (a) 2017 ($ in millions) Level 1 (d) Level 2 (d) Level 3 Total Fair Value Cash equivalents $ 7 - - 7 Equity securities 27 - - 27 Mutual and exchange-traded funds 92 - - 92 Debt securities: U.S. Treasury and federal agencies securities 9 3 - 12 Mortgage-backed securities: Non-agency commercial mortgage-backed securities - 1 - 1 Asset-backed securities and other debt securities (b) - 17 - 17 Total debt securities $ 9 21 - 30 Total Plan assets, excluding collective funds $ 135 21 - 156 Collective funds (NAV) 29 (c) Total Plan assets $ 185 For further information on fair value hierarchy levels, refer to Note 1 . Includes corporate bond s. Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the fair value of Plan assets presented elsewhere within this footnote. During the year ended December 31, 2017 , no assets or liabilities were transferred between Level 1 and Level 2 . The following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Cash equivalents Cash equivalents are comprised of money market mutual funds that invest in short-term money ma rket instruments that are issued and payable in U.S. dollars. The Plan measures its cash equivalent funds that are exchange-traded using the fund’s quoted price, which is in an active market. Ther efore, these investments are classified within Level 1 of the valuation hierarchy. Equity securities The P lan measures its common stock using the stock’s quoted price which is available in an active market . Therefore, these investments are classified with in Level 1 of the valuation hierarchy. Mutual and exchange- traded funds The Plan measures its mutual and exchange-traded funds, which are registered with the Securities and Exchange Commission, using the funds’ quoted prices which are available in an active market. Therefore, these investments are classified within Level 1 of the valuation hierarchy. The mutual and exchange-traded funds held by the Plan are open-ended funds and are required to publicly publish their NAV on a daily basis. The funds are also required to transact and use the daily NAV as a basis for transactions. Therefore, the NAV reflects the fair value of the Plan’s investment. Debt securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities. If quoted market prices are not available, the n fair values are estimated using pricing models, quoted prices of securities with similar characteristics, or DCFs. Examples of such instruments, which are classified within Level 2 of the valuation hierarchy, include non-agency commercial mortgage-backed securities and asset-backed securities and other debt securities. Collective funds Investments in collective funds are value d based upon the investee’s NAV or its equivalent as a practical expedient. NAV is determined by the fund’s management by dividing the fund’s net assets at fair value by the number of units outstanding at the valuation date. Investments valued using NAV as a practical expedient are not classified within the fair value hierarchy. Plan Assumptions The P lan ’s assumptions are evaluated annually and are updated as necessary. The discount rate assumption reflects the yield on a portfolio of high quality fixed-i ncome instruments that have a similar duration to the P lan’s liabilities. The expected long-term rate of return assumption reflects the average return expected on the assets invested to provide for the P lan’s liabilities. In determining the expected long-t erm rate of return, the Bancorp evaluated actuarial and economic inputs, including long-term inflation rate assumptions and broad equity and bond indices long-term return projections, as well as actual long-t erm historical plan performance. The following table summarizes the weighted-average plan assumptions for the years ended December 31: 2018 2017 2016 For measuring benefit obligations at year end: (a) Discount rate 4.10 % 3.47 3.97 Expected return on plan assets 6.00 6.00 7.00 For measuring net periodic benefit cost: (a) Discount rate 3.47 3.97 4.16 Expected return on plan assets 6.00 6.00 7.00 (a) Since the Plan’s benefits were frozen , except for grandfathered employees, the rate of compensation increase is no longer applicable beginning in 2014 since minimal grandfathered employees are still accruing benefits. Lowering both the expected rate of return on the plan assets and the discount rate by 0.25% would have increased the 2018 pension expense by approximately $ 1 million. Based on the actuarial assumptions, the Bancorp expects to contribute $ 2 million to the Plan in 2019 . Esti mated pension benefit payments are $ 17 million for 2019 and $ 16 million for each of the years 2020 through 2023 . The total estimated payments for the years 202 4 through 202 8 is $ 70 million. Investment Policies and Strategies T he Bancorp’s policy for the investment of P lan assets is to employ investment strategies that achieve a range of weighted-average target asset allocations relating to equity securities , fixed- income securities (including U.S. Treasury and federal agencies securities , mortgage-backed securities, asset-backed securities and corporate bonds ) , alternative strategies (including traditional mutual funds, precious metals and commodities) and cash. The following table provides the Bancorp’s targeted and actual weighted-average asset allocations by asset category for the years ended December 31: Targeted Range (b) 2018 2017 Equity securities 67 % 76 Bancorp common stock - 1 Total equity securities (a) 0-55 % 67 77 Fixed-income securities 50-100 23 16 Alternative strategies 0-5 3 3 Cash 0-100 7 4 Total 100 % 100 Includes mutual and exchange- traded funds . These reflect the targeted ranges for the year ended December 31, 2018 . The Bancorp’s investment policy was revised during the third quarter of 2018. The asset allocations as of December 31, 2018 were in line with the revised investment policy. Plan Management’s objective is to maintain the fully-funded status of the qualified defined benefit p lan while also minimizing the risk of excess assets. As a result, the portfolio assets of the qualified defined benefit plan will continue to increase the weighting of long duration fixed income, or liability matching assets, as the funded status increases. There were no significant concentrations of risk associated with the investments of th e Plan at December 31, 2018 and 2017 . Permitted asset classes of the Plan include c ash and cash equivalents, fixed- income (domestic and non-U.S. bonds), equities (U.S., non-U.S., emerging mark ets and real estate investment trusts ), equipment leasing and mortgages. The Plan utilizes derivative instruments including puts, calls, straddles or other option strategies , as approved by managemen t. Fifth Third Bank, as Trustee, is expected to manage P lan assets in a manner consistent with the P lan agreement and other regulatory, federal and state laws. As of December 31, 2018 and 2017 , $ 1 64 million and $ 185 million, respectively, of Plan ass ets were managed by Fifth Third Bank. The Fifth Third Bank Pension, 401(k) and Medical Plan Committee (the “Committee”) is the plan administrator. The Trustee is required to provide to the Committee monthly and quarterly reports covering a list of P lan ass ets, portfolio performance, transactions and asset allocation. The Trustee is also required to keep the Committee apprised of any material changes in the Trustee’s outlook and recommended investment policy. There were no fees paid by the Plan for investmen t management, accounting or administrative services provided by the Trustee. As of December 31, 2018 and 2017 , there was no Bancorp common stock in Plan assets. Plan assets are not expected to be returned to the Bancorp during 2019 . Other Informa tion on Retirement and Benefit Plans The Bancorp has a qualified defined contribution savings plan that allows participants to make voluntary 401(k) contributions on a pre-tax or Roth basis, subject to statutory limitations. The Bancorp amended and restated the qualified defined contribution savings plan in its entirety, effective as of January 1, 2015. Beginning with the 2015 plan year, the Bancorp provides a higher company 401(k) match contribution. Expenses recognized for matching contributions to the Bancorp’s qualified defined contribution savings plan were $ 83 million, $ 79 million and $ 75 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The Bancorp did not make profit sharing contributions during the years en ded December 31, 2018 , 2017 and 2016 . In addition, the Bancorp has a non-qualified defined contribution plan that allows certain employees to make voluntary contributions into a deferred compensation plan. Expenses recognized by the Bancorp for its non-q ualified defined contribution plan were $ 4 million for both of the years ended December, 31 2018 and 2017 and $ 3 million for the year ended December 31, 2016 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | 21 . ACCUMULATED OTHER COMPREHENSIVE INCOME The tables below present the activity of the components of OCI and AOCI for the years ended December 31: Total OCI Total AOCI Pre-tax Tax Net Beginning Net Ending 2018 ($ in millions) Activity Effect Activity Balance (a) Activity Balance Unrealized holding losses on available-for-sale debt securities arising during the year $ (483) 112 (371) Reclassification adjustment for net losses on available-for-sale debt securities included in net income 11 (2) 9 Net unrealized losses on available-for-sale debt securities (472) 110 (362) 135 (362) (227) Unrealized holding gains on cash flow hedge derivatives arising during the year 214 (45) 169 Reclassification adjustment for net losses on cash flow hedge derivatives included in net income 2 - 2 Net unrealized gains on cash flow hedge derivatives 216 (45) 171 (11) 171 160 Net actuarial gain arising during the year 1 - 1 Reclassification of amounts to net periodic benefit costs 9 (2) 7 Defined benefit pension plans, net 10 (2) 8 (53) 8 (45) Total $ (246) 63 (183) 71 (183) (112) The Bancorp’s AOCI balance was adjusted as of January 1, 2018 to reflect the adoption of new accounting standards. Refer to Note 1 for additional information. Total OCI Total AOCI Pre-tax Tax Net Beginning Net Ending 2017 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during the year $ 14 7 21 Reclassification adjustment for net losses on available-for-sale securities included in net income 3 1 4 Net unrealized gains on available-for-sale securities 17 8 25 101 25 126 Unrealized holding losses on cash flow hedge derivatives arising during the year (11) 4 (7) Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (19) 7 (12) Net unrealized losses on cash flow hedge derivatives (30) 11 (19) 10 (19) (9) Net actuarial gain arising during the year 1 - 1 Reclassification of amounts to net periodic benefit costs 11 (4) 7 Defined benefit pension plans, net 12 (4) 8 (52) 8 (44) Total $ (1) 15 14 59 14 73 Total OCI Total AOCI Pre-tax Tax Net Beginning Net Ending 2016 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding losses on available-for-sale securities arising during the year $ (196) 66 (130) Reclassification adjustment for net gains on available-for-sale securities included in net income (11) 4 (7) Net unrealized gains on available-for-sale securities (207) 70 (137) 238 (137) 101 Unrealized holding gains on cash flow hedge derivatives arising during the year 30 (11) 19 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (48) 17 (31) Net unrealized gains on cash flow hedge derivatives (18) 6 (12) 22 (12) 10 Net actuarial loss arising during the year (2) 1 (1) Reclassification of amounts to net periodic benefit costs 18 (6) 12 Defined benefit pension plans, net 16 (5) 11 (63) 11 (52) Total $ (209) 71 (138) 197 (138) 59 The table below presents reclassifications out of AOCI for the years ended December 31: Consolidated Statements of Components of AOCI: ($ in millions) Income Caption 2018 2017 2016 Net unrealized (losses) gains on available-for-sale debt securities: (b) Net (losses) gains included in net income Securities (losses) gains, net $ (11) (3) 11 Income before income taxes (11) (3) 11 Applicable income tax expense 2 (1) (4) Net income (9) (4) 7 Net unrealized (losses) gains on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases (2) 19 48 Income before income taxes (2) 19 48 Applicable income tax expense - (7) (17) Net income (2) 12 31 Net periodic benefit costs: (b) Amortization of net actuarial loss Employee benefits expense (a) (6) (7) (11) Settlements Employee benefits expense (a) (3) (4) (7) Income before income taxes (9) (11) (18) Applicable income tax expense 2 4 6 Net income (7) (7) (12) Total reclassifications for the period Net income $ (18) 1 26 This AOCI component is included in the computation of net periodi c benefit cost. Refer to Note 20 f or information on the computation of net periodic benefit cost. Amounts in parentheses indicate reductions to net income. |
Common, Preferred and Treasury
Common, Preferred and Treasury Stock | 12 Months Ended |
Dec. 31, 2018 | |
Common, Preferred and Treasury Stock | |
Common, Preferred and Treasury Stock | 22 . COMMON , PREFERRED AND TREASURY STOCK The table presents a summary of the share activity within common, preferred and treasury stock for the years ended: Common Stock Preferred Stock Treasury Stock ($ in millions, except share data) Value Shares Value Shares Value Shares December 31, 2015 $ 2,051 923,892,581 $ 1,331 54,000 $ (2,764) 138,812,267 Shares acquired for treasury - - - - (668) 34,633,221 Impact of stock transactions under stock compensation plans, net - - - - (4) 42,357 Other - - - - 3 (74,563) December 31, 2016 $ 2,051 923,892,581 $ 1,331 54,000 $ (3,433) 173,413,282 Shares acquired for treasury - - - - (1,588) 58,493,506 Impact of stock transactions under stock compensation plans, net - - - - 16 (1,693,503) Other - - - - 3 (125,597) December 31, 2017 $ 2,051 923,892,581 $ 1,331 54,000 $ (5,002) 230,087,688 Shares acquired for treasury - - - - (1,494) 49,967,134 Impact of stock transactions under stock compensation plans, net - - - - 23 (2,698,451) Other - - - - 2 (94,647) December 31, 2018 $ 2,051 923,892,581 $ 1,331 54,000 $ (6,471) 277,261,724 Preferred Stock—Series J On June 5, 201 4 , the Bancorp issued, in a registered public offering, 300,000 depositary shares, representing 12,000 shares of 4.90% fixed to floating-rate non-cumulative Series J perpetual preferred stock, for net proceeds of $ 297 million. Each preferred share has a $ 25,000 liquidation preference. The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 4.90% through but excluding September 30, 2019 , at which time it converts to a quarte rly floating - rate divi dend of three-month LIBOR plus 3.129 %. Subject to any required regulatory approval, the Bancorp may redeem the Series J preferred shares at its option , in whole or in part, at any time on or after September 30, 2019, or any time prior following a regulatory capital ev ent . The Series J preferred shares are not convertible into Bancorp common shares or any other securities. Preferred Stock—Series I On December 9, 2013, the Bancorp issued, in a registered public offering, 18,000,000 depo sitary shares, representing 18,000 shares of 6.625% fixed to floating-rate non-cumulative Series I perpetual preferred stock, for net proceeds of $ 441 million. Each preferred share has a $ 25,000 liquidation preference. The preferred stock accrues dividends , on a non-cumulative quarterly basis, at an annual rate of 6.625% through but excluding December 31 , 2023, at which time it converts to a quarterly floating - rate divi dend of three-month LIBOR plus 3.71 % . Subject to any required regulatory approval, the Ba ncorp may redeem the Series I preferred shares at its option in whole or in part, at any time on or after December 31 , 2023 and may redeem in whole but not in part, following a regulatory capital ev ent at any time prior to December 31, 2023 . The Series I p referred shares are not convertible into Bancorp common shares or any other securities. Preferred Stock—Series H On May 1 6 , 2013, the Bancorp issued , in a registered public offering , 600,000 depositary shares, representing 24,000 shares of 5.10% fixed to floating - rate non-cumulative Series H perpetual p referred stock, for net proceeds of $ 593 million. Each preferred share has a $ 25,000 liquidation preference. The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 5.10% through but excluding June 30, 2023, at which time it converts to a quarterly floating - rate dividend of three-month LIBOR plus 3.033% . Subject to any required regulatory approval, the Bancorp may redeem the Series H preferred shares at its option in whole or in part, at any time on or after June 30, 2023 and may redeem in whole but not in part, following a regulatory capital event at any time prior to June 30, 2023 . The Series H preferred shares are not convertible into Bancorp common shares or any o ther securities. Treasury Stock On February 27, 2018 , the Board of Directors authorized the Bancorp to repurchase up to 100 million common shares in the open market or in privately negotiated transactions a nd to utilize any derivative or similar instrument to effec t share repurchase transactions . This share repurchase authorization replaced the Board’s previous authorization from March of 201 6. On June 29, 2016, the Bancorp announced the results of its capital plan submitted to the FRB as part of the 2016 CCAR. The FRB indicated to the Bancorp that it did not object to the potential repurchase of $ 660 million of common shares with the additional ability to repurchase common shares in an amount equal to any after-tax gains realized by the Bancorp fr om the sale of Vantiv, Inc. common stock or from the termination and settlement of any portion of the TRA with Vantiv, Inc., if executed, for the period beginning July 1, 2016 and ending June 30, 2017. On June 28, 2017, the Bancorp announced the results of its capital plan submitted to the FRB as part of the 2017 CCAR. The FRB indicated to the Bancorp that it did not object to the potential repurchase of $ 1.161 billion of common shares with the additional ability to repurchase common shares in an amount equ al to any after-tax gains realized by the Bancorp from the sale of Vantiv, Inc. common stock or from the termination and settlement of any portion of the TRA with Vantiv , Inc., if executed, for the period beginning July 1, 2017 and ending June 30, 2018. On June 28, 2018, the Bancorp announced the results of its capital plan submitted to the FRB as part of the 2018 CCAR. The FRB indicated to the Bancorp that it did not object to t he potential repurchase of $ 1.65 1 billion of common shares with the additional ability to repurchase common shares in an amount equal to any after-tax gains realized by the Bancorp from the sale of Worldpay , Inc. common stock or from the termination and settlement of any portion of the TRA with Worldpay, Inc., if executed, for the pe riod beginning July 1, 201 8 and ending June 30, 201 9 . On May 21, 2018, the Bancorp announced the planned acquisition of MB Financial , Inc . As a result of this transaction, the FRB required the Bancorp to resubmit its CCAR plan recognizing the pro forma im p act of the combined Fifth Third/ MB Financial , Inc. post-merger entity. On October 5, 2018, Fifth Third resubmitted its capital plan to the FRB. On December 27, 2018, the FRB indicated to the Bancorp that it did not object to the resubmitted capital plan. The resubmitted capital plan called for no change to the originally submitted total capital actions over the 2018 CCAR approval horizon (the third quarter of 2018 through the second quarter of 2019). However, the share repurchase authority increased from $1.651 billion to $1.81 billion as a result of after-tax gains related to the sale of Worldpay, Inc. common stock . The Bancorp entered into a number of accelerated share repurchase transaction s during the years ended December 31, 2018 and 2017 . As part of these transaction s , the Bancorp entered into forward contracts in which the final number of shares delivered at settlement was based generally on a disco unt to the average daily volume weighted- average price of the Bancorp’s common stock during the term of the se repurchase a greements. T he accelerated share repurchases were treated as two separate transactions : (i) the repurchase of treasury shares on the repurchase date and (ii) a forward contract indexed to the Bancorp’s common stock. The following table presents a summary of the Bancorp's accelerated share repurchase transactions that were entered into or settled during the years ended December 31, 2018 and 2017: Shares Repurchased on Shares Received from Total Shares Repurchase Date Amount ($ in millions) Repurchase Date Forward Contract Settlement Repurchased Settlement Date December 20, 2016 155 4,843,750 1,044,362 5,888,112 February 6, 2017 May 1, 2017 342 11,641,971 2,248,250 13,890,221 July 31, 2017 August 17, 2017 990 31,540,480 4,291,170 35,831,650 December 18, 2017 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 Open Market Share Repurchase Transactions Between July 20, 2018 and August 2, 2018, the Bancorp repurchased 16,945,020 shares, or approximately $ 500 million, of its outstanding common stock through open market repurchase transactions, which settled between July 24, 2018 and August 6, 2018. Between October 2 4 , 2018 and November 9 , 2018, the Bancorp repurchased 1 4 ,9 16 , 332 shares, or approximately $ 4 00 million, of its outstanding c ommon stock through open mar ket repurchase transactions, which settled between October 2 6 , 2018 and November 14 , 2018. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Stock-Based Compensation | |
Stock-Based Compensation | 23 . STOCK-BASED COMPENSATION The Bancorp has histori cally emphasized employee stock ownership. The following table provides detail of the number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance under all of the Bancorp’s equity compensation plans approved by shareholders as of December 31, 2018 : Plan Category (shares in thousands) Number of Shares to be Issued Upon Exercise Weighted-Average Exercise Price Per Share Shares Available for Future Issuance Equity compensation plans 13,290 (a) SARs (b) - (a) RSAs 868 - (a) RSUs 8,020 - (a) PSAs (c) - (a) Employee stock purchase plan 5,181 (d) Total shares 8,888 18,471 Under the 2017 Incentive Compensation Plan, 17.5 million shares were authorized for issuance as SARs, RSAs, RSUs, stock options, performance share or unit awards, dividend or dividend equivalent rights and stock awards . The number of shares to be issued upon exercise will be determined at exercise based on the difference between the gra nt price and the market price on the date of exercise and the calculation of taxes owed on the exercise . The number of shares to be issued is dependent upon the Bancorp achieving certain predefined performance targets and ranges from zero shares to approximately 2 million shares. Represents remaining shares of Fifth Third common stock under the Bancorp’s 1993 Stock Purchase Plan, as amended and restated, including an additional 1.5 million shares approved by shareholders on March 28, 2007 and an additiona l 12 million shares approved by shareholders on April 21, 2009 . Stock-based awards are eligible for issuance under the Bancorp’s Incentive Compensation Plan to executives, directors and key employees of the Bancorp and its subsidiaries. The 2017 Incentive Compensation Plan was approved by shareholders on April 18, 2017 and authorized the issuance of up to 6 million shares, in addition to the 11.5 million unused shares from the 2014 Incentive Compensation Plan, as equity compensation and provides for SARs, RSAs, RSUs, stock options, performance share or unit awards, dividend or dividend equivalent rights and stock awards. Based on total stock-based awards outstanding (including SARs, RSAs, RSUs and PSAs) and shares remaining for future grants under the 20 17 Incentive Compensation Plan, the potential dilution to which the Bancorp’s shareholders of common stock are exposed due to the potential that stock-based compensation will be awarded to executives, directors or key employees of the Bancorp and its subsidiaries is 8 %. SARs , RSAs, RSUs and PSAs outstanding represent 6 % of the Bancorp’s issued shares at December 31, 2018 . All of the Bancorp’s stock-based awards are to be settled with stock. The Bancorp has historically used treasury stock to settle stock-based awards, when available. SARs, issued at fair value based on the closing price of the Bancorp’s common stock on the date of grant, have up to ten year terms and vest and b ecome exercisable ratably over a three or four year period of continued employment . The Bancorp does not grant discounted SARs or stock options , re-price previousl y granted SARs or stock options or grant reload stock options. RSAs and RSUs are released after three or four years or ratably over three or four years of continued employment . RSAs include dividend and voting rights while RSUs receive dividend equivalents only . Stock options were previously issued at fair value based on the closing price of the Bancorp’s common stock on the date of grant, had up to ten year terms and vested and became fully exercisable ratably over a three or four year period of continued employment. PSAs have three year cliff vesting terms with market conditions and/or performance conditions as defined by the plan. All of the Bancorp’s executive stock-based awards contain an annual performance hurdle of 2% return on tan gible common equity. If this threshold is not met in any one of the three years during the performance period, one-third of PSAs are forfeited. Additionally, i f this threshold is not met , all SARs, RSAs and RSUs that would vest in the next year may also be forfeited at the discretion of the Human Capital and Compensation Committee of the Board of Directors. The Bancorp met this threshold as of December 31, 2018 . Stock-based compensation expense was $ 127 million, $ 11 8 million and $ 1 11 million for the yea rs ended December 31, 2018 , 2017 and 2016 , r espectively, and is included in salaries, wages and incentives in the Consolidated Statements of Income. The total related income tax benefit recognized was $ 27 million, $ 41 million and $ 39 million for the years ended December 31 , 2018 , 2017 and 2016 , respectively. Stock Appreciation Rights The Bancorp uses assumptions, which are evaluated and revised as necessary, in estimating the grant-date fair value of each SAR grant. The weighted-average assumptions were as follows for the years ended December 31: 2018 2017 2016 Expected life (in years) 7 6 6 Expected volatility 35 % 37 37 Expected dividend yield 1.9 2.1 3.1 Risk-free interest rate 2.6 2.1 1.5 The expected life is generally derived from historical exercise patterns and represents the amount of time that SARs granted are expected to be outstanding. The expected volatility is based on a combination of historical and implied volatilities of the Bancorp’s common stock. The expected dividend yield is based on annual dividends divided by the Bancorp’s stock price. Annual dividends are based on projected dividends, estimated using a n expected long-term dividend payout ratio, over the estimated life of the awards. The risk-free interest rate for periods within th e contractual life of the SARs is based on the U.S. Trea sury yield curve in effect at the time of grant. The grant-date fair value of SARs is measured using the Black-Scholes option-pricing model. The weighted-average grant-date fair value of SARs granted was $ 11.33 , $ 8.55 and $ 5.16 per share for the years en ded December 31, 2018 , 2017 and 2016 , respectively. The total grant-date fair value of SARs that vested during the years ended December 31, 2018 , 2017 and 2016 was $ 26 million , $ 29 million and $ 32 million , respectively. At December 31, 2018 , there was $ 17 million of stock -based compensation expense related to outstanding SARs not yet recognized. The expense is expected to be recognized over a n estimated remaining weighted -ave rage period at December 31, 2018 of 1.7 years . 2018 2017 2016 Weighted- Weighted- Weighted- Number of SARs Average Grant Number of SARs Average Grant Number of SARs Average Grant SARs (in thousands, except per share data) Price Per Share Price Per Share Price Per Share Outstanding at January 1 31,929 $ 17.22 40,041 $ 18.30 44,129 $ 19.14 Granted 272 33.15 3,672 26.52 6,379 17.68 Exercised (5,058) 16.96 (6,953) 16.00 (6,291) 14.47 Forfeited or expired (947) 20.93 (4,831) 35.08 (4,176) 32.02 Outstanding at December 31 26,196 $ 17.30 31,929 $ 17.22 40,041 $ 18.30 Exercisable at December 31 20,132 $ 15.90 21,403 $ 15.30 26,898 $ 18.28 The following table summarizes outstanding and exercisable SARs by grant price per share at December 31, 2018: Outstanding SARs Exercisable SARs Weighted- Weighted- Weighted- Average Remaining Weighted- Average Remaining Number of Average Grant Contractual Life Number of Average Grant Contractual Life SARs (in thousands, except per share data) SARs Price Per Share (in years) SARs Price Per Share (in years) Under $10.00 1,426 $ 3.96 0.3 1,441 $ 3.96 0.3 $10.01-$20.00 19,145 16.10 4.7 15,631 15.67 4.1 $20.01-$30.00 5,353 24.33 6.8 3,060 22.69 5.9 $30.01-$40.00 272 33.15 9.1 - - - All SARs 26,196 $ 17.30 4.9 20,132 $ 15.90 4.1 Restricted Stock Awards The total grant-date fair value of RSAs that were released during the years ended December 31, 2018 , 2017 and 2016 was $ 27 million , $ 39 million and $ 55 million, respectively. At December 31, 2018 , there was $ 4 million of stock-based c ompensation expense related to outstanding RSAs not yet recognized. The expense is expected to be recognized over an estimated remaining weighted-average period at December 31, 2018 of 0.5 years . 2018 2017 2016 Weighted-Average Weighted-Average Weighted-Average Grant-Date Grant-Date Grant-Date Fair Value Fair Value Fair Value RSAs (in thousands, except per share data) Shares Per Share Shares Per Share Shares Per Share Outstanding at January 1 2,321 $ 19.72 4,638 $ 19.44 8,281 $ 18.88 Granted - - 7 21.14 3 20.65 Released (1,347) 20.09 (2,063) 19.10 (3,090) 17.92 Forfeited (106) 19.40 (261) 19.75 (556) 19.20 Outstanding at December 31 868 $ 19.18 2,321 $ 19.72 4,638 $ 19.44 The following table summarizes outstanding RSAs by grant-date fair value at December 31, 2018: Outstanding RSAs Weighted-Average Remaining Contractual Life RSAs (in thousands) Shares (in years) $15.01-$20.00 775 0.5 Over $20.00 93 0.5 All RSAs 868 0.5 Restricted Stock Units The total grant-date fair value of RSUs that were released during the years ended December 31, 2018 , 2017 and 2016 was $ 42 million , $ 21 million and $ 2 million, respectively. At December 31, 2018 , there was $ 115 million of stock-based compensation expense related to outstanding RSUs not yet recognized. The expense is expected to be recognized over an estimated remaining weighted-average period at December 31, 2018 of 2.4 years . 2018 2017 2016 Weighted-Average Weighted-Average Weighted-Average Grant-Date Grant-Date Grant-Date Fair Value Fair Value Fair Value RSUs (in thousands, except per unit data) Units Per Unit Units Per Unit Units Per Unit Outstanding at January 1 6,986 $ 22.25 5,086 $ 17.84 371 $ 19.56 Granted 3,674 32.84 3,652 26.71 5,029 17.75 Released (1,977) 21.15 (1,194) 17.64 (79) 19.76 Forfeited (663) 26.45 (558) 21.02 (235) 17.89 Outstanding at December 31 8,020 $ 27.04 6,986 $ 22.25 5,086 $ 17.84 The following table summarizes outstanding RSUs by grant-date fair value at December 31, 2018: Outstanding RSUs Weighted-Average Remaining Contractual Life RSUs (in thousands) Units (in years) $10.01-$15.00 201 0.1 $15.01-$20.00 1,799 0.7 $20.01-$25.00 191 0.5 $25.01-$30.00 2,489 1.2 $30.01-$35.00 3,340 1.6 All RSUs 8,020 1.2 Stock O ptions The grant-date fair value of stock option s is measured using the Black-Scholes option-pricing model. There were no stock options granted during the years ended December 31, 2018 , 2017 and 2016 . The total intrinsic value of stock options exercised was immaterial for the years ended December 31, 2018 , 2017 and 2016 . Cash received from stock options exercised was immaterial for both the years ended December 31, 2018 and 2017 and $ 1 million for the year ended December 31, 2016 . The tax benefit realized from exercised stock options was immaterial to the Bancorp’s Consolidated Financial Statements during the years ended December 31, 2018 , 2017 and 2016 . All stock options were vested as of Dec ember 31, 2008, therefore, no stock options vested during the years ended December 31, 2018 , 2017 or 2016 . As of December 31, 2018 , the aggregate intrinsic value of both outstanding stock options and exercisable stock options was zero . 2018 2017 2016 Weighted-Average Weighted-Average Weighted-Average Number of Exercise Price Number of Exercise Price Number of Exercise Price Stock Options (in thousands, except per share data) Options Per Share Options Per Share Options Per Share Outstanding at January 1 2 $ 16.50 25 $ 19.17 119 $ 14.97 Exercised (1) 8.59 (18) 14.05 (94) 13.86 Forfeited or expired (1) 24.41 (5) 40.98 - - Outstanding at December 31 - $ - 2 $ 16.50 25 $ 19.17 Exercisable at December 31 - $ - 2 $ 16.50 25 $ 19.17 Other Stock-Ba sed C ompensation PSAs are payable contingent upon the Bancorp achieving certain predefined performance targets over the three -year measurement period. Awards granted during the years ended December 31, 2018 , 2017 and 2016 will be entirely settled in stock. The performance targets are based on the Bancorp’s performance relative to a defined peer group. PSAs use a performance-based metric based on return on tangible common equity in relation to peers. During the years ended December 31, 2018 , 2017 and 2016 , 279,568 , 407,069 and 583,608 PSAs, respectively, were granted by the Bancorp. These awards were granted at a weighted-average grant-date fair value of $ 33.15 , $ 26.52 and $ 14.87 per unit during the years ended December 31, 2018 , 2017 and 2016 , respectively. The Bancorp sponsors a n employee stock purchase plan that allows qualifying employees to purchase shares of the Bancorp’s common stock with a 15 % match. During the years ended December 31, 2018 , 2017 and 2016 , there were 471,818 , 475,466 and 684,885 shares, respectively, purchased by participants and the Bancorp recognized stock-based compensation expense of $ 2 million, $1 million and $ 1 million in each of the respective year s . |
Other Noninterest Income and Ot
Other Noninterest Income and Other Noninterest Expense | 12 Months Ended |
Dec. 31, 2018 | |
Other Noninterest Income | |
Other Noninterest Income and Other Noninterest Expense | 24 . OTHER NONINTEREST INCOME AND OTHER NONINTEREST EXPENSE The following table presents the major components of other noninterest income and other noninterest expense for the years ended December 31: ($ in millions) 2018 2017 2016 Other noninterest income: Gain related to Vantiv, Inc.'s acquisition of Worldpay Group plc. $ 414 - - Gain on sale of Worldpay, Inc. shares 205 1,037 - Operating lease income 84 96 102 Private equity investment income 63 36 11 BOLI income 56 52 53 Cardholder fees 56 54 46 Consumer loan and lease fees 23 23 23 Banking center income 21 20 20 Income from the TRA associated with Worldpay, Inc. 20 44 313 Insurance income 20 8 11 Net gains (losses) on loan sales 2 (2) 10 Equity method income from interest in Worldpay Holding, LLC 1 47 66 Loss on swap associated with the sale of Visa, Inc. Class B Shares (59) (80) (56) Net losses on disposition and impairment of bank premises and equipment (43) - (13) Valuation adjustments on the warrant associated with Worldpay Holding, LLC - - 64 Gain on sales of certain retail branches - - 19 Gain on sale and exercise of the warrant associated with Worldpay Holding, LLC - - 9 Other, net 24 22 10 Total other noninterest income $ 887 1,357 688 Other noninterest expense: Marketing $ 147 114 104 FDIC insurance and other taxes 119 127 126 Loan and lease 112 102 110 Operating lease 76 87 86 Professional service fees 67 83 61 Losses and adjustments 61 59 73 Data processing 57 58 51 Travel 52 46 45 Postal and courier 35 42 46 Recruitment and education 32 35 37 Donations 21 28 23 Supplies 13 14 14 Insurance 13 12 15 (Gain) loss on partnership investments (4) 14 25 (Benefit from) provision for the reserve for unfunded commitments (30) - 23 Other, net 219 186 187 Total other noninterest expense $ 990 1,007 1,026 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share | |
Earnings Per Share | 25 . EARNINGS PER SHARE The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the years ended December 31: 2018 2017 2016 Average Per Share Average Per Share Average Per Share ($ in millions, except per share data) Income Shares Amount Income Shares Amount Income Shares Amount Earnings Per Share: Net income available to common shareholders 2,118 2,105 1,472 Less: Income allocated to participating securities 23 23 15 Net income allocated to common shareholders $ 2,095 673 3.11 2,082 728 2.86 1,457 757 1.92 Earnings Per Diluted Share: Net income available to common shareholders $ 2,118 2,105 1,472 Effect of dilutive securities: Stock-based awards - 12 - 13 - 7 Net income available to common shareholders 2,118 2,105 1,472 plus assumed conversions Less: Income allocated to participating securities 23 23 15 Net income allocated to common shareholders plus assumed conversions $ 2,095 685 3.06 2,082 741 2.81 1,457 764 1.91 Shares are excluded from the computation of earnings per diluted share when their inclusion has an anti-dilutive effect on earnings per share. The diluted earnings per share computation for the years ended December 31, 2018 , 2017 and 2016 excludes 3 million , 4 million and 19 million, respectively, of SAR s . The diluted earnings per share computation for the years ended December 31, 2017 and 2016 excludes an immaterial amount of stock options because their inclusion would have been ant i-dilutive. The diluted earnings per share computation for the year ended December 31, 2017 excludes the impact of the forward contract related to the December 19, 2017 accelerated share repurchase transaction . B ased upon the average daily volume we ighted - average price of the Bancorp’s common stock during the fourth quarter of 2017 , the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward contract as of December 31, 2017 , and th us the impact of the forward contract related to the accelerated share repurchase transaction would have been anti-dilutive to earnings per share. The diluted earnings per share computation for the year ended December 31, 2016 excludes the impact of t he forward contract related to the December 20 , 2016 accelerated share repurchase transaction . B ase d upon the average daily volume weighted - average price of the Bancorp’s common stock during the fourth quarter of 2016 , the counterparty to the trans action would have been required to deliver additional shares for the settlement of the forward contract as of December 31, 2016 , and thus the impact of the forward contract related to the accelerated share repurchase transaction would have been anti-dilutive to earnings per share. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurements | |
Fair Value Measurements | 26 . FAIR VALUE MEASUREMENTS The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. For more information regarding the fair value hierarchy and how the Bancorp measures fair value, refer to Note 1 . Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables summarize assets and liabilities measured at fair value on a recurring basis as of: Fair Value Measurements Using December 31, 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 $ 97 - - 97 Obligations of states and political subdivisions securities - 2 - 2 Mortgage-backed securities: Agency residential mortgage-backed securities - 16,247 - 16,247 Agency commercial mortgage-backed securities - 10,650 - 10,650 Non-agency commercial mortgage-backed securities - 3,267 - 3,267 Asset-backed securities and other debt securities - 2,015 - 2,015 Available-for-sale debt and other securities (a) 97 32,181 - 32,278 Trading debt securities: U.S. Treasury and federal agencies securities - 16 - 16 Obligations of states and political subdivisions securities - 35 - 35 Agency residential mortgage-backed securities - 68 - 68 Asset-backed securities and other debt securities - 168 - 168 Trading debt securities - 287 - 287 Equity securities 452 - - 452 Residential mortgage loans held for sale - 537 - 537 Residential mortgage loans (b) - - 179 179 Commercial loans held for sale - 7 - 7 MSRs - - 938 938 Derivative assets: Interest rate contracts - 648 7 655 Foreign exchange contracts - 152 - 152 Commodity contracts 93 214 - 307 Derivative assets (d) 93 1,014 7 1,114 Total assets $ 642 34,026 1,124 35,792 Liabilities: Derivative liabilities: Interest rate contracts $ 8 313 8 329 Foreign exchange contracts - 142 - 142 Equity contracts - - 125 125 Commodity contracts 19 259 - 278 Derivative liabilities (e) 27 714 133 874 Short positions (e) 110 28 - 138 Total liabilities $ 137 742 133 1,012 Excludes FHLB, FRB and DTCC restricted stock holdings totaling $ 184 , $ 366 and $ 2 , respectively, at December 31, 2018 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . During the year ended December 31, 2018 , no assets or liabilities were transferred between Level 1 and Level 2 . Included in other assets in the Consolidated Balance Sheets. Included in other liabilities in the Consolidated Balance Sheets. Fair Value Measurements Using December 31, 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 Consolidated Balance Sheets. Included in other liabilities in the Consolidated Balance Sheet s. The following is a description of the valuation methodologies used for significant instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Available-for-sale debt and other securities, trading debt securities and equity securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities and equity 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, residential mortgage-backed securities, agency and non-agency commercial mortgage-backed securities, asset-backed securities and other debt securities and equity securities . These securities are generally valued using a market a pproach 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 mort gage-backed securities prices and spreads to those prices or, for certain ARM loans, DCF models that may incorporate the anticipated portfolio composition, credit spreads of asset-backed securities with similar collateral and market conditions. The anticip ated portfolio composition includes the effect of interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. Residential mortgage loans held for sale th at are 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 classified within Level 2 of t he valuation hierarchy due to the use of observable inputs in the DCF model. These observable inputs include interest rate spreads from agency mortgage-backed securities market rates and observable discount rates. Residential mortgage loans Residential mortgage loans held for sale that are reclassified to held for investment are transferred from Level 2 to Level 3 of the fair value hierarchy. It is the Bancorp’s policy to value any transfers between levels of the fair value hierarchy based on end of per iod 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 Marketing d epartment, which reports to the Bancorp’s Head of the Consumer Bank , in conjunction with the Consumer Credit Risk d epartment, which reports to the Bancorp’s Chief Risk Officer, are responsible for determining the valuation methodology for residential mortgage loans held for inves tment. The Secondary Marketing d epartment reviews loss severity assumptions quarterly to determine if adjustments are necessary based on decreases in observable housing market data. This group also reviews trade s in comparable benchmark securities and adjusts the values of loans as necessary. Consumer Credit Risk is responsible for the credit component of the fair value which is based on internally developed loss rate models that take into account historical loss rates and loss severities based on underlying collateral values. Commercial loans held for 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 a ssets in an active market, which are reviewed and approved by the Market Risk department, 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. 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 11 for further in formation on the assumptions used in the valuation of the Bancorp’s MSRs. The Secondary Marketing department and Treasury department are responsible for determining the valuation methodology for MSRs. Representatives from Secondary Marketing, Treasury, Acc ounting and Risk Management are responsible for reviewing key assumptions used in the internal OAS model. Two external valuations of the MSR portfolio are obtained from third parties quarterly that use valuation models in order to assess the reasonableness of the internal OAS model. Additionally, the Bancorp participates in peer surveys that provide additional confirmation of the reasonableness of key assumptions utilized in the MSR valuation process and the resulting MSR prices. Derivatives Exchange-traded derivatives valued using quoted prices and certain over-the-counter derivatives valued using active bids are classified within Level 1 of the valuation hierarchy. Most of the Bancorp’s derivative contracts are valued using DCF or other mode ls that incorporate current market interest rates, credit spreads assigned to the derivative counterparties and other market parameters and, therefore, are classified within Level 2 of the valuation hierarchy. Such derivatives include basic and structured interest rate , foreign exchange and commodity swaps and options. Derivatives that are valued based upon models with significant unobservable market parameters are classified within Level 3 of the valuation hierarchy . During the years ended December 31, 2018 and 2017 , derivatives classified as Level 3, which are valued using models containing unobservable inputs, consisted primarily of a total return swap associated with the Bancor p’s sale of Visa, Inc. Class B S hares. Level 3 derivatives also include IRLCs, which utilize internally generated loan closing rate assumptions as a significant 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 S hares. Additionally, the Bancorp will make a quarterly payment based on Visa’s stock price and the conversion rate of the Visa, Inc. Class B Shares into Class A Shares until the date on which the Covered Litigation is settled. The fair value of the total return swap was calculated using a DCF model based on unobservable inputs consisting of management’s estimate of the probability of certain l itigation scenarios, the timing of the resolution of the Covered Litigation and Visa litigation loss estimate s in excess, or shortfall, of the Bancorp’s proportional share of escrow funds. An increase in the loss estimate or a delay in the resolution of th e Covered Litigation would result in an increase in 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 valu e of the d erivative 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 quart erly basis for reasonableness based on Visa stock price changes, litigation contingencies, and escrow funding. The net asset fair value of the IRLCs at December 31, 2018 was $ 7 million. I mmediate decreases in current interest rates of 25 bp s and 50 bp s would result in increases in the fair value of the IRLC s of approximately $ 3 million and $ 6 million, respectively. Immediate increases of current interest rates of 25 bp s and 50 bp s would result in decreases in the fair value of the IRLC s of approximately $ 4 million and $ 9 million, respectively. The decrease in fair value of IRLCs due to both immediate 10% and 20% adverse changes in the assumed loan closing rates would be approximately $ 1 million and the increase in fair value due to both immediate 10% and 20% favorable changes in the assumed loan closing rates would be approximately $ 1 million. These sensitivities are hypothetical and should be used with caution, as changes in fair value based on a variation in assumptions typically cannot be extrapolated because the relationship of the change in assumpti ons to the change in fair value may not be linear. The Consumer Line of Business Finance department, which reports to the Bancorp’s Chief Financial Officer, and the aforementioned Secondary Marketing department are responsible for determining the valuation methodology for IRLCs. Secondary Marketi ng, in con junction 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 pr ices are available in an active market, short positions are classified within Level 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 chara cteristics 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 year ended December 31, 2018 ($ in millions) Loans MSRs Net (a) Derivatives Fair Value Balance, beginning of period $ 137 858 3 (137) 861 Total (losses) gains (realized/unrealized): Included in earnings (3) (83) 72 (59) (73) Purchases/originations - 163 (5) - 158 Settlements (19) - (71) 71 (19) Transfers into Level 3 (b) 64 - - - 64 Balance, end of period $ 179 938 (1) (125) 991 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2018 (c) $ (3) (4) 9 (59) (57) Net interest rate derivatives include derivative assets and liabilities of $ 7 and $ 8 , respectively, as of December 31, 2018 . Includes certain residential mortgage loans originated as 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 year ended December 31, 2017 ($ in millions) Loans MSRs (d) Net (a) Derivatives Fair Value Balance, beginning of period $ 143 744 8 (91) 804 Total (losses) gains (realized/unrealized): Included in earnings 1 (122) 94 (80) (107) Purchases/originations - 236 (2) - 234 Settlements (23) - (97) 34 (86) Transfers into Level 3 (b) 16 - - - 16 Balance, end of period $ 137 858 3 (137) 861 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2017 (c) $ 1 (122) 10 (80) (191) Net interest rate derivatives include derivative assets and liabilities of $ 8 and $ 5 , respect ively, as of December 31, 2017 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. Effective January 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. The servicing rights were measured at fair value at December 31, 2017 and were m easured under the amortization method at December 31, 2016. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Mortgage Derivatives, Derivatives, Total For the year ended December 31, 2016 ($ in millions) Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 167 12 201 380 Total gains (losses) (realized/unrealized): Included in earnings (2) 115 17 130 Purchases/originations - (3) - (3) Sales and exercise of warrant - - (334) (334) Settlements (40) (116) 25 (131) Transfers into Level 3 (b) 18 - - 18 Balance, end of period $ 143 8 (91) 60 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2016 (c) $ (2) 13 (56) (45) Net interest rate derivatives include derivative assets and liabilities of $ 13 and $ 5 , respectively, as of December 31, 2016 . Net equity derivatives include derivative assets and liabilities of $ 0 and $ 9 1 , respectively, as of December 31, 2016 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Consolidated Statements of Income for the years ended December 31, 2018, 2017 and 2016 as follows: ($ in millions) 2018 2017 2016 Mortgage banking net revenue $ (16) (29) 112 Corporate banking revenue 2 2 1 Other noninterest income (59) (80) 17 Total (losses) gains $ (73) (107) 130 The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at December 31, 2018, 2017 and 2016 were recorded in the Consolidated Statements of Income as follows: ($ in millions) 2018 2017 2016 Mortgage banking net revenue $ - (113) 10 Corporate banking revenue 2 2 1 Other noninterest income (59) (80) (56) Total losses $ (57) (191) (45) The following tables present information as of December 31, 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 December 31, 2018 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted- Average Residential mortgage loans $ 179 Loss rate model Interest rate risk factor (13.2) - 9.4% 0.5% Credit risk factor 0 - 39.9% 0.7% MSRs 938 DCF Prepayment speed 0.5 - 100.0% (Fixed) 10.2% (Adjustable) 23.0% OAS spread (bps) 441 - 1,513 (Fixed) 534 (Adjustable) 863 IRLCs, net 7 DCF Loan closing rates 9.5 - 96.7% 86.0% Swap associated with the sale of Visa, Inc. (125) DCF Timing of the resolution 1/31/2021 - 11/11/2021 Class B Shares of the Covered Litigation 11/30/2023 As of December 31, 2017 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted- Average Residential mortgage loans $ 137 Loss rate model Interest rate risk factor (10.6) - 14.5% 3.1% Credit risk factor 0 - 52.1% 1.4% MSRs 858 DCF Prepayment speed 0 - 98.1% (Fixed) 11.4% (Adjustable) 24.6% OAS spread (bps) 450 - 1,515 (Fixed) 549 (Adjustable) 785 IRLCs, net 8 DCF Loan closing rates 12.5 - 97.7% 71.8% Swap associated with the sale of Visa, Inc. (137) DCF Timing of the resolution 12/31/2020 - 8/15/2021 Class B Shares of the Covered Litigation 12/31/2023 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of December 31, 2018 and 2017 and for which a nonrecurring fair value adjustment was recorded during the years ended December 31, 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 As of December 31, 2018 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2018 Commercial loans held for sale $ - - 16 16 (3) Commercial and industrial loans - - 93 93 (41) Commercial mortgage loans - - 2 2 7 Commercial leases - - 14 14 (11) OREO - - 20 20 (7) Bank premises and equipment - - 32 32 (45) Operating lease equipment - - - - (2) Private equity investments - 67 3 70 43 Other assets - - 2 2 (8) Total $ - 67 182 249 (67) Fair Value Measurements Using Total Losses As of December 31, 2017 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2017 Commercial loans held for sale $ - - 1 1 (33) Commercial and industrial loans - - 327 327 (99) Commercial mortgage loans - - 19 19 (12) Commercial leases - - 4 4 (6) OREO - - 27 27 (10) Bank premises and equipment - - 24 24 (6) Operating lease equipment - - 60 60 (42) Private equity investments - - 8 8 (1) Affordable housing investments - - 1,078 1,078 (57) Total $ - - 1,548 1,548 (266) The following tables present information as of December 31, 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 December 31, 2018 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 16 Appraised value Appraised value NM NM Costs to sell NM 10.0% Commercial and industrial loans 93 Appraised value Collateral value NM NM Commercial mortgage loans 2 Appraised value Collateral value NM NM Commercial leases 14 Appraised value Collateral value NM NM OREO 20 Appraised value Appraised value NM NM Bank premises and equipment 32 Appraised value Appraised value NM NM Operating lease equipment - Appraised value Appraised value NM NM Private equity investments - Liquidity discount applied Liquidity discount 0 - 43.0% 12.9% to fund's NAV 3 Comparable company analysis Market comparable transactions NM NM Other assets 2 Appraised value Appraised value NM NM As of December 31, 2017 ($ in millions) Significant Unobservable Ranges of Financial Instrument Fair Value Valuation Technique Inputs Inputs Weighted-Average Commercial loans held for sale $ 1 Appraised value Appraised value NM NM Costs to sell NM 10.0% Commercial and industrial loans 327 Appraised value Collateral value NM NM Commercial mortgage loans 19 Appraised value Collateral value NM NM Commercial leases 4 Appraised value Collateral value NM NM OREO 27 Appraised value Appraised value NM NM Bank premises and equipment 24 Appraised value Appraised value NM NM Operating lease equipment 60 Appraised value Appraised value NM NM Private equity investments 8 Liquidity discount applied Liquidity discount 2.5 - 15.0% 5.8% to fund's NAV Affordable housing investments 1,078 Appraised value Appraised value NM NM Commercial loans held for sale During the years ended December 31, 2018 and 2017 , the Bancorp transferred $ 1 million and $ 85 million, respectively, of commercial loans from the portfolio to loans held for sale that upon transfer were measured at the lower of cost or fair value. These loans had fair value adjustments during the years ended Dec ember 31, 2018 and 2017 totaling an immaterial amount and $ 31 million, respectively, and were generally based on appraisals of the underlying collateral and were, therefore, classified within Level 3 of the valuation hierarchy. Additionally, during the years ended December 31, 2018 and 2017 there were fair value adjustments on existing loans held for sale of $ 3 million and an immaterial amount , respectively. The fair value adjustments were also based on appraisals of the underlying collateral . The Bancorp recognized an immaterial amount of gains and $ 2 million in losses on the sale of certain commercial loan s held for sale during the years ended December 31, 2018 and 2017 , respectively . The Accounting department determines the procedures for the valuation of commercial loans held for sale us ing appraised value s which may include a comparison to recently executed transactions of similar type loans. A monthly review of the portfolio is performed for reasonableness. Qua rterly, appraisals approaching a year old are updated and the Real Estate Val uation group, which reports to the Bancorp’s Chief Risk Officer, in conjunction with the Commercial Line o f Business, reviews the third- party appraisals for reasonableness. Additionally, the Commercial Line of Business Finance department, which reports to the Bancorp’s Chief Financial Officer, in conjunction with the Accounting department review s all loan appraisal values, carry values and vintages. Commercial loans and leases held for investment During the years ended December 31, 2018 and 2017 , the Bancorp recorded nonrecurring impairment adjustments to certain commercial and industrial l oans, commercial mortgage loans and commercial leases held for investment. Larger commercial loans included within aggregate borrower relationship balances exceeding $1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp considers the current value of collateral, credit quality of any guarantees, the guarantor’s liquidity and willingness to cooperate, the loan structure and other factors when evaluating whether an individual loan is impaired. When the loan is collateral dependent, the fair value of the loan is generally based on the fair value of the underlying collateral supporting the loan and therefore these loans were classified within Level 3 of the valuation hierarchy. In cases where the carrying value exceeds the fair value, an impairment loss is recognized. The fair values and recognized impairment losses are reflected in the previous table s . Commercial Credit Risk, which reports to the Bancorp’s Chief Risk Officer, is responsible for preparing and reviewing the fair value estimates for commercial loans held for investment. OREO During the years ended December 31, 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 estat e values of the properties recorded in OREO. For both the years ended December 31, 2018 and 2017 , these losses include $ 4 million recorded as charge-offs, on new OREO properties transferred from loans during the respective periods and $ 3 million and $ 6 million, respectively, recorded as negative fair value adjustments on OREO in other noninterest expense in the Consolidated Statements of Income subsequent to their transfer from loans. As discussed in the following paragraphs, the fair val ue amounts are generally based on appraisals of the property values, resulting in a classification within Level 3 of the valuation hierarchy. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. T he previous tables reflect the fair value measurements of the properties before deducting the estimated costs to sell. The Re al Estate Valuation department is solely responsible for managing the appraisal process and evaluating the appraisal s for comm ercial properties transferred to OREO. All appraisals on commercial OREO properties are updated on at least an annual basis. The Real Estate Valuation department reviews the BPO data and internal market information to determine the initial charge-off on residential real estate loans transferred to OREO. Once the foreclosure process is completed, the Bancorp performs an interior inspection to update the initial fair value of the property. These properties are reviewed at least every 30 days after the i nitial interior inspections are completed. The Asset Manager receives a monthly status report for each property which includes the number of showings, recently sold properties, current comparable listings and overall market conditions. Bank premises and 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 va lues. At least annually thereafter, the Bancorp will review these properties for market fluctuations. The fair value amounts were generally based on appraisals of the property values, resulting in a classification within Level 3 of the valuation hierarchy. Enterprise Workplace Services , which reports to the Bancorp’s Chief Administrative Officer, in conjunction with Accounting , are responsible for preparing and reviewing the fair value estimates for bank premises and equipment . For further information on ba nk premises and equipment refer to Note 7 . Operating lease equipment and other assets During the years ended December 31, 2018 and 2017 , the Bancorp recorded nonrecurring impairment adjustments to certain operating lease equipment, includin g returned equipment. When evaluating whether an individual asset is impaired, the Bancorp considers the current fair value of the asset, the changes in overall market demand for the asset and the rate of change in advancements associated with technologica l improvements that impact the demand for the specific asset under review. As part of this ongoing assessment, the Bancorp determined that the carrying values of certain operating lease equipment were not recoverable and as a result, the Bancorp recorded a n impairment loss equal to the amount by which the carrying value of the assets exceeded the fair value. The fair value amounts were generally based on appraised values of the assets, resulting in a classification within Leve l 3 of the valuation hierarchy. The Commercial Leasing department, which reports to the Bancorp’s Chief Operating Officer, is responsible for preparing and reviewing the fair value estimates for operating lease equipment. Private equity investments As a result of adopting ASU 2016-01, effective January 1, 2018, the Bancorp accounts for its private equity investments using the measurement alternative to fair value, except for those accounted for under the equity method of accounting. Under the measurement alternative, the Bancorp carries each investment at its cost basis minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The Bancorp recognized gains of $ 64 million resultin g from observable price changes during the year ended December 31, 2018 . The carrying value of the Bancorp’s private equity inve |
Regulatory Capital Requirements
Regulatory Capital Requirements and Capital Ratios | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements and Capital Ratios | |
Regulatory Capital Requirements and Capital Ratios | 27 . REGULATORY CAPITAL REQUIREMENTS AND CAPITAL RATIOS The Board of Governors of the Federal Reserve System issued capital adequacy guidelines pursuant to which it assesses the adequacy of capital in examining and supervising a BHC and in analyzing applications to it under the BHCA of 1956, as amended. These guidelines include quantitative measures that assign risk weightings to assets and off-balance sheet items, as well as define and set minimum regulatory capital requirements . The regulatory capital requirements were revised by the Basel III Final Rule whic h was effective for the Bancorp on January 1, 2015, subject to phase-in periods for certain of its components and other provisions. It established quantitative measures defining minimum regulatory capital requirements as well as the measure of “well-capita lized” status. Additionally, the Board of Governors of the Federal Reserve System issued similar guidelines for minimum regulatory capital requirements and “well-capitalized” measurements for banking subsidiaries . PRESCRIBED CAPITAL RATIOS Minimum Well-Capitalized CET1 capital 4.50 % 6.50 Tier I risk-based capital 6.00 8.00 Total risk-based capital 8.00 10.00 Tier I leverage 4.00 5.00 Failure to meet the minimum capital requirements or falling below the “well-capitalized” measure can initiate certain actions by regulators that could have a direct material effect on the Consolidated Financial Statements of the Bancorp. Additionally, when fully phased-in in 2019, the Basel III Final Rule will include a capital conservation buffer requirement of 2.5% in addition to the minimum capital requirements of the CET1, Tier I capital and Total risk-based capital ratios in order to avoid limitations on capital distributions and discretionary bonus payments to executive officers. The Bancorp and its banking subsidiary, Fifth Third Bank, had CET1 capital, Tier I risk-based capital, Total risk-based capital and Tier I leverage ratios above the wel l-capitalized levels at both December 31, 2018 and 2017. To continue to qualify for financial holding company status pursuant to the Gramm-Leach-Bliley Act of 1999, the Bancorp’s banking subsidiary must, among other things, maintain “well-capitalized” capi tal ratios. In addition, the Bancorp exceeded the “capital conservation buffer” ratio for all periods presented. The following table presents capital and risk-based capital and leverage ratios for the Bancorp and its banking subsidiary at December 31: 2018 2017 (a) ($ in millions) Amount Ratio Amount Ratio CET1 capital: Fifth Third Bancorp $ 12,534 10.24 % $ 12,517 10.61 % Fifth Third Bank 14,435 11.93 14,008 12.06 Tier I risk-based capital: Fifth Third Bancorp 13,864 11.32 13,848 11.74 Fifth Third Bank 14,435 11.93 14,008 12.06 Total risk-based capital: Fifth Third Bancorp 17,723 14.48 17,887 15.16 Fifth Third Bank 16,427 13.57 16,126 13.88 Tier I leverage: (b) Fifth Third Bancorp 13,864 9.72 13,848 10.01 Fifth Third Bank 14,435 10.27 14,008 10.32 The regulatory capital data and ratios have not been restated as a result of the Bancorp’s change in accounting for qualifying LIHTC investments. For additional information refer to Note 1 . Quarterly average assets are a component of the Tier I leverage ratio and for this purpose do not include goodwill and any other intangible assets and other investments that the FRB determines should be deducted from Tier I capital. |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Parent Company Financial Statements | |
Parent Company Financial Statements | 28 . PARENT COMPANY FINANCIAL STATEMENTS Condensed Statements of Income (Parent Company Only) For the years ended December 31 ($ in millions) 2018 2017 2016 Income Dividends from subsidiaries: Consolidated nonbank subsidiaries (a) $ 1,890 2,343 1,886 Interest on loans to subsidiaries 24 21 18 Total income 1,914 2,364 1,904 Expenses Interest 211 176 171 Other 34 42 18 Total expenses 245 218 189 Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries 1,669 2,146 1,715 Applicable income tax benefit 50 68 63 Income Before Change in Undistributed Earnings of Subsidiaries 1,719 2,214 1,778 Equity in undistributed earnings 474 (34) (231) Net Income Attributable to Bancorp $ 2,193 2,180 1,547 Other Comprehensive Income - - - Comprehensive Income Attributable to Bancorp $ 2,193 2,180 1,547 (a) The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $1.9 billion , $2.3 billion and $1.9 billion for the years ended December 31, 2018 , 2017 and 2016 , respectively . Condensed Balance Sheets (Parent Company Only) As of December 31 ($ in millions) 2018 2017 Assets Cash $ 120 80 Short-term investments 3,642 3,493 Loans to subsidiaries: Nonbank subsidiaries 571 843 Total loans to subsidiaries 571 843 Investment in subsidiaries: Nonbank subsidiaries 17,921 17,530 Total investment in subsidiaries 17,921 17,530 Goodwill 80 80 Other assets 268 329 Total Assets $ 22,602 22,355 Liabilities Other short-term borrowings $ 253 315 Accrued expenses and other liabilities 424 472 Long-term debt (external) 5,675 5,348 Total Liabilities $ 6,352 6,135 Equity Common stock $ 2,051 2,051 Preferred stock 1,331 1,331 Capital surplus 2,873 2,790 Retained earnings 16,578 14,957 Accumulated other comprehensive (loss) income (112) 73 Treasury stock (6,471) (5,002) Noncontrolling interests - 20 Total Equity 16,250 16,220 Total Liabilities and Equity $ 22,602 22,355 Condensed Statements of Cash Flows (Parent Company Only) For the years ended December 31 ($ in millions) 2018 2017 2016 Operating Activities Net income $ 2,193 2,180 1,547 Adjustments to reconcile net income to net cash provided by operating activities: Provision for deferred income taxes 3 2 - Equity in undistributed earnings (474) 34 231 Net change in: Other assets 61 37 14 Accrued expenses and other liabilities (116) (15) (35) Net Cash Provided by Operating Activities 1,667 2,238 1,757 Investing Activities Net change in: Short-term investments (149) (419) 654 Loans to subsidiaries 272 126 13 Net Cash Provided by (Used in) Investing Activities 123 (293) 667 Financing Activities Net change in other short-term borrowings (62) (29) (60) Dividends paid on common stock (467) (430) (402) Dividends paid on preferred stock (98) (75) (52) Proceeds from issuance of long-term debt 895 697 - Repayment of long-term debt (500) (500) (1,250) Repurchase of treasury stock and related forward contract (1,453) (1,605) (661) Other, net (65) (53) 3 Net Cash Used in Financing Activities (1,750) (1,995) (2,422) Increase (Decrease) in Cash 40 (50) 2 Cash at Beginning of Period 80 130 128 Cash at End of Period $ 120 80 130 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2018 | |
Business Segments | |
Business Segments | 29 . BUSIN ESS SEGMENTS The Bancorp reports on four business segments: Commercial Banking, Branch Banking, Consumer Lending and Wealth and Asset Management . Results of the Bancorp’s business segments are presented based on its management structure and management accounting practices. The structure and accounting practices are specific to the Bancorp; therefore, the financial results of the Bancorp’s business segments are not necessarily comparable with similar information for other financial institutions. The Bancorp refines its methodologies from time to time as management ’s accounting practices and businesses change. The Bancorp manages interest rate risk centrally at the corporate level . B y employing a n FTP methodology, the business segments are insulated from most benchma rk interest rate volatility, enabling them to focus on serving customers through the origination of loans and acceptance of deposits . The FTP methodology assigns charge and credit rates to classes of assets and liabilities, respectively, based on the estim ated 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 segment so its resulting net interest income is insulated fro m future changes in benchmark interest rates. The Bancorp’s FTP methodology also allocates the contribution to net interest income of the asset-generating and deposit-providing businesses on a duration-adjusted basis to better attribute the driver of the p erformance. As the asset and liability durations are not perfectly matched, the residual impact of the FTP methodology is captured in General Corporate and Other. The charge and credit rates are determined using the FTP rate curve, which is based on an est imate of Fifth Third’s marginal borrowing cost in the wholesal e funding markets. The FTP curve is constructed using the U.S. swap curve, brokered CD pricing and unsecured debt pricing. The Bancorp adjusts the FTP charge and credit rates as dictated by chan ges 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 as sumptions, including t he credit rate s provided for deposit accounts, are reviewed annually. Credit rates for deposit products and charge rates for loan products may be reset more frequently in response to changes in market conditions. The credit rates for several deposit prod ucts were reset January 1, 2018 to reflect the current market rates and updated market assumptions. These rates were generally higher than those in place during 2017 , thus net interest income for deposit -providing business s egments 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 increas ed for asset-generating business segments during 2018 . The Bancorp’s methodology for allocating provision for loan and lease losses expense to the business segments includes charges or benefits associated with changes in criticized commercial loan leve ls in addition to actual net charge-offs experienced by the loans and leases owned by each business segment. Provision for loan and lease losses expense attributable to loan and lease growth and changes in ALLL factors is captured in General 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 taking advantage o f cross-sell opportunities and funding operations by accessing the capital markets as a collective unit. The results of operations and financial position for the years ended December 31, 2017 and 2016 were adjusted to reflect changes in internal expense allocation methodologies as well as a change in accountin g policy for qualifying LIHTC investments. The following is a description of each of the Bancorp’s business s egments and the products and services they provide to their respective client bases. Commercial Banking offers credit intermediation, cash manageme nt 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 exc hange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing and syndicated finance. Branch Banking provides a full range of deposit and loan and lease produc ts to individuals an d small businesses through 1,121 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 a utomobiles and other personal financing needs, as well as products designed to meet the specific needs of small businesses, including cash management services. Consumer Lending includes the Bancorp’s residential mortgage, home equity, automobile and other indirect lending activities. Direct lending activities include the origination, retent ion and servicing of residential mortgage and home equity loans or lines of credit, sales and securitizations of those loans, pools of loans or lines of 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 four main businesses: FTS, an indirect wholly- owned subsidiary of the Bancorp; Fifth Third Insurance Agency ; Fifth Third Private Bank; and Fifth Third Institutional Services . FTS offers full service retail brokerage services to individu al clients and broker- dealer services t o the institutional marketplace . Fifth Third Insurance Agency assists clients with their financial and risk management needs . Fifth Third Private Bank offers holistic strategies to affluent clients in wealth planning, investing, insurance and wealth protection. Fifth Third Institutional Services provides advisory services for institutional clients including states and municipalities. The following tables present the results of operations and assets by business segment for the years ended December 31: Wealth General Commercial Branch Consumer and Asset Corporate 2018 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,713 2,034 237 182 (26) - 4,140 Provision for (benefit from) loan and lease losses (26) 171 42 12 38 - 237 Net interest income after provision for loan and lease losses 1,739 1,863 195 170 (64) - 3,903 Noninterest income: Service charges on deposits 273 275 - 1 - - 549 Wealth and asset management revenue 3 150 - 429 - (138) (a) 444 Corporate banking revenue 432 5 - 2 (1) - 438 Card and processing revenue 58 266 - 5 - - 329 Mortgage banking net revenue - 5 206 1 - - 212 Other noninterest income (b) 151 53 14 18 651 - 887 Securities losses, net - - - - (54) - (54) Securities losses, net - non-qualifying hedges on MSRs - - (15) - - - (15) Total noninterest income 917 754 205 456 596 (138) 2,790 Noninterest expense: Salaries, wages and incentives 300 438 156 173 716 - 1,783 Employee benefits 44 98 36 29 125 - 332 Net occupancy expense 26 175 10 12 69 - 292 Technology and communications 7 5 5 1 267 - 285 Card and processing expense 4 121 - - (2) - 123 Equipment expense 23 50 - 1 49 - 123 Other noninterest expense 859 841 195 288 (1,055) (138) 990 Total noninterest expense 1,263 1,728 402 504 169 (138) 3,928 Income (loss) before income taxes 1,393 889 (2) 122 363 - 2,765 Applicable income tax expense (benefit) 254 187 (1) 25 107 - 572 Net income (loss) 1,139 702 (1) 97 256 - 2,193 Total goodwill $ 630 1,655 - 193 - - 2,478 Total assets $ 61,630 61,040 22,044 10,337 (8,982) (c) - 146,069 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Consolidated Statements of Income . Includes impairment charges of $ 45 for branches and land. For more information refer to Note 7 and Note 26 . Includes bank premises and equipment of $ 42 classified as held for sale. For more information refer to Note 7 . Wealth General Commercial Branch Consumer and Asset Corporate 2017 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,652 1,782 240 154 (30) - 3,798 Provision for loan and lease losses 38 153 40 6 24 - 261 Net interest income after provision for loan and lease losses 1,614 1,629 200 148 (54) - 3,537 Noninterest income: Service charges on deposits 287 265 - 1 1 - 554 Wealth and asset management revenue 3 141 - 407 - (132) (a) 419 Corporate banking revenue 348 (c) 5 - 1 (1) - 353 Card and processing revenue 57 251 - 5 - - 313 Mortgage banking net revenue - 6 217 1 - - 224 Other noninterest income (b) 143 88 18 4 1,104 - 1,357 Securities gains, net - - - - 2 - 2 Securities gains, net - non-qualifying hedges on MSRs - - 2 - - - 2 Total noninterest income 838 756 237 419 1,106 (132) 3,224 Noninterest expense: Salaries, wages and incentives 252 425 152 154 650 - 1,633 Employee benefits 42 101 37 27 149 - 356 Net occupancy expense 26 176 10 11 72 - 295 Technology and communications 9 4 2 - 230 - 245 Card and processing expense 3 127 - - (1) - 129 Equipment expense 18 52 - - 47 - 117 Other noninterest expense 884 796 210 276 (1,027) (132) 1,007 Total noninterest expense 1,234 1,681 411 468 120 (132) 3,782 Income before income taxes 1,218 704 26 99 932 - 2,979 Applicable income tax expense 391 249 9 34 116 - 799 Net income 827 455 17 65 816 - 2,180 Total goodwill $ 613 1,655 - 177 - - 2,445 Total assets $ 58,456 57,931 22,218 9,494 (6,018) (d) - 142,081 Reve nue sharing agreements between wealth and asset management and b ranch b anking are eliminated in the Consolidated Statements of Income. Includes impairment charges of $ 7 for branches and land. For more information refer to Note 7 and Note 26 . Includes impairment charges of $ 52 for operating lease equipment. For more information refer to Note 26 . Includes bank premises and equipment of $ 27 classified as held for sale. For more information refer to Note 7 . Wealth General Commercial Branch Consumer and Asset Corporate 2016 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,814 1,669 248 168 (284) - 3,615 Provision for loan and lease losses 76 138 44 1 84 - 343 Net interest income after provision for loan and lease losses 1,738 1,531 204 167 (368) - 3,272 Noninterest income: Service charges on deposits 292 265 - 2 (1) - 558 Wealth and asset management revenue 4 140 - 391 - (131) (a) 404 Corporate banking revenue 430 (c) 5 - - (3) - 432 Card and processing revenue 62 253 - 4 - - 319 Mortgage banking net revenue - 7 277 1 - - 285 Other noninterest income (b) 119 85 26 1 457 - 688 Securities gains, net - - - - 10 - 10 Total noninterest income 907 755 303 399 463 (131) 2,696 Noninterest expense: Salaries, wages and incentives 254 419 158 142 639 - 1,612 Employee benefits 42 101 37 26 133 - 339 Net occupancy expense 26 178 10 10 75 - 299 Technology and communications 13 3 1 - 217 - 234 Card and processing expense 4 128 - - - - 132 Equipment expense 16 56 - - 46 - 118 Other noninterest expense 873 798 224 254 (992) (131) 1,026 Total noninterest expense 1,228 1,683 430 432 118 (131) 3,760 Income (loss) before income taxes 1,417 603 77 134 (23) - 2,208 Applicable income tax expense (benefit) 403 213 27 48 (26) - 665 Net income 1,014 390 50 86 3 - 1,543 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 57,995 55,979 22,041 9,494 (3,429) (d) - 142,080 Revenue sharing agreements between wealth and asset management and b ranch b anking are eliminated in the Consolidated Statements of Income. Includes impairment charges of $ 32 for branches and land. For more information refer to Note 7 . Includes impairment charges of $ 20 for operating lease equipment. Includes bank premises and equipment of $ 39 classified as held for sale . |
Pending Acquisition
Pending Acquisition | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations | |
Pending Acquisition | 30 . PENDING ACQUISITION On May 21, 2018, Fifth Third Bancorp and MB Financial, 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 based on the closing price of Fifth Third Bancorp’s common shares on May 18, 2018. MB Financial is headquartered in Chicago, Illinois with reported assets of approximately $ 20 billio n as of September 30, 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 th e agreement, common shareholders of MB Financial will receive 1.45 shares of Fifth Third Bancorp 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 Bancorp’s common shares on May 18, 2018. The exchange ratio of Fifth Third Bancorp common shares for MB Financial common shares is fixed and will not adjust based on changes in Fifth Third Bancorp’s share trading price. On September 18, 2018, MB Financial held a special meeting of stockholders at which MB Financial stockholders voted on proposals relating to the pending merger. MB Financial’s common stockholders approved the Common Stockholder Merger Proposal and the Char ter Amendment Proposal but an insufficient number of votes were received from MB Financial’s preferred stockholders to approve the Preferred Stockholder Merger Proposal. As a result, the merger will be completed through the Alternative Merger, the merger o f a newly-formed subsidiary of Fifth Third Bancorp with and into MB Financial, with MB Financial surviving that merger, as a subsidiary of Fifth Third Bancorp. Detailed voting results are provided in a Current Report on Form 8-K filed with the SEC on Septe mber 20, 2018 by MB Financial. The transaction remains subject to regulatory approval and the satisfaction of other customary closing conditions. The transaction is expected to close in the first quarter of 2019. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 31 . SUBSEQUENT EVENT S On January 25, 2019, the Bancorp issued and sold $ 1.5 billion of 3.65% senior fixed-rate notes, with a maturity of five years, due on January 25, 2024. These notes will be redeemable by the Bancorp, in whole or in part, on or after the date that is 30 da ys 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 February 1, 2019, the Bank issued and sold, under its bank notes program, $ 300 million of senior floating-rate notes, with a maturity of three years, due on February 1, 2022. Interest on the floating-rate notes is 3-month LIBOR plus 64 bps. These notes will be redeemable by the Bank, in whole or in part, on o r 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting and Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting and Reporting Policies | |
Nature of Operations | Nature of Operations Fifth Third Bancorp, an Ohio corporation, conducts its principal lending, deposit gathering, transaction processing and service advisory activities through its banking and non-banking subsidiaries from banking centers located throughout the Midwestern and Southeastern regions of the United States. |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements include the accounts of the Bancorp and its majority-owned subsidiaries and VIEs in which the Bancorp has been determined to be the primary beneficiary. Other entities, including certain joint ventures, in which the Bancorp has the ability to exercise significant influence over operating and financial policies of the investee, but upon which the Bancorp does not possess control, are accounted for by the e quity method of accounting and not consolidated. The investments in those entities in which the Bancorp does not have the ability to exercise significant influence are generally carried at fair value unless the investment does not have a readily determinab le fair value. The Bancorp accounts for equity investments without a readily determinable fair value using the measurement alternative to fair value, representing the cost of the investment minus any impairment recorded, if any, and plus or minus changes r esulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Intercompany transactions and balances among consolidated entities have been eliminated. Certain prior period data has been reclass ified to conform to current period presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and a ccompanying notes. Actual results could differ from those estimates. |
Cash and Due from Banks | Cash and Due From Banks Cash and due from banks consist of currency and coin, cash items in the process of collection and due from banks. Currency and coin includes both U.S. and foreign currency owned and held at Fifth Third offices and that is in-transit to the FRB. Cash items in the process of collection include checks and drafts that are drawn on another depository institution or the FRB that are payable immediately upon presentation in the U.S. Balances due from banks include noninterest-bearing balances that are funds on dep osit at other depository institutions or the FRB. |
Investment Securities | Investment Securities Debt s ecurities are classified as held-to-maturity, available-for-sale or trading on the date of purchase. Only those securities which management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. Debt s ecurities are classified as available-for-sale when, in management’s judgment, they may be sold in response to, or in anticipation of, changes in market conditions. Debt s ec urities are classified as trading when bought and held principally for the purpose of selling them in the near term. Available-for-sale debt securities are reported at fair value with unrealized gains and losses, net of related deferred income taxes, inclu ded in OCI. Trading debt securities are reported at fair value with unrealized gains and losses included in noninterest income. Available-for-sale and held-to-maturity debt securities with unrealized losses are reviewed quarterly for possi ble OTTI. I f the Bancorp intends to sell the debt security or will more likely than not be required to sell the debt security before recovery of the entire amortized cost basis, then an OTTI has occurred. However, even if the Bancorp does not intend to sell the debt secur ity and will not likely be required to sell the debt security before recovery of its entire amortized cost basis, the Bancorp must evaluate expected cash flows to be received and determine if a credit loss has occurred. In the event of a credit loss, the c redit component of the impairment is recognized within noninterest income and the non-credit component is recognized through OCI. Effective January 1, 2018, equity securities with readily determinable fair values not accounted for under the equity method are reported at fair value with unrealized gains and losses included in noninterest income in the Consolidated Statements of Income. Prior to January 1, 2018, equity securities were classified as available-for-sale or trading on the date of purchase, and t he accounting for unrealized gains and losses was the same as for debt securities classified as available-for-sale and trading. Equity securities were classified as trading when bought and held principally for the purpose of selling them in the near term. For equity securities classified as available-for-sale , th e Bancorp’s management evaluated the securities in an unrealized loss position for OTTI on the basis of the duration of the decline in value of the security and severity of that decline as well as t he Bancorp’s intent and ability to hold these securities for a period of time sufficient to allow for any anticipated recove ry in the market value. If it was determined that the imp airment on an equity security was other-than-temporary, an impairment loss equal to the difference between the amortized cost of th e security and its fair value was recognized within noninterest income in the Consolidated Statements of Income. The fair value of a security is determined based on quoted market prices. If quoted ma rket prices are not available, fair value is determined based on quoted prices of similar instruments or DCF models that incorporate market inputs and assumptions including discount rates, prepayment speeds and loss rates. Realized securities gains or loss es are reported within noninterest income in the Consolidated Statements of Income. The cost of securities sold is based on the specific identification method . |
Portfolio Loans and Leases | Basis of a ccounting Portfolio loans and leases are generally reported at the principal amount outstanding, net of unearned income, deferred direct loan origination fees and costs and any direct principal charge-offs. Direct loan origination fees and costs are deferred and the net amount is amortized over the estimated life of the related loans as a yield adjustment. Interest income is recognized based on the principal balance outstanding computed using the effective interest method. Loans acquired by the Bancorp through a purc hase business combination are recorded at fair value as of the acquisition date. The Bancorp does not carry over the acquired company’s ALLL, nor does the Bancorp add to its existing ALLL as part of purchase accounting. Purchased loans are evaluated for ev idence of credit deterioration at acquisition and recorded at their initial fair value. For loans acquired with no evidence of credit deterioration, the fair value discount or premium is amortized over the contractual life of the loan as an adjustment to y ield. For loans acquired with evidence of credit deterioration, the Bancorp determines at the acquisition date the excess of the loan’s contractually required payments over all cash flows expected to be collected as an amount that should not be accreted in to interest income (nonaccretable difference). The remaining amount representing the difference in the expected cash flows of acquired loans and the initial investment in the acquired loans is accreted into interest income over the remaining life of the lo an or pool of loans (accretable yield). Subsequent to the acquisition date, increases in expected cash flows over those expected at the acquisition date are recognized prospectively as interest income over the remaining life of the loan. The present value of any decreases in expected cash flows resulting directly from a change in the contractual interest rate are recognized prospectively as a reduction of the accretable yield. The present value of any decreases in expected cash flows after the acquisition d ate as a result of credit deterioration is recognized by recording an ALLL or a direct charge-off. Subsequent to the acquisition date, the methods utilized to estimate the required ALLL are similar to originated loans. This method of accounting for loans a cquired with deteriorated cr edit quality does not apply to loans carried at fair value, residential mortgage loans held for sale and loans un der revolving credit agreements. The Bancorp’s lease portfolio consists of both direct financing and leveraged leas es. Direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, less unearned income. Interest income on direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Leveraged leases are carried at the aggregate of lease payments (less nonrecourse debt payments) plus estimated residual value of the leased property, less unearned income. Interest income on leverage d leases is recognized over the term of the lease to achieve a constant rate of return on the outstanding investment in the lease, net of the related deferred income tax liability, in the years in which the net investment is positive. |
Nonaccrual Loans and Leases | Nonaccrual loans and l eases When a loan is placed on nonaccrual status, the accrual of interest, amortization of loan premium, accretion of loan discount and amortization/accretion of deferred net direct loan origination fees or costs are discontinued and all previously accru ed and unpaid interest is charged against income. Commercial loans are placed on nonaccrual status when there is a clear indication that the borrower’s cash flows may not be sufficient to meet payments as they become due. Such loans are also placed on nona ccrual status when the principal or interest is past due 90 days or more, unless the loan is both well-secured and in the process of collection. The Bancorp classifies residential mortgage loans that have principal and interest payments that have become pa st due 150 days as nonaccrual unless the loan is both well-secured and in the process of collection. Residential mortgage loans may stay on non accrual status for an extended time as the foreclosure process typically lasts longer than 180 days. Home equity loans and lines of credit are reported on nonaccrual status if principal or interest has been in default for 90 days or more unless the loan is both well-secured and in the process of collection. Home equity loans and lines of credit that have been in defa ult for 60 days or more are also reported on nonaccrual status if the senior lien has been in default 120 days or more, unless the loan is both well secured and in the process of collection. Residential mortgage, home equity, automobile and other consumer loans and leases that have been modified in a TDR and subsequently become past due 90 days are placed on nonaccrual status unless the loan is both well-secured and in the process of collection. Commercial and credit card loans that have been modified in a TDR are classified as nonaccrual unless such loans have sustained repayment performance of six months or more and are reasonably assured of repayment in accordance with the restructured terms. Well-secured loans are collateralized by perfected security int erests in real and/or personal property for which the Bancorp estimates proceeds from the sale would be sufficient to recover the outstanding principal and accrued interest balance of the loan and pay all costs to sell the collateral. The Bancorp considers a loan in the process of collection if collection efforts or legal action is proceeding and the Bancorp expects to collect funds sufficient to bring the loan current or recover the entire outstanding principal and accrued interest balance. Nonaccrual comm ercial loans and nonaccrual credit card loans are generally accounted for on the cost recovery method. The Bancorp believes the cost recovery method is appropriate for nonaccrual commercial loans and nonaccrual credit card loans because the assessment of c ollectability of the remaining recorded investment of these loans involves a high degree of subjectivity and uncertainty due to the nature or absence of underlying collateral. Under the cost recovery method, any payments received are applied to reduce prin cipal. Once the entire recorded investment is collected, additional payments received are treated as recoveries of amounts previously charged-off until recovered in full, and any subsequent payments are treated as interest income. Nonaccrual residential mo rtgage loans and other nonaccrual consumer loans are generally accounted for on the cash basis method. The Bancorp believes the cash basis method is appropriate for nonaccrual residential mortgage and other nonaccrual consumer loans because such loans have generally been written down to estimated collateral values and the collectability of the remaining investment involves only an assessment of the fair value of the underlying collateral, which can be measured more objectively with a lesser degree of uncert ainty than assessments of typical commercial loan collateral. Under the cash basis method, interest income is recognized when cash is received, to the extent such income would have been accrued on the loan’s remaining balance at the contractual rate. Nonac crual loans may be returned to accrual status when all delinquent interest and principal payments become current in accordance with the loan agreement and are reasonably assured of repayment in accordance with the contractual terms of the loan agreement, o r when the loan is both well-secured and in the process of collection. Commercial loans on nonaccrual status, including those modified in a TDR, as well as criticized commercial loans with aggregate borrower relationships exceeding $ 1 million, are subject to an individual review to identify charge-offs. The Bancorp does not have an established delinquency threshold for partially or fully charging off commercial loans. Residential mortgage loans, home equity loans and lines of credit an d credit card loans that have principal and interest payments that have become past due 180 days are assessed for a charge-off to the ALLL, unless such loans are both well-secured and in the process of collection. Home equity loans and lines of credit are also assessed for charge-off to the ALLL when such loans or lines of credit have become past due 120 days if the senior lien is also 120 days past due, unless such loans are both well-secured and in the process of collection. Automobile and other consumer loans and leases that have principal and interest payments that have become past due 120 days are assessed for a charge-off to the ALLL, unless such loans are both well-secured and in the process of collection. |
Restructured Loans and Leases | Restructured loans and l eases A loan is acco unted for as a TDR if the Bancorp, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. A TDR typically involves a modification of terms such as a reductio n of the stated interest rate or remaining principal amount of the loan, a reduction of accrued interest or an extension of the maturity date at a stated interest rate lower than the current market rate for a new lo an with similar risk. T he OCC, a national bank regulatory agency, has issued interpretive guidance that requires non-reaffirmed loans included in Chapter 7 bankruptcy filings to be accounted for as nonperforming TDRs and collateral dependent loans regardless of their payment history and capacity to pay in the future. The Bancorp’s banking subsidiary is a state chartered bank which therefore is not subject to guidance of the OCC. The Bancorp does not consider the bankruptcy court’s discharge of the borrower’s debt a concession when the discharged d ebt is not reaffirmed and as such, these loans are classified as TDRs only if one or more of the previously mentioned concessions are granted. The Bancorp measures the impairment loss of a TDR based on the difference between the original loan’s carrying am ount and the present value of expected future cash flows discounted at the original, effective yield of the loan. Residential mortgage loans, home equity loans, automobile loans and other consumer loans modified as part of a TDR are maintained on accrual s tatus, provided there is reasonable assurance of repayment and of performance according to the modified terms based upon a current, well-documented credit evaluation. Commercial loans and credit card loans modified as part of a TDR are maintained on accrua l status provided there is a sustained payment history of six months or more prior to the modification in accordance with the modified terms and collectability is reasonably assured for all remaining contractual pa yments under the modified terms . TDRs of c ommercial loans and credit cards that do not have a sustained payment history of six months or more in accordance with their modified terms remain on nonaccrual status until a six month payment history is sustained. In certain cases, commercial TDRs on non accrual status may be accounted for using the cash basis method for income recognition, provided that full repayment of principal under the modified terms of the loan is reasonably assured. |
Impaired Loans and Leases | Impaired loans and l eases A loan is considered to be impaired when, based on current information and events, it is probable that the Bancorp will be unable to collect all amounts due (including both principal and interest) according to the contractual terms of the loan agreement. Impaired loans generally consist of n onaccrual loans and leases, loans modified in a TDR and loans over $ 1 million that are currently on accrual status and not yet modified in a TDR, but for which the Bancorp has determined that it is probable that it will grant a payment concession in the ne ar term due to the borrower’s financial difficulties. For loans modified in a TDR, the contractual terms of the loan agreement refer to the terms specified in the original loan agreement. A loan restructured in a TDR is no longer considered impaired in yea rs after the restructuring if the restructuring agreement specifies a rate equal to or greater than the rate the Bancorp was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan is not impaired based on the te rms specified by the restructuring agreement. Refer to the ALLL section for discussion regarding the Bancorp’s methodology for identifying impaired loans and determination of the need for a loss accrual. |
Loans and Leases Held for Sale | Loans and Leases Held for Sale Loans and leases held for sale primarily represent conforming fixed-rate residential mortgage loans originated or acquired with the intent to sell in the secondary market and jumbo residential mortgage loans, commercial loans, other residential mortgage loans and other con sumer loans that management has the intent to sell. Loans and leases held for sale may be carried at the lower of cost or fair value, or carried at fair value where the Bancorp has elected the fair value option of accounting under U.S. GAAP. The Bancorp ha s elected to measure certain groups of loans held for sale under the fair value option, including certain residential mortgage loans originated as held for sale and certain purchased commercial loans designated as held for sale at acquisition . For loans in which the Bancorp has not elected the fair value option, the lower of cost or fair value is determined at the individual loan level. The fair value of residential mortgage loans held for sale for which the fair value election has been made is estimated ba sed upon mortgage-backed securities prices and spreads to those prices or, for certain ARM loans, DCF models that may incorporate the anticipated portfolio composition, credit spreads of asset-backed securities with similar collateral and market conditions . The anticipated portfolio composition includes the effects of interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. These fair value marks are recorded as a component of noninterest income in mortgage banking net revenue. The Bancorp generally has commitments to sell residential mortgage loans held for sale in the secondary market. Gains or losses on sales are recognized in mortgage banking net revenue. Management’s intent to sell residential mortgage loans classified as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be reclassified to loans held for investment and, thereafter, reported within the Bancorp’s residential mortgage class of portfolio loans and leases. In such cases, the residential mortgage loans will continue to be measured at fair value, which is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Loans and leases held for sale are placed on nonaccrual status consistent with the Bancorp’s nonaccrual policy for portfolio loans and lea ses. |
Other Real Estate Owned | Other Real Estate Owned OREO, which is included in other assets in the Consolidated Balance Sheets , represents property acquired through foreclosure or other proceedings and is carried at the lower of cost or fair value, less costs to sell. All OREO property is periodically evaluated for impairment and decreases in carrying value are recognized as reductions in other noninterest income in the Consolidated Statements of Income. For government-guaranteed mortgage loans, upon foreclosure, a separate othe r receivable is recognized if certain conditions are met for the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. This receivable is also included in other assets, separate from OREO, in the Consolidated Bala nce Sheets. |
Allowance for Loans and Leases | ALLL The Bancorp disaggregates its portfolio loans and leases into portfolio segments for purposes of determining the ALLL. The Bancorp’s portfolio segments include commercial, residential mortgage and consumer. The Bancorp further disaggregat es its portfolio segments into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Classes within the commercial portfolio segment include commercial and industrial, commercial mortgage owner-occupied, com mercial mortgage nonowner-occupied, commercial construction and commercial leasing. The residential mortgage portfolio segment is also considered a class. Classes within the consumer portfolio segment include home equity, automobile, credit card and other consumer loans. For an analysis of the Bancorp’s ALLL by portfolio segment and credit quality information by class, refer to Note 6 . The Bancorp maintains the ALLL to absorb probable loan and lease losses inherent in its portfolio segments. The ALLL is maintained at a level the Bancorp considers to be adequate and is based on ongoing quarterly assessments and evaluations of the collectability and historical loss experience of loans and leases. Credit losses are charged and recoveries are credited to the ALLL. Provisions for loan and lease losses are based on the Bancorp’s review of the historical credit loss experience and such factors that, in management’s judgment, deserve consideration under existing economic conditions in estimating probable credit l osses. The Bancorp’s strategy for credit risk management includes a combination of conservative exposure limits significantly below legal lending limits and conservative underwriting, documentation and collections standards. The strategy also emphasizes di versification on a geographic, industry and customer level, regular credit examinations and quarterly management reviews of large credit exposures and loans experiencing deterioration of credit quality. The Bancorp’s methodology for determining the ALLL is based on historical loss rates, current credit grades, specific allocation on loans modified in a TDR and impaired commercial credits above specified thresholds and other qualitative adjustments. Allowances on individual commercial loans, TDRs and histori cal loss rates are reviewed quarterly and adjusted as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off experience. An unallocated allowance is maintained to recognize the imprecision in estimating and m easuring losses when evaluating allowances for pools of loans. Larger commercial loans included within aggregate borrower relationship balances exceeding $ 1 million that exhibit probable or observed credit weaknesses, as well as loans that have been modified in a TDR, are subject to individual review for impairment. The Bancorp considers the current value of collateral, credit quality of any guarantees, the guarantor’s liquidity and willingness to cooperate, the loan structure and other factors when evaluating whether an individual loan is impaired. Other factors may include the industry and geographic region of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower and the Bancorp’s evaluation of the borrower’s management. When individual loans are impaired, allowances are determined based on management’s estimate of the borrower’s ability to repay the loan given the availability of collateral and other sources of c ash flow, as well as an evaluation of legal options available to the Bancorp. Allowances for impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, fair value of the underlying collateral or readily observable secondary market values. The Bancorp evaluates the collectability of both principal and interest when assessing the need for a loss accrual. Historical credit loss rates are applied to commercial loans that are not impaire d or are impaired, but smaller than the established threshold of $ 1 million and thus not subject to specific allowance allocations. The loss rates are derived from migration analyses for several portfolio stratifications, which track the historical net cha rge-off experience sustained on loans according to their internal risk grade. The risk grading system utilized for allowance analysis purposes encompasses ten categories. Homogenous loans and leases in the residential mortgage and consumer portfolio segme nts are not individually risk graded. Rather, standard credit scoring systems and delinquency monitoring are used to assess credit risks and allowances are established based on the expected net charge-offs. Loss rates are based on the trailing twelve month net charge-off history by loan category. Historical loss rates may be adjusted for certain prescriptive and qualitative factors that, in management’s judgment, are necessary to reflect losses inherent in the portfolio. The prescriptive loss rate factors i nclude adjustments for delinquency trends, LTV trends, refreshed FICO score trends and product mix . The Bancorp also considers qualitative factors in determining the ALLL. These include adjustments for changes in policies or procedures in underwriting, monitoring or collections, economic conditions, portfolio mix, lending and risk management personnel, results of internal audit and quality control reviews, collateral values and geographic concentrations. The Bancorp considers home price index trends in i ts footprint and the volatility of collateral valuation trends when determining the collateral value qualitative factor . When evaluating the adequacy of allowances, consideration is given to regional geographic concentrations and the closely associated ef fect changing economic conditions have on the Bancorp’s customers. In the current year, the Bancorp has not substantively changed any material aspect to its overall approach to determining its ALLL for any of its portfolio segments. There have been no mate rial changes in criteria or estimation techniques as compared to prior periods that impacted the determination of the current period ALLL for any of the Bancorp’s portfolio segments. |
Reserve for Unfunded Commitments | Reserve for Unfunded Commitments The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities and is included in other liabilities in the Consolidated Balance Sheets. The determination of the adequacy of the reser ve is based upon an evaluation of the unfunded credit facilities, including an assessment of historical commitment utilization experience, credit risk grading and historical loss rates based on credit grade migration. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the Bancorp’s ALLL, as previously discussed. Net adjustments to the reserve for unfunded commitments are included in other noninterest expense in the Consolidated Statements o f Income. |
Loan Sales and Securitizations | Loan Sales and Securitizations The Bancorp periodically sells loans through either securitizations or individual loan sales in accordance with its investment policies. The sold loans are removed from the Consolidated Balance S heet and a net gain or loss is recognized in the Consolidated Financial Statements at the time of sale. The Bancorp typically isolates the loans through the use of a VIE and thus is required to assess whether the entity holding the sold or securitized loans is a VIE and whet her the Bancorp is the primary beneficiary and therefore consolidator of that VIE. If the Bancorp holds the power to direct activities most significant to the economic performance of the VIE and has the obligation to absorb losses or right to receive benef its that could potentially be significant to the VIE, then the Bancorp will generally be deemed the primary beneficiary of the VIE. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such va riable interests are accounted for under the equity method of accounting or other accounting standards as appropriate. Refer to Note 10 for further information on consolidated and non-consolidated VIEs. The Bancorp’s loan sales and securitizations are g enerally structured with servicing r etained, which often results in the recording of servicing rights. The Bancorp may also purchase servicing rights. Effective January 1, 2017, the Bancorp elected to prospectively adopt the fair value method for all exist ing classes of its residential mortgage servicing rights portfolio. Upon this election, all servicing rights are measured at fair value at each reporting date and changes in the fair value of servicing rights are reported in mortgage banking net revenue in the Consolidated Statements of Income in the period in which the changes occur. The election of the fair value method did not require a cumulative effect adjustment to retained earnings as there was no difference between the carrying value of the servicin g rights, net of valuation allowance, and the fair value. Servicing rights are valued using internal OAS models. Key economic assumptions used in estimating the fair value of the servicing rights include the prepayment speeds of the underlying loans, the w eighted-average life, the OAS spread and the weighted-average coupon rate, as applicable. The primary risk of material changes to the value of the servicing rights resides in the potential volatility in the economic assumptions used, particularly the prepa yment speeds. In order to assist in the assessment of the fair value of servicing rights, the Bancorp obtains external valuations of the servicing rights portfolio from third parties and participates in peer surveys that provide additional confirmation of the reasonableness of the key assumptions utilized in the internal OAS model. Prior to the election of the fair value method, servicing rights were initially recorded at fair value and subsequently amortized in proportion to, and over the period of, estima ted net servicing revenue. Servicing rights were tested for impairment monthly, based on fair value, with temporary impairment recognized through a valuation allowance and other-than-temporary impairment recognized through a write-off of the servicing asse t and related valuation allowance. Amortization and provisions for impairment of servicing rights were recorded as a component of mortgage banking net revenue in the Consolidated Statements of Income. Fees received for servicing loans owned by investors a re based on a percentage of the outstanding monthly principal balance of such loans and are included in noninterest income in the Consolidated Statements of Income as loan payments are received. Costs of servicing loans are charged to expense as incurred. |
Reserve For Representation And Warranty Provisions | Reserve for Representation and Warranty Provisions Conforming residential mortgage loans sold to unrelated third parties are generally sold with representation and warranty provisions. A contractual liability arises only in the event of a breach of these representations and warranties and, in general, only when a loss results from the breach. The Bancorp may be required to repurchase any previously sold loan or indemnify (make whole) the investor or insurer for which the representation or warranty of the B ancorp proves to be inaccurate, incomplete or misleading. The Bancorp establishes a residential mortgage repurchase reserve related to various representations and warranties that reflects management’s estimate of losses based on a combination of factors. T he Bancorp’s estimation process requires management to make subjective and complex judgments about matters that are inherently uncertain, such as future demand expectations, economic factors and the specific characteristics of the loans subject to repurcha se. Such factors incorporate historical investor audit and repurchase demand rates, appeals success rates, historical loss severity and any additional information obtained from the GSEs regarding future mortgage repurchase and file request criteria. At the time of a loan sale, the Bancorp records a representation and warranty reserve at the estimated fair value of the Bancorp’s guarantee and continually updates the reserve during the life of the loan as losses in excess of the reserve become probable and re asonably estimable. The provision for the estimated fair value of the representation and warranty guarantee arising from the loan sales is recorded as an adjustment to the gain on sale, which is included in other noninterest income at the time of sale. Upd ates to the reserve ar e recorded in other noninterest expense. |
Legal Contingencies | Legal Contingencies The Bancorp and its subsidiaries are parties to numerous claims and lawsuits as well as threatened or potential actions or claims concerning matters arising from the conduct of its business activities. The outcome of claims or litigation and the timing of ultimate resolution are inherently difficult to predict and significant judgment may be required in the determination of both the probability of loss and whether the amount of the loss is reasonably estimable. The Bancorp’s estimates are subjective and are based on the status of legal and regulatory proceedings, the merit of the Bancorp’s defenses and consultation with internal and external legal counsel. An accrual for a potential litigation loss is established when information related to the loss continge ncy indicates both that a loss is probable and that the amount of loss can be reasonably estimated. This accrual is included in other liabilities in the Consolidated Balance Sheets and is adjusted from time to time as appropriate to reflect changes in circ umstances. Legal expenses are recorded in other noninterest expense in the Consolidated Statements of Income. |
Bank Premises and Equipment and Other Long-Lived Assets | Bank Premises and Equipment and Other Long-Lived Assets Bank premises and equipment, including leasehold improvements, are carried at cost less a ccumulated depreciation and amortization. Depreciation is calculated using the straight-line method based on estimated useful lives of the assets for book purposes, while accelerated depreciation is used for income tax purposes. Amortization of leasehold i mprovements is computed using the straight-line method over the lives of the related leases or useful lives of the related assets, whichever is shorter. Whenever events or changes in circumstances dictate, the Bancorp tests its long-lived assets for impair ment by determining whether the sum of the estimated undiscounted future cash flows attributable to a long-lived asset or asset group is less than the carrying amount of the long-lived asset or asset group through a probability-weighted approach. In the ev ent the carrying amount of the long-lived asset or asset group is not recoverable, an impairment loss is measured as the amount by which the carrying amount of the long-lived asset or asset group exceeds its fair value. Maintenance, repairs and minor impro vements are charged to noninterest expense in the Conso lidated Statements of Income as incurred. |
Derivative Financial Instruments | Derivative Financial Instruments The Bancorp accounts for its derivatives as either assets or liabilities measured at fair value through adjustments to AOCI a nd/or current earnings, as appropriate. On the date the Bancorp enters into a derivative contract, the Bancorp designates the derivative instrument as either a fair value hedge, cash flow hedge or as a free-standing derivative instrument. For a fair value hedge, changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk are recorded in current period net income. For a cash flow hedge, changes in the fair value of the derivative instrument, to the extent that it is effective, are recorded in AOCI and subsequently reclassified to net income in the same period(s) that the hedged transaction impacts net income. For free-standing derivative instruments, changes in fair valu es are reported in current period net income. When entering into a hedge transaction, the Bancorp formally documents the relationship between the hedging instrument and the hedged item, as well as the risk management objective and strategy for undertaking the hedge transaction before the end of the quarter in which the transaction is consummated . This process includes linking the derivative instrument designated as a fair value or cash flow hedge to a specific asset or liability on the balance sheet or to s pecific forecasted transactions and the risk being hedged, along with a formal assessment at the inception of the hedge as to the effectiveness of the derivative instrument in offsetting changes in fair values or cash flows of the hedged item. The Bancorp continues to assess hedge effectiveness on an ongoing basis using a qualitative assessment when appropriate. A quantitative analysis of effectiveness may be performed either in place of or in addition to a qualitative assessment if deemed necessary. Effect ive January 1, 2018, in conjunction with adoption of ASU 2017-12, the Bancorp may also utilize the shortcut method to evaluate hedge effectiveness for certain qualifying hedges with matched terms that permit the assumption of perfect offset. If it is deter mined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued. |
Tax Receivable Agreements | Tax Receivable Agreements In conjunction with Vantiv, Inc.’s (now Worldpay, Inc.) IPO in 2012, the Bancorp entered into two TRAs with Worldpay , Inc. The TRA s provide for payments by Worldpay , Inc. to the Bancorp of 85% of the cash savings actually realized as a result of the increase in tax basis that results from the historical or future purchase of equity in Vantiv Holding, LLC (now Wo rldpay Holding, LLC) from the Bancorp or from the ex change of equity units in Worldpay Holding, LLC for cash or Class A Stock, as well as any tax benefits attributable to payments made under the TRA. Any actual increase in tax basis, as well as the amount and timing of any payments made under the TRA depend on a number of uncertain factors, the most significant of which is the realizati on of the tax benefits by Worldpay , Inc., which depends on th e amount and timing of Worldpay , Inc.’s reportable taxable inc ome. The Bancorp accounts for these TRAs as gain contingencies and recognizes income when all uncertainties surrounding the realization of such amounts are resolved. |
Investments in Qualified Affordable Housing Policy | Investments in Qualified Affordable Housing Projects The Bancorp invests in projects to c reate affordable housing, revitalize business and residential areas and preserve historic landmarks. These investments are classified as other assets on the Bancorp’s Consolidated Balance Sheets. Investments in affordable housing projects that qualify for LIHTC are accounted for using the proportional amortization method. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other benefits received and recognized as a component of ap plicable income tax expense (benefit) in the Consolidated Statements of Income. Investments which do not meet the qualification criteria for the proportional amortization method are accounted for using the equity method of accounting with impairment assoc iated with the investments recognized in other noninterest expense in the Consolidated Statements of Income. |
Income Taxes | Income Taxes The Bancorp accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for expected future tax consequences. Under the asset and liability method, deferred tax assets and liabilities are determined by applying the federal and state tax rates to the differences between financial statement carrying amounts and t he corresponding tax bases of assets and liabilities. Deferred tax assets are also recorded for any tax attributes, such as tax credits and net operating loss carryforwards. The net balances of deferred tax assets and liabilities are reported in other asse ts and accrued taxes, interest and expenses in the Consolidated Balance Sheets. Any effect of a change in federal or state tax rates on deferred tax assets and liabilities is recognized in income tax expense in the period that includes the enactment date. The Bancorp reflects the expected amount of income tax to be paid or refunded during the year as current income tax expense or benefit. Accrued taxes represent the net expected amount due to and/or from taxing jurisdictions and are reported in accrued taxe s , interest and expenses in the Consolidated Balance S heets. The Bancorp evaluates the realization of deferred tax assets based on all positive and negative evidence available at the balance sheet date. Realization of deferred tax assets is based on the Ba ncorp’s judgment about relevant factors affecting their realization, including the taxable income within any applicable carryback periods, future projected taxable income, the reversal of taxable temporary differences and tax-planning strategies. The Banco rp records a valuation allowance for deferred tax assets where the Bancorp does not believe that it is more-likely-than-not that the deferred tax assets will be realized. Income tax benefits from uncertain tax positions are recognized in the financial sta tements only if the Bancorp believes that it is more-likely-than-not that the uncertain tax position will be sustained based solely on the technical merits of the tax position and consideration of the relevant taxing authority’s widely understood administr ative practices and precedents. If the Bancorp does not believe that it is more-likely-than-not that an uncertain tax position will be sustained, the Bancorp records a liability for the uncertain tax position. If the Bancorp believes that it is more likely than not that an uncertain tax position will be sustained, the Bancorp only records a tax benefit for the portion of the uncertain tax position where the likelihood of realization is greater than 50% upon settlement with the relevant taxing authority that has full knowledge of all relevant information. The Bancorp recognizes interest expense, interest income and penalties related to unrecognized tax benefits within current income tax expense. Refer to Note 19 for further discussion regarding income ta xes . |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Earnings per diluted share is computed by dividing adjusted net income available to common shareholders by the weighted-average number of shares of common stock and common stock equivalents outstanding during the period. Dilutive common stock equivalents represent the exercise of dilutive stock-based awar ds and the dilutive effect of the settlement of outstanding forward contracts. The Bancorp calculates earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share separately for common stock and participating securities according to dividends declared and participation rights in undistributed earnings. For purposes of calculating earnings per share under the two-class method, restricted shares that contain nonforfeitable right s to dividends are considered participating securities until vested. While the dividends declared per share on such restricted shares are the same as dividends declared per common share outstanding, the dividends recognized on such restricted shares may be less because dividends paid on restricted shares that are expected to be forfeited are reclassified to compensation expense during the period when forfeiture is expected. |
Goodwill | Goodwill Business combinations entered into by the Bancorp typically include the a cquisition of goodwill. Goodwill is required to be tested for impairment at the Bancorp’s reporting unit level on an annual basis, which for the Bancorp is September 30, and more frequently if events or circumstances indicate that there may be impairment. The Bancorp has determined that its business segments qualify as reporting units under U.S. GAAP. Impairment exists when a reporting unit’s carrying amount of goodwill exceeds its implied fair value. In testing goodwill for impairment, U.S. GAAP permits th e Bancorp to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In this qualitative assessment, the Bancorp evaluates events and circumstances which may include, but are not limited to, the general economic environment, banking industry and market conditions, the overall financial performance of the Bancorp, the performance of the Bancorp’s common stock, the key financial performance metrics of the Bancor p’s reporting units and events affecting the reporting units. If, after assessing the totality of events and circumstances, the Bancorp determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test would be unnecessary. However, if the Bancorp concludes otherwise or elects to bypass the qualitative assessment, it would then be required to perform the first step (Step 1) of the goodwill impairment test, and con tinue to the second step (Step 2), if necessary. Step 1 of the goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, Step 2 of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The fair value of a reporting unit is the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. As none of the Bancorp’s reporting units are publicly traded, individual reporting unit fair value determinations cannot be directly correlated to the Bancorp’s stock price. To determine the fair value of a reporting unit, the Bancorp emp loys an income-based approach, utilizing the reporting unit’s forecasted cash flows (including a terminal value approach to estimate cash flows beyond the final year of the forecast) and the reporting unit’s estimated cost of equity as the discount rate. A dditionally, the Bancorp determines its market capitalization based on the average of the closing price of the Bancorp’s stock during the month including the measurement date, incorporating an additional control premium, and compares this market-based fair value measurement to the aggregate fair value of the Bancorp’s reporting units in order to corroborate the results of the income approach. When required to perform Step 2, the Bancorp compares the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount exceeds the implied fair value, an impairment loss equal to that excess amount is recognized. A recognized impairment loss cannot exceed the carrying amount of that goodwill and cannot be reversed i n future periods even if the fair value of the reporting unit subsequently recovers. During Step 2, the Bancorp determines the implied fair value of goodwill for a reporting unit by assigning the fair value of the reporting unit to all of the assets and li abilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. The excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities is the im plied fair value of goodwill. This assignment process is only performed for purposes of testing goodwill for impairment. The Bancorp does not adjust the carrying values of recognized assets or liabilities (other than goodwill, if appropriate), nor does it recognize previously unrecognized intangible assets in the Consolidated Financial Statements as a result of this assignment process. Refer to Note 8 for further information regarding the Bancorp’s goodwill. |
Fair Value of Financial Instruments | Fair Value Measurements The Bancorp mea sures 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 a t the measurement date. The Bancorp employs various valuation approaches to measure fair value including the market, income and cost approach es . The market approach uses prices or relevant information generated by market transactions involving identical or comparable assets or liabilities. The income approach involves discounting future amounts to a single present amount and is based on current market expectations about those future amounts. The cost approach is based on the amount that currently would be r equired to replace the service capacity of the asset. U.S. GAAP establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. The three levels within the fair value hierarchy are described as follows: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Bancorp has the abili ty to access at the measurement date. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are de rived principally from or corroborated by observable market data by correlation or other means. Level 3 – Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. Unobservable inputs reflec t the Bancorp’s own assumptions about what market participants would use to price the asset or liability. The inputs are developed based on the best information available in the circumstances, which might include the Bancorp’s own financial data such as in ternally developed pricing models and DCF methodologies, as well as instruments for which the fair value determination requires significant management judgment. The Bancorp’s fair value measurements involve various valuation techniques and models, which i nvolve inputs that are observable, when available. Valuation techniques and parameters used for measuring assets and liabilities are reviewed and validated by the Bancorp on a quarterly basis. Additionally, the Bancorp monitors the fair values of significa nt assets and liabilities using a variety of methods including the evaluation of pricing runs and exception reports based on certain analytical criteria, comparison to previous trades and overall review and assessments for reasonableness. The Bancorp may, as a practical expedient, measure the fair value of certain investments on the basis of the net asset value per share of the investment, or its equivalent. Any investments which are valued using this practical expedient are not classified in the fair value hierarchy. Refer to Note 26 for further information on fair value measurements. |
Stock-Based Compensation | Stock-Based Compensation The Bancorp recognizes compensation expense for the grant-date fair value of stock-based awards that are expected to vest over the requisit e service period. All awards, both those with cliff vesting and graded vesting, are expensed on a straight-line basis. Awards to employees that meet eligible retirement status are expensed immediately. As compensation expense is recognized, a deferred tax asset is recorded that represents an estimate of the future tax deduction from exercise or release of restrictions. At the time awards are exercised, cancelled, expire or restrictions are released, the Bancorp recognizes an adjustment to income tax expense for the difference between the previously estimated tax deduction and the actual tax deduction realized. For further information on the Bancorp’s stock-based compensation plans, refer to Note 23 . |
Pension Plans | Pension Plans The Bancorp uses an expected long-ter m rate of return applied to the fair market value of assets as of the beginning of the year and the expected cash flow during the year for calculating the expected investment return on all pension plan assets. Amortization of the net gain or loss resulting from experience different from that assumed and from changes in assumptions (excluding asset gains and losses not yet reflected in market-related value) is included as a component of net periodic benefit cost. If, as of the beginning of the year, that net gain or loss exceeds 10% of the greater of the projected benefit obligation and the market-related value of plan assets, the amortization is that excess divided by the average remaining service period of participating employees expected to receive benefit s under the plan. The Bancorp uses a third-party actuary to compute the remaining service period of participating employees. This period reflects expected turnover, pre-retirement mortality and other applicable employee demographics. |
Other | Other Securities and other property held by Fifth Third Wealth and Asset M anagement , a division of the Bancorp’s banking subsidiary, in a fiduciary or agency capacity are not included in the Consolidated Balance Sheets because such items are not assets of the subsidiaries. The Bancorp purchases life insurance policies on the lives of certain directors, officers and employees and is the owner and beneficiary of the policies. The Bancorp invests in these policies, known as BOLI, to provide an efficient form of funding for long-term retirement and other employee benefits costs. T he Bancorp records these BOLI policies within other assets in the Consolidated Balance Sheets at each policy’s respective cash surrender value, with changes recorded in other noninterest income in the Consolidated Statements of Income. I ntangible assets co nsist of core deposit intangibles, customer relationships, non-compete agreements, trade names and rent intangibles. I ntangible assets are amortized on either a straight-line or an accelerated basis over their estimated useful lives. T he Bancorp reviews in tangible assets for impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Securities sold under repurchase agreements are accounted for as secured borrowings and included in other short-term borrowings in the Consolidated Balance Sheets at the amounts at which the securities were sold plus accrued interest. Acquisitions of treasury stock are carried at cost. Reissuance of shares in treasury for acquisitions, exercises of stock-based awards or other corporate purposes is recorded based on the specific identification method. Advertising costs are generally expensed as incurred. |
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 un der the contract, except in transactions 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 significant 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 inte rest income is derived from loans 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 Investme nt Securities sections of this footnote for further information. The following provides additional information about the components of noninterest income: Service charges on deposits consist primarily of treasury management 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 management 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 services 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 statement 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 general ly 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 management revenue also includes trailin g commissions received from investments and annuities held in customer accounts, which are recognized in revenue when the Bancorp determines that it has satisfied its performance obligations and has sufficient information to estimate the amount of the comm issions to which it expects to be entitled. Corporate banking revenue consists 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 revenue 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 o bligations 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 c redit card associations and expenses of certain transaction-based rewards programs offered to customers). These costs reduced card and processing revenue by approximately $ 127 million for the year ended December 31, 2018. Mortgage banking net revenue consi sts 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 of this footnote for further information. Other noninterest i ncome 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting and Reporting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
LIHTC Restatement | |
LIHTC Restatement | The following tables provides a summary of the impact of the change in accounting principle for qualifying LIHTC investments on the Bancorp’s Consolidated Financial Statements as of and for the years ended December 31: $ in millions, except per share data 2018 Pre-LIHTC Adjustment Adjustments As Adjusted Consolidated Balance Sheet caption Other assets $ 7,463 (91) 7,372 Accrued taxes, interest and expenses 1,508 54 1,562 Retained earnings 16,723 (145) 16,578 Consolidated Statement of Income caption Total noninterest expense $ 4,103 (175) 3,928 Income before income taxes 2,590 175 2,765 Applicable income tax expense 417 155 572 Net income $ 2,173 20 2,193 Earnings per share - basic $ 3.10 0.01 3.11 Earnings per share - diluted $ 3.05 0.01 3.06 $ in millions, except per share data 2017 As Originally Reported Adjustments As Adjusted Consolidated Balance Sheet caption Other assets $ 6,975 (112) 6,863 Accrued taxes, interest and expenses 1,412 53 1,465 Retained earnings 15,122 (165) 14,957 Consolidated Statement of Income caption Total noninterest expense $ 3,990 (208) 3,782 Income before income taxes 2,771 208 2,979 Applicable income tax expense 577 222 799 Net income $ 2,194 (14) 2,180 Earnings per share - basic $ 2.88 (0.02) 2.86 Earnings per share - diluted $ 2.83 (0.02) 2.81 $ in millions, except per share data 2016 As Originally Reported Adjustments As Adjusted Consolidated Balance Sheet caption Other assets $ 7,844 (97) 7,747 Accrued taxes, interest and expenses 1,800 54 1,854 Retained earnings 13,441 (151) 13,290 Consolidated Statement of Income caption Total noninterest expense $ 3,903 (143) 3,760 Income before income taxes 2,065 143 2,208 Applicable income tax expense 505 160 665 Net income $ 1,560 (17) 1,543 Earnings per share - basic $ 1.95 (0.03) 1.92 Earnings per share - diluted $ 1.93 (0.02) 1.91 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31: ($ in millions) 2018 2017 2016 Cash Payments: Interest $ 1,016 699 578 Income taxes 359 1,035 800 Transfers: Portfolio loans to loans held for sale 275 255 238 Loans held for sale to portfolio loans 95 29 28 Portfolio loans to OREO 39 34 49 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investment Securities | |
Investment Securities | The following table provides the amortized cost, fair value and unrealized gains and losses for the major categories of the available-for-sale debt and other securities and held-to-maturity securities portfolios as of December 31: 2018 2017 Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair ($ in millions) Cost Gains Losses Value Cost Gains Losses Value Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 98 - (1) 97 98 - - 98 Obligations of states and political subdivisions securities 2 - - 2 43 1 - 44 Mortgage-backed securities: Agency residential mortgage-backed securities (a) 16,403 86 (242) 16,247 15,281 118 (80) 15,319 Agency commercial mortgage-backed securities 10,770 44 (164) 10,650 10,113 92 (38) 10,167 Non-agency commercial mortgage-backed securities 3,305 9 (47) 3,267 3,247 51 (5) 3,293 Asset-backed securities and other debt securities 1,998 27 (10) 2,015 2,183 46 (11) 2,218 Other securities (b) 552 - - 552 612 - - 612 Total available-for-sale debt and other securities $ 33,128 166 (464) 32,830 31,577 308 (134) 31,751 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 16 - - 16 22 - - 22 Asset-backed securities and other debt securities 2 - - 2 2 - - 2 Total held-to-maturity securities $ 18 - - 18 24 - - 24 Includes interest-only mortgage-backed securities of $ 0 and $ 34 as of December 31, 2018 and 2017 , respectively, recorded at fair value with fair value changes recorded in securities (losses) gains, net , i n the Consolidated Statements of Income . Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 184 , $ 366 and $ 2 , respectively, at December 31, 2018 and $ 248 , $ 362 and $ 2 , respectively, at Dece mber 31, 2017 , that are carried at cost The following table provides the fair value of trading debt securities and equity securities as of December 31: ($ in millions) 2018 2017 Trading debt securities $ 287 492 Equity securities 452 439 |
Realized Gains and Losses Recognized in Income from Investment Securities | The following table presents securities (losses) gains recognized in the Consolidated Statements of Income as of December 31: ($ in millions) 2018 2017 2016 Available-for-sale debt and other securities: Realized gains $ 72 85 72 Realized losses (82) (36) (49) OTTI - (54) (15) Net realized (losses) gains on available-for-sale debt and other securities $ (10) (5) 8 Total trading debt securities (losses) gains $ (15) 2 - Total equity securities (losses) gains (a) $ (44) 7 2 Total (losses) gains recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities (b) $ (69) 4 10 Includes $ 45 of net unrealized losses for the year ended December 31, 2018 and net unrealized gains of $ 5 and $ 3 for the years ended December 31, 2017 and 2016 , respectively. Excludes an insignificant amount of securities gains (losses) included in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income related to securities held by FTS to facilitate the timely execution of customer transactions. |
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 December 31, 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 $ 3 3 - - 1-5 years 10,052 10,015 16 16 5-10 years 18,394 18,197 - - Over 10 years 4,127 4,063 2 2 Other securities 552 552 - - Total $ 33,128 32,830 18 18 (a) Actual maturities may differ from contractu al maturities when a right to call or prepay obligations exists with or without call or prepayment penalties. |
Fair Value and Gross Unrealized Loss of Securities Available for Sale | The following table provides the fair value and gross unrealized losses on available-for-sale 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 December 31: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized ($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses 2018 U.S. Treasury and federal agencies securities $ - - 97 (1) 97 (1) Agency residential mortgage-backed securities 3,235 (21) 7,892 (221) 11,127 (242) Agency commercial mortgage-backed securities 2,022 (37) 5,260 (127) 7,282 (164) Non-agency commercial mortgage-backed securities 884 (6) 1,621 (41) 2,505 (47) Asset-backed securities and other debt securities 314 (6) 241 (4) 555 (10) Total $ 6,455 (70) 15,111 (394) 21,566 (464) 2017 U.S. Treasury and federal agencies securities $ 98 - - - 98 - Agency residential mortgage-backed securities 7,337 (59) 479 (21) 7,816 (80) Agency commercial mortgage-backed securities 2,900 (22) 526 (16) 3,426 (38) Non-agency commercial mortgage-backed securities 449 (2) 145 (3) 594 (5) Asset-backed securities and other debt securities 317 (2) 386 (9) 703 (11) Total $ 11,101 (85) 1,536 (49) 12,637 (134) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 12 Months Ended |
Dec. 31, 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 December 31: ($ in millions) 2018 2017 Loans and leases held for sale: Commercial and industrial loans $ 67 - Commercial mortgage loans 3 6 Residential mortgage loans 537 486 Total loans and leases held for sale $ 607 492 Portfolio loans and leases: Commercial and industrial loans $ 44,340 41,170 Commercial mortgage loans 6,974 6,604 Commercial construction loans 4,657 4,553 Commercial leases 3,600 4,068 Total commercial loans and leases 59,571 56,395 Residential mortgage loans 15,504 15,591 Home equity 6,402 7,014 Automobile loans 8,976 9,112 Credit card 2,470 2,299 Other consumer loans 2,342 1,559 Total consumer loans 35,694 35,575 Total portfolio loans and leases $ 95,265 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 and net charge-offs (recoveries) as of and for the years ended December 31: 90 Days Past Due Net Carrying Value and Still Accruing Charge-Offs (Recoveries) ($ in millions) 2018 2017 2018 2017 2018 2017 Commercial and industrial loans $ 44,407 41,170 4 3 132 111 Commercial mortgage loans 6,977 6,610 2 - (1) 12 Commercial construction loans 4,657 4,553 - - - - Commercial leases 3,600 4,068 - - 1 2 Residential mortgage loans 16,041 16,077 38 57 7 7 Home equity 6,402 7,014 - - 12 19 Automobile loans 8,976 9,112 12 10 40 37 Credit card 2,470 2,299 37 27 101 84 Other consumer loans 2,342 1,559 - - 38 26 Total loans and leases $ 95,872 92,462 93 97 330 298 Less: Loans and leases held for sale $ 607 492 Total portfolio loans and leases $ 95,265 91,970 |
Investment in Lease Financing | The following table provides the components of the commercial lease financing portfolio as of December 31: ($ in millions) 2018 2017 Rentals receivable, net of principal and interest on nonrecourse debt $ 3,256 3,684 Estimated residual value of leased assets 804 885 Initial direct cost, net of amortization 19 22 Gross investment in commercial lease financing 4,079 4,591 Unearned income (479) (523) Net investment in commercial lease financing (a) $ 3,600 4,068 The accumulated allowance for uncollectible minimum lease payments wa s $ 18 and $ 14 at December 31, 2018 and 2017 , respectively. |
Credit Quality and the Allowa_2
Credit Quality and the Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Credit Quality and the Allowance for Loan and Leases Losses | |
Summary of Transactions in the ALLL | The following tables summarize transactions in the ALLL by portfolio segment for the years ended December 31: Residential 2018 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 753 89 234 120 1,196 Losses charged-off (a) (157) (13) (280) - (450) Recoveries of losses previously charged-off (a) 25 6 89 - 120 Provision for (benefit from) loan and lease losses 24 (1) 224 (10) 237 Balance, end of period $ 645 81 267 110 1,103 (a) For the year ended December 31, 2018 , the Bancorp recorded $29 in both losses charged-off and recoveries of losses charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. Residential 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 831 96 214 112 1,253 Losses charged-off (154) (15) (212) - (381) Recoveries of losses previously charged-off 29 8 46 - 83 Provision for loan and lease losses 66 - 186 9 261 Deconsolidation of a VIE (a) (19) - - (1) (20) Balance, end of period $ 753 89 234 120 1,196 (a) Refer to Note 10 for further discussion on the deconsolidation of a VIE. Residential 2016 ($ in millions) Commercial Mortgage Consumer Unallocated Total Balance, beginning of period $ 840 100 217 115 1,272 Losses charged-off (232) (19) (205) - (456) Recoveries of losses previously charged-off 42 9 43 - 94 Provision for (benefit from) loan and lease losses 181 6 159 (3) 343 Balance, end of period $ 831 96 214 112 1,253 |
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment | The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: Residential As of December 31, 2018 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 42 a 61 38 - 141 Collectively evaluated for impairment 603 20 229 - 852 Unallocated - - - 110 110 Total ALLL $ 645 81 267 110 1,103 Portfolio loans and leases: (b) Individually evaluated for impairment $ 277 a 736 278 - 1,291 Collectively evaluated for impairment 59,294 14,589 19,912 - 93,795 Total portfolio loans and leases $ 59,571 15,325 20,190 - 95,086 Includes $ 1 related to leveraged leases at December 31, 2018 . Excludes $ 179 of residential mortgage loans measured at fair value and includes $ 624 of leveraged leases, net of unearned income, at December 31, 2018 . Residential As of December 31, 2017 ($ in millions) Commercial Mortgage Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 94 a 64 42 - 200 Collectively evaluated for impairment 659 25 192 - 876 Unallocated - - - 120 120 Total ALLL $ 753 89 234 120 1,196 Portfolio loans and leases: (b) Individually evaluated for impairment $ 560 a 665 320 - 1,545 Collectively evaluated for impairment 55,835 14,787 19,664 - 90,286 Loans acquired with deteriorated credit quality - 2 - - 2 Total portfolio loans and leases $ 56,395 15,454 19,984 - 91,833 Includes $ 1 related to leveraged leases at December 31, 2017 . Excludes $ 137 of residential mortgage loans measured at fair value and includes $ 674 of leveraged leases, net of unearned income at December 31, 2017 . |
Loan and leases balances by credit quality indicator | The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class: Special As of December 31, 2018 ($ in millions) Pass Mention Substandard Doubtful Total Commercial and industrial loans $ 42,695 779 853 13 44,340 Commercial mortgage owner-occupied loans 3,122 23 139 - 3,284 Commercial mortgage nonowner-occupied loans 3,632 27 31 - 3,690 Commercial construction loans 4,657 - - - 4,657 Commercial leases 3,475 72 53 - 3,600 Total commercial loans and leases $ 57,581 901 1,076 13 59,571 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 December 31: 2018 2017 ($ in millions) Performing Nonperforming Performing Nonperforming Residential mortgage loans (a) $ 15,303 22 15,424 30 Home equity 6,332 70 6,940 74 Automobile loans 8,975 1 9,111 1 Credit card 2,444 26 2,273 26 Other consumer loans 2,341 1 1,559 - Total residential mortgage and consumer loans (a) $ 35,395 120 35,307 131 (a) Excludes $ 179 and $ 137 of residential mortgage loans measured at fair value at December 31, 2018 and 2017 , respectively . |
Summary by Age and Class of the Recorded Investment in Delinquencies Included in the Bancorp's Portfolio of Loans and Leases | The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases, by age and class: Current Past Due 90 Days Past Loans and 30-89 90 Days Total Total Loans Due and Still As of December 31, 2018 ($ in millions) Leases (b)(c) Days (c) or More (c) Past Due and Leases Accruing Commercial loans and leases: Commercial and industrial loans $ 44,213 32 95 127 44,340 4 Commercial mortgage owner-occupied loans 3,277 1 6 7 3,284 2 Commercial mortgage nonowner-occupied loans 3,688 1 1 2 3,690 - Commercial construction loans 4,657 - - - 4,657 - Commercial leases 3,597 1 2 3 3,600 - Residential mortgage loans (a) 15,227 37 61 98 15,325 38 Consumer loans: Home equity 6,280 71 51 122 6,402 - Automobile loans 8,844 119 13 132 8,976 12 Credit card 2,381 47 42 89 2,470 37 Other consumer loans 2,323 17 2 19 2,342 - Total portfolio loans and leases (a) $ 94,487 326 273 599 95,086 93 Excludes $ 179 of residential mortgage loans measured at fair value at December 31, 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. As of December 31, 2018 , $ 90 of these loans were 30-89 days past due and $ 195 w ere 90 days or more past due. The Bancorp recognized $ 5 o f losses during the year ended December 31, 2018 due to claim denials and curtailments as sociated 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 (a) $ 91,195 333 305 638 91,833 97 Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA . As of December 31, 2017 , $ 95 of these loans were 30-89 days past due and $ 290 were 90 days or more past due. The Bancorp recognized $ 5 of losses during the year ended December 31, 2017 due to claim denials and curtailments a ssociated with these insured or guaranteed loans . Includes accrual and nonaccrual loans and leases . |
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class | The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR as of December 31: Unpaid Principal Recorded 2018 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 156 107 34 Commercial mortgage owner-occupied loans 2 2 1 Commercial mortgage nonowner-occupied loans 2 1 - Commercial leases 23 22 7 Restructured residential mortgage loans 465 462 61 Restructured consumer loans: Home equity 146 145 22 Automobile loans 5 4 1 Credit card 47 44 15 Total impaired portfolio loans and leases with a related ALLL $ 846 787 141 With no related ALLL: Commercial loans: Commercial and industrial loans $ 137 125 - Commercial mortgage owner-occupied loans 9 9 - Commercial mortgage nonowner-occupied loans 11 11 - Restructured residential mortgage loans 292 274 - Restructured consumer loans: Home equity 85 83 - Automobile loans 2 2 - Total impaired portfolio loans with no related ALLL $ 536 504 - Total impaired portfolio loans and leases $ 1,382 1,291 (a) 141 Includes $ 60 , $ 724 and $ 237 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 147 , $ 12 and $ 41 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2018 . Unpaid Principal Recorded 2017 ($ in millions) Balance Investment ALLL With a related ALLL: Commercial loans and leases: Commercial and industrial loans $ 433 358 87 Commercial mortgage owner-occupied loans 16 14 7 Commercial mortgage nonowner-occupied loans 4 3 - Commercial leases 4 4 - Restructured residential mortgage loans 469 465 64 Restructured consumer loans: Home equity 172 172 27 Automobile loans 8 7 1 Credit card 52 45 14 Total impaired portfolio loans and leases with a related ALLL $ 1,158 1,068 200 With no related ALLL: Commercial loans and leases: 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 and leases 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 TDRs on accrual status and $ 150 , $ 13 and $ 45 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2017 The following table summarizes the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the years ended December 31: 2018 2017 2016 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income ($ in millions) Investment Recognized Investment Recognized Investment Recognized Commercial loans and leases: Commercial and industrial loans $ 373 15 579 10 691 10 Commercial mortgage owner-occupied loans (a) 15 - 35 - 63 1 Commercial mortgage nonowner-occupied loans 24 - 61 1 139 5 Commercial construction loans - - - - 3 - Commercial leases 18 - 3 - 5 - Restructured residential mortgage loans 743 28 657 25 647 25 Restructured consumer loans: Home equity 244 12 281 12 325 12 Automobile loans 8 - 11 - 17 - Credit card 44 5 50 4 56 5 Total average impaired portfolio loans and leases $ 1,469 60 1,677 52 1,946 58 Excludes five restructured loans associated with a consolid ated VIE in which the Bancorp had no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 13 and $ 26 for t he years ended December 31, 2017 and 2016, respectively. An immaterial amount of interest income was recognized during both t he years ended December 31, 2017 and 2016. Refer to Note 10 for further discus sion on the deconsolidation of the VIE associated with these loans in the third qu arter of 2017. |
Summary of the Bancorp's Nonperforming Loans and Leases by Class | The following table presents the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of December 31: ($ in millions) 2018 2017 Commercial loans and leases: Commercial and industrial loans $ 193 276 Commercial mortgage owner-occupied loans 11 19 Commercial mortgage nonowner-occupied loans 2 7 Commercial leases 22 4 Total nonaccrual portfolio commercial loans and leases 228 306 Residential mortgage loans 22 30 Consumer loans: Home equity 69 74 Automobile loans 1 1 Credit card 27 26 Other consumer loans 1 - Total nonaccrual portfolio consumer loans 98 101 Total nonaccrual portfolio loans and leases (a)(b) $ 348 437 OREO and other repossessed property 47 52 Total nonperforming portfolio assets (a)(b) $ 395 489 Excludes $ 16 and $ 6 of nonaccrual loans and leases held for sale at December 31, 2018 and 2017 , respectively. Includes $ 6 and $ 3 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at December 31, 2018 and 2017 , respectively, of which $ 2 and $ 3 are restructured nonaccrual government insured commercial loans at December 31, 2018 and 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 years ended December 31: Recorded Investment Increase Number of Loans in Loans Modified (Decrease) Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon 2018 ($ in millions) (a) During the Year (b) During the Year Modification Modification Commercial loans and leases: Commercial and industrial loans 54 $ 200 1 7 Commercial mortgage owner-occupied loans 6 3 (1) - Commercial mortgage nonowner-occupied loans 3 - - - Residential mortgage loans 1,128 168 4 - Consumer loans: Home equity 111 7 - - Automobile loans 84 - - - Credit card 7,483 37 9 2 Total portfolio loans and leases 8,869 $ 415 13 9 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded Investment Increase (Decrease) Number of Loans in Loans Modified Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon 2017 ($ in millions) (a) During the Year (b) During the Year Modification Modification Commercial loans and leases: Commercial and industrial loans 75 $ 237 (5) 6 Commercial mortgage owner-occupied loans 9 8 5 - Commercial mortgage nonowner-occupied loans 4 - - - Commercial leases 1 4 - - Residential mortgage loans 830 116 5 - Consumer loans: Home equity 150 10 - - Automobile loans 102 - - - Credit card 8,085 38 8 1 Total portfolio loans and leases 9,256 $ 413 13 7 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . Represents number of loans post-modification and excludes loans previously modified in a TDR . Recorded Investment Number of Loans in Loans Modified Increase Charge-offs Modified in a TDR in a TDR to ALLL Upon Recognized Upon 2016 ($ in millions) (a) During the Year (b) During the Year Modification Modification Commercial loans and leases: Commercial and industrial loans 74 $ 183 14 - Commercial mortgage owner-occupied loans 12 11 - - Commercial mortgage nonowner-occupied loans 4 5 2 - Commercial leases 5 16 - - Residential mortgage loans 924 137 8 - Consumer loans: Home equity 219 15 - - Automobile loans 221 3 - - Credit card 9,519 43 8 4 Total portfolio loans and leases 10,978 $ 413 32 4 Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. Represents number of loans post-modification and excludes loans previously modified in a TDR. |
Summary of Subsequent Defaults | The following tables provide a summary of TDRs that subsequently defaulted during the years ended December 31, 2018, 2017 and 2016 and were within twelve months of the restructuring date: Number of Recorded December 31, 2018 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 8 $ 61 Commercial mortgage owner-occupied loans 2 - Residential mortgage loans 225 35 Consumer loans: Home equity 10 - Credit card 655 4 Total portfolio loans and leases 900 $ 100 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. Number of Recorded December 31, 2017 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 7 $ 17 Commercial mortgage owner-occupied loans 4 1 Residential mortgage loans 172 24 Consumer loans: Home equity 16 2 Credit card 1,633 8 Total portfolio loans and leases 1,832 $ 52 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. Number of Recorded December 31, 2016 ($ in millions) (a) Contracts Investment Commercial loans and leases: Commercial and industrial loans 8 $ 5 Commercial mortgage owner-occupied loans 2 - Commercial leases 2 1 Residential mortgage loans 172 25 Consumer loans: Home equity 17 1 Automobile loans 2 - Credit card 1,715 7 Total portfolio loans and leases 1,918 $ 39 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Bank Premises and Equipment | |
Bank Premises and Equipment | The following table provides a summary of bank premises and equipment as of December 31: ($ in millions) Estimated Useful Life 2018 2017 Land and improvements (a) $ 586 644 Buildings (a) 2 - 30 yrs. 1,547 1,679 Equipment 2 - 20 yrs. 1,987 1,876 Leasehold improvements 1 - 30 yrs. 403 399 Construction in progress (a) 81 93 Bank premises and equipment held for sale: Land and improvements 25 17 Buildings 14 9 Equipment 3 1 Accumulated depreciation and amortization (2,785) (2,715) Total bank premises and equipment $ 1,861 2,003 (a) At December 31, 2018 and 2017 , land and improvements, buildings and construction in progress included $55 and $91, respectively, associated with parcels of undeveloped land intended for future branch expansion. |
Annual Future Minimum Payments under Capital Leases and Noncancelable Operating Leases | The following table provides the annual future minimum payments under noncancelable operating leases and capital leases for the years ending December 31: ($ in millions) Noncancelable Operating Leases Capital Leases 2019 $ 86 6 2020 80 5 2021 67 4 2022 60 4 2023 54 - Thereafter 256 1 Total minimum lease payments $ 603 20 Less: Amounts representing interest - 2 Present value of net minimum lease payments $ - 18 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill | |
Changes in the Net Carrying Amount of Goodwill by Reporting Segment | Changes in the net carrying amount of goodwill, by reporting unit, for the years ended December 31, 2018 and 2017 were as follows: Commercial Branch Consumer Wealth and Asset ($ in millions) Banking Banking Lending Management Total Goodwill $ 1,363 1,655 215 148 3,381 Accumulated impairment losses (750) - (215) - (965) Net carrying amount as of December 31, 2016 $ 613 1,655 - 148 2,416 Acquisition activity - - - 29 29 Net carrying amount as of December 31, 2017 $ 613 1,655 - 177 2,445 Acquisition activity 17 - - 16 33 Net carrying amount as of December 31, 2018 $ 630 1,655 - 193 2,478 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2018 Core deposit intangibles $ 34 (30) 4 Customer relationships 32 (3) 29 Non-compete agreements 14 (11) 3 Other 7 (3) 4 Total intangible assets $ 87 (47) 40 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 years ending December 31, 2019 through 2023 is as follows: ($ in millions) Total 2019 $ 6 2020 4 2021 4 2022 3 2023 3 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities | |
Consolidation of Variable Interest Entities Disclosure | Consolidated VIEs The following tables provide a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Consolidated Balance Sheets as of: Automobile Loan CDC December 31, 2018 ($ in millions) Securitizations Investments Total Assets: Other short-term investments $ 40 - 40 Commercial mortgage loans - - - Automobile loans 668 - 668 ALLL (4) - (4) Other assets 5 - 5 Total assets $ 709 - 709 Liabilities: Other liabilities $ 1 - 1 Long-term debt 606 - 606 Total liabilities $ 607 - 607 Noncontrolling interests $ - - - 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 Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of: Total Total Maximum December 31, 2018 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,198 376 1,198 Private equity investments 41 - 73 Loans provided to VIEs 2,331 - 3,617 Total Total Maximum December 31, 2017 ($ in millions) Assets Liabilities Exposure CDC investments $ 1,264 355 1,264 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 qualifying LIHTC investments using the proportional amortization method of accounting. The following table summarizes the impact to the Consolidated Statements of Income relating to investments in qualified affordable housing investments: Consolidated Statements of For the years ended December 31 ($ in millions) Income Caption (a) 2018 2017 2016 Proportional amortization Applicable income tax expense $ 154 223 153 Tax credits and other benefits Applicable income tax expense (192) (220) (210) (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or othe r circumstances during the years ended December 31, 2018 , 2017 and 2016. The Bancorp recognized $57, as adjusted, of impairment losses primarily due to the change in the federal statutory corporate tax rate during the year ended December 31, 2017. |
Sales of Receivables and Serv_2
Sales of Receivables and Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Sales of Receivables and Servicing Rights | |
Activity Related to Mortgage Banking Net Revenue | Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Consolidated Statements of Income, for the years ended December 31 is as follows: ($ in millions) 2018 2017 2016 Residential mortgage loan sales (a) $ 5,078 6,369 6,927 Origination fees and gains on loan sales 100 138 186 Gross mortgage servicing fees 216 206 199 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 years ended December 31: ($ in millions) 2018 2017 Balance, beginning of period $ 858 744 Servicing rights originated - residential mortgage loans 81 127 Servicing rights acquired - residential mortgage loans 82 109 Changes in fair value: Due to changes in inputs or assumptions (a) 42 (1) Other changes in fair value (b) (125) (121) Balance, end of period $ 938 858 Primarily reflects changes in prepayment speed and OAS spread assumptions which are updated based on market interest rates. Primarily reflects changes due to collection of contractual cash flows and the passage of time. |
Activity Related to the MSR Portfolio | The following table presents activity related to valuations of the MSR portfolio and the impact of the non-qualifying hedging strategy for the years ended December 31: ($ in millions) 2018 2017 2016 Securities (losses) gains, net - non-qualifying hedges on MSRs $ (15) 2 - Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) (21) 2 24 MSR fair value adjustment due to changes in inputs or assumptions (a) 42 (1) - Recovery of MSR impairment (a) - - 7 Included in mortgage banking net reven ue in the Consolidated Statements of Income. |
Servicing Assets and Residual Interests Economic Assumptions | The key economic assumptions used in measuring the interests in residential mortgage loans that continued to be held by the Bancorp at the date of sale, securitization, or purchase resulting from transactions completed during the years ended December 31 were as follows: 2018 2017 Weighted- Prepayment Weighted- Prepayment Average Life Speed OAS Spread Average Life Speed OAS Spread Rate (in years) (annual) (bps) (in years) (annual) (bps) Residential mortgage loans: Servicing rights Fixed 6.6 10.5 % 522 7.5 9.1 % 497 Servicing rights Adjustable 2.6 30.3 647 2.7 32.1 660 |
Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions | At December 31, 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 Fair Weighted-Average Life Impact of Adverse Change on Fair Value OAS Spread Impact of Adverse Change on Fair Value ($ in millions) (a) Rate Value (in years) Rate 10% 20% 50% (bps) 10% 20% Residential mortgage loans: Servicing rights Fixed $ 925 6.2 10.2 % $ (36) (69) (158) 534 $ (18) (35) Servicing rights Adjustable 13 3.5 23.0 (1) (2) (3) 863 - (1) (a) The impact of the weighted-aver age default rate on the current fair value of residual cash flows for all scenarios is immaterial . |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 Consolidated Balance Sheets as of: Fair Value Notional Derivative Derivative December 31, 2018 ($ in millions) Amount Assets Liabilities Derivatives Designated as Qualifying Hedging Instruments Fair value hedges: Interest rate swaps related to long-term debt $ 3,455 262 2 Total fair value hedges 262 2 Cash flow hedges: Interest rate floors related to C&I loans 3,000 69 - Interest rate swaps related to C&I loans 8,000 15 27 Total cash flow hedges 84 27 Total derivatives designated as qualifying hedging instruments 346 29 Derivatives Not Designated as Qualifying Hedging Instruments Free-standing derivatives - risk management and other business purposes: Interest rate contracts related to MSR portfolio 10,045 40 14 Forward contracts related to residential mortgage loans held for sale 926 - 8 Swap associated with the sale of Visa, Inc. Class B Shares 2,174 - 125 Foreign exchange contracts 133 4 - Total free-standing derivatives - risk management and other business purposes 44 147 Free-standing derivatives - customer accommodation: Interest rate contracts 55,012 262 278 Interest rate lock commitments 407 7 - Commodity contracts 6,511 307 278 TBA securities 18 - - Foreign exchange contracts 13,205 148 142 Total free-standing derivatives - customer accommodation 724 698 Total derivatives not designated as qualifying hedging instruments 768 845 Total $ 1,114 874 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 Consolidated Statements of Income: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2018 2017 2016 Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ (36) (33) (59) Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt 41 31 54 The following amounts were recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of: ($ in millions) Consolidated Balance Sheets Caption December 31, 2018 Carrying amount of the hedged items Long-term debt $ 3,991 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items Long-term debt (254) |
Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges | The following table presents the pre-tax net gains (losses) recorded in the Consolidated Statements of Income and in the Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the years ended December 31 ($ in millions) 2018 2017 (a) 2016 (a) Amount of pre-tax net gains (losses) recognized in OCI $ 214 (11) 30 Amount of pre-tax net (losses) gains reclassified from OCI into net income (2) 19 48 For both the years ended December 31, 2017 and 2016 , the amount of pre - tax 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 ineffectiveness. Refer to Note 1 for additional information. |
Net Gains (Losses) Relating to Free-Standing Derivative Instruments Used for Risk Management and Other Business Purposes | The net gains (losses) recorded in the Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: Consolidated Statements of Income Caption For the years ended December 31 ($ in millions) 2018 2017 2016 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ (8) (17) 14 Interest rate contracts related to MSR portfolio Mortgage banking net revenue (21) 2 24 Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income 10 (7) 2 Equity contracts: Stock warrant associated with Worldpay Holding, LLC Other noninterest income - - 73 (a) Stock warrant Other noninterest income - (1) - Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (59) (80) (56) ( a) The Bancorp recognized a net gain of $9 on the exercise of the remaining warrant during the fourth quarter of 2016 |
Risk Ratings of the Notional Amount of Risk Participation Agreements | Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table: At December 31 ($ in millions) 2018 2017 Pass $ 3,919 2,748 Special mention 79 66 Substandard 4 24 Total $ 4,002 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 Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: Consolidated Statements of For the years ended December 31 ($ in millions) Income Caption 2018 2017 2016 Interest rate contracts: Interest rate contracts for customers (contract revenue) Corporate banking revenue $ 32 21 22 Interest rate contracts for customers (credit losses) Other noninterest expense - (5) - Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense - 2 1 Interest rate lock commitments Mortgage banking net revenue 70 93 114 Commodity contracts: Commodity contracts for customers (contract revenue) Corporate banking revenue 9 6 6 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 55 48 62 Foreign exchange contracts for customers (contract revenue) Other noninterest income 14 - - 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 1 |
Offsetting Derivative Financial Instruments | The following tables provide a summary of offsetting derivative financial instruments: Gross Amount Gross Amounts Not Offset in the Recognized in the Consolidated Balance Sheets As of December 31, 2018 ($ in millions) Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 1,107 (410) (348) 349 Total assets 1,107 (410) (348) 349 Liabilities: Derivatives 874 (410) (123) 341 Total liabilities $ 874 (410) (123) 341 (a) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements. (b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related d erivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. Gross Amount Gross Amounts Not Offset in the Recognized in the Consolidated Balance Sheets As of December 31, 2017 ($ in millions) Consolidated Balance Sheets (a) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 815 (213) (362) 240 Total assets 815 (213) (362) 240 Liabilities: Derivatives 602 (213) (155) 234 Total liabilities $ 602 (213) (155) 234 Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangement s . Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets | |
Other Assets Disclosure | The following table provides the components of other assets included in the Consolidated Balance Sheets as of December 31: ($ in millions) 2018 2017 Accounts receivable and drafts-in-process $ 1,963 1,763 Bank owned life insurance 1,760 1,720 Partnership investments 1,390 1,445 Derivative instruments 1,114 823 Accrued interest and fees receivable 438 378 Investment in Worldpay Holding, LLC 420 219 Prepaid expenses 93 87 Income tax receivable 56 66 OREO and other repossessed personal property 48 54 Worldpay, Inc. TRA put/call receivable - 105 Other 90 203 Total other assets $ 7,372 6,863 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Short-Term Borrowings | |
Summary of Short-Term Borrowings and Weighted-Average Rates | The following table summarizes short-term borrowings and weighted-average rates: 2018 2017 ($ in millions) Amount Rate Amount Rate As of December 31: Federal funds purchased $ 1,925 2.40 % $ 174 1.37 % Other short-term borrowings 573 1.95 4,012 1.28 Average for the years ended December 31: Federal funds purchased $ 1,509 1.97 % $ 557 1.01 % Other short-term borrowings 1,611 1.82 3,158 0.96 Maximum month-end balance for the years ended December 31: Federal funds purchased $ 2,684 $ 1,495 Other short-term borrowings 6,313 6,307 |
Summary of Other Short-Term Borrowings | The following table presents a summary of the Bancorp's other short-term borrowings as of December 31: ($ in millions) 2018 2017 Securities sold under repurchase agreements $ 302 546 Derivative collateral 271 341 FHLB advances - 3,125 Total other short-term borrowings $ 573 4,012 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Long-Term Debt | |
Summary of the Bancorp's Long-Term Borrowings | The following table is a summary of the Bancorp’s long-term borrowings at December 31: ($ in millions) Maturity Interest Rate 2018 2017 Parent Company Senior: Fixed-rate notes 2019 2.30% $ 500 499 Fixed-rate notes 2020 2.875% 1,098 1,097 Floating-rate notes (b) 2021 3.206% 250 - Fixed-rate notes 2022 2.60% 698 697 Fixed-rate notes 2022 3.50% 498 497 Fixed-rate notes 2028 3.95% 646 - Subordinated: (a) Fixed-rate notes 2018 4.50% - 505 Fixed-rate notes 2024 4.30% 747 747 Fixed-rate notes 2038 8.25% 1,238 1,305 Subsidiaries Senior: Fixed-rate notes 2018 2.15% - 996 Fixed-rate notes 2018 1.45% - 600 Floating-rate notes 2018 2.35% - 250 Fixed-rate notes 2019 2.375% 850 849 Fixed-rate notes 2019 2.30% 750 749 Fixed-rate notes 2019 1.625% 743 736 Floating-rate notes (b) 2019 3.412% 250 250 Fixed-rate notes 2020 2.20% 742 744 Floating-rate notes (b) 2020 2.770% 300 299 Fixed-rate notes 2021 2.25% 1,248 1,247 Fixed-rate notes 2021 2.875% 847 846 Fixed-rate notes 2021 3.35% 502 - Floating-rate notes (b) 2021 2.948% 299 - Fixed-rate notes 2025 3.95% 764 - Subordinated: (a) Fixed-rate bank notes 2026 3.85% 747 747 Junior subordinated: Floating-rate debentures (b) 2035 4.21%-4.48% 52 52 FHLB advances 2019 - 2041 0.05% - 6.87% 22 30 Notes associated with consolidated VIEs: Automobile loan securitizations: Fixed-rate notes 2020 - 2024 1.42%-2.03% 568 982 Floating-rate notes (b) 2020 2.605% 11 75 Other 2019 - 2039 Varies 56 105 Total $ 14,426 14,904 In aggregate, $ 2.6 billion qualifies as Tier II capital for regulatory capital purposes for both years ended December, 31 2018 and 2017 . These rates reflect the floating rates as of December 31, 2018 . |
Schedule Of Long Term Debt Maturities | The Bancorp pays down long-term debt in accordance with contractual terms over maturity periods summarized in the above table. The aggregate annual maturities of long-term debt obligations (based on final maturit y dates) as of December 31, 2018 a re presented in the following tabl e: ($ in millions) Parent Subsidiaries Total 2019 $ 500 2,610 3,110 2020 1,098 1,105 2,203 2021 250 2,898 3,148 2022 1,196 461 1,657 2023 - 1 1 Thereafter 2,631 1,676 4,307 Total $ 5,675 8,751 14,426 |
Commitments, Contingent Liabi_2
Commitments, Contingent Liabilities and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments, Contingent Liabilities and Guarantees | |
Summary of Significant Commitments | The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of December 31: ($ in millions) 2018 2017 Commitments to extend credit $ 70,415 68,106 Letters of credit 2,041 2,185 Forward contracts related to residential mortgage loans held for sale 926 1,284 Noncancelable operating lease obligations 603 568 Purchase obligations 126 144 Capital expenditures 45 37 Capital commitments for private equity investments 32 48 Capital lease obligations 20 26 |
Credit Risk Associated With Commitments | Risk ratings of outstanding commitments to extend credit under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2018 2017 Pass $ 69,928 67,254 Special mention 271 330 Substandard 216 522 Total commitments to extend credit $ 70,415 68,106 |
Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party | Letters of credit Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of December 31, 2018: ($ in millions) Less than 1 year (a) $ 1,044 1 - 5 years (a) 989 Over 5 years 8 Total letters of credit $ 2,041 (a) Includes $ 1 and $ 18 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively. |
Credit Risk associated with Letters of Credit | Risk ratings under this risk rating system are summarized in the following table as of December 31: ($ in millions) 2018 2017 Pass $ 1,905 1,830 Special mention 10 67 Substandard 126 218 Doubtful - 70 Total letters of credit $ 2,041 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 years ended December 31: ($ in millions) 2018 2017 Balance, beginning of period $ 9 13 Net reductions to the reserve (3) (3) Losses charged against the reserve - (1) Balance, end of period $ 6 9 |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The following tables provide a rollforward of unresolved claims by claimant type for the years ended December 31: GSE Private Label 2018 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 6 $ 1 1 $ - New demands 121 19 - - Resolved demands (118) (19) - - Balance, end of period 9 $ 1 1 $ - GSE Private Label 2017 ($ in millions) Units Dollars Units Dollars Balance, beginning of period 13 $ 2 - $ - New demands 109 15 1 - Loan paydowns/payoffs (2) - - - Resolved demands (114) (16) - - Balance, end of period 6 $ 1 1 $ - |
Visa Funding and Bancorp Cash Payments | Visa Bancorp Cash Period ($ in millions) Funding Amount Payment Amount Q2 2010 $ 500 20 Q4 2010 800 35 Q2 2011 400 19 Q1 2012 1,565 75 Q3 2012 150 6 Q3 2014 450 18 Q2 2018 600 26 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions | |
Summary of the Bancorp's Activities with its Principal Shareholders, Directors and Executives | The following table summarizes the Bancorp’s lending activities with its principal shareholders, directors, executives and their related interests at December 31: ($ in millions) 2018 2017 Commitments to lend, net of participations: Directors and their affiliated companies $ 700 546 Executive officers 6 6 Total $ 706 552 Outstanding balance on loans, net of participations and undrawn commitments $ 10 20 |
Summary Vantiv Holding, LLC Sales Transactions | The following table provides a summary of the transactions that impacted the Bancorp's ownership interest in Worldpay Holding, LLC after the initial IPO: Remaining Ownership ($ in millions) Gain on Transactions Percentage (a) Q4 2012 $ 157 33.1 % Q2 2013 242 27.7 Q3 2013 85 25.1 Q2 2014 125 22.8 Q4 2015 331 18.3 Q3 2017 1,037 8.6 Q1 2018 414 4.9 Q2 2018 205 3.3 (a) The Bancorp’s remaining investment in Worldpay Holding, LLC of $ 420 as of December 31, 2018 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. |
Summary of Estimated Cash Flows to be Received from the TRA | The following table provides the estimated cash flows to be received as of December 31, 2018 associated with the TRA for the years ending December 31, 2019 and thereafter: Estimated Cash Flows to be Received not Subject ($ in millions) to Put/Call Option (a)(b) 2019 20 2020 29 2021 32 2022 33 2023 33 2024 34 2025 35 2026 36 Thereafter 357 Total $ 609 (a) The 2019 cash flow of $20 has been agreed upon with Worldpay, Inc., for settlement in January 2019 and was recognized as a gain in other noninterest income during the fourth quarter of 2018. The remaining estimated cash flows in this column (which include TRA benefits associated with the net exercise of the warrant in 2016, the subseque nt exchange of Worldpay Holding, LLC units in the third quarter of 201 7 and the subsequent exchange of World pay H olding, LLC units in the second quarter of 2018 ) will be recognized in future periods when the related uncertainties are resolved. (b) The estimated cash flows assume that Worldpay, Inc. has sufficient taxable income to utilize the tax deductions a ssociated with the TRA. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Applicable Income Taxes Included in the Consolidated Statements Of Income | The Bancorp and its subsidiaries file a consolidated federal income tax return. The following is a summary of applicable income taxes included in the Consolidated Statements of Income for the years ended December 31: ($ in millions) 2018 2017 2016 Current income tax expense (benefit): U.S. Federal income taxes $ 463 986 751 State and local income taxes 71 68 55 Foreign income taxes 8 (3) - Total current income tax expense 542 1,051 806 Deferred income tax expense (benefit): U.S. Federal income taxes 24 (254) (126) State and local income taxes 4 2 (14) Foreign income taxes 2 - (1) Total deferred income tax expense (benefit) 30 (252) (141) Applicable income tax expense $ 572 799 665 |
Reconciliation Between the Statutory U.S. Income Tax Rate and the Bancorp's Effective Tax Rate | The following is a reconciliation between the statutory U.S. Federal income tax rate and the Bancorp’s effective tax rate for the years ended December 31: 2018 2017 2016 Statutory tax rate 21.0 % 35.0 35.0 Increase (decrease) resulting from: State taxes, net of federal benefit 2.1 1.5 1.2 Tax-exempt income (0.8) (1.1) (2.5) LIHTC investment and other tax benefits (6.8) (6.9) (9.4) LIHTC investment proportional amortization 5.6 7.4 6.9 Other tax credits (0.1) (0.4) (0.8) U.S. tax legislation impact on deferred taxes - (8.5) - Other, net (0.3) (0.2) (0.3) Effective tax rate 20.7 % 26.8 30.1 |
Reconciliation of the Beginning and Ending Amounts of the Bancorp's Unrecognized Tax Benefits | The following table provides a reconciliation of the beginning and ending amounts of the Bancorp’s unrecognized tax benefits: ($ in millions) 2018 2017 2016 Unrecognized tax benefits at January 1 $ 34 24 13 Gross increases for tax positions taken during prior period 20 17 9 Gross decreases for tax positions taken during prior period (1) (1) - Gross increases for tax positions taken during current period 8 3 2 Settlements with taxing authorities (5) (7) - Lapse of applicable statute of limitations (1) (2) - Unrecognized tax benefits at December 31 (a) $ 55 34 24 (a ) With the exception of $5 in 2018 , all a mounts represent unrecognized tax benefits that, if recognized, would affect the annual effective tax rat e. |
Deferred Income Taxes Included in Other Assets in the Consolidated Balance Sheets | Deferred income taxes are comprised of the following items at December 31: ($ in millions) 2018 2017 Deferred tax assets: Allowance for loan and lease losses $ 232 251 Deferred compensation 79 77 Other comprehensive income 42 - Reserve for unfunded commitments 28 34 Reserves 28 29 State net operating loss carryforwards 7 9 Other 112 103 Total deferred tax assets $ 528 503 Deferred tax liabilities: Lease financing $ 599 616 Investments in joint ventures and partnership interests 131 85 MSRs and related economic hedges 107 111 State deferred taxes 73 68 Bank premises and equipment 60 42 Other comprehensive income - 21 Other 102 137 Total deferred tax liabilities $ 1,072 1,080 Total net deferred tax liability $ (544) (577) |
Retirement and Benefit Plans (T
Retirement and Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement and Benefit Plans | |
Overfunded and Underfunded Pension Amounts Recognized in Other Liabilities in the Consolidated Balance Sheet | The overfunded and underfunded amounts recognized in other assets and accrued taxes, interest and expense, respectively, on the Consolidated Balance Sheets were as follows as of December 31: ($ in millions) 2018 2017 Prepaid benefit cost $ 1 - Accrued benefit liability (18) (24) Net underfunded status $ (17) (24) |
Defined Benefit Retirement Plans with an Overfunded Status | The following tables summarize the defined benefit retirement plans as of and for the years ended December 31: Plans with an overfunded status (a) ($ in millions) 2018 2017 Fair value of plan assets at January 1 $ 185 - Actual return on assets (6) - Settlement (9) - Benefits paid (6) - Fair value of plan assets at December 31 $ 164 - Projected benefit obligation at January 1 $ 188 - Interest cost 6 - Settlement (9) - Actuarial gain (16) - Benefits paid (6) - Projected benefit obligation at December 31 $ 163 - Overfunded projected benefit obligation at December 31 $ 1 - Accumulated benefit obligation at December 31 (b) $ 163 - The Bancorp’s qualified defined benefit plan had an overfunded status at December 31, 2018 . The Plan was underfunded at December 31, 2017 and is reflected in the underfunded status table. Since the Plan’s benefits are frozen, the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at December 31, 2018 . |
Defined Benefit Retirement Plans with an Underfunded Status | Plans with an underfunded status ($ in millions) 2018 2017 Fair value of plan assets at January 1 $ - 172 Actual return on assets - 28 Contributions 3 6 Settlement - (11) Benefits paid (3) (10) Fair value of plan assets at December 31 $ - 185 Projected benefit obligation at January 1 $ 21 206 Interest cost 1 8 Settlement - (11) Actuarial (gain) loss (1) 16 Benefits paid (3) (10) Projected benefit obligation at December 31 $ 18 209 Underfunded projected benefit obligation at December 31 $ (18) (24) Accumulated benefit obligation at December 31 (a) $ 18 209 Since the Plan’s benefits are frozen , the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2018 and 2017 . |
Net Periodic Benefit Cost and Other Changes In Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | The following table summarizes net periodic benefit cost and other changes in the Plan’s assets and benefit obligations recognized in OCI for the years ended December 31: ($ in millions) 2018 2017 2016 Components of net periodic benefit cost: Interest cost $ 7 8 9 Expected return on assets (11) (10) (11) Amortization of net actuarial loss 6 7 11 Settlement 3 4 7 Net periodic benefit cost $ 5 9 16 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial (gain) loss $ (1) (1) 2 Amortization of net actuarial loss (6) (7) (11) Settlement (3) (4) (7) Total recognized in other comprehensive income (10) (12) (16) Total recognized in net periodic benefit cost and other comprehensive income $ (5) (3) - |
Plan Assets Measured at Fair Value on a Recurring Basis | The following tables summarize Plan assets measured at fair value on a recurring basis as of December 31: Fair Value Measurements Using (a) 2018 ($ in millions) Level 1 (d) Level 2 (d) Level 3 Total Fair Value Cash equivalents $ 25 - - 25 Mutual and exchange-traded funds 46 - - 46 Debt securities: U.S. Treasury and federal agencies securities 43 3 - 46 Mortgage-backed securities: Non-agency commercial mortgage-backed securities - 1 - 1 Asset-backed securities and other debt securities (b) - 18 - 18 Total debt securities $ 43 22 - 65 Total Plan assets, excluding collective funds $ 114 22 - 136 Collective funds (NAV) 28 (c) Total Plan assets $ 164 For further information on fair value hierarchy levels, refer to Note 1 . Includes corporate bond s. Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the fair value of Plan assets presented elsewhere within this footnote. During the year ended December 31, 2018 , no assets or liabilities were transferred between Level 1 and Level 2 . Fair Value Measurements Using (a) 2017 ($ in millions) Level 1 (d) Level 2 (d) Level 3 Total Fair Value Cash equivalents $ 7 - - 7 Equity securities 27 - - 27 Mutual and exchange-traded funds 92 - - 92 Debt securities: U.S. Treasury and federal agencies securities 9 3 - 12 Mortgage-backed securities: Non-agency commercial mortgage-backed securities - 1 - 1 Asset-backed securities and other debt securities (b) - 17 - 17 Total debt securities $ 9 21 - 30 Total Plan assets, excluding collective funds $ 135 21 - 156 Collective funds (NAV) 29 (c) Total Plan assets $ 185 For further information on fair value hierarchy levels, refer to Note 1 . Includes corporate bond s. Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the fair value of Plan assets presented elsewhere within this footnote. During the year ended December 31, 2017 , no assets or liabilities were transferred between Level 1 and Level 2 . |
Plan Assumptions | The following table summarizes the weighted-average plan assumptions for the years ended December 31: 2018 2017 2016 For measuring benefit obligations at year end: (a) Discount rate 4.10 % 3.47 3.97 Expected return on plan assets 6.00 6.00 7.00 For measuring net periodic benefit cost: (a) Discount rate 3.47 3.97 4.16 Expected return on plan assets 6.00 6.00 7.00 (a) Since the Plan’s benefits were frozen , except for grandfathered employees, the rate of compensation increase is no longer applicable beginning in 2014 since minimal grandfathered employees are still accruing benefits. |
Weighted Average Allocation of Plan Assets | The following table provides the Bancorp’s targeted and actual weighted-average asset allocations by asset category for the years ended December 31: Targeted Range (b) 2018 2017 Equity securities 67 % 76 Bancorp common stock - 1 Total equity securities (a) 0-55 % 67 77 Fixed-income securities 50-100 23 16 Alternative strategies 0-5 3 3 Cash 0-100 7 4 Total 100 % 100 Includes mutual and exchange- traded funds . These reflect the targeted ranges for the year ended December 31, 2018 . |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31: Total OCI Total AOCI Pre-tax Tax Net Beginning Net Ending 2018 ($ in millions) Activity Effect Activity Balance (a) Activity Balance Unrealized holding losses on available-for-sale debt securities arising during the year $ (483) 112 (371) Reclassification adjustment for net losses on available-for-sale debt securities included in net income 11 (2) 9 Net unrealized losses on available-for-sale debt securities (472) 110 (362) 135 (362) (227) Unrealized holding gains on cash flow hedge derivatives arising during the year 214 (45) 169 Reclassification adjustment for net losses on cash flow hedge derivatives included in net income 2 - 2 Net unrealized gains on cash flow hedge derivatives 216 (45) 171 (11) 171 160 Net actuarial gain arising during the year 1 - 1 Reclassification of amounts to net periodic benefit costs 9 (2) 7 Defined benefit pension plans, net 10 (2) 8 (53) 8 (45) Total $ (246) 63 (183) 71 (183) (112) The Bancorp’s AOCI balance was adjusted as of January 1, 2018 to reflect the adoption of new accounting standards. Refer to Note 1 for additional information. Total OCI Total AOCI Pre-tax Tax Net Beginning Net Ending 2017 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding gains on available-for-sale securities arising during the year $ 14 7 21 Reclassification adjustment for net losses on available-for-sale securities included in net income 3 1 4 Net unrealized gains on available-for-sale securities 17 8 25 101 25 126 Unrealized holding losses on cash flow hedge derivatives arising during the year (11) 4 (7) Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (19) 7 (12) Net unrealized losses on cash flow hedge derivatives (30) 11 (19) 10 (19) (9) Net actuarial gain arising during the year 1 - 1 Reclassification of amounts to net periodic benefit costs 11 (4) 7 Defined benefit pension plans, net 12 (4) 8 (52) 8 (44) Total $ (1) 15 14 59 14 73 Total OCI Total AOCI Pre-tax Tax Net Beginning Net Ending 2016 ($ in millions) Activity Effect Activity Balance Activity Balance Unrealized holding losses on available-for-sale securities arising during the year $ (196) 66 (130) Reclassification adjustment for net gains on available-for-sale securities included in net income (11) 4 (7) Net unrealized gains on available-for-sale securities (207) 70 (137) 238 (137) 101 Unrealized holding gains on cash flow hedge derivatives arising during the year 30 (11) 19 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (48) 17 (31) Net unrealized gains on cash flow hedge derivatives (18) 6 (12) 22 (12) 10 Net actuarial loss arising during the year (2) 1 (1) Reclassification of amounts to net periodic benefit costs 18 (6) 12 Defined benefit pension plans, net 16 (5) 11 (63) 11 (52) Total $ (209) 71 (138) 197 (138) 59 |
Reclassification Out of Accumulated Other Comprehensive Income to Net Income | The table below presents reclassifications out of AOCI for the years ended December 31: Consolidated Statements of Components of AOCI: ($ in millions) Income Caption 2018 2017 2016 Net unrealized (losses) gains on available-for-sale debt securities: (b) Net (losses) gains included in net income Securities (losses) gains, net $ (11) (3) 11 Income before income taxes (11) (3) 11 Applicable income tax expense 2 (1) (4) Net income (9) (4) 7 Net unrealized (losses) gains on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases (2) 19 48 Income before income taxes (2) 19 48 Applicable income tax expense - (7) (17) Net income (2) 12 31 Net periodic benefit costs: (b) Amortization of net actuarial loss Employee benefits expense (a) (6) (7) (11) Settlements Employee benefits expense (a) (3) (4) (7) Income before income taxes (9) (11) (18) Applicable income tax expense 2 4 6 Net income (7) (7) (12) Total reclassifications for the period Net income $ (18) 1 26 This AOCI component is included in the computation of net periodi c benefit cost. Refer to Note 20 f or information on the computation of net periodic benefit cost. Amounts in parentheses indicate reductions to net income. |
Common, Preferred and Treasur_2
Common, Preferred and Treasury Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Common, Preferred and Treasury Stock | |
Share Activity Within Common, Preferred and Treasury Stock | The table presents a summary of the share activity within common, preferred and treasury stock for the years ended: Common Stock Preferred Stock Treasury Stock ($ in millions, except share data) Value Shares Value Shares Value Shares December 31, 2015 $ 2,051 923,892,581 $ 1,331 54,000 $ (2,764) 138,812,267 Shares acquired for treasury - - - - (668) 34,633,221 Impact of stock transactions under stock compensation plans, net - - - - (4) 42,357 Other - - - - 3 (74,563) December 31, 2016 $ 2,051 923,892,581 $ 1,331 54,000 $ (3,433) 173,413,282 Shares acquired for treasury - - - - (1,588) 58,493,506 Impact of stock transactions under stock compensation plans, net - - - - 16 (1,693,503) Other - - - - 3 (125,597) December 31, 2017 $ 2,051 923,892,581 $ 1,331 54,000 $ (5,002) 230,087,688 Shares acquired for treasury - - - - (1,494) 49,967,134 Impact of stock transactions under stock compensation plans, net - - - - 23 (2,698,451) Other - - - - 2 (94,647) December 31, 2018 $ 2,051 923,892,581 $ 1,331 54,000 $ (6,471) 277,261,724 |
Summary of the Bancorp's Accelerated Share Repurchase Transactions | The following table presents a summary of the Bancorp's accelerated share repurchase transactions that were entered into or settled during the years ended December 31, 2018 and 2017: Shares Repurchased on Shares Received from Total Shares Repurchase Date Amount ($ in millions) Repurchase Date Forward Contract Settlement Repurchased Settlement Date December 20, 2016 155 4,843,750 1,044,362 5,888,112 February 6, 2017 May 1, 2017 342 11,641,971 2,248,250 13,890,221 July 31, 2017 August 17, 2017 990 31,540,480 4,291,170 35,831,650 December 18, 2017 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 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stock-Based Compensation | |
Number of Shares to be issued upon Exercise of Outstanding Stock-Based Awards and Remaining Shares Available for Future Issuance under all Equity Compensation Plans | The following table provides detail of the number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance under all of the Bancorp’s equity compensation plans approved by shareholders as of December 31, 2018 : Plan Category (shares in thousands) Number of Shares to be Issued Upon Exercise Weighted-Average Exercise Price Per Share Shares Available for Future Issuance Equity compensation plans 13,290 (a) SARs (b) - (a) RSAs 868 - (a) RSUs 8,020 - (a) PSAs (c) - (a) Employee stock purchase plan 5,181 (d) Total shares 8,888 18,471 Under the 2017 Incentive Compensation Plan, 17.5 million shares were authorized for issuance as SARs, RSAs, RSUs, stock options, performance share or unit awards, dividend or dividend equivalent rights and stock awards . The number of shares to be issued upon exercise will be determined at exercise based on the difference between the gra nt price and the market price on the date of exercise and the calculation of taxes owed on the exercise . The number of shares to be issued is dependent upon the Bancorp achieving certain predefined performance targets and ranges from zero shares to approximately 2 million shares. Represents remaining shares of Fifth Third common stock under the Bancorp’s 1993 Stock Purchase Plan, as amended and restated, including an additional 1.5 million shares approved by shareholders on March 28, 2007 and an additiona l 12 million shares approved by shareholders on April 21, 2009 . |
Schedule of Share-based Payment Award, Stock Appreciation Rights, Valuation Assumptions | The weighted-average assumptions were as follows for the years ended December 31: 2018 2017 2016 Expected life (in years) 7 6 6 Expected volatility 35 % 37 37 Expected dividend yield 1.9 2.1 3.1 Risk-free interest rate 2.6 2.1 1.5 |
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity | 2018 2017 2016 Weighted- Weighted- Weighted- Number of SARs Average Grant Number of SARs Average Grant Number of SARs Average Grant SARs (in thousands, except per share data) Price Per Share Price Per Share Price Per Share Outstanding at January 1 31,929 $ 17.22 40,041 $ 18.30 44,129 $ 19.14 Granted 272 33.15 3,672 26.52 6,379 17.68 Exercised (5,058) 16.96 (6,953) 16.00 (6,291) 14.47 Forfeited or expired (947) 20.93 (4,831) 35.08 (4,176) 32.02 Outstanding at December 31 26,196 $ 17.30 31,929 $ 17.22 40,041 $ 18.30 Exercisable at December 31 20,132 $ 15.90 21,403 $ 15.30 26,898 $ 18.28 |
Outstanding and Exercisable SARs by Grant Price | The following table summarizes outstanding and exercisable SARs by grant price per share at December 31, 2018: Outstanding SARs Exercisable SARs Weighted- Weighted- Weighted- Average Remaining Weighted- Average Remaining Number of Average Grant Contractual Life Number of Average Grant Contractual Life SARs (in thousands, except per share data) SARs Price Per Share (in years) SARs Price Per Share (in years) Under $10.00 1,426 $ 3.96 0.3 1,441 $ 3.96 0.3 $10.01-$20.00 19,145 16.10 4.7 15,631 15.67 4.1 $20.01-$30.00 5,353 24.33 6.8 3,060 22.69 5.9 $30.01-$40.00 272 33.15 9.1 - - - All SARs 26,196 $ 17.30 4.9 20,132 $ 15.90 4.1 |
Schedule of Share-Based Compensation, RSAs | 2018 2017 2016 Weighted-Average Weighted-Average Weighted-Average Grant-Date Grant-Date Grant-Date Fair Value Fair Value Fair Value RSAs (in thousands, except per share data) Shares Per Share Shares Per Share Shares Per Share Outstanding at January 1 2,321 $ 19.72 4,638 $ 19.44 8,281 $ 18.88 Granted - - 7 21.14 3 20.65 Released (1,347) 20.09 (2,063) 19.10 (3,090) 17.92 Forfeited (106) 19.40 (261) 19.75 (556) 19.20 Outstanding at December 31 868 $ 19.18 2,321 $ 19.72 4,638 $ 19.44 |
Unvested RSAs by Grant-Date Fair Value | The following table summarizes outstanding RSAs by grant-date fair value at December 31, 2018: Outstanding RSAs Weighted-Average Remaining Contractual Life RSAs (in thousands) Shares (in years) $15.01-$20.00 775 0.5 Over $20.00 93 0.5 All RSAs 868 0.5 |
Schedule of Share-Based Compensation, RSUs | 2018 2017 2016 Weighted-Average Weighted-Average Weighted-Average Grant-Date Grant-Date Grant-Date Fair Value Fair Value Fair Value RSUs (in thousands, except per unit data) Units Per Unit Units Per Unit Units Per Unit Outstanding at January 1 6,986 $ 22.25 5,086 $ 17.84 371 $ 19.56 Granted 3,674 32.84 3,652 26.71 5,029 17.75 Released (1,977) 21.15 (1,194) 17.64 (79) 19.76 Forfeited (663) 26.45 (558) 21.02 (235) 17.89 Outstanding at December 31 8,020 $ 27.04 6,986 $ 22.25 5,086 $ 17.84 |
Unvested RSUs by Grant-Date Fair Value | The following table summarizes outstanding RSUs by grant-date fair value at December 31, 2018: Outstanding RSUs Weighted-Average Remaining Contractual Life RSUs (in thousands) Units (in years) $10.01-$15.00 201 0.1 $15.01-$20.00 1,799 0.7 $20.01-$25.00 191 0.5 $25.01-$30.00 2,489 1.2 $30.01-$35.00 3,340 1.6 All RSUs 8,020 1.2 |
Schedule of Share-based Compensation, Stock Options, Activity | 2018 2017 2016 Weighted-Average Weighted-Average Weighted-Average Number of Exercise Price Number of Exercise Price Number of Exercise Price Stock Options (in thousands, except per share data) Options Per Share Options Per Share Options Per Share Outstanding at January 1 2 $ 16.50 25 $ 19.17 119 $ 14.97 Exercised (1) 8.59 (18) 14.05 (94) 13.86 Forfeited or expired (1) 24.41 (5) 40.98 - - Outstanding at December 31 - $ - 2 $ 16.50 25 $ 19.17 Exercisable at December 31 - $ - 2 $ 16.50 25 $ 19.17 |
Other Noninterest Income and _2
Other Noninterest Income and Other Noninterest Expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Noninterest Income | |
Other Noninterest Income and Other Noninterest Expense | The following table presents the major components of other noninterest income and other noninterest expense for the years ended December 31: ($ in millions) 2018 2017 2016 Other noninterest income: Gain related to Vantiv, Inc.'s acquisition of Worldpay Group plc. $ 414 - - Gain on sale of Worldpay, Inc. shares 205 1,037 - Operating lease income 84 96 102 Private equity investment income 63 36 11 BOLI income 56 52 53 Cardholder fees 56 54 46 Consumer loan and lease fees 23 23 23 Banking center income 21 20 20 Income from the TRA associated with Worldpay, Inc. 20 44 313 Insurance income 20 8 11 Net gains (losses) on loan sales 2 (2) 10 Equity method income from interest in Worldpay Holding, LLC 1 47 66 Loss on swap associated with the sale of Visa, Inc. Class B Shares (59) (80) (56) Net losses on disposition and impairment of bank premises and equipment (43) - (13) Valuation adjustments on the warrant associated with Worldpay Holding, LLC - - 64 Gain on sales of certain retail branches - - 19 Gain on sale and exercise of the warrant associated with Worldpay Holding, LLC - - 9 Other, net 24 22 10 Total other noninterest income $ 887 1,357 688 Other noninterest expense: Marketing $ 147 114 104 FDIC insurance and other taxes 119 127 126 Loan and lease 112 102 110 Operating lease 76 87 86 Professional service fees 67 83 61 Losses and adjustments 61 59 73 Data processing 57 58 51 Travel 52 46 45 Postal and courier 35 42 46 Recruitment and education 32 35 37 Donations 21 28 23 Supplies 13 14 14 Insurance 13 12 15 (Gain) loss on partnership investments (4) 14 25 (Benefit from) provision for the reserve for unfunded commitments (30) - 23 Other, net 219 186 187 Total other noninterest expense $ 990 1,007 1,026 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share | |
Schedule Of Earnings Per Share Basic And Diluted [Table Text Block] | The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the years ended December 31: 2018 2017 2016 Average Per Share Average Per Share Average Per Share ($ in millions, except per share data) Income Shares Amount Income Shares Amount Income Shares Amount Earnings Per Share: Net income available to common shareholders 2,118 2,105 1,472 Less: Income allocated to participating securities 23 23 15 Net income allocated to common shareholders $ 2,095 673 3.11 2,082 728 2.86 1,457 757 1.92 Earnings Per Diluted Share: Net income available to common shareholders $ 2,118 2,105 1,472 Effect of dilutive securities: Stock-based awards - 12 - 13 - 7 Net income available to common shareholders 2,118 2,105 1,472 plus assumed conversions Less: Income allocated to participating securities 23 23 15 Net income allocated to common shareholders plus assumed conversions $ 2,095 685 3.06 2,082 741 2.81 1,457 764 1.91 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 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 $ 97 - - 97 Obligations of states and political subdivisions securities - 2 - 2 Mortgage-backed securities: Agency residential mortgage-backed securities - 16,247 - 16,247 Agency commercial mortgage-backed securities - 10,650 - 10,650 Non-agency commercial mortgage-backed securities - 3,267 - 3,267 Asset-backed securities and other debt securities - 2,015 - 2,015 Available-for-sale debt and other securities (a) 97 32,181 - 32,278 Trading debt securities: U.S. Treasury and federal agencies securities - 16 - 16 Obligations of states and political subdivisions securities - 35 - 35 Agency residential mortgage-backed securities - 68 - 68 Asset-backed securities and other debt securities - 168 - 168 Trading debt securities - 287 - 287 Equity securities 452 - - 452 Residential mortgage loans held for sale - 537 - 537 Residential mortgage loans (b) - - 179 179 Commercial loans held for sale - 7 - 7 MSRs - - 938 938 Derivative assets: Interest rate contracts - 648 7 655 Foreign exchange contracts - 152 - 152 Commodity contracts 93 214 - 307 Derivative assets (d) 93 1,014 7 1,114 Total assets $ 642 34,026 1,124 35,792 Liabilities: Derivative liabilities: Interest rate contracts $ 8 313 8 329 Foreign exchange contracts - 142 - 142 Equity contracts - - 125 125 Commodity contracts 19 259 - 278 Derivative liabilities (e) 27 714 133 874 Short positions (e) 110 28 - 138 Total liabilities $ 137 742 133 1,012 Excludes FHLB, FRB and DTCC restricted stock holdings totaling $ 184 , $ 366 and $ 2 , respectively, at December 31, 2018 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . During the year ended December 31, 2018 , no assets or liabilities were transferred between Level 1 and Level 2 . Included in other assets in the Consolidated Balance Sheets. Included in other liabilities in the Consolidated Balance Sheets. Fair Value Measurements Using December 31, 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 $2 , respectively, at December 31, 2017 . Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment . During the year ended December 31, 2017 , no assets or liabilities were transferred between Level 1 and Level 2. Included in other assets in the Consolidated Balance Sheets. Included in other liabilities in the Consolidated Balance Sheet s. |
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Mortgage Derivatives, Equity Total For the year ended December 31, 2018 ($ in millions) Loans MSRs Net (a) Derivatives Fair Value Balance, beginning of period $ 137 858 3 (137) 861 Total (losses) gains (realized/unrealized): Included in earnings (3) (83) 72 (59) (73) Purchases/originations - 163 (5) - 158 Settlements (19) - (71) 71 (19) Transfers into Level 3 (b) 64 - - - 64 Balance, end of period $ 179 938 (1) (125) 991 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2018 (c) $ (3) (4) 9 (59) (57) Net interest rate derivatives include derivative assets and liabilities of $ 7 and $ 8 , respectively, as of December 31, 2018 . Includes certain residential mortgage loans originated as 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 year ended December 31, 2017 ($ in millions) Loans MSRs (d) Net (a) Derivatives Fair Value Balance, beginning of period $ 143 744 8 (91) 804 Total (losses) gains (realized/unrealized): Included in earnings 1 (122) 94 (80) (107) Purchases/originations - 236 (2) - 234 Settlements (23) - (97) 34 (86) Transfers into Level 3 (b) 16 - - - 16 Balance, end of period $ 137 858 3 (137) 861 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2017 (c) $ 1 (122) 10 (80) (191) Net interest rate derivatives include derivative assets and liabilities of $ 8 and $ 5 , respect ively, as of December 31, 2017 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. Effective January 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. The servicing rights were measured at fair value at December 31, 2017 and were m easured under the amortization method at December 31, 2016. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Residential Interest Rate Equity Mortgage Derivatives, Derivatives, Total For the year ended December 31, 2016 ($ in millions) Loans Net (a) Net (a) Fair Value Balance, beginning of period $ 167 12 201 380 Total gains (losses) (realized/unrealized): Included in earnings (2) 115 17 130 Purchases/originations - (3) - (3) Sales and exercise of warrant - - (334) (334) Settlements (40) (116) 25 (131) Transfers into Level 3 (b) 18 - - 18 Balance, end of period $ 143 8 (91) 60 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at December 31, 2016 (c) $ (2) 13 (56) (45) Net interest rate derivatives include derivative assets and liabilities of $ 13 and $ 5 , respectively, as of December 31, 2016 . Net equity derivatives include derivative assets and liabilities of $ 0 and $ 9 1 , respectively, as of December 31, 2016 . Includes certain residential mortgage loans held for sale that were transferred to held for investment. Includes interest income and expense. |
Total Gains and Losses Included in Earnings for Assets and Liabilites Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Consolidated Statements of Income for the years ended December 31, 2018, 2017 and 2016 as follows: ($ in millions) 2018 2017 2016 Mortgage banking net revenue $ (16) (29) 112 Corporate banking revenue 2 2 1 Other noninterest income (59) (80) 17 Total (losses) gains $ (73) (107) 130 The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at December 31, 2018, 2017 and 2016 were recorded in the Consolidated Statements of Income as follows: ($ in millions) 2018 2017 2016 Mortgage banking net revenue $ - (113) 10 Corporate banking revenue 2 2 1 Other noninterest income (59) (80) (56) Total losses $ (57) (191) (45) |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of December 31, 2018 and 2017 and for which a nonrecurring fair value adjustment was recorded during the years ended December 31, 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 As of December 31, 2018 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2018 Commercial loans held for sale $ - - 16 16 (3) Commercial and industrial loans - - 93 93 (41) Commercial mortgage loans - - 2 2 7 Commercial leases - - 14 14 (11) OREO - - 20 20 (7) Bank premises and equipment - - 32 32 (45) Operating lease equipment - - - - (2) Private equity investments - 67 3 70 43 Other assets - - 2 2 (8) Total $ - 67 182 249 (67) Fair Value Measurements Using Total Losses As of December 31, 2017 ($ in millions) Level 1 Level 2 Level 3 Total For the year ended December 31, 2017 Commercial loans held for sale $ - - 1 1 (33) Commercial and industrial loans - - 327 327 (99) Commercial mortgage loans - - 19 19 (12) Commercial leases - - 4 4 (6) OREO - - 27 27 (10) Bank premises and equipment - - 24 24 (6) Operating lease equipment - - 60 60 (42) Private equity investments - - 8 8 (1) Affordable housing investments - - 1,078 1,078 (57) Total $ - - 1,548 1,548 (266) |
Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Inputs | The following tables present information as of December 31, 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 December 31, 2018 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted- Average Residential mortgage loans $ 179 Loss rate model Interest rate risk factor (13.2) - 9.4% 0.5% Credit risk factor 0 - 39.9% 0.7% MSRs 938 DCF Prepayment speed 0.5 - 100.0% (Fixed) 10.2% (Adjustable) 23.0% OAS spread (bps) 441 - 1,513 (Fixed) 534 (Adjustable) 863 IRLCs, net 7 DCF Loan closing rates 9.5 - 96.7% 86.0% Swap associated with the sale of Visa, Inc. (125) DCF Timing of the resolution 1/31/2021 - 11/11/2021 Class B Shares of the Covered Litigation 11/30/2023 As of December 31, 2017 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted- Average Residential mortgage loans $ 137 Loss rate model Interest rate risk factor (10.6) - 14.5% 3.1% Credit risk factor 0 - 52.1% 1.4% MSRs 858 DCF Prepayment speed 0 - 98.1% (Fixed) 11.4% (Adjustable) 24.6% OAS spread (bps) 450 - 1,515 (Fixed) 549 (Adjustable) 785 IRLCs, net 8 DCF Loan closing rates 12.5 - 97.7% 71.8% Swap associated with the sale of Visa, Inc. (137) DCF Timing of the resolution 12/31/2020 - 8/15/2021 Class B Shares of the Covered Litigation 12/31/2023 The following tables present information as of December 31, 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 December 31, 2018 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Inputs Weighted-Average Commercial loans held for sale $ 16 Appraised value Appraised value NM NM Costs to sell NM 10.0% Commercial and industrial loans 93 Appraised value Collateral value NM NM Commercial mortgage loans 2 Appraised value Collateral value NM NM Commercial leases 14 Appraised value Collateral value NM NM OREO 20 Appraised value Appraised value NM NM Bank premises and equipment 32 Appraised value Appraised value NM NM Operating lease equipment - Appraised value Appraised value NM NM Private equity investments - Liquidity discount applied Liquidity discount 0 - 43.0% 12.9% to fund's NAV 3 Comparable company analysis Market comparable transactions NM NM Other assets 2 Appraised value Appraised value NM NM As of December 31, 2017 ($ in millions) Significant Unobservable Ranges of Financial Instrument Fair Value Valuation Technique Inputs Inputs Weighted-Average Commercial loans held for sale $ 1 Appraised value Appraised value NM NM Costs to sell NM 10.0% Commercial and industrial loans 327 Appraised value Collateral value NM NM Commercial mortgage loans 19 Appraised value Collateral value NM NM Commercial leases 4 Appraised value Collateral value NM NM OREO 27 Appraised value Appraised value NM NM Bank premises and equipment 24 Appraised value Appraised value NM NM Operating lease equipment 60 Appraised value Appraised value NM NM Private equity investments 8 Liquidity discount applied Liquidity discount 2.5 - 15.0% 5.8% to fund's NAV Affordable housing investments 1,078 Appraised value Appraised value NM NM |
Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance for Residential Mortgage Loans Measured at Fair Value | The following table summarizes the difference between the fair value and the unpaid principal balance for residential mortgage loans measured at fair value as of: Aggregate Aggregate Unpaid ($ in millions) Fair Value Principal Balance Difference December 31, 2018 Residential mortgage loans measured at fair value $ 716 696 20 Past due loans of 90 days or more 2 2 - Nonaccrual loans 2 2 - Commercial loans measured at fair value 7 7 - 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 | The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis: Net Carrying Fair Value Measurements Using Total As of December 31, 2018 ($ in millions) Amount Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and due from banks $ 2,681 2,681 - - 2,681 Other short-term investments 1,825 1,825 - - 1,825 Other securities 552 - 552 - 552 Held-to-maturity securities 18 - - 18 18 Loans and leases held for sale 63 - - 63 63 Portfolio loans and leases: Commercial and industrial loans 43,825 - - 44,668 44,668 Commercial mortgage loans 6,894 - - 6,851 6,851 Commercial construction loans 4,625 - - 4,688 4,688 Commercial leases 3,582 - - 3,180 3,180 Residential mortgage loans 15,244 - - 15,688 15,688 Home equity 6,366 - - 6,719 6,719 Automobile loans 8,934 - - 8,717 8,717 Credit card 2,314 - - 2,759 2,759 Other consumer loans 2,309 - - 2,428 2,428 Unallocated ALLL (110) - - - - Total portfolio loans and leases, net $ 93,983 - - 95,698 95,698 Financial liabilities: Deposits $ 108,835 - 108,782 - 108,782 Federal funds purchased 1,925 1,925 - - 1,925 Other short-term borrowings 573 - 573 - 573 Long-term debt 14,426 14,287 445 - 14,732 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 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements and Capital Ratios (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements and Capital Ratios | |
Capital and Risk-Based Capital and Leverage Ratios for the Bancorp and its Significant Subsidiary Banks | PRESCRIBED CAPITAL RATIOS Minimum Well-Capitalized CET1 capital 4.50 % 6.50 Tier I risk-based capital 6.00 8.00 Total risk-based capital 8.00 10.00 Tier I leverage 4.00 5.00 The following table presents capital and risk-based capital and leverage ratios for the Bancorp and its banking subsidiary at December 31: 2018 2017 (a) ($ in millions) Amount Ratio Amount Ratio CET1 capital: Fifth Third Bancorp $ 12,534 10.24 % $ 12,517 10.61 % Fifth Third Bank 14,435 11.93 14,008 12.06 Tier I risk-based capital: Fifth Third Bancorp 13,864 11.32 13,848 11.74 Fifth Third Bank 14,435 11.93 14,008 12.06 Total risk-based capital: Fifth Third Bancorp 17,723 14.48 17,887 15.16 Fifth Third Bank 16,427 13.57 16,126 13.88 Tier I leverage: (b) Fifth Third Bancorp 13,864 9.72 13,848 10.01 Fifth Third Bank 14,435 10.27 14,008 10.32 The regulatory capital data and ratios have not been restated as a result of the Bancorp’s change in accounting for qualifying LIHTC investments. For additional information refer to Note 1 . Quarterly average assets are a component of the Tier I leverage ratio and for this purpose do not include goodwill and any other intangible assets and other investments that the FRB determines should be deducted from Tier I capital. |
Parent Company Financial Stat_2
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Parent Company Financial Statements | |
Condensed Statements of Income (Parent Company Only) | Condensed Statements of Income (Parent Company Only) For the years ended December 31 ($ in millions) 2018 2017 2016 Income Dividends from subsidiaries: Consolidated nonbank subsidiaries (a) $ 1,890 2,343 1,886 Interest on loans to subsidiaries 24 21 18 Total income 1,914 2,364 1,904 Expenses Interest 211 176 171 Other 34 42 18 Total expenses 245 218 189 Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries 1,669 2,146 1,715 Applicable income tax benefit 50 68 63 Income Before Change in Undistributed Earnings of Subsidiaries 1,719 2,214 1,778 Equity in undistributed earnings 474 (34) (231) Net Income Attributable to Bancorp $ 2,193 2,180 1,547 Other Comprehensive Income - - - Comprehensive Income Attributable to Bancorp $ 2,193 2,180 1,547 (a) The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $1.9 billion , $2.3 billion and $1.9 billion for the years ended December 31, 2018 , 2017 and 2016 , respectively . |
Condensed Balance Sheets (Parent Company Only) | Condensed Balance Sheets (Parent Company Only) As of December 31 ($ in millions) 2018 2017 Assets Cash $ 120 80 Short-term investments 3,642 3,493 Loans to subsidiaries: Nonbank subsidiaries 571 843 Total loans to subsidiaries 571 843 Investment in subsidiaries: Nonbank subsidiaries 17,921 17,530 Total investment in subsidiaries 17,921 17,530 Goodwill 80 80 Other assets 268 329 Total Assets $ 22,602 22,355 Liabilities Other short-term borrowings $ 253 315 Accrued expenses and other liabilities 424 472 Long-term debt (external) 5,675 5,348 Total Liabilities $ 6,352 6,135 Equity Common stock $ 2,051 2,051 Preferred stock 1,331 1,331 Capital surplus 2,873 2,790 Retained earnings 16,578 14,957 Accumulated other comprehensive (loss) income (112) 73 Treasury stock (6,471) (5,002) Noncontrolling interests - 20 Total Equity 16,250 16,220 Total Liabilities and Equity $ 22,602 22,355 |
Condensed Statements of Cash Flows (Parent Company Only) | Condensed Statements of Cash Flows (Parent Company Only) For the years ended December 31 ($ in millions) 2018 2017 2016 Operating Activities Net income $ 2,193 2,180 1,547 Adjustments to reconcile net income to net cash provided by operating activities: Provision for deferred income taxes 3 2 - Equity in undistributed earnings (474) 34 231 Net change in: Other assets 61 37 14 Accrued expenses and other liabilities (116) (15) (35) Net Cash Provided by Operating Activities 1,667 2,238 1,757 Investing Activities Net change in: Short-term investments (149) (419) 654 Loans to subsidiaries 272 126 13 Net Cash Provided by (Used in) Investing Activities 123 (293) 667 Financing Activities Net change in other short-term borrowings (62) (29) (60) Dividends paid on common stock (467) (430) (402) Dividends paid on preferred stock (98) (75) (52) Proceeds from issuance of long-term debt 895 697 - Repayment of long-term debt (500) (500) (1,250) Repurchase of treasury stock and related forward contract (1,453) (1,605) (661) Other, net (65) (53) 3 Net Cash Used in Financing Activities (1,750) (1,995) (2,422) Increase (Decrease) in Cash 40 (50) 2 Cash at Beginning of Period 80 130 128 Cash at End of Period $ 120 80 130 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Segments | |
Results of Operations and Average Assets by Segment | The following tables present the results of operations and assets by business segment for the years ended December 31: Wealth General Commercial Branch Consumer and Asset Corporate 2018 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,713 2,034 237 182 (26) - 4,140 Provision for (benefit from) loan and lease losses (26) 171 42 12 38 - 237 Net interest income after provision for loan and lease losses 1,739 1,863 195 170 (64) - 3,903 Noninterest income: Service charges on deposits 273 275 - 1 - - 549 Wealth and asset management revenue 3 150 - 429 - (138) (a) 444 Corporate banking revenue 432 5 - 2 (1) - 438 Card and processing revenue 58 266 - 5 - - 329 Mortgage banking net revenue - 5 206 1 - - 212 Other noninterest income (b) 151 53 14 18 651 - 887 Securities losses, net - - - - (54) - (54) Securities losses, net - non-qualifying hedges on MSRs - - (15) - - - (15) Total noninterest income 917 754 205 456 596 (138) 2,790 Noninterest expense: Salaries, wages and incentives 300 438 156 173 716 - 1,783 Employee benefits 44 98 36 29 125 - 332 Net occupancy expense 26 175 10 12 69 - 292 Technology and communications 7 5 5 1 267 - 285 Card and processing expense 4 121 - - (2) - 123 Equipment expense 23 50 - 1 49 - 123 Other noninterest expense 859 841 195 288 (1,055) (138) 990 Total noninterest expense 1,263 1,728 402 504 169 (138) 3,928 Income (loss) before income taxes 1,393 889 (2) 122 363 - 2,765 Applicable income tax expense (benefit) 254 187 (1) 25 107 - 572 Net income (loss) 1,139 702 (1) 97 256 - 2,193 Total goodwill $ 630 1,655 - 193 - - 2,478 Total assets $ 61,630 61,040 22,044 10,337 (8,982) (c) - 146,069 Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Consolidated Statements of Income . Includes impairment charges of $ 45 for branches and land. For more information refer to Note 7 and Note 26 . Includes bank premises and equipment of $ 42 classified as held for sale. For more information refer to Note 7 . Wealth General Commercial Branch Consumer and Asset Corporate 2017 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,652 1,782 240 154 (30) - 3,798 Provision for loan and lease losses 38 153 40 6 24 - 261 Net interest income after provision for loan and lease losses 1,614 1,629 200 148 (54) - 3,537 Noninterest income: Service charges on deposits 287 265 - 1 1 - 554 Wealth and asset management revenue 3 141 - 407 - (132) (a) 419 Corporate banking revenue 348 (c) 5 - 1 (1) - 353 Card and processing revenue 57 251 - 5 - - 313 Mortgage banking net revenue - 6 217 1 - - 224 Other noninterest income (b) 143 88 18 4 1,104 - 1,357 Securities gains, net - - - - 2 - 2 Securities gains, net - non-qualifying hedges on MSRs - - 2 - - - 2 Total noninterest income 838 756 237 419 1,106 (132) 3,224 Noninterest expense: Salaries, wages and incentives 252 425 152 154 650 - 1,633 Employee benefits 42 101 37 27 149 - 356 Net occupancy expense 26 176 10 11 72 - 295 Technology and communications 9 4 2 - 230 - 245 Card and processing expense 3 127 - - (1) - 129 Equipment expense 18 52 - - 47 - 117 Other noninterest expense 884 796 210 276 (1,027) (132) 1,007 Total noninterest expense 1,234 1,681 411 468 120 (132) 3,782 Income before income taxes 1,218 704 26 99 932 - 2,979 Applicable income tax expense 391 249 9 34 116 - 799 Net income 827 455 17 65 816 - 2,180 Total goodwill $ 613 1,655 - 177 - - 2,445 Total assets $ 58,456 57,931 22,218 9,494 (6,018) (d) - 142,081 Reve nue sharing agreements between wealth and asset management and b ranch b anking are eliminated in the Consolidated Statements of Income. Includes impairment charges of $ 7 for branches and land. For more information refer to Note 7 and Note 26 . Includes impairment charges of $ 52 for operating lease equipment. For more information refer to Note 26 . Includes bank premises and equipment of $ 27 classified as held for sale. For more information refer to Note 7 . Wealth General Commercial Branch Consumer and Asset Corporate 2016 ($ in millions) Banking Banking Lending Management and Other Eliminations Total Net interest income $ 1,814 1,669 248 168 (284) - 3,615 Provision for loan and lease losses 76 138 44 1 84 - 343 Net interest income after provision for loan and lease losses 1,738 1,531 204 167 (368) - 3,272 Noninterest income: Service charges on deposits 292 265 - 2 (1) - 558 Wealth and asset management revenue 4 140 - 391 - (131) (a) 404 Corporate banking revenue 430 (c) 5 - - (3) - 432 Card and processing revenue 62 253 - 4 - - 319 Mortgage banking net revenue - 7 277 1 - - 285 Other noninterest income (b) 119 85 26 1 457 - 688 Securities gains, net - - - - 10 - 10 Total noninterest income 907 755 303 399 463 (131) 2,696 Noninterest expense: Salaries, wages and incentives 254 419 158 142 639 - 1,612 Employee benefits 42 101 37 26 133 - 339 Net occupancy expense 26 178 10 10 75 - 299 Technology and communications 13 3 1 - 217 - 234 Card and processing expense 4 128 - - - - 132 Equipment expense 16 56 - - 46 - 118 Other noninterest expense 873 798 224 254 (992) (131) 1,026 Total noninterest expense 1,228 1,683 430 432 118 (131) 3,760 Income (loss) before income taxes 1,417 603 77 134 (23) - 2,208 Applicable income tax expense (benefit) 403 213 27 48 (26) - 665 Net income 1,014 390 50 86 3 - 1,543 Total goodwill $ 613 1,655 - 148 - - 2,416 Total assets $ 57,995 55,979 22,041 9,494 (3,429) (d) - 142,080 Revenue sharing agreements between wealth and asset management and b ranch b anking are eliminated in the Consolidated Statements of Income. Includes impairment charges of $ 32 for branches and land. For more information refer to Note 7 . Includes impairment charges of $ 20 for operating lease equipment. Includes bank premises and equipment of $ 39 classified as held for sale . |
Summary of Significant Policies
Summary of Significant Policies (Summary of Significant Accounting and Reporting Policies - Additional Information) (Detail) - USD ($) | Dec. 31, 2018 | Jan. 01, 2018 | [1] | Jan. 01, 2016 | [2] |
Significant Accounting Policies | |||||
Established threshold nonaccrual commercial loans | $ 1,000,000 | ||||
Established threshold impaired loans on accrual status | 1,000,000 | ||||
Larger commercial loans, subject to impairment review | 1,000,000 | ||||
Established threshold commercial loans not subject to specific allowance calculations | 1,000,000 | ||||
Reduction to card and processing revenue | 127,000,000 | ||||
Impact of cumulative effect of change in accounting principles | $ 4,000,000 | $ (134,000,000) | |||
Right of use asset and lease liabilities | 510,000,000 | ||||
Leases | |||||
Significant Accounting Policies | |||||
Impact of cumulative effect of change in accounting principles | $ 13,000,000 | ||||
[1] | Related to the adoption as of January 1, 2018 of ASU 2016-0 1, ASU 2017-12 and ASU 2018-02. Refer to Note 1 for additional information. | ||||
[2] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. |
Summary of Significant Polici_2
Summary of Significant Policies (LIHTC Restatement) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2016 | ||||||
Prior Period Adjustments Restatement | ||||||||||
Other assets | [2] | $ 7,372 | [1] | $ 7,372 | [1] | $ 6,863 | ||||
Accrued taxes, interest and expenses | 1,562 | [1] | 1,562 | [1] | 1,465 | |||||
Retained earnings | [1] | 16,578 | 16,578 | 14,957 | ||||||
Total noninterest expense | 3,928 | 3,782 | $ 3,760 | |||||||
Income (Loss) Before Income Taxes | 2,765 | 2,979 | 2,208 | |||||||
Applicable income tax expense | 572 | 799 | 665 | |||||||
Net income (loss) | $ 2,193 | 2,193 | $ 2,180 | [1] | $ 1,543 | [1] | $ 1,543 | |||
Earnings per share - basic | [1] | $ 3.11 | $ 2.86 | $ 1.92 | ||||||
Earnings per share - diluted | [1] | $ 3.06 | $ 2.81 | $ 1.91 | ||||||
Restatement Adjustment | ||||||||||
Prior Period Adjustments Restatement | ||||||||||
Other assets | $ (91) | (91) | $ (112) | $ (97) | (97) | |||||
Accrued taxes, interest and expenses | 54 | 54 | 53 | 54 | 54 | |||||
Retained earnings | (145) | (145) | (165) | (151) | (151) | |||||
Total noninterest expense | (175) | (208) | (143) | |||||||
Income (Loss) Before Income Taxes | 175 | 208 | 143 | |||||||
Applicable income tax expense | 155 | 222 | 160 | |||||||
Net income (loss) | $ 20 | $ (14) | $ (17) | |||||||
Earnings per share - basic | $ 0.01 | $ (0.02) | $ (0.03) | |||||||
Earnings per share - diluted | $ 0.01 | $ (0.02) | $ (0.02) | |||||||
Originally Reported | ||||||||||
Prior Period Adjustments Restatement | ||||||||||
Other assets | $ 7,463 | 7,463 | $ 6,975 | $ 7,844 | 7,844 | |||||
Accrued taxes, interest and expenses | 1,508 | 1,508 | 1,412 | 1,800 | 1,800 | |||||
Retained earnings | 16,723 | 16,723 | 15,122 | 13,441 | 13,441 | |||||
Total noninterest expense | 4,103 | 3,990 | 3,903 | |||||||
Income (Loss) Before Income Taxes | 2,590 | 2,771 | 2,065 | |||||||
Applicable income tax expense | 417 | 577 | 505 | |||||||
Net income (loss) | $ 2,173 | $ 2,194 | $ 1,560 | |||||||
Earnings per share - basic | $ 3.1 | $ 2.88 | $ 1.95 | |||||||
Earnings per share - diluted | $ 3.05 | $ 2.83 | $ 1.93 | |||||||
Adjusted | ||||||||||
Prior Period Adjustments Restatement | ||||||||||
Other assets | $ 7,372 | 7,372 | $ 6,863 | $ 7,747 | 7,747 | |||||
Accrued taxes, interest and expenses | 1,562 | 1,562 | 1,465 | 1,854 | 1,854 | |||||
Retained earnings | 16,578 | $ 16,578 | 14,957 | 13,290 | $ 13,290 | |||||
Total noninterest expense | 3,928 | 3,782 | 3,760 | |||||||
Income (Loss) Before Income Taxes | 2,765 | 2,979 | 2,208 | |||||||
Applicable income tax expense | 572 | 799 | 665 | |||||||
Net income (loss) | $ 2,193 | $ 2,180 | $ 1,543 | |||||||
Earnings per share - basic | $ 3.11 | $ 2.86 | $ 1.92 | |||||||
Earnings per share - diluted | $ 3.06 | $ 2.81 | $ 1.91 | |||||||
[1] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. | |||||||||
[2] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . |
Supplemental Cash Flow (Noncash
Supplemental Cash Flow (Noncash Investing and Financing Activities) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest paid | |||
Interest | $ 1,016 | $ 699 | $ 578 |
Cash Payments: | |||
Income taxes | 359 | 1,035 | 800 |
Noncash Investing and Financing Activities: | |||
Portfolio loans to loans held for sale | 275 | 255 | 238 |
Loans held for sale to portfolio loans | 95 | 29 | 28 |
Portfolio loans to OREO | $ 39 | $ 34 | $ 49 |
Restrictions (Restrictions on C
Restrictions (Restrictions on Cash, Dividends and Other Capital Actions- Additional Information) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2015 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2011 | |
Restricted Cash and Cash Equivalents Items | |||||||||||||
Banking Subsidiary Reserve Requirement | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,500,000,000 | ||||||||||
Dividend Received From Nonbank Companies And Related Subsidiaries | $ 1,900,000,000 | 2,300,000,000 | |||||||||||
BHC stress test threshold | $ 50,000,000,000 | ||||||||||||
Common stock dividends restrictions | The increase in the quarterly common stock dividend to $0.22 from $0.18 beginning in the fourth quarter of 2018 and to $0.24 beginning in the second quarter of 2019 | ||||||||||||
Stock Repurchase Authorization Amount | 1,810,000,000 | $ 1,651,000,000 | $ 1,810,000,000 | 1,161,000,000 | |||||||||
Increase to quarterly common stock dividend | 0.22 | ||||||||||||
Gain on sale of Worldpay, Inc. shares | $ 205,000,000 | $ 414,000,000 | 205,000,000 | 1,037,000,000 | $ 0 | ||||||||
Worldpay Holding, LLC | |||||||||||||
Restricted Cash and Cash Equivalents Items | |||||||||||||
Gain on sale of Worldpay, Inc. shares | $ 331,000,000 | $ 125,000,000 | $ 85,000,000 | $ 242,000,000 | $ 157,000,000 | $ 115,000,000 | |||||||
Yearly Average | |||||||||||||
Restricted Cash and Cash Equivalents Items | |||||||||||||
Banking Subsidiary Reserve Requirement | 1,500,000,000 | 1,500,000,000 | $ 1,400,000,000 | ||||||||||
CCAR authorization | |||||||||||||
Restricted Cash and Cash Equivalents Items | |||||||||||||
Stock Repurchase Authorization Amount | 81,000,000 | 81,000,000 | |||||||||||
CCAR authorization | Repurchases related to previously-recognized TRA transaction after-tax gains | |||||||||||||
Restricted Cash and Cash Equivalents Items | |||||||||||||
Stock Repurchase Authorization Amount | $ 53,000,000 | $ 53,000,000 |
Investment Securities (Investme
Investment Securities (Investment Securities) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment Holdings | |||
Available-for-sale debt securities, fair value | [1] | $ 32,830 | $ 31,751 |
Available-for-sale debt securities, unrealized losses | (464) | (134) | |
Available-for-sale debt securities, unrealized gains | 166 | 308 | |
Available-for-sale debt securities, Amortized Cost | 33,128 | 31,577 | |
Held-to-maturity securities, fair value | 18 | 24 | |
Held-to-maturity, unrealized losses | 0 | 0 | |
Held-to-maturity, unrealized gains | 0 | 0 | |
Held-to-maturity securities, amortized cost | [2] | 18 | 24 |
Trading debt securities, fair value | 287 | 492 | |
Equity securities, fair value | 452 | 439 | |
U.S. Treasury and federal agencies | |||
Investment Holdings | |||
Available-for-sale debt securities, fair value | 97 | 98 | |
Available-for-sale debt securities, unrealized losses | (1) | 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 | 2 | 44 | |
Available-for-sale debt securities, unrealized losses | 0 | 0 | |
Available-for-sale debt securities, unrealized gains | 0 | 1 | |
Available-for-sale debt securities, Amortized Cost | 2 | 43 | |
Held-to-maturity securities, fair value | 16 | 22 | |
Held-to-maturity, unrealized losses | 0 | 0 | |
Held-to-maturity, unrealized gains | 0 | 0 | |
Held-to-maturity securities, amortized cost | 16 | 22 | |
Asset-backed securities and other debt securities | |||
Investment Holdings | |||
Available-for-sale debt securities, fair value | 2,015 | 2,218 | |
Available-for-sale debt securities, unrealized losses | (10) | (11) | |
Available-for-sale debt securities, unrealized gains | 27 | 46 | |
Available-for-sale debt securities, Amortized Cost | 1,998 | 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 | [3] | 552 | 612 |
Available-for-sale debt securities, unrealized losses | 0 | 0 | |
Available-for-sale debt securities, unrealized gains | 0 | 0 | |
Available-for-sale debt securities, Amortized Cost | 552 | 612 | |
Residential mortgage backed securities | Agency mortgage-backed securities | |||
Investment Holdings | |||
Available-for-sale debt securities, fair value | [4] | 16,247 | 15,319 |
Available-for-sale debt securities, unrealized losses | (242) | (80) | |
Available-for-sale debt securities, unrealized gains | 86 | 118 | |
Available-for-sale debt securities, Amortized Cost | 16,403 | 15,281 | |
Commercial mortgage-backed securities | Agency mortgage-backed securities | |||
Investment Holdings | |||
Available-for-sale debt securities, fair value | 10,650 | 10,167 | |
Available-for-sale debt securities, unrealized losses | (164) | (38) | |
Available-for-sale debt securities, unrealized gains | 44 | 92 | |
Available-for-sale debt securities, Amortized Cost | 10,770 | 10,113 | |
Commercial mortgage-backed securities | Non-agency mortgage-backed securities | |||
Investment Holdings | |||
Available-for-sale debt securities, fair value | 3,267 | 3,293 | |
Available-for-sale debt securities, unrealized losses | (47) | (5) | |
Available-for-sale debt securities, unrealized gains | 9 | 51 | |
Available-for-sale debt securities, Amortized Cost | $ 3,305 | $ 3,247 | |
[1] | Amortized cost of $ 33,128 and $ 31,577 at December 31, 2018 and 2017 , respectively. | ||
[2] | Fair value of $ 18 and $ 24 at December 31, 2018 and 2017 , respectively . | ||
[3] | Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $ 184 , $ 366 and $ 2 , respectively, at December 31, 2018 and $ 248 , $ 362 and $ 2 , respectively, at Dece mber 31, 2017 , that are carried at cost . | ||
[4] | Includes interest-only mortgage-backed securities of $ 0 and $ 34 as of December 31, 2018 and 2017 , respectively, recorded at fair value with fair value changes recorded in securities (losses) gains, net , i n the Consolidated Statements of Income . |
Investment Securities (Invest_2
Investment Securities (Investment Securities) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment Holdings | |||
FHLB, restricted stock holdings | $ 184 | $ 248 | |
FRB, restricted stock holdings | 366 | 362 | |
Available-for-sale debt and other securities | [1] | 32,830 | 31,751 |
DTCC, restricted stock holdings | 2 | 2 | |
Interest-Only Mortgage Backed Securities | |||
Investment Holdings | |||
Available-for-sale debt and other securities | $ 0 | $ 34 | |
[1] | Amortized cost of $ 33,128 and $ 31,577 at December 31, 2018 and 2017 , respectively. |
Investment Securities (Gains an
Investment Securities (Gains and Losses Recognized in Income from Securities) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Securities | ||||
Available-for-sale debt and other securities, realized gains | $ 72 | $ 85 | $ 72 | |
Available-for-sale debt and other securities, realized losses | 82 | 36 | 49 | |
OTTI | 0 | (54) | (15) | |
Net realized gains (losses) on available-for-sale debt and other securities | (10) | (5) | 8 | |
Total trading debt securities gains (losses) | (15) | 2 | 0 | |
Total equity securities gains (losses) | [1] | (44) | 7 | 2 |
Total available for sale debt and other, trading debt and equity securities gains (losses) recognized in income | [2] | $ (69) | $ 4 | $ 10 |
[1] | Includes $ 45 of net unrealized losses for the year ended December 31, 2018 and net unrealized gains of $ 5 and $ 3 for the years ended December 31, 2017 and 2016 , respectively. | |||
[2] | Excludes an insignificant amount of securities gains (losses) included in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income related to securities held by FTS to facilitate the timely execution of customer transactions. |
Investment Securities (Gains _2
Investment Securities (Gains and Losses Recognized in Income from Securities) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment Holdings | |||
Equity securities unrealized gains (losses) | $ (45) | $ 5 | $ 3 |
Investment Securities (Securiti
Investment Securities (Securities - Additional Information) (Detail) - USD ($) $ in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Investment Holdings | ||
Securities with a fair value, pledged as collateral | $ 7 | $ 7.8 |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Fair Value of Available-for-Sale Debt and Held-to-Maturity Securities) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt securities: | |||
Less than 1 year | [1] | $ 3 | |
1-5 years | [1] | 10,052 | |
5-10 years | [1] | 18,394 | |
Over 10 years | [1] | 4,127 | |
Other securities | 552 | ||
Available-for-sale debt securities, Amortized Cost | 33,128 | $ 31,577 | |
Debt securities: | |||
Less than 1 year | [1] | 3 | |
1-5 years | [1] | 10,015 | |
5-10 years | [1] | 18,197 | |
Over 10 years | [1] | 4,063 | |
Other securities | 552 | ||
Available-for-sale debt and other securities, fair value | [2] | 32,830 | 31,751 |
Debt securities: | |||
Less than 1 year | [1] | 0 | |
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] | 18 | 24 |
Debt securities: | |||
Less than 1 year | [1] | 0 | |
1-5 years | [1] | 16 | |
5-10 years | [1] | 0 | |
Over 10 years | [1] | 2 | |
Other securities | 0 | ||
Held-to-maturity securities, fair value | $ 18 | $ 24 | |
[1] | (a) Actual maturities may differ from contractu al maturities when a right to call or prepay obligations exists with or without call or prepayment penalties. | ||
[2] | Amortized cost of $ 33,128 and $ 31,577 at December 31, 2018 and 2017 , respectively. | ||
[3] | Fair value of $ 18 and $ 24 at December 31, 2018 and 2017 , respectively . |
Investment Securities (Fair Val
Investment Securities (Fair Value and Gross Unrealized Losses on Available-for-Sale Debt Securities) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | $ 6,455 | $ 11,101 |
Less than 12 months Unrealized Losses | (70) | (85) |
12 months or more Fair Value | 15,111 | 1,536 |
12 months or more Unrealized Losses | (394) | (49) |
Total Fair Value | 21,566 | 12,637 |
Total Unrealized Losses | (464) | (134) |
U.S. Treasury and federal agencies | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 0 | 98 |
Less than 12 months Unrealized Losses | 0 | 0 |
12 months or more Fair Value | 97 | 0 |
12 months or more Unrealized Losses | (1) | 0 |
Total Fair Value | 97 | 98 |
Total Unrealized Losses | (1) | 0 |
Agency mortgage-backed securities | Residential mortgage backed securities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 3,235 | 7,337 |
Less than 12 months Unrealized Losses | (21) | (59) |
12 months or more Fair Value | 7,892 | 479 |
12 months or more Unrealized Losses | (221) | (21) |
Total Fair Value | 11,127 | 7,816 |
Total Unrealized Losses | (242) | (80) |
Agency mortgage-backed securities | Commercial mortgage-backed securities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 2,022 | 2,900 |
Less than 12 months Unrealized Losses | (37) | (22) |
12 months or more Fair Value | 5,260 | 526 |
12 months or more Unrealized Losses | (127) | (16) |
Total Fair Value | 7,282 | 3,426 |
Total Unrealized Losses | (164) | (38) |
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 884 | 449 |
Less than 12 months Unrealized Losses | (6) | (2) |
12 months or more Fair Value | 1,621 | 145 |
12 months or more Unrealized Losses | (41) | (3) |
Total Fair Value | 2,505 | 594 |
Total Unrealized Losses | (47) | (5) |
Asset-backed securities and other debt securities | ||
Investments, Unrealized Loss Position | ||
Less than 12 months Fair Value | 314 | 317 |
Less than 12 months Unrealized Losses | (6) | (2) |
12 months or more Fair Value | 241 | 386 |
12 months or more Unrealized Losses | (4) | (9) |
Total Fair Value | 555 | 703 |
Total Unrealized Losses | $ (10) | $ (11) |
Loans & Leases (Loans and Lease
Loans & Leases (Loans and Leases Classified by Primary Purpose) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans and leases held for sale: | |||
Loans and leases held for sale | [1] | $ 607 | $ 492 |
Portfolio loans and leases: | |||
Commercial and industrial loans | 44,340 | 41,170 | |
Commercial mortgage loans | 6,974 | 6,604 | |
Commercial construction loans | 4,657 | 4,553 | |
Commercial leases | 3,600 | 4,068 | |
Residential mortgage loans | 15,504 | 15,591 | |
Home equity | 6,402 | 7,014 | |
Automobile loans | 8,976 | 9,112 | |
Credit card | 2,470 | 2,299 | |
Other consumer loans | 2,342 | 1,559 | |
Portfolio loans and leases | [2],[3] | 95,265 | 91,970 |
Commercial Portfolio Segment | |||
Portfolio loans and leases: | |||
Portfolio loans and leases | 59,571 | 56,395 | |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 67 | 0 | |
Commercial Portfolio Segment | Commercial mortgage loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 3 | 6 | |
Residential Portfolio Segment | Residential mortgage loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 537 | 486 | |
Consumer Portfolio Segment | |||
Portfolio loans and leases: | |||
Portfolio loans and leases | $ 35,694 | $ 35,575 | |
[1] | Includes $ 537 and $ 399 of residential mortgage loans held for sale measured at fair value and $7 and $0 of commercial loans held for sale measured at fair value at December 31, 2018 and 2017 , respectively. | ||
[2] | Includes $ 179 and $ 137 of residential mortgage loans measured at fair value at December 31, 2018 and 2017 , respectively. | ||
[3] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . |
Loans & Leases (Loans and Lea_2
Loans & Leases (Loans and Leases - Additional Information) (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Accounts Notes Loans And Financing Receivable [Table][Abstract] | ||
Unamortized premiums and discounts, deferred loan fees and costs, and fair value adjustments | $ 296,000,000 | $ 282,000,000 |
Unearned Income | 479,000,000 | 523,000,000 |
Loans pledged at the FHLB | 13,100,000 | 13,000,000 |
Loans pledged at the FRB | 42,600,000 | 39,800,000 |
Direct Financing Leases | 3,000,000 | 3,400,000 |
Leveraged leases | 624,000,000 | 674,000,000 |
Leveraged leases, pre-tax income (loss) | 34,000,000 | 11,000,000 |
Gain On Early Termination Of Leverage Leases | 15,000,000 | |
Leveraged leases, tax expense (benefit) | 8,000,000 | 6,000,000 |
Minimum future lease payments receivable - 2019 | 815,000,000 | |
Minimum future lease payments receivable - 2020 | 666,000,000 | |
Minimum future lease payments receivable - 2021 | 528,000,000 | |
Minimum future lease payments receivable - 2022 | 430,000,000 | |
Minimum future lease payments receivable - 2023 | 350,000,000 | |
Residual value write-downs related to commercial leases | $ 4,000,000 | 4,000,000 |
Remeasurement of leveraged leases | 27,000,000 | |
Leveraged leases, pre-tax income (loss), excluding remeasurement | $ 16,000,000 |
Loans & Leases (Total Loans And
Loans & Leases (Total Loans And Leases Managed By The Bancorp) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | $ 95,872 | $ 92,462 |
Balance of Loans 90 days or More Past Due | 93 | 97 |
Net Charge-Offs | 330 | 298 |
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 | 44,407 | 41,170 |
Balance of Loans 90 days or More Past Due | 4 | 3 |
Net Charge-Offs | 132 | 111 |
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 | 6,977 | 6,610 |
Balance of Loans 90 days or More Past Due | 2 | 0 |
Net Charge-Offs | (1) | 12 |
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 | 4,657 | 4,553 |
Balance of Loans 90 days or More Past Due | 0 | 0 |
Net Charge-Offs | 0 | |
Net Recoveries | 0 | |
Commercial Leases | Commercial Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 3,600 | 4,068 |
Balance of Loans 90 days or More Past Due | 0 | 0 |
Net Charge-Offs | 1 | 2 |
Residential Mortgage | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 16,041 | 16,077 |
Balance of Loans 90 days or More Past Due | 38 | 57 |
Net Charge-Offs | 7 | 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 | 6,402 | 7,014 |
Balance of Loans 90 days or More Past Due | 0 | 0 |
Net Charge-Offs | 12 | 19 |
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 | 8,976 | 9,112 |
Balance of Loans 90 days or More Past Due | 12 | 10 |
Net Charge-Offs | 40 | 37 |
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 | 2,470 | 2,299 |
Balance of Loans 90 days or More Past Due | 37 | 27 |
Net Charge-Offs | 101 | 84 |
Other Consumer Loans and Leases | Consumer Portfolio Segment | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Balance | 2,342 | 1,559 |
Balance of Loans 90 days or More Past Due | 0 | 0 |
Net Charge-Offs | 38 | 26 |
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 | 607 | 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 | $ 95,265 | $ 91,970 |
Loans & Leases (Investment in L
Loans & Leases (Investment in Lease Financing) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable | |||
Rental receivable, net of principal and interest on nonrecourse debt | $ 3,256 | $ 3,684 | |
Estimated residual value of leased assets | 804 | 885 | |
Initial direct cost, net of amortization | 19 | 22 | |
Gross investment in lease financing | 4,079 | 4,591 | |
Unearned income | (479) | (523) | |
Net investment in lease financing | [1] | $ 3,600 | $ 4,068 |
[1] | The accumulated allowance for uncollectible minimum lease payments wa s $ 18 and $ 14 at December 31, 2018 and 2017 , respectively. |
Loans & Leases (Investment in_2
Loans & Leases (Investment in Lease Financing) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable | ||||||
Accumulated allowance for uncollectible minimum lease payments | $ 1,103 | [1] | $ 1,196 | $ 1,253 | $ 1,272 | |
Leases | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Accumulated allowance for uncollectible minimum lease payments | $ 18 | $ 14 | ||||
[1] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . |
Credit Quality (Summary of Tran
Credit Quality (Summary of Transactions in the ALLL by Portfolio Segment) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Financing Receivable, Allowance for Credit Losses | |||||||
Balance, Beginning of period | $ 1,196 | [1] | $ 1,253 | $ 1,272 | |||
Losses charged-off | (450) | [2] | (381) | (456) | |||
Recoveries of losses previously charged-off | 120 | [2] | 83 | 94 | |||
Provision for (benefit from) loan and lease losses | 237 | 261 | 343 | ||||
Deconsolidation of a VIE | [3] | (20) | |||||
Balance, end of period | 1,103 | [1] | 1,196 | [1] | 1,253 | ||
Commercial Portfolio Segment | |||||||
Financing Receivable, Allowance for Credit Losses | |||||||
Balance, Beginning of period | 753 | 831 | 840 | ||||
Losses charged-off | (157) | [2] | (154) | (232) | |||
Recoveries of losses previously charged-off | 25 | [2] | 29 | 42 | |||
Provision for (benefit from) loan and lease losses | 24 | 66 | 181 | ||||
Deconsolidation of a VIE | [3] | (19) | |||||
Balance, end of period | 645 | 753 | 831 | ||||
Residential Portfolio Segment | |||||||
Financing Receivable, Allowance for Credit Losses | |||||||
Balance, Beginning of period | 89 | [4] | 96 | [4] | 100 | ||
Losses charged-off | (13) | [2] | (15) | (19) | |||
Recoveries of losses previously charged-off | 6 | [2] | 8 | 9 | |||
Provision for (benefit from) loan and lease losses | (1) | 0 | 6 | ||||
Deconsolidation of a VIE | [3] | 0 | |||||
Balance, end of period | 81 | [5] | 89 | [4] | 96 | [4] | |
Consumer Portfolio Segment | |||||||
Financing Receivable, Allowance for Credit Losses | |||||||
Balance, Beginning of period | 234 | [4] | 214 | [4] | 217 | ||
Losses charged-off | (280) | [2] | (212) | (205) | |||
Recoveries of losses previously charged-off | 89 | [2] | 46 | 43 | |||
Provision for (benefit from) loan and lease losses | 224 | 186 | 159 | ||||
Deconsolidation of a VIE | [3] | 0 | |||||
Balance, end of period | 267 | [5] | 234 | [4] | 214 | [4] | |
Unallocated | |||||||
Financing Receivable, Allowance for Credit Losses | |||||||
Balance, Beginning of period | 120 | [4] | 112 | [4] | 115 | ||
Losses charged-off | 0 | [2] | 0 | 0 | |||
Recoveries of losses previously charged-off | 0 | [2] | 0 | 0 | |||
Provision for (benefit from) loan and lease losses | (10) | 9 | (3) | ||||
Deconsolidation of a VIE | [3] | (1) | |||||
Balance, end of period | $ 110 | [5] | $ 120 | [4] | $ 112 | [4] | |
[1] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . | ||||||
[2] | (a) For the year ended December 31, 2018, the Bancorp recorded $29 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. | ||||||
[3] | (a) Refer to Note 10 for further discussion on the deconsolidation of a VIE. | ||||||
[4] | Includes $ 1 related to leveraged leases at December 31, 2017 . | ||||||
[5] | Includes $ 1 related to leveraged leases at December 31, 2018 . |
Credit Quality (Summary of Tr_2
Credit Quality (Summary of Transactions in the ALLL by Portfolio Segment) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Losses charged off | $ 450 | [1] | $ 381 | $ 456 |
Recoveries of losses previously charged-off | 120 | [1] | $ 83 | $ 94 |
Other Consumer Loans, Point of Sale | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Losses charged off | 29 | |||
Recoveries of losses previously charged-off | $ 29 | |||
[1] | (a) For the year ended December 31, 2018, the Bancorp recorded $29 in both losses charged-off and recoveries of losses charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. |
Credit Quality (Summary of the
Credit Quality (Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Financing Receivable, Allowance for Credit Losses | ||||||||
Individually evaluated for impairment | $ 141 | [1] | $ 200 | [2] | ||||
Collectively evaluated for impairment | 852 | [1] | 876 | [2] | ||||
Unallocated | 110 | [1] | 120 | [2] | ||||
Total allowance for loan and lease losses | 1,103 | [3] | 1,196 | [3] | $ 1,253 | $ 1,272 | ||
Individually evaluated for impairment | 1,291 | [4] | 1,545 | [5] | ||||
Collectively evaluated for impairment | 93,795 | [4] | 90,286 | [5] | ||||
Loans acquired with deteriorated credit quality | [5] | 2 | ||||||
Total portfolio loans and leases | 95,086 | [6] | 91,833 | [7] | ||||
Commercial Portfolio Segment | ||||||||
Financing Receivable, Allowance for Credit Losses | ||||||||
Individually evaluated for impairment | 42 | [1] | 94 | [2] | ||||
Collectively evaluated for impairment | 603 | [1] | 659 | [2] | ||||
Unallocated | 0 | [1] | 0 | [2] | ||||
Total allowance for loan and lease losses | 645 | 753 | 831 | 840 | ||||
Individually evaluated for impairment | 277 | [4] | 560 | [5] | ||||
Collectively evaluated for impairment | 59,294 | [4] | 55,835 | [5] | ||||
Loans acquired with deteriorated credit quality | [5] | 0 | ||||||
Total portfolio loans and leases | 59,571 | [4] | 56,395 | [5] | ||||
Residential Portfolio Segment | ||||||||
Financing Receivable, Allowance for Credit Losses | ||||||||
Individually evaluated for impairment | 61 | [1] | 64 | [2] | ||||
Collectively evaluated for impairment | 20 | [1] | 25 | [2] | ||||
Unallocated | 0 | [1] | 0 | [2] | ||||
Total allowance for loan and lease losses | 81 | [1] | 89 | [2] | 96 | [2] | 100 | |
Individually evaluated for impairment | 736 | [4] | 665 | [5] | ||||
Collectively evaluated for impairment | 14,589 | [4] | 14,787 | [5] | ||||
Loans acquired with deteriorated credit quality | [5] | 2 | ||||||
Total portfolio loans and leases | 15,325 | [4] | 15,454 | [5] | ||||
Consumer Portfolio Segment | ||||||||
Financing Receivable, Allowance for Credit Losses | ||||||||
Individually evaluated for impairment | 38 | [1] | 42 | [2] | ||||
Collectively evaluated for impairment | 229 | [1] | 192 | [2] | ||||
Unallocated | 0 | [1] | 0 | [2] | ||||
Total allowance for loan and lease losses | 267 | [1] | 234 | [2] | 214 | [2] | 217 | |
Individually evaluated for impairment | 278 | [4] | 320 | [5] | ||||
Collectively evaluated for impairment | 19,912 | [4] | 19,664 | [5] | ||||
Loans acquired with deteriorated credit quality | [5] | 0 | ||||||
Total portfolio loans and leases | 20,190 | [4] | 19,984 | [5] | ||||
Unallocated | ||||||||
Financing Receivable, Allowance for Credit Losses | ||||||||
Individually evaluated for impairment | 0 | [1] | 0 | [2] | ||||
Collectively evaluated for impairment | 0 | [1] | 0 | [2] | ||||
Unallocated | 110 | [1] | 120 | [2] | ||||
Total allowance for loan and lease losses | 110 | [1] | 120 | [2] | $ 112 | [2] | $ 115 | |
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 December 31, 2018 . | |||||||
[2] | Includes $ 1 related to leveraged leases at December 31, 2017 . | |||||||
[3] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . | |||||||
[4] | Excludes $ 179 of residential mortgage loans measured at fair value and includes $ 624 of leveraged leases, net of unearned income, at December 31, 2018 . | |||||||
[5] | Excludes $ 137 of residential mortgage loans measured at fair value and includes $ 674 of leveraged leases, net of unearned income at December 31, 2017 . | |||||||
[6] | Excludes $ 179 of residential mortgage loans measured at fair value at December 31, 2018 . | |||||||
[7] | Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . |
Credit Quality (Summary of th_2
Credit Quality (Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment) (Parenthetical) (Detail) | 12 Months Ended | ||||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||||
Financing Receivable, Allowance for Credit Losses | |||||||
Allowance for loan and lease losses | $ 1,103,000,000 | [1] | $ 1,196,000,000 | [1] | $ 1,253,000,000 | $ 1,272,000,000 | |
Portfolio loans and leases at fair value | $ 179,000,000 | $ 137,000,000 | |||||
Number of Contracts | [2],[3] | 8,869 | 9,256 | 10,978 | |||
Recorded Investment | $ 1,291,000,000 | [4] | $ 1,545,000,000 | [5] | |||
Variable Interest Entity, Primary Beneficiary | |||||||
Financing Receivable, Allowance for Credit Losses | |||||||
Allowance for loan and lease losses | 4,000,000 | 6,000,000 | |||||
Leveraged Leases | |||||||
Financing Receivable, Allowance for Credit Losses | |||||||
Allowance for loan and lease losses | 1,000,000 | 1,000,000 | |||||
Portfolio loans and leases at fair value | 624,000,000 | 674,000,000 | |||||
Residential Portfolio Segment | |||||||
Financing Receivable, Allowance for Credit Losses | |||||||
Portfolio loans and leases at fair value | $ 179,000,000 | $ 137,000,000 | |||||
[1] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . | ||||||
[2] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | ||||||
[3] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | ||||||
[4] | Includes $ 60 , $ 724 and $ 237 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 147 , $ 12 and $ 41 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2018 . | ||||||
[5] | Includes $ 249 , $ 652 and $ 275 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 150 , $ 13 and $ 45 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2017 |
Credit Quality (Summary of th_3
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Commercial Portfolio Segment by Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | ||
Financing Receivable, Modifications | ||||
Total loans and leases | $ 95,086 | [1] | $ 91,833 | [2] |
Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 59,571 | 56,395 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 44,340 | 41,170 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,284 | 3,362 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,690 | 3,242 | ||
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 4,657 | 4,553 | ||
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,600 | 4,068 | ||
Pass | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 57,581 | 53,612 | ||
Pass | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 42,695 | 38,813 | ||
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,122 | 3,207 | ||
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,632 | 3,117 | ||
Pass | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 4,657 | 4,553 | ||
Pass | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 3,475 | 3,922 | ||
Special Mention | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 901 | 1,290 | ||
Special Mention | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 779 | 1,115 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 23 | 75 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 27 | 28 | ||
Special Mention | Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 0 | 0 | ||
Special Mention | Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 72 | 72 | ||
Substandard | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 1,076 | 1,486 | ||
Substandard | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 853 | 1,235 | ||
Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 139 | 80 | ||
Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 31 | 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 | 53 | 74 | ||
Doubtful | Commercial Portfolio Segment | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 13 | 7 | ||
Doubtful | Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Total loans and leases | 13 | 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 $ 179 of residential mortgage loans measured at fair value at December 31, 2018 . | |||
[2] | Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . |
Credit Quality (Summary of th_4
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |||
Total loans and leases | $ 95,086 | [1] | $ 91,833 | [2] | |
Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 6,402 | 7,014 | |||
Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 8,976 | 9,112 | |||
Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 2,470 | 2,299 | |||
Other Consumer Loans and Leases | Consumer Portfolio Segment | |||||
Total loans and leases | 2,342 | 1,559 | |||
Performing Financing Receivable | |||||
Total loans and leases | [3] | 35,395 | 35,307 | ||
Performing Financing Receivable | Residential Mortgage | Residential Portfolio Segment | |||||
Total loans and leases | [3] | 15,303 | 15,424 | ||
Performing Financing Receivable | Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 6,332 | 6,940 | |||
Performing Financing Receivable | Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 8,975 | 9,111 | |||
Performing Financing Receivable | Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 2,444 | 2,273 | |||
Performing Financing Receivable | Other Consumer Loans and Leases | Consumer Portfolio Segment | |||||
Total loans and leases | 2,341 | 1,559 | |||
Nonperforming Financing Receivable | |||||
Total loans and leases | [3] | 120 | 131 | ||
Nonperforming Financing Receivable | Residential Mortgage | Residential Portfolio Segment | |||||
Total loans and leases | [3] | 22 | 30 | ||
Nonperforming Financing Receivable | Home Equity | Consumer Portfolio Segment | |||||
Total loans and leases | 70 | 74 | |||
Nonperforming Financing Receivable | Automobile Loans | Consumer Portfolio Segment | |||||
Total loans and leases | 1 | 1 | |||
Nonperforming Financing Receivable | Credit Card | Consumer Portfolio Segment | |||||
Total loans and leases | 26 | 26 | |||
Nonperforming Financing Receivable | Other Consumer Loans and Leases | Consumer Portfolio Segment | |||||
Total loans and leases | $ 1 | $ 0 | |||
[1] | Excludes $ 179 of residential mortgage loans measured at fair value at December 31, 2018 . | ||||
[2] | Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . | ||||
[3] | (a) Excludes $ 179 and $ 137 of residential mortgage loans measured at fair value at December 31, 2018 and 2017 , respectively |
Credit Quality (Summary of th_5
Credit Quality (Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Portfolio loans and leases at fair value | $ 179 | $ 137 |
Residential mortgage loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Portfolio loans and leases at fair value | $ 179 | $ 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 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | $ 94,487 | [1],[2],[3] | $ 91,195 | [4],[5],[6] |
Total Past Due | 599 | [2] | 638 | [5] |
Total portfolio loans and leases | 95,086 | [2] | 91,833 | [5] |
90-Days past Due and Still Accruing | 93 | [2] | 97 | [5] |
30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 326 | [1],[2] | 333 | [4],[5] |
90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 273 | [1],[2] | 305 | [4],[5] |
Commercial Portfolio Segment | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total portfolio loans and leases | 59,571 | 56,395 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 44,213 | [1],[3] | 41,027 | [4],[6] |
Total Past Due | 127 | 143 | ||
Total portfolio loans and leases | 44,340 | 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 | 32 | [1] | 42 | [4] |
Commercial Portfolio Segment | Commercial and Industrial Loans | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 95 | [1] | 101 | [4] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 3,277 | [1],[3] | 3,351 | [4],[6] |
Total Past Due | 7 | 11 | ||
Total portfolio loans and leases | 3,284 | 3,362 | ||
90-Days past Due and Still Accruing | 2 | 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 | [4] |
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 | [4] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 3,688 | [1],[3] | 3,235 | [4],[6] |
Total Past Due | 2 | 7 | ||
Total portfolio loans and leases | 3,690 | 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 | 1 | [1] | 0 | [4] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 1 | [1] | 7 | [4] |
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 4,657 | [1],[3] | 4,552 | [4],[6] |
Total Past Due | 0 | 1 | ||
Total portfolio loans and leases | 4,657 | 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 | [4] |
Commercial Portfolio Segment | Commercial Construction Loans | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 0 | [1] | 0 | [4] |
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 3,597 | [1],[3] | 4,065 | [4],[6] |
Total Past Due | 3 | 3 | ||
Total portfolio loans and leases | 3,600 | 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 | 1 | [1] | 3 | [4] |
Commercial Portfolio Segment | Commercial Leases | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 2 | [1] | 0 | [4] |
Residential Mortgage | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 15,227 | [1],[2],[3] | 15,301 | [4],[5],[6] |
Total Past Due | 98 | [2] | 153 | [5] |
Total portfolio loans and leases | 15,325 | [2] | 15,454 | [5] |
90-Days past Due and Still Accruing | 38 | [2] | 57 | [5] |
Residential Mortgage | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 37 | [1],[2] | 66 | [4],[5] |
Residential Mortgage | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 61 | [1],[2] | 87 | [4],[5] |
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 6,280 | [1],[3] | 6,888 | [4],[6] |
Total Past Due | 122 | 126 | ||
Total portfolio loans and leases | 6,402 | 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 | 71 | [1] | 70 | [4] |
Consumer Portfolio Segment | Home Equity | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 51 | [1] | 56 | [4] |
Consumer Portfolio Segment | Automobile Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 8,844 | [1],[3] | 8,992 | [4],[6] |
Total Past Due | 132 | 120 | ||
Total portfolio loans and leases | 8,976 | 9,112 | ||
90-Days past Due and Still Accruing | 12 | 10 | ||
Consumer Portfolio Segment | Automobile Loans | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 119 | [1] | 107 | [4] |
Consumer Portfolio Segment | Automobile Loans | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 13 | [1] | 13 | [4] |
Consumer Portfolio Segment | Credit Card | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 2,381 | [1],[3] | 2,230 | [4],[6] |
Total Past Due | 89 | 69 | ||
Total portfolio loans and leases | 2,470 | 2,299 | ||
90-Days past Due and Still Accruing | 37 | 27 | ||
Consumer Portfolio Segment | Credit Card | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 47 | [1] | 36 | [4] |
Consumer Portfolio Segment | Credit Card | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 42 | [1] | 33 | [4] |
Consumer Portfolio Segment | Other Consumer Loans and Leases | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current Loans and Leases | 2,323 | [1],[3] | 1,554 | [4],[6] |
Total Past Due | 19 | 5 | ||
Total portfolio loans and leases | 2,342 | 1,559 | ||
90-Days past Due and Still Accruing | 0 | 0 | ||
Consumer Portfolio Segment | Other Consumer Loans and Leases | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 17 | [1] | 5 | [4] |
Consumer Portfolio Segment | Other Consumer Loans and Leases | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | $ 2 | [1] | $ 0 | [4] |
[1] | Includes accrual and nonaccrual loans and leases. | |||
[2] | Excludes $ 179 of residential mortgage loans measured at fair value at December 31, 2018 . | |||
[3] | Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2018 , $ 90 of these loans were 30-89 days past due and $ 195 w ere 90 days or more past due. The Bancorp recognized $ 5 o f losses during the year ended December 31, 2018 due to claim denials and curtailments as sociated with these insured or guaranteed loans. | |||
[4] | Includes accrual and nonaccrual loans and leases . | |||
[5] | Excludes $ 137 of residential mortgage loans measured at fair value at December 31, 2017 . | |||
[6] | Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA . As of December 31, 2017 , $ 95 of these loans were 30-89 days past due and $ 290 were 90 days or more past due. The Bancorp recognized $ 5 of losses during the year ended December 31, 2017 due to claim denials and curtailments a ssociated with these insured or guaranteed loans . |
Credit Quality (Summarizes th_2
Credit Quality (Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
Financing Receivable, Recorded Investment, Past Due | ||||
Portfolio loans and leases at fair value | $ 179 | $ 137 | ||
Total Past Due | 599 | [1] | 638 | [2] |
30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 326 | [1],[3] | 333 | [2],[4] |
90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 273 | [1],[3] | 305 | [2],[4] |
Residential Mortgage | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Portfolio loans and leases at fair value | 179 | 137 | ||
Residential Mortgage Loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Portfolio loans and leases at fair value | 179 | 137 | ||
Residential Mortgage Loans | Federal Housing Administration Loan | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Losses Due To Claim Denials And Curtailments | 5 | 5 | ||
Residential Mortgage Loans | Federal Housing Administration Loan | 30-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | 90 | 95 | ||
Residential Mortgage Loans | Federal Housing Administration Loan | 90 Days and Greater Past Due | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Total Past Due | $ 195 | $ 290 | ||
[1] | Excludes $ 179 of residential mortgage loans measured at fair value at December 31, 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 th_3
Credit Quality (Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | ||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | $ 846 | $ 1,158 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 536 | 521 | ||
Unpaid Principal Balance | 1,382 | 1,679 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 787 | 1,068 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 504 | 477 | ||
Recorded Investment | 1,291 | [1] | 1,545 | [2] |
Allowance | 141 | 200 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 156 | 433 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 137 | 151 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 107 | 358 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 125 | 131 | ||
Allowance | 34 | 87 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 2 | 16 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 9 | 18 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 2 | 14 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 9 | 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 | 11 | 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 | 11 | 35 | ||
Allowance | 0 | 0 | ||
Commercial Portfolio Segment | Commercial Leases | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 23 | 4 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 22 | 4 | ||
Allowance | 7 | 0 | ||
Residential Portfolio Segment | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 465 | 469 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 292 | 218 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 462 | 465 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 274 | 200 | ||
Allowance | 61 | 64 | ||
Consumer Portfolio Segment | Home Equity | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 146 | 172 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 85 | 97 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 145 | 172 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 83 | 94 | ||
Allowance | 22 | 27 | ||
Consumer Portfolio Segment | Automobile Loans | ||||
Impaired Financing Receivable Unpaid Principal Balance | ||||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 5 | 8 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 2 | 2 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 4 | 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 | 47 | 52 | ||
Impaired Financing Receivable Recorded Investment Abstract | ||||
Impaired Financing Receivable With Related Allowance Recorded Investment | 44 | 45 | ||
Allowance | $ 15 | $ 14 | ||
[1] | Includes $ 60 , $ 724 and $ 237 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 147 , $ 12 and $ 41 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2018 . | |||
[2] | Includes $ 249 , $ 652 and $ 275 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 150 , $ 13 and $ 45 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2017 |
Credit Quality (Summarizes th_4
Credit Quality (Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class) (Parenthetical) (Detail) | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016 | ||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | $ 1,382,000,000 | $ 1,679,000,000 | ||||
Recorded Investment | 1,291,000,000 | [1] | 1,545,000,000 | [2] | ||
Allowance | $ 141,000,000 | $ 200,000,000 | ||||
Number of Contracts | [3],[4] | 8,869 | 9,256 | 10,978 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||||
Financing Receivable, Impaired | ||||||
Allowance | $ 34,000,000 | $ 87,000,000 | ||||
Number of Contracts | [3],[4] | 54 | 75 | 74 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||||
Financing Receivable, Impaired | ||||||
Allowance | $ 1,000,000 | $ 7,000,000 | ||||
Number of Contracts | [3],[4] | 6 | 9 | 12 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||||
Financing Receivable, Impaired | ||||||
Allowance | $ 0 | $ 0 | ||||
Number of Contracts | [3],[4] | 3 | 4 | 4 | ||
Commercial Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | $ 60,000,000 | $ 249,000,000 | ||||
Commercial Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | 147,000,000 | 150,000,000 | ||||
Residential Portfolio Segment | ||||||
Financing Receivable, Impaired | ||||||
Allowance | $ 61,000,000 | $ 64,000,000 | ||||
Number of Contracts | [3],[4] | 1,128 | 830 | 924 | ||
Residential Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | $ 724,000,000 | $ 652,000,000 | ||||
Residential Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | 12,000,000 | 13,000,000 | ||||
Consumer Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | 237,000,000 | 275,000,000 | ||||
Consumer Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | ||||||
Financing Receivable, Impaired | ||||||
Unpaid Principal Balance | $ 41,000,000 | $ 45,000,000 | ||||
[1] | Includes $ 60 , $ 724 and $ 237 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 147 , $ 12 and $ 41 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2018 . | |||||
[2] | Includes $ 249 , $ 652 and $ 275 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $ 150 , $ 13 and $ 45 , respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2017 | |||||
[3] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||||
[4] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . |
Credit Quality (Summary of Aver
Credit Quality (Summary of Average Impaired Loans and Leases and Interest Income by Class) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Financing Receivable, Impaired | ||||
Average Recorded Investment | $ 1,469 | $ 1,677 | $ 1,946 | |
Interest Income Recognized | 60 | 52 | 58 | |
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 373 | 579 | 691 | |
Interest Income Recognized | 15 | 10 | 10 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | [1] | 15 | 35 | 63 |
Interest Income Recognized | [1] | 0 | 0 | 1 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 24 | 61 | 139 | |
Interest Income Recognized | 0 | 1 | 5 | |
Commercial Portfolio Segment | Commercial Construction Loans | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 0 | 0 | 3 | |
Interest Income Recognized | 0 | 0 | 0 | |
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 18 | 3 | 5 | |
Interest Income Recognized | 0 | 0 | 0 | |
Residential Portfolio Segment | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 743 | 657 | 647 | |
Interest Income Recognized | 28 | 25 | 25 | |
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 244 | 281 | 325 | |
Interest Income Recognized | 12 | 12 | 12 | |
Consumer Portfolio Segment | Automobile Loans | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 8 | 11 | 17 | |
Interest Income Recognized | 0 | 0 | 0 | |
Consumer Portfolio Segment | Credit Card | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | 44 | 50 | 56 | |
Interest Income Recognized | $ 5 | $ 4 | $ 5 | |
[1] | Excludes five restructured loans associated with a consolid ated VIE in which the Bancorp had no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 13 and $ 26 for t he years ended December 31, 2017 and 2016, respectively. An immaterial amount of interest income was recognized during both t he years ended December 31, 2017 and 2016. Refer to Note 10 for further discus sion on the deconsolidation of the VIE associated with these loans in the third qu arter of 2017. |
Credit Quality (Summary of th_6
Credit Quality (Summary of the Average Impaired Loans and Leases and Interest Income by Class) (Parenthetical) (Detail) | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Financing Receivable, Impaired | ||||
Average Recorded Investment | $ 1,469,000,000 | $ 1,677,000,000 | $ 1,946,000,000 | |
Number of Contracts | [1],[2] | 8,869 | 9,256 | 10,978 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | [3] | $ 15,000,000 | $ 35,000,000 | $ 63,000,000 |
Number of Contracts | [1],[2] | 6 | 9 | 12 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | Variable Interest Entity, Primary Beneficiary | ||||
Financing Receivable, Impaired | ||||
Average Recorded Investment | $ 13,000,000 | $ 26,000,000 | ||
[1] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||
[2] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . | |||
[3] | Excludes five restructured loans associated with a consolid ated VIE in which the Bancorp had no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $ 13 and $ 26 for t he years ended December 31, 2017 and 2016, respectively. An immaterial amount of interest income was recognized during both t he years ended December 31, 2017 and 2016. Refer to Note 10 for further discus sion on the deconsolidation of the VIE associated with these loans in the third qu arter of 2017. |
Credit Quality (Summary of th_7
Credit Quality (Summary of the Bancorp's Nonaccrual Loans and Leases by Class) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | [1],[2] | $ 348 | $ 437 |
OREO and other repossessed personal property | 48 | 54 | |
Nonperforming portfolio assets | [1],[2] | 395 | 489 |
Excludes OREO Related to Government Insured Loans | |||
Financing Receivable, Modifications | |||
OREO and other repossessed personal property | 47 | 52 | |
Commercial Portfolio Segment | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 228 | 306 | |
Commercial Portfolio Segment | Commercial and Industrial Loans | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 193 | 276 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 11 | 19 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 2 | 7 | |
Commercial Portfolio Segment | Commercial Leases | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 22 | 4 | |
Residential Mortgage Loans | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 22 | 30 | |
Consumer Portfolio Segment | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 98 | 101 | |
Consumer Portfolio Segment | Home Equity | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 69 | 74 | |
Consumer Portfolio Segment | Automobile Loans | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 1 | 1 | |
Consumer Portfolio Segment | Credit Card | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | 27 | 26 | |
Consumer Portfolio Segment | Other Consumer Loans and Leases | |||
Financing Receivable, Modifications | |||
Nonaccrual portfolio loans and leases | $ 1 | $ 0 | |
[1] | Includes $ 6 and $ 3 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at December 31, 2018 and 2017 , respectively, of which $ 2 and $ 3 are restructured nonaccrual government insured commercial loans at December 31, 2018 and 2017 , respectively . | ||
[2] | Excludes $ 16 and $ 6 of nonaccrual loans and leases held for sale at December 31, 2018 and 2017 , respectively. |
Credit Quality (Summary of th_8
Credit Quality (Summary of the Bancorp's Nonperforming Loans and Leases by Class) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Modifications | |||
Loans and leases held for sale | [1] | $ 607 | $ 492 |
Portfolio loans and leases | [2],[3] | 95,265 | 91,970 |
Variable Interest Entity, Primary Beneficiary | |||
Financing Receivable, Modifications | |||
Portfolio loans and leases | 668 | 1,297 | |
Commercial Portfolio Segment | |||
Financing Receivable, Modifications | |||
Portfolio loans and leases | 59,571 | 56,395 | |
Nonperforming Financing Receivable | |||
Financing Receivable, Modifications | |||
Loans and leases held for sale | 16 | 6 | |
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment | |||
Financing Receivable, Modifications | |||
Restructured nonaccrual loans and leases | 2 | 3 | |
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment | Small Business Administration | |||
Financing Receivable, Modifications | |||
Portfolio loans and leases | $ 6 | $ 3 | |
[1] | Includes $ 537 and $ 399 of residential mortgage loans held for sale measured at fair value and $7 and $0 of commercial loans held for sale measured at fair value at December 31, 2018 and 2017 , respectively. | ||
[2] | Includes $ 179 and $ 137 of residential mortgage loans measured at fair value at December 31, 2018 and 2017 , respectively. | ||
[3] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . |
Credit Quality (Credit Quality
Credit Quality (Credit Quality Additional Information) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Troubled Debt Restructuring | ||
Line of credit commitments for modified troubled debt restructurings | $ 24 | $ 53 |
Letter of credit commitments for modified troubled debt restructurings | 67 | 78 |
Mortgage loans in process of foreclosure amount | 153 | 235 |
Commercial aggregate borrower relationship subject to individual review for impairment | $ 1 | $ 1 |
Credit Quality (Summary of Loan
Credit Quality (Summary of Loans Modified in a TDR) (Detail) | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 8,869 | 9,256 | 10,978 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 415,000,000 | $ 413,000,000 | $ 413,000,000 |
Increase (Decrease) to ALLL Upon Modification | [2] | 13,000,000 | 13,000,000 | 32,000,000 |
Charge-offs Recognized Upon Modification | [2] | $ 9,000,000 | $ 7,000,000 | $ 4,000,000 |
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 54 | 75 | 74 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 200,000,000 | $ 237,000,000 | $ 183,000,000 |
Increase (Decrease) to ALLL Upon Modification | [2] | 1,000,000 | (5,000,000) | 14,000,000 |
Charge-offs Recognized Upon Modification | [2] | $ 7,000,000 | $ 6,000,000 | $ 0 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 6 | 9 | 12 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 3,000,000 | $ 8,000,000 | $ 11,000,000 |
Increase (Decrease) to ALLL Upon Modification | [2] | (1,000,000) | 5,000,000 | 0 |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | $ 0 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Nonowner-Occupied | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 3 | 4 | 4 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 0 | $ 0 | $ 5,000,000 |
Increase (Decrease) to ALLL Upon Modification | [2] | 0 | 0 | 2,000,000 |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | $ 0 |
Commercial Portfolio Segment | Commercial Leases | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 1 | 5 | |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 4,000,000 | $ 16,000,000 | |
Increase (Decrease) to ALLL Upon Modification | [2] | 0 | 0 | |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | |
Residential Mortgage Loans | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 1,128 | 830 | 924 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 168,000,000 | $ 116,000,000 | $ 137,000,000 |
Increase (Decrease) to ALLL Upon Modification | [2] | 4,000,000 | 5,000,000 | 8,000,000 |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | $ 0 |
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 111 | 150 | 219 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 7,000,000 | $ 10,000,000 | $ 15,000,000 |
Increase (Decrease) to ALLL Upon Modification | [2] | 0 | 0 | 0 |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | $ 0 |
Consumer Portfolio Segment | Automobile Loans | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 84 | 102 | 221 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 0 | $ 0 | $ 3,000,000 |
Increase (Decrease) to ALLL Upon Modification | [2] | 0 | 0 | 0 |
Charge-offs Recognized Upon Modification | [2] | $ 0 | $ 0 | $ 0 |
Consumer Portfolio Segment | Credit Card | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | [1],[2] | 7,483 | 8,085 | 9,519 |
Recorded Investment in Loans Modified in a TDR During the Period | [2] | $ 37,000,000 | $ 38,000,000 | $ 43,000,000 |
Increase (Decrease) to ALLL Upon Modification | [2] | 9,000,000 | 8,000,000 | 8,000,000 |
Charge-offs Recognized Upon Modification | [2] | $ 2,000,000 | $ 1,000,000 | $ 4,000,000 |
[1] | Represents number of loans post-modification and excludes loans previously modified in a TDR . | |||
[2] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool . |
Credit Quality (Summary of Subs
Credit Quality (Summary of Subsequent Defaults) (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 900 | 1,832 | 1,918 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 100 | $ 52 | $ 39 |
Commercial Portfolio Segment | Commercial and Industrial Loans | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 8 | 7 | 8 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 61 | $ 17 | $ 5 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner-Occupied | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 2 | 4 | 2 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 0 | $ 1 | $ 0 |
Commercial Portfolio Segment | Commercial leases | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 0 | 2 | |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 0 | $ 1 | |
Residential Mortgage Loans | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 225 | 172 | 172 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 35 | $ 24 | $ 25 |
Consumer Portfolio Segment | Home Equity | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 10 | 16 | 17 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 0 | $ 2 | $ 1 |
Consumer Portfolio Segment | Automobile Loans | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 0 | 2 | |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 0 | $ 0 | |
Consumer Portfolio Segment | Credit Card | ||||
Financing Receivable, Modifications | ||||
Number of contracts | [1] | 655 | 1,633 | 1,715 |
Recorded Investment in Loans Modified in a TDR During the Period | [1] | $ 4 | $ 8 | $ 7 |
[1] | (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. |
Bank Premises and Equipment (Ba
Bank Premises and Equipment (Bank Premises and Equipment (Detail)) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Property, Plant and Equipment | |||
Land and improvements | [1] | $ 586 | $ 644 |
Buildings | [1] | 1,547 | 1,679 |
Equipment | 1,987 | 1,876 | |
Leasehold improvements | 403 | 399 | |
Construction in progress | [1] | 81 | 93 |
Land and improvements held for sale | 25 | 17 | |
Buildings held for sale | 14 | 9 | |
Equipment held for sale | 3 | 1 | |
Accumulated depreciation and amortization | (2,785) | (2,715) | |
Total bank premises and equipment | [2] | $ 1,861 | $ 2,003 |
Building | Upper Limit | |||
Property, Plant and Equipment | |||
Useful life | 30 years | ||
Building | Lower limit | |||
Property, Plant and Equipment | |||
Useful life | 2 years | ||
Equipment | Upper Limit | |||
Property, Plant and Equipment | |||
Useful life | 20 years | ||
Equipment | Lower limit | |||
Property, Plant and Equipment | |||
Useful life | 2 years | ||
Leasehold Improvements | Upper Limit | |||
Property, Plant and Equipment | |||
Useful life | 30 years | ||
Leasehold Improvements | Lower limit | |||
Property, Plant and Equipment | |||
Useful life | 1 year | ||
[1] | (a) At December 31, 2018 and 2017 , land and improvements, buildings and construction in progress included $55 and $91, respectively, associated with parcels of undeveloped land intended for future branch expansion. | ||
[2] | Includes $ 42 and $ 27 of bank premises and equipment held for sale at December 31, 2018 and 2017 , respectively. For further information refer to N ote 7 . |
Bank Premises and Equipment (_2
Bank Premises and Equipment (Bank Premises and Equipment (Parenthetical) (Detail)) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment | |||
Land and improvements | [1] | $ 586 | $ 644 |
[1] | (a) At December 31, 2018 and 2017 , land and improvements, buildings and construction in progress included $55 and $91, respectively, associated with parcels of undeveloped land intended for future branch expansion. |
Bank Premises and Equipment (_3
Bank Premises and Equipment (Bank Premises and Equipment - Additional Information (Detail)) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Property, Plant and Equipment | |||
Depreciation and amortization expense | $ 238 | $ 234 | $ 242 |
Bank Premises Impairment | $ 45 | 7 | 32 |
2018 Branch Optimization Plan | |||
Property, Plant and Equipment | |||
Land and improvements | 21 | ||
Branches held for sale | 31 | ||
2018 Branch Optimization Plan | Lower limit | |||
Property, Plant and Equipment | |||
Branches held for sale | 100 | ||
2018 Branch Optimization Plan | Upper Limit | |||
Property, Plant and Equipment | |||
Branches held for sale | 125 | ||
Cancelable And Noncancelable Lease Obligations | |||
Property, Plant and Equipment | |||
Gross occupancy expense | $ 101 | 101 | 100 |
Rental income from leased premises | $ 12 | $ 13 | $ 16 |
Bank Premises and Equipment (An
Bank Premises and Equipment (Annual Future Minimum Payments under Capital Leases and Noncancelable Operating Leases (Detail)) $ in Millions | Dec. 31, 2018USD ($) |
Noncancelable Operating Leases | |
Property, Plant and Equipment | |
2,019 | $ 86 |
2,020 | 80 |
2,021 | 67 |
2,022 | 60 |
2,023 | 54 |
Thereafter | 256 |
Total minimum lease payments | 603 |
Amounts representing interest | 0 |
Present value of net minimum lease payments | 0 |
Capital Leases | |
Property, Plant and Equipment | |
2,019 | 6 |
2,020 | 5 |
2,021 | 4 |
2,022 | 4 |
2,023 | 0 |
Thereafter | 1 |
Total minimum lease payments | 20 |
Amounts representing interest | 2 |
Present value of net minimum lease payments | $ 18 |
Goodwill (Changes in the Net Ca
Goodwill (Changes in the Net Carrying Amount of Goodwill by Reporting Segment) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | |
Goodwill | |||
Goodwill | $ 3,381 | ||
Accumulated impairment losses | (965) | ||
Goodwill Roll Forward | |||
Net carrying amount, beginning of period: | $ 2,445 | $ 2,416 | |
Acquisition activity | 33 | 29 | |
Net carrying amount, end of period: | 2,478 | 2,445 | |
Commercial Banking | |||
Goodwill | |||
Goodwill | 1,363 | ||
Accumulated impairment losses | (750) | ||
Goodwill Roll Forward | |||
Net carrying amount, beginning of period: | 613 | 613 | |
Acquisition activity | 17 | 0 | |
Net carrying amount, end of period: | 630 | 613 | |
Branch Banking | |||
Goodwill | |||
Goodwill | 1,655 | ||
Accumulated impairment losses | 0 | ||
Goodwill Roll Forward | |||
Net carrying amount, beginning of period: | 1,655 | 1,655 | |
Acquisition activity | 0 | 0 | |
Net carrying amount, end of period: | 1,655 | 1,655 | |
Consumer Lending | |||
Goodwill | |||
Goodwill | 215 | ||
Accumulated impairment losses | (215) | ||
Goodwill Roll Forward | |||
Net carrying amount, beginning of period: | 0 | 0 | |
Acquisition activity | 0 | 0 | |
Net carrying amount, end of period: | 0 | 0 | |
Wealth and Asset Management | |||
Goodwill | |||
Goodwill | 148 | ||
Accumulated impairment losses | $ 0 | ||
Goodwill Roll Forward | |||
Net carrying amount, beginning of period: | 177 | 148 | |
Acquisition activity | 16 | 29 | |
Net carrying amount, end of period: | $ 193 | $ 177 |
Intangible Assets (Intangible A
Intangible Assets (Intangible Assets - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible Assets by Major Class | |||
Amortization of Intangible Assets | $ 5 | $ 2 | $ 2 |
Intangible Assets (Intangible_2
Intangible Assets (Intangible Assets) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 87 | $ 69 |
Accumulated Amortization | (47) | (42) |
Net Carrying Amount | 40 | 27 |
Core Deposits | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 34 | 34 |
Accumulated Amortization | (30) | (29) |
Net Carrying Amount | 4 | 5 |
Customer Relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 32 | 16 |
Accumulated Amortization | (3) | 0 |
Net Carrying Amount | 29 | 16 |
Noncompete Agreements | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 14 | 13 |
Accumulated Amortization | (11) | (10) |
Net Carrying Amount | 3 | 3 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 7 | 6 |
Accumulated Amortization | (3) | (3) |
Net Carrying Amount | $ 4 | $ 3 |
Intangible Assets (Estimated Am
Intangible Assets (Estimated Amortization Expense Other Intangible Assets) (Detail) - Other Intangible Assets $ in Millions | Dec. 31, 2018USD ($) |
Finite-Lived Intangible Assets | |
2,019 | $ 6 |
2,020 | 4 |
2,021 | 4 |
2,022 | 3 |
2,023 | $ 3 |
VIE (Classifications of Consoli
VIE (Classifications of Consolidated VIE Assets, Liabilities and Noncontrolling Interest Included in the Bancorp's Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Assets | |||||||||
Other short-term investments | [1] | $ 1,825 | $ 2,753 | ||||||
Cash and due from banks | 2,681 | 2,514 | [2] | $ 2,392 | [2] | $ 2,540 | [2] | ||
Commercial mortgage loans | 6,974 | 6,604 | |||||||
Automobile loans | 8,976 | 9,112 | |||||||
ALLL | (1,103) | [1] | (1,196) | [1] | $ (1,253) | $ (1,272) | |||
Other assets | [1] | 7,372 | [2] | 6,863 | |||||
Liabilities | |||||||||
Other liabilities | [1] | 2,498 | 2,144 | ||||||
Long-term debt | [1] | 14,426 | 14,904 | ||||||
Noncontrolling interests | 0 | 20 | |||||||
Variable Interest Entity, Primary Beneficiary | |||||||||
Assets | |||||||||
Other short-term investments | 40 | 62 | |||||||
Commercial mortgage loans | 0 | 20 | |||||||
Automobile loans | 668 | 1,277 | |||||||
ALLL | (4) | (6) | |||||||
Other assets | 5 | 7 | |||||||
Total Assets | 709 | 1,360 | |||||||
Liabilities | |||||||||
Other liabilities | 1 | 2 | |||||||
Long-term debt | 606 | 1,190 | |||||||
Total liabilities | 607 | 1,192 | |||||||
Noncontrolling interests | 0 | 20 | |||||||
Variable Interest Entity, Primary Beneficiary | Automobile Loans | |||||||||
Assets | |||||||||
Other short-term investments | 40 | 62 | |||||||
Commercial mortgage loans | 0 | 0 | |||||||
Automobile loans | 668 | 1,277 | |||||||
ALLL | (4) | (6) | |||||||
Other assets | 5 | 7 | |||||||
Total Assets | 709 | 1,340 | |||||||
Liabilities | |||||||||
Other liabilities | 1 | 2 | |||||||
Long-term debt | 606 | 1,190 | |||||||
Total liabilities | 607 | 1,192 | |||||||
Noncontrolling interests | 0 | 0 | |||||||
Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments | |||||||||
Assets | |||||||||
Other short-term investments | 0 | ||||||||
Cash and due from banks | 0 | ||||||||
Commercial mortgage loans | 0 | 20 | |||||||
Automobile loans | 0 | 0 | |||||||
ALLL | 0 | 0 | |||||||
Other assets | 0 | 0 | |||||||
Total Assets | 0 | 20 | |||||||
Liabilities | |||||||||
Other liabilities | 0 | 0 | |||||||
Long-term debt | 0 | 0 | |||||||
Total liabilities | 0 | 0 | |||||||
Noncontrolling interests | $ 0 | $ 20 | |||||||
[1] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . | ||||||||
[2] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. |
VIE (Variable Interest Entities
VIE (Variable Interest Entities - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Variable Interest Entity | ||||||
Allowance for loan and lease losses | $ 1,103 | [1] | $ 1,196 | [1] | $ 1,253 | $ 1,272 |
Asset Impairment Charges | 67 | 266 | ||||
Commercial mortgage loans | 6,974 | 6,604 | ||||
Affordable Housing Investments | ||||||
Variable Interest Entity | ||||||
Asset Impairment Charges | 57 | |||||
Private equity investments | ||||||
Variable Interest Entity | ||||||
Private Equity Fund Impairment | 9 | 1 | 0 | |||
Variable Interest Entity, Primary Beneficiary | ||||||
Variable Interest Entity | ||||||
Allowance for loan and lease losses | 4 | 6 | ||||
Commercial mortgage loans | 0 | 20 | ||||
Variable Interest Entity, Primary Beneficiary | Automobile Loans | ||||||
Variable Interest Entity | ||||||
Carry Value Of Loans Leases Or Lines Of Credit Securitized | 1,100 | |||||
Face amount of notes issued or redeemed | 1,000 | |||||
Long-term debt reatined | 261 | |||||
Allowance for loan and lease losses | 4 | 6 | ||||
Commercial mortgage loans | 0 | 0 | ||||
Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments | ||||||
Variable Interest Entity | ||||||
Allowance for loan and lease losses | 0 | 0 | ||||
Commercial mortgage loans | 0 | 20 | ||||
Variable Interest Entity, Not Primary Beneficiary | Loans Provided to VIEs | ||||||
Variable Interest Entity | ||||||
Unfunded commitment amounts | 1,300 | 1,100 | ||||
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments | ||||||
Variable Interest Entity | ||||||
Maximum Exposure | 1,198 | 1,264 | ||||
Bancorp's Investment in Affordable Housing Tax Credits | 1,198 | 1,264 | ||||
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 | 1,100 | 1,100 | ||||
Unfunded commitments | 374 | 355 | ||||
Variable Interest Entity, Not Primary Beneficiary | Private equity investments | ||||||
Variable Interest Entity | ||||||
Maximum Exposure | 73 | 150 | ||||
Bancorp's Investment in Affordable Housing Tax Credits | 41 | 102 | ||||
Unfunded commitment amounts | 32 | 48 | ||||
Capital Contribution To Private Equity Investments | 7 | 11 | ||||
Variable Interest Entity, Not Primary Beneficiary | Private equity investments | Nonconforming investments affected by Volcker Rule | ||||||
Variable Interest Entity | ||||||
Private Equity Fund Impairment | 8 | 1 | $ 9 | |||
Gain on sale of private equity investments | $ 11 | |||||
Deconsolidated Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments | ||||||
Variable Interest Entity | ||||||
Maximum Exposure | (19) | |||||
Commercial mortgage loans | $ (20) | |||||
[1] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . |
VIE (Assets and Liabilities Rel
VIE (Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses) (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fifth Third Community Development Corporation Investments | ||
Variable Interest Entity | ||
Total Assets | $ 1,198 | $ 1,264 |
Total Liabilities | 376 | 355 |
Maximum Exposure | 1,198 | 1,264 |
Private equity investments | ||
Variable Interest Entity | ||
Total Assets | 41 | 102 |
Total Liabilities | 0 | 0 |
Maximum Exposure | 73 | 150 |
Loans Provided to VIEs | ||
Variable Interest Entity | ||
Total Assets | 2,331 | 1,845 |
Total Liabilities | 0 | 0 |
Maximum Exposure | $ 3,617 | $ 2,910 |
VIE (Investments in Qualified A
VIE (Investments in Qualified Affordable Housing Tax Credits) (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Other noninterest expense | ||||
Schedule of Equity Method Investments | ||||
Pre-tax investment and impairment losses | [1] | $ 154 | $ 223 | $ 153 |
Applicable income tax expense | ||||
Schedule of Equity Method Investments | ||||
Tax credits and other benefits | [1] | $ (192) | $ (220) | $ (210) |
[1] | (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or othe r circumstances during the years ended December 31, 2018 , 2017 and 2016. The Bancorp recognized $57, as adjusted, of impairment losses primarily due to the change in the federal statutory corporate tax rate during the year ended December 31, 2017. |
VIE (Investments in Qualified_2
VIE (Investments in Qualified Affordable Housing Tax Credits) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | ||
Asset Impairment Charges | $ 67 | $ 266 |
Affordable Housing Investments | ||
Variable Interest Entity [Line Items] | ||
Asset Impairment Charges | $ 57 |
MSR (Activity Related to Mortga
MSR (Activity Related to Mortgage Banking Net Revenue) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale | ||||
Residential mortgage loan sales | [1] | $ 5,078 | $ 6,369 | $ 6,927 |
Origination fees and gains on loan sales | 100 | 138 | 186 | |
Gross mortgage servicing fees | $ 216 | $ 206 | $ 199 | |
[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 ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Servicing Assets at Fair Value | |||
Fair value at beginning of period | $ 858,000,000 | $ 744,000,000 | |
Servicing rights originated | 81,000,000 | 127,000,000 | |
Servicing rights acquired | 82,000,000 | 109,000,000 | |
Changes in fair value due to changes in inputs or assumptions | [1] | 42,000,000 | (1,000,000) |
Changes in fair value due to other changes in fair value | [2] | (125,000,000) | (121,000,000) |
Fair value at end of period | $ 938,000,000 | $ 858,000,000 | |
[1] | Primarily reflects changes in prepayment speed and OAS spread assumptions which are updated based on market interest rates. | ||
[2] | Primarily 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 | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Servicing Assets at Fair Value | ||||||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | $ (15) | $ 2 | $ 0 | |||
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (Mortgage banking net revenue) | [1] | (21) | 2 | 24 | ||
MSR fair value adjustments due to change in inputs or assumptions | 83 | 122 | [2] | 0 | [2] | |
Recovery of MSR impairment (Mortgage banking net revenue) | 0 | 0 | [2] | 7 | [2] | |
Mortgage Servicing Rights | ||||||
Servicing Assets at Fair Value | ||||||
MSR fair value adjustments due to change in inputs or assumptions | [1] | $ 42 | $ (1) | $ 0 | ||
[1] | Included in mortgage banking net reven ue in the Consolidated Statements of Income. | |||||
[2] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. |
MSR (Servicing Rights and Resid
MSR (Servicing Rights and Residual Interests Economic Assumptions) (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fixed Rate Residential Mortgage | ||
Schedule of Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 6 years 7 months 6 days | 7 years 6 months |
Prepayment Speed (annual) | 10.50% | 9.10% |
OAS spread (bps) | 5.22% | 4.97% |
Adjustable Rate Residential Mortgage | ||
Schedule of Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 2 years 7 months 6 days | 2 years 8 months 12 days |
Prepayment Speed (annual) | 30.30% | 32.10% |
OAS spread (bps) | 6.47% | 6.60% |
MSR (Sales of Receivables and S
MSR (Sales of Receivables and Servicing Rights - Additional Information) (Detail) - USD ($) $ in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure - Activity Related to Mortgage Banking Net Revenue [Abstract] | ||
Sevicing of residential mortgage loans for other investors | $ 63.2 | $ 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 | 12 Months Ended | |
Dec. 31, 2018USD ($) | [1] | |
Fixed Rate Residential Mortgage | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption | ||
Fair Value | $ 925 | |
Weighted- Average Life (in years) | 6 years 2 months 12 days | |
Prepayment Speed (annual) | 10.20% | |
Impact of Adverse Change on Fair Value 10% | $ 36 | |
Impact of Adverse Change on Fair Value 20% | 69 | |
Impact of Adverse Change on Fair Value 50% | $ 158 | |
OAS spread (bps) | 53.40% | |
Impact of Adverse Change on Fair Value 10% | $ 18 | |
Impact of Adverse Change on Fair Value 20% | 35 | |
Adjustable Rate Residential Mortgage | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption | ||
Fair Value | $ 13 | |
Weighted- Average Life (in years) | 3 years 6 months | |
Prepayment Speed (annual) | 23.00% | |
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% | $ 3 | |
OAS spread (bps) | 86.30% | |
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-aver age default rate on the current fair value of residual cash flows for all scenarios is immaterial . |
Derivatives (Derivative Financi
Derivatives (Derivative Financial Instruments - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2009 | |
Derivative | |||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 481 | $ 409 | |
Valuation adjustments related to the credit risk associated with counterparties of customer accommodation derivative contracts | 3 | 3 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 551 | 365 | |
Maximum Length Of Time Hedged In Interest Rate Cash Flow Hedge | 6 years | ||
Notional amount of the risk participations agreements | $ 4,002 | 2,838,000 | |
Credit Risk Derivatives Average Life | 3 years 6 months 4 days | ||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||
Amount of variation margin payment applied to derivative asset contracts | $ 249 | ||
Amount of variation margin payment applied to derivative liability contracts | 23 | ||
Interest Rate Contract | |||
Derivative | |||
Fair value of risk participation agreements | 8 | 5 | |
Interest Rate Contract | Cash Flow Hedging | |||
Derivative | |||
Deferred gains, net of tax, on cash flow hedges were recorded in accumulated other comprehensive income | 160 | $ 9 | |
Net deferred gains or losses, net of tax, recorded in AOCI are expected to be reclassified into earnings | $ 10 |
Derivatives (Notional Amounts a
Derivatives (Notional Amounts and Fair Values for All Derivative Instruments Included in the Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value | ||
Fair value - Derivative Assets | $ 1,114 | $ 823 |
Fair value - Derivative Liabilities | 874 | 602 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 346 | 297 |
Fair value - Derivative Liabilities | 29 | 17 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 262 | 297 |
Fair value - Derivative Liabilities | 2 | 5 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | Interest Rate Swap | Long-Term Debt | ||
Derivatives, Fair Value | ||
Notional amount | 3,455 | 3,705 |
Fair value - Derivative Assets | 262 | 297 |
Fair value - Derivative Liabilities | 2 | 5 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 84 | 0 |
Fair value - Derivative Liabilities | 27 | 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 | 8,000 | 4,475 |
Fair value - Derivative Assets | 15 | 0 |
Fair value - Derivative Liabilities | 27 | 12 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | Interest Rate Floor | Commercial and Industrial Loans | ||
Derivatives, Fair Value | ||
Notional amount | 3,000 | |
Fair value - Derivative Assets | 69 | |
Fair value - Derivative Liabilities | 0 | |
Nondesignated | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 768 | 526 |
Fair value - Derivative Liabilities | 845 | 585 |
Nondesignated | Risk Management and Other Business Purposes | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 44 | 75 |
Fair value - Derivative Liabilities | 147 | 154 |
Nondesignated | Risk Management and Other Business Purposes | Interest Rate Contract | Mortgage Servicing Rights | ||
Derivatives, Fair Value | ||
Notional amount | 10,045 | 11,035 |
Fair value - Derivative Assets | 40 | 54 |
Fair value - Derivative Liabilities | 14 | 15 |
Nondesignated | Risk Management and Other Business Purposes | Forward Contracts | Assets Held For Sale | Residential Mortgage | ||
Derivatives, Fair Value | ||
Notional amount | 926 | 1,284 |
Fair value - Derivative Assets | 0 | 1 |
Fair value - Derivative Liabilities | 8 | 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 | 2,174 | 1,900 |
Fair value - Derivative Assets | 0 | 0 |
Fair value - Derivative Liabilities | 125 | 137 |
Nondesignated | Risk Management and Other Business Purposes | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Notional amount | 133 | 112 |
Fair value - Derivative Assets | 4 | 0 |
Fair value - Derivative Liabilities | 0 | 1 |
Nondesignated | Customer Accommodation | ||
Derivatives, Fair Value | ||
Fair value - Derivative Assets | 724 | 451 |
Fair value - Derivative Liabilities | 698 | 431 |
Nondesignated | Customer Accommodation | Interest Rate Contract | ||
Derivatives, Fair Value | ||
Notional amount | 55,012 | 42,216 |
Fair value - Derivative Assets | 262 | 154 |
Fair value - Derivative Liabilities | 278 | 145 |
Nondesignated | Customer Accommodation | Interest Rate Lock Commitments | ||
Derivatives, Fair Value | ||
Notional amount | 407 | 446 |
Fair value - Derivative Assets | 7 | 8 |
Fair value - Derivative Liabilities | 0 | 0 |
Nondesignated | Customer Accommodation | Commodity Contract | ||
Derivatives, Fair Value | ||
Notional amount | 6,511 | 4,125 |
Fair value - Derivative Assets | 307 | 165 |
Fair value - Derivative Liabilities | 278 | 167 |
Nondesignated | Customer Accommodation | TBA Securities | ||
Derivatives, Fair Value | ||
Notional amount | 18 | 26 |
Fair value - Derivative Assets | 0 | 0 |
Fair value - Derivative Liabilities | 0 | 0 |
Nondesignated | Customer Accommodation | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Notional amount | 13,205 | 12,654 |
Fair value - Derivative Assets | 148 | 124 |
Fair value - Derivative Liabilities | $ 142 | $ 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 - Interest Rate Contract - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Long-Term Debt | |||
Derivatives, Fair Value | |||
Carrying Amount of Hedged Item | $ 3,991 | ||
Cumulative Amount Of Fair Value Hedging Adjustments | (254) | ||
Interest Expense, Long-Term Debt | |||
Derivatives, Fair Value | |||
Change in fair value of interest rate swaps hedging long-term debt | (36) | $ (33) | $ (59) |
Change in fair value of hedged long-term debt | $ 41 | $ 31 | $ 54 |
Derivatives (Net Gains (Losses)
Derivatives (Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges) (Detail) - Cash Flow Hedging - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | |
Derivative Instruments, Gain (Loss) | |||||
Amount of pretax net (losses) gains recognized in OCI | $ 214 | $ (11) | $ 30 | ||
Interest Income (Expense) Net | |||||
Derivative Instruments, Gain (Loss) | |||||
Amount of pretax net gains (losses) reclassified from OCI into net income | $ (2) | $ 19 | $ 48 | ||
[1] | For both the years ended December 31, 2017 and 2016 , the amount of pre - tax 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 ineffectiveness. Refer to Note 1 for additional information. |
Derivatives (Net Gains (Losse_2
Derivatives (Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used for Risk Management and Other Business Purposes) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Derivative Instruments, Gain (Loss) | |||||
Net gains (losses) recorded in earnings | [1] | $ (21) | $ 2 | $ 24 | |
Interest Rate Contract | Forward Contracts | Loans Held-for-Sale | Mortgage Banking Revenue | |||||
Derivative Instruments, Gain (Loss) | |||||
Net gains (losses) recorded in earnings | (8) | (17) | 14 | ||
Interest Rate Contract | Mortgage Servicing Rights | Mortgage Banking Revenue | Residential Mortgage | |||||
Derivative Instruments, Gain (Loss) | |||||
Net gains (losses) recorded in earnings | (21) | 2 | 24 | ||
Foreign Exchange Contract | Forward Contracts | Other Noninterest Income | |||||
Derivative Instruments, Gain (Loss) | |||||
Net gains (losses) recorded in earnings | 10 | (7) | 2 | ||
Equity Contract | Stock warrants associated with Worldpay Holding, LLC | Other Noninterest Income | |||||
Derivative Instruments, Gain (Loss) | |||||
Net gains (losses) recorded in earnings | 0 | 0 | 73 | [2] | |
Equity Contract | Swap | Other Noninterest Income | |||||
Derivative Instruments, Gain (Loss) | |||||
Net gains (losses) recorded in earnings | (59) | (80) | (56) | ||
Equity Contract | Stock warrant | Other Noninterest Income | |||||
Derivative Instruments, Gain (Loss) | |||||
Net gains (losses) recorded in earnings | $ 0 | $ (1) | $ 0 | ||
[1] | Included in mortgage banking net reven ue in the Consolidated Statements of Income. | ||||
[2] | a) The Bancorp recognized a net gain of $9 on the exercise of the remaining warrant during the fourth quarter of 2016 |
Derivatives (Net Gains (Losse_3
Derivatives (Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used for Risk Management and Other Business Purposes) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Common Class A Member | Worldpay Holding, LLC | ||
Derivative Instruments, Gain (Loss) | ||
Proceeds From Warrant Exercises | $ 9 | $ 89 |
Derivatives (Risk Ratings of th
Derivatives (Risk Ratings of the Notional Amount of Risk Participation Agreements) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | $ 4,002 | $ 2,838,000 |
Pass | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | 3,919 | 2,748 |
Special Mention | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | 79 | 66 |
Substandard | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | $ 4 | $ 24 |
Derivatives (Net Gains (Losse_4
Derivatives (Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used For Customer Accommodation) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | [1] | $ (21) | $ 2 | $ 24 |
Interest Rate Contract | Customer Contracts | Corporate Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 32 | 21 | 22 | |
Interest Rate Contract | Customer Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 0 | (5) | 0 | |
Interest Rate Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 0 | 2 | 1 | |
Interest Rate Contract | Interest Rate Lock Commitments | Mortgage Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 70 | 93 | 114 | |
Commodity Contract | Customer Contracts | Corporate Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 9 | 6 | 6 | |
Commodity Contract | Customer Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 0 | 1 | (1) | |
Commodity Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | (1) | 0 | 1 | |
Foreign Exchange Contract | Customer Contracts | Corporate Banking Revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 55 | 48 | 62 | |
Foreign Exchange Contract | Customer Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 0 | 2 | (2) | |
Foreign Exchange Contract | Customer Contracts | Other Noninterest Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 14 | 0 | 0 | |
Foreign Exchange Contract | Fair Value Adjustments on Hedges and Derivative Contracts | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ 1 | $ 1 | $ 1 | |
[1] | Included in mortgage banking net reven ue in the Consolidated Statements of Income. |
Derivatives (Offsetting Derivat
Derivatives (Offsetting Derivative Financial Instruments) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | ||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | $ 1,114 | $ 823 | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 481 | 409 | ||
Derivative, Collateral, Obligation to Return Cash | (271) | (341) | ||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | 874 | 602 | ||
Derivative Fair Value Amount Offset Against Collateral Net | 551 | 365 | ||
Assets | ||||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | 1,107 | [1] | 815 | [2] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (410) | (213) | ||
Derivative, Collateral, Obligation to Return Cash | (348) | [3] | (362) | [4] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 349 | 240 | ||
Liabilities | ||||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | 874 | [1] | 602 | [2] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (410) | (213) | ||
Derivative Liabilities, Collateral, Right to Reclaim Cash | (123) | [3] | (155) | [4] |
Derivative Fair Value Amount Offset Against Collateral Net | 341 | 234 | ||
Derivative | Assets | ||||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | 1,107 | [1] | 815 | [2] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (410) | (213) | ||
Derivative, Collateral, Obligation to Return Cash | (348) | [3] | (362) | [4] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 349 | 240 | ||
Derivative | Liabilities | ||||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ||||
Gross Amount Recognized in the Balance Sheet | 874 | [1] | 602 | [2] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (410) | (213) | ||
Derivative Liabilities, Collateral, Right to Reclaim Cash | (123) | [3] | (155) | [4] |
Derivative Fair Value Amount Offset Against Collateral Net | $ 341 | $ 234 | ||
[1] | (a) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements. | |||
[2] | Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangement s . | |||
[3] | (b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related d erivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. | |||
[4] | Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Consolidated Balance Sheets were excluded from this table. |
Other Assets (Components of Oth
Other Assets (Components of Other Assets Included in the Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | ||
Prepaid Expense and Other Assets | ||||
Accounts receivable and drafts-in-process | $ 1,963 | $ 1,763 | ||
Bank owned life insurance | 1,760 | 1,720 | ||
Partnership investments | 1,390 | 1,445 | ||
Derivative instruments | 1,114 | 823 | ||
Accrued interest and fees receivable | 438 | 378 | ||
Investment in Worldpay Holding, LLC | 420 | 219 | ||
Prepaid expenses | 93 | 87 | ||
Income tax receivable | 56 | 66 | ||
OREO and other repossessed personal property | 48 | 54 | ||
Worldpay, Inc. TRA put/call receivable | 0 | 105 | ||
Other | 90 | 203 | ||
Total other assets | [2] | $ 7,372 | [1] | $ 6,863 |
[1] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. | |||
[2] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . |
Other Assets (Other Assets - Ad
Other Assets (Other Assets - Additional Information) (Detail) | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Dec. 31, 2015 | Jun. 30, 2014 | [1] | Sep. 30, 2013 | [1] | Jun. 30, 2013 | [1] | Dec. 31, 2012 | [1] | Mar. 31, 2012 | Jun. 30, 2009 | |
Other assets | ||||||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | |||||||||||||||
Percentage of ownership under the equity method of accounting | [1] | 3.30% | 4.90% | 8.60% | ||||||||||||
Worldpay Holding, LLC | ||||||||||||||||
Other assets | ||||||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | |||||||||||||||
Percentage of ownership under the equity method of accounting | 3.30% | 18.30% | 22.80% | 25.10% | 27.70% | 33.10% | 39.00% | 49.00% | ||||||||
[1] | (a) The Bancorp’s remaining investment in Worldpay Holding, LLC of $ 420 as of December 31, 2018 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. |
Short-Term Borrowings (Summary
Short-Term Borrowings (Summary of Short-Term Borrowings and Weighted-Average Rates) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Short Term Debt | ||
Federal funds purchased | $ 1,925 | $ 174 |
Other short-term borrowings | 573 | 4,012 |
Federal Funds Purchased | ||
Short Term Debt | ||
Federal funds purchased | 1,925 | 174 |
Short-term borrowings, average | 1,509 | 557 |
Short-term borrowings, maximum month-end balance | $ 2,684 | $ 1,495 |
Short-term borrowngs, rate | 2.40% | 1.37% |
Short-term borrowings, average rate | 1.97% | 1.01% |
Other Short Term Borrowings | ||
Short Term Debt | ||
Other short-term borrowings | $ 573 | $ 4,012 |
Short-term borrowings, average | 1,611 | 3,158 |
Short-term borrowings, maximum month-end balance | $ 6,313 | $ 6,307 |
Short-term borrowngs, rate | 1.95% | 1.28% |
Short-term borrowings, average rate | 1.82% | 0.96% |
Short-Term Borrowings (Componen
Short-Term Borrowings (Components of Other Short-Term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Short Term Debt | ||
FHLB advances | $ 0 | $ 3,125 |
Securities sold under repurchase agreements | 302 | 546 |
Derivative collateral | 271 | 341 |
Total other short-term borrowings | $ 573 | $ 4,012 |
Long-Term Debt (Summary of the
Long-Term Debt (Summary of the Bancorp's Long-Term Borrowings) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | ||||
Debt Instrument | |||||
Long-term debt | [1] | $ 14,426 | $ 14,904 | ||
Variable Interest Entity, Primary Beneficiary | |||||
Debt Instrument | |||||
Long-term debt | 606 | 1,190 | |||
Parent Company | |||||
Debt Instrument | |||||
Long-term debt | $ 5,675 | ||||
Parent Company | Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Feb. 28, 2014 | ||||
Maturity date(s) End | Mar. 1, 2019 | ||||
Interest rate | 2.30% | ||||
Long-term debt | $ 500 | 499 | |||
Parent Company | Senior Debt Obligations | Fixed Rate 2.875 Percent Due 2020 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Jul. 27, 2015 | ||||
Maturity date(s) End | Jul. 27, 2020 | ||||
Interest rate | 2.875% | ||||
Long-term debt | $ 1,098 | 1,097 | |||
Parent Company | Senior Debt Obligations | Fixed Rate 2.60 Percent Notes Due 2022 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Jun. 15, 2017 | ||||
Maturity date(s) End | Jun. 15, 2022 | ||||
Interest rate | 2.60% | ||||
Long-term debt | $ 698 | 697 | |||
Parent Company | Senior Debt Obligations | Fixed Rate 3.50 Percent Due 2022 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Mar. 7, 2012 | ||||
Maturity date(s) End | Mar. 15, 2022 | ||||
Interest rate | 3.50% | ||||
Long-term debt | $ 498 | 497 | |||
Parent Company | Senior Debt Obligations | Fixed Rate 3.95 Percent Notes Due 2028 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Mar. 14, 2018 | ||||
Maturity date(s) End | Mar. 14, 2028 | ||||
Interest rate | 3.95% | ||||
Long-term debt | $ 646 | 0 | |||
Parent Company | Senior Debt Obligations | Floating Rate 3.206 Percent Notes Due 2021 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Jun. 5, 2018 | ||||
Maturity date(s) End | Jun. 4, 2021 | ||||
Variable interest rate | 3.206% | ||||
Long-term debt | $ 250 | [2] | 0 | ||
Parent Company | Subordinated Debt | Fixed Rate 4.30 Notes Due 2024 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Nov. 20, 2013 | ||||
Maturity date(s) End | Jan. 16, 2024 | ||||
Interest rate | 4.30% | ||||
Long-term debt | [3] | $ 747 | 747 | ||
Parent Company | Subordinated Debt | Fixed Rate 8.25 Percent Notes Due 2038 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Mar. 4, 2008 | ||||
Maturity date(s) End | Mar. 1, 2038 | ||||
Interest rate | 8.25% | ||||
Long-term debt | [3] | $ 1,238 | 1,305 | ||
Parent Company | Subordinated Debt | Fixed Rate 4.50 Percent Notes Due 2018 | |||||
Debt Instrument | |||||
Maturity date(s) Start | May 23, 2003 | ||||
Maturity date(s) End | Jun. 1, 2018 | ||||
Interest rate | 4.50% | ||||
Long-term debt | [3] | $ 0 | 505 | ||
Subsidiaries | |||||
Debt Instrument | |||||
Long-term debt | $ 8,751 | ||||
Subsidiaries | Debt Other Variable Percent Due 2019 Through 2039 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Jan. 1, 2019 | ||||
Maturity date(s) End | Dec. 31, 2039 | ||||
Long-term debt | $ 56 | 105 | |||
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Fixed Rate | Automobile Loans | |||||
Debt Instrument | |||||
Maturity date(s) Start | Jan. 1, 2019 | ||||
Maturity date(s) End | Dec. 31, 2024 | ||||
Long-term debt | $ 568 | 982 | |||
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Fixed Rate | Automobile Loans | Lower limit | |||||
Debt Instrument | |||||
Interest rate | 1.42% | ||||
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Fixed Rate | Automobile Loans | Upper Limit | |||||
Debt Instrument | |||||
Interest rate | 2.03% | ||||
Subsidiaries | Variable Interest Entity, Primary Beneficiary | Floating Rate | Automobile Loans | |||||
Debt Instrument | |||||
Maturity date(s) End | Apr. 15, 2020 | ||||
Variable interest rate | 2.605% | ||||
Long-term debt | $ 11 | 75 | |||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Mar. 15, 2016 | ||||
Maturity date(s) End | Mar. 15, 2019 | ||||
Interest rate | 2.30% | ||||
Long-term debt | $ 750 | 749 | |||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.15 Percent Notes Due 2018 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Aug. 20, 2015 | ||||
Maturity date(s) End | Jul. 21, 2018 | ||||
Interest rate | 2.15% | ||||
Long-term debt | $ 0 | 996 | |||
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.45 Percent Notes Due 2018 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Feb. 28, 2013 | ||||
Maturity date(s) End | Jan. 29, 2018 | ||||
Interest rate | 1.45% | ||||
Long-term debt | $ 0 | 600 | |||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.375 Percent Notes Due 2019 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Apr. 25, 2014 | ||||
Maturity date(s) End | Apr. 25, 2019 | ||||
Interest rate | 2.375% | ||||
Long-term debt | $ 850 | 849 | |||
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.625 Percent Notes Due 2019 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Sep. 27, 2016 | ||||
Maturity date(s) End | Sep. 27, 2019 | ||||
Interest rate | 1.625% | ||||
Long-term debt | $ 743 | 736 | |||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.20 Percent Notes Due 2020 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Oct. 30, 2017 | ||||
Maturity date(s) End | Oct. 30, 2020 | ||||
Interest rate | 2.20% | ||||
Long-term debt | $ 742 | 744 | |||
Subsidiaries | Senior Debt Obligations | Floating Rate 3.412 Percent Notes Due 2019 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Sep. 27, 2016 | ||||
Maturity date(s) End | Sep. 27, 2019 | ||||
Variable interest rate | 3.412% | ||||
Long-term debt | $ 250 | [2] | 250 | ||
Subsidiaries | Senior Debt Obligations | Floating Rate 2.770 Percent Notes Due 2020 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Oct. 30, 2017 | ||||
Maturity date(s) End | Oct. 30, 2020 | ||||
Variable interest rate | 2.77% | ||||
Long-term debt | $ 300 | [2] | 299 | [4] | |
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.25 Percent Notes Due 2021 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Jun. 14, 2016 | ||||
Maturity date(s) End | Jun. 14, 2021 | ||||
Interest rate | 2.25% | ||||
Long-term debt | $ 1,248 | 1,247 | |||
Subsidiaries | Senior Debt Obligations | Fixed rate 2.875 percent Notes due 2021 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Sep. 5, 2014 | ||||
Maturity date(s) End | Oct. 1, 2021 | ||||
Interest rate | 2.875% | ||||
Long-term debt | $ 847 | 846 | |||
Subsidiaries | Senior Debt Obligations | Fixed Rate 3.35 Percent Notes Due 2021 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Jul. 26, 2018 | ||||
Maturity date(s) End | Jun. 28, 2021 | ||||
Interest rate | 3.35% | ||||
Long-term debt | $ 502 | 0 | |||
Subsidiaries | Senior Debt Obligations | Fixed Rate 3.95 Percent Notes Due 2025 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Jul. 26, 2018 | ||||
Maturity date(s) End | Jun. 30, 2025 | ||||
Interest rate | 3.95% | ||||
Long-term debt | $ 764 | 0 | |||
Subsidiaries | Senior Debt Obligations | Floating Rate 2.948 Percent Notes Due 2021 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Jul. 26, 2018 | ||||
Maturity date(s) End | Jun. 28, 2021 | ||||
Variable interest rate | 2.948% | ||||
Long-term debt | $ 299 | [2] | 0 | ||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.35 Percent Notes Due 2018 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Aug. 20, 2015 | ||||
Maturity date(s) End | Jul. 21, 2018 | ||||
Interest rate | 2.35% | ||||
Long-term debt | $ 0 | 250 | |||
Subsidiaries | Subordinated Debt | Fixed Rate 3.85 Percent Notes Due 2026 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Mar. 15, 2016 | ||||
Maturity date(s) End | Mar. 15, 2026 | ||||
Interest rate | 3.85% | ||||
Long-term debt | [3] | $ 747 | 747 | ||
Subsidiaries | Junior Subordinated Debt | Floating Rate 4.21% - 4.48% Debentures Due 2035 | First Charter Capital Trusts | |||||
Debt Instrument | |||||
Maturity date(s) Start | Jun. 28, 2005 | ||||
Maturity date(s) End | Dec. 15, 2035 | ||||
Long-term debt | [2] | $ 52 | 52 | ||
Subsidiaries | Junior Subordinated Debt | Floating Rate | Lower limit | |||||
Debt Instrument | |||||
Interest rate | 4.21% | ||||
Subsidiaries | Junior Subordinated Debt | Floating Rate | Upper Limit | |||||
Debt Instrument | |||||
Interest rate | 4.28% | ||||
Subsidiaries | FHLB advances | FHLB Advances 0.05 To 6.87 Percent Due 2019 Through 2041 | |||||
Debt Instrument | |||||
Maturity date(s) Start | Jan. 1, 2019 | ||||
Maturity date(s) End | Dec. 31, 2041 | ||||
Long-term debt | $ 22 | $ 30 | |||
Subsidiaries | FHLB advances | FHLB Advances 0.05 To 6.87 Percent Due 2019 Through 2041 | Lower limit | |||||
Debt Instrument | |||||
Interest rate | 0.05% | ||||
Subsidiaries | FHLB advances | FHLB Advances 0.05 To 6.87 Percent Due 2019 Through 2041 | Upper Limit | |||||
Debt Instrument | |||||
Interest rate | 6.87% | ||||
[1] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . | ||||
[2] | These rates reflect the floating rates as of December 31, 2018 . | ||||
[3] | In aggregate, $ 2.6 billion qualifies as Tier II capital for regulatory capital purposes for both years ended December, 31 2018 and 2017 . | ||||
[4] | These rates reflect the floating rates as of December 31, 2018 . |
Long-Term Debt (Summary of th_2
Long-Term Debt (Summary of the Bancorp's Long-Term Borrowings) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument | |||
Long-term debt | [1] | $ 14,426 | $ 14,904 |
Amount Qualifying As Tier Two Capital For Regulatory Capital Purposes | |||
Debt Instrument | |||
Long-term debt | $ 2,600 | $ 2,600 | |
[1] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . |
Long-Term Debt (Schedule of Agg
Long-Term Debt (Schedule of Aggregate Maturities of Long-Term Debt Obligations) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument | |||
Contractually obligated payments for long-term debt due in 2019 | $ 3,110 | ||
Contractually obligated payments for long-term debt due in 2020 | 2,203 | ||
Contractually obligated payments for long-term debt due in 2021 | 3,148 | ||
Contractually obligated payments for long-term debt due in 2022 | 1,657 | ||
Contractually obligated payments for long-term debt due in 2023 | 1 | ||
Thereafter | 4,307 | ||
Total | [1] | 14,426 | $ 14,904 |
Parent Company | |||
Debt Instrument | |||
Contractually obligated payments for long-term debt due in 2019 | 500 | ||
Contractually obligated payments for long-term debt due in 2020 | 1,098 | ||
Contractually obligated payments for long-term debt due in 2021 | 250 | ||
Contractually obligated payments for long-term debt due in 2022 | 1,196 | ||
Contractually obligated payments for long-term debt due in 2023 | 0 | ||
Thereafter | 2,631 | ||
Total | 5,675 | ||
Subsidiaries | |||
Debt Instrument | |||
Contractually obligated payments for long-term debt due in 2019 | 2,610 | ||
Contractually obligated payments for long-term debt due in 2020 | 1,105 | ||
Contractually obligated payments for long-term debt due in 2021 | 2,898 | ||
Contractually obligated payments for long-term debt due in 2022 | 461 | ||
Contractually obligated payments for long-term debt due in 2023 | 1 | ||
Thereafter | 1,676 | ||
Total | $ 8,751 | ||
[1] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . |
Long-Term Debt (Long-Term Debt
Long-Term Debt (Long-Term Debt - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | ||||
Debt Instrument | |||||||||
Long-term debt | [1] | $ 14,426 | $ 14,904 | ||||||
Debt, outstanding principal balance | 14,200 | 14,700 | |||||||
Debt, discounts and premiums | 20 | 21 | |||||||
Unamortized debt issuance costs | 30 | 31 | |||||||
Additions for mark-to-market adjustments on hedged debt | 254 | 298 | |||||||
Senior Debt Obligations | Fixed rate 2.875 percent Notes due 2021 | |||||||||
Debt Instrument | |||||||||
Issue of senior notes to third party investors | $ 850 | ||||||||
Variable Interest Entity, Primary Beneficiary | Automobile Loans | |||||||||
Debt Instrument | |||||||||
Long-term debt | 501 | ||||||||
Debt, outstanding principal balance | 78 | ||||||||
Carry value of automobile loans securitized | 1,100 | ||||||||
Face amount of notes issued or redeemed | 1,000 | ||||||||
Parent Company | |||||||||
Debt Instrument | |||||||||
Long-term debt | 5,675 | ||||||||
Parent Company | Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 500 | 499 | |||||||
Issue of senior notes to third party investors | 500 | ||||||||
Maturity date(s) Start | Feb. 28, 2014 | ||||||||
Maturity date(s) End | Mar. 1, 2019 | ||||||||
Parent Company | Senior Debt Obligations | Fixed Rate 2.875 Percent Due 2020 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 1,098 | 1,097 | |||||||
Issue of senior notes to third party investors | $ 1,100 | ||||||||
Maturity date(s) Start | Jul. 27, 2015 | ||||||||
Maturity date(s) End | Jul. 27, 2020 | ||||||||
Parent Company | Senior Debt Obligations | Fixed Rate 2.60 Percent Notes Due 2022 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 698 | 697 | |||||||
Issue of senior notes to third party investors | 700 | ||||||||
Maturity date(s) Start | Jun. 15, 2017 | ||||||||
Maturity date(s) End | Jun. 15, 2022 | ||||||||
Parent Company | Senior Debt Obligations | Fixed Rate 3.50 Percent Due 2022 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 498 | 497 | |||||||
Issue of senior notes to third party investors | $ 500 | ||||||||
Maturity date(s) Start | Mar. 7, 2012 | ||||||||
Maturity date(s) End | Mar. 15, 2022 | ||||||||
Parent Company | Senior Debt Obligations | Fixed Rate 3.95 Percent Notes Due 2028 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 646 | 0 | |||||||
Issue of senior notes to third party investors | $ 650 | ||||||||
Maturity date(s) Start | Mar. 14, 2018 | ||||||||
Maturity date(s) End | Mar. 14, 2028 | ||||||||
Parent Company | Senior Debt Obligations | Floating Rate 3.206 Percent Notes Due 2021 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 250 | [2] | 0 | ||||||
Maturity date(s) Start | Jun. 5, 2018 | ||||||||
Maturity date(s) End | Jun. 4, 2021 | ||||||||
Parent Company | Senior Debt Obligations | Floating Rate 3.206 Percent Notes Due 2021 | Three Month LIBOR | |||||||||
Debt Instrument | |||||||||
Issue of senior notes to third party investors | $ 250 | ||||||||
Basis points | 47 | ||||||||
Parent Company | Subordinated Debt | Fixed Rate 4.30 Notes Due 2024 | |||||||||
Debt Instrument | |||||||||
Long-term debt | [3] | $ 747 | 747 | ||||||
Issue of senior notes to third party investors | $ 750 | ||||||||
Maturity date(s) Start | Nov. 20, 2013 | ||||||||
Maturity date(s) End | Jan. 16, 2024 | ||||||||
Parent Company | Subordinated Debt | Fixed Rate 8.25 Percent Notes Due 2038 | |||||||||
Debt Instrument | |||||||||
Long-term debt | [3] | $ 1,238 | 1,305 | ||||||
Issue of senior notes to third party investors | $ 1,000 | ||||||||
Maturity date(s) Start | Mar. 4, 2008 | ||||||||
Maturity date(s) End | Mar. 1, 2038 | ||||||||
Parent Company | Subordinated Debt | Fixed Rate 8.25 Percent Notes Due 2038 | Three Month LIBOR | |||||||||
Debt Instrument | |||||||||
Amount of debt converted to floating rate | $ 705 | ||||||||
Interest rate paid | 5.79% | ||||||||
Subsidiaries | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 8,751 | ||||||||
Debt, available for future issuance | 17,000 | ||||||||
Global Bank Note Program | 25,000 | ||||||||
Subsidiaries | Automobile Loans | |||||||||
Debt Instrument | |||||||||
Long-term debt reatined | 261 | ||||||||
Subsidiaries | FHLB Advances 0.05 To 6.87 Percent Due 2019 Through 2041 | FHLB advances | |||||||||
Debt Instrument | |||||||||
Residential mortgage loans and securities serving as FHLB collateral | 14,400 | ||||||||
FHLB advance | 22 | ||||||||
FHLB advances maturing 2019 | 7 | ||||||||
FHLB advances maturing 2020 | 2 | ||||||||
FHLB advances maturing 2021 | 2 | ||||||||
FHLB advances maturing 2022 | 2 | ||||||||
FHLB advances maturing thereafter | 8 | ||||||||
FHLB advances maturing 2023 | 1 | ||||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.30 Percent Notes Due 2019 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 750 | 749 | |||||||
Issue of senior notes to third party investors | $ 750 | ||||||||
Maturity date(s) Start | Mar. 15, 2016 | ||||||||
Maturity date(s) End | Mar. 15, 2019 | ||||||||
Subsidiaries | Senior Debt Obligations | Floating Rate 2.35 Percent Notes Due 2018 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 0 | 250 | |||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.375 Percent Notes Due 2019 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 850 | 849 | |||||||
Issue of senior notes to third party investors | $ 850 | ||||||||
Maturity date(s) Start | Apr. 25, 2014 | ||||||||
Maturity date(s) End | Apr. 25, 2019 | ||||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 1.625 Percent Notes Due 2019 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 743 | 736 | |||||||
Issue of senior notes to third party investors | 750 | ||||||||
Maturity date(s) Start | Sep. 27, 2016 | ||||||||
Maturity date(s) End | Sep. 27, 2019 | ||||||||
Basis points | 53 | ||||||||
Subsidiaries | Senior Debt Obligations | Floating Rate 3.412 Percent Notes Due 2019 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 250 | [2] | 250 | ||||||
Maturity date(s) Start | Sep. 27, 2016 | ||||||||
Maturity date(s) End | Sep. 27, 2019 | ||||||||
Subsidiaries | Senior Debt Obligations | Floating Rate 3.412 Percent Notes Due 2019 | Three Month LIBOR | |||||||||
Debt Instrument | |||||||||
Issue of senior notes to third party investors | 250 | ||||||||
Basis points | 59 | ||||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.20 Percent Notes Due 2020 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 742 | 744 | |||||||
Maturity date(s) Start | Oct. 30, 2017 | ||||||||
Maturity date(s) End | Oct. 30, 2020 | ||||||||
Basis points | 24 | ||||||||
Subsidiaries | Senior Debt Obligations | Floating Rate 2.770 Percent Notes Due 2020 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 300 | [2] | 299 | [4] | |||||
Maturity date(s) Start | Oct. 30, 2017 | ||||||||
Maturity date(s) End | Oct. 30, 2020 | ||||||||
Subsidiaries | Senior Debt Obligations | Floating Rate 2.770 Percent Notes Due 2020 | Three Month LIBOR | |||||||||
Debt Instrument | |||||||||
Issue of senior notes to third party investors | 300 | ||||||||
Basis points | 25 | ||||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 2.25 Percent Notes Due 2021 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 1,248 | 1,247 | |||||||
Issue of senior notes to third party investors | 1,300 | ||||||||
Maturity date(s) Start | Jun. 14, 2016 | ||||||||
Maturity date(s) End | Jun. 14, 2021 | ||||||||
Subsidiaries | Senior Debt Obligations | Fixed rate 2.875 percent Notes due 2021 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 847 | 846 | |||||||
Maturity date(s) Start | Sep. 5, 2014 | ||||||||
Maturity date(s) End | Oct. 1, 2021 | ||||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 3.35 Percent Notes Due 2021 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 502 | 0 | |||||||
Issue of senior notes to third party investors | $ 500 | ||||||||
Maturity date(s) Start | Jul. 26, 2018 | ||||||||
Maturity date(s) End | Jun. 28, 2021 | ||||||||
Basis points | 53 | ||||||||
Subsidiaries | Senior Debt Obligations | Fixed Rate 3.95 Percent Notes Due 2025 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 764 | 0 | |||||||
Issue of senior notes to third party investors | $ 750 | ||||||||
Maturity date(s) Start | Jul. 26, 2018 | ||||||||
Maturity date(s) End | Jun. 30, 2025 | ||||||||
Basis points | 104 | ||||||||
Subsidiaries | Senior Debt Obligations | Floating Rate 2.948 Percent Notes Due 2021 | |||||||||
Debt Instrument | |||||||||
Long-term debt | $ 299 | [2] | 0 | ||||||
Maturity date(s) Start | Jul. 26, 2018 | ||||||||
Maturity date(s) End | Jun. 28, 2021 | ||||||||
Subsidiaries | Senior Debt Obligations | Floating Rate 2.948 Percent Notes Due 2021 | Three Month LIBOR | |||||||||
Debt Instrument | |||||||||
Issue of senior notes to third party investors | $ 300 | ||||||||
Basis points | 44 | ||||||||
Subsidiaries | Subordinated Debt | Fixed Rate 2.20 Percent Notes Due 2020 | |||||||||
Debt Instrument | |||||||||
Issue of senior notes to third party investors | 750 | ||||||||
Subsidiaries | Subordinated Debt | Fixed Rate 3.85 Percent Notes Due 2026 | |||||||||
Debt Instrument | |||||||||
Long-term debt | [3] | $ 747 | $ 747 | ||||||
Issue of senior notes to third party investors | $ 750 | ||||||||
Maturity date(s) Start | Mar. 15, 2016 | ||||||||
Maturity date(s) End | Mar. 15, 2026 | ||||||||
Subsidiaries | Junior Subordinated Debt | Floating Rate 4.21% - 4.48% Debentures Due 2035 | Trust Preferred Securities | Three Month LIBOR | First Charter Capital Trust I | |||||||||
Debt Instrument | |||||||||
Basis points | 169 | ||||||||
Subsidiaries | Junior Subordinated Debt | Floating Rate 4.21% - 4.48% Debentures Due 2035 | Trust Preferred Securities | Three Month LIBOR | First Charter Capital Trust II | |||||||||
Debt Instrument | |||||||||
Basis points | 142 | ||||||||
[1] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . | ||||||||
[2] | These rates reflect the floating rates as of December 31, 2018 . | ||||||||
[3] | In aggregate, $ 2.6 billion qualifies as Tier II capital for regulatory capital purposes for both years ended December, 31 2018 and 2017 . | ||||||||
[4] | These rates reflect the floating rates as of December 31, 2018 . |
Commitments (Summary of Signifi
Commitments (Summary of Significant Commitments) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments to Extend Credit | ||
Long-term Purchase Commitment | ||
Commitments | $ 70,415 | $ 68,106 |
Letters of Credit | ||
Long-term Purchase Commitment | ||
Commitments | 2,041 | 2,185 |
Forward Contracts Related to Residential Mortgage LoansHeld for Sale | ||
Long-term Purchase Commitment | ||
Commitments | 926 | 1,284 |
Noncancelable Operating Lease Obligations | ||
Long-term Purchase Commitment | ||
Commitments | 603 | 568 |
Capital Commitments for Private Equity Investments | ||
Long-term Purchase Commitment | ||
Commitments | 32 | 48 |
Purchase Obligations | ||
Long-term Purchase Commitment | ||
Commitments | 126 | 144 |
Capital Expenditures | ||
Long-term Purchase Commitment | ||
Commitments | 45 | 37 |
Capital Lease Obligations | ||
Long-term Purchase Commitment | ||
Commitments | $ 20 | $ 26 |
Commitments (Risk Rating Under
Commitments (Risk Rating Under the Risk Rating System) (Detail) - Commitments to Extend Credit - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility | ||
Commitments | $ 70,415 | $ 68,106 |
Pass | ||
Line of Credit Facility | ||
Commitments | 69,928 | 67,254 |
Special Mention | ||
Line of Credit Facility | ||
Commitments | 271 | 330 |
Substandard | ||
Line of Credit Facility | ||
Commitments | 216 | 522 |
Doubtful | ||
Line of Credit Facility | ||
Commitments | $ 0 | $ 0 |
Commitments (Commitments, Conti
Commitments (Commitments, Contingent Liabilities and Guarantees - Additional Information) (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | Dec. 31, 2009 | |||
Loss Contingencies | ||||||||||||||
Letters of Credit | $ 2,041 | $ 2,185 | ||||||||||||
Margin account balance held by the brokerage clearing agent | 13 | 15 | ||||||||||||
Amount in excess of amounts reserved | 14 | |||||||||||||
Credit loss reserve | 1,103 | [1] | 1,196 | [1] | $ 1,253 | $ 1,272 | ||||||||
Visa Class B shares carryover basis | $ 0 | |||||||||||||
Residential Mortgage | ||||||||||||||
Loss Contingencies | ||||||||||||||
Amount in excess of amounts reserved | 9 | |||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | 6 | 9 | $ 13 | |||||||||||
Outstanding balances on residential mortgage loans sold with credit recourse | $ 272 | $ 312 | ||||||||||||
Delinquency Rates | 2.20% | 3.00% | ||||||||||||
Credit loss reserve | $ 5 | $ 5 | ||||||||||||
Make Whole Payments | 1 | |||||||||||||
Repurchased Outstanding Principal | 18 | 12 | ||||||||||||
Repurchase Demand Request | 19 | 15 | ||||||||||||
Outstanding Repurchase Demand Inventory | 1 | 1 | ||||||||||||
Secured Debt | ||||||||||||||
Loss Contingencies | ||||||||||||||
Fully and unconditionally guaranteed certain long-term borrowing obligations issued by wholly-owned issuing trust entities | 62 | 62 | ||||||||||||
Standby Letters of Credit | ||||||||||||||
Loss Contingencies | ||||||||||||||
Reserve for unfunded commitments | $ 17 | $ 6 | ||||||||||||
Standby letters of credit as a percentage of total letters of credit | 99.00% | 99.00% | ||||||||||||
Standby Letters of Credit | Secured Debt | ||||||||||||||
Loss Contingencies | ||||||||||||||
Standby letters of credit as a percentage of total letters of credit | 60.00% | 61.00% | ||||||||||||
Variable Rate Demand Note | ||||||||||||||
Loss Contingencies | ||||||||||||||
Fifth Third Securities, Inc. (FTS) acted as the remarketing agent to issuers of VRDNs | $ 481 | $ 508 | ||||||||||||
Letters of Credit | 6 | 94 | ||||||||||||
Total Variable Rate Demand Notes | 487 | 602 | ||||||||||||
Letters Credit Issued Related Variable Rate Demand Notes | 256 | 331 | ||||||||||||
Variable Rate Demand Note | TradingAssetsExcludingDebtAndEquitySecuritiesMember [Member] | ||||||||||||||
Loss Contingencies | ||||||||||||||
Total Variable Rate Demand Notes | 9 | 1 | ||||||||||||
Other Liabilities | ||||||||||||||
Loss Contingencies | ||||||||||||||
Reserve for unfunded commitments | 131 | 161 | ||||||||||||
Other Liabilities | Residential Mortgage | ||||||||||||||
Loss Contingencies | ||||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | 6 | 9 | ||||||||||||
Visa | ||||||||||||||
Loss Contingencies | ||||||||||||||
Recorded share of litigation formally settled by Visa and for probable future litigation settlements | $ 125 | $ 137 | ||||||||||||
Visa IPO, shares of Visa's Class B common stock received | 10.1 | |||||||||||||
Escrow Deposit | $ 600 | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 | $ 3,000 | ||||||
[1] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . |
Commitments (Standby and Commer
Commitments (Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party) (Detail) - Letters of Credit $ in Millions | Dec. 31, 2018USD ($) | |
Line of Credit Facility | ||
Commitments | $ 2,041 | |
Less Than One Year From The Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 1,044 | [1] |
More than One and within Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 989 | [1] |
More than Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | $ 8 | |
[1] | (a) Includes $ 1 and $ 18 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively. |
Commitments (Standby and Comm_2
Commitments (Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party) (Parenthetical) (Detail) - Letters of Credit $ in Millions | Dec. 31, 2018USD ($) | |
Line of Credit Facility | ||
Commitments | $ 2,041 | |
Less Than One Year From The Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 1,044 | [1] |
Less Than One Year From The Balance Sheet Date | Commercial | Commercial customers to facilitate trade payments in U.S. dollars and foreign currencies | ||
Line of Credit Facility | ||
Commitments | 1 | |
More than One and within Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | 989 | [1] |
More than One and within Five Years from Balance Sheet Date | Commercial | Commercial customers to facilitate trade payments in U.S. dollars and foreign currencies | ||
Line of Credit Facility | ||
Commitments | 18 | |
More than Five Years from Balance Sheet Date | ||
Line of Credit Facility | ||
Commitments | $ 8 | |
[1] | (a) Includes $ 1 and $ 18 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 - 5 years, respectively. |
Commitments (Letters of Credit)
Commitments (Letters of Credit) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | $ 2,041 | $ 2,185 |
Pass | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | 1,905 | 1,830 |
Special Mention | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | 10 | 67 |
Substandard | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | 126 | 218 |
Doubtful | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Line Of Credit | $ 0 | $ 70 |
Commitments (Activity in Reserv
Commitments (Activity in Reserve for Representation and Warranty Provisions) (Detail) - Residential Mortgage - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation And Qualifying Accounts Disclosure | ||
Balance, beginning of period | $ 9 | $ 13 |
Net (reductions) additions to the reserve | (3) | (3) |
Losses charged against the reserve | 0 | (1) |
Balance, end of period | $ 6 | $ 9 |
Commitments (Unresolved Claims
Commitments (Unresolved Claims by Claimant) (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
GSE | ||
Loss Contingencies Dollars | ||
Balance, beginning of period | $ 1 | $ 2 |
New demands | 19 | 15 |
Loan paydowns/payoffs | 0 | 0 |
Resolved claims | (19) | (16) |
Balance, end of period | $ 1 | $ 1 |
Loss Contingencies Units | ||
Balance, beginning of period | 6 | 13 |
New demands | 121 | 109 |
Loan paydowns/payoffs | 0 | (2) |
Resolved claims | (118) | (114) |
Balance, end of period | 9 | 6 |
Private Label | ||
Loss Contingencies Dollars | ||
Balance, beginning of period | $ 0 | $ 0 |
New demands | 0 | 0 |
Loan paydowns/payoffs | 0 | 0 |
Resolved claims | 0 | 0 |
Balance, end of period | $ 0 | $ 0 |
Loss Contingencies Units | ||
Balance, beginning of period | 1 | 0 |
New demands | 0 | 1 |
Loan paydowns/payoffs | 0 | 0 |
Resolved claims | 0 | 0 |
Balance, end of period | 1 | 1 |
Commitments (Visa Funding and B
Commitments (Visa Funding and Bancorp Cash Payments) (Detail) - USD ($) $ in Millions | 3 Months Ended | |||||||
Jun. 30, 2018 | Sep. 30, 2014 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | Dec. 31, 2009 | |
Visa Funding | ||||||||
Loss Contingencies | ||||||||
Escrow Deposit | $ 600 | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 | $ 3,000 |
Bancorp Cash Payment | ||||||||
Loss Contingencies | ||||||||
Reduction of liability in cash to the swap counterparty | $ 26 | $ 18 | $ 6 | $ 75 | $ 19 | $ 35 | $ 20 |
Legal and Regulatory Proceedi_2
Legal and Regulatory Proceedings (Legal and Regulatory Proceedings - Additional Information) (Detail) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2013 | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2013USD ($) | Sep. 30, 2012 | |
Loss Contingencies | ||||||
Class Settlement Escrow | $ 5,300 | |||||
Amount in excess of amounts reserved | 14 | |||||
Litigation Settlement Amount | 6,240 | |||||
APR Percentage Allegedly Misleading | 120.00% | |||||
Number Of Putative Class Actions Filed | 4 | |||||
Damages Claimed By Plaintiff | 900 | $ 40 | $ 800 | |||
Settlement Payment Returned To Defendants | $ 700 | |||||
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 (Summary of the B
Related Party (Summary of the Bancorp's Activities with its Principal Shareholders, Directors and Executives) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transactions | ||
Outstanding balance on loans, net of participations and undrawn commitments | $ 10 | $ 20 |
Commitments to Extend Credit | ||
Related Party Transactions | ||
Commitments to Extend Credit | 70,415 | 68,106 |
Commitments to Extend Credit | Due to related party | ||
Related Party Transactions | ||
Commitments to Extend Credit | 706 | 552 |
Commitments to Extend Credit | Director | Due to related party | ||
Related Party Transactions | ||
Commitments to Extend Credit | 700 | 546 |
Commitments to Extend Credit | Executive Officer | Due to related party | ||
Related Party Transactions | ||
Commitments to Extend Credit | $ 6 | $ 6 |
Related Party (Summary of Vanti
Related Party (Summary of Vantiv Holding, LLC Sales Transactions) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2015 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | Jun. 30, 2009 | ||||||
Related Party Transactions | ||||||||||||||||||
Gain on sale of Worldpay, Inc. shares | $ 205 | $ 414 | $ 205 | $ 1,037 | $ 0 | |||||||||||||
Equity Method Investment, Ownership Percentage | [1] | 3.30% | 4.90% | 8.60% | ||||||||||||||
Worldpay Holding, LLC | ||||||||||||||||||
Related Party Transactions | ||||||||||||||||||
Gain on sale of Worldpay, Inc. shares | $ 331 | $ 125 | $ 85 | $ 242 | $ 157 | $ 115 | ||||||||||||
Equity Method Investment, Ownership Percentage | 18.30% | 22.80% | [1] | 25.10% | [1] | 27.70% | [1] | 33.10% | [1] | 39.00% | 3.30% | 49.00% | ||||||
[1] | (a) The Bancorp’s remaining investment in Worldpay Holding, LLC of $ 420 as of December 31, 2018 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. |
Related Party (Summary of Van_2
Related Party (Summary of Vantiv Holding, LLC Sales Transactions) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Equity Method Investment Summarized Financia lInformation | ||
Worldpay Holding, LLC Carrying Value | $ 420 | $ 219 |
Related Party (Cash Flows to be
Related Party (Cash Flows to be Received from the TRA) (Detail) - Estimated Cash Flow To Be Received Not Subject To Put Call Option $ in Millions | Dec. 31, 2018USD ($) | [1],[2] |
Vantiv TRA Cash Flows | ||
2,019 | $ 20 | |
2,020 | 29 | |
2,021 | 32 | |
2,022 | 33 | |
2,023 | 33 | |
2,024 | 34 | |
2,025 | 35 | |
2,026 | 36 | |
Thereafter | 357 | |
Total Cash Flows to be Received from TRA | $ 609 | |
[1] | (a) The 2019 cash flow of $20 has been agreed upon with Worldpay, Inc., for settlement in January 2019 and was recognized as a gain in other noninterest income during the fourth quarter of 2018. The remaining estimated cash flows in this column (which include TRA benefits associated with the net exercise of the warrant in 2016, the subseque nt exchange of Worldpay Holding, LLC units in the third quarter of 201 7 and the subsequent exchange of World pay H olding, LLC units in the second quarter of 2018 ) will be recognized in future periods when the related uncertainties are resolved. | |
[2] | (b) The estimated cash flows assume that Worldpay, Inc. has sufficient taxable income to utilize the tax deductions a ssociated with the TRA. |
Related Party (Cash Flows to _2
Related Party (Cash Flows to be Received from the TRA) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2016 | |
Vantiv, Inc. | |||
Vantiv TRA Cash Flows | |||
Potential Termination And Settlement Of Tra Cash Flows | $ 394 | ||
Estimated Cash Flow To Be Received Not Subject To Put Call Option | |||
Vantiv TRA Cash Flows | |||
Cash Flow To Be Received From Tra | [1],[2] | $ 609 | |
[1] | (a) The 2019 cash flow of $20 has been agreed upon with Worldpay, Inc., for settlement in January 2019 and was recognized as a gain in other noninterest income during the fourth quarter of 2018. The remaining estimated cash flows in this column (which include TRA benefits associated with the net exercise of the warrant in 2016, the subseque nt exchange of Worldpay Holding, LLC units in the third quarter of 201 7 and the subsequent exchange of World pay H olding, LLC units in the second quarter of 2018 ) will be recognized in future periods when the related uncertainties are resolved. | ||
[2] | (b) The estimated cash flows assume that Worldpay, Inc. has sufficient taxable income to utilize the tax deductions a ssociated with the TRA. |
Related Party (Related Party Tr
Related Party (Related Party Transactions - Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2010 | Sep. 30, 2017 | Jun. 30, 2009 | ||||||||
Related Party Transactions | |||||||||||||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | [1] | 3.30% | 4.90% | 8.60% | |||||||||||||||||||
Gain on sale of Worldpay, Inc. shares | $ 205 | $ 414 | $ 205 | $ 1,037 | $ 0 | ||||||||||||||||||
Loans to related parties | 10 | 20 | |||||||||||||||||||||
Letters of Credit | 2,041 | 2,185 | |||||||||||||||||||||
Taxable Receivable Agreement Payment | 20 | 44 | [2] | 197 | [2] | ||||||||||||||||||
Equity investments, carrying value | 420 | 219 | |||||||||||||||||||||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 481 | 409 | |||||||||||||||||||||
Fair value - Derivative Assets | $ 1,114 | 823 | |||||||||||||||||||||
Class A Units | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Class B Units Exchanged For Class A Units | 19.79 | ||||||||||||||||||||||
Worldpay Holding, LLC | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | 51.00% | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 18.30% | 22.80% | [1] | 25.10% | [1] | 27.70% | [1] | 33.10% | [1] | 39.00% | 3.30% | 18.30% | 49.00% | ||||||||||
Gain on sale of Worldpay, Inc. shares | $ 331 | $ 125 | $ 85 | $ 242 | $ 157 | $ 115 | |||||||||||||||||
Dividend on Equity method investment in Vantiv Holding, LLC | $ 3 | 19 | 9 | ||||||||||||||||||||
Service fee paid to Vantiv Holding, LLC | 74 | 72 | 76 | ||||||||||||||||||||
Outstanding balance of loans owed to the Bancorp from Vantiv Holding, LLC | $ 1,250 | ||||||||||||||||||||||
Loans to related parties | 187 | 203 | |||||||||||||||||||||
Interest income relating to the Vantiv Holding, LLC loans | 7 | 5 | 4 | ||||||||||||||||||||
Letters of Credit | 74 | 4 | |||||||||||||||||||||
Cancellation Of Rights To Purchase Class C Units Under Warrant | 4,800,000 | 4,800,000 | |||||||||||||||||||||
Cash Payment For Cancellation Of Warrant | $ 200 | ||||||||||||||||||||||
Exchange Of Class C Shares For Class A Shares | 8,000,000 | 8,000,000 | |||||||||||||||||||||
Investment Warrants Exercise Price | $ 15.98 | $ 15.98 | |||||||||||||||||||||
Payment From Vantiv Inc to Bancorp To Terminate And Settle Certain Remaining TRA Cash Flows | $ 171 | 171 | |||||||||||||||||||||
Potential Termination And Settlement Of Tra Cash Flows | $ 394 | 394 | |||||||||||||||||||||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 2 | ||||||||||||||||||||||
Worldpay Holding, LLC | Other Noninterest Income | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 1 | 47 | 66 | ||||||||||||||||||||
Worldpay Holding, LLC | During Deconversion Period | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Revenue From Related Parties | 1 | 1 | 1 | ||||||||||||||||||||
Worldpay Holding, LLC | Beyond Deconversion Period | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Revenue From Related Parties | $ 75 | 68 | $ 58 | ||||||||||||||||||||
Worldpay Holding, LLC | Class B Units | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Shares held in Vantiv, Inc. | 10,300,000 | ||||||||||||||||||||||
Balance held at close of period in number of shares | 35,000,000 | ||||||||||||||||||||||
Worldpay Holding, LLC | Class C Units | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Shares Exercised Underlying Warrant | 7,800,000 | 7,800,000 | |||||||||||||||||||||
Warrant Exercised Total Shares Settled | 5,700,000 | 5,400,000 | 5,700,000 | 5,400,000 | |||||||||||||||||||
Aggregate amount of each class of warrants or rights outstanding | 7,800,000 | ||||||||||||||||||||||
Worldpay Holding, LLC | Class A Units | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Proceeds From Warrant Exercises | $ 9 | $ 89 | |||||||||||||||||||||
Class B Units Exchanged For Class A Units | 64.04 | ||||||||||||||||||||||
Balance held at close of period in number of shares | 35,000,000 | ||||||||||||||||||||||
Vantiv, Inc. | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Gain on sale of Worldpay, Inc. shares | 116 | $ 49 | |||||||||||||||||||||
Voting Power In Vantiv | 18.50% | ||||||||||||||||||||||
Amount Of Cash Flow Sales From 2017 to 2030 | $ 331 | 331 | $ 140 | ||||||||||||||||||||
Percentage Of Warrant Exercised | 62.00% | 62.00% | |||||||||||||||||||||
Payment From Vantiv Inc to Bancorp To Terminate And Settle Certain Remaining TRA Cash Flows | $ 171 | $ 171 | |||||||||||||||||||||
TRA Obligations Settled Due Exercised Options Exercised | $ 63 | 108 | |||||||||||||||||||||
Potential Termination And Settlement Of Tra Cash Flows | 394 | 394 | |||||||||||||||||||||
Pretax Gain Recognized | $ 164 | 164 | |||||||||||||||||||||
Vantiv, Inc. | Other Noninterest Income | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Taxable Receivable Agreement Payment | $ 44 | 33 | $ 31 | ||||||||||||||||||||
Vantiv, Inc. | Class B Units | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Shares held in Vantiv, Inc. | 43,000,000 | ||||||||||||||||||||||
Vantiv, Inc. | Class C Units | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Warrant Exercised Total Shares Settled | 7,800,000 | 7,800,000 | |||||||||||||||||||||
Exchange Of Class C Shares For Class A Shares | 5,700,000 | 5,700,000 | |||||||||||||||||||||
Vantiv, Inc. | Class C Units | Shares Sold In Secondary Offering | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Exchange Of Class C Shares For Class A Shares | 4,800,000 | 4,800,000 | |||||||||||||||||||||
Vantiv, Inc. | Class C Units | Shares repurchased by Vantiv Inc. | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Exchange Of Class C Shares For Class A Shares | 900,000 | 900,000 | |||||||||||||||||||||
Vantiv, Inc. | Class C Units | Other Noninterest Income | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Pretax Gain Recognized | $ 9 | $ 9 | |||||||||||||||||||||
Vantiv, Inc. | Class A Units | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Shares Exercised Underlying Warrant | 5,000,000 | ||||||||||||||||||||||
Exchange Of Class C Shares For Class A Shares | 5,700,000 | 5,400,000 | 5,700,000 | 5,400,000 | |||||||||||||||||||
Vantiv, Inc. | Class A Units | Shares Sold In Secondary Offering | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Warrant Exercised Total Shares Settled | 4,800,000 | 4,800,000 | |||||||||||||||||||||
Vantiv, Inc. | Class A Units | Shares repurchased by Vantiv Inc. | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Warrant Exercised Total Shares Settled | 900,000 | 900,000 | |||||||||||||||||||||
SLK Global | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 49.00% | ||||||||||||||||||||||
Service fee paid to Vantiv Holding, LLC | $ 21 | 21 | $ 20 | ||||||||||||||||||||
Equity investments, carrying value | 23 | 22 | |||||||||||||||||||||
SLK Global | Other Noninterest Income | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 3 | ||||||||||||||||||||||
Revenue From Related Parties | 2 | 3 | |||||||||||||||||||||
CDC | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Loans to related parties | 83 | 83 | |||||||||||||||||||||
Related Party Deposit Liabilities | 77 | 26 | |||||||||||||||||||||
CDC | Unfunded Commitment | |||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||
Due To Other Related Parties Current And Noncurrent | $ 80 | $ 80 | |||||||||||||||||||||
[1] | (a) The Bancorp’s remaining investment in Worldpay Holding, LLC of $ 420 as of December 31, 2018 was accounted for as an equity method investment in the Bancorp’s Consolidated Financial Statements. | ||||||||||||||||||||||
[2] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. |
Income Taxes (Applicable Income
Income Taxes (Applicable Income Taxes Included in the Consolidated Statements of Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Reconciliation Of Provision Of Income Taxes | |||||
U.S. Federal income taxes | $ 463 | $ 986 | $ 751 | ||
State and local income taxes | 71 | 68 | 55 | ||
Foreign income taxes | 8 | (3) | 0 | ||
Total current tax expense (benefit) | 542 | 1,051 | 806 | ||
U.S. Federal income taxes | 24 | (254) | (126) | ||
State and local income taxes | 4 | 2 | (14) | ||
Foreign income taxes | 2 | 0 | (1) | ||
Total deferred tax expense (benefit) | 30 | (252) | [1] | (141) | [1] |
Applicable income tax expense | $ 572 | $ 799 | $ 665 | ||
[1] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. |
Income Taxes (Reconciliation Be
Income Taxes (Reconciliation Between the Federal Statutory Corporate Tax Rate and the Bancorp's Effective Tax Rate) (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation Of Statutory Federal Tax Rate | |||
Statutory tax rate | 21.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 2.10% | 1.50% | 1.20% |
Tax-exempt income | (0.80%) | (1.10%) | (2.50%) |
LIHTC investment and other tax benefits | (6.80%) | (6.90%) | (9.40%) |
LIHTC investment proportional amortization | 5.60% | 7.40% | 6.90% |
Other tax credits | (0.10%) | (0.40%) | (0.80%) |
U.S. tax legislation impact on deferred taxes | 0.00% | (8.50%) | 0.00% |
Other, net | (0.30%) | (0.20%) | (0.30%) |
Effective tax rate | 20.70% | 26.80% | 30.10% |
Income Taxes (Income Taxes - Ad
Income Taxes (Income Taxes - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes | |||
Deferred tax assets related to state net operating loss carryforwards | $ 7 | $ 9 | |
State net operating loss carryforwards specific valuation allowances | $ 25 | 27 | |
State net operating loss carryforwards expiration date | Dec. 31, 2037 | ||
Accrued interest liabilities, net of the related tax benefits | $ 3 | 3 | |
Allocation of earnings for bad debt deductions of former thrift subsidiaries included in retained earnings | 157 | 157 | |
Interest expense recognized in connection with income taxes | 1 | 2 | $ 1 |
Proportional amortization for qualifying LIHTC investments | $ 154 | $ 223 | $ 153 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the Beginning and Ending Amounts of the Bancorp's Unrecognized Tax Benefits) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | ||||||
Unrecognized tax benefits at January 1 | $ 34 | [1] | $ 24 | [1] | $ 13 | |
Gross increases for tax positions taken during prior period | 20 | 17 | 9 | |||
Gross decreases for tax positions taken during prior period | (1) | (1) | 0 | |||
Gross increases for tax positions taken during current period | 8 | 3 | 2 | |||
Settlements with taxing authorities | (5) | (7) | 0 | |||
Lapse of applicable statute of limitations | (1) | (2) | 0 | |||
Unrecognized tax benefits at December 31 | [1] | $ 55 | $ 34 | $ 24 | ||
[1] | (a ) With the exception of $5 in 2018 , all a mounts represent unrecognized tax benefits that, if recognized, would affect the annual effective tax rat e. |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Taxes Included in Other Assets in the Consolidated Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Deferred Income Tax Assets And Liabilities | ||
Allowance for loan and lease losses | $ 232 | $ 251 |
Deferred compensation | 79 | 77 |
Other comprehensive income | 42 | 0 |
Reserve for unfunded commitments | 28 | 29 |
Reserves | 28 | 34 |
State net operating loss carryforwards | 7 | 9 |
Other | 112 | 103 |
Total deferred tax assets | 528 | 503 |
Lease financing | 599 | 616 |
Investments in joint ventures and partnership interests | 131 | 85 |
MSRs and related economic hedges | 107 | 111 |
State deferred taxes | 73 | 68 |
Bank premises and equipment | 60 | 42 |
Other comprehensive income | 0 | 21 |
Other | 102 | 137 |
Total deferred tax liabilities | 1,072 | 1,080 |
Total net deferred tax liabilities | $ (544) | $ (577) |
Retirement and Benefit Plans (D
Retirement and Benefit Plans (Defined Benefit Retirement Plans on Balance Sheets) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement and Benefit Plans [Abstract] | ||
Prepaid benefit cost | $ 1 | $ 0 |
Accrued benefit liability | (18) | (24) |
Net underfunded status | $ (17) | $ (24) |
Retirement and Benefit Plans (R
Retirement and Benefit Plans (Retirement and Benefit Plans - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure | |||
The estimated net actuarial loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost | $ 6 | ||
The increase in pension expense by lowering both the expected rate of return on the plan and the discount rate by 0.25% | 1 | ||
Defined Benefit Plan Expected Future Benefit Payments in 2019 | 17 | ||
Defined Benefit Plan Expected Future Benefit Payments in 2020 | 16 | ||
Defined Benefit Plan Expected Future Benefit Payments in 2021 | 16 | ||
Defined Benefit Plan Expected Future Benefit Payments in 2022 | 16 | ||
Defined Benefit Plan Expected Future Benefit Payments in 2023 | 16 | ||
Defined Benefit Plan Expected Future Benefit Payments in 2024 through 2028 | 70 | ||
Estimated future defined benefit plan contributions | 2 | ||
Plan assets | 164 | $ 185 | |
Deferred profit sharing | |||
Defined Benefit Plan Disclosure | |||
Expenses recognized for the Bancorp's defined contribution plan | 0 | 0 | $ 0 |
Qualified defined contribution plan | |||
Defined Benefit Plan Disclosure | |||
Expenses recognized for the Bancorp's defined contribution plan | 83 | 79 | 75 |
Non-qualified defined contribution plan | |||
Defined Benefit Plan Disclosure | |||
Expenses recognized for the Bancorp's defined contribution plan | $ 4 | $ 4 | $ 3 |
Retirement and Benefit Plans _2
Retirement and Benefit Plans (Defined Benefit Retirement Plans with Overfunded and Underfunded Status) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Defined Benefit Plan Change In Fair Value Roll Forward | |||||
Fair value of plan assets at January 1 | $ 185 | ||||
Fair value of plan assets at December 31 | 164 | $ 185 | |||
Defined Benefit Plan, Change in Benefit Obligation | |||||
Interest cost | 7 | 8 | $ 9 | ||
Underfunded defined benefit pension plans | |||||
Defined Benefit Plan Change In Fair Value Roll Forward | |||||
Fair value of plan assets at January 1 | 185 | 172 | |||
Actual return on assets | 0 | 28 | |||
Contributions | 3 | 6 | |||
Settlement | 0 | 11 | |||
Benefits paid | 3 | 10 | |||
Fair value of plan assets at December 31 | 0 | 185 | 172 | ||
Defined Benefit Plan, Change in Benefit Obligation | |||||
Projected benefit obligation at January 1 | 209 | 206 | |||
Interest cost | 1 | 8 | |||
Settlement | 0 | 11 | |||
Actuarial (gain) loss | 1 | (16) | |||
Benefits paid | 3 | 10 | |||
Projected benefit obligation at December 31 | 18 | 209 | 206 | ||
Projected benefit obligation at December 31 | (18) | (24) | |||
Accumulated benefit obligation at December 31 | 18 | [1] | 209 | ||
Overfunded defined benefit pension plans | |||||
Defined Benefit Plan Change In Fair Value Roll Forward | |||||
Fair value of plan assets at January 1 | 0 | 0 | |||
Actual return on assets | (6) | 0 | |||
Settlement | 9 | 0 | |||
Benefits paid | 6 | 0 | |||
Fair value of plan assets at December 31 | 164 | 0 | 0 | ||
Defined Benefit Plan, Change in Benefit Obligation | |||||
Projected benefit obligation at January 1 | 0 | 0 | |||
Interest cost | 6 | 0 | |||
Settlement | 9 | 0 | |||
Actuarial (gain) loss | 16 | 0 | |||
Benefits paid | 6 | 0 | |||
Projected benefit obligation at December 31 | 163 | 0 | $ 0 | ||
Projected benefit obligation at December 31 | 1 | 0 | |||
Accumulated benefit obligation at December 31 | [2] | $ 163 | $ 0 | ||
[1] | Since the Plan’s benefits are frozen , the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at both December 31, 2018 and 2017 . | ||||
[2] | Since the Plan’s benefits are frozen, the rate of compensation increase is no longer an assumption used to calculate the accumulated benefit obligation. Therefore, the accumulated benefit obligation was the same as the projected benefit obligation at December 31, 2018 . |
Retirement and Benefit Plans (N
Retirement and Benefit Plans (Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Pension And Other Postretirment Benefits Recgonized In Accumulated Other Comprehensive Income (Loss) | |||
Interest cost | $ 7 | $ 8 | $ 9 |
Expected return on assets | (11) | (10) | (11) |
Amortization of net actuarial loss | 6 | 7 | 11 |
Settlement | 3 | 4 | 7 |
Net periodic benefit cost | 5 | 9 | 16 |
Net actuarial loss (gain) | (1) | (1) | 2 |
Amortization of net actuarial loss | (6) | (7) | (11) |
Settlement | (3) | (4) | (7) |
Total recognized in other comprehensive income | (10) | (12) | (16) |
Total recognized in net periodic benefit cost and other comprehensive income | $ (5) | $ (3) | $ 0 |
Retirement and Benefit Plans (P
Retirement and Benefit Plans (Plan Assets Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |||
Defined Benefit Plan Disclosure | |||||
Plan assets | $ 164 | $ 185 | |||
Cash equivalents | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 25 | 7 | |||
Mutual and exchange-traded funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 46 | 92 | ||
Debt securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 65 | 30 | ||
Debt securities | U.S. Treasury and federal agencies securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 46 | 12 | ||
Debt securities | Non-agency mortgage-backed securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 1 | 1 | ||
Debt securities | Asset-backed securities and other debt securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1],[2] | 18 | 17 | ||
Collective funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [3] | 28 | 29 | ||
Excluding collective funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 136 | 156 | |||
Fair value level 1 | Cash equivalents | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 25 | 7 | |||
Fair value level 1 | Mutual and exchange-traded funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 46 | [4] | 92 | [5] |
Fair value level 1 | Debt securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 43 | [4] | 9 | [5] |
Fair value level 1 | Debt securities | U.S. Treasury and federal agencies securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 43 | [4] | 9 | [5] |
Fair value level 1 | Debt securities | Non-agency mortgage-backed securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 0 | [4] | 0 | [5] |
Fair value level 1 | Debt securities | Asset-backed securities and other debt securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1],[2] | 0 | [4] | 0 | [5] |
Fair value level 1 | Excluding collective funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 114 | 135 | |||
Fair value level 2 | Cash equivalents | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 0 | 0 | |||
Fair value level 2 | Mutual and exchange-traded funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 0 | [4] | 0 | [5] |
Fair value level 2 | Debt securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 22 | [4] | 21 | [5] |
Fair value level 2 | Debt securities | U.S. Treasury and federal agencies securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 3 | [4] | 3 | [5] |
Fair value level 2 | Debt securities | Non-agency mortgage-backed securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 1 | [4] | 1 | [5] |
Fair value level 2 | Debt securities | Asset-backed securities and other debt securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1],[2] | 18 | [4] | 17 | [5] |
Fair value level 2 | Excluding collective funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 22 | 21 | |||
Fair value level 3 | Cash equivalents | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | 0 | 0 | |||
Fair value level 3 | Mutual and exchange-traded funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 0 | 0 | ||
Fair value level 3 | Debt securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 0 | 0 | ||
Fair value level 3 | Debt securities | U.S. Treasury and federal agencies securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 0 | 0 | ||
Fair value level 3 | Debt securities | Non-agency mortgage-backed securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1] | 0 | 0 | ||
Fair value level 3 | Debt securities | Asset-backed securities and other debt securities | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | [1],[2] | 0 | 0 | ||
Fair value level 3 | Excluding collective funds | |||||
Defined Benefit Plan Disclosure | |||||
Plan assets | $ 0 | $ 0 | |||
[1] | For further information on fair value hierarchy levels, refer to Note 1 . | ||||
[2] | Includes corporate bond s. | ||||
[3] | Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the fair value of Plan assets presented elsewhere within this footnote. | ||||
[4] | During the year ended December 31, 2018 , no assets or liabilities were transferred between Level 1 and Level 2 . | ||||
[5] | During the year ended December 31, 2017 , no assets or liabilities were transferred between Level 1 and Level 2 . |
Retirement and Benefit Plans _3
Retirement and Benefit Plans (Plan Assumptions) (Detail) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
For measuring benefit obligations at year end | ||||
Discount rate | [1] | 4.10% | 3.47% | 3.97% |
Expected return on plan assets | [1] | 6.00% | 6.00% | 7.00% |
For measuring net periodic benefit cost | ||||
Discount rate | [1] | 3.47% | 3.97% | 4.16% |
Expected return on plan assets | [1] | 6.00% | 6.00% | 7.00% |
[1] | (a) Since the Plan’s benefits were frozen , except for grandfathered employees, the rate of compensation increase is no longer applicable beginning in 2014 since minimal grandfathered employees are still accruing benefits. |
Retirement and Benefit Plans _4
Retirement and Benefit Plans (Targeted and Actual Weighted Average Asset Allocations by Plan Asset Category) (Detail) | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity securities | |||
Defined Benefit Plan Disclosure | |||
Asset allocation by asset category | 67.00% | 76.00% | |
Bancorp common stock | 0.00% | 1.00% | |
Total | |||
Defined Benefit Plan Disclosure | |||
Asset allocation by asset category | 100.00% | 100.00% | |
Targeted Range 0 to 55 Percent | Equity securities | |||
Defined Benefit Plan Disclosure | |||
Total equity securities | [1],[2] | 67.00% | 77.00% |
Targeted Range 50 to 100 Percent | Fixed-income securities | |||
Defined Benefit Plan Disclosure | |||
Asset allocation by asset category | [2] | 23.00% | 16.00% |
Targeted Range 0 to 5 Percent | Alternative strategies | |||
Defined Benefit Plan Disclosure | |||
Asset allocation by asset category | [2] | 3.00% | 3.00% |
Targeted Range 0 to 100 Percent | Cash | |||
Defined Benefit Plan Disclosure | |||
Asset allocation by asset category | [2] | 7.00% | 4.00% |
[1] | Includes mutual and exchange- traded funds . | ||
[2] | These reflect the targeted ranges for the year ended December 31, 2018 . |
AOCI (Activity of the Component
AOCI (Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2016 | |
Net activity for accumulated net unrealized gain (loss) on available-for-sale securities | |||||
Unrealized holding gains (losses) on available-for-sale securities arising during the year | $ (371) | $ 21 | $ (130) | ||
Reclassification adjustment for net (gains) losses included in net income | 9 | 4 | (7) | ||
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | |||||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during the year | 169 | (7) | 19 | ||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 2 | (12) | (31) | ||
Net activity for defined benefit plans, net | |||||
Net actuarial gain (loss) arising during the period | (1) | (1) | 1 | ||
Reclassification of amounts to net periodic benefit costs | (7) | (7) | (12) | ||
Total Other Comprehensive Activity | |||||
Pre-tax activity total | (246) | (1) | (209) | ||
Total, Tax | 63 | 15 | 71 | ||
Other comprehensive income (loss) | (183) | $ (183) | 14 | (138) | $ (138) |
Total Accumulated Other Comprehensive Income | |||||
Total Accumulated Other Comprehensive Income - Beginning Balance | 73 | 59 | 197 | ||
Other comprehensive income (loss), Net of Tax | (183) | (183) | 14 | (138) | (138) |
Total Accumulated Other Comprehensive Income - Ending Balance | (112) | (112) | 73 | 59 | 59 |
Accumulated Net Unrealized Investment Gain (Loss) | |||||
Pre-tax activity for accumulated net unrealized gain (loss) on available-for-sale securities | |||||
Unrealized holding gains on available-for-sale securities arising during period | (483) | 14 | (196) | ||
Reclassification adjustment for net losses (gains) included in net income | (11) | (3) | 11 | ||
Net unrealized gains on available-for-sale securities | (472) | 17 | (207) | ||
Tax effect for accumulated net unrealized gain (loss) on available-for-sale securities | |||||
Unrealized holding gains on available-for-sale securities arising during period | 112 | 7 | 66 | ||
Reclassification adjustment for net losses (gains) included in net income | (2) | 1 | 4 | ||
Net unrealized gains on available-for-sale securities | 110 | 8 | 70 | ||
Net activity for accumulated net unrealized gain (loss) on available-for-sale securities | |||||
Unrealized holding gains (losses) on available-for-sale securities arising during the year | (371) | 21 | (130) | ||
Reclassification adjustment for net (gains) losses included in net income | 9 | 4 | (7) | ||
Net unrealized gains on available-for-sale securities | (362) | 25 | (137) | ||
Total Other Comprehensive Activity | |||||
Other comprehensive income (loss) | (362) | 25 | (137) | ||
Total Accumulated Other Comprehensive Income | |||||
Total Accumulated Other Comprehensive Income - Beginning Balance | 126 | 135 | 101 | 238 | |
Other comprehensive income (loss), Net of Tax | (362) | 25 | (137) | ||
Total Accumulated Other Comprehensive Income - Ending Balance | (227) | (227) | 126 | 101 | 101 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | |||||
Pre-tax activity for net unrealized gain (loss) on cash flow hedge derivatives | |||||
Unrealized holding gains on cash flow hedge derivatives arising during period | 214 | (11) | 30 | ||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 2 | (19) | (48) | ||
Net unrealized gains on cash flow hedge derivatives | 216 | (30) | (18) | ||
Tax effect for net unrealized gain (loss) on cash flow hedge derivatives | |||||
Unrealized holding gains on cash flow hedge derivatives arising during period | (45) | 4 | (11) | ||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 0 | 7 | 17 | ||
Net unrealized gains on cash flow hedge derivatives | (45) | 11 | 6 | ||
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | |||||
Unrealized holding gains (losses) on cash flow hedge derivatives arising during the year | 169 | (7) | 19 | ||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 2 | (12) | (31) | ||
Net unrealized gains on cash flow hedge derivatives | 171 | (19) | (12) | ||
Total Other Comprehensive Activity | |||||
Other comprehensive income (loss) | 171 | (19) | (12) | ||
Total Accumulated Other Comprehensive Income | |||||
Total Accumulated Other Comprehensive Income - Beginning Balance | (9) | (11) | 10 | 22 | |
Other comprehensive income (loss), Net of Tax | 171 | (19) | (12) | ||
Total Accumulated Other Comprehensive Income - Ending Balance | 160 | 160 | (9) | 10 | 10 |
Accumulated Defined Benefit Plans Adjustment | |||||
Pre-tax activity for defined benefit plans, net | |||||
Net actuarial gain (loss) arising during the period | 1 | 1 | (2) | ||
Reclassification of amounts to net periodic benefit costs | 9 | 11 | 18 | ||
Defined benefit plans, net | 10 | 12 | 16 | ||
Tax effect for defined benefit plans, net | |||||
Net actuarial loss | 0 | 0 | 1 | ||
Reclassification of amounts to net periodic benefit costs | (2) | (4) | (6) | ||
Defined benefit plans, net | (2) | (4) | (5) | ||
Net activity for defined benefit plans, net | |||||
Net actuarial gain (loss) arising during the period | 1 | 1 | (1) | ||
Reclassification of amounts to net periodic benefit costs | 7 | 7 | 12 | ||
Defined benefit plans, net | 8 | 8 | 11 | ||
Total Other Comprehensive Activity | |||||
Other comprehensive income (loss) | 8 | (8) | 11 | ||
Total Accumulated Other Comprehensive Income | |||||
Total Accumulated Other Comprehensive Income - Beginning Balance | (44) | (53) | (52) | (63) | |
Other comprehensive income (loss), Net of Tax | 8 | (8) | 11 | ||
Total Accumulated Other Comprehensive Income - Ending Balance | $ (45) | $ (45) | $ (44) | $ (52) | $ (52) |
AOCI (Reclassification Out of A
AOCI (Reclassification Out of Accumulated Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net periodic pension cost | $ 5 | $ 9 | $ 16 | |
Income Before Income Taxes | 2,765 | 2,979 | 2,208 | |
Applicable income tax expense | 572 | 799 | 665 | |
Net income | 2,193 | 2,180 | 1,547 | |
Total reclassifications for the period | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net income | (18) | 1 | 26 | |
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 | 11 | 3 | (11) | |
Income Before Income Taxes | [1] | (11) | (3) | 11 |
Applicable income tax expense | [1] | 2 | (1) | (4) |
Net income | [1] | (9) | (4) | 7 |
Net unrealized gains on available-for-sale securities | Net losses included in net income | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment for net losses (gains) included in net income | [1] | 11 | (3) | 11 |
Net unrealized gains on cash flow hedge derivatives | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (2) | 19 | 48 | |
Income Before Income Taxes | [1] | (2) | 19 | 48 |
Applicable income tax expense | [1] | 0 | (7) | (17) |
Net income | [1] | (2) | 12 | 31 |
Net unrealized gains on cash flow hedge derivatives | Interest rate contracts related to C&I loans | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | [1] | (2) | 19 | 48 |
Amortization of defined periodic benefit costs | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Income Before Income Taxes | [1] | (9) | (11) | (18) |
Applicable income tax expense | [1] | 2 | 4 | 6 |
Net income | [1] | (7) | (7) | (12) |
Amortization of defined periodic benefit costs | Net Actuarial Loss | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net periodic pension cost | [1],[2] | (6) | (7) | (11) |
Amortization of defined periodic benefit costs | Pension Settlement | ||||
Reclassifications Out Of Accumulated Other Comprehensive Income | ||||
Net periodic pension cost | [1],[2] | $ (3) | $ (4) | $ (7) |
[1] | Amounts in parentheses indicate reductions to net income. | |||
[2] | This AOCI component is included in the computation of net periodi c benefit cost. Refer to Note 20 f or information on the computation of net periodic benefit cost. |
Common, Preferred and Treasur_3
Common, Preferred and Treasury Stock (Share Acitivity within Common, Preferred and Treasury Stock) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2016 | |
Values | |||||
Beginning Balance | $ 16,220 | $ 16,224 | $ 16,081 | $ 15,870 | $ 15,736 |
Shares acquired for treasury | (1,453) | (1,605) | (661) | ||
Impact of stock transactions under stock compensation plans, net | 65 | 67 | 80 | ||
Other | (22) | (6) | 1 | ||
Ending Balance | 16,250 | 16,250 | 16,220 | 16,081 | 16,081 |
Common stock | |||||
Values | |||||
Beginning Balance | 2,051 | 2,051 | 2,051 | 2,051 | 2,051 |
Ending Balance | $ 2,051 | $ 2,051 | $ 2,051 | $ 2,051 | $ 2,051 |
Shares | |||||
Beginning balance | 923,892,581 | 923,892,581 | 923,892,581 | ||
Ending balance | 923,892,581 | 923,892,581 | 923,892,581 | 923,892,581 | 923,892,581 |
Preferred Stock | |||||
Values | |||||
Beginning Balance | $ 1,331 | $ 1,331 | $ 1,331 | $ 1,331 | $ 1,331 |
Ending Balance | $ 1,331 | $ 1,331 | $ 1,331 | $ 1,331 | $ 1,331 |
Shares | |||||
Beginning balance | 54,000 | 54,000 | 54,000 | ||
Ending balance | 54,000 | 54,000 | 54,000 | 54,000 | 54,000 |
Treasury Stock | |||||
Values | |||||
Beginning Balance | $ (5,002) | $ (5,002) | $ (3,433) | $ (2,764) | $ (2,764) |
Shares acquired for treasury | (1,494) | (1,588) | (668) | ||
Impact of stock transactions under stock compensation plans, net | 23 | 16 | (4) | ||
Other | 2 | 3 | 3 | ||
Ending Balance | $ (6,471) | $ (6,471) | $ (5,002) | $ (3,433) | $ (3,433) |
Shares | |||||
Beginning balance | 230,087,688 | 173,413,282 | 138,812,267 | ||
Shares acquired for treasury | 49,967,134 | 58,493,506 | 34,633,221 | ||
Impact of stock transactions under stock compensation plans, net | (2,698,451) | (1,693,503) | 42,357 | ||
Other | (94,647) | (125,597) | (74,563) | ||
Ending balance | 277,261,724 | 277,261,724 | 230,087,688 | 173,413,282 | 173,413,282 |
Common, Preferred and Treasur_4
Common, Preferred and Treasury Stock (Common, Preferred, and Treasury Stock - Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2013 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | |
Stock Repurchase Authorization Amount | $ 1,810 | $ 1,651 | $ 1,161 | |||
Preferred stock, Series J | ||||||
Depositary shares | 300,000 | |||||
Preferred stock, issued | 12,000 | 12,000 | 12,000 | |||
Issuance of preferred stock | $ 297 | |||||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | $ 25,000 | |||
Preferred Stock, Dividend Payment Terms | The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 4.90% through but excluding September 30, 2019, at which time it converts to a quarterly floating-rate dividend of three-month LIBOR plus 3.129%. | |||||
Preferred Stock, Redemption Terms | Subject to any required regulatory approval, the Bancorp may redeem the Series J preferred shares at its option, in whole or in part, at any time on or after September 30, 2019, or any time prior following a regulatory capital event | |||||
Preferred stock, shares authorized | 12,000 | 12,000 | ||||
Preferred stock, Series I | ||||||
Depositary shares | 18,000,000 | |||||
Preferred stock, issued | 18,000 | 18,000 | 18,000 | |||
Issuance of preferred stock | $ 441 | |||||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | $ 25,000 | |||
Preferred Stock, Dividend Payment Terms | The preferred stock accrues dividends, on a non-cumulative quarterly basis, at an annual rate of 6.625% through but excluding December 31, 2023, at which time it converts to a quarterly floating-rate dividend of three-month LIBOR plus 3.71% | |||||
Preferred Stock, Redemption Terms | Subject to any required regulatory approval, the Bancorp may redeem the Series I preferred shares at its option in whole or in part, at any time on or after December 31, 2023 and may redeem in whole but not in part, following a regulatory capital event at any time prior to December 31, 2023 | |||||
Preferred stock, shares authorized | 18,000 | 18,000 | ||||
Preferred stock, Series H | ||||||
Depositary shares | 600,000 | |||||
Preferred stock, issued | 24,000 | 24,000 | 24,000 | |||
Issuance of preferred stock | $ 593 | |||||
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | $ 25,000 | |||
Preferred Stock, Dividend Payment Terms | The preferred stock accrues dividends, on a non-cumulative semi-annual basis, at an annual rate of 5.10% through but excluding June 30, 2023, at which time it converts to a quarterly floating-rate dividend of three-month LIBOR plus 3.033% | |||||
Preferred Stock, Redemption Terms | Subject to any required regulatory approval, the Bancorp may redeem the Series H preferred shares at its option in whole or in part, at any time on or after June 30, 2023 and may redeem in whole but not in part, following a regulatory capital event at any time prior to June 30, 2023 | |||||
Preferred stock, shares authorized | 24,000 | 24,000 | ||||
March 2016 Repurchase Program | ||||||
Stock Repurchase Authorization Amount | $ 660 | |||||
Repurchase Shares Authorized | 100 |
Common, Preferred and Treasur_5
Common, Preferred and Treasury Stock (Accelerated Share Repurchase Transactions) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 1,453 | $ 1,605 | $ 661 | |
December 20, 2016 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Dec. 20, 2016 | |||
Settlement date | Feb. 6, 2017 | |||
December 20, 2016 ASR | March 2016 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 155 | |||
Shares repurchased on repurchase date | 4,843,750 | |||
Shares received from forward contract settlement | 1,044,362 | |||
Total shares repurchased | 5,888,112 | |||
May 1, 2017 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | May 1, 2017 | |||
Settlement date | Jul. 31, 2017 | |||
May 1, 2017 ASR | March 2016 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 342 | |||
Shares repurchased on repurchase date | 11,641,971 | |||
Shares received from forward contract settlement | 2,248,250 | |||
Total shares repurchased | 13,890,221 | |||
August 17, 2017 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Aug. 17, 2017 | |||
Settlement date | Dec. 18, 2017 | |||
August 17, 2017 ASR | March 2016 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 990 | |||
Shares repurchased on repurchase date | 31,540,480 | |||
Shares received from forward contract settlement | 4,291,170 | |||
Total shares repurchased | 35,831,650 | |||
December 19. 2017 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Dec. 19, 2017 | |||
Settlement date | Mar. 19, 2018 | |||
December 19. 2017 ASR | March 2016 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 273 | |||
Shares repurchased on repurchase date | 7,727,273 | |||
Shares received from forward contract settlement | 824,367 | |||
Total shares repurchased | 8,551,640 | |||
February 12, 2018 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | Feb. 12, 2018 | |||
Settlement date | Mar. 26, 2018 | |||
February 12, 2018 ASR | March 2016 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 318 | |||
Shares repurchased on repurchase date | 8,691,318 | |||
Shares received from forward contract settlement | 1,015,731 | |||
Total shares repurchased | 9,707,049 | |||
May 25, 2018 ASR | ||||
Accelerated Share Repurchases | ||||
Redemption date | May 25, 2018 | |||
Settlement date | Jun. 15, 2018 | |||
May 25, 2018 ASR | March 2016 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 235 | |||
Shares repurchased on repurchase date | 6,402,244 | |||
Shares received from forward contract settlement | 1,172,122 | |||
Total shares repurchased | 7,574,366 | |||
July 20, 2018 through August 2, 2018 Open Market Repurchase | ||||
Accelerated Share Repurchases | ||||
Settlement date | Aug. 6, 2018 | |||
July 20, 2018 through August 2, 2018 Open Market Repurchase | March 2018 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 500 | |||
Shares repurchased on repurchase date | 16,945,020 | |||
Settlement date | Jul. 24, 2018 | |||
October 24, 2018 through November 9, 2018 Open Market Repurchase | ||||
Accelerated Share Repurchases | ||||
Settlement date | Nov. 14, 2018 | |||
October 24, 2018 through November 9, 2018 Open Market Repurchase | March 2018 Repurchase Program | ||||
Accelerated Share Repurchases | ||||
Shares acquired for treasury | $ 400 | |||
Shares repurchased on repurchase date | 14,916,332 | |||
Settlement date | Oct. 26, 2018 |
Stock-Based Compensation (Numbe
Stock-Based Compensation (Number of Shares to be issued upon Exercise of Outstanding Stock-Based Awards and Remaining Shares Available for Future Issuance under all Equity Compensation Plans) (Detail) shares in Thousands | Dec. 31, 2018shares | |
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Number of Shares to be Issued Upon Exercise | 8,888 | |
Shares Available for Future Issuance | 18,471 | |
Equity compensation plans | ||
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Shares Available for Future Issuance | 13,290 | [1] |
Restricted Stock Awards | ||
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Number of Shares to be Issued Upon Exercise | 868 | |
Restricted Stock Units | ||
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Number of Shares to be Issued Upon Exercise | 8,020 | |
Employee stock purchase plan | ||
Employee Stock Ownership Plan (ESOP) Disclosures | ||
Shares Available for Future Issuance | 5,181 | [2] |
[1] | Under the 2017 Incentive Compensation Plan, 17.5 million shares were authorized for issuance as SARs, RSAs, RSUs, stock options, performance share or unit awards, dividend or dividend equivalent rights and stock awards . | |
[2] | Represents remaining shares of Fifth Third common stock under the Bancorp’s 1993 Stock Purchase Plan, as amended and restated, including an additional 1.5 million shares approved by shareholders on March 28, 2007 and an additiona l 12 million shares approved by shareholders on April 21, 2009 . |
Stock-Based Compensation (Num_2
Stock-Based Compensation (Number of Shares to be issued upon Exercise of Outstanding Stock-Based Awards and Remaining Shares Available for Future Issuance under all Equity Compensation Plans) (Parenthetical) (Detail) - shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2009 | Dec. 31, 2007 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Stock Ownership Plan (ESOP) Disclosures | ||||
Number of shares to be issued based on predefined performance targets | 8,888 | |||
Additional shares approved by shareholders included under Bancorp's 1993 Stock Purchase Plan | 12,000 | 1,500 | ||
Performance Share Awards | ||||
Employee Stock Ownership Plan (ESOP) Disclosures | ||||
Number of shares to be issued based on predefined performance targets | 2,000 | |||
2017 Incentive Compensation Plan | ||||
Employee Stock Ownership Plan (ESOP) Disclosures | ||||
Stock authorized for issuance | 6,000 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Share-based Payment, Award, Stock Appreciation Rights, Valuation Assumptions) (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life (in years) | 7 years | 6 years | 6 years |
Expected volatility | 35.00% | 37.00% | 37.00% |
Expected dividend yield | 1.90% | 2.10% | 3.10% |
Risk-free interest rate | 2.60% | 2.10% | 1.50% |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity) (Detail) - Stock Appreciation Rights - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares/Units | |||
Outstanding at January 1 | 31,929 | 40,041 | 44,129 |
Granted | 272 | 3,672 | 6,379 |
Exercised | (5,058) | (6,953) | (6,291) |
Forfeited or expired | (947) | (4,831) | (4,176) |
Outstanding at December 31 | 26,196 | 31,929 | 40,041 |
Exercisable at December 31 | 20,132 | 21,403 | 26,898 |
Weighted-Average Grant Price | |||
Outstanding at January 1 | $ 17.22 | $ 18.3 | $ 19.14 |
Granted | 33.15 | 26.52 | 17.68 |
Exercised | 16.96 | 16 | 14.47 |
Forfeited or expired | 20.93 | 35.08 | 32.02 |
Outstanding at December 31 | 17.3 | 17.22 | 18.3 |
Exercisable at December 31 | $ 15.9 | $ 15.3 | $ 18.28 |
Stock-Based Compensation (Outst
Stock-Based Compensation (Outstanding and Exercisable SARs by Grant Price) (Detail) - Stock Appreciation Rights - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 26,196 | 31,929 | 40,041 | 44,129 |
Outstanding SARs Weighted-Average Grant Price Per Share | $ 17.3 | $ 17.22 | $ 18.3 | $ 19.14 |
Outstanding Weighted-Average Remaining Contractual Life (in years) | 4 years 12 months 6 days | |||
Number of SARs Exercisable at Year End | 20,132 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 15.9 | $ 15.3 | $ 18.28 | |
Exercisable Weighted-Average Remaining Contractual Life (in years) | 4 years 1 month 6 days | |||
$10.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 1,426 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 3.96 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 3 months 18 days | |||
Number of SARs Exercisable at Year End | 1,441 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 3.96 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 3 months 18 days | |||
$10.01-$20.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 19,145 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 16.1 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 4 years 8 months 12 days | |||
Number of SARs Exercisable at Year End | 15,631 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 15.67 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 4 years 1 month 6 days | |||
$20.01-$30.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of SARs Outstanding at Year End | 5,353 | |||
Outstanding SARs Weighted-Average Grant Price Per Share | $ 24.33 | |||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 6 years 9 months 18 days | |||
Number of SARs Exercisable at Year End | 3,060 | |||
Exerciseable SARs Weighted-Average Grant Price Per Share | $ 22.69 | |||
Exercisable Weighted-Average Remaining Contractual Life (in years) | 5 years 11 months 24 days | |||
$30.01-$40.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Outstanding Weighted-Average Remaining Contractual Life (in years) | 9 years 1 month 6 days |
Stock-Based Compensation (Sch_3
Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock Award Activity) (Detail) - Restricted Stock Awards - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares/Units | |||
Outstanding at January 1 | 2,321 | 4,638 | 8,281 |
Granted | 0 | 7 | 3 |
Released | (1,347) | (2,063) | (3,090) |
Forfeited | (106) | (261) | (556) |
Outstanding at December 31 | 868 | 2,321 | 4,638 |
Weighted-Average Grant Price | |||
Outstanding at January 1 | $ 19.72 | $ 19.44 | $ 18.88 |
Granted | 0 | 21.14 | 20.65 |
Released | 20.09 | 19.1 | 17.92 |
Forfeited | 19.4 | 19.75 | 19.2 |
Outstanding at December 31 | $ 19.18 | $ 19.72 | $ 19.44 |
Stock-Based Compensation (Unves
Stock-Based Compensation (Unvested RSAs by Grant-Date Fair Value) (Detail) - Restricted Stock Awards - shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 868 | 2,321 | 4,638 | 8,281 |
Weighted-Average Remaining Contractual Life (in years) | 6 months | |||
$15.01-$20.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 775 | |||
Weighted-Average Remaining Contractual Life (in years) | 6 months | |||
$20.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 93 | |||
Weighted-Average Remaining Contractual Life (in years) | 6 months |
Stock-Based Compensation (Sch_4
Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock Units Activity) (Detail) - Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares/Units | |||
Outstanding at January 1 | 6,986,000 | 5,086,000 | 371,000 |
Granted | 3,674,000 | 3,652,000 | 5,029,000 |
Released | (1,977,000) | (1,194,000) | (79,000) |
Forfeited | (663,000) | (558,000) | (235,000) |
Outstanding at December 31 | 8,020,000 | 6,986,000 | 5,086,000 |
Weighted-Average Grant Price | |||
Outstanding at January 1 | $ 22.25 | $ 17.84 | $ 19.56 |
Granted | 32.84 | 26.71 | 17.75 |
Released | 21.15 | 17.64 | 19.76 |
Forfeited | 26.45 | 21.02 | 17.89 |
Outstanding at December 31 | $ 27.04 | $ 22.25 | $ 17.84 |
Stock-Based Compensation (Unv_2
Stock-Based Compensation (Unvested RSUs by Grant-Date Fair Value) (Detail) - Restricted Stock Units - shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 8,020,000 | 6,986,000 | 5,086,000 | 371,000 |
Weighted-Average Remaining Contractual Life (in years) | 1 year 2 months 12 days | |||
$10.01-$15.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 201,000 | |||
Weighted-Average Remaining Contractual Life (in years) | 1 month 6 days | |||
$15.01-$20.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 1,799,000 | |||
Weighted-Average Remaining Contractual Life (in years) | 8 months 12 days | |||
$20.01-$25.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 191,000 | |||
Weighted-Average Remaining Contractual Life (in years) | 6 months | |||
$25.01-$30.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 2,489,000 | |||
Weighted-Average Remaining Contractual Life (in years) | 1 year 2 months 12 days | |||
$30.01-$35.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of Shares/Units Outstanding at Year End | 3,340,000 | |||
Weighted-Average Remaining Contractual Life (in years) | 1 year 7 months 6 days |
Stock-Based Compensation (Sch_5
Stock-Based Compensation (Schedule of Share-based Compensation, Stock Options, Activity) (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Options | |||
Outstanding at January 1 | 2 | 25 | 119 |
Exercised | (1) | (18) | (94) |
Forfeited or expired | (1) | (5) | 0 |
Outstanding at December 31 | 0 | 2 | 25 |
Exercisable at December 31 | 0 | 2 | 25 |
Weighted-Average Exercise Price | |||
Outstanding at January 1 | $ 16.5 | $ 19.17 | $ 14.97 |
Exercised | 8.59 | 14.05 | 13.86 |
Forfeited or expired | 24.41 | 40.98 | 0 |
Outstanding at December 31 | 0 | 16.5 | 19.17 |
Exercisable at December 31 | $ 0 | $ 16.5 | $ 19.17 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-Based Compensation - Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Stock Ownership Plan (ESOP) Disclosures | |||
The Bancorp's total overhang (potential dilution from share-based compensation) | 8.00% | ||
SARs, RSAs, RSUs, stock options and PSAs outstanding as a percentage of issued shares | 6.00% | ||
Annual return on tangible common equity performance hurdle | 2.00% | ||
Stock-based compensation expense | $ 127 | $ 118 | $ 111 |
Income tax benefit related to stock-based compensation expense | $ 27 | $ 41 | $ 39 |
2014 Incentive Compensation Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Stock authorized for issuance | 11,500,000 | ||
Stock Appreciation Rights Granted | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Vesting period of share based compensation | ratably over a three or four year period of continued employment | ||
Stock-based compensation expense | $ 17 | ||
Weighted-average grant-date fair value per share | $ 11.33 | $ 8.55 | $ 5.16 |
Total grant-date fair value | $ 26 | $ 29 | $ 32 |
Weighted-average period over which expense is expected to be recognized | 1 year 8 months 18 days | ||
Shares granted | 272,000 | 3,672,000 | 6,379,000 |
Restricted Stock Awards | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Vesting period of share based compensation | after three or four years or ratably over three or four years of continued employment. | ||
Stock-based compensation expense | $ 4 | ||
Total grant-date fair value | $ 27 | $ 39 | $ 55 |
Weighted-average period over which expense is expected to be recognized | 6 months 18 days | ||
Shares granted | 0 | 7,000 | 3,000 |
Restricted Stock Units | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Vesting period of share based compensation | after three or four years or ratably over three or four years of continued employment. | ||
Stock-based compensation expense | $ 115 | ||
Total grant-date fair value | $ 42 | $ 21 | $ 2 |
Weighted-average period over which expense is expected to be recognized | 2 years 5 months 18 days | ||
Shares granted | 3,674,000 | 3,652,000 | 5,029,000 |
Stock options | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Cash received from stock options exercised | $ 1 | ||
Stock options vested | 0 | 0 | 0 |
Performance Share Awards | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Vesting period of share based compensation | three year cliff vesting terms | ||
Weighted-average grant-date fair value per share | $ 33.15 | $ 26.52 | $ 14.87 |
Shares granted | 279,568 | 407,069 | 583,608 |
Employee stock purchase plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Stock-based compensation expense | $ 2 | $ 1 | $ 1 |
Match on qualifying employees purchase of shares of the Bancorp's common stock | 15.00% | ||
Stock purchased by plan participants | 471,818 | 475,466 | 684,885 |
2017 Incentive Compensation Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures | |||
Stock authorized for issuance | 6,000,000 |
Other Noninterest Income and _3
Other Noninterest Income and Other Noninterest Expense (Other Nonint Income and Expense) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Other Noninterest Income | |||||||||
Gain related to Vantiv acquisition of Worldpay | $ 414 | $ 0 | $ 0 | ||||||
Gain on sale of Worldpay, Inc. shares | $ (205) | $ (414) | (205) | (1,037) | 0 | ||||
Operating lease income | 84 | 96 | 102 | ||||||
Private equity investment income | 63 | 36 | 11 | ||||||
BOLI income | 56 | 52 | 53 | ||||||
Cardholder fees | 56 | 54 | 46 | ||||||
Consumer loan and lease fees | 23 | 23 | 23 | ||||||
Banking center income | 21 | 20 | 20 | ||||||
Income from the tax receivable agreement associated with Worldpay, Inc. | 20 | 44 | 313 | ||||||
Insurance income | 20 | 8 | 11 | ||||||
Net gain (losses) on loan sales | 2 | (2) | 10 | ||||||
Equity method income from interest in Worldpay Holding, LLC | 1 | 47 | 66 | ||||||
Loss on swap associated with the sale of Visa, Inc. class B shares | (59) | (80) | (56) | ||||||
Net losses on disposition and impairment of bank premises and equipment | (43) | 0 | [1] | (13) | [1] | ||||
Valuation adjustments on the warrant associated with Worldpay Holding, LLC | 0 | 0 | 64 | ||||||
Gain on sale of certain retail branch operations | 0 | 0 | 19 | ||||||
Gain on sale and exercise of the warrant associated with Worldpay Holding, LLC | 0 | 0 | 9 | ||||||
Other, net | 24 | 22 | 10 | ||||||
Total other noninterest income | 887 | [2] | 1,357 | [3] | 688 | [4] | |||
Other Noninterest Expense | |||||||||
Marketing | 147 | 114 | 104 | ||||||
FDIC insurance and other taxes | 119 | 127 | 126 | ||||||
Loan and lease | 112 | 102 | 110 | ||||||
Operating Lease | 76 | 87 | 86 | ||||||
Professional services fees | 67 | 83 | 61 | ||||||
Losses and adjustments | 61 | 59 | 73 | ||||||
Data processing | 57 | 58 | 51 | ||||||
Travel | 52 | 46 | 45 | ||||||
Postal and courier | 35 | 42 | 46 | ||||||
Recruitment and education | 32 | 35 | 37 | ||||||
Donations | 21 | 28 | 23 | ||||||
Supplies | 13 | 14 | 14 | ||||||
Insurance | 13 | 12 | 15 | ||||||
Gain / loss on partnership investments | (4) | 14 | 25 | ||||||
Provision for (benefit from) for the reserve for unfunded commitments | (30) | 0 | 23 | ||||||
Other, net | 219 | 186 | 187 | ||||||
Total other noninterest expense | [1] | $ 990 | $ 1,007 | $ 1,026 | |||||
[1] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. | ||||||||
[2] | Includes impairment charges of $ 45 for branches and land. For more information refer to Note 7 and Note 26 . | ||||||||
[3] | Includes impairment charges of $ 7 for branches and land. For more information refer to Note 7 and Note 26 . | ||||||||
[4] | Includes impairment charges of $ 32 for branches and land. For more information refer to Note 7 . |
EPS (Calculation of Earnings Pe
EPS (Calculation of Earnings Per Share and the Reconciliation of Earnings Per Share to Earnings Per Diluted Share) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Earnings per share: | ||||
Net income (loss) available to common shareholders | $ 2,118 | $ 2,105 | $ 1,472 | |
Less: Income allocated to participating securities | 23 | 23 | 15 | |
Net income allocated to common shareholders | 2,095 | 2,082 | 1,457 | |
Earnings per diluted share: | ||||
Net income available to common shareholders | 2,118 | 2,105 | 1,472 | |
Stock-based awards | 0 | 0 | 0 | |
Net income available to common shareholders plus assumed conversions | 2,118 | 2,105 | 1,472 | |
Less: Income allocated to participating securities | 23 | 23 | 15 | |
Net income allocated to common shareholders plus assumed conversions | $ 2,095 | $ 2,082 | $ 1,457 | |
Earnings per share: | ||||
Net income allocated to common shareholders | 673,346,168 | 728,289,200 | 757,432,291 | |
Effect of dilutive securities: | ||||
Stock-based awards | 12,000,000 | 13,000,000 | 7,000,000 | |
Net income allocated to common shareholders | 685,488,498 | 740,691,433 | 764,495,353 | |
Earnings per share: | ||||
Earnings per share - basic | [1] | $ 3.11 | $ 2.86 | $ 1.92 |
Earnings per diluted share: | ||||
Earnings per share - diluted | [1] | $ 3.06 | $ 2.81 | $ 1.91 |
[1] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. |
EPS (Earnings Per Share - Addit
EPS (Earnings Per Share - Additional Information) (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Appreciation Rights | |||
Earnings Per Share Disclosure | |||
Anti-dilutive securities | 3 | 4 | 19 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets: | |||
Available-for-sale debt securities, fair value | [1] | $ 32,830 | $ 31,751 |
Trading debt securities | 287 | 492 | |
Equity securities | 452 | 439 | |
Loans measured at FV | 179 | 137 | |
Loans held for sale measured at FV | 537 | 399 | |
Derivative assets | 1,114 | 823 | |
Total assets | 249 | 1,548 | |
Commercial | |||
Assets: | |||
Loans held for sale measured at FV | 7 | 0 | |
Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 32,278 | 31,139 | |
Trading debt securities | 287 | 492 | |
Equity securities | 452 | 439 | |
Residential mortgage loans held for sale | 537 | 399 | |
Mortgage Servicing Rights | 938 | 858 | |
Derivative assets | 1,114 | 823 | |
Total assets | 35,792 | 34,287 | |
Liabilities: | |||
Derivative liabilities | 874 | 602 | |
Short positions | 138 | 31 | |
Total liabilities | 1,012 | 633 | |
Fair value, recurring | Commercial | |||
Assets: | |||
Loans held for sale measured at FV | 7 | ||
Fair value, recurring | Residential Mortgage Loans | |||
Assets: | |||
Loans measured at FV | 179 | 137 | |
Interest Rate Contract | Fair value, recurring | |||
Assets: | |||
Derivative assets | 655 | 514 | |
Liabilities: | |||
Derivative liabilities | 329 | 178 | |
Foreign Exchange Contract | Fair value, recurring | |||
Assets: | |||
Derivative assets | 152 | 124 | |
Liabilities: | |||
Derivative liabilities | 142 | 120 | |
Equity Contract | Fair value, recurring | |||
Assets: | |||
Derivative assets | 20 | ||
Liabilities: | |||
Derivative liabilities | 125 | 137 | |
Commodity Contract | Fair value, recurring | |||
Assets: | |||
Derivative assets | 307 | 165 | |
Liabilities: | |||
Derivative liabilities | 278 | 167 | |
U.S. Treasury and federal agencies | |||
Assets: | |||
Available-for-sale debt securities, fair value | 97 | 98 | |
U.S. Treasury and federal agencies | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 97 | 98 | |
Trading debt securities | 16 | 12 | |
Obligations of states and political subdivisions | |||
Assets: | |||
Available-for-sale debt securities, fair value | 2 | 44 | |
Obligations of states and political subdivisions | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 2 | 44 | |
Trading debt securities | 35 | 22 | |
Agency mortgage-backed securities | Residential mortgage-backed securities | |||
Assets: | |||
Available-for-sale debt securities, fair value | [2] | 16,247 | 15,319 |
Agency mortgage-backed securities | Residential mortgage-backed securities | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 16,247 | 15,319 | |
Trading debt securities | 68 | 395 | |
Agency mortgage-backed securities | Commercial mortgage-backed securities | |||
Assets: | |||
Available-for-sale debt securities, fair value | 10,650 | 10,167 | |
Agency mortgage-backed securities | Commercial mortgage-backed securities | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 10,650 | 10,167 | |
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | |||
Assets: | |||
Available-for-sale debt securities, fair value | 3,267 | 3,293 | |
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 3,267 | 3,293 | |
Asset-backed securities and other debt securities | |||
Assets: | |||
Available-for-sale debt securities, fair value | 2,015 | 2,218 | |
Asset-backed securities and other debt securities | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 2,015 | 2,218 | |
Trading debt securities | 168 | 63 | |
Fair Value, Inputs, Level 1 | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 97 | 98 | |
Trading debt securities | 0 | 1 | |
Equity securities | 452 | 438 | |
Residential mortgage loans held for sale | 0 | 0 | |
Mortgage Servicing Rights | 0 | 0 | |
Derivative assets | 93 | 40 | |
Total assets | 642 | 577 | |
Liabilities: | |||
Derivative liabilities | 27 | 39 | |
Short positions | 110 | 25 | |
Total liabilities | 137 | 64 | |
Fair Value, Inputs, Level 1 | Fair value, recurring | Commercial | |||
Assets: | |||
Loans held for sale measured at FV | 0 | ||
Fair Value, Inputs, Level 1 | Fair value, recurring | Residential Mortgage Loans | |||
Assets: | |||
Loans measured at FV | 0 | 0 | |
Fair Value, Inputs, Level 1 | Interest Rate Contract | Fair value, recurring | |||
Assets: | |||
Derivative assets | 0 | 1 | |
Liabilities: | |||
Derivative liabilities | 8 | 1 | |
Fair Value, Inputs, Level 1 | Foreign Exchange Contract | Fair value, recurring | |||
Assets: | |||
Derivative assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Inputs, Level 1 | Equity Contract | Fair value, recurring | |||
Assets: | |||
Derivative assets | 0 | ||
Liabilities: | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Inputs, Level 1 | Commodity Contract | Fair value, recurring | |||
Assets: | |||
Derivative assets | 93 | 39 | |
Liabilities: | |||
Derivative liabilities | 19 | 38 | |
Fair Value, Inputs, Level 1 | U.S. Treasury and federal agencies | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 97 | 98 | |
Trading debt securities | 0 | 1 | |
Fair Value, Inputs, Level 1 | Obligations of states and political subdivisions | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 0 | 0 | |
Trading debt securities | 0 | 0 | |
Fair Value, Inputs, Level 1 | Agency mortgage-backed securities | Residential mortgage-backed securities | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 0 | 0 | |
Trading debt securities | 0 | 0 | |
Fair Value, Inputs, Level 1 | Agency mortgage-backed securities | Commercial mortgage-backed securities | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 0 | 0 | |
Fair Value, Inputs, Level 1 | Non-agency mortgage-backed securities | Commercial mortgage-backed securities | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 0 | 0 | |
Fair Value, Inputs, Level 1 | Asset-backed securities and other debt securities | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 0 | 0 | |
Trading debt securities | 0 | 0 | |
Fair Value, Inputs, Level 2 | |||
Assets: | |||
Total assets | 67 | ||
Fair Value, Inputs, Level 2 | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 32,181 | 31,041 | |
Trading debt securities | 287 | 491 | |
Equity securities | 0 | 1 | |
Residential mortgage loans held for sale | 537 | 399 | |
Mortgage Servicing Rights | 0 | 0 | |
Derivative assets | 1,014 | 775 | |
Total assets | 34,026 | 32,707 | |
Liabilities: | |||
Derivative liabilities | 714 | 421 | |
Short positions | 28 | 6 | |
Total liabilities | 742 | 427 | |
Fair Value, Inputs, Level 2 | Fair value, recurring | Commercial | |||
Assets: | |||
Loans held for sale measured at FV | 7 | ||
Fair Value, Inputs, Level 2 | Fair value, recurring | Residential Mortgage Loans | |||
Assets: | |||
Loans measured at FV | 0 | 0 | |
Fair Value, Inputs, Level 2 | Interest Rate Contract | Fair value, recurring | |||
Assets: | |||
Derivative assets | 648 | 505 | |
Liabilities: | |||
Derivative liabilities | 313 | 172 | |
Fair Value, Inputs, Level 2 | Foreign Exchange Contract | Fair value, recurring | |||
Assets: | |||
Derivative assets | 152 | 124 | |
Liabilities: | |||
Derivative liabilities | 142 | 120 | |
Fair Value, Inputs, Level 2 | Equity Contract | Fair value, recurring | |||
Assets: | |||
Derivative assets | 20 | ||
Liabilities: | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Inputs, Level 2 | Commodity Contract | Fair value, recurring | |||
Assets: | |||
Derivative assets | 214 | 126 | |
Liabilities: | |||
Derivative liabilities | 259 | 129 | |
Fair Value, Inputs, Level 2 | U.S. Treasury and federal agencies | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 0 | 0 | |
Trading debt securities | 16 | 11 | |
Fair Value, Inputs, Level 2 | Obligations of states and political subdivisions | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 2 | 44 | |
Trading debt securities | 35 | 22 | |
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Residential mortgage-backed securities | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 16,247 | 15,319 | |
Trading debt securities | 68 | 395 | |
Fair Value, Inputs, Level 2 | Agency mortgage-backed securities | Commercial mortgage-backed securities | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 10,650 | 10,167 | |
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 | 3,267 | 3,293 | |
Fair Value, Inputs, Level 2 | Asset-backed securities and other debt securities | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 2,015 | 2,218 | |
Trading debt securities | 168 | 63 | |
Fair Value, Inputs, Level 3 | |||
Assets: | |||
Total assets | 182 | 1,548 | |
Fair Value, Inputs, Level 3 | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 0 | 0 | |
Trading debt securities | 0 | 0 | |
Equity securities | 0 | 0 | |
Residential mortgage loans held for sale | 0 | 0 | |
Mortgage Servicing Rights | 938 | 858 | |
Derivative assets | 7 | 8 | |
Total assets | 1,124 | 1,003 | |
Liabilities: | |||
Derivative liabilities | 133 | 142 | |
Short positions | 0 | 0 | |
Total liabilities | 133 | 142 | |
Fair Value, Inputs, Level 3 | Fair value, recurring | Commercial | |||
Assets: | |||
Loans held for sale measured at FV | 0 | ||
Fair Value, Inputs, Level 3 | Fair value, recurring | Residential Mortgage Loans | |||
Assets: | |||
Loans measured at FV | 179 | 137 | |
Fair Value, Inputs, Level 3 | Interest Rate Contract | Fair value, recurring | |||
Assets: | |||
Derivative assets | 7 | 8 | |
Liabilities: | |||
Derivative liabilities | 8 | 5 | |
Fair Value, Inputs, Level 3 | Foreign Exchange Contract | Fair value, recurring | |||
Assets: | |||
Derivative assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Inputs, Level 3 | Equity Contract | Fair value, recurring | |||
Assets: | |||
Derivative assets | 0 | ||
Liabilities: | |||
Derivative liabilities | 125 | 137 | |
Fair Value, Inputs, Level 3 | Commodity Contract | Fair value, recurring | |||
Assets: | |||
Derivative assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Inputs, Level 3 | U.S. Treasury and federal agencies | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 0 | 0 | |
Trading debt securities | 0 | 0 | |
Fair Value, Inputs, Level 3 | Obligations of states and political subdivisions | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 0 | 0 | |
Trading debt securities | 0 | 0 | |
Fair Value, Inputs, Level 3 | Agency mortgage-backed securities | Residential mortgage-backed securities | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 0 | 0 | |
Trading debt securities | 0 | 0 | |
Fair Value, Inputs, Level 3 | Agency mortgage-backed securities | Commercial mortgage-backed securities | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 0 | 0 | |
Fair Value, Inputs, Level 3 | Non-agency mortgage-backed securities | Commercial mortgage-backed securities | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 0 | 0 | |
Fair Value, Inputs, Level 3 | Asset-backed securities and other debt securities | Fair value, recurring | |||
Assets: | |||
Available-for-sale debt securities, fair value | 0 | 0 | |
Trading debt securities | $ 0 | $ 0 | |
[1] | Amortized cost of $ 33,128 and $ 31,577 at December 31, 2018 and 2017 , respectively. | ||
[2] | Includes interest-only mortgage-backed securities of $ 0 and $ 34 as of December 31, 2018 and 2017 , respectively, recorded at fair value with fair value changes recorded in securities (losses) gains, net , i n the Consolidated Statements of Income . |
Fair Value Measurements (Asse_2
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Federal Home Loan Bank Stock | $ 184 | $ 248 |
Federal Reserve Bank Stock | 366 | 362 |
DTCC Stock | $ 2 | $ 2 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements - Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Net fair value of the interest rate lock commitments | $ 7 | ||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 25 bp | 3 | ||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 50 bp | 6 | ||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 25 bp | 4 | ||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 50 bp | 9 | ||
Change in fair value of interest rate lock commitments, due to 10% adverse changes in the assumed loan closing rates | 1 | ||
Change in fair value of interest rate lock commitments, due to 20% adverse changes in the assumed loan closing rates | 1 | ||
Change in fair value of interest rate lock commitments, due to 10% favorable changes in the assumed loan closing rates | 1 | ||
Change in fair value of interest rate lock commitments, due to 20% favorable changes in the assumed loan closing rates | 1 | ||
Larger commercial loans, subject to impairment review | 1 | ||
Asset Impairment Charges | 67 | $ 266 | |
OTTI | 0 | (54) | $ (15) |
Residential Portfolio Segment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value gains or losses | 20 | 14 | |
FVO valuation adjustments related to instrument-specific credit risk | 1 | 2 | |
Affordable Housing Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Asset Impairment Charges | 57 | ||
Other Real Estate Owned | Transfer | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value adjustment | 4 | 4 | |
Other Real Estate Owned | Existing | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value adjustment | 3 | 6 | |
Private equity investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
OTTI | 10 | 1 | |
Private equity, observable price change adjustment | 64 | ||
Private equity, impairment | 12 | ||
Private equity, cumulative impairment | 12 | ||
Private equity, cumulative observable price change | 48 | ||
Loans held for sale | Commercial Member | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value gains or losses | 2 | ||
Loans held for sale | Transfer | Commercial Member | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Lower of cost or fair value adjustment | 1 | 85 | |
Fair value adjustment | $ 31 | ||
Loans held for sale | Existing | Commercial Member | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value adjustment | $ 3 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||||
Beginning balance | $ 861 | $ 804 | $ 380 | ||||
Included in earnings | (73) | (107) | 130 | ||||
Purchases | 158 | 234 | (3) | ||||
Sale and exercise of warrant | (334) | ||||||
Settlements | (19) | (86) | (131) | ||||
Transfers into Level 3 | 64 | [1] | 16 | [2] | 18 | [3] | |
Ending balance | 991 | 861 | 804 | ||||
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 | (57) | [4] | (191) | [5] | (45) | [6] | |
Residential Mortgage | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||||
Beginning balance | 137 | 143 | 167 | ||||
Included in earnings | (3) | 1 | (2) | ||||
Purchases | 0 | 0 | 0 | ||||
Sale and exercise of warrant | 0 | ||||||
Settlements | (19) | (23) | (40) | ||||
Transfers into Level 3 | 64 | [1] | 16 | [2] | 18 | [3] | |
Ending balance | 179 | 137 | 143 | ||||
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 | (3) | [4] | 1 | [5] | (2) | [6] | |
Mortgage Servicing Rights | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||||
Beginning balance | [7] | 858 | 744 | ||||
Included in earnings | (83) | (122) | [7] | ||||
Purchases | 163 | 236 | [7] | ||||
Settlements | 0 | 0 | [7] | ||||
Transfers into Level 3 | 0 | 0 | [7] | ||||
Ending balance | 938 | 858 | [7] | 744 | [7] | ||
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 | (4) | (122) | [7] | ||||
Interest Rate Contract | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||||
Beginning balance | 3 | [8] | 8 | [9] | 12 | ||
Included in earnings | 72 | [8] | 94 | [9] | 115 | [10] | |
Purchases | (5) | [8] | (2) | [9] | (3) | [10] | |
Sale and exercise of warrant | 0 | ||||||
Settlements | (71) | [8] | (97) | [9] | (116) | [10] | |
Transfers into Level 3 | 0 | [1] | 0 | 0 | |||
Ending balance | (1) | [8] | 3 | [8] | 8 | [9] | |
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | 9 | [4],[8] | 10 | [5],[9] | 13 | [6],[10] | |
Equity Contract | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||||
Beginning balance | (137) | [9] | (91) | [10] | 201 | ||
Included in earnings | (59) | [8] | (80) | [9] | 17 | [10] | |
Purchases | 0 | 0 | 0 | ||||
Sale and exercise of warrant | [10] | (334) | |||||
Settlements | 71 | [8] | 34 | [9] | 25 | [10] | |
Transfers into Level 3 | 0 | 0 | 0 | ||||
Ending balance | (125) | [8] | (137) | [9] | (91) | [10] | |
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 | $ (59) | [4],[8] | $ (80) | [5],[9] | $ (56) | [6],[10] | |
[1] | Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. | ||||||
[2] | Includes certain residential mortgage loans held for sale that were transferred to held for investment. | ||||||
[3] | Includes certain residential mortgage loans held for sale that were transferred to held for investment. | ||||||
[4] | Includes interest income and expense. | ||||||
[5] | Includes interest income and expense. | ||||||
[6] | Includes interest income and expense. | ||||||
[7] | Effective January 1, 2017, the Bancorp has elected the fair value measurement method for all existing classes of its residential mortgage servicing rights. The servicing rights were measured at fair value at December 31, 2017 and were m easured under the amortization method at December 31, 2016. | ||||||
[8] | Net interest rate derivatives include derivative assets and liabilities of $ 7 and $ 8 , respectively, as of December 31, 2018 . | ||||||
[9] | Net interest rate derivatives include derivative assets and liabilities of $ 8 and $ 5 , respect ively, as of December 31, 2017 . | ||||||
[10] | Net interest rate derivatives include derivative assets and liabilities of $ 13 and $ 5 , respectively, as of December 31, 2016 . Net equity derivatives include derivative assets and liabilities of $ 0 and $ 9 1 , respectively, as of December 31, 2016 . |
Fair Value Measurements (Reco_2
Fair Value Measurements (Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Derivative assets | $ 991 | $ 861 | $ 804 | $ 380 | $ 380 |
Interest Rates | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Derivative assets | 7 | 8 | 13 | ||
Derivative liabilities | $ 8 | $ 5 | 5 | ||
Equity Contract | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Derivative assets | 0 | ||||
Derivative liabilities | $ 91 |
Fair Value Measurements (Total
Fair Value Measurements (Total Gains and Losses Included in Earnings for Assets and Liabilites Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Detail) - Fair Value, Inputs, Level 3 - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gains and losses included in earnings | $ (73) | $ (107) | $ 130 |
Mortgage Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gains and losses included in earnings | (16) | (29) | 112 |
Corporate Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gains and losses included in earnings | 2 | 2 | 1 |
Other Noninterest Income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gains and losses included in earnings | $ (59) | $ (80) | $ 17 |
Fair Value Measurements (Tota_2
Fair Value Measurements (Total Gains and Losses Included in Earning Attributable to Changes in Unrealized Gains and Losses Related to Level 3 Assets and Liabilites Still Held at Year End) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | $ (57) | $ (191) | $ (45) |
Mortgage Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | 0 | (113) | 10 |
Corporate Banking Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | 2 | 2 | 1 |
Other Noninterest Income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | $ (59) | $ (80) | $ (56) |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Recurring Basis)) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Loans measured at FV | $ 179 | $ 137 |
Fair value - Derivative Assets | 1,114 | 823 |
Residential mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Loans measured at FV | 179 | 137 |
Mortgage Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Mortgage Servicing Rights | 938 | 858 |
IRLCs, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value - Derivative Assets | 7 | 8 |
Swap associated with the sale of Visa, Inc. Class B shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value - Derivative Assets | $ (125) | $ (137) |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Prepayment speed | 0.50% | 0.00% |
OAS spread (bps) | 4.41% | 4.50% |
Minimum | Residential mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate risk factor | (13.20%) | (10.60%) |
Credit risk factor | 0.00% | 0.00% |
Minimum | IRLCs, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Loan closing rates | 9.50% | 12.50% |
Minimum | Swap associated with the sale of Visa, Inc. Class B shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Timing of the resolution of the covered litigation | Jan. 31, 2021 | Dec. 31, 2020 |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Prepayment speed | 100.00% | 98.10% |
OAS spread (bps) | 15.13% | 15.15% |
Maximum | Residential mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate risk factor | 9.40% | 14.50% |
Credit risk factor | 39.90% | 52.10% |
Maximum | IRLCs, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Loan closing rates | 96.70% | 97.70% |
Maximum | Swap associated with the sale of Visa, Inc. Class B shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Timing of the resolution of the covered litigation | Nov. 30, 2023 | Dec. 31, 2023 |
Weighted-average | Fixed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Prepayment speed | 10.20% | 11.40% |
OAS spread (bps) | 5.43% | 5.49% |
Weighted-average | Adjustable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Prepayment speed | 23.00% | 24.60% |
OAS spread (bps) | 8.63% | 7.85% |
Weighted-average | Residential mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate risk factor | 0.50% | 3.10% |
Credit risk factor | 0.70% | 1.40% |
Weighted-average | IRLCs, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Loan closing rates | 86.00% | 71.80% |
Weighted-average | Swap associated with the sale of Visa, Inc. Class B shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Timing of the resolution of the covered litigation | Nov. 11, 2021 | Aug. 15, 2021 |
Fair Value Measurements (Asse_3
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | $ 249 | $ 1,548 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (67) | (266) |
Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 16 | 1 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (3) | (33) |
Commercial and Industrial Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 93 | 327 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (41) | (99) |
Commercial Mortgage Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 2 | 19 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | 7 | (12) |
Commercial Leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 14 | 4 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (11) | (6) |
Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 20 | 27 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (7) | (10) |
Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 32 | 24 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (45) | (6) |
Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 60 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (2) | (42) |
Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 70 | 8 |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | 43 | (1) |
Affordable Housing Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 1,078 | |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (57) | |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 2 | |
Fair Value Measured On Nonrecurring Basis Gains (Losses) | (8) | |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 182 | 1,548 |
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 | 16 | 1 |
Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 93 | 327 |
Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 2 | 19 |
Fair Value, Inputs, Level 3 | Commercial Leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 14 | 4 |
Fair Value, Inputs, Level 3 | Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 20 | 27 |
Fair Value, Inputs, Level 3 | Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 32 | 24 |
Fair Value, Inputs, Level 3 | Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 0 | 60 |
Fair Value, Inputs, Level 3 | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 3 | 8 |
Fair Value, Inputs, Level 3 | Affordable Housing Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | $ 1,078 | |
Fair Value, Inputs, Level 3 | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 2 | |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | 67 | |
Fair Value, Inputs, Level 2 | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair Value Measurements | $ 67 |
Fair Value Measurements (Fair_3
Fair Value Measurements (Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Nonrecurring Basis)) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commercial Loans Held For Sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | $ 16 | $ 1 |
Commercial and Industrial Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | 93 | 327 |
Commercial Mortgage Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | 2 | 19 |
Commercial Leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | 14 | 4 |
OREO Property | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | 20 | 27 |
Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | 32 | 24 |
Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | 0 | 60 |
Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | 3 | 8 |
Affordable Housing Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | $ 1,078 | |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value measurements nonrecurring assets | $ 2 | |
Minimum | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liquidity discount | 0.00% | 2.50% |
Maximum | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liquidity discount | 43.00% | 15.00% |
Weighted-average | Commercial Loans Held For Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cost to sell | 10.00% | 10.00% |
Weighted-average | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liquidity discount | 12.90% | 5.80% |
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 | Dec. 31, 2018 | Dec. 31, 2017 |
Residential mortgage loans | ||
Aggregate fair value | ||
Loans measured at fair value | $ 716 | $ 536 |
Past due loans of 90 days or more | 2 | 5 |
Nonaccrual loans | 2 | 1 |
Aggregate unpaid principal balance | ||
Loans measured at fair value | 696 | 522 |
Past due loans of 90 days or more | 2 | 5 |
Nonaccrual loans | 2 | 1 |
Difference | ||
Loans measured at fair value | 20 | 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 | 7 | |
Aggregate unpaid principal balance | ||
Loans measured at fair value | 7 | |
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 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1] | Dec. 31, 2015 | [1] | ||
Financial assets: | ||||||||
Cash and due from banks | $ 2,681 | $ 2,514 | [1] | $ 2,392 | $ 2,540 | |||
Other short-term investments | [2] | 1,825 | 2,753 | |||||
Held-to-maturity securities | [3] | 18 | 24 | |||||
Loans and leases held for sale | [4] | 607 | 492 | |||||
Commercial and industrial loans | 44,340 | 41,170 | ||||||
Commercial mortgage loans | 6,974 | 6,604 | ||||||
Commercial construction loans | 4,657 | 4,553 | ||||||
Commercial leases | 3,600 | 4,068 | ||||||
Residential mortgage loans | 15,504 | 15,591 | ||||||
Home equity | 6,402 | 7,014 | ||||||
Automobile loans | 8,976 | 9,112 | ||||||
Credit card | 2,470 | 2,299 | ||||||
Other consumer loans | 2,342 | 1,559 | ||||||
Portfolio loans and leases, net | 94,162 | 90,774 | ||||||
Financial liabilities: | ||||||||
Deposits | 108,835 | 103,162 | ||||||
Federal funds purchased | 1,925 | 174 | ||||||
Other short-term borrowings | 573 | 4,012 | ||||||
Long-term debt | [2] | 14,426 | 14,904 | |||||
Fair Value, Inputs, Level 1 | ||||||||
Financial assets: | ||||||||
Cash and due from banks | 2,681 | 2,514 | ||||||
Other short-term investments | 1,825 | 2,753 | ||||||
Other securities | 0 | 0 | ||||||
Held-to-maturity securities | 0 | 0 | ||||||
Loans and leases held for sale | 0 | 0 | ||||||
Commercial and industrial loans | 0 | 0 | ||||||
Commercial mortgage loans | 0 | 0 | ||||||
Commercial construction loans | 0 | 0 | ||||||
Commercial leases | 0 | 0 | ||||||
Residential mortgage loans | 0 | 0 | ||||||
Home equity | 0 | 0 | ||||||
Automobile loans | 0 | 0 | ||||||
Credit card | 0 | 0 | ||||||
Other consumer loans | 0 | 0 | ||||||
Unallocated Allowance for Loan and Lease Losses | 0 | 0 | ||||||
Portfolio loans and leases, net | 0 | 0 | ||||||
Financial liabilities: | ||||||||
Deposits | 0 | 0 | ||||||
Federal funds purchased | 1,925 | 174 | ||||||
Other short-term borrowings | 0 | 0 | ||||||
Long-term debt | 14,287 | 15,045 | ||||||
Fair Value, Inputs, Level 2 | ||||||||
Financial assets: | ||||||||
Cash and due from banks | 0 | 0 | ||||||
Other short-term investments | 0 | 0 | ||||||
Other securities | 552 | 612 | ||||||
Held-to-maturity securities | 0 | 0 | ||||||
Loans and leases held for sale | 0 | 0 | ||||||
Commercial and industrial loans | 0 | 0 | ||||||
Commercial mortgage loans | 0 | 0 | ||||||
Commercial construction loans | 0 | 0 | ||||||
Commercial leases | 0 | 0 | ||||||
Residential mortgage loans | 0 | 0 | ||||||
Home equity | 0 | 0 | ||||||
Automobile loans | 0 | 0 | ||||||
Credit card | 0 | 0 | ||||||
Other consumer loans | 0 | 0 | ||||||
Unallocated Allowance for Loan and Lease Losses | 0 | 0 | ||||||
Portfolio loans and leases, net | 0 | 0 | ||||||
Financial liabilities: | ||||||||
Deposits | 108,782 | 103,123 | ||||||
Federal funds purchased | 0 | 0 | ||||||
Other short-term borrowings | 573 | 4,012 | ||||||
Long-term debt | 445 | 529 | ||||||
Fair Value, Inputs, Level 3 | ||||||||
Financial assets: | ||||||||
Cash and due from banks | 0 | 0 | ||||||
Other short-term investments | 0 | 0 | ||||||
Other securities | 0 | 0 | ||||||
Held-to-maturity securities | 18 | 24 | ||||||
Loans and leases held for sale | 63 | 93 | ||||||
Commercial and industrial loans | 44,668 | 41,718 | ||||||
Commercial mortgage loans | 6,851 | 6,490 | ||||||
Commercial construction loans | 4,688 | 4,560 | ||||||
Commercial leases | 3,180 | 3,705 | ||||||
Residential mortgage loans | 15,688 | 15,996 | ||||||
Home equity | 6,719 | 7,410 | ||||||
Automobile loans | 8,717 | 8,832 | ||||||
Credit card | 2,759 | 2,616 | ||||||
Other consumer loans | 2,428 | 1,621 | ||||||
Unallocated Allowance for Loan and Lease Losses | 0 | 0 | ||||||
Portfolio loans and leases, net | 95,698 | 92,948 | ||||||
Financial liabilities: | ||||||||
Deposits | 0 | 0 | ||||||
Federal funds purchased | 0 | 0 | ||||||
Other short-term borrowings | 0 | 0 | ||||||
Long-term debt | 0 | 0 | ||||||
Net Carrying Amount | ||||||||
Financial assets: | ||||||||
Cash and due from banks | 2,681 | 2,514 | ||||||
Other short-term investments | 1,825 | 2,753 | ||||||
Other securities | 552 | 612 | ||||||
Held-to-maturity securities | 18 | 24 | ||||||
Loans and leases held for sale | 63 | 93 | ||||||
Commercial and industrial loans | 43,825 | 40,519 | ||||||
Commercial mortgage loans | 6,894 | 6,539 | ||||||
Commercial construction loans | 4,625 | 4,530 | ||||||
Commercial leases | 3,582 | 4,054 | ||||||
Residential mortgage loans | 15,244 | 15,365 | ||||||
Home equity | 6,366 | 6,968 | ||||||
Automobile loans | 8,934 | 9,074 | ||||||
Credit card | 2,314 | 2,182 | ||||||
Other consumer loans | 2,309 | 1,526 | ||||||
Unallocated Allowance for Loan and Lease Losses | (110) | (120) | ||||||
Portfolio loans and leases, net | 93,983 | 90,637 | ||||||
Financial liabilities: | ||||||||
Deposits | 108,835 | 103,162 | ||||||
Federal funds purchased | 1,925 | 174 | ||||||
Other short-term borrowings | 573 | 4,012 | ||||||
Long-term debt | 14,426 | 14,904 | ||||||
Total Fair Value | ||||||||
Financial assets: | ||||||||
Cash and due from banks | 2,681 | 2,514 | ||||||
Other short-term investments | 1,825 | 2,753 | ||||||
Other securities | 552 | 612 | ||||||
Held-to-maturity securities | 18 | 24 | ||||||
Loans and leases held for sale | 63 | 93 | ||||||
Commercial and industrial loans | 44,668 | 41,718 | ||||||
Commercial mortgage loans | 6,851 | 6,490 | ||||||
Commercial construction loans | 4,688 | 4,560 | ||||||
Commercial leases | 3,180 | 3,705 | ||||||
Residential mortgage loans | 15,688 | 15,996 | ||||||
Home equity | 6,719 | 7,410 | ||||||
Automobile loans | 8,717 | 8,832 | ||||||
Credit card | 2,759 | 2,616 | ||||||
Other consumer loans | 2,428 | 1,621 | ||||||
Unallocated Allowance for Loan and Lease Losses | 0 | 0 | ||||||
Portfolio loans and leases, net | 95,698 | 92,948 | ||||||
Financial liabilities: | ||||||||
Deposits | 108,782 | 103,123 | ||||||
Federal funds purchased | 1,925 | 174 | ||||||
Other short-term borrowings | 573 | 4,012 | ||||||
Long-term debt | $ 14,732 | $ 15,574 | ||||||
[1] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. | |||||||
[2] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . | |||||||
[3] | Fair value of $ 18 and $ 24 at December 31, 2018 and 2017 , respectively . | |||||||
[4] | Includes $ 537 and $ 399 of residential mortgage loans held for sale measured at fair value and $7 and $0 of commercial loans held for sale measured at fair value at December 31, 2018 and 2017 , respectively. |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Capital and Risk-Based Capital and Leverage Ratios for the Bancorp and its Significant Subsidiary Banks) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fifth Third Bancorp | ||
Risk Based Ratios | ||
CET1 capital ratio (to risk-weighted assets) | 10.24% | 10.61% |
Tier I risk-based capital (to risk-weighted assets) | 11.32% | 11.74% |
Total risk-based capital (to risk-weighted assets) | 14.48% | 15.16% |
Tier I leverage (to quarterly average assets) | 9.72% | 10.01% |
Risk Based Capital | ||
CET1 capital (to risk-weighted assets) | $ 12,534 | $ 12,517 |
Tier I risk-based capital (to risk-weighted assets) | 13,864 | 13,848 |
Total risk-based capital (to risk weighted assets) | 17,723 | 17,887 |
Tier I leverage (to quarterly average assets) | $ 13,864 | $ 13,848 |
Fifth Third Bank | ||
Risk Based Ratios | ||
CET1 capital ratio (to risk-weighted assets) | 11.93% | 12.06% |
Tier I risk-based capital (to risk-weighted assets) | 11.93% | 12.06% |
Total risk-based capital (to risk-weighted assets) | 13.57% | 13.88% |
Tier I leverage (to quarterly average assets) | 10.27% | 10.32% |
Risk Based Capital | ||
CET1 capital (to risk-weighted assets) | $ 14,435 | $ 14,008 |
Tier I risk-based capital (to risk-weighted assets) | 14,435 | 14,008 |
Total risk-based capital (to risk weighted assets) | 16,427 | 16,126 |
Tier I leverage (to quarterly average assets) | $ 14,435 | $ 14,008 |
Minimum | ||
Risk Based Ratios | ||
CET1 capital ratio (to risk-weighted assets) | 4.50% | |
Tier I risk-based capital (to risk-weighted assets) | 6.00% | |
Total risk-based capital (to risk-weighted assets) | 8.00% | |
Tier I leverage (to quarterly average assets) | 4.00% | |
Well-capitalized | ||
Risk Based Ratios | ||
CET1 capital ratio (to risk-weighted assets) | 6.50% | |
Tier I risk-based capital (to risk-weighted assets) | 8.00% | |
Total risk-based capital (to risk-weighted assets) | 10.00% | |
Tier I leverage (to quarterly average assets) | 5.00% |
Parent Company Financial Stat_3
Parent Company Financial Statements (Condensed Statements of Income - Parent Company Only) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2016 | ||
Dividends from subsidiaries: | ||||||
Consolidated nonbank subsidiaries | $ 1,900 | $ 2,300 | ||||
Total income | 5,183 | 4,489 | $ 4,193 | |||
Expenses | ||||||
Interest | 1,043 | 691 | 578 | |||
Other | 219 | 186 | 187 | |||
Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries | 2,765 | 2,979 | 2,208 | |||
Applicable income tax benefit | (572) | (799) | (665) | |||
Net income (loss) attributable to Bancorp | 2,193 | 2,180 | 1,547 | |||
Other Comprehensive Income (loss) | (183) | $ (183) | 14 | (138) | $ (138) | |
Comprehensive income attributable to Bancorp | 2,010 | 2,194 | 1,409 | |||
Parent Company Only | ||||||
Dividends from subsidiaries: | ||||||
Consolidated nonbank subsidiaries | [1] | 1,890 | 2,343 | 1,886 | ||
Interest on loans to subsidiaries | 24 | 21 | 18 | |||
Total income | 1,914 | 2,364 | 1,904 | |||
Expenses | ||||||
Interest | 211 | 176 | 171 | |||
Other | 34 | 42 | 18 | |||
Total expenses | 245 | 218 | 189 | |||
Income Before Income Taxes and Change in Undistributed Earnings of Subsidiaries | 1,669 | 2,146 | 1,715 | |||
Applicable income tax benefit | 50 | 68 | 63 | |||
Income (Loss) Before Change in Undistributed Earnings of Subsidiaries | 1,719 | 2,214 | 1,778 | |||
Change in undistributed earnings (loss) | 474 | (34) | (231) | |||
Net income (loss) attributable to Bancorp | 2,193 | 2,180 | 1,547 | |||
Other Comprehensive Income (loss) | 0 | 0 | 0 | |||
Comprehensive income attributable to Bancorp | $ 2,193 | $ 2,180 | $ 1,547 | |||
[1] | (a) The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $1.9 billion , $2.3 billion and $1.9 billion for the years ended December 31, 2018 , 2017 and 2016 , respectively . |
Parent Company Financial Stat_4
Parent Company Financial Statements (Condensed Statements of Income - Parent Company Only) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Dividend Received From Nonbank Companies And Related Subsidiaries | $ 1,900 | $ 2,300 | ||
Parent Company Only | ||||
Dividend Received From Nonbank Companies And Related Subsidiaries | [1] | $ 1,890 | $ 2,343 | $ 1,886 |
[1] | (a) The Bancorp’s indirect banking subsidiary paid dividends to the Bancorp’s direct nonbank subsidiary holding company of $1.9 billion , $2.3 billion and $1.9 billion for the years ended December 31, 2018 , 2017 and 2016 , respectively . |
Parent Company Financial Stat_5
Parent Company Financial Statements (Condensed Balance Sheet - Parent Company Only) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 | ||
Investments in subsidiaries: | ||||||||
Goodwill | $ 2,478 | $ 2,445 | $ 2,416 | |||||
Other assets | [2] | 7,372 | [1] | 6,863 | ||||
Total Assets | 146,069 | 142,081 | 142,080 | |||||
Liabilities | ||||||||
Other short-term borrowings | 573 | 4,012 | ||||||
Accrued expenses and other liabilities | [2] | 2,498 | 2,144 | |||||
Long-term debt (external) | [2] | 14,426 | 14,904 | |||||
Total liabilities | 129,819 | 125,861 | ||||||
Shareholders' Equity | ||||||||
Common stock | [3] | 2,051 | 2,051 | |||||
Preferred stock | [4] | 1,331 | 1,331 | |||||
Capital surplus | 2,873 | 2,790 | ||||||
Retained earnings | [1] | 16,578 | 14,957 | |||||
Accumulated other comprehensive (loss) income | (112) | 73 | 59 | $ 197 | ||||
Treasury stock | [3] | (6,471) | (5,002) | |||||
Noncontrolling interests | 0 | 20 | ||||||
Total Equity | 16,250 | 16,200 | ||||||
Total Equity | 16,250 | $ 16,224 | 16,220 | $ 16,081 | $ 15,736 | $ 15,870 | ||
Total Liabilities and Equity | 146,069 | 142,081 | ||||||
Parent Company Only | ||||||||
Assets | ||||||||
Cash | 120 | 80 | ||||||
Short-term Investments | 3,642 | 3,493 | ||||||
Loans to subsidiaries: | ||||||||
Nonbank subsidiaries | 571 | 843 | ||||||
Total loans to subsidiaries | 571 | 843 | ||||||
Investments in subsidiaries: | ||||||||
Nonbank subsidiaries | 17,921 | 17,530 | ||||||
Total investment in subsidiaries | 17,921 | 17,530 | ||||||
Goodwill | 80 | 80 | ||||||
Other assets | 268 | 329 | ||||||
Total Assets | 22,602 | 22,355 | ||||||
Liabilities | ||||||||
Other short-term borrowings | 253 | 315 | ||||||
Accrued expenses and other liabilities | 424 | 472 | ||||||
Long-term debt (external) | 5,675 | 5,348 | ||||||
Total liabilities | 6,352 | 6,135 | ||||||
Shareholders' Equity | ||||||||
Common stock | 2,051 | 2,051 | ||||||
Preferred stock | 1,331 | 1,331 | ||||||
Capital surplus | 2,873 | 2,790 | ||||||
Retained earnings | 16,578 | 14,957 | ||||||
Accumulated other comprehensive (loss) income | (112) | 73 | ||||||
Treasury stock | (6,471) | (5,002) | ||||||
Noncontrolling interests | 0 | 20 | ||||||
Total Equity | 16,250 | 16,220 | ||||||
Total Liabilities and Equity | $ 22,602 | $ 22,355 | ||||||
[1] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. | |||||||
[2] | Includes $ 40 and $ 62 of other short-term investments, $ 668 and $ 1,297 of portfolio loans and leases, $ (4) and $ (6) of ALLL, $ 5 and $ 7 of other assets, $ 1 and $ 2 of other liabilities and $ 606 and $ 1,190 of long-term debt from consolidated VIEs that are included in their respec tive captions above at December 31, 2018 and 2017 , respectively. For further information, refer to Note 10 . | |||||||
[3] | Common shares: Stated value $ 2.22 per share; authorized 2,000,000,000 ; outstanding at December 31, 2018 – 646,630,857 (excludes 277,261,724 treasury shares) , 2017 – 693,804,893 (excludes 230,087,688 treasury shares). | |||||||
[4] | 446,000 shares of undesignated no par value preferred stock are authorized and unissued at December 31, 2018 and 2017 ; fixed-to-floating rate non-cumulative Series H perpetual preferred stock with a $ 25,000 liquidation preference: 24,000 authorized shares, issued and outstanding at December 31, 2018 and 2017 ; fixed-to-floating rate non-cumulative Series I perpetual preferred stock with a $ 25,000 liquidation preference: 18,000 authorized shares, issued and outstandi ng at December 31, 2018 and 2017 ; and fixed-to-floating rate non-cumulative Series J perpetual preferred stock with a $ 25,000 liquidation preference: 12,000 authorized shares, issue d and outstanding at December 31, 2018 and 2017 . |
Parent Company Financial Stat_6
Parent Company Financial Statements (Condensed Statement of Cash Flow - Parent Company Only) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Operating Activities | ||||||
Net income (loss) | $ 2,193 | $ 2,180 | $ 1,547 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
(Benefit from) provision for deferred income taxes | 30 | (252) | [1] | (141) | [1] | |
Net change in undistributed earnings | 1 | 47 | 66 | |||
Net change in: | ||||||
Other assets | 303 | (22) | [1] | 338 | [1] | |
Accrued expenses and other liabilities | 147 | (138) | [1] | (157) | [1] | |
Net Cash Provided by (Used in) Operating Activities | 2,856 | 1,480 | [1] | 2,091 | [1] | |
Net change in: | ||||||
Other short-term investments | 928 | 1 | [1] | (83) | [1] | |
Net Cash Provided by (Used in) Investing Activities | (4,141) | 428 | [1] | (2,864) | [1] | |
Financing Activities | ||||||
Net change in other short-term borrowings | (3,439) | 477 | [1] | 2,028 | [1] | |
Dividends paid on common shares | 467 | 430 | [1] | 402 | [1] | |
Dividends paid on preferred shares | 98 | 75 | [1] | 52 | [1] | |
Proceeds from issuance of long-term debt | 2,438 | 2,490 | [1] | 3,735 | [1] | |
Repayment of long-term debt | 2,884 | 1,969 | [1] | 5,119 | [1] | |
Repurchase of treasury stock and related forward contract | 1,453 | 1,605 | [1] | 661 | [1] | |
Other, net | (69) | (57) | [1] | (31) | [1] | |
Net Cash Provided (Used in) Provided by Financing Activities | 1,452 | (1,786) | [1] | 625 | [1] | |
Net (Decrease) Increase in Cash | 167 | 122 | [1] | (148) | [1] | |
Cash and Due from Banks at Beginning of Period | [1] | 2,514 | 2,392 | 2,540 | ||
Cash and Due from Banks at End of Period | 2,681 | 2,514 | [1] | 2,392 | [1] | |
Parent Company Only | ||||||
Operating Activities | ||||||
Net income (loss) | 2,193 | 2,180 | 1,547 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
(Benefit from) provision for deferred income taxes | 3 | 2 | 0 | |||
Net change in undistributed earnings | (474) | 34 | 231 | |||
Net change in: | ||||||
Other assets | 61 | 37 | 14 | |||
Accrued expenses and other liabilities | (116) | (15) | (35) | |||
Net Cash Provided by (Used in) Operating Activities | 1,667 | 2,238 | 1,757 | |||
Net change in: | ||||||
Other short-term investments | (149) | (419) | 654 | |||
Loans to subsidiaries | 272 | 126 | 13 | |||
Net Cash Provided by (Used in) Investing Activities | 123 | (293) | 667 | |||
Financing Activities | ||||||
Net change in other short-term borrowings | (62) | (29) | (60) | |||
Dividends paid on common shares | (467) | (430) | (402) | |||
Dividends paid on preferred shares | (98) | (75) | (52) | |||
Proceeds from issuance of long-term debt | 895 | 697 | 0 | |||
Repayment of long-term debt | (500) | (500) | (1,250) | |||
Repurchase of treasury stock and related forward contract | (1,453) | (1,605) | (661) | |||
Other, net | (65) | (53) | 3 | |||
Net Cash Provided (Used in) Provided by Financing Activities | (1,750) | (1,995) | (2,422) | |||
Net (Decrease) Increase in Cash | 40 | (50) | 2 | |||
Cash and Due from Banks at Beginning of Period | 80 | 130 | 128 | |||
Cash and Due from Banks at End of Period | $ 120 | $ 80 | $ 130 | |||
[1] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. |
Segments (Results of Operations
Segments (Results of Operations and Average Assets by Segment - Additional Information) (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements | |
Full-service Banking Centers | 1,121 |
Number of business segments | 4 |
Segments (Results of Operatio_2
Segments (Results of Operations and Average Assets by Segment) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2016 | |||||||
Segment Reporting Information | |||||||||||
Net interest income | $ 4,140 | $ 3,798 | $ 3,615 | ||||||||
Provision for (benefit from) loan and lease losses | 237 | 261 | [1] | 343 | [1] | ||||||
Net interest income after provision for loan and lease losses | 3,903 | 3,537 | 3,272 | ||||||||
Noninterest Income: | |||||||||||
Service charges on deposits | 549 | 554 | 558 | ||||||||
Wealth and asset management revenue | 444 | 419 | 404 | ||||||||
Corporate banking revenue | 438 | 353 | 432 | ||||||||
Card and processing revenue | 329 | 313 | 319 | ||||||||
Mortgage banking net revenue | 212 | 224 | 285 | ||||||||
Other noninterest income | 887 | [2] | 1,357 | [3] | 688 | [4] | |||||
Securities gains (losses), net | (54) | 2 | 10 | ||||||||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | (15) | 2 | 0 | ||||||||
Total noninterest income | 2,790 | 3,224 | 2,696 | ||||||||
Noninterest expense: | |||||||||||
Salaries, wages and incentives | 1,783 | 1,633 | 1,612 | ||||||||
Employee benefits | 332 | 356 | 339 | ||||||||
Net occupancy expense | 292 | 295 | 299 | ||||||||
Technology and communications | 285 | 245 | 234 | ||||||||
Equipment expense | 123 | 117 | 118 | ||||||||
Card and processing expense | 123 | 129 | 132 | ||||||||
Other noninterest expense | [1] | 990 | 1,007 | 1,026 | |||||||
Total noninterest expense | 3,928 | 3,782 | 3,760 | ||||||||
Income (Loss) Before Income Taxes | 2,765 | 2,979 | 2,208 | ||||||||
Applicable income tax expense (benefit) | 572 | 799 | 665 | ||||||||
Net income (loss) | 2,193 | $ 2,193 | 2,180 | [1] | 1,543 | [1] | $ 1,543 | ||||
Total goodwill | 2,478 | 2,478 | 2,445 | 2,416 | 2,416 | ||||||
Total Assets | 146,069 | 146,069 | 142,081 | 142,080 | 142,080 | ||||||
Intersegment Elimination | |||||||||||
Segment Reporting Information | |||||||||||
Net interest income | 0 | 0 | 0 | ||||||||
Provision for (benefit from) loan and lease losses | 0 | 0 | 0 | ||||||||
Net interest income after provision for loan and lease losses | 0 | 0 | 0 | ||||||||
Noninterest Income: | |||||||||||
Service charges on deposits | 0 | 0 | 0 | ||||||||
Wealth and asset management revenue | [5] | (138) | (132) | (131) | |||||||
Corporate banking revenue | 0 | 0 | 0 | ||||||||
Card and processing revenue | 0 | 0 | 0 | ||||||||
Mortgage banking net revenue | 0 | 0 | 0 | ||||||||
Other noninterest income | 0 | 0 | 0 | ||||||||
Securities gains (losses), net | 0 | 0 | 0 | ||||||||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | 0 | 0 | |||||||||
Total noninterest income | (138) | (132) | (131) | ||||||||
Noninterest expense: | |||||||||||
Salaries, wages and incentives | 0 | 0 | 0 | ||||||||
Employee benefits | 0 | 0 | 0 | ||||||||
Net occupancy expense | 0 | 0 | 0 | ||||||||
Technology and communications | 0 | 0 | 0 | ||||||||
Equipment expense | 0 | 0 | 0 | ||||||||
Card and processing expense | 0 | 0 | 0 | ||||||||
Other noninterest expense | (138) | (132) | (131) | ||||||||
Total noninterest expense | (138) | (132) | (131) | ||||||||
Income (Loss) Before Income Taxes | 0 | 0 | 0 | ||||||||
Applicable income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Net income (loss) | 0 | 0 | 0 | ||||||||
Total goodwill | 0 | 0 | 0 | 0 | 0 | ||||||
Total Assets | 0 | 0 | 0 | 0 | 0 | ||||||
Commercial Banking | |||||||||||
Segment Reporting Information | |||||||||||
Net interest income | 1,713 | 1,652 | 1,814 | ||||||||
Provision for (benefit from) loan and lease losses | (26) | 38 | 76 | ||||||||
Net interest income after provision for loan and lease losses | 1,739 | 1,614 | 1,738 | ||||||||
Noninterest Income: | |||||||||||
Service charges on deposits | 273 | 287 | 292 | ||||||||
Wealth and asset management revenue | 3 | 3 | 4 | ||||||||
Corporate banking revenue | 432 | 348 | [6] | 430 | [7] | ||||||
Card and processing revenue | 58 | 57 | 62 | ||||||||
Mortgage banking net revenue | 0 | 0 | 0 | ||||||||
Other noninterest income | 151 | [2] | 143 | [3] | 119 | [4] | |||||
Securities gains (losses), net | 0 | 0 | 0 | ||||||||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | 0 | 0 | |||||||||
Total noninterest income | 917 | 838 | [6] | 907 | |||||||
Noninterest expense: | |||||||||||
Salaries, wages and incentives | 300 | 252 | 254 | ||||||||
Employee benefits | 44 | 42 | 42 | ||||||||
Net occupancy expense | 26 | 26 | 26 | ||||||||
Technology and communications | 7 | 9 | 13 | ||||||||
Equipment expense | 23 | 18 | 16 | ||||||||
Card and processing expense | 4 | 3 | 4 | ||||||||
Other noninterest expense | 859 | 884 | 873 | ||||||||
Total noninterest expense | 1,263 | 1,234 | 1,228 | ||||||||
Income (Loss) Before Income Taxes | 1,393 | 1,218 | 1,417 | ||||||||
Applicable income tax expense (benefit) | 254 | 391 | 403 | ||||||||
Net income (loss) | 1,139 | 827 | 1,014 | ||||||||
Total goodwill | 630 | 630 | 613 | 613 | 613 | ||||||
Total Assets | 61,630 | 61,630 | 58,456 | 57,995 | 57,995 | ||||||
Branch Banking | |||||||||||
Segment Reporting Information | |||||||||||
Net interest income | 2,034 | 1,782 | 1,669 | ||||||||
Provision for (benefit from) loan and lease losses | 171 | 153 | 138 | ||||||||
Net interest income after provision for loan and lease losses | 1,863 | 1,629 | 1,531 | ||||||||
Noninterest Income: | |||||||||||
Service charges on deposits | 275 | 265 | 265 | ||||||||
Wealth and asset management revenue | 150 | 141 | 140 | ||||||||
Corporate banking revenue | 5 | 5 | 5 | ||||||||
Card and processing revenue | 266 | 251 | 253 | ||||||||
Mortgage banking net revenue | 5 | 6 | 7 | ||||||||
Other noninterest income | 53 | [2] | 88 | [3] | 85 | [4] | |||||
Securities gains (losses), net | 0 | 0 | 0 | ||||||||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | 0 | 0 | |||||||||
Total noninterest income | 754 | 756 | [3] | 755 | [4] | ||||||
Noninterest expense: | |||||||||||
Salaries, wages and incentives | 438 | 425 | 419 | ||||||||
Employee benefits | 98 | 101 | 101 | ||||||||
Net occupancy expense | 175 | 176 | 178 | ||||||||
Technology and communications | 5 | 4 | 3 | ||||||||
Equipment expense | 50 | 52 | 56 | ||||||||
Card and processing expense | 121 | 127 | 128 | ||||||||
Other noninterest expense | 841 | 796 | 798 | ||||||||
Total noninterest expense | 1,728 | 1,681 | 1,683 | ||||||||
Income (Loss) Before Income Taxes | 889 | 704 | 603 | ||||||||
Applicable income tax expense (benefit) | 187 | 249 | 213 | ||||||||
Net income (loss) | 702 | 455 | 390 | ||||||||
Total goodwill | 1,655 | 1,655 | 1,655 | 1,655 | 1,655 | ||||||
Total Assets | 61,040 | 61,040 | 57,931 | 55,979 | 55,979 | ||||||
Consumer Lending | |||||||||||
Segment Reporting Information | |||||||||||
Net interest income | 237 | 240 | 248 | ||||||||
Provision for (benefit from) loan and lease losses | 42 | 40 | 44 | ||||||||
Net interest income after provision for loan and lease losses | 195 | 200 | 204 | ||||||||
Noninterest Income: | |||||||||||
Service charges on deposits | 0 | 0 | 0 | ||||||||
Wealth and asset management revenue | 0 | 0 | 0 | ||||||||
Corporate banking revenue | 0 | 0 | 0 | ||||||||
Card and processing revenue | 0 | 0 | 0 | ||||||||
Mortgage banking net revenue | 206 | 217 | 277 | ||||||||
Other noninterest income | 14 | [2] | 18 | [3] | 26 | [4] | |||||
Securities gains (losses), net | 0 | 0 | 0 | ||||||||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | (15) | 2 | |||||||||
Total noninterest income | 205 | 237 | 303 | ||||||||
Noninterest expense: | |||||||||||
Salaries, wages and incentives | 156 | 152 | 158 | ||||||||
Employee benefits | 36 | 37 | 37 | ||||||||
Net occupancy expense | 10 | 10 | 10 | ||||||||
Technology and communications | 5 | 2 | 1 | ||||||||
Equipment expense | 0 | 0 | 0 | ||||||||
Card and processing expense | 0 | 0 | 0 | ||||||||
Other noninterest expense | 195 | 210 | 224 | ||||||||
Total noninterest expense | 402 | 411 | 430 | ||||||||
Income (Loss) Before Income Taxes | (2) | 26 | 77 | ||||||||
Applicable income tax expense (benefit) | (1) | 9 | 27 | ||||||||
Net income (loss) | (1) | 17 | 50 | ||||||||
Total goodwill | 0 | 0 | 0 | 0 | 0 | ||||||
Total Assets | 22,044 | 22,044 | 22,218 | 22,041 | 22,041 | ||||||
Wealth and Asset Management | |||||||||||
Segment Reporting Information | |||||||||||
Net interest income | 182 | 154 | 168 | ||||||||
Provision for (benefit from) loan and lease losses | 12 | 6 | 1 | ||||||||
Net interest income after provision for loan and lease losses | 170 | 148 | 167 | ||||||||
Noninterest Income: | |||||||||||
Service charges on deposits | 1 | 1 | 2 | ||||||||
Wealth and asset management revenue | 429 | 407 | 391 | ||||||||
Corporate banking revenue | 2 | 1 | 0 | ||||||||
Card and processing revenue | 5 | 5 | 4 | ||||||||
Mortgage banking net revenue | 1 | 1 | 1 | ||||||||
Other noninterest income | 18 | [2] | 4 | [3] | 1 | [4] | |||||
Securities gains (losses), net | 0 | 0 | 0 | ||||||||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | 0 | 0 | |||||||||
Total noninterest income | 456 | 419 | 399 | ||||||||
Noninterest expense: | |||||||||||
Salaries, wages and incentives | 173 | 154 | 142 | ||||||||
Employee benefits | 29 | 27 | 26 | ||||||||
Net occupancy expense | 12 | 11 | 10 | ||||||||
Technology and communications | 1 | 0 | 0 | ||||||||
Equipment expense | 1 | 0 | 0 | ||||||||
Card and processing expense | 0 | 0 | 0 | ||||||||
Other noninterest expense | 288 | 276 | 254 | ||||||||
Total noninterest expense | 504 | 468 | 432 | ||||||||
Income (Loss) Before Income Taxes | 122 | 99 | 134 | ||||||||
Applicable income tax expense (benefit) | 25 | 34 | 48 | ||||||||
Net income (loss) | 97 | 65 | 86 | ||||||||
Total goodwill | 193 | 193 | 177 | 148 | 148 | ||||||
Total Assets | 10,337 | 10,337 | 9,494 | 9,494 | 9,494 | ||||||
General Corporate and Other | |||||||||||
Segment Reporting Information | |||||||||||
Net interest income | (26) | (30) | (284) | ||||||||
Provision for (benefit from) loan and lease losses | 38 | 24 | 84 | ||||||||
Net interest income after provision for loan and lease losses | (64) | (54) | (368) | ||||||||
Noninterest Income: | |||||||||||
Service charges on deposits | 0 | 1 | (1) | ||||||||
Wealth and asset management revenue | 0 | 0 | 0 | ||||||||
Corporate banking revenue | (1) | (1) | (3) | ||||||||
Card and processing revenue | 0 | 0 | 0 | ||||||||
Mortgage banking net revenue | 0 | 0 | 0 | ||||||||
Other noninterest income | 651 | [2] | 1,104 | [3] | 457 | [4] | |||||
Securities gains (losses), net | (54) | 2 | 10 | ||||||||
Securities gains (losses), net - non-qualifying hedges on mortgage servcing rights | 0 | 0 | |||||||||
Total noninterest income | 596 | 1,106 | 463 | ||||||||
Noninterest expense: | |||||||||||
Salaries, wages and incentives | 716 | 650 | 639 | ||||||||
Employee benefits | 125 | 149 | 133 | ||||||||
Net occupancy expense | 69 | 72 | 75 | ||||||||
Technology and communications | 267 | 230 | 217 | ||||||||
Equipment expense | 49 | 47 | 46 | ||||||||
Card and processing expense | (2) | (1) | 0 | ||||||||
Other noninterest expense | (1,055) | (1,027) | (992) | ||||||||
Total noninterest expense | 169 | 120 | 118 | ||||||||
Income (Loss) Before Income Taxes | 363 | 932 | (23) | ||||||||
Applicable income tax expense (benefit) | 107 | 116 | (26) | ||||||||
Net income (loss) | 256 | 816 | 3 | ||||||||
Total goodwill | 0 | 0 | 0 | 0 | 0 | ||||||
Total Assets | $ (8,982) | [8] | $ (8,982) | [8] | $ (6,018) | [9] | $ (3,429) | [10] | $ (3,429) | [10] | |
[1] | Effective in the fourth quarter of 2018, Fifth Third retrospectively applied a change in its accounting policy for investments in affordable housing projects that qualify for LIHTC in accordance with ASU 2014-01. Refer to Note 1 for additional information. | ||||||||||
[2] | Includes impairment charges of $ 45 for branches and land. For more information refer to Note 7 and Note 26 . | ||||||||||
[3] | Includes impairment charges of $ 7 for branches and land. For more information refer to Note 7 and Note 26 . | ||||||||||
[4] | Includes impairment charges of $ 32 for branches and land. For more information refer to Note 7 . | ||||||||||
[5] | Revenue sharing agreements between wealth and asset management and branch b anking are eliminated in the Consolidated Statements of Income . | ||||||||||
[6] | Includes impairment charges of $ 52 for operating lease equipment. For more information refer to Note 26 . | ||||||||||
[7] | Includes impairment charges of $ 20 for operating lease equipment. | ||||||||||
[8] | Includes bank premises and equipment of $ 42 classified as held for sale. For more information refer to Note 7 . | ||||||||||
[9] | Includes bank premises and equipment of $ 27 classified as held for sale. For more information refer to Note 7 . | ||||||||||
[10] | Includes bank premises and equipment of $ 39 classified as held for sale . |
Segments (Results of Operatio_3
Segments (Results of Operations and Average Assets by Segment) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information | ||||
Impairment of Branches and Land | $ 45 | $ 7 | $ 32 | |
Bank premises and equipment held for sale | 42 | 27 | 39 | |
Branch Banking | ||||
Segment Reporting Information | ||||
Impairment of Branches and Land | 7 | 32 | ||
Commercial Banking | Operating lease equipment | ||||
Segment Reporting Information | ||||
Other Asset Impairment Charges | 45 | $ 52 | 20 | [1],[2] |
General Corporate and Other | ||||
Segment Reporting Information | ||||
Bank premises and equipment held for sale | $ 42 | $ 27 | ||
[1] | These rates reflect the floating rates as of December 31, 2018 . | |||
[2] | Includes impairment charges of $ 20 for operating lease equipment. |
Pending Acquisition (Additional
Pending Acquisition (Additional Information) (Detail) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition | |||
Total Assets | $ 146,069 | $ 142,081 | $ 142,080 |
May 18, 2018 | |||
Business Acquisition | |||
Share consideration transferred | 1.45 | ||
Cash consideration transferred per share | $ 5.54 | ||
Implied value per share | $ 54.2 | ||
May 21, 2018 | |||
Business Acquisition | |||
Implied value of merger transaction | $ 4,700 | ||
MB Financial | |||
Business Acquisition | |||
Total Assets | $ 20,000 |
Subsequent Events (Additional I
Subsequent Events (Additional Information) (Detail) - Senior Debt Obligations $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Fixed Rate 3.65 Percent Senior Notes Due 2024 | |
Subsequent Event | |
Face amount of notes issued or redeemed | $ 1,500 |
Maturity date(s) Start | Jan. 25, 2019 |
Maturity date(s) End | Jan. 25, 2024 |
Floating-Rate 3 ML Plus 64 bps Notes Due 2022 | |
Subsequent Event | |
Face amount of notes issued or redeemed | $ 300 |
Maturity date(s) Start | Feb. 1, 2019 |
Maturity date(s) End | Feb. 1, 2022 |