Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | USB | |
Entity Registrant Name | US BANCORP \DE\ | |
Entity Central Index Key | 36,104 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,642,459,857 |
Consolidated Balance Sheet (Una
Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Assets | |||
Cash and due from banks | $ 19,246 | $ 19,505 | |
Investment securities | |||
Held-to-maturity (fair value $43,408 and $43,723, respectively) | 44,612 | 44,362 | |
Available-for-sale ($571 and $689 pledged as collateral, respectively) | [1] | 67,125 | 68,137 |
Loans held for sale (including $3,271 and $3,534 of mortgage loans carried at fair value, respectively) | 4,777 | 3,554 | |
Loans | |||
Commercial | 98,097 | 97,561 | |
Commercial real estate | 40,140 | 40,463 | |
Residential mortgages | 60,477 | 59,783 | |
Credit card | 20,901 | 22,180 | |
Other retail | 55,317 | 57,324 | |
Total loans, excluding covered loans | 274,932 | 277,311 | |
Covered loans | 2,979 | 3,121 | |
Total loans | 277,911 | 280,432 | |
Less allowance for loan losses | (3,918) | (3,925) | |
Net loans | 273,993 | 276,507 | |
Premises and equipment | 2,441 | 2,432 | |
Goodwill | 9,440 | 9,434 | |
Other intangible assets | 3,388 | 3,228 | |
Other assets (including $829 and $238 of trading securities at fair value pledged as collateral, respectively) | [1] | 35,097 | 34,881 |
Total assets | 460,119 | 462,040 | |
Deposits | |||
Noninterest-bearing | 82,211 | 87,557 | |
Interest-bearing | [2] | 262,315 | 259,658 |
Total deposits | 344,526 | 347,215 | |
Short-term borrowings | 17,703 | 16,651 | |
Long-term debt | 33,201 | 32,259 | |
Other liabilities | 14,877 | 16,249 | |
Total liabilities | 410,307 | 412,374 | |
Shareholders' equity | |||
Preferred stock | 5,419 | 5,419 | |
Common stock, par value $0.01 a share - authorized: 4,000,000,000 shares; issued: 3/31/18 and 12/31/17 - 2,125,725,742 shares | 21 | 21 | |
Capital surplus | 8,438 | 8,464 | |
Retained earnings | 55,549 | 54,142 | |
Less cost of common stock in treasury: 3/31/18 - 476,747,913 shares; 12/31/17 - 470,080,231 shares | (18,047) | (17,602) | |
Accumulated other comprehensive income (loss) | (2,193) | (1,404) | |
Total U.S. Bancorp shareholders' equity | 49,187 | 49,040 | |
Noncontrolling interests | 625 | 626 | |
Total equity | 49,812 | 49,666 | |
Total liabilities and equity | $ 460,119 | $ 462,040 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. | ||
[2] | lncludes time deposits greater than $250,000 balances of $7.8 billion and $6.8 billion at March 31, 2018 and December 31, 2017, respectively. |
Consolidated Balance Sheet (Un3
Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Held-to-maturity securities, Fair Value | $ 43,408 | $ 43,723 |
Securities, pledged as collateral | 571 | 689 |
Mortgage loans, carried at fair value | $ 3,271 | $ 3,534 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, share-authorized (actual number of shares) | 4,000,000,000 | 4,000,000,000 |
Common stock, shares issued (actual number of shares) | 2,125,725,742 | 2,125,725,742 |
Treasury stock, shares (actual number of shares) | 476,747,913 | 470,080,231 |
Time deposits greater than 250,000 | $ 7,800 | $ 6,800 |
Available-for-Sale Securities [Member] | ||
Securities, pledged as collateral | 571 | 689 |
Trading Securities [Member] | ||
Securities, pledged as collateral | $ 829 | $ 238 |
Consolidated Statement of Incom
Consolidated Statement of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest Income | ||
Loans | $ 3,095 | $ 2,790 |
Loans held for sale | 33 | 35 |
Investment securities | 613 | 530 |
Other interest income | 50 | 38 |
Total interest income | 3,791 | 3,393 |
Interest Expense | ||
Deposits | 345 | 199 |
Short-term borrowings | 75 | 24 |
Long-term debt | 203 | 190 |
Total interest expense | 623 | 413 |
Net interest income | 3,168 | 2,980 |
Provision for credit losses | 341 | 345 |
Net interest income after provision for credit losses | 2,827 | 2,635 |
Noninterest Income | ||
Credit and debit card revenue | 324 | 299 |
Corporate payment products revenue | 154 | 137 |
Merchant processing services | 363 | 354 |
ATM processing services | 79 | 71 |
Trust and investment management fees | 398 | 368 |
Deposit service charges | 182 | 172 |
Treasury management fees | 150 | 153 |
Commercial products revenue | 220 | 247 |
Mortgage banking revenue | 184 | 207 |
Investment products fees | 46 | 42 |
Realized securities gains (losses), net | 5 | 29 |
Other | 167 | 180 |
Total noninterest income | 2,272 | 2,259 |
Noninterest Expense | ||
Compensation | 1,523 | 1,391 |
Employee benefits | 330 | 301 |
Net occupancy and equipment | 265 | 247 |
Professional services | 83 | 96 |
Marketing and business development | 97 | 90 |
Technology and communications | 235 | 217 |
Postage, printing and supplies | 80 | 81 |
Other intangibles | 39 | 44 |
Other | 403 | 442 |
Total noninterest expense | 3,055 | 2,909 |
Income before income taxes | 2,044 | 1,985 |
Applicable income taxes | 362 | 499 |
Net income | 1,682 | 1,486 |
Net (income) loss attributable to noncontrolling interests | (7) | (13) |
Net income attributable to U.S. Bancorp | 1,675 | 1,473 |
Net income applicable to U.S. Bancorp common shareholders | $ 1,597 | $ 1,387 |
Earnings per common share | $ 0.97 | $ 0.82 |
Diluted earnings per common share | 0.96 | 0.82 |
Dividends declared per common share | $ 0.30 | $ 0.28 |
Average common shares outstanding | 1,652 | 1,694 |
Average diluted common shares outstanding | 1,657 | 1,701 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,682 | $ 1,486 |
Other Comprehensive Income (Loss) | ||
Changes in unrealized gains and losses on investment securities available-for-sale | (776) | 127 |
Changes in unrealized gains and losses on derivative hedges | 86 | 7 |
Foreign currency translation | 13 | 10 |
Changes in unrealized gains and losses on retirement plans | (3) | |
Reclassification to earnings of realized gains and losses | 29 | 11 |
Income taxes related to other comprehensive income (loss) | 162 | (59) |
Total other comprehensive income (loss) | (489) | 96 |
Comprehensive income | 1,193 | 1,582 |
Comprehensive (income) loss attributable to noncontrolling interests | (7) | (13) |
Comprehensive income attributable to U.S. Bancorp | $ 1,186 | $ 1,569 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Preferred Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total U.S. Bancorp Shareholders' Equity [Member] | Noncontrolling Interests [Member] | |
Beginning Balance at Dec. 31, 2016 | $ 47,933 | $ 21 | $ 5,501 | $ 8,440 | $ 50,151 | $ (15,280) | $ (1,535) | $ 47,298 | $ 635 | |
Shares, Beginning Balance at Dec. 31, 2016 | 1,697 | |||||||||
Net income (loss) | 1,486 | 1,473 | 1,473 | 13 | ||||||
Other comprehensive income (loss) | 96 | 96 | 96 | |||||||
Preferred stock dividends | (69) | (69) | (69) | |||||||
Common stock dividends | (476) | (476) | (476) | |||||||
Issuance of preferred stock | 993 | 993 | 993 | |||||||
Call of preferred stock | (1,085) | (1,075) | (10) | (1,085) | ||||||
Issuance of common and treasury stock | 113 | (107) | 220 | 113 | ||||||
Issuance of common and treasury stock, shares | 6 | |||||||||
Purchase of treasury stock | (600) | (600) | (600) | |||||||
Purchase of treasury stock, shares | (11) | |||||||||
Distributions to noncontrolling interests | (13) | (13) | ||||||||
Stock option and restricted stock grants | 55 | 55 | 55 | |||||||
Ending Balance at Mar. 31, 2017 | 48,433 | $ 21 | 5,419 | 8,388 | 51,069 | (15,660) | (1,439) | 47,798 | 635 | |
Shares, Ending Balance at Mar. 31, 2017 | 1,692 | |||||||||
Beginning Balance at Dec. 31, 2017 | 49,666 | $ 21 | 5,419 | 8,464 | 54,142 | (17,602) | (1,404) | 49,040 | 626 | |
Shares, Beginning Balance at Dec. 31, 2017 | 1,656 | |||||||||
Change in accounting principles at Dec. 31, 2017 | [1] | (1) | 299 | (300) | (1) | |||||
Net income (loss) | 1,682 | 1,675 | 1,675 | 7 | ||||||
Other comprehensive income (loss) | (489) | (489) | (489) | |||||||
Preferred stock dividends | (70) | (70) | (70) | |||||||
Common stock dividends | (497) | (497) | (497) | |||||||
Issuance of common and treasury stock | 40 | (109) | 149 | 40 | ||||||
Issuance of common and treasury stock, shares | 4 | |||||||||
Purchase of treasury stock | (594) | (594) | (594) | |||||||
Purchase of treasury stock, shares | (11) | |||||||||
Distributions to noncontrolling interests | (7) | (7) | ||||||||
Net other changes in noncontrolling interests | (1) | (1) | ||||||||
Stock option and restricted stock grants | 83 | 83 | 83 | |||||||
Ending Balance at Mar. 31, 2018 | $ 49,812 | $ 21 | $ 5,419 | $ 8,438 | $ 55,549 | $ (18,047) | $ (2,193) | $ 49,187 | $ 625 | |
Shares, Ending Balance at Mar. 31, 2018 | 1,649 | |||||||||
[1] | Includes the impact of the reduced federal statutory tax rate for corporations included in 2017 tax reform legislation, reclassified out of accumulated other comprehensive income and into retained earnings as of the beginning of the period. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities | ||
Net income attributable to U.S. Bancorp | $ 1,675 | $ 1,473 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Provision for credit losses | 341 | 345 |
Depreciation and amortization of premises and equipment | 74 | 73 |
Amortization of intangibles | 39 | 44 |
(Gain) loss on sale of loans held for sale | (62) | (116) |
(Gain) loss on sale of securities and other assets | (78) | (146) |
Loans originated for sale in the secondary market, net of repayments | (7,762) | (7,802) |
Proceeds from sales of loans held for sale | 7,975 | 9,968 |
Other, net | (768) | (649) |
Net cash provided by operating activities | 1,434 | 3,190 |
Investing Activities | ||
Proceeds from sales of available-for-sale investment securities | 944 | 828 |
Proceeds from maturities of held-to-maturity investment securities | 1,598 | 2,085 |
Proceeds from maturities of available-for-sale investment securities | 2,771 | 2,786 |
Purchases of held-to-maturity investment securities | (3,310) | (2,500) |
Purchases of available-for-sale investment securities | (2,068) | (4,253) |
Net decrease (increase) in loans outstanding | 1,417 | (250) |
Proceeds from sales of loans | 330 | 439 |
Purchases of loans | (1,135) | (932) |
Other, net | (465) | 76 |
Net cash provided by (used in) investing activities | 82 | (1,721) |
Financing Activities | ||
Net (decrease) increase in deposits | (2,689) | 2,283 |
Net increase (decrease) in short-term borrowings | 1,052 | (1,780) |
Proceeds from issuance of long-term debt | 2,110 | 3,162 |
Principal payments or redemption of long-term debt | (1,137) | (473) |
Proceeds from issuance of preferred stock | 993 | |
Proceeds from issuance of common stock | 40 | 112 |
Repurchase of common stock | (588) | (594) |
Cash dividends paid on preferred stock | (64) | (80) |
Cash dividends paid on common stock | (499) | (478) |
Net cash (used in) provided by financing activities | (1,775) | 3,145 |
Change in cash and due from banks | (259) | 4,614 |
Cash and due from banks at beginning of period | 19,505 | 15,705 |
Cash and due from banks at end of period | $ 19,246 | $ 20,319 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q Form 10-K Accounting policies for the lines of business are generally the same as those used in preparation of the consolidated financial statements with respect to activities specifically attributable to each business line. However, the preparation of business line results requires management to establish methodologies to allocate funding costs, expenses and other financial elements to each line of business. Table 11 “Line of Business Financial Performance” included in Management’s Discussion and Analysis provides details of segment results. This information is incorporated by reference into these Notes to Consolidated Financial Statements. |
Accounting Changes
Accounting Changes | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes | Note 2 Accounting Changes Revenue Recognition Effective January 1, 2018, the Company adopted accounting guidance, issued by the Financial Accounting Standards Board (“FASB”) in May 2014, clarifying the principles for recognizing revenue from certain contracts with customers. The guidance does not apply to revenue associated with financial instruments, such as loans and securities. The adoption of this guidance was not material to the Company’s financial statements. Financial Instruments—Hedge Accounting Effective January 1, 2018, the Company adopted accounting guidance, issued by the FASB in August 2017, related to hedge accounting. This guidance makes targeted changes to the hedge accounting model to simplify the application of hedge accounting and more closely align financial reporting to an entity’s risk management activities. This guidance expands risk management strategies that qualify for hedge accounting, simplifies certain effectiveness assessment requirements, eliminates separate reporting of ineffectiveness and changes certain presentation and disclosure requirements for hedge accounting activities. Upon adoption, the Company elected to apply the guidance to existing fair value hedges. The Company also elected upon adoption to transfer $1.5 billion of its fixed rate residential agency mortgage-backed securities from the held-to-maturity available-for-sale Income Taxes Effective January 1, 2018, the Company adopted accounting guidance, issued by the FASB in February 2018, which allows entities to reclassify from accumulated other comprehensive income to retained earnings, the impact of the reduced federal statutory tax rate for corporations included in the Tax Cuts and Jobs Act (“tax reform”) enacted by Congress in late 2017. Upon adoption, the Company increased retained earnings and reduced accumulated other comprehensive income by $300 million. After adoption, the income tax effect on items included in accumulated other comprehensive income is consistent with the related deferred tax balances, and the income tax effect will be released from accumulated other comprehensive income and the related deferred tax balances when the applicable tax differences reverse. Accounting for Leases In February 2016, the FASB issued accounting guidance, effective for the Company on January 1, 2019, related to the accounting for leases. This guidance requires lessees to recognize all leases on the Consolidated Balance Sheet as lease assets and lease liabilities based primarily on the present value of future lease payments. Lessor accounting is largely unchanged. A modified retrospective approach is required at adoption which requires all prior periods presented in the financial statements to be restated, with a cumulative effect adjustment to retained earnings as of the beginning of the earliest period presented. This guidance also requires additional disclosures regarding leasing arrangements. The Company expects the adoption of this guidance will not be material to its financial statements. Financial Instruments—Credit Losses In June 2016, the FASB issued accounting guidance, effective for the Company no later than January 1, 2020, related to the impairment of financial instruments. This guidance changes existing impairment recognition to a model that is based on expected losses rather than incurred losses, which is intended to result in more timely recognition of credit losses. This guidance is also intended to reduce the complexity of current accounting guidance by decreasing the number of credit impairment models that entities use to account for debt instruments. A modified retrospective approach is required at adoption with a cumulative effect adjustment to retained earnings as of the adoption date. The guidance also requires additional credit quality disclosures for loans. The Company is currently evaluating the impact of this guidance on its financial statements, and expects its allowance for credit losses to increase upon adoption. The extent of this increase will continue to be evaluated and will depend on economic conditions and the composition of the Company’s loan portfolio at the time of adoption. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 3 Investment Securities The Company’s held-to-maturity available-for-sale The amortized cost, other-than-temporary impairment recorded in other comprehensive income (loss), gross unrealized holding gains and losses, and fair value of held-to-maturity available-for-sale March 31, 2018 December 31, 2017 Unrealized Losses Unrealized Losses (Dollars in Millions) Amortized Unrealized Other-than- Other (b) Fair Value Amortized Unrealized Other-than- Other (b) Fair Value Held-to-maturity U.S. Treasury and agencies $ 5,153 $ 2 $ – $ (181 ) $ 4,974 $ 5,181 $ 5 $ – $ (120 ) $ 5,066 Residential agency mortgage-backed securities 39,426 37 – (1,066 ) 38,397 39,150 48 – (579 ) 38,619 Asset-backed securities Collateralized debt obligations/Collateralized loan obligations – 2 – – 2 – 4 – – 4 Other 6 1 – – 7 6 2 – – 8 Obligations of state and political subdivisions 6 1 – – 7 6 1 – – 7 Obligations of foreign governments 9 – – – 9 7 – – – 7 Other 12 – – – 12 12 – – – 12 Total held-to-maturity $ 44,612 $ 43 $ – $ (1,247 ) $ 43,408 $ 44,362 $ 60 $ – $ (699 ) $ 43,723 Available-for-sale U.S. Treasury and agencies $ 22,423 $ 1 $ – $ (458 ) $ 21,966 $ 23,586 $ 3 $ – $ (288 ) $ 23,301 Mortgage-backed securities Residential agency 39,268 143 – (968 ) 38,443 38,450 152 – (571 ) 38,031 Commercial agency 7 – – – 7 6 – – – 6 Other asset-backed securities 408 7 – – 415 413 6 – – 419 Obligations of state and political subdivisions 6,380 51 – (137 ) 6,294 6,240 147 – (29 ) 6,358 Other – – – – – 22 – – – 22 Total available-for-sale $ 68,486 $ 202 $ – $ (1,563 ) $ 67,125 $ 68,717 $ 308 $ – $ (888 ) $ 68,137 (a) Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired. (b) Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired. The weighted-average maturity of the available-for-sale held-to-maturity For amortized cost, fair value and yield by maturity date of held-to-maturity available-for-sale Investment securities with a fair value of $8.0 billion at March 31, 2018, and $12.8 billion at December 31, 2017, were pledged to secure public, private and trust deposits, repurchase agreements and for other purposes required by contractual obligation or law. Included in these amounts were securities where the Company and certain counterparties have agreements granting the counterparties the right to sell or pledge the securities. Investment securities securing these types of arrangements had a fair value of $571 million at March 31, 2018, and $689 million at December 31, 2017. The following table provides information about the amount of interest income from taxable and non-taxable Three Months Ended March 31 (Dollars in Millions) 2018 2017 Taxable $ 561 $ 483 Non-taxable 52 47 Total interest income from investment securities $ 613 $ 530 The following table provides information about the amount of gross gains and losses realized through the sales of available-for-sale Three Months Ended March 31 (Dollars in Millions) 2018 2017 Realized gains $ 5 $ 47 Realized losses – (18 ) Net realized gains (losses) $ 5 $ 29 Income tax (benefit) on net realized gains (losses) $ 1 $ 11 The Company conducts a regular assessment of its investment securities with unrealized losses to determine whether investment securities are other-than-temporarily impaired considering, among other factors, the nature of the investment securities, the credit ratings or financial condition of the issuer, the extent and duration of the unrealized loss, expected cash flows of underlying collateral, the existence of any government or agency guarantees, market conditions and whether the Company intends to sell or it is more likely than not the Company will be required to sell the investment securities. The Company determines other-than-temporary impairment recorded in earnings for investment securities not intended to be sold by estimating the future cash flows of each individual investment security, using market information where available, and discounting the cash flows at the original effective rate of the investment security. Other-than-temporary impairment recorded in other comprehensive income (loss) is measured as the difference between that discounted amount and the fair value of each investment security. The total amount of other-than-temporary impairment recorded was immaterial for the three months ended March 31, 2018 and 2017. At March 31, 2018, certain investment securities had a fair value below amortized cost. The following table shows the gross unrealized losses and fair value of the Company’s investment securities with unrealized losses, aggregated by investment category and length of time the individual investment securities have been in continuous unrealized loss positions, at March 31, 2018: Less Than 12 Months 12 Months or Greater Total (Dollars in Millions) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Held-to-maturity U.S. Treasury and agencies $ 2,261 $ (42 ) $ 2,557 $ (139 ) $ 4,818 $ (181 ) Residential agency mortgage-backed securities 19,957 (448 ) 14,298 (618 ) 34,255 (1,066 ) Other asset-backed securities – – 2 – 2 – Other – – 12 – 12 – Total held-to-maturity $ 22,218 $ (490 ) $ 16,869 $ (757 ) $ 39,087 $ (1,247 ) Available-for-sale U.S. Treasury and agencies $ 13,116 $ (253 ) $ 8,747 $ (205 ) $ 21,863 $ (458 ) Residential agency mortgage-backed securities 11,235 (236 ) 18,977 (732 ) 30,212 (968 ) Commercial agency mortgage-backed securities 6 – – – 6 – Obligations of state and political subdivisions 2,437 (46 ) 1,249 (91 ) 3,686 (137 ) Total available-for-sale $ 26,794 $ (535 ) $ 28,973 $ (1,028 ) $ 55,767 $ (1,563 ) The Company does not consider these unrealized losses to be credit-related. These unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. A substantial portion of investment securities that have unrealized losses are either U.S. Treasury and agencies, agency mortgage-backed or state and political securities. In general, the issuers of the investment securities are contractually prohibited from prepayment at less than par, and the Company did not pay significant purchase premiums for these investment securities. At March 31, 2018, the Company had no plans to sell investment securities with unrealized losses, and believes it is more likely than not it would not be required to sell such investment securities before recovery of their amortized cost. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | Note 4 Loans and Allowance for Credit Losses The composition of the loan portfolio, disaggregated by class and underlying specific portfolio type, was as follows: March 31, 2018 December 31, 2017 (Dollars in Millions) Amount Percent Amount Percent Commercial Commercial $ 92,511 33.3 % $ 91,958 32.8 % Lease financing 5,586 2.0 5,603 2.0 Total commercial 98,097 35.3 97,561 34.8 Commercial Real Estate Commercial mortgages 28,982 10.4 29,367 10.5 Construction and development 11,158 4.0 11,096 4.0 Total commercial real estate 40,140 14.4 40,463 14.5 Residential Mortgages Residential mortgages 47,583 17.1 46,685 16.6 Home equity loans, first liens 12,894 4.7 13,098 4.7 Total residential mortgages 60,477 21.8 59,783 21.3 Credit Card 20,901 7.5 22,180 7.9 Other Retail Retail leasing 8,048 2.9 7,988 2.8 Home equity and second mortgages 16,030 5.8 16,327 5.8 Revolving credit 3,061 1.1 3,183 1.1 Installment 9,089 3.3 8,989 3.2 Automobile 18,762 6.7 18,934 6.8 Student (a) 327 .1 1,903 .7 Total other retail 55,317 19.9 57,324 20.4 Total loans, excluding covered loans 274,932 98.9 277,311 98.9 Covered Loans 2,979 1.1 3,121 1.1 Total loans $ 277,911 100.0 % $ 280,432 100.0 % (a) Effective March 31, 2018, the Company transferred all of its federally guaranteed student loans to loans held for sale. The Company had loans of $83.9 billion at March 31, 2018, and $83.3 billion at December 31, 2017, pledged at the Federal Home Loan Bank, and loans of $68.4 billion at March 31, 2018, and $68.0 billion at December 31, 2017, pledged at the Federal Reserve Bank. Originated loans are reported at the principal amount outstanding, net of unearned interest and deferred fees and costs, and any partial charge-offs recorded. Net unearned interest and deferred fees and costs amounted to $826 million at March 31, 2018 and $830 million at December 31, 2017. All purchased loans and related indemnification assets are recorded at fair value at the date of purchase. The Company evaluates purchased loans for impairment at the date of purchase in accordance with applicable authoritative accounting guidance. Purchased loans with evidence of credit deterioration since origination for which it is probable that all contractually required payments will not be collected are considered “purchased impaired loans.” All other purchased loans are considered “purchased nonimpaired loans.” Changes in the accretable balance for purchased impaired loans were as follows: Three Months Ended March 31 (Dollars in Millions) 2018 2017 Balance at beginning of period $ 350 $ 698 Accretion (91 ) (90 ) Disposals (12 ) (23 ) Reclassifications from nonaccretable difference (a) 10 53 Other – (1 ) Balance at end of period $ 257 $ 637 (a) Primarily relates to changes in expected credit performance. Allowance for Credit Losses The allowance for credit losses is established for probable and estimable losses incurred in the Company’s loan and lease portfolio, including unfunded credit commitments, and includes certain amounts that do not represent loss exposure to the Company because those losses are recoverable under loss sharing agreements with the Federal Deposit Insurance Corporation (“FDIC”). The allowance for credit losses is increased through provisions charged to earnings and reduced by net charge-offs. Management evaluates the adequacy of the allowance for incurred losses on a quarterly basis. The allowance recorded for loans in the commercial lending segment is based on reviews of individual credit relationships and considers the migration analysis of commercial lending segment loans and actual loss experience. For each loan type, this historical loss experience is adjusted as necessary to consider any relevant changes in portfolio composition, lending policies, underwriting standards, risk management practices or economic conditions. The results of the analysis are evaluated quarterly to confirm the selected loss experience is appropriate for each commercial loan type. The allowance recorded for impaired loans greater than $5 million in the commercial lending segment is based on an individual loan analysis utilizing expected cash flows discounted using the original effective interest rate, the observable market price of the loan, or the fair value of the collateral, less selling costs, for collateral-dependent loans, rather than the migration analysis. The allowance recorded for all other commercial lending segment loans is determined on a homogenous pool basis and includes consideration of product mix, risk characteristics of the portfolio, delinquency status, bankruptcy experience, portfolio growth and historical losses, adjusted for current trends. The Company also considers the impacts of any loan modifications made to commercial lending segment loans and any subsequent payment defaults to its expectations of cash flows, principal balance, and current expectations about the borrower’s ability to pay in determining the allowance for credit losses. The allowance recorded for Troubled Debt Restructuring (“TDR”) loans and purchased impaired loans in the consumer lending segment is determined on a homogenous pool basis utilizing expected cash flows discounted using the original effective interest rate of the pool, or the prior quarter effective rate, respectively. The allowance for collateral-dependent loans in the consumer lending segment is determined based on the fair value of the collateral less costs to sell. The allowance recorded for all other consumer lending segment loans is determined on a homogenous pool basis and includes consideration of product mix, risk characteristics of the portfolio, bankruptcy experience, delinquency status, refreshed loan-to-value The allowance for the covered loan segment is evaluated each quarter in a manner similar to that described for non-covered In addition, subsequent payment defaults on loan modifications considered TDRs are considered in the underlying factors used in the determination of the appropriateness of the allowance for credit losses. For each loan segment, the Company estimates future loan charge-offs through a variety of analysis, trends and underlying assumptions. With respect to the commercial lending segment, TDRs may be collectively evaluated for impairment where observed performance history, including defaults, is a primary driver of the loss allocation. For commercial TDRs individually evaluated for impairment, attributes of the borrower are the primary factors in determining the allowance for credit losses. However, historical loss experience is also incorporated into the allowance methodology applied to this category of loans. With respect to the consumer lending segment, performance of the portfolio, including defaults on TDRs, is considered when estimating future cash flows. The Company’s methodology for determining the appropriate allowance for credit losses for each loan segment also considers the imprecision inherent in the methodologies used. As a result, in addition to the amounts determined under the methodologies described above, management also considers the potential impact of other qualitative factors which include, but are not limited to, economic factors; geographic and other concentration risks; delinquency and nonaccrual trends; current business conditions; changes in lending policy, underwriting standards and other relevant business practices; results of internal review; and the regulatory environment. The consideration of these items results in adjustments to allowance amounts included in the Company’s allowance for credit losses for each of the above loan segments. The Company also assesses the credit risk associated with off-balance off-balance Activity in the allowance for credit losses by portfolio class was as follows: (Dollars in Millions) Commercial Commercial Residential Credit Other Total Loans, Covered Total Balance at December 31, 2017 $ 1,372 $ 831 $ 449 $ 1,056 $ 678 $ 4,386 $ 31 $ 4,417 Add Provision for credit losses 74 (8 ) 1 219 60 346 (5 ) 341 Deduct Loans charged-off 94 3 13 248 95 453 – 453 Less recoveries of loans charged-off (34 ) (6 ) (6 ) (37 ) (29 ) (112 ) – (112 ) Net loans charged-off 60 (3 ) 7 211 66 341 – 341 Other changes (a) – – – – – – – – Balance at March 31, 2018 $ 1,386 $ 826 $ 443 $ 1,064 $ 672 $ 4,391 $ 26 $ 4,417 Balance at December 31, 2016 $ 1,450 $ 812 $ 510 $ 934 $ 617 $ 4,323 $ 34 $ 4,357 Add Provision for credit losses 54 28 (13 ) 211 65 345 – 345 Deduct Loans charged-off 96 3 17 212 89 417 – 417 Less recoveries of loans charged-off (21 ) (5 ) (5 ) (22 ) (29 ) (82 ) – (82 ) Net loans charged-off 75 (2 ) 12 190 60 335 – 335 Other changes (a) – – – – – – (1 ) (1 ) Balance at March 31, 2017 $ 1,429 $ 842 $ 485 $ 955 $ 622 $ 4,333 $ 33 $ 4,366 (a) Includes net changes in credit losses to be reimbursed by the FDIC and reductions in the allowance for covered loans where the reversal of a previously recorded allowance was offset by an associated decrease in the indemnification asset, and the impact of any loan sales. Additional detail of the allowance for credit losses by portfolio class was as follows: (Dollars in Millions) Commercial Commercial Residential Credit Other Total Loans, Covered Total Allowance Balance at March 31, 2018 Related to Loans individually evaluated for impairment (a) $ 28 $ 3 $ – $ – $ – $ 31 $ – $ 31 TDRs collectively evaluated for impairment 12 5 138 60 16 231 – 231 Other loans collectively evaluated for impairment 1,346 815 305 1,004 656 4,126 – 4,126 Loans acquired with deteriorated credit quality – 3 – – – 3 26 29 Total allowance for credit losses $ 1,386 $ 826 $ 443 $ 1,064 $ 672 $ 4,391 $ 26 $ 4,417 Allowance Balance at December 31, 2017 Related to Loans individually evaluated for impairment (a) $ 23 $ 4 $ – $ – $ – $ 27 $ – $ 27 TDRs collectively evaluated for impairment 14 4 139 60 19 236 1 237 Other loans collectively evaluated for impairment 1,335 818 310 996 659 4,118 – 4,118 Loans acquired with deteriorated credit quality – 5 – – – 5 30 35 Total allowance for credit losses $ 1,372 $ 831 $ 449 $ 1,056 $ 678 $ 4,386 $ 31 $ 4,417 (a) Represents the allowance for credit losses related to loans greater than $5 million classified as nonperforming or TDRs. Additional detail of loan balances by portfolio class was as follows: (Dollars in Millions) Commercial Commercial Residential Credit Other Total Loans, Covered Total March 31, 2018 Loans individually evaluated for impairment (a) $ 327 $ 50 $ – $ – $ – $ 377 $ – $ 377 TDRs collectively evaluated for impairment 154 151 3,339 234 181 4,059 36 4,095 Other loans collectively evaluated for impairment 97,616 39,881 57,137 20,667 55,136 270,437 977 271,414 Loans acquired with deteriorated credit quality – 58 1 – – 59 1,966 2,025 Total loans $ 98,097 $ 40,140 $ 60,477 $ 20,901 $ 55,317 $ 274,932 $ 2,979 $ 277,911 December 31, 2017 Loans individually evaluated for impairment (a) $ 337 $ 71 $ – $ – $ – $ 408 $ – $ 408 TDRs collectively evaluated for impairment 148 145 3,524 230 186 4,233 36 4,269 Other loans collectively evaluated for impairment 97,076 40,174 56,258 21,950 57,138 272,596 1,073 273,669 Loans acquired with deteriorated credit quality – 73 1 – – 74 2,012 2,086 Total loans $ 97,561 $ 40,463 $ 59,783 $ 22,180 $ 57,324 $ 277,311 $ 3,121 $ 280,432 (a) Represents loans greater than $5 million classified as nonperforming or TDRs. (b) Includes expected reimbursements from the FDIC under loss sharing agreements. Credit Quality The credit quality of the Company’s loan portfolios is assessed as a function of net credit losses, levels of nonperforming assets and delinquencies, and credit quality ratings as defined by the Company. For all loan classes, loans are considered past due based on the number of days delinquent except for monthly amortizing loans which are classified delinquent based upon the number of contractually required payments not made (for example, two missed payments is considered 30 days delinquent). When a loan is placed on nonaccrual status, unpaid accrued interest is reversed, reducing interest income in the current period. Commercial lending segment loans are generally placed on nonaccrual status when the collection of principal and interest has become 90 days past due or is otherwise considered doubtful. Commercial lending segment loans are generally fully or partially charged down to the fair value of the collateral securing the loan, less costs to sell, when the loan is placed on nonaccrual. Consumer lending segment loans are generally charged-off 1-4 charge-off 1-4 family charged-off. charged-off 1-4 charged-off charged-off charge-off. For all loan classes, interest payments received on nonaccrual loans are generally recorded as a reduction to a loan’s carrying amount while a loan is on nonaccrual and are recognized as interest income upon payoff of the loan. However, interest income may be recognized for interest payments if the remaining carrying amount of the loan is believed to be collectible. In certain circumstances, loans in any class may be restored to accrual status, such as when a loan has demonstrated sustained repayment performance or no amounts are past due and prospects for future payment are no longer in doubt; or when the loan becomes well secured and is in the process of collection. Loans where there has been a partial charge-off charged-off) Covered loans not considered to be purchased impaired are evaluated for delinquency, nonaccrual status and charge-off The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to accrue interest, and those that are nonperforming: Accruing (Dollars in Millions) Current 30-89 Days 90 Days or Nonperforming Total March 31, 2018 Commercial $ 97,494 $ 241 $ 61 $ 301 $ 98,097 Commercial real estate 39,979 38 4 119 40,140 Residential mortgages (a) 59,769 146 132 430 60,477 Credit card 20,356 275 270 – 20,901 Other retail 54,730 320 99 168 55,317 Total loans, excluding covered loans 272,328 1,020 566 1,018 274,932 Covered loans 2,790 47 136 6 2,979 Total loans $ 275,118 $ 1,067 $ 702 $ 1,024 $ 277,911 December 31, 2017 Commercial $ 97,005 $ 250 $ 57 $ 249 $ 97,561 Commercial real estate 40,279 36 6 142 40,463 Residential mortgages (a) 59,013 198 130 442 59,783 Credit card 21,593 302 284 1 22,180 Other retail 56,685 376 95 168 57,324 Total loans, excluding covered loans 274,575 1,162 572 1,002 277,311 Covered loans 2,917 50 148 6 3,121 Total loans $ 277,492 $ 1,212 $ 720 $ 1,008 $ 280,432 (a) At March 31, 2018, $376 million of loans 30–89 days past due and $1.9 billion of loans 90 days or more past due purchased from Government National Mortgage Association (“GNMA”) mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current, compared with $385 million and $1.9 billion at December 31, 2017, respectively. At March 31, 2018, the amount of foreclosed residential real estate held by the Company, and included in OREO, was $138 million ($118 million excluding covered assets), compared with $156 million ($135 million excluding covered assets) at December 31, 2017. These amounts exclude $243 million and $267 million at March 31, 2018 and December 31, 2017, respectively, of foreclosed residential real estate related to mortgage loans whose payments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. In addition, the amount of residential mortgage loans secured by residential real estate in the process of foreclosure at March 31, 2018 and December 31, 2017, was $1.7 billion, of which $1.3 billion related to loans purchased from Government National Mortgage Association (“GNMA”) mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. The Company classifies its loan portfolios using internal credit quality ratings on a quarterly basis. These ratings include pass, special mention and classified, and are an important part of the Company’s overall credit risk management process and evaluation of the allowance for credit losses. Loans with a pass rating represent those loans not classified on the Company’s rating scale for problem credits, as minimal credit risk has been identified. Special mention loans are those loans that have a potential weakness deserving management’s close attention. Classified loans are those loans where a well-defined weakness has been identified that may put full collection of contractual cash flows at risk. It is possible that others, given the same information, may reach different reasonable conclusions regarding the credit quality rating classification of specific loans. The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating: Criticized (Dollars in Millions) Pass Special Classified (a) Total Total March 31, 2018 Commercial $ 95,757 $ 1,290 $ 1,050 $ 2,340 $ 98,097 Commercial real estate 38,990 556 594 1,150 40,140 Residential mortgages (b) 59,855 18 604 622 60,477 Credit card 20,631 – 270 270 20,901 Other retail 55,005 10 302 312 55,317 Total loans, excluding covered loans 270,238 1,874 2,820 4,694 274,932 Covered loans 2,932 – 47 47 2,979 Total loans $ 273,170 $ 1,874 $ 2,867 $ 4,741 $ 277,911 Total outstanding commitments $ 586,609 $ 3,129 $ 3,616 $ 6,745 $ 593,354 December 31, 2017 Commercial $ 95,297 $ 1,130 $ 1,134 $ 2,264 $ 97,561 Commercial real estate 39,162 648 653 1,301 40,463 Residential mortgages (b) 59,141 16 626 642 59,783 Credit card 21,895 – 285 285 22,180 Other retail 57,009 6 309 315 57,324 Total loans, excluding covered loans 272,504 1,800 3,007 4,807 277,311 Covered loans 3,072 – 49 49 3,121 Total loans $ 275,576 $ 1,800 $ 3,056 $ 4,856 $ 280,432 Total outstanding commitments $ 584,072 $ 3,142 $ 3,987 $ 7,129 $ 591,201 (a) Classified rating on consumer loans primarily based on delinquency status. (b) At March 31, 2018, $1.9 billion of GNMA loans 90 days or more past due and $1.6 billion of restructured GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs were classified with a pass rating, compared with $1.9 billion and $1.7 billion at December 31, 2017, respectively. For all loan classes, a loan is considered to be impaired when, based on current events or information, it is probable the Company will be unable to collect all amounts due per the contractual terms of the loan agreement. Impaired loans include all nonaccrual and TDR loans. For all loan classes, interest income on TDR loans is recognized under the modified terms and conditions if the borrower has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles. Interest income is generally not recognized on other impaired loans until the loan is paid off. However, interest income may be recognized for interest payments if the remaining carrying amount of the loan is believed to be collectible. Factors used by the Company in determining whether all principal and interest payments due on commercial and commercial real estate loans will be collected and, therefore, whether those loans are impaired include, but are not limited to, the financial condition of the borrower, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on industry, geographic location and certain financial ratios. The evaluation of impairment on residential mortgages, credit card loans and other retail loans is primarily driven by delinquency status of individual loans or whether a loan has been modified, and considers any government guarantee where applicable. Individual covered loans, whose future losses are covered by loss sharing agreements with the FDIC that substantially reduce the risk of credit losses to the Company, are evaluated for impairment and accounted for in a manner consistent with the class of loan they would have been included in had the loss sharing coverage not been in place. A summary of impaired loans, which include all nonaccrual and TDR loans, by portfolio class was as follows: (Dollars in Millions) Period-end Unpaid Valuation Commitments March 31, 2018 Commercial $ 540 $ 833 $ 42 $ 214 Commercial real estate 254 573 9 – Residential mortgages 1,881 2,118 109 1 Credit card 234 234 60 – Other retail 299 383 19 4 Total loans, excluding GNMA and covered loans 3,208 4,141 239 219 Loans purchased from GNMA mortgage pools 1,566 1,566 30 – Covered loans 38 46 1 – Total $ 4,812 $ 5,753 $ 270 $ 219 December 31, 2017 Commercial $ 550 $ 915 $ 44 $ 199 Commercial real estate 280 596 11 – Residential mortgages 1,946 2,339 116 1 Credit card 230 230 60 – Other retail 302 400 22 4 Total loans, excluding GNMA and covered loans 3,308 4,480 253 204 Loans purchased from GNMA mortgage pools 1,681 1,681 25 – Covered loans 38 44 1 – Total $ 5,027 $ 6,205 $ 279 $ 204 (a) Substantially all loans classified as impaired at March 31, 2018 and December 31, 2017, had an associated allowance for credit losses. Additional information on impaired loans follows: 2018 2017 Three Months Ended March 31 (Dollars in Millions) Average Interest Average Interest Commercial $ 545 $ 1 $ 817 $ 1 Commercial real estate 267 2 278 2 Residential mortgages 1,914 20 2,240 29 Credit card 232 1 225 1 Other retail 300 4 280 4 Total loans, excluding GNMA and covered loans 3,258 28 3,840 37 Loans purchased from GNMA mortgage pools 1,624 12 1,646 18 Covered loans 38 – 36 – Total $ 4,920 $ 40 $ 5,522 $ 55 Troubled Debt Restructurings In certain circumstances, the Company may modify the terms of a loan to maximize the collection of amounts due when a borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term. Concessionary modifications are classified as TDRs unless the modification results in only an insignificant delay in payments to be received. The Company recognizes interest on TDRs if the borrower complies with the revised terms and conditions as agreed upon with the Company and has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles, which is generally six months or greater. To the extent a previous restructuring was insignificant, the Company considers the cumulative effect of past restructurings related to the receivable when determining whether a current restructuring is a TDR. Loans classified as TDRs are considered impaired loans for reporting and measurement purposes. The following table provides a summary of loans modified as TDRs during the periods presented by portfolio class: 2018 2017 Three Months Ended March 31 (Dollars in Millions) Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification Commercial 623 $ 81 $ 75 830 $ 137 $ 128 Commercial real estate 29 16 16 23 9 8 Residential mortgages 148 17 16 356 40 41 Credit card 8,546 43 43 9,405 45 46 Other retail 559 11 10 622 11 9 Total loans, excluding GNMA and covered loans 9,905 168 160 11,236 242 232 Loans purchased from GNMA mortgage pools 888 117 113 2,929 387 378 Covered loans – – – 4 1 1 Total loans 10,793 $ 285 $ 273 14,169 $ 630 $ 611 Residential mortgages, home equity and second mortgages, and loans purchased from GNMA mortgage pools in the table above include trial period arrangements offered to customers during the periods presented. The post-modification balances for these loans reflect the current outstanding balance until a permanent modification is made. In addition, the post-modification balances typically include capitalization of unpaid accrued interest and/or fees under the various modification programs. For those loans modified as TDRs during the first quarter of 2018, at March 31, 2018, 50 residential mortgages, 31 home equity and second mortgage loans and 781 loans purchased from GNMA mortgage pools with outstanding balances of $8 million, $3 million and $105 million, respectively, were in a trial period and have estimated post-modification balances of $8 million, $3 million and $101 million, respectively, assuming permanent modification occurs at the end of the trial period. The Company has implemented certain restructuring programs that may result in TDRs. However, many of the Company’s TDRs are also determined on a case-by-case For the commercial lending segment, modifications generally result in the Company working with borrowers on a case-by-case Modifications for the consumer lending segment are generally part of programs the Company has initiated. The Company modifies residential mortgage loans under Federal Housing Administration, United States Department of Veterans Affairs, or its own internal programs. Under these programs, the Company offers qualifying homeowners the opportunity to permanently modify their loan and achieve more affordable monthly payments by providing loan concessions. These concessions may include adjustments to interest rates, conversion of adjustable rates to fixed rates, extension of maturity dates or deferrals of payments, capitalization of accrued interest and/or outstanding advances, or in limited situations, partial forgiveness of loan principal. In most instances, participation in residential mortgage loan restructuring programs requires the customer to complete a short-term trial period. A permanent loan modification is contingent on the customer successfully completing the trial period arrangement, and the loan documents are not modified until that time. The Company reports loans in a trial period arrangement as TDRs and continues to report them as TDRs after the trial period. Credit card and other retail loan TDRs are generally part of distinct restructuring programs providing customers experiencing financial difficulty with modifications whereby balances may be amortized up to 60 months, and generally include waiver of fees and reduced interest rates. In addition, the Company considers secured loans to consumer borrowers that have debt discharged through bankruptcy where the borrower has not reaffirmed the debt to be TDRs. Modifications to loans in the covered segment are similar in nature to that described above for non-covered The following table provides a summary of TDR loans that defaulted (fully or partially charged-off 2018 2017 Three Months Ended March 31 (Dollars in Millions) Number Amount Number Amount Commercial 239 $ 9 173 $ 8 Commercial real estate 8 4 8 2 Residential mortgages 56 4 72 9 Credit card 2,036 9 2,047 9 Other retail 77 1 129 2 Total loans, excluding GNMA and covered loans 2,416 27 2,429 30 Loans purchased from GNMA mortgage pools 232 31 218 30 Covered loans 1 – – – Total loans 2,649 $ 58 2,647 $ 60 In addition to the defaults in the table above, the Company had a total of 275 residential mortgage loans, home equity and second mortgage loans and loans purchased from GNMA mortgage pools for the three months ended March 31, 2018, where borrowers did not successfully complete the trial period arrangement and, therefore, are no longer eligible for a permanent modification under the applicable modification program. These loans had aggregate outstanding balances of $23 million for the three months ended March 31, 2018. Covered Assets Covered assets represent loans and other assets acquired from the FDIC, subject to loss sharing agreements, and include expected reimbursements from the FDIC. The carrying amount of the covered assets consisted of purchased impaired loans, purchased nonimpaired loans and other assets as shown in the following table: March 31, 2018 December 31, 2017 (Dollars in Millions) Purchased Purchased Other Total Purchased Purchased Other Total Residential mortgage loans $ 1,966 $ 374 $ – $ 2,340 $ 2,012 $ 400 $ – $ 2,412 Other retail loans – 137 – 137 – 151 – 151 Losses reimbursable by the FDIC (a) – – 327 327 – – 320 320 Unamortized changes in FDIC asset (b) – – 175 175 – – 238 238 Covered loans 1,966 511 502 2,979 2,012 551 558 3,121 Foreclosed real estate – – 20 20 – – 21 21 Total covered assets $ 1,966 $ 511 $ 522 $ 2,999 $ 2,012 $ 551 $ 579 $ 3,142 (a) Relates to loss sharing agreements with remaining terms up through the fourth quarter of 2019. (b) Represents decreases in expected reimbursements by the FDIC as a result of decreases in expected losses on the covered loans. These amounts are amortized as a reduction in interest income on covered loans over the shorter of the expected life of the respective covered loans or the remaining contractual term of the indemnification agreements. Interest income is recognized on purchased impaired loans through accretion of the difference between the carrying amount of those loans and their expected cash flows. The initial determination of the fair value of the purchased loans includes the impact of expected credit losses and, therefore, no allowance for credit losses is recorded at the purchase date. To the extent credit deterioration occurs after the date of acquisition, the Company records an allowance for credit losses. |
Accounting for Transfers and Se
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities | Note 5 Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities The Company transfers financial assets in the normal course of business. The majority of the Company’s financial asset transfers are residential mortgage loan sales primarily to government-sponsored enterprises (“GSEs”), transfers of tax-advantaged For loans sold under participation agreements, the Company also considers whether the terms of the loan participation agreement meet the accounting definition of a participating interest. With the exception of servicing and certain performance-based guarantees, the Company’s continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses. Any gain or loss on sale depends on the previous carrying amount of the transferred financial assets, the consideration received, and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests that continue to be held by the Company are initially recognized at fair value. For further information on mortgage servicing rights (“MSRs”), refer to Note 6. On a limited basis, the Company may acquire and package high-grade corporate bonds for select corporate customers, in which the Company generally has no continuing involvement with these transactions. Additionally, the Company is an authorized GNMA issuer and issues GNMA securities on a regular basis. The Company has no other asset securitizations or similar asset-backed financing arrangements that are off-balance The Company also provides financial support primarily through the use of waivers of management fees associated with various unconsolidated registered money market funds it manages. The Company provided $6 million of support to the funds during both the three months ended March 31, 2018 and 2017, respectively. The Company is involved in various entities that are considered to be variable interest entities (“VIEs”). The Company’s investments in VIEs are primarily related to investments promoting affordable housing, community development and renewable energy sources. Some of these tax-advantaged tax-advantaged The Company is not required to consolidate VIEs in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary. In such cases, the Company does not have both the power to direct the entities’ most significant activities and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. The Company’s investments in these unconsolidated VIEs are carried in other assets on the Consolidated Balance Sheet. The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are generally carried in other liabilities on the Consolidated Balance Sheet. The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment recorded on the Company’s Consolidated Balance Sheet, net of unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the community-based business and housing projects completely fail and do not meet certain government compliance requirements resulting in recapture of the related tax credits. The following table provides a summary of investments in community development and tax-advantaged (Dollars in Millions) March 31, 2018 December 31, 2017 Investment carrying amount $ 5,637 $ 5,660 Unfunded capital and other commitments 2,648 2,770 Maximum exposure to loss 12,264 12,120 The Company also has noncontrolling financial investments in private investment funds and partnerships considered to be VIEs, which are not consolidated. The Company’s recorded investment in these entities, carried in other assets on the Consolidated Balance Sheet, was approximately $30 million at March 31, 2018 and December 31, 2017. The maximum exposure to loss related to these VIEs was $51 million at March 31, 2018 and December 31, 2017, representing the Company’s investment balance and its unfunded commitments to invest additional amounts. The Company’s individual net investments in unconsolidated VIEs, which exclude any unfunded capital commitments, ranged from less than $1 million to $54 million at March 31, 2018, compared with less than $1 million to $56 million at December 31, 2017. The Company is required to consolidate VIEs in which it has concluded it has a controlling financial interest. The Company sponsors entities to which it transfers its interests in tax-advantaged tax-advantaged The Company also sponsors a conduit to which it previously transferred high-grade investment securities. The Company consolidates the conduit because of its ability to manage the activities of the conduit. At March 31, 2018 and December 31, 2017, $18 million of the held-to-maturity In addition, the Company sponsors a municipal bond securities tender option bond program. The Company controls the activities of the program’s entities, is entitled to the residual returns and provides liquidity and remarketing arrangements to the program. As a result, the Company has consolidated the program’s entities. At March 31, 2018, $2.4 billion of available-for-sale available-for-sale |
Mortgage Servicing Rights
Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2018 | |
Text Block [Abstract] | |
Mortgage Servicing Rights | Note 6 Mortgage Servicing Rights The Company capitalizes MSRs as separate assets when loans are sold and servicing is retained, or if they are purchased from others. The Company carries MSRs at fair value, with changes in the fair value recorded in earnings during the period in which they occur. The Company serviced $235.0 billion of residential mortgage loans for others at March 31, 2018, and $234.7 billion at December 31, 2017, which include subserviced mortgages with no corresponding MSRs asset. The net impact included in mortgage banking revenue of fair value changes of MSRs due to changes in valuation assumptions and derivatives used to economically hedge MSRs were net gains of $19 million and $12 million for the three months ended March 31, 2018 and 2017, respectively. Loan servicing and ancillary fees, not including valuation changes, included in mortgage banking revenue were $190 million and $192 million for the three months ended March 31, 2018 and 2017, respectively. Changes in fair value of capitalized MSRs are summarized as follows: Three Months Ended (Dollars in Millions) 2018 2017 Balance at beginning of period $ 2,645 $ 2,591 Rights purchased 2 2 Rights capitalized 100 122 Changes in fair value of MSRs Due to fluctuations in market interest rates (a) 114 20 Due to revised assumptions or models (b) 24 12 Other changes in fair value (c) (105 ) (105 ) Balance at end of period $ 2,780 $ 2,642 (a) Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits. (b) Includes changes in MSR value not caused by changes in market interest rates, such as changes in cost to service, ancillary income and option adjusted spread, as well as the impact of any model changes. (c) Primarily represents changes due to realization of expected cash flows over time (decay). The estimated sensitivity to changes in interest rates of the fair value of the MSRs portfolio and the related derivative instruments was as follows: March 31, 2018 December 31, 2017 (Dollars in Millions) Down Down Down Up Up Up Down Down Down Up Up Up MSR portfolio $ (433 ) $ (192 ) $ (90 ) $ 77 $ 142 $ 240 $ (520 ) $ (231 ) $ (109 ) $ 95 $ 177 $ 302 Derivative instrument hedges 399 187 90 (82 ) (154 ) (277 ) 453 216 105 (96 ) (184 ) (336 ) Net sensitivity $ (34 ) $ (5 ) $ – $ (5 ) $ (12 ) $ (37 ) $ (67 ) $ (15 ) $ (4 ) $ (1 ) $ (7 ) $ (34 ) The fair value of MSRs and their sensitivity to changes in interest rates is influenced by the mix of the servicing portfolio and characteristics of each segment of the portfolio. The Company’s servicing portfolio consists of the distinct portfolios of government-insured mortgages, conventional mortgages and Housing Finance Agency (“HFA”) mortgages. The servicing portfolios are predominantly comprised of fixed-rate agency loans with limited adjustable-rate or jumbo mortgage loans. The HFA servicing portfolio is comprised of loans originated under state and local housing authority program guidelines which assist purchases by first-time or low- A summary of the Company’s MSRs and related characteristics by portfolio was as follows: March 31, 2018 December 31, 2017 (Dollars in Millions) HFA Government Conventional (c) Total HFA Government Conventional (c) Total Servicing portfolio (a) $ 41,815 $ 37,055 $ 154,182 $ 233,052 $ 40,737 $ 36,756 $ 155,353 $ 232,846 Fair value $ 486 $ 461 $ 1,833 $ 2,780 $ 450 $ 428 $ 1,767 $ 2,645 Value (bps) (b) 116 124 119 119 110 116 114 114 Weighted-average servicing fees (bps) 35 35 27 29 35 34 27 29 Multiple (value/servicing fees) 3.36 3.59 4.44 4.05 3.17 3.38 4.24 3.86 Weighted-average note rate 4.46 % 3.93 % 4.02 % 4.08 % 4.43 % 3.92 % 4.02 % 4.08 % Weighted-average age (in years) 3.1 4.3 4.3 4.1 3.0 4.3 4.2 4.0 Weighted-average expected prepayment (constant prepayment rate) 9.3 % 10.8 % 8.8 % 9.2 % 9.8 % 11.6 % 9.7 % 10.0 % Weighted-average expected life (in years) 7.9 6.8 7.3 7.3 7.7 6.5 6.9 7.0 Weighted-average option adjusted spread (d) 8.8 % 8.4 % 7.3 % 7.8 % 9.9 % 9.2 % 7.2 % 8.0 % (a) Represents principal balance of mortgages having corresponding MSR asset. (b) Calculated as fair value divided by the servicing portfolio. (c) Represents loans sold primarily to GSEs. (d) Option adjusted spread is the incremental spread added to the risk-free rate to reflect optionality and other risk inherent in the MSRs. |
Preferred Stock
Preferred Stock | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Preferred Stock | Note 7 Preferred Stock At March 31, 2018 and December 31, 2017, the Company had authority to issue 50 million shares of preferred stock. The number of shares issued and outstanding and the carrying amount of each outstanding series of the Company’s preferred stock were as follows: March 31, 2018 December 31, 2017 (Dollars in Millions) Shares Liquidation Discount Carrying Shares Liquidation Discount Carrying Series A 12,510 $ 1,251 $ 145 $ 1,106 12,510 $ 1,251 $ 145 $ 1,106 Series B 40,000 1,000 – 1,000 40,000 1,000 – 1,000 Series F 44,000 1,100 12 1,088 44,000 1,100 12 1,088 Series H 20,000 500 13 487 20,000 500 13 487 Series I 30,000 750 5 745 30,000 750 5 745 Series J 40,000 1,000 7 993 40,000 1,000 7 993 Total preferred stock (a) 186,510 $ 5,601 $ 182 $ 5,419 186,510 $ 5,601 $ 182 $ 5,419 (a) The par value of all shares issued and outstanding at March 31, 2018 and December 31, 2017, was $1.00 per share. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 8 Accumulated Other Comprehensive Income (Loss) Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to accumulated other comprehensive income (loss). The reconciliation of the transactions affecting accumulated other comprehensive income (loss) included in shareholders’ equity for the three months ended March 31, is as follows: (Dollars in Millions) Unrealized Gains Available-For- Unrealized Gains Available-For-Sale to Held-To- Unrealized Gains Unrealized Gains Foreign Total 2018 Balance at beginning of period $ (357 ) $ 17 $ 71 $ (1,066 ) $ (69 ) $ (1,404 ) Revaluation of tax related balances (a) (77 ) 4 15 (229 ) (13 ) (300 ) Changes in unrealized gains and losses (776 ) – 86 (3 ) – (693 ) Foreign currency translation adjustment (b) – – – – 13 13 Reclassification to earnings of realized gains and losses (5 ) (3 ) 3 34 – 29 Applicable income taxes 198 1 (23 ) (7 ) (7 ) 162 Balance at end of period $ (1,017 ) $ 19 $ 152 $ (1,271 ) $ (76 ) $ (2,193 ) 2017 Balance at beginning of period $ (431 ) $ 25 $ 55 $ (1,113 ) $ (71 ) $ (1,535 ) Changes in unrealized gains and losses 127 – 7 – – 134 Foreign currency translation adjustment (b) – – – – 10 10 Reclassification to earnings of realized gains and losses (29 ) (3 ) 14 29 – 11 Applicable income taxes (38 ) 1 (8 ) (11 ) (3 ) (59 ) Balance at end of period $ (371 ) $ 23 $ 68 $ (1,095 ) $ (64 ) $ (1,439 ) (a) Represents the impact of the reduced federal statutory tax rate for corporations included in 2017 tax reform legislation, reclassified out of accumulated other comprehensive income and into retained earnings as of the beginning of the period. (b) Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges. Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income (loss) and into earnings for the three months ended March 31, is as follows: Impact to Net Income Affected Line Item in the (Dollars in Millions) 2018 2017 Unrealized gains (losses) on investment securities available-for-sale Realized gains (losses) on sale of investment securities $ 5 $ 29 Total securities gains (losses), net (1 ) (11 ) Applicable income taxes 4 18 Net-of-tax Unrealized gains (losses) on investment securities transferred from available-for-sale held-to-maturity Amortization of unrealized gains 3 3 Interest income (1 ) (1 ) Applicable income taxes 2 2 Net-of-tax Unrealized gains (losses) on derivative hedges Realized gains (losses) on derivative hedges (3 ) (14 ) Interest expense 1 5 Applicable income taxes (2 ) (9 ) Net-of-tax Unrealized gains (losses) on retirement plans Actuarial gains (losses) and prior service cost (credit) amortization (34 ) (29 ) Employee benefits expense 8 11 Applicable income taxes (26 ) (18 ) Net-of-tax Total impact to net income $ (22 ) $ (7 ) |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9 Earnings Per Share The components of earnings per share were: Three Months Ended (Dollars and Shares in Millions, Except Per Share Data) 2018 2017 Net income attributable to U.S. Bancorp $ 1,675 $ 1,473 Preferred dividends (70 ) (69 ) Impact of preferred stock call (a) – (10 ) Earnings allocated to participating stock awards (8 ) (7 ) Net income applicable to U.S. Bancorp common shareholders $ 1,597 $ 1,387 Average common shares outstanding 1,652 1,694 Net effect of the exercise and assumed purchase of stock awards 5 7 Average diluted common shares outstanding 1,657 1,701 Earnings per common share $ .97 $ .82 Diluted earnings per common share $ .96 $ .82 (a) Represents stock issuance costs originally recorded in preferred stock upon the issuance of the Company’s Series G Preferred Stock that were reclassified to retained earnings on the date the Company announced its intent to redeem the outstanding shares. Options outstanding at March 31, 2018 and 2017, to purchase 1 million common shares, were not included in the computation of diluted earnings per share for the three months ended March 31, 2018 and 2017, because they were antidilutive. |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Note 10 Employee Benefits The components of net periodic benefit cost for the Company’s retirement plans were: Three Months Ended March 31 Pension Plans Postretirement (Dollars in Millions) 2018 2017 2018 2017 Service cost $ 52 $ 47 $ – $ – Interest cost 56 55 1 1 Expected return on plan assets (95 ) (71 ) (1 ) (1 ) Prior service cost (credit) amortization – (1 ) (1 ) (1 ) Actuarial loss (gain) amortization 37 32 (2 ) (1 ) Net periodic benefit cost (a) $ 50 $ 62 $ (3 ) $ (2 ) (a) Service cost is included in employee benefits expense on the Consolidated Statement of Income. All other components are included in other noninterest expense on the Consolidated Statement of Income. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11 Income Taxes The components of income tax expense were: Three Months Ended (Dollars in Millions) 2018 2017 Federal Current $ 234 $ 531 Deferred 19 (120 ) Federal income tax 253 411 State Current 92 65 Deferred 17 23 State income tax 109 88 Total income tax provision $ 362 $ 499 A reconciliation of expected income tax expense at the federal statutory rate of 21 percent and 35 percent for the three months ended March 31, 2018 and 2017, respectively, to the Company’s applicable income tax expense follows: Three Months Ended (Dollars in Millions) 2018 2017 Tax at statutory rate $ 429 $ 695 State income tax, at statutory rates, net of federal tax benefit 89 63 Tax effect of Tax credits and benefits, net of related expenses (115 ) (193 ) Exam resolutions (49 ) – Tax-exempt (32 ) (49 ) Noncontrolling interests (1 ) (5 ) Other items 41 (12 ) Applicable income taxes $ 362 $ 499 The Company’s income tax returns are subject to review and examination by federal, state, local and foreign government authorities. On an ongoing basis, numerous federal, state, local and foreign examinations are in progress and cover multiple tax years. As of March 31, 2018, the federal taxing authority has completed its examination of the Company through the fiscal year ended December 31, 2010. The years open to examination by foreign, state and local government authorities vary by jurisdiction. The Company’s net deferred tax asset was $671 million at March 31, 2018 and $473 million at December 31, 2017. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 12 Derivative Instruments In the ordinary course of business, the Company enters into derivative transactions to manage various risks and to accommodate the business requirements of its customers. The Company recognizes all derivatives on the Consolidated Balance Sheet at fair value in other assets or in other liabilities. On the date the Company enters into a derivative contract, the derivative is designated as either a fair value hedge, cash flow hedge, net investment hedge, or a designation is not made as it is a customer-related transaction, an economic hedge for asset/liability risk management purposes or another stand-alone derivative created through the Company’s operations (“free-standing derivative”). When a derivative is designated as a fair value, cash flow or net investment hedge, the Company performs an assessment, at inception and, at a minimum, quarterly thereafter, to determine the effectiveness of the derivative in offsetting changes in the value or cash flows of the hedged item(s). Fair Value Hedges These derivatives are interest rate swaps the Company uses to hedge the change in fair value related to interest rate changes of its underlying fixed-rate debt. Changes in the fair value of derivatives designated as fair value hedges, and changes in the fair value of the hedged items, are recorded in earnings. All fair value hedges were highly effective for the three months ended March 31, 2018. Cash Flow Hedges These derivatives are interest rate swaps the Company uses to hedge the forecasted cash flows from its underlying variable-rate debt. Changes in the fair value of derivatives designated as cash flow hedges are recorded in other comprehensive income (loss) until the cash flows of the hedged items are realized. If a derivative designated as a cash flow hedge is terminated or ceases to be highly effective, the gain or loss in other comprehensive income (loss) is amortized to earnings over the period the forecasted hedged transactions impact earnings. If a hedged forecasted transaction is no longer probable, hedge accounting is ceased and any gain or loss included in other comprehensive income (loss) is reported in earnings immediately, unless the forecasted transaction is at least reasonably possible of occurring, whereby the amounts remain within other comprehensive income (loss). At March 31, 2018, the Company had $152 million (net-of-tax) (net-of-tax) (net-of-tax) (net-of-tax), Net Investment Hedges The Company uses forward commitments to sell specified amounts of certain foreign currencies, and non-derivative non-derivative Other Derivative Positions The Company enters into free-standing derivatives to mitigate interest rate risk and for other risk management purposes. These derivatives include forward commitments to sell to-be-announced non-derivative For additional information on the Company’s purpose for entering into derivative transactions and its overall risk management strategies, refer to “Management Discussion and Analysis — Use of Derivatives to Manage Interest Rate and Other Risks”, which is incorporated by reference into these Notes to Consolidated Financial Statements. The following table summarizes the asset and liability management derivative positions of the Company: Asset Derivatives Liability Derivatives (Dollars in Millions) Notional Fair Weighted- Notional Fair Weighted- March 31, 2018 Fair value hedges Interest rate contracts Receive fixed/pay floating swaps $ – $ – – $ 4,600 $ 37 2.42 Cash flow hedges Interest rate contracts Pay fixed/receive floating swaps 3,892 126 6.48 500 – .63 Net investment hedges Foreign exchange forward contracts 192 1 .05 199 – .05 Other economic hedges Interest rate contracts Futures and forwards Buy 1,895 8 .10 1,172 2 .09 Sell 19,126 19 1.14 5,193 17 .02 Options Purchased 6,235 77 7.63 – – – Written 1,123 26 .09 7 – .12 Receive fixed/pay floating swaps 2,750 – 15.03 4,420 114 7.96 Pay fixed/receive floating swaps 4,333 – 7.72 88 – 5.23 Foreign exchange forward contracts 132 1 .05 540 3 .04 Equity contracts 25 1 .57 108 4 .50 Credit contracts 1,812 – 3.02 3,880 1 3.15 Other (a) 300 5 .02 1,514 127 1.81 Total $ 41,815 $ 264 $ 22,221 $ 305 December 31, 2017 Fair value hedges Interest rate contracts Receive fixed/pay floating swaps $ 1,000 $ 28 6.70 $ 3,600 $ 16 1.55 Cash flow hedges Interest rate contracts Pay fixed/receive floating swaps 3,772 5 6.73 – – – Net investment hedges Foreign exchange forward contracts – – – 373 8 .05 Other economic hedges Interest rate contracts Futures and forwards Buy 1,632 7 .10 1,326 2 .04 Sell 15,291 10 .89 4,511 10 .03 Options Purchased 4,985 65 7.57 – – – Written 1,285 21 .10 5 – .05 Receive fixed/pay floating swaps 2,019 5 16.49 5,469 – 8.43 Pay fixed/receive floating swaps 4,844 21 7.69 46 1 6.70 Foreign exchange forward contracts 147 1 .02 669 8 .04 Equity contracts 45 – 1.10 88 1 .58 Credit contracts 1,559 – 3.41 3,779 1 3.16 Other (a) – – – 1,164 125 2.50 Total $ 36,579 $ 163 $ 21,030 $ 172 (a) Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common shares of Visa Inc. The Visa swap agreements had a total notional value, fair value and weighted average remaining maturity of $1.2 billion, $122 million and 2.25 years at March 31, 2018, respectively, compared to $1.2 billion, $125 million and 2.50 years at December 31, 2017, respectively. In addition, includes short-term underwriting purchase and sale commitments with total asset and liability notional values of $300 million at March 31, 2018. The following table summarizes the customer-related derivative positions of the Company: Asset Derivatives Liability Derivatives (Dollars in Millions) Notional Fair Weighted- Notional Fair Weighted- March 31, 2018 Interest rate contracts Receive fixed/pay floating swaps $ 25,579 $ 492 4.41 $ 75,797 $ 630 4.45 Pay fixed/receive floating swaps 72,317 413 4.41 27,680 388 4.37 Options Purchased 32,509 46 1.53 1,960 22 2.26 Written 2,060 23 2.38 30,225 43 1.39 Futures Sell 8,151 8 1.08 – – – Foreign exchange rate contracts Forwards, spots and swaps 26,646 776 .77 25,751 756 .77 Options Purchased 4,399 108 1.04 – – – Written – – – 4,399 108 1.04 Total $ 171,661 $ 1,866 $ 165,812 $ 1,947 December 31, 2017 Interest rate contracts Receive fixed/pay floating swaps $ 28,681 $ 679 5.71 $ 59,990 $ 840 4.27 Pay fixed/receive floating swaps 63,038 860 4.20 25,093 602 5.76 Options Purchased 29,091 22 1.61 880 14 4.24 Written 880 15 4.24 27,056 20 1.50 Futures Sell 7,007 4 1.21 – – – Foreign exchange rate contracts Forwards, spots and swaps 24,099 656 .81 23,440 636 .83 Options Purchased 4,026 83 1.20 – – – Written – – – 4,026 83 1.20 Total $ 156,822 $ 2,319 $ 140,485 $ 2,195 The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax) Gains (Losses) Gains (Losses) (Dollars in Millions) 2018 2017 2018 2017 Asset and Liability Management Positions Cash flow hedges Interest rate contracts $ 64 $ 4 $ (2 ) $ (9 ) Net investment hedges Foreign exchange forward contracts 16 (7 ) – – Non-derivative (34 ) – – – Note: The Company does not exclude components from effectiveness testing for cash flow and net investment hedges. The table below shows the effect of fair value and cash flow hedge accounting on the Consolidated Statement of Income for the three months ended March 31: Other Noninterest Interest Expense (Dollars in Millions) 2018 2017 2018 2017 Total amount of income and expense line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded $ 167 $ 180 $ 623 $ 413 Asset and Liability Management Positions Fair value hedges Interest rate contract derivatives – (10 ) (43 ) – Hedged items – 10 43 – Cash Flow hedges Interest rate contract derivatives – – 3 14 Note: The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company did not reclassify gains or losses into earnings as a result of the discontinuance of cash flow hedges during the three months ended March 31, 2018 and 2017. The table below shows the cumulative hedging adjustment for fair value hedges that are included in the carrying amount of the hedged assets (liabilities): Carrying Amount of the Hedged Assets Cumulative Hedging Adjustment (Dollars in Millions) March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 Line Item in the Consolidated Balance Sheet Long-term Debt $ 4,544 $ 4,584 $ (48 ) $ (8 ) Note: The Company does not have any hedging adjustments for discontinued fair value hedges. The table below shows the gains (losses) recognized in earnings for other economic hedges and the customer-related positions for the three months ended March 31: (Dollars in Millions) Location of Gains (Losses) 2018 2017 Asset and Liability Management Positions Other economic hedges Interest rate contracts Futures and forwards Mortgage banking revenue $ 58 $ 6 Purchased and written options Mortgage banking revenue 42 40 Receive fixed/pay floating swaps Mortgage banking revenue (79 ) 31 Pay fixed/receive floating swaps Mortgage banking revenue (31 ) (40 ) Foreign exchange forward contracts Other noninterest income 12 (7 ) Equity contracts Compensation expense (1 ) 1 Credit contracts Other noninterest income – 1 Customer-Related Positions Interest rate contracts Receive fixed/pay floating swaps Other noninterest income (1,164 ) (250 ) Pay fixed/receive floating swaps Other noninterest income 1,167 269 Purchased and written options Other noninterest income – (6 ) Futures Other noninterest income 8 (2 ) Foreign exchange rate contracts Forwards, spots and swaps Commercial products revenue 23 22 Purchased and written options Commercial products revenue – 1 Derivatives are subject to credit risk associated with counterparties to the derivative contracts. The Company measures that credit risk using a credit valuation adjustment and includes it within the fair value of the derivative. The Company manages counterparty credit risk through diversification of its derivative positions among various counterparties, by entering into derivative positions that are centrally cleared through clearinghouses, by entering into master netting arrangements and, where possible, by requiring collateral arrangements. A master netting arrangement allows two counterparties, who have multiple derivative contracts with each other, the ability to net settle amounts under all contracts, including any related collateral, through a single payment and in a single currency. Collateral arrangements generally require the counterparty to deliver collateral (typically cash or U.S. Treasury and agency securities) equal to the Company’s net derivative receivable, subject to minimum transfer and credit rating requirements. The Company’s collateral arrangements are predominately bilateral and, therefore, contain provisions that require collateralization of the Company’s net liability derivative positions. Required collateral coverage is based on net liability thresholds and may be contingent upon the Company’s credit rating from two of the nationally recognized statistical rating organizations. If the Company’s credit rating were to fall below credit ratings thresholds established in the collateral arrangements, the counterparties to the derivatives could request immediate additional collateral coverage up to and including full collateral coverage for derivatives in a net liability position. The aggregate fair value of all derivatives under collateral arrangements that were in a net liability position at March 31, 2018, was $669 million. At March 31, 2018, the Company had $617 million of cash posted as collateral against this net liability position. |
Netting Arrangements for Certai
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities | 3 Months Ended |
Mar. 31, 2018 | |
Text Block [Abstract] | |
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities | Note 13 Netting Arrangements for Certain Financial Instruments and Securities Financing Activities The Company’s derivative portfolio consists of bilateral over-the-counter over-the-counter As part of the Company’s treasury and broker-dealer operations, the Company executes transactions that are treated as securities sold under agreements to repurchase or securities purchased under agreements to resell, both of which are accounted for as collateralized financings. Securities sold under agreements to repurchase include repurchase agreements and securities loaned transactions. Securities purchased under agreements to resell include reverse repurchase agreements and securities borrowed transactions. For securities sold under agreements to repurchase, the Company records a liability for the cash received, which is included in short-term borrowings on the Consolidated Balance Sheet. For securities purchased under agreements to resell, the Company records a receivable for the cash paid, which is included in other assets on the Consolidated Balance Sheet. Securities transferred to counterparties under repurchase agreements and securities loaned transactions continue to be recognized on the Consolidated Balance Sheet, are measured at fair value, and are included in investment securities or other assets. Securities received from counterparties under reverse repurchase agreements and securities borrowed transactions are not recognized on the Consolidated Balance Sheet unless the counterparty defaults. The securities transferred under repurchase and reverse repurchase transactions typically are U.S. Treasury and agency securities, residential agency mortgage-backed securities or corporate debt securities. The securities loaned or borrowed typically are corporate debt securities traded by the Company’s broker-dealer. In general, the securities transferred can be sold, repledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party. Repurchase/reverse repurchase and securities loaned/borrowed transactions expose the Company to counterparty risk. The Company manages this risk by performing assessments, independent of business line managers, and establishing concentration limits on each counterparty. Additionally, these transactions include collateral arrangements that require the fair values of the underlying securities to be determined daily, resulting in cash being obtained or refunded to counterparties to maintain specified collateral levels. The following table summarizes the maturities by category of collateral pledged for repurchase agreements and securities loaned transactions: (Dollars in Millions) Overnight and Less Than Total March 31, 2018 Repurchase agreements U.S. Treasury and agencies $ 58 $ – $ 58 Residential agency mortgage-backed securities 380 177 557 Corporate debt securities 279 87 366 Total repurchase agreements 717 264 981 Securities loaned Corporate debt securities 400 – 400 Total securities loaned 400 – 400 Gross amount of recognized liabilities $ 1,117 $ 264 $ 1,381 December 31, 2017 Repurchase agreements U.S. Treasury and agencies $ 25 $ – $ 25 Residential agency mortgage-backed securities 644 30 674 Corporate debt securities 104 – 104 Total repurchase agreements 773 30 803 Securities loaned Corporate debt securities 111 – 111 Total securities loaned 111 – 111 Gross amount of recognized liabilities $ 884 $ 30 $ 914 The Company executes its derivative, repurchase/reverse repurchase and securities loaned/borrowed transactions under the respective industry standard agreements. These agreements include master netting arrangements that allow for multiple contracts executed with the same counterparty to be viewed as a single arrangement. This allows for net settlement of a single amount on a daily basis. In the event of default, the master netting arrangement provides for close-out The Company has elected to offset the assets and liabilities under netting arrangements for the balance sheet presentation of the majority of its derivative counterparties. The netting occurs at the counterparty level, and includes all assets and liabilities related to the derivative contracts, including those associated with cash collateral received or delivered. The Company has not elected to offset the assets and liabilities under netting arrangements for the balance sheet presentation of repurchase/reverse repurchase and securities loaned/borrowed transactions. The following tables provide information on the Company’s netting adjustments, and items not offset on the Consolidated Balance Sheet but available for offset in the event of default: Gross Recognized Assets Gross Amounts Offset on the Net Amounts Presented on the Gross Amounts Not Offset on the (Dollars in Millions) Financial Collateral Net Amount March 31, 2018 Derivative assets (d) $ 2,094 $ (821 ) $ 1,273 $ (74 ) $ – $ 1,199 Reverse repurchase agreements 159 – 159 (6 ) (153 ) – Securities borrowed 1,173 – 1,173 – (1,141 ) 32 Total $ 3,426 $ (821 ) $ 2,605 $ (80 ) $ (1,294 ) $ 1,231 December 31, 2017 Derivative assets (d) $ 1,759 $ (652 ) $ 1,107 $ (110 ) $ (5 ) $ 992 Reverse repurchase agreements 24 – 24 (24 ) – – Securities borrowed 923 – 923 – (896 ) 27 Total $ 2,706 $ (652 ) $ 2,054 $ (134 ) $ (901 ) $ 1,019 (a) Includes $110 million and $50 million of cash collateral related payables that were netted against derivative assets at March 31, 2018 and December 31, 2017, respectively. (b) For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any repurchase agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in the event of counterparty default. (c) Includes the fair value of securities received by the Company from the counterparty. These securities are not included on the Consolidated Balance Sheet unless the counterparty defaults. (d) Excludes $36 million and $723 million at March 31, 2018 and December 31, 2017, respectively, of derivative assets not subject to netting arrangements. Gross Gross Amounts Offset on the Net Amounts Presented on the Gross Amounts Not Offset on the (Dollars in Millions) Financial Collateral Net Amount March 31, 2018 Derivative liabilities (d) $ 2,123 $ (1,328 ) $ 795 $ (74 ) $ – $ 721 Repurchase agreements 981 – 981 (6 ) (975 ) – Securities loaned 400 – 400 – (395 ) 5 Total $ 3,504 $ (1,328 ) $ 2,176 $ (80 ) $ (1,370 ) $ 726 December 31, 2017 Derivative liabilities (d) $ 1,629 $ (1,130 ) $ 499 $ (110 ) $ – $ 389 Repurchase agreements 803 – 803 (24 ) (779 ) – Securities loaned 111 – 111 – (110 ) 1 Total $ 2,543 $ (1,130 ) $ 1,413 $ (134 ) $ (889 ) $ 390 (a) Includes $617 million and $528 million of cash collateral related receivables that were netted against derivative liabilities at March 31, 2018 and December 31, 2017, respectively. (b) For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse repurchase agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be offset in the event of counterparty default. (c) Includes the fair value of securities pledged by the Company to the counterparty. These securities are included on the Consolidated Balance Sheet unless the Company defaults. (d) Excludes $129 million and $738 million at March 31, 2018 and December 31, 2017, respectively, of derivative liabilities not subject to netting arrangements. |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Assets and Liabilities | Note 14 Fair Values of Assets and Liabilities The Company uses fair value measurements for the initial recording of certain assets and liabilities, periodic remeasurement of certain assets and liabilities, and disclosures. Derivatives, trading and available-for-sale lower-of-cost-or-fair Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value measurement reflects all of the assumptions that market participants would use in pricing the asset or liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset and the risk of nonperformance. The Company groups its assets and liabilities measured at fair value into a three-level hierarchy for valuation techniques used to measure financial assets and financial liabilities at fair value. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are: • Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 1 includes U.S. Treasury securities, as well as exchange-traded instruments. • Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 includes debt securities that are traded less frequently than exchange-traded instruments and which are typically valued using third party pricing services; derivative contracts and other assets and liabilities, including securities, whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data; and MLHFS whose values are determined using quoted prices for similar assets or pricing models with inputs that are observable in the market or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category includes MSRs and certain derivative contracts. When the Company changes its valuation inputs for measuring financial assets and financial liabilities at fair value, either due to changes in current market conditions or other factors, it may need to transfer those assets or liabilities to another level in the hierarchy based on the new inputs used. The Company recognizes these transfers at the end of the reporting period in which the transfers occur. During the three months ended March 31, 2018 and 2017, there were no transfers of financial assets or financial liabilities between the hierarchy levels. The Company has processes and controls in place to increase the reliability of estimates it makes in determining fair value measurements. Items quoted on an exchange are verified to the quoted price. Items provided by a third party pricing service are subject to price verification procedures as described in more detail in the specific valuation discussions below. For fair value measurements modeled internally, the Company’s valuation models are subject to the Company’s Model Risk Governance Policy and Program, as maintained by the Company’s risk management department. The purpose of model validation is to assess the accuracy of the models’ input, processing, and reporting components. All models are required to be independently reviewed and approved prior to being placed in use, and are subject to formal change control procedures. Under the Company’s Model Risk Governance Policy, models are required to be reviewed at least annually to ensure they are operating as intended. Inputs into the models are market observable inputs whenever available. When market observable inputs are not available, the inputs are developed based upon analysis of historical experience and evaluation of other relevant market data. Significant unobservable model inputs are subject to review by senior management in corporate functions, who are independent from the modeling. Significant unobservable model inputs are also compared to actual results, typically on a quarterly basis. Significant Level 3 fair value measurements are also subject to corporate-level review and are benchmarked to market transactions or other market data, when available. Additional discussion of processes and controls are provided in the valuation methodologies section that follows. The following section describes the valuation methodologies used by the Company to measure financial assets and liabilities at fair value. In addition, the following section includes an indication of the level of the fair value hierarchy in which the assets or liabilities are classified. Where appropriate, the description includes information about the valuation models and key inputs to those models. During the three months ended March 31, 2018 and 2017, there were no significant changes to the valuation techniques used by the Company to measure fair value. Available-For-Sale When quoted market prices for identical securities are available in an active market, these prices are used to determine fair value and these securities are classified within Level 1 of the fair value hierarchy. Level 1 investment securities include U.S. Treasury and exchange-traded securities. For other securities, quoted market prices may not be readily available for the specific securities. When possible, the Company determines fair value based on market observable information, including quoted market prices for similar securities, inactive transaction prices, and broker quotes. These securities are classified within Level 2 of the fair value hierarchy. Level 2 valuations are generally provided by a third party pricing service. The Company reviews the valuation methodologies utilized by the pricing service and, on a quarterly basis, reviews the security level prices provided by the pricing service against management’s expectation of fair value, based on changes in various benchmarks and market knowledge from recent trading activity. Additionally, each quarter, the Company validates the fair value provided by the pricing services by comparing them to recent observable market trades (where available), broker provided quotes, or other independent secondary pricing sources. Prices obtained from the pricing service are adjusted if they are found to be inconsistent with relevant market data. Level 2 investment securities are predominantly agency mortgage-backed securities, certain other asset-backed securities, obligations of state and political subdivisions and agency debt securities. Mortgage Loans Held For Sale MLHFS measured at fair value, for which an active secondary market and readily available market prices exist, are initially valued at the transaction price and are subsequently valued by comparison to instruments with similar collateral and risk profiles. MLHFS are classified within Level 2. The valuations of MLHFS are developed by the mortgage banking division and are subject to independent price verification procedures by corporate functions. Included in mortgage banking revenue was a $51 million net loss and a $21 million net gain for the three months ended March 31, 2018 and 2017, respectively, from the changes to fair value of these MLHFS under fair value option accounting guidance. Changes in fair value due to instrument specific credit risk were immaterial. Interest income for MLHFS is measured based on contractual interest rates and reported as interest income on the Consolidated Statement of Income. Electing to measure MLHFS at fair value reduces certain timing differences and better matches changes in fair value of these assets with changes in the value of the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting. Mortgage Servicing Rights MSRs are valued using a discounted cash flow methodology, and are classified within Level 3. The Company determines fair value of the MSRs by projecting future cash flows for different interest rate scenarios using prepayment rates and other assumptions, and discounts these cash flows using a risk adjusted rate based on option adjusted spread levels. The MSR valuations, as well as the assumptions used, are developed by the mortgage banking division and are subject to review by senior management in corporate functions, who are independent from the modeling. The MSR valuations and assumptions are validated through comparison to trade information when available, publicly available data and industry surveys and are also compared to independent third party valuations each quarter. Risks inherent in MSR valuation include higher than expected prepayment rates and/or delayed receipt of cash flows. There is minimal observable market activity for MSRs on comparable portfolios and, therefore, the determination of fair value requires significant management judgment. Refer to Note 6 for further information on MSR valuation assumptions. Derivatives The majority of derivatives held by the Company are executed over-the-counter Black-Derman-Toy The Company also has other derivative contracts that are created through its operations, including commitments to purchase and originate mortgage loans and swap agreements executed in conjunction with the sale of a portion of its Class B common shares of Visa Inc. (the “Visa swaps”). The mortgage loan commitments are valued by pricing models that include market observable and unobservable inputs, which result in the commitments being classified within Level 3 of the fair value hierarchy. The unobservable inputs include assumptions about the percentage of commitments that actually become a closed loan and the MSR value that is inherent in the underlying loan value, both of which are developed by the Company’s mortgage banking division. The closed loan percentages for the mortgage loan commitments are monitored on an on-going Significant Unobservable Inputs of Level 3 Assets and Liabilities The following section provides information on the significant inputs used by the Company to determine the fair value measurements of Level 3 assets and liabilities recorded at fair value on the Consolidated Balance Sheet. In addition, the following section includes a discussion of the sensitivity of the fair value measurements to changes in the significant inputs and a description of any interrelationships between these inputs for Level 3 assets and liabilities recorded at fair value on a recurring basis. The discussion below excludes nonrecurring fair value measurements of collateral value used for impairment measures for loans and OREO. These valuations utilize third party appraisal or broker price opinions, and are classified as Level 3 due to the significant judgment involved. Mortgage Servicing Rights The significant unobservable inputs used in the fair value measurement of the Company’s MSRs are expected prepayments and the option adjusted spread that is added to the risk-free rate to discount projected cash flows. Significant increases in either of these inputs in isolation would result in a significantly lower fair value measurement. Significant decreases in either of these inputs in isolation would result in a significantly higher fair value measurement. There is no direct interrelationship between prepayments and option adjusted spread. Prepayment rates generally move in the opposite direction of market interest rates. Option adjusted spread is generally impacted by changes in market return requirements. The following table shows the significant valuation assumption ranges for MSRs at March 31, 2018: Minimum Maximum Average Expected prepayment 6 % 17 % 9 % Option adjusted spread 7 10 8 Derivatives The Company has two distinct Level 3 derivative portfolios: (i) the Company’s commitments to purchase and originate mortgage loans that meet the requirements of a derivative and (ii) the Company’s asset/liability and customer-related derivatives that are Level 3 due to unobservable inputs related to measurement of risk of nonperformance by the counterparty. In addition, the Company’s Visa swaps are classified within Level 3. The significant unobservable inputs used in the fair value measurement of the Company’s derivative commitments to purchase and originate mortgage loans are the percentage of commitments that actually become a closed loan and the MSR value that is inherent in the underlying loan value. A significant increase in the rate of loans that close would result in a larger derivative asset or liability. A significant increase in the inherent MSR value would result in an increase in the derivative asset or a reduction in the derivative liability. Expected loan close rates and the inherent MSR values are directly impacted by changes in market rates and will generally move in the same direction as interest rates. The following table shows the significant valuation assumption ranges for the Company’s derivative commitments to purchase and originate mortgage loans at March 31, 2018: Minimum Maximum Average Expected loan close rate 7 % 100 % 80 % Inherent MSR value (basis points per loan) 7 194 107 The significant unobservable input used in the fair value measurement of certain of the Company’s asset/liability and customer-related derivatives is the credit valuation adjustment related to the risk of counterparty nonperformance. A significant increase in the credit valuation adjustment would result in a lower fair value measurement. A significant decrease in the credit valuation adjustment would result in a higher fair value measurement. The credit valuation adjustment is impacted by changes in the Company’s assessment of the counterparty’s credit position. At March 31, 2018, the minimum, maximum and average credit valuation adjustment as a percentage of the derivative contract fair value prior to adjustment was 0 percent, 93 percent and 1 percent, respectively. The significant unobservable inputs used in the fair value measurement of the Visa swaps are management’s estimate of the probability of certain litigation scenarios, and the timing of the resolution of the related litigation loss estimates in excess, or shortfall, of the Company’s proportional share of escrow funds. An increase in the loss estimate or a delay in the resolution of the related litigation would result in an increase in the derivative liability. A decrease in the loss estimate or an acceleration of the resolution of the related litigation would result in a decrease in the derivative liability. The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis: (Dollars in Millions) Level 1 Level 2 Level 3 Netting Total March 31, 2018 Available-for-sale U.S. Treasury and agencies $ 21,258 $ 708 $ – $ – $ 21,966 Mortgage-backed securities Residential agency – 38,443 – – 38,443 Commercial agency – 7 – – 7 Other asset-backed securities – 415 – – 415 Obligations of state and political subdivisions – 6,294 – – 6,294 Total available-for-sale 21,258 45,867 – – 67,125 Mortgage loans held for sale – 3,271 – – 3,271 Mortgage servicing rights – – 2,780 – 2,780 Derivative assets 17 1,611 502 (821 ) 1,309 Other assets 199 1,615 – – 1,814 Total $ 21,474 $ 52,364 $ 3,282 $ (821 ) $ 76,299 Derivative liabilities $ – $ 1,618 $ 634 $ (1,328 ) $ 924 Short-term borrowings and other liabilities (a) 183 1,167 – – 1,350 Total $ 183 $ 2,785 $ 634 $ (1,328 ) $ 2,274 December 31, 2017 Available-for-sale U.S. Treasury and agencies $ 22,572 $ 729 $ – $ – $ 23,301 Mortgage-backed securities Residential agency – 38,031 – – 38,031 Commercial agency – 6 – – 6 Other asset-backed securities – 419 – – 419 Obligations of state and political subdivisions – 6,358 – – 6,358 Other 22 – – – 22 Total available-for-sale 22,594 45,543 – – 68,137 Mortgage loans held for sale – 3,534 – – 3,534 Mortgage servicing rights – – 2,645 – 2,645 Derivative assets 6 1,960 516 (652 ) 1,830 Other assets 154 1,163 – – 1,317 Total $ 22,754 $ 52,200 $ 3,161 $ (652 ) $ 77,463 Derivative liabilities $ – $ 1,958 $ 409 $ (1,130 ) $ 1,237 Short-term borrowings and other liabilities (a) 101 894 – – 995 Total $ 101 $ 2,852 $ 409 $ (1,130 ) $ 2,232 Note: Excluded from the table above are equity investments without readily determinable fair values. The Company has elected to carry these investments at historical cost, adjusted for impairment and any changes resulting from observable price changes for identical or similar investments of the issuer. The aggregate carrying amount of these equity investments was $74 million at March 31, 2018. The Company has not recorded impairments or adjustments for observable price changes on these equity investments during the first three months of 2018 or on a cumulative basis. (a) Primarily represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance. The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31: (Dollars in Millions) Beginning Net Gains Net Gains Purchases Sales Principal Issuances Settlements End Net Change in 2018 Mortgage servicing rights $ 2,645 $ 33 (c) $ – $ 2 $ – $ – $ 100 (e) $ – $ 2,780 $ 33 (c) Net derivative assets and liabilities 107 (251 ) (d) – 1 (6 ) – 17 – (132 ) (212 ) (f) 2017 Available-for-sale Residential non-agency Prime (a) $ 242 $ – $ (2 ) $ – $ (234 ) $ (6 ) $ – $ – $ – $ – Non-prime 195 – (17 ) – (175 ) (3 ) – – – – Other asset-backed securities 2 – – – (2 ) – – – – – Corporate debt securities 9 – 2 – (11 ) – – – – – Total available-for-sale 448 – (17 ) (g) – (422 ) (9 ) – – – – Mortgage servicing rights 2,591 (73 ) (c) – 2 – – 122 (e) – 2,642 (73 ) (c) Net derivative assets and liabilities 171 46 (h) – 1 (3 ) – – (50 ) 165 (7 ) (i) (a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, (b) Includes all securities not meeting the conditions to be designated as prime. (c) Included in mortgage banking revenue. (d) Approximately $(271) million included in other noninterest income and $20 million included in mortgage banking revenue. (e) Represents MSRs capitalized during the period. (f) Approximately $(240) million included in other noninterest income and $28 million included in mortgage banking revenue. (g) Included in changes in unrealized gains and losses on investment securities available-for-sale. (h) Approximately $(19) million included in other noninterest income and $65 million included in mortgage banking revenue. (i) Approximately $(49) million included in other noninterest income and $42 million included in mortgage banking revenue. The Company is also required periodically to measure certain other financial assets at fair value on a nonrecurring basis. These measurements of fair value usually result from the application of lower-of-cost-or-fair The following table summarizes the balances as of the measurement date of assets measured at fair value on a nonrecurring basis, and still held as of the reporting date: March 31, 2018 December 31, 2017 (Dollars in Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Loans (a) $ – $ – $ 22 $ 22 $ – $ – $ 150 $ 150 Other assets (b) – – 18 18 – – 31 31 (a) Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off. (b) Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition. The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or portfolios for the three months ended March 31: (Dollars in Millions) 2018 2017 Loans (a) $ 23 $ 37 Other assets (b) 5 7 (a) Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off. (b) Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition. Fair Value Option The following table summarizes the differences between the aggregate fair value carrying amount of MLHFS for which the fair value option has been elected and the aggregate unpaid principal amount that the Company is contractually obligated to receive at maturity: March 31, 2018 December 31, 2017 (Dollars in Millions) Fair Aggregate Carrying Fair Aggregate Carrying Total loans $ 3,271 $ 3,208 $ 63 $ 3,534 $ 3,434 $ 100 Nonaccrual loans 1 2 (1 ) 1 2 (1 ) Loans 90 days or more past due 1 1 – 1 1 – Disclosures About Fair Value of Financial Instruments The following table summarizes the estimated fair value for financial instruments accounted for at amortized cost as of March 31, 2018 and December 31, 2017. In accordance with disclosure guidance related to fair values of financial instruments, the Company did not include assets and liabilities that are not financial instruments, such as the value of goodwill, long-term relationships with deposit, credit card, merchant processing and trust customers, other purchased intangibles, premises and equipment, deferred taxes and other liabilities. Additionally, in accordance with the disclosure guidance, receivables and payables due in one year or less, insurance contracts, equity investments not accounted for at fair value, and deposits with no defined or contractual maturities are excluded. The estimated fair values of the Company’s financial instruments are shown in the table below: March 31, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value (Dollars in Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets Cash and due from banks $ 19,246 $ 19,246 $ – $ – $ 19,246 $ 19,505 $ 19,505 $ – $ – $ 19,505 Federal funds sold and securities purchased under resale agreements 207 – 207 – 207 93 – 93 – 93 Investment securities held-to-maturity 44,612 4,553 38,842 13 43,408 44,362 4,613 39,095 15 43,723 Loans held for sale (a) 1,506 – – 1,506 1,506 20 – – 20 20 Loans 273,993 – – 275,311 275,311 276,507 – – 279,391 279,391 Other 2,442 – 1,281 1,161 2,442 2,393 – 1,037 1,364 2,401 Financial Liabilities Time deposits 39,585 – 39,179 – 39,179 33,356 – 33,120 – 33,120 Short-term borrowings (b) 16,353 – 16,129 – 16,129 15,656 – 15,447 – 15,447 Long-term debt 33,201 – 32,963 – 32,963 32,259 – 32,377 – 32,377 Other 1,546 – – 1,546 1,546 1,556 – – 1,556 1,556 (a) Excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected. (b) Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance. The fair value of unfunded commitments, deferred non-yield non-yield |
Guarantees and Contingent Liabi
Guarantees and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and Contingent Liabilities | Note 15 Guarantees and Contingent Liabilities Visa Restructuring and Card Association Litigation The Company’s payment services business issues credit and debit cards and acquires credit and debit card transactions through the Visa U.S.A. Inc. card association or its affiliates (collectively “Visa”). In 2007, Visa completed a restructuring and issued shares of Visa Inc. common stock to its financial institution members in contemplation of its initial public offering (“IPO”) completed in the first quarter of 2008 (the “Visa Reorganization”). As a part of the Visa Reorganization, the Company received its proportionate number of shares of Visa Inc. common stock, which were subsequently converted to Class B shares of Visa Inc. (“Class B shares”). Visa U.S.A. Inc. (“Visa U.S.A.”) and MasterCard International (collectively, the “Card Associations”) are defendants in antitrust lawsuits challenging the practices of the Card Associations (the “Visa Litigation”). Visa U.S.A. member banks have a contingent obligation to indemnify Visa Inc. under the Visa U.S.A. bylaws (which were modified at the time of the restructuring in October 2007) for potential losses arising from the Visa Litigation. The indemnification by the Visa U.S.A. member banks has no specific maximum amount. Using proceeds from its IPO and through reductions to the conversion ratio applicable to the Class B shares held by Visa U.S.A. member banks, Visa Inc. has funded an escrow account for the benefit of member financial institutions to fund their indemnification obligations associated with the Visa Litigation. The receivable related to the escrow account is classified in other liabilities as a direct offset to the related Visa Litigation contingent liability. On October 19, 2012, Visa signed a settlement agreement to resolve class action claims associated with the multi-district interchange litigation pending in the United States District Court for the Eastern District of New York. This case is the largest of the remaining Visa Litigation matters. The district court approved the settlement, but that approval was appealed by certain class members. On June 30, 2016, the United States Court of Appeals for the Second Circuit reversed the approval of the settlement and remanded the case to the district court for further proceedings consistent with the appellate ruling. On November 23, 2016, certain class members filed a petition with the United States Supreme Court asking it to review the Second Circuit’s decision to reject the settlement. On March 27, 2017, the Supreme Court denied the class members’ petition. The case is proceeding in the district court. At March 31, 2018, the carrying amount of the Company’s liability related to the Visa Litigation matters, net of its share of the escrow fundings, was $19 million. During the three months ended March 31, 2018, the Company sold 0.3 million of its Class B shares. These sales, and any previous sales of its Class B shares, do not impact the Company’s liability for the Visa Litigation matters or the receivable related to the escrow account. Upon final settlement of the Visa Litigation, the remaining 2.4 million Class B shares held by the Company will be eligible for conversion to Class A shares of Visa Inc., which are publicly traded. The Class B shares are excluded from the Company’s financial instruments disclosures included in Note 14. Other Guarantees and Contingent Liabilities The following table is a summary of other guarantees and contingent liabilities of the Company at March 31, 2018: (Dollars in Millions) Collateral Carrying Maximum Standby letters of credit $ – $ 53 $ 10,825 Third party borrowing arrangements – – 12 Securities lending indemnifications 3,850 – 3,807 Asset sales – 122 6,758 (a) Merchant processing 768 51 99,579 Tender option bond program guarantee 2,424 – 2,335 Minimum revenue guarantees – – 6 Other – 17 1,230 (a) The maximum potential future payments do not include loan sales where the Company provides standard representation and warranties to the buyer against losses related to loan underwriting documentation defects that may have existed at the time of sale that generally are identified after the occurrence of a triggering event such as delinquency. For these types of loan sales, the maximum potential future payments is generally the unpaid principal balance of loans sold measured at the end of the current reporting period. Actual losses will be significantly less than the maximum exposure, as only a fraction of loans sold will have a representation and warranty breach, and any losses on repurchase would generally be mitigated by any collateral held against the loans. Merchant Processing The Company, through its subsidiaries, provides merchant processing services. Under the rules of credit card associations, a merchant processor retains a contingent liability for credit card transactions processed. This contingent liability arises in the event of a billing dispute between the merchant and a cardholder that is ultimately resolved in the cardholder’s favor. In this situation, the transaction is “charged-back” to the merchant and the disputed amount is credited or otherwise refunded to the cardholder. If the Company is unable to collect this amount from the merchant, it bears the loss for the amount of the refund paid to the cardholder. The Company currently processes card transactions in the United States, Canada, Europe and Mexico through wholly-owned subsidiaries and joint ventures with other financial institutions. In the event a merchant was unable to fulfill product or services subject to future delivery, such as airline tickets, the Company could become financially liable for refunding the purchase price of such products or services purchased through the credit card associations under the charge-back provisions. Charge-back risk related to these merchants is evaluated in a manner similar to credit risk assessments and, as such, merchant processing contracts contain various provisions to protect the Company in the event of default. At March 31, 2018, the value of airline tickets purchased to be delivered at a future date through card transactions processed by the Company was $10.7 billion. The Company held collateral of $622 million in escrow deposits, letters of credit and indemnities from financial institutions, and liens on various assets. In addition to specific collateral or other credit enhancements, the Company maintains a liability for its implied guarantees associated with future delivery. At March 31, 2018, the liability was $47 million primarily related to these airline processing arrangements. Asset Sales The Company regularly sells loans to GSEs as part of its mortgage banking activities. The Company provides customary representations and warranties to GSEs in conjunction with these sales. These representations and warranties generally require the Company to repurchase assets if it is subsequently determined that a loan did not meet specified criteria, such as a documentation deficiency or rescission of mortgage insurance. If the Company is unable to cure or refute a repurchase request, the Company is generally obligated to repurchase the loan or otherwise reimburse the counterparty for losses. At March 31, 2018, the Company had reserved $12 million for potential losses from representation and warranty obligations, compared with $13 million at December 31, 2017. The Company’s reserve reflects management’s best estimate of losses for representation and warranty obligations. The Company’s repurchase reserve is modeled at the loan level, taking into consideration the individual credit quality and borrower activity that has transpired since origination. The model applies credit quality and economic risk factors to derive a probability of default and potential repurchase that are based on the Company’s historical loss experience, and estimates loss severity based on expected collateral value. The Company also considers qualitative factors that may result in anticipated losses differing from historical loss trends. As of March 31, 2018 and December 31, 2017, the Company had $10 million and $9 million, respectively, of unresolved representation and warranty claims from GSEs. The Company does not have a significant amount of unresolved claims from investors other than GSEs. Litigation and Regulatory Matters The Company is subject to various litigation and regulatory matters that arise in the ordinary course of its business. The Company establishes reserves for such matters when potential losses become probable and can be reasonably estimated. The Company believes the ultimate resolution of existing legal and regulatory matters will not have a material adverse effect on the financial condition, results of operations or cash flows of the Company. However, in light of the uncertainties inherent in these matters, it is possible that the ultimate resolution of one or more of these matters may have a material adverse effect on the Company’s results from operations for a particular period, and future changes in circumstances or additional information could result in additional accruals or resolution in excess of established accruals, which could adversely affect the Company’s results from operations, potentially materially. Litigation Matters In the last several years, the Company and other large financial institutions have been sued in their capacity as trustee for residential mortgage–backed securities trusts. Among these lawsuits are actions originally brought in June 2014 by a group of institutional investors, including BlackRock and PIMCO funds, against six bank trustees, including the Company. The actions brought by these institutional investors against the Company currently are pending in the Supreme Court of the State of New York, New York County, and in the United States District Court for the Southern District of New York. In these lawsuits, the investors allege that the Company’s banking subsidiary, U.S. Bank National Association (“U.S. Bank”), as trustee caused them to incur substantial losses by failing to enforce loan repurchase obligations and failing to abide by appropriate standards of care after events of default allegedly occurred. The plaintiffs seek monetary damages in an unspecified amount and also seek equitable relief. Regulatory Matters The Company is continually subject to examinations, inquiries and investigations in areas of increasing regulatory scrutiny, such as compliance, risk management, third party risk management and consumer protection. In addition, the Company is currently subject to examinations, inquiries and investigations by government agencies and bank regulators concerning mortgage-related practices, including those related to lender-placed insurance, and notices and filings in bankruptcy cases. The Company is cooperating fully with all pending examinations, inquiries and investigations, any of which could lead to administrative or legal proceedings or settlements. Remedies in these proceedings or settlements may include fines, penalties, restitution or alterations in the Company’s business practices (which may increase the Company’s operating expenses and decrease its revenue). On February 13, 2018, the Company entered into a deferred prosecution agreement (the “DPA”) with the United States Attorney’s Office in Manhattan that resolved its investigation of the Company concerning a legacy banking relationship between U.S. Bank and payday lending businesses associated with former customer Scott Tucker and U.S. Bank’s legacy Bank Secrecy Act/anti-money laundering compliance program. Under the terms of the DPA, the Company settled all allegations with the United States Attorney’s Office for a net payment of $453 million and agreed to, among other things, continue its ongoing efforts to implement and maintain an adequate Bank Secrecy Act/anti-money laundering compliance program and to provide related reports to the U.S. Attorney’s Office. The DPA defers prosecution for a period of two years, subject to the Company’s compliance with its terms. If the Company violates the DPA, its term could be extended up to an additional one year, or the Company could be subject to a prosecution or civil action based on the matters that are the subject of the DPA. In addition, the Company and certain of its affiliates entered into related regulatory settlements with the OCC, the Financial Crimes Enforcement Network (“FinCEN”) and the Board of Governors of the Federal Reserve System (“Federal Reserve”). The OCC assessed a civil money penalty of $75 million against U.S. Bank, resulting from the OCC’s 2015 Consent Order (described below) and related review of the Company’s legacy Bank Secrecy Act/anti-money laundering compliance program. The FinCEN settlement with U.S. Bank provided for a net payment of $70 million to FinCEN and requires, among other things, an ongoing commitment by U.S. Bank to provide resources to its Bank Secrecy Act/anti-money laundering compliance program and related reporting to FinCEN. The Federal Reserve settlement with the Company and USB Americas Holding Company, a subsidiary of U.S. Bank, provided for the payment of a civil money penalty of $15 million to the Federal Reserve and requires, among other things, enhancements related to the Company’s firm-wide Bank Secrecy Act/anti-money laundering compliance program and sanctions compliance program. If the Company and its affiliates fail to satisfy the ongoing obligations under these regulatory settlements, the Company and its affiliates may be required to enter into further orders and settlements, pay additional fines or penalties, or modify their business practices (which may increase operating expenses and decrease revenue). The Company paid a total of $613 million for the penalties described above during the quarter ended March 31, 2018, all of which had been previously accrued and reflected in the Company’s Consolidated Balance Sheet at December 31, 2017. In October 2015, the Company entered into a Consent Order with the OCC concerning deficiencies in the Company’s Bank Secrecy Act/anti-money laundering compliance program, and requiring an ongoing review of that program. The OCC’s 2015 Consent Order remains open and the Company continues to implement the compliance program enhancements and other actions required by the order. Outlook Due to their complex nature, it can be years before litigation and regulatory matters are resolved. The Company may be unable to develop an estimate or range of loss where matters are in early stages, there are significant factual or legal issues to be resolved, damages are unspecified or uncertain, or there is uncertainty as to a litigation class being certified or the outcome of pending motions, appeals or proceedings. For those litigation and regulatory matters where the Company has information to develop an estimate or range of loss, the Company believes the upper end of the range of reasonably possible losses in aggregate, in excess of any reserves established for matters where a loss is considered probable, will not be material to its financial condition, results of operations or cash flows. The Company’s estimates are subject to significant judgment and uncertainties, and the matters underlying the estimates will change from time to time. Actual results may vary significantly from the current estimates. For additional information on the nature of the Company’s guarantees and contingent liabilities, refer to Note 22 in the Company’s Annual Report on Form 10-K |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16 Subsequent Events The Company has evaluated the impact of events that have occurred subsequent to March 31, 2018 through the date the consolidated financial statements were filed with the United States Securities and Exchange Commission. Based on this evaluation, the Company has determined none of these events were required to be recognized or disclosed in the consolidated financial statements and related notes. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q Form 10-K Accounting policies for the lines of business are generally the same as those used in preparation of the consolidated financial statements with respect to activities specifically attributable to each business line. However, the preparation of business line results requires management to establish methodologies to allocate funding costs, expenses and other financial elements to each line of business. Table 11 “Line of Business Financial Performance” included in Management’s Discussion and Analysis provides details of segment results. This information is incorporated by reference into these Notes to Consolidated Financial Statements. |
Accounting Changes | Revenue Recognition Effective January 1, 2018, the Company adopted accounting guidance, issued by the Financial Accounting Standards Board (“FASB”) in May 2014, clarifying the principles for recognizing revenue from certain contracts with customers. The guidance does not apply to revenue associated with financial instruments, such as loans and securities. The adoption of this guidance was not material to the Company’s financial statements. Financial Instruments—Hedge Accounting Effective January 1, 2018, the Company adopted accounting guidance, issued by the FASB in August 2017, related to hedge accounting. This guidance makes targeted changes to the hedge accounting model to simplify the application of hedge accounting and more closely align financial reporting to an entity’s risk management activities. This guidance expands risk management strategies that qualify for hedge accounting, simplifies certain effectiveness assessment requirements, eliminates separate reporting of ineffectiveness and changes certain presentation and disclosure requirements for hedge accounting activities. Upon adoption, the Company elected to apply the guidance to existing fair value hedges. The Company also elected upon adoption to transfer $1.5 billion of its fixed rate residential agency mortgage-backed securities from the held-to-maturity available-for-sale Income Taxes Effective January 1, 2018, the Company adopted accounting guidance, issued by the FASB in February 2018, which allows entities to reclassify from accumulated other comprehensive income to retained earnings, the impact of the reduced federal statutory tax rate for corporations included in the Tax Cuts and Jobs Act (“tax reform”) enacted by Congress in late 2017. Upon adoption, the Company increased retained earnings and reduced accumulated other comprehensive income by $300 million. After adoption, the income tax effect on items included in accumulated other comprehensive income is consistent with the related deferred tax balances, and the income tax effect will be released from accumulated other comprehensive income and the related deferred tax balances when the applicable tax differences reverse. Accounting for Leases In February 2016, the FASB issued accounting guidance, effective for the Company on January 1, 2019, related to the accounting for leases. This guidance requires lessees to recognize all leases on the Consolidated Balance Sheet as lease assets and lease liabilities based primarily on the present value of future lease payments. Lessor accounting is largely unchanged. A modified retrospective approach is required at adoption which requires all prior periods presented in the financial statements to be restated, with a cumulative effect adjustment to retained earnings as of the beginning of the earliest period presented. This guidance also requires additional disclosures regarding leasing arrangements. The Company expects the adoption of this guidance will not be material to its financial statements. Financial Instruments—Credit Losses In June 2016, the FASB issued accounting guidance, effective for the Company no later than January 1, 2020, related to the impairment of financial instruments. This guidance changes existing impairment recognition to a model that is based on expected losses rather than incurred losses, which is intended to result in more timely recognition of credit losses. This guidance is also intended to reduce the complexity of current accounting guidance by decreasing the number of credit impairment models that entities use to account for debt instruments. A modified retrospective approach is required at adoption with a cumulative effect adjustment to retained earnings as of the adoption date. The guidance also requires additional credit quality disclosures for loans. The Company is currently evaluating the impact of this guidance on its financial statements, and expects its allowance for credit losses to increase upon adoption. The extent of this increase will continue to be evaluated and will depend on economic conditions and the composition of the Company’s loan portfolio at the time of adoption. |
Loans and Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses is established for probable and estimable losses incurred in the Company’s loan and lease portfolio, including unfunded credit commitments, and includes certain amounts that do not represent loss exposure to the Company because those losses are recoverable under loss sharing agreements with the Federal Deposit Insurance Corporation (“FDIC”). The allowance for credit losses is increased through provisions charged to earnings and reduced by net charge-offs. Management evaluates the adequacy of the allowance for incurred losses on a quarterly basis. The allowance recorded for loans in the commercial lending segment is based on reviews of individual credit relationships and considers the migration analysis of commercial lending segment loans and actual loss experience. For each loan type, this historical loss experience is adjusted as necessary to consider any relevant changes in portfolio composition, lending policies, underwriting standards, risk management practices or economic conditions. The results of the analysis are evaluated quarterly to confirm the selected loss experience is appropriate for each commercial loan type. The allowance recorded for impaired loans greater than $5 million in the commercial lending segment is based on an individual loan analysis utilizing expected cash flows discounted using the original effective interest rate, the observable market price of the loan, or the fair value of the collateral, less selling costs, for collateral-dependent loans, rather than the migration analysis. The allowance recorded for all other commercial lending segment loans is determined on a homogenous pool basis and includes consideration of product mix, risk characteristics of the portfolio, delinquency status, bankruptcy experience, portfolio growth and historical losses, adjusted for current trends. The Company also considers the impacts of any loan modifications made to commercial lending segment loans and any subsequent payment defaults to its expectations of cash flows, principal balance, and current expectations about the borrower’s ability to pay in determining the allowance for credit losses. The allowance recorded for Troubled Debt Restructuring (“TDR”) loans and purchased impaired loans in the consumer lending segment is determined on a homogenous pool basis utilizing expected cash flows discounted using the original effective interest rate of the pool, or the prior quarter effective rate, respectively. The allowance for collateral-dependent loans in the consumer lending segment is determined based on the fair value of the collateral less costs to sell. The allowance recorded for all other consumer lending segment loans is determined on a homogenous pool basis and includes consideration of product mix, risk characteristics of the portfolio, bankruptcy experience, delinquency status, refreshed loan-to-value The allowance for the covered loan segment is evaluated each quarter in a manner similar to that described for non-covered In addition, subsequent payment defaults on loan modifications considered TDRs are considered in the underlying factors used in the determination of the appropriateness of the allowance for credit losses. For each loan segment, the Company estimates future loan charge-offs through a variety of analysis, trends and underlying assumptions. With respect to the commercial lending segment, TDRs may be collectively evaluated for impairment where observed performance history, including defaults, is a primary driver of the loss allocation. For commercial TDRs individually evaluated for impairment, attributes of the borrower are the primary factors in determining the allowance for credit losses. However, historical loss experience is also incorporated into the allowance methodology applied to this category of loans. With respect to the consumer lending segment, performance of the portfolio, including defaults on TDRs, is considered when estimating future cash flows. The Company’s methodology for determining the appropriate allowance for credit losses for each loan segment also considers the imprecision inherent in the methodologies used. As a result, in addition to the amounts determined under the methodologies described above, management also considers the potential impact of other qualitative factors which include, but are not limited to, economic factors; geographic and other concentration risks; delinquency and nonaccrual trends; current business conditions; changes in lending policy, underwriting standards and other relevant business practices; results of internal review; and the regulatory environment. The consideration of these items results in adjustments to allowance amounts included in the Company’s allowance for credit losses for each of the above loan segments. The Company also assesses the credit risk associated with off-balance off-balance Credit Quality The credit quality of the Company’s loan portfolios is assessed as a function of net credit losses, levels of nonperforming assets and delinquencies, and credit quality ratings as defined by the Company. For all loan classes, loans are considered past due based on the number of days delinquent except for monthly amortizing loans which are classified delinquent based upon the number of contractually required payments not made (for example, two missed payments is considered 30 days delinquent). When a loan is placed on nonaccrual status, unpaid accrued interest is reversed, reducing interest income in the current period. Commercial lending segment loans are generally placed on nonaccrual status when the collection of principal and interest has become 90 days past due or is otherwise considered doubtful. Commercial lending segment loans are generally fully or partially charged down to the fair value of the collateral securing the loan, less costs to sell, when the loan is placed on nonaccrual. Consumer lending segment loans are generally charged-off 1-4 charge-off 1-4 family charged-off. charged-off 1-4 charged-off charged-off charge-off. For all loan classes, interest payments received on nonaccrual loans are generally recorded as a reduction to a loan’s carrying amount while a loan is on nonaccrual and are recognized as interest income upon payoff of the loan. However, interest income may be recognized for interest payments if the remaining carrying amount of the loan is believed to be collectible. In certain circumstances, loans in any class may be restored to accrual status, such as when a loan has demonstrated sustained repayment performance or no amounts are past due and prospects for future payment are no longer in doubt; or when the loan becomes well secured and is in the process of collection. Loans where there has been a partial charge-off charged-off) Covered loans not considered to be purchased impaired are evaluated for delinquency, nonaccrual status and charge-off The Company classifies its loan portfolios using internal credit quality ratings on a quarterly basis. These ratings include pass, special mention and classified, and are an important part of the Company’s overall credit risk management process and evaluation of the allowance for credit losses. Loans with a pass rating represent those loans not classified on the Company’s rating scale for problem credits, as minimal credit risk has been identified. Special mention loans are those loans that have a potential weakness deserving management’s close attention. Classified loans are those loans where a well-defined weakness has been identified that may put full collection of contractual cash flows at risk. It is possible that others, given the same information, may reach different reasonable conclusions regarding the credit quality rating classification of specific loans. For all loan classes, a loan is considered to be impaired when, based on current events or information, it is probable the Company will be unable to collect all amounts due per the contractual terms of the loan agreement. Impaired loans include all nonaccrual and TDR loans. For all loan classes, interest income on TDR loans is recognized under the modified terms and conditions if the borrower has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles. Interest income is generally not recognized on other impaired loans until the loan is paid off. However, interest income may be recognized for interest payments if the remaining carrying amount of the loan is believed to be collectible. Factors used by the Company in determining whether all principal and interest payments due on commercial and commercial real estate loans will be collected and, therefore, whether those loans are impaired include, but are not limited to, the financial condition of the borrower, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on industry, geographic location and certain financial ratios. The evaluation of impairment on residential mortgages, credit card loans and other retail loans is primarily driven by delinquency status of individual loans or whether a loan has been modified, and considers any government guarantee where applicable. Individual covered loans, whose future losses are covered by loss sharing agreements with the FDIC that substantially reduce the risk of credit losses to the Company, are evaluated for impairment and accounted for in a manner consistent with the class of loan they would have been included in had the loss sharing coverage not been in place. Troubled Debt Restructurings In certain circumstances, the Company may modify the terms of a loan to maximize the collection of amounts due when a borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term. Concessionary modifications are classified as TDRs unless the modification results in only an insignificant delay in payments to be received. The Company recognizes interest on TDRs if the borrower complies with the revised terms and conditions as agreed upon with the Company and has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles, which is generally six months or greater. To the extent a previous restructuring was insignificant, the Company considers the cumulative effect of past restructurings related to the receivable when determining whether a current restructuring is a TDR. Loans classified as TDRs are considered impaired loans for reporting and measurement purposes. The Company has implemented certain restructuring programs that may result in TDRs. However, many of the Company’s TDRs are also determined on a case-by-case For the commercial lending segment, modifications generally result in the Company working with borrowers on a case-by-case Modifications for the consumer lending segment are generally part of programs the Company has initiated. The Company modifies residential mortgage loans under Federal Housing Administration, United States Department of Veterans Affairs, or its own internal programs. Under these programs, the Company offers qualifying homeowners the opportunity to permanently modify their loan and achieve more affordable monthly payments by providing loan concessions. These concessions may include adjustments to interest rates, conversion of adjustable rates to fixed rates, extension of maturity dates or deferrals of payments, capitalization of accrued interest and/or outstanding advances, or in limited situations, partial forgiveness of loan principal. In most instances, participation in residential mortgage loan restructuring programs requires the customer to complete a short-term trial period. A permanent loan modification is contingent on the customer successfully completing the trial period arrangement, and the loan documents are not modified until that time. The Company reports loans in a trial period arrangement as TDRs and continues to report them as TDRs after the trial period. Credit card and other retail loan TDRs are generally part of distinct restructuring programs providing customers experiencing financial difficulty with modifications whereby balances may be amortized up to 60 months, and generally include waiver of fees and reduced interest rates. In addition, the Company considers secured loans to consumer borrowers that have debt discharged through bankruptcy where the borrower has not reaffirmed the debt to be TDRs. Modifications to loans in the covered segment are similar in nature to that described above for non-covered Interest income is recognized on purchased impaired loans through accretion of the difference between the carrying amount of those loans and their expected cash flows. The initial determination of the fair value of the purchased loans includes the impact of expected credit losses and, therefore, no allowance for credit losses is recorded at the purchase date. To the extent credit deterioration occurs after the date of acquisition, the Company records an allowance for credit losses. |
Accounting for Transfers and Servicing of Financial Assets | In accordance with the accounting guidance for asset transfers, the Company considers any ongoing involvement with transferred assets in determining whether the assets can be derecognized from the balance sheet. For loans sold under participation agreements, the Company also considers whether the terms of the loan participation agreement meet the accounting definition of a participating interest. With the exception of servicing and certain performance-based guarantees, the Company’s continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses. Any gain or loss on sale depends on the previous carrying amount of the transferred financial assets, the consideration received, and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests that continue to be held by the Company are initially recognized at fair value. |
Variable Interest Entities | The Company is not required to consolidate VIEs in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary. In such cases, the Company does not have both the power to direct the entities’ most significant activities and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. The Company’s investments in these unconsolidated VIEs are carried in other assets on the Consolidated Balance Sheet. The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are generally carried in other liabilities on the Consolidated Balance Sheet. The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment recorded on the Company’s Consolidated Balance Sheet, net of unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the community-based business and housing projects completely fail and do not meet certain government compliance requirements resulting in recapture of the related tax credits. The Company is required to consolidate VIEs in which it has concluded it has a controlling financial interest. The Company sponsors entities to which it transfers its interests in tax-advantaged The majority of the assets of these consolidated VIEs are reported in other assets, and the liabilities are reported in long-term debt and other liabilities. The assets of a particular VIE are the primary source of funds to settle its obligations. The creditors of the VIEs do not have recourse to the general credit of the Company. The Company’s exposure to the consolidated VIEs is generally limited to the carrying value of its variable interests plus any related tax credits previously recognized or transferred to others with a guarantee. |
Netting Arrangements for Certain Financial Instruments | The Company’s derivative contracts typically include offsetting rights (referred to as netting arrangements), and depending on expected volume, credit risk, and counterparty preference, collateral maintenance may be required. For all derivatives under collateral support arrangements, fair value is determined daily and, depending on the collateral maintenance requirements, the Company and a counterparty may receive or deliver collateral, based upon the net fair value of all derivative positions between the Company and the counterparty. Collateral is typically cash, but securities may be allowed under collateral arrangements with certain counterparties. Receivables and payables related to cash collateral are included in other assets and other liabilities on the Consolidated Balance Sheet, along with the related derivative asset and liability fair values. Any securities pledged to counterparties as collateral remain on the Consolidated Balance Sheet. Securities received from counterparties as collateral are not recognized on the Consolidated Balance Sheet, unless the counterparty defaults. In general, securities used as collateral can be sold, repledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party. As part of the Company’s treasury and broker-dealer operations, the Company executes transactions that are treated as securities sold under agreements to repurchase or securities purchased under agreements to resell, both of which are accounted for as collateralized financings. Securities sold under agreements to repurchase include repurchase agreements and securities loaned transactions. Securities purchased under agreements to resell include reverse repurchase agreements and securities borrowed transactions. For securities sold under agreements to repurchase, the Company records a liability for the cash received, which is included in short-term borrowings on the Consolidated Balance Sheet. For securities purchased under agreements to resell, the Company records a receivable for the cash paid, which is included in other assets on the Consolidated Balance Sheet. Securities transferred to counterparties under repurchase agreements and securities loaned transactions continue to be recognized on the Consolidated Balance Sheet, are measured at fair value, and are included in investment securities or other assets. Securities received from counterparties under reverse repurchase agreements and securities borrowed transactions are not recognized on the Consolidated Balance Sheet unless the counterparty defaults. The securities transferred under repurchase and reverse repurchase transactions typically are U.S. Treasury and agency securities, residential agency mortgage-backed securities or corporate debt securities. The securities loaned or borrowed typically are corporate debt securities traded by the Company’s broker-dealer. In general, the securities transferred can be sold, repledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party. Repurchase/reverse repurchase and securities loaned/borrowed transactions expose the Company to counterparty risk. The Company manages this risk by performing assessments, independent of business line managers, and establishing concentration limits on each counterparty. Additionally, these transactions include collateral arrangements that require the fair values of the underlying securities to be determined daily, resulting in cash being obtained or refunded to counterparties to maintain specified collateral levels. The Company executes its derivative, repurchase/reverse repurchase and securities loaned/borrowed transactions under the respective industry standard agreements. These agreements include master netting arrangements that allow for multiple contracts executed with the same counterparty to be viewed as a single arrangement. This allows for net settlement of a single amount on a daily basis. In the event of default, the master netting arrangement provides for close-out netting, which allows all of these positions with the defaulting counterparty to be terminated and net settled with a single payment amount. The Company has elected to offset the assets and liabilities under netting arrangements for the balance sheet presentation of the majority of its derivative counterparties. The netting occurs at the counterparty level, and includes all assets and liabilities related to the derivative contracts, including those associated with cash collateral received or delivered. The Company has not elected to offset the assets and liabilities under netting arrangements for the balance sheet presentation of repurchase/reverse repurchase and securities loaned/borrowed transactions. |
Fair Values of Assets and Liabilities | The Company uses fair value measurements for the initial recording of certain assets and liabilities, periodic remeasurement of certain assets and liabilities, and disclosures. Derivatives, trading and available-for-sale lower-of-cost-or-fair Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value measurement reflects all of the assumptions that market participants would use in pricing the asset or liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset and the risk of nonperformance. The Company groups its assets and liabilities measured at fair value into a three-level hierarchy for valuation techniques used to measure financial assets and financial liabilities at fair value. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are: • Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 1 includes U.S. Treasury securities, as well as exchange-traded instruments. • Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 includes debt securities that are traded less frequently than exchange-traded instruments and which are typically valued using third party pricing services; derivative contracts and other assets and liabilities, including securities, whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data; and MLHFS whose values are determined using quoted prices for similar assets or pricing models with inputs that are observable in the market or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category includes MSRs and certain derivative contracts. When the Company changes its valuation inputs for measuring financial assets and financial liabilities at fair value, either due to changes in current market conditions or other factors, it may need to transfer those assets or liabilities to another level in the hierarchy based on the new inputs used. The Company recognizes these transfers at the end of the reporting period in which the transfers occur. The Company has processes and controls in place to increase the reliability of estimates it makes in determining fair value measurements. Items quoted on an exchange are verified to the quoted price. Items provided by a third party pricing service are subject to price verification procedures as described in more detail in the specific valuation discussions below. For fair value measurements modeled internally, the Company’s valuation models are subject to the Company’s Model Risk Governance Policy and Program, as maintained by the Company’s risk management department. The purpose of model validation is to assess the accuracy of the models’ input, processing, and reporting components. All models are required to be independently reviewed and approved prior to being placed in use, and are subject to formal change control procedures. Under the Company’s Model Risk Governance Policy, models are required to be reviewed at least annually to ensure they are operating as intended. Inputs into the models are market observable inputs whenever available. When market observable inputs are not available, the inputs are developed based upon analysis of historical experience and evaluation of other relevant market data. Significant unobservable model inputs are subject to review by senior management in corporate functions, who are independent from the modeling. Significant unobservable model inputs are also compared to actual results, typically on a quarterly basis. Significant Level 3 fair value measurements are also subject to corporate-level review and are benchmarked to market transactions or other market data, when available. |
Line of Business Financial Perf
Line of Business Financial Performance (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Line of Business Financial Performance | Table 11 Line of Business Financial Performance Corporate and Commercial Banking Consumer and Business Banking Three Months Ended March 31 (Dollars in Millions) 2018 2017 Percent 2018 2017 Percent Condensed Income Statement Net interest income (taxable-equivalent basis) $ 724 $ 712 1.7 % $ 1,524 $ 1,418 7.5 % Noninterest income 207 247 (16.2 ) 568 571 (.5 ) Securities gains (losses), net – (3 ) * – – – Total net revenue 931 956 (2.6 ) 2,092 1,989 5.2 Noninterest expense 404 394 2.5 1,291 1,253 3.0 Other intangibles 1 1 – 7 7 – Total noninterest expense 405 395 2.5 1,298 1,260 3.0 Income before provision and income taxes 526 561 (6.2 ) 794 729 8.9 Provision for credit losses 14 36 (61.1 ) 56 65 (13.8 ) Income before income taxes 512 525 (2.5 ) 738 664 11.1 Income taxes and taxable-equivalent adjustment 128 191 (33.0 ) 185 242 (23.6 ) Net income 384 334 15.0 553 422 31.0 Net (income) loss attributable to noncontrolling interests – – – – – – Net income attributable to U.S. Bancorp $ 384 $ 334 15.0 $ 553 $ 422 31.0 Average Balance Sheet Commercial $ 74,808 $ 72,414 3.3 % $ 9,838 $ 9,913 (.8 )% Commercial real estate 19,137 21,305 (10.2 ) 18,217 18,551 (1.8 ) Residential mortgages 6 8 (25.0 ) 57,066 55,239 3.3 Credit card – – – – – – Other retail – – – 55,010 51,687 6.4 Total loans, excluding covered loans 93,951 93,727 .2 140,131 135,390 3.5 Covered loans – – – 3,048 3,717 (18.0 ) Total loans 93,951 93,727 .2 143,179 139,107 2.9 Goodwill 1,647 1,647 – 3,681 3,681 – Other intangible assets 12 15 (20.0 ) 2,871 2,768 3.7 Assets 102,642 102,309 .3 157,544 153,647 2.5 Noninterest-bearing deposits 34,388 36,939 (6.9 ) 27,381 26,965 1.5 Interest checking 9,493 9,256 2.6 49,400 46,298 6.7 Savings products 43,938 48,820 (10.0 ) 61,543 59,850 2.8 Time deposits 16,523 12,484 32.4 12,576 13,207 (4.8 ) Total deposits 104,342 107,499 (2.9 ) 150,900 146,320 3.1 Total U.S. Bancorp shareholders’ equity 10,417 9,680 7.6 12,219 11,522 6.0 * Not meaningful (a) Presented net of related rewards and rebate costs and certain partner payments of $534 million and $468 million for the three months ended March 31, 2018 and 2017, respectively. (b) Includes revenue generated from contracts with customers of $1.8 billion and $1.7 billion for the three months ended March 31, 2018 and 2017, respectively. Wealth Management and Investment Services Payment Services Treasury and Corporate Support Consolidated Company 2018 2017 Percent 2018 2017 Percent 2018 2017 Percent 2018 2017 Percent $ 284 $ 250 13.6 % $ 612 $ 595 2.9 % $ 53 $ 55 (3.6 )% $ 3,197 $ 3,030 5.5 % 432 399 8.3 847 (a) 798 (a) 6.1 213 215 (.9 ) 2,267 (b) 2,230 (b) 1.7 – – – – – – 5 32 (84.4 ) 5 29 (82.8 ) 716 649 10.3 1,459 1,393 4.7 271 302 (10.3 ) 5,469 5,289 3.4 421 398 5.8 702 646 8.7 198 174 13.8 3,016 2,865 5.3 4 5 (20.0 ) 27 31 (12.9 ) – – – 39 44 (11.4 ) 425 403 5.5 729 677 7.7 198 174 13.8 3,055 2,909 5.0 291 246 18.3 730 716 2.0 73 128 (43.0 ) 2,414 2,380 1.4 1 1 – 272 241 12.9 (2 ) 2 * 341 345 (1.2 ) 290 245 18.4 458 475 (3.6 ) 75 126 (40.5 ) 2,073 2,035 1.9 73 89 (18.0 ) 115 173 (33.5 ) (110 ) (146 ) 24.7 391 549 (28.8 ) 217 156 39.1 343 302 13.6 185 272 (32.0 ) 1,682 1,486 13.2 – – – – (7 ) * (7 ) (6 ) (16.7 ) (7 ) (13 ) 46.2 $ 217 $ 156 39.1 $ 343 $ 295 16.3 $ 178 $ 266 (33.1 ) $ 1,675 $ 1,473 13.7 $ 3,660 $ 3,190 14.7 % $ 8,354 $ 7,611 9.8 % $ 805 $ 611 31.8 % $ 97,465 $ 93,739 4.0 % 509 514 (1.0 ) – – – 2,503 2,788 (10.2 ) 40,366 43,158 (6.5 ) 3,096 2,645 17.1 – – – 6 8 (25.0 ) 60,174 57,900 3.9 – – – 21,284 20,845 2.1 – – – 21,284 20,845 2.1 1,617 1,617 – 424 480 (11.7 ) – – – 57,051 53,784 6.1 8,882 7,966 11.5 30,062 28,936 3.9 3,314 3,407 (2.7 ) 276,340 269,426 2.6 – – – – – – – 15 * 3,048 3,732 (18.3 ) 8,882 7,966 11.5 30,062 28,936 3.9 3,314 3,422 (3.2 ) 279,388 273,158 2.3 1,570 1,566 .3 2,542 2,453 3.6 – – – 9,440 9,347 1.0 70 87 (19.5 ) 396 437 (9.4 ) – – – 3,349 3,307 1.3 11,875 11,446 3.7 36,173 34,566 4.6 146,054 139,343 4.8 454,288 441,311 2.9 14,329 13,841 3.5 1,127 1,024 10.1 2,257 1,969 14.6 79,482 80,738 (1.6 ) 11,423 10,087 13.2 – – – 42 40 5.0 70,358 65,681 7.1 41,662 42,145 (1.1 ) 103 99 4.0 509 454 12.1 147,755 151,368 (2.4 ) 3,695 4,755 (22.3 ) 3 1 * 4,188 199 * 36,985 30,646 20.7 71,109 70,828 .4 1,233 1,124 9.7 6,996 2,662 * 334,580 328,433 1.9 2,399 2,403 (.2 ) 6,622 6,405 3.4 17,168 17,913 (4.2 ) 48,825 47,923 1.9 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Table 4 Investment Securities Available-for-Sale Held-to-Maturity At March 31, 2018 (Dollars in Millions) Amortized Fair Value Weighted- Weighted- Amortized Fair Value Weighted- Weighted- U.S. Treasury and Agencies Maturing in one year or less $ 4,338 $ 4,320 .4 .88 % $ – $ – – – % Maturing after one year through five years 17,042 16,640 3.3 1.66 1,880 1,843 3.3 1.82 Maturing after five years through ten years 1,043 1,006 7.0 2.29 3,273 3,131 5.7 1.79 Maturing after ten years – – – – – – – – Total $ 22,423 $ 21,966 2.9 1.54 % $ 5,153 $ 4,974 4.8 1.80 % Mortgage-Backed Securities (a) Maturing in one year or less $ 110 $ 111 .6 4.22 % $ 30 $ 30 1.3 2.54 % Maturing after one year through five years 13,809 13,498 4.5 2.22 18,232 17,747 4.2 2.14 Maturing after five years through ten years 22,800 22,275 6.0 2.35 20,867 20,322 6.1 2.42 Maturing after ten years 2,556 2,566 14.5 2.78 297 298 13.9 2.67 Total $ 39,275 $ 38,450 6.0 2.34 % $ 39,426 $ 38,397 5.3 2.29 % Asset-Backed Securities (a) Maturing in one year or less $ – $ – – – % $ – $ 1 .4 2.48 % Maturing after one year through five years 408 415 3.7 4.63 4 4 1.7 2.60 Maturing after five years through ten years – – – – 2 2 4.7 2.56 Maturing after ten years – – – – – 2 13.3 2.50 Total $ 408 $ 415 3.7 4.63 % $ 6 $ 9 2.9 2.58 % Obligations of State and Political Maturing in one year or less $ 129 $ 131 .4 5.88 % $ – $ – .7 6.33 % Maturing after one year through five years 661 678 3.2 4.92 1 1 3.9 6.78 Maturing after five years through ten years 3,672 3,667 8.5 4.46 5 6 8.0 2.18 Maturing after ten years 1,918 1,818 19.2 4.11 – – – – Total $ 6,380 $ 6,294 11.0 4.43 % $ 6 $ 7 7.4 2.75 % Other Maturing in one year or less $ – $ – – .01 % $ – $ – – – % Maturing after one year through five years – – – – 21 21 1.0 2.52 Maturing after five years through ten years – – – – – – – – Maturing after ten years – – – – – – – – Total $ – $ – – .01 % $ 21 $ 21 1.0 2.52 % Total investment securities (d) $ 68,486 $ 67,125 5.5 2.29 % $ 44,612 $ 43,408 5.2 2.24 % (a) Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities anticipating future prepayments. (b) Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, yield to maturity if purchased at par or a discount. (c) Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and contractual maturity for securities with a fair value equal to or below par. (d) The weighted-average maturity of the available-for-sale held-to-maturity (e) Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent and 35 percent for the three months ended March 31, 2018 and 2017, respectively. Yields on available-for-sale held-to-maturity available-for-sale held-to-maturity. March 31, 2018 December 31, 2017 (Dollars in Millions) Amortized Percent Amortized Percent U.S. Treasury and agencies $ 27,576 24.4 % $ 28,767 25.5 % Mortgage-backed securities 78,701 69.6 77,606 68.6 Asset-backed securities 414 .4 419 .4 Obligations of state and political subdivisions 6,386 5.6 6,246 5.5 Other 21 – 41 – Total investment securities $ 113,098 100.0 % $ 113,079 100.0 % |
Investment Securities Available-for-Sale | The amortized cost, other-than-temporary impairment recorded in other comprehensive income (loss), gross unrealized holding gains and losses, and fair value of held-to-maturity available-for-sale March 31, 2018 December 31, 2017 Unrealized Losses Unrealized Losses (Dollars in Millions) Amortized Unrealized Other-than- Other (b) Fair Value Amortized Unrealized Other-than- Other (b) Fair Value Available-for-sale U.S. Treasury and agencies $ 22,423 $ 1 $ – $ (458 ) $ 21,966 $ 23,586 $ 3 $ – $ (288 ) $ 23,301 Mortgage-backed securities Residential agency 39,268 143 – (968 ) 38,443 38,450 152 – (571 ) 38,031 Commercial agency 7 – – – 7 6 – – – 6 Other asset-backed securities 408 7 – – 415 413 6 – – 419 Obligations of state and political subdivisions 6,380 51 – (137 ) 6,294 6,240 147 – (29 ) 6,358 Other – – – – – 22 – – – 22 Total available-for-sale $ 68,486 $ 202 $ – $ (1,563 ) $ 67,125 $ 68,717 $ 308 $ – $ (888 ) $ 68,137 (a) Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired. (b) Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired. |
Investment Securities Held-to-Maturity | The amortized cost, other-than-temporary impairment recorded in other comprehensive income (loss), gross unrealized holding gains and losses, and fair value of held-to-maturity available-for-sale March 31, 2018 December 31, 2017 Unrealized Losses Unrealized Losses (Dollars in Millions) Amortized Unrealized Other-than- Other (b) Fair Value Amortized Unrealized Other-than- Other (b) Fair Value Held-to-maturity U.S. Treasury and agencies $ 5,153 $ 2 $ – $ (181 ) $ 4,974 $ 5,181 $ 5 $ – $ (120 ) $ 5,066 Residential agency mortgage-backed securities 39,426 37 – (1,066 ) 38,397 39,150 48 – (579 ) 38,619 Asset-backed securities Collateralized debt obligations/Collateralized loan obligations – 2 – – 2 – 4 – – 4 Other 6 1 – – 7 6 2 – – 8 Obligations of state and political subdivisions 6 1 – – 7 6 1 – – 7 Obligations of foreign governments 9 – – – 9 7 – – – 7 Other 12 – – – 12 12 – – – 12 Total held-to-maturity $ 44,612 $ 43 $ – $ (1,247 ) $ 43,408 $ 44,362 $ 60 $ – $ (699 ) $ 43,723 (a) Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired. (b) Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired. |
Amount of Interest Income from Taxable and Non-Taxable Investment Securities | The following table provides information about the amount of interest income from taxable and non-taxable Three Months Ended March 31 (Dollars in Millions) 2018 2017 Taxable $ 561 $ 483 Non-taxable 52 47 Total interest income from investment securities $ 613 $ 530 |
Amount of Gross Gains and Losses Realized through Sales of Available-for-Sale Investment Securities | The following table provides information about the amount of gross gains and losses realized through the sales of available-for-sale Three Months Ended March 31 (Dollars in Millions) 2018 2017 Realized gains $ 5 $ 47 Realized losses – (18 ) Net realized gains (losses) $ 5 $ 29 Income tax (benefit) on net realized gains (losses) $ 1 $ 11 |
Gross Unrealized Losses and Fair Value of Company's Investment Securities | The following table shows the gross unrealized losses and fair value of the Company’s investment securities with unrealized losses, aggregated by investment category and length of time the individual investment securities have been in continuous unrealized loss positions, at March 31, 2018: Less Than 12 Months 12 Months or Greater Total (Dollars in Millions) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Held-to-maturity U.S. Treasury and agencies $ 2,261 $ (42 ) $ 2,557 $ (139 ) $ 4,818 $ (181 ) Residential agency mortgage-backed securities 19,957 (448 ) 14,298 (618 ) 34,255 (1,066 ) Other asset-backed securities – – 2 – 2 – Other – – 12 – 12 – Total held-to-maturity $ 22,218 $ (490 ) $ 16,869 $ (757 ) $ 39,087 $ (1,247 ) Available-for-sale U.S. Treasury and agencies $ 13,116 $ (253 ) $ 8,747 $ (205 ) $ 21,863 $ (458 ) Residential agency mortgage-backed securities 11,235 (236 ) 18,977 (732 ) 30,212 (968 ) Commercial agency mortgage-backed securities 6 – – – 6 – Obligations of state and political subdivisions 2,437 (46 ) 1,249 (91 ) 3,686 (137 ) Total available-for-sale $ 26,794 $ (535 ) $ 28,973 $ (1,028 ) $ 55,767 $ (1,563 ) |
Loans and Allowance for Credi27
Loans and Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Composition of Loan Portfolio | The composition of the loan portfolio, disaggregated by class and underlying specific portfolio type, was as follows: March 31, 2018 December 31, 2017 (Dollars in Millions) Amount Percent Amount Percent Commercial Commercial $ 92,511 33.3 % $ 91,958 32.8 % Lease financing 5,586 2.0 5,603 2.0 Total commercial 98,097 35.3 97,561 34.8 Commercial Real Estate Commercial mortgages 28,982 10.4 29,367 10.5 Construction and development 11,158 4.0 11,096 4.0 Total commercial real estate 40,140 14.4 40,463 14.5 Residential Mortgages Residential mortgages 47,583 17.1 46,685 16.6 Home equity loans, first liens 12,894 4.7 13,098 4.7 Total residential mortgages 60,477 21.8 59,783 21.3 Credit Card 20,901 7.5 22,180 7.9 Other Retail Retail leasing 8,048 2.9 7,988 2.8 Home equity and second mortgages 16,030 5.8 16,327 5.8 Revolving credit 3,061 1.1 3,183 1.1 Installment 9,089 3.3 8,989 3.2 Automobile 18,762 6.7 18,934 6.8 Student (a) 327 .1 1,903 .7 Total other retail 55,317 19.9 57,324 20.4 Total loans, excluding covered loans 274,932 98.9 277,311 98.9 Covered Loans 2,979 1.1 3,121 1.1 Total loans $ 277,911 100.0 % $ 280,432 100.0 % (a) Effective March 31, 2018, the Company transferred all of its federally guaranteed student loans to loans held for sale. |
Changes in Accretable Balance for Purchased Impaired Loans | Changes in the accretable balance for purchased impaired loans were as follows: Three Months Ended March 31 (Dollars in Millions) 2018 2017 Balance at beginning of period $ 350 $ 698 Accretion (91 ) (90 ) Disposals (12 ) (23 ) Reclassifications from nonaccretable difference (a) 10 53 Other – (1 ) Balance at end of period $ 257 $ 637 (a) Primarily relates to changes in expected credit performance. |
Activity in Allowance for Credit Losses by Portfolio Class | Activity in the allowance for credit losses by portfolio class was as follows: (Dollars in Millions) Commercial Commercial Residential Credit Other Total Loans, Covered Total Balance at December 31, 2017 $ 1,372 $ 831 $ 449 $ 1,056 $ 678 $ 4,386 $ 31 $ 4,417 Add Provision for credit losses 74 (8 ) 1 219 60 346 (5 ) 341 Deduct Loans charged-off 94 3 13 248 95 453 – 453 Less recoveries of loans charged-off (34 ) (6 ) (6 ) (37 ) (29 ) (112 ) – (112 ) Net loans charged-off 60 (3 ) 7 211 66 341 – 341 Other changes (a) – – – – – – – – Balance at March 31, 2018 $ 1,386 $ 826 $ 443 $ 1,064 $ 672 $ 4,391 $ 26 $ 4,417 Balance at December 31, 2016 $ 1,450 $ 812 $ 510 $ 934 $ 617 $ 4,323 $ 34 $ 4,357 Add Provision for credit losses 54 28 (13 ) 211 65 345 – 345 Deduct Loans charged-off 96 3 17 212 89 417 – 417 Less recoveries of loans charged-off (21 ) (5 ) (5 ) (22 ) (29 ) (82 ) – (82 ) Net loans charged-off 75 (2 ) 12 190 60 335 – 335 Other changes (a) – – – – – – (1 ) (1 ) Balance at March 31, 2017 $ 1,429 $ 842 $ 485 $ 955 $ 622 $ 4,333 $ 33 $ 4,366 (a) Includes net changes in credit losses to be reimbursed by the FDIC and reductions in the allowance for covered loans where the reversal of a previously recorded allowance was offset by an associated decrease in the indemnification asset, and the impact of any loan sales. |
Additional Detail of Allowance for Credit Losses and Related Loan Balances by Portfolio Class | Additional detail of the allowance for credit losses by portfolio class was as follows: (Dollars in Millions) Commercial Commercial Residential Credit Other Total Loans, Covered Total Allowance Balance at March 31, 2018 Related to Loans individually evaluated for impairment (a) $ 28 $ 3 $ – $ – $ – $ 31 $ – $ 31 TDRs collectively evaluated for impairment 12 5 138 60 16 231 – 231 Other loans collectively evaluated for impairment 1,346 815 305 1,004 656 4,126 – 4,126 Loans acquired with deteriorated credit quality – 3 – – – 3 26 29 Total allowance for credit losses $ 1,386 $ 826 $ 443 $ 1,064 $ 672 $ 4,391 $ 26 $ 4,417 Allowance Balance at December 31, 2017 Related to Loans individually evaluated for impairment (a) $ 23 $ 4 $ – $ – $ – $ 27 $ – $ 27 TDRs collectively evaluated for impairment 14 4 139 60 19 236 1 237 Other loans collectively evaluated for impairment 1,335 818 310 996 659 4,118 – 4,118 Loans acquired with deteriorated credit quality – 5 – – – 5 30 35 Total allowance for credit losses $ 1,372 $ 831 $ 449 $ 1,056 $ 678 $ 4,386 $ 31 $ 4,417 (a) Represents the allowance for credit losses related to loans greater than $5 million classified as nonperforming or TDRs. Additional detail of loan balances by portfolio class was as follows: (Dollars in Millions) Commercial Commercial Residential Credit Other Total Loans, Covered Total March 31, 2018 Loans individually evaluated for impairment (a) $ 327 $ 50 $ – $ – $ – $ 377 $ – $ 377 TDRs collectively evaluated for impairment 154 151 3,339 234 181 4,059 36 4,095 Other loans collectively evaluated for impairment 97,616 39,881 57,137 20,667 55,136 270,437 977 271,414 Loans acquired with deteriorated credit quality – 58 1 – – 59 1,966 2,025 Total loans $ 98,097 $ 40,140 $ 60,477 $ 20,901 $ 55,317 $ 274,932 $ 2,979 $ 277,911 December 31, 2017 Loans individually evaluated for impairment (a) $ 337 $ 71 $ – $ – $ – $ 408 $ – $ 408 TDRs collectively evaluated for impairment 148 145 3,524 230 186 4,233 36 4,269 Other loans collectively evaluated for impairment 97,076 40,174 56,258 21,950 57,138 272,596 1,073 273,669 Loans acquired with deteriorated credit quality – 73 1 – – 74 2,012 2,086 Total loans $ 97,561 $ 40,463 $ 59,783 $ 22,180 $ 57,324 $ 277,311 $ 3,121 $ 280,432 (a) Represents loans greater than $5 million classified as nonperforming or TDRs. (b) Includes expected reimbursements from the FDIC under loss sharing agreements. |
Summary of Loans by Portfolio Class, Including Delinquency Status of those that Continue to Accrue Interest and are Nonperforming | The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to accrue interest, and those that are nonperforming: Accruing (Dollars in Millions) Current 30-89 Days 90 Days or Nonperforming Total March 31, 2018 Commercial $ 97,494 $ 241 $ 61 $ 301 $ 98,097 Commercial real estate 39,979 38 4 119 40,140 Residential mortgages (a) 59,769 146 132 430 60,477 Credit card 20,356 275 270 – 20,901 Other retail 54,730 320 99 168 55,317 Total loans, excluding covered loans 272,328 1,020 566 1,018 274,932 Covered loans 2,790 47 136 6 2,979 Total loans $ 275,118 $ 1,067 $ 702 $ 1,024 $ 277,911 December 31, 2017 Commercial $ 97,005 $ 250 $ 57 $ 249 $ 97,561 Commercial real estate 40,279 36 6 142 40,463 Residential mortgages (a) 59,013 198 130 442 59,783 Credit card 21,593 302 284 1 22,180 Other retail 56,685 376 95 168 57,324 Total loans, excluding covered loans 274,575 1,162 572 1,002 277,311 Covered loans 2,917 50 148 6 3,121 Total loans $ 277,492 $ 1,212 $ 720 $ 1,008 $ 280,432 (a) At March 31, 2018, $376 million of loans 30–89 days past due and $1.9 billion of loans 90 days or more past due purchased from Government National Mortgage Association (“GNMA”) mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current, compared with $385 million and $1.9 billion at December 31, 2017, respectively. |
Summary of Loans by Portfolio Class and Company's Internal Credit Quality Rating | The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating: Criticized (Dollars in Millions) Pass Special Classified (a) Total Total March 31, 2018 Commercial $ 95,757 $ 1,290 $ 1,050 $ 2,340 $ 98,097 Commercial real estate 38,990 556 594 1,150 40,140 Residential mortgages (b) 59,855 18 604 622 60,477 Credit card 20,631 – 270 270 20,901 Other retail 55,005 10 302 312 55,317 Total loans, excluding covered loans 270,238 1,874 2,820 4,694 274,932 Covered loans 2,932 – 47 47 2,979 Total loans $ 273,170 $ 1,874 $ 2,867 $ 4,741 $ 277,911 Total outstanding commitments $ 586,609 $ 3,129 $ 3,616 $ 6,745 $ 593,354 December 31, 2017 Commercial $ 95,297 $ 1,130 $ 1,134 $ 2,264 $ 97,561 Commercial real estate 39,162 648 653 1,301 40,463 Residential mortgages (b) 59,141 16 626 642 59,783 Credit card 21,895 – 285 285 22,180 Other retail 57,009 6 309 315 57,324 Total loans, excluding covered loans 272,504 1,800 3,007 4,807 277,311 Covered loans 3,072 – 49 49 3,121 Total loans $ 275,576 $ 1,800 $ 3,056 $ 4,856 $ 280,432 Total outstanding commitments $ 584,072 $ 3,142 $ 3,987 $ 7,129 $ 591,201 (a) Classified rating on consumer loans primarily based on delinquency status. (b) At March 31, 2018, $1.9 billion of GNMA loans 90 days or more past due and $1.6 billion of restructured GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs were classified with a pass rating, compared with $1.9 billion and $1.7 billion at December 31, 2017, respectively. |
Summary of Impaired Loans, which Include Nonaccrual and TDR Loans, by Portfolio Class | A summary of impaired loans, which include all nonaccrual and TDR loans, by portfolio class was as follows: (Dollars in Millions) Period-end Unpaid Valuation Commitments March 31, 2018 Commercial $ 540 $ 833 $ 42 $ 214 Commercial real estate 254 573 9 – Residential mortgages 1,881 2,118 109 1 Credit card 234 234 60 – Other retail 299 383 19 4 Total loans, excluding GNMA and covered loans 3,208 4,141 239 219 Loans purchased from GNMA mortgage pools 1,566 1,566 30 – Covered loans 38 46 1 – Total $ 4,812 $ 5,753 $ 270 $ 219 December 31, 2017 Commercial $ 550 $ 915 $ 44 $ 199 Commercial real estate 280 596 11 – Residential mortgages 1,946 2,339 116 1 Credit card 230 230 60 – Other retail 302 400 22 4 Total loans, excluding GNMA and covered loans 3,308 4,480 253 204 Loans purchased from GNMA mortgage pools 1,681 1,681 25 – Covered loans 38 44 1 – Total $ 5,027 $ 6,205 $ 279 $ 204 (a) Substantially all loans classified as impaired at March 31, 2018 and December 31, 2017, had an associated allowance for credit losses. |
Impaired Loans Average Recorded Investment and Interest Income Recognized | Additional information on impaired loans follows: 2018 2017 Three Months Ended March 31 (Dollars in Millions) Average Interest Average Interest Commercial $ 545 $ 1 $ 817 $ 1 Commercial real estate 267 2 278 2 Residential mortgages 1,914 20 2,240 29 Credit card 232 1 225 1 Other retail 300 4 280 4 Total loans, excluding GNMA and covered loans 3,258 28 3,840 37 Loans purchased from GNMA mortgage pools 1,624 12 1,646 18 Covered loans 38 – 36 – Total $ 4,920 $ 40 $ 5,522 $ 55 |
Summary of Loans Modified as TDRs | The following table provides a summary of loans modified as TDRs during the periods presented by portfolio class: 2018 2017 Three Months Ended March 31 (Dollars in Millions) Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification Commercial 623 $ 81 $ 75 830 $ 137 $ 128 Commercial real estate 29 16 16 23 9 8 Residential mortgages 148 17 16 356 40 41 Credit card 8,546 43 43 9,405 45 46 Other retail 559 11 10 622 11 9 Total loans, excluding GNMA and covered loans 9,905 168 160 11,236 242 232 Loans purchased from GNMA mortgage pools 888 117 113 2,929 387 378 Covered loans – – – 4 1 1 Total loans 10,793 $ 285 $ 273 14,169 $ 630 $ 611 |
Summary of Loans Modified as TDRs in the Past Twelve Months that have Subsequently Defaulted | The following table provides a summary of TDR loans that defaulted (fully or partially charged-off 2018 2017 Three Months Ended March 31 (Dollars in Millions) Number Amount Number Amount Commercial 239 $ 9 173 $ 8 Commercial real estate 8 4 8 2 Residential mortgages 56 4 72 9 Credit card 2,036 9 2,047 9 Other retail 77 1 129 2 Total loans, excluding GNMA and covered loans 2,416 27 2,429 30 Loans purchased from GNMA mortgage pools 232 31 218 30 Covered loans 1 – – – Total loans 2,649 $ 58 2,647 $ 60 |
Carrying Amount of Covered Assets | The carrying amount of the covered assets consisted of purchased impaired loans, purchased nonimpaired loans and other assets as shown in the following table: March 31, 2018 December 31, 2017 (Dollars in Millions) Purchased Purchased Other Total Purchased Purchased Other Total Residential mortgage loans $ 1,966 $ 374 $ – $ 2,340 $ 2,012 $ 400 $ – $ 2,412 Other retail loans – 137 – 137 – 151 – 151 Losses reimbursable by the FDIC (a) – – 327 327 – – 320 320 Unamortized changes in FDIC asset (b) – – 175 175 – – 238 238 Covered loans 1,966 511 502 2,979 2,012 551 558 3,121 Foreclosed real estate – – 20 20 – – 21 21 Total covered assets $ 1,966 $ 511 $ 522 $ 2,999 $ 2,012 $ 551 $ 579 $ 3,142 (a) Relates to loss sharing agreements with remaining terms up through the fourth quarter of 2019. (b) Represents decreases in expected reimbursements by the FDIC as a result of decreases in expected losses on the covered loans. These amounts are amortized as a reduction in interest income on covered loans over the shorter of the expected life of the respective covered loans or the remaining contractual term of the indemnification agreements. |
Accounting for Transfers and 28
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Investments in Community Development and Tax-advantaged VIEs | The following table provides a summary of investments in community development and tax-advantaged (Dollars in Millions) March 31, 2018 December 31, 2017 Investment carrying amount $ 5,637 $ 5,660 Unfunded capital and other commitments 2,648 2,770 Maximum exposure to loss 12,264 12,120 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Text Block [Abstract] | |
Changes in Fair Value of Capitalized MSRs | Changes in fair value of capitalized MSRs are summarized as follows: Three Months Ended (Dollars in Millions) 2018 2017 Balance at beginning of period $ 2,645 $ 2,591 Rights purchased 2 2 Rights capitalized 100 122 Changes in fair value of MSRs Due to fluctuations in market interest rates (a) 114 20 Due to revised assumptions or models (b) 24 12 Other changes in fair value (c) (105 ) (105 ) Balance at end of period $ 2,780 $ 2,642 (a) Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits. (b) Includes changes in MSR value not caused by changes in market interest rates, such as changes in cost to service, ancillary income and option adjusted spread, as well as the impact of any model changes. (c) Primarily represents changes due to realization of expected cash flows over time (decay). |
Sensitivity to Changes in Interest Rates of the Fair Value of MSRs Portfolio and Related Derivative Instruments | The estimated sensitivity to changes in interest rates of the fair value of the MSRs portfolio and the related derivative instruments was as follows: March 31, 2018 December 31, 2017 (Dollars in Millions) Down Down Down Up Up Up Down Down Down Up Up Up MSR portfolio $ (433 ) $ (192 ) $ (90 ) $ 77 $ 142 $ 240 $ (520 ) $ (231 ) $ (109 ) $ 95 $ 177 $ 302 Derivative instrument hedges 399 187 90 (82 ) (154 ) (277 ) 453 216 105 (96 ) (184 ) (336 ) Net sensitivity $ (34 ) $ (5 ) $ – $ (5 ) $ (12 ) $ (37 ) $ (67 ) $ (15 ) $ (4 ) $ (1 ) $ (7 ) $ (34 ) |
MSRs and Related Characteristics by Portfolio | A summary of the Company’s MSRs and related characteristics by portfolio was as follows: March 31, 2018 December 31, 2017 (Dollars in Millions) HFA Government Conventional (c) Total HFA Government Conventional (c) Total Servicing portfolio (a) $ 41,815 $ 37,055 $ 154,182 $ 233,052 $ 40,737 $ 36,756 $ 155,353 $ 232,846 Fair value $ 486 $ 461 $ 1,833 $ 2,780 $ 450 $ 428 $ 1,767 $ 2,645 Value (bps) (b) 116 124 119 119 110 116 114 114 Weighted-average servicing fees (bps) 35 35 27 29 35 34 27 29 Multiple (value/servicing fees) 3.36 3.59 4.44 4.05 3.17 3.38 4.24 3.86 Weighted-average note rate 4.46 % 3.93 % 4.02 % 4.08 % 4.43 % 3.92 % 4.02 % 4.08 % Weighted-average age (in years) 3.1 4.3 4.3 4.1 3.0 4.3 4.2 4.0 Weighted-average expected prepayment (constant prepayment rate) 9.3 % 10.8 % 8.8 % 9.2 % 9.8 % 11.6 % 9.7 % 10.0 % Weighted-average expected life (in years) 7.9 6.8 7.3 7.3 7.7 6.5 6.9 7.0 Weighted-average option adjusted spread (d) 8.8 % 8.4 % 7.3 % 7.8 % 9.9 % 9.2 % 7.2 % 8.0 % (a) Represents principal balance of mortgages having corresponding MSR asset. (b) Calculated as fair value divided by the servicing portfolio. (c) Represents loans sold primarily to GSEs. (d) Option adjusted spread is the incremental spread added to the risk-free rate to reflect optionality and other risk inherent in the MSRs. |
Preferred Stock (Tables)
Preferred Stock (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Number of Shares Issued and Outstanding and Carrying Amount of Preferred Stock | The number of shares issued and outstanding and the carrying amount of each outstanding series of the Company’s preferred stock were as follows: March 31, 2018 December 31, 2017 (Dollars in Millions) Shares Liquidation Discount Carrying Shares Liquidation Discount Carrying Series A 12,510 $ 1,251 $ 145 $ 1,106 12,510 $ 1,251 $ 145 $ 1,106 Series B 40,000 1,000 – 1,000 40,000 1,000 – 1,000 Series F 44,000 1,100 12 1,088 44,000 1,100 12 1,088 Series H 20,000 500 13 487 20,000 500 13 487 Series I 30,000 750 5 745 30,000 750 5 745 Series J 40,000 1,000 7 993 40,000 1,000 7 993 Total preferred stock (a) 186,510 $ 5,601 $ 182 $ 5,419 186,510 $ 5,601 $ 182 $ 5,419 (a) The par value of all shares issued and outstanding at March 31, 2018 and December 31, 2017, was $1.00 per share. |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Reconciliation of Transactions Affecting Accumulated Other Comprehensive Income (Loss) Included in Shareholders' Equity | Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to accumulated other comprehensive income (loss). The reconciliation of the transactions affecting accumulated other comprehensive income (loss) included in shareholders’ equity for the three months ended March 31, is as follows: (Dollars in Millions) Unrealized Gains Available-For- Unrealized Gains Available-For-Sale to Held-To- Unrealized Gains Unrealized Gains Foreign Total 2018 Balance at beginning of period $ (357 ) $ 17 $ 71 $ (1,066 ) $ (69 ) $ (1,404 ) Revaluation of tax related balances (a) (77 ) 4 15 (229 ) (13 ) (300 ) Changes in unrealized gains and losses (776 ) – 86 (3 ) – (693 ) Foreign currency translation adjustment (b) – – – – 13 13 Reclassification to earnings of realized gains and losses (5 ) (3 ) 3 34 – 29 Applicable income taxes 198 1 (23 ) (7 ) (7 ) 162 Balance at end of period $ (1,017 ) $ 19 $ 152 $ (1,271 ) $ (76 ) $ (2,193 ) 2017 Balance at beginning of period $ (431 ) $ 25 $ 55 $ (1,113 ) $ (71 ) $ (1,535 ) Changes in unrealized gains and losses 127 – 7 – – 134 Foreign currency translation adjustment (b) – – – – 10 10 Reclassification to earnings of realized gains and losses (29 ) (3 ) 14 29 – 11 Applicable income taxes (38 ) 1 (8 ) (11 ) (3 ) (59 ) Balance at end of period $ (371 ) $ 23 $ 68 $ (1,095 ) $ (64 ) $ (1,439 ) (a) Represents the impact of the reduced federal statutory tax rate for corporations included in 2017 tax reform legislation, reclassified out of accumulated other comprehensive income and into retained earnings as of the beginning of the period. (b) Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges. |
Impact to Net Income for Items Reclassified out of Accumulated Other Comprehensive Income and into Earnings | Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income (loss) and into earnings for the three months ended March 31, is as follows: Impact to Net Income Affected Line Item in the (Dollars in Millions) 2018 2017 Unrealized gains (losses) on investment securities available-for-sale Realized gains (losses) on sale of investment securities $ 5 $ 29 Total securities gains (losses), net (1 ) (11 ) Applicable income taxes 4 18 Net-of-tax Unrealized gains (losses) on investment securities transferred from available-for-sale held-to-maturity Amortization of unrealized gains 3 3 Interest income (1 ) (1 ) Applicable income taxes 2 2 Net-of-tax Unrealized gains (losses) on derivative hedges Realized gains (losses) on derivative hedges (3 ) (14 ) Interest expense 1 5 Applicable income taxes (2 ) (9 ) Net-of-tax Unrealized gains (losses) on retirement plans Actuarial gains (losses) and prior service cost (credit) amortization (34 ) (29 ) Employee benefits expense 8 11 Applicable income taxes (26 ) (18 ) Net-of-tax Total impact to net income $ (22 ) $ (7 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Components of Earnings Per Share | The components of earnings per share were: Three Months Ended (Dollars and Shares in Millions, Except Per Share Data) 2018 2017 Net income attributable to U.S. Bancorp $ 1,675 $ 1,473 Preferred dividends (70 ) (69 ) Impact of preferred stock call (a) – (10 ) Earnings allocated to participating stock awards (8 ) (7 ) Net income applicable to U.S. Bancorp common shareholders $ 1,597 $ 1,387 Average common shares outstanding 1,652 1,694 Net effect of the exercise and assumed purchase of stock awards 5 7 Average diluted common shares outstanding 1,657 1,701 Earnings per common share $ .97 $ .82 Diluted earnings per common share $ .96 $ .82 (a) Represents stock issuance costs originally recorded in preferred stock upon the issuance of the Company’s Series G Preferred Stock that were reclassified to retained earnings on the date the Company announced its intent to redeem the outstanding shares. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost for the Company’s retirement plans were: Three Months Ended March 31 Pension Plans Postretirement (Dollars in Millions) 2018 2017 2018 2017 Service cost $ 52 $ 47 $ – $ – Interest cost 56 55 1 1 Expected return on plan assets (95 ) (71 ) (1 ) (1 ) Prior service cost (credit) amortization – (1 ) (1 ) (1 ) Actuarial loss (gain) amortization 37 32 (2 ) (1 ) Net periodic benefit cost (a) $ 50 $ 62 $ (3 ) $ (2 ) (a) Service cost is included in employee benefits expense on the Consolidated Statement of Income. All other components are included in other noninterest expense on the Consolidated Statement of Income. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense were: Three Months Ended (Dollars in Millions) 2018 2017 Federal Current $ 234 $ 531 Deferred 19 (120 ) Federal income tax 253 411 State Current 92 65 Deferred 17 23 State income tax 109 88 Total income tax provision $ 362 $ 499 |
Reconciliation of Expected Income Tax Expense at Federal Statutory Rate of 21 Percent and 35 Percent to Company's Applicable Income Tax Expense | A reconciliation of expected income tax expense at the federal statutory rate of 21 percent and 35 percent for the three months ended March 31, 2018 and 2017, respectively, to the Company’s applicable income tax expense follows: Three Months Ended (Dollars in Millions) 2018 2017 Tax at statutory rate $ 429 $ 695 State income tax, at statutory rates, net of federal tax benefit 89 63 Tax effect of Tax credits and benefits, net of related expenses (115 ) (193 ) Exam resolutions (49 ) – Tax-exempt (32 ) (49 ) Noncontrolling interests (1 ) (5 ) Other items 41 (12 ) Applicable income taxes $ 362 $ 499 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Asset and Liability Management Derivative Positions of Company | The following table summarizes the asset and liability management derivative positions of the Company: Asset Derivatives Liability Derivatives (Dollars in Millions) Notional Fair Weighted- Notional Fair Weighted- March 31, 2018 Fair value hedges Interest rate contracts Receive fixed/pay floating swaps $ – $ – – $ 4,600 $ 37 2.42 Cash flow hedges Interest rate contracts Pay fixed/receive floating swaps 3,892 126 6.48 500 – .63 Net investment hedges Foreign exchange forward contracts 192 1 .05 199 – .05 Other economic hedges Interest rate contracts Futures and forwards Buy 1,895 8 .10 1,172 2 .09 Sell 19,126 19 1.14 5,193 17 .02 Options Purchased 6,235 77 7.63 – – – Written 1,123 26 .09 7 – .12 Receive fixed/pay floating swaps 2,750 – 15.03 4,420 114 7.96 Pay fixed/receive floating swaps 4,333 – 7.72 88 – 5.23 Foreign exchange forward contracts 132 1 .05 540 3 .04 Equity contracts 25 1 .57 108 4 .50 Credit contracts 1,812 – 3.02 3,880 1 3.15 Other (a) 300 5 .02 1,514 127 1.81 Total $ 41,815 $ 264 $ 22,221 $ 305 December 31, 2017 Fair value hedges Interest rate contracts Receive fixed/pay floating swaps $ 1,000 $ 28 6.70 $ 3,600 $ 16 1.55 Cash flow hedges Interest rate contracts Pay fixed/receive floating swaps 3,772 5 6.73 – – – Net investment hedges Foreign exchange forward contracts – – – 373 8 .05 Other economic hedges Interest rate contracts Futures and forwards Buy 1,632 7 .10 1,326 2 .04 Sell 15,291 10 .89 4,511 10 .03 Options Purchased 4,985 65 7.57 – – – Written 1,285 21 .10 5 – .05 Receive fixed/pay floating swaps 2,019 5 16.49 5,469 – 8.43 Pay fixed/receive floating swaps 4,844 21 7.69 46 1 6.70 Foreign exchange forward contracts 147 1 .02 669 8 .04 Equity contracts 45 – 1.10 88 1 .58 Credit contracts 1,559 – 3.41 3,779 1 3.16 Other (a) – – – 1,164 125 2.50 Total $ 36,579 $ 163 $ 21,030 $ 172 (a) Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common shares of Visa Inc. The Visa swap agreements had a total notional value, fair value and weighted average remaining maturity of $1.2 billion, $122 million and 2.25 years at March 31, 2018, respectively, compared to $1.2 billion, $125 million and 2.50 years at December 31, 2017, respectively. In addition, includes short-term underwriting purchase and sale commitments with total asset and liability notional values of $300 million at March 31, 2018. |
Customer-Related Derivative Positions of Company | The following table summarizes the customer-related derivative positions of the Company: Asset Derivatives Liability Derivatives (Dollars in Millions) Notional Fair Weighted- Notional Fair Weighted- March 31, 2018 Interest rate contracts Receive fixed/pay floating swaps $ 25,579 $ 492 4.41 $ 75,797 $ 630 4.45 Pay fixed/receive floating swaps 72,317 413 4.41 27,680 388 4.37 Options Purchased 32,509 46 1.53 1,960 22 2.26 Written 2,060 23 2.38 30,225 43 1.39 Futures Sell 8,151 8 1.08 – – – Foreign exchange rate contracts Forwards, spots and swaps 26,646 776 .77 25,751 756 .77 Options Purchased 4,399 108 1.04 – – – Written – – – 4,399 108 1.04 Total $ 171,661 $ 1,866 $ 165,812 $ 1,947 December 31, 2017 Interest rate contracts Receive fixed/pay floating swaps $ 28,681 $ 679 5.71 $ 59,990 $ 840 4.27 Pay fixed/receive floating swaps 63,038 860 4.20 25,093 602 5.76 Options Purchased 29,091 22 1.61 880 14 4.24 Written 880 15 4.24 27,056 20 1.50 Futures Sell 7,007 4 1.21 – – – Foreign exchange rate contracts Forwards, spots and swaps 24,099 656 .81 23,440 636 .83 Options Purchased 4,026 83 1.20 – – – Written – – – 4,026 83 1.20 Total $ 156,822 $ 2,319 $ 140,485 $ 2,195 |
Summary of Effective Portion of Gains (Losses) Recognized in Other Comprehensive Income (Loss) and Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings | The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax) Gains (Losses) Gains (Losses) (Dollars in Millions) 2018 2017 2018 2017 Asset and Liability Management Positions Cash flow hedges Interest rate contracts $ 64 $ 4 $ (2 ) $ (9 ) Net investment hedges Foreign exchange forward contracts 16 (7 ) – – Non-derivative (34 ) – – – Note: The Company does not exclude components from effectiveness testing for cash flow and net investment hedges. |
Effect of Fair Value and Cash Flow Hedge Accounting on Consolidated Statement of Income | The table below shows the effect of fair value and cash flow hedge accounting on the Consolidated Statement of Income for the three months ended March 31: Other Noninterest Interest Expense (Dollars in Millions) 2018 2017 2018 2017 Total amount of income and expense line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded $ 167 $ 180 $ 623 $ 413 Asset and Liability Management Positions Fair value hedges Interest rate contract derivatives – (10 ) (43 ) – Hedged items – 10 43 – Cash Flow hedges Interest rate contract derivatives – – 3 14 Note: The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company did not reclassify gains or losses into earnings as a result of the discontinuance of cash flow hedges during the three months ended March 31, 2018 and 2017. |
Summary of Cumulative Hedging Adjustment for Fair Value Hedges Included in Carrying Value of Hedged Assets (Liabilities) | The table below shows the cumulative hedging adjustment for fair value hedges that are included in the carrying amount of the hedged assets (liabilities): Carrying Amount of the Hedged Assets Cumulative Hedging Adjustment (Dollars in Millions) March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 Line Item in the Consolidated Balance Sheet Long-term Debt $ 4,544 $ 4,584 $ (48 ) $ (8 ) Note: The Company does not have any hedging adjustments for discontinued fair value hedges. |
Summary of Gains (Losses) Recognized in Earnings for Other Economic Hedges and Customer-Related Positions | The table below shows the gains (losses) recognized in earnings for other economic hedges and the customer-related positions for the three months ended March 31: (Dollars in Millions) Location of Gains (Losses) 2018 2017 Asset and Liability Management Positions Other economic hedges Interest rate contracts Futures and forwards Mortgage banking revenue $ 58 $ 6 Purchased and written options Mortgage banking revenue 42 40 Receive fixed/pay floating swaps Mortgage banking revenue (79 ) 31 Pay fixed/receive floating swaps Mortgage banking revenue (31 ) (40 ) Foreign exchange forward contracts Other noninterest income 12 (7 ) Equity contracts Compensation expense (1 ) 1 Credit contracts Other noninterest income – 1 Customer-Related Positions Interest rate contracts Receive fixed/pay floating swaps Other noninterest income (1,164 ) (250 ) Pay fixed/receive floating swaps Other noninterest income 1,167 269 Purchased and written options Other noninterest income – (6 ) Futures Other noninterest income 8 (2 ) Foreign exchange rate contracts Forwards, spots and swaps Commercial products revenue 23 22 Purchased and written options Commercial products revenue – 1 |
Netting Arrangements for Cert36
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Text Block [Abstract] | |
Summary of Maturities by Category of Collateral Pledged for Repurchase Agreements and Securities Loaned Transactions | The following table summarizes the maturities by category of collateral pledged for repurchase agreements and securities loaned transactions: (Dollars in Millions) Overnight and Less Than Total March 31, 2018 Repurchase agreements U.S. Treasury and agencies $ 58 $ – $ 58 Residential agency mortgage-backed securities 380 177 557 Corporate debt securities 279 87 366 Total repurchase agreements 717 264 981 Securities loaned Corporate debt securities 400 – 400 Total securities loaned 400 – 400 Gross amount of recognized liabilities $ 1,117 $ 264 $ 1,381 December 31, 2017 Repurchase agreements U.S. Treasury and agencies $ 25 $ – $ 25 Residential agency mortgage-backed securities 644 30 674 Corporate debt securities 104 – 104 Total repurchase agreements 773 30 803 Securities loaned Corporate debt securities 111 – 111 Total securities loaned 111 – 111 Gross amount of recognized liabilities $ 884 $ 30 $ 914 |
Information on Company's Accounting Netting Adjustments and Items Not Offset in Consolidated Balance Sheet Assets But Available for Offset in Event of Default | The following tables provide information on the Company’s netting adjustments, and items not offset on the Consolidated Balance Sheet but available for offset in the event of default: Gross Recognized Assets Gross Amounts Offset on the Net Amounts Presented on the Gross Amounts Not Offset on the (Dollars in Millions) Financial Collateral Net Amount March 31, 2018 Derivative assets (d) $ 2,094 $ (821 ) $ 1,273 $ (74 ) $ – $ 1,199 Reverse repurchase agreements 159 – 159 (6 ) (153 ) – Securities borrowed 1,173 – 1,173 – (1,141 ) 32 Total $ 3,426 $ (821 ) $ 2,605 $ (80 ) $ (1,294 ) $ 1,231 December 31, 2017 Derivative assets (d) $ 1,759 $ (652 ) $ 1,107 $ (110 ) $ (5 ) $ 992 Reverse repurchase agreements 24 – 24 (24 ) – – Securities borrowed 923 – 923 – (896 ) 27 Total $ 2,706 $ (652 ) $ 2,054 $ (134 ) $ (901 ) $ 1,019 (a) Includes $110 million and $50 million of cash collateral related payables that were netted against derivative assets at March 31, 2018 and December 31, 2017, respectively. (b) For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any repurchase agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in the event of counterparty default. (c) Includes the fair value of securities received by the Company from the counterparty. These securities are not included on the Consolidated Balance Sheet unless the counterparty defaults. (d) Excludes $36 million and $723 million at March 31, 2018 and December 31, 2017, respectively, of derivative assets not subject to netting arrangements. |
Information on Company's Accounting Netting Adjustments and Items Not Offset in Consolidated Balance Sheet Liabilities But Available for Offset in Event of Default | Gross Gross Amounts Offset on the Net Amounts Presented on the Gross Amounts Not Offset on the (Dollars in Millions) Financial Collateral Net Amount March 31, 2018 Derivative liabilities (d) $ 2,123 $ (1,328 ) $ 795 $ (74 ) $ – $ 721 Repurchase agreements 981 – 981 (6 ) (975 ) – Securities loaned 400 – 400 – (395 ) 5 Total $ 3,504 $ (1,328 ) $ 2,176 $ (80 ) $ (1,370 ) $ 726 December 31, 2017 Derivative liabilities (d) $ 1,629 $ (1,130 ) $ 499 $ (110 ) $ – $ 389 Repurchase agreements 803 – 803 (24 ) (779 ) – Securities loaned 111 – 111 – (110 ) 1 Total $ 2,543 $ (1,130 ) $ 1,413 $ (134 ) $ (889 ) $ 390 (a) Includes $617 million and $528 million of cash collateral related receivables that were netted against derivative liabilities at March 31, 2018 and December 31, 2017, respectively. (b) For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse repurchase agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be offset in the event of counterparty default. (c) Includes the fair value of securities pledged by the Company to the counterparty. These securities are included on the Consolidated Balance Sheet unless the Company defaults. (d) Excludes $129 million and $738 million at March 31, 2018 and December 31, 2017, respectively, of derivative liabilities not subject to netting arrangements. |
Fair Values of Assets and Lia37
Fair Values of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Valuation Assumption Ranges for MSRs | The following table shows the significant valuation assumption ranges for MSRs at March 31, 2018: Minimum Maximum Average Expected prepayment 6 % 17 % 9 % Option adjusted spread 7 10 8 |
Valuation Assumption Ranges for Derivative Commitments | The following table shows the significant valuation assumption ranges for the Company’s derivative commitments to purchase and originate mortgage loans at March 31, 2018: Minimum Maximum Average Expected loan close rate 7 % 100 % 80 % Inherent MSR value (basis points per loan) 7 194 107 |
Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis: (Dollars in Millions) Level 1 Level 2 Level 3 Netting Total March 31, 2018 Available-for-sale U.S. Treasury and agencies $ 21,258 $ 708 $ – $ – $ 21,966 Mortgage-backed securities Residential agency – 38,443 – – 38,443 Commercial agency – 7 – – 7 Other asset-backed securities – 415 – – 415 Obligations of state and political subdivisions – 6,294 – – 6,294 Total available-for-sale 21,258 45,867 – – 67,125 Mortgage loans held for sale – 3,271 – – 3,271 Mortgage servicing rights – – 2,780 – 2,780 Derivative assets 17 1,611 502 (821 ) 1,309 Other assets 199 1,615 – – 1,814 Total $ 21,474 $ 52,364 $ 3,282 $ (821 ) $ 76,299 Derivative liabilities $ – $ 1,618 $ 634 $ (1,328 ) $ 924 Short-term borrowings and other liabilities (a) 183 1,167 – – 1,350 Total $ 183 $ 2,785 $ 634 $ (1,328 ) $ 2,274 December 31, 2017 Available-for-sale U.S. Treasury and agencies $ 22,572 $ 729 $ – $ – $ 23,301 Mortgage-backed securities Residential agency – 38,031 – – 38,031 Commercial agency – 6 – – 6 Other asset-backed securities – 419 – – 419 Obligations of state and political subdivisions – 6,358 – – 6,358 Other 22 – – – 22 Total available-for-sale 22,594 45,543 – – 68,137 Mortgage loans held for sale – 3,534 – – 3,534 Mortgage servicing rights – – 2,645 – 2,645 Derivative assets 6 1,960 516 (652 ) 1,830 Other assets 154 1,163 – – 1,317 Total $ 22,754 $ 52,200 $ 3,161 $ (652 ) $ 77,463 Derivative liabilities $ – $ 1,958 $ 409 $ (1,130 ) $ 1,237 Short-term borrowings and other liabilities (a) 101 894 – – 995 Total $ 101 $ 2,852 $ 409 $ (1,130 ) $ 2,232 Note: Excluded from the table above are equity investments without readily determinable fair values. The Company has elected to carry these investments at historical cost, adjusted for impairment and any changes resulting from observable price changes for identical or similar investments of the issuer. The aggregate carrying amount of these equity investments was $74 million at March 31, 2018. The Company has not recorded impairments or adjustments for observable price changes on these equity investments during the first three months of 2018 or on a cumulative basis. (a) Primarily represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance. |
Changes in Fair Value for All Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31: (Dollars in Millions) Beginning Net Gains Net Gains Purchases Sales Principal Issuances Settlements End Net Change in 2018 Mortgage servicing rights $ 2,645 $ 33 (c) $ – $ 2 $ – $ – $ 100 (e) $ – $ 2,780 $ 33 (c) Net derivative assets and liabilities 107 (251 ) (d) – 1 (6 ) – 17 – (132 ) (212 ) (f) 2017 Available-for-sale Residential non-agency Prime (a) $ 242 $ – $ (2 ) $ – $ (234 ) $ (6 ) $ – $ – $ – $ – Non-prime 195 – (17 ) – (175 ) (3 ) – – – – Other asset-backed securities 2 – – – (2 ) – – – – – Corporate debt securities 9 – 2 – (11 ) – – – – – Total available-for-sale 448 – (17 ) (g) – (422 ) (9 ) – – – – Mortgage servicing rights 2,591 (73 ) (c) – 2 – – 122 (e) – 2,642 (73 ) (c) Net derivative assets and liabilities 171 46 (h) – 1 (3 ) – – (50 ) 165 (7 ) (i) (a) Prime securities are those designated as such by the issuer at origination. When an issuer designation is unavailable, the Company determines at acquisition date the categorization based on asset pool characteristics (such as weighted-average credit score, loan-to-value, (b) Includes all securities not meeting the conditions to be designated as prime. (c) Included in mortgage banking revenue. (d) Approximately $(271) million included in other noninterest income and $20 million included in mortgage banking revenue. (e) Represents MSRs capitalized during the period. (f) Approximately $(240) million included in other noninterest income and $28 million included in mortgage banking revenue. (g) Included in changes in unrealized gains and losses on investment securities available-for-sale. (h) Approximately $(19) million included in other noninterest income and $65 million included in mortgage banking revenue. (i) Approximately $(49) million included in other noninterest income and $42 million included in mortgage banking revenue. |
Adjusted Carrying Values for Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes the balances as of the measurement date of assets measured at fair value on a nonrecurring basis, and still held as of the reporting date: March 31, 2018 December 31, 2017 (Dollars in Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Loans (a) $ – $ – $ 22 $ 22 $ – $ – $ 150 $ 150 Other assets (b) – – 18 18 – – 31 31 (a) Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off. (b) Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition. |
Losses Recognized Related to Nonrecurring Fair Value Measurements of Individual Assets or Portfolios | The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or portfolios for the three months ended March 31: (Dollars in Millions) 2018 2017 Loans (a) $ 23 $ 37 Other assets (b) 5 7 (a) Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off. (b) Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition. |
Differences Between Aggregate Fair Value Carrying Amount of MLHFS for which Fair Value Option has been Elected and Aggregate Unpaid Principal Amount Contractually Obligated to Receive at Maturity | The following table summarizes the differences between the aggregate fair value carrying amount of MLHFS for which the fair value option has been elected and the aggregate unpaid principal amount that the Company is contractually obligated to receive at maturity: March 31, 2018 December 31, 2017 (Dollars in Millions) Fair Aggregate Carrying Fair Aggregate Carrying Total loans $ 3,271 $ 3,208 $ 63 $ 3,534 $ 3,434 $ 100 Nonaccrual loans 1 2 (1 ) 1 2 (1 ) Loans 90 days or more past due 1 1 – 1 1 – |
Estimated Fair Values of Financial Instruments | The estimated fair values of the Company’s financial instruments are shown in the table below: March 31, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value (Dollars in Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets Cash and due from banks $ 19,246 $ 19,246 $ – $ – $ 19,246 $ 19,505 $ 19,505 $ – $ – $ 19,505 Federal funds sold and securities purchased under resale agreements 207 – 207 – 207 93 – 93 – 93 Investment securities held-to-maturity 44,612 4,553 38,842 13 43,408 44,362 4,613 39,095 15 43,723 Loans held for sale (a) 1,506 – – 1,506 1,506 20 – – 20 20 Loans 273,993 – – 275,311 275,311 276,507 – – 279,391 279,391 Other 2,442 – 1,281 1,161 2,442 2,393 – 1,037 1,364 2,401 Financial Liabilities Time deposits 39,585 – 39,179 – 39,179 33,356 – 33,120 – 33,120 Short-term borrowings (b) 16,353 – 16,129 – 16,129 15,656 – 15,447 – 15,447 Long-term debt 33,201 – 32,963 – 32,963 32,259 – 32,377 – 32,377 Other 1,546 – – 1,546 1,546 1,556 – – 1,556 1,556 (a) Excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected. (b) Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance. |
Guarantees and Contingent Lia38
Guarantees and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Other Guarantees and Contingent Liabilities | The following table is a summary of other guarantees and contingent liabilities of the Company at March 31, 2018: (Dollars in Millions) Collateral Carrying Maximum Standby letters of credit $ – $ 53 $ 10,825 Third party borrowing arrangements – – 12 Securities lending indemnifications 3,850 – 3,807 Asset sales – 122 6,758 (a) Merchant processing 768 51 99,579 Tender option bond program guarantee 2,424 – 2,335 Minimum revenue guarantees – – 6 Other – 17 1,230 (a) The maximum potential future payments do not include loan sales where the Company provides standard representation and warranties to the buyer against losses related to loan underwriting documentation defects that may have existed at the time of sale that generally are identified after the occurrence of a triggering event such as delinquency. For these types of loan sales, the maximum potential future payments is generally the unpaid principal balance of loans sold measured at the end of the current reporting period. Actual losses will be significantly less than the maximum exposure, as only a fraction of loans sold will have a representation and warranty breach, and any losses on repurchase would generally be mitigated by any collateral held against the loans. |
Investment Securities - Investm
Investment Securities - Investment Securities (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | ||
Contractual Maturities of Investment Securities [Line Items] | |||
Available-for-sale securities, Amortized Cost | $ 68,486 | $ 68,717 | |
Amortized Cost of Investment Securities | $ 113,098 | $ 113,079 | |
Amortized Cost of Investment Securities, Percentage | 100.00% | 100.00% | |
Available-for-sale securities, total, fair value | [1] | $ 67,125 | $ 68,137 |
Available-for-sale securities, total, weighted-average maturity in years | 5 years 6 months | 5 years 1 month 6 days | |
Available-for-sale securities, total, weighted-average yield | 2.29% | 2.25% | |
Held-to-maturity securities, Amortized Cost | $ 44,612 | $ 44,362 | |
Held-to-maturity securities, total, fair value | $ 43,408 | $ 43,723 | |
Held-to-maturity securities, total, weighted-average maturity in years | 5 years 2 months 12 days | 4 years 8 months 12 days | |
Held-to-maturity securities, total, weighted-average yield | 2.24% | 2.14% | |
U.S. Treasury and Agencies [Member] | |||
Contractual Maturities of Investment Securities [Line Items] | |||
Available-for-sale securities, maturing in one year or less, amortized cost | $ 4,338 | ||
Available-for-sale securities, maturing after one year through five years, amortized cost | 17,042 | ||
Available-for-sale securities, maturing after five years through ten years, amortized cost | 1,043 | ||
Available-for-sale securities, Amortized Cost | 22,423 | $ 23,586 | |
Available-for-sale securities, maturing in one year or less, fair value | 4,320 | ||
Amortized Cost of Investment Securities | 27,576 | $ 28,767 | |
Available-for-sale securities, maturing after one year through five years, fair value | $ 16,640 | ||
Amortized Cost of Investment Securities, Percentage | 24.40% | 25.50% | |
Available-for-sale securities, maturing after five years through ten years, fair value | $ 1,006 | ||
Available-for-sale securities, total, fair value | $ 21,966 | $ 23,301 | |
Available-for-sale securities, maturing in one year or less, weighted-average maturity in years | 4 months 24 days | ||
Available-for-sale securities, maturing after one year through five years, weighted-average maturity in years | 3 years 3 months 19 days | ||
Available-for-sale securities, maturing after five years through ten years, weighted-average maturity in years | 7 years | ||
Available-for-sale securities, total, weighted-average maturity in years | 2 years 10 months 25 days | ||
Available-for-sale securities, maturing in one year or less, weighted-average yield | 0.88% | ||
Available-for-sale securities, maturing after one year through five years, weighted-average yield | 1.66% | ||
Available-for-sale securities, maturing after five years through ten years, weighted-average yield | 2.29% | ||
Available-for-sale securities, total, weighted-average yield | 1.54% | ||
Held-to-maturity securities, maturing after one year through five years, amortized cost | $ 1,880 | ||
Held-to-maturity securities, maturing after five years through ten years, amortized cost | 3,273 | ||
Held-to-maturity securities, Amortized Cost | 5,153 | 5,181 | |
Held-to-maturity securities, maturing after one year through five years, fair value | 1,843 | ||
Held-to-maturity securities, maturing after five years through ten years, fair value | 3,131 | ||
Held-to-maturity securities, total, fair value | $ 4,974 | 5,066 | |
Held-to-maturity securities, maturing after one year through five years, weighted-average maturity in years | 3 years 3 months 19 days | ||
Held-to-maturity securities, maturing after five years through ten years, weighted-average maturity in years | 5 years 8 months 12 days | ||
Held-to-maturity securities, total, weighted-average maturity in years | 4 years 9 months 18 days | ||
Held-to-maturity securities, maturing after one year through five years, weighted-average yield | 1.82% | ||
Held-to-maturity securities, maturing after five years through ten years, weighted-average yield | 1.79% | ||
Held-to-maturity securities, total, weighted-average yield | 1.80% | ||
Mortgage-Backed Securities [Member] | |||
Contractual Maturities of Investment Securities [Line Items] | |||
Available-for-sale securities, maturing in one year or less, amortized cost | $ 110 | ||
Available-for-sale securities, maturing after one year through five years, amortized cost | 13,809 | ||
Available-for-sale securities, maturing after five years through ten years, amortized cost | 22,800 | ||
Available-for-sale securities, maturing after ten years, amortized cost | 2,556 | ||
Available-for-sale securities, Amortized Cost | 39,275 | ||
Available-for-sale securities, maturing in one year or less, fair value | 111 | ||
Amortized Cost of Investment Securities | 78,701 | $ 77,606 | |
Available-for-sale securities, maturing after one year through five years, fair value | $ 13,498 | ||
Amortized Cost of Investment Securities, Percentage | 69.60% | 68.60% | |
Available-for-sale securities, maturing after five years through ten years, fair value | $ 22,275 | ||
Available-for-sale securities, maturing after ten years, fair value | 2,566 | ||
Available-for-sale securities, total, fair value | $ 38,450 | ||
Available-for-sale securities, maturing in one year or less, weighted-average maturity in years | 7 months 6 days | ||
Available-for-sale securities, maturing after one year through five years, weighted-average maturity in years | 4 years 6 months | ||
Available-for-sale securities, maturing after five years through ten years, weighted-average maturity in years | 6 years | ||
Available-for-sale securities, maturing after ten years, weighted- average maturity in years | 14 years 6 months | ||
Available-for-sale securities, total, weighted-average maturity in years | 6 years | ||
Available-for-sale securities, maturing in one year or less, weighted-average yield | 4.22% | ||
Available-for-sale securities, maturing after one year through five years, weighted-average yield | 2.22% | ||
Available-for-sale securities, maturing after five years through ten years, weighted-average yield | 2.35% | ||
Available-for-sale securities, maturing after ten years, weighted-average yield | 2.78% | ||
Available-for-sale securities, total, weighted-average yield | 2.34% | ||
Held-to-maturity securities, maturing in one year or less, amortized cost | $ 30 | ||
Held-to-maturity securities, maturing after one year through five years, amortized cost | 18,232 | ||
Held-to-maturity securities, maturing after five years through ten years, amortized cost | 20,867 | ||
Held-to-maturity securities, maturing after ten years, amortized cost | 297 | ||
Held-to-maturity securities, Amortized Cost | 39,426 | ||
Held-to-maturity securities, maturing in one year or less, fair value | 30 | ||
Held-to-maturity securities, maturing after one year through five years, fair value | 17,747 | ||
Held-to-maturity securities, maturing after five years through ten years, fair value | 20,322 | ||
Held-to-maturity securities, maturing after ten years, fair value | 298 | ||
Held-to-maturity securities, total, fair value | $ 38,397 | ||
Held-to-maturity securities, maturing in one year or less, weighted-average maturity in years | 1 year 3 months 19 days | ||
Held-to-maturity securities, maturing after one year through five years, weighted-average maturity in years | 4 years 2 months 12 days | ||
Held-to-maturity securities, maturing after five years through ten years, weighted-average maturity in years | 6 years 1 month 6 days | ||
Held-to-maturity securities, maturing after ten years, weighted-average maturity in years | 13 years 10 months 25 days | ||
Held-to-maturity securities, total, weighted-average maturity in years | 5 years 3 months 19 days | ||
Held-to-maturity securities, maturing in one year or less, weighted-average yield | 2.54% | ||
Held-to-maturity securities, maturing after one year through five years, weighted-average yield | 2.14% | ||
Held-to-maturity securities, maturing after five years through ten years, weighted-average yield | 2.42% | ||
Held-to-maturity securities, maturing after ten years, weighted-average yield | 2.67% | ||
Held-to-maturity securities, total, weighted-average yield | 2.29% | ||
Asset-Backed Securities [Member] | |||
Contractual Maturities of Investment Securities [Line Items] | |||
Available-for-sale securities, maturing after one year through five years, amortized cost | $ 408 | ||
Available-for-sale securities, Amortized Cost | 408 | ||
Amortized Cost of Investment Securities | 414 | $ 419 | |
Available-for-sale securities, maturing after one year through five years, fair value | $ 415 | ||
Amortized Cost of Investment Securities, Percentage | 0.40% | 0.40% | |
Available-for-sale securities, total, fair value | $ 415 | ||
Available-for-sale securities, maturing after one year through five years, weighted-average maturity in years | 3 years 8 months 12 days | ||
Available-for-sale securities, total, weighted-average maturity in years | 3 years 8 months 12 days | ||
Available-for-sale securities, maturing after one year through five years, weighted-average yield | 4.63% | ||
Available-for-sale securities, total, weighted-average yield | 4.63% | ||
Held-to-maturity securities, maturing after one year through five years, amortized cost | $ 4 | ||
Held-to-maturity securities, maturing after five years through ten years, amortized cost | 2 | ||
Held-to-maturity securities, Amortized Cost | 6 | ||
Held-to-maturity securities, maturing in one year or less, fair value | 1 | ||
Held-to-maturity securities, maturing after one year through five years, fair value | 4 | ||
Held-to-maturity securities, maturing after five years through ten years, fair value | 2 | ||
Held-to-maturity securities, maturing after ten years, fair value | 2 | ||
Held-to-maturity securities, total, fair value | $ 9 | ||
Held-to-maturity securities, maturing in one year or less, weighted-average maturity in years | 4 months 24 days | ||
Held-to-maturity securities, maturing after one year through five years, weighted-average maturity in years | 1 year 8 months 12 days | ||
Held-to-maturity securities, maturing after five years through ten years, weighted-average maturity in years | 4 years 8 months 12 days | ||
Held-to-maturity securities, maturing after ten years, weighted-average maturity in years | 13 years 3 months 19 days | ||
Held-to-maturity securities, total, weighted-average maturity in years | 2 years 10 months 25 days | ||
Held-to-maturity securities, maturing in one year or less, weighted-average yield | 2.48% | ||
Held-to-maturity securities, maturing after one year through five years, weighted-average yield | 2.60% | ||
Held-to-maturity securities, maturing after five years through ten years, weighted-average yield | 2.56% | ||
Held-to-maturity securities, maturing after ten years, weighted-average yield | 2.50% | ||
Held-to-maturity securities, total, weighted-average yield | 2.58% | ||
Obligations of State and Political Subdivisions [Member] | |||
Contractual Maturities of Investment Securities [Line Items] | |||
Available-for-sale securities, maturing in one year or less, amortized cost | $ 129 | ||
Available-for-sale securities, maturing after one year through five years, amortized cost | 661 | ||
Available-for-sale securities, maturing after five years through ten years, amortized cost | 3,672 | ||
Available-for-sale securities, maturing after ten years, amortized cost | 1,918 | ||
Available-for-sale securities, Amortized Cost | 6,380 | $ 6,240 | |
Available-for-sale securities, maturing in one year or less, fair value | 131 | ||
Amortized Cost of Investment Securities | 6,386 | $ 6,246 | |
Available-for-sale securities, maturing after one year through five years, fair value | $ 678 | ||
Amortized Cost of Investment Securities, Percentage | 5.60% | 5.50% | |
Available-for-sale securities, maturing after five years through ten years, fair value | $ 3,667 | ||
Available-for-sale securities, maturing after ten years, fair value | 1,818 | ||
Available-for-sale securities, total, fair value | $ 6,294 | $ 6,358 | |
Available-for-sale securities, maturing in one year or less, weighted-average maturity in years | 4 months 24 days | ||
Available-for-sale securities, maturing after one year through five years, weighted-average maturity in years | 3 years 2 months 12 days | ||
Available-for-sale securities, maturing after five years through ten years, weighted-average maturity in years | 8 years 6 months | ||
Available-for-sale securities, maturing after ten years, weighted- average maturity in years | 19 years 2 months 12 days | ||
Available-for-sale securities, total, weighted-average maturity in years | 11 years | ||
Available-for-sale securities, maturing in one year or less, weighted-average yield | 5.88% | ||
Available-for-sale securities, maturing after one year through five years, weighted-average yield | 4.92% | ||
Available-for-sale securities, maturing after five years through ten years, weighted-average yield | 4.46% | ||
Available-for-sale securities, maturing after ten years, weighted-average yield | 4.11% | ||
Available-for-sale securities, total, weighted-average yield | 4.43% | ||
Held-to-maturity securities, maturing after one year through five years, amortized cost | $ 1 | ||
Held-to-maturity securities, maturing after five years through ten years, amortized cost | 5 | ||
Held-to-maturity securities, Amortized Cost | 6 | 6 | |
Held-to-maturity securities, maturing after one year through five years, fair value | 1 | ||
Held-to-maturity securities, maturing after five years through ten years, fair value | 6 | ||
Held-to-maturity securities, total, fair value | $ 7 | 7 | |
Held-to-maturity securities, maturing in one year or less, weighted-average maturity in years | 8 months 12 days | ||
Held-to-maturity securities, maturing after one year through five years, weighted-average maturity in years | 3 years 10 months 25 days | ||
Held-to-maturity securities, maturing after five years through ten years, weighted-average maturity in years | 8 years | ||
Held-to-maturity securities, total, weighted-average maturity in years | 7 years 4 months 24 days | ||
Held-to-maturity securities, maturing in one year or less, weighted-average yield | 6.33% | ||
Held-to-maturity securities, maturing after one year through five years, weighted-average yield | 6.78% | ||
Held-to-maturity securities, maturing after five years through ten years, weighted-average yield | 2.18% | ||
Held-to-maturity securities, total, weighted-average yield | 2.75% | ||
Other Debt Securities and Obligations of Foreign Governments [Member] | |||
Contractual Maturities of Investment Securities [Line Items] | |||
Amortized Cost of Investment Securities | $ 21 | $ 41 | |
Available-for-sale securities, maturing in one year or less, weighted-average yield | 0.01% | ||
Available-for-sale securities, total, weighted-average yield | 0.01% | ||
Held-to-maturity securities, maturing after one year through five years, amortized cost | $ 21 | ||
Held-to-maturity securities, Amortized Cost | 21 | ||
Held-to-maturity securities, maturing after one year through five years, fair value | 21 | ||
Held-to-maturity securities, total, fair value | $ 21 | ||
Held-to-maturity securities, maturing after one year through five years, weighted-average maturity in years | 1 year | ||
Held-to-maturity securities, total, weighted-average maturity in years | 1 year | ||
Held-to-maturity securities, maturing after one year through five years, weighted-average yield | 2.52% | ||
Held-to-maturity securities, total, weighted-average yield | 2.52% | ||
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
Investment Securities - Inves40
Investment Securities - Investment Securities (Parenthetical) (Detail) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Contractual Maturities of Investment Securities [Abstract] | |||
Federal statutory rate | 21.00% | 35.00% | |
Weighted-average maturity of available-for-sale investment securities | 5 years 6 months | 5 years 1 month 6 days | |
Weighted-average yield of available-for-sale investment securities | 2.29% | 2.25% | |
Weighted-average maturity of held-to-maturity investment securities | 5 years 2 months 12 days | 4 years 8 months 12 days | |
Weighted-average yield of held-to-maturity investment securities | 2.24% | 2.14% |
Basis of Presentation - Line of
Basis of Presentation - Line of Business Financial Performance (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Income Statement | ||
Net interest income (taxable-equivalent basis) | $ 3,197 | $ 3,030 |
Net interest income (taxable-equivalent basis), Percent change | 5.50% | |
Noninterest income | $ 2,267 | 2,230 |
Noninterest income, Percent change | 1.70% | |
Securities gains (losses), net | $ 5 | 29 |
Securities gains (losses), net, Percent change | (82.80%) | |
Total net revenue | $ 5,469 | 5,289 |
Total net revenue, Percent change | 3.40% | |
Noninterest expense, Percent change | 5.30% | |
Other intangibles, Percent change | (11.40%) | |
Total noninterest expense, Percent change | 5.00% | |
Income before provision and income taxes, Percent change | 1.40% | |
Provision for credit losses, Percent change | (1.20%) | |
Income before income taxes, Percent change | 1.90% | |
Income taxes and taxable-equivalent adjustment, Percent change | (28.80%) | |
Net income, Percent change | 13.20% | |
Net (income) loss attributable to noncontrolling interests, Percent change | 46.20% | |
Net income attributable to U.S. Bancorp, Percent change | 13.70% | |
Noninterest expense | $ 3,016 | 2,865 |
Other intangibles | 39 | 44 |
Total noninterest expense | 3,055 | 2,909 |
Income before provision and income taxes | 2,414 | 2,380 |
Provision for credit losses | 341 | 345 |
Income before income taxes | 2,073 | 2,035 |
Income taxes and taxable-equivalent adjustment | 391 | 549 |
Net income | 1,682 | 1,486 |
Net (income) loss attributable to noncontrolling interests | (7) | (13) |
Net income attributable to U.S. Bancorp | 1,675 | 1,473 |
Average Balance Sheet | ||
Commercial | $ 97,465 | 93,739 |
Commercial, Percent change | 4.00% | |
Commercial real estate | $ 40,366 | 43,158 |
Commercial real estate, Percent change | (6.50%) | |
Residential mortgages | $ 60,174 | 57,900 |
Residential mortgages, Percent change | 3.90% | |
Credit card | $ 21,284 | 20,845 |
Credit card, Percent change | 2.10% | |
Other retail | $ 57,051 | 53,784 |
Other retail, Percent change | 6.10% | |
Total loans, excluding covered loans | $ 276,340 | 269,426 |
Total loans, excluding covered loans, Percent change | 2.60% | |
Covered loans | $ 3,048 | 3,732 |
Covered loans, Percent change | (18.30%) | |
Total loans | $ 279,388 | 273,158 |
Total loans, Percent change | 2.30% | |
Goodwill, Percent change | 1.00% | |
Other intangible assets, Percent change | 1.30% | |
Assets, Percent change | 2.90% | |
Noninterest-bearing deposits, Percent change | (1.60%) | |
Interest checking, Percent change | 7.10% | |
Savings products, Percent change | (2.40%) | |
Time deposits, Percent change | 20.70% | |
Total deposits, Percent change | 1.90% | |
Total U.S. Bancorp shareholders' equity, Percent change | 1.90% | |
Goodwill | $ 9,440 | 9,347 |
Other intangible assets | 3,349 | 3,307 |
Assets | 454,288 | 441,311 |
Noninterest-bearing deposits | 79,482 | 80,738 |
Interest checking | 70,358 | 65,681 |
Savings products | 147,755 | 151,368 |
Time deposits | 36,985 | 30,646 |
Total deposits | 334,580 | 328,433 |
Total U.S. Bancorp shareholders' equity | 48,825 | 47,923 |
Corporate and Commercial Banking [Member] | ||
Condensed Income Statement | ||
Net interest income (taxable-equivalent basis) | $ 724 | 712 |
Net interest income (taxable-equivalent basis), Percent change | 1.70% | |
Noninterest income | $ 207 | 247 |
Noninterest income, Percent change | (16.20%) | |
Securities gains (losses), net | (3) | |
Total net revenue | $ 931 | 956 |
Total net revenue, Percent change | (2.60%) | |
Noninterest expense, Percent change | 2.50% | |
Total noninterest expense, Percent change | 2.50% | |
Income before provision and income taxes, Percent change | (6.20%) | |
Provision for credit losses, Percent change | (61.10%) | |
Income before income taxes, Percent change | (2.50%) | |
Income taxes and taxable-equivalent adjustment, Percent change | (33.00%) | |
Net income, Percent change | 15.00% | |
Net income attributable to U.S. Bancorp, Percent change | 15.00% | |
Noninterest expense | $ 404 | 394 |
Other intangibles | 1 | 1 |
Total noninterest expense | 405 | 395 |
Income before provision and income taxes | 526 | 561 |
Provision for credit losses | 14 | 36 |
Income before income taxes | 512 | 525 |
Income taxes and taxable-equivalent adjustment | 128 | 191 |
Net income | 384 | 334 |
Net income attributable to U.S. Bancorp | 384 | 334 |
Average Balance Sheet | ||
Commercial | $ 74,808 | 72,414 |
Commercial, Percent change | 3.30% | |
Commercial real estate | $ 19,137 | 21,305 |
Commercial real estate, Percent change | (10.20%) | |
Residential mortgages | $ 6 | 8 |
Residential mortgages, Percent change | (25.00%) | |
Total loans, excluding covered loans | $ 93,951 | 93,727 |
Total loans, excluding covered loans, Percent change | 0.20% | |
Total loans | $ 93,951 | 93,727 |
Total loans, Percent change | 0.20% | |
Other intangible assets, Percent change | (20.00%) | |
Assets, Percent change | 0.30% | |
Noninterest-bearing deposits, Percent change | (6.90%) | |
Interest checking, Percent change | 2.60% | |
Savings products, Percent change | (10.00%) | |
Time deposits, Percent change | 32.40% | |
Total deposits, Percent change | (2.90%) | |
Total U.S. Bancorp shareholders' equity, Percent change | 7.60% | |
Goodwill | $ 1,647 | 1,647 |
Other intangible assets | 12 | 15 |
Assets | 102,642 | 102,309 |
Noninterest-bearing deposits | 34,388 | 36,939 |
Interest checking | 9,493 | 9,256 |
Savings products | 43,938 | 48,820 |
Time deposits | 16,523 | 12,484 |
Total deposits | 104,342 | 107,499 |
Total U.S. Bancorp shareholders' equity | 10,417 | 9,680 |
Consumer and Business Banking [Member] | ||
Condensed Income Statement | ||
Net interest income (taxable-equivalent basis) | $ 1,524 | 1,418 |
Net interest income (taxable-equivalent basis), Percent change | 7.50% | |
Noninterest income | $ 568 | 571 |
Noninterest income, Percent change | (0.50%) | |
Total net revenue | $ 2,092 | 1,989 |
Total net revenue, Percent change | 5.20% | |
Noninterest expense, Percent change | 3.00% | |
Total noninterest expense, Percent change | 3.00% | |
Income before provision and income taxes, Percent change | 8.90% | |
Provision for credit losses, Percent change | (13.80%) | |
Income before income taxes, Percent change | 11.10% | |
Income taxes and taxable-equivalent adjustment, Percent change | (23.60%) | |
Net income, Percent change | 31.00% | |
Net income attributable to U.S. Bancorp, Percent change | 31.00% | |
Noninterest expense | $ 1,291 | 1,253 |
Other intangibles | 7 | 7 |
Total noninterest expense | 1,298 | 1,260 |
Income before provision and income taxes | 794 | 729 |
Provision for credit losses | 56 | 65 |
Income before income taxes | 738 | 664 |
Income taxes and taxable-equivalent adjustment | 185 | 242 |
Net income | 553 | 422 |
Net income attributable to U.S. Bancorp | 553 | 422 |
Average Balance Sheet | ||
Commercial | $ 9,838 | 9,913 |
Commercial, Percent change | (0.80%) | |
Commercial real estate | $ 18,217 | 18,551 |
Commercial real estate, Percent change | (1.80%) | |
Residential mortgages | $ 57,066 | 55,239 |
Residential mortgages, Percent change | 3.30% | |
Other retail | $ 55,010 | 51,687 |
Other retail, Percent change | 6.40% | |
Total loans, excluding covered loans | $ 140,131 | 135,390 |
Total loans, excluding covered loans, Percent change | 3.50% | |
Covered loans | $ 3,048 | 3,717 |
Covered loans, Percent change | (18.00%) | |
Total loans | $ 143,179 | 139,107 |
Total loans, Percent change | 2.90% | |
Other intangible assets, Percent change | 3.70% | |
Assets, Percent change | 2.50% | |
Noninterest-bearing deposits, Percent change | 1.50% | |
Interest checking, Percent change | 6.70% | |
Savings products, Percent change | 2.80% | |
Time deposits, Percent change | (4.80%) | |
Total deposits, Percent change | 3.10% | |
Total U.S. Bancorp shareholders' equity, Percent change | 6.00% | |
Goodwill | $ 3,681 | 3,681 |
Other intangible assets | 2,871 | 2,768 |
Assets | 157,544 | 153,647 |
Noninterest-bearing deposits | 27,381 | 26,965 |
Interest checking | 49,400 | 46,298 |
Savings products | 61,543 | 59,850 |
Time deposits | 12,576 | 13,207 |
Total deposits | 150,900 | 146,320 |
Total U.S. Bancorp shareholders' equity | 12,219 | 11,522 |
Wealth Management and Investment Services [Member] | ||
Condensed Income Statement | ||
Net interest income (taxable-equivalent basis) | $ 284 | 250 |
Net interest income (taxable-equivalent basis), Percent change | 13.60% | |
Noninterest income | $ 432 | 399 |
Noninterest income, Percent change | 8.30% | |
Total net revenue | $ 716 | 649 |
Total net revenue, Percent change | 10.30% | |
Noninterest expense, Percent change | 5.80% | |
Other intangibles, Percent change | (20.00%) | |
Total noninterest expense, Percent change | 5.50% | |
Income before provision and income taxes, Percent change | 18.30% | |
Income before income taxes, Percent change | 18.40% | |
Income taxes and taxable-equivalent adjustment, Percent change | (18.00%) | |
Net income, Percent change | 39.10% | |
Net income attributable to U.S. Bancorp, Percent change | 39.10% | |
Noninterest expense | $ 421 | 398 |
Other intangibles | 4 | 5 |
Total noninterest expense | 425 | 403 |
Income before provision and income taxes | 291 | 246 |
Provision for credit losses | 1 | 1 |
Income before income taxes | 290 | 245 |
Income taxes and taxable-equivalent adjustment | 73 | 89 |
Net income | 217 | 156 |
Net income attributable to U.S. Bancorp | 217 | 156 |
Average Balance Sheet | ||
Commercial | $ 3,660 | 3,190 |
Commercial, Percent change | 14.70% | |
Commercial real estate | $ 509 | 514 |
Commercial real estate, Percent change | (1.00%) | |
Residential mortgages | $ 3,096 | 2,645 |
Residential mortgages, Percent change | 17.10% | |
Other retail | $ 1,617 | 1,617 |
Total loans, excluding covered loans | $ 8,882 | 7,966 |
Total loans, excluding covered loans, Percent change | 11.50% | |
Total loans | $ 8,882 | 7,966 |
Total loans, Percent change | 11.50% | |
Goodwill, Percent change | 0.30% | |
Other intangible assets, Percent change | (19.50%) | |
Assets, Percent change | 3.70% | |
Noninterest-bearing deposits, Percent change | 3.50% | |
Interest checking, Percent change | 13.20% | |
Savings products, Percent change | (1.10%) | |
Time deposits, Percent change | (22.30%) | |
Total deposits, Percent change | 0.40% | |
Total U.S. Bancorp shareholders' equity, Percent change | (0.20%) | |
Goodwill | $ 1,570 | 1,566 |
Other intangible assets | 70 | 87 |
Assets | 11,875 | 11,446 |
Noninterest-bearing deposits | 14,329 | 13,841 |
Interest checking | 11,423 | 10,087 |
Savings products | 41,662 | 42,145 |
Time deposits | 3,695 | 4,755 |
Total deposits | 71,109 | 70,828 |
Total U.S. Bancorp shareholders' equity | 2,399 | 2,403 |
Payment Services [Member] | ||
Condensed Income Statement | ||
Net interest income (taxable-equivalent basis) | $ 612 | 595 |
Net interest income (taxable-equivalent basis), Percent change | 2.90% | |
Noninterest income | $ 847 | 798 |
Noninterest income, Percent change | 6.10% | |
Total net revenue | $ 1,459 | 1,393 |
Total net revenue, Percent change | 4.70% | |
Noninterest expense, Percent change | 8.70% | |
Other intangibles, Percent change | (12.90%) | |
Total noninterest expense, Percent change | 7.70% | |
Income before provision and income taxes, Percent change | 2.00% | |
Provision for credit losses, Percent change | 12.90% | |
Income before income taxes, Percent change | (3.60%) | |
Income taxes and taxable-equivalent adjustment, Percent change | (33.50%) | |
Net income, Percent change | 13.60% | |
Net income attributable to U.S. Bancorp, Percent change | 16.30% | |
Noninterest expense | $ 702 | 646 |
Other intangibles | 27 | 31 |
Total noninterest expense | 729 | 677 |
Income before provision and income taxes | 730 | 716 |
Provision for credit losses | 272 | 241 |
Income before income taxes | 458 | 475 |
Income taxes and taxable-equivalent adjustment | 115 | 173 |
Net income | 343 | 302 |
Net income attributable to U.S. Bancorp | 343 | 295 |
Average Balance Sheet | ||
Commercial | $ 8,354 | 7,611 |
Commercial, Percent change | 9.80% | |
Credit card | $ 21,284 | 20,845 |
Credit card, Percent change | 2.10% | |
Other retail | $ 424 | 480 |
Other retail, Percent change | (11.70%) | |
Total loans, excluding covered loans | $ 30,062 | 28,936 |
Total loans, excluding covered loans, Percent change | 3.90% | |
Total loans | $ 30,062 | 28,936 |
Total loans, Percent change | 3.90% | |
Goodwill, Percent change | 3.60% | |
Other intangible assets, Percent change | (9.40%) | |
Assets, Percent change | 4.60% | |
Noninterest-bearing deposits, Percent change | 10.10% | |
Savings products, Percent change | 4.00% | |
Total deposits, Percent change | 9.70% | |
Total U.S. Bancorp shareholders' equity, Percent change | 3.40% | |
Goodwill | $ 2,542 | 2,453 |
Other intangible assets | 396 | 437 |
Assets | 36,173 | 34,566 |
Noninterest-bearing deposits | 1,127 | 1,024 |
Savings products | 103 | 99 |
Time deposits | 3 | 1 |
Total deposits | 1,233 | 1,124 |
Total U.S. Bancorp shareholders' equity | 6,622 | 6,405 |
Treasury and Corporate Support [Member] | ||
Condensed Income Statement | ||
Net interest income (taxable-equivalent basis) | $ 53 | 55 |
Net interest income (taxable-equivalent basis), Percent change | (3.60%) | |
Noninterest income | $ 213 | 215 |
Noninterest income, Percent change | (0.90%) | |
Securities gains (losses), net | $ 5 | 32 |
Securities gains (losses), net, Percent change | (84.40%) | |
Total net revenue | $ 271 | 302 |
Total net revenue, Percent change | (10.30%) | |
Noninterest expense, Percent change | 13.80% | |
Total noninterest expense, Percent change | 13.80% | |
Income before provision and income taxes, Percent change | (43.00%) | |
Income before income taxes, Percent change | (40.50%) | |
Income taxes and taxable-equivalent adjustment, Percent change | 24.70% | |
Net income, Percent change | (32.00%) | |
Net (income) loss attributable to noncontrolling interests, Percent change | (16.70%) | |
Net income attributable to U.S. Bancorp, Percent change | (33.10%) | |
Noninterest expense | $ 198 | 174 |
Total noninterest expense | 198 | 174 |
Income before provision and income taxes | 73 | 128 |
Provision for credit losses | (2) | 2 |
Income before income taxes | 75 | 126 |
Income taxes and taxable-equivalent adjustment | (110) | (146) |
Net income | 185 | 272 |
Net (income) loss attributable to noncontrolling interests | (7) | (6) |
Net income attributable to U.S. Bancorp | 178 | 266 |
Average Balance Sheet | ||
Commercial | $ 805 | 611 |
Commercial, Percent change | 31.80% | |
Commercial real estate | $ 2,503 | 2,788 |
Commercial real estate, Percent change | (10.20%) | |
Residential mortgages | $ 6 | 8 |
Residential mortgages, Percent change | (25.00%) | |
Total loans, excluding covered loans | $ 3,314 | 3,407 |
Total loans, excluding covered loans, Percent change | (2.70%) | |
Covered loans | 15 | |
Total loans | $ 3,314 | 3,422 |
Total loans, Percent change | (3.20%) | |
Assets, Percent change | 4.80% | |
Noninterest-bearing deposits, Percent change | 14.60% | |
Interest checking, Percent change | 5.00% | |
Savings products, Percent change | 12.10% | |
Total U.S. Bancorp shareholders' equity, Percent change | (4.20%) | |
Assets | $ 146,054 | 139,343 |
Noninterest-bearing deposits | 2,257 | 1,969 |
Interest checking | 42 | 40 |
Savings products | 509 | 454 |
Time deposits | 4,188 | 199 |
Total deposits | 6,996 | 2,662 |
Total U.S. Bancorp shareholders' equity | $ 17,168 | $ 17,913 |
Basis of Presentation - Line 42
Basis of Presentation - Line of Business Financial Performance (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Line Of Business Financial Performance [Line Items] | ||
Revenue generated from contracts with customers included in noninterest income | $ 1,800 | $ 1,700 |
Payment Services [Member] | ||
Line Of Business Financial Performance [Line Items] | ||
Rewards and rebate costs and certain partner payments included in noninterest income | $ 534 | $ 468 |
Accounting Changes - Additional
Accounting Changes - Additional Information (Detail) $ in Millions | Jan. 01, 2018USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Increase in retained earnings related to adoption of accounting guidance | $ 300 |
Decrease in accumulated other comprehensive income related to adoption of accounting guidance | (300) |
Adjustments for New Accounting Pronouncement [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Transfer from held-to-maturity to available-for-sale securities | $ 1,500 |
Investment Securities - Inves44
Investment Securities - Investment Securities Held-to-Maturity (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, Amortized Cost | $ 44,612 | $ 44,362 |
Held-to-maturity securities, Unrealized Gains | 43 | 60 |
Held-to-maturity securities, Unrealized Losses Other-than-Temporary | 0 | 0 |
Held-to-maturity securities, Unrealized Losses Other | (1,247) | (699) |
Held-to-maturity securities, Fair Value | 43,408 | 43,723 |
U.S. Treasury and Agencies [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, Amortized Cost | 5,153 | 5,181 |
Held-to-maturity securities, Unrealized Gains | 2 | 5 |
Held-to-maturity securities, Unrealized Losses Other-than-Temporary | 0 | 0 |
Held-to-maturity securities, Unrealized Losses Other | (181) | (120) |
Held-to-maturity securities, Fair Value | 4,974 | 5,066 |
Residential Mortgage-Backed Securities [Member] | Agency [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, Amortized Cost | 39,426 | 39,150 |
Held-to-maturity securities, Unrealized Gains | 37 | 48 |
Held-to-maturity securities, Unrealized Losses Other-than-Temporary | 0 | 0 |
Held-to-maturity securities, Unrealized Losses Other | (1,066) | (579) |
Held-to-maturity securities, Fair Value | 38,397 | 38,619 |
Asset-Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, Amortized Cost | 6 | |
Held-to-maturity securities, Fair Value | 9 | |
Asset-Backed Securities [Member] | Collateralized Loan Obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, Unrealized Gains | 2 | 4 |
Held-to-maturity securities, Unrealized Losses Other-than-Temporary | 0 | 0 |
Held-to-maturity securities, Fair Value | 2 | 4 |
Asset-Backed Securities [Member] | Other Asset-Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, Amortized Cost | 6 | 6 |
Held-to-maturity securities, Unrealized Gains | 1 | 2 |
Held-to-maturity securities, Unrealized Losses Other-than-Temporary | 0 | 0 |
Held-to-maturity securities, Fair Value | 7 | 8 |
Obligations of State and Political Subdivisions [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, Amortized Cost | 6 | 6 |
Held-to-maturity securities, Unrealized Gains | 1 | 1 |
Held-to-maturity securities, Unrealized Losses Other-than-Temporary | 0 | 0 |
Held-to-maturity securities, Fair Value | 7 | 7 |
Obligations of Foreign Governments [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, Amortized Cost | 9 | 7 |
Held-to-maturity securities, Unrealized Losses Other-than-Temporary | 0 | 0 |
Held-to-maturity securities, Fair Value | 9 | 7 |
Other [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, Amortized Cost | 12 | 12 |
Held-to-maturity securities, Unrealized Losses Other-than-Temporary | 0 | 0 |
Held-to-maturity securities, Fair Value | $ 12 | $ 12 |
Investment Securities - Inves45
Investment Securities - Investment Securities Available-for-Sale (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized Cost | $ 68,486 | $ 68,717 | |
Available-for-sale securities, Unrealized Gains | 202 | 308 | |
Available-for-sale securities, Unrealized Losses Other-than-Temporary | 0 | 0 | |
Available-for-sale securities, Unrealized Losses Other | (1,563) | (888) | |
Available-for-sale securities, Fair Value | [1] | 67,125 | 68,137 |
U.S. Treasury and Agencies [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized Cost | 22,423 | 23,586 | |
Available-for-sale securities, Unrealized Gains | 1 | 3 | |
Available-for-sale securities, Unrealized Losses Other-than-Temporary | 0 | 0 | |
Available-for-sale securities, Unrealized Losses Other | (458) | (288) | |
Available-for-sale securities, Fair Value | 21,966 | 23,301 | |
Residential Mortgage-Backed Securities [Member] | Agency [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized Cost | 39,268 | 38,450 | |
Available-for-sale securities, Unrealized Gains | 143 | 152 | |
Available-for-sale securities, Unrealized Losses Other-than-Temporary | 0 | 0 | |
Available-for-sale securities, Unrealized Losses Other | (968) | (571) | |
Available-for-sale securities, Fair Value | 38,443 | 38,031 | |
Commercial [Member] | Agency [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized Cost | 7 | 6 | |
Available-for-sale securities, Unrealized Losses Other-than-Temporary | 0 | 0 | |
Available-for-sale securities, Fair Value | 7 | 6 | |
Asset-Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized Cost | 408 | ||
Available-for-sale securities, Fair Value | 415 | ||
Asset-Backed Securities [Member] | Other Asset-Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized Cost | 408 | 413 | |
Available-for-sale securities, Unrealized Gains | 7 | 6 | |
Available-for-sale securities, Unrealized Losses Other-than-Temporary | 0 | 0 | |
Available-for-sale securities, Fair Value | 415 | 419 | |
Obligations of State and Political Subdivisions [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized Cost | 6,380 | 6,240 | |
Available-for-sale securities, Unrealized Gains | 51 | 147 | |
Available-for-sale securities, Unrealized Losses Other-than-Temporary | 0 | 0 | |
Available-for-sale securities, Unrealized Losses Other | (137) | (29) | |
Available-for-sale securities, Fair Value | 6,294 | 6,358 | |
Other [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized Cost | 22 | ||
Available-for-sale securities, Unrealized Losses Other-than-Temporary | $ 0 | 0 | |
Available-for-sale securities, Fair Value | $ 22 | ||
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Weighted-average maturity of available-for-sale investment securities | 5 years 6 months | 5 years 1 month 6 days |
Weighted-average yields of available-for-sale investment securities | 2.29% | 2.25% |
Weighted-average maturity of held-to-maturity investment securities | 5 years 2 months 12 days | 4 years 8 months 12 days |
Weighted-average yields of held-to-maturity investment securities | 2.24% | 2.14% |
Fair value of securities pledged | $ 8,000 | $ 12,800 |
Fair value of securities pledged as collateral where counterparty has right to repledge or resell | $ 571 | $ 689 |
Investment Securities - Amount
Investment Securities - Amount of Interest Income from Taxable and Non-Taxable Investment Securities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest Income, Securities, Operating, by Taxable Status [Abstract] | ||
Taxable | $ 561 | $ 483 |
Non-taxable | 52 | 47 |
Total interest income from investment securities | $ 613 | $ 530 |
Investment Securities - Amoun48
Investment Securities - Amount of Gross Gains and Losses Realized through Sales of Available-for-Sale Investment Securities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments [Abstract] | ||
Realized gains | $ 5 | $ 47 |
Realized losses | (18) | |
Net realized gains (losses) | 5 | 29 |
Income tax (benefit) on net realized gains (losses) | $ 1 | $ 11 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Value of Company's Investment Securities (Detail) $ in Millions | Mar. 31, 2018USD ($) |
Continuous Gross Unrealized Losses And Fair Value [Abstract] | |
Fair Value Less Than 12 Months | $ 22,218 |
Unrealized Losses Less Than 12 Months | (490) |
Fair Value 12 Months or Greater | 16,869 |
Unrealized Losses 12 Months or Greater | (757) |
Fair Value Total | 39,087 |
Unrealized Losses Total | (1,247) |
Fair Value Less Than 12 Months | 26,794 |
Unrealized Losses Less Than 12 Months | (535) |
Fair Value 12 Months or Greater | 28,973 |
Unrealized Losses 12 Months or Greater | (1,028) |
Fair Value Total | 55,767 |
Unrealized Losses Total | (1,563) |
U.S. Treasury and Agencies [Member] | |
Continuous Gross Unrealized Losses And Fair Value [Abstract] | |
Fair Value Less Than 12 Months | 2,261 |
Unrealized Losses Less Than 12 Months | (42) |
Fair Value 12 Months or Greater | 2,557 |
Unrealized Losses 12 Months or Greater | (139) |
Fair Value Total | 4,818 |
Unrealized Losses Total | (181) |
Fair Value Less Than 12 Months | 13,116 |
Unrealized Losses Less Than 12 Months | (253) |
Fair Value 12 Months or Greater | 8,747 |
Unrealized Losses 12 Months or Greater | (205) |
Fair Value Total | 21,863 |
Unrealized Losses Total | (458) |
Residential Mortgage-Backed Securities [Member] | Agency [Member] | |
Continuous Gross Unrealized Losses And Fair Value [Abstract] | |
Fair Value Less Than 12 Months | 19,957 |
Unrealized Losses Less Than 12 Months | (448) |
Fair Value 12 Months or Greater | 14,298 |
Unrealized Losses 12 Months or Greater | (618) |
Fair Value Total | 34,255 |
Unrealized Losses Total | (1,066) |
Fair Value Less Than 12 Months | 11,235 |
Unrealized Losses Less Than 12 Months | (236) |
Fair Value 12 Months or Greater | 18,977 |
Unrealized Losses 12 Months or Greater | (732) |
Fair Value Total | 30,212 |
Unrealized Losses Total | (968) |
Commercial [Member] | Agency [Member] | |
Continuous Gross Unrealized Losses And Fair Value [Abstract] | |
Fair Value Less Than 12 Months | 6 |
Fair Value Total | 6 |
Obligations of State and Political Subdivisions [Member] | |
Continuous Gross Unrealized Losses And Fair Value [Abstract] | |
Fair Value Less Than 12 Months | 2,437 |
Unrealized Losses Less Than 12 Months | (46) |
Fair Value 12 Months or Greater | 1,249 |
Unrealized Losses 12 Months or Greater | (91) |
Fair Value Total | 3,686 |
Unrealized Losses Total | (137) |
Asset-Backed Securities [Member] | Other Asset-Backed Securities [Member] | |
Continuous Gross Unrealized Losses And Fair Value [Abstract] | |
Fair Value 12 Months or Greater | 2 |
Fair Value Total | 2 |
Other [Member] | |
Continuous Gross Unrealized Losses And Fair Value [Abstract] | |
Fair Value 12 Months or Greater | 12 |
Fair Value Total | $ 12 |
Loans and Allowance for Credi50
Loans and Allowance for Credit Losses - Composition of Loan Portfolio (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 274,932 | $ 277,311 |
Total loans | $ 277,911 | $ 280,432 |
Total loans, Percentage | 100.00% | 100.00% |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 92,511 | $ 91,958 |
Loans, excluding covered loans, percentage | 33.30% | 32.80% |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 98,097 | $ 97,561 |
Loans, excluding covered loans, percentage | 35.30% | 34.80% |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 40,140 | $ 40,463 |
Loans, excluding covered loans, percentage | 14.40% | 14.50% |
Residential Mortgages [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 60,477 | $ 59,783 |
Loans, excluding covered loans, percentage | 21.80% | 21.30% |
Other Retail [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 55,317 | $ 57,324 |
Loans, excluding covered loans, percentage | 19.90% | 20.40% |
Lease Financing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 5,586 | $ 5,603 |
Loans, excluding covered loans, percentage | 2.00% | 2.00% |
Commercial Mortgages [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 28,982 | $ 29,367 |
Loans, excluding covered loans, percentage | 10.40% | 10.50% |
Construction and Development [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 11,158 | $ 11,096 |
Loans, excluding covered loans, percentage | 4.00% | 4.00% |
Residential Mortgages [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 47,583 | $ 46,685 |
Loans, excluding covered loans, percentage | 17.10% | 16.60% |
Home Equity Loans, First Liens [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 12,894 | $ 13,098 |
Loans, excluding covered loans, percentage | 4.70% | 4.70% |
Credit Card [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 20,901 | $ 22,180 |
Loans, excluding covered loans, percentage | 7.50% | 7.90% |
Retail Leasing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 8,048 | $ 7,988 |
Loans, excluding covered loans, percentage | 2.90% | 2.80% |
Home Equity and Second Mortgages [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 16,030 | $ 16,327 |
Loans, excluding covered loans, percentage | 5.80% | 5.80% |
Revolving Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 3,061 | $ 3,183 |
Loans, excluding covered loans, percentage | 1.10% | 1.10% |
Installment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 9,089 | $ 8,989 |
Loans, excluding covered loans, percentage | 3.30% | 3.20% |
Automobile [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 18,762 | $ 18,934 |
Loans, excluding covered loans, percentage | 6.70% | 6.80% |
Student [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 327 | $ 1,903 |
Loans, excluding covered loans, percentage | 0.10% | 0.70% |
Total Loans, Excluding Covered Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, excluding covered loans | $ 274,932 | $ 277,311 |
Loans, excluding covered loans, percentage | 98.90% | 98.90% |
Covered Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 2,979 | $ 3,121 |
Total loans, Percentage | 1.10% | 1.10% |
Loans and Allowance for Credi51
Loans and Allowance for Credit Losses - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2018USD ($)SecurityLoanMortgageLoan | Dec. 31, 2017USD ($) | |
Loans and Allowance for Credit Losses [Line Items] | ||
Loans pledged at the Federal Home Loan Bank | $ 83,900,000,000 | $ 83,300,000,000 |
Loans pledged at the Federal Reserve Bank | 68,400,000,000 | 68,000,000,000 |
Unearned interest and deferred fees and costs on originated loans | $ 826,000,000 | 830,000,000 |
Minimum period for non collection of principal and interest placed on nonaccrual status for commercial lending segment loans | 90 days | |
Minimum period beyond which residential mortgages and other retail loans secured by 1-4 family properties are charged down to fair value of the collateral securing the loan less costs to sell | 180 days | |
Minimum period beyond which revolving consumer lines and credit cards are charged off | 180 days | |
Minimum period beyond which other retail loans not secured by 1-4 family properties are charged off | 120 days | |
Foreclosed residential real estate property included in other real estate owned | $ 138,000,000 | 156,000,000 |
Foreclosed residential real estate property included in other real estate owned excluding covered assets | 118,000,000 | 135,000,000 |
Foreclosed residential real estate related to mortgage loans whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs | 243,000,000 | 267,000,000 |
Residential mortgage loans secured by residential real estate in process of foreclosure | $ 1,700,000,000 | 1,700,000,000 |
Maximum restructuring period under credit card and other retail loan financial difficulty modifications | 60 months | |
Number of residential mortgage loans, home equity and second mortgage loans, and GNMA loans where trial period was unsuccessful and no longer eligible for a permanent modification | MortgageLoan | 275 | |
Outstanding balance of residential mortgage loans, home equity and second mortgage loans, and GNMA loans where trial period was unsuccessful and no longer eligible for a permanent modification | $ 23,000,000 | |
Government National Mortgage Association [Member] | ||
Loans and Allowance for Credit Losses [Line Items] | ||
Residential mortgage loans secured by residential real estate in process of foreclosure purchased from GNMA mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs | $ 1,300,000,000 | $ 1,300,000,000 |
Home Equity and Second Mortgages [Member] | ||
Loans and Allowance for Credit Losses [Line Items] | ||
Number of loans in trial period | SecurityLoan | 31 | |
Outstanding balance of loans in trial period | $ 3,000,000 | |
Estimated post-modification balance of loans in trial period | 3,000,000 | |
Commercial Lending Segment [Member] | Minimum [Member] | ||
Loans and Allowance for Credit Losses [Line Items] | ||
Impairment loan threshold for allowance in which loans are individually analyzed | $ 5,000,000 | |
Residential Mortgages [Member] | ||
Loans and Allowance for Credit Losses [Line Items] | ||
Number of loans in trial period | SecurityLoan | 50 | |
Outstanding balance of loans in trial period | $ 8,000,000 | |
Estimated post-modification balance of loans in trial period | $ 8,000,000 | |
Residential Mortgages [Member] | Junior Lien [Member] | ||
Loans and Allowance for Credit Losses [Line Items] | ||
Residential mortgage loans and lines in a junior lien position secured by 1-4 family properties placed on nonaccrual status | 120 days | |
Residential Mortgages [Member] | First Lien [Member] | ||
Loans and Allowance for Credit Losses [Line Items] | ||
Residential mortgage loans and lines in a junior lien position placed on nonaccrual status when behind a first lien past due | 180 days | |
Government National Mortgage Association [Member] | ||
Loans and Allowance for Credit Losses [Line Items] | ||
Number of loans in trial period | SecurityLoan | 781 | |
Outstanding balance of loans in trial period | $ 105,000,000 | |
Estimated post-modification balance of loans in trial period | $ 101,000,000 |
Loans and Allowance for Credi52
Loans and Allowance for Credit Losses - Changes in Accretable Balance for Purchased Impaired Loans (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Deteriorated Loans Transferred in [Abstract] | ||
Balance at beginning of period | $ 350 | $ 698 |
Accretion | (91) | (90) |
Disposals | (12) | (23) |
Reclassifications from nonaccretable difference | 10 | 53 |
Other | (1) | |
Balance at end of period | $ 257 | $ 637 |
Loans and Allowance for Credi53
Loans and Allowance for Credit Losses - Activity in Allowance for Credit Losses by Portfolio Class (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | $ 4,417 | $ 4,357 |
Provision for credit losses | 341 | 345 |
Loans charged-off | 453 | 417 |
Less recoveries of loans charged-off | (112) | (82) |
Net loans charged-off | 341 | 335 |
Other changes | (1) | |
Balance at end of period | 4,417 | 4,366 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 1,372 | 1,450 |
Provision for credit losses | 74 | 54 |
Loans charged-off | 94 | 96 |
Less recoveries of loans charged-off | (34) | (21) |
Net loans charged-off | 60 | 75 |
Balance at end of period | 1,386 | 1,429 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 831 | 812 |
Provision for credit losses | (8) | 28 |
Loans charged-off | 3 | 3 |
Less recoveries of loans charged-off | (6) | (5) |
Net loans charged-off | (3) | (2) |
Balance at end of period | 826 | 842 |
Residential Mortgages [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 449 | 510 |
Provision for credit losses | 1 | (13) |
Loans charged-off | 13 | 17 |
Less recoveries of loans charged-off | (6) | (5) |
Net loans charged-off | 7 | 12 |
Balance at end of period | 443 | 485 |
Other Retail [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 678 | 617 |
Provision for credit losses | 60 | 65 |
Loans charged-off | 95 | 89 |
Less recoveries of loans charged-off | (29) | (29) |
Net loans charged-off | 66 | 60 |
Balance at end of period | 672 | 622 |
Credit Card [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 1,056 | 934 |
Provision for credit losses | 219 | 211 |
Loans charged-off | 248 | 212 |
Less recoveries of loans charged-off | (37) | (22) |
Net loans charged-off | 211 | 190 |
Balance at end of period | 1,064 | 955 |
Total Loans, Excluding Covered Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 4,386 | 4,323 |
Provision for credit losses | 346 | 345 |
Loans charged-off | 453 | 417 |
Less recoveries of loans charged-off | (112) | (82) |
Net loans charged-off | 341 | 335 |
Balance at end of period | 4,391 | 4,333 |
Covered Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 31 | 34 |
Provision for credit losses | (5) | |
Other changes | (1) | |
Balance at end of period | $ 26 | $ 33 |
Loans and Allowance for Credi54
Loans and Allowance for Credit Losses - Additional Detail of Allowance for Credit Losses and Related Loan Balances by Portfolio Class (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Allowance Balance at End of Period | ||||
Loans individually evaluated for impairment | $ 31 | $ 27 | ||
TDRs collectively evaluated for impairment | 231 | 237 | ||
Other loans collectively evaluated for impairment | 4,126 | 4,118 | ||
Loans acquired with deteriorated credit quality | 29 | 35 | ||
Total allowance for credit losses | 4,417 | 4,417 | $ 4,366 | $ 4,357 |
Loan Balance at End of Period | ||||
Loans individually evaluated for impairment | 377 | 408 | ||
TDRs collectively evaluated for impairment | 4,095 | 4,269 | ||
Other loans collectively evaluated for impairment | 271,414 | 273,669 | ||
Loans acquired with deteriorated credit quality | 2,025 | 2,086 | ||
Total loans | 274,932 | 277,311 | ||
Total loans | 277,911 | 280,432 | ||
Commercial [Member] | ||||
Allowance Balance at End of Period | ||||
Loans individually evaluated for impairment | 28 | 23 | ||
TDRs collectively evaluated for impairment | 12 | 14 | ||
Other loans collectively evaluated for impairment | 1,346 | 1,335 | ||
Total allowance for credit losses | 1,386 | 1,372 | 1,429 | 1,450 |
Loan Balance at End of Period | ||||
Loans individually evaluated for impairment | 327 | 337 | ||
TDRs collectively evaluated for impairment | 154 | 148 | ||
Other loans collectively evaluated for impairment | 97,616 | 97,076 | ||
Total loans | 98,097 | 97,561 | ||
Commercial Real Estate [Member] | ||||
Allowance Balance at End of Period | ||||
Loans individually evaluated for impairment | 3 | 4 | ||
TDRs collectively evaluated for impairment | 5 | 4 | ||
Other loans collectively evaluated for impairment | 815 | 818 | ||
Loans acquired with deteriorated credit quality | 3 | 5 | ||
Total allowance for credit losses | 826 | 831 | 842 | 812 |
Loan Balance at End of Period | ||||
Loans individually evaluated for impairment | 50 | 71 | ||
TDRs collectively evaluated for impairment | 151 | 145 | ||
Other loans collectively evaluated for impairment | 39,881 | 40,174 | ||
Loans acquired with deteriorated credit quality | 58 | 73 | ||
Total loans | 40,140 | 40,463 | ||
Residential Mortgages [Member] | ||||
Allowance Balance at End of Period | ||||
TDRs collectively evaluated for impairment | 138 | 139 | ||
Other loans collectively evaluated for impairment | 305 | 310 | ||
Total allowance for credit losses | 443 | 449 | 485 | 510 |
Loan Balance at End of Period | ||||
TDRs collectively evaluated for impairment | 3,339 | 3,524 | ||
Other loans collectively evaluated for impairment | 57,137 | 56,258 | ||
Loans acquired with deteriorated credit quality | 1 | 1 | ||
Total loans | 60,477 | 59,783 | ||
Other Retail [Member] | ||||
Allowance Balance at End of Period | ||||
TDRs collectively evaluated for impairment | 16 | 19 | ||
Other loans collectively evaluated for impairment | 656 | 659 | ||
Total allowance for credit losses | 672 | 678 | 622 | 617 |
Loan Balance at End of Period | ||||
TDRs collectively evaluated for impairment | 181 | 186 | ||
Other loans collectively evaluated for impairment | 55,136 | 57,138 | ||
Total loans | 55,317 | 57,324 | ||
Credit Card [Member] | ||||
Allowance Balance at End of Period | ||||
TDRs collectively evaluated for impairment | 60 | 60 | ||
Other loans collectively evaluated for impairment | 1,004 | 996 | ||
Total allowance for credit losses | 1,064 | 1,056 | 955 | 934 |
Loan Balance at End of Period | ||||
TDRs collectively evaluated for impairment | 234 | 230 | ||
Other loans collectively evaluated for impairment | 20,667 | 21,950 | ||
Total loans | 20,901 | 22,180 | ||
Total Loans, Excluding Covered Loans [Member] | ||||
Allowance Balance at End of Period | ||||
Loans individually evaluated for impairment | 31 | 27 | ||
TDRs collectively evaluated for impairment | 231 | 236 | ||
Other loans collectively evaluated for impairment | 4,126 | 4,118 | ||
Loans acquired with deteriorated credit quality | 3 | 5 | ||
Total allowance for credit losses | 4,391 | 4,386 | 4,333 | 4,323 |
Loan Balance at End of Period | ||||
Loans individually evaluated for impairment | 377 | 408 | ||
TDRs collectively evaluated for impairment | 4,059 | 4,233 | ||
Other loans collectively evaluated for impairment | 270,437 | 272,596 | ||
Loans acquired with deteriorated credit quality | 59 | 74 | ||
Total loans | 274,932 | 277,311 | ||
Covered Loans [Member] | ||||
Allowance Balance at End of Period | ||||
TDRs collectively evaluated for impairment | 1 | |||
Loans acquired with deteriorated credit quality | 26 | 30 | ||
Total allowance for credit losses | 26 | 31 | $ 33 | $ 34 |
Loan Balance at End of Period | ||||
TDRs collectively evaluated for impairment | 36 | 36 | ||
Other loans collectively evaluated for impairment | 977 | 1,073 | ||
Loans acquired with deteriorated credit quality | 1,966 | 2,012 | ||
Total loans | $ 2,979 | $ 3,121 |
Loans and Allowance for Credi55
Loans and Allowance for Credit Losses - Summary of Loans by Portfolio Class, Including Delinquency Status of those that Continue to Accrue Interest and are Nonperforming (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 275,118 | $ 277,492 |
Accruing 30-89 Days Past Due | 1,067 | 1,212 |
Accruing 90 Days or More Past Due | 702 | 720 |
Nonperforming | 1,024 | 1,008 |
Total loans, excluding covered loans | 274,932 | 277,311 |
Total loans | 277,911 | 280,432 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 97,494 | 97,005 |
Accruing 30-89 Days Past Due | 241 | 250 |
Accruing 90 Days or More Past Due | 61 | 57 |
Nonperforming | 301 | 249 |
Total loans, excluding covered loans | 98,097 | 97,561 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 39,979 | 40,279 |
Accruing 30-89 Days Past Due | 38 | 36 |
Accruing 90 Days or More Past Due | 4 | 6 |
Nonperforming | 119 | 142 |
Total loans, excluding covered loans | 40,140 | 40,463 |
Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 59,769 | 59,013 |
Accruing 30-89 Days Past Due | 146 | 198 |
Accruing 90 Days or More Past Due | 132 | 130 |
Nonperforming | 430 | 442 |
Total loans, excluding covered loans | 60,477 | 59,783 |
Other Retail [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 54,730 | 56,685 |
Accruing 30-89 Days Past Due | 320 | 376 |
Accruing 90 Days or More Past Due | 99 | 95 |
Nonperforming | 168 | 168 |
Total loans, excluding covered loans | 55,317 | 57,324 |
Credit Card [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 20,356 | 21,593 |
Accruing 30-89 Days Past Due | 275 | 302 |
Accruing 90 Days or More Past Due | 270 | 284 |
Nonperforming | 1 | |
Total loans, excluding covered loans | 20,901 | 22,180 |
Total Loans, Excluding Covered Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 272,328 | 274,575 |
Accruing 30-89 Days Past Due | 1,020 | 1,162 |
Accruing 90 Days or More Past Due | 566 | 572 |
Nonperforming | 1,018 | 1,002 |
Total loans, excluding covered loans | 274,932 | 277,311 |
Covered Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 2,790 | 2,917 |
Accruing 30-89 Days Past Due | 47 | 50 |
Accruing 90 Days or More Past Due | 136 | 148 |
Nonperforming | 6 | 6 |
Total loans | $ 2,979 | $ 3,121 |
Loans and Allowance for Credi56
Loans and Allowance for Credit Losses - Summary of Loans by Portfolio Class, Including Delinquency Status of those that Continue to Accrue Interest and are Nonperforming (Parenthetical) (Detail) - Government National Mortgage Association [Member] - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans 30-89 days past due purchased from Government National Mortgage Association mortgage pools whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current | $ 376 | $ 385 |
Loans 90 days or more past due purchased from Government National Mortgage Association mortgage pools whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current | $ 1,900 | $ 1,900 |
Loans and Allowance for Credi57
Loans and Allowance for Credit Losses - Summary of Loans by Portfolio Class and Company's Internal Credit Quality Rating (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | $ 274,932 | $ 277,311 |
Total loans | 277,911 | 280,432 |
Total outstanding commitments | 593,354 | 591,201 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 98,097 | 97,561 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 40,140 | 40,463 |
Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 60,477 | 59,783 |
Other Retail [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 55,317 | 57,324 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 273,170 | 275,576 |
Total outstanding commitments | 586,609 | 584,072 |
Pass [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 95,757 | 95,297 |
Pass [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 38,990 | 39,162 |
Pass [Member] | Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 59,855 | 59,141 |
Pass [Member] | Other Retail [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 55,005 | 57,009 |
Special Mention Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,874 | 1,800 |
Total outstanding commitments | 3,129 | 3,142 |
Special Mention Criticized [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 1,290 | 1,130 |
Special Mention Criticized [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 556 | 648 |
Special Mention Criticized [Member] | Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 18 | 16 |
Special Mention Criticized [Member] | Other Retail [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 10 | 6 |
Classified Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,867 | 3,056 |
Total outstanding commitments | 3,616 | 3,987 |
Classified Criticized [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 1,050 | 1,134 |
Classified Criticized [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 594 | 653 |
Classified Criticized [Member] | Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 604 | 626 |
Classified Criticized [Member] | Other Retail [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 302 | 309 |
Total Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,741 | 4,856 |
Total outstanding commitments | 6,745 | 7,129 |
Total Criticized [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 2,340 | 2,264 |
Total Criticized [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 1,150 | 1,301 |
Total Criticized [Member] | Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 622 | 642 |
Total Criticized [Member] | Other Retail [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 312 | 315 |
Credit Card [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 20,901 | 22,180 |
Credit Card [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 20,631 | 21,895 |
Credit Card [Member] | Classified Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 270 | 285 |
Credit Card [Member] | Total Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 270 | 285 |
Total Loans, Excluding Covered Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 274,932 | 277,311 |
Total Loans, Excluding Covered Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 270,238 | 272,504 |
Total Loans, Excluding Covered Loans [Member] | Special Mention Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 1,874 | 1,800 |
Total Loans, Excluding Covered Loans [Member] | Classified Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 2,820 | 3,007 |
Total Loans, Excluding Covered Loans [Member] | Total Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding covered loans | 4,694 | 4,807 |
Covered Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,979 | 3,121 |
Covered Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,932 | 3,072 |
Covered Loans [Member] | Classified Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 47 | 49 |
Covered Loans [Member] | Total Criticized [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 47 | $ 49 |
Loans and Allowance for Credi58
Loans and Allowance for Credit Losses - Summary of Loans by Portfolio Class and Company's Internal Credit Quality Rating (Parenthetical) (Detail) - Government National Mortgage Association [Member] - USD ($) $ in Billions | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Restructured GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified with a pass rating | $ 1.6 | $ 1.7 |
GNMA loans 90 days or more past due whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified with a pass rating | $ 1.9 | $ 1.9 |
Loans and Allowance for Credi59
Loans and Allowance for Credit Losses - Summary of Impaired Loans, which Include Nonaccrual and TDR Loans, by Portfolio Class (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||
Period-end Recorded Investment | $ 4,812 | $ 5,027 |
Unpaid Principal Balance | 5,753 | 6,205 |
Valuation Allowance | 270 | 279 |
Commitments to Lend Additional Funds | 219 | 204 |
Commercial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Period-end Recorded Investment | 540 | 550 |
Unpaid Principal Balance | 833 | 915 |
Valuation Allowance | 42 | 44 |
Commitments to Lend Additional Funds | 214 | 199 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Period-end Recorded Investment | 254 | 280 |
Unpaid Principal Balance | 573 | 596 |
Valuation Allowance | 9 | 11 |
Residential Mortgages [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Period-end Recorded Investment | 1,881 | 1,946 |
Unpaid Principal Balance | 2,118 | 2,339 |
Valuation Allowance | 109 | 116 |
Commitments to Lend Additional Funds | 1 | 1 |
Other Retail [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Period-end Recorded Investment | 299 | 302 |
Unpaid Principal Balance | 383 | 400 |
Valuation Allowance | 19 | 22 |
Commitments to Lend Additional Funds | 4 | 4 |
Credit Card [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Period-end Recorded Investment | 234 | 230 |
Unpaid Principal Balance | 234 | 230 |
Valuation Allowance | 60 | 60 |
Total Loans, Excluding GNMA and Covered Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Period-end Recorded Investment | 3,208 | 3,308 |
Unpaid Principal Balance | 4,141 | 4,480 |
Valuation Allowance | 239 | 253 |
Commitments to Lend Additional Funds | 219 | 204 |
Covered Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Period-end Recorded Investment | 38 | 38 |
Unpaid Principal Balance | 46 | 44 |
Valuation Allowance | 1 | 1 |
Government National Mortgage Association [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Period-end Recorded Investment | 1,566 | 1,681 |
Unpaid Principal Balance | 1,566 | 1,681 |
Valuation Allowance | $ 30 | $ 25 |
Loans and Allowance for Credi60
Loans and Allowance for Credit Losses - Impaired Loans Average Recorded Investment and Interest Income Recognized (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | $ 4,920 | $ 5,522 |
Interest Income Recognized | 40 | 55 |
Commercial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 545 | 817 |
Interest Income Recognized | 1 | 1 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 267 | 278 |
Interest Income Recognized | 2 | 2 |
Residential Mortgages [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 1,914 | 2,240 |
Interest Income Recognized | 20 | 29 |
Other Retail [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 300 | 280 |
Interest Income Recognized | 4 | 4 |
Credit Card [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 232 | 225 |
Interest Income Recognized | 1 | 1 |
Total Loans, Excluding GNMA and Covered Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 3,258 | 3,840 |
Interest Income Recognized | 28 | 37 |
Covered Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 38 | 36 |
Government National Mortgage Association [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 1,624 | 1,646 |
Interest Income Recognized | $ 12 | $ 18 |
Loans and Allowance for Credi61
Loans and Allowance for Credit Losses - Summary of Loans Modified as TDRs (Detail) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)SecurityLoan | Dec. 31, 2017USD ($)SecurityLoan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 10,793 | 14,169 |
Pre-Modification Outstanding Loan Balance | $ 285 | $ 630 |
Post-Modification Outstanding Loan Balance | $ 273 | $ 611 |
Commercial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 623 | 830 |
Pre-Modification Outstanding Loan Balance | $ 81 | $ 137 |
Post-Modification Outstanding Loan Balance | $ 75 | $ 128 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 29 | 23 |
Pre-Modification Outstanding Loan Balance | $ 16 | $ 9 |
Post-Modification Outstanding Loan Balance | $ 16 | $ 8 |
Residential Mortgages [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 148 | 356 |
Pre-Modification Outstanding Loan Balance | $ 17 | $ 40 |
Post-Modification Outstanding Loan Balance | $ 16 | $ 41 |
Other Retail [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 559 | 622 |
Pre-Modification Outstanding Loan Balance | $ 11 | $ 11 |
Post-Modification Outstanding Loan Balance | $ 10 | $ 9 |
Credit Card [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 8,546 | 9,405 |
Pre-Modification Outstanding Loan Balance | $ 43 | $ 45 |
Post-Modification Outstanding Loan Balance | $ 43 | $ 46 |
Total Loans, Excluding GNMA and Covered Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 9,905 | 11,236 |
Pre-Modification Outstanding Loan Balance | $ 168 | $ 242 |
Post-Modification Outstanding Loan Balance | $ 160 | $ 232 |
Covered Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 4 | |
Pre-Modification Outstanding Loan Balance | $ 1 | |
Post-Modification Outstanding Loan Balance | $ 1 | |
Government National Mortgage Association [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 888 | 2,929 |
Pre-Modification Outstanding Loan Balance | $ 117 | $ 387 |
Post-Modification Outstanding Loan Balance | $ 113 | $ 378 |
Loans and Allowance for Credi62
Loans and Allowance for Credit Losses - Summary of Loans Modified as TDRs in the Past Twelve Months that have Subsequently Defaulted (Detail) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)SecurityLoan | Dec. 31, 2017USD ($)SecurityLoan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 2,649 | 2,647 |
Amount Defaulted | $ | $ 58 | $ 60 |
Commercial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 239 | 173 |
Amount Defaulted | $ | $ 9 | $ 8 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 8 | 8 |
Amount Defaulted | $ | $ 4 | $ 2 |
Residential Mortgages [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 56 | 72 |
Amount Defaulted | $ | $ 4 | $ 9 |
Other Retail [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 77 | 129 |
Amount Defaulted | $ | $ 1 | $ 2 |
Credit Card [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 2,036 | 2,047 |
Amount Defaulted | $ | $ 9 | $ 9 |
Total Loans, Excluding GNMA and Covered Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 2,416 | 2,429 |
Amount Defaulted | $ | $ 27 | $ 30 |
Covered Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 1 | |
Government National Mortgage Association [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 232 | 218 |
Amount Defaulted | $ | $ 31 | $ 30 |
Loans and Allowance for Credi63
Loans and Allowance for Credit Losses - Carrying Amount of Covered Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Covered Assets [Line Items] | ||
Purchased Impaired Loans | $ 1,966 | $ 2,012 |
Purchased Nonimpaired Loans | 511 | 551 |
Other | 522 | 579 |
Covered loans | 2,979 | 3,121 |
Total Covered Assets | 2,999 | 3,142 |
Residential Mortgages [Member] | ||
Covered Assets [Line Items] | ||
Purchased Impaired Loans | 1,966 | 2,012 |
Purchased Nonimpaired Loans | 374 | 400 |
Covered loans | 2,340 | 2,412 |
Other Retail [Member] | ||
Covered Assets [Line Items] | ||
Purchased Nonimpaired Loans | 137 | 151 |
Covered loans | 137 | 151 |
Losses Reimbursable by FDIC [Member] | ||
Covered Assets [Line Items] | ||
Other | 327 | 320 |
Covered loans | 327 | 320 |
Unamortized Changes in FDIC Asset [Member] | ||
Covered Assets [Line Items] | ||
Other | 175 | 238 |
Covered loans | 175 | 238 |
Covered Loans [Member] | ||
Covered Assets [Line Items] | ||
Purchased Impaired Loans | 1,966 | 2,012 |
Purchased Nonimpaired Loans | 511 | 551 |
Other | 502 | 558 |
Covered loans | 2,979 | 3,121 |
Foreclosed Real Estate [Member] | ||
Covered Assets [Line Items] | ||
Other | 20 | 21 |
Total Covered Assets | $ 20 | $ 21 |
Accounting for Transfers and 64
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Minimum [Member] | |||
Variable Interest Entity [Line Items] | |||
Aggregate amount of investments in unconsolidated VIEs | $ 1,000,000 | $ 1,000,000 | |
Maximum [Member] | |||
Variable Interest Entity [Line Items] | |||
Aggregate amount of investments in unconsolidated VIEs | 54,000,000 | 56,000,000 | |
Financial Support Waived Fees [Member] | |||
Variable Interest Entity [Line Items] | |||
Financial or other support to money market funds | 6,000,000 | $ 6,000,000 | |
Private Investment Funds and Partnerships [Member] | |||
Variable Interest Entity [Line Items] | |||
Investment carrying amount | 30,000,000 | 30,000,000 | |
Maximum exposure to loss | 51,000,000 | 51,000,000 | |
Community Development and Tax Advantaged Investments [Member] | |||
Variable Interest Entity [Line Items] | |||
Federal and state income tax credits recognized in tax expense | 166,000,000 | 161,000,000 | |
Expense related to investments | 146,000,000 | 145,000,000 | |
Investment tax credits | 137,000,000 | 259,000,000 | |
Expenses related to investments recognized in tax expense | 67,000,000 | $ 63,000,000 | |
Investment carrying amount | 5,637,000,000 | 5,660,000,000 | |
Maximum exposure to loss | 12,264,000,000 | 12,120,000,000 | |
Assets related to consolidated VIEs | 3,400,000,000 | 3,500,000,000 | |
Liabilities related to consolidated VIEs | 2,500,000,000 | 2,500,000,000 | |
Conduit [Member] | |||
Variable Interest Entity [Line Items] | |||
Assets related to consolidated VIEs | 18,000,000 | 18,000,000 | |
Tender Option Bond Program [Member] | |||
Variable Interest Entity [Line Items] | |||
Assets related to consolidated VIEs | 2,400,000,000 | 2,500,000,000 | |
Liabilities related to consolidated VIEs | $ 2,300,000,000 | $ 2,300,000,000 |
Accounting for Transfers and 65
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities - Summary of Investments in Community Development and Tax-advantaged VIEs (Detail) - Community Development and Tax Advantaged Investments [Member] - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Investment carrying amount | $ 5,637 | $ 5,660 |
Unfunded capital and other commitments | 2,648 | 2,770 |
Maximum exposure to loss | $ 12,264 | $ 12,120 |
Mortgage Servicing Rights - Add
Mortgage Servicing Rights - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Transfers and Servicing of Financial Assets [Abstract] | |||
Residential mortgage loans serviced for others including subserviced mortgages with no corresponding MSRs asset | $ 235,000 | $ 234,700 | |
Gain (Loss) on fair value changes of MSRs due to changes in valuation assumptions and derivatives used to economically hedge MSRs | 19 | $ 12 | |
Loan servicing and ancillary fees | $ 190 | $ 192 |
Mortgage Servicing Rights - Cha
Mortgage Servicing Rights - Changes in Fair Value of Capitalized MSRs (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Transfers and Servicing of Financial Assets [Abstract] | ||
Balance at beginning of period | $ 2,645 | $ 2,591 |
Rights purchased | 2 | 2 |
Rights capitalized | 100 | 122 |
Changes in fair value of MSRs | ||
Due to fluctuations in market interest rates | 114 | 20 |
Due to revised assumptions or models | 24 | 12 |
Other changes in fair value | (105) | (105) |
Balance at end of period | $ 2,780 | $ 2,642 |
Mortgage Servicing Rights - Sen
Mortgage Servicing Rights - Sensitivity to Changes in Interest Rates of the Fair Value of MSRs Portfolio and Related Derivative Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Down Scenario [Member] | Mortgage Servicing Rights [Member] | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Net fair value 100 basis points | $ (433) | $ (520) |
Net fair value 50 basis points | (192) | (231) |
Net fair value 25 basis points | (90) | (109) |
Down Scenario [Member] | Derivative [Member] | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Net fair value 100 basis points | 399 | 453 |
Net fair value 50 basis points | 187 | 216 |
Net fair value 25 basis points | 90 | 105 |
Down Scenario [Member] | Net Sensitivity [Member] | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Net fair value 100 basis points | (34) | (67) |
Net fair value 50 basis points | (5) | (15) |
Net fair value 25 basis points | (4) | |
Up Scenario [Member] | Mortgage Servicing Rights [Member] | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Net fair value 100 basis points | 240 | 302 |
Net fair value 50 basis points | 142 | 177 |
Net fair value 25 basis points | 77 | 95 |
Up Scenario [Member] | Derivative [Member] | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Net fair value 100 basis points | (277) | (336) |
Net fair value 50 basis points | (154) | (184) |
Net fair value 25 basis points | (82) | (96) |
Up Scenario [Member] | Net Sensitivity [Member] | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Net fair value 100 basis points | (37) | (34) |
Net fair value 50 basis points | (12) | (7) |
Net fair value 25 basis points | $ (5) | $ (1) |
Mortgage Servicing Rights - MSR
Mortgage Servicing Rights - MSRs and Related Characteristics by Portfolio (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018USD ($)BasisPointMultiple | Dec. 31, 2017USD ($)BasisPointMultiple | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Servicing Assets at Fair Value [Line Items] | ||||
Fair value | $ 2,780 | $ 2,645 | $ 2,642 | $ 2,591 |
Mortgage Servicing Rights [Member] | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing portfolio | 233,052 | 232,846 | ||
Fair value | $ 2,780 | $ 2,645 | ||
Value (bps) | BasisPoint | 119 | 114 | ||
Weighted-average servicing fees (bps) | BasisPoint | 29 | 29 | ||
Multiple (value/servicing fees) | Multiple | 4.05 | 3.86 | ||
Weighted-average note rate | 4.08% | 4.08% | ||
Weighted-average age (in years) | 4 years 1 month 6 days | 4 years | ||
Weighted-average expected prepayment (constant prepayment rate) | 9.20% | 10.00% | ||
Weighted-average expected life (in years) | 7 years 3 months 18 days | 7 years | ||
Weighted-average option adjusted spread | 7.80% | 8.00% | ||
HFA [Member] | Mortgage Servicing Rights [Member] | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing portfolio | $ 41,815 | $ 40,737 | ||
Fair value | $ 486 | $ 450 | ||
Value (bps) | BasisPoint | 116 | 110 | ||
Weighted-average servicing fees (bps) | BasisPoint | 35 | 35 | ||
Multiple (value/servicing fees) | Multiple | 3.36 | 3.17 | ||
Weighted-average note rate | 4.46% | 4.43% | ||
Weighted-average age (in years) | 3 years 1 month 6 days | 3 years | ||
Weighted-average expected prepayment (constant prepayment rate) | 9.30% | 9.80% | ||
Weighted-average expected life (in years) | 7 years 10 months 24 days | 7 years 8 months 12 days | ||
Weighted-average option adjusted spread | 8.80% | 9.90% | ||
Government Insured [Member] | Mortgage Servicing Rights [Member] | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing portfolio | $ 37,055 | $ 36,756 | ||
Fair value | $ 461 | $ 428 | ||
Value (bps) | BasisPoint | 124 | 116 | ||
Weighted-average servicing fees (bps) | BasisPoint | 35 | 34 | ||
Multiple (value/servicing fees) | Multiple | 3.59 | 3.38 | ||
Weighted-average note rate | 3.93% | 3.92% | ||
Weighted-average age (in years) | 4 years 3 months 18 days | 4 years 3 months 18 days | ||
Weighted-average expected prepayment (constant prepayment rate) | 10.80% | 11.60% | ||
Weighted-average expected life (in years) | 6 years 9 months 18 days | 6 years 6 months | ||
Weighted-average option adjusted spread | 8.40% | 9.20% | ||
Conventional [Member] | Mortgage Servicing Rights [Member] | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing portfolio | $ 154,182 | $ 155,353 | ||
Fair value | $ 1,833 | $ 1,767 | ||
Value (bps) | BasisPoint | 119 | 114 | ||
Weighted-average servicing fees (bps) | BasisPoint | 27 | 27 | ||
Multiple (value/servicing fees) | Multiple | 4.44 | 4.24 | ||
Weighted-average note rate | 4.02% | 4.02% | ||
Weighted-average age (in years) | 4 years 3 months 18 days | 4 years 2 months 12 days | ||
Weighted-average expected prepayment (constant prepayment rate) | 8.80% | 9.70% | ||
Weighted-average expected life (in years) | 7 years 3 months 18 days | 6 years 10 months 24 days | ||
Weighted-average option adjusted spread | 7.30% | 7.20% |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Detail) - shares | Mar. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||
Number of preferred stock shares authorized | 50,000,000 | 50,000,000 |
Preferred Stock - Number of Sha
Preferred Stock - Number of Shares Issued and Outstanding and Carrying Amount of Preferred Stock (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | ||
Shares Issued and Outstanding | 186,510 | 186,510 |
Liquidation Preference | $ 5,601 | $ 5,601 |
Discount | 182 | 182 |
Carrying Amount | $ 5,419 | $ 5,419 |
Series A [Member] | ||
Class of Stock [Line Items] | ||
Shares Issued and Outstanding | 12,510 | 12,510 |
Liquidation Preference | $ 1,251 | $ 1,251 |
Discount | 145 | 145 |
Carrying Amount | $ 1,106 | $ 1,106 |
Series B [Member] | ||
Class of Stock [Line Items] | ||
Shares Issued and Outstanding | 40,000 | 40,000 |
Liquidation Preference | $ 1,000 | $ 1,000 |
Carrying Amount | $ 1,000 | $ 1,000 |
Series F [Member] | ||
Class of Stock [Line Items] | ||
Shares Issued and Outstanding | 44,000 | 44,000 |
Liquidation Preference | $ 1,100 | $ 1,100 |
Discount | 12 | 12 |
Carrying Amount | $ 1,088 | $ 1,088 |
Series H [Member] | ||
Class of Stock [Line Items] | ||
Shares Issued and Outstanding | 20,000 | 20,000 |
Liquidation Preference | $ 500 | $ 500 |
Discount | 13 | 13 |
Carrying Amount | $ 487 | $ 487 |
Series I [Member] | ||
Class of Stock [Line Items] | ||
Shares Issued and Outstanding | 30,000 | 30,000 |
Liquidation Preference | $ 750 | $ 750 |
Discount | 5 | 5 |
Carrying Amount | $ 745 | $ 745 |
Series J [Member] | ||
Class of Stock [Line Items] | ||
Shares Issued and Outstanding | 40,000 | 40,000 |
Liquidation Preference | $ 1,000 | $ 1,000 |
Discount | 7 | 7 |
Carrying Amount | $ 993 | $ 993 |
Preferred Stock - Number of S72
Preferred Stock - Number of Shares Issued and Outstanding and Carrying Amount of Preferred Stock (Parenthetical) (Detail) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||
Preferred stock, par value | $ 1 | $ 1 |
Accumulated Other Comprehensi73
Accumulated Other Comprehensive Income (Loss) - Reconciliation of Transactions Affecting Accumulated Other Comprehensive Income (Loss) Included in Shareholders' Equity (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | $ (1,404) | $ (1,535) |
Revaluation of tax related balances | (300) | |
Changes in unrealized gains and losses | (776) | 127 |
Changes in unrealized gains and losses | 86 | 7 |
Changes in unrealized gains and losses | (3) | |
Changes in unrealized gains and losses | (693) | 134 |
Foreign currency translation adjustment | 13 | 10 |
Reclassification to earnings of realized gains and losses | 29 | 11 |
Applicable income taxes | 162 | (59) |
Balance at end of period | (2,193) | (1,439) |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (69) | (71) |
Revaluation of tax related balances | (13) | |
Foreign currency translation adjustment | 13 | 10 |
Applicable income taxes | (7) | (3) |
Balance at end of period | (76) | (64) |
Unrealized Gains (Losses) on Retirement Plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (1,066) | (1,113) |
Revaluation of tax related balances | (229) | |
Changes in unrealized gains and losses | (3) | |
Reclassification to earnings of realized gains and losses | 34 | 29 |
Applicable income taxes | (7) | (11) |
Balance at end of period | (1,271) | (1,095) |
Unrealized Gains (Losses) on Derivative Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | 71 | 55 |
Revaluation of tax related balances | 15 | |
Changes in unrealized gains and losses | 86 | 7 |
Reclassification to earnings of realized gains and losses | 3 | 14 |
Applicable income taxes | (23) | (8) |
Balance at end of period | 152 | 68 |
Unrealized Gains (Losses) on Investment Securities Transferred From Available For Sale to Held To Maturity [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | 17 | 25 |
Revaluation of tax related balances | 4 | |
Reclassification to earnings of realized gains and losses | (3) | (3) |
Applicable income taxes | 1 | 1 |
Balance at end of period | 19 | 23 |
Unrealized Gains (Losses) on Investment Securities Available-For-Sale [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (357) | (431) |
Revaluation of tax related balances | (77) | |
Changes in unrealized gains and losses | (776) | 127 |
Reclassification to earnings of realized gains and losses | (5) | (29) |
Applicable income taxes | 198 | (38) |
Balance at end of period | $ (1,017) | $ (371) |
Accumulated Other Comprehensi74
Accumulated Other Comprehensive Income (Loss) - Impact to Net Income for Items Reclassified out of Accumulated Other Comprehensive Income and into Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Realized gains (losses) on sale of investment securities | $ 5 | $ 29 |
Amortization of unrealized gains on securities transferred from available-for-sale to held-to-maturity, Interest income | 3,791 | 3,393 |
Realized gains (losses) on derivative hedges | (623) | (413) |
Actuarial gains (losses) and prior service cost (credit) amortization | (330) | (301) |
Applicable income taxes | (362) | (499) |
Net income | 1,682 | 1,486 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | (22) | (7) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Investment Securities Available-For-Sale [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Realized gains (losses) on sale of investment securities | 5 | 29 |
Applicable income taxes | (1) | (11) |
Net income | 4 | 18 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Investment Securities Transferred From Available For Sale to Held To Maturity [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amortization of unrealized gains on securities transferred from available-for-sale to held-to-maturity, Interest income | 3 | 3 |
Applicable income taxes | (1) | (1) |
Net income | 2 | 2 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivative Hedges [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Realized gains (losses) on derivative hedges | (3) | (14) |
Applicable income taxes | 1 | 5 |
Net income | (2) | (9) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Retirement Plans [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Actuarial gains (losses) and prior service cost (credit) amortization | (34) | (29) |
Applicable income taxes | 8 | 11 |
Net income | $ (26) | $ (18) |
Earnings Per Share - Components
Earnings Per Share - Components of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income attributable to U.S. Bancorp | $ 1,675 | $ 1,473 |
Preferred dividends | (70) | (69) |
Impact of preferred stock call | (10) | |
Earnings allocated to participating stock awards | (8) | (7) |
Net income applicable to U.S. Bancorp common shareholders | $ 1,597 | $ 1,387 |
Average common shares outstanding | 1,652 | 1,694 |
Net effect of the exercise and assumed purchase of stock awards | 5 | 7 |
Average diluted common shares outstanding | 1,657 | 1,701 |
Earnings per common share | $ 0.97 | $ 0.82 |
Diluted earnings per common share | $ 0.96 | $ 0.82 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options outstanding of common shares | 1 | 1 |
Employee Benefits - Components
Employee Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 52 | $ 47 |
Interest cost | 56 | 55 |
Expected return on plan assets | (95) | (71) |
Prior service cost (credit) amortization | (1) | |
Actuarial loss (gain) amortization | 37 | 32 |
Net periodic benefit cost | 50 | 62 |
Postretirement Welfare Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 1 | 1 |
Expected return on plan assets | (1) | (1) |
Prior service cost (credit) amortization | (1) | (1) |
Actuarial loss (gain) amortization | (2) | (1) |
Net periodic benefit cost | $ (3) | $ (2) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Federal | ||
Current | $ 234 | $ 531 |
Deferred | 19 | (120) |
Federal income tax | 253 | 411 |
State | ||
Current | 92 | 65 |
Deferred | 17 | 23 |
State income tax | 109 | 88 |
Applicable income taxes | $ 362 | $ 499 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Taxes Additional Information [Abstract] | |||
Federal statutory rate | 21.00% | 35.00% | |
Net deferred tax asset | $ 671 | $ 473 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Expected Income Tax Expense at Federal Statutory Rate of 21 Percent and 35 Percent to Company's Applicable Income Tax Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Tax at statutory rate | $ 429 | $ 695 |
State income tax, at statutory rates, net of federal tax benefit | 89 | 63 |
Tax credits and benefits, net of related expenses | (115) | (193) |
Exam resolutions | (49) | |
Tax-exempt income | (32) | (49) |
Noncontrolling interests | (1) | (5) |
Other items | 41 | (12) |
Applicable income taxes | $ 362 | $ 499 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||||
Realized and unrealized gains (losses) on derivatives classified as cash flow hedges recorded in other comprehensive income (loss) | $ 152 | $ 71 | ||
Non-derivative debt instruments designated as net investment hedges | 1,200 | $ 1,200 | ||
Fair value of derivatives under collateral agreements in a net liability position | 669 | |||
Collateral posted by company netted against net liability position | 617 | |||
Forward commitments to sell mortgage loans | 5,100 | |||
Hedged mortgage loans held for sale | 2,500 | |||
Unfunded mortgage loan commitments | $ 2,700 | |||
Scenario, Forecast [Member] | ||||
Derivative [Line Items] | ||||
Estimated gain to be reclassified from other comprehensive income (loss) into earnings | $ 17 | $ 22 |
Derivative Instruments - Asset
Derivative Instruments - Asset and Liability Management Derivative Positions of Company (Detail) - Asset and Liability Management Positions [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||
Notional Value, Assets | $ 41,815 | $ 36,579 |
Fair Value, Assets | 264 | 163 |
Notional Value, Liabilities | 22,221 | 21,030 |
Fair Value, Liabilities | 305 | 172 |
Other Derivatives [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | 300 | |
Fair Value, Assets | $ 5 | |
Derivative Asset Average Remaining Maturity Period | 7 days | |
Notional Value, Liabilities | $ 1,514 | 1,164 |
Fair Value, Liabilities | $ 127 | $ 125 |
Derivative Liability Average Remaining Maturity Period | 1 year 9 months 22 days | 2 years 6 months |
Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Receive Fixed/Pay Floating Swaps [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 2,750 | $ 2,019 |
Fair Value, Assets | $ 5 | |
Derivative Asset Average Remaining Maturity Period | 15 years 11 days | 16 years 5 months 27 days |
Notional Value, Liabilities | $ 4,420 | $ 5,469 |
Fair Value, Liabilities | $ 114 | |
Derivative Liability Average Remaining Maturity Period | 7 years 11 months 15 days | 8 years 5 months 5 days |
Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Pay Fixed/Receive Floating Swaps [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 4,333 | $ 4,844 |
Fair Value, Assets | $ 21 | |
Derivative Asset Average Remaining Maturity Period | 7 years 8 months 19 days | 7 years 8 months 9 days |
Notional Value, Liabilities | $ 88 | $ 46 |
Fair Value, Liabilities | $ 1 | |
Derivative Liability Average Remaining Maturity Period | 5 years 2 months 23 days | 6 years 8 months 12 days |
Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Futures and Forwards [Member] | Purchased [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 1,895 | $ 1,632 |
Fair Value, Assets | $ 8 | $ 7 |
Derivative Asset Average Remaining Maturity Period | 1 month 6 days | 1 month 6 days |
Notional Value, Liabilities | $ 1,172 | $ 1,326 |
Fair Value, Liabilities | $ 2 | $ 2 |
Derivative Liability Average Remaining Maturity Period | 1 month 2 days | 15 days |
Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Futures and Forwards [Member] | Written [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 19,126 | $ 15,291 |
Fair Value, Assets | $ 19 | $ 10 |
Derivative Asset Average Remaining Maturity Period | 1 year 1 month 20 days | 10 months 21 days |
Notional Value, Liabilities | $ 5,193 | $ 4,511 |
Fair Value, Liabilities | $ 17 | $ 10 |
Derivative Liability Average Remaining Maturity Period | 7 days | 11 days |
Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Options [Member] | Purchased [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 6,235 | $ 4,985 |
Fair Value, Assets | $ 77 | $ 65 |
Derivative Asset Average Remaining Maturity Period | 7 years 7 months 17 days | 7 years 6 months 25 days |
Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Options [Member] | Written [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 1,123 | $ 1,285 |
Fair Value, Assets | $ 26 | $ 21 |
Derivative Asset Average Remaining Maturity Period | 1 month 2 days | 1 month 6 days |
Notional Value, Liabilities | $ 7 | $ 5 |
Derivative Liability Average Remaining Maturity Period | 1 month 13 days | 18 days |
Other Economic Hedges [Member] | Foreign Exchange Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 132 | $ 147 |
Fair Value, Assets | $ 1 | $ 1 |
Derivative Asset Average Remaining Maturity Period | 18 days | 7 days |
Notional Value, Liabilities | $ 540 | $ 669 |
Fair Value, Liabilities | $ 3 | $ 8 |
Derivative Liability Average Remaining Maturity Period | 15 days | 15 days |
Other Economic Hedges [Member] | Equity Contracts [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 25 | $ 45 |
Fair Value, Assets | $ 1 | |
Derivative Asset Average Remaining Maturity Period | 6 months 25 days | 1 year 1 month 6 days |
Notional Value, Liabilities | $ 108 | $ 88 |
Fair Value, Liabilities | $ 4 | $ 1 |
Derivative Liability Average Remaining Maturity Period | 6 months | 6 months 29 days |
Other Economic Hedges [Member] | Credit Contracts [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 1,812 | $ 1,559 |
Derivative Asset Average Remaining Maturity Period | 3 years 7 days | 3 years 4 months 28 days |
Notional Value, Liabilities | $ 3,880 | $ 3,779 |
Fair Value, Liabilities | $ 1 | $ 1 |
Derivative Liability Average Remaining Maturity Period | 3 years 1 month 24 days | 3 years 1 month 27 days |
Fair Value Hedges [Member] | Interest Rate Contracts [Member] | Receive Fixed/Pay Floating Swaps [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 1,000 | |
Fair Value, Assets | $ 28 | |
Derivative Asset Average Remaining Maturity Period | 6 years 8 months 12 days | |
Notional Value, Liabilities | $ 4,600 | $ 3,600 |
Fair Value, Liabilities | $ 37 | $ 16 |
Derivative Liability Average Remaining Maturity Period | 2 years 5 months 1 day | 1 year 6 months 18 days |
Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | Pay Fixed/Receive Floating Swaps [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 3,892 | $ 3,772 |
Fair Value, Assets | $ 126 | $ 5 |
Derivative Asset Average Remaining Maturity Period | 6 years 5 months 23 days | 6 years 8 months 23 days |
Notional Value, Liabilities | $ 500 | |
Derivative Liability Average Remaining Maturity Period | 7 months 17 days | |
Net Investment Hedges [Member] | Foreign Exchange Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 192 | |
Fair Value, Assets | $ 1 | |
Derivative Asset Average Remaining Maturity Period | 18 days | |
Notional Value, Liabilities | $ 199 | $ 373 |
Fair Value, Liabilities | $ 8 | |
Derivative Liability Average Remaining Maturity Period | 18 days | 18 days |
Derivative Instruments - Asse83
Derivative Instruments - Asset and Liability Management Derivative Positions of Company (Parenthetical) (Detail) - Asset and Liability Management Positions [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||
Notional Value, Assets | $ 41,815 | $ 36,579 |
Notional Value, Liabilities | 22,221 | 21,030 |
Fair Value, Liabilities | 305 | 172 |
Underwriting Purchase and Sale Commitments [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | 300 | |
Notional Value, Liabilities | 300 | |
Swap [Member] | Visa Class B Shares [Member] | ||
Derivative [Line Items] | ||
Notional Value, Liabilities | 1,200 | 1,200 |
Fair Value, Liabilities | $ 122 | $ 125 |
Derivative Liability Average Remaining Maturity Period | 2 years 2 months 30 days | 2 years 6 months |
Derivative Instruments - Custom
Derivative Instruments - Customer-Related Derivative Positions of Company (Detail) - Customer-Related Positions [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||
Notional Value, Assets | $ 171,661 | $ 156,822 |
Fair Value, Assets | 1,866 | 2,319 |
Notional Value, Liabilities | 165,812 | 140,485 |
Fair Value, Liabilities | 1,947 | 2,195 |
Interest Rate Contracts [Member] | Receive Fixed/Pay Floating Swaps [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | 25,579 | 28,681 |
Fair Value, Assets | $ 492 | $ 679 |
Derivative Asset Average Remaining Maturity Period | 4 years 4 months 28 days | 5 years 8 months 16 days |
Notional Value, Liabilities | $ 75,797 | $ 59,990 |
Fair Value, Liabilities | $ 630 | $ 840 |
Derivative Liability Average Remaining Maturity Period | 4 years 5 months 12 days | 4 years 3 months 8 days |
Interest Rate Contracts [Member] | Pay Fixed/Receive Floating Swaps [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 72,317 | $ 63,038 |
Fair Value, Assets | $ 413 | $ 860 |
Derivative Asset Average Remaining Maturity Period | 4 years 4 months 28 days | 4 years 2 months 12 days |
Notional Value, Liabilities | $ 27,680 | $ 25,093 |
Fair Value, Liabilities | $ 388 | $ 602 |
Derivative Liability Average Remaining Maturity Period | 4 years 4 months 13 days | 5 years 9 months 3 days |
Interest Rate Contracts [Member] | Options [Member] | Purchased [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 32,509 | $ 29,091 |
Fair Value, Assets | $ 46 | $ 22 |
Derivative Asset Average Remaining Maturity Period | 1 year 6 months 10 days | 1 year 7 months 10 days |
Notional Value, Liabilities | $ 1,960 | $ 880 |
Fair Value, Liabilities | $ 22 | $ 14 |
Derivative Liability Average Remaining Maturity Period | 2 years 3 months 4 days | 4 years 2 months 27 days |
Interest Rate Contracts [Member] | Options [Member] | Written [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 2,060 | $ 880 |
Fair Value, Assets | $ 23 | $ 15 |
Derivative Asset Average Remaining Maturity Period | 2 years 4 months 17 days | 4 years 2 months 27 days |
Notional Value, Liabilities | $ 30,225 | $ 27,056 |
Fair Value, Liabilities | $ 43 | $ 20 |
Derivative Liability Average Remaining Maturity Period | 1 year 4 months 20 days | 1 year 6 months |
Interest Rate Contracts [Member] | Futures [Member] | Written [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 8,151 | $ 7,007 |
Fair Value, Assets | $ 8 | $ 4 |
Derivative Asset Average Remaining Maturity Period | 1 year 29 days | 1 year 2 months 16 days |
Foreign Exchange Rate Contracts [Member] | Forwards, Spots and Swaps [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 26,646 | $ 24,099 |
Fair Value, Assets | $ 776 | $ 656 |
Derivative Asset Average Remaining Maturity Period | 9 months 7 days | 9 months 22 days |
Notional Value, Liabilities | $ 25,751 | $ 23,440 |
Fair Value, Liabilities | $ 756 | $ 636 |
Derivative Liability Average Remaining Maturity Period | 9 months 7 days | 9 months 29 days |
Foreign Exchange Option [Member] | Purchased [Member] | ||
Derivative [Line Items] | ||
Notional Value, Assets | $ 4,399 | $ 4,026 |
Fair Value, Assets | $ 108 | $ 83 |
Derivative Asset Average Remaining Maturity Period | 1 year 15 days | 1 year 2 months 12 days |
Foreign Exchange Option [Member] | Written [Member] | ||
Derivative [Line Items] | ||
Notional Value, Liabilities | $ 4,399 | $ 4,026 |
Fair Value, Liabilities | $ 108 | $ 83 |
Derivative Liability Average Remaining Maturity Period | 1 year 15 days | 1 year 2 months 12 days |
Derivative Instruments - Summar
Derivative Instruments - Summary of Effective Portion of Gains (Losses) Recognized in Other Comprehensive Income (Loss) and Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings (Detail) - Asset and Liability Management Positions [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Losses) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ 64 | $ 4 |
Derivative Instruments, Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings | (2) | (9) |
Net Investment Hedges [Member] | Foreign Exchange Forward Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Losses) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 16 | $ (7) |
Net Investment Hedges [Member] | Non Derivative Debt Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Losses) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ (34) |
Derivative Instruments - Effect
Derivative Instruments - Effect of Fair Value and Cash Flow Hedge Accounting on Consolidated Statement of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Noninterest Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total amount of income line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded | $ 167 | $ 180 |
Other Noninterest Income [Member] | Asset and Liability Management Positions [Member] | Fair Value Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gains (Losses) Recognized in Earnings related to fair value hedged item | 10 | |
Other Noninterest Income [Member] | Asset and Liability Management Positions [Member] | Fair Value Hedges [Member] | Interest Rate Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gains (Losses) Recognized in Earnings related to fair value hedge | (10) | |
Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total amount of expense line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded | 623 | 413 |
Interest Expense [Member] | Asset and Liability Management Positions [Member] | Fair Value Hedges [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gains (Losses) Recognized in Earnings related to fair value hedged item | 43 | |
Interest Expense [Member] | Asset and Liability Management Positions [Member] | Fair Value Hedges [Member] | Interest Rate Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gains (Losses) Recognized in Earnings related to fair value hedge | (43) | |
Interest Expense [Member] | Asset and Liability Management Positions [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gains (Losses) Recognized in Earnings related to cash flow hedge | $ 3 | $ 14 |
Derivative Instruments - Summ87
Derivative Instruments - Summary of Cumulative Hedging Adjustment for Fair Value Hedges Included in Carrying Value of Hedged Assets (Liabilities) (Detail) - Fair Value Hedges [Member] - Long-term Debt Securities [Member] - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Carrying amount of the hedged assets (liabilities), Long-term debt | $ 4,544 | $ 4,584 |
Cumulative hedging Adjustment included in the carrying amount of the hedged assets (liabilities) | $ (48) | $ (8) |
Derivative Instruments - Summ88
Derivative Instruments - Summary of Gains (Losses) Recognized in Earnings for Other Economic Hedges and Customer-Related Positions (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Other Noninterest Income [Member] | Options [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in earnings | $ (6) | |
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Other Noninterest Income [Member] | Receive Fixed/Pay Floating Swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in earnings | $ (1,164) | (250) |
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Other Noninterest Income [Member] | Pay Fixed/Receive Floating Swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in earnings | 1,167 | 269 |
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Other Noninterest Income [Member] | Futures [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in earnings | 8 | (2) |
Customer-Related Positions [Member] | Foreign Exchange Rate Contracts [Member] | Commercial Products Revenue [Member] | Forwards, Spots and Swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in earnings | 23 | 22 |
Customer-Related Positions [Member] | Foreign Exchange Option [Member] | Commercial Products Revenue [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in earnings | 1 | |
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Mortgage Banking Revenue [Member] | Futures and Forwards [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in earnings | 58 | 6 |
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Mortgage Banking Revenue [Member] | Options [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in earnings | 42 | 40 |
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Mortgage Banking Revenue [Member] | Receive Fixed/Pay Floating Swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in earnings | (79) | 31 |
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Mortgage Banking Revenue [Member] | Pay Fixed/Receive Floating Swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in earnings | (31) | (40) |
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Foreign Exchange Forward Contracts [Member] | Other Noninterest Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in earnings | 12 | (7) |
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Equity Contracts [Member] | Compensation Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in earnings | $ (1) | 1 |
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Credit Contracts [Member] | Other Noninterest Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in earnings | $ 1 |
Netting Arrangements for Cert89
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Additional Information (Detail) $ in Billions | Mar. 31, 2018USD ($) |
Derivative [Line Items] | |
Notional amount of derivative | $ 401.5 |
Over the Counter Trades [Member] | |
Derivative [Line Items] | |
Notional amount of derivative | 207.4 |
Exchange Cleared [Member] | |
Derivative [Line Items] | |
Notional amount of derivative | 169.1 |
Exchange Traded [Member] | |
Derivative [Line Items] | |
Notional amount of derivative | $ 25 |
Netting Arrangements for Cert90
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Summary of Maturities by Category of Collateral Pledged for Repurchase Agreements and Securities Loaned Transactions (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 981 | $ 803 |
Securities loaned | 400 | 111 |
Gross amount of recognized liabilities for repurchase agreements and securities loaned | 1,381 | 914 |
Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 717 | 773 |
Securities loaned | 400 | 111 |
Gross amount of recognized liabilities for repurchase agreements and securities loaned | 1,117 | 884 |
Less Than 30 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 264 | 30 |
Gross amount of recognized liabilities for repurchase agreements and securities loaned | 264 | 30 |
Corporate Debt Securities [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 366 | 104 |
Securities loaned | 400 | 111 |
Corporate Debt Securities [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 279 | 104 |
Securities loaned | 400 | 111 |
Corporate Debt Securities [Member] | Less Than 30 Days [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 87 | |
U.S. Treasury and Agencies [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 58 | 25 |
U.S. Treasury and Agencies [Member] | Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 58 | 25 |
Residential Mortgage-Backed Securities [Member] | Agency [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 557 | 674 |
Residential Mortgage-Backed Securities [Member] | Overnight and Continuous [Member] | Agency [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 380 | 644 |
Residential Mortgage-Backed Securities [Member] | Less Than 30 Days [Member] | Agency [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 177 | $ 30 |
Netting Arrangements for Cert91
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Information on Company's Accounting Netting Adjustments and Items Not Offset in Consolidated Balance Sheet Assets But Available for Offset in Event of Default (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Offsetting [Abstract] | ||
Derivative assets Gross Recognized Assets | $ 2,094 | $ 1,759 |
Reverse repurchase agreements Gross Recognized Assets | 159 | 24 |
Securities borrowed Gross Recognized Assets | 1,173 | 923 |
Total Gross Recognized Assets | 3,426 | 2,706 |
Derivative assets Gross amounts assets offset in consolidated balance sheet | (821) | (652) |
Total Gross amounts assets offset in consolidated balance sheet | (821) | (652) |
Derivative assets Net Amounts Presented in the Consolidated Balance Sheet | 1,273 | 1,107 |
Reverse repurchase agreements Net Amounts Presented in the Consolidated Balance Sheet | 159 | 24 |
Securities borrowed Net Amounts Presented in the Consolidated Balance Sheet | 1,173 | 923 |
Total Net Amounts Presented in the Consolidated Balance Sheet | 2,605 | 2,054 |
Derivative assets Gross financial instrument asset amounts not offset in consolidated balance sheet | (74) | (110) |
Reverse repurchase agreements Gross financial instrument asset amounts not offset in consolidated balance sheet | (6) | (24) |
Securities borrowed Gross financial instrument asset amounts not offset in consolidated balance sheet | 0 | 0 |
Total Gross financial instrument asset amounts not offset in consolidated balance sheet | (80) | (134) |
Derivative assets Gross collateral received amounts not offset in consolidated balance sheet | (5) | |
Reverse repurchase agreements Gross collateral received amounts not offset in consolidated balance sheet | (153) | |
Securities borrowed Gross collateral received amounts not offset in consolidated balance sheet | (1,141) | (896) |
Total Gross collateral received amounts not offset in consolidated balance sheet | (1,294) | (901) |
Derivative assets Net Amount | 1,199 | 992 |
Reverse repurchase agreements Net Amount | 0 | 0 |
Securities borrowed Net Amount | 32 | 27 |
Total Net Amount Assets | $ 1,231 | $ 1,019 |
Netting Arrangements for Cert92
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Information on Company's Accounting Netting Adjustments and Items Not Offset in Consolidated Balance Sheet Assets But Available for Offset in Event of Default (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Offsetting [Abstract] | ||
Cash collateral netted against derivative assets | $ 110 | $ 50 |
Derivative assets not subject to netting arrangements | $ 36 | $ 723 |
Netting Arrangements for Cert93
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Information on Company's Accounting Netting Adjustments and Items Not Offset in Consolidated Balance Sheet Liabilities But Available for Offset in Event of Default (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Offsetting [Abstract] | ||
Derivative liabilities Gross recognized liabilities | $ 2,123 | $ 1,629 |
Repurchase agreements Gross recognized liabilities | 981 | 803 |
Securities loaned Gross recognized liabilities | 400 | 111 |
Total Gross recognized liabilities | 3,504 | 2,543 |
Derivative liabilities Gross amounts liabilities offset in consolidated balance sheet | (1,328) | (1,130) |
Total Gross amounts liabilities offset in consolidated balance sheet | (1,328) | (1,130) |
Derivative liabilities Net amounts liabilities presented in consolidated balance sheet | 795 | 499 |
Repurchase agreements Net amounts liabilities presented in consolidated balance sheet | 981 | 803 |
Securities loaned Net amounts liabilities presented in consolidated balance sheet | 400 | 111 |
Total Net amounts liabilities presented in consolidated balance sheet | 2,176 | 1,413 |
Derivative liabilities Gross financial instrument liability amounts not offset in consolidated balance sheet | (74) | (110) |
Repurchase agreements Gross financial instrument liability amounts not offset in consolidated balance sheet | (6) | (24) |
Securities loaned Gross financial instruments not offset in consolidated balance sheet | 0 | 0 |
Total Gross financial instrument liability amounts not offset in consolidated balance sheet | (80) | (134) |
Repurchase agreements Gross collateral pledged amounts not offset in consolidated balance sheet | (975) | (779) |
Securities loaned Gross collateral pledged amounts not offset in consolidated balance sheet | (395) | (110) |
Total Gross collateral pledged amounts not offset in consolidated balance sheet | (1,370) | (889) |
Derivative liabilities Net Amount | 721 | 389 |
Repurchase agreements Net Amount | 0 | 0 |
Securities loaned Net Amount | 5 | 1 |
Total Net Amount Liabilities | $ 726 | $ 390 |
Netting Arrangements for Cert94
Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Information on Company's Accounting Netting Adjustments and Items Not Offset in Consolidated Balance Sheet Liabilities But Available for Offset in Event of Default (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Offsetting [Abstract] | ||
Cash collateral netted against derivative liabilities | $ 617 | $ 528 |
Derivative liabilities not subject to netting arrangements | $ 129 | $ 738 |
Fair Values of Assets and Lia95
Fair Values of Assets and Liabilities - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair value measurement transfers from one level to another | $ 0 | $ 0 |
Significant changes to the valuation techniques to measure fair value during the reporting period | No significant changes to the valuation techniques used by the Company to measure fair value. | |
Mortgage loans held for sale measured at fair value, net gain (loss) | $ (51,000,000) | 21,000,000 |
Carrying value of unfunded commitments, deferred non-yield related loan fees and standby letters of credit | 563,000,000 | 555,000,000 |
Other guarantees carrying value | $ 190,000,000 | $ 192,000,000 |
Minimum [Member] | ||
Fair Value Disclosures [Abstract] | ||
Assumed credit valuation adjustment as percentage of derivative contract fair value | 0.00% | |
Maximum [Member] | ||
Fair Value Disclosures [Abstract] | ||
Assumed credit valuation adjustment as percentage of derivative contract fair value | 93.00% | |
Average [Member] | ||
Fair Value Disclosures [Abstract] | ||
Assumed credit valuation adjustment as percentage of derivative contract fair value | 1.00% |
Fair Values of Assets and Lia96
Fair Values of Assets and Liabilities - Valuation Assumption Ranges for MSRs (Detail) - Mortgage Servicing Rights [Member] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Expected prepayment | 9.20% | 10.00% |
Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Expected prepayment | 6.00% | |
Option adjusted spread | 7.00% | |
Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Expected prepayment | 17.00% | |
Option adjusted spread | 10.00% | |
Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Expected prepayment | 9.00% | |
Option adjusted spread | 8.00% |
Fair Values of Assets and Lia97
Fair Values of Assets and Liabilities - Valuation Assumption Ranges for Derivative Commitments (Detail) - Derivative Mortgage Loans Commitments [Member] | Mar. 31, 2018 |
Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Expected loan close rate | 7.00% |
Inherent MSR value (basis points per loan) | 7.00% |
Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Expected loan close rate | 100.00% |
Inherent MSR value (basis points per loan) | 194.00% |
Average [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Expected loan close rate | 80.00% |
Inherent MSR value (basis points per loan) | 107.00% |
Fair Values of Assets and Lia98
Fair Values of Assets and Liabilities - Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative liabilities netting | $ (1,328) | $ (1,130) | |||
Derivative liabilities total | 795 | 499 | |||
Derivative assets netting | (821) | (652) | |||
Derivative assets total | 1,273 | 1,107 | |||
Available-for-sale securities | [1] | 67,125 | 68,137 | ||
Mortgage loans held for sale | 3,271 | 3,534 | |||
Mortgage servicing rights | 2,780 | 2,645 | $ 2,642 | $ 2,591 | |
Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative liabilities total | 924 | 1,237 | |||
Derivative assets total | 1,309 | 1,830 | |||
Available-for-sale securities | 67,125 | 68,137 | |||
Mortgage loans held for sale | 3,271 | 3,534 | |||
Mortgage servicing rights | 2,780 | 2,645 | |||
Other assets | 1,814 | 1,317 | |||
Total | 76,299 | 77,463 | |||
Short-term borrowings and other liabilities | 1,350 | 995 | |||
Total | 2,274 | 2,232 | |||
Fair Value, Measurements, Recurring [Member] | Netting and Collateral One [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative liabilities netting | (1,328) | (1,130) | |||
Derivative assets netting | (821) | (652) | |||
Total | (821) | (652) | |||
Total | (1,328) | (1,130) | |||
Fair Value, Measurements, Recurring [Member] | U.S. Treasury and Agencies [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 21,966 | 23,301 | |||
Fair Value, Measurements, Recurring [Member] | Obligations of State and Political Subdivisions [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 6,294 | 6,358 | |||
Fair Value, Measurements, Recurring [Member] | Other [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 22 | ||||
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed Securities [Member] | Agency [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 38,443 | 38,031 | |||
Fair Value, Measurements, Recurring [Member] | Commercial [Member] | Agency [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 7 | 6 | |||
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Other Asset-Backed Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 415 | 419 | |||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets before netting | 17 | 6 | |||
Available-for-sale securities | 21,258 | 22,594 | |||
Other assets | 199 | 154 | |||
Total | 21,474 | 22,754 | |||
Short-term borrowings and other liabilities | 183 | 101 | |||
Total | 183 | 101 | |||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury and Agencies [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 21,258 | 22,572 | |||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Other [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 22 | ||||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative liabilities before netting | 1,618 | 1,958 | |||
Derivative assets before netting | 1,611 | 1,960 | |||
Available-for-sale securities | 45,867 | 45,543 | |||
Mortgage loans held for sale | 3,271 | 3,534 | |||
Other assets | 1,615 | 1,163 | |||
Total | 52,364 | 52,200 | |||
Short-term borrowings and other liabilities | 1,167 | 894 | |||
Total | 2,785 | 2,852 | |||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury and Agencies [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 708 | 729 | |||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of State and Political Subdivisions [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 6,294 | 6,358 | |||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed Securities [Member] | Agency [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 38,443 | 38,031 | |||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial [Member] | Agency [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 7 | 6 | |||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member] | Other Asset-Backed Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 415 | 419 | |||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative liabilities before netting | 634 | 409 | |||
Derivative assets before netting | 502 | 516 | |||
Mortgage servicing rights | 2,780 | 2,645 | |||
Total | 3,282 | 3,161 | |||
Total | $ 634 | $ 409 | |||
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
Fair Values of Assets and Lia99
Fair Values of Assets and Liabilities - Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) $ in Millions | Mar. 31, 2018USD ($) |
Fair Value Disclosures [Abstract] | |
Equity investments without readily determinable fair values | $ 74 |
Fair Values of Assets and Li100
Fair Values of Assets and Liabilities - Changes in Fair Value for All Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Non-Agency Prime [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning of Period Balance | $ 242 | |
Net Gains (Losses) Included in Other Comprehensive Income (Loss) | (2) | |
Sales | (234) | |
Principal Payments | (6) | |
Settlements | 0 | |
Non-Agency Non-Prime [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning of Period Balance | 195 | |
Net Gains (Losses) Included in Other Comprehensive Income (Loss) | (17) | |
Sales | (175) | |
Principal Payments | (3) | |
Settlements | 0 | |
Corporate Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning of Period Balance | 9 | |
Net Gains (Losses) Included in Other Comprehensive Income (Loss) | 2 | |
Sales | (11) | |
Settlements | 0 | |
Other Asset-Backed Securities [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning of Period Balance | 2 | |
Sales | (2) | |
Settlements | 0 | |
Mortgage Servicing Rights [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning of Period Balance | $ 2,645 | 2,591 |
Net Gains (Losses) Included in Net Income | 33 | (73) |
Purchases | 2 | 2 |
Issuances | 100 | 122 |
Settlements | 0 | 0 |
End of Period Balance | 2,780 | 2,642 |
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period | 33 | (73) |
Available-for-Sale Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning of Period Balance | 448 | |
Net Gains (Losses) Included in Other Comprehensive Income (Loss) | (17) | |
Sales | (422) | |
Principal Payments | (9) | |
Settlements | 0 | |
Derivative [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning of Period Balance | 107 | 171 |
Net Gains (Losses) Included in Net Income | (251) | 46 |
Net Gains (Losses) Included in Other Comprehensive Income (Loss) | 0 | 0 |
Purchases | 1 | 1 |
Sales | (6) | (3) |
Principal Payments | 0 | 0 |
Issuances | 17 | |
Settlements | (50) | |
End of Period Balance | (132) | 165 |
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period | $ (212) | $ (7) |
Fair Values of Assets and Li101
Fair Values of Assets and Liabilities - Changes in Fair Value for All Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Noninterest Income [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net gains and (losses) on net derivative assets and liabilities included in net income | $ (271) | $ (19) |
Net Change in net derivative asset and liability unrealized gains (losses) relating to assets still held at end of period | (240) | (49) |
Mortgage Banking Revenue [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net gains and (losses) on net derivative assets and liabilities included in net income | 20 | 65 |
Net Change in net derivative asset and liability unrealized gains (losses) relating to assets still held at end of period | $ 28 | $ 42 |
Fair Values of Assets and Li102
Fair Values of Assets and Liabilities - Adjusted Carrying Values for Assets Measured at Fair Value on Nonrecurring Basis (Detail) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | $ 22 | $ 150 |
Other assets | 18 | 31 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 22 | 150 |
Other assets | $ 18 | $ 31 |
Fair Values of Assets and Li103
Fair Values of Assets and Liabilities - Losses Recognized Related to Nonrecurring Fair Value Measurements of Individual Assets or Portfolios (Detail) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Loans Receivable [Member] | ||
Fair Value Assets Measured On Nonrecurring Basis Losses Recognized [Line Items] | ||
Losses recognized related to nonrecurring fair value measurements | $ 23 | $ 37 |
Other Assets [Member] | ||
Fair Value Assets Measured On Nonrecurring Basis Losses Recognized [Line Items] | ||
Losses recognized related to nonrecurring fair value measurements | $ 5 | $ 7 |
Fair Values of Assets and Li104
Fair Values of Assets and Liabilities - Differences Between Aggregate Fair Value Carrying Amount of MLHFS for which Fair Value Option has been Elected and Aggregate Unpaid Principal Amount Contractually Obligated to Receive at Maturity (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Fair value carrying amount, total loans | $ 3,271 | $ 3,534 |
Fair value carrying amount, nonaccrual loans | 1 | 1 |
Fair value carrying amount, loans 90 days or more past due | 1 | 1 |
Aggregate unpaid principal, total loans | 3,208 | 3,434 |
Aggregate unpaid principal, nonaccrual loans | 2 | 2 |
Aggregate unpaid principal, loans 90 days or more past due | 1 | 1 |
Carrying amount over (under) unpaid principal, total loans | 63 | 100 |
Carrying amount over (under) unpaid principal, nonaccrual loans | (1) | (1) |
Carrying amount over (under) unpaid principal, loans 90 days or more past due | $ 0 | $ 0 |
Fair Values of Assets and Li105
Fair Values of Assets and Liabilities - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Financial Assets | ||||
Cash and due from banks | $ 19,246 | $ 19,505 | $ 20,319 | $ 15,705 |
Investment securities held-to-maturity | 44,612 | 44,362 | ||
Loans | 273,993 | 276,507 | ||
Financial Liabilities | ||||
Long-term debt | 33,201 | 32,259 | ||
Carrying Amount [Member] | ||||
Financial Assets | ||||
Cash and due from banks | 19,246 | 19,505 | ||
Federal funds sold and securities purchased under resale agreements | 207 | 93 | ||
Investment securities held-to-maturity | 44,612 | 44,362 | ||
Loans held for sale | 1,506 | 20 | ||
Loans | 273,993 | 276,507 | ||
Other | 2,442 | 2,393 | ||
Financial Liabilities | ||||
Time deposits | 39,585 | 33,356 | ||
Short-term borrowings | 16,353 | 15,656 | ||
Long-term debt | 33,201 | 32,259 | ||
Other | 1,546 | 1,556 | ||
Fair Value [Member] | ||||
Financial Assets | ||||
Cash and due from banks | 19,246 | 19,505 | ||
Federal funds sold and securities purchased under resale agreements | 207 | 93 | ||
Investment securities held-to-maturity | 43,408 | 43,723 | ||
Loans held for sale | 1,506 | 20 | ||
Loans | 275,311 | 279,391 | ||
Other | 2,442 | 2,401 | ||
Financial Liabilities | ||||
Time deposits | 39,179 | 33,120 | ||
Short-term borrowings | 16,129 | 15,447 | ||
Long-term debt | 32,963 | 32,377 | ||
Other | 1,546 | 1,556 | ||
Fair Value [Member] | Level 1 [Member] | ||||
Financial Assets | ||||
Cash and due from banks | 19,246 | 19,505 | ||
Investment securities held-to-maturity | 4,553 | 4,613 | ||
Fair Value [Member] | Level 2 [Member] | ||||
Financial Assets | ||||
Federal funds sold and securities purchased under resale agreements | 207 | 93 | ||
Investment securities held-to-maturity | 38,842 | 39,095 | ||
Other | 1,281 | 1,037 | ||
Financial Liabilities | ||||
Time deposits | 39,179 | 33,120 | ||
Short-term borrowings | 16,129 | 15,447 | ||
Long-term debt | 32,963 | 32,377 | ||
Fair Value [Member] | Level 3 [Member] | ||||
Financial Assets | ||||
Investment securities held-to-maturity | 13 | 15 | ||
Loans held for sale | 1,506 | 20 | ||
Loans | 275,311 | 279,391 | ||
Other | 1,161 | 1,364 | ||
Financial Liabilities | ||||
Other | $ 1,546 | $ 1,556 |
Guarantees and Contingent Li106
Guarantees and Contingent Liabilities - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Guarantees And Contingent Liabilities (Textual) [Abstract] | ||
Liability related to remaining Visa Litigation, carrying amount | $ 19 | |
United States Attorney's office settlement net payment | 453 | |
Office of the Comptroller of the Currency civil money penalty | 75 | |
Financial Crimes Enforcement Network settlement net payment | 70 | |
Federal Reserve civil money penalty | 15 | |
Settlement and civil money penalty payment | 613 | |
Asset Sales [Member] | ||
Guarantees And Contingent Liabilities (Textual) [Abstract] | ||
Representation and warranty reserve | 12 | $ 13 |
Unresolved representation and warranty claims from GSEs | 10 | $ 9 |
Merchant Processing [Member] | ||
Guarantees And Contingent Liabilities (Textual) [Abstract] | ||
Value of airline tickets purchased to deliver at future date through card transactions | 10,700 | |
Company held collateral in escrow deposits, letters of credit and indemnities from financial institutions and liens on various assets | 622 | |
Liability primarily related to airline processing arrangements | $ 47 | |
Visa Class B Shares [Member] | ||
Guarantees And Contingent Liabilities (Textual) [Abstract] | ||
Number of shares sold | 0.3 | |
Remaining shares held by the Company | 2.4 |
Guarantees and Contingent Li107
Guarantees and Contingent Liabilities - Summary of Other Guarantees and Contingent Liabilities (Detail) $ in Millions | Mar. 31, 2018USD ($) |
Standby Letters of Credit [Member] | |
Guarantor Obligations [Line Items] | |
Carrying Amount | $ 53 |
Maximum Potential Future Payments | 10,825 |
Third Party Borrowing Arrangements [Member] | |
Guarantor Obligations [Line Items] | |
Maximum Potential Future Payments | 12 |
Securities Lending Indemnifications [Member] | |
Guarantor Obligations [Line Items] | |
Collateral Held | 3,850 |
Maximum Potential Future Payments | 3,807 |
Asset Sales [Member] | |
Guarantor Obligations [Line Items] | |
Carrying Amount | 122 |
Maximum Potential Future Payments | 6,758 |
Merchant Processing [Member] | |
Guarantor Obligations [Line Items] | |
Collateral Held | 768 |
Carrying Amount | 51 |
Maximum Potential Future Payments | 99,579 |
Tender Option Bond Program Guarantee [Member] | |
Guarantor Obligations [Line Items] | |
Collateral Held | 2,424 |
Maximum Potential Future Payments | 2,335 |
Minimum Revenue Guarantees [Member] | |
Guarantor Obligations [Line Items] | |
Maximum Potential Future Payments | 6 |
Other Guarantees [Member] | |
Guarantor Obligations [Line Items] | |
Carrying Amount | 17 |
Maximum Potential Future Payments | $ 1,230 |